WB forecasts growth in trade between Azerbaijan, Georgia, Kazakhstan, and EU 

Total trade from Azerbaijan, Georgia, and Kazakhstan increases by 37 percent, mostly driven by Kazakhstan’s exports, while trade between these three countries and the EU increases by 28 percent, Report informs, citing the World Bank.

According to the WB, the Middle Corridor (MC) is a multimodal transport corridor connecting China to Europe, which has been receiving elevated attention following Russia’s invasion of Ukraine: “The MC links China and Kazakhstan by rail through Dostyk or Khorgos/Altynkol, crosses Kazakhstan by rail to the Aktau Port, crosses the Caspian Sea to the Port of Baku/Alyat, and Azerbaijan and Georgia by rail to then either continue by rail to Europe through Türkiye or crossing the Black Sea. Due to inefficiencies and infrastructure gaps in Türkiye, the Black Sea route is currently preferred by operators.”

“Russia’s invasion of Ukraine brought a new perspective for the MC as an alternative corridor to diversify trade routes and build economic resilience, decreasing dependency on corridors through Russia. Container traffic on the MC increased by 33 percent in 2022, compared to 2021. However, as shippers shifted unprecedented volumes to the MC in the immediate aftermath of the Russian invasion of Ukraine, the limits of the Corridor were quickly apparent. While the MC’s technical operational capacity was not reached, border crossings, transshipment, and coordination issues led to very high transport delays and a shift back to alternative corridors. Leading to a 37 percent decrease in container traffic in 2023 (8 months) compared to the same period in 2022,” the bank said.