In the current geopolitical climate, where trade dynamics are rapidly evolving, the European Union (EU) is making significant strides to secure greater access to rare earth minerals and energy resources in Central Asia.

This strategic move comes as the EU aims to diversify its supply chains and foster mutually beneficial relationships with other global players, positioning itself as a reliable partner in the region.

Katja Kallas's Visit to Azerbaijan

Recently, EU High Representative Katja Kallas visited Baku, Azerbaijan, where she met with President Ilham Aliyev. Azerbaijan, being the EU's largest trading partner and biggest investor in the region, plays a crucial role in Europe's energy security. During the visit, Kallas and Aliyev discussed enhancing trade relations and improving connectivity between the EU, the South Caucasus, and Central Asia. They also agreed to resume negotiations on a new Partnership and Cooperation Agreement, emphasizing mutual respect and shared principles.

Von der Leyen's Central Asia Summit

In a landmark summit held in Samarkand, European Commission President Ursula von der Leyen announced a €12 billion investment package under the Global Gateway strategy. This investment aims to strengthen ties with Central Asian countries, including Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The focus areas include developing transport corridors, enhancing connectivity, and securing critical raw materials such as lithium, graphite, and manganese. These initiatives are designed to support sustainable development and economic growth in the region.

Economic Negotiations and Trade Deals

The EU's strategic partnership with Central Asia is centered on securing access to energy resources and rare earth minerals while fostering economic growth and regional integration. The €10 billion allocated for the Trans-Caspian Transport Corridor is expected to significantly reduce travel time between Europe and Central Asia, benefiting both regions. Additionally, the EU is committed to supporting the accession of Uzbekistan and Turkmenistan to the World Trade Organization (WTO), further integrating these economies into the global market and promoting fair trade practices.

France's Diplomacy in the Gulf

France has been actively engaging with Gulf countries, including Kuwait, to secure energy resources and strengthen economic ties. French diplomacy has focused on establishing France as a key partner in the region, leveraging strategic partnerships for mutual benefit. Efforts have included discussions on oil and gas supplies, as well as broader economic cooperation, aiming to create a stable and prosperous environment for all parties involved.

French Minister for Europe and Foreign Affairs, Jean-Noël Barrot, has implemented several measures to enhance these partnerships. These include initiatives to improve digital connectivity, support renewable energy projects, and foster economic diversification. Barrot's approach emphasizes sustainable development and long-term collaboration, ensuring that both France and Gulf countries benefit from these strategic engagements.

Unlike Others, 'We're Reliable,' EU Tells Central Asia

At the first EU-Central Asia summit, held in Samarkand, Uzbekistan, the EU pitched itself as a "reliable" partner amid a turbulent geopolitical context. The summit, which took place just two days after US President Donald Trump unveiled tariffs on dozens of countries, including allies such as the EU and the UK, aimed to boost trade and diplomatic ties. European Commission President Ursula von der Leyen emphasized the importance of reliable partnerships in her address, highlighting the EU's commitment to mutual respect and shared principles.

Strategic Partnership Agreement

EU and Central Asian countries - Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan - agreed to upgrade their cooperation to a strategic partnership. The EU announced a new €12 billion package for the region through its Global Gateway Initiative, which will finance projects in transport (€3 billion), critical raw materials (€2.5 billion), water, energy, and climate (€6.4 billion), as well as digital connectivity. These projects have already been greenlighted and allocated by the European Bank for Reconstruction and Development (EBRD).

Access to Clean Energy and Rare Earths

Access to clean energy and rare earths is critical for the EU as it seeks to achieve climate neutrality by 2050 and boost its autonomy in strategic sectors. Central Asia holds large deposits of critical raw materials, including 38.6% of the world's manganese ore, 30.07% of chromium, 20% of lead, 12.6% of zinc, and 8.7% of titanium. European Commission President Ursula von der Leyen emphasized the EU's commitment to developing local industries and ensuring that the added value remains within the region.

Multilateralism and Ukraine

The protection of the "rules-based multilateral order" was a key focus of António Costa's address at the summit. The president of the European Council emphasized the need for greater cooperation at bilateral, regional, and multilateral levels, particularly in response to security threats such as Russia's invasion of Ukraine. While the five Central Asian countries have abstained from UN votes relating to Russia's aggression, they have benefitted from re-exporting sanctioned Western goods to Russia. The EU, which has imposed 16 packages of sanctions against Russia, has appointed a Special Envoy for sanctions circumvention to address this issue.

Benefits for the EU from the Central Asia Partnership

The EU stands to gain significantly from its partnership with Central Asia. By securing access to rare earth minerals and energy resources, the EU can diversify its supply chains, reducing dependency on other global players and enhancing economic security. The investment in infrastructure projects, such as the €10 billion allocated for the Trans-Caspian Transport Corridor, will facilitate faster and more efficient trade routes, boosting economic growth and regional integration. Additionally, supporting the accession of Uzbekistan and Turkmenistan to the World Trade Organization (WTO) will open new markets for European businesses, fostering economic opportunities and promoting fair trade practices. The collaboration on critical raw materials, including lithium, graphite, and manganese, will support the EU's green transition and technological advancements.

Benefits for Central Asia from the EU Partnership

Central Asia stands to gain significantly from its partnership with the EU. The €12 billion investment package under the Global Gateway strategy will boost sustainable economic growth and resilience in the region. Investments in digital connectivity, transport, and renewable energy projects will create jobs, improve essential services, and enhance infrastructure. The development of the Trans-Caspian Transport Corridor will reduce travel times and boost trade between Central Asia and Europe. Collaboration on critical raw materials will support local industries and ensure that the added value remains within the region. Additionally, the partnership will provide economic opportunities, promote fair trade practices, and support the green transition, contributing to a more sustainable and prosperous future for Central Asia.

Benefits for the Gulf Countries from the EU Partnership

The Gulf countries also stand to benefit from their partnership with the EU. Enhanced cooperation on energy security and the green transition will support the Gulf's ambitious transformative agendas, such as Saudi Arabia's Vision 2030. The EU's investments in digital connectivity, transport, and renewable energy projects will create jobs, improve essential services, and boost sustainable economic growth. The strategic partnership will also facilitate greater trade and investment opportunities, helping Gulf countries diversify their economies and reduce reliance on oil and gas exports. Furthermore, the collaboration on climate change and environmental initiatives will contribute to global efforts to combat climate challenges, promoting a more sustainable future for the region.

Conclusion

The EU's proactive measures to secure access to rare earth minerals and energy resources in Central Asia and the Gulf are part of a broader strategy to enhance economic security and foster mutually beneficial partnerships. Through high-level diplomatic engagements, significant investments, and strategic collaborations, the EU is positioning itself as a reliable and influential partner in the global market.

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