Energy and Economy

Kazakhstan and Uzbekistan Enhance Intraregional and International Trade

As the Central Asia+Japan dialogue was set to commence on August 9, Kazakhstan and Uzbekistan signed bilateral trade agreements during a joint business forum with the aim to increase mutual trade turnover to $10 billion. Sources differ on the precise value of the trade agreements, contracts, and new initiatives, but they appear to be in the $5-8 billion range. The agreements cover a range of industries, including packaged food, pharmaceuticals, industrial materials, energy, and transportation. Though the Japanese state visit by President Kishida has been postponed due to a possible earthquake in Japan, his cabinet anticipates arriving next week to unveil the $2 billion economic support package to the region. In other trade news, the European Bank for Reconstruction and Development (EBRD) has invested about $3.3 million in a 17.36% shareholding of the Kazakh graphite company, Sarytogan Graphite Limited. This is in line with the European Union’s strategic partnership with Central Asia on critical raw materials.

Sources: Daryo, Times of Central Asia, KazPravda

Tajikistan and Kyrgyzstan Prepare for CASA-1000 with Key Infrastructure Tests

On August 9, the Energy Ministers of Tajikistan and Kyrgyzstan agreed on a plan to test overhead lines, transformers, and substations ahead of the Central Asia-South Asia (CASA-1000) electricity transmission project’s launch. Scheduled for completion by the end of 2024, another project for the construction of a 500 kV transmission line with a length of 456kms is now nearing completion in Kyrgyzstan. 

Source: The Times of Central Asia

SCO Attempts to Reduce Dollar Dependency

The Shanghai Cooperation Organization announced a new initiative to promote more non-dollar currency exchanges among its member states. The “Foreign Exchange Transaction Union” will trade yuan, rubles, and tenge through streamlined transactions and enhanced digital infrastructure for trading. This comes as Russia and China attempts to de-dollarize their international trades.

Source: The Times of Central Asia

Politics and Security

Kazakhstan Hosts 6^th Meeting of the Heads of State of Central Asia and Azerbaijan

On August 9, leaders of the five Central Asian states (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan) and Azerbaijan convened in Astana, Kazakhstan, for the 6^th Consultative Meeting of the Central Asian states. During the summit, the five Central Asian leaders signed the “Central Asia 2040” regional cooperation development concept. Additionally, the “Roadmap for Regional Cooperation Development 2025-2027” and the “Action Plan for Industrial Cooperation of Central Asian States 2025-2027” were approved, in which Azerbaijan was designated as a key ally. The leaders discussed cooperation in trade, transportation, agriculture, and energy.  Among the initiatives discussed, a “green power plan” by Azerbaijan, Kazakhstan, and Uzbekistan to export solar- and wind-generated electricity across the Caspian Sea to Western markets was specifically mentioned.

Source: Eurasianet

Azerbaijan Drops Demand for “Zangazur” Transit Corridor Through Armenia

In an August statement to Radio Free Europe, representative of Azerbaijani President Ilham Aliyev, Elchin Amirbayov, stated that Baku had withdrawn its demand for a transit corridor through Armenia as part of a final peace agreement between the two countries. According to Amirbayov, Baku might return to the issue at a later date, but for now Azerbaijan had agreed to not “complicate even further the task of finalizing the peace agreement.” Since 2020, Azerbaijan has demanded the creation of a corridor through Armenia, linking Azerbaijan to its exclave of Nakhchivan. 

Source: RFE/RL

Georgian Volunteers Take Part in Kursk Offensive

During Ukraine’s ongoing Kursk incursion, footage has emerged of pro-Ukrainian Georgia fighters, waving Georgian flags from within Russian territory. Pro-Russian news sites have claimed up to 120 such volunteers are now active within Kursk region, describing them as “mercenaries.” Possibly in response to the presence of Georgian fighters, Moscow has reportedly deployed Ossetian and Abkhazian fighters to the area. Hundreds, and possibly thousands, of pro-Ukrainian Georgian volunteers are active in Ukraine, often as part of the Georgian National Legion of Ukraine.

Source: RFE, EurAsia Daily