2024-04-30 19:45:49
Source: Trend International Information Agency
In the current geopolitical situation, the leading countries of the world, in particular the United States and the European Union, are waging a serious struggle for access to critical raw materials (rare metals). In this direction, the European Union has already begun to deepen cooperation with a number of states. One of them is Uzbekistan.
On April 5, 2024, a memorandum of understanding was signed between Uzbekistan and the European Union on the development of sustainable value chains in the field of critical raw materials. This agreement is expected to influence the development of Uzbekistan’s mining industry, as well as allow the European Union to obtain minerals such as copper and molybdenum. At the next stage, the parties will work together to create an operational roadmap.
Minister of Investment, Industry and Trade of Uzbekistan Laziz Kudratov and Executive Vice-President of the European Commission Valdis Dombrovskis
In recent years, visits by representatives of European states, in particular France and Germany, to the countries of Central Asia, and primarily to Uzbekistan, have become more frequent. For example, French President Emmanuel Macron’s visit to Uzbekistan on November 2, 2023 covered strategic issues. And Germany’s economic interests lie in increasing the number of large companies operating in Uzbekistan and expanding new investment projects. As a result of the last meeting between Olaf Scholz and Shavkat Mirziyoyev, an agreement on trade, investment and technology worth $9 billion was signed.
For the countries of Central Asia, which this time have become independent participants in the historical “Great Game,” there are now ample opportunities. But since the interests of the powers in the region differ, this also poses additional risks for independent states. Here, one of the factors influencing the geopolitical balance is the availability of rare metal reserves. Because there is a serious standoff between major powers over critical raw materials, a situation that is expected to continue into the future. Europe’s attempts to reduce its dependence on critical raw materials from conflict-ridden Russia, and the fact that China is one of the world’s consumers in this area, are a challenge for officials in Brussels.
Why is Uzbekistan, which has critical raw materials, becoming a strategic partner of the EU?
Critical row materials, or rare metals, are used in many strategically and critically important aircraft components, mercury vapor lamps, lasers, microwave filters, battery electrodes, nuclear batteries, etc., as well as in the production of renewable energy equipment (solar panels). , wind turbines, electric vehicles). It is more profitable for Europe to use deposits that have already been explored and confirmed during Soviet times than to explore new deposits.
One of the reasons for the West’s increased attention to Uzbekistan is its rich copper deposits. At the same time, since the EU’s efforts to achieve climate goals are under threat, official Brussels is trying to find alternative ways out.
According to confirmed information from open sources, deposits of rare metals are located in China, India, Russia and Brazil. According to Western press reports, China maintains its dominance in the production of rare metals and creates competition. Considering this as a threat, the European Union in this regard pays special attention to new agreements and projects with states located in the Central Asian region.
European Commission President Ursula von der Leyen said in one of her speeches in Parliament: “Lithium and rare earths will soon become more important than oil and gas. Our demand for rare earths alone will increase fivefold by 2030. We must avoid becoming re-dependent as we are They did it with oil and gas.” Thus, Europe is undoubtedly in search of a new and reliable supplier of these resources. With all this in mind, Central Asia is attracting attention as an emerging global player, with Uzbekistan as well as Kazakhstan welcoming an influx of foreign investors into the country.
Transport logistics is of strategic importance
In the transportation of raw materials vital for the Western world, the topic of stable transportation routes naturally becomes especially relevant. In this regard, the most suitable and safe option may be to supply critical raw materials from Central Asia to Europe through Azerbaijan. The parties have not yet made official statements in the press on this issue. If we take into account the ongoing global changes in Eurasia, we can see that the traditional line through the Russian Federation has already lost its relevance due to the ongoing war in Ukraine.
On the other hand, it is obvious that the transport corridor that could pass through Iran will not be sustainable, given the historically unpredictable nature of relations between official Tehran and the West. Thus, the export of rare metals in a western direction will most likely be carried out within the framework of the Middle Corridor project, also known as the Trans-Caspian International Transport Route. And in this case, the role and importance of Azerbaijan as a transit country, stable, reliable and possessing the necessary infrastructure capabilities, increases, and official Baku supports this strategic project.
Thus, sustainable export of raw materials vital for Europe from the countries of Central Asia in a western direction can be carried out precisely through Azerbaijan.