Headlines from the Caspian: June 23, 2025
Recent Articles
Author: Caspian Policy Center
06/23/2025
Energy and Economy
China and Central Asia Deepen Transport and Diplomatic Ties
China and the Five Central Asian countries have agreed to improve road, rail, and air connectivity while enhancing diplomatic exchanges, the Chinese Foreign Ministry announced on June 18, following the China-Central Asia Summit in Astana. The parties will explore opening more direct flights with China, simplifying visa procedures, and potentially establishing new consular offices. China, along with Kazakhstan, Kyrgyzstan, and Tajikistan, also plans to upgrade existing land ports and assess the need for new ones. President Xi Jinping signed a treaty on June 17 to formalize deeper cooperation with Central Asia in trade, energy, and infrastructure.
Source: Reuters
Russia and Uzbekistan Sign Agreement to Explore High-Capacity Nuclear Power Plant
Rosatom, the Russian state-owned nuclear energy firm, and Uzatom, its Uzbek equivalent, have signed an agreement in St. Petersburg to explore the feasibility of constructing a high-capacity nuclear power plant (NPP) in Uzbekistan. The agreement outlines the potential for the construction of two VVER-1000 reactors in Uzbekistan, building on pre-existing agreements with Rosatom to build smaller NPPs in Uzbekistan. Rosatom has expanded its presence in Central Asia in recent weeks, having been announced as the supplier of Kazakhstan’s Lake Balkhash NPP in June.
Source: Daryo
Armenia to Nationalize “Electric Networks of Armenia”
Following the arrest of Russian billionaire Samvel Karapetyan, Armenia’s Prime Minister Nikol Pashinyan announced the nationalization of Electric Networks of Armenia. Pashinyan promised that employees who cooperate with law enforcement and who refuse to protest the nationalization process will be allowed to retain their employment.
Source: JAM news
Kazakhstan Meets with Électricité de France to Discuss Potential Partnership
Asset Makhambetov and Vassily Lavrenov, who serve as deputy chairs of the Kazakhstan’s Atomic Energy Agency, met with the senior vice president for new nuclear projects and engineering at Électricité de France (EDF), Vakis Ramany. At the meeting, the sides explored possibilities of collaboration on Nuclear Power Plant construction, scientific projects, and small- and medium-sized reactors.
Source: The Astana Times
Uzbekistan Joins BRICS Development Bank
On June 18, the president of the New Development Bank, the development bank of the BRICS intergovernmental grouping, announced that Uzbekistan’s application for membership in the bank had been approved. The New Development Bank is seen as one of the central accomplishments of the BRICS format, with one of BRICS’s central goals being reduced reliance on the dollar as the world’s international reserve currency. Membership for Uzbekistan could allow for greater engagement with Global South countries for Tashkent, as well as with BRICS main backers, China and Russia.
Source: Times of Central Asia
Germany’s Volkswagen will start manufacturing cars in Uzbekistan
According to a statement released by Uzavtosanoat, an Uzbekistan firm, the company plans to start manufacturing Volkswagen cars beginning in 2026. In the statement, received by the Uzbek media outlet, Kun.uz, Uzavtosanoat explains that “the project is being implemented in phases. The first stage includes SKD assembly, while the second stage involves a transition to CKD production with deeper localization. This process entails technical and economic preparations, as well as the selection of the most suitable models for production in Uzbekistan.” This follows a previous agreement between Volkswagen and a subsidiary of Uzavtosanoat to cooperate in production and sales.
Source: Kun.uz
3rd Azerbaijan-Uzbekistan Interregional Forum Held in Baku
On June 20, Baku hosted the 3rd Azerbaijan-Uzbekistan Interregional Forum. Representatives from various sectors such as energy, trade, and investment, among others, discussed opportunities for expanding the volume of exports and strengthening business ties between the countries. As Mikayil Jabbarov, Minister of Economy of Azerbaijan, stated, a Trade Representative Office of Azerbaijan is going to be established in Uzbekistan to enhance economic partnership between the countries. The parties also discussed last year’s agreement on strengthening bilateral relations, titled “Treaty on Allied Relations between the Republic of Azerbaijan and the Republic of Uzbekistan,” and the progress made in trade turnover between the two countries during the previous year, which reached over $200 million.
Source: AZERTAC
Politics and Security
Azerbaijan Warns Israel Against Targeting Azerbaijani-Populated Areas of Iran
According to Azerbaijani media outlets, Baku has once again communicated a message to Israel through multiple diplomatic channels, urging the utmost restraint in carrying out any military operations on Iranian territory—especially in areas with significant Azerbaijani populations. Reports state that Baku has especially become concerned about this matter following the reports of strikes targeting military sites in Ardabil. While Azerbaijan remains one of Israel’s key partners in the region, it shares a long border with Iran that hosts a significant ethnic Azerbaijani population, especially in northern Iran.
Source: Aze.media, Jerusalem Post
Pashinyan Visits Türkiye for Landmark Talks Following Aliyev’s Trip
Armenia’s Prime Minister Nikol Pashinyan visited Türkiye on June 20 for talks with President Recep Tayyip Erdoğan in a rare high-level meeting aimed at improving ties and reopening the long-sealed border. The visit follows Azerbaijan President Ilham Aliyev’s trip to Türkiye the previous day. Armenian officials said the agenda would include the Armenia-Azerbaijan peace process, regional stability, and coordination related to the Israel-Iran conflict, including potential evacuations. Yerevan views the normalization of relations with Ankara as key to unlocking new regional partnerships and reducing the risk of renewed hostilities.
Source: Reuters
Saida Mirziyoyeva Appointed as Uzbekistan’s Head of Presidential Administration
President of Uzbekistan Shavkat Mirziyoyev has signed a decree restructuring the Presidential Administration, establishing the new position of Head of the Presidential Administration. President’s daughter, Saida Mirziyoyeva, formerly Assistant to the President, has been appointed to the role.
Source: UZ Daily