Central Asia - The Times Of Central Asia

Viewing results 31 - 36 of 5837

Energy Transition

Kazakhstan Launches QaJET Investment Platform for Just Energy Transition

Kazakhstan has announced the launch of the QaJET (Just Energy Transition) investment platform, supported by the European Bank for Reconstruction and Development (EBRD), to attract international financing and accelerate the decarbonization of its economy. A corresponding memorandum was signed on April 23 during the Regional Environmental Summit in Astana. Signatories included Energy Minister Yerlan Akkenzhenov, Minister of Ecology and Natural Resources Yerlan Nysanbayev, and EBRD Managing Director for Central Asia and Mongolia Hüseyin Özhan. The QaJET platform reflects Kazakhstan’s ambition to accelerate the transition to clean energy through a large-scale expansion of renewable energy capacity. According to current plans, the country aims to commission 10 GW of new green capacity by 2035. According to EBRD estimates, achieving these targets will require approximately $20 billion in investment from both public and private sources. This is expected to reduce greenhouse gas emissions by more than 20 million tonnes annually, equivalent to roughly 7% of the country’s energy-related emissions. The creation of the platform is of strategic importance for Kazakhstan, whose economy remains highly carbon-intensive and heavily dependent on coal-fired power generation. At the request of the Kazakh government, the EBRD participated in developing the QaJET concept and will continue to coordinate its implementation with national and international partners. The platform is also intended to support Kazakhstan’s international climate commitments, including achieving carbon neutrality by 2060 and reducing greenhouse gas emissions by up to 25% by 2030 compared to 1990 levels. QaJET is expected not only to reduce emissions but also to strengthen energy security, enhance economic competitiveness, and promote the development of local high-tech manufacturing in the renewable energy sector. Key areas of cooperation within the platform include expanding renewable energy capacity, modernizing power grids and energy storage systems, electrifying businesses and households, and supporting a just transition, technology transfer, and the development of research and innovation capacity. Authorities expect QaJET to become the central mechanism for coordinating climate finance, bringing together international financial institutions, donors, private investors, and the government to accelerate Kazakhstan’s energy transition.

EU Sanctions

EU Removes Three Tajik Banks from Sanctions List

The European Union has removed three financial institutions in Tajikistan from its sanctions list. The decision was adopted on April 23, as part of the EU’s 20th sanctions package, according to the National Bank of Tajikistan. The move concerns Spitamen Bank, Dushanbe City Bank, and Commercebank of Tajikistan, which had previously been subject to restrictions introduced on November 12, 2025. “As a result of productive dialogue and cooperation between the relevant authorities of the Republic of Tajikistan and European partners, a favorable basis has been created for reviewing previously imposed restrictions,” the National Bank said. The National Bank also noted that the decision reflects strengthened cooperation between the regulator, government ministries, and the European Commission, as well as the consistent implementation of international compliance standards and improvements in anti-money laundering systems. “The adoption of this decision is viewed as a direct result of expanded cooperation with the European Commission, the consistent implementation of international compliance standards, and the strengthening of mechanisms to combat money laundering,” the statement said. The regulator believes the move will provide a strong boost to the development of the banking sector, increase investor confidence, and expand financial services in the country. The sanctions against the three Tajik banks had originally been introduced under the EU’s 19th package of restrictions against Russia. According to the Council of the EU, the measures included a ban on transactions with certain banks and companies from third countries suspected of facilitating sanctions circumvention. At the time, Brussels considered these institutions potential channels for bypassing restrictions imposed on Russia. The list also included financial entities from Kyrgyzstan, Kazakhstan, the United Arab Emirates, Hong Kong, China, and India. However, specific cases or transaction volumes that led to the sanctions were not disclosed. The wording remained general, referring to “assistance in sanctions circumvention” and “support for the Russian economy.” In response, Tajik authorities worked to secure the removal of the restrictions, providing additional guarantees and information to the EU demonstrating that the banks’ financial operations comply with international standards. For its part, the EU showed readiness to reconsider the measures, taking into account changes in the banks’ financial practices and Tajikistan’s efforts to strengthen domestic financial regulation.

Afghanistan

Uzbekistan Expands Afghan Rail Capacity to Support Growing Trade

A new 1,000-meter siding track has been completed at Naibabad railway station in Afghanistan, aimed at increasing freight handling capacity and improving the efficiency of rail operations, according to Uzbekistan Railways. The project was implemented by Uzbekistan Railways in cooperation with Sogdiana Trans. The additional track is expected to significantly expand the station’s throughput and accelerate loading and unloading processes, reducing delays and congestion along the route. Afghanistan plays a key role in regional connectivity, linking Central Asia with South Asia through transport corridors that pass through its territory. Naibabad is expected to serve as an important hub for the movement of goods from countries such as Russia, Kazakhstan, and China to markets in Pakistan and India. The development comes amid a steady increase in cargo volumes between Uzbekistan and Afghanistan. The Hayraton-Naibabad-Mazar-i-Sharif corridor has become an important route for regional trade, and infrastructure upgrades are seen as essential to maintaining stable freight flows. According to project details, the new siding will enable more efficient processing of freight wagons and help prevent bottlenecks along the line. It is also expected to improve service quality for customers and support the long-term development of Naibabad station. Uzbekistan Railways noted that the project reflects the country’s ongoing efforts to modernize railway infrastructure in Afghanistan and strengthen cross-border logistics links. Cooperation with Sogdiana Trans has further reinforced their position as long-term partners in the development of Afghanistan’s rail sector. The expansion builds on earlier work at the station. In 2024, Uzbekistan Railways reported that the restored Naibabad station officially reopened on August 7, following reconstruction carried out in cooperation with the Termez regional railway hub and Sogdiana Trans. The arrival of the first freight cars marked the resumption of operations. As freight traffic along the corridor continues to grow, Uzbekistan Railways and its partners, in coordination with Afghanistan’s Ministry of Public Works, are continuing efforts to modernize infrastructure along the route.

Credit Ratings

Kyrgyz Authorities Seek Review of Sovereign Credit Rating

Kyrgyzstan’s Minister of Economy and Commerce, Bakyt Sydykov, held talks with analysts in Washington on the sidelines of the Spring Meetings of the International Monetary Fund and the World Bank Group, where the country’s macroeconomic stability was discussed. According to Sydykov, Bishkek is seeking an upgrade to its sovereign credit rating as part of the implementation of the National Development Program through 2030. He noted that engagement with Moody’s is aimed at strengthening international investor confidence and forms part of an ongoing institutional dialogue. Sydykov said the country is meeting its obligations within the framework of cooperation with the agency and expects further constructive information exchange. He also recalled that last year Moody’s revised Kyrgyzstan’s outlook to “positive” while maintaining the rating at B3, which authorities interpreted as confirmation of ongoing reforms. The minister added that the country’s economy has grown at an annual rate of 9.5-11% over the past four years, driven by investment, domestic demand, and activity in construction, services, and industry. Following the meeting with Moody’s, Sydykov also held talks with representatives of U.S. businesses, presenting investment opportunities in logistics, transport infrastructure, and energy, including hydropower. According to the National Statistical Committee of Kyrgyzstan, investment in fixed capital increased by 25% year-on-year in the first quarter, reaching 77.3 billion KGS ($883.4 million). Domestic investment rose by 20%, while foreign investment increased by 50%. For comparative sovereign risk ratings on Central Asia see TCA's Central Asia Balance Sheet.

Fuel

Kazakhstan Launches Grain-Based Fuel at Gas Stations

Gas stations in Kazakhstan have begun selling gasoline blended with bioethanol produced from grain. Fuel marketed under the BI-95 brand has been launched by the KazFoodProducts holding. It contains bioethanol derived from processed wheat, creating a full production cycle from agricultural raw materials to finished fuel. A key component of the production chain is the BioOperations facility in the North Kazakhstan Region, the country’s only deep grain-processing complex, where bioethanol is produced. The fuel is then blended and distributed to market by BioPetrolCompany. BI-95 is a gasoline blend containing between 5% and 10% bioethanol. According to the manufacturer, the fuel maintains standard performance characteristics, including octane rating, while offering improved environmental performance. Bioethanol is considered a carbon-neutral component because it is produced from renewable raw materials. Such fuels have been widely used in the European Union, the United States, and Japan for more than two decades. Kazakhstan is only beginning to adopt these technologies, although BioOperations has been exporting its products to EU and UK markets since 2022. According to the developers, the use of BI-95 does not require vehicle modifications and is compatible with existing gasoline engines. Tests have shown comparable power and torque performance to conventional fuel. The primary benefit lies in emissions reduction. According to the company, particulate matter emissions decrease by more than 70%, nitrogen oxides by 25%, and greenhouse gas emissions by 60-70% compared to AI-92 gasoline. The new fuel is already available at retail stations. According to project head Laura Bergibayeva, the launch is aimed not only at expanding the product range but also at reducing environmental impact, particularly in major cities such as Almaty, where air quality remains a pressing concern. The Times of Central Asia previously reported that scientists at Aktobe Regional University had developed a gas purification technology capable of significantly reducing dust and harmful substances in industrial emissions.

Aral Sea

Mirziyoyev Announces Uzbekistan’s 2027-2029 Leadership of Aral Sea Fund

On April 22, Uzbekistan’s President, Shavkat Mirziyoyev, took part in a meeting of the Council of the Heads of Founder States of the International Fund for Saving the Aral Sea, where regional leaders discussed growing water challenges and environmental risks in Central Asia. The meeting reviewed the results of Kazakhstan’s chairmanship of IFAS for 2023-2026 and focused on improving environmental, water management, and socio-economic conditions in the Aral Sea basin. In his remarks, Mirziyoyev warned that water shortages in the region are expected to intensify. “According to expert estimates, the water deficit in the Aral Sea basin could almost double to 20 billion cubic meters per year by as early as 2040,” he said, adding that this could pose risks to drinking water supply, agriculture, energy production, and regional stability. He also noted that water use efficiency in Central Asia remains low. In agriculture, nearly three cubic meters of water are used to generate $1 of added value, compared to roughly half that level globally. [caption id="attachment_47681" align="aligncenter" width="2560"] @Akorda[/caption] Mirziyoyev outlined steps taken in Uzbekistan to address these challenges. Water-saving technologies have been introduced on 60% of irrigated land, while 40% of irrigation canals have been concreted. Modernization of pumping stations has reduced energy consumption in the sector by nearly 30%. A unified digital database covering more than 600,000 water users and over 4 million hectares of irrigated land is also being developed. As a result, Uzbekistan has achieved annual water savings exceeding 10 billion cubic meters, with plans to increase this figure to 15 billion cubic meters by 2030. The Uzbek president emphasized the importance of strengthening IFAS and transforming it into a key platform for regional integration. Uzbekistan is set to assume the chairmanship of the fund for 2027-2029. Among the proposals discussed were improving the effectiveness of IFAS programs, introducing performance indicators to monitor progress, and expanding cooperation with international partners. Mirziyoyev also called for aligning the fund’s work with broader regional initiatives agreed at Consultative Meetings of Central Asian leaders. He highlighted the need for greater cooperation on climate adaptation, glacier preservation, and combating desertification, and proposed launching a regional program titled “Water of the Future” to train farmers and businesses in water-saving technologies. The president also stressed the importance of engaging Afghanistan in regional water and environmental cooperation and called for developing a long-term legal framework for water distribution in the basin. Kazakhstan’s President, Kassym-Jomart Tokayev, likewise called on Central Asian countries to strengthen coordination on water resources and environmental policy amid growing climate risks. According to Tokayev, the situation in the Aral Sea basin remains strained: despite some progress, environmental threats are intensifying faster than mitigation efforts. He pointed to rising temperatures, declining precipitation, and increasingly frequent dust storms that spread salt and chemical pollutants over vast distances, affecting ecosystems and public health. The president emphasized that the International Fund for Saving the Aral Sea remains a key regional platform for coordinating efforts in water, energy, and environmental management. He noted that, with...