Georgia and Uzbekistan: Partnership for the Development of the Middle Corridor and Access to the Black Sea

Irakli Kobakhidze has paid a two-day official visit to Uzbekistan, during which he will hold meetings with President Shavkat Mirziyoyev, Prime Minister Abdulla Aripov, as well as the Speaker of the Legislative Chamber of the Oliy Majlis and the Chairman of the Senate. During the talks with President of Uzbekistan Shavkat Mirziyoyev, the sides discussed political relations between the countries and opportunities for further deepening of trade and economic cooperation.
Particular emphasis was placed on the subjects of connectivity and interaction between Georgia and Uzbekistan in the context of the Middle Corridor project. The Prime Minister of Georgia presented a series of projects aimed at enhancing the transit capacity of the country, emphasising the attractiveness of Georgia's investment climate. In this regard, the potential for investment in sectors such as tourism, energy, real estate, production, logistics and the IT industry was discussed. The prospects for expanding cooperation in tourism, education, culture and sports were also explored. A significant portion of the discussions focused on the enhancement of interaction between the two nations within the framework of international and multilateral agreements. The proceedings encompassed a review of the outcomes of collaborative endeavours, including the inauguration of direct air travel, the establishment of a digital banking institution of Georgian-Uzbek origin, and the organisation of cultural events, such as the Days of Uzbek Culture in Tbilisi. Additionally, the Georgian Prime Minister extended an invitation to Uzbek entrepreneurs to invest in the Georgian economy, while also encouraging Georgian businesses to explore investment opportunities in Uzbekistan.
In a recent development, Georgian First Deputy Prime Minister Levan Davitashvili and Uzbek Deputy Prime Minister Jamshid Khodjaev engaged in diplomatic discourse in Tashkent, with a focus on the enhancement of economic relations between the two nations. During the meeting, the two sides contemplated potential areas for future collaboration, including the establishment of a trade and economic working group and the expansion of direct air links. It was noted that in recent years there has been a positive trend in bilateral trade, as evidenced by the following data: a 40% increase in trade turnover between the countries, a 23% increase in the number of Uzbek tourists in Georgia, and an increase in the volume of cargo traffic. Despite these positive trends, economic cooperation between Uzbekistan and Georgia is still at a relatively modest level, but has significant potential for development. There is an expressed interest on the part of Uzbek businesses in the Georgian market, particularly in the sectors of agriculture, textiles and construction materials. In turn, Georgia has indicated a desire to procure Uzbek products, including cotton, fruit and vegetables. Uzbek companies are also considering investments in Georgian logistics centres, tourism and the energy sector.One of the key areas of cooperation is transport and logistics, with the Middle Corridor (Trans-Caspian International Transport Route) playing a strategic role in linking Asia and Europe. The route under discussion traverses Uzbekistan, Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia, subsequently continuing on to Turkey and Europe. Uzbekistan is allocating substantial resources to the development of this route, a strategy that is intended to facilitate the diversification of its export routes and the reduction of its reliance on conventional logistics routes. For Georgia, the Middle Corridor represents a significant opportunity to consolidate its position as a regional transit hub.
In 2023, plans were announced to increase cargo traffic between Uzbekistan and Georgia via Azerbaijan, with the transport of cotton, metals and agricultural products being the primary focus. The development of infrastructure and the simplification of customs procedures could result in a substantial increase in the volume of traffic along this route. For Uzbekistan, access to the Black Sea coast via Georgia is of strategic importance in terms of economy, transport and geopolitics. As a landlocked country, Uzbekistan faces restrictions in international trade. The utilisation of Georgian ports, such as Poti and Batumi, and the future port of Anaklia, holds significant potential as pivotal points for Uzbek exports to Europe, the Middle East, and other regions. The employment of TRACECA (Transport Corridor Europe-Caucasus-Asia) facilitates the diversification of Uzbekistan's logistics routes, thereby reducing its reliance on other transit countries. The Black Sea ports offer avenues for the access of new markets for Uzbek goods, including textiles, agricultural products, chemicals, and minerals. Conversely, Georgia has the potential to function as a pivotal logistics hub for Uzbek imports. Investments in Georgian port infrastructure, logistics centres and warehousing facilities would engender long-term economic benefits for both countries.
Azerbaijan and Kazakhstan are notable cases in point, with Georgia playing a pivotal role in their economic development through its ports, facilitating the export of their products. Turkey, another significant partner of Uzbekistan in the Black Sea region, has the potential to further strengthen cooperation by developing transport routes through Georgia. Georgia's offer to Uzbekistan extends beyond traditional economic and logistical cooperation, encompassing promising areas such as tourism, the IT sector, education, and culture. Uzbekistan stands to benefit from an active presence in the Georgian market, as well as from the potential for strengthening ties with other countries in the Black Sea region, including Turkey, Ukraine and Romania. The successful realisation of these opportunities is predicated on systemic cooperation at the level of business, state structures and civil society. The development of Uzbek-Georgian partnership has the potential to contribute not only to the economic growth of the two countries, but also to the strengthening of regional stability in Central Asia and the Caucasus.
Gulnara Safarli

SR-CENTER.INFO