Caspian Region and Türkiye: Infrastructure Investments, Transnational Energy Supply and Alternative Trade Routes

Türkiye has gained considerable importance for the countries of the "Greater Caspian Region" against the backdrop of the Hormuz crisis and geopolitical changes.

1. The "Middle Corridor" as a global trade alternative

• Türkiye is investing massively in the so-called Middle Corridor. This route connects China with Europe via Central Asia, the Caspian Sea, the South Caucasus and Türkiye. • Geopolitical driver: Due to crises in the Middle East as well as the ongoing sanctions against Russia and Iran, this route is gaining enormous strategic importance. Central Asian states are increasingly seeking transport routes that bypass Iran and Russia. • Logistical advantage: The transport time for goods from China to Europe via this corridor has been reduced from over a month to around two weeks.

2. Development into a central energy hub (gas & oil)

• Caspian resources for Europe: In view of European efforts to distance themselves from Russian gas, Türkiye is strengthening its role as an energy hub. Via the Trans-Anatolian Pipeline (TANAP), natural gas from Azerbaijan (Caspian Sea) reaches Southern Europe directly via Türkiye. • Gas pipeline projects: Türkiye also plans to receive and redistribute even more gas from the Caspian region – particularly from Turkmenistan – in the future. • Investment offensive: In order to modernise grids and grid infrastructure, Türkiye has launched investment programmes worth billions, from which international (including German) energy companies also want to benefit.

3. Ecological and logistical challenges

• Falling water level in the Caspian Sea: A serious problem for the economy and transport logistics is the rapidly falling level of the Caspian Sea. • Infrastructural bottlenecks: The shrinking water level is already leading to capacity bottlenecks at ports and is affecting shipping in the Caspian section of the Middle Corridor. The littoral states, above all Azerbaijan, are therefore calling for closer monitoring and joint expert groups for crisis management.