Headlines from the Caspian: July 21, 2025
Recent Articles
Author: Caspian Policy Center
07/21/2025
Energy and Economy
Uzbekistan, Pakistan, and Afghanistan Signed an Agreement on Trans-Afghan Railway
On July 17, foreign ministers of Uzbekistan, Pakistan, and Afghanistan met in Kabul to sign a trilateral pact on feasibility study of the trans-Afghan railway project. Initially agreed upon in 2023, the Termez-Naibabad-Maidanshahr-Logar-Kharlachi route is expected to become an important strategic project that will enhance regional connectivity and expand opportunities for global trade. Stretching over 700 km, the route would connect Central Asia to the Arabian Sea through Afghanistan, shortening the cargo transit time from over 30 days to 3-5 days.
Source: The Astana Times, Xinhua
South Korea’s YPP to invest $3.1B in Kazakhstan's Hydrogen Production
The South Korean energy company, YPP, plans to invest $3.1 billion to produce green hydrogen in Kazakhstan underpinned by up to 2 gigawatts of renewable energy power generation. YPP will implement the project in agreement with the Kazakhstan state agency, Kazakh Invest. The Korean proposal envisions installation of electrolysers that produce about 75,000 tons of green hydrogen annually. Part of the output from wind and solar sources will be used to meet domestic needs, but most will be exported to foreign markets. Samsung C&T Corporation is seen as a potential off-taker of the project.
Source: The Times of Central Asia
Kazakhstan Launches Central Asia’s Most Powerful Supercomputer to Boost AI and Digital Sovereignty
Kazakhstan has launched Central Asia’s most powerful supercomputer, capable of 2 exaflops, at the Alem.cloud center in Astana to drive AI development and e-government services. President Tokayev, who has made AI a national priority, said the project will help digitalize the economy and strengthen technological sovereignty. The supercomputer will support Kazakh-language AI models, forest fire detection, and other advanced applications. However, experts warn that brain drain and the need for constant updates could challenge Kazakhstan’s AI ambitions despite this milestone launch.
Source: EuroNews
Three-Year Action Plan Adopted Between Azerbaijan and Vietnam
Azerbaijan and Vietnam delegations met at the 3rd session of the Azerbaijan–Vietnam Intergovernmental Commission on Economic, Trade, and Scientific-Technical Cooperation in Hanoi, Vietnam. The parties discussed energy cooperation, collaboration in transport and logistics, politics, and investment. The session resulted in the adoption of the 2025–2027 Action Plan, “which envisages the implementation of 58 measures across 17 areas.”
Source: AZERTAC
Politics and Security
Aliyev Thanks Trump for Peace Efforts Between Armenia and Azerbaijan
On July 19, speaking at the Shusha Media Forum in Shusha, Azerbaijan, President of Azerbaijan Ilham Aliyev thanked President Donald Trump for his efforts to help Armenia and Azerbaijan reach a peace agreement. “Although he (the U.S. President) is engaged with broader global security issues, he still keeps the situation in the South Caucasus in his sights. We in Azerbaijan are certainly pleased that he won – for many reasons,” he said.
Source: Azertac
Turkmenistan’s Berdimuhamedow Visits Azerbaijan
On July 16, Chairman of the People’s Council of Turkmenistan Gurbanguly Berdimuhamedow visited Azerbaijan, where he held meetings with President Ilham Aliyev and toured the Karabakh economic region. The sides discussed progress achieved in political, economic, humanitarian, and other spheres, including transport and energy, as well as views on future cooperation. Speaking about trade-economic relations, Berdimuhamedow emphasized the annual increase in trade turnover between the two countries.
Source: President of the Republic of Azerbaijan, Ministry of Foreign Affairs of Turkmenistan
Aliyev Reiterates Baku’s Position on Peace Treaty with Armenia, Says Sides are “Very Close”
Speaking at the Shusha Media Forum this past week, Azerbaijan’s President Ilham Aliyev reiterated Baku’s position that in order for a formal peace and normalization treaty with Armenia to be signed, Armenia must first modify its constitution and the Minsk Group (the 1990s-era diplomatic format for monitoring and seeking solutions to the Armenia-Azerbaijan conflict) must be dissolved. He went on to state, "Yes, the text can be initialed, and the Azerbaijani side has made this proposal. [But] initialing does not at all mean signing. However, there is one thing: there is verbal agreement, and the second is that initialing already occurs at the end of each page. I think we are very close."
Source: APA
Kyrgyzstan and Mongolia Deepen Bilateral Ties
During President of Mongolia Ukhnaagiin Khurelsukh’s first state visit to Kyrgyzstan, the two countries signed a declaration establishing comprehensive partnership. Khurelsukh and his Kyrgyz counterpart, President Japarov, agreed to strengthen political, economic, logistic, mining, and cultural ties, as well as support closer cooperation in education and heritage preservation. Kyrgyzstan also backed Mongolia’s deeper integration with the Eurasian Economic Union. Several agreements were signed to advance cooperation across these areas.
Source: 24.kg
Aliyev’s Message to Ukraine: “Never Accept Occupation”
At the Shusha Media Forum, in response to a question from Ukrainian journalist, President of Azerbaijan Ilham Aliyev offered insight along with a personal account of Azerbaijan’s long struggle with territorial integrity. In a symbolic message to the Ukrainians, Aliyev said: “I believe this aligns with the aspirations of the Ukrainian people. Ukrainians must also not surrender and must never accept the violation of their territorial integrity. That is the main advice. That is what we did.” Following the statement, several pro-war media outlets in Russia have called for a conflict with Azerbaijan.
Source: Kyiv Post, Anadolu Agency, United24 Media
Tajikistan and European Union Initialed an Enhanced Partnership and Cooperation Agreement
On July 18, Tajikistan and European Union initialed an Enhanced Partnership and Cooperation Agreement (EPCA), concluding the series of negotiations that began in 2023. The agreement aims to replace the Partnership and Cooperation Agreement (PCA) that was signed in 2010. As a part of the EPCA, the parties will enhance cooperation and support reforms in the following areas: sustainable economic development, trade, security, digitalization, governance, connectivity, and infrastructure.
Source: Asia-Plus, Delegation of European Union to Tajikistan
Azerbaijan Signals Intent to Petition International Court Over Plane Crash
Azerbaijan’s President Ilham Aliyev announced on July 19 that Baku was in the process of preparing a legal dossier to submit to an international court regarding the downing of Azerbaijan Airlines Flight 8243 last December. In doing so, Azerbaijan seeks punishment for those involved as well as financial compensation to victims’ families and Azerbaijan Airlines for the lost aircraft. Firm in its belief that Russian ground forces played a role in the crash that resulted in the death of a number of Azerbaijani citizens, Azerbaijan’s decision to take the case to a thus far unnamed international court comes at a time of particularly heightened tensions between Moscow and Baku.