Uzbekistan And Azerbaijan Sign Landmark Energy Deal

It has been clear for some time that Russia’s war in Ukraine is driving the Central Asian states and Azerbaijan to forge tighter partnerships, as countries in Moscow’s orbit cast around for new trade routes bypassing their internationally isolated former colonial master. Now, news that Uzbekistan and Azerbaijan have signed a landmark deal to boost energy sector cooperation confirms that the drive for closer integration is only gaining impetus.

On August 29 their Energy Ministries signed a roadmap outlining their goals and plans up to the end of 2023.

They will pursue joint projects in the oil and gas, petrochemical and renewable energy sectors, an Uzbek Energy Ministry statement said.

They will work together to lure investment for energy projects, including in the electric power and natural gas sectors, and share best practice on constructing thermal power plants.

This is pertinent to Uzbekistan as is it seeks to overhaul its power sector, whose creaking infrastructure is one cause of frequent blackouts.

Uzbekistan and Azerbaijan will also pool information on liberalization of energy markets and privatization. This is another priority for Tashkent as it tries to loosen its grip on an industry that has hitherto been state dominated, in order to woo investment and make the sector more efficient.