By Selçuk Çolakoğlu

January 31, 2023

After Russia’s invasion of Ukraine, the West‑led sanctions regime against Russia, coupled with Russian counter-sanctions, has affected everything from energy resources and logistics to banking transactions and customs procedures. Western countries have realized that Moscow can weaponize its geopolitical position and logistic networks. Strategic over‑dependence on Russia’s energy, markets, and logistics has created significant challenges to neighboring countries due to increasing political tensions between the West and Russia. This development is undermining the Northern (Russian) Corridor’s position as the main overland East-West corridor. In turn, the alternative Middle Corridor is currently facing its best opportunity ever to take a leading position in connecting Europe and Asia.

By Tony Pizur

February 22, 2022, the CACI Analyst

On January 25, Kazakhstan experienced widespread power outages that also affected neighboring Uzbekistan and Kyrgyzstan. Decaying infrastructure and increasing energy demand from cryptocurrency miners were blamed for the failure. Crypto operations are controversial because they divert scarce electricity resources from traditional household and industrial uses. After China’s complete ban on cryptocurrency activity last year, Kazakhstan was unprepared to accommodate the sudden influx of displaced crypto miners; nevertheless, the country quickly became the world’s second-largest source for newly minted bitcoins. Stopgap measures to restore power included patching physical infrastructure, sourcing electricity from Russia, and temporarily banning cryptocurrency mining.

 By Stephen Blank

November 29, 2018, the CACI Analyst

The signing of the Caspian convention in August 2018 has opened up exciting new possibilities for getting Central Asian oil and gas to European and global markets. The long-desired Southern Gas Corridor (SGC) from both shores of the Caspian has thus become a possibility. By thinking big, we can use Caspian gas for beneficial economic and political purposes. Whatever route Caspian energy takes to Europe, it must traverse the Caucasus and can be of substantial value in transforming the Eurasian geopolitical scene and agenda. Specifically, those parties who have the most to gain form resolving the Nagorno-Karabakh conflict can now devise a peace program that incorporates the use of energy to help foster an enduring peace between Armenia and Azerbaijan, reduce Russia’s ability to manipulate this conflict, and at the same time enrich them both as well as European consumers.

 By Dmitry Shlapentokh

November 15, 2017, the CACI Analyst

At first glance, Turkmenistan’s decision in January 2017 to stop selling gas to Iran was a minor episode in the context of an otherwise friendly relationship between Tehran and Ashgabat, as indicated by several meetings of high Iranian and Turkmen officials following the clash over gas deliveries. However, the tension with Iran could imply serious problems for Turkmenistan and lead to increasing dependence on Beijing, regardless of all Ashgabat’s maneuvering. Turkmenistan’s fallout with Iran also limits the ability of both the West and the South to access Central Asian gas and facilitates an increasing Chinese influence in this part of Eurasia, providing additional opportunities for China’s resurrection of the Silk Road.