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Budapest Declaration and OTS

Foreign Policy Blogs - Wed, 18/06/2025 - 18:43

In recent years, diplomatic developments have significantly disrupted and reshaped the global trade and logistics systems that had been established over decades. One of the most impactful events in this context was Russia’s — or more precisely, President Vladimir Putin’s — decision to launch a military invasion of Ukraine, effectively sparking the ongoing Russia-Ukraine war that began in March 2022.

In response, the West — namely the United States and Western Europe — sought to impose severe economic penalties on Russia as both a form of punishment for igniting a European war and as a strategy to cripple its military and other critical sectors by cutting off financial lifelines. As part of this effort, Western Europe dap dramatically reduced its purchases of Russian natural gas and began searching for alternatives to both Russian gas and oil (it’s important to note that Russia is the world’s largest gas exporter and the second-largest oil exporter, after Saudi Arabia). Furthermore, Western countries are avoiding any diplomatic or economic engagements that might benefit Russia — including allowing goods to transit through Russian territory, which could generate revenue for Moscow through taxes.

A similar approach has been adopted toward another pariah state — the Islamic Republic of Iran. The recent war between Hamas and Israel, along with Iran’s involvement in supporting jihadist attacks and missile strikes, has led the West to double down on efforts to economically isolate Iran, much like they have with Russia.

It is precisely in this geopolitical context — where Russia and Iran have become largely untouchable for most global actors — that the “Organization of Turkic States” (OTS) has emerged. This alliance, while not radically different from the European Union in structure or vision, resembles the foundational logic behind the United States of America — only this time, among Turkic-speaking nations. Member states include Azerbaijan, Turkey, Kazakhstan, Uzbekistan, and Kyrgyzstan.

Historically, Egyptian President Gamal Abdel Nasser attempted to create a unified Arab state, based on the belief that a pan-Arab union — blessed with oil, natural resources, and control over critical chokepoints like the Suez Canal — would be geopolitically unbeatable. That vision failed, primarily because every Arab leader at the time wanted to be the one in charge. Today, the Turkic alliance avoids that trap. It is not about creating a new country, but about forming a unified bloc that empowers each member and increases their collective influence in dealing with the West and the East.

The OTS’s objective is to establish a barrier-free space for international cooperation and joint development, stretching from Western Europe to South and East Asia. Its strategic mission is to reunify the fractured Eurasian continent — which global powers have historically divided — and to restore peace as a central element in the global agenda. Unlike the failed pan-Arab unity project, which was founded on hostility toward Israel, the OTS is not built on conflict but on shared interests for regional stability and prosperity.

So what gives the OTS its strategic strength in this complex global moment? The answer lies in geography and logistics. The Turkic states control the only viable overland route for transporting goods between Europe and parts of Asia. They also serve as critical gateways for Europe to access essential natural resources — both those located within the Turkic states themselves and those that must pass through them en route to Europe. With the West refusing to collaborate with Iran and Russia, the OTS corridor — which stretches from China and Pakistan to the heart of Europe in Hungary — becomes essential.

A successful partnership between the OTS and European states could lead to uniquely accessible transport and communications corridors that connect Western Europe’s economic hubs with those in East Asia, while also linking them to the growing markets and production centers of Central and South Asia. In short, this is a win-win situation for everyone — except, of course, for Russia and Iran.

On May 21, Budapest — the capital of Hungary — hosted the latest OTS summit. Although Hungary is a European country, it holds observer status within the OTS and actively participates in its activities (it’s worth remembering that large parts of Hungary were once under Ottoman rule). There is, in fact, no significant geopolitical gap between Hungary and the Turkic states. As Europe has lost its traditional eastern routes through Russia and Iran and now faces instability along its southern borders — not to mention threats to the Suez Canal — it seems that the OTS corridor may be Europe’s only realistic path to the East.

Without it, Europe risks becoming a marginal appendage to the United States — a country skilled at rhetoric but lacking meaningful initiatives. European states have begun adjusting their foreign policies accordingly, recognizing the OTS as a key player in the emerging Eurasian order. Even the European Union was forced to accept the observer status of the Turkish Republic of Northern Cyprus in the OTS — despite longstanding opposition from Greece.

The OTS also offers political backing to Hungary against pressure from liberal elites within the EU and presents an alternative to other “pseudo-liberal” projects.

At the conclusion of the summit, the OTS issued the “Budapest Declaration,” directed at global leaders and especially those in Europe. The declaration emphasized the OTS’s vital role in securing global peace, security, and sustainable development. It reaffirmed the Turkic states’ commitment to building a reliable transportation and communication corridor linking Europe to Asia, fostering a zone of peace and development along the way. The core message was a call to overcome international divisions and construct a peace-oriented region stretching from Europe to China. However, the declaration did not shy away from defense and security issues — for example, it referenced the expansion of cooperation in the defense industry.

The OTS draws upon Turkic legacies of the past, promotes inclusivity, and is rooted in shared histories across regions such as the South Caucasus, the Balkans, the Middle East, and Eastern Europe. The Budapest Declaration underscores the “Turkic World Vision,” which affirms the value of uniting Turkic nations not only through a shared past, but through a common vision for the present and future. The vision promotes cooperation based on a shared Turkic identity, history, culture, and traditions, explicitly rejecting racist ideologies and embracing multiculturalism. The definition of a “Turkic state” is broadly interpreted — as evidenced by Hungary’s observer status.

It appears that the Turkic era is making a powerful return, echoing the days when three great Turkic empires — the Ottoman, the Mamluk, and the Mongol — dominated the Middle East, the Balkans, Eastern Europe, and Asia. History, it seems, is repeating itself.

Among all the member states of the Organization of Turkic States (OTS), one country stands out more than the rest—Azerbaijan. First and foremost, there is no doubt that Azerbaijan holds a crucial position in the emerging trade corridor the OTS is striving to establish. Alongside Kazakhstan, Azerbaijan controls a key transit route from Europe to several important regions in Asia, making its role irreplaceable. Without its cooperation, the entire trade initiative would likely collapse.

Secondly, over the past few years, Azerbaijan has gradually become one of the major transportation and logistics hubs in the wider Eurasian region. This status was acknowledged by Kazakhstan’s President, Kassym-Jomart Tokayev, who publicly thanked Azerbaijani President Ilham Aliyev for the logistical support Azerbaijan provided in boosting Kazakhstan’s oil exports. Third, Azerbaijan is the largest investor among all Turkic states, with its total investments in OTS countries exceeding 20 billion US dollars. This financial strength suggests that Azerbaijan may well be the most economically stable member of the organization—and potentially one of the most militarily capable as well.

Aside from Turkey, Azerbaijan is the only OTS member that has engaged in actual warfare in the past decade. Its conflict with Armenia led to increased military funding and the development of a highly trained army. In addition, Azerbaijan maintains exceptionally close ties with Turkey—often referred to as its “brother nation”—and with Kazakhstan, with whom it cooperates across a wide range of sectors. Taken together, these factors position Azerbaijan as arguably the strongest member of the OTS in terms of economy, security, and diplomacy. What is certain, however, is that it is one of the most dominant and influential players within the organization.

Categories: Diplomacy & Crisis News

Highlights - FISC/SEDE: The European Defence Union: Tax Matters - Committee on Security and Defence

Unterausschuss für Sicherheit und Verteidigung (SEDE) - Europäisches Parlament - Wed, 18/06/2025 - 16:34

On 25 June, from 14:30 to 16:15, the FISC Subcommittee will host a joint public hearing with the SEDE Committee on "The European Defence Union: Tax Matters". The hearing will focus on the legislative framework governing VAT exemptions for defence-related activities carried out under the EU’s Common Security and Defence Policy (CSDP).
It will examine the 2015 Council Decision granting VAT exemptions to NATO and EU agencies for defence efforts supporting the implementation of Union activities, and assess how effectively Member States are applying these provisions.

In particular, the discussion will explore the cooperation mechanisms between the European Commission, national Ministries of Finance, and Ministries of Defence in ensuring consistent and compliant implementation of the VAT exemptions. The panel will also address the operational and administrative challenges encountered in the field. The insights gathered will contribute to the broader debate on strengthening the fiscal framework underpinning European defence initiatives, including the European Defence Industry Programme (EDIP) and upcoming measures under the ReArm Europe Plan and Readiness 2030 strategy.
Source : © European Union, 2025 - EP

Categories: Europäische Union

Highlights - FISC/SEDE: The European Defence Union: Tax Matters - Committee on Security and Defence

Security and Defence Subcommittee (SEDE) - European Parliament - Wed, 18/06/2025 - 16:34

On 25 June, from 14:30 to 16:15, the FISC Subcommittee will host a joint public hearing with the SEDE Committee on "The European Defence Union: Tax Matters". The hearing will focus on the legislative framework governing VAT exemptions for defence-related activities carried out under the EU’s Common Security and Defence Policy (CSDP).
It will examine the 2015 Council Decision granting VAT exemptions to NATO and EU agencies for defence efforts supporting the implementation of Union activities, and assess how effectively Member States are applying these provisions.

In particular, the discussion will explore the cooperation mechanisms between the European Commission, national Ministries of Finance, and Ministries of Defence in ensuring consistent and compliant implementation of the VAT exemptions. The panel will also address the operational and administrative challenges encountered in the field. The insights gathered will contribute to the broader debate on strengthening the fiscal framework underpinning European defence initiatives, including the European Defence Industry Programme (EDIP) and upcoming measures under the ReArm Europe Plan and Readiness 2030 strategy.
Source : © European Union, 2025 - EP

Categories: Defence`s Feeds, European Union

How Iran Is Calculating Its War with Israel

SWP - Wed, 18/06/2025 - 15:45

Facing a massive attack on its homeland, the Islamic Republic's response has been restrained, driven by vulnerability and the need to avoid U.S. intervention.

Categories: Diplomacy & Defense Think Tank News