Russia and Azerbaijan Terminate Baku-Novorossiysk Agreement

by Mina Muradova (06/26/2013 issue of the CACI Analyst)

Russia and Azerbaijan have recently terminated two strategic agreements. In May, the Russian government terminated a 1996 deal to transport oil from Azerbaijan through its pipeline system. The agreement on transporting Azerbaijani  oil via the Baku-Novorossiysk pipeline envisaged the transit of at least five million metric tons of oil a year, with a tariff of about US$ 15.70 per metric ton.