(MENAFN- AzerNews) In the current geopolitical environment, the world's topcountries, particularly the United States and the European Union,are facing serious challenges in obtaining critical raw materials European Union has already begun deepening cooperation withsome governments in this area, and one of those governments isUzbekistan.
Azernews reports, citing Trend, that on April5, 2024, Uzbekistan and the European Union signed a memorandum ofunderstanding to create sustainable value chains for vital rawcommodities. The agreement is intended to have an impact on thedevelopment of Uzbekistan's mining industry as well as provide theEuropean Union with minerals like copper and molybdenum. In thefollowing step, the parties will collaborate to develop anoperating strategy.
Laziz Kudratov, Minister of Investment, Industry, and Tradeof Uzbekistan, and Valdis Dombrovskis, Executive Vice President ofthe European Commission.
In recent years, European state representatives, particularlythose from France and Germany, have paid increasing visits toCentral Asian countries, particularly Uzbekistan. For example,French President Emmanuel Macron's visit to Uzbekistan on November2, 2023, addressed strategic problems. Meanwhile, Germany'seconomic objectives include boosting the number of multinationalcorporations operating in Uzbekistan and expanding new investmentopportunities. The recent meeting between Olaf Scholz and ShavkatMirziyoyev resulted in the signing of a $9 billion trade,investment, and technology deal.
For the Central Asian countries, which this time becameindependent participants in the historic "Great Game," there arenow ample opportunities. However, since the interests of the powersin the region are different, this also poses additional risks forindependent states. Here, one of the factors affecting thegeopolitical balance is the availability of critical raw materialreserves. There is a serious confrontation between major powersover critical raw materials, and this situation is predicted tocontinue in the future. Europe's attempts to reduce its dependenceon critical raw materials from Russia, which is in conflict, andthe fact that China is one of the world's consumers in this area,are a challenge for official Brussels.
Why is Uzbekistan, which possesses critical raw materials,becoming a strategic partner of the EU?
Critical row materials, or raw resource metals, are used in manystrategic and critical aircraft components, such as mercury lamps,lasers, microwave filters, battery electrodes, nuclear batteries,etc., as well as in the production of renewable energy equipment(solar panels, wind turbines, electric cars). It is more profitablefor Europe to use the deposits that have already been explored andconfirmed in Soviet times than to explore new deposits.
One of the reasons for the West's increased attention toUzbekistan is its rich copper deposits. At the same time, as theEU's efforts to meet climate goals are threatened, Brussels istrying to find alternative ways out.
According to confirmed open-source information, deposits of rawresources are located in China, India, Russia, and Brazil. Based onWestern press reports, China maintains its dominance in raw metalproduction and creates competition. Viewing this as a threat, theEuropean Union is therefore focusing on new arrangements andprojects with states located in the Central Asian region.
European Commission President Ursula von der Leyen stated in oneof her speeches to Parliament: "Lithium and raw earth metals willsoon become more important than oil and gas. Our demand for rawearth metals alone will increase fivefold by 2030. We must avoidre-dependence as we did with oil and gas." Thus, Europe iscertainly in search of a new and reliable supplier of theseresources. Considering all this, Central Asia is attractingattention as a new global player, with Uzbekistan as well asKazakhstan welcoming the influx of foreign investors into thecountry.
Transportation logistics are of strategic importance.
In the transportation of raw materials vital to the Westernworld, the topic of stable transportation directions naturallybecomes particularly relevant. Therefore, the most suitable andsafe option may be considered the realisation of critical rawmaterial supply from Central Asia to Europe via Azerbaijan. Thesides have not yet made official statements in the press on thisissue. If we take into account the ongoing global changes inEurasia, it can be seen that the traditional line through theRussian Federation has already lost its relevance due to theongoing war in Ukraine.
On the other hand, it is clear that a transportation corridorthat could pass through Iran would not be sustainable, given thehistorically unpredictable nature of relations between officialTehran and the West. Therefore, the export of raw metals to theWest is likely to be carried out within the framework of the MiddleCorridor project, also known as the Trans-Caspian InternationalTransport Route. Indeed, in this case, Azerbaijan's role andimportance as a transit country, stable, reliable, and possessingthe necessary infrastructural capabilities, increase, and theofficial Baku supports this strategic project.
Thus, the sustainable export of raw materials vital for Europefrom Central Asian countries to the West can be implementedprecisely through Azerbaijan.
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