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Trade in Eurasia: how the war in Ukraine transforms the Middle Corridor

The war in Ukraine has transformed trade in Eurasia, particularly through the expansion of the Middle Corridor (Trans-Caspian transport route), which connects China to Europe. This 6,500-kilometer route has become more important since Russia's full-scale invasion of Ukraine, which destabilised international supply chains and created new geopolitical challenges.

Previously, the main overland route between China and the European Union relied on Russian railways. However, sanctions and logistical complexities have compelled freight companies to seek alternative paths.

The Middle Corridor, once considered less attractive due to high costs and infrastructure issues, is now experiencing growth: freight volumes increased from 350,000 tons in 2020 to 3.2 million tons in 2022. It is expected that by 2030, this volume could triple, reaching 11 million tons.

Nevertheless, challenges remain, including insufficient infrastructure and long wait times at borders and ports. The future of the Middle Corridor heavily depends on China's involvement; without its freight, the development of the route will be difficult.

The European Union is also actively investing in infrastructure in Central Asia and the Caucasus, enabling countries like Georgia and Kazakhstan to collaborate on improving coordination and reducing trade barriers.

Source: rus.ozodi.org

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