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Exports

Kazakhstan’s Cement Exports to Uzbekistan Plunge Amid Customs Dispute

Cement exports from Kazakhstan to Uzbekistan have fallen sharply in recent months, with industry officials blaming a sudden change in Uzbek customs policy. According to Yerbol Akimbayev, head of the Cement and Concrete Producers Association of Kazakhstan (QazCem), new customs rules imposed by Tashkent are significantly disrupting cross-border trade. Speaking to Forbes Kazakhstan, Akimbayev said Uzbek authorities now require Kazakh cement imports to be declared at $300 per ton, ten times the actual sale price of roughly $30 per ton. “Taxes should reflect the real import price. Setting the customs declaration at $300 has made exports economically unfeasible,” he stated. The new pricing rule comes at a difficult time for Kazakhstan’s cement industry, which is already grappling with overcapacity and shrinking export opportunities. The country currently operates 16 cement plants with a combined annual capacity of 18 million tons, while domestic demand has stagnated between 11.5 and 12 million tons over the past five years. Even with demand growing by 15-20% this year, roughly 2 million tons, production still far exceeds consumption. “Operating plants can already produce 17 million tons, and our technical capacity is around 18.5 million tons,” Akimbayev explained. “With new facilities under construction, we could soon reach 22 million tons. That leaves us with about 6 million tons in excess capacity, exports are essential for industry viability.” While Russia remains Kazakhstan’s top cement supplier, followed by Iran, Uzbekistan has become an increasingly important export market in recent years. However, Akimbayev argues that the recent policy shift undermines fair competition and could destabilize the regional cement market. “This isn’t about competition, it’s about clear and objective rules,” he said. “Our producers meet strict quality and safety standards. It’s only fair that importers face similar conditions. When we addressed this imbalance in 2019, the number of import certificates issued dropped by 95%, exposing the scale of shadow trade.” The impact is already being felt across Kazakhstan’s cement sector. A plant in the Kostanay region declared bankruptcy earlier this year, and another in the Akmola region is facing financial strain. At the same time, three new factories are under construction, adding further pressure to an oversupplied market. “Foreign investment is welcome, but it should target sectors that align with the country’s actual needs, like data centers or airports, not industries already in crisis,” Akimbayev warned. Industry leaders in Kazakhstan are urging both governments to resolve the dispute and reestablish stable trade conditions for cement exports.

Airports

Uzbekistan Begins Construction of New International Airport Near Tashkent

Uzbekistan has launched one of its largest infrastructure initiatives to date, the construction of a new international airport in the Tashkent region. President Shavkat Mirziyoyev inaugurated the project, which is being implemented by an international consortium of investors. A National-Scale Project The new airport is intended to strengthen Uzbekistan’s aviation sector and establish the country as a key transit hub between East and West. “Ultimately, our goal is to turn Uzbekistan into a major aviation hub connecting East and West, North and South,” Mirziyoyev stated. He underscored that developing transport infrastructure and modernizing air traffic management remain strategic priorities. The project is being led by a consortium comprising Vision Invest (Saudi Arabia, 45%), Sojitz (Japan, 30%), Incheon International Airport Corporation (South Korea, 15%), and Uzbekistan Airports (10%). Construction will unfold in four phases. The first stage, with an estimated cost of $2.5 billion, includes building the terminal complex and airfield. Once completed, the airport will have the capacity to handle up to 20 million passengers annually, process 129,000 tons of cargo, and support up to 30 take-offs and landings per hour. It will feature 14 telescopic ramps and parking for 62 aircraft across a 1,300-hectare site in the Urtachirchik and Kuyichirchik districts of the Tashkent region. Technology, Sustainability, and Connectivity Designed to fully comply with International Civil Aviation Organization (ICAO) standards, the airport will incorporate state-of-the-art air navigation and meteorological systems to ensure operational reliability in all weather conditions. Environmental sustainability is a key focus. It will be the first airport in Central Asia constructed in line with “green” building principles. The passenger terminal will house a 46,000 square meter duty-free zone. The facility will serve as part of a broader multimodal transport hub. It will connect directly to major regional highways, Tashkent-Samarkand, Tashkent-Andijan, and Tashkent-Bostanlyk and will feature a dedicated high-speed rail station and a shuttle service linking Tashkent and the planned city of New Tashkent. Officials project that the new airport could generate more than $27 billion in revenue and create thousands of jobs across sectors including construction, tourism, and logistics. Strengthening Uzbekistan’s Regional Aviation Role Passenger traffic in Tashkent has tripled over the past eight years, reaching 9 million annually. By 2040, it is expected to rise to 24 million. The current airport, limited to 11 million passengers and constrained by its urban location, cannot be expanded, prompting the decision to pursue the new megaproject. Nationwide, Uzbekistan is upgrading seven international airports and has built new terminals in Muynak, Kokand, Zaamin, Shakhrisabz, Saryasyk, and Sohe. The aviation sector has also seen increased competition: the number of airlines has grown to 15, and the aircraft fleet has expanded from 26 to 105 units. Within five years, officials aim to boost the fleet to 180 aircraft, expand routes to 230 destinations, and increase annual flights to 200,000.

Railways

Central Asia’s Rail Corridors: U.S. and Chinese Partnerships in Perspective

Kazakhstan’s railways are modernizing with a U.S. supplier, while Kyrgyzstan and Uzbekistan are advancing a new trans‑mountain link with China. On September 22, 2025, Wabtec and KTZ announced a multi‑year locomotive and services package worth about $4.2 billion, described by the company as its “largest” agreement. In parallel, China, Kyrgyzstan, and Uzbekistan formalized a joint company to build the long-planned CKU railway, with China holding a 51% stake. Central Asia’s rail networks are thus being reshaped by two major partnerships - one with the United States and one with China. Rather than a zero-sum rivalry, these projects show how regional governments are pursuing different infrastructure strategies to expand connectivity. Kazakhstan and Wabtec: Modernizing an Existing Network In September 2025, Kazakhstan’s railway operator KTZ signed a $4.2 billion agreement with U.S.-based Wabtec for 300 Evolution Series ES44ACi locomotives. The diesel-electric engines are tailored for Kazakhstan’s 1,520 mm gauge network and harsh climate, replacing aging Soviet-era stock. Wabtec finalized full ownership of the Astana locomotive plant in late 2023; production and services for 1,520-mm stock are now fully under Wabtec’s Kazakhstan subsidiary. Local manufacturing and long-term service contracts are expected to expand domestic engineering capacity. The locomotives’ digital diagnostic systems should improve fuel efficiency and maintenance intervals. According to the official Wabtec press release, the agreement “strengthens KTZ’s role as a critical and reliable hub for the Middle Corridor,” while KTZ CEO Talgat Aldybergenov said it “confirms our commitment to advanced technologies in the transport sector”. Rail accounts for about 64% of Kazakhstan’s freight turnover (2024), so locomotive performance directly affects Middle Corridor throughput. Financing details have not been disclosed, but the purchase appears to be domestically funded through KTZ and state support. For Astana, the order fits its multi-vector foreign-policy approach: Kazakhstan continues its partnerships with France’s Alstom, China’s CRRC, and Russia, maintaining balance across suppliers. While the locomotives are diesel, Kazakhstan is also electrifying key lines with European partners. Diesels provide an immediate boost without new catenary investment, and Wabtec claims lower emissions than previous models. Over time, expanded electrification could complement this upgrade. Overall, the Wabtec partnership represents incremental modernization. This is an interoperability-based approach that strengthens existing routes rather than building new corridors from scratch. [caption id="attachment_37655" align="aligncenter" width="950"] Image: trains.com - One of Kazakhstan’s modern Evolution Series diesel locomotives (model TE33A) produced through a partnership with U.S. firm Wabtec. Kazakhstan’s railways carry about 64% of the country’s freight, making such upgrades crucial for trade connectivity.[/caption] The China–Kyrgyzstan–Uzbekistan (CKU) Railway: Building a New Corridor After nearly three decades of discussion, China, Kyrgyzstan, and Uzbekistan launched construction of the CKU railway in late 2024. The 523 km line will run from Kashgar (Xinjiang) through the Kyrgyz mountain ranges to Andijan, Uzbekistan. It will provide a second direct China–Central Asia connection, bypassing reliance on Kazakhstan’s network. The CKU is designed with dual gauges: standard (1,435 mm) in China and broad (1,520 mm) in Kyrgyzstan and Uzbekistan, with a dry-port transshipment hub in Makmal, Kyrgyzstan. This compromise allows integration with existing Central...

Kambarata-1 HPP

Kyrgyzstan, Uzbekistan, Kazakhstan Move Forward with $4.2 Billion Kambarata-1 Hydropower Project

The Kambarata-1 Hydropower Plant (HPP), a landmark energy project jointly developed by Kyrgyzstan, Uzbekistan, and Kazakhstan, is gaining international momentum, with strong backing from global financial institutions. Uzbek Minister of Energy Jorabek Mirzamahmudov announced that the plant’s projected construction cost stands at $4.2 billion, while pledged financing has already reached $5.6 billion. In an interview with Uzbekistan 24 TV, Mirzamahmudov said the most recent trilateral ministerial dialogue was held in Brussels in late September, under the auspices of the World Bank. It marked the third high-level discussion between the participating states and brought together representatives from 10 major financial institutions, including the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the OPEC Fund, the Asian Infrastructure Investment Bank (AIIB), the Asian Development Bank (ADB), and several Italian financial entities. The project has been widely recognized as a model for regional cooperation. According to Mirzamahmudov, multiple international lenders have expressed readiness to support Kambarata-1 even before the technical documentation is finalized. “In the past, such projects couldn’t even be discussed, they were off the table. Now they are being supported at the highest level,” he said. “They see this as a regional cooperation project and believe in its long-term economic potential.” Governance and Sustainability Standards Implementation of the project will be managed through an intergovernmental agreement, a joint operator, and a new project-specific venture. The minister emphasized that construction will adhere to international best practices in environmental protection, safety, and financial transparency, while taking into account the national interests of all three countries. Mirzamahmudov described the project as both an energy and environmental milestone. Kambarata-1 will utilize renewable hydropower from the Naryn River and improve transboundary water management across the region. Unlike many large-scale dam projects, the design of Kambarata-1 minimizes environmental and social disruption and does not require resettlement of communities. It is also expected to support regional agriculture by enabling controlled water releases during the summer growing season. Ownership and Output Under the proposed ownership structure, Kyrgyzstan will hold a 34% stake in the project, with Uzbekistan and Kazakhstan each holding 33%. Electricity will be distributed proportionally, though countries will have flexibility to purchase additional power based on demand and market conditions. “Since this is a commercial project, countries will have the flexibility to buy more or less electricity depending on consumption levels,” the minister explained. To be constructed on the upper reaches of the Naryn River in Kyrgyzstan, Kambarata-1 will have a planned capacity of 1,860 megawatts, a dam height of 256 meters, and a reservoir volume of 5.4 billion cubic meters. Upon completion, it is expected to generate an average of 5.6 billion kilowatt-hours annually, making it Kyrgyzstan’s largest hydropower facility and a cornerstone in addressing Central Asia’s energy deficit.

Meat Market

China Opens Market to Kazakhstan Pork Exports

Kazakhstan has secured approval to begin exporting pork to China following the signing of a bilateral protocol on inspection, quarantine, and food safety standards. The agreement was formalized on October 15 in Shanghai by Kazakh Minister of Agriculture Aidarbek Saparov and Sun Meijun, Head of the General Administration of Customs of China. This marks the first time Kazakh pork producers have been granted access to the Chinese market. The agreement allows for the export of frozen, chilled, thermally processed pork products, and offal, signaling a major milestone for Kazakhstan’s agricultural sector. During the Shanghai meeting, the two officials also discussed expanding access for other Kazakh agricultural goods. Saparov highlighted Kazakhstan’s commitment to meeting China’s stringent food safety and quality standards. According to the Ministry of Agriculture, bilateral agricultural trade reached $992.3 million in the first seven months of 2025, a 28 percent increase on the same period in 2024. For comparison, total trade in 2024 amounted to $1.4 billion. This protocol follows a similar agreement signed in May 2025 that opened the Chinese market to Kazakh poultry exports. Currently, more than 2,800 Kazakh enterprises are registered with China’s General Administration of Customs and authorized to export goods to the country. On October 15, Kazakhstan’s Food Contract Corporation signed a memorandum of cooperation in Shanghai with China’s Shandong Hi-Speed Qilu Eurasia Railway Express Co. Ltd. The agreement aims to expand Kazakh exports of grain, animal feed, and oilseeds through a contract farming model, under which Chinese firms purchase future harvests from Kazakh producers at the sowing stage. Minister Saparov noted that Kazakhstan has the capacity to export 3-4 million tons of grain and feed flour to China annually. As previously reported by The Times of Central Asia, a new joint Kazakh-Chinese veterinary laboratory was recently launched in East Kazakhstan. The facility is intended to streamline agricultural export procedures and accelerate inspections for goods entering the Chinese market.

Automobile Industry

Automotive Shift in Central Asia: China Edges Out Russia

In the 2020s, Central Asia has emerged as an increasingly attractive market for the automotive industry. A combination of investment inflows, technological development, and improved logistics, much of it initiated by China, has fueled this transformation. Since the onset of the COVID-19 pandemic, China has rapidly expanded its influence in the region’s automotive sector and is becoming the dominant external supplier in import-reliant markets, even in countries with domestic manufacturing capabilities. Manufacturing Hubs and Import Markets The Central Asian automotive landscape reflects the region’s economic diversity. Uzbekistan and Kazakhstan serve as the main manufacturing hubs, while Kyrgyzstan, Tajikistan, and Turkmenistan rely heavily on imports. By the end of 2024, while the global automotive sector faced a slowdown, Uzbekistan recorded modest growth in car production, up 0.8% year-on-year. In contrast, Kazakhstan saw a 1.6% decrease. During the first seven months of 2025, Uzbekistan produced 212,200 passenger vehicles, a 3.5% increase compared to the same period in 2024. Truck production rose sharply by 28%, from 1,800 to 2,300 units. With a population of approximately 37 million, Uzbekistan remains the region’s industrial center. The state-owned UzAuto Motors, formerly GM Uzbekistan, dominates more than 90% of the domestic passenger car market. Models such as the Chevrolet Cobalt, Nexia, and Tracker are built on General Motors platforms and produced at the main plant in Asaka, which has a capacity of 280,000 vehicles per year. Some of this output is exported to Russia, Azerbaijan, and Georgia. In a bid to stay competitive with Chinese brands, Uzbekistan launched a joint venture with BYD in 2023 and announced the construction of a $1.5 billion electric vehicle (EV) plant in the Ferghana region with Chinese support. Kazakhstan’s key market players include Allur and Hyundai Trans Kazakhstan. Allur’s Kostanay plant produces up to 125,000 Kia, Chevrolet, Skoda, JAC, Jetour, and Hongqi vehicles annually, and accounts for 61% of the national output. Hyundai Trans Kazakhstan in Almaty has a capacity of 50,000 units, covering 31% of production. Two new car plants are expected to open in 2025. The first, a $200 million investment by Kia, will be located in the Kostanay region and marks the company’s first Central Asian plant. With a planned capacity of 70,000 vehicles per year, the move underscores Kia’s long-term commitment to Kazakhstan. “We are excited about the promising opportunities opening up in the Kazakh market. Kazakhstan's economy is developing dynamically and on a large scale. We see great potential for our business in this market,” said Kia President and CEO Ho Sung Song. The second plant, in Almaty, will assemble Chinese brands with a target of 90,000 vehicles annually. Rather than compete with Chinese imports, Kazakhstan has opted to localize production in partnership with Chinese manufacturers. Import-Dependent Markets and China’s Tailored Approach While Kyrgyzstan and Tajikistan host minor assembly operations, primarily with Chinese partners, their automotive fleets, along with Turkmenistan’s, are largely replenished through imports. Since 2020, shifts in global logistics have transformed China from an alternative supplier into the dominant source of vehicles in these...