A Trilateral Gas Union: Risks and Benefits for Central Asia

Policy Briefs

27 February, 2023

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A Trilateral Gas Union: Risks and Benefits for Central Asia

There are no major alternatives to natural gas to ensure the stable and steady development of Uzbekistan’s economy and society.

The idea of a new “gas union” was floated at a very consequential time, amid an unusually harsh winter in the region. Since the second half of November, several Central Asian countries have experienced unprecedented energy deficits and natural gas shortages. This coincided with a snap presidential election in Kazakhstan. So, it was during Kazakh President Kassym-Jomart Tokayev’s first foreign visit — to Russia — after beginning his second term that the idea of a “trilateral gas union” was aired in late November.

As press secretary for the Kazakh leader Ruslan Zheldibay commented: “…the talks between the presidents of Kazakhstan and Russia in the Kremlin focused on the creation of a ‘trilateral gas union’ between Russia, Kazakhstan, and Uzbekistan with the purpose of coordinating their actions in order to transport Russian gas through the territories of Kazakhstan and Uzbekistan.”

Over the next few days, the proposal was elaborated upon by Kremlin spokesman Dmitri Peskov, who talked about the creation of a joint company that would manage energy infrastructure. “The proposal implies the creation of a certain legal entity for cooperation between these three countries, and for infrastructure development, then for foreign markets,” said Peskov.

This statement suggested Russia’s desire to expand its natural gas export routes in the direction of Central Asia and perhaps partially substitute for the losses of the European export market