The Trans-Caspian Corridor: Financial Risk Mitigation for Unlocking EU Connectivity with the Greater Caspian Region and Central Asia
Examining the financial mechanisms underpinning the European Union’s engagement in Central Asia, this Policy Brief focuses on the Trans-Caspian Transport Corridor (TCTC) as a strategic infrastructure and trade initiative. It analyses how instruments such as the European Fund for Sustainable Development Plus (EFSD+), the European Investment Bank (EIB), and the Multilateral Investment Guarantee Agency (MIGA) are deployed to de-risk private investment, foster sustainable development, and strengthen regional connectivity. By assessing both the opportunities and challenges of EU-backed financing, the study highlights how coordinated investment, regulatory frameworks, and risk mitigation strategies can enhance economic integration, diversify supply chains, and support the EU’s broader geopolitical and green-transition objectives in the Greater Caspian Region.