The EU Prioritizes Trans-Caspian Corridor in €12 Billion Central Asia Investment Plan

Recently, the EU announced plans to allocate a significant portion of its €12 billion "Global Gateway" investment plan for Central Asia to the development of the Trans-Caspian Corridor (also known as the "Middle Corridor"), a core passage connecting Europe and Central Asia. This move marks a new phase in the EU's strategic focus and resource investment in Central Asia, reflecting the growing strategic value of corridors in the Eurasian hinterland against the backdrop of global supply chain restructuring, energy transition, and intensified geopolitical competition.

Strategic Background and High-Level Interaction

The announcement of this investment plan follows a visit to Uzbekistan by European Commissioners Joseph Sikeira (Economic Affairs) and Marta Kos (Energy Affairs). Last week, the two commissioners met with local officials in Tashkent to elaborate on the framework and priority areas of the "Global Gateway" Central Asia investment plan. This high-level interaction is symbolic in itself, demonstrating that the EU considers Central Asia an important partner in its external relations and is committed to deepening pragmatic cooperation through institutionalized dialogue mechanisms.

Since its launch in 2021, the EU's "Global Gateway" strategy has been seen as a comprehensive solution to align with global infrastructure initiatives, aiming to promote global connectivity in a sustainable and high-standard manner. The Asia-Pacific investment plan is the concrete implementation of the "Global Gateway" at the regional level, aiming to build closer and more diversified Eurasian connections in the fields of transport, energy, digitalization, and resources.

Investment Framework and Key Areas

According to EU officials, the €12 billion will be primarily allocated to four priority areas: transport infrastructure, digital connectivity, critical mineral resource development, and water-energy-climate initiatives. This allocation reflects the EU's comprehensive consideration of balancing short-term logistical efficiency with long-term strategic security.

Transportation: The Core Role of the Trans-Caspian Corridor

Among the four areas, transport infrastructure will receive the largest share of funding, approaching €10 billion. The investment focus is clearly on vigorously expanding the "Middle Corridor," the trade and transport route across the Caspian Sea connecting Central Asia and Europe. This route currently enables cargo transport between Europe and Central Asia in approximately 15 days, offering advantages in time efficiency and mitigation of geopolitical risks compared to the traditional northern route (via Russia) or southern route (via the Indian Ocean and the Suez Canal).

The expansion of the Trans-Caspian Corridor involves upgrading the multimodal transport system, including port modernization (such as Baku Port in Azerbaijan, Poti/Batumi Port in Georgia, and Aktau Port in Kazakhstan), upgrading and expanding the railway network, and digitizing and facilitating customs clearance. EU funding is expected to focus on helping participating countries address infrastructure shortcomings, improve the handling capacity of logistics nodes, and promote the alignment of relevant standards with EU standards. The development of this corridor was a core topic at the Tashkent talks, with both sides engaging in in-depth discussions on specific project identification, financing models, and technical standard coordination.

Strategic Mineral Resources: Securing Supply Chains and Deepening Cooperation

In addition to transportation, the EU has shown increasing interest in Central Asia's strategic mineral resources. Central Asia is rich in rare metals, rare earth elements, and other key mineral resources, which are crucial for the EU's green and digital transformation and for enhancing economic resilience. Against the backdrop of continued global demand growth and security concerns arising from supply chain concentration, the EU is seeking to establish a long-term, stable resource partnership with Central Asia based on principles of sustainability and transparency.

In response to a question about Europe's interest in the region's mineral resources, Commissioner Marta Cos stated, "Central Asia plays a key role in strengthening Europe's energy independence." She further elaborated on the broad scope of cooperation: "Our connectivity plan is not limited to trade, transport, energy, and digitalization. It is also about new partnerships built on trust. This cannot be achieved overnight, therefore openness and transparency are essential."

Commissioner Joseph Siqueira emphasized the EU's cooperation philosophy, stressing that the goal is to promote fair and mutually beneficial cooperation, rather than predatory resource extraction. He stated, “If we only sell raw materials, we miss the opportunity to create added value. We believe that helping a country means supporting local processing, value creation, and fair market access, not just connecting mines and ports. Therefore, our investments in strategic raw materials adhere to strict European environmental standards and focus on developing regional processing capabilities.”

Sikeira added a specific example: “Germany has agreed in principle to open a financing channel for the Almalyk project, which is expected to become a major strategic raw materials hub in the future.” Almalyk, located in Uzbekistan, has large deposits of copper, gold, and molybdenum. The EU’s move aims to enhance the resource value chain by supporting localized processing, enabling partner countries to gain greater economic benefits.

Digital Connectivity and Green Transformation

According to the announced allocation plan, €55 million has been designated for digital connectivity and high-speed internet construction. This investment aims to bridge the digital divide in Central Asia, promote the development of e-commerce, digital government, and remote services, and support economic diversification and governance modernization.

Meanwhile, another €800 million will be used to support green projects in the water, climate, and energy sectors. Central Asia faces a fragile ecosystem and severe challenges in water resource management and energy structure transformation. The EU's "Water-Energy-Climate Initiative" is expected to invest in renewable energy development (such as wind and solar power), efficient water resource utilization, ecological restoration, and climate-resilient infrastructure, responding to the region's sustainable development needs and aligning with the EU's global climate agenda.

Strategic Implications in a Global Perspective

The EU's strategic investment in the Trans-Caspian Corridor and Central Asian resources must be understood within a broader global geoeconomic context.

First, supply chain diversification and resilience building. Following the Ukraine crisis, the traditional Eurasian land route via Russia has become more uncertain, highlighting the strategic value of the Trans-Caspian Corridor as an alternative route. The EU's promotion of this corridor aims to reduce dependence on a single transit country and enhance the resilience of trade links with Central Asia and even East Asia. Simultaneously, cooperation with China and Asia in key mineral resources is an important step for the EU to reduce its reliance on a few supply sources and ensure the security of its green and technological industries.

Second, exporting rules and standards. The EU repeatedly emphasizes that its investments adhere to the "highest environmental, social, and governance standards," and focuses on transparency, good governance, and sustainable development. This is not only a condition for project implementation but also a way for the EU to promote its norms and values. By linking investment with standards, the EU is attempting to shape a connectivity model in the Eurasian space that aligns with its principles.

Third, a network of multilateral cooperation and partnerships. The EU is not acting alone. Its "Global Gateway" strategy emphasizes collaboration with member states, international financial institutions (such as the European Investment Bank and the European Bank for Reconstruction and Development), and the private sector. Germany's financing support for the Almalek project is one example. Furthermore, the EU needs to coordinate positions and align plans with Central Asian countries and other regional partners (such as Azerbaijan, Georgia, and Turkey), which tests its multilateral diplomacy and project integration capabilities.

Fourth, geopolitical and soft power competition. Central Asia has historically been a region where the interests of major powers converge. Increased EU investment objectively expands the diplomatic and economic options for countries in the region, helping them to pursue a "multi-vector balanced" diplomacy. The EU's discourse of "fair partnerships" and "value creation," contrasting with traditional resource extraction models, aims to gain the political trust and social recognition of regional countries and enhance its soft power influence.

Challenges and Prospects

Despite its ambitious blueprint, the implementation of the EU's "Global Gateway" Central Asia plan faces multiple challenges:

- Financing and Implementation Efficiency: The primary challenge is how to quickly translate committed funds into concrete projects and attract sufficient private investment. The business environment, rule of law, and corruption issues in some Central Asian countries may affect project progress and costs.

- Geopolitical Complexity: The Trans-Caspian Corridor involves multiple countries, requiring close coordination in regulations, standards, and operations. Historical territorial disputes and the delicate nature of inter-state relations (such as water resource disputes) could be potential obstacles.

- Infrastructure Bottlenecks: Port capacity on both sides of the Caspian Sea, differences in railway gauge, and cross-border customs efficiency are all existing bottlenecks requiring sustained large-scale investment and technological support for fundamental improvement.

- Major Power Competition and Cooperation: Russia, China, Turkey, and others all have significant interests and existing cooperation frameworks in the region. The EU's involvement may trigger new dynamics of competition and cooperation, requiring careful handling of cooperative relationships to avoid a zero-sum game.

Conclusion

The EU's €12 billion investment in Central Asia through its "Global Gateway" strategy, focusing on the Trans-Caspian Corridor and strategic resource cooperation, marks a substantial step in its strategic commitment to Eurasian connectivity. This move stems from both the inherent need to ensure economic security, supply chain resilience, and energy transition, and reflects a deeper consideration of shaping a favorable external environment amidst global order changes.

The infrastructure development of transport corridors and the integration of resource cooperation into the industrial chain complement each other, aiming to build closer and more sustainable Eurasian economic ties. The principles emphasized by EU officials—"new partnerships based on trust," "fairness and mutual benefit," and "local processing and value creation"—attempt to define a cooperation model distinct from traditional resource exploitation or geopolitical competition. However, realizing this vision depends on complex multilateral coordination, the effective use of substantial funds, and a keen adaptation to regional dynamics.

From a global perspective, how this EU move will affect the logistics landscape, resource flows, and political and economic interactions across Eurasia depends not only on the EU's own implementation capabilities but also on the autonomous choices of Central Asian countries, the reactions of other major actors, and the global macroeconomic environment. Whether the Trans-Caspian Corridor can become a prosperous, sustainable, and win-win "middle corridor" as the EU hopes remains to be seen.