Bilateral Cooperation - The Times Of Central Asia

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Bilateral Trade

West2West: Kazakhstan Adds a Regional Dimension to Trade with Afghanistan

In late September, a Kazakhstani official and business delegation led by Yerkin Tukumov, the Special Representative of the President of Kazakhstan for Afghanistan, visited Herat. The delegation included trade officials, representatives of the Mangystau and West Kazakhstan regions, and businesses. Officials called the new approach West2West, meaning cooperation between Kazakhstan's western regions and western Afghanistan. Kazakhstan and Afghanistan have held several business forums and exhibitions in recent years. However, the choice of Herat and the attempt to shift some cooperation from the intergovernmental to the interregional level make this initiative different. Since 2021, Kazakhstan’s economic dialogue with Afghanistan has developed mainly from the top down. The two governments set ambitious trade targets and sought to turn political engagement into commercial deals. The results looked impressive on paper. In October 2024, the two countries adopted a road map to raise mutual trade to $3 billion. In April 2025, documents worth $140 million were signed in Kabul, followed by 15 documents worth $303 million in Shymkent that October. Actual trade, however, grew much more slowly. In 2024, it totaled $545.2 million, while in 2025 it slipped slightly to $541.6 million. The $3 billion target remains more of a strategic benchmark than a near-term goal. According to official data from Kazakhstan, trade reached $581.1 million in January-July 2026, exceeding the total for the entire previous year. Kazakhstan’s exports accounted for $572.9 million, while imports from Afghanistan were just $8.2 million. Trade is therefore growing rapidly, but remains overwhelmingly one-sided. West2West is partly an attempt to broaden that relationship. Herat's Strategic Location Herat is one of Afghanistan’s main industrial and commercial centers, situated near several important transport routes. To the north is Torghundi, a rail border crossing with Turkmenistan. To the west runs the Khaf-Herat railway, which connects Afghanistan to Iran’s railway system. Herat could eventually become part of longer routes toward Kandahar and Pakistan, although much of the necessary infrastructure remains at the planning stage. During the September visit, officials opened a 43-kilometer section of the Khaf-Herat railway. Afghan sources estimate its cost at approximately $58 million. The section was built with the involvement of Kazakhstani company Integra Construction KZ. In August 2026, freight transported along the Khaf-Herat line totaled approximately 137,700 metric tons. Discussions have also focused on increasing its monthly capacity to 150,000 metric tons. Together with Uzbekistan and the United Arab Emirates, Kazakhstan has begun working on the Central Asia–South Asia railway project, which envisages a trans-Afghan connection to Pakistan’s ports. So far, the parties have agreed to conduct technical and economic studies, and no final route has been approved. The route through Turkmenistan is developing separately. Ashgabat views Torghundi-Herat as a joint project with Afghanistan linked to the expansion of the Serhetabat-Torghundi crossing and other infrastructure in western Afghanistan. Kazakhstan’s interest in Herat predates West2West. In 2023, Astana announced plans to establish a Kazakhstan Trade House in Afghanistan, with its main office in Herat. It opened in May 2024. Arman Yessentayev, its head, described Herat in 2023 as a...

Bilateral Cooperation

Uzbekistan and Azerbaijan Target $1 Billion in Trade as Investment and Transit Links Expand

Uzbekistan and Azerbaijan have set a target of increasing bilateral trade to $1 billion by 2030, as economic ties expand from a relatively low base into vehicle manufacturing, oil and gas, investment, and transport across the Caspian Sea. Azerbaijani President Ilham Aliyev’s state visit to Uzbekistan on August 23–24 added new projects to that list. The two presidents signed a Treaty on Eternal Friendship and a program aimed at increasing bilateral trade to $1 billion by 2030. Political relations, meanwhile, have been moving faster than economic ties. In 2023, the two countries established the Supreme Interstate Council, and a year later they signed a Treaty on Allied Relations. The latest trip was Aliyev’s third state visit to Uzbekistan in five years and his seventh visit overall. Aliyev said ahead of his trip to Tashkent that bilateral trade more than tripled in 2025 to reach $795 million. Uzbekistan’s Center for Economic Research and Reforms, however, reported a much lower total of $307.3 million for the same year. Neither side has explained the discrepancy, which may reflect different definitions of trade. Sustaining growth toward the $1 billion target will require broader trade and more joint production, including goods aimed at markets beyond the two countries. From Trade to Investment The Azerbaijan-Uzbekistan Investment Company is intended to help turn some of these plans into operating businesses. Established in 2023 with $500 million in capital, the company finances projects in both countries. Some areas of cooperation have already reached the production stage. Azerbaijan’s Azermash CP works with Uzbek manufacturers to produce Chevrolet and Isuzu vehicles in Azerbaijan. By July, more than 10,700 Chevrolet vehicles and 275 Isuzu buses had been produced. More than 130 commercial entities with Uzbek investment are registered in Azerbaijan. During the latest visit, the two sides opened a gypsum plant. They also laid foundations for five SOCAR filling stations and a silver-ore enrichment plant. For Baku, the interest in Uzbekistan is understandable. With a population of more than 38 million, Uzbekistan is Central Asia’s most populous country. The Uzbek economy is growing rapidly, while the authorities are opening more sectors to private and foreign capital. For Azerbaijani companies, this offers access to a market considerably larger than their own as well as a foothold in Central Asia. For Tashkent, Azerbaijan offers investment and expertise in the oil and gas sector. SOCAR, the Azerbaijani state oil company, has been operating in Uzbekistan for years. A joint venture between Uzbekistan’s O‘ZLITINEFTGAZ and the Azerbaijani company’s research institute has been operating since 2016. Cooperation is now gradually moving from engineering services toward much larger exploration and potential production projects. The main project is on the Ustyurt Plateau in western Uzbekistan. BP joined the project in May 2026 with a 40% stake, while SOCAR, which is the operator, and Uzbekneftegaz each hold 30%. Total investment could reach around $2 billion if commercially viable reserves are found and the project proceeds to development. As previously reported by The Times of Central Asia, the project envisages extensive seismic...

Strategic Partnership

Uzbekistan and Georgia Sign Strategic Partnership Declaration

Uzbekistan and Georgia have signed a declaration establishing strategic partnership relations, adding a new dimension to a relationship led by trade and Eurasian transit routes. President Shavkat Mirziyoyev and Georgian Prime Minister Irakli Kobakhidze held talks on July 3 in Tbilisi during Mirziyoyev's state visit. The sides also exchanged agreements and memorandums on customs, digitalization, education, agriculture, tourism, environmental protection, labor migration, healthcare, and nuclear and radiation safety. The visit was the first by an Uzbek president to Georgia in 23 years. Mirziyoyev held talks with Georgian President Mikheil Kavelashvili on July 2 and with Kobakhidze the following day. Before the signing, Georgian Foreign Minister Maka Botchorishvili told 1TV that the visit was a "historic opportunity to elevate relations" and tied the agenda to the Middle Corridor. One concrete diplomatic step is Tashkent's decision to open an embassy in Georgia. Uzbekistan currently has no embassy in Georgia and covers the country through its diplomatic mission in Baku, despite diplomatic relations having been established in August 1994. The Uzbek president's office said bilateral trade reached $270 million in 2025 and has passed $100 million since the start of 2026. The governments plan a dedicated roadmap to raise trade to $1 billion in the coming years and reduce the trade imbalance. Following the talks, the Uzbek side said both governments had agreed on "concrete steps to significantly increase trade and deepen industrial cooperation in key sectors." The focus on Georgian ports gives the deal a clear regional dimension. Mirziyoyev and Kobakhidze discussed wider use of Poti and Batumi for Uzbek cargo and backed a logistics hub in Georgia, with an industrial zone and a showroom for Uzbek products. A business forum held before the signing drew about 300 participants, including Georgian businesses from logistics, pharmaceuticals, finance, IT, tourism, and agribusiness. Georgia already serves as a South Caucasus outlet for Central Asian freight moving toward the Black Sea and Turkey. Uzbekistan is seeking more western routes as it develops rail links toward China, Afghanistan, and the Caspian Sea. The Times of Central Asia recently reported that Kyrgyzstan and Georgia discussed linking the China-Kyrgyzstan-Uzbekistan railway to Georgian port infrastructure. Mirziyoyev made the same connection in Tbilisi, proposing that the Baku-Tbilisi-Kars railway corridor be integrated with the China-Kyrgyzstan-Uzbekistan railway now under development. That proposal would put Georgia firmly inside Uzbekistan's export planning. Uzbek foreign trade cargo moving along the Middle Corridor has doubled over the past five years to reach 1.2 million tons by the end of 2025. Industrial cooperation is also moving beyond general pledges. The sides signed a cooperation program through 2027 and discussed projects in agriculture, electrical engineering, energy, pharmaceuticals, food processing, construction materials, digital services, and tourism. The leaders also proposed a joint investment fund to support new projects. People-to-people links have grown with direct flights. Tashkent now has air links with both Tbilisi and Batumi, with direct flights operating 13 times per week. More than 21,500 Uzbek tourists visited Georgia in 2025, while Georgian tourist arrivals in Uzbekistan reached 6,800...

Bilateral Trade

Tajikistan and Pakistan Agree to Expand Trade and Economic Cooperation

Tajikistan and Pakistan have agreed to deepen trade and economic cooperation following the eighth meeting of their Joint Commission on Trade, Economic, Scientific, and Technical Cooperation in Dushanbe. The meeting concluded with the signing of a protocol outlining measures to expand bilateral cooperation across a range of sectors, including trade, investment, energy, agriculture, and transport. According to Tajikistan’s Ministry of Energy and Water Resources, the discussions also covered banking, education, science and technology, tourism, youth policy, sports, and communications. Tajikistan’s delegation was led by Minister of Energy and Water Resources Daler Juma, while Pakistan was represented by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari. Officials from both countries said bilateral relations have improved in recent years, supported by growing political engagement and economic cooperation. Trade between the two countries reached $43 million in 2025, according to figures presented during the meeting. Bilateral trade totaled $8.9 million in the first quarter of 2026. The two sides agreed on the need to increase trade volumes by expanding the range of goods exchanged, identifying new areas of cooperation, and developing ties between businesses and investors. Particular attention was given to the CASA-1000 electricity transmission project, which aims to export surplus hydropower from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan. Participants described CASA-1000 as a key element of regional energy cooperation and an important platform for expanding economic links between Central and South Asia. The protocol of the commission’s eighth session is expected to help advance future cooperation and support the implementation of joint initiatives. The meeting ended with the signing of the protocol of the commission’s eighth session, which both sides said would help advance future cooperation and support the implementation of joint initiatives.

Strategic Partnership

The Astana-Tashkent Tandem: A Developing Partnership Based on Mutual Interest

On April 11, Kazakhstan’s President Kassym-Jomart Tokayev paid a working visit to Uzbekistan, where he was hosted in Bukhara by President Shavkat Mirziyoyev. The historic city provided the setting for discussions that increasingly reflect a broader regional agenda. A second informal meeting in just over a year suggests this format may be gaining weight in relations between Central Asia’s two largest economies. “The informal format is of strategic importance, since such meetings make it possible to discuss sensitive issues without protocol constraints, build personal trust between leaders, which plays a key role in Central Asia, and align positions ahead of official negotiations,” said Uzbek political analyst Ravshan Nazarov. He added that such meetings reflect a growing intra-regional focus, reduced dependence on external actors, and the strengthening of the “Tashkent-Astana” tandem. During the talks, Tokayev emphasized the importance of the visit “given the current unstable geopolitical situation.” The two sides reviewed bilateral cooperation across multiple sectors. Trade turnover reached $5 billion last year, with both countries aiming to double this figure to $10 billion in the near term. Joint projects are already underway in automotive manufacturing, infrastructure, logistics, electrical engineering, and construction materials. The discussion also extended to other sectors, including energy and industrial cooperation. Both Presidents stressed the need to modernize border infrastructure, eliminate bottlenecks, and develop efficient transport corridors to external markets. They also discussed accelerating major regional projects, including the construction of the Kambarata hydropower plant and advancing “green” energy exports. Tokayev also voiced his support for Uzbekistan’s “Clean Air” initiative, highlighting environmental challenges in Almaty. “I share your concern regarding the environmental condition of Tashkent. We have a very difficult situation in Almaty. Unfortunately, Almaty has entered the list of the most polluted major cities in the world, and urgent measures must be taken. Therefore, we could propose the joint implementation of the ‘Clean Air’ initiative under presidential patronage,” Tokayev said. The reference to Almaty also recalled the setting of the previous informal meeting on March 29, 2025. During that visit, Mirziyoyev toured the Medeu high-mountain sports complex and visited the National Museum of Arts, where an exhibition featuring works by Abilkhan Kasteev and Ural Tansykbayev was organized. That visit drew attention to the city’s preparedness for high-level events. Tokayev subsequently instructed then-Mayor of Almaty, Yerbolat Dossayev, to improve conditions in the city and report regularly on progress. In May 2025, Dossayev was dismissed as mayor and reassigned to the Presidential Administration. He was later also relieved of that post. In contrast, the Bukhara program was more extensive. Mirziyoyev presented industrial and technological projects, including a cotton-textile cluster, an artificial intelligence hackathon, and several cultural landmarks, including the mausoleum of Bahauddin Naqshbandi, founder of the Naqshbandi Sufi order. The discussions themselves also appeared more substantive, covering areas such as rare earth metals, transport, energy, and information technology. “When discussions include not only trade but also rare earths, transport, energy, and IT, it indicates a shift toward strategic thinking. The focus is no longer just on trade turnover,...

U.S.-Uzbekistan Relations

The American-Uzbek Business Council Launches in Washington

Washington D.C. - At the launch of the American-Uzbek Business and Investment Council in Washington on April 6, the most revealing line came early. Ambassador Sergio Gor, the White House’s special envoy for South and Central Asia, and Co-Chair of the Council, did not begin with trade statistics or a list of deliverables. He began with a blunt assessment of how the region has been treated in Washington. “For too long, this region has not found the attention that it deserves,” he said. That observation is hardly novel to anyone who follows Central Asia. What made it notable was the speaker and the setting. U.S. policy toward the region has often been episodic, driven at different times by Afghanistan, by Russia, by sanctions enforcement, or by concern over Chinese influence rather than sustained by a coherent regional economic strategy. Gor’s remarks suggested an attempt, at least by the current administration, to correct for that pattern. He was equally clear, however, that this was a political opening, not yet a settled doctrine. “Take this opportunity that the next two and a half years present,” he told the room, an unusually candid acknowledgment that Washington’s attention may be real without yet being durable. His other key formulation explained how the administration wants to make that attention count. “Never before in the history of the U.S. government has commercial diplomacy been such a major pillar of U.S. foreign policy,” Gor said. Whatever the phrasing, the intended shift was clear. Washington is signaling that in Central Asia, economic statecraft will not be treated as a side channel to politics, but as a primary instrument of policy. In that sense, the new council is less a ceremonial bilateral upgrade than a mechanism for turning political attention into projects, financing, and institutional follow-through. [caption id="attachment_46673" align="aligncenter" width="1600"] Image: TCA[/caption] Saida Mirziyoyeva, head of Uzbekistan’s presidential administration and the Uzbek co-chair of the council, answered that shift with a line that was just as pointed. “We are no longer at the stage where we speak about potential,” she said. “We are at the stage where we must deliver.” For a government that has spent years presenting Uzbekistan as a reforming economy open to outside capital, that was a significant change of emphasis. The argument is no longer that Uzbekistan deserves credit for opening up but that it now expects to be judged by execution. Her most substantive remarks were about institutions rather than ambition. The council matters, she said, because it should help “solve problems quickly, without unnecessary bureaucracy” and ensure that “no project is lost along the way.” That is a more serious claim than the language of partnership that usually fills these forums. Mirziyoyeva was effectively acknowledging the gap that often opens between political endorsement and project delivery. Uzbekistan’s challenge is no longer simply attracting attention from foreign partners but getting projects through financing, approvals, and implementation without losing momentum inside the state apparatus. That urgency reflects the scale of the opportunity. Uzbekistan, with a...