Azerbaijan, Central Asia ties: Milestone in energy, trade, connectivity collaboration

Azerbaijan remains steadfast in its commitment to fostering strong cooperation with Central Asian nations, with which it shares deep-rooted cultural, historical, and value-based connections. Strengthening these ties is a cornerstone of Azerbaijan’s foreign policy. In pursuit of this goal, President Ilham Aliyev of the Republic of Azerbaijan visited Kazakhstan on August 8, following an invitation from Kazakh President Kassym-Jomart Tokayev, to attend a significant meeting of the Heads of State of Central Asia and Azerbaijan.

Azerbaijan's successful foreign policies have significantly enhanced its integration into the international community. A notable recent event was President Aliyev’s participation in a high-level meeting in Astana on July 3, where he engaged with leaders from China, Turkiye, Russia, Pakistan, and Kazakhstan.

President Aliyev’s involvement in such international forums underscores his influential leadership and the respect Azerbaijan commands on the global stage. This respect is a direct result of his strategic and visionary policies, which have elevated Azerbaijan as a reliable partner and a key regional and international actor contributing to peace, security, and enhanced cooperation.

Azerbaijan’s growing influence was further highlighted by its invitation to the Shanghai Cooperation Organization (SCO) Summit for the second consecutive time. President Aliyev's participation in this prestigious event reflects the high regard in which he is held internationally. He had previously attended the SCO Summit in Samarkand, Uzbekistan, in September 2022.

The SCO, established in 2001 in Shanghai by Kazakhstan, China, Kyrgyzstan, Russia, Uzbekistan, and Tajikistan, now includes nine member states, three observer states, and 14 dialogue partners, including Azerbaijan. At the 2022 Samarkand Summit, the process of elevating Belarus to full membership began.

The historical and cultural ties between Azerbaijan and Central Asia form the bedrock of their cooperation, making the comprehensive development of relations a natural progression. Together, Azerbaijan and Central Asia—both with rapidly growing economies, demographics, and geopolitical influence—constitute a region of increasing strategic importance in global politics.

Central Asian states also prioritize their relations with Azerbaijan, a close and brotherly nation. During the Patriotic War and in its aftermath, these countries supported Azerbaijan’s just cause and continue to contribute to the reconstruction of liberated territories. Uzbekistan’s gift of the Mirzo Ulugbek School, Kazakhstan’s recent inauguration of the Kurmangazy Creative Center, and Kyrgyzstan’s ongoing construction of a secondary school in Aghdam are tangible examples of this support.

The strengthening of ties between Azerbaijan and Central Asian countries is further bolstered by the personal relationships between the heads of state, which play a crucial role in elevating these bilateral relations to genuine strategic partnerships.

Recent years have witnessed a marked increase in high-level exchanges between the two regions, laying a strong foundation for expanding and deepening cooperation. In the past two years alone, President Aliyev has visited Central Asia 16 times, while Central Asian leaders have reciprocated with 15 visits to Azerbaijan, highlighting the robust nature of these bilateral relations.

The evolution of Azerbaijan’s relations with Central Asia is driven by strategic considerations, particularly the vital role of transportation corridors in fostering these ties. President Aliyev’s frequent visits to Central Asia and his participation as an honorary guest at regional organizational events underscore the dynamic and growing nature of Azerbaijan’s relations with these countries. His attendance at summits of SCO member states, the Conference on Interaction and Confidence-Building Measures in Asia (CICA), Consultative Meetings of Central Asian Leaders, and other regional events over recent years reflects Azerbaijan’s deepening interest in and commitment to this region.

Azerbaijan’s cooperation with Central Asian countries is flourishing both bilaterally and multilaterally, evidenced by successful collaborations within organizations such as the Turkic Council, SCO, United Nations’ Special Programme for the Economies of Central Asia (SPECA), Commonwealth of Independent States (CIS), and the Organization of Islamic Cooperation (OIC). On the international stage, these nations mutually support each other's sovereignty and territorial integrity and align their initiatives within international organizations.

In the context of expanding ties with Turkic states, an informal summit of the Turkic Council was held in Shusha on July 6, culminating in the signing of the "Shusha Declaration." This declaration underscores the importance of harnessing the full potential of Turkic states in various sectors, including politics, economics, transport, defense, humanitarian aid, education, and culture.

The declaration aims to accelerate the integration of Turkic states and expand their trade relations, with a particular focus on increasing the share of intra-Turkic trade within the overall trade volume among these nations.

Significant progress has also been made in trade and economic relations between Azerbaijan and Central Asian countries. In 2023, the trade volume between Azerbaijan and these countries reached approximately $1.4 billion. The combined GDP of Turkic states exceeds $4.7 trillion, with more than 90% of their trade conducted outside the Turkic world, contributing to global trade development. Joint investment funds, tax exemptions, and efforts to facilitate trade and digitize processes are expected to further enhance economic cooperation.

The successful cooperation within the UN’s SPECA program is also noteworthy. SPECA, initiated in 1998 by the UN Economic Commission for Europe (UNECE) and the UN Economic and Social Commission for Asia and the Pacific (UNESCAP), supports the transition economies of Central Asia. Azerbaijan joined the program in 2002 and has since hosted various related events, further integrating into the regional economic framework.

Transportation and logistics represent another key area of cooperation between Azerbaijan and Central Asia. Azerbaijan has significantly developed its transport infrastructure, establishing itself as a vital transport and logistics hub in the Eurasian region. The Trans-Caspian International Transport Route, also known as the Middle Corridor, is a prime example of this development, linking China, Kazakhstan, Azerbaijan, Georgia, Turkiye, and Europe via the Caspian Sea.

Azerbaijan’s strategic geographic location serves as a bridge for Central Asia to connect with the South Caucasus, the Black Sea, Eastern Europe, and the Mediterranean basin. Azerbaijan’s role as a transit corridor between Europe and Asia complements the efforts of Asian countries to diversify trade routes and enhance regional connectivity.

The transport cooperation between Azerbaijan and Central Asia has gained renewed significance, with the Middle Corridor emerging as a key transportation and logistics route. In 2023, nearly 2.8 million tons of cargo were transported via this corridor, marking an 86% increase compared to 2022. The volume of cargo is expected to exceed 4 million tons in 2024, with approximately 250 block container trains scheduled for dispatch by the end of the year.

In the first half of 2024 alone, the volume of cargo transported via the Middle Corridor increased by 65%, reaching 2.1 million tons.

Given recent geopolitical developments, the Middle Corridor has become the shortest and most convenient route connecting Central Asia with Europe through the Caspian Sea. The expansion of the Baku-Tbilisi-Kars railway, the increased annual throughput of the Alat International Trade Port to 25 million tons, the growth of Azerbaijan's merchant fleet in the Caspian Sea, and infrastructure projects in Central Asian countries have further enhanced the importance and attractiveness of the Middle Corridor. Over the past five years, the volume of cargo transported along this route has increased by more than 110%, with over 15% growth in cargo and more than 20% growth in transit transportation observed in the first half of this year compared to the same period last year.

Azerbaijan and Central Asian countries continue to cooperate successfully across numerous sectors of the economy. A recent milestone in this cooperation is the joint adoption of a significant agreement on the export of "green energy" by Azerbaijan, Kazakhstan, and Uzbekistan. This agreement focuses on energy exchange centered on renewable energy sources. On August 6, Azerbaijan participated in the first meeting of Central Asian energy ministers in Astana. The Azerbaijani delegation, led by Deputy Minister of Energy Orkhan Zeynalov, also attended a trilateral meeting on the project to integrate the energy systems of Azerbaijan, Kazakhstan, and Uzbekistan.

During these discussions, the deputy minister emphasized the political will of the heads of state to deepen bilateral and multilateral cooperation and announced plans to hold a "Central Asia and Azerbaijan Energy Investment Forum" within the framework of COP29.

The discussions also addressed the creation of the "Azerbaijan-Central Asia-Europe" green energy corridor, with further steps outlined for the future. A draft agreement on strategic partnership in green energy development and transmission was agreed upon, with the Italian company CESI selected to prepare the technical and economic feasibility study, and an agreement reached on the establishment of a Joint Venture involving the national energy companies of the participating countries.

These developments underscore the vast potential for cooperation between Azerbaijan and Central Asian countries. Today, Azerbaijan plays a crucial role in ensuring Europe's energy security, serving as a vital transit country and a reliable partner for Central Asia and beyond, linking East and West.