In the Khodzha-Obigarm mountain pasture in Tajikistan, small, pristine hills reflect the bright sunlight. Spread out on a tablecloth, they await the next customer. Visitors come to stock up on kurut, a sun-dried cheese speciality that can be stored for long periods. This tasty snack is eaten throughout Central Asia and even gives its name to one of Tajikistan’s national dishes, kurutob.

Credits : Pierre-Armand Dussex (Switzerland)

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Leaning over a pile of embroidered fabrics called suzanis, a man wearing an atlas-patterned waistcoat tidies up his shop in the city of Bukhara, Uzbekistan. Once an important stop on the Silk Road, Bukhara was one of Central Asia’s major trading centres. At the crossroads of the main thoroughfares of the old city were covered merchant passages called tâq, three of which remain today: Tâq-e Zargarân (the jewellers’ dome), Tâq-e Telpaq-Forushân (the hatmakers’ dome), and Tâq-e Sarrafân (the money changers’ dome). These merchant domes, built in the second half of the 16th century under the Shaybanid dynasty, have left a lasting mark on the architecture of the old city. Today, they are a delight for tourists, who buy souvenirs of varying degrees of authenticity there.

Credits : Etienne de Vaumas (France)

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In winter, the sheep traded on the market are protected from the cold temperatures of Karakol thanks to their wool.

Credit: Davide Pilloni (@flip_khan, Italy)

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In Tajikistan, a country where 93% of the territory is mountainous, journeys between cities are long and winding. Transport lorries, private cars and shared taxis cross paths on the winding roads.

Credits : Pierre-Armand Dussex (Switzerland, https://nomadsland.travel/fr/before-you-go/blog/mon-beau-jailoo)

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A woman walks through the bustle of the streets of the Chorsu Bazaar in Tashkent.

Credit: Daria Novikova (Uzbekistan, @dasha.novasha)

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Dr Jade McGlynn has published an article for The Diplomat discussing the modernisation of Britain’s Central Asian Trade Strategy, based on her report for the Henry Jackson Society, entitled ‘A Steppe Change: Should Britain Be Bolder In Central Asia?’. In it, she states the UK “needs to think more ambitiously and coherently about its business aims with Central Asia”. In developing relations with the Central Asian states, the UK could balance trade with human rights and developmental assistance. So far, the UK has failed to develop such a strategy, and efforts remain focused on trading opportunities. McGlynn wants the UK to take head of the political realities of these states and ensure it champions and actively encourages democracy and greater human rights while simultaneously organising and developing trade agreements. Novastan spoke to Dr McGlynn to find out more about her strategy. An example of where the UK has failed to do as much is their increasing arms deals with Turkmenistan, considered by human rights groups as one of the world’s most repressive and authoritarian regimes. In comparison, the UK’s assistance to Tajikistan and Kyrgyzstan has benefitted both nations and given the UK considerable soft power through showing commitment to the region beyond trade. The emerging signs of democratisation in Uzbekistan and Kazakhstan, Central Asia’s two largest economies and nations, show the region to be making a gradual change from what has long been considered an authoritarian area of the world. The landslide election of Sadyr Japarov in Kyrgyzstan should be cautiously championed for implementing democracy. By providing vocal support for Kyrgyzstan, the UK reminds the other nations that its trade, investment and support are connection to Kyrgyzstan’s continued democratic style of governance. This in turn could increase the likelihood for democratisation in the neighbouring states. The UK should take inspiration from the Obama administration’s C5+1 initiative and build on its positive reputation gained from development work in the region. This would then allow the UK to maintain channels with Turkmenistan and Tajikistan and shows they are open to trade should they ever move towards democratisation. The UK has not paid enough attention to Central Asia. When it has, only specific countries or aspects, for example trade with Kazakhstan, have been made the point of focus. A region-focused approach instead would benefit both Britain and countries where regional cooperation has not always been strong. Human rights must remain a priority As much as increased trade negotiations with these countries should be encouraged, she maintains that the UK cannot sign deals at the expense of human rights and jeopardization of a free and fair society. The UK’s current arms deals with Turkmenistan are a shocking example of sacrificing ethics in order to bolster trade. The lack of pressure on the UK to halter these deals is due to a lack of knowledge and media coverage of the area. Too often the mainstream, generalised media focuses on the bizarre rules put in place by President Gurbanguly Berdimuhamedov, shining the country in a comedic, ridiculous light. The reality of the brutal human rights abuses and widespread poverty despite the wealth of natural resources in the country is forgotten. Larger organisations rather than just specialised areas should give the country more attention in order to increase knowledge of Turkmenistan, something which would elevate pressure to stop these morally and ethically entirely unacceptable arms deals. These deals undermine the UK’s pronounced championship of human rights and should be stopped. Elsewhere, little has been done to improve the state of human rights for the citizens of Central Asia: despite claims by the governments of Kazakhstan and Uzbekistan as to the development of human rights, little evidence of this has yet been shown. Recent human rights abuses include censorship of journalists and oppression of the LGBTQ+ community. While democratic, the election of Sadyr Japarov in Kyrgyzstan and imprisonment of the most outspoken critic and presidential hopeful, Omurbek Tekebayev, puts the country as risk of returning to the populist authoritarianism overturned in 2010. It would be hypocritical of the UK to adopt a trade policy with such countries after public anti-authoritarian efforts in China and Russia and could demoralise activists in these countries who need the UK’s support. Implementing a human rights checklist backed up by independent NGOs from the region in order to assess milestones in terms of achieving greater democracy and freedom could encourage increased democratisation. This would enable the UK to measure economic engagement against human rights and democratisation milestones. Goals could be set for countries like Uzbekistan that claim to be installing more democratic milestones such as free access for election observers, the establishment of NGOs and funds to support independent media. Once reached, the country could continue to the next stage in economic relations. Putting a permanent representative in Bishkek, the capital of Kyrgyzstan, would symbolise the UK’s commitment to supporting the democratic potential of the region. Kyrgyzstan is currently the most democratic country and would demonstrate the UK’s hope that they should stay on this path. It would also reward and prioritise the most democratic country and encourage Sadyr Japarov, President of Kyrgyzstan, to continue this work. The UK alone would have enough power to rely on their influence to speed up democratisation in Central Asia. However, the European interest, particularly from countries who keep human rights as a core component of their foreign policy, namely Scandinavian countries, and desires in Washington for the Biden administration to continue with Obama’s policy, allow for a combined effort which ups the pressure for Central Asian nations. Background of Central Asia The collapse of the Soviet Union in 1991 and subsequent independence for Central Asian countries led to a long-term struggle for democracy. Many of these countries contain deeply embedded ethnic tensions dating back to Stalin’s policies, for example in the Osh region of Kyrgyzstan. These countries have had to deal with civil wars, widespread humans rights abuses and as a result their economies have struggled to achieve their full potential. Kyrgyzstan and Tajikistan still rely heavily on remittances. However, Kazakhstan, Turkmenistan and Uzbekistan have seen a near doubling in per capita income in purchasing power parity since independence and political conflicts have not deterred interest from abroad in trade and investment. These countries are rich in natural resources, which constitute 65 per cent of exports in Kyrgyzstan, Tajikistan and Uzbekistan, as well as over 90 per cent in Kazakhstan and Turkmenistan. The UK has now left the EU and thus has the freedom to pursue its own trade deal. Economic, security and geopolitical considerations make Central Asia a good trade partner, including the appetite for British goods in countries such as Kazakhstan and the pre-established trade and diplomatic presence of the UK in each of the nations. The Department of International Trade has put in effort to build on existing standing especially in Kazakhstan, where UK cultural, service and educational exports are popular. For example, 4,000 Kazakh students are currently studying in the UK and more visas are issues to Kazakh students than Australians. With two established UK trade offices in Kazakhstan, a comparatively large economy and a consistently open approach to free trade, McGlynn deems the country a promising contender for UK export growth. In comparison, Uzbekistan also has potential since the United Kingdom-Uzbekistan Partnership and Cooperation Agreement (PCA) signed in 2019 enabled the two to grant each other the most favoured nation (MFN) treatment. This is important because Uzbekistan does not belong in the World Trade Organisation. Kyrgyzstan and Tajikistan have less ample economic opportunities due to widespread poverty, a relatively low GDP of $8.09 and $7.52 billion respectively, although it is still important to include them. The UK accounts for almost half of all Kyrgyzstan’s export, mainly gold, which provides leverage to promote democratisation. Trade between the UK and Turkmenistan has flourished under the auspices of the Turkmen-British Trade and Economic Council, even if it allows for a growth in controversial arms deals. The UK is not alone in the rush to take advantage of such lucrative deals: Italy has established a business forum with Central Asian countries, signing arms deals with Turkmenistan. The USA has just launched the Central Asia Investment Partnership and the Scandinavian nations have recently held the Kazakhstan Northern European Investment Forum. McGlynn advises the UK to hurry in these countries’ footsteps but paying heed not to lose sight of their moral and democratic values. Impact on other countries

Economic investment can also improve security interests, namely in helping to stabilise the countries. With a combined population of 75million, the average age of a Central Asian citizen is 27.6, highlighting the need for economic opportunities for young people. Without such opportunities, the likelihood for young people to become radicalised or turn to extremist groups is far greater. The UK’s trade influence can be used as a positive counter example to major geopolitical players in that region- Russia and China. The UK has condemned China’s campaign against the Uyghur people in Xinjiang, a campaign which has also targeted ethnic Kazakhs and Kyrgyz, the Kazakhs being the second largest Turkic-speaking indigenous community in the region after the Uyghurs. It also contains many ethnic Kyrgyz. The UK’s economic approach must take into account these people, support them and help refugees.

 Lily Shanagher Edited by Tommy Hodgson

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The European Union has officially added Uzbekistan to the list of countries benefiting from the GSP +. 6,200 Uzbek products will be able to access the European market without customs duties.

This article was originally published on Novastan’s French website on 9 April 2021.

The European Commission officially added Uzbekistan to the list of countries benefiting from its Generalised System of Advanced Preferences (GSP +) this Friday, 9 April. Tashkent will be able to export 6,200 products to the European Union (EU) market without any import duties from 10 April.

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Previously, Uzbekistan was on the GSP list, which allows exports of 3,000 goods without tariffs and 3,200 goods with reduced tariffs. Inclusion on the GSP + list therefore means a doubling in the number of products without tariffs.

This statute received the green light from the European Commission on 30 November. The decision was then approved by the European Parliament and the European Council. Currently, only 9 countries benefit from it in the world, including Kyrgyzstan since 2016.

“An important step”

In a statement, the Uzbekistan’s Ministry of Investments and Foreign Trade welcomed the country’s new status: “This is an important step in the relations between the EU and Uzbekistan, which will further deepen dialogue as well as trade.” The ministry organised an official event at a hotel in Tashkent to mark the occasion.

“I am convinced that this status will give a powerful impetus to investors and representatives of the private sector, mainly from EU countries, in the implementation of promising projects in Uzbekistan,” the deputy prime minister and minister of investments, Sardor Umurzakov, said. The event was attended by the newly appointed EU Ambassador to Uzbekistan Charlotte Adriaen.

In the background, a new agreement

According to a European source, SPG + is just one signal among many. In fact, obtaining this status does not detract from the fact that Uzbekistan is following a multi-directional approach combining Chinese investments and a rapprochement with the West with the EU and a potential membership of the World Trade Organisation, all the while keeping observer status in the Eurasian Economic Union, dominated by Russia.

Read more on Novastan: Uzbekistan: towards greater cooperation with Iran?

Uzbekistan is also in the process of negotiating Extended Partnership and Cooperation Agreements (EPCA) with the European Union. These agreements look to replace the Partnership and Cooperation Agreement (PCA) in effect since 1999. The EPCA has a much broader scope than the SPG + status, encompassing justice, trade, human rights as well as corruption and terrorism prevention.

As the Uzbek media Gazeta.uz notes, seven rounds of negotiations have already taken place on the EPCA since they started in 2018, while a final position is expected for the first half of 2021.

Etienne Combier
Editor-in-chief of Novastan France

Translated from French by Valentine Baldassari

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Iran and Uzbekistan’s joint infrastructure projects are picking up steam despite the pandemic. A first working meeting between India, Iran and Uzbekistan in mid-December 2020 once again underlined the commitment of all parties. Above all, the deep-water port in Chabahar in southern Iran stands as a potential gateway to world trade for the Uzbek economy.

This article was originally published on Novastan’s German website on 19 January 2021.

The port of Chabahar, in southern Iran, is at the heart of a new Eurasian infrastructure initiative. Rail and transport links to and from the port are intended to better connect Central Asia and especially Uzbekistan and Afghanistan to international freight traffic. The new routes would significantly reduce previous transport times as well as costs and could contribute to an economic upswing in the Central Asian republics.

On 14 December 2020, a first trilateral working meeting took place between Uzbekistan, Iran and India. Prior to this, Iran and Uzbekistan had already held several bilateral meetings and visits. The latest meeting was co-chaired by India’s shipping minister Sanjeev Ranjan, Uzbekistan’s deputy minister for transport Davron Dehkanov and Iran’s deputy transport minister Shahram Adamnejad. The focus was on the three countries’ relations under the Ashgabat Agreement, which came into force in 2016, and on the Chabahar infrastructure project.

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According to Adamnejad, Uzbekistan, as the most populous country in Central Asia, has an interest in expanding its logistics and transport capacity and creating additional links to drive its economy forward. The Ashgabat Agreement provides for cooperation in the transport sector between Kazakhstan, Uzbekistan, Turkmenistan, Iran, Oman and, since February 2018, India. It also connects with International North-South Transport Corridor (INSTC), a transport route stretching from Russia to India. From the Uzbek side, rail links are already in place in the direction of northern Afghanistan’s Mazar-e Sharif, testifying to Tashkent’s ambitions. Tajikistan is also connected to this link, which would run towards Mashhad in north-western Iran and from there on to the Persian Gulf.

Iran’s Islamic Republic News Agency (IRNA) reports that Uzbekistan’s Dehkanov praised the facilities of the port of Chabahar, pointing out that in view of the operational capabilities, equipment and strategic position of the port, the formation of a joint working group would be pushed forward as soon as possible.

Iran as a future hub for trade with Uzbekistan and Central Asia

In early May 2019, Iran’s special envoy Kamal Kharazi visited the Uzbek capital for bilateral talks. Joint and regional issues were discussed, such as the construction of the rail link between the Afghan cities of Mazar-e Sharif and Herat, as well as other aspects of the Chabahar project. Both sides agreed to increase the container transport volume on this route.

Tashkent sees the connection via Iran as the economically most profitable and shortest link to the world markets. Conversely, Tehran sees the connection via Uzbekistan as the strategically most important and shortest transit route to China and East Asia. However, the overall trade volume has been manageable so far, not least because of Iran’s economic situation and the coronavirus pandemic.

Another possible train route is from Chabahar to resource-rich central Afghanistan, which would also enable a connection to Kabul. The project, financed and driven mainly by India, is partly in competition with China’s Belt and Road Initiative. With INSTC, India is trying to bypass the overland route via Pakistan and at the same time create an alternative to China’s Belt and Road network for the Central Asian states. China’s increasing dominance and market strength in Central Asia is prompting New Delhi to create alternatives and to dig deeper into its pockets. The expansions of water, rail and road networks planned within the framework of INSTC and by the Chinese Belt and Road Initiative would almost halve the transport routes to the countries of Central Asia and make Iran a future hub for trade with the region.

Bilateral relations and regional goals

At the end of July 2020, a virtual conference was held between the Uzbek minister of investment and foreign trade, Sardar Omar Zagov, and the Iranian vice president for economic affairs, Mohammad Nahavandian, as reported by the Tehran Times. The Iranian side announced that the trade volume between Uzbekistan and Iran had increased by 40 per cent in 2019. Sardar Omar Zagov underlined Iran’s important role as a trade partner for Uzbekistan, stressing the ties between the countries: “We believe that geographical proximity and spiritual commonalities are a good opportunity that can be used to increase the level of economic relations between the two countries“

Tashkent said it welcomed the presence of Iranian investors and engineering companies in economic and development projects in the country. It is also interested in expanding scientific and technological relations. Shortly after the conference, the chairman of the Chabahar Free Trade-Industrial Zone Organisation announced an agreement with Uzbekistan: the country will trade agricultural products and minerals with India via Chahabar.

Both Iran and Uzbekistan are located in strategically important positions in the region and pursue geopolitical goals and interests in this regard. Uzbekistan strives for good neighbourly relations and tries to ensure stability and security in the entire Central Asian region. In doing so, it insists on neutrality in the conflict between Tehran and Washington. At the same time, the Uzbek government is trying to work towards strengthening relations between Iran and important regional actors such as Russia, China, Turkey and India.

Read more on Novastan: Russia commits to railroad corridor China-Kyrgyzstan-Uzbekistan

Iran is striving to address the situation in Afghanistan in cooperation with neighbouring countries and to transform it to its own advantage. Through joint projects, it is ensuring it will continue to play the role of a gateway to Central Asia, including as a transit corridor for oil, gas and other goods.

Although the US State Department plans to exempt the port in Chabahar from sanctions, the project has recently developed more slowly than planned due to the coronavirus pandemic and the American sanctions strategy of “maximum pressure”. The exemption is granted because of the project’s potential economic benefits in Afghanistan and India. The slowdown of the region’s economic plans is consequently also hampering the further development of the Uzbek economy.

A good relationship between Iran and the Central Asian countries is becoming increasingly important for Tehran in view of the continuing American sanctions. With a new president of the United States and a possible relaunch of the so-called nuclear deal of the 5+1 group, it will become clear whether Iran’s political position will once again move closer to the West. If future negotiations do not work out, Iran’s eastern ties, which have been strengthened since the collapse of the nuclear negotiations due to US withdrawal from the treaty, could develop further.

Progress also depends on future US policy

What is certain is that Iran is in any case becoming increasingly connected to its eastern neighbours. Uzbekistan in particular is counting on future cooperation to gain access to the Indian Ocean. Trade relations and points of contact already exist between the two countries in multilateral formats such as the Shanghai Cooperation Organisation, in which Iran has observer status.

The biggest obstacle to economic traffic between Uzbekistan and Iran continues to be the American sanctions, which both paralyse the Iranian economy and indirectly slow down infrastructure projects such as Chabahar. A serious conflict between Tehran and Washington would also partially affect the transit routes for Uzbek goods. Thus, a reopening of the nuclear negotiations would be in the interest of the government in Tashkent. With Joe Biden becoming president of the United States on 20 January, expectations are rising both in Tehran and Tashkent. If they are fulfilled, economic and political relations between Iran and Uzbekistan could reach a new level of cooperation.

Darius Regenhardt
Novastan Deutsch

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