“We meet at a moment of transformation in the Central Asia region - profound transformation is underway across our region and the new frontiers of cooperation, particularly with the United States and the broader Trans-Caspian community,” said Ambassador Javlon Vakhabov, the Managing Director of Uzbekistan’s International Institute for Central Asia (IICA), during a discussion at the Caspian Policy Center (CPC) on April 9. The discussion focused on the strategic importance of Uzbekistan’s role in the Trans-Caspian Region, as well as the future trajectory of U.S.-Uzbekistan bilateral relations, exploring opportunities for enhanced cooperation between the two countries. Chairman of the CPC Board Ambassador (ret.) Richard Hoagland gave welcoming remarks and moderated the discussion. CPC Senior Fellow Dr. Eric Rudenshiold spoke of the rapid rate of change in the region and what this can mean for the future.

Ambassador Vakhabov addressed recent developments in the Caspian region, potential challenges and opportunities for enhancing cooperation, and the regional implications of increased U.S. engagement. He emphasized that since 2016, intra-regional trade has grown by 200%, while mutual investments have increased sixfold. In this line, Vakhabov highlighted that the annual Consultative Meetings of the Heads of States of Central Asia have played a special role in boosting regional cooperation, “becoming a true mechanism of strategic coordination and partnership.” He specifically noted the adoption of the Central Asia 2040 document at last year’s summit in Astana, which is a “milestone shift in the region to find a common vision for the region that is integrated, stable, and globally engaged.” 

A central part of Vakhabov’s remarks focused on the critical-mineral potential of Uzbekistan. Vakhabov mentioned that with only 40% of Uzbekistan’s territory already geologically surveyed, there are 76 active rare earth minerals projects worth $2.6 billion in value. In this regard, Vakhabov specifically highlighted that Uzbekistan welcomes cooperation with the United States in exchanging the technical know-how that would ensure that Uzbekistan’s mining practices are based on the highest international standards. “Collaboration with the U.S. Geological Survey (USGS) on mining data and geological survey for exploration sites can be beneficial for both parties, while also attracting foreign investors to Uzbekistan,” he emphasized. 

Source: IICA

Ambassador Vakhabov also touched on the energy and connectivity goals of Uzbekistan and Central Asia. When it comes to energy, Vakhabov argued that Central Asian countries face two main challenges: water scarcity and access to electricity. He mentioned that these are issues that need to be addressed collectively, and permanent mechanisms such as the C5 format are necessary to bring together the region on such key areas. When discussing regional connectivity, Ambassador Vakhabov stated that being double landlocked has been a huge challenge for Uzbekistan, especially in light of the war in Ukraine. 

Source: IICA

“At the moment, the best option is the Trans-Caspian Corridor for transportation. This is the hot topic right now with our Azerbaijani and Georgian colleagues. Unfortunately, we are hearing from our businesses that this route, compared to the traditional one via Russia, is more expensive. But the burdens are being gradually reduced. Our tariff policies should be coordinated, simplified, and digitalized. Digitalization remains the key obstacle, primarily in Central Asia,” he concluded.

Following the roundtable discussion, the signing ceremony for a Memorandum of Understanding (MoU) agreement between CPC and IICA took place in the CPC office. The MoU signifies a shared commitment to fostering cooperation, mutual understanding, and collaboration between think tanks in the United States and Uzbekistan. Through this partnership, the two organizations will aim to strengthen bilateral relations, exchange expertise, and promote joint initiatives that address issues of mutual interest.