Business & Economy - The Times Of Central Asia

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Aviation Fuel Project

Uzbekistan’s $6.1 Billion Sustainable Aviation Fuel Project Enters Design Phase

A $6.1 billion sustainable aviation fuel (SAF) complex planned for Uzbekistan’s western Khorezm region has entered the engineering design stage. Developer Allied Biofuels expects to decide whether to proceed with construction in the first quarter of 2027. Established in Uzbekistan in 2025, the company convened a September 18 meeting in Ningbo, China, with its main engineering and technology partners, Sinopec Engineering Group, Denmark’s Topsoe, South Africa’s Sasol, and U.S.-based Plug Power. The meeting covered the integration of their technologies, plant design, cost estimates, and the construction timetable. Allied Biofuels expects to complete this stage before making a final investment decision (FID). An FID is the point at which a developer commits capital and proceeds with construction. Until then, the $6.1 billion remains the project’s estimated cost rather than funding already secured. Sinopec is responsible for front-end engineering design, systems integration, detailed engineering, and cost development. Allied Biofuels and Sinopec signed the engineering contract at the Tashkent International Investment Forum in June. The agreement is structured to become an engineering, procurement, and construction contract if the complex goes ahead. Topsoe and Sasol are providing technologies for electro-synthetic sustainable aviation fuel (e-SAF), which is made using renewable hydrogen and captured carbon. Plug Power is expected to supply up to 2.4 GW of electrolyzer systems for hydrogen production. The complex would require an unusually large amount of renewable power, with plans calling for 4.45 GW of renewable generation and 1,600 MWh of battery storage. The developers intend to combine electricity and hydrogen production, biomass processing, and fuel production at a single site. At full capacity, Allied Biofuels expects the complex to produce around 160,000 tons of SAF, 257,000 tons of e-SAF, and 5,000 tons of renewable diesel annually. The development comes as Europe mandates greater use of SAF. Since 2025, aviation fuel suppliers in the European Union have been required to ensure that SAF accounts for at least 2% of the fuel supplied at covered EU airports. That year, EU airports received 1.1 million tons of SAF, almost six times the amount supplied a year earlier. In 2030, the overall share is set to rise to 6%, including a minimum 1.2% for synthetic aviation fuels. E-SAF remains difficult to produce at commercial scale. Around 50 synthetic aviation fuel projects in Europe are still awaiting final investment decisions, according to the European Commission. Germany, Austria, and Luxembourg are preparing a pilot auction scheme backed by more than €2.1 billion to help bring them to market. Allied Biofuels is already developing routes to deliver fuel from the planned complex in Uzbekistan to foreign markets, an important consideration for the landlocked country.

Russian Fuel Exports

Russian Diesel Returns, but Kyrgyzstan and Tajikistan Remain Exposed

Russia sharply increased diesel supplies to Kyrgyzstan and Tajikistan in August after a summer slump in Russian fuel exports strained both countries’ markets and pushed prices higher. But the August rebound underscored a weakness already exposed over the summer: disruptions at Russian refineries can quickly ripple through fuel markets across both countries. In August, Kyrgyzstan received more than 72,000 tons of Russian diesel, up from just 4,400 tons in July. Supplies to Tajikistan rose from 16,000 tons to more than 56,000 tons, around 3.5 times the July level. Overall, Russia exported more than 370,000 tons of diesel to Kazakhstan, Kyrgyzstan, Tajikistan, and Mongolia in August, more than double the July volume. Kazakhstan received around 28,000 tons after no deliveries in July, while Mongolia imported about 215,000 tons. Russia's diesel production recovered to around 170,000 tons per day in August, but Moscow maintained restrictions on exports to protect its domestic market, with exceptions for countries covered by intergovernmental agreements. The summer disruption showed that such arrangements do not insulate Kyrgyzstan and Tajikistan from falling production at Russian refineries. Kyrgyzstan Starts to Diversify Kyrgyzstan consumes around 1.6 million tons of petroleum products a year and receives the overwhelming majority of its imports from Russia. The summer disruption pushed Bishkek to look for additional sources. The authorities discussed purchases from Kazakhstan, Belarus, Azerbaijan, Uzbekistan, and Turkmenistan. Belarusian deliveries began arriving in July, while China also sent an initial batch of fuel. In August, Kyrgyz officials opened talks with China’s Sinopec over further supplies. Another option is to refine more crude oil domestically. In August, 35,000 tons of crude were shipped through Kazakhstan to Kyrgyzstan for processing at local refineries. The new route gives Bishkek another way to source feedstock while reducing its dependence on finished gasoline and diesel from Russian refineries. The 72,000 tons of Russian diesel delivered in August largely offset July’s collapse rather than establishing a new level of supply. Tajikistan's Options Tajikistan is even more dependent. In the first half of 2026, the country imported 599,500 tons of petroleum products worth $494.7 million. Russia accounted for 91.1% of those supplies. Diesel imports totaled 300,200 tons. The reduction in supplies became visible on the streets of Dushanbe over the summer. In early July, diesel disappeared from some filling stations, while others limited purchases to 20 liters per vehicle. By late July, prices at some stations had reached 17–18 somoni (about $1.90) per liter. As of August 31, the average price was around 16.5 somoni, compared with approximately 11 somoni in early June. Dushanbe responded by increasing purchases from neighboring countries. In July, imports of gasoline, diesel, and jet fuel from Kazakhstan, Uzbekistan, and Turkmenistan roughly tripled to 34,000 tons. But average monthly imports of these fuels from all suppliers in the first half of the year were around 97,000 tons. Neighboring suppliers can cover part of the shortfall, but for now they cannot quickly replace Russian volumes. In July, the presidents of Tajikistan and Kazakhstan discussed increasing supplies of Kazakh petroleum...

Customs Modernization

Turkmenistan Looks to AI in Customs Modernization Drive

Customs specialists in Turkmenistan discussed the use of artificial intelligence in their work during a seminar last week, as the country steps up efforts to modernize trade systems and expand its role in the Caspian Sea transit corridor. The three-day training course in Ashgabat drew about 30 customs experts and was held at a regional training center. Turkmenistan’s State Customs Service said the event was part of a European Union-funded project to promote trade on the corridor, which links China and Central Asia to Europe by rail and maritime transport. The trainer at the seminar was Sertaç Yapıcı, whose LinkedIn page identifies him as a department head at the Directorate General of Customs Enforcement in Turkey. Yapıcı discussed risk management systems in customs offices and “demonstrated the effectiveness of modern methods of data analysis and the use of artificial intelligence technologies with specific examples,” the Turkmen customs authority said. The customs specialists discussed how to identify risks associated with goods and vehicles crossing borders and how “to adapt the best international approaches to the conditions of our country,” the authority added. The World Customs Organization and the customs service established the center in Ashgabat under a 2025 agreement.

Educational Investment

Coventry Expands in Kazakhstan, Strengthening Central Asia’s International Education Center

Coventry University Kazakhstan marked the next stage of its expansion on September 21 with a capsule-laying ceremony for new facilities in Astana, adding to a growing network of British educational institutions operating in the country. Lord John Alderdice, the United Kingdom’s Trade Envoy to Azerbaijan and Central Asia, said the project represented more than the construction of another university building. “Today we are not simply marking the construction of a new building. We are investing in people, in knowledge, and in the future of Kazakhstan.” [caption id="attachment_56593" align="alignnone" width="300"] Lord John Alderdice, the UK Trade Envoy to Azerbaijan and Central Asia, speaks at the capsule-laying ceremony for Coventry University Kazakhstan’s new campus in Astana. Image: Coventry University Kazakhstan[/caption] Alderdice has served as the UK’s Trade Envoy to Azerbaijan and Central Asia since January 2025. He is also a member of the House of Lords and previously served as Speaker of the Northern Ireland Assembly. Coventry University Kazakhstan has grown rapidly since opening in September 2024. Alderdice said its first intake numbered 95 students. The Ministry of Science and Higher Education now reports more than 850 students. Alderdice said applications were coming from neighboring countries as well as Kazakhstan. Kazakhstan’s Minister of Science and Higher Education, Sayasat Nurbek, placed Coventry’s development within the country’s broader effort to invest in human capital and build skills relevant to Kazakhstan and the wider Central Asian region. Pointing to Kazakhstan’s natural resources, critical minerals, nuclear energy and agriculture, Nurbek emphasized that realizing their economic potential depends on developing the people and expertise needed to create greater value from them. [caption id="attachment_56594" align="alignnone" width="300"] Kazakhstan’s Minister of Science and Higher Education, Sayasat Nurbek, speaks at the capsule-laying ceremony for Coventry University Kazakhstan’s new campus in Astana. Image: Coventry University Kazakhstan[/caption] The expansion comes as Kazakhstan develops an increasingly international education sector, bringing foreign universities and schools into the country while seeking to attract students from across Central Asia. Kazakhstan’s Ambassador to the United Kingdom, Alibek Bakayev, placed Coventry’s expansion within the broader development of educational ties between Kazakhstan and Britain, linking it to President Kassym-Jomart Tokayev’s emphasis on education. Bakayev explained that President Tokayev has made it clear that education is the foundation of the national economy and the country’s future, and that Kazakhstan must not only learn from the world but also bring the world’s best knowledge and practices to the country. He cited Coventry, Cardiff, De Montfort and Heriot-Watt universities, together with Ardingly and Charterhouse, as part of a growing education bridge between the two countries. The growing international education presence is also extending Kazakhstan’s reach beyond its domestic market. Coventry’s applications from neighboring countries provide one indication of that regional pull. Education Takes Larger Role in UK-Kazakhstan Relations Bakayev broadened the point to the overall relationship between Astana and London. He described education as one of the foundations of bilateral relations and pointed to the Kazakhstan-UK Strategic Partnership and Cooperation Agreement, saying it gives the relationship greater institutional depth across politics, trade, investment,...

TCA Interviews

Kyrgyzstan’s NISI Director on Reform, Red Tape and a Bigger Global Role

On September 15, 2026, The Times of Central Asia spoke with Shumkarbek Adilbek uulu, director of the National Institute for Strategic Initiatives (NISI) under the President of the Kyrgyz Republic. Established in its current form in 2024 through the merger of two institutes, NISI provides strategic advice to the country's leadership and develops proposals to reduce bureaucracy. Adilbek uulu discusses Kyrgyzstan's priorities for its 2027–2028 UN Security Council term and its approach to climate diplomacy. He also outlines NISI's work on economic reform and digital public services, including efforts to help smaller businesses grow. Some views expressed in this interview reflect Adilbek uulu's personal opinions rather than the official position of NISI or the Kyrgyz government, as he notes in his answers. The English text has been lightly edited for readability. TCA: What have been your main priorities since becoming director, and how did you come to join NISI? Adilbek uulu: We're focused on practical ways to drive sustainable economic growth at home: a smaller, simpler government, more room for business, and productive relations abroad that feed into our domestic agenda. By protecting our national interests, our diplomats support the domestic goal of building up the Kyrgyz Republic, nation-building if you will, without getting caught up in other countries' ambitions. I joined NISI in 2025 to help break through decades of bureaucratic gridlock, a real drag on economic development. Minister Ayaz Baetov brought me in. At the time, he was the Minister of Justice, Deputy Chairman of the Cabinet of Ministers, and NISI's director, all at once. He told me NISI's job was to give the Presidential Administration strategic advice that's pragmatic and rooted in Kyrgyz insight. I agreed and have been working at it since. That's our core job. Interestingly, Minister Baetov was just named Kyrgyzstan's Permanent Representative to the UN in New York. The significance of the contribution Mr. Baetov has made to the effort to reduce bureaucracy remains to be fully assessed. I am confident it will be rated highly, as we will feel the positive impact of many of his ideas and decisions in the future. TCA: Kyrgyzstan was recently elected a non-permanent member of the UN Security Council for 2027–2028. Will NISI be more focused on foreign policy now? Adilbek uulu: With Kyrgyzstan on the Security Council, the government will be pulled into issues outside our usual remit, so NISI will be in even closer contact with the Ministry of Foreign Affairs. To be clear, I don't speak for the Foreign Ministry. I help shape strategy for our diplomats, businesspeople, and policymakers, and I track what's happening overseas and in our neighborhood. UNSC issues will be high on our agenda, and we'll support the MFA on long-term thinking. As one example, I just got back from the China Economic and Social Forum in Hangzhou, China. The forum focused on the environment and natural resources. I'll be putting together a memo for the Office of the President with our observations. TCA: How does climate vulnerability...

AI Education

Kazakhstan AI Training Expands Nationwide as Programs Scale Up

Kazakhstan is expanding a free school for programming and artificial intelligence (AI) to 14 regions as part of a national drive to prepare people to use the technology. Government figures show that more than 100,000 university students have completed advanced AI courses, but evidence of what the training is producing in practice remains limited. Tomorrow School offers adults a free 18-month course in programming and AI. It began operating outside Astana in 2026, and its network now covers 14 regions, with further growth planned across the country. Students need no previous programming experience and learn through practical projects and peer-to-peer instruction. The school currently has 493 students, and according to government figures, 57 participants have already found jobs in the information technology sector. Few published statistics from Kazakhstan’s growing AI-training system report employment outcomes rather than enrollment or course completion. TUMO Astana is a free center for teenagers aged 12 to 18, based on an educational model first developed in Armenia in 2011 and since expanded internationally. TUMO combines self-directed learning with workshops and practical projects in technology and design, including programming, robotics, and generative AI. The center currently has 2,376 active students. By the end of 2026, it plans to increase enrollment to 5,000. The largest enrollment is in AI-Sana, a national program aimed at giving university students AI skills and helping them develop their own technology projects. Students can take courses through Coursera, Huawei ICT Academy, the NVIDIA Deep Learning Institute, and Astana Hub. More than 100,000 students have completed advanced training under the program, receiving more than 703,000 certificates between them. Because participants can complete several courses, the certificate total is much higher than the number enrolled. Of more than 22,000 proposed AI projects, 515 are now being tested or implemented, according to government figures. That total may be more revealing than the certificate count, although the announcement neither describes the work nor identifies where it is taking place. In 2027, organizers plan to help 1,500 student teams develop their projects into technology startups. Kazakhstan’s focus on retraining reflects changes in the labor market. The World Economic Forum estimates that 39% of workers’ existing skills will change or become outdated by 2030, while AI and big data are among the fastest-growing areas of demand. The International Labour Organization cautions against equating the spread of AI with the disappearance of jobs, saying generative AI is more likely to transform jobs by automating some tasks than to replace workers entirely. For more advanced training and research, Kazakhstan has established Qazaq AI Research University (QAIRU). Since September 2026, it has offered two bachelor’s programs, one in AI and Machine Learning and the other in Physical AI, along with graduate programs combining AI with fields including finance, energy, medicine, industry, and public administration. The university has 525 students: 388 undergraduates, 32 master’s students, and 105 participants from national companies in its AI+X Executive MBA program.