TRACECA News ~ August, 2025

The second China-Central Asia Civil Aviation Cooperation Conference held in Astana in August highlighted the growing ties. China proposed key steps: strengthening airline partnerships, simplifying customs procedures, modernizing airports, reducing fuel costs, and improving safety. Regional unity is key to building a Eurasian transport hub.

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Kazakhstan has overtaken Russia and Turkmenistan in terms of per capita GDP. In 2025, Kazakhstan’s per capita GDP was estimated at $14,770, surpassing China’s ($13,690), according to the International Monetary Fund. Economic reforms, resource exports, and a strategic location are driving the country’s economic growth.

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On August 18-20, Tashkent hosted the 33rd high-level meeting on cooperation between Uzbekistan, Azerbaijan, and Europe. The leaders discussed the Middle East Corridor, the development of artificial intelligence, climate challenges, trade, and regional cooperation to strengthen trans-regional ties.

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Iranian President Masoud Pezeshkian said the North-South International Transport Corridor would be the main topic of his visit to Armenia. He highlighted the corridor’s potential to boost trade by significantly reducing freight delivery times between Asia and Europe, while also expressing concern about the activities of US companies in the region.

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Kazakhstan has prepared an intergovernmental agreement to accelerate the development of the Middle Corridor, which connects China with Europe through Central Asia, the Caspian Sea and the South Caucasus. Thanks to digital innovations, cargo clearance has been reduced from 8 hours to just 30 minutes, and transit time from 53 days to 17 days. With a 62% increase in cargo volume in 2024, the corridor’s capacity is expected to reach 10 million tons by 2027.

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Uzbekistan is working with the World Bank to modernize its transport sector. The talks covered infrastructure upgrades, digital transformation, city-to-city connectivity, micro mobility and workforce training. This is an important step towards sustainable and efficient transportation.

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At the Tashkent forum, Uzbekistan, Azerbaijan and Georgia strengthened regional cooperation with new trade agreements, energy projects, including a “green energy corridor”, and transport initiatives. The moves strengthen their role as strategic hubs connecting Central Asia, the South Caucasus and Europe.

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Azerbaijan’s SOCAR and Turkey’s Cengiz Holding are seen as the frontrunners to buy Bulgaria’s Burgas oil refinery, once Russia’s largest industrial asset in the Balkans. The deal, worth around $2 billion, marks a historic shift in the energy landscape of southeastern Europe. Burgas has been a stronghold of Moscow’s influence for decades. Now, as Russia’s influence wanes, Azerbaijan and Turkey are reshaping Europe’s energy map and strengthening the Caspian-Black Sea corridor as a strategic lifeline for the European Union.

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According to SOCAR, 83.36 billion cubic meters of Azerbaijani gas have been delivered through TANAP – 34.18 billion cubic meters to Turkey and 49.18 billion cubic meters to Europe. The pipeline, which was commissioned in 2018, is a key link in the Southern Gas Corridor, increasing regional and European energy security.

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EU Representative Anita Hipper says the bloc is ready to support new transport initiatives in the South Caucasus, including the TRIPP route. The EU aims to strengthen regional integration, support Armenia-Azerbaijan cooperation and provide expert guidance for the implementation of the routes.

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A single transit cargo document will be introduced along the Middle Corridor to simplify customs procedures and increase trade efficiency. Plans include digital platforms, improved visa rules for transport crews and simplification of international procedures within the framework of the 2025 Roadmap.

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Tourism from Kazakhstan to Azerbaijan increased by 20.6% in January-July 2025, making Kazakhstan the 7th largest source of visitors. Experts attribute the growth to cultural ties, direct flights and growing business ties. Baku, Sheki and Ganja remain top destinations.

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Presidents Kassym-Jomart Tokayev and Sadyr Jafarov chaired the 7th Kazakhstan-Kyrgyzstan Interstate Council in Bishkek, where they highlighted $2 billion in trade, strategic cooperation and deeper cultural, economic and energy ties.

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Uzbekistan (Shavkat Mirziyoyev) and Turkmenistan (Gurbanguly Berdimuhamedow) have agreed to establish the Shavat-Dashoguz border trade zone in 2025. Trade turnover has already reached $700 million, and the project aims to strengthen economic ties, create jobs and strengthen regional cooperation.

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Kyrgyzstan and Uzbekistan will jointly build a modern Class A logistics center in Bishkek. The 1.7-hectare project will include warehouses, offices and automation systems, create 31 jobs and strengthen regional trade ties.

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Germany and Kyrgyzstan have signed a cooperation agreement to develop transit and logistics. German firm Rhenus SE & Co. KG will support Kyrgyzstan’s railways, focusing on green energy, infrastructure, jobs and climate challenges.

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China’s Shandong Huada Group will invest $500 million to build a logistics park in Uzbekistan’s Andijan region. The project will include railway and road links, strengthening connectivity with the China-Kyrgyzstan-Uzbekistan railway and major highways.

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Jordan’s King Abdullah II is launching a new era of cooperation with his first historic visit to Uzbekistan. From trade and investment to drones, pharmaceutical production and counterterrorism, the two countries have signed 15 agreements that establish a long-term strategic partnership.

Starting September 25, citizens of Uzbekistan and Jordan will be able to travel visa-free for up to 30 days. Jordan becomes 35th country to open visa-free travel to Uzbeks, marking a new step in bilateral relations following talks between Mirziyoyev and King Abdullah II.

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Uzbekistan hosted the first meeting of Central Asia’s special representatives on Afghanistan. Leaders discussed regional security, trade, transport and cultural ties, emphasizing coordinated strategies for stability and sustainable development.

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The Asian Development Bank has approved a $233 million loan for Uzbekistan to modernize a key section of the Middle Corridor. The project will help strengthen transit links, climate resilience and secure mobility, enhancing Uzbekistan’s role as a regional transport hub.

The Caspian Post