Great Britain is betting on the middle corridor

According to Kazakh media, a high-level conference dedicated to the Caspian Sea transport corridor was held in London on July 2.

The event was attended by the British Prime Minister's Trade Representative for Azerbaijan and Central Asia, Lord John Alderdice.

Noting the economic and strategic importance of the route, the British official called on all countries in the region to prioritize this direction, which promises great dividends for the entire Euro-Caspian space.

Lord Alderdice also outlined concrete steps taken by London to support the development of infrastructure in the region. It is important to note that UK Export Finance (UKEF) has completed its first aviation deal in Azerbaijan and is currently reviewing port and rail modernization projects in Kazakhstan and Georgia. In addition, as part of the revised UK Industrial Strategy, UKEF has committed £20 billion ($27.3 billion) in new financing, part of which is aimed at supporting transport connectivity and infrastructure.

“We also played a useful, perhaps decisive, role in helping Kazakhstan, Kyrgyzstan and Uzbekistan raise a staggering $10 billion through sovereign bond offerings on the London Stock Exchange last year, providing funding for connectivity projects,” Alderdais added.

The UK’s broader strategic focus on the region was also highlighted by Afzal Khan, MP and UK Trade Representative to Turkey, who described the Middle Corridor as a “faster, more efficient and sustainable” alternative trade route.

The Kazakh Ambassador to the UK, Magzhan Ilyasov, highlighted another important factor – the countries involved in the development of the Middle Corridor are not limited to transit tasks, but are also striving for deeper industrial cooperation.

“It’s not just about using Kazakhstan as a corridor. We want to create production and added value here – processing raw materials, including rare metals, and exporting finished products to the UK and other countries,” he said.

The ambassador cited logistical challenges, such as the difference in gauge on the border with China and delays at Caspian Sea ports, but he saw them as opportunities to optimize logistics.

“Kazakhstan not only invites others to buy its goods, but also offers joint production, joint innovation and joint access to global markets,” he said.

An expert on Russian and Eastern European politics, Dr. Stepanenko, described the UK’s involvement in the Middle Corridor in geostrategic terms.

“For the UK, an early entry into the Middle Corridor is a smart way to simultaneously protect three national interests: reducing Russia’s transit revenues by diverting cargo from the Kremlin’s railways to the south, protecting against disruptions to critical supply chains by China, and opening up new, high-margin horizons for urban capital and professional services,” he said.

Nick Coleman, Senior Editor for Oil News at S&P Global Commodity Insights, highlighted the growing importance of the corridor for Europe’s energy logistics and security of supply, particularly in the context of ongoing geopolitical instability.

Chris Brooks, PhD, Global Director of FH Bertling Logistics, spoke about both the opportunities and technical constraints in the logistics sector.

He said that the Middle Corridor could serve as a safety net due to the uncertainty of sea routes. At the same time, he touched on the problems of protecting Western sanctions against Russia and transporting large cargoes.

Recall that in April of this year, at the EU-Central Asia Summit in Samarkand, Brussels expressed strong support for the development of the Middle Corridor. The European Union has pledged to invest €12 billion in infrastructure development and modernization in the countries of the region along this route.

Moscow, for its part, has made no secret of its displeasure with the fact that Central Asian countries are developing a trade route bypassing Russia and in partnership with the EU.

According to the organization Third World Solidarity, more than 85 percent of rail trade between China and Europe passed through Russia until 2022. Western sanctions and changing geopolitical dynamics have made this route less viable.

Instead, the Middle Corridor has become a reliable alternative, with annual cargo throughput increasing from 840,000 tons in 2021 to 4.5 million tons in 2024. The World Bank predicts that this figure could double to 11 million tons by 2030, provided that critical investments in infrastructure are made.

Info: agrokavkaz.ge