Central Asia's geopolitical significance is rising as international actors enhance their engagement with the region. Major economies, including the Gulf Cooperation Council (GCC), the European Union (EU), China, and the United States, have expanded their presence in Central Asia over the past year, driven by the region's strategic location and rich natural resources. The ongoing conflict in Ukraine has further highlighted Central Asia’s importance as a crucial hub for transit routes and access to key materials. Japan is among the latest countries to strengthen ties with the region, positioning itself as a key partner.
Japan's dialogue framework with Central Asia, initiated in 2004, has been a platform for cooperation, with nine foreign ministerial meetings held under the C5+Japan format. This year, Japan sought to elevate these discussions by holding the first-ever summit at the state leaders' level. Prime Minister Fumio Kishida was scheduled to visit Kazakhstan from August 9-11 to meet with leaders from Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan. However, Kishida’s visit was cancelled due to an earthquake warning issued by Japan's Meteorological Agency.
Before the cancellation, it was expected that Kishida would support Central Asia's carbon neutrality efforts, propose low-emission technologies, and offer assistance in developing value-added exports like hydrogen and natural gas-based fertilizers. Discussions on the Middle Corridor—a key trade route connecting Central Asia and Europe—were also anticipated, along with a $2bn economic support package from Japan.
Despite Kishida's absence, the first C5+Japan Business Forum took place in Astana, Kazakhstan, on August 9. The forum gathered over 450 representatives from Central Asian states and 100 major Japanese companies. Notable participants included Kazakhstan’s Prime Minister Olzhas Bektenov and Marubeni Corporation Chairman Fumiya Kokubu. Discussions covered cooperation in energy, transport, logistics, digitalization, and education, among other sectors. The event concluded with 22 agreements between Central Asian and Japanese companies aimed at fostering mutual development and economic stability.
Regional cooperation remains a priority for Central Asian countries. This was underscored during the inaugural Supreme Interstate Council Meeting between Kazakhstan and Uzbekistan in August. Kazakhstan President Kassym-Jomart Tokayev noted that bilateral trade between the two countries has grown by 29% over the last five years, reaching $5bn in 2022. Tokayev emphasized the success of joint projects valued at over $3bn, which created more than 14,000 jobs. Uzbekistan’s President Shavkat Mirziyoyev highlighted the creation of a joint fund to support promising projects and improve cooperation in energy, transport, and trade.
Kazakhstan and Uzbekistan have spearheaded efforts to enhance regional integration, with Uzbekistan accounting for 57% of Kazakhstan’s trade with Central Asian countries. The countries aim to further deepen cooperation, eliminate trade restrictions, and open new trade routes. These efforts are part of broader regional initiatives to boost intraregional collaboration while enhancing relationships with global partners.
As Central Asia strengthens its international partnerships, Russia’s position as a dominant trade partner in the region is being re-evaluated. The upcoming C5+Russia Summit, announced for early September, will see President Vladimir Putin seek to bolster Russia’s influence in the region. However, questions remain about Russia’s ability to compete with the economic packages and technological expertise offered by Japan, China, the EU, and the US. While Russia remains a key trading partner, its dominance is diminishing as Central Asia explores diversified trade opportunities through initiatives like the Middle Corridor.
Comments (0)