Headlines from the Caspian: September 30, 2024
Author: Caspian Policy Center
09/30/2024
Energy and Economy
EBRD Releases Economic Projections for South Caucasus and Central Asia
According to the September edition of the European Bank for Reconstruction and Development’s Regional Economic Prospects report, Central Asia is projected to have 5.1% growth in 2024 and 5.9% in 2025 (this includes Mongolia). In the Caucasus, which the report does not group together, Armenia is forecast for 6.2% growth in 2024 and 4.8% growth in 2025, while Azerbaijan is forecast for 3.8% growth in 2024 and 2.7% growth in 2025, and Georgia is predicted to have 6.5% growth in 2024 and 4.6% growth in 2025.
Source: EBRD
German Chancellor Scholz Visit to Central Asia Concluded with Deals
Another C5+1 format concluded this month with Germany, marking the first time in 14 years that a German chancellor has visited the region. Reflecting the deepening economic ties between Germany and Kazakhstan, most of the deals achieved during the visit involved investment projects and education collaboration between the two nations. Uzbekistan also made strides in deepening connections with Germany through deals to facilitate labor migration and receive development investment.
Kazakhstan Positions Itself as Battery Components Supplier
Continuing the trend of expanding its strategic minerals standing, Kazakhstan’s Ministry of Industry and Construction is issuing “hundreds” of new exploration licenses. These focus on several previously untapped mineral resources in the country, such as lithium and nickel. Already, some countries are striking agreements to get access to the mineral resources. The South Korea Institute of Geoscience and Mineral Resources (KIGAM) began talks the week of September 23 to develop a substantial lithium deposit in East Kazakhstan.
Rosatom Announces $1.5 Billion Investment in Kyrgyzstan
On September 27, the Director General of Rosatom’s representative office announced the Russian state-owned firm would invest $1.5 billion in various renewable energy projects throughout Kyrgyzstan. The projects will include Kyrgyzstan’s first-ever wind-power farm, generating 110 mega-watts of electricity. Rosatom remains an active player in world energy even as Western countries have sought to economically isolate Russia since it launched its full-scale invasion of Ukraine in 2022.
Source: Daryo
Uzbekistan Starts Construction of a Multifunctional Terminal at the Port of Poti
Uzbekistan has formally launched the construction of a multifunctional terminal at the Poti Free Industrial Zone in Georgia. The terminal, spanning an area of 30 hectares, brings together a total investment of about $18.3 million. The first phase involves constructing a 1,000-ton capacity frozen-goods warehouse, while the second phase adds a 5,000 square meter closed warehouse for general cargo. The final phase includes building a bulk cargo warehouse and a terminal for oversized and container cargo. The new warehouse terminal will enable exports from Uzbekistan to Europe and the transshipment of European goods to Uzbekistan and Central Asia via the Middle Corridor.
Source: Daryo
Türkiye Signs Deal to Import 1.6 bcm of LNG per year from the United States
On September 18, Türkiye’s state gas importer, Botas, signed an agreement with France’s TotalEnergies to import 1.6 billion cubic meters (bcm) of LNG per year from the United States. The deal would start in 2027 and follows similar agreements signed by Botas with Shell for 4 bcm a year and ExxonMobil for an undisclosed amount earlier in September and last May, respectively.
Source: Eurasianet
Security and Politics
Pakistan to Sell Azerbaijan Fighter Jets
On September 26, Pakistani military officials announced an agreement to sell Azerbaijan JF-17 Block III fighter jets. The aircraft are a joint product produced by Pakistani and Chinese firms. In recent years, Azerbaijan has purchased other Pakistani aircraft. Baku and Islamabad have historically warm relations.
Source: RFE/RL
EU Envoy: Visa-Free Status for Georgia Depends on Free Elections
The European Union ambassador to Georgia stated on September 20 that the EU might cancel visa-free travel for Georgian nationals if October’s national elections are not free and fair. Georgia had previously achieved visa liberalization as part of a long-running push for EU integration, but recent years have seen those bilateral relations fracture.
Source: RFE/RL
Blinken Holds Talks with Foreign Ministers of Azerbaijan and Armenia
U.S. Secretary of State Antony Blinken held tri-partite discussions with Armenia’s Foreign Minister Mirzoyan and Azerbaijan’s Foreign Minister Bayramov on the sidelines of the United Nations General Assembly. The discussion focused on the ongoing Armenia-Azerbaijan peace and normalization process, with Blinken commending both parties for the progress made thus far.
Source: U.S. Department of State
Azerbaijan and Israel Strengthen Defense Cooperation
On September 26, the ambassador of Israel to Azerbaijan announced on his X page that AS Holdings and its subsidiary, Ari Arms, an international company specializing in the development and manufacture of NATO-standard light arms, signed a Memorandum of Understanding (MoU) with Azersilah, Azerbaijan’s state-owned defense company.
