Brussels has turned to Central Asia
The European Union is investing 12 billion euros in the development of Central Asian countries. The funds will be used for transport, energy, mineral processing and satellite communications. This became known during the Central Asia–European Union summit held in Samarkand. The current interest of the EU in Central Asia is due not only to its resources and transport potential, but also to the changed geopolitical situation. Trade wars and political disagreements have pushed the EU to find new partners.
The historic first Central Asia–European Union summit ended in Samarkand on April 4. Under the chairmanship of President of Uzbekistan Shavkat Mirziyoyev, the leaders of the countries of the region met with the heads of the EU, Antonio Costa and Ursula von der Leyen. During the meeting, a joint declaration on partnership was signed with the approval of an extensive package of initiatives aimed at the economic, humanitarian and technological integration of the two regions. “This means that we can rely on each other, which is especially important today,” said Ursula von der Leyen, head of the European Commission.
She identified four key areas of cooperation: The Trans-Caspian corridor, the extraction of critical minerals, the development of green energy and digitalization. She noted the significant potential for cooperation between the EU and Central Asia in these areas.
“To accelerate progress, I am proud to announce the Global Gateway investment package of 12 billion euros. It will bring together the investments of the European Union and its member states,” von der Leyen said, calling it a “European team approach” and the beginning of a new era in relations. The new package will launch a series of projects in Central Asia. She also confirmed the allocation of $10 billion for the development of the Trans-Caspian Transport Corridor, which will reduce the land route between Europe and Central Asia by almost half to 15 days. “In the context of the growing fragmentation of the world, the Trans-Caspian Corridor will become a link between Central Asia and Europe. But it’s not just the infrastructure that’s important. The rapid passage of borders within Central Asia and the South Caucasus is also necessary for access to the Black Sea. After three decades of closure, the opening of Armenia’s borders with Turkey and Azerbaijan will be a turning point. This will bring Europe and Central Asia closer than ever,” said Ursula von der Leyen.
She added that the two forums scheduled for this year will make it possible to assess progress and identify new areas of cooperation.
Statements were also made by the heads of Central Asian states.
Shavkat Mirziyoyev began his speech by noting the transformation that had taken place in Central Asia, emphasizing the level of integration that was unthinkable a few years ago. Previously closed borders, lack of trade, transit, and humanitarian exchanges are all in the past. “Today, Central Asia acts as a single actor,” Mirziyoyev said. He said that in September Tashkent will host the seventh Consultative Meeting of the heads of state of the region, during which major investment and infrastructure projects supported by specialized funds and companies will be discussed. Intraregional trade is growing, and cross-border trade zones are being created, contributing to sustainable economic development. According to the forecasts of the EBRD (European Bank for Reconstruction and Development), regional GDP will grow to 6% this year, significantly exceeding the global average.
As for Uzbekistan’s cooperation with the EU, according to him, the republic supports an international project to supply electricity from the Central Asian region to Europe. By 2030, Uzbekistan plans to increase the share of renewable energy in the energy mix to 54% and introduce 24 thousand units. MW of green capacity. An important platform for cooperation in this area may be the launch of the CA–EU partnership on clean energy. The trade turnover between Uzbekistan and the EU countries has exceeded 6 billion euros, doubling since 2020. At the same time, exports of goods from Uzbekistan increased fourfold during this period. There are more than a thousand joint ventures operating in the republic. The portfolio of investment projects with European companies exceeds 30 billion euros. An Agreement on enhanced partnership and cooperation between Uzbekistan and the EU is expected to be signed this year.
President of Kazakhstan Kassym-Jomart Tokayev welcomed the start of negotiations on Ukraine, expressing hope for a favorable outcome, despite the complexity of the situation. Kazakhstan, Tokayev noted, is ready to increase exports by $ 2 billion for 175 commodity items. He recalled that Kazakhstan supplies 13% of oil to the EU, develops renewable energy and “green” hydrogen with Total, Eni and Svevind, and also builds transmission lines across the Caspian Sea with Uzbekistan and Azerbaijan. The country produces 19 of the 34 EU-critical resources, including uranium, lithium and cobalt. Tokayev proposed to create a rare earth metals center in Astana and noted a 62 percent increase in container shipments by TMTM (up to 4.5 million tons). Apparently, Kazakhstan is counting on the mutual interest of the EU and China in participating in the development of this route.
Tajik President Emomali Rahmon called on the EU to invest in the country’s green energy sector, noting that the development of partnership with the EU is one of the priorities of Tajikistan’s foreign policy. He expressed interest in expanding exports to the EU, attracting investments and technologies from European companies. Rahmon stressed the importance of renewable energy sources for national and regional needs.
Kyrgyz President Sadyr Japarov called on European businesses to take an active part in the development of the republic’s “growing transit potential,” “large-scale projects in the field of hydropower,” and “the development of critically important raw materials.”
President of Turkmenistan Serdar Berdimuhamedov stressed the importance of cooperation with the EU on climate change issues. He called for setting priorities and creating conditions for their implementation, noting that the EU is a promising partner on the climate agenda. A special commission has been established in the country, a roadmap for international cooperation has been adopted, and an 11% reduction in methane emissions has already been achieved. Berdimuhamedov called on the EU to support Turkmen environmental initiatives.
Stanislav Pritchin, Head of the IMEMO Central Asia Sector, considers the results of the EU–Central Asia summit to be of limited impact. He considers von der Leyen’s statement on the allocation of 10 billion euros for the Trans-Caspian corridor in 2024 to be unfounded. Firstly, the EU did not allocate such funds. The previously promised 1.5 billion euros were loan guarantees, not direct investments. Secondly, the main trade flow between the EU and Central Asia continues to go through Russia due to the limited capacity of the Caspian ports and the reconstruction of the railway through Georgia. Agreements on critical minerals are not new, as Kazakhstan and Uzbekistan are already their suppliers to the EU.
“There are several reasons for the limited effectiveness: the EU’s ideological crisis, the Ukrainian conflict, and internal disagreements. In these circumstances, cooperation with Central Asia is not a priority. The economic difficulties of European countries after the sanctions against Russia also limit investment opportunities, although European companies are already present in the region’s raw materials sector. Geographical remoteness and ideological differences are additional constraints. After all, the most direct way of interaction is through the Russian Federation, and now it is politically unfashionable, although almost everything works. Politically and ideologically, the regions are also located in completely different worlds, which does not allow us to talk about a real strategic interaction between Central Asia and the European Union. Thus, despite the beautiful picture and the solemn tone of the official statements, the EU and Central Asia have not yet become real strategic partners,” Stanislav Pritchin told NG.