AIOC is the largest consortium in the largest of the oil fields, as large as three North Sea fields. . I would now like to discuss pipelines. Early oil was sent through Novorossisk. This route was not wholly successful. The Russians don't operate a system of quality banking, and can't differentiate different qualities of crude.
Azeri oil is mixed with Urals light in transit, which commands a lower price.
Azerbaijan's second option was the Baku-Suspa pipeline. The larger share of AIOC production will now flow south with cheaper costs. A second problem with the Novorossiisk route is the conflict between the Russians and the Chechens over payments. If the Russians want to be a commercial force, they need to lower tariffs. I fail to understand this position.