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Central Asia-EU Summit

Mirziyoyev Champions a Flourishing Central Asia by Enhancing Collaboration With the European Union

The global landscape is transforming, driven by geopolitical instability, economic uncertainties, and climate-related challenges. These dynamics are fostering innovative forms of international collaboration. A notable example of this shift is the remarkable fourfold increase in trade between Central Asia and the European Union over the past seven years, culminating in an impressive €54 billion. This surge highlights a growing interest among European businesses in the diverse markets of Central Asia, strategically situated at the intersection of crucial global trade routes. Against this backdrop, the Central Asia-EU summit was held over two days in Samarkand, the "Eternal City", on April 3-4, 2025. During his inaugural address on April 3, 2025, Uzbekistan's President Shavkat Mirziyoyev articulated the summit's significance, stating his view that this gathering represented a transformative moment that could redefine regional partnerships. Mirziyoyev reflected on the deep historical connections and shared interests driving the momentum toward closer ties with the EU. The choice of Samarkand — renowned for its rich historical legacy as a center of trade, science, and diplomacy — as the venue for this significant meeting was particularly poignant, as it symbolizes the intersection of cultures and ideas. Mirziyoyev evoked the historical interactions between Amir Temur and European monarchs, underscoring Samarkand as a melting pot of diversity and intellectual exchange. He introduced the notion of the “Samarkand spirit,” which he described as a symbol of unity and interconnectedness that could serve as the foundation for a new chapter in international relations. The President emphasized the sweeping transformations occurring in Central Asia, reinforcing Uzbekistan’s dedication to nurturing good-neighborly relations built on mutual benefit. Miriyoyev candidly acknowledged the region's history of conflicts and disputes but expressed hope for a shift toward constructive dialogue and trust, pointing to the recent resolution of border disputes between Kyrgyzstan and Tajikistan as a concrete example of this positive trajectory. Furthermore, he elaborated on ongoing initiatives to establish border trade zones, joint investment funds, and transportation corridors that could enhance connectivity and economic collaboration. Mirziyoyev outlined several key priorities: fortifying regional security, advancing economic integration, and promoting environmental sustainability. He conveyed a sense of optimism, proclaiming, "We are facing a historic chance to make our region not only sustainable but also prosperous." The President discussed Uzbekistan's comprehensive economic reforms to create a conducive business environment and liberalize the foreign exchange market. He expressed optimism that the Enhanced Partnership and Cooperation Agreement (EPCA) with the EU would significantly enhance trade and investment relations and proposed aligning the EU's Global Gateway strategy with regional transport initiatives to support this. He also advocated for developing an Action Plan for the Trans-Caspian Transport Corridor. Additionally, he believes there is potential to establish Tashkent as a financial center similar to Hong Kong, as the initial conditions meet the necessary criteria. On energy matters, Mirziyoyev positioned Central Asia as a dependable partner for Europe, highlighting the region's potential to contribute to energy stability and decarbonization efforts. He cited the ambitious Green Strategic Corridor project and the prospect of a Central Asia-EU...

Health

Kazakh Villages Voluntarily Embrace Alcohol-Free Lifestyle

An increasing number of villages across Kazakhstan are voluntarily banning the sale of alcohol, reflecting a grassroots movement aimed at improving public health, safety, and the wellbeing of future generations. Prosecutor General Berik Asylov highlighted the trend on his official X (formerly Twitter) account, describing it as a conscious decision made by ordinary citizens, not a top-down directive. “When citizens take responsibility, reality itself changes,” he wrote, emphasizing that the initiative stems from the community level. Bottom-Up Initiative, Top-Level Support One notable example comes from a village in the Mangistau region, where residents released a video declaring their collective decision to stop selling alcohol. Similar efforts have emerged in Akmola, Zhambyl, Karaganda, Atyrau, and other regions. While still relatively isolated, these cases are increasing, Asylov noted, with the number of “dry” villages steadily growing. The movement is often driven by local community councils and elders, supported by the prosecutor’s office, police, and akimats (local government offices), which help implement preventive measures and maintain order. Entrepreneurs have also played a key role. Responding to requests from fellow villagers, many voluntarily removed alcohol from their shelves. Contrary to concerns, these businesses did not suffer losses, residents began purchasing more nutritious food and products for children instead. Visible Impact on Communities According to Asylov, the results are already apparent: crime rates are dropping, domestic violence is decreasing, and more young people are choosing sports and healthier lifestyles over alcohol. “This is a real-life demonstration of the principle of ‘Law and Order’, not enforced by fear, but built on trust; not through punishment, but through personal choice,” he said. Official Data Reflects the Trend Law enforcement statistics support this development. In the first quarter of 2025, the number of crimes committed under the influence of alcohol declined nationwide, a direct outcome of such community-led initiatives. In Aktobe region, 33 villages across nine of the region’s twelve districts have officially stopped selling alcohol, according to local media. In Turkestan region, 61 more villages have taken similar steps, according to Murat Kabdenov, head of the regional police department. Meanwhile, the village of Sunkar in Almaty region stands out for its complete elimination of alcohol from daily life, not just retail outlets. A Vision for the Future Prosecutor General Asylov reaffirmed that the General Prosecutor’s Office supports any community-driven initiative that promotes social harmony, respect for the law, and a shared vision for a better future. “People value trust, stability, and peace. They inspire each other through personal example,” he concluded.

Economy

Kazakhstan Aims to Nearly Triple Investment in the Economy by 2029

Kazakhstan plans to significantly increase investment in its economy over the next five years, aiming to nearly triple current levels. However, officials from the Ministry of National Economy acknowledge that the primary challenge lies not in securing additional funds but in the shortage of high-quality investment projects. Shortage of Viable Projects At a recent meeting of the Expert Council under the Ministry of National Economy, Deputy Minister Arman Kasenov stated that the ratio of domestic investment to GDP currently stands at a modest 14-15%, a figure he described as objectively low. “To achieve higher rates of economic growth, investments need to increase 2.75 times, from $40 billion in 2024 to $103 billion by 2029,” Kasenov stated. To help reach this target, the government plans to allocate KZT 1 trillion (approximately $2 billion) through the state holding company Baiterek to stimulate business lending. This amount is expected to catalyze additional credit lines totaling KZT 8 trillion (around $15.9 billion). Still, Kasenov stressed that financing alone is not enough. “The real issue is the lack of quality projects,” Kasenov said. “This problem has been flagged by international development finance institutions. When we talk about increasing investment from $40 billion to $103 billion, it’s not just about capital, it's about where and how that capital is deployed.” Targeting High-Return Sectors To ensure impactful investment, the Kazakh government is prioritizing support for highly productive and export-oriented projects. These are concentrated in key sectors such as metallurgy, oil and gas, petrochemicals, and agriculture. Rustam Karagoyshin, the head of Baiterek Holding, outlined the financing model for investment projects, which consists of 60% market funding and 40% state-backed lending. In 2025, Baiterek plans to disburse a total of KZT 8 trillion in project financing, with KZT 3.75 trillion (around $7.4 billion) provided in the national currency. “Our main objective is to unify lending rates at 12.6% for end consumers. Standardizing rates will enable second-tier banks to participate across nearly all sectors where Baiterek operates today,” Karagoyshin said. Foreign Investment Outlook As The Times of Central Asia previously reported, Kazakhstan is looking to attract more foreign direct investment following a notable decline in 2023. Amid growing concerns about resource nationalism, the government is eager to position itself as a stable and attractive destination for international capital.

Tax Policy

Kazakh MPs Propose Differentiated Taxation for Medicines and Healthcare

Kazakh lawmakers are pushing for a differentiated tax policy on medicines and healthcare services to maintain their affordability amid upcoming tax reforms. Askhat Aimagambetov, a deputy of the Mazhilis (Kazakhstan’s lower house of parliament), has proposed exempting certain essential medicines from value-added tax (VAT) and reducing the tax burden on medical institutions. Proposed VAT Adjustments Kazakhstan is currently debating a new Tax Code that would increase the VAT rate from 12% to 16%, while introducing zero and reduced rates for specific industries. Aimagambetov, writing on social media, noted that a group of Mazhilis deputies had repeatedly advocated for differentiated taxation of medicines and medical services even before discussions on the VAT hike began. He stressed that applying the full 16% VAT rate to all medical services and pharmaceuticals would lead to a sharp rise in costs and reduce access to healthcare for the population. Tax Exemptions for Essential Medicines To mitigate this impact, lawmakers propose VAT exemptions for drugs treating socially significant diseases such as: Cancer Rare diseases Palliative care Diabetes Autoimmune diseases “The specific list is still under discussion and will be expanded,” Aimagambetov stated. “This measure will prevent a sharp increase in drug prices for those who need them most, socially vulnerable groups.” For other medicines, a reduced VAT rate of 10% is under consideration. Impact on Medical Services Currently, medical services in Kazakhstan are not subject to VAT. However, under the new Tax Code, the government proposes introducing a 10% VAT rate. Aimagambetov and his colleagues initially suggested reducing this to 5%, but discussions are now focused on exempting certain socially significant medical services from VAT entirely. These include: Oncology treatments Palliative care (hospices) Stroke treatment Potentially obstetrics and other critical medical services For other medical services, a 10% VAT rate may be introduced. Changes to Corporate Tax in Healthcare In addition to VAT adjustments, the government plans to raise the corporate income tax for medical institutions. Currently, this sector benefits from a zero-tax rate, but under the proposed reforms, a 10% corporate tax would be applied. Consultations with Businesses Ongoing As previously reported by The Times of Central Asia, the government plans to finalize the list of industries eligible for the 10% VAT rate following consultations with the business community.

Bilateral Relations

Uzbekistan and Kyrgyzstan Leaders Discuss Regional Cooperation and Tourism Development

On January 25, Kyrgyz President Sadyr Japarov paid a visit to Uzbekistan, where he held an informal meeting with Uzbek President Shavkat Mirziyoyev at the Amirsoy resort complex in the Tashkent region. During their meeting, the two leaders discussed a range of topics, including bilateral relations, regional cooperation, and international politics. The relaxed setting allowed for a candid exchange of ideas about enhancing collaboration between the neighboring countries. President Japarov commended the modern infrastructure of the Amirsoy ski resort, describing it as meeting international standards. Both leaders expressed a shared vision for developing joint tourism projects that capitalize on the unique natural landscapes of Uzbekistan and Kyrgyzstan. This cooperation, they noted, could help create resort and recreation centers in both countries, boosting tourism and local economies. President Japarov shared his impressions of Amirsoy in a Facebook post, accompanied by aerial photographs of the resort. Reflecting on Kyrgyzstan's missed opportunities in tourism development, he wrote: “Mountains occupy 94% of the territory of our country. Each of our seven regions could have such resorts. But we hardly have them. Why? Because since we gained independence, from ordinary people to presidents, we have only been engaged in politics. Every day we held meetings, and every day there were weddings. We did not pay attention to the economy, tourism, and other important areas.” Japarov praised Mirziyoyev's efforts in building Amirsoy from scratch, highlighting its economic and social benefits. “Looking at the Amirsoy ski resort, I was amazed. My colleague Shavkat Mirziyoyev built this resort from scratch. No problem. Blessed. How many people are employed? Millions of tourists come here to relax. The level of service is not inferior to that of Europe. Everything is at a high level,” Japarov wrote. The informal meeting highlights the strengthening relationship between Uzbekistan and Kyrgyzstan, as both countries seek to enhance cooperation in various fields, including tourism, economic development, and regional stability.

Gender Equality

Gender Inequality in Marriage: The Role of the Kelin in Kyrgyzstan

Gender inequality in marriage remains a significant issue in Kyrgyzstan, particularly with regard to the role of the kelin - the daughter-in-law - who is traditionally expected to shoulder numerous household responsibilities. In this patriarchal society, women often face pressure from their husbands' families, limited career opportunities, and an unequal division of domestic labor. According to recent data, 12.9% of women in Kyrgyzstan marry before the age of 18. This figure nearly doubles in rural areas compared to urban ones, reflecting stark regional disparities. Many families continue to uphold traditional expectations for women, especially the kelin, who is considered responsible for caring for her husband, his parents, the children, and the household. The Kelin: Between Tradition and Change Kyrgyz women have varying attitudes toward their role in the family. While some accept these expectations as part of their cultural heritage, others see them as a problem requiring change. Personal Stories Aizhan, 24, Osh (name changed): "After marriage, I was expected to leave my job and devote myself fully to the household. Although my husband supports my career aspirations, there is pressure from both his parents and mine. In the early years of our marriage, I had to prove that I was a good wife - cooking, cleaning, and pleasing my mother-in-law - even though I had the opportunity to build a career. My parents also insisted that I focus on household duties to avoid being ridiculed by others. This frustrates me, but my husband stands by me." Nuria, 25, Naryn (name changed): "In our social circle, it is rare for young couples to strive for equality in marriage. Traditional expectations remain strong, and sometimes compromises are necessary to maintain peace in the family. Early in my marriage, I didn’t feel much pressure, but after the birth of my child, I was often reminded that my primary role was now to be a mother and the keeper of the hearth." Ainura, 23, Bishkek (name changed): "In the capital, it's easier to be independent. More people here support the idea of equal rights. However, even in Bishkek, many girls face the expectation of becoming perfect kelins. This pressure usually comes from parents who cling to traditional values." Societal Expectations Beyond Marriage For many young women, gendered expectations begin long before they marry. From an early age, girls are taught to prioritize marriage and family above personal ambitions. Saule, 22, Bishkek: "I’m 20 and don’t want to get married yet, but my relatives constantly hint that ‘the clock is ticking’ and that I should start looking for a groom. They don’t understand that I have other plans. Sometimes they introduce me to potential suitors, which is awkward and frustrating." In some families, restrictions are imposed on daughters to preserve their "marriage prospects." Kamilla, 23, Bishkek: "I was often told to be modest, avoid friendships with boys, and dress conservatively because ‘I had to get married.’ Many girls like me missed out on a full teenage experience. However, I’ve noticed that the younger generation...