Despite the major global disruptions of 2020, the Trans-Caspian Trade and Transit Corridor remains at the center of European and Asian connectivity. Comprised of Azerbaijan, Armenia, Georgia, and Turkey to the west, and Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, and Afghanistan to the east of the Caspian Sea, the corridor serves as an essential overland route linking the European Union, China, India, and the Middle East. After a year when global connections came under incredible strain due to a raging pandemic and ailing economy, the Great Caspian Region must be poised to capitalize on emerging opportunities to boost connectivity. 

Beyond the COVID-19 pandemic, the change in Washington from the Trump Administration to the Biden Administration will be a considerable difference between 2020 and 2021 for the Greater Caspian Region. While much of the U.S. policy towards the region will remain the same, President Biden’s government will mean a number of key shifts. These differences will not only have significant implications for 2021, but for the coming four years of U.S. relations with the countries of the Caspian region. 

As the countries of the Greater Caspian Region manage the profound changes brought on by the COVID-19 pandemic, governments and the private sector must cooperate to usher in a period of renewed economic growth. Encouraging infrastructure investment and innovation will be critical to the recovery of economic systems in the Caspian and around the world. In some sectors, work will return to the way it was before the pandemic, while in others fundamental changes will not be reversed. The Trans-Caspian countries must find a way to harness these new opportunities and deliver economic results for their people. 

A cornerstone of the post-COVID recovery will be a robust commitment to hard and soft infrastructure development. The Trans-Caspian Corridor’s success as a bridge between the surrounding regions rests on the Caspian countries’ collective ability to build safe and reliable infrastructure. Multimodal transport hubs are essential for moving cargo across the region’s varied geography, and governments will need to work to build investment climates that will attract the large sums needed to launch new projects. Efforts like the Blue Dot Network could prove to be major boons for the region as it looks to diversify its portfolio of investors and broaden its reach as it seeks to tap new capital markets. 

Long the foundation of the Trans-Caspian Corridor, the energy trade in the region is also rapidly changing. Supply overhangs for oil and gas resulted in low prices in 2020, causing considerable problems for the hydrocarbon sector. At the same time, the construction of the Trans Adriatic Pipeline marked the completion of the Southern Gas Corridor and the beginning of Caspian energy exports to the European Union. The makeup of Caspian energy is also set to change as the region contends with the energy transition. The region holds massive potential in the renewable energy sector, and with responsible leadership can retain its status as a major player in the energy industry even as the importance of hydrocarbons diminishes. By bringing solar, wind, and hydropower into the picture alongside oil and gas, the Caspian region will be well–positioned for the evolving market ahead. 

The Caspian Policy Center will bring together policy and business leaders from the United States and the Trans-Caspian corridor countries at the 5th Trans-Caspian Forum on June 9-10, 2021, to discuss opportunities and challenges in enhancing their strategic engagement and prosperity and explore current and future business, trade, and investment opportunities to the benefit of all concerned. The Forum is co-organized by the Embassies of Afghanistan, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, and Uzbekistan, and supported by the U.S. Department of Commerce and U.S. Agency for International Development, with participation of the U.S. Department of State, U.S. National Security Council, and U.S. International Development Finance Corporation.