The Times Of Central Asia

08 May 2026

Business & Economy, Uzbekistan, Uzbekistan Business & Economy

Uzbekistan Airports Signs Sustainable Aviation Fuel Deal Tied to $6 Billion Biofuel Project

May 8, 2026
By Sadokat Jalolova

Uzbekistan Airports and Allied Biofuels FE LLC have signed a memorandum of understanding on the supply of sustainable aviation fuel (SAF) and electro-synthetic sustainable aviation fuel (e-SAF) in Uzbekistan.

The agreement outlines plans for cooperation on the supply of cleaner aviation fuel beginning in 2030. The move is part of Uzbekistan’s broader effort to position itself as a regional hub for sustainable aviation and low-carbon transport infrastructure.

Under the memorandum, the two sides will work together to develop supply chains and infrastructure for SAF and e-SAF, which are intended to help reduce aviation emissions.

Allied Biofuels is developing what it describes as Central Asia’s first integrated large-scale biorefinery. Once fully operational, the facility is expected to produce around 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually.

The project, estimated at $6.1 billion, is among the largest clean energy infrastructure initiatives announced in the region. According to the company, the refinery will operate using a 4.45-gigawatt renewable energy system supported by battery storage and green hydrogen production infrastructure. U.S.-based Plug Power has been selected as the preferred supplier of electrolyzer technology for the project.

Javlonbek Umarkhodjaev, chairman of the board of Uzbekistan Airports JSC, said the partnership represents an important step toward modernizing the country’s aviation sector and exploring sustainable fuel alternatives.

Alfred Benedict, general director of Allied Biofuels, described the memorandum as a major milestone for the company and said the cooperation could support the future development of cleaner air transport across Central Asia.

Allied Biofuels said the project continues to receive support from Uzbekistan’s Ministry of Investment and Foreign Trade and the country’s Investment Promotion Agency.

The memorandum follows an earlier announcement reported by The Times of Central Asia in April, when Uzbekistan signed a binding implementation agreement for the same $6.08 billion biofuel project in the Khorezm Region. The agreement was concluded in Perth, Australia, between Khorezm regional authorities and Allied Biofuels.

08 May 2026

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Opinion: A New Southern Gate – How the EU-Armenia Summit Unlocks a Critical Branch for the Middle Corridor

May 8, 2026
By Joe Luc Barnes

For the first time in its history, the European Union held a full summit with Armenia. The meeting, which took place in Yerevan on 4–5 May 2026, was not merely a diplomatic milestone for Armenia. It also sent a signal to governments thousands of kilometers away in Central Asia that the trade route linking Asia to Europe through the South Caucasus is becoming more real, and more politically backed, than ever before.

The centerpiece of the summit saw the signing of a “Connectivity Partnership” between Brussels and Yerevan. The European Commission President, Ursula von der Leyen, described Armenia as “uniquely positioned” to connect Europe with the South Caucasus and Central Asia. Under the EU’s Global Gateway program, investments in Armenia are expected to reach €2.5 billion. A further €3 billion is earmarked specifically for the Middle Corridor – the trade route that runs from China across Central Asia, over the Caspian Sea, through the South Caucasus, and into Europe.

“We will support your integration into key transport networks like the Trans-Caspian Corridor. It is a route that is also of strategic importance for Europe, given the growing flows of trade between our two regions,” von der Leyen stated.

A Route That Is Already Moving Fast

The Middle Corridor, formally known as the Trans-Caspian International Transport Route (TITR), has grown at a pace that few predicted. Cargo volumes rose 70 percent in the first nine months of 2024 alone, reaching 3.4 million tons. By the end of that year, the total had climbed to 4.1 million tons – up from just 350,000 tons in 2021. The World Bank projects that the route could handle up to 11 million tonnes a year by 2030.

It’s important to maintain some perspective. These numbers are small fry when compared to the billions of tons of trade that moves between Europe and Asia by sea. However, the Middle Corridor does offer important diversification, particularly given the spillover effects of wars in the Middle East and piracy in the Red Sea.

Image: Trans Caspian International Transport Route and it’s southern part, China-Kyrgyzstan-Uzbekistan Railway project. Source: middlecorridor.com

Where Uzbekistan Stands

For Uzbekistan, the Middle Corridor is both an opportunity and a work in progress. In January 2025, President Mirziyoyev signed a decree to upgrade road and rail connectivity, and in September 2024, Tashkent co-founded the Eurasian Transport Route Association alongside Austria, Azerbaijan, China, Kyrgyzstan, Tajikistan, and Turkey. In December 2024, Uzbekistan sent its first block train all the way to Brazil – through Turkmenistan, Azerbaijan, and the Georgian port of Poti – proving the route is operationally viable.

But costs remain a challenge. Shipping a 40-foot container via the Middle Corridor currently costs between $3,500 and $4,500, compared to $2,800–$3,200 on the Northern Corridor through Russia. Europe, meanwhile, accounts for only around 3 percent of Uzbekistan’s exports and 13 percent of its imports — a share that Tashkent wants to grow significantly.

The China–Kyrgyzstan–Uzbekistan (CKU) railway — a $8 billion, 573-kilometre project whose joint construction company was established in July 2024 — is the most consequential single piece of infrastructure in play. Once complete, it will give Uzbekistan an alternative means to access China by rail, bypassing Kazakhstan. As a 2025 analysis by Trends Research noted, the CKU will reduce transit time between China and Europe and lower export costs for the Fergana Valley — Uzbekistan’s industrial heartland.

Where Armenia Fits In

For three decades, Yerevan has been cut off from regional logistics networks after Azerbaijan and Turkey closed their borders in the early 1990s. The EU summit this week marks the clearest signal yet that this isolation is ending.

Armenian Foreign Minister Ararat Mirzoyan, speaking at an EU connectivity ministerial in Luxembourg last October, framed the stakes directly: “Being at the crossroads, Armenia can play a crucial role in the chain connecting Europe, the South Caucasus, and Central Asia.” He also echoed von der Leyen’s earlier assessment that opening Armenia’s borders with Azerbaijan and Turkey would be, in the Commission President’s words, a “game-changer” for the entire corridor.

Such an endeavor is likely to be contingent on the Armenian elections, which take place on June 7. Current Prime Minister Nikol Pashinyan is bidding to earn himself a two-thirds majority in the country’s parliament, which will enable him to change the constitution to remove Armenia’s claims on the Azerbaijani territory of Nagorno-Karabakh. Azerbaijan has made this a prerequisite for any final agreement on opening the TRIPP route through Armenia.

But he has his work cut out to achieve this. Russia has acted in its traditional role of spoiler, funneling money to various opposition parties in order to try to keep Armenia within its orbit.

Should Pashinyan prevail, the combined southern route, combining the China-Kyrgyzstan-Uzbekistan railway and the TRIPP corridor through Armenia, could allow cargo to be transported from Kashgar to European markets in about 10-14 days – about 900 kilometers shorter than the existing northern routes – which could reduce land costs per container by 20-30 percent compared to current prices.

It’s a prize that many in Central Asia are quietly hoping for.

The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of the publication, its affiliates, or any other organizations mentioned.

08 May 2026

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ADB Annual Meeting in Samarkand Unveils Major Energy, Climate, and Development Initiatives

May 8, 2026
By Sadokat Jalolova

The Asian Development Bank’s (ADB) 59th Annual Meeting concluded in the historic Uzbek city of Samarkand after four days of discussions focused on energy connectivity, climate financing, and economic resilience across Asia and the Pacific.

Held from May 3 to 6, the gathering brought together government officials, development institutions, economists, and private sector representatives at a time of growing geopolitical and economic uncertainty. It marked the second time Uzbekistan has hosted the ADB Annual Meeting, following the 43rd edition in Tashkent in 2010.

A central announcement at the meeting was the unveiling of a broader $70 billion regional infrastructure program aimed at accelerating energy and digital connectivity across Asia and the Pacific.

The initiative is structured around two major pillars: a $50 billion Pan-Asia Power Grid Initiative focused on cross-border electricity systems, and a $20 billion digital connectivity component aimed at strengthening broadband and data infrastructure across the region.

Together, these programmes are intended to reduce energy costs, improve reliability, and deepen regional economic integration.

The Pan-Asia Power Grid Initiative (PAGI)

In his address to delegates, ADB President Masato Kanda noted that PAGI seeks to support more interconnected and resilient infrastructure systems. “To survive and thrive in this new era, we must build deeply connected and resilient systems,” he said, adding that stronger regional grids and digital networks can help countries manage rising energy demand whilst also accelerating the transition to cleaner power sources.

The initiative seeks to integrate around 20 gigawatts of renewable energy capacity and the develop enough transmission infrastructure to expand electricity access for up to 200 million people.

ADB officials said the bank would use its role as a regional convener to bring together governments, regulators, and private investors to overcome barriers that often slow regional infrastructure projects.

The bank pointed to earlier success stories, including the Bangladesh-India power grid interconnection and the Monsoon Wind Power Project in Laos, as examples of cross-border cooperation supported through blended finance mechanisms.

Image: TCA, Stephen M. Bland

Climate and Food Security Concerns

Climate and environmental financing also featured prominently during the Samarkand meetings. On May 5, the ADB announced that the German government had joined the bank’s Nature Solutions Finance Hub with €5.5 million ($6.5 million) in grant co-financing, some of which has been earmarked for sorely needed watershed rehabilitation in Uzbekistan.

The discussions also reflected growing concern over global food security and supply chain vulnerabilities linked to the ongoing war in Iran.

Qingfeng Zhang, Senior Director of ADB’s Agriculture, Food, Nature, and Rural Development Sector Office, warned that disruptions around the Strait of Hormuz were increasing the cost of everything from energy to insurance, freight to fertilizer – placing additional pressure on food systems across Asia and the Pacific, including Central Asia.

Unlike the shock caused by Russia’s invasion of Ukraine, which directly disrupted grain and fertilizer exports, Zhang said the current crisis was affecting agriculture primarily through higher operating and transportation costs.

The Strait of Hormuz handles roughly one-quarter of global seaborne oil trade and around one-third of fertilizer exports. Rising costs, Zhang said, are already affecting farmers’ planting decisions across the region.

Uzbekistan’s Role

In his address to participants, the host, Uzbekistan’s President Shavkat Mirziyoyev, took the opportunity to reel off a series of figures trumpeting Uzbekistan’s economic success story of recent years. The president claimed the country had attracted $150 billion in foreign investment, tripled exports of goods and services, and expanded the size of the economy from $50 billion to $147 billion since he took power in 2016.

While many of these statements were factually incorrect or overblown – the last time Uzbekistan’s GDP was as low as $50 billion was in 2010 – Mirziyoyev was right about the country’s positive direction. He added that Uzbekistan aims to expand its economy to more than $240 billion by 2030, fully eliminate poverty, and transition toward innovation-driven growth.

The ADB has taken note and become one of Uzbekistan’s largest development partners, with the joint portfolio of completed and ongoing projects approaching $16 billion.

A new addition to that portfolio will be the 300-megawatt Bash 2 Wind Power Project in Uzbekistan’s Bukhara Region. The ADB signed a $116 million financing package with ACWA Power to support the construction of 39 wind turbines with capacities of up to eight megawatts each, whilst connecting them to the national grid.

The financing package includes $50 million from ADB’s ordinary capital resources, as well as money from commercial leaders and infrastructure investment funds.

Uzbek journalist and Doctor of Science Beruniy Alimov said the new cooperation priorities between Uzbekistan and ADB reflected the country’s ambition to become a more open and innovation-oriented economy integrated into global markets.

The bank’s next Annual Meeting will take place in Nagoya, Japan, from May 2-5, 2027, coinciding with the institution’s 60th anniversary.

08 May 2026

Home, Life & Culture, Kazakhstan Life & Culture, Kazakhstan

Kazakhstan’s Population Is Aging Rapidly as Demographic Pressures Mount

May 8, 2026
By Vagit Ismailov

Kazakhstan’s population is aging rapidly, with the number of elderly citizens growing significantly faster than the child population as birth rates continue to decline.

According to a study by analysts at Energyprom.kz, the country’s aging index has been steadily rising. In 2021, Kazakhstan had 26.7 elderly people for every 100 children under the age of 15. By 2025, that figure had increased to 32.9.

The data suggests Kazakhstan is gradually entering a demographic phase in which the proportion of elderly citizens is growing much faster than the younger population. The trend is particularly pronounced in urban areas, where the aging index rose from 28.8 to 34.9 over four years. Rural areas remain relatively younger, though the index there also increased from 23.9 to 29.6.

Researchers say the most difficult demographic situation is emerging in the country’s northern and eastern regions. The highest aging index was recorded in the North Kazakhstan Region at 84.1, followed by the East Kazakhstan Region at 80.7 and the Kostanay Region at 71.3. In practical terms, the number of elderly residents in these areas is approaching the number of children.

High aging rates were also recorded in the Pavlodar, Karaganda, and Akmola regions.

By contrast, Kazakhstan’s youngest demographic profiles remain concentrated in the southern and oil-producing regions. The lowest aging indexes were recorded in the Mangystau Region at 16.2, the Turkestan Region at 17.2, and the city of Shymkent at 17. Nevertheless, even these regions are showing gradual aging trends.

Analysts say the primary driver of the shift is the changing balance between declining birth rates and the growing elderly population. Although Kazakhstan’s total population continues to increase, its demographic structure is becoming noticeably older.

The number of children under the age of 14, after years of growth, has begun to decline. At the beginning of 2024 and 2025, the figure stood at around 5.9 million, but by early 2026 it had fallen to 5.8 million.

At the same time, the number of Kazakhstanis aged over 65 continues to rise rapidly. Over the past decade, the elderly population increased from 1.2 million to 2 million people, an increase of nearly 60%.

Additional pressure comes from falling birth rates. Kazakhstan’s total fertility rate dropped to 16.4 births per 1,000 people in 2025, compared to 23.5 in 2021, a decline of almost one-third in just a few years.

The lowest birth rates are being recorded in the North Kazakhstan, Kostanay, and East Kazakhstan regions. However, even traditionally younger regions such as Turkestan and Mangystau are seeing fertility rates gradually decline.

Experts warn that overall population growth is no longer compensating for changes in the country’s age structure. While the population is still increasing in absolute terms, the share of elderly citizens is rising much more rapidly.

According to analysts, the trend is likely to place increasing pressure on Kazakhstan’s healthcare system, labor market, pension system, and social welfare infrastructure in the coming years.

08 May 2026

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Kazakhstan, Kyrgyzstan, Uzbekistan Agree on Toktogul Water Releases

May 8, 2026
By Sergey Kwan

Energy and water ministers from Kazakhstan, Kyrgyzstan, and Uzbekistan signed a trilateral protocol in Tashkent on May 7 establishing agreed water release volumes and schedules from the Toktogul Reservoir for the next two months.

The Toktogul Reservoir plays a central role in maintaining water and energy stability across Central Asia. The Toktogul Hydropower Plant, located on the Naryn River, the main tributary of the Syr Darya, is Kyrgyzstan’s largest power station and supplies around 40% of the country’s electricity.

The reservoir serves a dual purpose: generating electricity for Kyrgyzstan while regulating water flows essential for downstream agriculture in Kazakhstan and Uzbekistan. During winter, Kyrgyzstan typically increases electricity generation to meet heating demand, often lowering reservoir levels and reducing the amount of water available for irrigation during the following spring and summer.

According to Kazakhstan’s Energy Ministry, the newly signed protocol removes uncertainty for farmers in southern Kazakhstan at the start of the agricultural season and allows both Kazakh and Uzbek farmers to begin irrigation activities on schedule.

To ensure stable water supplies throughout the remainder of the growing season, the three countries agreed to continue coordination in stages. The next ministerial meeting is scheduled for mid-June in Bishkek, where officials plan to finalize water release schedules for the critical summer months of July, August, and September.

The agreement highlights the continued functioning of the region’s interstate water-energy exchange mechanism. Coordination over summer irrigation flows was preceded by extensive cooperation during the winter season.

From September 2025 to April 2026, Kazakhstan supplied more than 1.5 billion kilowatt-hours of electricity to Kyrgyzstan, helping the upstream country reduce winter water releases for heating and preserve additional reserves in the Toktogul Reservoir for summer irrigation needs in Kazakhstan and Uzbekistan.

According to Kyrgyzstan’s Deputy Energy Minister Altynbek Rysbekov, the Toktogul Reservoir held 7 billion cubic meters of water on April 1, 2026, down from 9.14 billion cubic meters on January 1 after the winter heating season.

The reservoir’s so-called “dead water level,” the threshold below which turbines can no longer operate, stands at 6.5 billion cubic meters.

08 May 2026

Business & Economy, Uzbekistan, Uzbekistan Business & Economy

Uzbekistan Collects $5 Million From Foreign Digital Companies in First Quarter

May 8, 2026
By Sadokat Jalolova

Foreign technology and digital service companies paid 65.7 billion Uzbek som ($5.1 million) in taxes in Uzbekistan during the first quarter of 2026, according to the country’s State Tax Committee.

The figure represents an 81% increase compared to the same period in 2025, when foreign digital firms paid 36.2 billion som ($2.98 million) in taxes. The total value of electronic services provided by foreign companies in Uzbekistan also rose sharply, from 306.6 billion som ($25.2 million) in the first three months of 2025 to 552 billion som ($45.4 million) this year.

The State Tax Committee said 89 foreign companies providing electronic services are currently registered as taxpayers in Uzbekistan.

Among the largest taxpayers in the first quarter were Apple, which paid 16.1 billion som ($1.32 million) in taxes, followed by Google at 14.9 billion som ($1.23 million) and Meta at 13.9 billion som ($1.14 million).

Other major contributors included Valve Corporation, which paid 8 billion som ($658,000), OpenAI with 2.5 billion som ($206,000), and Anthropic with 1.5 billion som ($123,000).

Gaming and entertainment platforms also appeared among the top taxpayers. Midasbuy paid 1.3 billion som ($107,000), while TikTok, Booking.com, and Netflix collectively contributed more than 2 billion som ($165,000).

Under Uzbek law, foreign legal entities providing electronic services must submit tax reports and pay taxes no later than the 20th day of the month following each reporting quarter.

Previously, Kazakhstan reported that foreign digital platforms transferred nearly $18 million to the state budget in January 2026 alone through its digital services tax, commonly referred to as the “Google tax.” According to Kazakhstan’s State Revenue Committee, 120 foreign companies have registered as taxpayers there since the tax was introduced in 2022, generating a total of about $277.5 million in revenue.