2nd Caspian Economic Forum – sanctions on the agenda

Moscow, Russia (Ports Europe) October 6, 2022 - Moscow is hosting the 2nd Caspian Economic Forum on October 5-6, 2022. Representatives of Russia, Azerbaijan, Iran, Kazakhstan and Turkmenistan will be present. Avoidance of international sanctions against Russia will be a leading discussion point. Attendees at a plenary meeting of the 2nd Caspian Economic Forum include: Prime Minister of the Russian Federation Mikhail Mishustin; Prime Minister of Azerbaijan Ali Hidayat oghlu Asadov; Prime Minister of Kazakhstan Alikhan Smailov; First Vice President of ran Mohammad Mokhber and Deputy Chairman of the Cabinet of Ministers of Turkmenistan Khodjamyrat Geldimyradov. Over 1,000 participants, including those from Russia, four other Caspian countries, Belarus, Kyrgyzstan and Uzbekistan, have registered for the 2nd Caspian Economic Forum. They will discuss issues of cooperation in trade, economy, science and technology in the Caspian region. The key discussion points will be transport infrastructure and energy, as well as expanded inter-regional cooperation. These are the main subjects because Russia is trying to implement a new regional trade system to counteract international sanctions. These sanctions are due to the ongoing Russian war in Úkraine started by Moscow last February. Bilateral meetings Russia's Deputy Prime Minister Alexander Novak met with Iranian Minister of Petroleum Javad Owji He said: "Russia is expected to send a large business delegation to Iran in the near future. From January-July 2022, bilateral trade between Russia and Iran increased by 44.9%, compared with January-July 2021. It amounted to $2.8 billion. According to the Federal Customs Service of Russia, trade between the countries went up by 81.4% in 2021 on 2020 – from $2.2 billion to $4 billion." Russian Prime Minister Mikhail Mishustin met with Prime Minister of Kazakhstan Alikhan Smailov He commented: "We prioritise decisions that were adopted by the presidents of Russia and Kazakhstan in Sochi on 19 August. They have to do primarily with building up trade and economic cooperation. From January to August this year, our mutual trade increased by nearly 9 percent to $17.5 billion. If this trend persists, we will reach a new historic high by the end of the year. We have recently noted its record-high level, but it will grow even more. With the impressive mutual industrial potential, we have good prospects for the implementation of joint programmes to manufacture priority industrial products that are in demand in our markets. We propose to launch more strategic projects in the energy sector, in mechanical engineering, transport infrastructure, the peaceful use of nuclear energy, and the digital economy. There are a lot of options. We place great emphasis on transport cooperation, including the International North–South Transport Corridor project." Russian Prime Minister Mikhail Mishustin met with Prime Minister of Azerbaijan Ali Asadov On 22 February in Moscow, the presidents of Russia and Azerbaijan signed a declaration on allied cooperation, which brought our cooperation to an even higher level. In the conditions of illegitimate economic sanctions that unfriendly states have imposed on Russia, the government is taking prompt decisions aimed at further developing Russian-Azerbaijani cooperation. These measures are already yielding positive results, first of all, in trade and economic cooperation. Russian investment in Azerbaijan amounts to $4.5 billion, and Azerbaijani investment in Russia comes to about $1.5 billion. From January to August, bilateral trade grew by 11.5 percent and exceeded $2.2 billion." We believe unblocking economic and transport ties and creating new infrastructure routes in the South Caucasus, in accordance with what the leaders of Russia, Azerbaijan and Armenia had to say, is of key importance. Moving these important initiatives forward will support the sustainable development of the South Caucasus. Russian Prime Minister Mikhail Mishustin met with First Vice President of Iran Mohammad Mokhber He commented: "Russia and Iran are bound by friendly, neighbourly and partner relations, and we intend to strengthen our cooperation in all areas, regardless of the external situation – I mean the illegitimate economic sanctions that unfriendly states imposed on both Russia and Iran. I am confident that expanding Russian-Iranian collaboration will be the best answer to the sanctions pressure, and the joint measures we are taking have yielded positive results in trade, the economy, science and technology. Russia is one of Iran’s leading foreign trade partners: last year, bilateral trade grew by more than 80% – 80.9% to be exact – and reached a record high of $4 billion. Between January and August of this year, its volume increased by another 36% compared with the same period in 2021, reaching almost $3.3 billion." International North–South Transport Corridor Russia is promoting the International North–South Transport Corridor (INSTC), a multi modal transportation established in 2000. The purpose is to promote transportation cooperation among the member states. It connects India Ocean and Persian Gulf to the Caspian Sea via Iran; and is then connected to Saint Petersburg in Russia.The corridor improves trade connectivity between Moscow, Astrakhan, Baku, Tehran, Bandar Anzali, Bandar Abbas, Mumbai, and other locations along the route. This is seem as a way to trade and avoid international sanctions. Trans-Caspian International Transport Route Alongside this is the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. It combines the countries participating in the new Silk Road project and important players of the region. Its members are leading maritime and transport companies from Kazakhstan, Azerbaijan, Georgia, Ukraine, China and Turkey. Between East and West, in terms of cargo, the Middle Corridor helps to compete with the north-south routes. TITR allows European companies to bypass Russia. A number of Russian entities are under sanctions from the international community following Russia’s annexation of the Crimea in 2014. Ports Europe: Trans Caspian International Transport Route as alternative to Russia It is clear that some countries are balancing participation in both trade corridors. Conclusions This event shows the importance of the Caspian Sea to Russia. Since its invasion of Ukraine and the subsequent international sanctions, Russia is reorientating its export policy. The Caspian Sea is seen as key with Russia looking to replace Western markets by developing transport corridors east and south. Other countries are keen to join this action, but substantial investment is needed in port and land transport infrastructure if significant trade growth is to be achieved. Further reading Ports Europe: Caspian Sea – From logistics periphery to sanctions busting Ports Europe: Caspian Sea ports handled 1% of cargo of all Russia’s ports, but that might change soon More Ports Europe news about Caspian Sea ports Copyright (C) Ports Europe. All Rights Reserved. 2022.

2nd Caspian Economic Forum – sanctions on the agenda

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2nd Caspian Economic Forum – sanctions on the agenda

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Kazakh ambassador visits Shahid Rajaee Port, Iran

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India operates first phase of Chabahar port, Iran

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