May 21, Washington, DC - Rising international interest in the Caspian region—evident through heightened diplomatic activity and growing global focus on the area's vast reserves of critical minerals—was the central theme of a webinar held today by the Caspian Policy Center (CPC).  The online discussion unpacked recent developments in Central Asia and the Caucasus, discussing what concrete steps key outside actors can take to help deepen further engagement with the region.  Panelists included Ambassador Alim Bayel, Ambassador of Azerbaijan to Kazakhstan; Dr. Fariz Ismailzade, Member of Parliament of Azerbaijan and Vice Rector, Azerbaijan Diplomatic Academy (ADA); Ambassador Matthew Klimow, CPC Board Member and Former U.S. Ambassador to Turkmenistan; Ambassador Javlon Vakhabov, Managing Director of the International Institute for Central Asia in Uzbekistan; James Sharp, CPC Board Member and Former United Kingdom (UK) Ambassador to Azerbaijan and Kazakhstan; and Dr. Eric Rudenshiold, Senior Fellow at CPC moderated.

“We have seen a flurry of diplomatic engagement with the region over the last few months, which shows the Caspian region’s increasing importance globally,” said CPC President Efgan Nifti, especially highlighting the European Union (EU)-Central Asia Summit that took place in Samarkand, Uzbekistan, in April. Commenting on the U.S. engagement in the region, Nifti said, “We’ve seen EU, the Gulf countries, and other global actors more engaged in the region, but I still believe that as a global power, U.S. engagements in the region will amplify and we will hear more conversations on that matter.” 

The discussion, moderated by CPC Senior Fellow Dr. Eric Rudenshiold, focused on examining prospects for greater regional cooperation, and assessing the broader implications of these evolving dynamics for the region’s future. “One of the key recent developments in the region has been empowerment of Türkiye,” said Dr. Fariz Ismailzade. He went on to mention the events in Syria as one of the catalysts for Türkiye’s growing role, also highlighting that, “because of the developments in Syria, we see more collaborative approaches and fewer threats from Iran towards Azerbaijan.” Ismailzade also spoke on the increased engagement of the EU in not only Central Asia, but also now in the South Caucasus. “I have also noticed a lot of dialogue between the EU and regional countries, even with Azerbaijan, which has had a tough few years in the past. But meeting between President Aliyev and Ursula von der Leyen hopefully starts a new page in bilateral relationships,” he added.

“We are gathered here at the moment of profound change -  the COP29 summit revealed the early concept of new competition for the minerals that will drive the green economy,” stressed Ambassador Javlon Vakhabov, focusing his remarks on the new global power competition for access to critical minerals. Vakhabov highlighted that China today controls 60% of global critical mineral production and 85% of processing, and that Central Asia is  at the center of this new geopolitical landscape. “Chinese investment grew in the region from $40 billion in 2020 to over $70 billion in 2022 and China has become the primary destination for the most of the region’s critical mineral exports,” he emphasized. Vakhabov specifically underlined three ways in which the “scramble for critical minerals” will shape the region: economic transformation, governance and reform pressures, and strategic realignment, especially from the U.S., the EU, and China. Speaking on American interests in the region, Vakhabov added, “U.S. universities and companies could contribute training, expertise and innovation; financial tools such as risk guarantees, blended finance and public private partnerships will be needed to crowd in Western capital.”

Ambassador of Kazakhstan to Azerbaijan Alim Bayel spoke on the unprecedented level of intraregional cooperation. Speaking on the success of the C5+1 format, Ambassador Bayel also praised Azerbaijan’s participation in the Central Asia Heads of State summits in the last two years. “We actually view Azerbaijan, and whole of the South Caucasus for that matter, as a natural extension of Central Asia. I think that this C5+1 format can be a model to be followed by the other South Caucasus countries,” he emphasized. Speaking on the Middle Corridor, Bayel stated that Kazakhstan and Azerbaijan play a key role in shaping and advancing Middle Corridor. “The combined cargo flow last year hit somewhere near 4.5 million tons - we continue to modernize our railroad roads, to heavily invest in our seaports, to harmonize our customs procedures and to eliminate those bottlenecks you mentioned,” Bayel added. He also mentioned that in the first quarter of 2025, Kazakhstan became the largest exporter of wheat to Azerbaijan, while simultaneously continuing to utilize the Middle Corridor for its oil and uranium exports.

CPC Board Member and former Ambassador of the United Kingdom to Azerbaijan and Kazakhstan James Sharp remarked on the global geopolitical competition and the increasing role of smaller states. “Smaller countries now have more choices, and don’t have to align in just one particular relationship,” Sharp said. He also touched on the EU’s recently heightened approach to the region, highlighting the Global Gateway Initiative and how it "recognized the need for connectivity, as von der Leyen made a brief reference to the South Caucasus being the central component of the Middle Corridor.” Commenting on the future trajectory of the West towards the broader region, Sharp said that, “The EU and the West needs a more coherent, more joined up approach, looking at the greater Caspian region and not separating the South Caucasus and Central Asia.”

The webinar was also the first public opportunity to introduce CPC’s newest board member, former U.S. Ambassador to Turkmenistan Matthew Klimow. Klimow’s remarks focused on U.S. strategic priorities and direction in the region, especially with the new U.S. administration in Washington. Ambassador Klimow stressed that the U.S. maintains its strategic interests in the reason, which has historically focused on “sovereignty, independence, and territorial integrity, and that a politically cohesive Central Asia with five countries cooperating in security matters, infrastructure, trade, and commerce that allow them to withstand pressures from outside – political pressure from Moscow or economic pressure from China.” He also added that one of the focus areas of the current administration appear to be “transactional diplomacy.” On this matter, Klimow said, “Of course, commerce and trade dealmaking are the defining hallmarks of the Silk Road in Central Asia and the Caucasus, so that transactional approach may work well for the U.S. as this administration gains momentum new for the 10-year anniversary of the C5+1 format.”