• KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
21 December 2024

Viewing results 1 - 6 of 28

How Kazakhstan and Uzbekistan Anchor a Strategic Middle-Power Hub in Central Asia

Kazakhstan and Uzbekistan are driving Central Asia’s global significance. Together, they are turning Central Asia into a strategic middle-power hub. The two countries increasingly act as central nodes in a region key to global supply chains and, inevitably, geopolitical competition. However, they are not merely reactive to changes around them, but are highly dynamic. What does it mean to say that the region is emerging as a strategic middle-power "hub"? The notion of a hub extends beyond the national profiles of the two principals, Kazakhstan and Uzbekistan, to include the aggregation of collective influence. Central Asia is recognized as a cohesive entity in global forums. Kazakhstan’s energy wealth combines with Uzbekistan’s demographic strength, creating an influential synergy beneficial to the entire region. The interplay between their respective strengths allows them to amplify Central Asia’s voice in international institutions and negotiations collectively. By integrating their regional strategies within global frameworks — such as the Organization of Turkic States (OTS), the Shanghai Cooperation Organization (SCO), and the Conference on Interaction and Confidence Building Measures in Asia (CICA) — Kazakhstan and Uzbekistan enhance the region’s geopolitical relevance. Kazakhstan, for example, has successfully advocated for the Trans-Caspian International Transport Route (TITR, also called the "Middle Corridor"). This transcontinental trade route is emerging as a lynchpin in Eurasian logistics, connecting China to Europe via the Caspian Sea. Uzbekistan, for its part, has emphasized the integration of transport and energy infrastructure. These initiatives align with the broader vision of a unified Central Asia. The leadership of Kazakhstan and Uzbekistan has reinforced the region's collective identity as the "C5" group, also including Kyrgyzstan, Tajikistan, and Turkmenistan. This regional bloc has become a diplomatic focal point for major powers like the United States, China, Germany, and Japan. All of them engage with Central Asia through structured consultations within the C5 framework. These meetings have given the region traction in international diplomacy. The elevation of the C5 group reflects the region's new prominence. The United States engages with the C5 on issues ranging from regional security to sustainable development, emphasizing its commitment to a secure and prosperous Central Asia. China’s cooperation under the C5+1 mechanism complements its transcontinental infrastructure initiatives. Germany focuses on sustainable energy and governance, while Japan prioritizes infrastructure and technology transfers. Kazakhstan and Uzbekistan together have over two-thirds of the region's gross domestic product and two-thirds of its population. Kazakhstan's vast natural resources undergird its economic influence, while its geographic expanse (as the ninth-largest country in the world) makes it central to major connectivity initiatives. Through President Kassym-Jomart Tokayev's nuanced foreign policy, Kazakhstan has adeptly balanced relationships with major powers, ensuring that it remains a key partner for Russia, China, and the European Union. Uzbekistan has surged to prominence through its ambitious domestic reforms and proactive engagement for regional cooperation under the leadership of President Shavkat Mirziyoyev, who has implemented market liberalization measures attracting foreign investment and reinvigorating its economy. As the most populous country in Central Asia, Uzbekistan is an indispensable actor in regional affairs....

Kazakhstan and China Digitalize Customs Procedures on Middle Corridor

Kazakhstan Temir Zholy (KTZ), Kazakhstan's national railway company, has announced the digitalization of customs declaration procedures for transit cargo along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, at the border between Kazakhstan and China. In collaboration with Global DTC, KTZ Express - a subsidiary of KTZ - has launched the Tez Customs digital platform. This system transitions customs operations to a paperless format, reducing processing time to just 30 minutes after a train's arrival at the border station. The platform enables preliminary preparation of documents, automatic registration, and issuance of transit declarations. These capabilities optimize logistics processes, enhance transparency at all stages of customs clearance, and significantly reduce the time required for customs operations. Since May 2024, Tez Customs has fully automated customs clearance processes for transit cargo along the China–Central Asia route via Kazakhstan, specifically along the Altynkol-Saryagash section. In October 2024, its scope was expanded to include cargo transported along the Middle Corridor. To date, Tez Customs has processed over 54,000 transit declarations on the China to Central Asia route and more than 5,000 declarations on the TITR. The Trans-Caspian International Transport Route serves as a critical link between China and Europe, passing through Kazakhstan and the Caucasus. More than 80% of all land cargo transported from China to Europe travels through Kazakhstan, according to Kazakh statistics. During the first nine months of 2024, the volume of cargo transported along the Middle Corridor increased by 23% compared to the entirety of the previous year, reaching 3.4 million tons. Projections suggest that by 2030, this figure will rise to 10 million tons annually. The digitalization of customs procedures via Tez Customs represents a significant advancement in the efficiency and transparency of transit operations on the TITR. This innovation reinforces Kazakhstan’s position as a vital transit hub for trade between China, Central Asia, and Europe, while also supporting the continued growth of cargo volumes along the Middle Corridor.

Turkmenistan and Turkey Aim to Double Trade Turnover

Turkmenistan and Turkey have announced plans to double their annual trade turnover from $2.5 billion to $5 billion in the coming years. Turkish Trade Minister Ömer Bolat shared the goal during an exhibition in Ashgabat, where more than 70 Turkish companies were represented. He emphasized that the current trade volume is insufficient and that achieving this milestone would significantly strengthen economic ties between the two nations. Roadmap for Economic Cooperation A key step toward this goal will be the 8th meeting of the intergovernmental commission, scheduled for February or March next year in Ankara. According to Bolat, the meeting will approve a new roadmap for trade and economic cooperation. “We will develop our cooperation in various fields, following the vision of the leaders of our brotherly countries,” Bolat stated, highlighting the deep cultural and historical ties between Turkey and Turkmenistan. Priority Sectors The partnership will focus on several priority areas: • Energy: Discussions are underway to facilitate the transportation of Turkmen natural gas to Europe, which could lead to strategically important agreements. • Chemical Industry: Both countries aim to collaborate on projects that enhance the sector's development. • Trade Facilitation: Improvements in customs procedures and visa regime simplifications are expected to ease business interactions for citizens of both nations. Bolat also underscored the importance of Turkish construction projects in Turkmenistan, as well as the role of the Middle Corridor in boosting trade opportunities by improving goods transportation. Strengthening Economic Ties Turkey and Turkmenistan already maintain robust economic relations, with Turkey ranking as one of Turkmenistan’s leading trade partners. More than 600 Turkish companies operate in sectors such as trade, investment, construction, energy, transportation, communications, textiles, and processing industries. This strategic collaboration reflects shared cultural and historical roots, with both countries committed to furthering economic cooperation across various fields. The ambitious $5 billion trade goal demonstrates a mutual effort to deepen ties and expand opportunities in the region.

300th Container Train Departs Along Trans-Caspian International Transport Route

Kazakhstan Temir Zholy (KTZ), the national railway company of Kazakhstan, announced on December 2 the departure of the 300th container train of the year from the Kazakh-Chinese terminal in Xi’an, China, along the Trans-Caspian International Transport Route (TITR). This milestone highlights the growing strategic importance of the TITR, also known as the Middle Corridor, as a vital transport artery for fast and efficient cargo transportation between China and Europe. Expansion of the Middle Corridor The Kazakh-Chinese terminal in Xi’an, launched on February 28, 2024, has become a key logistics hub for the region, consolidating cargo from across China and streamlining logistics operations. This development has provided a significant boost to the TITR, which saw only 11 container trains traverse the route in 2023. The 300th train, bound for Azerbaijan, was organized by KTZ in collaboration with ADY Express (Azerbaijan) and Xi’an Free Trade Port (China). This partnership underscores the cooperative efforts between countries along the route to enhance connectivity and efficiency. Strengthening Regional Cooperation On November 12, Kazakhstan, Azerbaijan, and China signed an agreement to establish an inter-modal cargo terminal in the Port of Alat in Baku, Azerbaijan. This new facility aims to further facilitate the smooth flow of goods and boost trade along the TITR. Kazakhstan’s Ministry of Transport has outlined ambitious goals for the corridor, aiming to increase cargo traffic to 600 container trains per year in both 2025 and 2026. The target rises to 1,000 trains in 2027 and 2,000 by 2029, reflecting the corridor’s growing role in global trade logistics.

The Geopolitical Battle for Control Over Transportation Routes in Central Asia

Russia and Kazakhstan may be nominal allies, but their geoeconomic interests are not always aligned. As Astana seeks to develop the Middle Corridor – a transportation link connecting China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia, bypassing Russia – Moscow reportedly aims to build a trade and logistics route that would connect Russia and Kyrgyzstan, thereby circumventing Kazakhstan.  While various regional actors and international institutions actively invest in the Middle Corridor, also known as the Trans-Caspian International Transportation Route (TITR), a potential route linking Russia and Kyrgyzstan, through Uzbekistan and Turkmenistan, remains merely an idea. From the geopolitical perspective, the TITR is seen as an alternative to reach European and international markets and bypass Russia. But what is the primary goal of the Russia-Kyrgyzstan route? Although both Kyrgyzstan and Kazakhstan are members of the Russian-led Eurasian Economic Union, queues of trucks at the Kyrgyz-Kazakh state border seem to have become a norm. Bishkek accuses Kazakhstan of “artificially creating obstacles at the border to weaken competition from Kyrgyzstan”, while the Kazakh authorities claim that Kyrgyz truckers are “unwilling to comply with Astana’s requirements and submit fraudulent documents for cargo.” Since Kyrgyzstan’s main connection with Russia – the major market for its agricultural products – goes through Kazakhstan, it is Astana that has the upper hand over Bishkek. From a purely economic perspective, a new route, including sea transport across the Caspian Sea, would enable faster delivery of vegetables, fruits, as well as other goods from Kyrgyzstan to Russia. However, it remains highly uncertain if Uzbekistan and Turkmenistan, as transit countries, are genuinely interested in this project. “Both nations are far more interested in East-West trade, actual supply chain relocations into the region, and new gas contracts with the West,” Samuel Doveri Vesterbye, Managing Director of the European Neighborhood Council, told The Times of Central Asia. In his view, a Kyrgyzstan-Russia corridor would offer a limited amount of trade, due to the sanctions the West imposed on Moscow over its actions in Ukraine. But in spite of that, Kyrgyzstan, like all countries, tries to be part of any connectivity corridor. “There is a lot of ‘corridor competition’ at the moment. Most of it is bluff. It is important to look at which projects are being built and how much investments is going into them. The Russia-Kyrgyzstan corridor, at present, is more hot air than reality. There is no funding from the United States, the European Union, China or Turkey. Also, major players like the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) do not seem interested in funding the construction of this route. Therefore, its lifespan and potential look rather limited,” Vesterbye stressed. European institutions seem interested in further development of the Trans-Caspian International Transportation Route. From the European Union’s perspective, Russia’s invasion of Ukraine has increased the need to find alternative, reliable, safe and efficient trade routes between Europe and Asia. That is why Brussels is reportedly willing to invest €10 billion ($10.5...

Azerbaijan and Kazakhstan Stand Out at COP29

The 29th United Nations Climate Change Conference (COP29), held in Baku from November 11–22, 2024, has underscored the critical role of Azerbaijan and Kazakhstan in advancing Caspian Sea regional energy transitions. Both countries leveraged their positions along the Middle Corridor to present ambitious renewable and nuclear energy strategies.   Azerbaijan: Renewables and the Middle Corridor Azerbaijan, the host and chair of COP29, has positioned itself as a renewable energy connector between Central Asia and Europe. Its energy strategy reflects a pragmatic approach to transitioning from hydrocarbons, which accounted for 88% of government revenues in 2023, to a diversified portfolio incorporating solar, wind, and hydropower. Azerbaijan has prioritized key renewable energy projects to align with its goal of achieving a 30% renewable share in its electricity mix by 2030. Among these is the operational Garadagh Solar Power Plant, a 230-megawatt (MW) facility developed by the UAE's Masdar, which generates 500 million kilowatt-hours (kWh) annually. Complementing this is the planned Alat Solar Project, a 400-MW solar installation expected to be operational by 2027. These projects aim to bolster domestic electricity supply and expand Azerbaijan’s capacity to export renewable energy. The Caspian Offshore Wind Initiative, backed by the European Bank for Reconstruction and Development (EBRD), seeks to harness the Caspian Sea’s favorable wind conditions. A 1-gigawatt (GW) wind farm is under preliminary study, with construction anticipated to begin by 2026. This project could transform Azerbaijan into a renewable energy hub for the Middle Corridor, particularly as Europe reduces its dependency on Russian energy.   Kazakhstan: Nuclear Ambitions and Renewable Diversification Kazakhstan’s energy strategy focuses on nuclear power and renewables, driven by the need to reduce coal dependency, which still accounts for two thirds of its electricity generation. The government’s approval of its first nuclear power plant, following a nationwide referendum in October 2024, is central to this strategy. The planned nuclear reactor, located near Lake Balkhash, will generate 1.2-GW of electricity, replacing approximately 20% of coal-fired generation. This initiative complements Kazakhstan’s status as the world’s largest uranium producer, supplying over 40% of global demand and generating $3.6 billion in export revenues in 2023. Potential consortium members for the project include South Korea’s KEPCO, France’s Orano and EDF, China’s CNNC, and Russia's Rosatom, although economic-sanctions issues complicate Russia’s involvement in the nuclear sector. Kazakhstan is simultaneously scaling up renewable energy projects, with several key initiatives underway. The Zhanatas Wind Farm, operational since 2022, produces 100-MW of power, and the Shelek Solar Park, a 200-MW solar facility near Almaty, is expected to come online in late 2025. Together, these projects aim to increase renewables to 15% of Kazakhstan’s electricity mix by 2030, quintupling the level from 2023.   The Trans-Caspian Electricity Cable Project At the COP29 conference, Azerbaijan and Kazakhstan, along with Uzbekistan, announced an ambitious trans-Caspian electricity cable project through an underwater transmission system. This infrastructure initiative, estimated to cost $2.5 billion, seeks to establish an electricity corridor linking Central Asia with European markets, representing a significant step in regional energy integration. The project...