...

Azerbaijan and Central Asia: Partnership poised to transform region

Economy Materials 8 August 2024 16:34 (UTC +04:00)
Azerbaijan and Central Asia: Partnership poised to transform region
Laman Zeynalova
Laman Zeynalova
Read more

BAKU, Azerbaijan, August 8. Astana, the capital of Kazakhstan, will host a significant event on August 9, bringing together the heads of Central Asian states and Azerbaijan. Azerbaijan's involvement in such prestigious events is not merely a result of geographical proximity; the country has proven itself to be a reliable partner, contributing substantially to regional and international peace and security, and fostering broader regional cooperation that benefits all Central Asian nations. Over the past two years, the President of Azerbaijan has visited Central Asian countries 16 times, and in return, Central Asian leaders have visited Azerbaijan 15 times.

Under the leadership of President Ilham Aliyev, Azerbaijan has become a crucial and irreplaceable partner for each Central Asian country. Cooperation between Central Asia and Azerbaijan is realizing strategically significant projects across various economic sectors, benefiting not only the region but also extending to Europe.

One notable example of this cooperation is the recent agreement reached between Azerbaijan, Kazakhstan, and Uzbekistan during the inaugural meeting of Central Asian energy ministers in Kazakhstan. The agreement focuses on establishing a joint venture (JV) to export green energy from Central Asia to Europe, with the JV based in Baku. This builds on a December 17, 2022, agreement among Azerbaijan, Georgia, Romania, and Hungary to create an energy bridge from the Caucasus to Europe. As part of this agreement, a 1,195-kilometer submarine electric cable will be constructed to transmit green electricity generated in Azerbaijan through Georgia and the Black Sea to Romania, and subsequently to Hungary and Europe. This project aims to deliver up to four gigawatts of green energy.

Thus, Azerbaijan is effectively creating a strategic energy bridge connecting the South Caucasus, Central Asia, and Europe.

Beyond alternative energy, Azerbaijan and Kazakhstan have also collaborated on conventional energy. In 2022, NC KazMunayGas JSC and the State Oil Company of Azerbaijan (SOCAR) signed an agreement for the transportation of 1.5 million tons of oil per year from the Tengiz field to the Baku-Tbilisi-Ceyhan (BTC) oil pipeline. President Kassym-Jomart Tokayev of Kazakhstan signed a further agreement to increase this volume to 2.2 million tons per year during his visit to Azerbaijan on March 11–12.

According to Kazakhstan's National Development Plan until 2029, the country aims to boost oil transportation via the Trans-Caspian route to 20 million tons annually. This includes increasing trans-Caspian oil transport through the port of Aktau to seven million tons per year, as well as exploring projects like the Eskene-Kuryk pipeline, marine terminals, and a larger tanker fleet to facilitate this growth.

Additionally, there are promising prospects for energy cooperation between Azerbaijan and Uzbekistan. As of May this year, Uzbek Minister of Investment, Industry, and Trade Laziz Kudratov had announced ongoing negotiations with SOCAR for its involvement in Uzbekistan's oil and gas production projects. Similarly, discussions are in the final stages regarding Uzbektegaz's participation in gas production projects in Azerbaijan.

The transportation sector is another significant area for cooperation. Given the growing importance of the Middle Corridor, discussions on expanding its capacity are increasingly vital amid the evolving international transportation landscape. Azerbaijan’s collaboration with Central Asian countries in this sector has become more crucial than ever. The Middle Corridor exemplifies how joint projects between Azerbaijan and Central Asian nations extend beyond the region, attracting interest from China, Europe, and the United States. This corridor is crucial for diversifying trade and transportation routes from China to Europe.

The statistics show that there is a growing interest in the Middle Corridor. Freight traffic along the corridor in the first half of 2024 reached 2.1 million tons, marking a 65 percent increase compared to the period from January through June 2023.

In 2023, freight traffic on the Trans-Caspian International Transport Route (TITR) rose by 86 percent from 2022, reaching 2.7 million tons. For 2024, the target is 4.2 million tons.

Developing the Middle Corridor involves more than just building infrastructure; it also requires integrating "hard" infrastructure with "soft" elements to facilitate the smooth movement of goods and people across borders.

Looking ahead, the Middle Corridor is poised for a new phase of rapid development, positioning itself as a major trade route in Eurasia and a key component of the global supply chain. Its significance will grow as more countries join the route and freight volumes increase.

The Baku-Tbilisi-Kars (BTK) railroad is a crucial part of the Middle Corridor. On May 20, the 184-kilometer section of the BTK railway through Georgia underwent repair, expansion, and reconstruction, leading to the resumed freight transportation. This railroad not only links three countries but also provides the shortest overland route between Asia and Europe, saving time and offering access to European and global markets for Turkmenistan, Kazakhstan, Kyrgyzstan, Uzbekistan, and Afghanistan, thus benefiting Azerbaijan strategically and economically.

Additionally, Azerbaijan is working to increase the Baku port's throughput capacity from 15 million tons to 25 million tons, further expanding the Middle Corridor.

Central Asian countries are also actively developing this route. To enhance the Middle Corridor, Kazakhstan is establishing a large maritime transportation and logistics cluster based on the Aktau and Kuryk ports. This initiative aims to increase container capacity, improve cargo transshipment terminals and international logistics, and reduce administrative barriers. Recently, Kazakhstan began dredging work in the Kuryk port.

Kyrgyzstan is also exploring the Middle Corridor’s potential. As Foreign Minister Jeenbek Kulubaev mentioned, while current cargo traffic goes through the southern corridor via Iran and Türkiye to Europe, alternative routes like the Middle Corridor through Kazakhstan, Turkmenistan, Azerbaijan, and the Caucasus are being considered to expedite transportation.

Another key project is the Digital Silk Road, which seeks to create a fiber-optic telecommunication route between Europe and Asia via the Caspian Sea through Azerbaijan. This project underscores Azerbaijan’s central role in the telecommunications corridor, highlighting its position as a transit hub for major content providers such as Google, Amazon, Alibaba, Netflix, and Facebook. By turning Baku into an Internet exchange center, Azerbaijan aims to become a hub for transmitting content and Internet services to Central and South Asia, as well as neighboring regions. The Organization of Turkic States also supports the Digital Silk Road project.

Azerbaijan's multifaceted strategic cooperation with Central Asian countries positively impacts the development of cultural relations. The opening of the Mirzo Ulugbek School, donated by Uzbekistan, the Kurmangazy Children's Creativity Center, donated by Kazakhstan, and the secondary school in Aghdam, built with support from Kyrgyzstan, vividly illustrate the high level of relations between Azerbaijan and Central Asia. These significant projects not only enhance cultural and educational ties but also highlight the mutual respect and support that underpin their enduring cooperation.

Cooperation in the military sphere is particularly noteworthy. The Ministry of Defense of Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan signed a joint plan to hold the international Birlestik-2024 military exercise in July 2024, serving as a prime example.

This collaboration enhances regional security and fosters mutual understanding between the armed forces of Central Asian countries and Azerbaijan. Exercises like Birlestik-2024 are key steps toward achieving long-term stability and partnership.

As a result, the strong foundation of cooperation between Azerbaijan and Central Asian countries will continue to strengthen these ties to benefit the broader region.

Azerbaijan's participation in such prestigious events underscores the centuries-old bonds of brotherhood and friendship, as well as the deep historical connections and current high level of cooperation between Azerbaijan and its regional partners.

Increased mutual visits at the heads-of-state level in recent years have established a basis for expanding and deepening cooperation between the countries.

The friendly relations between the heads of state significantly contribute to bilateral ties and further develop and strengthen cooperation, elevating these relations to a level of genuine strategic partnership.

Follow the author on X: @Lyaman_Zeyn

Tags:
Latest

Latest