EU joins ‘Klondike’ rush for Central Asia critical minerals as bloc and region upgrade relations

EU joins ‘Klondike’ rush for Central Asia critical minerals as bloc and region upgrade relations
The summit was another pointer to how competition between the big powers for fruitful economic relations with Central Asia has reached a new intensity. / Official handout
By bne IntelliNews April 6, 2025

The European Union and Central Asian countries have agreed to elevate their relationship to a strategic partnership.

The commitment came on April 4 during the first-ever EU–Central Asia Summit, held in Samarkand, Uzbekistan.

Chaired by the country’s President Shavkat Mirziyoyev, the gathering was attended by European Commission President Ursula von der Leyen, European Council President Antonio Costa, and the leaders of Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.

“At this historic Summit, Europe and Central Asia have decided to elevate our cooperation to a strategic partnership,” said von der Leyen. “In an uncertain world, we send a clear and powerful message: we are partners of choice, and we can rely on each other.”

To anchor the upgraded relationship, von der Leyen announced a €12bn investment package under the EU Global Gateway strategy that rivals China’s Belt and Road Initiative (CBI) and investments committed by Russia to the ex-Soviet region, geopolitically now seen as much more “in play” given Moscow’s concentration on its war in Ukraine and the growing need of big powers to source critical minerals for the tech and energy transitions. 

The funding will target priority sectors including critical raw materials (CRM), including a pledged emphasis on keeping added-value in processing local, as well as transport connectivity, digitalisation, water and energy. It will be allocated as follows:

  • €3bn for sustainable transport initiatives
  • €2.5bn for critical minerals development
  • €6.4bn for hydropower and climate projects
  • €100mn for satellite internet connectivity

“After years of successful cooperation it is time to take our partnership with Central Asia to the next level,” Costa said. “The EU remains a reliable forward-looking partner… Consistency, predictability and ambition will continue to drive our joint efforts.”

The summit was a culmination of growing EU engagement with the region. Trade transit (that avoids possible complications in continuing to use corridors through Russia), but increasingly CRM, are the main attractions.

In his speech in Samarkand, Kazakhstan’s President Kassym-Jomart Tokayev helpfully pointed out that his country produces 19 out of 34 types of CRM perceived as essential for the EU economy, including uranium, titanium, copper, lithium, cobalt and tungsten. Von der Leyen observed that Central Asia has 40% of the world’s reserves of manganese.

In CRM, the assembled leaders endorsed a joint declaration of intent. It was acknowledged that while opportunities for cooperation are growing, logistical constraints remain a major hurdle. 

Mirziyoyev pointed out that “the lack of effective transport corridors... hinders the expansion of partnership in this area,” and urged coordinated action to bolster the expanding Trans-Caspian International Transport Route (TITR, aka the Middle Corridor).

Chequebooks

As reported by the Havli blog on Central Asia, European investors will have to start pulling out their chequebooks if they are not to be left empty-handed in Central Asian CRM, the latest mineral rush.

“Central Asia is indeed a Klondike. For many years nobody paid any attention to rare earth and critical materials here. Oil and gas were the priority. Only recently has there been talk about attracting investment,” Kazakh political analyst Dosym Satpayev told the GyperBorei YouTube channel. “The competition has already begun.”

That theme was echoed by Temur Umarov, a fellow at the Carnegie Russia Eurasia Center in Berlin, who told RFE/RL: "Central Asia wants a bigger EU presence, but the region's leaders don't have high expectations.

"So far, the EU hasn't put enough money on the table to make them think that Europe can be this third player that allows Central Asia to rely less on Russia and China."

Returning to wider ground at the summit, Mirziyoyev noted that “the development of our multifaceted cooperation is facilitated by the profound transformation in Central Asia, which has become sustainable and irreversible thanks to common political will.”

Over the past seven years, trade turnover between the EU and Central Asia has more than doubled to €54bn. Mirziyoyev called for the momentum in commerce to be matched by institutional reforms, proposing a full-fledged Partnership and Cooperation Agreement between the regions and regular foreign ministers’ meetings to ensure coordinated responses to global and regional challenges.

Uzbekistan also offered to host the summit secretariat until the next high-level meeting and suggested launching a Central Asia–EU Inter-Parliamentary Cooperation Forum. 

The Uzbek leader also talked of an Investment Platform and Regional Industrial Park for European companies.

EIB in Tashkent

The European Investment Bank (EIB), meanwhile, is set to open an office in Tashkent to facilitate EU capital flows into the region. The EU’s lender is moving to sign four memoranda of understanding with Tajikistan, Kyrgyzstan, and Uzbekistan, allocating €365mn for sustainable transport, water management and climate resilience.

Also in expanding finance, the European Bank for Reconstruction and Development (EBRD) is preparing a €7-8bn project pipeline for Central Asia through 2027, focusing on renewable energy and critical minerals. 

Central Asia’s joint projects with European firms and banks already exceed €30bn, and the gathered leaders welcomed the mobilisation of a €10bn fund to develop sustainable transport infrastructure, including the TITR.

In energy and sustainability, Mirziyoyev reiterated the pledge to raise Uzbekistan’s renewable energy share to 54% by 2030 and called for the creation of a Central Asia–EU Partnership on Clean Energy. 

He proposed a dedicated working group on project financing and carbon credit market development.

Human capital also received attention. Mirziyoyev proposed dedicated Erasmus+ student exchange quotas for Central Asian countries, the opening of a Horizon Europe research and innovation programme office in Uzbekistan, and a new programme for cooperation in artificial intelligence, big data and space research.

Growing cultural diplomacy was reflected in the staging of the national ballet Lazgi for summit guests.

The summit took place amid notable geopolitical shifts and regional reforms. Mirziyoyev referenced recent milestones, including the resolving of the Kyrgyz-Tajik border issue, as evidence of Central Asia’s increasing stability and cohesion.

“Seven or eight years ago, there were not even conditions for this. The borders between some countries were closed. There was no trade, no transit, no business, no humanitarian exchanges. Relations were simply frozen,” he said.

In his speech, Mirziyoyev also expressed concern over the global community’s inadequate response to Afghanistan’s challenges. He called for a more proactive approach, emphasising the need to integrate Afghanistan into regional economic processes through investment, infrastructure and social sector rebuilding. Constructive dialogue with the Afghan authorities on fulfilling commitments was needed, he said.

Climate forum

The EU leaders also attended the Samarkand International Climate Forum, where Mirziyoyev addressed Central Asia's climate challenges, highlighting issues such as desertification and water scarcity and calling for cooperation with European partners.

Mirziyoyev outlined Uzbekistan's efforts to combat land degradation, including large-scale greening projects and the planting of drought-resistant plants on over 2mn hectares of desert areas in the Aral Sea region. 

He proposed an annual regional tree planting campaign, "Green Belt of Central Asia," to coincide with the Nowruz spring-time holiday.

The president also emphasised the need to back regional collaboration in water-saving technologies, proposing the establishment of a Secretariat for the EU’s "Water - Energy - Climate Change" initiative in Tashkent.

He also supported scientific cooperation, particularly through the EU’s Copernicus earth observation programme, to monitor glaciers and mountain ecosystems in the region.

Von der Leyen noted that both Central Asia and Europe are warming twice as fast as the global average and pledged European support for climate adaptation. The leaders also agreed to continue innovative approaches in water-energy cooperation to protect water resources and improve the environment of the desertified Aral Sea region. 

“Climate action is no longer a choice. It is a common priority. The world is moving fast, and those who invest in climate resilience, clean energy and smart resource management will be the leaders of tomorrow,” Costa concluded.

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