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30 Jan, 2024 05:56

EU pledges to spend billions on trade route bypassing Russia

The bloc intends to turn the Trans-Caspian transport corridor into a “cutting-edge” route to Central Asia
EU pledges to spend billions on trade route bypassing Russia

The EU plans to raise up to €10 billion ($10.8 billion) in investment to create a transport corridor to Central Asia through the South Caucasus and Türkiye that bypasses Russia, the European Commission announced on Monday at a forum devoted to developing the route.

According a statement released by the European Commission, Brussels is currently ready to allocate €2.97 billion for the purpose.

For additional funding, the European Investment Bank has reportedly signed memorandums of understanding totaling €1.47 billion with the governments of Kazakhstan, Kyrgyzstan and Uzbekistan, as well as the Development Bank of Kazakhstan. 

Meanwhile, the European Bank for Reconstruction and Development is expected to sign a memorandum of understanding with Kazakhstan regarding an investment pipeline worth €1.5 billion for projects already being prepared to develop transport connectivity in Central Asia. 

The two-day Investors Forum for EU-Central Asia Transport Connectivity, which began in Brussels on Monday, is expected to address the investment that will be necessary to transform the Trans-Caspian transport corridor into “a cutting-edge, multimodal, and efficient route, connecting Europe and Central Asia.”

According to the statement, the bloc is urgently trying to find alternative trade routes between Europe and Asia that could bypass Russia.

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