The Shanghai Cooperation Organisation, Eurasian Economic Union, Combine Forces On Energy & Logistics

The Shanghai Cooperation Organisation (SCO) and the Eurasian Economic Commission (EEC) are to expand cooperation in the energy and transport sectors, following a working meeting between Arzybek Kozhoshev, the Minister of Energy and Infrastructure of the EEC and T.R, Midhun, the Deputy Secretary General of the Shanghai Cooperation Organisation (SCO) on September 9, in Beijing.

The EEC is the governing body for the Eurasian Economic Union (EAEU) whose members include Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. It is a common free trade area, extending from Eastern Europe to Western China. They are also all involved with the Shanghai Cooperation Organisation.

Kozhoshev noted the key role of energy in the dynamically developing processes of Eurasian integration within the EAEU and other international associations. He also discussed with Midhun the ongoing work on the formation of common markets for energy resources of the EAEU.

In accordance with the Memorandum of Cooperation between the EEC and the SCO Secretariat dated September 17, 2021, a draft joint action plan is due to be approved, after which both associations will work more closely together.

Kozhoshev stated that “The EEC is closely monitoring the activities of the SCO. An important area of work is the development of energy projects, including the modernisation and construction of interconnected energy, transport, and logistics infrastructure. The issues of gas and oil transportation, as well as ensuring free access to energy resources, are among the SCO’s priorities. This is very close to what we are doing as part of the formation of common EAEU energy markets.”

Kozhoshev and Midhun discussed cooperation between the EAEU and the SCO in developing new approaches to energy conservation and energy efficiency, as well as renewable energy development.

In addition, it was noted that the EAEU and the SCO attach special importance to the development of transport corridors. One of the priority areas of cooperation is the development of interconnectedness and the creation of efficient transport corridors.

Kozhoshev said that “Since 2024, the EAEU member states and the EEC have started implementing a comprehensive plan for the development of Eurasian transport corridors. The share of Eurasian transport corridors accounts for about 70% of the volume of transit traffic in the EAEU. The EEC considers it important to increase the effectiveness of coordination of efforts with relevant international organisations and associations, as well as international and regional financial institutions for the development of transport and infrastructure, multimodal transportation, and containerisation of goods.”

At the meeting, proposals were made to hold joint events in the EAEU-SCO format on the development of transport and energy infrastructure, as well as mutual participation in international events, forums, conferences, and meetings of relevant SCO working bodies and the Eurasian Economic Commission.