The Commonwealth of Independent States (CIS) is vital in strengthening collaboration between the organization’s member states, including economic ties. This article will analyze current initiatives and projects to develop economic cooperation in the CIS, considering Uzbekistan’s national interests.
Transport Infrastructure Projects
The development of transport infrastructure is one of the key areas of CIS cooperation. The International North-South Transport Corridor (INSTC) project, which includes the construction of highways, railways, and ports to increase trade and logistical efficiency, is an example of this.
According to the CIS Council of Heads of State, the INSTC project is actively supported by the member states of the Commonwealth, including Uzbekistan. It provides Uzbekistan with access to ports on the Caspian and Black Seas, which contributes to the development of exports and imports of goods.
The agreement on establishing the INSTC was signed in 2000 between Russia, Iran, and India. Since 2002, a green corridor has been operating between the countries. The corridor length is 7,200 kilometers, and it reduces the delivery time of goods from India to Saint Petersburg by 30-40 percent, or 20 days. It is planned that 15-20 million tons of cargo per year will be transported through the corridor.
Uzbekistan plays a vital role in creating efficient transport corridors throughout Central Asia, striving to gain access to seaports through rail transport as the most economical mode of transportation. A railway line has been built to Mazar-i-Sharif, Afghanistan, and activities are underway to expand this line to the Persian Gulf and the Indian Ocean.
The INSTC project will significantly strengthen transport links between the CIS countries, ensuring strategic integration through road, railway, and port infrastructure development and opening up new opportunities for Uzbekistan, allowing the country to become a key transport hub in the region. This promises to bring significant economic benefits to the country, increasing its accessibility and attractiveness for international trade. Thus, the project highlights the vital role of Uzbekistan in regional integration and strengthening cooperation.
Energy Integration
The energy sector is also essential to economic cooperation within the CIS. Creating a unified energy network allows the participating states to exchange energy, which contributes to ensuring the energy security of the entire region.
The Central Asian Energy System (CAES) is one of the successful projects in this area.
It should be noted that the Asian Development Bank has approved a $125 million loan for a project to improve Uzbekistan’s energy network, increase energy efficiency, and ensure the integration of more renewable energy sources into the country’s power balance.
The project envisages the reconstruction of 12 power transmission lines in seven regions of the country and the modernization of four 220-kilovolt substations to increase capacity and meet current and projected electricity demand. It is also planned to digitalize the electricity transmission network by replacing outdated technologies with modern high-voltage lines and substations ready to be connected to the supervisory control and data acquisition system (SCADA). This will allow the control center to monitor the power supply remotely and increase the network’s renewable energy generation capacity.
These initiatives underline Uzbekistan’s desire to move towards a green and low-carbon economy and contribute to the stable provision of energy access for the region’s countries.
Trade Cooperation
The free trade zone created between CIS member states is an essential component of the economic cooperation and development of the region. Uzbekistan is an active participant in this initiative, seeing this as an opportunity to expand its export and import operations and increase trade turnover, demonstrating its openness and readiness for multilateral cooperation and establishing itself as a key economic player in Central Asia.
In recent years, Uzbekistan has increased its participation in the activities of the CIS, signing more than 40 multilateral agreements and joining 23 sectoral bodies of the Commonwealth. This tripled Uzbekistan’s trade turnover with the CIS countries and contributed to creating more than 1,000 joint ventures.
Uzbekistan aims to fully function as a free trade zone and strengthen transport connectivity in the CIS area. This includes efforts to implement national programs and strategies aimed at deepening industrial cooperation and ensuring food, energy, and environmental security.
Abduaziz Khidirov, UzA