Kyrgyzstan, Uzbekistan, and Russia have agreed to create a transport corridor through the Caspian Sea bypassing Kazakhstan. The agreement on the development of the corridor was signed following a transport forum of the Shanghai Cooperation Organization (SCO) member countries held on November 1 in Tashkent, "Vecherniy Bishkek" reports.
The countries signed a memorandum on the formation and development of the international multimodal transport corridor Russia - Caspian Sea - Turkmenistan - Uzbekistan - Kyrgyzstan. The document was signed by the heads of transport ministries. It is expected that the new route will allow Kyrgyzstan to reach Europe and Russia through Uzbekistan, Turkmenistan, and the Caspian Sea.
The need for an alternative cargo transit route bypassing Kazakhstan was driven by systematic violations of the rules of free movement of goods within the Eurasian Economic Union (EEU) by Kazakhstan. The main reason for the decision to create a new cargo route from Kyrgyzstan was Kazakhstan's systematic violations of the rules of free movement of goods within the Eurasian Economic Union (EEU). In recent years, this problem has reached absurd proportions, with long queues of trucks regularly forming on the Kyrgyzstan-Kazakhstan border. In 2022, this became a subject of criticism not only from Kyrgyzstan but was also raised on the platform of the Eurasian Economic Commission.
Endless negotiations and attempts to reach an agreement with the Kazakh side yielded no results. In response to all complaints from Kyrgyzstan and the EEU, Kazakh authorities insisted that there were no problems at the border, and no additional restrictions were imposed.
"For Kyrgyzstan the road is vital for the export of goods. Kazakhstan is our main strategic economic partner. In other words, our goods go through Kazakhstan to Russia. But over the last five or six years, our carriers have been experiencing quite serious systemic problems with transporting goods and queues at checkpoints on the Kyrgyz-Kazakh border. This has become a familiar and commonplace phenomenon. This situation has a negative impact not only on expanding trade opportunities between Kyrgyzstan and Russia but also reduces the desire of our producers to increase the production of goods because producing is not enough; you also have to sell. Although last year, trade turnover grew by 30% compared to 2021 and exceeded somewhere around $3.5 billion," says Bishkek-based expert Igor Shestakov.
To increase trade turnover, Kyrgyzstan needs new transport arteries. Kyrgyzstan's desire to increase exports aligns with Russian interests, as Moscow has found itself under unprecedented sanctions, and its previous routes to the far abroad are essentially blocked.
As a result of joint efforts to find solutions, a new route was developed, allowing Kyrgyzstan to bypass the problematic transit section in Kazakhstan. Astrakhan shipping companies are ready to participate in the creation of a shipping line in the Caspian Sea between Astrakhan and the Turkmenbashi port in Turkmenistan.
It is expected that the new shipping line will become part of the multimodal corridor jointly developed by Kyrgyzstan, Uzbekistan, and Russia. Thus, goods from Kyrgyzstan via the new route will first be transported to Uzbekistan and Turkmenistan, and from there, they will be shipped across the Caspian Sea from the Turkmenbashi port to the Russian port of Astrakhan.
On the new route, Kyrgyzstan is ready to send 40 trucks with goods daily, with the prospect of reaching 150–200 vehicles.
In 2022, trade between Kyrgyzstan and Russia saw an unprecedented surge, exceeding $3 billion. Importantly, the growth showed in the export of goods from Kyrgyzstan, increasing 2.5 times to $1 billion. In the first nine months of 2023, trade turnover is estimated at $1,979 million, with imports at $1.4 billion and exports at $553.7 million.
Cooperation with Russia opens up wide opportunities for Kyrgyzstan to fully engage in trade with Asian countries, using various transport and logistics corridors. This gives a new impetus not only to bilateral relations but also to integration processes in the Eurasian Economic Union, as it removes all artificial barriers to freight and trade.
The new trade route "Russia - Caspian Sea - Turkmenistan - Uzbekistan - Kyrgyzstan" is advantageous for Kyrgyz exporters as an alternative to transit through Kazakhstan. In the future, it could be extended along the already constructed railway from Uzbekistan through Kyrgyzstan to China, potentially becoming the main competitor to the route through Kazakhstan's railways.
Thanks to transit exports, Kyrgyzstan achieved a 7% GDP growth in 2022, surpassing other countries in the EEU in this indicator.
CentralasianLIGHT.org
November 16, 2023