The Times Of Central Asia

15 May 2025

Central Asia, Uzbekistan, Life & Culture, Uzbekistan Life & Culture

Afghanistan Delivers White Marble to Uzbekistan for Imam Bukhari Complex

May 15, 2025
By Sadokat Jalolova

Afghanistan has delivered 16 truckloads of white marble from Herat to Uzbekistan for use in the construction of the Imam Bukhari complex in Samarkand, according to the Surkhandarya regional administration. The marble will contribute to the ongoing development of the religious and cultural site dedicated to the revered Islamic scholar.

The marble was officially transferred at the Termez International Trade Center during a meeting between Uzbek and Afghan officials.

According to Uzbekistan’s state news agency UzA, the first shipment comprises 324 boxes of rare white marble, with each slab measuring 3.5 to 4 centimeters thick.

Expanding Bilateral Relations

Uzbekistan and Afghanistan have been expanding bilateral relations in recent years. In March, Uzbekistan sent nearly 200 tons of humanitarian aid to Afghanistan, including flour, pasta, oil, sugar, and other essential supplies.

Looking ahead, the two nations aim to boost annual trade to $3 billion. In 2023, trade turnover between Uzbekistan and Afghanistan totaled $866 million.

15 May 2025

Environment, Kazakhstan Environment, Home, Kazakhstan, Kazakhstan Featurees

Kazakhstan Declares Kentau Industrial Zone an Ecological Emergency Area

May 15, 2025
By Vagit Ismailov

The Ministry of Ecology and Natural Resources of Kazakhstan has officially designated the industrial zone of Kentau, located in the Turkestan region, as an ecological emergency area. Minister Yerlan Nysanbayev signed the corresponding order, introducing a special legal status for a 900-hectare zone on the city’s northern outskirts.

Restrictions and Emergency Measures

Published on the government’s official legal portal, the document outlines a series of prohibitions and restrictions intended to address the long-standing environmental crisis. The status is effective until January 1, 2075, and applies to an unpopulated industrial zone.

The Akimat of the Turkestan region has been directed to consider implementing the following measures:

Regulating vehicle entry and exit
Prohibiting the construction of new facilities and expansion of existing enterprises unless related to mitigating the environmental disaster or supporting essential public services
Resettling residents from hazardous zones, with the provision of temporary or permanent housing
Banning the construction and operation of environmentally hazardous facilities
Restricting the operations of health and resort institutions within the emergency area
Forbidding activities that could endanger human health, flora, fauna, or the environment

Additionally, the regional government is tasked with formulating a comprehensive action plan to stabilize the ecological situation and reduce environmental harm. Continuous monitoring will be carried out under Article 409 of Kazakhstan’s Environmental Code.

Map-of the location declared an emergency zone; image: zan.gov.kz

Background of the Crisis

Kentau, a city with regional subordination, lies at the southern base of the Karatau Ridge, approximately 24 kilometers from Turkestan and 190 kilometers from Shymkent. Founded in 1955 atop the former Mirgalimsay workers’ settlement, the city grew around the development of the Achisai polymetallic deposit. Today, it has a population of around 75,000.

The Kentau industrial zone has long hosted several major enterprises, whose operations have severely impacted the local environment. Calls for governmental intervention have intensified in recent years.

In June 2024, Senator Murat Kadyrbek urged authorities to declare Kentau an ecological disaster zone and allocate 6 billion KZT ($12 million) in compensation to affected residents. He cited studies showing a decline in both public health and environmental quality. Kadyrbek also appealed to the Ministry of Labor and Social Protection to introduce a 20% salary allowance for public sector workers residing in the disaster zone.

Environmental experts and activists have repeatedly flagged dangerous levels of air pollution, elevated concentrations of heavy metals in soil, poor water quality, and a radioactive anomaly within the agglomeration area.

While the Ministry’s recent designation is seen as a positive step toward environmental stabilization, experts stress that sustained investment and strategic long-term planning will be essential for meaningful recovery.

Kentau is not the only locality in the Turkestan region grappling with ecological issues. Other affected areas include the Shardara and Arys districts, as well as the city of Turkestan, all located within the pre-crisis zone of the desiccating Aral Sea.

15 May 2025

Central Asia, Local Politics, Kyrgyzstan, Kyrgyzstan Local Politics

Kyrgyz Farmers to Pay Less for Irrigation Water Following Tariff Reform

May 15, 2025
By Anton Chipegin

Kyrgyzstan has revised its irrigation water tariffs for agricultural land following a comprehensive review by the Water Resources Service. The analysis revealed that farmers have been significantly overpaying for water due to intermediary pricing by the Water Users Association.

According to Melis Raimkulov, Deputy Director of the Water Resources Service, farmers were paying as much as 2,000 KGS ($23) per hectare, four times the actual rate of 500 KGS ($5.50). “In fact, the tariff has not changed, but now we have formalized it and calculate it based on irrigation norms,” Raimkulov explained. “According to these norms, about 1,100 cubic meters of water are needed to irrigate one hectare of land during the irrigation season.”

The Water Users Association, a private entity responsible for collecting irrigation payments, had been setting prices independently, often without transparency. Minister of Water Resources, Agriculture, and Processing Industry, Bakyt Torobaev, criticized the association’s practices, noting that rates during the irrigation season ranged from 1,000 to 2,500 KGS ($11 to $29) per hectare, and in some cases, reached as high as 10,000-15,000 KGS ($115-$170). “But no one knows if enough water was provided,” Torobaev remarked.

The Ministry of Agriculture estimates that the Water Users Association collected approximately 1.5 billion KGS ($17 million) per season, though the allocation of those funds remains unclear. In response, the government has transferred responsibility for fee collection to the Water Resources Service. The proceeds will now be directed toward improving the country’s water infrastructure.

According to official data, spring sowing in Kyrgyzstan is nearly complete, with 80% of the planned area already cultivated.

15 May 2025

Central Asia, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Kazakhstan to Expand Geological Exploration Area by One-Third by 2026

May 15, 2025
By Dmitry Pokidaev

Kazakhstan plans to increase its geological exploration area by one-third by early 2026, according to Margulan Baibatyrov, Deputy Chairman of the Geology Committee under the Ministry of Industry and Construction. Baibatyrov made the announcement during an international mining congress.

President Kassym-Jomart Tokayev previously highlighted this initiative at the October 2024 meeting of the Foreign Investors Council, noting that geological exploration currently covers approximately 1.6 million square kilometers. He instructed that this figure be expanded to 2.2 million square kilometers.

“By 2026, we plan to increase the area of geological exploration by 680,000 square kilometers,” Baibatyrov confirmed.

Investment and Resource Development

Over the past five years, the mining industry in Kazakhstan has attracted around $1 billion in private investment. Of this, KZT 41 billion ($80.3 million) has come from major international companies specifically for geological exploration.

Since 2018, Kazakhstan has issued 2,906 exploration licenses and 111 production licenses. The country’s mineral resource base includes more than 980 solid mineral deposits. Exploration activities are ongoing at 12 sites, with notable recent discoveries such as the Kuyrektykol deposit, which contains approximately 800,000 tons of rare earth metals.

Sector Challenges

Despite these advancements, Baibatyrov noted several persistent challenges in the geological exploration sector, including:

A shortage of qualified scientific personnel;
Low levels of natural resource replenishment;
Insufficient public funding for geological studies.

Upcoming Auctions

As previously reported by The Times of Central Asia, Kazakhstan plans to auction exploration and development rights for 50 gold and rare metal deposits in June 2025. This move aims to attract further investment and strengthen the country’s mineral resource base.

15 May 2025

Central Asia, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

EBRD Downgrades Kazakhstan’s 2025 GDP Forecast

May 15, 2025
By Dmitry Pokidaev

The European Bank for Reconstruction and Development (EBRD) has revised its 2025 GDP growth forecast for Kazakhstan downward, from 5.2% to 4.9%. The adjustment was published in the bank’s May regional economic outlook.

According to the EBRD, the downward revision is largely due to Kazakhstan’s GDP growth in the first quarter being driven primarily by higher oil output at the Tengiz field. While this expansion has supported short-term growth, the bank questions the sustainability of oil production as a long-term driver, particularly under current OPEC+ production limits.

Oil Output and Constraints

Tengizchevroil (TCO), the operator of the country’s largest oil field, increased daily production at Tengiz to a record 870,000 barrels in January 2025, up 45% from the 2024 average. Output climbed further to 950,000 barrels in March, before dipping slightly to an average of 884,000 barrels per day in early April. Industry projections suggest production may eventually reach one million barrels per day. However, the EBRD cautions that such gains may be constrained by Kazakhstan’s obligations under the OPEC+ agreement.

In addition to concerns about oil production, the bank notes the risk of declining demand for Kazakh oil and metals, key exports, especially from China, one of Kazakhstan’s main trading partners.

Inflation and Domestic Demand

Rising inflation presents another significant challenge. Consumer prices rose 8.9% in January, 9.4% in February, and hit 10% in March, the highest level since November 2023. In April, inflation climbed further to 10.7%, raising concerns about the erosion of domestic purchasing power.

Broader Economic Indicators

Despite the EBRD’s revised forecast, the Ministry of National Economy reported on May 12 that Kazakhstan’s GDP grew by 6% in the first four months of 2025. For the January-March period, growth was recorded at 5.8%, supported by a range of sectors: transport (22.4%), trade (7%), agriculture (3.9%), and communications (2.6%).

Growth in the transport sector was driven by an increase in freight volumes via rail and pipeline, accounting for 20.5% and 19.6% of sectoral output, respectively. Wholesale trade expanded by 7.4%, and retail trade by 6.1%.

Outlook

As previously reported by The Times of Central Asia, several analysts view ongoing volatility in global markets as indicative of a looming “perfect storm” for Kazakhstan’s economy. This sentiment is echoed in the EBRD’s cautious outlook, highlighting a convergence of external and internal pressures on the country’s economic stability.

15 May 2025

Home, Kazakhstan Lead Story, Lead Story, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

The Abu Dhabi-Kazakhstan Connection

May 15, 2025
By Bruce Pannier

Crown Prince of Abu Dhabi Khaled bin Mohamed bin Zayed Al Nahyan led a delegation of officials and businessmen from the United Arab Emirates on a visit to Kazakhstan to attend the Kazakhstan-UAE Business Forum on May 12. During the visit, Kazakhstan and the UAE signed deals worth some $5 billion and not surprisingly, three of the nine agreements were with Abu Dhabi Ports Group.

Building a new trade route to the south

Abu Dhabi Ports Group (AD Ports Group) has been leading the way in connecting Kazakhstan to the Middle East, and in turn, the UAE company is looking to take advantage of Kazakhstan’s key position along the Middle Corridor trade route.

In early August 2023, Davud Tafti, the head of AD Ports Group subsidiary Simatech Shipping & Forwarding, met with Kazakhstan’s Minister of Trade Serik Zhumangarin to discuss the shortest direct route for shipping “Kazakh export cargo the markets of the Persian Gulf, the Middle East, Pakistan, India and the coast of East Africa.”

The route goes from Kazakhstan’s Caspian port of Kuryk to the Iranian Caspian port at Amirabad. From there goods are shipped to the Iranian Persian Gulf port at Bandar Abbas and loaded onto ships heading to UAE ports at Khalifa and Fujairah.

The total time from Kuryk to Bandar Abbas is three days.

By the time Tafti and Zhumangarin met, AD Ports Group had already purchased four ships with a capacity of 7.500 tons each for transportation of bulk, container, and general cargo along Caspian Sea routes. Tafti said there were plans to buy ten more similar vessels with Amirabad being used as their home port.

Simatech Shipping & Forwarding also bought two barges, each capable of transporting 350 trucks, with plans to purchase 1,000 trucks for shipping goods between Amirabad and Bandar Abbas.

AD Ports Group signed a strategic partnership agreement with state oil and gas company KazMunaiGas (KMG) in January 2023 aimed at developing Kazakhstan’s tanker fleet in the Caspian and Black seas. The parties formed a joint venture called Caspian Integrated Maritime Solutions (CIMS).

CIMS announced in December 2023 that working with KMG subsidiary KazMorTransFlot, Kazakhstan’s national shipping company, it had acquired two oil tankers for use in the Caspian Sea.

AD Ports Group reached an agreement in January 2024 to construct a facility on Kazakhstan’s Caspian coast for building and repairing ships. Work started in early 2025 on two container vessels, each with the capacity to carry more than 500 twenty-foot equivalent units (TEU) and built especially for use on the Caspian Sea.

AD Ports Group also formed a joint venture with state railway company Kazakhstan Temir Zholy in December 2023 with the aim of improving logistics operations for transferring goods using rail and maritime routes.

At the moment, the CIMS route is by far the fastest way for Kazakhstan to trade with the Middle East.

In May 2025, Kazakhstan Temir Zholy sent the first shipment of wheat via Turkmenistan and Iran to Bandar Abbas, and from there by sea to UAE port at Jebel Ali. The estimated average shipping time is 18 days.

Expansion continues

Under new agreements signed at the Kazakhstan-UAE Business Forum, CIMS will purchase four container ships, each capable of transporting 780 TEUs, for Caspian transport, and up to four of the large Aframax oil tankers for Kazakhstan’s Black Sea fleet.

One of the agreements signed at the forum was for the construction and development of the Sarzha multi-purpose terminal at the Kuryk port. Representatives from AD Ports Group and Kazakhstan’s Semurg Invest discussed plans for the new terminal, which will be able to handle “general cargo, containers, and dry bulk cargoes.”

Kazakh Invest, the Chamber of International Commerce of Kazakhstan, and the Special Economic Zone Morport Aktau also signed Memorandums of Understanding with AD Ports Group on promoting and developing trade between Kazakhstan and the UAE.

Another of the agreements at the business forum was for cooperation between the Free Economic Zones at Kuryk, and the Khalifa Economic zones in Abu Dhabi.

A Successful Two Years

Since 2023, AD Ports Group said it has invested $175 million into its projects in Kazakhstan, and helped Kazakhstan to export more than one million tons of crude oil across the Caspian Sea, and more than six million tons across the Black Sea. The UAE company said it plans to invest an additional $600 million in projects in Kazakhstan.

Managing Director and Group CEO of AD Ports Group Mohamed Juma Al Shamisi said his company sees Kazakhstan as “a major Central Asian trade hub” and a key part of AD Ports Group’s “long-term strategy to develop the ‘Middle Corridor”’ land passage from China to Europe.”

AD Ports Group’s relationship with Kazakhstan has proven extremely beneficial to both parties in a short space of time.

As part of the UAE’s efforts to expand its trade network, strengthening infrastructure ties linking to Kazakhstan opens up huge possibilities for the Gulf State to be part of the Middle Corridor trade route. Al Shamisi called the Middle Corridor “the shortest… way to transport goods from China to Europe,” and added that his company’s “investments reflect Kazakhstan’s growing role as an emerging export leader.”

With AD Ports Group’s help, Kazakhstan finally has a reliable and expanding trade route south, plus investment and experience from a leading company in port infrastructure and connectivity.