Important News in the TRACECA Countries - May 2026

2026-05-12

Kasym-Jomart Tokayev has approved a law ratifying the Treaty on Allied Relations between Kazakhstan and Tajikistan. The agreement is expected to strengthen trade, economic cooperation, security cooperation and long-term development between the two countries [caspianpost.com]

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On May 5, Armenia and France signed an agreement on the construction of the Bagushat Tunnel on the North-South Highway, which will connect the Iran-Armenia and Georgia-Armenia border sections. [newsplus.ge]

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On May 10, Ilham Aliyev announced the construction of a new transport hub in Zangilan, located in the southwest of Azerbaijan and bordering Armenia and Iran. Zangilan will serve as a border gate connecting the two neighboring countries. Travel from Baku to Zangilan will be possible by rail. The railway will be extended and will join the Zangezur corridor to connect with Nakhchivan. Next year, rail traffic will also begin in Khankendi [the center of Nagorno-Karabakh]. At the same time, the construction of a bridge on the Iranian border is almost complete, and border and customs infrastructure in Aghbend is currently under construction. From Zangilan through Aghbend to the Persian Gulf; from there to Nakhchivan, then to Julfa and back to the Persian Gulf. This place will become an international center. [president.az]

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Baku and Astana are preparing a joint project for the development of the Caspian Sea, Kazakhstan and Azerbaijan plan to create a joint earthworks enterprise. The initiative is reflected in the draft resolution of the Kazakh government entitled “On signing an agreement on cooperation in the development of the Middle Corridor” [caspianpost.com]

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The Turkmen authorities have announced an international tender for the preparation of a feasibility study for the modernization of the Ashgabat-Turkmenbashi railway on the Caspian Sea to the port of Turkmenbashi. At the same time, it is planned to reconstruct the connecting railway line between Ashgabat and Turkmenbashi.

According to the Turkmen government, the railway modernization project from the Uzbek border to the Caspian Sea will compete with the Middle Corridor in attracting Chinese cargo flows. According to another opinion, the Turkmen route can create not competition, but synergy effects in the region, additionally performing the function of a connecting link. This means reducing the load on the “bottlenecks” of the Caspian Sea, in particular, on the ports of Kazakhstan. For Georgia, both of these factors - competition and achieving synergy effects - will strengthen the ability to attract cargo.

In parallel with the construction of the most financially capacious ($4.7 billion) railway route (China-Kyrgyzstan-Uzbekistan) with the involvement of China and bypassing Russia, the Turkmenabad-Turkmenbashi railway line is a logical continuation of the TRACECA program. Turkmenistan has been cooperating with Chinese locomotive manufacturers for over 20 years. Currently, Turkmenistan's rolling stock includes 180 locomotives and 423 wagons supplied from China. [transcor.ge]

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