• KGS/USD = 0.01143 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.10465 0.1%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01143 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.10465 0.1%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01143 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.10465 0.1%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01143 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.10465 0.1%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01143 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.10465 0.1%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01143 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.10465 0.1%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01143 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.10465 0.1%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01143 0%
  • KZT/USD = 0.00207 0%
  • TJS/USD = 0.10465 0.1%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%

Our People > Stephen M. Bland

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Stephen M. Bland

Managing Editor and Head of Investigations

Stephen M. Bland is a journalist, author, editor, commentator, and researcher specializing in Central Asia and the Caucasus. Prior to joining The Times of Central Asia, he worked for NGOs, think tanks, as the Central Asia expert on a forthcoming documentary series, for the BBC, The Diplomat, EurasiaNet, and numerous other publications.

His award-winning book on Central Asia was published in 2016, and he is currently putting the finishing touches to a book about the Caucasus.

Articles

EAEU Trade Frictions Deepen Despite Shymkent Integration Push

The Eurasian Economic Union (EAEU) met in Shymkent on March 26-27 with a long agenda and a familiar promise: deeper integration, smoother trade, and a more modern common market. Kazakhstan, which holds the bloc’s 2026 chairmanship, used the meeting to push artificial intelligence, digital logistics, industrial cooperation, and the removal of internal barriers. Twelve documents were signed, covering areas including industrial cooperation, transport, and digital integration. “Kazakhstan aims to become a fully-fledged digital country. We have built a modern ecosystem, including Astana Hub and the Alem.ai AI center, and are ready to share experience with EAEU partners on digital regulation and economic transformation,” Kazakh Prime Minister Olzhas Bektenov stated. That sounds ambitious, but it also highlights the bloc’s central weakness. The EAEU has no shortage of plans; it has a shortage of trust between its members, and that matters more. The dynamics extend across the bloc, but are most visible in Kazakhstan and Kyrgyzstan. The EAEU was built to ensure the free movement of goods, services, capital, and labor across Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. But the reality keeps drifting away from the treaty. Kazakhstan’s chairmanship agenda calls for a barrier-free internal market, yet the bloc is entering a new phase of tighter controls, retaliatory measures, and disputes over who really benefits. Shymkent made that contradiction impossible to miss. Prime Minister Olzhas Bektenov promoted an AI-based system to coordinate cargo flows across the union and speed up transit. He also backed the full electronic handling of veterinary and phytosanitary checks, all of which are practical ideas. Central Asia needs faster, cheaper, and more predictable logistics, but digital tools do not solve a political problem. A system becomes more efficient only if its members want it to be open. When they want leverage instead, technology can only make the controls smarter. [caption id="attachment_46024" align="aligncenter" width="1920"] Image: primeminister.kz[/caption] Kazakhstan’s priorities already show where the friction lies. President Kassym-Jomart Tokayev opened his chairmanship by calling for digital transformation, better transport links, and the elimination of internal trade barriers. He also pushed a stronger external profile for the EAEU, with wider links across Asia, the Arab world, and the Global South. That is a serious agenda for a bloc trying to present itself as a Eurasian logistics hub. That push for external expansion comes at a time when internal frictions are becoming harder to manage. It sits uneasily beside everyday trade practice inside the union, where growing trade disputes have become part of the EAEU’s normal life, not an exception to it. The clearest recent example is Russia’s SPOT import-control system, which takes effect for road shipments from EAEU countries on April 1. Importers must submit shipment information two days before trucks reach the border and receive a QR code. Moscow has presented the change as a tax-compliance and anti-fraud measure, with additional financial guarantees expected in later phases of its implementation. In practice, it adds cost, time, and uncertainty before goods even reach the border, the opposite of what a customs union...

1 day ago

Repeated Drone Incidents Expose Airspace Risks on Russia–Central Asia Frontier

A new drone-related incident in western Kazakhstan has reinforced a pattern that is becoming harder to dismiss. Police in West Kazakhstan Region confirmed that an object resembling an unmanned aerial vehicle was found in the Akzhayik district near the village of Karaulytobe. Images circulating locally appeared to show a largely intact fixed-wing drone. No casualties or damage were reported. “The object was discovered outside a populated area. All circumstances of the incident are being investigated,” the department said. Reports and images of the object initially circulated on messaging apps before being confirmed by regional authorities. This latest discovery fits a sequence of similar incidents across the same region over the past year. As previously reported by The Times of Central Asia, on March 18, 2025, a drone about three meters long was found near Atameken village in Taskala district, around 60 kilometers from the district center. That case followed another discovery on February 18, 2025, in the Bokeyorda district, where a smaller unidentified object was recovered in a remote area. Within days, further debris was found near the Russian border in Zhanibek district, marking the third such case in a single month. The pattern continued later in the year. On October 23, 2025, a drone of unknown origin exploded near Kyzyltal village in the Burlin district. Residents reported an explosion that damaged rooftops and left a crater near the village, although no casualties were recorded. Authorities opened a criminal case, with the military prosecutor’s office involved alongside police and emergency services. Similar findings have appeared beyond the West Kazakhstan Region. On June 19, 2025, fragments resembling a UAV were found in Mangistau Region near the Bolashak border station. The debris was located in an uninhabited area, and no damage was reported. Taken together, these incidents form a clear geographic cluster along Kazakhstan’s western frontier. Most occurred near the Russian border and in sparsely populated areas. The objects were typically discovered after impact, with no confirmed flight paths or official attribution. Investigations into earlier cases have linked several incidents to areas used for Russian military testing. Western Kazakhstan includes zones connected to long-standing Russian defense activity under bilateral agreements, and parts of the region remain associated with testing operations. This context explains the cautious official response. None of the incidents have been described as attacks, and none have been attributed to a foreign state. At the same time, the repeated discoveries point to a growing exposure that goes beyond routine testing. The wider regional environment has shifted rapidly. The war in Ukraine has driven a sharp expansion in drone use across Eurasia. Both Russia and Ukraine deploy long-range UAVs for reconnaissance and strikes, often over extended distances. Drone activity has already affected infrastructure linked to Kazakhstan’s economy. On February 17, 2025, a drone attack targeted the Caspian Pipeline Consortium’s Kropotkinskaya pumping station in Russia’s Krasnodar region, part of a key export route for Kazakh oil. Further attacks on offshore loading facilities and terminals continued later in the year, with additional incidents...

2 days ago

Pannier and Hillard’s Spotlight on Central Asia: New Episode Out Now

As Managing Editor of The Times of Central Asia, I’m delighted that, in partnership with the Oxus Society for Central Asian Affairs, from October 19, we are the home of the Spotlight on Central Asia podcast. Chaired by seasoned broadcasters Bruce Pannier of RFE/RL’s long-running Majlis podcast and Michael Hillard of The Red Line, each fortnightly instalment will take you on a deep dive into the latest news, developments, security issues, and social trends across an increasingly pivotal region. This week, the team examine a series of major developments across Central Asia, from the results of Kazakhstan's constitutional referendum to the announcement of new Chinese-funded border outposts and fortifications along Tajikistan's frontier. We also look at the continuing fallout from the security shake-up in Kyrgyzstan, with further arrests and resignations, as well as the increasingly strange foreign movements of Turkmenistan's senior leadership while war continues to rage just across the border in Iran, alongside Tehran's threats to strike Turkmen infrastructure. The episode then turns to the escalating conflict between Afghanistan and Pakistan, where some of the heaviest fighting in months is raising fresh questions about border stability, regional security, and the risk of wider spillover. Finally, for our main story, we bring on a panel of experts to discuss the growing issues surrounding the Rogun Dam and its resettlement project, and how both are likely to affect the states downstream. On the show this week: - Eugene Simonov (Rivers Without Boundaries Coalition) - Mark Fodor (Coalition for Human Rights in Development)

3 days ago

Central Asia’s Airspace Is Growing in Value as the Iran Conflict Reshapes Routes

The war involving Iran has made Central Asia’s skies more important, but it has not made them a replacement for the Gulf. The change is narrower and more practical. As previously reported by The Times of Central Asia, the conflict has already reshaped Europe–Asia flight routes, with airlines forced to reroute around high-risk airspace. As EASA’s conflict-zone bulletin for Iran remains in force through March 31, and its broader Middle East and Persian Gulf bulletin advises operators to avoid a wide band of regional airspace, airlines flying between Europe and Asia now have fewer safe and efficient options than they did even a month ago. That matters for Central Asia because the region sits just north of the disrupted corridor. Iran’s airspace is considered high risk and is being widely avoided by airlines, while large parts of the central Middle East corridor are closed or heavily restricted. Safe Airspace’s March 21 summary states that the normal central route has been effectively shut for many operators, while Oman has become a heavily used southern bypass. That leaves a northern arc running through the Caucasus and Central Asia as one of the few workable alternatives for many carriers. The roots of this go back further than this month’s escalation. Since Russia’s full-scale invasion of Ukraine in 2022, many Western and Europe-bound operators have had to rethink routes that once crossed Russian airspace. In January 2025, Uzbekistan Airways began rerouting its Europe flights around Russia and Belarus. The airline said the Tashkent–Munich route grew from 4,849 kilometers to 5,156 kilometers, adding 30 to 40 minutes to each flight. The conflict has now squeezed traffic again, this time from the south. That double squeeze raises a harder question. Can Central Asia handle more strategic weight in the air, not just on a map but in daily operations? Kazakhstan is the strongest candidate. Kazaeronavigatsiya says Kazakhstan’s airspace handled 216,616 flights in the first half of 2025. Of those, 161,029 were flown by foreign airlines in transit or landing operations, while 55,587 were operated by Kazakh carriers. The same state operator lists 124 air traffic service routes with a combined length of 113,530 kilometers. These are substantial figures for a landlocked state positioning itself as a Eurasian transit hub. The country’s broader aviation system has also been expanding. The Civil Aviation Administration of Kazakhstan says airports served 31.8 million passengers in 2025, up from 29.7 million in 2024. Airlines carried 20.7 million passengers, and Kazakhstan’s compliance with international aviation safety standards reached 95.7%. The same report points to a three-year development plan, a new accident investigation center, and continued work on digital systems and urban air mobility rules. Still, higher value does not mean unlimited capacity. Central Asia is not one integrated aviation market. It is a set of separate national systems with uneven infrastructure, uneven investment, and different regulatory speeds. Kazakhstan has scale, but it is also expanding passenger traffic, cargo capacity, and international routes at the same time. More overflights can bring revenue, but...

4 days ago

New Russian Trade Controls Add Friction to Central Asian Trade

Russia is tightening trade procedures in ways that could reshape how goods move across Central Asia. The changes are technical, but their impact could be significant. The clearest sign is Russia’s new SPOT import-control system, which takes effect for road shipments from Eurasian Economic Union countries on April 1. Under the new rules, importers must file a document on an expected shipment two days before the truck reaches the border. The Russian authorities will assign a QR code, and from July 1, the system is due to move into full operating mode, including a security payment. Moscow says the measure is designed to improve tax compliance and reduce fraud. In practice, it introduces additional control over trade flows before goods reach the border. For transport companies and exporters, that means higher upfront costs, longer planning cycles, and greater uncertainty over delivery times. Even small delays at the border can disrupt supply chains, particularly for perishable goods. The changes are part of a broader pattern in which Moscow is relying more heavily on administrative controls to manage trade within its closest economic partners, and the timing is notable. Central Asian economies have been expanding trade with China and the European Union, while also seeking alternative transit routes that reduce dependence on Russia. The introduction of tighter Russian controls comes as those efforts gain momentum. Over time, such measures may also push Central Asian businesses to accelerate efforts to diversify trade routes and partners. The system may also create new internal barriers within the EAEU. The requirements for advance documentation and financial guarantees could, in some cases, exceed procedures applied to imports from outside the bloc. That would mark a significant shift for a union that was designed to simplify trade among its members. It also underlines a familiar problem within the EAEU, where commitments to free movement often sit alongside recurring administrative barriers. Similar disputes have surfaced repeatedly over the past decade, particularly in relation to agriculture and food, suggesting that the gap between formal integration and practical trade conditions remains unresolved. Russia dominates the union’s economic geography. According to Kazakhstan’s Bureau of National Statistics, mutual trade with EAEU countries reached almost $2.16 billion in January 2026, with 15.4% year-on-year growth. Russia accounted for the vast majority of that total. Kazakhstan’s imports from EAEU partners rose significantly faster than its exports; Russia supplied close to one-third of Kazakhstan’s total imports in January. That imbalance leaves Kazakhstan particularly exposed to changes in Russian trade procedures. For Kazakh businesses, that exposure is most visible at border crossings, where delays and extra checks quickly add to costs. Tensions over regulatory controls have also resurfaced. On March 2, Russia suspended certification for high-fat dairy products from all Kazakh suppliers, affecting butter, cream, cheese, and milk powder. Kazakhstan responded with its own measures, strengthening veterinary controls and imposing temporary restrictions on the import and transit of livestock and animal products from several Russian regions because of a worsening disease situation. Even when such steps have a...

5 days ago

Astana–Israel Talks Span Technology, Trade, and Holocaust Remembrance

Kazakh President Kassym-Jomart Tokayev met Israeli Foreign Minister Gideon Sa’ar in Astana on January 27, marking the first official visit by an Israeli foreign minister to Kazakhstan in almost 16 years, and underscoring Astana’s stated interest in deepening economic and technological cooperation with Israel as it continues to recalibrate its foreign policy. According to the Kazakh presidential administration, the talks focused on expanding bilateral relations across trade, investment, science, and technology, with both sides emphasizing practical areas of cooperation. The visit came as Kazakhstan seeks to diversify its economy beyond hydrocarbons and strengthen partnerships with countries at the forefront of applied innovation. Tokayev said the visit demonstrated Israel’s commitment to strengthening comprehensive cooperation with Kazakhstan, while discussions highlighted concrete sectors for collaboration, including artificial intelligence, agrotechnology, water resource management, and digital governance. These areas align closely with Kazakhstan’s national development priorities, particularly its focus on digital transformation, public-sector reform, and productivity-driven growth. Economic cooperation featured prominently throughout the visit. A Kazakh-Israeli business forum was held alongside the high-level talks, aimed at translating diplomatic engagement into commercial outcomes. Kazakhstan’s Foreign Ministry said the forum is expected to support new investment partnerships and initiate joint projects in high-value sectors, with a focus on technology transfer and localized projects. Kazakh officials said bilateral trade reached $162.4 million between January and November 2025, with exports totaling $92.1 million and imports $70.3 million. While modest in absolute terms, the figures were cited as evidence of untapped potential, particularly in non-resource sectors where Israeli companies have global expertise. As part of the discussions, Kazakhstan invited Israeli firms to participate in national digital transformation initiatives, including projects related to e-government, data-driven public services, and digital infrastructure. Officials cited Kazakhstan’s recent progress in digital governance and public-sector innovation as a foundation for expanded cooperation. Kazakhstan and Israel established diplomatic relations in 1992, shortly after Kazakhstan gained independence. Israel opened its embassy in Almaty in 1996, while Kazakhstan inaugurated its embassy in Tel Aviv in 2000, laying the groundwork for steady but largely low-profile bilateral ties. Political relations have traditionally been pragmatic, with cooperation focused on trade, agriculture, healthcare, and education rather than formal alliances. Bilateral trade has remained modest, reflecting limited commercial engagement beyond specific sectors such as agrotechnology, pharmaceuticals, and water management. In recent years, Astana has shown growing interest in Israel’s applied innovation ecosystem, particularly in areas aligned with Kazakhstan’s domestic reform agenda, including digital governance, artificial intelligence, and public-sector modernization. Israeli firms have previously participated in pilot projects and advisory initiatives in Kazakhstan, though large-scale joint ventures have been limited. Kazakhstan has also positioned itself as a neutral diplomatic actor in the Middle East, maintaining relations with Israel while emphasizing interfaith dialogue and mediation. Beyond economic ties, the talks also addressed regional and international issues, including developments in the Middle East and Kazakhstan’s diplomatic positioning in support of the objectives underpinning the Abraham Accords framework. Sa’ar welcomed Kazakhstan’s engagement, describing it as a constructive contribution to dialogue and cooperation between Israel and Muslim-majority countries. Sa’ar...

2 months ago

Uzbekistan Deepens U.S. Partnership Through New Investment Council and National AI Strategy

Uzbekistan is advancing a broad effort to strengthen its relationship with the United States through new economic, diplomatic, and technological initiatives. A presidential decree establishing the Uzbekistan–U.S. Business and Investment Council, alongside a major artificial intelligence partnership with NVIDIA, underscores the country’s strategy to draw investment and accelerate digital development. A New Platform for Economic Engagement The creation of the Uzbekistan–U.S. Business and Investment Council follows President Shavkat Mirziyoyev’s recent participation in the C5+1 Summit, where regional connectivity and U.S.–Central Asia cooperation were central topics. The council will be jointly led by the Head of the Presidential Administration and a representative appointed by the U.S. administration, giving both sides a formal mechanism to coordinate investment priorities and oversee major projects. Uzbekistan expects the platform to support initiatives involving institutions such as the U.S. International Development Finance Corporation, the European Bank for Reconstruction and Development, and the Asian Development Bank. Officials have framed the council as part of a longer-term effort to expand trade, encourage U.S. private-sector engagement, and diversify the country’s investment base. Expanding Diplomatic Reach The government is preparing to significantly widen its diplomatic network in the United States. A new Adviser-Envoy will be assigned to the embassy in Washington beginning in 2026 to coordinate investment initiatives linked to the council. Plans are also underway to open additional consulates in Philadelphia, Chicago, Orlando, and Seattle, reflecting both the size of the Uzbek diaspora and growing interest in regional outreach. Uzbekistan’s shift toward deeper engagement includes a visa-free regime for U.S. citizens starting January 1, 2026, which will allow 30-day stays and support increased travel for business and education. Updates on foreign policy and consular matters are regularly published by the Ministry of Foreign Affairs. Expanding the National AI Ecosystem Alongside diplomatic and economic reforms, Uzbekistan is pursuing ambitious plans to grow its artificial intelligence capacity. During a recent visit to the United States, Digital Technologies Minister Sherzod Shermatov held discussions with leaders at NVIDIA on infrastructure development, AI governance, and workforce training. The ministry has positioned the partnership as a key step toward integrating international expertise into Uzbekistan’s digital transformation strategy. The cooperation includes the development of an AI Excellence Center powered by NVIDIA technology and supported by training programs from the company’s Deep Learning Institute. The center will provide training for educators and specialists, while universities begin preparing to introduce AI-focused academic programs and certification pathways. A Nationwide Investment in Digital Infrastructure Uzbekistan plans to deploy two national AI clusters by 2026 with a combined computing capacity of up to one megawatt. One cluster will support academic and research institutions, while the second will focus on public-sector systems and industrial projects, including automation, healthcare analytics, and digital government services. Funding is in place for NVIDIA-powered supercomputers that will be installed at leading universities, with procurement scheduled for late 2025. The government is also creating an Industrial AI Excellence Center backed by a $3 million investment. The facility is expected to begin operating in 2026 and will concentrate on...

4 months ago

Kazakhstan Urges Regional Cooperation to Save the Aral Sea

Kazakhstan has intensified its efforts to restore its portion of the former Aral Sea, calling on neighboring Central Asian states to increase their participation in regional environmental cooperation. Once the world’s fourth-largest lake, the Aral Sea has become a symbol of ecological catastrophe. Experts warn that international efforts remain inadequate. How the Sea Died Straddling the border between Kazakhstan and Uzbekistan, the Aral Sea began to shrink in the 1960s when large-scale irrigation projects diverted water from its two main tributaries, the Amu Darya and Syr Darya rivers, to support cotton production and agriculture. A growing regional population added further strain. By 1989, the sea had split into the Northern (Small) and Southern (Large) Aral Seas. In 2014, the eastern basin of the Southern Aral Sea dried up completely. Today, the Aralkum Desert occupies much of what was once open water. Kazakhstan has since focused on restoring the Northern Aral Sea. [caption id="attachment_37684" align="aligncenter" width="2560"] A ship stranded in the desert, Moynaq, Uzbekistan; image: TCA, Stephen M. Bland[/caption] The restoration of the Northern Aral Sea has already yielded visible environmental and social benefits. Rising water levels have lowered salinity, allowing several native fish species to return. Local fisheries, once thought lost, are now active again in communities such as Aralsk. According to the Ministry of Ecology, the annual fish catch in the North Aral has risen more than tenfold since the early 2000s, reviving local employment and boosting food security. Experts note that even small ecological gains have had a profound psychological impact on residents who once witnessed the sea’s disappearance. Call for Renewed Efforts On October 15, Kazakhstan called for expanded international cooperation to protect both the Aral and Caspian Seas. First Deputy Minister of Foreign Affairs, Yerzhan Ashikbayev, speaking at the International Astana Think Tank Forum-2025, emphasized Kazakhstan’s contribution to the global climate agenda. He noted that a regional climate summit, set to be held in Astana in 2026, would provide a platform for coordinated strategies and joint decision-making among Central Asian nations. “Astana also calls for increased international participation in solving environmental problems and preserving the water resources of the Aral and Caspian Seas,” Ashikbayev said. Earlier, on October 10, Prime Minister Olzhas Bektenov met with senior officials from Tajikistan, Uzbekistan, and Turkmenistan during the second meeting of the Board of the International Fund for Saving the Aral Sea (IFAS), chaired by Kazakhstan. The event highlighted the need for a united regional approach, noting that restoration of the Aral Sea can be achieved through collective action. Bektenov acknowledged the challenges of the recent growing season, but said regional cooperation had helped maintain a stable water regime in the basin. “Each country has its own national interests, and we are obliged to defend them and will always do so. But I am convinced that our common strategic, long-term priority is good neighborly relations. In solving everyday short-term tasks, we must not undermine long-term priorities. I think that we will take joint measures to ensure that issues are always...

5 months ago

Kyrgyz President Denounces “Politicized” Sanctions on Banks

President Sadyr Japarov has sharply criticized the United States and United Kingdom for imposing what he has called unfounded sanctions on Kyrgyz financial institutions, urging Western leaders to stop “politicizing the economy.” In an interview with state news agency Kabar, Japarov defended two state-owned banks – Keremet Bank and Capital Bank – against allegations that they helped Russia skirt international sanctions, insisting that no evidence of violations has been presented. Neither the UK nor the U.S. has provided a single fact of violation… such facts simply do not exist,” Japarov said, dismissing the sanctions as politically motivated. UK and U.S. Target Kyrgyz Banks for Russia Sanctions Evasion Japarov’s comments come after a new wave of Western measures targeting Kyrgyzstan’s banking and crypto sectors for purported links to Russian sanctions evasion. On August 20, London sanctioned Kyrgyzstan-based Capital Bank – along with its director, Kantemir Chalbayev – alleging the bank was being used by Moscow to pay for military goods as part of a “convoluted scheme” to evade sanctions. The British authorities also blacklisted two Kyrgyz cryptocurrency exchanges - Grinex and Meer - that ran the infrastructure for a new rouble-backed crypto coin called A7A5, which moved an estimated $9.3 billion in just four months and was “intentionally created to evade sanctions.” The UK’s sanctions minister, Stephen Doughty, warned that “laundering transactions through dodgy crypto networks” would not soften the blow of Western sanctions. These steps followed a U.S. Treasury designation in January 2025 against Keremet Bank, a mid-sized Kyrgyz lender, for creating a hub for trade payments that helped Moscow evade restrictions. U.S. officials allege that Keremet Bank facilitated cross-border transactions for Russia’s sanctioned Promsvyazbank and even sold a controlling stake to a firm linked to a pro-Kremlin oligarch – moves Washington viewed as part of a secret channel to re-export dual-use goods and finance Russia’s defense sector. Those actions marked one of the first instances of Western “secondary sanctions” against Central Asian entities – penalties on third-country institutions accused of abetting a sanctioned nation’s activities. Kyrgyz Government’s Defensive Measures President Japarov contends that Kyrgyzstan has been proactive in compliance and that the West’s suspicions are misplaced. He noted that 21 banks operate in Kyrgyzstan, and authorities deliberately limited all Russian rouble transactions to just two state-controlled banks to shield the rest of the financial sector from any inadvertent sanctions breach. “To prevent any of them from falling under sanctions, we decided that only the state-owned Keremet Bank would work with the Russian rouble… All operations are under state control, and the income goes directly to the state treasury,” Japarov stated. Earlier this year, the government expanded this approach by channeling rouble remittances and payments through Capital Bank, which was brought under 100% state ownership in April. The National Bank of Kyrgyzstan ordered that all cross-border transfers in roubles – including the billions of roubles sent home by Kyrgyz migrant workers each day – be processed exclusively via Capital Bank. Kyrgyz officials argued this centralization was meant to “ensure transparency of...

7 months ago

China Strengthens Partnerships Across Central Asia at Landmark Summit

Chinese President Xi Jinping’s visit to Astana on June 16, ahead of the Second China-Central Asia Summit, marked a significant milestone in fostering deeper partnerships between China and Central Asia. With all of the region’s nations in attendance, the summit saw agreements signed across sectors such as energy, infrastructure, agriculture, and technology, solidifying China’s growing influence in the strategically vital region. According to Kazinform, China and the Central Asian nations are poised to finalize over 35 memorandums collectively valued at more than $17 billion during the second China-Central Asia Business Council meeting in Astana on June 17. A Lavish Welcome and Key Agreements [caption id="attachment_33021" align="aligncenter" width="2560"] Image: Akorda[/caption] Xi Jinping arrived in Astana amid unprecedented pomp and ceremony, including an honor guard, traditional dances, children in national costumes, and an escort of Kazakh Air Force fighter jets. This grand welcome highlighted the importance of the China-Kazakhstan partnership. During talks with Kazakh President Tokayev, the two leaders oversaw agreements spanning areas such as energy, space, agriculture, intellectual property, tourism, healthcare, science, and the digital economy. Tokayev spoke about Kazakhstan’s plans to build several nuclear power plants, including one with the involvement of China National Nuclear Corporation (CNNC). Characterizing CNNC as a “reliable strategic partner,” he also emphasized Kazakhstan’s role as a supplier of natural uranium and nuclear fuel to China. “CNNC is known worldwide for its high competence, so it will certainly occupy a worthy niche in our market,” Tokayev stated. Infrastructure development under China's Belt and Road Initiative (BRI) also took center stage. Plans to modernize logistics corridors, simplify customs procedures, and build new border facilities were discussed, reinforcing Kazakhstan’s role as a critical transit hub. The bilateral meeting was preceded by joint events, where business leaders from both nations signed dozens of agreements, including a $1 billion loan from the China Development Bank to the Development Bank of Kazakhstan. Another significant agreement saw Kazakhstan partnering with CNNC, Xiamen Wanli Stone, and the Satpayev Institute of Geological Sciences to explore cross-border ore belts and uranium extraction. Kazakhstan’s Role as a Regional Leader Kazakhstan has become central to China’s regional strategy, a focus reinforced during Xi Jinping’s visit, where Tokayev described China as a “close friend and reliable partner.” Kazakh Deputy Prime Minister and Minister of the National Economy, Serik Zhumangarin, meanwhile, highlighted the increasing significance of cooperation in agriculture and logistics within the region. “Central Asia is a key region for the development of dryland farming in the world. Currently, the countries of the region are actively promoting and diversifying the export of organic agricultural products to the Chinese market. Camel milk from Kazakhstan, cherries from Uzbekistan, dried fruits from Tajikistan, honey from the Kyrgyz Republic, and cotton from Turkmenistan are increasingly entering the Chinese market and are highly appreciated by consumers,” he stated. Zhumangarin also stressed the critical role of transport infrastructure in facilitating connectivity. At present, over 80% of land transportation between China and Europe passes through Kazakhstan. “We are interested in further deepening cooperation within China’s...

9 months ago