This past week, regional headlines were led by Brussels, where Uzbekistan and the European Union signed a long-awaited Enhanced Partnership and Cooperation Agreement (EPCA) and used an EU–Uzbekistan business forum to unveil a pipeline of new projects worth over €10 billion. Connectivity stayed high on the agenda as the EU announced it would table a new cooperation proposal for the Trans-Caspian, or Middle Corridor, at a Tashkent investors’ forum, while Kazakhstan and Azerbaijan agreed to deepen energy and transport cooperation along the same route. Central Asian governments also moved on macroeconomic management and financial credibility: Uzbekistan kept its policy rate at 14 percent as inflation eased and gold exports reached a new record, while Moody’s upgraded Kyrgyzstan’s credit outlook to Positive. Kazakhstan’s growth prospects remained robust in IMF projections and were backed by heavy telecoms investment and nationwide internet-access plans. At the same time, regional security cooperation continued through joint drills and a Samarkand meeting on military-technical ties, and new initiatives in logistics, waste management, and digital skills pointed to an increasingly dense web of sectoral cooperation across the region.

Diplomacy and connectivity

Uzbekistan and the European Union formally entered a new stage in their relationship by signing an Enhanced Partnership and Cooperation Agreement (EPCA) in Brussels. The agreement replaces the 1996 Partnership and Cooperation Agreement and is presented by both sides as the most advanced legal framework the EU has with any Central Asian state. The EPCA is framed around trade, investment, green and digital transformation, connectivity, and people-to-people ties, and it sits alongside a broader “new era of economic partnership” narrative that emphasizes regulatory convergence and more predictable conditions for European investors. The signing coincided with a high-level EU–Uzbekistan business forum in Brussels, which highlighted Uzbekistan’s rapid economic growth and reform agenda and gave Mirziyoyev a platform to pitch further European participation in privatization, infrastructure, and green energy projects. (Development Strategy Centre, Gazeta UZ, European Council, Daryo (1) (2))

Trade ties were a central theme of the Brussels program. Uzbekistani and EU officials underlined that bilateral trade turnover has roughly doubled in recent years, and President Mirziyoyev called for a broader and more diversified trade structure that goes beyond raw materials and textiles. With Uzbekistan having completed bilateral negotiations with the European Union on its accession to the World Trade Organization (WTO), coverage stressed that the EU is now one of Uzbekistan’s top trade partners and a key destination for its gold exports and manufactured goods, while the Uzbek side presented new guarantees on rule of law, dispute settlement, and competition policy aimed at attracting medium-sized European firms. (Gazeta UZ, EU Commission, Daryo)

The Brussels forum also showcased a concrete project pipeline. Officials announced that Uzbekistan and Europe intend to implement new projects worth over €10 billion in the coming years, spanning renewables, energy efficiency, transport, and industrial modernization. These announcements are meant to turn high-level political goodwill into bankable deals and to anchor Uzbekistan more firmly in European supply chains, particularly in green technologies and higher value-added manufacturing. (Kun UZ, Daryo)

The EU’s engagement with the wider region’s connectivity agenda also gained definition. Qazinform reported that Brussels will present a new cooperation proposal on the Trans-Caspian, or Middle Corridor, at a Trans-Caspian Transport Corridor Investors and Connectivity Forum in Tashkent on 27 November. The proposal is expected to outline how EU institutions and member states could support infrastructure upgrades, port and ferry capacity, and regulatory harmonization along the route that links Central Asia to the South Caucasus and Europe. This positions Tashkent as a key venue for translating the EU’s Global Gateway and connectivity rhetoric into specific financing and policy initiatives for Central Asia. (Kazinform, RFERL)

In parallel, Kazakhstan and Azerbaijan continued to tie their own bilateral agenda to the Middle Corridor. During President Ilham Aliyev’s state visit to Astana, the two countries agreed to double mutual trade and expand cooperation in energy, transport, and logistics. Astana and Baku highlighted joint work on Caspian ferry services, port infrastructure, and oil and gas transit, with one Qazinform report flagging plans for around 62 million US dollars in new ferry investments to strengthen the corridor’s maritime segment. Astana Times coverage framed the visit as consolidating a strategic partnership where Kazakhstan’s resources and geographic position complement Azerbaijan’s transit and port capabilities. (Times CA, Astana Times, Euro News)

Kazakhstan also worked on the eastern flank of its transit role. Kazinform reported that Kazakhstan and China have raised capacity at their border crossings by about 23 percent, which is vital for keeping east–west cargo moving as trade volumes grow. The two sides discussed further steps to remove bottlenecks at rail and road checkpoints, including digitalization of customs procedures and expanded terminal capacity. These operational measures complement the political push around the Middle Corridor and signal that Almaty is trying to match its diplomatic ambitions with concrete throughput gains on the ground. (Kazinform)

Tajikistan meanwhile kept up its own external outreach. Asia-Plus reported that Dushanbe and Tehran are preparing a meeting of their intergovernmental commission that will take place in Jeddah, with discussions expected on trade, energy, transport, and labor migration. Tajik officials presented the commission as a tool to expand exports and to attract Iranian investment into hydropower and industry, while also coordinating positions on regional security and transit. (Asia Plus)

Economic policy, trade, and finance

Uzbekistan’s Central Bank kept its main policy rate unchanged at 14 percent following its October meeting. According to Daryo’s English service, the decision reflected an assessment that inflationary pressures are gradually easing and that current tight monetary conditions remain adequate to steer inflation back toward target. The Central Bank pointed to slower food-price growth and prior rate hikes as key factors, and signaled that future adjustments will depend on both domestic demand and external risks. The decision gives policymakers some room to continue using fiscal and industrial policies to support growth without immediately stoking price pressures. (KUN UZ)

At the same time, Uzbekistan’s external accounts were buoyed by a new high in gold exports. Another Daryo report noted that the country exported 9.9 billion US dollars’ worth of gold in the first nine months of 2025, which is a record level for that period. Gold remains a key anchor for Uzbekistan’s foreign-exchange reserves and balance-of-payments stability, and the figure underscores how global gold prices and production decisions continue to shape the country’s macroeconomic room for maneuver, even as it pushes to diversify exports into manufactured goods and services. (Daryo)

Kyrgyzstan received a modest but symbolically important boost to its financial profile when Moody’s upgraded the outlook on its sovereign rating to Positive. Daryo, citing the rating agency, reported that the change reflects improved fiscal metrics, better debt dynamics, and progress on structural reforms, even though the rating level itself remains in non-investment-grade territory. For Bishkek, a Positive outlook can support efforts to attract development finance and private capital for infrastructure and energy projects, and it signals that reforms are being noticed by international markets. (Times CA, 24.KG)

Kazakhstan’s macro outlook remained relatively bright despite recent monetary tightening. Astana Times summarized new IMF projections that expect Kazakhstan to remain Central Asia’s fastest-growing economy in 2025, supported by hydrocarbons, mining, and a gradual expansion of non-oil sectors. Growth is forecast to moderate somewhat compared to earlier years, but to stay comfortably above many peers, especially if reforms in digitalization, logistics, and green energy deliver productivity gains. The IMF’s view provides a reassuring backdrop as Kazakhstan adjusts to a higher interest-rate environment and manages exchange-rate pressures. (Astana Times)

Trade and logistics were another regional focus. Daryo reported that Eurasia’s warehouse capacity has risen to around 58 million square meters, driven by Russia and growing Central Asian markets. Alongside this, the Eurasian Development Bank (EDB) and IBC Global announced the creation of a Central Asia Warehousing Association to bring together logistics operators, developers, and financiers. The initiative is intended to improve standards, share data, and coordinate investments in storage and distribution hubs, which are increasingly important as the region tries to position itself as a bridge between Asian and European value chains. (Daryo (1) ; (2))

Digital transformation and infrastructure

Beyond the high-level EPCA, EU actors continued to invest in Central Asia’s digital transformation. Daryo reported that the EU and UNDP launched a program to upgrade AI and data science skills among ICT specialists in Uzbekistan, linking capacity-building in machine learning and data analytics to the country’s broader Digital Uzbekistan 2030 strategy. The initiative is meant to strengthen public-sector digital services and support private innovation in areas such as fintech, e-government, and industry 4.0. (Daryo)

At the same time, Uzbekistan moved to improve basic connectivity. A separate Daryo article noted that satellite internet services are planned to roll out nationwide in 2026, complementing terrestrial networks and helping to reach remote settlements. Officials framed satellite connectivity as a way to ensure that rural communities and small businesses can access digital services, online education, and e-commerce, which is crucial for reducing regional disparities and making the most of the EPCA’s digital and trade provisions. (KUN UZ, Daryo)

Kazakhstan’s telecoms sector also featured prominently in domestic coverage. Astana Times reported that Kazakhstan has invested more than 1 trillion tenge in its telecommunication industry, as the government and operators expand fiber networks, upgrade mobile infrastructure, and prepare for wider 5G deployment. Officials highlighted targets for greater domestic production of telecoms equipment and for stronger cyber resilience as traffic grows. (Astana Times, KazInform) In a related announcement, Kazakhstan set the goal of ensuring nationwide internet access by 2027. According to the digital development ministry, all cities, towns, and rural settlements are expected to have broadband connectivity within that timeframe, while mobile operators will introduce Wi-Fi calling and gradually phase out legacy 3G networks to improve quality and spectrum efficiency. These steps are part of a broader push to close the digital divide and to make digital services and e-government platforms accessible across the country, which is increasingly important as public services and business processes move online. (Kaz Inform, Astana Times)

Security and defense cooperation

Central Asian countries strengthened military-technical cooperation in Samarkand at a meeting that brought together senior defense and security officials. Participants discussed joint procurement, maintenance, and modernization of equipment, as well as information exchange on emerging threats and technologies. While details were limited, the format adds another layer to the region’s dense web of security platforms, which now combine CSTO drills, CIS security-chief meetings, and various bilateral and minilateral contacts. (Daryo)

In the meantime, CSTO peacekeeping drills opened in Tajikistan with the launch of the “Indestructible Brotherhood-2025” and “Barrier-2025” exercises, bringing together about 1,500 troops and more than 200 units of military equipment from Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. CSTO Secretary General Imangali Tasmagambetov said the exercises are taking place amid rising geopolitical tensions and ongoing security risks in Central Asia, which require the organization’s peacekeeping forces to maintain readiness for operations both within the CSTO area and, if mandated, under UN authority. He added that over the course of the drills, participants get to practice planning and conducting peacekeeping missions, deploying radiation, chemical, biological, and medical units, and carrying out post-conflict tasks such as securing checkpoints, escorting convoys, liberating settlements, and providing humanitarian aid. Military experts noted that counter-terrorism remains central to the drills and that evolving threats in the region, including the possible use of unconventional weapons by non-state actors, continue to underscore the strategic importance of such exercises. (CSTO)

Environment and urban services

Kyrgyzstan’s cooperation with development banks produced a tangible green-infrastructure project. It is reported that Bishkek and the Eurasian Development Bank agreed to partner on a public-private partnership for sustainable waste management. The project is expected to upgrade collection, sorting, and disposal systems, reduce environmental damage from landfills, and potentially support waste-to-energy solutions. For Kyrgyzstan, which faces constrained municipal budgets, the PPP model and MDB support are seen as key tools for modernizing urban services without overburdening public finances. (AkChabar, Daryo)