Energy and Economy 

 

U.S. Officials Visit Azerbaijan, Discuss TRIPP Corridor 

On January 12, Deputy Minister of Foreign Affairs of Azerbaijan Elnur Mammadov received a delegation led by Carl Kress, Regional Director for the Middle East, North Africa, Europe, and Eurasia at the U.S. Trade and Development Agency (USTDA). The meeting focused on the current state of bilateral cooperation between the two countries in areas such as energy, trade, regional connectivity—including the the Trump Route for International Peace and Prosperity (TRIPP) —and economic investment. The sides also exchanged views on familiarizing representatives of the U.S. private sector with Azerbaijan’s relevant infrastructure and logistics capabilities, as well as prospects for expanding cooperation. 

Source: APA 

United Nations’ GDP Growth Forecast for South Caucasus Countries 

The United Nations has released a new two-year economic outlook for the South Caucasus, forecasting continued growth across Azerbaijan, Armenia, and Georgia in 2026 and 2027. According to the report, Georgia is expected to record the strongest performance, with GDP growth of 5.4% in 2026 and 5% in 2027, followed by Armenia at a steady 4.8% in both years, while Azerbaijan’s growth is projected at 2.7% in 2026 and 2.6% in 2027. The UN also anticipates moderate inflation in Armenia, declining from 3.1% in 2026 to 2.7% in 2027. 

Source: Vestnik Kavkaza 

Kazakhstan Records Decade-High Grain Export Volumes in 2025 

Kazakhstan’s state-owned railway company, Kazakhstan Temir Zholy (KTZh), reported a record year for grain transportation in 2025, exporting 11 million tons—the highest volume in a decade—and raising total rail grain shipments to 14.3 million tons, a 31% increase from 2024. Domestic shipments also grew significantly, while exports to Central Asia rose by 30%, led by strong increases to Uzbekistan, Tajikistan, and the Kyrgyz Republic. Exports to Azerbaijan tripled, shipments to Iran and Afghanistan surged, and deliveries through the Baltic and Black Sea routes expanded sharply, highlighting Kazakhstan’s growing role in regional and global grain supply chains. 

Source: The Astana Times  

Kazakhstan’s Future International Cargo Airport 

Plans have been set in Kazakhstan to build an international cargo and passenger airport within the Khorgos-Eastern Gate Special Economic Zone (Zhetysu region), near the Chinese border. Coordinated by Kazakhstan’s Ministry of Transport, the project will be developed by the Kazakh-German joint venture, Skyhansa LLP. The project will focus on transporting time-sensitive materials and other cargo that arrive via either road or rail. According to Dias Esdauletov, the Deputy Akim of the region, the air-rail-auto-air transport model will dramatically reduce door-to-door delivery times and costs. 

Source: Times of Central Asia 

Azerbaijan and Türkiye Sign Agreement on 33 bcm of Natural Gas Supply 

In a local TV interview, Türkiye’s Energy and Natural Resources Minister, Alparslan Bayraktar, announced that the country has signed an agreement with Azerbaijan to import 33 billion cubic meters (bcm) of natural gas from the Absheron field for a period of 15 years. Bayraktar said that the gas supplies will be carried out at a rate of 2.25 bcm per year, and that the agreement will come into force in 2029 and will last until the 2040s. The gas will be transported via the existing infrastructure – the Baku-Tbilisi-Erzurum pipeline.  

Source: APA, Upstream Online 

Financial Irregularities Found in Rogun Dam Project 

An independent audit uncovered a discrepancy of $540 million in authorized capital accounts between the Rogun dam’s management and official data from Tajikistan’s state registry on legal entities. The audit, which was conducted by Tajikistan’s branch of the consulting firm, Baker Tilly International, found that Rogun management did not offer complete information to determine the accuracy of its assets, which management claims amount to $5.3 billion. The report also cited that construction of the dam faced a net loss of roughly $30 million in 2024—$6 million less than in 2023. 

Sources: Asia-Plus, Eurasianet 

Uzbekistan Sets Natural Gas Production Goals for 2026 

Uzbekistan’s President Shavkat Mirziyoyev has instructed state energy company Uzbekneftegaz to increase daily natural gas production from 66 million to 70 million cubic meters and to reach a minimum output of 25.4 billion cubic meters in 2026. The directive was announced during Mirziyoyev’s review of the company’s development plans and underscores the government’s focus on boosting gas reserves through new investment blocks, accelerated field development, and improved operational efficiency at existing sites. 

Source: Trend News Agency 

Azerbaijan Sends Third Fuel Shipment to Armenia 

As a part of the second agreement to supply petroleum products to the Armenian market, Azerbaijan’s state energy company, SOCAR, dispatched the third shipment of fuel to Armenia via Georgia on January 11. The train, consisting of 18 tank cars carrying 980 tons of AI-92 gasoline, departed from Baku’s Bilajari station (Binagadi district of Baku). Previously, a larger shipment of 1,750 tons of AI-95 gasoline and 950 tons of diesel fuel was transported on 48 tank cars to Armenia. In January, a deal was concluded for the supply of 7,600 tons of fuel from Azerbaijan to Armenia. Thus, the two trains have shipped almost 50% of the planned volume. The landmark December delivery of petroleum products from Azerbaijan to Armenia marked the first shipment of such kind between the two countries in the post-Soviet era. 

Source: Vestnik Kavkaza 

Azerbaijan Opens the Caucasus’ Largest Wind Farm 

In Baku, Azerbaijani President Ilham Aliyev inaugurated the country’s newest 240-megawatt wind-power plant, consisting of 37 turbines located across the Absheron and Khizi districts. During the ceremony, President Aliyev highlighted Azerbaijan’s commitment to developing renewable energy sources like the wind farm, which is projected to prevent more than 400,000 tons of carbon dioxide emissions. The project was developed in partnership with Saudi Arabia’s ACWA Power and China’s PowerChina, symbolizing a milestone in Azerbaijan’s growing cooperation with both countries on green energy projects. 

Source: The Astana Times 

Politics and Security 

 

Trump Extends G20 2026 Summit Invites to Kazakhstan and Uzbekistan 

U.S. President Donald Trump stated that on December 23, 2025, he invited both Kazakhstan President Kassym-Jomart Tokayev and Uzbekistan President Shavkat Mirziyoyev to this year’s G20 summit. The summit will be held December 14-15 in Miami, Florida. Both Kazakhstan and Uzbekistan are non-members of the G20, though Kazakhstan had been invited by Russia and China in 2013 and 2016, respectively.  

Source: Reuters 

Central Asia Plus Japan Forum Holds Heads-of-State Summit 

The first ever Central Asia-Japan summit at the leader level was held in Tokyo on December 20, 2025. Japanese Prime Minister Sanae Takaichi hosted the presidents of all five Central Asian states, who agreed to the CA + JAD Tokyo Initiative—a move to coordinate the diversification and industrial modernization of Central Asia. As part of the broader Tokyo Declaration, the states launched new platforms under the Central Asia Plus Japan platform’s priorities of “Green and Resilience, Connectivity, and Human Resource Development.” Further areas of stated interest included critical minerals and healthcare. On the sidelines, Takaichi held bilateral meetings with each Central Asian president.  

Sources: Prime Minister’s Office of Japan, Ministry of Foreign Affairs of Japan 

Russian Police Raid Kills Uzbek Labor Migrant  

Russian security forces allegedly beat Central Asian migrants during a December raid on a café in Khabarovsk. According to social media reports, two Uzbek nationals went into comas as a result of the incident, and one later died. In response, Uzbekistan’s Ministry of Foreign Affairs sent a diplomatic note to Russia requesting an impartial and lawful investigation. While Uzbekistan has taken steps to repatriate the victim’s body, the cause of death and reports that a second Uzbek national remains in a coma have yet to be officially confirmed. Uzbekistan parliament member Alisher Qodirov responded to the incident by warning Uzbeks living in Russia that conditions are likely to worsen and urging them to return home for the sake of their families. 

Source: The Times of Central Asia