The SCO Summit in Bishkek:

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CWA # 2267, 6 September 2026

The World This Week

The SCO Summit in Bishkek:

NIAS Global Politics Team

TWTW Takeaways
The SCO Summit in Bishkek:
Four takeaways on rejecting sanctions on Iran, de-dollarisation, and emphasis on territorial integrity

Sreemaya Nair

During 31 August to 01 September, the 26th SCO Summit was held in Bishkek, Kyrgyzstan. The summit brought together leaders of all 10 member states alongside observer states and dialogue partners such as Türkiye and Mongolia, with UN Secretary-General António Guterres also in attendance. The summit concluded with the adoption of the Bishkek Declaration, marking the organization’s 25th anniversary and reaffirming its role as an alternative centre of political and economic coordination in a multiorganization. During the summit, President Xi declared that the ”trend toward a multipolar world is irreversible,” while PM Modi emphasised a vision of ”Security, Connectivity, and Opportunity.” Host President Japarov highlighted the philosophy that” unity is the basis of well-being” and called for the organization to remain free of bloc politics. The summit was held against the backdrop of the SCO’s 25th anniversary, the ongoing conflict in West Asia, and a growing push by Global South countries to create alternative forms of international interaction.

The following are four major takeaways from the SCO summit:
1. Member states condemn and reject unilateral sanctions on Iran
In the joint Bishkek Declaration, member states strongly condemned the military strikes on Iranian territory carried out by the US and Israel as violations of international law. The leaders expressed deep condolences over the death of Iran’s former supreme leader Ali Khamenei in early 2026. Additionally, the summit explicitly defended Iran’s rights to a peaceful nuclear program under the Nuclear Non-Proliferation Treaty (NPT) and rejected unilateral coercive sanctions that contradict United Nations and World Trade Organisation rules.

2. Iran and Russia call for de-dollarization and financial independence
Deepening economic integration and bypassing Western-dominated financial structures were central themes of the summit. Iran and Russia spearheaded proposals to establish a Shanghai Development Bank (or SCO Development Bank), which would use national currencies for capital and operate independently of financial systems that “weaponize” economic tools. Russian President Vladimir Putin highlighted that over 98% of mutual trade settlements between Russia and other SCO members are already processed using local currencies rather than the US dollar.

3. Multiple states take stance on terrorism and security “double standards”
The Bishkek Declaration asserted a firm commitment to combating the “three evils” of terrorism, separatism, and extremism, specifically declaring that” double standards” in the fight against terrorism are completely unacceptable. Member states called on the international community to actively block the cross-border movement of terrorists and reject the exploitation of extremist groups for political ends. Operationally, the summit approved regulations for the Universal Centre for Countering Challenges and Threats to the Security of SCO Member States and endorsed programs to combat drug trafficking and narco-terrorism up to 2030.

4. India pushes for English as an official language and territorial integrity, proves successful
In a major institutional shift championed by India, English was officially added as an official and working language of the SCO, alongside Russian and Chinese. On connectivity, while leaders supported trans-Eurasian infrastructure developments, such as the USD 4.7 billion China-Kyrgyzstan-Uzbekistan railway project, PM Modi and the SCO Charter emphasised a crucial condition: that all connectivity initiatives must strictly respect the sovereignty and territorial integrity of countries.

Sreemaya Nair is a postgraduate student at the Department of Defence and Strategic Studies, University of Madras, Chennai. She is also a Research Assistant at the National Institute of Advanced Studies (NIAS).

TWTW Profile
The SCO Summit 2026:
Who said what

Sreemaya Nair

Sadyr Japarov, President, Kyrgyzstan
From 31 August to 01 September, Kyrgyzstan’s President, Sadyr Japarov, hosted the 26th annual meeting of the SCO in Bishkek under the theme "25 Years of the SCO: Together for Sustainable Peace, Development, and Prosperity.” He called for the rapid operationalisation of the Tashkent-based Universal Centre for Countering Security Threats and the Anti-Drug Centre in Dushanbe, Tajikistan, to enhance regional security. On the economic side of things, Japarov pressed for proper action to launch the long-negotiated SCO Development Bank, formally offering Bishkek as its headquarters and inviting members to utilise Kyrgyzstan's Tamchy Special Financial Investment Territory for joint ventures. He also highlighted the China-Kyrgyzstan-Uzbekistan (CKU) railway as a transformative corridor and cautioned that unequal access to technology must not create new global divisions.

Xi Jinping, President, China
On 01 September, China’s President, Xi Jinping, addressed the summit, focusing on transitioning the SCO toward "higher-quality development" and guiding global reform. He introduced a four-point proposal for the bloc: putting development first through inclusive economic globalisation, taking security as a key goal, cementing everlasting people-to-people ties, and striving for more equitable global governance. To substantiate these aims, Xi pledged concrete Chinese contributions, including establishing a China-SCO port economic cooperation centre in Tianjin, implementing 100 technology projects, launching an international AI application cooperation centre, and expanding photovoltaic and wind capacity in partner nations. Speaking at the "SCO Plus," an extended meeting of the Shangai Corporation Organisation, Xi declared the rise of the Global South and the trend toward a multipolar world is irreversible.

Vladimir Putin, President, Russia
On 01 September, Russia’s President, Vladimir Putin, highlighted the SCO's 25-year evolution into an independent, influential centre of a multipolar world, accounting for nearly half of the global population and over one-third of global GDP. He supported the institutional package amending the SCO Charter and the launching of the Universal Security and Anti-Drug Centres. Putin emphasised the rapid expansion of commercial ties within the bloc, noting that Russia's trade with SCO nations exceeded USD 400 billion, with national currencies used in over 98 per cent of mutual settlements. He strongly advocated for the financial independence of the proposed SCO Development Bank, arguing it must remain insulated from the financial systems of Western nations that weaponize economic tools for unilateral advantage. Recalling that 01 September marked the anniversary of the start of WWII, Putin urged members to prevent a return to the global practice of instigating armed conflicts. In his bilateral meeting with India’s Prime Minister Narendra Modi, Putin stated that Russia is actively moving along a path toward ending the conflict in Ukraine and seeking a peaceful, lasting settlement.

Narendra Modi, Prime Minister, India
On 01 September, India’s PM Modi, reiterated India’s vision for the SCO from last year, based upon on three key pillars: Security, Connectivity, and Opportunity. Under the security pillar, he issued a stern message on counterterrorism, urging the bloc to dismantle the "entire ecosystem" of terror financing, recruitment, radicalisation, and safe havens. He asserted that "double standards" are unacceptable and demanded a clear message to states utilising terrorism as state policy that it cannot be a strategic asset. Regarding connectivity, Modi maintained that projects must strictly respect the sovereignty and territorial integrity of all nations—refusing once again to endorse China's Belt and Road Initiative (BRI) . Lastly, under the opportunity pillar, he advocated for youth-focused programs and announced that India would host the inaugural edition of the SCO Civilisation Dialogue.

Masoud Pezeshkian, President, Iran
On 01 September, Iran’s President, Masoud Pezeshkian, expressed gratitude to the SCO member states for collectively condemning the military strikes on Iranian territory in the final Bishkek Declaration and expressing condolences for the tragic death of Supreme Leader Seyyed Ali Khamenei. Pezeshkian warned the United States that negotiation and diplomacy are meaningless without good faith and respect for commitments, pointing to repeated US violations of the Islamabad MoU. On the practical side, Pezeshkian proposed concrete economic alternatives, including joint payment mechanisms, alternative financial networks, trade and investment insurance, and the creation of an SCO energy consortium to help member states navigate geopolitical and economic pressures.

Shehbaz Sharif, Prime Minister, Pakistan
On 01 September, Pakistan’s PM Shehbaz Sharif, proposed an action plan centred on "Connectivity, Innovation, and Shared Prosperity" upon its rotational chairmanship next year. Sharif placed a strong emphasis on water security, declaring that shared water resources must never be weaponised, coerced, or exploited for leverage, and called for unconditional adherence to water treaties in both letter and spirit. On regional security, he highlighted Pakistan’s heavy sacrifice of over 90,000 lives and USD 150 billion in fighting terrorism. He warned that lasting peace will remain out of reach if terrorist groups continue to use Afghan soil to attack neighbouring states. Sharif defended Pakistan's trilateral Mecca Joint Defence Agreement, also known as the Makkah Pact, as purely defensive and non-divisive. He also highlighted Pakistan's role as a trusted mediator in regional de-escalation, pointing to its facilitation of the Islamabad MoU between the US and Iran. On the developmental agenda, Sharif proposed the establishment of a sovereign AI infrastructure and governance framework and pushed for the quick operationalisation of the SCO Development Bank.

Aleksandr Lukashenko, President, Belarus
On 01 September, Belarus’ President, Aleksandr Lukashenko, presented a highly proactive stance on the role of the bloc in global affairs. He congratulated Kyrgyzstan on its UN Security Council seat. Lukashenko strongly backed President Xi’s view that no major global decisions should be made without SCO approval. He complained that the organization had remained silent when Western sanctions were imposed on member states and when unprovoked military aggression occurred against Iran, urging the SCO to move beyond "agreements of intentions" to concrete collective actions. Lukashenko promoted the joint development of a "Eurasian Charter of Diversity and Multipolarity in the 21st Century".

Shavkat Mirziyoyev, President, Uzbekistan
On 01 September, Uzbekistan’s President, Shavkat Mirziyoyev, focused on long-term integration, proposing the launch of a new strategic blueprint titled "SCO 2040: A Space for Shared Development". To benefit regional entrepreneurs and investors, he proposed the development of an SCO Industrial Cooperation Map—a single digital platform integrating special economic zones, production chains, and logistics. He called on the Council of Heads of Government to assemble a pipeline of joint transport, energy, and digital infrastructure projects. On the climate front, he advocated for a unified SCO initiative on food, water, and energy security, proposing a SCO technical cooperation programme on water and energy efficiency till 2035. Additionally, he urged the revival of dialogue with Afghanistan as a fundamental condition for regional security.

Kassym-Jomart Tokayev, President, Kazakhstan
On 01 September, Kazakhstan’s President, Kassym-Jomart Tokayev, emphasized that the SCO continues to operate outside the logic of military-political blocs, aligning instead with the non-confrontational "Shanghai Spirit". He expressed concern that regional conflicts were extending beyond immediate zones and disrupting global shipping, energy, and transport. To build tangible economic ties, Tokayev proposed establishing SCO cross-border trade zones at existing border cooperation centers to test simplified trade, digital transit, and payment mechanisms. He supported the creation of the SCO Development Bank and offered a rival bid for Kazakhstan to host its headquarters in Astana. On environmental security, he called for the establishment of an International Water Organization and an SCO Water Issues Analysis Centre.

Emomali Rahmon, President, Tajikistan
On 01 September, Tajikistan’s President, Emomali Rahmon, supported the anti-drug track, noting that Tajik-based regulations for the executive committee of the SCO Anti-Drug Centre in Dushanbe would institutionalize the fight against synthetic narcotics.

TWTW Note
The US-Venezuela Oil Agreement:
Realignments and Energy geopolitics

Nithin V

What happened?
On 28 August, President Donald Trump announced that the United States has gained access to more than 68 billion barrels of proven oil reserves in Venezuela through a major oil agreement covering 17 oilfields in the country. The agreement enables the US government to access 65 billion barrels of proven reserves covering 17 Venezuelan oilfields through a private owned company - North American Blue Energy Partners (NABEP). The company has received 100-year concessions to develop the oilfields. However, the Venezuelan President has informed that the above oil project will last for 25 years with a production of 1.5 million barrels per day. The US claims that it will receive a 35 percent equity stake in the company, besides the rights for purchasing 20 percent of the production and first refusal over the remaining production as well.

What is the background?
1. The resurgence in US-Venezuela relations
Until recently, the US-Venezuela relations deteriorated; Caracas developed energy and political ties with China and Russia. Both countries have played significant roles in Venezuela’s energy sector in recent years. The latest US-Venezuela agreement shows a shift in economic relations, reversing the earlier pattern in which China and Russia had a significant role in Venezuela’s energy sector. The US will now be a much more significant actor in Venezuela. This new development has an important geopolitical dimension, as Venezuelan oil has become a geopolitical instrument rather than just an economic resource. This is also consistent with recent reporting that the new arrangement is taking over some Venezuelan oilfields previously operated by Chinese and Russian firms, giving the US a much stronger position in the country's oil sector.

2. Venezuela’s oil resources and hopes of economic recovery
Venezuela possesses 17 per cent of the world’s global proven oil reserves and is largest in the world, having total reserves of around 303 billion barrels. Though the country has managed to produce three million barrels of oil per day in early years, it has come down sharply to the range of 1 million to 1.2 million barrels per day now. Years of underinvestment in the oil sector, combined with mismanagement, deteriorating infrastructure, and external sanctions imposed on the country, were the reasons for the weakening of the oil industry. The agreement with the US is expected to attract around USD 100 billion in investment, along with the flow of technology and expertise to the oil sector. In addition, the increased oil production will generate more than USD 200 billion in taxes; Venezuela hopes that there will be support for economic recovery itself due to more revenue generation.

3. The American and Venezuelan interests
According to Washington, the agreement will enable energy security for the US due to greater access to Venezuelan oil through increased crude supplies to its refineries. This will further lead to replenishing the US Strategic Petroleum Reserve across the country besides prospects for covering fuel prices itself. The agreement is vital for the US, aiming at geopolitical influence that goes beyond just importing crude from Venezuela. In addition, the agreement will enable strengthening of US economic presence in Venezuela through direct financial and commercial interests in the new oil company.

For Venezuela, the agreement is expected to rebuild its oil industry and attract new investments. Coincidentally, a major US Multinational Energy Company, namely Chevron, has announced its plan on 2 September to invest nearly USD 7 billion in Venezuela so as to increase its production to the level of 600,000 barrels per day over the next five years. Though the agreement is expected to encourage wider US energy investments in Venezuela, it could significantly alter the balance of external influence in the country.

What does it mean?
As Venezuelan oil has become a geopolitical instrument rather than just a economic resource, the agreement could result in wider competition for influence in Latin America among the US, China, and Russia. The oil agreement is a combination of oil, investment, energy security, and geopolitical competition as well. On one hand, Venezuela could benefit from the investment flow into its oil sector, and on the other, the US gains more access to Venezuelan crude, and more importantly greater influence in the region.

However, there are concerns such as transparency, legal uncertainty, infrastructure issues etc., and the preferential treatment to a single private owned company is a major challenge. Hence, the long-term success depends on whether the agreement will result in the revival of Venezuela’s oil sector without the emergence of new political and economic tensions.

Nithin V is a postgraduate student in International Relations, with an interest in geopolitics, international political economy, and climate governance. He is currently an intern at the National Institute of Advanced Studies (NIAS), Bengaluru.