The Central Asia-Caucasus Analyst

Many factors have been cited for Russia’s failure to intervene in the rioting in southern Kyrgyzstan. An overlooked factor appears to be the strong opposition from, and coordination between, Tashkent and Beijing. The growing approximation between the two was at open display during the June SCO summit in Tashkent, where unprecedented language of friendship was used in the communiqués of Sino-Uzbek meetings, compared to the correct but reserved tone that Russian leaders were confronted with. While both the CSTO and SCO appear unable or unwilling to respond to acute crises in the region, a growing Sino-Russian rivalry appears to developing in Central Asia.

Since the beginning of the 1990s, South Korea has positioned itself as one of the main Asian allies of the Central Asian states. Today, it is the fourth largest commercial partner of Uzbekistan, with US$ 904 million in exchanges in 2008, and the ninth-largest of Kazakhstan, with US$ 864 million worth of exchanges. Often presented as one of the rising regional powers in Central Asia, Seoul continues to invest in strategic fields such as uranium and to aid the opening up of the region in terms of transport.

In mid-August, BP Azerbaijan announced that oil from Turkmenistan is now entering the BTC in Azerbaijan and will constitute between four and five percent of its present throughput of 800,000 barrels per day (bpd), which is being upgraded to 1.2 million bpd with a view towards eventual inclusion of oil from Kazakhstan’s offshore Tengiz field. These practical steps of cooperation with Azerbaijan, combined with the mid-August announcement in Ashgabad of new directions in Turkmenistan’s gas export policy, point the way towards a European direction for future Turkmenistani production, not forgetting China and the possibility of South Asia, while Iran is given only marginal reference and Russia is ignored.

Kabul and Islamabad recently signed the Afghanistan Pakistan Trade and Transit Agreement. Under the agreement, Afghan trucks are allowed to carry Afghan transit export cargo to Pakistani ports and also to the Indian border. If implemented, the agreement has the potential to boost Afghanistan’s development and regional trade. While it excludes Indian exports across Pakistan for the time being, over time it may also create insurmountable pressure within Pakistan and Afghanistan to open up trade across the border with India, thus providing a substantial stepping stone in the integration of South and Central Asian economies.