Europe - Caspian Briefing, October 20 , 2026

Energy and Economy

Türkiye Opens EU-Backed Railway Link to Boost Europe–Central Asia Connectivity

Türkiye inaugurated the 153-kilometre Çerkezköy-Kapıkule railway section near its border with Bulgaria on 9 October, marking a step towards strengthening transport links between Europe and Central Asia via the Middle Corridor. Turkish President Recep Tayyip Erdoğan and EU Enlargement Commissioner Marta Kos attended the opening of the new section, part of the larger Halkalı-Kapıkule railway connecting Istanbul to Bulgaria. Supported by €275 million in EU grant financing, the project is the largest infrastructure investment under EU-Türkiye cooperation and the first concrete result of the EU's cross-regional Connectivity Agenda. The railway is expected to increase annual freight capacity from 1.5 million to 9.5 million tonnes and reduce freight travel times from 8.5 to 3.5 hours, strengthening the Middle Corridor's western connection to European markets.

Source: The Astana Times, European Commission

Trans-Caspian Fibre-Optic Cable Expected to Begin Operations by Year-End

Azerbaijan's Deputy Minister of Digital Development and Transport, Rashad Hasanov, announced on 6 October that the Trans-Caspian fibre-optic cable connecting Sumgait and Aktau is expected to become operational by the end of 2026. The approximately 380-kilometre cable, which has reached the Kazakh coast, forms part of the Digital Silk Road initiative to strengthen high-speed data connectivity between Europe and Asia. Azerbaijan is also pursuing plans to establish a regional artificial intelligence data centre in the Alat Free Economic Zone.

Source: Trend

Kazakhstan and UK Discuss Expanding Investment, Energy and Technology Cooperation

Kazakh President Kassym-Jomart Tokayev met UK Minister of State for Trade Lord Anas Sarwar in Astana on 7 October to discuss expanding bilateral cooperation in energy, transport and logistics, digitalisation and artificial intelligence. Tokayev highlighted the UK's position as a major trade and investment partner, with bilateral trade increasing by 83 percent in 2025 to more than $1.6 billion and over 500 British companies operating in Kazakhstan. The discussions followed the recent ratification of the UK-Kazakhstan Strategic Partnership and Cooperation Agreement, which covers trade, investment, energy, critical minerals and education. Both sides also highlighted opportunities in innovation and critical minerals, building on a bilateral cooperation roadmap agreed earlier in 2026.

Source: The Times of Central Asia

Kazakhstan's Grain Exports to Europe Face Russian Rail Bottlenecks

Kazakh grain exporters are facing disruptions to shipments to Europe after Russian Railways rejected requests to transport grain through Russia to Estonian ports in October, citing insufficient rail capacity. The affected routes connect Kazakhstan to the Estonian ports of Muuga and Sillamäe and are particularly important for exports of high-value wheat and oilseed flax to European markets. The disruption comes as Russia redirects more grain towards its Baltic ports amid difficulties with Black Sea shipping. Kazakhstan's railway operator is negotiating with Russian counterparts to restore access, while exporters are considering alternative routes. However, industry representatives estimate that shipping via the Middle Corridor through Azerbaijan and Georgia costs approximately twice as much, highlighting persistent logistical and commercial barriers to diversifying Kazakhstan's European export routes. 

Source: The Times of Central Asia

Belgian Royal Visit Highlights Growing Kazakhstan–Europe Cooperation

Belgium's King Philippe and Queen Mathilde undertook their first state visit to Kazakhstan from 11-14 October, accompanied by a 110-member delegation of government officials, business representatives and academics. During talks in Astana, President Kassym-Jomart Tokayev and King Philippe discussed expanding cooperation in transport and logistics, critical minerals, energy and digital technologies, adopting a joint statement recognising the strategic importance of the Middle Corridor. Belgium has invested more than $15 billion in Kazakhstan since 2005, while bilateral trade reached $582.4 million in 2025. The two sides also identified opportunities for cooperation in mineral processing, renewable energy, artificial intelligence and port logistics, including potential links between Belgium's Port of Antwerp-Bruges and Kazakhstan's Caspian ports. The visit also produced a roadmap for foreign ministry cooperation covering 2027–2029. 

Source: The Astana Times

Politics and Security

UK and Azerbaijan Agree on Text of Strategic Partnership Agreement

The UK and Azerbaijan have finalised the text of a new Strategic Partnership Agreement, according to UK Minister of State for Trade Lord Anas Sarwar, speaking at the eighth meeting of the bilateral Intergovernmental Commission on Trade and Economic Cooperation in Baku on 6 October. The agreement is expected to cover defence, security, innovation, economic growth, energy, education and infrastructure, reflecting efforts to broaden bilateral relations beyond their longstanding focus on energy. During his visit, Lord Sarwar also met Azerbaijan’s President Ilham Aliyev to discuss expanding bilateral trade, investment and economic cooperation, including the role of British companies in Azerbaijan. Lord Sarwar said the two governments intended to establish a working group to begin implementing the partnership ahead of its formal signing by the countries' leaders. 

Source: Trend, Embassy of Azerbaijan in the UK

Azerbaijan Invited to Italy's MED Dialogues for First Time

Azerbaijan has been invited to participate as a guest for the first time at the MED Dialogues, an annual conference organised by Italy's Ministry of Foreign Affairs and the Institute for International Political Studies (ISPI). This year’s edition is scheduled for 19-21 November in Naples, Italy. The invitation reflects expanding diplomatic and economic engagement between Italy and Azerbaijan, traditionally centred on energy cooperation but increasingly encompassing investment, industrial development, critical minerals and technology. Recent developments in the bilateral relationship include SOCAR's acquisition of a controlling stake in Italian fuel retailer Italiana Petroli and cooperation agreements with Eni covering biofuels, hydrocarbons and the energy transition. Italian and Azerbaijani officials have also discussed opportunities in artificial intelligence and industrial cooperation, while Italy increasingly views Azerbaijan as a partner in Europe-Asia connectivity. 

Source: Agenzia Nova