OTS: A strategy for unity and growth Turkic states strengthen economic ties

In a relatively short period, the member states of the Organization of Turkic States (OTS) have successfully established sustainable and practical mechanisms for regional integration, with a strong emphasis on economic cooperation. Notably, Turkic countries are collaborating in the energy sector, expanding trade and transport capacities, streamlining transit procedures, and digitizing logistics along the Middle Corridor routes. These efforts aim to create a preferential trade regime, integrate financial systems, and attract mutual investments. Many of these initiatives were discussed on October 7 in Gabala, Azerbaijan, during the 12th OTS Summit of Heads of State.

In less than five years, the member states of the Organization of Turkic States (OTS) have successfully established effective mechanisms for regional cooperation across political, humanitarian, and economic spheres, shaping the Turkic world as a new geopolitical reality. This achievement is particularly significant amid successive global economic crises and ongoing conflicts that challenge the stability of the existing world order.

“Internal political and economic stability, a strategic geographical location, positive demographics with a young population, vast potential in transport and logistics, rich natural resources, and growing capabilities in the military and defense technology sectors position the OTS as a significant actor on the global stage,” said Azerbaijani President Ilham Aliyev during the 12th Summit of the Council of Heads of State of the OTS. “Today, the Organization of Turkic States (OTS) has evolved from merely a platform for cooperation into one of the significant geopolitical centers. It is gratifying to see our Organization’s prestige grow on the international stage. Our shared historical and ethnic roots, along with common national and spiritual values, bring us together as a family.”

The foundation of this emerging regional structure is undoubtedly a strong economic base. In their integration efforts, OTS countries prioritise expanding commercial ties, establishing a preferential trade regime, reducing customs and transport tariffs, and enhancing logistical connections. Equally important are business partnerships, increased investment initiatives, and the creation of joint ventures, which are expected to become key drivers of economic growth across the Turkic states. The OTS countries are also focusing on collaborative projects in transport digitalisation, green energy development, and expanding joint investment initiatives in industry, tourism, IT, automotive manufacturing, agriculture, and the processing of agricultural raw materials.

To capitalise on these areas, the OTS member states are seeking to deepen integration in the financial sector, including plans to establish a Turkic Development Bank, as well as actively attract international financial institutions and investment companies to capital-intensive regional projects. In line with these objectives, Türkiye, Azerbaijan, Kazakhstan, Kyrgyzstan, and Uzbekistan launched the Turkic Investment Fund (TIF) in May of last year. Recently, a decision was made to increase TIF’s authorised capital to $600 million. The fund aims to finance projects in transport infrastructure, energy, sustainable agriculture initiatives, and the reconstruction of the Karabakh region. Speaking at the summit, the president emphasised that Azerbaijan has implemented numerous significant investment projects with OTS member countries, and that these efforts as a whole serve to deepen economic integration within the Turkic world.

“To date, over 20 billion U.S. dollars have been invested in the economies of our fraternal countries. The majority of these investments have been made in the Turkish economy. Additionally, Azerbaijan has established joint investment funds with Uzbekistan, Kazakhstan, and Kyrgyzstan. Through these funds, many future projects will be realized,” President Ilham Aliyev stated.

As a driver of integration within the OTS framework, Azerbaijan actively promotes the expansion of trade among the organisation’s member states. In 2024 alone, trade turnover with OTS partners reached nearly $6.9 billion, accounting for 14.5% of the country’s total foreign trade. This positive trend continued in January–August 2025, with trade turnover with OTS countries rising by 5% to $4.737 billion, representing 14.7% of Azerbaijan’s overall foreign trade.

Equally important, Azerbaijan plays a strategic role in linking the vast Caspian region with international markets through a diversified network of oil and gas pipelines. As noted by President Ilham Aliyev at the Gabala summit, Azerbaijan currently exports natural gas to 14 countries, making it the leading pipeline-exporting nation in terms of geographic coverage. Azerbaijan has also initiated projects to increase renewable energy production and supply “green” energy to Europe’s energy-deficit regions. In November of last year, during the UN climate conference COP29 in Baku, an agreement was signed with OTS participants Kazakhstan and Uzbekistan to integrate energy systems for the export of clean energy to Europe.

“Azerbaijan is also attracting significant investments in renewable energy sources, including solar, wind, and hydropower. By 2030, approximately 40% of our energy production is expected to come from renewables,” President Ilham Aliyev stated. “Currently, we are developing a green energy corridor connecting Central Asia, Azerbaijan, Türkiye, and Europe.”

Equally important is Azerbaijan’s role as a key transit hub for Central Asian countries and Türkiye. Through its territory, hydrocarbons, mineral resources, fertilisers, and agricultural products from Kazakhstan, Uzbekistan, and Turkmenistan are transported, alongside container block trains from China. Just last year, over 11 million tonnes of cargo passed through Azerbaijan.

“Azerbaijan is an active player in the East-West and North-South transport corridors, serving as a vital bridge between Türkiye and Central Asia across geographic, economic, transport, and other domains,” President Ilham Aliyev said at the summit. “Since 2022, cargo traffic through the Middle Corridor has increased by approximately 90%. Transit time along the route has significantly decreased. Assets such as the Caspian Sea’s largest trade fleet, the International Trade Port of Alat, which is expected to reach a capacity of 25 million tons per year in the coming years, the Baku-Tbilisi-Kars railway, 9 international airports, the region’s largest cargo airline, and other factors have contributed to establishing Azerbaijan as a major international transport hub.”

The head of state emphasised that an important outcome of the Washington Summit held in August was the agreement to open the Zangezur Corridor, which holds significant value as a new transport artery and serves as a second route for both the Middle Corridor and the North–South Corridor.

The significant potential of the Turkic countries in transport and transit was also discussed during the meeting of the Council of Foreign Ministers (CFM) of the Organization of Turkic States held on October 7 in Gabala. “From a geographical perspective, the OTS member states form natural transport, logistics, and transit routes, acting as a bridge between the continents of Europe and Asia. The implementation of the TRIPP route will ensure seamless connectivity between western Azerbaijan and Nakhchivan via the Zangezur Corridor. This route is also an integral part of the Middle Corridor and will represent an important step in diversifying communications in our region,” said Azerbaijan’s Foreign Minister Jeyhun Bayramov at the CFM meeting.