Draft - The Times Of Central Asia

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Electricity Supply

Kyrgyzstan and Tajikistan Brace for Winter Power Shortages

As winter approaches, Kyrgyzstan is warning of potential electricity shortfalls due to critically low water levels in its hydro-reservoirs, and authorities are rolling out emergency measures. These include urging electricity conservation, shutting down all cryptocurrency mining farms to relieve grid pressure, increasing electricity imports, and accelerating repairs and upgrades to aging power-generation infrastructure. Officials with the Ministry of Energy and Industry of the Kyrgyz Republic say the reserves in key hydropower reservoirs are at their lowest level in more than a decade. At the same time, demand for electricity in homes and businesses is forecast to increase significantly this winter because of colder temperatures. The gap between supply and demand has forced the government to ask households to reduce electricity use during peak hours. Historically, Kyrgyzstan has relied heavily on hydropower. The country’s flagship facility, the Toktogul Hydroelectric Power Station, supplies roughly 40% of the nation's electricity. But its reservoirs are fed primarily by spring and summer snowmelt. In recent years, melting snow has arrived earlier and run-off has fallen, shrinking water levels. According to the International Renewable Energy Agency (IRENA), Kyrgyzstan’s hydroelectric system faces serious seasonal variability in its generational capacity. This winter’s challenge is compounded by weak output from thermal plants and delayed maintenance. The government reports that the ageing coal-fired and gas-fired plants in the north and south of the country require urgent repairs, with rehabilitating the plant in Bishkek alone set to cost around $150 million. With limited funds, several units will remain offline during the cold months. The immediate consequences for households are already appearing. Residents in Bishkek and surrounding regions have reported recurrent evening outages sometimes lasting a few hours. Landlord-run apartment blocks plan to brief residents about schedules for rotating cuts. In smaller towns and villages, citizens fear longer blackouts if the cold deepens. Businesses are also feeling the shock. Small-scale manufacturers report that they have had to halt production during scheduled cuts, eroding profits and increasing costs. Schools and hospitals say they are depending on standby generators. Energy stability plays a central role in Kyrgyzstan’s economy and social well-being. Without reliable power, business productivity falls, heating systems malfunction, and social discontent can spike. In recent years, protests over energy prices and outages have forced the government to scramble for solutions. The current measures are aimed not only at keeping the lights on but maintaining public confidence ahead of looming parliamentary elections. Regionally, Kyrgyzstan’s electricity system interacts with its neighbors. The country imports power from Kazakhstan and exchanges electricity with Uzbekistan, with cross-border feeds from Kazakhstan helping to cover shortages. This winter, Kazakhstan’s own constraints may limit exports, leaving Kyrgyzstan more exposed. Meanwhile, China has offered investment in hydropower expansion as part of regional cooperation. That deal may eventually increase supply, but it will not help in the short term. Meanwhile, neighboring Tajikistan is grappling with comparable winter electricity pressures. The country sources about 95% of its electricity from hydropower and enters the cold season with low reservoir and river flows that sharply...

Real Estate

Uzbekistan Emerges as Key Market for China’s Real Estate Giants

Since 2021, China’s property sector has been navigating one of the most severe downturns in its history. A combination of mounting developer debt, strict government lending rules, and a large stock of unsold housing has pushed the country’s real estate giants into prolonged distress. As speculative construction slows at home, Chinese companies are increasingly turning outward. Similar to firms in renewable energy, waste-to-energy, and electric vehicle industries, real estate developers now see foreign markets as essential for restoring balance and sustaining growth. In this broader search for new opportunities, Uzbekistan has emerged as a highly compelling destination for Chinese investment. The country offers a rare mix of rapid demographic growth and urgent housing needs that few markets can match. Uzbekistan’s population is expanding at a fast pace, and more than 60,000 new households form every year. This demographic surge is placing enormous strain on the country’s already limited housing stock. Official data shows that around 85,000 families are waiting for housing, yet annual construction increases the existing stock by only one to two percent. The result is a persistent shortage that cannot be resolved without sustained and large-scale capital investment. If this deficit remains unaddressed, it risks creating long-term social frustration. Against this backdrop, the interests of Chinese real estate developers and Uzbekistan’s housing priorities are beginning to align. Chinese firms looking for stable and high-demand markets increasingly view Uzbekistan as an attractive place to expand. Tashkent, in particular, has become a center of growing cooperation with Chinese partners. Several recent agreements illustrate this momentum. The Chinese firm TSC HK Investment is preparing a $340 million project for a residential complex and business center in the Chilanzar district of Tashkent. The city authorities have also signed agreements worth about $1 billion with CSCEC, including a major housing development valued at $440 million. Beyond the capital, another Chinese investor plans to allocate $250 million to build a modern complex covering 55 hectares in the city of Babur in the Andijan region. For Chinese companies, Uzbekistan offers a large and expanding market that helps absorb China’s massive overcapacity in construction services, heavy machinery, and industrial materials such as steel and cement. Investing in Uzbekistan not only eases domestic economic pressure but also allows Chinese firms to demonstrate their capabilities in shaping the daily lives of Uzbek families. Large residential projects provide opportunities to familiarize local communities with Chinese standards, technologies, and urban design practices. When these projects are executed successfully, they can contribute to a positive image of China and strengthen its soft power presence in the country. For Uzbekistan, China’s growing involvement brings several advantages. Chinese investment can help meet the country’s rapidly rising demand for housing and reduce the likelihood of long-term social frustration linked to shortages. Chinese developers often work with integrated models that go beyond simple residential blocks. They build high-density and multi-functional complexes combining housing, business centers, educational facilities, and public services. This approach aligns closely with Uzbekistan’s strategy to encourage sustainable urbanization, improve living conditions, and...

Wildlife Conservation

Russia’s Amur Tigers to Aid Restoration of Tiger Population in Kazakhstan

Kazakhstan and Russia have signed a formal action plan to reintroduce Amur tigers into Kazakhstan, marking a key step in restoring the region's long-extinct Turan tiger population. On November 12, Kazakhstan’s Ministry of Ecology and Natural Resources and Russia’s Ministry of Natural Resources and Environment agreed to transfer four Amur tigers, two males and two females from Russia to Kazakhstan. The animals will be relocated to the Ile-Balkhash State Nature Reserve in southern Kazakhstan, where they will undergo adaptation to local ecological conditions. According to Kazakhstan’s Ministry of Ecology, the reintroduction plan is scientifically supported. The now-extinct Turan tiger once roamed across Central Asia, the Caucasus, and northern Iran. Biologists believe that the Turan and Amur tigers, the latter native to Russia’s Far East, share the same genetic lineage. This provides a basis for using Amur tigers to revive the Turan population in Kazakhstan. Under the agreement, Russia will be responsible for veterinary oversight and transportation, while Kazakhstan will manage accommodation and post-transfer monitoring. The initiative is being implemented with support from the World Wildlife Fund (WWF) and the United Nations Development Programme (UNDP). In September 2024, two Amur tigers, a male and a female, were already transferred to the Ile-Balkhash Reserve from the Landgoed Hoenderdaell Zoo in the Netherlands. They are currently housed in a specially designed enclosure for breeding, with the aim of releasing their offspring into the wild. If successful, their cubs would be the first wild tigers to return to Kazakhstan in over 70 years. The southern shore of Lake Balkhash, located in the Ili River delta, was selected as the optimal site for tiger reintroduction. The Ile-Balkhash Reserve was created to rehabilitate the degraded ecosystems of the southern Balkhash region, with particular emphasis on restoring the tiger’s natural prey base. The reserve encompasses the last intact river delta in Central Asia, the Ili River Delta, whereas other major deltas such as those of the Syr Darya, Amu Darya, and Chu rivers have been severely degraded due to desertification. Officials say enhancing the prey base and preserving the area’s remoteness will help prevent human-wildlife conflict. Historically, Turan tigers inhabited reed beds and floodplain forests along the Ili and Syr Darya rivers. Tiger extermination in Kazakhstan began in 1891, when organized military hunts were conducted. The extinction of key prey species, including Bukhara deer, goitered gazelles, saigas, kulans, roe deer, and wild boars, combined with habitat loss, ultimately led to the disappearance of the Turan tiger by 1948. This is not Kazakhstan’s first species reintroduction effort. In June 2024, the country successfully reintroduced the first group of Przewalski’s horses to the Altyn Dala Nature Reserve in the Kostanay region. The horses were transported from the Prague Zoo.

Foreign Investment

Kazakhstan Courts Global Investment with Critical Minerals and Green Energy Push

Since gaining independence, Kazakhstan has established itself as a reliable global supplier of raw materials. Today, the country's economic structure is evolving as it positions itself as a high-added-value hub for industrial production. These developments are closely tied to Kazakhstan’s transition to a green economy and its role in global supply chains for critical minerals. Creating a Favorable Investment Climate Kazakhstan has taken significant steps to create a transparent, predictable investment environment and enhance its business competitiveness. Among these measures is the introduction of investment agreements that guarantee legislative stability for up to 25 years for large projects exceeding $60 million. The legal framework has also undergone reforms, procurement procedures have been modernized, and judicial reforms have created separate cassation courts and redefined the Supreme Court’s role. These reforms have drawn the attention of international investors and rating agencies. In 2024, Moody’s upgraded Kazakhstan’s long-term credit rating to the highest level in the country's history, citing macroeconomic stability and policy predictability. In the first nine months of 2025, GDP grew by 6.3%, while investment in fixed capital rose by 13.5% to reach $26 billion. Moody’s analysts also highlighted Kazakhstan’s stronger economic outlook compared to other hydrocarbon-exporting nations, attributing this to ongoing reforms that enhance the country’s competitiveness. One key driver is the rapid development of the transport and logistics sector, particularly through the Trans-Caspian International Trade Route, also known as the Middle Corridor. This corridor is attracting foreign investors across a range of non-oil sectors, including automotive, pharmaceuticals, food production, and construction materials. Kazakhstan is also home to the Astana International Financial Centre (AIFC), a platform that operates under English common law. The AIFC offers tax exemptions, simplified labor regulations, and digital arbitration. It currently ranks first in Eastern Europe and Central Asia in the Global Financial Centres Index. More than 4,200 companies from 80 countries, including over 60 American firms, are registered with the AIFC. Strategic Projects Take Shape Kazakhstan’s diversification strategy and focus on critical minerals were prominently showcased during the 8th Kazakhstan Global Investment Roundtable (KGIR-2025), held in Astana in October. The event attracted over 1,000 participants from 55 countries, resulting in the signing of 49 agreements worth $7.5 billion. A key session focused on critical minerals and the energy transition, signaling the country’s long-term growth trajectory. Among the highlights was a meeting between the government and Mohammad Vahid Sheikhzadeh Najjar, CEO of FakoorSanat Tehran Engineering Co., to explore cooperation in mining and metallurgy, including new technologies for processing mineral raw materials. Sheikhzadeh Najjar noted that the global market for critical minerals, currently valued at $328 billion, is expected to double by 2032. He emphasized that Kazakhstan is well-positioned to lead this growth. Environmental initiatives, such as a project to process 55 billion tons of mining waste, offer additional economic potential. Meanwhile, Chinese investor Zhang Jintao, founder of Chengdu Sepmem Energy, proposed a long-term plan to develop an LNG cluster in Kazakhstan. The project envisions a nationwide network of LNG plants and supporting infrastructure to reduce emissions...

Electric Vehicles

Wheels of Influence: China’s Electric Vehicle Push in Central Asia

As domestic competition intensifies and protectionist barriers rise in Western markets, Chinese electric vehicle (EV) manufacturers are increasingly looking outward. One region emerging as a key destination is Central Asia, where China’s green tech ambitions align with local efforts to modernize and decarbonize transport systems. From affordable passenger cars aimed at private drivers to electric buses transforming public transit, Chinese EVs are quietly gaining traction across Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan. Companies like Yutong are supplying e-buses for urban mobility, while fleets of electric taxis are beginning to appear in Dushanbe’s streets. This growing presence is more than just commercial - it signals a deeper shift in China’s regional engagement strategy, using clean technology as a vehicle for influence in a strategically contested space. There is an upward trend in the import of electric vehicles from China to Central Asia, particularly in Kazakhstan and Uzbekistan. In 2024, Uzbekistan imported over 24,000 EVs, with Chinese manufacturers accounting for a staggering 99.5% of all imports. This marked an increase of more than 8,000 units compared to 2023 - nearly a 1.5-fold growth in just one year. A similar surge is visible in Kazakhstan. In 2023, the country imported around 6,875 Chinese EVs, but by 2024, although official figures are yet to be released, industry reports indicate a 36-fold increase in the sales of Chinese EVs year-on-year. Drivers of Import: Policy and Perception The surge in EV imports into Central Asia is driven by a convergence of motivations from both China and the region’s domestic policies. On the supply side, the rapid influx of Chinese EVs reflects a blend of strategic export redirection by Chinese automakers and receptive policy environments in the region. Faced with mounting trade restrictions and increasing regulatory pressure in Western markets, Chinese EV producers are pivoting toward emerging economies to safeguard growth. Central Asia has become a promising destination due to its untapped consumer base. On the demand side, Central Asian governments are enacting supportive policies to accelerate the green transition, making EV imports more accessible. For example, Uzbekistan has removed both excise taxes and customs duties on imported electric vehicles, while Kazakhstan and Kyrgyzstan benefit from a Eurasian Economic Union ruling that extends duty-free EV imports until the end of 2025, creating a favorable environment for consumers and fleet operators. In addition to these policy frameworks, a growing positive perception of Chinese EVs has emerged across the region. Chinese manufacturers are seen as offering a combination of affordability and quality, a crucial advantage in price-sensitive markets like Central Asia. For consumers and taxi fleet operators, the appeal goes beyond the sticker price - electric vehicles are significantly cheaper to operate. Unlike gasoline-powered cars that require frequent oil changes and filter maintenance, EVs offer lower long-term operating costs, making them a practical and economically attractive choice. Beyond Exports: Assembling a Local Presence However, China’s electric vehicle expansion in Central Asia goes beyond exports - it increasingly involves local production through joint ventures and assembly plants. In Uzbekistan, the state-owned...

Sports

Real Madrid to Play Kairat in Almaty in UEFA Champions League

Almaty’s Kairat will face European giants, including 15-time champions Real Madrid, in the UEFA Champions League group stage, marking a historic milestone for the Kazakh club. Kairat has never before reached this phase of the competition. Earlier this summer, the club became only the second team from Kazakhstan, after Astana, to qualify for the group stage by overcoming four rounds of qualifiers. Prior to the August 28 draw, head coach Rafael Urazbakhtin expressed a wish to be grouped with Real Madrid, Barcelona, or Liverpool. The draw delivered on one of those wishes: Kairat will now face Real Madrid, the most decorated club in European football history. Also in their group are Inter Milan, three-time Champions League winners, and Arsenal, a top English club with 13 domestic league titles but still seeking their first Champions League crown. Kairat's group stage schedule includes away matches against Sporting Lisbon and Copenhagen, while they will host Belgium’s Club Brugge, Greece’s Olympiacos, and Cyprus’s Pafos in Almaty. The group stage will be played between late September 2025 and the end of January 2026. “We are delighted to be playing Real Madrid. It's not often that such a club comes to Kazakhstan,” said Urazbakhtin. He acknowledged the disparity in skill levels but emphasized the importance of home support and maximizing their advantage in Almaty. A total of 36 clubs are competing in this season’s group stage. Each team plays eight matches, four home and four away, against different opponents. The top eight teams overall will advance directly to the playoffs, while clubs ranked 9th to 24th will enter a playoff round in February 2026 to fight for the remaining spots in the round of 16. As previously reported by The Times of Central Asia, Kairat earned their Champions League berth after a dramatic penalty shootout win over Celtic, with reserve goalkeeper Temirlan Anarbekov playing a decisive role in the victory.