Significance of the 3rd EU-Central Asia Economic Forum for geopolitical development in Central Asia
By Daniyar Egen | 16 December 2025
Summary
On Wednesday, 26 November 2025, the capital of Uzbekistan, Tashkent, hosted the 3rd EU-Central Asian economic forum this year. Such rapid development of multilateral relations showcases a recognition of a changing geopolitical landscape and rising competition among international actors in Central Asia.
The third economic forum gave life to new trade agreements, and critical raw material (CRM) centered deals make up three of the six agreements adopted at the forum, as the EU recognises the unused potential of Central Asia’s resources.
Competition for Central Asia’s resources creates a delicate situation where Central Asia must navigate in a new geopolitical climate, balancing between China, the European Union (EU), Russia and the United States of America as its main economic partners
On 26 November 2025, business investors, stakeholders and government representatives of 32 countries met in Tashkent, Uzbekistan, to further deepen the relations between EU and the countries of Central Asia during a 3rd economic forum this year. During 2025, “the year of Europe”, as Josef Sikela put it, the European Union and Central Asian countries aligned with the Global Gateway initiative of the EU adopted multiple agreements (bilateral and regional) with a clear emphasis on critical raw materials extraction.
The Critical Raw Materials Act of the EU, which entered into force in 2024, was adopted to meet the growing demands for rare earth metals as they are crucial for an energy transition from fossil fuels. As China is the world’s biggest rare earth exporter and covers up to 70% of the EU’s import of rare earth, it is crucial for the EU to diversify its supply sources to lessen the dependency on China and become less susceptible to geopolitical struggles, such as China’s restriction on rare earth elements exports.
In recognition of that, the European Union has been seeking new sources of raw critical materials. Central Asia has essential minerals that have not been claimed so far, largely due to the underdevelopment of the region. The region boasts high amounts of manganese and chromium, among others. Chromium estimates in Kazakhstan, for example, reach 230000 tons, a metal that is necessary for stainless steel production, with European demands reaching over 10000 tons (based on import estimates from the year 2024).
During the economic forum, three projects were developed to target the main stages of rare earth supply: locating the ores, developing the actual extraction process and ensuring their safe transportation.
The “DATA4CRM” funded with 7,5M Euros to modernise geological data and “SECURE CRM” funded with 3M Euros will ensure the development of transparent supply chains. This development will attract new technology and know-how from Europe, ensuring not only a demonstration of hard, but also soft power through collaboration, intercultural exchange and education. Introduction to mechanisms of transparent supply chains will benefit the governments in establishing such measures in their home regions, ensuring a transition to less corrupt and more stable governments.
The European Bank for Reconstruction and Development (EBRD) also funded a project “GROW CRM” with 3M Euros to develop and facilitate sustainable CRM mining in Central Asia. As a lot of rare earth elements coexist with toxic minerals, their mining is linked to overall toxicity towards humans and animals, soil erosion and water poisoning. A development of methods to ensure sustainable mining will again not only draw skills and soft power to the region, but also facilitate the adoption of environmentally cautious mining practices at the very start of the mining process.
The voices of European leaders acknowledge the importance of these trade agreements, and agree that they benefit both sides: facilitating jobs, economic and geopolitical prestige for Central Asia and securing EU’s green transition and energy security. These initiatives of the EU, however, are impeded by China’s “Belt and Road Initiative" (BRI), as it owns mining licenses, and Russia’s uranium enrichment projects.
Forecast
Short-term (Now - 3 months)
A realistic possibility that China will announce new projects focused on CRM and Russia will almost certainly continue to exert its power through political play (like the CSTO meeting in Bishkek on the 27th of November).
This will have a medium impact on Central Asian governments and their decision-making process, as the current geopolitical situation is within the predictable conditions.
Medium-term (3-12 months)
As the first EU projects almost certainly start developing, it will still have a low impact on Central Asian governments, as the results of this particular cooperation are still largely unknown.
It is also a realistic possibility that the EU will continue providing platforms for its Global Gateway in Central Asia
Long-term (>1 year)
It is likely that the Chinese and Russian governments will recognise this attempt of the EU to influence Central Asia and will retaliate with similar projects and offers.
This will have a high impact on future Central Asian governments as they will need to navigate between 3 bigger actors, while retaining their own energy security and ecological resilience, which will be put to the test with such a number of mining projects on its way.
