Energy and Economy

 

Hungary’s MVM Acquires 5% Stake in $2.9 Billion Shah Deniz Expansion Project

Hungary’s state-owned energy group MVM has acquired a 5% stake in the $2.9 billion Shah Deniz Compression (SDC) project in Azerbaijan, joining a BP-led consortium working to extend the field’s output. Announced during Baku Energy Week, the SDC phase is expected to add 50 bcm of gas and 25 million barrels of condensate to export volumes. Other partners include Lukoil, TPAO, SOCAR’s SGC, Canada’s NICO, and BP, which holds about a 30% operating share. MVM CEEnergy CEO Gabor Orban confirmed plans for a longer-term supply partnership with Azerbaijan, while calling for infrastructure upgrades to the SGC, including an expansion of the Trans-Adriatic Pipeline and regional interconnectors.

Source: bne Intellinews

Kazakhstan’s Sarytogan Graphite Project Selected in EU’s Global Raw Materials Initiative

On June 4, the European Commission selected Kazakhstan’s Sarytogan graphite site as one of 13 international strategic raw materials projects under its Critical Raw Materials Act. Located in the Karaganda region, the Sarytogan deposit is considered one of the world’s largest untapped graphite resources and is being developed by Sarytogan Graphite Limited, an Australia-listed company. The project was included in a broader €5.5 billion investment push aimed at reducing the EU’s dependence on some suppliers, especially materials vital to electric vehicle batteries and clean energy technologies. According to Brussels, the selected projects will receive targeted support to improve financing access, to build financial partnerships, and to ensure that environmental and social standards are upheld.

Source: bne Intellinews

ExxonMobil, bp Sign Agreements in Azerbaijan

At the Baku Energy Week conference held in Azerbaijan, ExxonMobil and Azerbaijan’s state energy company SOCAR signed a memorandum of understanding (MoU) for exploration, development, and production of unconventional onshore oil resources in Azerbaijan. Exxon already holds stakes in Azerbaijan’s largest oil development project, Azeri-Chirag-Gunashli, and the Baku-Tbilisi-Ceyhan pipeline, via which Caspian crude oil is transported to Türkiye and Europe. Additionally, on June 3, bp announced that it has completed its acquisition of participating interests in two offshore exploration and development blocks in the Azerbaijan sector of the Caspian Sea – the Karabakh and the Ashrafi-Dan Ulduzu-Aypara fields. bp, along with its partners, also approved the next phase of development of the Shah Deniz gas field, with expected production of an additional gross 50 billion cubic meters of gas and 25 million barrels of condensate. 

Source: Reuters, bp, bp 

Uzbekistan Opens New Road Corridor to Mongolia via Kyrgyzstan and China

On June 4, Uzbekistan’s Ministry of Transport and Chamber of Commerce and Industry declared the launch of a new freight corridor to Mongolia via Kyrgyzstan and China, aiming to boost trade volumes, reduce delivery times, and diversify export markets. The pilot shipment is part of broader efforts to enhance the competitiveness of Uzbek freight carriers and improve regional connectivity. The move follows a February agreement with Mongolia to double the annual quota of transport permits and introduce an E-Permit system.

Source: Kun

Tajikistan and Kyrgyzstan Sign Customs Data Exchange Protocol to Boost Regional Trade Cooperation

Tajikistan and Kyrgyzstan have formalized a technical protocol to enable the exchange of preliminary customs information on goods and vehicles crossing their shared border. The agreement was signed during a bilateral meeting in Kyrgyzstan’s Issyk-Kul region on the sidelines of the 80^th session of the Commonwealth of Independent States’ Council of Heads of Customs Services. Led by Tajikistan’s Customs Chairman Almaz Saliyev, the protocol outlines a legal and operational framework to facilitate real-time customs data sharing. Officials from both countries emphasized that the agreement is expected to deepen bilateral economic cooperation and support broader regional integration efforts.

Source: Trend News Agency

Tbilisi Dry Port Commences Operations

On June 3, the official opening ceremony of the Tbilisi Dry Port, the first modern railway container and cargo terminal in Georgia, took place. According to Prime Minister Irakli Kobakhidze, the construction of port will be completed in three phases, with the initial capacity being 100,000 containers annually, and then increasing up to 200,000 containers in the later stages. Investors, including AD Ports Group from the UAE and the Norwegian company, Wilhelmsen Port Services, as well as the Georgian firm, Inveco, participated in the opening ceremony. The Dry Port is strategically located with direct access to international highways, national railways, and to the  Armenian and Azerbaijani borders, which will allow it to be a part of the Middle Corridor.

Source: Business Media Georgia, 1TV Georgia

Shrinking Caspian Sea Level Fears 

Environmentalists raised concern that the Caspian Sea is shrinking and could create environmental and economic risks for countries around the body of water. A primary driver of Caspian Sea level decline is lower precipitation in the Volga River Basin due to a shift in path of Atlantic cyclones that once brought regular rainfall. If current trends are not reversed, Kazakhstan could face up to 5 million people requiring resettlement by 2040. 

Source: Times of Central Asia

Politics and Security

 

Modi and Other Indian Officials Meet with C5 Representatives

On June 6 in New Delhi, Indian officials hosted the 4^th India – Central Asia dialogue, featuring the foreign affairs ministers of Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan. The meeting, officially overseen by the Indian External Affairs Minister, was also briefly attended by Indian Prime Minister Narendra Modi. The read-out produced by the event referenced a number of Central Asia – India initiatives, such as business-to-business formats, connectivity initiatives, and joint trade projects, such as the build out of infrastructure at the port of Kandahar. The sides additionally agreed to form a joint group to explore ways to better integrate banking and financial institutions. 

Source: Ministry of External Affairs of the Government of India

Foreign Minister of Kazakhstan Visits Iran

Kazakhstan’s Deputy Prime Minister and Foreign Minister Murat Nurtleu visited Iran on June 7 to hold talks with high-ranking officials, including Iranian President Masoud Pezeshkian and Iranian Foreign Minister Seyed Abbas Araghchi. Discussions with Pezeshkian and Araghchi focused on an expansion of Kazakh-Iranian trade and the build out of regional North-South transit more broadly, and the growth in bi-lateral trade in recent years between the two parties.

Source: Astana Times

UN Backs Georgia’s Right of Return Resolution with Record Support

On June 3, the UN General Assembly adopted Georgia’s resolution affirming the right of return for the displaced persons from Abkhazia and Tskhinvali, with 107 votes in favor, 9 against, and 49 abstentions. Syria abstained for the first time following the fall of the Assad regime, while Equatorial Guinea and Sudan joined the “no” camp. Support rose compared to 2024, with Paraguay, South Korea, Seychelles, and Sierra Leone newly voting in favor. China once again abstained despite its strategic partnership with Georgia. First introduced in 2008, the resolution condemns forced demographic change and mandates annual UN reporting on displaced persons’ conditions and rights.

Source: Civil.ge