Business & Economy - The Times Of Central Asia

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Inflation

Kyrgyzstan Inflation Hits 12% as Government Plans Food and Fuel Measures

Kyrgyzstan plans to curb rising prices by importing livestock and grain, subsidizing fuel, and increasing domestic food production. The draft plan for 2026-2027 comes after annual inflation reached 12% in August, alongside double-digit economic growth. The Ministry of Economy and Commerce published details of the draft plan on September 21. In 2027, the government aims to keep inflation within 7.7-8.5%. Without additional measures, the ministry estimates that inflation could reach 8.7-9.5% in 2027 because of global prices, external shocks, and supply disruptions. Annual inflation had already reached 11.5% in July, up from 11% a month earlier, before rising to 12% in August, according to the National Statistical Committee. The medium-term target of the National Bank of the Kyrgyz Republic, the country’s central bank, is 5-7%. Much of the plan focuses on food. The state-owned Kyrgyz Agroholding is expected to import at least 20,000 head of cattle from Kazakhstan, Belarus, and Russia, adding at least 2,700 tons of meat to the domestic market. After prices rose in 2025, the authorities imposed limits on the cost of certain types of meat and temporarily banned livestock exports. The draft calls for the construction of four large poultry complexes and 200 livestock facilities with a combined capacity for 10,000 animals. Kyrgyz Agroholding is expected to open 100 direct-sales outlets for meat and agricultural products. The area planted with corn and oilseed crops would be expanded, while 11 trade and logistics centers would be built to store agricultural produce. The draft also calls for flour mills to import 700,000 tons of wheat from Russia and Kazakhstan. The ministry says the imports are intended to ensure that domestic wheat demand is fully covered. The government is also subsidizing fuel. Kyrgyzstan remains heavily dependent on imported petroleum products, with Russia supplying more than 90% of its imported gasoline, meaning higher import costs quickly feed into transportation, food, and service prices. The state compensates importers for part of the difference between purchase costs and regulated retail prices. The subsidies have been extended through December 31, 2026. In Bishkek and the Chuy region, agreed maximum retail prices are 87.9 soms per liter for AI-92 gasoline, about $1; 99.9 soms for diesel; and 48.8 soms for liquefied petroleum gas. Prices are capped at slightly higher levels elsewhere in the country. Without compensation, AI-92 would cost an estimated 111-118 soms per liter and diesel 125-137 soms. A one-year moratorium on increases in a number of regulated tariffs and payments for the population has also been in effect since July 24. High inflation persists alongside rapid economic growth. First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiev said GDP had grown by an average of 10.2% annually over the past four years. GDP per capita increased from $1,230 in 2020 to $3,080 in 2025, while the economy grew by another 11% in the first eight months of 2026. In 2025, 1.779 million people, or 24% of the population, remained below the national poverty line, down from 25.7% a year earlier. On...

Oil and Gas

Kazakhstan to Auction 56 Oil and Gas Blocks

Kazakhstan will auction 56 oil and gas blocks across seven regions, offering investors a new round of exploration and production rights beyond its largest operating fields. The auction will take place on December 25, 2026, on the e-Qazyna platform, with applications accepted through November 18. The December round will take the number of blocks offered in 2026 to 112. December 25 is a normal working day in Kazakhstan, although the date coincides with Christmas Day in many countries whose energy companies are potential investors. The 56 blocks are spread across seven regions, including Kazakhstan’s main western oil-producing areas as well as Ulytau, Kostanay, and Kyzylorda. Most are being offered for exploration and subsequent production, while four are available directly for hydrocarbon production. Kazakhstan is already a major oil producer. According to the U.S. Energy Information Administration (EIA), the country held around 30 billion barrels of proved oil reserves as of January 1, 2025, while production of petroleum and other liquids averaged an estimated 1.9 million barrels per day in 2024. Tengiz, Kashagan, and Karachaganak are the country's primary sources of oil production. Under the auction terms, companies securing rights to the new blocks must carry out geological exploration and drilling within specified time frames. An exploration project must be prepared within one year after the contract is signed, required 2D seismic surveys must be completed within three years, and at least one well must be drilled within four years where stipulated by the terms of the individual block. During production, companies must annually allocate an amount equal to 1% of the previous year's production costs to training Kazakhstani specialists and another 1% to research and development in Kazakhstan. A further 1% of investment under the contract must go toward regional development and local infrastructure. Minimum local-content requirements are 70% for works and services and 30% for goods. Kazakhstani citizens must account for at least 80% of managers and their deputies, 90% of department heads, and all staff classified as specialists or skilled workers. For fields with initial geological reserves exceeding 100 million tons of oil or 50 billion cubic meters of gas, additional requirements apply. Contracts must include at least one commitment to establish or modernize processing facilities, supply hydrocarbons for processing in Kazakhstan, or implement another investment or socioeconomic project. The Times of Central Asia previously reported that more than 20 promising oil and gas structures had been identified in the country's Aral Basin.

ICTWEEK Uzbekistan

ICTWEEK Opens in Tashkent With Focus on AI and Foreign Investment

Thousands of technology executives, investors, startup founders, and government representatives have gathered in Tashkent for ICTWEEK Uzbekistan 2026, as Uzbekistan seeks to expand its technology sector and attract more foreign companies. The four-day event opened on September 22 at the Central Asian Expo Uzbekistan (CAEx) exhibition center and runs through September 25 under the theme “Land of Startups.” Organizers expect around 25,000 visitors. More than 2,000 participants from abroad, representing 70 countries, have already arrived in Uzbekistan to attend the event, according to Rustamjon Ozodjonov, head of global marketing at IT Park, Uzbekistan’s national technology hub, which supports startups and operates a residency program for IT companies. [video width="3840" height="2160" mp4="https://timesca.com/wp-content/uploads/2026/09/document_5303121082444720559.mp4"][/video] “As part of ICTWEEK, we expect B2B meetings, international forums, agreements, and strategic panel sessions,” Ozodjonov told The Times of Central Asia. Ozodjonov said young companies are presenting their projects to potential investors and partners at a dedicated Startup Alley. Artificial intelligence was one of the themes of the opening ceremony. The Bravo Orchestra first performed under the direction of an AI conductor named Timur, before conductor Alibek Kabdurakhmanov took over. Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov used the experiment to question the role humans will play in the economy as AI develops. “Everyone is thinking about what will happen with AI. What will we humans do? I hope this conversation will be real and that people will still remain in demand,” Shermatov told the audience. He linked the issue to Uzbekistan’s young and growing population. The minister said he could not imagine a future in which “everything will be AI” and people are no longer needed. “The most important asset we have is human capital,” he added. Shermatov pointed to the expansion of higher education and digital skills programs, including One Million Coders and training in Python and artificial intelligence. He said Uzbekistan is also sending more young people to study at leading universities abroad. Another goal of ICTWEEK is to connect young professionals and startups directly with international companies and investors. Shermatov encouraged participants to learn foreign languages, particularly English, and use the event to find international partners. Uzbekistan is also seeking to attract more foreign technology companies. “More than a thousand foreign-owned companies are already residents of IT Park,” the minister said. IT Park is also expanding its network of overseas offices and representatives, including in the United States, Germany, South Korea, Saudi Arabia, and China. ICTWEEK also featured Enterprise Uzbekistan, a special legal jurisdiction for international technology companies. “Enterprise Uzbekistan is a territory based on the common law of England and Wales and provides a special jurisdiction for global technology companies,” Sultonmurod Rasulov, head of strategic partnerships at Enterprise Uzbekistan, told The Times of Central Asia. “Our goal is to create one of the best jurisdictions in the world, modeled on international financial centers but designed specifically for global technology.” According to Rasulov, Enterprise Uzbekistan aims to create a predictable legal environment for international technology companies and allow them to conduct business from Uzbekistan...

Digital Infrastructure

Uzbekistan Opens AI Data Centers and Signs Amazon Satellite Internet Deal

Uzbekistan’s state telecoms operator Uztelecom is expanding the country’s digital infrastructure with two new data centers, a satellite internet deal with Amazon, and a high-speed network designed to move large amounts of data between computing facilities. The projects were presented on September 22, the first day of ICTWEEK Uzbekistan 2026, the country’s largest technology week, which runs in Tashkent through September 25. [video width="1920" height="1080" mp4="https://timesca.com/wp-content/uploads/2026/09/document_5303308046666082166.mp4"][/video] The new data centers have opened in Bukhara and Kokand. They operate as part of the UzCloud platform and provide computing capacity to both government agencies and businesses. The facilities have servers with graphics processing units (GPUs) for training and running artificial intelligence models, machine learning, processing large datasets, and video analytics. Bukhara and Kokand are both more than 300 kilometers from Tashkent. Distributing computing capacity across different regions makes it possible to shift workloads to another site in the event of a failure. The designs of both data centers have received Tier III certification from the Uptime Institute. This confirms that the designs allow maintenance without interrupting operations. “We are expanding access to computing resources and artificial intelligence capabilities for the government and businesses,” Umar Izbasarov, Director of Uztelecom’s Department for Advanced Development and Investment Projects, said at ICTWEEK. Uztelecom has also signed an agreement with Amazon Leo, Amazon’s satellite internet network. UZ-SAT, a subsidiary of the Uzbek operator, will act as an authorized distributor of its services in Uzbekistan. Amazon Leo is a low-Earth-orbit satellite network being built out to include more than 3,000 satellites and designed to provide connectivity in areas where terrestrial networks are difficult or expensive to build. According to Uztelecom, its infrastructure currently covers 96% of Uzbekistan’s settlements, while its fiber-optic network extends for more than 378,000 kilometers. The satellite network is expected to complement it in remote areas and at industrial sites. “The partnership with Amazon Leo will allow us to expand connectivity in areas of the country where the use of traditional terrestrial infrastructure is limited,” UZ-SAT CEO Bakhrom Azimov said. Amazon’s satellite network would add another connectivity option for remote areas alongside fiber-optic and mobile networks. The announcement does not specify when services will become widely available to customers in Uzbekistan. The third project concerns how data is transferred between data centers. Uztelecom, together with Japan’s Toyota Tsusho, NTT DOCOMO BUSINESS, and NEC, is launching a pilot All-Photonics Network, or APN. The technology keeps data traveling as light for more of its journey, rather than repeatedly converting it into electrical signals. This can make connections faster and more energy-efficient. In the first phase, APN is expected to connect two Uztelecom data centers in the Tashkent region. The planned link is designed to provide bandwidth of up to 800 Gbps and latency of less than one millisecond. In 2027-2028, the network is expected to expand to the data centers in Bukhara and Kokand. “The growing needs of Uzbekistan’s economy require new data centers and network technologies capable of connecting them into a single high-performance system,” Izbasarov...

Intra-regional Trade

Central Asia Trade Rises 25% as Kazakhstan and Uzbekistan Dominate

Central Asian countries are trading more actively with one another, although the regional market continues to be dominated by its two largest economies, Kazakhstan and Uzbekistan. In January-July 2026, the five countries exported $8.1 billion worth of goods to their neighbors, up 25.4% from a year earlier. Kazakhstan and Uzbekistan accounted for more than 80% of those shipments. Smaller bilateral routes have expanded as well. Uzbekistan’s trade with Kyrgyzstan increased by more than half, while trade with Tajikistan rose by 45%. Trade between Kyrgyzstan and Tajikistan rose by a factor of 3.3 after several years of border closure and sharply reduced economic ties. In absolute terms, trade between Kazakhstan and Uzbekistan remains the region’s largest bilateral flow. The figures were published by Uzbekistan’s Center for Economic Research and Reforms (CERR). Kazakhstan remains the region’s largest exporter. Over the seven-month period, it shipped $4.5 billion worth of goods to its neighbors, accounting for 55.9% of total intra-regional exports. Uzbekistan exported $2 billion, representing another 24.7%. Kazakhstan’s Central Asian neighbors still account for a relatively small share of the country’s overall foreign trade. In January-July, its total foreign trade turnover amounted to $87.75 billion. Central Asia accounted for around 6.7% of Kazakhstan’s total trade and 8.9% of its exports. By contrast, Kyrgyzstan’s trade volumes are much smaller, but neighboring markets are considerably more important to the country’s exporters, absorbing almost one-third of its exports. During the same period, Kyrgyzstan exported $523 million worth of goods to its neighbors and imported nearly $1.5 billion. Tajikistan buys considerably more from its neighbors than it sells to them. Its imports from Central Asia increased by 35% to $1.2 billion, while exports rose 6.2% to $209 million. Kazakhstan and Uzbekistan account for around 94% of Tajikistan’s trade with the region. Figures reported by Turkmenistan’s trading partners show that the country exported $844 million worth of goods to neighboring countries. Uzbekistan and Kazakhstan remain its main regional markets. The Eurasian Development Bank estimated that trade among Central Asian countries reached $12.3 billion in 2025, nearly double the 2020 level. Kazakhstan accounted for 54% of regional exports, as The Times of Central Asia previously reported. New transport and energy links are developing alongside intra-regional trade. In February, the World Bank approved an $846 million guarantee to mobilize $1.41 billion in commercial financing for a railway project in Kazakhstan. The project includes construction of the 201-mile Mointy-Kyzylzhar railway line on Kazakhstan’s section of the Trans-Caspian International Transport Route, or Middle Corridor. The new line is expected to shorten the route by 149 kilometers and relieve congestion on heavily used sections of the corridor. Central Asian countries are seeking closer integration of their power systems. In January, the World Bank approved the 10-year Regional Electricity Market Interconnectivity and Trade Program, with indicative financing of more than $1 billion, to establish Central Asia’s first regional electricity market. Cross-border electricity trade currently amounts to only around 3% of the region’s total electricity demand. In an earlier CERR analysis, researcher Ruslan Abaturov argued...

Agribusiness

Kyrgyzstan Develops ‘Natural Kyrgyz Walnut’ Brand in Export Push

Kyrgyzstan is developing a national brand, Natural Kyrgyz Walnut, to promote its walnuts in international markets. The brand will emphasize the origin of the product in the walnut-fruit forests of southern Kyrgyzstan, with labeling and a traceability system planned to verify its provenance. The marketing plan was developed with support from the Food and Agriculture Organization of the United Nations (FAO) and presented on September 17. Kyrgyzstan harvests more than 44,000 tons of walnuts annually. According to the Ministry of Agriculture, walnut collection and sales provide income for nearly 60,000 people, primarily in the country’s southern regions. One of the best-known areas is Arslanbob in the Jalal-Abad region, home to ancient walnut-fruit forests. Arslanbob is also associated with a longstanding local legend that soldiers of Alexander the Great took walnuts from the area back to the West. The story is popular in Kyrgyzstan, although there is no historical evidence to confirm it. The FAO describes the walnut-fruit forests of southern Kyrgyzstan as among the world’s most valuable natural ecosystems. Their condition, however, is deteriorating: natural regeneration is declining, while grazing pressure, pests and diseases, land degradation, and climate change are placing additional strain on the forests. Kyrgyz walnuts are already exported to Russia, China, and European Union countries. The brand is intended to help producers distinguish Kyrgyz walnuts in export markets by emphasizing their geographical origin. The next steps will include biochemical analysis of the walnuts and an assessment of opportunities for organic certification, geographical indication registration, and the application of fair-trade standards. A geographical indication would legally establish the link between the product and a particular territory and protect its name. The branding effort comes alongside attempts to improve market access in China. The Times of Central Asia reported on September 18 that Kyrgyzstan and China had begun discussing the mutual recognition of organic certificates. Kyrgyz certification is currently insufficient for products to be marketed as organic in China, meaning the two sides will need to compare their standards and agree on technical requirements.