Belt And Road Weekly Investor Intelligence #101

Posted by Reading Time: 3 minutes

Tuesday, October 4, 2022  

Compiled by Chris Devonshire-Ellis 

The most significant news this week is the final completion of the 4-lane INSTC highway, which links Iran’s Caspian Sea and Persian Gulf Ports. Iran is also planning a Free Trade Zone at Kish Island, near to Dubai. 

China is continuing its strong connectivity with the Middle East and Central Asia, while a BRI spin off is tourism development in the Kyrgyz mountains. Both China and Russia have commenced a large satellite co-ordination and surveillance project involving three cities in each country. Russia also continues its trade development in Central Asia. Other Central Asian-Middle East connections are developing while Russia displays surprising EU trade figures.    

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CHINA  

China To Begin Direct Flights To Uzbekistan (Silk Road Briefing)   

China-Uzbek trade has been growing, with Chinese exports to Uzbekistan increasing by 27.6% between July 2021 and July 2022 to US$554 million. China sees Uzbekistan as a regional hub to ultimately reach markets in Central Asia and to the Middle East.

China & Russia Deploy Mutual Satellite Navigation Systems (Silk Road Briefing)

Six sites in China and Russia to jointly provide cooperative navigation, communication and surveillance systems.

CENTRAL ASIA  

Kazakhstan-Kyrgyzstan Highway Route Confirmed (Silk Road Briefing)  

Project to boost Issyk Kul Lake regional tourism.

Russia To Begin Bilateral Trade With Afghanistan (Russia Briefing)  

Agreement to provide grain and energy supplies.

Saudi Arabia & China’s Silk Road Fund Invest In Uzbekistan Gas Industry (Middle East Briefing)  

Saudi Arabia’s ACWA Power and China’s Silk Road Fund have signed a share purchase agreement for the 1.5 GW Sirdarya combined cycle gas turbine facility in Uzbekistan.

St. Petersburg Develops Trade Ties with Turkmenistan (Russia Briefing)   

Among the main areas of partnership were energy, transport and communications, construction, road transport infrastructure and shipbuilding, investment and digitalization. At the same time, interaction in the construction of smart cities is of particular importance.

MIDDLE EAST   

Turkiye And China Focus On Developing The Middle Corridor (Silk Road Briefing)  

Alignment between the BRI and Caspian corridors has become a priority.

Iran Completes Four Lane INSTC Highway Between Caspian Sea and Persian Gulf Ports (Silk Road Briefing)  

The final section of the road from Badroud to Kashan in Central Iran has been completed as part of the corridor that will connect Tehran to Bandar Abbas.

Iran To Launch International Stock Exchange At Kish Island Free Trade Zone (Middle East Briefing)   

Iran is preparing to launch an international stock exchange at the Kish Island Free Zone by the year end.

Turkiye-Turkmenistan Flights Resume After Two And A Half Years (Middle East Briefing) 

The resumption has some symbolism as it reunites two Turkic countries, both of which are members of the Turkic Council and is vying for regional influence between the Middle East and Central Asia.

UAE Strengthens Economic Cooperation With Kazakhstan (Middle East Briefing)   

Billions of dollars of investment projects being discussed while bilateral trade increases 50%.

RUSSIA 

Russia-European Union Bilateral Trade Increased 30.1% In 7M 2022 (Russia Briefing) 

Sanctions have had an undeniable impact, but not in the manner the EU had intended. While EU exports to Russia declined 33% during the 7 months of 2022, amounting to just €34.1 billion, EU imports from Russia surged by 69.9% up to €137.3 billion. The decline of the value of the Euro against the Ruble has also had a negative impact on the European Union’s ability to compete. In January 2022 the Euro was valued at 85 Rubles, by October 3 it was valued at 58 Rubles to the Euro.


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Dezan Shira & Associates provide business intelligence, market research, legal, tax and compliance issues for foreign investors throughout Asia, and have 28 offices across the region. We are members of the Leading Edge Alliance, a network of related firms with offices throughout the world. For assistance with Belt & Road Initiative research, please contact us at silkroad@dezshira.com or visit us at www.dezshira.com. To subscribe to our Belt & Road Initiative portal, please click here.