On July 4, the 17^th Summit of the Economic Cooperation Organization (ECO) took place in Khankendi, Azerbaijan. 

The summit welcomed representatives from the 10 ECO member states: Turkey, Uzbekistan, Kyrgyzstan, Pakistan, Kazakhstan, Tajikistan, Turkmenistan, and Afghanistan. The summit broadly focused on expanding inter-regional trade, tackling climate change, and the development of transport corridors.

Hosted in the newly built Khankendi Congress Center, the summit marked a notable milestone for the Trans-Caspian region and Azerbaijan.

The participating states reaffirmed their commitment to cooperation in the realm of energy, education, tourism, and inclusive growth. 

At the sidelines of the summit, Azerbaijan signed an agreement with Pakistan worth $2 billion for Azerbaijan to invest in Pakistan’s economic sector. Talks were also held between Azerbaijani and Turkmen representatives to widen bilateral cooperation on economic development and Caspian affairs. 

Interestingly, the representatives of Taliban-led Afghanistan met with Azerbaijan’s Prime Minister Ali Asadov to discuss regional infrastructure development. Particular attention was given to the Lapis Lazuli transport corridor that starts from Afghanistan’s Faryab and Herat provinces and traces through Turkmenistan to the Caucasus across the Caspian Sea. 

"It is a modest trade route,” said Central Asia journalist and analyst Bruce Pannier. “There are questions about what Afghanistan can export to the countries in the Caspian region and Europe, but as a possible new route for imports, it does hold significance for Afghanistan.” 

According to Pannier, the development of railway links through the Lapis Lazuli could raise the value of the transport corridor. “If, and it’s a big if, railways can be built in Western Afghanistan”, he noted. 

Trans-Caspian Cooperation Without Moscow and Beijing?

Founded in 1985 by Iran, Pakistan, and Turkey, ECO grew to encompass the broader Trans-Caspian region. With a combined population of 567 million and a GDP of $10 trillion, the organization is unique of other Eurasian regionalization initiatives in that ECO was founded and continues to function without Russia or China. 

While Russia has been able to maintain a political and economic foothold in Central Asia and the South Caucasus through institutions like the Eurasian Economic Union (EAEU) and the Collective Security Treaty Organization (CSTO), the impact of Russia’s prolonged war in Ukraine has prompted its regional partners to pursue alternative multilateral initiatives.

China’s outsized economic role in the region has also prompted concerns by regional states, however, ECO’s ability to anchor states like Turkey and Pakistan introduce a geopolitical balance in the face of Beijing. 

The Symbolism of Khankendi

President of Azerbaijan Ilham Aliyev highlighted the symbolic importance of the summit’s location. Azerbaijan took control of the Khankendi, previously Stepanakert, during the 2023 Nagorno-Karabakh conflict. Azerbaijan has led initiatives to reconstruct the city since September 2024. 

Kyrgyzstan’s President Sadyr Japarov jointly inaugurated the construction of Khidirli village in the Aghdam district with Aliyev. The project includes 719 houses to resettle 3,000 people.

Azerbaijan had hosted previous ECO summits in Baku in 2006 and 2012, making the latest summit the third it has hosted. Iran is set to host the 18^th ECO summit next year.

ECO’s Quiet Diplomacy

The role of ECO should not be overlooked. The organization’s combined GDP already exceeds the EAEU’s $8 trillion, a trend which will most likely continue. ECO’s ability to convene the states of the Trans-Caspian region, including Taliban-led Afghanistan, means that it the organization will remain instrumental in stabilizing the Eurasian region.  

“Apart from the important issues discussed at the ECO Summit, of real significance is the fact that the presidents of Iran and Türkiye both attended, affirming one of the important aspects of international organizations,” observes Richard Hoagland, former Ambassador of the United States to Uzbekistan. “They provide a venue for positive but quiet and off-the-record diplomacy.”