It wasn't exactly a surprise last week when Russia and Azerbaijan announced they had failed to agree on terms to extend the lease of the Gabala radar station which the Russian military operates in Azerbaijan. Azerbaijan had little incentive to let Russia keep using the radar, and so demanded a huge increase in the rent from $7 million a year to a reported $300 million. Russia, meanwhile, doesn't have much leverage over Azerbaijan, and anyway is in the process of setting up a next-generation radar system on its own territory, in Armavir in the North Caucasus. That system is apparently set to become operational in the first quarter of 2013.
Still, Russia clearly wanted the station to remain, though it's not clear on what terms. The post-mortems of the failure of negotiations, interestingly, differ markedly depending on which country they come from. In Azerbaijan, the public consensus seems to be that there will be no serious ramifications. From APA:
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