Eurasia News Digest (1-15 January, 2025)

Russia & Central Asia

China-Kyrgyzstan-Uzbekistan railway officially launched, but sidetracked at least until summer

After a long search to line up financing, officials from China, Kyrgyzstan and Uzbekistan have signed an investment agreement to build a railway that could reduce costs and cut transit times for Westward-bound freight rail traffic. But it is still going to be years before the first freight train rolls on the new route, and the route’s profit potential remains uncertain. In his New Year’s address, Kyrgyz President Sadyr Japarov, long the railway’s most ardent proponent, portrayed the route as an economic game-changer for the Central Asian nation, casting the project as a catalyst for economic growth in a variety of areas. “This path will provide new opportunities for the entire region, strengthen the economy and improve the lives of millions of people,” the Trend news agency quoted Japarov as saying. “Special attention will be paid to the opening of industrial enterprises, the creation of new jobs and the increase of the population’s income. The social sphere will reach a new level.” Click here to read... [2]

US hits Russian oil with toughest sanctions yet

U.S. President Joe Biden's administration imposed its broadest package of sanctions so far targeting Russia's oil and gas revenues in an effort to give Kyiv and Donald Trump's incoming team leverage to reach a deal for peace in Ukraine. The move is meant to cut Russia's revenues for continuing the war in Ukraine that has killed more than 12,300 civilians and reduced cities to rubble since Moscow invaded in February, 2022. Ukrainian President Volodymyr Zelenskiy said in a post on X that the measures announced by US will "deliver a significant blow" to Moscow. "The less revenue Russia earns from oil ... the sooner peace will be restored," Zelenskiy added. Daleep Singh, a top White House economic and national security adviser, said in a statement that the measures were the "most significant sanctions yet on Russia’s energy sector, by far the largest source of revenue for (President Vladimir) Putin’s war". Click here to read... [3]

Kazakhstan to Reduce Border Crossing Time at Nine Checkpoints with China, Uzbekistan, and Turkmenistan

Kazakhstan will modernize nine border checkpoints with China, Uzbekistan, and Turkmenistan this year, aiming to increase throughput capacity sixfold from 170 to 960 vehicles daily and reduce border crossing time to 30 minutes, the Prime Minister’s press service reported on Jan. 10. An automated electronic queue system, accessible via the Qoldau.kz platform and CargoRuqsat mobile application, has been introduced at all ten automobile border checkpoints along the external border of the Eurasian Economic Union. This system has eliminated vehicle congestion on national roads and enhanced the transparency of the transportation process. Click here to read... [4]

Kazakhstan to Determine Nuclear Power Plant Consortium in 2025, Tokayev Reveals

The participants of the international consortium for the nuclear power plant construction in Kazakhstan will be determined in 2025, said President Kassym-Jomart Tokayev in an Ana Tili interview on Jan. 3. During the national referendum on constructing a nuclear power plant in October 2024, Tokayev suggested that an international consortium of leading global companies with advanced technologies should be involved in the project. “This topic was discussed with President Vladimir Putin during his visit to Astana. We agreed that the consortium would include Kazakhstan’s entity as the general operator, acting as the project’s customer. Discussions have mentioned the potential participation of Rosatom, a company with extensive expertise and a solid track record in building nuclear power plants abroad. Negotiations are also ongoing with a Chinese company, given China’s significant success in constructing civil nuclear facilities. Other foreign corporations, including Western firms, have also expressed interest,” said Tokayev. Click here to read... [5]

50% of Iraq’s power plant fuel needs will be met by Turkmen gas

In an indication that alternative plans are being developed to address the shortage in Iranian gas supplies, the Iraqi Ministry of Electricity said that gas supplies from Turkmenistan will meet half of the needs of the power plants in the country. The spokesperson for the Electricity Ministry, Ahmed Musa, told the Iraqi News Agency (INA) that the government is working with the Trade Bank of Iraq (TBI) to complete financial procedures needed to start receiving gas supplies from Turkmenistan. Musa emphasized that there are other plans in collaboration with the Ministry of Oil to move forward with the import of Turkmen gas and finish the required financial procedures, pointing out that some power plants are still impacted by the stoppage of gas supplies from Iran. The remarks coincide with a worsening electrical crisis in Iraq, where blackouts have spread to all parts of the country and have a significant impact on residential, commercial, industrial, government, and other sectors. Click here to read... [6]

Heads of Kyrgyz, Tajik, and Uzbek Governments Meet… Finally

It took more than 30 years, but the prime ministers of the three Central Asian countries that share the Ferghana Valley finally met to discuss a range of important issues that concern all three states. Tajik Prime Minister Kohir Rasulzoda, Uzbek Prime Minister Abdulla Aripov, and Chairman of Kyrgyzstan’s Cabinet of Ministers (Kyrgyzstan does not have a post of prime minister) Adylbek Kasymaliyev met on January 8 at a desolate area where the borders of the three countries meet. The group touted agreements on the completion of the delimitation process along the Uzbek-Kyrgyz border and the early December 2024 agreement on the Kyrgyz-Tajik border. Click here to read... [7]

Iran and the South Caucasus

Bulgaria says Azerbaijan has suspended gas supply until Jan 11

Bulgarian state gas company Bulgargaz EAD has been notified that Azerbaijan has suspended contracted gas supply to Bulgaria from Jan. 7 until Jan. 11 because of unspecified technical reasons. Replacement gas volumes have been sourced from Turkey's Botas, Bulgargaz said. "Thus, the outage did not result in additional costs for the company to purchase replacement natural gas and did not affect the natural gas market in the region," it said in a statement, adding that the situation has made more case for diversification of sources of natural gas. An industry source told Reuters that supplies were interrupted because of "an issue" at BP's Alpha platform at the Shah Deniz gas field. Click here to read... [8]

Pashinyan's 12 proposals to Baku: 'Drop escalatory rhetoric'

Amid aggressive rhetoric and explicit threats recently voiced in an interview by Azerbaijani President Ilham Aliyev, Armenian Prime Minister Nikol Pashinyan has presented his proposal for “establishing long-term stability and peace in the region.” The proposal consists of 12 points. These include dissolving the OSCE Minsk Group, which was created to mediate the Nagorno-Karabakh conflict, and withdrawing legal claims from international courts—demands previously made by Baku. Armenia’s parliamentary opposition has already criticized the prime minister for these concessions. Click here to read... [9]