Start Slow to Go Fast? Unlocking EU–Central Asia Cooperation on Critical Materials - new report by Mistra Mineral researcher
A new policy paper, by Mistra Mineral Governance researcher Roman Vakulchuk, published on behalf of the Friedrich-Ebert-Stiftung | Competence Center Just Climate, explores the challenges, opportunities and progress made since strategic partnership agreements were signed by the EU with Kazakhstan and Uzbekistan, the two largest countries in Central Asia, in 2022 and 2024, respectively.
Key findings from the report
→ Slow start by the EU.
The front cover of the report. It is published by Friedrich-Ebert-Stiftung | Competence Center Just Climate.
China and the US have been active in Central Asia, while investment from the EU has been limited despite ambitious high-level declarations. Since 2022, EU firms have invested in five projects in Central Asia. In comparison, China has invested in and currently manages 25 critical materials projects in the region. In 2024, China imported 70% of all the critical raw materials extracted in Central Asia. In order to catch up with China, the EU could greatly expand its investment and help the region strengthen its critical materials governance and economic diversification.
→ Ease of doing business.
Local stakeholders find cooperation with Chinese firms easier and less bureaucratic than with their European counterparts. According to an entrepreneur in Kazakhstan, ‘going to Europe visa-wise and doing business with European partners are more challenging than with China’. The geographical proximity to China and ease of access to Chinese financial markets are further advantages of conducting business with Chinese investors. At the same time, EU investors may offer a model of creating joint ventures with local companies which is deemed attractive by Central Asian stakeholders.
→ Local content policies.
Chinese investors lag behind European and US investors in terms of promoting local content policies. Limited local content shapes local perceptions and is viewed as having an adverse effect. European firms hire 60%–70% of their workforce locally,
while Chinese firms tend to hire less than 50% of local workers when conducting investment projects in Kazakhstan and Uzbekistan. This gives a comparative advantage to European and US firms.
→ Corporate reputation.
The reputational benefits of cooperating with European and US firms are assessed as attractive. Operational transparency and high environmental standards are regarded positively in business circles and often viewed as ‘a sign of quality’. The perception of the reputational benefits gained from conducting business with Chinese firms is mixed.
→ Ease of travel for knowledge exchange.
The EU lags greatly behind China, Russia, the Gulf states and the US in how easily skilled workers from Central Asia can travel for knowledge exchange or conference visits. While EU citizens benefit from visa-free travel to the region, obtaining a Schengen visa by a skilled local professional – an engineer, university professor or private business representative – is perceived as complex and time-consuming. Individuals often obtain a single-entry visa only for the duration of a visit (e. g., a three-day single visa for a three-day conference).
→ Simplify the visa regime for skilled labour.
If the EU seeks to deepen its partnership with Central Asia in critical materials, renewable energy, science and technology, then simplifying the visa regime with the region is crucial. The EU recognises that to improve industrial competitiveness, it needs to cut red tape and adopt simplificatation measures across various industries. In recognition of visa issues, the need to negotiate a visa facilitation agreement between the EU and Kazakhstan was raised during the EU–Central Asia Summit in 2025.
→ Enhance interaction between epistemic communities.
There is a regular exchange between the EU and Central Asia at a high political level, including through the Minerals Security Partnership Forum (MSP Forum), but this interaction remains limited at the level of epistemic communities. There is a need to advance EU–Central Asia science-to-science, expert-to-expert, business-to-businessand science-to-expert-to-business interaction. This will require facilitating the visa regime and institutionalising knowledge platforms on on critical materials and broader energy transition issues.
Roman Vakulchuk is senior researcher at NUPI, the Norwegian Institute of International Affairs.