PRESIDENTS' DEBUT ON THE NEVA

The schedule of the SPIEF included a great number of various events: round table discussions, presentations, ceremonies to sign agreements and negotiations. The first day of the forum focused on problems related to the globalization of international markets and the national interests of countries. The second day of the forum focused on Russia and the development of its economy. The subjects of discussion at the SPIEF were "Energy - Global Players and Referees", "New Challenges on the World Food Markets", "Innovation - Competition - Diversification of the Economy" and "The Economics of Knowledge and Intellect". The discussions were supplemented by various exhibitions, receptions, concerts and strolls. Azerbaijani Finance Minister Samir Sarifov addressed the plenary session on the subject "The CIS: Ways to Increase Competitiveness of National Economies via Integration and Cooperation".

Among the foreign participants in the SPIEF, the highest level of representation was, as always, demonstrated by CIS countries. And this is natural. Although many years have passed since the collapse of the USSR, the economies of its former republics and now independent states are closely connected to each other, and the developments that happen in these countries have a similar nature. The arrival of all CIS heads of state in St Petersburg made it possible to hold an informal summit of the CIS in parallel with the SPIEF. Participants in the summit exchanged opinions on various issues, including the strategy of CIS development, transport issues and the problem of food security. Besides that, it discussed the agenda of the forthcoming CIS summit scheduled for 26 September in Bishkek.

Informal CIS summits do not usually adopt any documents. It is much more important that participants hold a multilateral and bilateral exchange of opinions on issues of mutual interest, especially as this is the first summit which Dmitriy Medvedev attended as president.

There are quite a few problems within the CIS. But not everything is going smoothly in Russia's relations with its allies Armenia and Belarus, and Central Asian states. As for Ukraine and Georgia, which are longing to join NATO, we can even talk about a real crisis here.

For example, recently Viktor Yushchenko signed a decree according to which a draft law on the termination of the agreement on the presence of the Russian Black Sea Fleet on Ukrainian territory in 2017 should be submitted to parliament within two months. In response, the Russian State Duma threatened to terminate the Treaty of Friendship with Ukraine and resume its claims to Sevastopol and even all of Crimea.

Meanwhile, relations between Moscow and Tbilisi have reached a point when the world media is talking about a new military clash. Shortly before leaving his post, Vladimir Putin ordered the establishment of relations with Abkhazia and South Ossetia, which was a violation of Georgia's sovereignty. After that, Moscow reinforced its military group, downed a Georgian drone and sent its railway troops to Abkhazia without Tbilisi's permission. Unlike the previous CIS summits, Georgian President Mikheil Saakashvili was promised a bilateral meeting with Russian President Dmitriy Medvedev. And this meeting did take placed in St Petersburg. The new Russian leader also met Ukrainian President Yushchenko. However, the sides did not announce any progress on the problems that have amassed between them, and we can only hope that Dmitriy Medvedev's arrival at the Kremlin will help overcome the dangerous confrontation in relations between Moscow and Tbilisi.

As for Azerbaijan, the meeting between Ilham Aliyev and the new Armenian president Serzh Sarkisyan drew more attention here. It was held at the Konstantinov Palace. The negotiations between Aliyev and Sarkisyan began in the presence of the two countries' foreign ministers, as well as the OSCE Minsk Group co-chairmen and the personal representative of the OSCE chairman-in-office, Andrzej Kasprzyk. Then the presidents of Azerbaijan and Armenia held tete-a-tete talks.

Ahead of the meeting, Azerbaijani, Armenian and Russian analysts and journalists were quite careful in their assessment of the possible results of these negotiations because despite the efforts of the OSCE Minsk Group co-chairmen, it is still impossible to secure an agreement between the parties. The meeting had mainly a factfinding nature, but taking into account that it was held after a long break caused by the controversial elections in Armenia, it is good that the dialogue between the conflicting sides has resumed.

At their news conference, the foreign ministers, Elmar Mammadyarov and Edward Nalbandyan, described the dialogue between the leaders of Azerbaijan and Armenia as positive and constructive. It was pointed out that the presidents instructed their foreign ministries to cooperate with the Minsk Group to continue the negotiating process. At the same time, it was pointed out that the meeting did not discuss the Madrid proposals, because the parties' approaches to these proposals need to be examined additionally.

Asked whether Azerbaijan is going to initiate discussions on the Karabakh problem in other international organizations and whether Azerbaijan sees the future of the negotiating process within the OSCE format, Elmar Mammadyarov declined to comment on Azerbaijan's possible new initiatives at the UN, saying that the Minsk format really exists and will continue. Armenian Foreign Minister Nalbandyan added that the negotiating process is continuing, and the first meeting between Sarkisyan and Aliyev does not mean that the peace process will begin from zero.

It would also be useful to cite the opinion of the US co-chairman of the Minsk Group, Matthew Bryza, who said: "We listened to the wishes of the two sides because we know that the proposals we made in Madrid are only proposals, and this does not mean that the sides totally agree with them. It is necessary to improve these proposals, and the mediators and the presidents are ready to carry on working in this direction." He also said that the Minsk Group co-chairs intend to visit the region at the end of this month.

Participation in the 12th St Petersburg International Economic Forum gave President Ilham Aliyev a good opportunity to hold his first bilateral meeting with the new Russian president Dmitriy Medvedev. Although they have known each other for a long time, the St Petersburg meeting had an absolutely different format and significance. Welcoming Ilham Aliyev, Russian President Dmitriy Medvedev said that there are many new projects on which Russia and Azerbaijan cooperate. "At the beginning of July, I will be able to visit Baku and we will be able to discuss issues of cooperation," he said. In turn, Ilham Aliyev said that relations between the two countries have entered a new stage of partnership and drew attention to the broad format of cooperation and active interaction. "I hope that the further development of our relations will be as positive as before," the Azerbaijani president said in conclusion.

There are all signs that Azerbaijani-Russian relations have entered a new important stage when fundamental strategic decisions have to be made. The sides can give each other a lot and they have the right to expect a lot from mutual cooperation, because Azerbaijan is the largest, fastest growing and what is more, solvent market in the region. The energy reserves and strategic position of our country attract close attention from world and regional powers. This is graphically proved by the recent traditional exhibition in Baku "Oil & Gas in Azerbaijan". The chairman of Russia's Gazprom, Aleksey Miller, who participated in the exhibition, said that his company is ready to buy gas from Baku at world prices and suggested using Soviet-era pipelines to transport hydrocarbon reserves. Western representatives who lobby the ambitious Nabucco project, and Iran have also made attractive proposals.

Although no specific agreements have been reached yet, it is clear that Baku is interested in diversifying the consumers of its gas. If initially Azerbaijan was more concerned about being an energy producer and supplier that is independent from Russia, now that this task has already been solved, cooperation with Moscow on prices and markets is becoming important. Both Azerbaijan and Moscow are interested in maintaining high oil and gas prices on the European market.

Of course, Azerbaijan's cooperation with Russia should be equal and be based only on their mutual interests. Baku is not going to give up on lucrative projects with its Western partners, Georgia, Turkey and Ukraine in order to please Moscow. SOCAR has declared its large-scale plans in these countries, and they are quite promising. Just before his trip to St Petersburg, Ilham Aliyev held a meeting with Turkish Prime Minister Recep Tayyip Erdogan in Naxcivan. The meeting solved the problem of determining the price of the gas from the Sah Daniz deposit.

Yerevan was quite nervous about this meeting, and there is a good reason for that. Azerbaijan is strengthening it armed forces, saying that if the Minsk Group talks fail, Azerbaijan may resort to force to restore its jurisdiction over the Armenian-occupied territories. Turkey's role in ensuring Naxcivan's security is very important, and Yerevan will find it difficult to send all its forces to the Karabakh front with a strong Naxcivan corps of the Azerbaijani army behind. We can assume that the peaceful and constructive mood of the new Armenian president during his meeting with Ilham Aliyev in St Petersburg results from all the circumstances we listed above.

In conclusion, it must be noted that Azerbaijan is rapidly developing and drawing up new plans that are quite appropriate to its growing possibilities. In order to implement all its plans, Baku needs stability and mutual security in the world. If Moscow realizes this and is ready to use its influence on Yerevan in order to restrain its aggressive ardour, partnership between Russia and Azerbaijan will rise to a new level. In that case, participation in the St Petersburg International Economic Forum will be considered in the context of its direct purpose, not just as an opportunity to hold political consultations and talks.