The formation of a new trilateral format between Azerbaijan, Turkmenistan, and Uzbekistan is set to boost Hungary’s role as the hub for the transportation of goods and energy in Central and Eastern Europe (CEE).
The summit that took place on August 22, 2025, in Turkmenbashi between President Shavkat Mirziyoyev of Uzbekistan, President Ilham Aliyev of Azerbaijan, and the National Leader of the Turkmen People, Chairman of the Halk Maslahaty, Gurbanguly Berdimuhamedov, effectively formed a new trilateral to bring benefits for the countries of the Silk Road region and their close partners. The summit considered important issues facilitating regional energy and transportation projects that have the potential to significantly change the European energy market and the southern route of the Central Asian section of the Trans-Caspian corridor.
Hungary’s relations with Turkic countries on critical projects in energy, both green and traditionally sourced, as well as in trade and diplomatic spheres, put it in a unique position to become the hub between the EU and Turkic countries.
It is no coincidence that the summit was held in Turkmenbashi, home to one of the largest ports on the Caspian Sea. The active utilisation of transport and logistics connections between the Port of Turkmenbashi and the Port of Baku was one of the central topics of the discussions. Here, the connection through Uzbekistan and its China–Kyrgyzstan–Uzbekistan railway project paves the way for the future activation of the China–Kyrgyzstan–Uzbekistan–Turkmenistan–Azerbaijan route of the Middle Corridor. Hungary’s close ties with the countries of the newly emerged trilateral make it a great hub for further distribution of goods from Hungary upon reaching the European market.
It is important to add here that all countries of this trilateral, along with Hungary, are part of the OTS. In this framework, Azerbaijan and Uzbekistan are members, while Hungary and Turkmenistan are observer countries, making Hungary the only country that is both a member of the EU and an observer of the OTS.
Recent geopolitical developments, such as the Washington Declaration signed by the United States, Azerbaijan, and Armenia, alongside the prospects of a final peace treaty and the aim for the establishment of the Trump Route for International Peace and Prosperity (TRIPP), have further strengthened the Trans-Caspian Corridor. These steps solidify its status as the safest and most viable trade route between the EU and Central Asia.
Energy cooperation will be another crucial pillar of this trilateral format. Discussions cover both natural gas exports and renewable energy projects. The decline of Russian natural gas imports by European countries has driven up prices due to reliance on more expensive alternatives. A cost-effective solution lies in the integration of Turkmen gas into European markets, achievable through the construction of the Trans-Caspian Pipeline.
Already, Hungary became the first country in Europe, in August 2023, to sign a natural gas import deal with Turkmenistan. With growing U.S. interest in the pipeline project, its realisation appears increasingly feasible. The Southern Gas Corridor, to which the Trans-Caspian Pipeline aims to be connected, comes through various interconnectors to Hungary, hence adding further potential to Hungary’s role as the energy distribution hub for Central and Eastern Europe (CEE).
Equally important is the green energy agenda of the new trilateral. In May 2024, Azerbaijan, Kazakhstan, and Uzbekistan agreed to build a high-voltage cable across the Caspian Sea to transfer renewable energy generated in Central Asia to Azerbaijan. From there, it could be connected to the Black Sea cable system, scheduled for completion by the end of this decade. This two-part initiative linking the Caspian and Black Seas could dramatically increase the flow of green energy to European markets.
Within the new trilateral framework, discussions are also expected on Turkmenistan’s participation in this project. It is critical to mention here that this green energy project leads to Hungary as the final destination, from where the distribution of green energy to the wider European consumer market is envisioned, thus adding further strategic importance for Hungary.
Another factor enhancing the trilateral format is the strategic overlap with the International North-South Transport Corridor (INSTC). Initially, the INSTC envisioned three main routes – through Azerbaijan, across the Caspian Sea, or via Turkmenistan.
However, with Russia’s recognition of the Taliban government in Afghanistan, an additional route through Uzbekistan has emerged. Considering the increasing polarisation of the global economic system and the widening rift between Russian and European markets, the INSTC has gained importance as a means of linking Russia with India and broader South Asia.
In this light, the trilateral between Azerbaijan, Turkmenistan, and Uzbekistan will serve as the platform to establish favourable and mutually beneficial terms for the countries of the Silk Road region.
The formation of the new trilateral between Azerbaijan, Turkmenistan, and Uzbekistan will serve as the joint platform to set beneficial terms in trade along the Middle Corridor and the INSTC for the countries of the Silk Road region. It will also serve as an important platform to facilitate energy projects leading into Hungary. As such, the pragmatic policy-making of Hungary, through its establishment of close partnerships with the rising countries of the Silk Road region, now contributes to it becoming a hub for goods and energy distribution in CEE and wider Europe.
