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Azerbaijan, Kazakhstan and Uzbekistan to Export Green Power to Europe

On 1 May , Azerbaijan, Kazakhstan, and Uzbekistan’s ministers of energy gathered in Tashkent to sign a memorandum of cooperation aimed at connecting their countries’ energy systems. The focus of the initiative is to explore means of connecting energy systems via a high-voltage cable embedded in the Caspian Sea to enable further export of green energy from Azerbaijan, Kazakhstan, and Uzbekistan to European Union countries. Referencing the parties’ earlier draft technical specification for the deep-sea cable, Kazakhstan’s Minister of Energy Almasadam Satkaliev stated, “A proposed business model will be prepared for the development of international transmission corridors - financing, revenue, ownership - and the sale of green energy to European Union countries.” Meanwhile, Asiaplustj.info reports that Tajikistan is still not being envisioned as a part of the system. As that publication notes, Uzbekistan's energy system currently operates in parallel with the energy systems of Kyrgyzstan and Kazakhstan within the framework of the United Energy System of Central Asia (UES CA), which was created under the Soviet Union. This system was abandoned by Turkmenistan in 2003 because Uzbekistan refused to allow transit of Turkmen-produced electricity through its infrastructure. "In November 2009, after a major accident in Tajikistan's energy system, Uzbekistan unilaterally left the UES CA, which automatically left Tajikistan out of this system as well. In 2018, Uzbekistan restored parallel operation within the regional system. Since 2019, with financial support from the Asian Development Bank, work has been underway to bring Tajikistan back into the unified energy ring of Central Asia. The Ministry of Energy of Tajikistan last summer reported on its intentions... to join the regional system by the end of 2023. but this has not happened so far," the report noted.

Conflict Resolution Armenia Azerbaijan

Kazakhstan Says It’s Ready to Host Azerbaijan-Armenia Talks; No Date Announced

Kazakhstan’s president said on Wednesday that he hopes planned talks in Almaty between Azerbaijan and Armenia will lead to a lasting peace in the South Caucasus, though he did not provide a date for the negotiations. “I welcome the agreement between the Republic of Azerbaijan and the Republic of Armenia to hold talks at the Foreign Ministers’ level on the preparation of a peace treaty between the two states, at the suggestion of the Kazakh side,” President Kassym-Jomart Tokayev said in a statement. He said he hoped the upcoming meeting would help with the “practical implementation” of agreements between the two sides. Armenia and Azerbaijan have been locked in tension and conflict over territory since the 1990s, though the two sides have been working to delineate their borders following Azerbaijan’s retaking of control of the disputed Nagorno-Karabakh region last year. Kazakh Foreign Ministry spokesman Aibek Smadiyarov said this week that Kazakhstan is supporting the talks but will not act as mediator, according to reports in Azerbaijan and Armenia. “The upcoming negotiations will be held exclusively between the parties,” Armenian radio quoted Smadiyarov as saying. “We are not talking about Astana’s mediation, we are only providing goodwill services, the so-called good offices.” Kazakhstan benefits economically from stability in the Caucasus because it exports oil through Azerbaijan. In March, Azerbaijan’s energy minister met his counterpart in Kazakhstan to discuss boosting Kazakh oil flows via the Baku-Tbilisi-Ceyhan pipeline.

negotiations Armenia Azerbaijan

Azerbaijan and Armenia to Hold Talks in Kazakhstan

Officials in Baku have agreed to a meeting of the foreign ministers of Azerbaijan and Armenia in Kazakhstan. Azeri president Ilham Aliyev stated as much at a meeting with participants of the international forum "COP29 and a Green Vision for Azerbaijan" held at ADA University, Turan.az reports. Aliyev said that if Yerevan gives reciprocal consent, their next talks will be held in Astana. He reminded the audience of the previously concluded Madrid Principles, which were first proposed in 2007. "We have a common understanding of how the peace agreement should look like. We just need to work out the details. However, of course, both sides need time. Now there is a unique chance. When the USSR collapsed there were wars in our region, unlike the Baltic States, which started their independent life peacefully. Now we have this chance. I think COP29 is a great opportunity for this," Aliyev said. On April 15 Kazakhstan's president Kasym-Jomart Tokayev paid an official visit to Armenia. Tokayev called on Yerevan and Baku to settle the conflict through negotiations, and he suggested Kazakhstan as the location for hosting the dialog. Tokayev himself spent years as a diplomat, and Kazakhstan seems to be positioning itself as an international mediator, aiming to be recognized as a significant diplomatic player on the world stage. Member of the Kazakhstan Institute for Social Development, Yernar Kushaliyev commented: "Kazakhstan pursues a multi-vector foreign policy, which allows it to effectively interact with various global powers and regional actors. Kazakhstan has a unique potential to play the role of the main mediator in the Eurasian region, especially in the settlement of disputes between states. The country maintains a neutral position, not participating in military conflicts, which creates favorable prerequisites for mediation and diplomacy. This position strengthens confidence in Kazakhstan as a reliable mediator and organizer of peace negotiations". Kushaliyev stresses that, in the context of the current negotiations, the military situation is not developing in Armenia's favor. "Azerbaijan, in its turn, has successfully implemented a number of strategic and tactical tasks in Nagorno-Karabakh, strengthening its positions. As a result of these circumstances, it seems likely that both sides will be able to come to constructive agreements and demarcate their borders during the negotiations to be held in Astana," he said.

Education business and economy Bilateral Trade Azerbaijan Transport Kyrgyzstan

Azerbaijan and Kyrgyzstan Expand Economic and Transport Cooperation

During a state visit to Azerbaijan on 24 April, Kyrgyzstan President Sadyr Japarov joined President Ilham Aliyev in bilateral talks at the 2nd gathering of the Interstate Council of Azerbaijan and Kyrgyzstan. As a result of the meeting in Baku and in support of a joint declaration to deepen relations, the leaders signed a strategic partnership agreement between Azerbaijan and the Kyrgyz Republic. In a statement to journalists, President Aliyev referred to centuries-old ties of cooperation, friendship and interaction enjoyed by Azerbaijan and Central Asia, and announced, “Today, the regions of Central Asia, the Caspian Sea and Azerbaijan are of great importance in terms of energy resources, transportation routes and trade. We are seeing great potential here and are strengthening interaction with our traditional partners from brotherly countries. Among them, cooperation with Kyrgyzstan is of particular importance.” During the meeting, the two governments signed an addendum to the agreement on the authorized capital of the Azerbaijani-Kyrgyz Development Fund, to quadruple it from $25 million to $100 million. To date, the Fund has received over 40 applications for investment projects in Kyrgyzstan and according to Aliyev, the construction of a five-star hotel financed by Azerbaijan already begun at Kyrgyzstan’s Lake Issyk-Kul, is due for completion by the end of next year. The president commended the significant increase and potential for growth in trade between Azerbaijan and Kyrgyzstan and reported Azerbaijan’s interest in investing in renewable energy projects in Kyrgyzstan. With reference to transport, he recommended that consultations proceed on coordination of transport routes in terms of digitalization and tariff policy, to make the route via the Caspian Sea and Central Asia to Europe both faster and more commercially viable. President Japarov, in turn, referenced Kyrgyzstan’s construction of a secondary school in the Aghdam district of Azerbaijan, saying, “The construction of this school is Kyrgyzstan's contribution to the restoration of peace in the regions affected by the [Azeri-Armenian] conflict.”

Trans-Caspian Corridor Kazakhstan Azerbaijan

Trans-Caspian Corridor High on Agenda of Kazakh President’s Visit to Azerbaijan

On March 11th, Kazakhstan’s president Kassym-Jomart Tokayev and Azerbaijan’s president Ilham Aliyev attended the first meeting of the Interstate Council of Kazakhstan and Azerbaijan in Baku where freight and oil shipment across the Caspian Sea was high on the agenda. The leaders also participated, by teleconference, in a ceremony marking the arrival of the first container train in Azerbaijan’s Absheron station following its departure on February 28th from the Kazakh transport and logistics centre in China’s Xi'an, via the new section of the Trans-Caspian International Transport Route (TITR). At the ceremony, Tokayev emphasized that against current global geopolitical turbulence, the creation of a new transport and logistics framework for Eurasia has a key role to play in nurturing close and fruitful cooperation between Kazakhstan and Azerbaijan. Following talks with the Azerbaijani president, Tokayev spoke of the intensifying degree to which other countries struggle to access transport and logistics opportunities. “This is a strategic area. As testified by today’s ceremony, the close interaction between Kazakhstan and Azerbaijan, as natural partners, is therefore both gratifying and highly significant.” Outlining other issues raised at the meeting, the Kazakh president told the press, “We discussed joint efforts in the fields of digitalization, the creation of artificial intelligence, and the construction of fibre-optic communications along the bed of the Caspian Sea. Each is a unique project.” Azerbaijani President Ilham Aliyev reiterated that the Trans-Caspian transport corridor will determine the level of regional cooperation. “It is impossible to become a transit country without good relations with neighbours. Both Kazakhstan and Azerbaijan have demonstrated their commitment to regional cooperation and strengthening their relations with their neighbours. We are separated the Caspian Sea but this is no longer an obstacle. On the contrary, with the Trans-Caspian transport route set to reach its full potential, the Caspian Sea is a bridge not only between our countries, but also between many others too.” In his report to the Kazakh-Azerbaijani Business Council on cargo transported via the TITR between Kazakhstan and Azerbaijan, Satzhan Ablaliev, Kazakhstan’s Deputy Minister of Transport, stated: “The volume increased by 65% in 2023, and in the current year, is planned to increase by a further 43%, of up to 4.2 million tons. In January alone, the volume of transportation increased 2.5-fold compared to January last year. The transit of Chinese containers has increased almost 3-fold.” During Tokayev’s visit, Kazakhstan’s national oil and gas company KazMunayGas and Azerbaijan’s state oil company SOCAR signed an agreement to increase the transit of Kazakh oil across the Caspian Sea through Azerbaijan along the Aktau-Baku-Tbilisi-Ceyhan route to 2.2 million tons per year. This represents significant progress on an agreement drawn up in 2022 to transport up to 1.5 million tons of oil along the same route. The two companies also signed a Memorandum of Strategic Cooperation on the purchase and sale of Kazakh oil for further processing at SOCAR’s refineries and subsequent trading in the regional and global markets.

Kazakhstan Azerbaijan crude oil

Kazakhstan Seeks to Increase Oil Transit Through Azerbaijan

With the production of crude oil set to rise in Kazakhstan, the country plans to increase shipments across the Caspian Sea and through Azerbaijan. On March 6th, Kazakhstan’s Minister of Energy Almasadam Satkaliev met his Azerbaijan counterpart, Parviz Shahbazov, to discuss cooperation between their countries regarding the transit of Kazakh oil and the implementation of large-scale renewable energy projects. Back in 2022, Kazakhstan’s President Kassym-Jomart Tokayev ordered an increase in the volume of oil transported across the Caspian Sea. In response, Kazakhstan’s national oil and gas company KazMunayGas and the state oil company of Azerbaijan, SOCAR, entered into an agreement to transport up to 1.5 million tons of oil per year from Kazakhstan’s Aktau port through the Baku-Tbilisi-Ceyhan oil pipeline. In 2023 Kazakhstan’s shipment of crude oil from the Caspian port of Aktau grew to almost 1.4 million tons and this year, is expected to rise to 1.5 million tons. Major expansion projects are currently underway at Kazakhstan’s Tengiz, Karachaganak, and Kashagan oil fields to increase the future output of crude oil. Today, most of the country’s oil is exported via the pipeline managed by the Caspian Pipeline Consortium (CPC) which runs to the Russian Black Sea port of Novorossiysk. The throughput capacity of the Kazakh section of the Caspian Pipeline Consortium (CPC) pipeline has increased from 54 million to 72.5 million tons per year. The Kazakh and Azeri energy ministers also discussed a forthcoming project to connect the Caucasus region and Central Asia’s energy systems through the installation of a deep-sea cable in the Caspian Sea.