Eurasia News Digest (1-15 August, 2024)

Russia & Central Asia

Central Asian leaders sound optimistic note on expanding regional trade at Astana meeting

A growing spirit of cooperation underpinned the August 9 gathering of the leaders of all five Central Asia states, along with Caspian neighbor Azerbaijan. “Sustainable development” was the buzzword of the day for participants of the 6th Consultative Meeting of the Heads of State of Central Asia, held in the Kazakh capital Astana. “We are jointly shaping a new image of Central Asia as a region of great opportunities, looking to the future,” the gathering’s host, Kazakh President Kassym-Jomart Tokayev, told his fellow regional leaders. “Given the combined potential of our countries, we can make a significant contribution to the implementation of the Sustainable Development Agenda.” Uzbek President Shavkat Mirziyoyev echoed those sentiments, asserting that “Central Asia is becoming a space of good-neighborliness, mutually beneficial cooperation and sustainable development.” Click here to read... [2]

Kyrgyzstan and Tajikistan to Test Facilities Prior to Launch of CASA-1000

On August 9, Ministers of Energy of Kyrgyzstan and Tajikistan agreed to a plan to test overhead lines, transformers, and substations prior to launching the Central Asia-South Asia (CASA-1000) electricity transmission project, scheduled for completion by the end of 2024. The construction of a 500 kV transmission line with a length of 456 kilometers is now nearing completion in Kyrgyzstan. All of the supports have been installed and 428 km of the 456 km of the transmission line have been strung. The remaining section will be finished before the end of August 2024. The CASA-1000 project aims to connect the energy systems Kyrgyzstan and Tajikistan with those of Afghanistan and Pakistan and through the new infrastructure, transport 1,300 megawatts of surplus electricity from Central Asia to high-demand electricity markets in South Asia. Click here to read... [3]

Kazakhstan-Uzbekistan business forum in Astana inks agreements worth $43.5mn

Astana hosted the Kazakhstan-Uzbekistan business forum, culminating in the signing of agreements valued at $43.5mn on August 7. The event attracted over 400 representatives from business circles and government agencies of both countries, showcasing the robust partnership between Kazakhstan and Uzbekistan. A highlight of the forum was the signing of a memorandum of cooperation in the elevator industry. Yerzhan Igibayev, President of the National Association of Elevator Specialists of Kazakhstan, emphasized the importance of this agreement. Additionally, Kazakhstani tea factory Unitea signed a memorandum with Uzbekistan's largest retail chain Korzinka, agreeing to supply 20-30 tons of tea per month. Unitea has a solid track record in foreign markets, including Russia, China, and Kyrgyzstan. Click here to read... [4]

"China's 'One Belt, One Road' initiative does not unify Central Asian countries," says political scientist Oybek Sirojov

In a recent interview with Daryo, political scientist Oybek Sirojov highlighted growing global tensions and the increasing focus on alternative land routes due to restrictions on sea routes. He emphasized that most of these land routes connecting China with Europe pass through Central Asia, making it crucial for the region's five countries to develop a unified strategy. He further argued that China's "One Belt, One Road" initiative, rather than uniting Central Asian countries, could potentially lead to their division. Click here to read... [5]

Kazakhstan, Pakistan Launch Trans-Afghan Multimodal Transport Corridor

Enhanced bilateral relations between Kazakhstan and Pakistan have reached new horizons. Through the collaboration of KZT Express, a subsidiary of Kazakhstan Railway and QazTrade Center for Trade Policy Development Company with Pakistan’s National Logistic Corporation, a new trade route has been launched. This route runs from northeastern Kazakhstan via Uzbekistan, Afghanistan, and Pakistan, and onward by sea to the port of Jebel Ali in the United Arab Emirates. The estimated delivery time for shipments along this route is 20-25 days. Both countries are coordinating with all stakeholders and are determined to realize the potential of this new trade link, which can be termed the Trans-Afghan Multimodal Corridor. Click here to read... [6]

Tajikistan's Trade Deficit Widens Despite Booming Gold Exports

Tajikistan mines it, and Switzerland wants it. And according to official Tajik trade statistics, Switzerland was Tajikistan’s most lucrative export partner during the first half of 2024, primarily due to shipments of the precious metal. Tajikistan’s overall foreign trade turnover registered a 22 percent increase during the first half of 2024, but that encouraging news was tempered by the fact that exports lagged far behind imports, the Asia-Plus news agency reported, citing government statistics. Click here to read... [7]

Did Kazakhstan Just Shift the Balance of Power in the Space Race?

A new agreement for Kazakhstan to join Chinese-led plans to build and operate a research base on the moon could set the stage for deepening cooperation between the two countries as Beijing makes strides toward becoming a leading power in space. The July 3 agreement was signed on the sidelines of the Shanghai Cooperation Organization summit and admitted Kazakhstan as the 12th member of the International Lunar Research Station (ILRS), a Chinese-led initiative with Russia's Roskosmos for a lunar base that was announced in 2021 and includes Azerbaijan, Belarus, Egypt, Nicaragua, Serbia, Pakistan, South Africa, Thailand, and Venezuela. The Kazakh Digital Development, Innovation, and Aerospace Industry Ministry revealed new details of this cooperation on August 5, saying that Beijing and Astana would explore the commercial use of each other's spaceports and Kazakhstan would also be part of the development and launch of a lunar telescope project. Click here to read... [8]

Iran and the South Caucasus

A Constitutional Amendment That Could Lead to Peace Between Armenia And Azerbaijan

Armenia and Azerbaijan are nearly finished hammering out a peace agreement that would finally end their decades-old conflict. But in recent months one issue has emerged that is threatening to scuttle the entire process. The Armenian Constitution contains language that Baku says amounts to official Armenian claims against its territory: a reference to "reunification" with Nagorno-Karabakh, the territory at the heart of the two countries' conflict. That clause "clearly poses a territorial threat to Azerbaijan," Azerbaijani President Ilham Aliyev said at a July 20 press conference. "So, [while] this paragraph is there, a peace agreement is not possible." Click here to read... [9]

SCO Opens Foreign Exchange Alliance for Yuan, Tenge, and Ruble

The Shanghai Cooperation Organization (SCO) has instigated an Alliance of Currency Transactions to increase the share of settlements in national currencies—the Kazakh tenge, the Russian ruble, and the Chinese yuan—in mutual trade between SCO member states. The main goal of the initiative, launched in Qingdao based on the Demonstration Zone of Regional Trade and Economic Cooperation within the framework of the SCO Capital Park, is to reduce dependence on the US dollar and the euro in international settlements and in turn, strengthen the economic independence of the organization’s member countries and increase the stability of their financial systems. In addition, the Alliance will help simplify currency transactions, accelerate cross-border payments, and create a more transparent and efficient financial infrastructure between the SCO member countries. Click here to read... [10]

Russian Security Council chief visits Azerbaijan after Iran

Secretary of Russia’s Security Council Sergei Shoygu has met with Azerbaijani President Ilham Aliyev in Baku, the Azerbaijani presidential office said in a press release. Shoygu’s Azerbaijan visit comes after his trip to Iran where he met with President Masoud Pezeshkian and Chief of the General Staff of Armed Forces Mohammad Bagheri. Click here to read... [11]

Georgia plans to build new highway to Armenia

The Georgian government plans to start the construction of a 30km new Rustavi-Sadakhlo highway leading to the border with Armenia, local media reported. The 4-lane highway will feature 11 bridges and crossings and will be built parallel to the current road, according to Novosti Gruzia. The construction will cost 250 million euros. The project is funded by the European Investment Bank as part of the East-West international road project. Local authorities are now expropriating land from owners in Marneuli for the project. Click here to read... [12]