THE CASPIAN SEA: ENVIRONMENTAL CHALLENGES AND GOVERNMENT RESPONSES

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0005284783
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 20
• Document Creation Date: June 24, 2015
• Document Release Date: May 27, 2011
• Case Number: F-2008-00831
• Publication Date: October 20, 1997

Intelligence Report
Office of DCI Environmental Center
Responses
The Caspian Sea: Environmental Challenges and Government
The littoral states of the Caspian Sea face two major environmental challenges:
the rising waters of the Caspian and the declining population of the sturgeon.
Various reporting suggests that national efforts focus more on dealing with the rising
waters of the Caspian, while protecting the sturgeon appears to be a shared regional
concern. A number of multilateral agreements are in place, but progress is slow and
tangible results are few. Meanwhile, existing political and economic differences are
important factors influencing the states' cooperative zeal, and curbing expanding
sturgeon poaching activities remains a formidable task.
What initiatives have the five littoral states of the Caspian Sea taken unilaterally to
address environmental issues of the region?
The Caspian states--Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan--face two
environmental challenges involving the Caspian Sea: protecting their citizens and
infrastructure from the rising waters of the sea and preserving the declining sturgeon
population. National responses to these challenges vary according to each country's
economic capability and sense of urgency over potential loss--depending on the location
of population centers and infrastructure along the shore line and the importance of the
caviar trade to its economy. Examples of national efforts include:'
Azerbaijan is upgrading and
protecting the port at Baku, refurbishing offshore oil and gas facilities at the
Guneshli and Oily Rocks fields, and developing--with World Bank support--a
national. action plan.
Iran is monitoring--with International Atomic
Energy Agency assistance--the rising water level and radioactivity in the sea and
has built emergency seawalls. The government also has ratified a bill to create
the International Sturgeon Institute of the Caspian Sea.
environment.
The appendix to this oaoer provides more detail on the unilateral and joint efforts to protect the Caspian
(b)(1)
(b)(3)
APPROVED FOR RELEASEL
DATE: 17-May-2011
 . Kazakhstan has begun reconstruction work on the seaport of Aktau, built and
reinforced dikes to protect oil fields and deposits, and taken steps to build
sturgeon hatcheries and fish breeding plants,
Kazakhstan also has sought to incorporate environmental protection
measures in its oil exploration business contracts with foreign firms.
? Russia has reinforced its border police force to curb sturgeon poaching in
Russian territorial waters and in border areas, according to press reports.
To what degree are the five states already cooperating to address the rising sea level
and sturgeon protection?
Regional cooperative efforts associated with the rising sea level involve monitoring
activities and research projects. The bulk of multilateral environmental efforts, however,
appear to focus more on protecting the sturgeon. Regional agreements involve fishing in
the Caspian Sea, joint operations to prevent poaching, and the restoration and
preservation of the sea's ecological system and bioresources.
? Earlier this year, the five Caspian states agreed to embark on 12 environmental
projects, with assistance from UN-affiliated international organizations,
according to press reports. The projects include a plan to observe changes in
the water level of the Caspian, examine polluting agents and their effects, and
conduct joint research projects.
? In September 1997, representatives of agencies managing fish reserves in Russia,
Azerbaijan, Kazakhstan, and Turkmenistan agreed on joint operations to stop
sturgeon fishing in the Caspian Sea and to prevent poaching, according to press
reports.
? According to press sources, various agreements on the protection and
preservation of the Caspian and its natural resources--including the sturgeon--
also exist between Russia and Azerbaijan, Russia and Kazakhstan, and Iran and
Russia.
 What factors could facilitate cooperation among the littoral states?
The existence of regional agreements addressing the environmental problems of the
Caspian Sea make it likely that governments will be open to new proposals involving
similar cooperative arrangements or mechanisms..
? Area experts, scientists, and policymakers suggest using regional agreements to
develop long-term strategies for such problems as restoring and stabilizing
sturgeon resources, according to press. Other proposals reported by local press
sources call for the creation of an independent commission--made up of
scientists and specialists from littoral states--to conduct environmental impact
studies of seismic prospecting and the exploitation of offshore deposits.
Last month, despite ongoing disagreements over the demarcation of the Caspian
Sea, representatives of agencies managing fish reserves in Russia, Azerbaijan,
Kazakhstan, and Turkmenistan met and agreed to step up joint efforts against
poaching, according to press reports.
The Caspian states also may be more likely to accept proposals under the auspices of
international organizations that treat littoral states equally--particularly in light of
sensitivities over sovereignty; the differences among states along ethnic, religious, and
economic lines; and the disagreements over the Caspian Sea demarcation.
? Several ongoing projects in the area already involve international organizations that
provide technical and financial support. These entities include the European Union,
the World Bank, the International Atomic Energy Agency, the United Nations, the
Intergovernmental Oceanographic Commission, the International Hydrological
Program, the European Bank for Reconstruction and Development, and joint-
venture companies,
 Sec
Sturgeon Protection: A Losing Battle?
Russian efforts to enhance enforcement activities along its borders may be undermined
by the extent of criminal activities along the Caspian coast and the reluctance of
enforcement agencies in neighboring countries to coordinate with Russian border
guards. Local press sources say the number of detected crimes has tripled in the last
three years. Russian officials claim that the shores of the Caspian and the Sea of Azov
have been divided up by criminals into zones of control.
? Since 1993, Russia has posted 500 officers along the Volga's delta every spring, but
only a handful of perpetrators ever go to jail. Local news reports say the poorly
paid officers, who can double their monthly salaries by selling a few kilograms of
caviar, often work with smugglers.
? Murders and bomb attacks against border guard families also severely demoralize
officers and discourage effective enforcement.
 What factors could inhibit further cooperation?
Area experts believe that mutual mistrust, sensitivities about sovereignty issues, and the
lack of consensus on the demarcation of the Caspian Sea could hinder future cooperative
efforts among the, Caspian states. Proposals giving Russia preference or authority, in
particular, are likely to be received negatively.
Poverty and industrial stagnation among the Caspian states also could make cooperative
efforts to effect a complete ban on commercial fishing extremely unpopular and
unenforceable. Press sources say some experts believe that establishing international
catch limits may be the sturgeon's only hope, but even that may be difficult to achieve.
? The five Caspian states disagree on the amount of fish catches allowed,
according to press and other open sources. Total catch limits, where fish
of caught, and over what time periods are major discussion points, along with
individual country quotas. Iran and Russia had previously agreed on these
issues, but a new agreement needs to be reached with the other states.
Ongoing disputes over the Caspian's demarcation lines and the nature of existing relations
among the Caspian states are also major factors that could hinder cooperation. For
example:
? Turkmenistan and Azerbaijan are in dispute over property rights to Caspian
seabed energy sources. Some progress has been made toward a resolution, but
problems with details could still derail an agreement.
Moscow has become involved because Russian firms purchase oil
from the region.
? Relations between Russia and Azerbaijan have been marred by disputes over the
Nagorno-Karabakh issues, accusations involving a Russian citizen spying for
Armenia, and Baku's resistance to Russian efforts to limit Iranian influence in
the area by establishing a Russian military presence along Azerbaijan-Iran
border
 APPENDIX
 AZERBAIJAN
GOVERNMENT RESPONSES TO THE RISING CASPIAN SEA
The government has initiated projects designed to upgrade or rotect facilities threatened
or damaged by rising sea waters, according to press reports.
Capabilities and Limitations
four institutions in Azerbaijan dealing with data on
Caspian Sea pollution. These were the State. Committee for Control Over Ecology and
Use of Nature (SCCEN), The State Committee for Hydrometeorology, The Caspian
Water Supervision Committee, and The Republic Center for Hygiene and Epidemiol
SCCEN--the main source of data--provided information to the other organizations.
Plans and Intentions
In June, press sources reported that Azerbaijan was awaiting decision on a World Bank
loan--worth approximately $22 million--to support additional reconstruction work on the
port of Baku. The matter was up for discussion at the Bank's Board of Directors meeting
in mid-July. There has been no further information on the Board's decision
 Experts from the State Committee for Ecology and Wildlife Management believe that the
evacuation of coastal residents is Azerbaijan's best option. Therefore, the government
needs to prepare and introduce a state program on priority evacuation measures, starting
with the development of an automated system of forecasting possible flood zones and their
graphic presentation. According to press reports, Azerbaijani specialists had been aiming
to complete relevant studies in 1997.
GOVERNMENTXNITXATIVES TO PROTECT THE STURGEON
Press reports in June said the World Bank and public, scientific, and other organizations in
Azerbaijan began reviewing the national plan of action to support the environment. The
plan outlines three priorities--institutional development of the state committee for ecology;
making available short-term high-return investments, such as cleaning up oil spills; and
long-term investments, such as promoting fish breeding farms. According to preliminary
information, the World Bank could allocate between $1 to $1.5 million toward
implementing the plan.
In May, local press sources reported that a biological cleanup project devised by scientists
in Azerbaijan had been selected by the European Commission for implementation. The
project was designed to study the natural cleansing process by which micro-organisms in
the Caspian Sea synthesize special ferments capable of oxidizing oil and petroleum
products in the water. The project--expected to begin in Baku Bay--was to involve
scientists from universities in Great Britain, Italy, the Russian Federation, Ukraine, and
Azerbaijan.
The head of the state oil company--SOCAR--said in May that current oil projects in
Azerbaijan cannot meet the ecological standards set and adopted in the former Soviet
Union, according to local press reports_ Adopting the USSR standards would require
large capital investments to build biological purification facilities to meet the maximum
pollution level allowed---0.5 milligrams-per liter for the Caspian: Instead, Azerbaijan's
national assembly developed its own standards and set the limits for effluence of waste oil
products at 40 MG/L and up to 20 MG/L for areas close to shore.
Capabilities and Limitations
Local press reports have quoted the head of the Caspian State Committee for Ecology and
Rational Use of Natural Resources as saying that financial difficulties are a main obstacle
to organizing effective ecological monitoring of the activities of foreign companies in the
Caspian area.
 IRAN
GOVERNMENT RESPONSES TO TIIE RISING CASPIAN SEA
Iran receives support from the International Atomic Energ Agency (IAEA) in monitoring
the rising water level and radioactivity of the Caspian Sea
Iranian press sources reported in 1993 that Iran built emergency sea walls in areas, such as
Tonekabon, to protect against rising sea waters.
GOVERNMENT INITIATIVES TO PROTECT THE STURGEON
The majles ratified a bill in July to allow the government to take steps to establish the
International Sturgeon Institute of the Caspian Sea and to ratify its charter, according to
local press reports. The bill--aimed at protecting the sturgeon in cooperation with other
Caspian states--is currently awaiting a second round of discussions and final ratification.
Iran is a party to CITES--which, in June, listed all 23 sturgeon species as threatened.
the Iranian delegation was the only party to voice objection to
listing over the failure of the proponent countries--Germany and the US--to.consult with it
on the proposal. Iran was invited--but had failed--to attend an earlier meeting hosted by
Russia on this issue.
 Press reports say Iran plans to pour 8 million Beluga roes into the Caspian this year.
 KAZAKHSTAN
GOVERNMENT RESPONSES TO THE RISING CASPIAN SEA
Reconstruction has begun on the seaport of Aktau on the Caspian Sea, according to press
reports. Officials say the four-year project--financed with a $70 million European Bank
for Reconstruction and Development (EBRD) loan--involves raising the entire 400-meter
long pier by two meters to protect it from the rising sea.
Press reports in April said Kazakhstan's state petroleum agency--EMG--spent $13.3
million in 1994-96 to build and reinforce two dikes to protect its oil deposits. EMG's oil
reserve is estimated at 507 million barrels
Capabilities and Limitations
In May 1996, local press reports indicated that, although Atyrau expended maximum
effort to protect itself against the sea, it could do no more than erect temporary earthen
dams annually. Critics blamed Almaty for failing to provide funds to support the effort,
but officials there responded that there simply was no money. In 1994, Atyrau managed
to erect some 726 kilometers' of dams, and in 1995, local enterprises contributed work and
materials on the promise that they would be reimbursed. Atyrau's inability to repay those
debts reportedly have led some of the enterprises to the verge of bankruptcy. In 1996, a
government decree finally confirmed the fact of the emergency and mapped out a number
of priority measures to protect the area and relocate the most important coastal facilities.
Atyrai also was promised more money, but as of the date of the report, Atyrau received
funds enough to build only one dz
 GOVERNMENT INITIATIVES TO PROTECT THE STURGEON
Press sources reported in 1993 that Kazakhstan has tried to incorporate measures to
protect the environment in its business dealings by demanding that companies granted oil
exploration rights in the Caspian conduct a full environmental survey of the region and pay
for any environmental damage that their activities cause.
Capabilities and Limitations
Kazakhstan has limited resources to devote to the Caspian Sea because of the number and
magnitude of environmental challenges--for example, the deterioration of the Aral Sea--
that the country faces.
 RUSSIA
GOVERNMENT RESPONSES TO THE RISING CASPIAN SEA
The interdepartmental commission of the Russian Security Council met in April to address
ecological security measures to ensure the ecological security of the Caspian, according to
press reports.
Russia has issued Government Resolution No. 328, dated March 23 and entitled "On
Priority Measures for 1996-1997 for the Protection of the Population and the Prevention
of the Flooding of Economic and Other Facilities Situated on the Caspian Sea Coast,"
according to press reports
Plans and Intentions
In April the Russian Security Council recommended government approval of a federal
draft program--Solution of Social, Economic, and Ecological Problems Connected with
Raising the level of the Caspian Sea, according to press reports. The council also required
the Commission on the Caspian Sea Problems to submit in August 1997 a progress report
on the fulfillment in 1996-97 of Government Resolution No. 328. The council also
recommended that the Russian Foreign Ministry and the Ministry of Natural Resources to
speed up on finishing and coordinating agreements with other Caspian states on a rational
use of nature resources of the Caspian Sea and on their protection. Press sources say the
Commission believes this work should be done jointly with the government of the
Republic of Dagestan, the government of the Republic of Kalrtiykia, the local
administration of the Astrakhan region, and corresponding federal executive bodies.
GOVERNMENT INITIATIVES TO-PROTECT THE STURGEON
Under the edict, On Measures to Provide for Protection of Marine Biological Resources
and for State Control in this Sphere, the government has given the federal border service
responsibility for protecting Russian bioresources in the territorial sea, the Russian,
exclusive economic zone, and the continental shelf, according to local press reports.
Russian military officials say that under edict--signed by President Yeltsin. last month--the
service will restructure its marine forces into marine guards to exclusively control fishing
in Russian territorial waters and border areas. The service will be staffed with specialists
from the Federal Fisheries Administration and other maritime protection organizations.
 Capabilities and Limitations
The Russian Federal Border Service naval forces commander has acknowledged that
border guard personnel need specialized training in conducting inspections, collecting and
documenting evidence of a violation, and other procedures to effectively carry out their
duties, according to Russian press sources. The lack of special higher educational
institutions to conduct training means that border guards have had to learn these skills on
the job. The service has taken action by revising the curricula and training programs at its
service academy to enhance training in this area.
Russian press reports say the Russian Federation's Ministry of Natural Resources lacks
resources to conduct expanded studies on the ecological consequences of oil exploration.
Oil companies also have refused to conduct such studies.
Plans and Intentions
Plans are underway to provide the marine forces of the Federal Border Service with new
equipment, in conjunction with its new duties, according to local press sources. The
forces already have a strong coastal infrastructure, points for observing surface activity,
and up to 100 ships and cutters to provide simultaneous monitoring at sea. Russian
officials quoted by the local press say a shipbuilding program also is underway to produce
10 additional ships and 30 cutters and to completely replace the force's equipment by
Press reports say the Caspian Scientific Research Institute for the Fishing Industry has
developed a $150 million program to replenish sturgeon stocks in the Caspian Sea basin
and to increase declining catches to 12,000 tons by 2010. All five Caspian states are
expected to participate in the program, which has been referred to the Russian government
for reconsideration. The program will see stocks replenished at.a rate of 150 million to
180 million sturgeon a year, compared with the current 60 million, according to local press
reports.
 TURKMENISTAN
GOVERNMENT INITIATIVES TO PROTECT THE STURGEON
Under the terms of the first round of an international tender for oil exploration and
recovery within the Turkmen shelf of the Caspian, the government requires potential
investors to include in their applications a list of environmental protection initiatives they
will undertake as part of their activities, according to press reports.
in late July, the Ministry of Environmental Protection and the
Harvard Institute of International Development of Central Asian Countries and
Kazakhstan conducted a. USAID-sponsored conference in Ashgabat. The conference,
entitled The Efficiency of Environmental Protection Requirements Implementation in the
Oil and Gas Business of Turkmenistan, addressed environmental problems resulting from
oil and gas industry development.
Turkmen officials say the mejlis or parliament
passed a law on Protection and Rational Use of the Animal World, which attempts to
balance national interests with international conventions. According to local press sources,
Turkmenistan now lead,; the CIS in the number of legislative acts on environmental
protection.
 under the auspices of the TACIS Ecological Program,
Turkmenistan has proposed four projects related to the Caspian and Aral Seas, the
Cheleken Peninsula, and Turkmenbashi.
Capabilities and Limitations
The drive to improve the economy by exploiting the Caspian Sea's oil resources may force
Turkmenistan to sacrifice the environment for economic development.
 JOINT EFFORTS TO ADDRESS
THE RISING CASPIAN SEA
? In June, press sources reported that the World Bank was ready to extend Azerbaijan
and other littoral countries a grant for projects to address the rise in sea level, to
preserve the biosphere of the Caspian, and to monitor, determine, and regulate what
may be disposed of in the Caspian.
? Earlier this year, the five Caspian Sea littoral states reportedly agreed on 12
environmental projects to be launched jointly with assistance from, international
organizations affiliated with the United Nations, according to press reports. The
announcement was made by an Iranian delegate at the second meeting of the
Coordination Committee on Water Related Issues, Meteorology and Environment
Protection of the Caspian Sea held in Baku. The approved measures included setting
up a maritime weather forecasting network, an environmental protection control
system, and a joint data bank. There also were plans to observe changes in the water
level of the Caspian Sea, to examine polluting agents and their effects, and to conduct
joint research projects. The third meeting of the coordinating committee is to be held
in Iran in 1998.
An Internet source reports that, in May 1995, the Intergovernmental Oceanographic
Commission (IOC) and the International Atomic Energy Agency (IAEA), in
cooperation with the International Hydrological Program of UNESCO, organized a
workshop on the causes of the sea level rise of the Caspian and the international
cooperation required. to tackle the problem. The workshop was attended by specialists
from the Caspian states and by representatives from France and other organizations.
The participants agreed to initiate the Caspian Sea Project, which would involve the
conduct of relevant studies and training, with IAEA and IOC support. The
participants also discussed and prepared a coordinated work plan on joint activities
that could be undertaken by countries specifically in 1995-96. A workshop was to be
held in 1996 to review the results of the initial phase of the feasibility study. In
addition, the participants formulated proposals for future cooperative efforts--
including establishing a regional monitoring system and a coordinating mechanism--
and stressed the need for establishing a network of key stations equipped with modern
technology for sea-level measurements.
? Iranian press sources reported in 1993 that Iran and Russia signed articles of a charter
setting up the Research and Study Center for the Caspian Sea Water Sources, under
which littoral states were supposed to coordinate all activities on studies and research
and the implementation of projects to halt sea encroachment. Kazakhstan, Azerbaijan,
and Turkmenistan also were expected to sign the charter. At the same time, Iranian
 officials said Iran and Turkmenistan had agreed to open a canal allowing water to
enter the Qara Boghaz Bay to allow rising water along the coasts of the Caspian Sea
littoral states to subside.
 JOINT EFFORTS TO PROTECT THE STURGEON
the head of the Russian Foreign Ministry's Caspian
Working Group said in September that an agreement on fishing in the Caspian Sea is
almost ready for signing by the littoral states, but the major stumbling block appears to
be the plan to set aside an ecological zone in the northeast sector of the Caspian. The
Russian official gave few details, but he said that one proposal under consideration
would give the zone--which would be off limits to oil drilling and exploration--a
percentage of Caspian oil profits. Press sources reported that Kazakhstan and Russia
established a sanctuary in the northern part of the Caspian and the deltas of the Volga
and Ural rivers in the 1970s. The sanctuary reportedly still exists, but the rules
prohibiting geological and seismic prospecting in the area and instituting special rules
of water use, shipping, and other activities now are being broken constantly.
Kazakhstan, for example, has begun seismic prospecting on its own coast, and Russian
firms have followed suit.
? In September, representatives of agencies managing fish reserves in Russia,
Azerbaijan, Kazakhstan, and Turkmenistan agreed--under the Commission on the
Biological Resources of the Caspian Sea--on joint operations to stop sturgeon fishing
in the Caspian sea and to prevent poaching, according to press reports.
? this year all 23 species of the sturgeon were listed under the
Convention on International Trade in Endangered Species (CITES) in an effort to
curtail the illegal caviar trade and to ensure the sustainable use and management of
wild sturgeon stocks--particularly those of the Caspian Sea. The CITES coverage
takes effect 1 April 1998 when wildlife inspections at ports of entry will be enforced to
detect illegal shipments of fish and caviar. Under CITES, parties designate both a
management authority and a scientific authority to exercise joint responsibility in
issuing permits and certificates to authorize trade. These permits must accompany
shipments and be presented at customs points. Even nonparties must comply with the
CITES requirements in order for their exports to be accepted into countries that are
parties.
? Russia's management authority remains the competent entity for issuing permits for all
the CIS states, until they choose to become parties to CITES themselves or unless
they lodge an objection with the CITES secretariat None
of the nonparty Caspian states have raised public objections to Russia issuing their
permits. Azerbaijan, Kazakhstan, and Turkmenistan are being encouraged to join
 CITES so- they may protect their sovereignty interests and participate in the decision
making process. Under the sturgeon resolution, these countries may also receive
technical assistance in the implementation of the stur eon listing and on conservation
management of sturgeon stocks.
? Press reports say that, under Article 22 of the Treaty of Friendship, Cooperation, and
Mutual Security signed this year by the Russian Federation and the Republic of
Azerbaijan, both countries agree to cooperate on environmental issues, particularly on
the protection and restoration of the ecological system of the Caspian Sea
? In June, press sources reported that Russia had proposed that the governments of
Azerbaijan, Kazakhstan, and Turkmenistan sign an agreement on the rational use of
the bioresources of the Caspian Sea. Russian officials reported that all appropriate
documents and requests were transmitted to representatives of these nations, but some
of the states said they would sign only after the legal status of the Caspian has been
determined--a process that could take several years.
? Russia and Kazakhstan signed in April 1996 the Statement on Cooperation in the Use
of the Caspian Sea, which states, among others, that the complex of legal provisions in
a convention on the legal status of the Caspian Sea should include regulations on the
use of biological and mineral resources and should address the rising of the Caspian
Sea, according to local press reports.
? In May 1996, Iranian press reports said Iran and Russia signed a memorandum of
understanding to expand cooperation in the field of fisheries. The two sides agreed on
points involving conservation and improvements in the use of marine bioresources in
the Caspian Sea, measures to address the illegal caviar trade, the promotion of fish
breeding in inland and sea waters, the establishment of fishing organizations, the use of
new technology to facilitate information exchange between scientists and fisheries
experts in both countries, and the coordination of fishing regulations.