By Mehmet Fatih Oztarsu

On September 17, 2024, German Chancellor Olaf Scholz participated in the second Germany-Central Asia Summit held in Kazakhstan. His three-day visit to the region commenced in Uzbekistan, followed by engagements in Kazakhstan, where he also held meetings with the leaders of Turkmenistan, Kyrgyzstan, and Tajikistan. At present, Germany is confronted with the necessity of refining its regional policy to effectively respond to the evolving challenges in Central Asia. While it seeks to deepen its relations with the region, the specific approach it will adopt to address these challenges remains uncertain.

BACKGROUND: Germany's interest in Central Asia has significantly increased in recent years, as evidenced by a series of high-level visits and diplomatic initiatives. In 2023, German President Frank-Walter Steinmeier visited Kazakhstan and Kyrgyzstan, followed by the inaugural Germany-Central Asia Summit. These engagements have consistently emphasized the importance of strengthening ties with the region, with particular focus on Kazakhstan. With a trade volume of $4 billion, Kazakhstan plays a crucial role for Germany and is viewed as a strategic country within the Middle Corridor. Uzbekistan has recently begun to draw attention as well. Germany has also demonstrated its capacity for swift action in responding to the challenges Europe has faced since 2022, following Russia's invasion of Ukraine. The increasing perception of Russia as a security threat has forced Germany, along with other European nations, to make critical decisions. Recognizing the necessity of adopting a more proactive stance, particularly in terms of military and energy policies, Germany has taken measures to address its concerns with Russia indirectly, while positioning itself as a key actor in the broader regional context. The decision to deepen relations with the Central Asian republics represents a significant development during this period. The growing consensus that Germany must adopt a more active role in the region than it has in the past is shaping the current government’s strategic approach. Alongside issues such as migration, security, energy, and the Middle Corridor, the broader challenge of regional competition has also emerged as a priority on the government’s agenda. In this context, it is essential to acknowledge that China's influence in Central Asia is as significant as Russia's. Germany has emphasized that its efforts to reduce the influence of both Russia and China in the region are undertaken on behalf of all European countries, reflecting a coordinated response to these geopolitical dynamics. During her 2022 visit to Kazakhstan and Uzbekistan, German Foreign Minister Annalena Baerbock expressed this sentiment, stating: “It is important to me that the future holds more for them than merely the choice between being straitjacketed in Russia’s front yard or being dependent on China. And so my main aim in Kazakhstan and Uzbekistan is to listen to the hopes and expectations that people there are pinning on Europe in the current circumstances.” The German-Central Asian Summit and the recent strengthening of ties with the region have emerged as key developments in recent years. The second summit took place at a time when Chancellor Scholz indicated a more proactive approach toward Central Asia. This shift raises important questions about how Germany will manage its relations with the region, whether it will pursue a selective policy approach, and how closely its actions will align with the expectations of the international community. These factors will be critical in shaping Germany's long-term strategy and influence in Central Asia amidst a complex geopolitical environment.

IMPLICATIONS: In September 2024, Chancellor Scholz began his meetings in Uzbekistan as part of a strategy to provide regional balance. The German government described his visit as an effort "to breathe life into this regional partnership," reflecting Germany's growing interest in Uzbekistan’s increasing economic strength. During his meeting with Uzbek President Shavkat Mirziyoyev, Scholz emphasized Germany’s firm commitment to deepening bilateral relations. The two parties signed several agreements, including those relating to the Green Central Asia Initiative and critical minerals. However, the migration agreement attracted the most attention. This deal aims to address the legal challenges faced by Uzbek citizens by facilitating the movement of skilled workers to Germany, enabling them to work in various sectors. For Uzbekistan, which had long awaited this development, the agreement marked a significant achievement in its relations with Germany. On the other hand, the German media has reported that another significant aspect of the agreement pertains to the deportation of Afghan nationals who have committed crimes in Germany. In June 2024, it was revealed that Germany would work with Uzbekistan to facilitate this process without directly engaging with the Taliban government in Afghanistan. Uzbekistan has expressed its willingness to cooperate and is expected to play a crucial role in the deportation of Afghan individuals from Germany. During the talks, President Shavkat Mirziyoyev highlighted the historical depth of bilateral relations between Uzbekistan and Germany, dating back to the 18th century, and stressed the importance of strengthening these ties in the current era. Both parties agreed to enhance cooperation in various sectors, particularly in politics, security, defense, and culture. The trade volume, which was approximately $1.3 billion in 2023, is expected to increase significantly in the near future. As a result, Uzbekistan, alongside Kazakhstan, has emerged as one of the key countries receiving special attention from Germany. After Uzbekistan, Scholz visited Kazakhstan, where the summit was to take place, signaling Germany’s new Central Asia policy. Scholz gave a statement highlighting Central Asia’s importance: “We want to continue and further intensify this... Especially in times of global uncertainty, we need close, trusting international partners.” Chancellor Scholz's remarks indirectly referenced the Russian invasion of Ukraine and the resulting instability. Since early 2022, the war has brought significant disruption to Europe, leading to negative consequences that have directly and indirectly affected Germany. Issues ranging from energy security to the defense of the European Union's borders have highlighted Russia's continuing presence as a multifaceted threat, contributing to what Scholz has referred to as "global uncertainty." Central Asia, once regarded by Russia as its "near abroad," has now been redefined by Germany as a region of "trustworthy partners." Kazakh President Kassym-Jomart Tokayev, who hosted the summit, outlined six key areas of cooperation with Germany. He emphasized the importance of increasing trade volume and called for collaboration in energy, industry, transport, water resource management, and efforts toward global peace. Central Asian countries view their relations with Germany as a strategic opportunity to attract technical and technological investments while leveraging Germany as a gateway to strengthen ties with the broader European Union. Consequently, the recent meeting underscored a strong interest in Germany's technical expertise. Proposals were put forward to further develop the Middle Corridor and to involve Germany in the Green Energy Line project connecting Kazakhstan, Azerbaijan, and Uzbekistan. Additionally, both sides expressed interest in expanding cooperation on hydrogen energy to encompass the entire European Union. In the broader context of regional affairs, the European Union's Global Gateway strategy remains crucial. This initiative, which has received praise from President Tokayev, is valued for its role in enhancing transport connectivity between Central Asia and the EU. However, Germany’s Central Asia policy is now facing growing pressure and heightened expectations from multiple stakeholders. Many media outlets and academics interpret the Global Gateway as a competitive response to China's influence in the region, particularly through its Belt and Road Initiative, which has been active since 2013. China's role has faced criticism from various perspectives, leading to increasing calls for Western-centered initiatives. As a key player, Germany is expected to promote policies that advance European strategies across different regions. Nevertheless, the long-term advantages of a regional strategy focused on competing with China remain uncertain for Germany, raising questions about the sustainability and impact of such an approach. International organizations have increasingly urged Germany to adopt a more proactive stance on human rights issues in Central Asia. Human Rights Watch, for example, has called on Germany to address persistent challenges in the region. However, the long-term impact of Germany’s involvement in sensitive matters such as human rights abuses, ethnic conflicts, authoritarian regimes, and non-transparent elections remains uncertain. Scholz has expressed doubt about Germany’s ability to take a leading role on these issues at this time. How Germany navigates these concerns will significantly influence its position within Europe and its reputation as a reliable partner in Central Asia. Afghanistan, on the other hand, continues to pose a major challenge for Germany. Scholz has condemned the Taliban’s rise to power as “illegitimate” and described the situation in Afghanistan as "depressing." However, his stance has been interpreted in varying ways by countries in the region. While Germany can adopt a more selective approach to its relations with Afghanistan, Central Asian states do not have the same flexibility due to their geographical and political proximity. As a result, Germany's attempts to influence the policies of regional countries concerning Afghanistan could lead to unintended negative consequences. Germany's involvement in the regional strategies of Afghanistan's neighbors—such as Turkmenistan, Uzbekistan, and Tajikistan—could potentially create tensions and adverse repercussions, complicating its broader Central Asian policy.

CONCLUSIONS: Germany now stands at a critical juncture, facing important decisions regarding its role in Central Asia. The country has the opportunity to establish a solid presence in the region by adopting a win-win strategy, leveraging its technical expertise, and fostering collaborative relationships with Central Asian countries. Conversely, Germany could also choose to act as an indirect pressure mechanism by criticizing, commenting on, or interfering in the internal affairs of these nations, potentially limiting its influence and creating friction within the region. The way Central Asian republics perceive the notion of "trustworthy partners" will become clearer over time as these dynamics unfold. Although the ambitious rhetoric of leaders like Foreign Minister Annalena Baerbock and Chancellor Scholz may initially seem promising for Germany and Europe, any negative consequences arising from the region’s complex realities could be viewed as a political failure for the German government. In this context, it would be more prudent for Germany to align its policies with the expectations of the Central Asian republics. Rather than taking a top-down approach, policies should be crafted on an equal footing, emphasizing mutual respect and shared interests to ensure a sustainable and constructive partnership.

AUTHOR’S BIO: Dr Mehmet Fatih Oztarsu is Assistant Professor at Joongbu University and Senior Researcher at the Institute of EU Studies at Hankuk University of Foreign Studies. He studied and worked in Baku, Yerevan, Tbilisi, and Seoul as academic and journalist. He is the author of numerous articles and books on South Caucasus and Central Asian affairs.

COMPETITION VS PARTNERSHIP: UZBEKISTAN-KAZAKHSTAN RELATIONS IN THE FIELD OF TRANSPORT AND TRANSIT

By Nargiza Umarova

Recent geopolitical crises in Eastern Europe and the Middle East have created favorable conditions for the development of intercontinental land trade routes, significantly enhancing the role of Central Asia as a transit region linking major Eurasian markets. This shift was anticipated to improve intraregional transport connectivity and facilitate the integration of Central Asian republics into global supply chains – both essential for the region’s economic growth. However, unity among the five Central Asian states on these initiatives remains elusive. Currently, these countries prioritize the creation of international transit corridors over local connectivity. Low coordination between them leads to duplication of projects, and the focus on their own interests becomes a source of unhealthy competition. Rivalry is particularly evident in the actions of Kazakhstan and Uzbekistan, each seeking alternative access to Turkish and European markets via the Caspian Sea.

BACKGROUND:  In 2018, the Central Asian states initiated a mechanism for regular Consultative Meetings aimed at enhancing multilateral cooperation in transport communications. A key priority identified was the alignment of national transport systems, a crucial prerequisite for boosting mutual trade and expanding the transit potential of the region’s countries. To facilitate this alignment, plans were proposed to establish a Regional Center for the Development of Transport and Communications Interconnectivity under the auspices of the United Nations, to develop a Strategy for Regional Transport Corridor Development in Central Asia, and to adopt a Regional Program for Transport Communication Development. However, years later, these initiatives remain unimplemented, although some positive developments have occurred. In 2018, Uzbekistan and Tajikistan resumed railway service along the critical Galaba-Amuzang-Khoshadi route, resulting in nearly a twofold increase in mutual trade. A similar outcome was observed between Uzbekistan and Kyrgyzstan following the launch of the multimodal corridor Tashkent-Andijan-Osh-Irkeshtam-Kashgar in the same year.  Uzbekistan and Kazakhstan have demonstrated considerable activity in advancing local transport projects. As the largest economies in Central Asia, these nations account for nearly the entire volume of intraregional trade, motivating them to develop new mutually beneficial freight routes. In 2021, the two countries agreed to construct the Uchkuduk-Kyzylorda road and railway, which will connect Kazakhstan's Kyzylorda region with Uzbekistan's industrial Navoi region, effectively reducing the distance between them by more than three times. Additional plans include the construction of the Darbaza-Maktaaral railway line and the Beineu-Shalkar road. Despite successful cooperation within the region, Astana and Tashkent occasionally find themselves in competition in the external transport and logistics arena, which can be characterized as a conflict of interests. A prominent example of this rivalry is the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. Following the onset of the war in Ukraine, demand for the Middle Corridor among global cargo-generating centers in both the East and West has surged significantly. This land trade route from China to Europe traverses Central Asia, the Caspian Sea, the South Caucasus and Turkey. The TITR serves as an alternative to the Northern Corridor, whose operations are hindered by anti-Russian sanctions. The route is experiencing robust development, with transportation volumes reaching 2.7 million tons in 2023 and projected to increase to 4.2 million tons in 2024. Since the start of this year, container transit from China through the Middle Corridor has increased by a factor of 14. Within a few years, the route’s capacity could expand to accommodate 10 million tons of cargo annually. With appropriate infrastructure improvements and enhanced terminal capacities, the Trans-Caspian route is projected to become 35 percent faster and 40 percent more cost-effective than the Northern Corridor in the near future.

IMPLICATIONS:  It is important to emphasize that nearly all Central Asian countries are involved in the Trans-Caspian International Transport Route (TITR), not solely Kazakhstan. According to experts from the European Bank for Reconstruction and Development (EBRD), there are three primary transit routes within the Middle Corridor: the northern route, which passes through northern Kazakhstan; the central route, which traverses southern Kazakhstan; and the southern route, which runs through Kyrgyzstan, Uzbekistan, and Turkmenistan. Kazakhstan occupies a uniquely advantageous position within the Central Asian segment of the China–European Union–China supply chain. This strategic edge stems from its shared borders with both China and Russia. Meanwhile, Uzbekistan is also striving to establish a significant role in transit transportation between China and Europe. Uzbekistan’s involvement in multimodal transport routes such as Kyrgyzstan–Uzbekistan–Turkmenistan–Caspian Sea–Azerbaijan–Georgia–Black Sea region, or Georgia–Turkey–European Union (part of the Transport Corridor Europe-Caucasus-Asia, TRACECA), as well as Kyrgyzstan–Uzbekistan–Turkmenistan–Iran–Turkey–European Union, supports its ambitions in this area. It is relevant to highlight the China-Kyrgyzstan-Uzbekistan highway, which allows cargo from China to reach Uzbekistan in two days, compared to the ten days required via Kazakhstan. Plans are underway to construct a railway along a similar route, which would considerably enhance the positions of Tashkent and Bishkek in railway freight transportation from China to the Middle East, thereby bypassing Kazakhstan’s current monopoly. At present, Kazakhstan is the only Central Asian country with railway checkpoints on its border with China. In the development of trans-Caspian transport routes toward the West, Central Asian states operate as both partners and competitors. Partnership is evident in their collaborative efforts to develop connecting routes that enable the nations of the region to link up with various transit branches of the Middle Corridor. For instance, as noted earlier, Uzbekistan and Kazakhstan have agreed to construct the Uchkuduk-Kyzylorda railway, which will be integrated into the Kazakh section of the Trans-Caspian International Transport Route (TITR). In 2019, Uzbekistan, in collaboration with Kyrgyzstan, Turkmenistan, Azerbaijan, Georgia, and Turkey, launched an alternative trade route to Europe via the Caspian Sea, known as the CASCA+ (Central Asia–South Caucasus–Anatolia+) corridor. Recently, the participating countries agreed to establish a consortium—a specialized body to coordinate the activities of this route. This development marks the project’s advancement to an institutional level, which provides a solid foundation for enhancing its competitive potential and boosting the transit capabilities of both Central Asia and the South Caucasus. It is also worth noting that, as early as 2014, Kazakhstan, Azerbaijan, and Georgia institutionalized the Middle Corridor by first forming a Coordination Committee, which later evolved into the International Association “Trans-Caspian International Transport Route.” These instances highlight the ongoing fragmentation among Central Asian states in the development of extra-regional transport routes. This fragmentation carries the risk of fostering unhealthy competition, which could generate discord among the countries in the region.

CONCLUSIONS:  Given the growing trend of deepening intra-regional ties in Central Asia, driven by the current geopolitical realities, it is increasingly crucial for Uzbekistan and Kazakhstan to integrate their transport project potential and establish joint coordination mechanisms. A coordinated approach to managing transit transportation through the Caspian Sea along the China-Europe-China axis is necessary, grounded in principles of equality and mutual benefit. Ensuring that the interests of one party do not overshadow those of the other is key to fostering balanced cooperation. Moreover, harmonizing the activities of the CASCA+ corridor consortium with the International Association “Trans-Caspian International Transport Route” appears essential, with the goal of ultimately merging both structures into a unified coordinating body with legal status. Developing common approaches to international transport corridors and accelerating the adoption of the “Strategy for the Development of Transport Corridors in Central Asia,” which was first proposed in 2018, is equally important. Additionally, the proposal to establish a Regional Centre for Transport and Communications Interconnectivity under the auspices of the United Nations remains a pertinent issue.

AUTHOR'S BIO: Nargiza Umarova is a Senior Research Fellow at the Institute for Advanced International Studies (IAIS), University of World Economy and Diplomacy (UWED) and an analyst at the Non-governmental Research Institution  “Knowledge Caravan” (Tashkent, Uzbekistan). Her research activities are focused on studying the developments of Central Asia, trends in regional integration and the influence of great powers on this process. She also explores the current policy of Uzbekistan on the creation and development of international transport corridors.

By Eduard Abrahamyan

October 2, 2019, the CACI Analyst

Armenia’s 2018 Velvet Revolution raised hopes for a reinvigoration of the country’s decades-long partnership with the U.S. However, this relationship remains stagnant, despite the visit of a U.S. delegation led by National Security Advisor John Bolton in October 2018 and the subsequent visit of Deputy Assistant Secretary George Kent to Yerevan in May 2019, resulting in the formal elevation of Armenia’s relations with the U.S. to the level of “strategic dialogue.” Moreover, Yerevan’s decision to dispatch a military-humanitarian mission to Syria remains an irritant in its interaction with Washington. As a consequence, the ties have reached a historical low-point in comparison with the improving cooperation between the U.S. and other Caucasian states.