100
challenges are as Kazakhstan, Uzbekistan, and Tajikistan would prefer to enter the
conflict between Russia and West do not. In the political sphere but also within the
organization are the same kind of polarization. So that one axis around Russia and
China. So that the SCO is not an organization (www.iuvmpress.com 2017).
According to Professor Yelena Kalyuzhnova, the SCO could potentially play
quite a significant role in Caspian energy development. “As far as I know, active
work is underway to combine two large projects: the economic zone of the Silk
Road and cooperation within the framework of the Eurasian Economic Union on the
one hand, and Russia’s plans to expand the transport infrastructure in the east of the
Russian Federation on the other” (Author’s interview with Yelena Kalyuzhnova 2017).
All this will have a profound impact on the Caspian region. In 2015, Kazakhstan
ratified the:
“Agreement between the Governments of the Member States of the Shanghai Cooperation
Organization on the creation of favorable conditions for international road transport.” The
purpose of this Agreement has been to promote international road transport between SCO
member states. The fulfillment of the terms will facilitate freight transport on agreed routes
between China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, based on
quota permit system. There are six routes in the agreement, four of which cross the territory
of Kazakhstan. Terms for the opening of these routes are to be established no later than
2020. (Author’s interview with Yelena Kalyuzhnova 2017)
New Silk Road Policy (One Belt, One Road)
In May 2017, the presidents of 29 countries gathered in Beijing to take part in the
Silk Road Summit. The crucial summit was held under the wording; “A Generation,
One Way: Cooperation for Common Welfare,” and envisioned a China devoting
huge resources to infrastructure projects in Asia, Africa, and Europe (www.dw.
com 2017).
The modern Silk Road project, presented by Chinese leader Xi Jinping in the
name of the “One Belt, One Road” strategy in 2013, has posed a serious economic
breakthrough for the country, extending its trade routes to the West by land and sea.
All the countries located on the historic Silk Road trade route have been invited to
take part in the project, with Beijing promising 300 billion dollars of investment
within its scope (www.dw.com 2017).
The estimated annual investment for the upcoming period is around $125 billion.
China set up the Silk Road Economic Zone Fund in 2014 and has allocated $40 billion in funds for the project. To support the project, the Asian Infrastructure
Investment Bank was founded with $100 billion investment in November 2014.
Turkey was also a founding member of this bank (www.dw.com 2017). While China
has been ruled according to the decisions of a nominally communist leadership
since 1949, the last 30 years have seen it promote a Western model of liberal trade
which has resulted in sustained economic growth. As apparent in the Silk Road
project today, it is according to the latter framework that “investment funds” are to
3 International Context of the New Era and the Caspian Sea Region
challenges are as Kazakhstan, Uzbekistan, and Tajikistan would prefer to enter the
conflict between Russia and West do not. In the political sphere but also within the
organization are the same kind of polarization. So that one axis around Russia and
China. So that the SCO is not an organization (www.iuvmpress.com 2017).
According to Professor Yelena Kalyuzhnova, the SCO could potentially play
quite a significant role in Caspian energy development. “As far as I know, active
work is underway to combine two large projects: the economic zone of the Silk
Road and cooperation within the framework of the Eurasian Economic Union on the
one hand, and Russia’s plans to expand the transport infrastructure in the east of the
Russian Federation on the other” (Author’s interview with Yelena Kalyuzhnova 2017).
All this will have a profound impact on the Caspian region. In 2015, Kazakhstan
ratified the:
“Agreement between the Governments of the Member States of the Shanghai Cooperation
Organization on the creation of favorable conditions for international road transport.” The
purpose of this Agreement has been to promote international road transport between SCO
member states. The fulfillment of the terms will facilitate freight transport on agreed routes
between China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, based on
quota permit system. There are six routes in the agreement, four of which cross the territory
of Kazakhstan. Terms for the opening of these routes are to be established no later than
2020. (Author’s interview with Yelena Kalyuzhnova 2017)
New Silk Road Policy (One Belt, One Road)
In May 2017, the presidents of 29 countries gathered in Beijing to take part in the
Silk Road Summit. The crucial summit was held under the wording; “A Generation,
One Way: Cooperation for Common Welfare,” and envisioned a China devoting
huge resources to infrastructure projects in Asia, Africa, and Europe (www.dw.
com 2017).
The modern Silk Road project, presented by Chinese leader Xi Jinping in the
name of the “One Belt, One Road” strategy in 2013, has posed a serious economic
breakthrough for the country, extending its trade routes to the West by land and sea.
All the countries located on the historic Silk Road trade route have been invited to
take part in the project, with Beijing promising 300 billion dollars of investment
within its scope (www.dw.com 2017).
The estimated annual investment for the upcoming period is around $125 billion.
China set up the Silk Road Economic Zone Fund in 2014 and has allocated $40 billion in funds for the project. To support the project, the Asian Infrastructure
Investment Bank was founded with $100 billion investment in November 2014.
Turkey was also a founding member of this bank (www.dw.com 2017). While China
has been ruled according to the decisions of a nominally communist leadership
since 1949, the last 30 years have seen it promote a Western model of liberal trade
which has resulted in sustained economic growth. As apparent in the Silk Road
project today, it is according to the latter framework that “investment funds” are to
3 International Context of the New Era and the Caspian Sea Region