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Quick Hits #3: A roundup of recent developments in the Caucasus and Central Asia [1]

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Date: 2025-06

Leading Off…

Just days after Italian Prime Minister Giorgia Meloni visited Astana, Kazakh officials have reportedly issued a stop work order to Eni, the Italian energy entity, and Shell concerning the $3.5 billion Karachaganak gas processing facility. The cause is disagreement over costs and construction delays. Eni and Shell hold the largest stakes in a consortium known as Karachaganak Petroleum Operating, which also comprises KazMunaiGas, the Kazakh state entity, along with Chevron and Russia’s Lukoil. Kazakh officials reportedly want to push up the timeline for the processing facility to launch operations.

In case you missed it from the Caucasus…

Deputy Assistant Secretary for International Nuclear Policy and Cooperation Aleshia Duncan spent at least three days in Armenia, conducting talks on nuclear energy and critical minerals. The results of those negotiations – if any – remain unclear. The Armenian government has expressed an intent to build a new nuclear power plant to replace the Metsamor facility, which is scheduled to be decommissioned in 2036. Earlier this spring, executives from Westinghouse spent several days in Yerevan, prompting speculation that the US firm is angling to get at least a piece of the construction contract for the new reactor.

In Azerbaijan, several major deals were concluded during Baku’s Energy Week. BP announced that the next phase of development for the Shah Deniz gas field received a green light. The project is expected to extend the life of the field and boost production. Two decarbonization projects also received the go-ahead: the Shafag solar farm and the electrification of the Sangachal terminal. Exxon Mobil and Azerbaijan’s SOCAR signed a deal to explore onshore oil and gas production in Azerbaijan. Meanwhile, the Turkish state oil company TPAO joined a production-sharing agreement with SOCAR and BP for the Shafaq-Asiman offshore block in the Caspian Sea. And Hungary’s MOL Group and SOCAR made a deal for the Shamakhi-Gobustan onshore field.

Baku is engaging in quiet diplomacy with Turkey and Israel to defuse Syria tensions. According to a report published by the Times of Israel, citing Azerbaijani presidential adviser Hikmet Hajiyev, Azerbaijan has hosted at least three discussions involving Israeli and Turkish diplomats to address perceived security threats. In addition, Syrian officials are reportedly seeking Azerbaijan’s help to restore Syria’s energy sector.

The Foreign Ministry in Georgia is shutting down the NATO and European Union information center. The center opened in 2005, operating under the Foreign Ministry’s auspices to provide information to the Georgian public about the country’s efforts to join both organizations. Ministry officials say the center’s functions will still be carried out by another office after a reorganization is completed.

Meanwhile, across the Caspian …

Japan has agreed accept 10,000 labor migrants from Uzbekistan. The agreement signed between the two states will run for five years. As with a recent deal with South Korea, would-be labor migrants will be trained in Uzbekistan before going to Japan. Japanese language classes are being organized in three Uzbek regions, Tashkent, Samarkand and Namangan. Those wishing to obtain work permits for Japan will have to pass a qualification exam.

Uzbekistan’s Central Bank has sold more of its gold reserves than any other central bank in the world so far in 2025. At the same time, Uzbekistan’s debt increased to $42 billion as of April 1. Uzbek officials contend that the extra revenue from gold sales is needed to keep government economic development plans on track. So far, the Central Bank’s year-to-date gold holdings have fallen by 26 tons, to 356 tons, according to the World Gold Council.

In Kyrgyzstan, the number of registered domestic violence incidents increased by 36 percent during the first four months of 2025. MPs have vowed to adopt new legislation featuring harsher punishments, such as extending detention from seven to 14 days.

Turkmenistan was listed among seven countries whose citizens will face more stringent requirements in order to visit the United States. The US accuses authorities from Turkmenistan and other countries on the restricted list of not having sufficient procedures in place identify travelers who potentially to overstay their visas. A Department of Homeland Security report issued in mid-2024 showed that about 15 percent of the 925 Turkmen visitors to the United States overstayed their visas during the 2023 fiscal year. That’s the highest rate of any state in Central Asia or the Caucasus. Kyrgyzstan had the next highest rate at 11 percent and almost 10 percent of Georgian’s remained in the United States beyond their visa timeframes.

And another thing…

With Kyrgyz President Sadyr Japarov having gained a firm grip on power in Bishkek, he’s now seemingly taking time to settle old political scores. A city court in the Kyrgyz capital sentenced former president, Almazbek Atambayev to an 11-and-a-half-year prison term in absentia for his supposed involvement in illegal land dealings. Atambayev fled to Spain in 2023, and on June 7 he reacted to the verdict, describing it as “far-fetched.” Writing on Facebook, he insisted he “never betrayed the interests of Kyrgyzstan. Yes, I made mistakes and always admitted that.” He indicated that he is ready to face justice, but added that he would agree to do so only if Japarov’s administration authorized Kyrgyzstan to become a party to the Rome Statute of the International Criminal Court.

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[1] Url: https://eurasianet.org/quick-hits-3-a-roundup-of-recent-developments-in-the-caucasus-and-central-asia

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