Efforts Underway with Georgia: Minister of High-Tech Industry on Black Sea 'Internet'

Armenia continues negotiations with Georgia regarding a project to lay a new internet cable across the Black Sea floor. This was stated to Sputnik Armenia by the Ministry of High-Tech Industry in response to a written inquiry.

The idea for this major project arose after Armenia sold the shares of Caucasus Online, a company owning significant wholesale internet shares, to Azerbaijani businessman Nasim Hasanov, who is closely connected to the Azerbaijani leadership. This purchase allows Azerbaijani partners to technically analyze internet traffic, find certain patterns, and draw conclusions based on that.

In 2021, the Armenian side decided to lay its own cable.

“Negotiations with the Georgian side are ongoing. Based on the results, the final version of the project will be developed,” the Ministry noted in response to our inquiry.

The ministry also clarified that the implementation of this project would ensure 'internet diversity' and increase its reliability and independence.

The Armenian project is costly, with an estimated expense of around 45 million euros for laying the new cable. A feasibility study is required for the project’s implementation, as well as the development of construction, management, and financing models. Participation from Georgia is deemed possible due to the regional significance of the project.

The Armenian side is confident that the project will not only significantly enhance the security of incoming internet cables to the country but also create prerequisites for positioning Armenia as a transit country in terms of data transfer within the region. Furthermore, the project will stimulate cooperation between Armenia, Russia, Georgia, Bulgaria, the Middle East, and Central Asian countries, becoming a crucial connective link within the North-South and West-East regional corridors.

Caucasus Online, the Georgian operator of the optical cable running from Georgia to Bulgaria across the Black Sea, serves as the largest internet traffic line between Europe and the South Caucasus. Its main shareholders were Georgian investors, some of whom were registered in Europe. However, the sole owner of the company currently is NEQSOL Holding.

According to various estimates, Georgia accounts for about 80 percent of Armenia's external internet traffic. Additionally, Armenia utilizes two other cables towards Russia—one across the Black Sea and one land cable. The remaining 20% of the traffic is directed toward Iran. Here, Armenian operators act as a transit point for internet traffic towards Iran, Afghanistan, and recently also Qatar.