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Russia Losing Central Asian Energy Market — Intelligence

Russia is losing its position as a key player in the Central Asian energy market, according to Ukraine’s Foreign Intelligence Service (SZRU), UATV English reports. The intelligence agency says that Central Asian countries, with support from the World Bank, are launching a project to create a unified regional energy space, which is set to reshape the electricity market across the region. The REMIT program, designed for a 10-year period, предусматривает integration of hydropower capacities in Kyrgyzstan and Tajikistan with thermal generation in Kazakhstan, Turkmenistan, and Uzbekistan, as well as solar and wind power plants, based on the principle of energy synergy. According to the SZRU, the total cost of the system exceeds $1 billion, with $143 million already financed. The intelligence service noted that until recently Russia was considered one of the key players in Central Asia’s energy market and sought to position itself as a coordinator of regional integration processes. Under Moscow’s patronage, the Eurasian Economic Union (EAEU) promoted the idea of creating a joint energy center in the region. However, Russia’s war against Ukraine, combined with international sanctions and a lack of modern technologies among the main EAEU beneficiaries — Russia and Belarus — has effectively derailed these plans. As a result, the start of work originally scheduled for 2025 has been postponed until at least 2027. Meanwhile, Arzybek Kozhoshev, Minister for Energy and Infrastructure at the Eurasian Economic Commission, admitted that even 2030 may only be a tentative launch date for the project. Kozhoshev added that the prospects of the Russian-Eurasian energy hub remain uncertain due to the absence of a free gas market in Russia and significant regulatory differences among participating countries. “Against this backdrop, the REMIT initiative appears more pragmatic and institutionally robust. According to World Bank estimates, the cumulative economic effect of its implementation by 2050 could reach $15 billion, making it one of the largest infrastructure shifts in Central Asia in recent decades,” the SZRU said. As previously reported, Russia’s oil exports are becoming increasingly difficult, while growing volumes of crude without final buyers point to a systemic crisis in Russia’s oil sector caused by sanctions pressure. The post Russia Losing Central Asian Energy Market — Intelligence appeared first on Freedom.