Business & Economy - The Times Of Central Asia

Viewing results 7 - 12 of 2559

Biopesticides

Kazakhstan and China to Jointly Develop Biopesticides

Kazakhstani and Chinese researchers have agreed to jointly develop biological crop protection products and prepare for their production in Kazakhstan. A memorandum of understanding was signed by the National Agrarian Research and Education Center, the Kazakh Research Institute of Plant Protection and Quarantine named after Zhazken Zhiembayev, and the Institute of Plant Protection, Chinese Academy of Agricultural Sciences (IPPCAAS). The agreement covers joint research and the development and testing of biopesticides. It also provides for technology exchange and specialist training, as well as the commercialization of research findings. The parties plan to establish local production of biological crop protection products in Kazakhstan. Kazakhstan’s Ministry of Agriculture said the project could increase the use of biological products and reduce the country’s dependence on imported crop protection supplies. The memorandum was signed during a visit by representatives of IPPCAAS, China Agricultural University, and Zhongbao. The visit included an international seminar on pest management. Researchers and specialists discussed integrated plant protection and biological pest control. They also considered phytosanitary monitoring and possible joint research projects. The Chinese delegation is expected to visit Kazakhstani research organizations and agricultural enterprises to examine local methods of monitoring major pests. The memorandum follows earlier cooperation between Kazakhstan and China in agricultural science. In recent years, the two countries have expanded joint work on plant protection and crop breeding. Cooperation has also covered food security and agricultural technologies. Interest in biological crop protection is growing elsewhere in Central Asia. A year earlier, Kyrgyzstan conducted nationwide trials of biological pesticides against locusts in an effort to reduce the use of chemical treatments and their environmental impact. Domestic production could reduce Kazakhstan’s import costs and give farmers easier access to new crop protection products. The practical impact will depend on whether the research and testing program leads to commercial-scale production.

Middle Corridor

Uzbekistan Seeks More Freight Capacity Through Kazakhstan’s Caspian Ports

Kazakhstan and Uzbekistan have instructed their national railway companies to draw up a plan to increase Uzbek freight shipments through the ports of Aktau and Kuryk, expanding Tashkent’s access to markets across the Caspian Sea. Kazakh Prime Minister Olzhas Bektenov and his Uzbek counterpart, Abdulla Aripov, discussed the plan during a July 23 visit to the Aktau International Sea Trade Port. The volume of Uzbek freight handled through Aktau and Kuryk increased by more than 60% in 2025, according to the Kazakh government. “Our task is to provide cargo from Central Asian countries with fast and reliable access to the markets of the Caucasus, Turkey, and Europe,” Bektenov said. Aktau and Kuryk are the main Kazakh ports on the Trans-Caspian International Transport Route, commonly known as the Middle Corridor. The rail-and-sea route links China and Europe through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkey. For Uzbekistan, one of the world’s two double-landlocked countries, the Kazakh ports provide access to the western section of the corridor. Freight is carried by rail to the Caspian coast before being transferred to ships bound for Azerbaijan. The two governments did not say how much additional freight they expect to carry or when the railway companies must complete their plan. Further growth will depend on tariffs, the availability of railcars and vessels, border procedures, and the capacity of railway lines serving the ports. The combined infrastructure capacity of Aktau and Kuryk is about 22 million metric tons a year, according to Yelzhas Otynshiyev, chairman of Kazakhstan Temir Zholy, the state railway company. Aktau alone can handle as much as 12 million tons annually and operates throughout the year. Container transit through the Kazakh ports on the Middle Corridor increased 3.8-fold between 2022 and 2025, the government said. The first phase of a container hub with annual capacity of 140,000 twenty-foot equivalent units has opened at Aktau. A second phase, due in 2027-2028, is expected to lift capacity to 240,000 TEUs. Kazakhstan has also ordered six container vessels. Four are due for delivery in 2027 and two more in 2028. The additional ships are intended to reduce dependence on the limited pool of vessels operating on the Caspian Sea. Capacity constraints remain at the ports and on the rail network. Falling Caspian Sea levels have made it harder for fully loaded vessels to enter some harbors and increased the need for dredging. Kazakhstan completed dredging at Kuryk in 2025 and plans to finish similar work at Aktau by the end of 2026. The World Bank lists port capacity, rail access, and delays at the Kazakhstan-Uzbekistan border among the main bottlenecks affecting the Middle Corridor. Some freight operators use longer routes because existing border crossings and rail links cannot handle demand efficiently. The bank has also called for additional berths and modern cargo-handling equipment at Aktau as the Caspian becomes shallower. Kazakhstan is upgrading the Shalkar-Beineu and Beineu-Mangystau railway sections that carry traffic to Aktau and Kuryk. In February 2026, the World Bank approved an $846...

Kashagan

Kazakhstan’s $5 Billion Kashagan Fine Moves Into New Legal Phase

Kazakhstan has escalated its dispute with the foreign investors behind the Kashagan oil field, warning the consortium’s managing director that he could face administrative and criminal liability over its failure to pay an environmental fine of nearly $5 billion. The warning to Giancarlo Ruiu, managing director of North Caspian Operating Company, was reported by Reuters, which cited two sources and a document it had reviewed. NCOC’s shareholders include Eni, ExxonMobil, Shell, and TotalEnergies, each with a 16.81% stake; Kazakhstan’s state-owned KazMunayGas, with 16.88%; CNPC, with 8.33%; and Inpex, with 7.56%. The dispute began after the Department of Ecology for the Atyrau Region inspected the consortium’s production facilities in 2022 and identified about ten alleged violations. Inspectors said that by November 1, 2022, more than 1.7 million metric tons of sulfur had accumulated at a storage site within the Bolashak oil and gas processing complex. NCOC’s permit allowed it to store no more than 730,000 tons. According to the environmental authorities, the operator had exceeded the permitted limit by more than twofold. In early 2023, the regional environmental department issued a notification seeking 2.356 trillion tenge in penalties, equivalent to about $5.4 billion at the exchange rate at the time. NCOC rejected the allegations and maintained that its sulfur-handling operations complied with Kazakh law and the permits issued for the project. The proceedings continued for more than three years. In August 2025, a court set aside the original notification because of procedural deficiencies in the way it had been issued. The ruling did not dismiss the environmental allegations themselves. The authorities subsequently issued a new notification, allowing the case to proceed. After further domestic proceedings, the Atyrau Regional Court upheld the penalty on June 19, allowing the ruling to enter into force. It later emerged that members of the consortium had been aware of the risk posed by the growing sulfur stockpiles for years. In 2017, Eni warned that the project was heading towards exceeding the permitted storage capacity. By late 2020, NCOC had also cautioned that Kazakhstan’s new Environmental Code, adopted the following year, would increase the risk of substantial penalties. According to internal documents reported by Bloomberg, Eni executives proposed processing more of the sulfur for sale on international markets. ExxonMobil, TotalEnergies, CNPC, and Inpex were not planning comparable measures at the time, while KazMunayGas had yet to settle on a position. On July 14, Kazakhstan’s Ministry of Justice said the domestic court ruling had entered into force and gave NCOC until July 20 to pay voluntarily. The ministry said compulsory enforcement proceedings could begin if the consortium failed to meet the deadline. NCOC did not pay by July 20. The Justice Ministry subsequently warned Ruiu of possible liability for non-compliance, marking a further escalation in a dispute that had already moved beyond the original question of sulfur storage. The consortium continued to deny wrongdoing and maintained that the penalty could not be enforced while international arbitration proceedings were under way. Its foreign shareholders are separately challenging the fine...

Business Registration

Registered Businesses in Kazakhstan Rise More Than 20% Despite Tax Reform

The number of registered businesses in Kazakhstan increased by more than 20% during the first half of 2026, according to government data, easing earlier concerns that the country’s new Tax Code would trigger widespread business closures. The growth came despite higher value-added tax (VAT) rates and tighter registration requirements introduced this year. During a government meeting, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said the number of registered business entities had reached 2.939 million by the end of June, up by nearly 499,000, or 20.4%, from the beginning of the year. The strongest increase came from individual entrepreneurs and self-employed workers. Their combined number rose from 1.86 million to 2.352 million over six months, while the number of self-employed workers reached 688,597. The expansion also coincided with improved fiscal performance. Government revenues increased by almost 16% during the reporting period, while VAT receipts were nearly 1.5 times as high as a year earlier, according to official figures. Growth was also recorded among corporate businesses. The number of registered legal entities increased from 579,756 to 587,117 during the first half of the year, while the number of VAT payers rose from 135,845 to 158,194. The figures indicate that businesses have largely adapted to the new tax environment despite concerns voiced before the reforms took effect. Earlier this year, analysts warned that higher taxes and stricter registration rules could force many small businesses to close, but the first six months of data have not supported those expectations. The structure of Kazakhstan’s small and medium-sized business sector also remained largely unchanged. More than 60% of all SMEs continue to operate in trade and agriculture, as well as other services. These remain the country’s largest entrepreneurial sectors. Growth varied across industries, reflecting differences in business activity. Among small legal entities, the mining sector recorded the fastest increase at 2.9%. Construction and agriculture both grew by 2.5%, while information and communications expanded by 2.4%. The figures indicate continued investment in traditional industries and digital services. Among medium-sized enterprises, real estate posted the strongest growth at 5.8%, nearly double the pace of the next-fastest sector. Finance and insurance grew by 3.2%, while other service industries expanded by 3.1%, reflecting continued demand in domestically oriented sectors. The figures also point to the growing role of small and medium-sized businesses in Kazakhstan’s economy. SMEs accounted for 40.9% of gross domestic product in 2025, up from 33.5% in 2021, according to official data. The sector has become an increasingly important source of investment and regional development, while contributing to economic diversification. Employment data reflect the same trend. During the first quarter of 2026, Kazakhstan had 9.4 million employed people, including 4.5 million working in small and medium-sized businesses. This means that nearly one in two employed people now works in the SME sector. The first-half data indicate that Kazakhstan’s business sector continued to expand despite a more demanding tax environment. While it remains too early to assess the long-term impact of the tax reform, the increase...

Labor Migration

Lukashenko Tells Uzbek Workers Seeking Higher Pay to Consider Russia

Belarusian President Alexander Lukashenko has said Uzbek citizens coming to Belarus should not expect to earn several thousand dollars, suggesting that those seeking significantly higher salaries would be better off working in Russia instead. His remarks come as Belarus expands labor recruitment from Uzbekistan following complaints from some Uzbek workers about low wages. Speaking during a nationwide government meeting on July 21, Lukashenko returned to the issue of recruiting workers from Uzbekistan following recent agreements between the two countries to expand labor cooperation. Earlier this month, he invited Uzbek citizens to move to Belarus with their families, saying the country was ready to provide jobs as well as access to healthcare and education. Following those agreements, more than 250 residents of Uzbekistan’s Andijan Region traveled to Belarus to take temporary jobs in agriculture and livestock farming. However, shortly after arriving, some workers publicly complained about wages and working conditions. In videos circulated online, they said they had been offered monthly salaries of around $500, adding that they could earn similar incomes without leaving Uzbekistan. Addressing the issue, Lukashenko said labor cooperation was driven not only by Belarus’ need for workers but also by plans to expand agricultural trade between the two countries. “The President of Uzbekistan asked not only about employing people but, first of all, about supplying meat and milk,” Lukashenko said. “They do not have enough land and they lack water resources. We have enough land and enough water. We can produce meat and milk.” According to Lukashenko, Uzbek workers would help increase agricultural production, enabling Belarus to export more food products to Uzbekistan. “If your people from Uzbekistan come through our system which is fully under control; we will employ them in Belarus as our own people,” he said. “Not only so they can earn money and receive a good salary, but to produce meat and milk. We will then sell that meat and milk on their markets. That is where the wages come from.” The Belarusian leader nevertheless acknowledged that some workers might have different financial expectations. “If someone wants to come to Belarus to earn huge money,several thousand dollars, it is better to go to Russia,” Lukashenko said. “There they can work in the oil industry or other sectors and receive very high salaries.” He said Belarus was offering stable employment in agriculture rather than exceptionally high wages. “The higher the productivity and the more goods they produce, the higher their salaries will be,” he said. Lukashenko also said foreign workers would receive the same access to healthcare and education as Belarusian citizens, while emphasizing that regional authorities should recruit migrant workers only where there was genuine demand. Concluding the meeting, he called on officials to focus on the harvest campaign and meeting export commitments, urging regional authorities and law enforcement agencies to assist farmers during the agricultural season rather than acting solely as inspectors. The Times of Central Asia previously reported that labor migration patterns across Central Asia are gradually becoming more diversified as...

Satellite Communications

Kazakhstan Allocates More Than $22 Million for New Communications Satellite

Kazakhstan has begun upgrading its national satellite infrastructure by financing the development of a new communications satellite, KazSat-3R, which is expected to replace the existing KazSat-3 by the end of the decade. The government is also working to expand the country’s Earth-observation satellite network and develop domestic manufacturing capacity. It is also preparing for commercial launches from the Baikonur Cosmodrome. The government has allocated approximately $22.3 million from its reserve for the KazSat-3R project. The new satellite will replace KazSat-3, whose planned service life expires in 2029. Kazakhstan’s national satellite communications system currently consists of two satellites, KazSat-2 and KazSat-3, as well as two ground control centers, Akkol and Kokterek. The system provides television and radio broadcasting, data transmission, telephone services, and internet access across Kazakhstan, Central Asia, and parts of Russia. KazSat-3’s approaching retirement is one reason for its replacement. In 2023, a power-system malfunction temporarily took the satellite out of service, disrupting satellite television broadcasts and exposing Kazakhstan’s dependence on its own orbital infrastructure. In May 2025, Senator Andrey Lukin, chair of the Senate Committee on International Relations, Defense and Security, previously said KazSat-3R could require 40.2 billion tenge, approximately $86 million, in state financing. He also warned that public procurement rules could restrict the participation of foreign satellite manufacturers and called for the project to be handled under a special procedure. The KazSat system is used by 19 telecommunications operators and provides television services to more than two million subscribers, the government said. It supports television and radio broadcasting, as well as data transmission. The system also provides mobile communications and internet access, particularly in remote areas where building ground-based infrastructure is difficult. Government figures indicate that 99% of Kazakhstan’s population has access to high-speed internet. The country’s population stood at 20,5 million on June 1, 2026, the Bureau of National Statistics reported. The new communications satellite is one element of Kazakhstan’s national space program. The country plans to launch three KazEOSat-MR Earth-observation satellites in 2027 to replace KazEOSat-2. Three more satellites are planned for 2029–2030, which would bring the constellation to six. Kazakhstan is also developing its own launch infrastructure. The Baiterek project, implemented with Russia, has modernized a launch complex at the Baikonur Cosmodrome for the Soyuz-5 launch vehicle. The first test launch took place successfully on April 30, 2026. The government said the test confirmed the complex’s operational readiness. The cost of a commercial Soyuz-5 launch is estimated at between $50 million and $60 million, depending on the rocket configuration and upper stage. By comparison, a commercial launch of SpaceX’s Falcon 9 is priced at approximately $67 million. Kazakh authorities expect this cost structure to allow the project to compete in the international launch-services market. Kazakhstan is also considering satellite exports as a potential area of commercial growth. Domestic companies are exploring projects to manufacture satellites for the Democratic Republic of the Congo, Mongolia, and Nigeria, with a combined potential value estimated at approximately $75 million. As previously reported by The Times of Central Asia,...