Our People > Vagit Ismailov

Vagit Ismailov

Journalist

Vagit Ismailov is a Kazakhstani journalist. He has worked in leading regional and national publications.

Articles

YONAR

Artists Build a Temporary White Salt City in Karakalpakstan

For three days, a city appears on the Barsakelmes salt flat in Karakalpakstan. It has no permanent residents, shops, or spectators. There are tents and yurts, art installations, music, and several dozen people who have come to build, paint, perform, cook, and live together. Then the city disappears. The second international YONAR experimental art festival is taking place in Uzbekistan’s Kungrad District from September 17 to 19. Its site is about 200 kilometers from Nukus. Organizers call the temporary settlement White Salt City. There is no conventional festival audience: anyone who comes to YONAR becomes a participant. They can create an installation, play music, run a workshop, help build the camp, or take responsibility for part of the community’s daily life. Participation is free, subject to application. There is no commercial trade or advertising. After three days, participants are expected to dismantle the camp and remove their belongings and waste. YONAR follows a leave-no-trace principle: the salt flat should be left without signs of the temporary city. YONAR was created by the team behind Stihia, an electronic music, art, and science festival that originated in Karakalpakstan. Some of its principles clearly echo Burning Man: instead of a stage and an audience, there is a space created by the participants themselves; instead of commerce, exchange and communal living; instead of permanent architecture, structures built to last only a few days. The setting gives YONAR its particular character. The white surface of the salt flat has almost none of the usual landmarks. During the day, there is salt, horizon, and harsh light; at night, darkness and an open sky. Against this backdrop, even a temporary structure begins to look like part of the landscape. The first YONAR was held here on September 11-13, 2025. According to Uzbekistan’s Tourism Committee, 35 local and international participants created six major installations: Sphere, Monolith, Teleport, Statue of Amorphosis, Hologram of the Future, and Art Car Scorpion. Participants lived in five yurts, with generators providing electricity. At the end, Sphere and Teleport were burned, the other structures were dismantled, and the camp area was cleaned. This year’s theme is dreams. Surrealism, absurdity, and the space between reality and imagination come with an almost ready-made setting here: an empty salt horizon. More than 70 applications were submitted. Organizers expected around 40 participants from Tashkent, Nukus, Moynaq, Almaty, Bishkek, Berlin, Vienna, London, Moscow, and other cities. Barsakelmes is in Karakalpakstan, in the wider Aral Sea region. But describing the festival site simply as the dried bed of the Aral Sea would be misleading: YONAR takes place on the distinct Barsakelmes salt flat in Kungrad District. Outside Central Asia, Karakalpakstan has for decades appeared in the news largely alongside the words “Aral Sea,” “environmental disaster,” and “desertification.” YONAR uses the region’s stark landscape differently, as a space for contemporary art. The state is also taking an interest. The festival is being held with the support of Uzbekistan’s Tourism Committee. The Tourism Committee has announced familiarization tours for journalists, bloggers, and...

5 days ago

Almaty Museum of Arts

Almaty Museum of Arts Begins Centre Pompidou Partnership With The Clock

A year after opening, Almaty Museum of Arts (ALMA) has brought one of contemporary art’s best-known works to Kazakhstan: Christian Marclay’s The Clock, a 24-hour artwork assembled from thousands of film and television clips. The installation, jointly owned by Centre Pompidou, Tate, and the Israel Museum, marks the beginning of a long-term partnership between the Almaty museum and its Paris counterpart. The Clock opened to the public on September 12 and will run through October 12. The work is being shown in Central Asia for the first time. Marclay created it in 2010 from thousands of fragments of films and television programs showing clocks or referring to time. Together, they form exactly 24 hours of screen time synchronized with the real world. If a visitor watches The Clock in Almaty at 3:42 p.m., it is also 3:42 p.m. on screen. In 2011, the work won the Golden Lion at the Venice Biennale. A year later, it was jointly acquired by Centre Pompidou, Tate in London, and the Israel Museum in Jerusalem. The Clock has since been shown at major museums around the world. Four 24-hour screenings are scheduled in Almaty, on September 19 and 26, and October 3 and 10. “Cooperation with Centre Pompidou is not a one-off event, but the beginning of a long story,” museum founder Nurlan Smagulov said in the museum’s announcement of the exhibition. ALMA opened on September 12, 2025. At its core is Smagulov’s collection of more than 700 works of modern Kazakh art, assembled over the past three decades. It includes works by Salikhitdin Aitbayev, Sergey Kalmykov, Yerbossyn Meldibekov, and other leading Kazakh and Kazakhstan-based artists. According to the museum, more than 460,000 people visited ALMA during its first year. The museum staged four major exhibition projects, including a solo exhibition by video art pioneer Bill Viola. For its first anniversary, it opened Müsinder, an exhibition spanning seven decades of Kazakh sculpture. More than 110 other events included lectures, discussions, concerts, and film screenings. The museum also published three books. The arrival of The Clock marks a new stage in the young museum’s international ambitions. Centre Pompidou has been expanding its presence beyond Paris for more than a decade. Its Paris building is closed for renovation until 2030, giving added scope to its international exhibition program. Málaga opened in 2015, and a project in Shanghai followed in 2019. Centre Pompidou Hanwha opened in Seoul in June 2026, while KANAL–Centre Pompidou is due to open in Brussels in November. Another site is planned for Foz do Iguaçu, Brazil, in 2028. The model varies between locations, with Centre Pompidou providing works from its collection, expertise, and jointly developed programs rather than simply reproducing its Paris museum abroad. Almaty is pursuing a different model again. There will be no Pompidou branch here: ALMA remains an independent private museum. For now, the partnership can be seen quite literally – in a darkened gallery where Marclay’s screen keeps Almaty time. The museum says its international network will expand again...

6 days ago

C5+South Korea

Kazakhstan Courts South Korean Investment During Tokayev’s Seoul Visit

Kazakhstan is using President Kassym-Jomart Tokayev’s state visit to Seoul to press for deeper South Korean involvement in its critical-minerals sector, seeking to extend a relationship already built around cars, energy, and infrastructure into mining and processing. On September 15, Tokayev is holding talks with South Korean President Lee Jae Myung, with a packed agenda that includes trade, energy, critical minerals, and artificial intelligence. The two sides are expected to exchange 13 bilateral memorandums of understanding following the meeting. Ahead of the visit, Kazakhstan’s Foreign Minister Mukhtar Tileuberdi told South Korea’s Yonhap News Agency that artificial intelligence and critical minerals were among the promising areas for expanded cooperation. South Korea is a major producer of cars, batteries, electronics, and semiconductors, but is heavily dependent on imported critical minerals and other raw materials. Kazakhstan, meanwhile, has a large mineral resource base and is seeking foreign technology and capital for exploration, mining, and processing. On September 14, Nurlan Zhakupov, CEO of Kazakhstan’s sovereign wealth fund Samruk-Kazyna, met South Korean Minister of Trade, Industry and Resources Kim Jung-kwan in Seoul. They discussed oil and gas projects, energy, and the mining and metallurgical sector. Zhakupov held separate talks with Kwon Yi Kyun, president of the Korea Institute of Geoscience and Mineral Resources (KIGAM), focused on geological exploration and the extraction of critical minerals. KIGAM has been cooperating with Tau-Ken Samruk since 2024, when it signed a memorandum with the Kazakh mining company and the Ministry of Industry and Construction. The two sides are exploring opportunities in mineral resources and processing technologies. Kazakhstan and South Korea are also establishing a joint research center in Almaty to study rare-earth elements and other strategically important metals.. The center is intended to support research into processing technologies and train specialists. Korean business is already well established in energy. Hyundai Engineering is part of the consortium selected to build a gas processing plant at the Karachaganak field with an annual capacity of 5 billion cubic meters. QazaqGaz is leading the project, with Hyundai Engineering and Italy’s SICIM serving as EPC contractors. The presence of South Korea’s automotive industry in Kazakhstan dates back even further. Hyundai vehicles are produced in Almaty, while Kia opened a $310 million plant in Kostanay in 2025 with capacity to produce up to 70,000 vehicles a year. South Korea and the Broader Region Seoul is stepping up its engagement with Central Asia as a whole. On September 14, South Korea held its first industry ministerial meeting with the five countries of the region, with critical minerals and supply chains among the main topics. The first South Korea-Central Asia Summit is scheduled for September 16. Major economies are already competing for mineral projects in the region. China has long been involved in mining and processing, the European Union is developing raw-material partnerships with Kazakhstan and Uzbekistan, and the United States is stepping up its work on critical minerals. South Korea is also gaining a financial tool for such projects. In May, Korea Eximbank and the state-backed...

1 week ago

Central Asia-South Korea summit 2026

South Korea and Uzbekistan Sign 13 Agreements as Seoul Deepens Cooperation Across Central Asia

Uzbekistan and South Korea signed 13 cooperation documents during President Shavkat Mirziyoyev’s visit to Seoul on September 14, covering areas including critical minerals, artificial intelligence, rail transport and defense. South Korean President Lee Jae Myung will host the first summit with all five Central Asian states on September 16. The five Central Asian presidents due to attend are Kazakhstan’s Kassym-Jomart Tokayev, Uzbekistan’s Shavkat Mirziyoyev, Kyrgyzstan’s Sadyr Japarov, Tajikistan’s Emomali Rahmon, and Turkmenistan’s Serdar Berdimuhamedov. Mirziyoyev’s talks opened a series of bilateral meetings running through September 16, with Kazakhstan and Turkmenistan scheduled for September 15, and Tajikistan and Kyrgyzstan the following morning. Among the Uzbek agreements is a memorandum to launch feasibility studies under South Korea’s Economic Development Cooperation Fund on the introduction of eight high-speed train sets and the establishment of a national genome and biobank center. The projects’ scope will depend on the studies’ findings. Uzbekistan had already agreed to purchase six high-speed trains from Hyundai Rotem in 2024. The Export-Import Bank of Korea and Uzbekistan’s investment ministry also agreed to identify potential projects and explore financing in six priority areas. These include critical minerals, AI and data centers, smart cities, an industrial complex for Korean companies, pharmaceuticals and biotechnology, and food, beauty and cultural industries. The presidents also agreed to use the Korea–Uzbekistan Rare Metals Center as a base for strengthening cooperation across exploration, development and processing. They agreed to expand cooperation on the use of AI in manufacturing. The package includes a defense cooperation contract involving Korea Aerospace Industries and an Uzbek counterpart. The South Korean government’s published summary did not identify the equipment or disclose the contract’s value. The agreements build on South Korea’s established economic presence across Central Asia. Its foreign ministry identifies Kazakhstan as its largest investment destination in the region, based on investment data through 2023. Kazakhstan’s industry ministry has put bilateral industrial cooperation at 46 joint projects worth about $3.9 billion, covering Hyundai and Kia vehicle production, Hyundai trucks and buses, ferroalloys and Samsung home appliances. Hyundai Trans Kazakhstan, part of Kazakhstan’s Astana Motors, produced 52,040 vehicles in Almaty in 2025, while Kia Qazaqstan began operating in Kostanay late that year, according to TCA’s reporting on Kazakhstan’s automotive industry. Korean companies are also involved in transport infrastructure and urban development. A Turkish–South Korean consortium secured the Big Almaty Ring Road public-private partnership, while South Korean partners are involved in the planned K Smart City district at Alatau. South Korean companies have participated in major industrial projects in Turkmenistan, including the Kiyanly gas chemical complex and gas processing facilities at the Galkynysh field. Daewoo Engineering & Construction is working on a mineral fertilizer production complex in Turkmenabat, where South Korea’s ambassador reviewed construction preparations in June. Turkmenistan’s foreign ministry has also highlighted Korean participation in transport infrastructure and shipbuilding. In Kyrgyzstan, South Korea has provided technical assistance to the textile sector and committed funding for a five-year digital-transformation program starting in 2026. The two governments are also examining potential cooperation involving Kyrgyzstan’s antimony...

1 week ago

Astana Finance Days 2026

S&P Bolsters Kazakhstan’s Standing as Central Asia’s Financial Hub

S&P Global Ratings has improved its assessment of Kazakhstan’s banking industry as Astana Finance Days opens on September 9, lowering the industry risk score for the country’s banking system from 7 to 6 and citing stronger regulation and supervision. According to Kazakhstan’s Agency for Regulation and Development of the Financial Market, the September 4 decision improved the industry risk component of S&P’s Banking Industry Country Risk Assessment, or BICRA. S&P also changed the trend on Kazakhstan’s separate economic risk assessment from stable to positive. S&P’s BICRA framework evaluates banking systems on a scale of 1 to 10, with lower numbers indicating lower risk. Industry risk assesses factors including banking regulation and supervision, competitive dynamics, and the stability of systemwide funding. Kazakhstan’s overall BICRA grouping remains at 7, while its industry risk score improved from 7 to 6. The industry risk comparison puts the change in perspective. S&P’s published assessments place the United States at 3, Germany at 4, and Brazil at 5. Kazakhstan’s new score of 6 places it alongside banking systems including Bahrain, Oman and Thailand in recent S&P assessments. Within Central Asia, the difference is wider. S&P has assigned Kyrgyzstan an industry-risk score of 8 and Uzbekistan a score of 9. S&P does not currently publish BICRA assessments for Tajikistan or Turkmenistan. S&P also considers Kazakhstan’s banking regulation and supervision more effective than those of Uzbekistan, Kyrgyzstan, Armenia, and Azerbaijan, according to the Kazakh regulator. Stronger Supervision The regulator attributed S&P’s decision to regular asset-quality reviews, risk-based supervisory assessments and measures to limit excessive bank risk-taking, particularly in retail lending. It also cited tighter capital and liquidity oversight and stress testing. The change has already affected individual institutions. The regulator reported an upgrade of the Bank Center Credit’s long-term rating to BB+, while Halyk Bank’s BBB− rating received a positive outlook, indicating the possibility of a future upgrade. The banking decision follows S&P’s August 21 sovereign upgrade from BBB− to BBB with a stable outlook. Kazakhstan remains Central Asia’s only investment-grade sovereign. In an interview with TCA, National Bank Governor Timur Suleimenov linked that improvement to a stronger monetary policy framework, banking resilience, and closer coordination with the government. Kazakhstan also has Central Asia’s most developed capital markets. Almaty’s banks, professional services and Kazakhstan Stock Exchange operate alongside the Astana International Financial Centre and its exchange, giving the country an established concentration of financial business. Capital on the Agenda The timing of S&P’s decision gives the assessment added relevance as Kazakhstan hosts Astana Finance Days. The forum’s announced program includes regulation, law and market confidence, capital market development, and financing for the real economy. Organizers expect more than 5,500 participants from over 80 countries, with representatives of BlackRock, Goldman Sachs and Brookfield among the confirmed speakers. In an August 27 interview with TCA, Zhanbolat Kakishev, chief product officer at the AIFC Authority, said a cumulative $26.3 billion in investment had been attracted to Kazakhstan through the center’s ecosystem, which included more than 6,000 registered companies from 90 countries....

2 weeks ago

Transport Digitalization

Kazakhstan Rolls Out AI Tools Across Its Transport Networks

Kazakhstan is turning to artificial intelligence to help decide where its airlines should fly and which roads need repair, while other systems aim to move freight across its borders faster. The projects are part of a series of government digital systems intended to increase the country’s role as a regional transport hub. Air One of the most prominent projects is Echelon Alpha. The platform analyzes passenger demand and competition between aviation hubs to assess the economics of individual routes. It has already identified around 30 promising routes that could generate additional direct or transit passenger traffic for Kazakhstan. The full list has not been made public, although its developers have cited a potential Hyderabad–Astana–Moscow connection as an example of a route modeled by the system. Kazakhstan’s favorable location between China and Europe does not automatically turn Astana and Almaty into international aviation hubs. They have to compete for transit traffic with airports in Baku and Istanbul, as well as those in the Gulf states. According to Kazakhstan’s Transport Ministry, the model processed data covering around 200 million flights over the past five years, along with approximately 170 airline reports. It also combines geomarketing data with information from open and commercial sources. Its claimed forecasting accuracy is up to 90%. “Echelon Alpha uses artificial intelligence to analyze market dynamics in real time and provide a basis for fast, accurate solutions,” said Echelon Alpha founder Rakhman Asambayev in an interview with Forbes Kazakhstan. The system assesses the commercial viability of new routes and their potential effect on the economy. Its developers estimate that the proposed network could have an annual economic impact of around $153 million, although the figure has not been independently verified. Kazakhstan is also introducing biometric Q-Gate terminals at its airports. They verify passport data against facial biometrics in 15 to 50 seconds, four to five times faster than standard checks, according to government estimates. Road Launched around two months ago, e-Joldar uses AI to track road conditions and repair spending, while also collecting data on the quality of construction materials. More than 25,000 miles of national roads have already been digitized. By the end of the year, monitoring is expected to cover the country’s entire road network of around 115,000 miles. Smart Cargo may have a more immediate effect on international freight operators. The platform combines data from 58 information systems in a single digital portal. Authorities say operators can access cargo information through a QR code. AI checks documentation and identifies the necessary permits, while the platform helps determine routes and tracks shipments. The government says Smart Cargo has increased border-crossing speeds by 30% and cut carrier waiting times by a factor of 10. These figures are based on government estimates. Rail On the rail network, digitalization is being paired with major capacity expansion as Kazakhstan pursues its transit ambitions, including through the Middle Corridor. KinetiX performs contactless diagnostics of rolling stock. Government figures indicate that it has reduced technical inspection times by 30% and manual measurements...

4 weeks ago

Power Grid

August 14 Blackout: Kazakhstan and Kyrgyzstan Continue to Dispute Its Cause

The blame game over Central Asia’s August 14 blackout continues. Kazakhstan’s Energy Minister Yerlan Akkenzhenov says the large-scale blackout began with the shutdown of two generating units at the Toktogul Hydroelectric Power Plant (HPP) in Kyrgyzstan. Bishkek does not dispute that the failure occurred but rejects the claim that it was the direct cause of the subsequent outages across several countries. Akkenzhenov identified the events in Kyrgyzstan as the starting point of the emergency. According to him, the initial disturbance occurred on August 14 at 2:37 p.m. Kazakhstan time, or 3:37 p.m. in Kyrgyzstan, when generating units No. 1 and No. 2 at the Toktogul HPP went offline. The loss of generation altered operating conditions in Central Asia’s interconnected power system and led to a redistribution of power flows in southern Kazakhstan. A government commission in Kazakhstan is expected to make the final determination. Kazakhstan’s grid operator KEGOC had earlier provided a more detailed chronology. At 2:37 p.m., three 500 kV transmission lines tripped, separating southern Kazakhstan and the Central Asian grid from the rest of Kazakhstan’s power system. About 2,810 MW of consumer load was temporarily cut off. KEGOC later said that immediately beforehand, two generating units at the Toktogul HPP, with a combined capacity of about 600 MW, had gone offline. The resulting changes in power flows overloaded Kazakhstan’s North–East–South transmission corridor, triggering emergency protection systems. Akkenzhenov said the protection systems had worked effectively and praised KEGOC’s response. Kazakhstan’s power system was restored in approximately 2.5 hours. Kyrgyzstan acknowledges that the two units went offline. The country’s Energy Ministry described the incident as the “initial disturbance” in the interconnected power system, but stressed that the first event in an emergency sequence cannot automatically be considered the cause of all subsequent outages. According to its account, by 3:55 p.m. Kyrgyzstan time — 2:55 p.m. in Kazakhstan — the frequency in the interconnected power system had returned to the normal 50 Hz. At that point, Kyrgyzstan was also supplying neighboring power systems with about 250 MW. Bishkek maintains that the outage affecting the Almaty power hub occurred after normal frequency had already been restored. Kyrgyz energy officials therefore consider it premature to directly attribute all subsequent events to the failure at the Toktogul HPP. The disagreement, therefore, is less about what happened first than about the causal link between the initial failure and the chain of outages that followed. Why the Regional Grid Is Vulnerable The vulnerability is rooted in the architecture of the region’s power system itself. During the Soviet period, its power plants and high-voltage transmission lines were designed to operate as a single interconnected system rather than around today’s national borders. Energy ties weakened after the collapse of the Soviet Union, but in recent years the countries have again expanded parallel operation of their power systems. Kazakhstan, Kyrgyzstan, Uzbekistan, and Tajikistan are connected through the Integrated Power System of Central Asia. Cross-border power flows are coordinated by the Energia Coordinating Dispatch Center in Tashkent. Hydropower in Kyrgyzstan and...

4 weeks ago

Kurultai Election

Final Results Give Adilet 110 Seats in Kazakhstan’s Kurultai

Kazakhstan has announced the final results of the first election to its new unicameral parliament, the Kurultai. Adilet, a party created only a few months ago, won more than 71% of the vote. Four other parties cleared the 5% threshold, while two failed to enter parliament. According to the Central Election Commission, Adilet received 6,528,948 votes, or 71.17% of the vote. Auyl came second with 6.26%, followed by Respublica with 5.56%, Aq Zhol with 5.21%, and the Nationwide Social Democratic Party (OSDP) with 5.11%. The People’s Party of Kazakhstan received 3.11%, while the green Baytaq party won 1.07%. Another 2.51% of voters selected the “against all” option. The new Kurultai has 145 seats, with all deputies elected through party lists. Under the final allocation, Adilet receives 110 seats, Auyl 10, Respublica nine, and Aq Zhol and the OSDP eight each. A total of 9.35 million people voted, putting final turnout at 74.08%, compared with 54.19% in the 2023 parliamentary elections. The regional differences were substantial: official turnout reached 92.16% in the Turkestan region, but just 43.23% in Almaty. Low turnout in Kazakhstan's largest city is not new — Almaty also recorded the country's lowest figure in 2023. In its preliminary assessment, the OSCE Office for Democratic Institutions and Human Rights described the election as technically well prepared and said opening and voting largely followed established procedures. It also cited limited political pluralism, discrepancies between observed voter activity and official turnout figures, and procedural violations during the vote count. The election was the first held under Kazakhstan’s new constitutional system. The new Constitution was approved in a referendum on March 15. It was supported by 87.15% of those who voted, with turnout at 73.12%. The document entered into force on July 1, abolishing the previous Senate-Mazhilis structure and replacing it with the 145-seat Kurultai, elected entirely through party lists. Although Adilet itself is new, the party inherited much of the structure of the country’s former dominant party, Amanat. Adilet was established at a founding congress on May 7 and registered on June 1. It is led by Aibek Dadebay, a former head of the Presidential Administration. In June, Amanat – the country’s largest political party and the successor to the ruling party of the Nursultan Nazarbayev era – voted to merge into Adilet. The merger gave the new organization an extensive regional network and much of Amanat’s party apparatus. Pre-election polling had already shown Adilet with a commanding lead. In early August, a survey by the Institute of Eurasian Integration put its support at 65.1%. For the other parties, the main uncertainty was not who would win the election, but which of them would clear the 5% threshold. The People’s Party accepted the preliminary result. Baytaq initially took a different position, alleging violations and saying it would seek to establish the “real results.” However, on August 24, Baytaq leader Azamatkhan Amirtayev said he had no confirmed evidence that would give him grounds to question the voters’ choice, canceled a planned press conference,...

4 weeks ago

Foreign Policy

Kazakhstan Updates Its Foreign Policy Concept in a More Difficult Era

President Kassym-Jomart Tokayev has approved targeted amendments to the document that sets the principles and priorities for Kazakhstan’s dealings with the outside world. The changes align the doctrine with Kazakhstan’s new constitutional order, remove its remaining provisions tied to Nazarbayev’s formal role, and come at a time when multi-vector diplomacy has become far more demanding than it was in 2020. The amendments to the Foreign Policy Concept for 2020–2030, signed on August 14, attracted attention after KazTAG reported on them. Kazinform subsequently highlighted changes concerning the protection of citizens abroad, public understanding of foreign policy and the new Kurultai. A Foreign Policy Concept is Kazakhstan’s overarching diplomatic doctrine. It sets the principles, priorities and responsibilities intended to guide state policy through 2030. The August changes are limited in length. They remove its remaining references to Nursultan Nazarbayev’s formal role, bring the document into the Kurultai era, and give the Astana International Forum formal recognition in the doctrine. Other language now attracting attention is older. Sovereignty, protection of citizens, and resilience to negative external influence were already in the 2020 document. The difference is the world in which Kazakhstan now has to apply them. From Personal Legacy to Institutional Continuity The first principle in the 2020 concept referred to continuity with the foreign policy course of the First President and Elbasy, Nursultan Nazarbayev. The new wording promises “continuity of the foreign policy course at a new stage of the country’s development.” The revised text no longer names Nazarbayev or uses the Elbasy title. The amendments also remove a provision that gave the First President a lifelong right to address the public and state bodies on major foreign policy questions. The Constitutional Law on the First President was repealed in 2023, and the concept no longer lists it among its legal foundations. This follows a process that began years ago. The special legal provisions associated with the Elbasy framework have been repealed, while Tokayev has continued to acknowledge Nazarbayev’s place in the history of independent Kazakhstan. Tokayev was also closely involved in the foreign policy he inherited. He served twice as foreign minister, as prime minister, and later as director-general of the United Nations Office at Geneva. The revised concept places foreign policy continuity on an institutional rather than personal basis. Adapting the Foreign Policy Concept to the New Constitution Kazakhstan’s new Constitution came into force on July 1, replacing the Senate and Mazhilis with a unicameral Kurultai. The first election to the 145-seat body is scheduled for August 23. The old concept described the foreign policy functions of the bicameral parliament. The amended version now identifies the Kurultai as Kazakhstan’s highest representative body exercising legislative power. Signed nine days before the election, the change places the foreign policy doctrine inside the wider constitutional transition and removes references to institutions that no longer exist. The revision also fits Tokayev’s broader effort to move Kazakhstan beyond a political system shaped by the formal privileges of its first president and towards one intended to...

1 month ago

Currency

Kazakh Tenge Rises as Foreign Investors Buy Government Debt

Kazakhstan’s tenge has strengthened by 9.7% against the dollar since the start of 2026, making it the best-performing currency across Europe and Asia, according to the Financial Times. The newspaper points to an influx of foreign capital into Kazakhstan’s government debt: nonresident holdings of tenge-denominated bonds have risen from roughly $2 billion to $5 billion over the past year. The appreciation has come despite serious disruptions to Kazakhstan’s oil exports through Russia. Kazakh data show that foreign interest in government securities did not begin this summer. In July alone, nonresidents increased their holdings by 92.2 billion tenge, about $195 million, to 2.6 trillion tenge, or roughly $5.5 billion. Since the start of the year, their portfolio has grown by 32.9%, while their share of the market has risen from 6.2% to 7.2%. The Association of Financiers of Kazakhstan (AFK) attributes the interest to high real interest rates and relative macroeconomic stability. Why Foreign Investors Are Buying Kazakh Debt During 2025, nonresident holdings of Kazakh government securities rose from roughly 1.1 trillion tenge, about $2.3 billion, to 2 trillion tenge, about $4.2 billion. Growth continued this year. In June alone, foreign investors added 185.1 billion tenge, about $390 million, bringing their total holdings to 2.5 trillion tenge, roughly $5.3 billion. Their share of the market increased from 6.2% to 6.9% by then. The reason for the interest is fairly straightforward: Kazakhstan offers high yields while maintaining an investment-grade credit rating. The base rate remained at 18% through the spring. The National Bank cut it to 17% in June and announced a further cut to 16.75% on July 24. Annual inflation, meanwhile, declined for a ninth consecutive month and stood at 10.3% in June. For foreign investors, the combination of high interest rates and a strengthening tenge creates an opportunity to earn both on bond yields and currency appreciation. For the tenge itself, the same transaction works in reverse: before buying a Kazakh security, a foreign investor has to acquire the national currency. In June, AFK analysts cited nonresident transactions among the factors supporting the tenge, alongside foreign-currency sales by exporters, state-controlled companies, and the National Bank. Market Access Is Becoming Easier High yields alone do not explain the growing interest. Kazakhstan is also trying to make its domestic debt market easier for international investors to access. A primary dealer system has been operating since May 4. Five banks were granted primary dealer status and are expected to support the government securities market, including buying and selling bonds in the secondary market. In April, the National Bank announced that Euroclear had begun a project to make Kazakhstan’s government bonds eligible for settlement through its international system. A direct link with the local market infrastructure is planned for 2027. For foreign investors, this would make it possible to trade Kazakh government debt through a familiar global settlement system, alongside the existing Clearstream channel. Kazakhstan is also seeking eventual inclusion of its tenge-denominated government bonds in JPMorgan’s GBI-EM, one of the main international indexes for emerging-market government...

1 month ago

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