BAKU, Azerbaijan, December 25. Investing in the
Trump Route for International Peace and Prosperity (TRIPP) could
contribute to strengthening economic integration across the Turkic
region, General Director of the Turkic Investment Fund Ramil
Babayev told Trend in
an exclusive interview.
“We align our efforts with the priorities of our Member States,
including Azerbaijan and other Turkic countries. One of the most
strategic opportunities is TRIPP. This corridor is critical because
it provides direct access from Central Asia to Europe, passing
through Türkiye. By investing in this route, we can significantly
reduce transportation costs and increase intra-regional trade
volumes, strengthening economic integration across the Turkic
world”, he said.
Babayev noted that for Azerbaijan, Karabakh remains a national
priority, and that the Fund is actively discussing how it can
contribute to increasing prosperity for the region and its people.
He said there are several bankable sectors and implementable
projects in Karabakh that can drive growth and development.
In addition, he said that the Fund is exploring energy security
projects in the country to ensure stable and sustainable energy
flows across the region. Customs digitalization is another key area
of focus, as it will streamline trade processes, reduce
bottlenecks, and enhance connectivity.
“Through these initiatives, we aim to deliver tangible benefits
boosting trade, improving infrastructure, and fostering innovation
while supporting the long-term strategic goals of our Member
States,” Babayev said.
Turning to the broader role of the institution, Babayev said
that the Turkic Investment Fund is a long-awaited and
first-of-its-kind economic integration–focused financial
organization of the Turkic world, which is experiencing strong
economic growth.
“The Turkic Investment Fund represents more than a new
institution. It represents a fundamental shift in how our region is
going to build its future, which we reflected in our motto
“Integrated Turkic Prosperity,” Babayev said.
The General Director added that sustainable integrational
processes require not only socio-political alignment, but also
building close economic ties, which is then translated into capital
flows and intra-regional investments, increase in regional trade
and better connectivity, coordination at both national and regional
levels and commitment to deliver on sustainable development
objectives. According to him, this understanding is what precisely
led to the establishment of the Fund.
“The Turkic Investment Fund is to catalyze and accelerate these
processes. Connectivity and boosting intra-regional trade are
central to our work because they are essential for building
stronger economies and achieving deeper economic integration. Our
aim is to support strengthening economic ties among the Member
States by facilitating trade expansion, improving connectivity and
increased cross-border investment. We are responding to rising
expectations and advancing priority projects in the Turkic world as
our institution proceeds from establishment to operationalization
phase now and will soon commence deploying resources,” Babayev
said.
He pointed out that TIF is designed to complement, not replace,
existing national and international financing mechanisms.
“And we believe with strong backing by our Members States,
highly professional institutional capacity and sound bankability
vision, we will become trusted and reliable partner for public and
private investors and international financial institutions (IFIs),
boost capital-flows and unleash a great growth potential of our
region,” the General Director said.
Babayev noted that in 2025, the TIF adopted its policy
frameworks. Of particular importance, he said, is the Fund's core
document, the Investment Policy, which was developed to ensure it
addresses the diverse investment needs and economic specificities
of all member states.
“The investment strategy and the commencement of the operations
have been recently approved by the Board of Governors at the annual
meeting in Bishkek. TIF’s Investment Policy is now the main guide
for us to determine which sectors and projects we invest in and
support”, he said.
The General Director noted that investment proposals focusing on
physical and digital infrastructure, aimed at enhancing regional
connectivity, facilitating trade across the Turkic region and
beyond, supporting inclusive growth and MSMEs, promoting green
economy transitions and innovation, and fostering sustainable
development within Turkic countries of operation, will undergo a
multi-stage review process. This review will include, among other
things, thorough due diligence process and conformity with TIF’s
strategic objectives.
He also emphasized that each funding or investment consideration
will be subject to a rigorous appraisal, based on counterparty and
transaction-specific information, including, inter alia, sector and
country context, vulnerability assessments, risk mitigation
measures, and the formulation of a coherent investment
proposal.
“At this early stage, TIF is deliberately building a flexible
and scalable financing framework. Our ambition is to operate across
the full spectrum of financial instruments as institutional
capacity and market sophistication evolve. This spectrum begins
with debt instruments via co-financing alongside reputable
Development Finance Institutions (DFI), which remains a cornerstone
for building bankable investment portfolio. From there, over time,
we will introduce selectively more complex structured credit and
hybrid instruments, both funded and unfunded risk-sharing and
credit-enhancement structures, and other forms of investments
designed to underlying projects’ financing needs”, he said.
Babayev added that, as institutional capacity and expertise
grow, and where appropriate, the spectrum of investments will
expand to include equity instruments-particularly in high-impact
projects that support innovation, productivity growth, and regional
integration.
“As we have announced after our Board of Governors Meeting,
which was held in Bishkek on 5 December 2025, we plan to launch the
Fund’s operational activities and commence financing by the end of
the first quarter of 2026. This decision is very important for us
because it marks the Fund’s transition from its establishment phase
into operationalization of the Fund’s financing activities,” he
said.
Babayev pointed out that preparatory work on project pipelines
is ongoing, with financing activities expected to commence as the
operational framework is rolled out through 2026. Initial
consultations have also been held with several regional and
international financial institutions to lay the groundwork for
future co-financing arrangements.
“We will follow a phased approach. In the first stage, we will
focus on low-risk activities that deliver quick and concrete
results. As we expand, we will move toward larger and more complex
projects, aiming by 2030 to become a fully developed investment
platform and a reliable base for regional economic cooperation,” he
said.
Babayev noted that, in the medium term, the Fund will pursue
investment opportunities in transportation infrastructure that
connect its member states to global markets
“Among such initiatives, which can potentially yield into the
projects for TIF’s participation: China–Kyrgyzstan–Uzbekistan
railway, Zangezur Corridor (TRIPP), and other projects enhancing
capacity of the Middle Corridor, supporting regional prosperity
through investing in multimodal transportation, are strategic
corridors of interest for TIF. We also remain committed to support
building a greener future and will consider investments in
renewable energy generation, storage and transportation initiatives
within the region,” he said.
Furthermore, the General Director said that helping increase
integration of modern technologies into daily life across the
Turkic region by actively supporting IT development, digital and
innovative projects, are one of the TIF’s strategic objectives.
“Our goal is to contribute to creation of enabling environment
where these initiatives can thrive, driving digital transformation
and competitiveness. We will support increasing the global
competitiveness of Turkic tech companies helping them to scale and
succeed in international markets. Through targeted investments and
partnerships, we aim to foster innovation, strengthen digital
infrastructure, and position the Turkic region as competitive area
for technology and modern solutions”, he explained.
Babayev added that the Fund's key priority, connectivity, also
includes the digital sphere. It aims to ensure that the people and
businesses in its Member States benefit from stronger digital
infrastructure and modern technologies. By supporting digital
tools, particularly customs digitalization, e-commerce, and
cross-border innovation projects, the Fund will help these
economies remain competitive and create opportunities for future
growth.
“We need to understand that without innovation and modern
technologies, the development in the physical infrastructure will
not help us enough to reach our regional goals. For instance, after
the changing dynamics of the global politics, in 2024 alone, the
volume of cargo transportation along Trans-Caspian International
Transport route (TITR) increased by 62 per cent, reaching 4.5
million tons. According to the World Bank’s report dated November
2023, with the right level of investment, freight volumes could
almost triple 11 million tons by 2030”, Babayev noted.
Babayev emphasized that TITR has become a very important route
not only for making the global trade routes more flexible but also
imposing considerable partnership need with the regional countries
such as Kazakhstan, Azerbaijan and Türkiye. It is a multimodal
route using rail, road, and maritime transport, offering a viable
alternative to the Northern Corridor.
“Our Member States are all focusing on enhancing connectivity
but there is also a lot to do with the digitalization of the
processes, customs and all other related infrastructures within the
scope of connectivity. Advancing technological innovation and
digital transformation across the Member States is a key priority.
Our initiative to boost and help adapting modern technologies in
the Turkic region will have a strategic impact in several ways from
strengthening digital financial inclusion and fostering the growth
of digital economies; and expanding access to e-government services
and digital trade platforms, making processes more efficient and
accessible,” he said.
Moreover, speaking about plans to expand the Fund’s charter
capital, Babayev stated that the TIF's authorized capital is
currently $600 million, with expectations for future growth.
“Our Member States have made firm commitments, and we are
building on this foundation by expanding our resources through
partnerships with other stakeholders. Over the next five years,
following the establishment of a solid project pipeline, we expect
to increase our capital through share capital increases and access
to international capital markets. With stronger resources, we will
co-finance larger strategic projects and create more opportunities
to bring in new investors,” he said.
Babayev added that with the expected increase in the Fund’s
capital base, its capacity to lend and invest will grow
significantly.
“Over the next ten years, we expect stronger cross-border trade,
greater investment, and improved connectivity across the Turkic
region. TIF will play an active role in this process by mobilizing
international partners, financing larger projects, and helping
member states strengthen their global competitiveness. We are
building partnerships with international financial institutions,
governments, and private investors. Our aim is to use our capital
to bring in more funding for the projects, reduce risks for
partners, and attract new investment into priority areas,” he
concluded.
