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AleksandrR [38]
3 years ago
7

Why do the countries around the Caspian Sea, other than Russia, have the highest economic output?

Geography
1 answer:
34kurt3 years ago
5 0

Answer:

The Caspian Sea, located on Iran's northern border, surrounded by Azerbaijan, Kazakhstan, and Turkmenistan, and sharing a border with the south-west corner of Russian territory, is the epicenter of a collision of regional, national and business issues. These include questions among the littoral countries over demarcating the Sea, route diversification for oil pipelines, state interests, investor concern over political and ethnic stability, and the role of international agreements.

Explanation:

Economic interests: Russia wants to ensure that cash flows in the form of Western capital will continue from Central Asian and Siberian oil fields, and that cash flows are not be redirected out of Russia and into the Caspian region. Russia can compete on a level playing field with Kazakhstan and other Caspian oil investors with the proper Production Sharing Agreement (PSA) legislation in place.

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