While the British company brags about its"social investment" in the country, the real beneficiary of the partnership has been Azerbaijan’s ruling family. Heydar Aliyev, a former Soviet KGB officer, was president when BP and Azerbaijan signed a production-sharing agreement for a major Caspian oil field. His son Ilham took over both the BP relationship and country upon his father’s death two decades ago. For the Aliyevs, it has been a lucrative relationship.
When it comes to Azerbaijan, however, the protection that the BP partnership provides may soon change. Freedom House ranks Azerbaijan as one of the world’s most repressive states, and Transparency International ranks it among the world’s most corrupt. The"caviar diplomacy" that once bought the favors of politicians on both sides of the Atlantic Ocean increasingly leads to questions of credibility if not legal jeopardy.
The real problem is that Aliyev increasingly acts erratically. He follows a path hewed by Saddam Hussein. Whether because of wishful thinking, greed, or geopolitical desire, diplomats in both Washington and London once described Saddam as a moderate and made excuses as he grew more detached from reality. This came to a head, of course, when he not only denied Kuwait’s right to exist but then sent his military to act on his ambition .
Indeed, British diplomats involved with Azerbaijan act increasingly uncomfortable behind the scenes and no longer feign belief in their own talking points. BP’s Caspian holds might have brought great profit, but may soon prove Exhibit A in why coddling dictators can be a losing proposition.Michael Rubin is a contributor to the Washington Examiner's Beltway Confidential. He is a senior fellow at the American Enterprise Institute.
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