Bekkul Dzhekshenkulov Government Relations & Investments

Sector Reviews

12 Billion Euros for the Middle Corridor: Where Does Kyrgyzstan Fit?

The European Union intends to mobilise up to 12 billion euros in public and private investment for the Middle Corridor. For Kyrgyzstan, the key question is how the country can position itself within the emerging transport architecture linking China, Central Asia and Europe.

Energy & Infrastructure

The European Union is taking transport connectivity with Central Asia to a new level.

On 16 September, European Commission President Ursula von der Leyen announced a new international initiative intended to connect Central Asia and the South Caucasus more directly with the European market through the so-called Middle Corridor.

Under the Global Gateway strategy, the EU intends to help mobilise up to 12 billion euros in public and private investment. The stated objective by 2030 is to diversify transport routes, triple trade flows and significantly reduce cargo delivery times.

For Central Asia, this is an important signal. For Kyrgyzstan, the more specific question is where the country can position itself in the emerging transport configuration linking China, Central Asia and Europe.

Freight train in Kazakhstan on the Middle Corridor
Freight train in Kazakhstan. Photo: World Bank.

What is the Middle Corridor?

The Middle Corridor, also known as the Trans-Caspian route, is a network of transport links connecting Asia and Europe through Central Asia, the Caspian Sea, the South Caucasus and onward through Turkey or the Black Sea region.

It is not a single railway line. A modern transport corridor includes railways and roads, ports, logistics terminals, rolling stock, border infrastructure, digital documentation, customs procedures and compatible transport standards.

The principal operating axis of the Middle Corridor today runs through Kazakhstan to the Caspian Sea, then through Azerbaijan and Georgia, and onward to Europe via Turkey or the Black Sea.

But the European approach is broader than one transit line. The European Commission includes all five Central Asian states in the geography of the initiative: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The stated ambition is to create a modern and competitive network capable of linking Europe and Central Asia in about 15 days.

Where does Kyrgyzstan fit?

Kyrgyzstan has no direct access to the Caspian Sea and therefore does not lie on the main Trans-Caspian axis.

That does not mean, however, that the country is outside the emerging transport system.

Kyrgyzstan’s importance may increase as a connecting link between China’s transport network, Central Asian markets and westbound routes.

This is already reflected in specific infrastructure projects. The EBRD, for example, has provided up to 44.2 million euros for the rehabilitation of part of the Issyk-Kul ring road. The Bank explicitly links the project to the development of the Trans-Caspian corridor, Kyrgyzstan’s transit potential and regional connectivity with Kazakhstan.

Another indication came at the EU-Central Asia Investors Forum in Brussels in January 2024, where one session was specifically devoted to the Kyrgyz Republic’s role in strengthening connectivity between Europe and Central Asia. Among the projects presented by the Kyrgyz side was the Torugart-Makmal-Jalal-Abad railway, a core segment of the future China-Kyrgyzstan-Uzbekistan route.

Kyrgyzstan’s participation in the wider transport system is therefore already taking practical shape.

The China-Kyrgyzstan-Uzbekistan railway changes the picture

The single most important factor that could significantly alter Kyrgyzstan’s transport role is the construction of the China-Kyrgyzstan-Uzbekistan railway.

After decades of discussion, the project has moved into the implementation phase. Its significance goes well beyond the three participating countries.

The World Bank, in its work assessing the route’s viability, treats the Uzbekistan-Kyrgyzstan-China railway as a potentially key element of the southern branch of the Middle Corridor. At the same time, the Bank points to substantial technical, financial and institutional risks, including high costs and uncertainty over future freight volumes.

That is precisely why the railway should be viewed not only as a standalone regional project, but also as a possible link in a broader Eurasian transport system.

I explored this in more detail in an earlier analysis on how the China-Kyrgyzstan-Uzbekistan railway could reshape Kyrgyzstan’s economic geography, including the role of Makmal, logistics hubs and investment zones along the route.

If the new railway provides a reliable connection from China’s rail network through Kyrgyzstan and Uzbekistan to westbound corridors, the southern part of Central Asia will gain an additional overland route toward the Caspian region, the Caucasus, Turkey and European markets.

This is the context in which the European Commission’s latest announcement becomes particularly relevant for Kyrgyzstan.

12 billion euros is a mobilisation target, not money already allocated

The headline figure needs to be interpreted carefully.

The European Union has not already allocated 12 billion euros to specific transport projects in Central Asia.

The Commission’s formulation is more precise: Global Gateway is intended to help mobilise up to 12 billion euros in public and private investment. In other words, the figure refers to a total volume of capital expected to be raised with the participation of European institutions, development banks and private investors.

A detailed list of projects, country allocations and the final financing structure has not yet been published.

This distinction matters because large transport commitments for Central Asia have been announced before.

At the EU-Central Asia Investors Forum in January 2024, international partners announced 10 billion euros in commitments for sustainable transport connectivity in the region. In April 2025, the first EU-Central Asia Summit presented a 12 billion euro Global Gateway package covering not only transport, but also critical raw materials, digital networks and the water-energy-climate nexus.

For that reason, the new 12 billion euros figure should not simply be added to earlier announcements. A clearer picture will emerge once individual projects and financing sources are specified.

Central Asia’s transport geography is changing

More important than the headline figure itself are the structural changes taking place across the region.

Central Asia is gradually developing several interconnected routes between China, the Caspian region and Europe.

Kazakhstan already occupies the central position on the main Middle Corridor axis and is expanding rail and port capacity. Uzbekistan is developing its own international transport links. Kyrgyzstan is gaining a new window of opportunity through the China-Kyrgyzstan-Uzbekistan railway, road modernisation and the development of border and logistics infrastructure.

This is gradually changing the meaning of Kyrgyzstan’s geography.

The country could move from being a relatively isolated inland market to becoming one of the connecting elements of a regional transport network.

But the existence of a railway alone will not guarantee that outcome. An international corridor becomes economically significant only when supporting infrastructure develops around it, border crossing times fall and sufficient freight volumes emerge in both directions.

For Kyrgyzstan, the objective is more than transit

The economic effect of a transport corridor is not limited to transit fees collected from cargo moving across the country.

Modern international corridors generate logistics terminals, warehouses, industrial zones, processing facilities, service companies and new export chains.

For Kyrgyzstan, therefore, the more important indicator will not simply be the number of containers crossing the country, but the volume of economic activity created around the route.

Logistics and transshipment hubs, industrial sites along the railway, energy and utility infrastructure, access roads and modern customs procedures all become particularly important.

This is where much of the value added can be created.

Infrastructure without bottlenecks

There is another critical point.

Even a modern railway will not be competitive if cargo loses time at border crossings.

That is why the European concept of the Middle Corridor focuses not only on physical infrastructure, but also on customs digitalisation, harmonised documentation, shorter border-processing times and greater interoperability between transport systems.

The World Bank likewise treats better border management, logistics performance and digital data exchange as necessary conditions for increasing traffic along the Middle Corridor.

For Kyrgyzstan, this is especially relevant.

The railway provides the physical infrastructure. The next task is to make the route fast, predictable and commercially attractive to shippers.

A new opportunity for Kyrgyzstan

The European Commission’s announcement shows that Central Asia is increasingly being viewed as an important part of the transport system connecting the major markets of Asia and Europe.

For Kyrgyzstan, this is happening at a particularly significant moment.

The construction of the China-Kyrgyzstan-Uzbekistan railway, road modernisation and growing interest from international financial institutions in the Middle Corridor are gradually becoming part of a single transport picture.

The 12 billion euros figure by itself will not transform that picture.

But the willingness of the European Union, international financial institutions and private capital to invest in routes through Central Asia shows that the region’s importance in Eurasian logistics is continuing to grow.

For Kyrgyzstan, the key issue is to further develop the areas where new transport infrastructure can translate into practical economic value and stronger integration into international trade, production and logistics chains.

Share this article

Discuss a project