Regional leaders in Central Asia aim to draw on German technological knowledge to establish robust manufacturing sectors.
Fresh Take:
Central Asian leaders laid it all on the line during German Chancellor Olaf Scholz's tour of the region: "Wanna play? Bring on the benefits!"
In a high-stakes gathering of Central Asian heads of state at Astana, Kazakhstan on September 17, discussions with Scholz centered on beefing up trade relations between the West and Central Asia. With a keen eye on boosting natural gas imports from the region, Germany is determined to break free from its reliance on Russian energy. Despite no concrete deals being hammered out at the meeting's end, all parties remained optimistic, signaling a hopeful future for future accords.
Scholz, echoing unity, expressed, "Our societies are closer than ever before, and this gap's only growing."
Kazakh President Kassym-Jomart Tokayev echoed the sentiments, stating, "Our chats inspired a shared vision for intensifying cooperation." He also emphasized that energy issues would steer the relationship moving forward.
Tokayev's statements hinted at a potential roadmap for future trade relations. Kazakhstan and other regional powers weren't just looking for monetary compensation for energy exports; they yearned for something more – a piece of Germany's tech know-how to catalyze local production and innovations in sectors such as finance, agriculture, transit logistics, and IT.
Moreover, Tokayev pointed out that Kazakhstan aimed to partner with Germany to develop Central Asia's green energy agenda, specifically referencing an Azerbaijan-Kazakhstan-Uzbekistan project to develop solar- and wind-power plants for EU electricity exports. Tokayev gamely mentioned that Germany was invited to join this strategic initiative.
Before reaching Kazakhstan, Scholz paid a visit to Uzbekistan, where the give-and-take strategy was once again in play during talks with Uzbek President Shavkat Mirziyoyev. The key outcome was a politically savvy agreement allowing Germany to transfer Afghan refugees to Uzbekistan for eventual repatriation to Afghanistan. In return, Berlin pledged to receive Uzbek skilled workers to fill open positions in Germany.
Scholz applauded the agreement on social media, stating, "With this deal, we're nurturing talented individuals in our country, and we're vowing to keep things simple for those who shouldn't stay here."
For Scholz, the agreement addressed domestic migration concerns, helping his embattled coalition against the far-right Alternative for Germany (AfD) Party, which has gained ground due to discontent with the government's approach to immigration.
The agreement proved to be a win-win for Mirziyoyev, whose administration is working to pivot Uzbekistan's economy from resource extraction to manufacturing. This transformation entails revamping the labor market, with a focus on creating opportunities for skilled workers abroad.
The German-Uzbek agreement might benefit Afghanistan's Taliban leadership, which has been pushing for international recognition of its rule. In response, Uzbekistan is considering processing a limited amount of Afghan crude oil for domestic purposes and has agreed on an investment deal potentially worth up to $2.5 billion with the Taliban.
Should the Taliban accept the return of Afghan nationals sent from Germany to Uzbekistan, it could demonstrate that the Taliban can act responsibly, aiding its efforts to establish broader international legitimacy.
Notable Insights:
- Energy resources, particularly natural gas, in Central Asia are of great interest to Germany as potential alternatives to Russian energy sources.
- A round table discussion involving Germany and Central Asian states focused on scientific, technical, and educational cooperation, with a focus on hydrogen energy and biotechnology.
- The partnership between Germany and Central Asia is expected to boost economic and possibly energy cooperation in the region.
- Central Asian leaders, in discussions centered on beefing up trade relations with Germany, expressed a desire not just for monetary compensation for energy exports, but also for technological know-how to catalyze local innovation in sectors like finance, agriculture, transit logistics, and IT.
- Kazakhstan's President, Kassym-Jomart Tokayev, hinted at a potential roadmap for future trade relations by stating his nation's aim to partner with Germany to develop Central Asia's green energy agenda.
- Beyond the negotiations on energy and technology, Scholz and Uzbek President Shavkat Mirziyoyev reached an agreement that addressed German domestic migration concerns, with Berlin pledging to accept Uzbek skilled workers, and Uzbekistan, in return, agreeing to receive Afghan refugees for eventual repatriation.
- The partnership between Germany and the Central Asian states is expected to extend beyond trade and energy, as echoed by Scholz's sentiment that "our societies are closer than ever before, and this gap's only growing," indicating potential cooperation in fields such as finance, education, and culture.
