Energy and Economy

 

World Bank Approves $173.5 Million Loan to Boost Azerbaijani Renewable Energy

On March 28, the World Bank approved a $173.5 million loan to support Azerbaijan’s renewable energy transition, focusing on the development of utility-scale solar and wind power projects. The financing will aid Azerbaijan in reducing its dependence on fossil fuels and in aligning with global sustainability commitments. The initiative includes infrastructure improvements to integrate renewable energy into the national power grid.

Source: Interfax

U.S.-Uzbekistan Trade Strengthens as Congressman Kelly Backs Economic Reforms

On March 26, Uzbekistan Ambassador Furqat Sidiqov hosted a Congressional Breakfast with Congressman Trent Kelly (R, Mississippi), Co-chair of the U.S.-Uzbekistan Caucus, to advance U.S.-Uzbekistan trade and investment relations. Ambassador Sidiqov highlighted the presence of over 300 American companies in Uzbekistan and projected that bilateral trade would soon surpass $1 billion annually. Congressman Kelly praised Uzbekistan’s reforms and openness to U.S. businesses, expressing support for removing the Jackson-Vanik Amendment to further improve trade relations.

Source: The Times of Central Asia

World Bank: Kazakhstan Sees Strong Start to 2025 Amid Rising Inflation

Kazakhstan’s economy maintained strong momentum in early 2025, with the composite Purchasing Managers’ Index (PMI) rising to 51.3 in February. The manufacturing PMI climbed to 54.0, while the services sector rebounded to 50.6. However, inflation increased to 9.4% in February, driven by food price hikes (6.5%), non-food inflation (8.7%), and services inflation (14.1%). The National Bank raised its key interest rate to 16.5%, yet lending remains strong, with consumer loans up 13.2%. Kazakhstan’s trade balance remained positive at $1.6 billion in January, although exports declined by 13.4%, mainly due to a drop in crude oil shipments. The EU’s share of Kazakhstan’s exports rose to 46.7%, while trade with Russia declined sharply.

Source: Kazinform

STARLINK Launches in Armenia and Azerbaijan

STARLINK services are now available in Armenia and Azerbaijan, enhancing internet access across the country, including in remote and rural areas. On March 27, Armenia’s Minister of High-Tech Industry Mkhitar Hayrapetyan announced the launch, highlighting the direct collaboration between STARLINK, the Armenian Ministry of High-Tech Industry, and key national authorities, without intermediaries.  On March 29, "Starlink's high-speed, low-latency internet is now available in Azerbaijan!" posted Starlink on X. 

Source: Armenpress, TelecomTalk

New Türkiye-Azerbaijan Railway Line Under Development

On March 25, Azerbaijan and Türkiye began the construction of a 224km electrified double-track railway connecting Kars in northeast Türkiye to Nakhchivan in southwest Azerbaijan via Iğdır. The project, set for completion by 2030, is expected to cut the Kars-Nakhchivan travel time by 1 hour and 25 minutes. Türkiye will construct five new stations at Digor, Tuzluca, Iğdır, Aralık, and Dilucu, with additional stations under consideration. The project aims to complement the existing Baku-Tbilisi-Kars railway.

Source: Aze.media

National Banks of Georgia and China Sign MoU

On March 26, the governors of the national banks of Georgia and China signed a memorandum of understanding on economic cooperation in Beijing, China. According to the read-out provided by the National Bank of Georgia, the agreement seeks to promote collaboration in sectors including monetary policy, financial technology, payment systems, securities market development; attract Chinese banks to Georgia; and ease payments between the two countries. Georgia has expanded relations with China in recent years, joining the Belt and Road Initiative and giving key infrastructure tenders to Chinese state firms as Tbilisi’s relations soured with Europe and the United States.

Source: National Bank of Georgia

Politics and Security

 

20th EU-Central Asia Ministerial Meeting Takes Place in Turkmenistan

On March 27, the 20^th European Union (EU)-Central Asia Ministerial Meeting took place in Ashgabat, Turkmenistan, including participation from the foreign ministers of the five Central Asian states. European Commission High Representative for Foreign Affairs and Security Policy and Vice-President Kaja Kallas highlighted during her remarks that EU remains as by far the largest investor in Central Asia, stating that “The development of the Trans-Caspian Transport Corridor for example is a major ongoing project, and it is good news that the European and international financial institutions are ready to mobilize over €10 billion for this.” A 23-point joint statement issued following the foreign ministerial meeting focused mainly on promoting trade and addressing global warming-related issues, but also including a point on preventing sanctions circumvention and another on “the importance of advancing the rule of law, democracy, good governance and accountability, gender equality and universal human rights.” 

Source: The Diplomatic Service of the European Union, European Council 

German President Visits Armenia and Azerbaijan

On March 31, President of Germany Frank-Walter Steinmeier kicked off his visit to Armenia and Azerbaijan. In Yerevan, Armenia, Steinmeier met with Armenian Prime Minister Nikol Pashinyan to discuss the bilateral relations between the two countries and the peace process between Armenia and Azerbaijan. “In Germany and Europe, there is great interest for stability to prevail in the South Caucasus region,” the German president said. He described the finalization of the terms of the peace treaty between Armenia and Azerbaijan as very impressive and congratulated both sides. Steinmeier is expected to travel to Baku, Azerbaijan between April 1-2.

Source: Armenpress.am, Aze.media

EU Vice-President Kallas Visists Turkmenistan, Uzbekistan, and Kazakhstan

As a part of her Central Asia tour, European Commission High Representative for Foreign Affairs and Security Policy and Vice-President Kaja Kallas conducted visits to Turkmenistan, Uzbekistan, and Kazakhstan between March 27 and March 28. Following the Ministerial Meeting in Turkmenistan, Kallas visited Tashkent, Uzbekistan, where she met with President of Uzbekistan Shavkat Mirziyoyev to discuss the upcoming EU-Central Asia Summit and stressed the importance of deepening EU-Uzbek cooperation in trade, logistics, digitalization, green energy, and infrastructure. Kallas concluded her tour in Astana, where she met with President of Kazakhstan Kassym-Jomart Tokayev, discussing several priority areas of bilateral collaboration, including trade, transportation, digitalization, global security, and water resource management.

Source: The Times of Central Asia , EFEComunica

Trump Announces Preliminary Ceasefire Agreements for Ukraine Conflict

On March 23, U.S. President Donald Trump announced that Washington, Moscow, and Kyiv have reached a preliminary agreement to address the ongoing conflict in Ukraine. This announcement follows a series of diplomatic engagements, including meetings in Jeddah, Saudi Arabia, and Moscow, aimed at laying a groundwork for peace.

Source: Caspian News

Putin and Erdoğan Reach Agreement on Black Sea Cooperation

On March 28, Russian President Vladimir Putin and Turkish President Recep Tayyip Erdoğan reached an agreement on Black Sea security and trade cooperation following high-level discussions. The deal aims to enhance maritime stability, strengthen economic ties, and improve regional trade routes. The talks also covered energy cooperation, infrastructure projects, and the facilitation of grain exports.

Source: Vestnik Kavkaza

Kyrgyzstan and Tajikistan Finalize Border Agreement

On March 26, Kyrgyzstan and Tajikistan signed a comprehensive border agreement, marking a resolution to their long-standing territorial disputes. The deal finalizes the delimitation of the remaining 302km of their shared 972km border, including land swaps.  The agreement follows months of negotiations and confidence-building measures, intending to prevent further violence and enhance regional stability.

Source: AKIpress

Kazakhstan and EU Initiate Visa Facilitation Agreement

On March 28, Kazakhstan’s President Kassym-Jomart Tokayev and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas met in Almaty to discuss enhancing bilateral cooperation. Kallas announced the initiation of negotiations for a visa facilitation agreement between Kazakhstan and the European Commission, a move welcomed by Tokayev as an opportunity to strengthen people-to-people ties. The leaders also focused on expanding partnerships in energy, manufacturing, digitalization, and infrastructure projects within the Middle Corridor. This development positions Kazakhstan as the first Central Asian country to enter such negotiations with the EU.

Source: Astana Times