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Middle Corridor

Can Caspian Cargo Fleets Meet Middle Corridor Demands?

Construction of infrastructure along the Middle Corridor, also called the Trans-Caspian International Trade Route, to ship goods between China and Europe is progressing at a frantic pace. When Russia launched its full-scale invasion of Ukraine in late February 2022, it inadvertently gave a new impetus to the development of a trade network through Central Asia and the South Caucasus that had been slowly taking shape since the end of the 1990s. One of the most formidable challenges along the Middle Corridor is boosting maritime cargo across the Caspian Sea. Steps are being made, including some significant recent moves, but the capacity of shipping east-to-west over the Caspian Sea faces challenges in meeting the ever-growing demand for commercial vessels. By Leaps and Bounds In 2022, the volume of cargo through the Middle Corridor was some 1.5 million tons, more than twice the amount transported in 2021. In 2023, it topped 2.7 million tons, in 2024 was about 4.5 million tons, and in 2025 was approximately 5.2 million tons. Turkish President Recep Tayyip Erdogan visited Kazakhstan on May 13-14, where his host, President Kassym-Jomart Tokayev, said the figure could reach 10 million tons “in the near future,” and are predictions it could happen as soon as 2027. The roads, railways, and port facilities along the Middle Corridor are expanding rapidly. However, according to a report from Azerbaijan’s Trend news agency in mid-May, the Azerbaijani Caspian Shipping Company (ASCO) says that since 2013, only “a total of 35 new vessels have been commissioned.” The Merchant Fleets of Kazakhstan and Turkmenistan On the eastern side of the Caspian Sea, Kazakhstan and Turkmenistan have been working to increase their maritime shipping. Both countries invested heavily in upgrading their Caspian ports, in Kazakhstan’s case at Aktau and Kuryk, and for Turkmenistan at Turkmenbashi City. Since the end of April, both countries have moved to boost their potential to ship cargo across the Caspian. Kazakhstan’s state railway company, Kazakhstan Temir Zholy (KTZ), announced on April 30 that it would build its own maritime fleet starting with six new vessels, each with a deadweight of up to 9,900 tons and able to carry up to 537 twenty-foot equivalent units (TEU). Once completed, those six cargo ships will join the two dry cargo and three container vessels in the Caspian Sea operated by Kazakhstan’s state maritime shipping company Kazmortransflot. The three container ships – Berkut, Sunkar, and Barys – all started operation in 2019, have a deadweight of 5,200 tons, and can each carry up to 350 TEU. The two dry cargo ships, the Beket Ata and Turkestan, have a deadweight of 5,467 tons and can carry 4,182 tons. On May 12, the dry cargo ship Gadamly arrived at the Baku International Sea Port. The Gadamly is Turkmenistan’s first dry cargo vessel and is able to carry up to 240 TEU. A second cargo vessel, Manzil, should be launched before the end of this year. Arif Aghayev, the deputy chairman of Azerbaijan Railways, said at a ceremony marking the...

Azerbaijan

Uzbekistan and Azerbaijan Plan New Parks in Tashkent and Baku

Uzbekistan and Azerbaijan have agreed to establish new public parks in each other’s capitals as part of broader efforts to expand bilateral cooperation, Uzbekistan’s Ministry of Investment, Industry and Trade has reported. The announcement followed an official visit to Azerbaijan from April 22 to 24 by a delegation led by Minister Laziz Kudratov. During the trip, talks were held with Azerbaijan’s Ministry of Economy and senior executives from major companies on joint projects and future cooperation. According to the ministry, both sides identified several priority areas, including mining, construction materials, transport and logistics, urban planning, agriculture, and pharmaceuticals. Particular attention was given to plans to create an “Uzbekistan” park in Baku and an “Azerbaijan” park in Tashkent, alongside expanding pharmaceutical retail networks and developing fruit and vegetable processing projects. Trade between the two countries has been growing steadily. In 2025, bilateral trade turnover reached $307.3 million, marking a 14.6% increase compared to the previous year, the ministry said. The Times of Central Asia previously reported that trade rose by 25% in 2024, while the number of joint ventures approached 300, with a combined project portfolio valued at around $4 billion. The two countries have set a target of increasing annual trade and investment to $1 billion by 2030, supported by a comprehensive cooperation program covering sectors such as industry, infrastructure, agriculture, healthcare, tourism, and banking. Progress has also been noted in transport and energy cooperation. Both sides highlighted growing cargo volumes along the Trans-Caspian International Transport Route, also known as the Middle Corridor. Uzbek shipments along the route increased by 25% in 2024, exceeding one million tonnes, aided by the introduction of a new electronic permit system.

AZAL Plane Crash

Russia, Azerbaijan Settle Over Airliner Crash in Kazakhstan in 2024

Russia and Azerbaijan said on Wednesday that they have reached “an appropriate settlement” that includes compensation payments in the case of an Azerbaijan Airlines plane that crashed in Kazakhstan after being damaged by a Russian military strike on Dec. 25, 2024. The agreement reflected efforts by the two countries to resolve a long-running dispute over the crash, which killed 38 of the 67 people on board. The Embraer 190 airliner crashed near the Kazakh city of Aktau after it was struck while trying to land in Grozny, Chechnya, and then diverted across the Caspian Sea. “The steps undertaken confirm the mutual intention to build further mutually beneficial cooperation,” the foreign ministries of Russia and Azerbaijan said in a joint statement. The statement said the settlement was based on an accord reached in October 2025, when Russian President Vladimir Putin acknowledged in a meeting with Azerbaijani President Ilham Aliyev that Russian missile fire had damaged the plane. Putin indicated that the strike was accidental as it occurred while the Russian military was dealing with a Ukrainian drone attack. His comments went some way toward easing Azerbaijan’s anger over what it viewed as Russian attempts to avoid responsibility for the disaster. The two sides “agreed to appropriately resolve the issues arising from the accident,” which occurred “as a result of the involuntary operation of the air defense system in the airspace of the Russian Federation,” the joint statement said. It expressed condolences to relatives and friends of those who died. The two foreign ministries did not release details of the compensation payments. Kazakhstan is still leading an investigation of the crash.

Middle Corridor

Kazakhstan and Azerbaijan Are Reinforcing the Middle Corridor’s South Caucasus Link

On April 7 Kazakhstan’s Foreign Minister Yermek Kosherbayev visited Tbilisi to hold talks with Georgian Foreign Minister Maka Bochorishvili and sign a 2026–2027 foreign-ministry cooperation program. He called Georgia “a key link” in the Europe–Asia transport architecture and said the common task was to raise corridor capacity, improve service predictability, and ensure tariff transparency. The materialization of the bilateral cooperation is already evident from last June’s opening of the Poti multimodal terminal by a joint Kazakhstani-Georgian company. The real meaning of Kosherbayev's discussions in Tbilisi lies in their context. On April 2 in Baku, Prime Minister Olzhas Bektenov said Kazakhstan plans an intergovernmental agreement with Azerbaijan this year to strengthen the status of the Middle Corridor (also known as the Trans-Caspian International Transport Corridor, TITR), and he proposed moving quickly on the Digital Monitoring Center under the Organization of Turkic States (OTS). On April 6 in Tbilisi, Azerbaijani President Ilham Aliyev called the Azerbaijan–Georgia segment the corridor’s “main transport artery.” Then on April 8 in Baku, Aliyev received Kosherbayev together with Kazakhstan’s transport minister. The official readout ranged from the Middle Corridor to joint investment, green-energy, and fiber-optic projects. Kosherbayev’s April 7 stop in Tbilisi thus belongs to a short Kazakhstan-led diplomatic run across the corridor’s western nodes. Kazakhstan and Azerbaijan Tighten the Corridor Kazakhstan’s early-April engagement in the South Caucasus rests on its eastward-looking framework with China. Two China–Kazakhstan documents were already in evidence in October 2023: a Memorandum of Understanding (MoU) on deepening the development of the China-Europe Railway Trans-Caspian route, and an intergovernmental agreement on developing that route. China’s National Development and Reform Commission (NDRC) subsequently clarified that the agreement focused on stronger transit organization, fewer administrative barriers, and improved logistics and transport operations. In July 2024, Kazakhstan’s President Kassym-Jomart Tokayev and his Chinese counterpart Xi Jinping jointly attended the opening of the Trans-Caspian direct fast transport service; NDRC then recorded a work mechanism with Kazakhstan’s transport ministry to carry that cooperation forward. On January 1, the first Trans-Caspian train of 2026 departed Xi’an for Baku carrying 45 containers of photovoltaic equipment. Chinese reports assert that the route had accumulated 466 runs by the end of November 2025, moved onto a weekly six-outbound and three-inbound timetable, and cut travel times from the roughly 20-day average recorded in 2025 to a standard 15 days, with the fastest runs taking 11 days. On April 3, it was also reported that there were 85 Xi’an Trans-Caspian trains in the first quarter of 2026, up 150% year-on-year, while the Kazakhstan–Xi’an terminal in Almaty handled more than 6,000 containers in that quarter alone, a 60% increase from a year earlier. A separate quasi-official Chinese trade-services portal reported that Trans-Caspian trains had reached daily service and that 371 such trains had run in January–October 2025, up 33%. China’s NDRC also said in late 2025 that Aktau and Baku should be strengthened as hub nodes in this corridor system. Azerbaijan is the indispensable partner without which the route’s western logic does not function. Bektenov’s...

Caspian Green Energy Corridor

Kazakh Parliament Backs Caspian Green Energy Corridor Linking Central Asia to Europe

Kazakhstan’s Mazhilis, the lower house of parliament, has ratified a strategic partnership agreement with Uzbekistan and Azerbaijan on cooperation in green energy production and transmission. The agreement involved the construction of a high-voltage power cable along the seabed of the Caspian Sea. Speaking at a plenary session, Energy Minister Yerlan Akkenzhenov noted that the document had been signed by the leaders of the three countries in November 2024 on the sidelines of the COP29 climate conference in Baku. According to the minister, the agreement lays the groundwork for one of the most ambitious energy initiatives in the history of independent Kazakhstan. The project involves the creation of a “Green Energy Corridor” designed to facilitate the export of environmentally friendly electricity, as well as green hydrogen and green ammonia, from Central Asian countries to European markets via the Caspian region. A key component of the initiative is the planned installation of a high-voltage direct current underwater cable system across the Caspian Sea. Officials say the project could provide Kazakhstan with direct access to the European Union’s energy market through interconnection with a similar energy infrastructure initiative being considered in the Black Sea region. The initiative reflects a broader effort by Central Asian governments to position the region as a supplier of low-carbon energy to Europe while developing east-west infrastructure that bypasses traditional Russian transit routes. For Kazakhstan and Uzbekistan in particular, exporting renewable electricity and related products such as green hydrogen could open new markets as global demand for cleaner energy continues to grow. Italian consulting company CESI has begun preparing a feasibility study, which is expected to define the project’s financial model and core technical parameters. The cost of preparing the feasibility study is estimated at around €1 million and will be fully covered by grant funding. The Asian Development Bank and the Asian Infrastructure Investment Bank have indicated their readiness to allocate up to $2 million in additional support. To coordinate implementation, the Green Corridor Alliance joint venture was established in July 2024. Ownership is divided equally among Kazakhstan, Uzbekistan, and Azerbaijan, with each country holding a 33.3% stake. The company is currently overseeing expert consultations and preparing subsequent phases of the project. According to Akkenzhenov, successful implementation would strengthen Kazakhstan’s position in global energy markets. “The project will help position Kazakhstan as a reliable partner in sustainable energy, capable of contributing to international energy corridors and implementing large-scale technological initiatives,” he stated. The initiative is also expected to expand export potential, stimulate the development of new energy technologies, and reinforce Kazakhstan’s role as a regional energy hub. Following the parliamentary debate, the Mazhilis deputies approved the agreement, emphasising its importance for enhancing regional energy security. The project is intended to deepen the interconnection between the power systems of Central Asia and Azerbaijan and create conditions for stable exports of green electricity. At the same time, the initiative highlights the growing role of the Caspian region in emerging energy corridors linking Central Asia with European markets. Alongside transport projects...

Iran

How an Incident on the Azerbaijan-Iran Border Became a Test for Diplomacy in the Region

The drone strike on Azerbaijan's Nakhchivan Autonomous Republic on March 5 has become one of the most serious incidents in relations between Baku and Tehran in recent years. Azerbaijani authorities described the incident as a terrorist act and demanded explanations and an apology from Iran. Tehran, in turn, rejected the accusations, suggesting the possibility of a provocation by “third forces.” Following the drone incident, Kazakh President Kassym-Jomart Tokayev held a phone call with Azerbaijani President Ilham Aliyev to discuss regional security. According to the Azerbaijani presidency, Aliyev thanked Tokayev for condemning the attack on Nakhchivan and for voicing support for Azerbaijan. What began as a local security incident has raised concerns about regional stability in the South Caucasus. Terrorist Act Against the State Azerbaijani President Ilham Aliyev issued a statement strongly condemning "this despicable terrorist act. Those who committed it must be brought to justice immediately,” Aliyev said. According to Azerbaijan’s Ministry of Foreign Affairs, one drone hit the terminal building of Nakhchivan International Airport, while another crashed near a school in the village of Shekerabad. Two civilians were reportedly injured. Baku stressed that the attack, allegedly launched from Iranian territory, violated international law and could lead to a dangerous escalation of tensions in the region. Diplomatic Escalation Despite the harsh rhetoric in the first hours after the incident, Baku opted to rely primarily on diplomatic tools. The Iranian ambassador was summoned to the Azerbaijani Foreign Ministry and handed a formal note of protest requesting official explanations. Azerbaijan said on Friday that it was evacuating staff from its embassy in Tehran as well as its consulate in the city of Tabriz. At the same time, Azerbaijani security forces were placed on high alert. According to Aliyev, the country’s armed forces were instructed to prepare possible countermeasures. Turkish President Recep Tayyip Erdogan spoke by phone with Aliyev, condemning the attack and expressing support for Azerbaijan, according to official statements. Reports of alleged Iranian-linked sabotage plots also surfaced, with the Azerbaijani authorities stating that several terrorist attacks had been prevented on the country’s territory. According to the State Security Service, the Iranian Islamic Revolutionary Guard Corps was behind the plots. Among the alleged targets was the Baku-Tbilisi-Ceyhan oil pipeline, a strategic energy corridor linking the Caspian region with Turkey and one of the main routes for exporting Azerbaijani oil. According to Azerbaijani sources, other potential targets included the Israeli embassy, a synagogue in the capital, and a leader of the local Mountain Jewish community. The security service reported that three explosive devices had been brought into the country but were discovered and defused before they could be delivered. The development of the crisis has prompted increased diplomatic contact between world leaders. Russian President Vladimir Putin held a telephone conversation with Iranian President Masoud Pezeshkian amid the growing regional tensions. Shortly thereafter, Russia’s Foreign Ministry called on both sides to exercise restraint and emphasized the need for a thorough investigation into the drone strike. On March 7, the foreign ministers of all the Central...