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Geology

Kazakhstan to Launch First International Full-Cycle Geo-Laboratory in Almaty

Kazakhstan is establishing GeoLab Eurasia, the first internationally certified full-cycle geological laboratory in Central Asia. Located in Almaty, the facility will provide high-precision analysis of ore composition and quality in accordance with internationally recognized standards, including NI 43-101, JORC, and ISO/IEC 17025. The creation of this domestic laboratory marks a strategic move to improve the accuracy and credibility of Kazakhstan’s mineral reserve assessments, enhance investor confidence, and reduce reliance on foreign laboratories. GeoLab Eurasia is expected to streamline the mineral certification process and boost the country’s competitiveness in global geological markets. International Collaboration and Scientific Sovereignty The project is being implemented through a tripartite partnership involving the Satpayev Institute of Geological Sciences, Kazakhstan’s Kepler Group, and Chinese firm Eurasia Mineral Standard, which serves as the project’s strategic investor. Founding documents were signed in Almaty on July 23. Askar Syzdykov, Director of the Satpayev Institute, emphasized the broader impact of the initiative: “We view this project as a long-term platform not only for rock and core analysis, but also for joint training programs and the exchange of best international practices. This marks a historic moment where science, technology, and Kazakhstan’s development strategy converge.” Sultan Kinzhekulov, Deputy Chairman of the Investment Committee under the Ministry of Foreign Affairs, underscored the strategic value of the initiative: “GeoLab Eurasia represents a new level of Kazakhstan’s industrial and scientific sovereignty. Projects like this are crucial not only economically, but also in positioning Kazakhstan as a reliable player in global critical mineral supply chains.” Infrastructure and Timeline GeoLab Eurasia will consist of two main components: a laboratory and educational center housed at the Geological Institute in Almaty, and an industrial hub outside the city that will include sample preparation lines and core storage facilities. The laboratory is expected to open in October 2025, with the industrial complex slated for launch in the first quarter of 2026. Once operational, GeoLab Eurasia will serve as a regional center for geological research and mineral certification. The facility is positioned to elevate Kazakhstan’s technological and scientific capabilities in geology and to strengthen its standing in the global market for strategic mineral resources.

Electricity

Kyrgyzstan Sets New Summer Electricity Consumption Record

Kyrgyzstan has recorded a new peak in daily electricity consumption during the summer season, reaching 44.1 million kilowatt-hours (kWh) in a single day, according to the National Electric Grid of Kyrgyzstan (NEGK). This marks a 22% increase compared to the same period in 2024, when the maximum daily load stood at 36 million kWh. The surge is largely attributed to an extended heatwave, with temperatures in major cities exceeding 40°C, prompting heavy use of air conditioners and cooling systems. The NEGK also reported a steady rise in electricity consumers, with an estimated 30,000 new subscribers joining the grid annually. This trend is fueled by Kyrgyzstan’s ongoing construction boom, which includes the development of residential complexes and industrial sites, sectors that have become pillars of the national economy. Despite the strain, the power grid remains stable. “We urge citizens to use electricity sparingly. Rational resource use contributes to the reliable operation of the energy system,” the company stated in a public advisory. Residents were also encouraged to unplug unused appliances to conserve energy. Summer Surplus, Winter Strain Unlike the winter months, Kyrgyzstan typically enjoys a surplus of electricity in summer due to the seasonal melting of glaciers, which boosts hydroelectric output. The country is preparing to participate in the CASA-1000 project alongside Tajikistan, aiming to export surplus electricity to Pakistan via Afghanistan. These exports will be limited to the summer, as Kyrgyzstan faces significant energy shortages in winter. According to the National Energy and Power System Company, winter electricity demand can reach 80 million kWh per day, placing substations under considerable stress. To mitigate shortages and prevent rolling blackouts, Kyrgyzstan imports electricity from Kazakhstan and Russia, and under contracts with Turkmenistan and Uzbekistan. The country’s energy reserve capacity is shrinking due to increasing demand. In response, the Ministry of Energy is investing in network expansion and voltage stabilization. In 2024, five 110 kV substations were constructed. In 2025, two additional major facilities are slated to open in the Issyk-Kul and Batken regions, each with a capacity of 500 kWh.

Construction

Kyrgyzstan Tops EAEU in Construction Growth Despite Labor Woes

Kyrgyzstan recorded the highest growth in construction activity among member states of the Eurasian Economic Union (EAEU) during the first half of 2025, according to data published by the Eurasian Economic Commission (EEC). Infrastructure Boom Drives Expansion Between January and May 2025, construction volumes in Kyrgyzstan nearly doubled compared to the same period in 2024. Last year, the sector had already grown by 38% year-on-year. Armenia followed with a growth rate of 29%, while Kazakhstan, Belarus, and Russia posted more modest increases of 15.4%, 12.3%, and 5.5% respectively. Across the EAEU, construction grew by an average of 6.8%. The primary drivers of Kyrgyzstan’s construction boom include extensive state and private investment in housing, infrastructure, and industrial development. The government has focused on building hydroelectric power plants, residential complexes, and administrative buildings. Notably, the state mortgage program offers housing loans at 4-8% interest rates, well below market levels. From January to April 2025, the Cabinet of Ministers allocated nearly $500 million toward housing projects, supplemented by $77 million in equity financing. To help stabilize construction costs, the government also classified cement as a socially significant good, subject to price controls. According to The Times of Central Asia, investment in housing, infrastructure, and social facilities rose by 62% year-on-year during the first four months of 2025, reaching approximately $800 million, the highest figure in recent years. The construction sector contributed an estimated 3% to Kyrgyzstan’s GDP growth in the first half of the year. Quality and Labor Concerns Persist Despite these achievements, concerns are growing over construction quality and labor shortages. Residents in major cities report poorly planned developments that lack supporting infrastructure, including roads and essential utilities such as water and electricity. Speaking to The Times of Central Asia, construction auditor Bakhtiar Kasymaliyev highlighted critical challenges in project execution. “We have serious problems with quality and professionalism,” he said. “There is a shortage of skilled concrete workers and bricklayers. They are in high demand. As a temporary solution, companies are bringing in labor from Pakistan, India, and Egypt, but most of them are unskilled. To improve quality, we need to attract qualified specialists from abroad.” According to Kasymaliyev, the labor shortage is already impacting project timelines and structural integrity, raising red flags amid the sector’s rapid expansion.

Industry

Turkish Safi Holding Eyes Sugar Factory Investment in Kazakhstan

Turkish industrial conglomerate Safi Holding has expressed interest in developing a high-tech sugar processing facility in Kazakhstan, according to the country's Ministry of Agriculture. The announcement followed a meeting between Agriculture Minister Aidarbek Saparov and Safi Holding CEO Safi Atakan. The two sides discussed the proposed plant’s specifications, which include the capacity to process up to 1 million tons of sugar beets annually and produce approximately 140,000 tons of sugar. The estimated investment ranges from $150 million to $200 million. Potential sites for the factory are currently under consideration. According to the ministry, the key criteria for site selection include the availability of arable land for beet cultivation and proximity to necessary infrastructure. Safi Atakan praised Kazakhstan’s agro-industrial potential, particularly in sugar production. "Kazakhstan presents favorable conditions for expanding sugar processing operations," he noted. A similar initiative is underway by UAE-based Al Khaleej Sugar, one of the world’s largest sugar producers, which is planning a plant in southern Kazakhstan. Industry Gaps and Import Dependence Kazakhstan’s sugar sector is currently under strain due to limited processing capacity. There are four sugar factories in operation: AksuKant (Taldykorgan district), Koksu Sugar Factory (Almaty region), and the Merken and Taraz factories in the Zhambyl region. Of these, three process locally grown sugar beets, while the facility in Taraz handles imported cane sugar. Despite a record harvest of 1.2 million tons of sugar beets in 2024, only about 700,000 tons were processed, exposing significant inefficiencies in the processing chain. In 2023, Kazakhstan produced 243,000 tons of sugar, less than half of its domestic demand. The remainder was imported, primarily from Russia. However, reliance on imports has proven volatile. In the summer of 2022, Russia’s temporary export ban led to a spike in domestic sugar prices. In response, the Kazakh government imposed seasonal export restrictions, which have been extended through 2025, to stabilize local markets.

Driverless Cargo

Kazakhstan and China Pilot Driverless Cargo Transport Project

Kazakhstan and China have launched a pioneering pilot project called “Smart Customs,” which will enable the use of driverless vehicles to transport cargo across their shared border. The program is currently being tested at the Bakhty (Kazakhstan) and Pokitu (China) border checkpoints. Its main goal is to streamline customs procedures using high-tech solutions, with autonomous trucks as the project’s central feature. These unmanned vehicles are designed to cross the border automatically, removing the need for human drivers. The initiative was formalized during a working meeting between Zhandos Duisembiev, Chairman of Kazakhstan’s State Revenue Committee, and Zhixianwei, Party Secretary of the Chinese city of Tacheng in the Xinjiang Uyghur Autonomous Region. The two sides signed a cooperation agreement confirming their commitment to harmonize efforts, share expertise, and support digital innovation in logistics. The Smart Customs system incorporates several advanced technologies: A unified electronic declaration system recognized by both countries Fully digitized documentation and data processing Continuous, unmanned cargo movement across the border Automated navigation and operational control These innovations are expected to reduce border processing times, lower transportation costs, and improve operational transparency. The project also aims to support the development of logistics infrastructure along the border. Key objectives of the initiative include: Expanding annual cargo capacity to 10 million tons Establishing logistics hubs to relieve pressure on current infrastructure Creating employment opportunities and attracting investment Increasing exports of Kazakhstani agricultural products, including grain, oilseeds, meat, and processed goods According to Kazakhstan’s Ministry of Finance, the initiative is intended to strengthen the country’s position as a regional transit hub and to deepen trade relations with China. Kazakhstan has previously faced criticism over delays in customs inspections. A study by the German Society for International Cooperation (GIZ) in late 2024 found Kazakhstan had the slowest inspection times among Central Asian countries, averaging 2 hours and 26 minutes per cargo inspection. In comparison, Turkmenistan averaged 50 minutes, Uzbekistan 1 hour and 25 minutes, Kyrgyzstan 1 hour and 28 minutes, and Tajikistan 1 hour and 50 minutes. The rollout of Smart Customs is expected to significantly improve these statistics and help Kazakhstan match the efficiency of regional leaders in border processing. Autonomous cross-border freight transport has also been explored by Russia and China. Previous plans aimed to launch driverless cargo operations across the new Blagoveshchensk–Heihe Bridge, although that project has yet to materialize.

Oil

New Russian Regulations Halt Kazakhstan’s Black Sea Oil Exports

Kazakhstan has temporarily suspended oil exports via the Black Sea ports of Novorossiysk and Yuzhnaya Ozerovka due to newly enforced Russian regulations. The rules, which took effect on July 21, require foreign vessels entering Russian ports to receive prior approval from the Federal Security Service (FSB) and the port captain. Strategic Ports, Vulnerable Logistics According to Reuters, the new clearance procedures have effectively blocked shipments of Kazakh crude transported through the Caspian Pipeline Consortium (CPC) system. The disruption could reduce global oil supply by more than 2% (source). Over 80% of Kazakhstan’s oil exports are shipped through terminals in Novorossiysk and Yuzhnaya Ozerovka. The primary export product is CPC Blend, produced by major Kazakh oil firms, including ventures with significant American corporate participation. The decree by President Vladimir Putin, issued earlier this month, was introduced amid rising maritime threats. In 2025 alone, five tanker explosions have occurred in the region. One of the most serious incidents involved the tanker Koala, which was damaged in February while docked in the Russian port of Ust-Luga. Despite suspicions, none of the targeted tankers were carrying Russian crude sold above the G7 price cap. Tracking data revealed that each vessel had visited ports used for Kazakh oil exports, which are not subject to Western sanctions, according to the Financial Times. The CPC had planned to export 6.5 million tons of CPC Blend in August, maintaining the July level. Of that, 2.2 million tons were shipped via Novorossiysk. Mounting Risks, Limited Alternatives The security of Kazakhstan’s energy infrastructure is further threatened by ongoing regional instability. In February, seven Ukrainian drones attacked the CPC’s Krokotinskaya oil pumping station. While there were fears of a 30% drop in throughput, Kazakhstan’s Ministry of Energy denied any disruption, stating that “oil is being received according to schedule”. Financial analyst Rasul Rysmambetov, writing on his Telegram channel ArtFinanze, urged restraint but acknowledged the seriousness of the situation: “If attacks on infrastructure continue, it will become increasingly difficult to protect the underwater pipeline system.” He also warned that the involvement of Western firms such as Chevron may not deter further risks: “Contrary to popular belief, the participation of companies such as Chevron will not stop anyone. On the contrary, such infrastructure can be used to put pressure on entire countries”. Currently, nearly all of Kazakhstan’s oil exports transit Russian territory. The CPC handles 80%, while another 13% flows through the Atyrau-Samara pipeline, connected to Russia’s Transneft system. The remaining 7% is routed via the Kazakhstan, China pipeline, the Baku-Tbilisi-Ceyhan (BTC) pipeline, and railways. Even if capacity on the BTC route is expanded to 3 million tons annually, it would barely compensate for the over 60 million tons currently exported through the CPC system. Despite frequent official calls for diversification since 2022, Kazakhstan’s oil export infrastructure remains acutely vulnerable, highly dependent on transit decisions made by foreign governments.