Uzbekistan International Affairs - The Times Of Central Asia

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German Chancellor will visit Central Asia on Sept. 15-17

German Chancellor Olaf Scholz will travel to Uzbekistan and Kazakhstan this month on his first trip to Central Asia, the German government said on Friday. Scholz will hold bilateral and foreign policy talks with leaders there and attend a Central Asia-Germany summit in Kazakhstan on the last day of his Sept. 15-17 trip, government spokesman Steffen Hebestreit said. A large, high-level business delegation will accompany the chancellor, he said. The summit in Kazakhstan, dubbed Z5+1, followed a similar meeting in Berlin last year that resulted in a “strategic regional partnership,” according to Hebestreit. “The Chancellor's trip next week will therefore also serve to breathe life into this regional partnership,” the spokesman said. European countries are increasing their engagement with Central Asia as they seek to boost trade and collaborate on issues such as security and climate change in a tense geopolitical environment. In April, David Cameron, who was then Britain’s foreign secretary, traveled to Central Asia, where he talked about the importance of engaging and competing in a region adjacent to China, Russia, Afghanistan and Iran. French President Emmanuel Macron visited Kazakhstan and Uzbekistan last year, become the first leader from France to visit the Central Asian region since 1994.

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The Onset of “Friend-Shoring” in Central Asia

As Central Asia’s significance for global supply chains grows, the world’s major economic powers are seeking closer economic ties with the region’s countries. China, Russia, and the West all curry favor through investments and initiatives to bolster the region’s exports and secure their supply chains. Bordering China and Russia, Central Asia spans a land surface area corresponding to 87% the size of the entire European Union (EU). The region has a combined market of 76 million people and gross domestic product of 450 billion U.S. dollars. It is critical to global energy supply chains as it possesses 20% of the world's uranium reserves, as well as 17.2% of total oil and 7% of natural gas deposits. Kazakhstan produces over half of the EU’s critical raw materials, i.e. substances used in technology which are subject to supply risks and are hard to replace with substitutes. In the first seven months of 2024, rail cargo across the Middle Corridor, a trans-Caspian trade route linking China to Europe, has increased 14-fold compared to the same period last year. As the region opens up and undergoes significant economic transformation, supply chains are increasingly directed there, sparking competition for control over its vast natural resources and production capabilities. Major economic powers are stepping in to strengthen bilateral ties to ensure reliable trade partnerships. These strategies, known as “friend-shoring,” aim to reduce geopolitical risks, enhance supply chain stability, and transform Central Asian countries into trusted allies by fostering strong bilateral relationships and deeper economic ties. China and Russia remain at the helm of regional activity China has been actively engaging with Central Asian countries through strengthening economic ties and building strategic partnerships. Through the Belt and Road Initiative (BRI), which aims to enhance infrastructure and trade connectivity across the region, China has helped strengthen the region’s rail network. China supplies equipment and invests in Uzbekistan’s electric vehicles, scooters, and leather production. Uzbekistan, in partnership with PowerChina and Saudi company ACWA Power, is also constructing the country’s first green hydrogen plant. Kyrgyzstan’s bilateral trade with China was up 30% in 2023 compared to 2022. This year, Turkmenistan has surpassed Russia in gas exports to China. In 2023, Kazakhstan's agricultural exports to China doubled to $1 billion compared to 2022, making China the largest importer of agricultural products from the country. Historically, Russia has been a major trading partner for Central Asian countries due to the Soviet legacy of a command economy, which established strong economic interdependencies that persisted in post-USSR period. While the region is aggressively diversifying its trade relationships, Russia is increasing gas supplies and energy infrastructure investments, specifically in renewables and nuclear facilities. Kazakhstan delivers most of its oil to Europe through Russia. Russian-led organizations, including the Eurasian Economic Union (EAEU) and the Commonwealth of Independent States (CIS), promote cooperation and economic integration with free movement of goods, services, and capital among member states. Russia's war against Ukraine has disrupted supply chains, but it has also opened up new trade opportunities, especially for Kazakhstan, as...

Central Asia Uzbekistan International Affairs Business & Economy Uzbekistan Business & Economy Uzbekistan International Affairs

Uzbekistan and Bulgaria to Increase Middle Corridor Freight Transport

On 3-4 September, the Uzbek-Bulgarian Commission on International Road Transport met in Tashkent to discuss expanding bilateral cooperation in international freight transport by road and creating more favorable conditions for national carriers from both countries. As reported by the Uzbek Ministry of Transport, the agenda focused on increasing the volume of freight traffic to EU countries via Bulgaria, using the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, which connects China and Europe via Central Asia and the Caucasus. After the meeting, the parties exchanged additional permit forms for trucks entering their countries for the remainder of 2024, and agreed to increase the issue of mutual permit forms 15-fold in 2025. The Uzbek Ministry added that to enhance cargo transportation to EU countries, an agreement had been made with Romania to waive the requirement of permits from April 1, 2024.

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A Model of Cooperation: Kyrgyzstan Selecting Dam Type for Kambarata-1 Hydropower Plant

On September 4, in Bishkek, Kyrgyzstan’s Cabinet of Ministers and the World Bank organized a roundtable on dam type selection for the country’s flagship Kambarata-1 Hydropower Plant (HPP). As the Kyrgyz Ministry of Energy reported, Swiss engineering company AFRY presented possible dam types for the flagship energy project at the meeting. A feasibility study will be prepared by May 2025 based on the type of dam chosen. According to Maksudjon Safarov, Senior Energy Specialist with the World Bank, the institution is financing comprehensive preparations for the Kambarata-1 HPP's construction. “The Swiss company AFRY is preparing the project’s feasibility study, with world-class experts involved in the work to ensure that the project is efficient, environmentally friendly, and sustainable," Safarov stated. The Kambarata-1 HPP will be situated in the upper reaches of the Naryn River in Kyrgyzstan. Its installed capacity will be 1,860 megawatts, with an average annual generation of 5.6 billion kilowatt-hours of electricity. The preliminary construction cost for the project is more than $4 billion. At the roundtable, Deputy Chairman of the Kyrgyz Cabinet of Ministers, Bakyt Torobayev, emphasized that time is critical in developing the Kambarata-1 HPP. “As part of the construction, trilateral agreements were signed between the Ministries of Energy of the Kyrgyz Republic, the Republic of Kazakhstan, and the Republic of Uzbekistan. This is a unique case when three countries in the region come to a common understanding and support for the project. We are confident that joint work will create a high-quality project to provide Central Asia with clean and renewable energy, improve water and energy resources, and strengthen regional cooperation." Kyrgyz Energy Minister Taalaibek Ibrayev noted significant progress in the ongoing preparations. “To date, several important works have already been completed. On August 30, the construction of a 1,388-meter transport tunnel was completed. Work is underway to build 15 km of concrete roads. We are working to provide electricity [for the future construction site], with 80% of overhead transmission lines now complete. Completion of a 110 kv power transmission line and a substation is scheduled for the end of 2024. Construction of a bridge across the Naryn River is underway, and at the same time, a workers' camp is being built. All work is going according to plan, and we are confident that all preparatory stages will be completed by next May,” the Minister stated. To support the project, a Donor Coordination Committee for constructing Kambarata-1 HPP was established at the Kyrgyz Republic International Energy Investment Forum, held in Vienna on June 10, 2024. The Committee comprises major international financial institutions and development partners, including the World Bank, the OPEC Fund, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, and the European Bank for Reconstruction and Development.

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Proposed Temporary Moratorium on Russian Citizenship for Central Asians

Sergey Mironov, leader of the “A Just Russia – For Truth” party, has written on his social media page of the necessity to introduce a temporary moratorium on granting Russian citizenship to immigrants from Central Asia. Since problems related to migration are currently central to the attention of legislators, he believes that the party's previous proposal of a similar initiative should be revisited. According to Mironov, the state should oppose "mass passports for workers" and protect its interests in national security, by introducing a moratorium on granting Russian citizenship to residents of Central Asian countries, “at least until 2026. And during this time, it will be possible to regulate the legislation, reform the migration service, clear it of bribe-takers, and check the legality of previously issued passports." Mironov's recommendation follows in the wake of a previous report by The Times of Central Asia and the President of Uzbekistan's opinion that the increase in geopolitical tensions and disputes, as well as the lack of mutual trust, harm the development of international cooperation in the fight against the threats of terrorism and extremism.

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Uzbek Security Chief: SCO Must Help Afghanistan to Fight Islamic State Khorasan Province

The Shanghai Cooperation Organization (SCO) is holding its 10th regional anti-terrorism conference in Tashkent. The conference is being held on September 4 and 5. At the conference's plenary session, Lieutenant General Abdusalam Azizov, the head of Uzbekistan's State Security Service, emphasized that the member countries of the SCO must work together to fight against international terrorism, extremism, and radicalism. “The Afghan government is fighting international terrorism based on its capabilities and resources, and the Afghan special service is leading the fight against the Islamic State and achieving results. We must fight together against the enemy,” Azizov said. Regarding the branch of Islamic State known as Islamic State Khorasan Province (ISKP), which has claimed responsibility for several fatal attacks in SCO member countries, including the attack on the Crocus City concert hall outside Moscow earlier this year, Azizov said: “It is important to help Afghanistan in the fight against ISKP, because the weakening of countermeasures will lead to the strengthening of this group, which, in turn, poses a threat to the security of the region.” ISKP was formed in 2014 as a collective of defectors from groups including al-Qaeda, Tehrik-e-Taliban (TTP), and former Taliban fighters from Afghanistan and Pakistan. It is estimated that ISKP has between 4,000 and 6,000 members. Since the Taliban killed its leader Sanaullah Ghafari in 2023, it is unclear who runs the group.