In a significant move to enhance connectivity and trade routes, Valdis Dombrovskis, the Executive Vice President of the European Commission, announced at the EU-Central Asia Connectivity Forum that various financial institutions have committed to investing 10 billion euros in the development of the Trans-Caspian Corridor. This initiative is seen as a strategic effort to bypass Russia, especially in the wake of ongoing geopolitical tensions.
The announcement was made on Jan. 29, 2024, at the commencement of the Global Gateway Investors Forum in Brussels, which focuses on transportation links between the European Union and Central Asia. Dombrovskis emphasized that the investment aims to establish a state-of-the-art, multimodal, and efficient route, aiming to connect Europe and Asia within a maximum travel time of 15 days. The forum participants are set to discuss over the next two days the necessary investments to achieve this ambitious goal.
This initiative emerges as a direct consequence of Russia's invasion of Ukraine, prompting the European Union to seek "alternative, reliable, and efficient" commercial routes to Asia that do not transit through Russia. The 10 billion euros encompass ongoing investments and planned ones, set to be mobilized in the short term.
This includes 1.47 billion euros agreed upon by the European Investment Bank with the governments of Kazakhstan, Kyrgyzstan, and Uzbekistan, and the Development Bank of Kazakhstan. Additionally, on Jan. 29, the European Bank for Reconstruction and Development (EBRD) signed a memorandum of understanding with Kazakhstan to invest 1.5 billion euros.
