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Kazakhstan Hosts Summit of Central Asian Countries and Germany

Opening the summit in Astana, Kazakh President Kassym-Jomart Tokayev expressed gratitude to Federal Chancellor Olaf Scholz and Central Asian leaders for their participation and support of regional cooperation. Noting the strengthened relationship following the high-level dialog launched in Berlin last September, he stated, “I believe this is evidence of interest and aspiration from the Central Asian states and Germany for comprehensive development of strategic partnerships. Our meeting is called to summarize joint work and outline new ways to deepen cooperation. Today, we will discuss important trade, investment, energy, ecology, transportation and logistics, education, and science issues. I am confident that our constructive discussions will lead to concrete solutions that will benefit all our countries.” According to the President of Kazakhstan, Germany's socio-economic, scientific, and technological progress is an example for many countries. The positive impact of German technologies and investments in various spheres of the economy cannot be overestimated. Hence, full-scale partnership with Germany, one of the world's most developed countries and the largest economy in the European Union, is a priority for Kazakhstan and other Central Asian states. The most promising areas of cooperation between Central Asian states and Germany include increasing trade turnover, cooperation in the energy sector, development of industrial cooperation, transportation and logistics interconnection, and development of scientific and educational ties. With reference to the above, Tokayev stated: “Wide investment prospects are opened by the development of the Middle Corridor, including the modernization and digitalization of the Caspian Sea ports and construction of cargo terminals. Further integration of Central Asian and European transportation and logistics systems remains urgent. Kazakhstan welcomes the decision of European partners to allocate 10 billion euros under the Global Gateway program for the development of the Middle Corridor. We count on Germany's assistance connecting this route with the Trans-European Transport Network (TEN-T) and the Global Gateway strategy." Citing the need for sustained focus on strengthening and ensuring international security and stability,  Tokayev then emphasized: “Our countries closely cooperate in a multilateral format, including within the framework of the United Nations. We intend to continue to strongly support the efforts of this non-alternative universal Organization in the fight against terrorism, extremism, illegal migration, climate change, peacekeeping, and disarmament. Kazakhstan is ready to participate in the UN reform process. We believe that several developed countries, including Germany, certainly deserve a place as permanent members of the UN Security Council. I want to take this opportunity to wish the Kyrgyz Republic success in promoting its candidacy for the post of a non-permanent member of the UN Security Council for 2027-2028. I am confident that Kyrgyzstan will be able to significantly contribute to strengthening stability and security in Central Asia and beyond." Following speeches by Federal Chancellor of Germany Olaf Scholz, President of Kyrgyzstan Sadyr Japarov, President of Tajikistan Emomali Rahmon, President of Turkmenistan Serdar Berdimuhamedov and President of Uzbekistan Shavkat Mirziyoyev, a Joint Declaration was adopted by the Heads of the Central Asian states and the Federal Chancellor of Germany.

Turkmenistan and EU Launch Ambitious Green Development Project for 2024-2028

The European Union and Turkmenistan have officially launched a new project entitled “EU for Turkmenistan's Green Development: Policy Dialogue and Climate Action 2024-2028.” The project, funded by the EU and the German Ministry of Foreign Affairs, aims to support environmentally sustainable development in Turkmenistan using best practices and EU standards. The initiative will implement measures to promote renewable energy and energy efficiency, including reducing methane and greenhouse gas emissions. The project was launched in May 2024 following the signing of a Memorandum of Understanding and Cooperation between the Ministry of Energy of Turkmenistan, the State Concern Turkmengaz, and the German organization GIZ. This coincided with the 30th anniversary of diplomatic relations between the EU and Turkmenistan. The document emphasizes the importance of further cooperation in energy and climate policy. According to project manager Karolina Milov, the key focus will be creating an effective dialog between the EU and Turkmenistan's state structures to promote green energy. Strengthening the capacity of state institutions to develop climate change adaptation measures is also planned. The project includes two pilot areas that will demonstrate adaptation measures in renewable energy, methane emissions monitoring, and other environmental initiatives. These collaborative efforts are expected to mitigate the effects of climate change, both regionally and globally. Turkmenistan is actively developing green energy and technology initiatives. In recent years, the country has started launching several renewable energy projects. One of the key projects is constructing the country's first 10 MW hybrid wind-solar power plant in the Balkan province, creating a sustainable energy system for remote areas. Also, in 2022, an agreement was reached with Masdar from the UAE to build the country's first large-scale solar power plant with a capacity of 100 MW. In 2023, the government of Turkmenistan contracted a Turkish company to build a 1,574 MW power plant.

Central Asian Countries Hold Second Inter-Parliamentary Forum, Adopt Khiva Declaration

The second inter-parliamentary forum of Central Asian countries was held in Khiva, Uzbekistan on 12 September. It was attended by political representatives from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, members of youth parliaments, and local and international mass media. Topics addressed at the forum included new forms of interparliamentary cooperation between Central Asian countries, and recommendations for increasing the role of women and young people in the region's socio-economic development. The Special Representative of the United Nations Secretary-General for Central Asia, Kaha Imnadze, commented: “This forum once again confirms Uzbekistan's important role in strengthening regional cooperation, as well as in ensuring peace and security.” Imnadze added that the UN is ready to strengthen cooperation with Central Asia in areas such as the use of transboundary waters, the melting of glaciers, gender equality, and youth activism. The forum's results resulted in the adoption of the Khiva Declaration, which will serve as the basis for the future cooperation of Central Asian countries within the framework of inter-parliamentary initiatives. The first inter-parliamentary forum of Central Asian countries was held last year in Turkestan, Kazakhstan. The event led to the adoption of the Turkestan Declaration.

Swedish Company to Help Turkmenistan Establish Fast Payment System

The Swedish IT company "CMA," specializing in software solutions for financial markets, has signed an exclusive agreement with Turkmen company "Abraýly Işler", at the International Conference “HI-TECH Turkmenistan 2024.” Noting the value of cooperation in creating a national system of fast payments, CMA Regional Director Maxim Nescheret stated, “We have already implemented similar projects in more than 50 countries, and we hope to share our experience with Turkmenistan in creating this important system.” CMA, founded in 1983, currently provides over 37 central banks and many commercial banks worldwide with solutions for instant payment systems, central depositories, and automated clearing houses. Built on CMA's advanced technology platform for high performance, scalability, and security, the service is customized to meet each client's needs. In addition to the fast payment system, CMA is engaged in discussion with Turkmenistan's stock market regarding the possibility of creating basic services, including a central depository and settlement center, to help attract external investments and expand cooperation with foreign investors. Although Turkmenistan is actively modernizing its banking sector and digital payments, including the introduction of a contactless payment system and mobile applications to facilitate transactions, challenges remain. One of the main issues is the need for infrastructure to support fast and contactless payments. Although local banks such as Halkbank have introduced mobile apps and terminals for contactless transactions, their usage remains limited. Moreover, people often lose money due to bank failures and technical problems.

Central Asia Seeks Increase in Trade with China

On September 12, the Central Asia-Jiangsu Trade Center, a multifunctional platform showcasing exports from Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan, opened in Nanjing, the main city of Jiangsu Province in eastern China. According to the Kazakh Ministry of Trade and Integration, the operation of the Center in Jiangsu Province, known for its developed infrastructure, will facilitate access to the huge Chinese market for all five Central Asian countries. Plans are now in place to launch a similar multifunctional center in Kazakhstan’s capital, Astana, to showcase Chinese and Kazakh goods. Official statistics show continued growth of trade turnover between Kazakhstan and China. During the first seven months of this year, bilateral trade increased by 2.8% compared to the same period in 2023,  and amounted to $16.8 billion. Between January and July 2024, trade between Kazakhstan and Jiangsu Province grew by over $1 billion, from $723.3 million to $1.758 billion. As reported by  Kazakh Minister of Trade Arman Shakkaliyev, Jiangsu Province currently imports products, mainly from the industrial and agricultural sectors, worth more than $266 billion annually.

Work Begins on Afghan Section of the TAPI Gas Pipeline

Turkmenistan and Afghanistan have now begun construction of the Afghan section of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. To mark the launch of work on the pipeline’s Serhetabat-Herat section, Chairman of the Halk Maslahaty (People’s Council) of Turkmenistan, Gurbanguly Berdimuhamedov, and Mullah Mohammad Hassan Akhund, the Prime Minister of the Taliban-led Afghan government, attended a ceremony  at a checkpoint on the Turkmen-Afghan border on September 11. The staged installation of the TAPI pipeline, already completed in Turkmenistan, will eventually transfer 33 billion cubic meters of Turkmen natural gas annually to Afghanistan, Pakistan, and India. At an estimated cost of $10 billion, the TAPI pipeline will span 1,814 kilometers.  With 816 kilometers running through Afghanistan, the project will meet the country's gas needs, generating around $450 million in annual transit fees, before continuing on to Quetta and Multan in Pakistan and Fazilka in India. Gas-rich Turkmenistan currently exports natural gas to China and Russia but once completed, the TAPI project will enable the country to diversify its export routes and help realize far-reaching plans to transport its gas across the Caspian Sea to Azerbaijan, Turkey, and Europe. Mullah Mohammad Hassan Akhund stated that the commencement of work on the TAPI project on Afghan soil would strengthen relations between Afghanistan and Turkmenistan, whilst speaking from Ashgabat via videoconferencing, Turkmenistan President Serdar Berdimuhamedov, announced, "The commencement of the TAPI project [on the Afghan territory] and other projects is beneficial not only for Afghanistan but also for the countries in the region." In addition to TAPI, the ceremony opened a 177-meter-long railway bridge at the Turkmen-Afghan border on Serhetabat-Turgundi railroad, launched the construction of the Serhetabat-Herat (Afghanistan) fiber-optic communication line, a warehouse complex in the dry port of the Turgundi railway station at the Turkmen-Afghan border, and the Turgundi-Sanabar section of the Turgundi-Herat railway. The event also marked the commission of the Nur-el-Jahad power plant in Afghanistan's Herat province,  as part of the first phase of the Turkmenistan-Afghanistan-Pakistan (TAP) power transmission line project.