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U.S.-Kazakhstan Relations

Kazakhstan Central Bank Chief Eyes Deeper U.S. Investment Links

Addressing senior executives from more than a dozen Fortune 100 companies active in Kazakhstan at a U.S. Chamber of Commerce-hosted event in Washington, D.C., on April 14, Timur Suleimenov, Governor of the National Bank of Kazakhstan, laid out the country’s economic outlook and later spoke with The Times of Central Asia on a range of related issues. He was accompanied by Erzhan Kazykhan, President Kassym-Jomart Tokayev’s Special Representative for Negotiations with the United States, Deputy Foreign Minister Alibek Kuantyrov, and Kazakhstan’s Ambassador to the United States, Magzhan Ilyassov. [caption id="attachment_47306" align="aligncenter" width="1536"] Timur Suleimenov, Governor of the National Bank of Kazakhstan, with Javier Piedra[/caption] Kazakhstan’s U.S. Financial Stakes Amid Growth and Inflation Suleimenov offered a compelling case for Kazakhstan’s economy, citing steady growth, higher investment flows, and a deepening consumer market. Kazakhstan’s economy expanded 6.5% in 2025, marking a third straight year of growth above 5%. GDP per capita surpassed $15,000 – compared to approximately $3,162 in Uzbekistan and about $2,420 in Kyrgyzstan. Fixed-income investments rose 15% year-on-year, and foreign direct investment climbed to 20.5% (from 14.5%), broadening beyond oil. Suleimenov emphasized the Central Bank’s strong stewardship, citing a new tax and budget code to enhance fiscal discipline and monetary policy that supports investment, stressing that, “We will deal with inflation pressures and external shocks simultaneously while managing cryptocurrencies and private digital payments systems, which can weaken central bank control over money and policy transmission. The markets suggest that we have been doing an excellent job in a complex environment.” The government, Suleimenov said, is on track to consolidate the budget, with the deficit projected at 2.5% this year, 1.7% next year, and 0.9% by 2028, adding that this will strengthen fiscal-monetary coordination, and noting Kazakhstan’s debt-to-GDP ratio of 24% remains low compared with countries such as the United States (125%), Japan (230%), Italy (137%). As inflation declined to 11% in March 2026 from 11.7% the previous month, Suleimenov reassured TCA that officials regard it as transitory, saying that “inflation was driven by resilient domestic demand backed by fiscal and quasi-fiscal stimulation, external price pressures (Russian inflation, global food prices), increasing regulated prices (utilities and fuel), and tax reform (a VAT increase from 12% to 16%), with volatile and elevated inflation expectations. For these reasons, we responded with rate hikes and liquidity tightening, bringing inflation down to about 11%, with a further easing expected to single digits by the end of this year.” Suleimenov reaffirmed that “the United States is integral to Kazakhstan’s financial system and long-term asset strategy.” He noted that Kazakhstan manages approximately $190 billion in long-term assets, including some $75 billion in National Bank reserves, $60 billion in the National Fund, and $55 billion in the unified pension fund. Around one-third of these assets are invested in U.S. securities, while roughly $50 billion is managed by American firms, underscoring deep financial ties beyond industrial investment. TCA asked how U.S. sanctions and export controls affect Kazakhstan, a concern that was especially acute in the initial stages of the Russo-Ukrainian...

Aviation Industry

Tajikistan-Based Shohin Airlines Aims to Acquire Four Airbus Aircraft

Shohin Airlines, a new private airline registered in Tajikistan, says it is in the final stage of acquiring four planes from the Airbus A320neo line of aircraft. The airline and the European aerospace company met on April 10 to discuss the acquisition of two A320neo and two A321neo aircraft, building on a dialogue that began earlier this year at the Airbus headquarters in Toulouse, France, according to Shohin Airlines. The discussions with Airbus are showing “steady positive momentum,” and implementation of agreements “will be an important step in developing the airline’s fleet and strengthening its position in the air transport market,” the airline said in a statement on Friday. Currently, Shohin Airlines operates helicopters for specialized flights. The negotiations with Airbus reflect its plans for significant expansion into commercial passenger traffic. Last month, the airline announced a $200 million investment from a European investment fund.

Cyber Security

Kazakhstan to Train “White Hat” Hackers and AI Engineers for the Energy Sector

Kazakhstan plans to train cybersecurity and AI specialists for the energy sector as part of its broader effort to digitally transform the industry, the country’s Ministry of Energy said. In 2026, declared the Year of Digitalization and Artificial Intelligence in the electricity and heat power sector, the ministry plans to develop a professional standard titled Digitalization and the Application of Artificial Intelligence in Energy. The document envisages the creation of new professions, including “white hat” hackers and AI engineers. A “white hat” hacker is a cybersecurity specialist who legally tests IT systems for vulnerabilities with the owners’ permission. Unlike malicious hackers, such experts identify weaknesses so they can be fixed before potential attacks, thereby protecting data and infrastructure. Following a meeting of the Sectoral Council for Electricity and Heat Power Engineering under the ministry, the new standard was expanded to include the following specialties: smart grid designer, engineer for the development and implementation of AI in power systems (Smart Grid), and energy grid cybersecurity specialist (“white hat” hacker). The ministry said these professions were formulated on the basis of Kazakhstan’s Atlas of New Professions and Competencies and are intended to adapt the education system to the demands of the digital economy. The development of Smart Grid systems is seen as one of the key tasks for the next five to ten years. In the future, some energy system management functions, including dispatch control, are expected to be handed over to intelligent algorithms, requiring new competencies at the intersection of energy and IT. As part of the digitalization of the fuel and energy complex, Kazakhstan also plans to create a system of digital models and “digital twins” for facilities within the Unified Energy System as early as 2026. “Our goal is not simply to digitize processes, but to create an intelligent model of the energy system. This will improve the quality of operational management and make it possible to take strategic decisions based on precise data rather than forecasts,” Vice Minister of Energy Bakytzhan Ilyas said. According to him, the introduction of vertical online monitoring using digital twins will make it possible to track key parameters in real time from generation volumes to energy production costs. This will form the basis for tariff-setting policy and investment attraction. Kazakhstan’s energy sector is already implementing a number of projects using artificial intelligence technologies. Among them is AI-based defect detection on power transmission lines using drones, computer vision, and machine learning. The technology can identify support structure defects, overheating, and deformations using data from 4K cameras, thermal imagers, and LiDAR. Another example is robotic diagnostics of heating networks using acoustic resonance, allowing the condition of pipelines to be assessed without excavation or shutting down the system. The ministry emphasizes that the digitalization of the energy sector requires not only technological solutions, but also systematic workforce training. As previously reported by The Times of Central Asia, Kazakhstan plans to expand the use of AI across various sectors from healthcare to the fiscal sphere, including early...

Agriculture

Uzbekistan Leases 4,000 Hectares in Belarus, Signs 60,000-Ton Export Deal

Uzbekistan’s Kashkadarya region has agreed to lease 4,000 hectares of farmland in Belarus and signed a major export contract as part of efforts to expand agricultural cooperation between the two countries, according to Dunyo Information Agency. The agreements were reached during a working visit to Belarus by a delegation from Kashkadarya region. As part of the trip, Uzbek representatives visited livestock and retail facilities in the Vitebsk region, including the districts of Braslav, Shumilino, and Postavy, where they studied local production practices. Talks with the leadership of the Vitebsk Regional Executive Committee focused on strengthening economic ties and building joint production chains. One of the key outcomes was a deal between Uzbek companies “Asl Yuksalish Savdo” and “Muborak qorako‘lchilik” and the Belarusian “Sirotinsky” livestock farm. Under the agreement, the Uzbek side will lease farmland on a long-term basis to launch an agricultural project. The first stage involves breeding 1,000 head of cattle, marking the beginning of a broader investment in livestock production. At the same time, Uzbekistan is expanding its export presence in the Belarusian market. “Asl Yuksalish Savdo” signed a contract with the retail chain CJSC “Dobronom” to supply 60,000 tons of agricultural products annually. The shipments will include dried fruits, legumes, melons, and grapes. The visit also included discussions on tourism and cultural cooperation. The two sides agreed to organize study tours for tourism sector representatives to boost travel exchanges. Cultural ties are also expected to deepen, with plans for performances by the Kashkadarya Regional Theater in Minsk ahead of an upcoming high-level visit. The agreements build on broader economic cooperation between the two countries. Earlier this year, Belarus announced plans to increase bilateral trade with Uzbekistan to $2 billion by 2030. Speaking after talks with Uzbek Prime Minister Abdulla Aripov, Belarusian Prime Minister Aleksandr Turchin described the target as “ambitious but achievable,” noting that trade turnover is already approaching $1 billion.

International Transport

Kazakhstan Seeks to Strengthen Industrial Base Through Local Locomotive Manufacturing

Kazakhstan is expanding its railway engineering sector as a key pillar of its industrial policy aimed at reducing import dependence and strengthening technological sovereignty. The machinery industry remains one of the main indicators of an economy’s technological maturity. For Kazakhstan, its development represents not only domestic industrialization but also the strengthening of the country’s position as an exporter of high-value-added products. Railway engineering plays a particularly important role in this system. One of the anchor investors in the sector is Wabtec Corporation. Recently, Kazakhstan signed contracts with the company worth $4.2 billion. These agreements include the supply of 300 locomotives through 2036, as well as service maintenance, the implementation of digital systems, and equipment repair. On the sidelines of the 13th Forum of Machine Builders of Kazakhstan, Shyngys Altayuly, Product Director at Wabtec Corporation LLP, told The Times of Central Asia about the expansion of production localization and plans to manufacture a new generation of locomotives. Since 2009, the “Locomotive Kurastyru Zauyty” plant in Astana has been producing freight TE33A(S) Evolution locomotives, passenger TEP33A models, and shunting TEM11 units. Over this period, more than 700 locomotives have been manufactured for the state railway company Kazakhstan Temir Zholy, including over 40 units exported to CIS countries and neighboring markets. “With the introduction of our Evolution series TE33A locomotives in Kazakhstan, lifecycle costs have been reduced while ensuring high operational readiness across the country’s locomotive fleet,” Altayuly noted. He also emphasized that over the past 25 years, 75% of all mainline AC diesel locomotives purchased globally have been produced by Wabtec. From Imports to Sovereignty The plant has localized the production of all major components, including the main frame, diesel compartment, driver’s cab, generator, equipment and air compartments, bogie frame, and other elements. This reduces dependence on external suppliers amid unstable global logistics. At the same time, the facility is expanding cooperation with local suppliers. Kazakh enterprises produce elements of the running gear, safety systems, electronics, and a range of other components, including metal structures, driver’s cabins, wheels, and safety system components. “In this way, we are building a domestic value-added engineering chain. This includes not only locomotive production itself but also the entire component base used in assembly,” Altayuly explained. According to him, the localization level has already reached 40%, and further expansion is underway. Components planned for future localization include casting, lighting systems, heated windshields, driver’s seats, piping products, and cable systems. “Once a company becomes a supplier to JSC ‘LKZ,’ it gains access to international markets. Wabtec operates in 50 countries, and our products are used in more than 100 countries worldwide. Therefore, any enterprise that completes this process and becomes a reliable supplier will gain access to global markets,” Altayuly added. Debut of a New Locomotive The next stage of development will be the launch of the new T33AT locomotive, scheduled for production in 2027. The project is being implemented as part of the Wabtec-KTZ partnership and reflects a strategy of integrating global technologies into the national industry....

TCA Interviews

Kyrgyz Minister Sydykov Courts Investment in Washington

On the occasion of the annual IMF/World Bank meetings in Washington this week, the Prime Minister of Kyrgyzstan, Adylbek Kasymaliev, led a delegation to Washington D.C. for World Bank and IMF meetings, the Department of State Annual Bilateral Consultations, a meeting with Secretary of State Rubio, Deputy Secretary Landau and Under Secretary Hooker, as well as a number of other constructive dialogues and engagements with scholars, researchers, and authors. This trip marks the second high-level U.S. visit in a year, signaling Washington’s strategic interest and Kyrgyzstan’s willingness to deepen cooperation. Bakyt Sydykov, Kyrgyzstan’s Minister of Economy and Commerce, accompanied the Prime Minister. The delegation’s visit to Washington reinforces President Sadyr Japarov’s statement to President Donald Trump during the November 2025 C5+1 Summit, “I am confident that this event will provide an excellent opportunity for U.S. businesses to expand cooperation in sectors such as agriculture, e-commerce, information technology, transportation and logistics, tourism, and banking.” Following Japarov’s lead, Sydykov is actively engaging private and multilateral partners; state and Commerce meetings are meant to keep things moving and steady investor confidence. This shift towards deeper diplomatic, investment, and development ties is striking and certainly welcome in Washington. The shift reflects both an evolving Central Asian geopolitical landscape, post-Afghanistan dynamics, economic needs, diversification goals, and troubles in West Asia. Deeper engagement is also driven by ambitions to enhance regional transport and logistics integration. Kyrgyzstan’s approach departs from zero-sum logic, prioritizing win-win pragmatism and mutual gains. Minister Sydykov In an interview with The Times of Central Asia, Minister Sydykov said that this visit builds on the International Monetary Fund’s (IMF) recent official mission to Bishkek (March 18–April 1, 2026) and that “our banking sector is strong and well capitalized, as affirmed by the IMF, and we are well prepared against risk, enhancing oversight in the context of global volatility.” Commenting on the government’s fiscal management following the IMF’s guidance, Sydykov said: “To expand fiscal flexibility, we are mobilizing revenue across a range of standard taxation measures and raising expenditure efficiency with responsible internal wage policies, rationalized energy subsidies, and public investment management. We are pinpointing more prudent debt management measures, enhancing risk oversight, and rolling out tracking metrics to uphold long-term sustainability and credibility.” ⁠Looking forward, Sydykov noted that Kyrgyzstan is monitoring outlook risks related to external volatility, while also insisting that “we are working to hold down domestic inflation – always a challenge with rapid economic growth – and lower fiscal pressures. We assess that these endogenous variables remain manageable, even with increased exposure to cross-border trade and capital flows. While external volatility lies beyond our direct control, Kyrgyzstan is working with the IMF, other multilaterals, and domestic banks to maintain and build resilience. We are therefore strengthening buffers, recalibrating policies, and advancing accounting reforms to support performance and sustainable growth.” Responding to the ADB’s latest forecasts, Sydykov said Kyrgyzstan’s economy is moving toward greater stability and growth. After an 11.1% surge in 2025, growth is expected to slow to 8.9% in 2026 and 8.4%...