Features - The Times Of Central Asia

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Foreign Investment

Citibank Kazakhstan Chairperson Sees Opportunities for U.S.-Central Asia Collaboration

Foreign investors are looking outside Kazakhstan’s oil and gas sector. But turning that interest into investment will require predictable regulations and stronger cross-border connections, according to Saule Zhakayeva, chairperson of Citibank Kazakhstan’s management board and president of the American Chamber of Commerce in Kazakhstan (AmCham). Citi has operated in Kazakhstan since 1994, when it opened a representative office in Almaty. In an interview with The Times of Central Asia, Zhakayeva discussed the country’s investment climate and its role as a regional business hub. She also addressed the future of economic relations between the United States and Kazakhstan. TCA: How is foreign investor interest in Central Asia evolving, and which of Kazakhstan’s strengths are already translating into investment? Where do you see the strongest commercial opportunities over the next three to five years, and what would help turn untapped potential into committed capital? Zhakayeva: Investors today are looking for markets that combine economic stability, access to natural resources, strategic geography, and long-term growth potential. Kazakhstan offers each of these attributes. The country has established itself as the largest economy in Central Asia, maintains a relatively strong institutional framework, and continues to pursue reforms aimed at improving the investment climate. Most notably, investor interest is becoming increasingly diversified. Historically, foreign investment was concentrated primarily in oil and gas. Today, we see growing interest in transportation and logistics, renewable energy, critical minerals, digital infrastructure, financial services, manufacturing, and data-related investments. This growing interest is also reflected in the increasing level of engagement between international investors and Kazakhstan. As President of the American Chamber of Commerce in Kazakhstan, I have seen firsthand the strong momentum in U.S.-Kazakhstan business relations. Throughout 2026, Kazakhstan has hosted a growing number of high-level business engagements involving senior representatives of American companies and institutions, including the U.S. Chamber of Commerce Business Mission to Kazakhstan and other executive-level dialogues focused on investment, trade, digital transformation, energy, and infrastructure. AmCham Kazakhstan also led its first business delegation to Washington, D.C., bringing member companies together to strengthen bilateral economic ties, promote Kazakhstan's investment opportunities, and advocate for deeper economic cooperation. These activities underscore the growing recognition of Kazakhstan and Central Asia as strategically important destinations for long-term investment and commercial cooperation. More importantly, they are beginning to translate into tangible outcomes. For example, in 2026, the U.S. International Development Finance Corporation announced plans to explore up to $700 million in financing opportunities to support the development of Kazakhstan's critical minerals sector. Kazakhstan's location at the crossroads of Europe and Asia has become increasingly important as global companies diversify supply chains and seek alternative trade routes. The development of the Trans-Caspian International Transport Route is further strengthening Kazakhstan's role in regional and global commerce, creating opportunities far beyond traditional sectors. Similar dynamics are being observed across the region, where alternative trade routes, logistics investments, and infrastructure development are becoming increasingly important to global investors. We are also seeing growing international interest in strategic sectors linked to global energy security and the energy transition....

CICA

CICA’s Next Chapter in Asian Cooperation

At the October 15 summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA) in Baku, Kazakhstan proposed a mechanism for preventive diplomacy to address disputes before they escalate. President Kassym-Jomart Tokayev said the mechanism would give each member state a role in decision-making and help translate political commitments into coordinated action. If adopted, the proposal could increase Astana’s influence among Asia’s larger powers by making its founding initiative more enduring. Influence Through an Asian Agenda Kazakhstan already coordinates CICA’s military-political dimension, working with Türkiye on military exchanges, training-center visits, and seminars that include mediation. Kazakhstan could draw on these exchanges when seeking members’ agreement on a mandate for preventive diplomacy. They provide experience of organizing cooperation in a politically sensitive field, although a standing role in addressing emerging disputes would require a separate political agreement defining what members authorize the mechanism to do. The Think Tank Forum offers another example of Kazakhstan’s influence over CICA’s institutional development. China initiated the Forum in 2014; its transformation into a permanent CICA advisory body followed in October 2021, when member states acted on Tokayev’s initiative. Azerbaijan hosted the first meeting outside China in September 2025, at which the handover to the Indian Council of World Affairs was announced; the latter now chairs the Forum for 2026–2027. Kazakhstan thus helped turn a Chinese initiative into a permanent CICA advisory body that Azerbaijani and Indian institutions subsequently helped sustain. China also contributes funding and seconded personnel to the Secretariat; Kazakhstan can build influence by securing agreement on standing arrangements through which other members pursue their priorities. At the Baku summit, Tokayev also proposed establishing a CICA Water Partnership to promote joint research, technology exchange, and water-saving measures. He suggested that Central Asian countries and Azerbaijan could jointly advance a proposal for an International Water Organization under the United Nations. These proposals could give Kazakhstan a role in shaping cooperation on water security within CICA and, through a joint regional initiative, at the UN. Kazakhstan's Foundational Role in CICA's Development Kazakhstan conceived CICA in 1992 and has led its institutional development, including the effort to transform it into a full-fledged international organization. The initiative has a constituency extending well beyond Central Asia. Fifteen states adopted CICA’s first founding declaration in 1999. With Laos’s accession at Baku, CICA now has 29 members, ranging from China, India, Pakistan, and Russia to Iran, Israel, and South Korea. The 2022 Astana summit launched CICA’s transformation into a full-fledged international organization. The Road Map endorsed by member states in 2023 specified reforms through which to pursue that transformation. The reforms cover the Charter, implementation of confidence-building measures, procedural rules, and the Secretariat’s organization. These changes affect CICA’s capacity to carry agreements forward between high-level meetings. Within CICA, the consensus rule makes collective agreement a condition both of institutional change and of policy coordination. Kazakhstan thus has an interest in the procedures through which future cooperation will be organized. Cambodia’s pre-summit ratification of the convention on the Secretariat’s...

Assistive Technology

Teen in Kazakhstan Develops AI Sign Language Translator

Fifteen-year-old Sanzhar Yerezhepov is developing an artificial intelligence (AI) translator to make online information more accessible to deaf people in Kazakhstan. Called Tusin (“Understand”), the platform converts speech and text into lifelike sign language videos that reproduce facial expressions as well as hand movements. Yerezhepov attends Daryn, a specialized school for gifted children in Kokshetau, northern Kazakhstan. A boarding school for children with hearing and speech impairments is located nearby. Watching its students communicate in sign language made him wonder how easily they could access information online, giving him the idea for Tusin. Yerezhepov is from Shiyeli, a small village in Kazakhstan’s Burabay district. Neither of his parents works in science or IT. He is now working with the Kazakhstan Society of the Deaf to test an early version of Tusin and says five organizations have expressed willingness to work with him. The project reached the semifinals of an IT competition at Astana Hub, Kazakhstan’s international technology park for startups. In an interview with The Times of Central Asia, Yerezhepov explains why translating into sign language is more complicated than adding subtitles. He discusses the medical startup he put on hold and what he hopes to change in Kazakhstan’s education system. TCA: Tusin translates online content into sign language, but many videos already have subtitles. Why are those sometimes not enough for deaf viewers? Yerezhepov: For some deaf people, especially those whose primary language is sign language, understanding written text can be difficult. First, subtitles are not always available in a language they are comfortable with. They are often automatically generated and do not convey information accurately. Second, sign language has its own grammar and structure. So even someone living in Kazakhstan may have difficulty understanding subtitles in Kazakh or Russian. Many deaf people can read subtitles fluently, but others need sign language translation. TCA: Isn’t sign language the same around the world? Yerezhepov: No. Different countries use different sign languages. There is no single universal sign language that everyone on Earth understands. TCA: So which sign language is used in Kazakhstan? Yerezhepov: Kazakhstan, like some other former Soviet countries, uses Russian Sign Language. We do not have a separate Kazakh Sign Language, although some signs have been adapted. TCA: How do you teach artificial intelligence to understand and reproduce signs? Who checks its work? Yerezhepov: We work with representatives of the Akmola branch of the Kazakhstan Society of the Deaf and with sign language interpreters. Together, we examine each sign, check how accurately it is reproduced, and analyze the results. We have already demonstrated our technology to deaf and hard-of-hearing people, and they understand what the platform communicates. TCA: A sign can change meaning depending on the situation. How does Tusin handle that? Yerezhepov: Quite well, although we are still working on it. The same sign can have different meanings depending on the context. That is exactly the problem we are addressing with artificial intelligence, which can take context into account and determine what is being communicated. Our platform...

AI in Journalism

Astana Media Week: AI’s Opportunities and Risks for Journalism

The tenth edition of Astana Media Week is taking place in Kazakhstan's capital from October 14 to 16, with media professionals from Central Asia and other regions discussing how artificial intelligence (AI) is changing journalism. Dzhanibek Suleyev, a veteran Kazakh web publisher, and Alexander Smolin, former editor of Orda.kz, once one of the country's most popular online news outlets, spoke to The Times of Central Asia about how to take advantage of this technological leap while minimizing its risks. A New Revolution in Information Production AI can generate large volumes of content in seconds, but Suleyev argues that the technology cannot replicate a journalist's judgment: finding an original angle, choosing the right person to interview, or persuading them to speak candidly. “I can't say definitively whether the invention of AI is a blessing or a threat. That's a question for philosophers,” he said. Suleyev sees parallels with the advent of online journalism. The media, he noted, have repeatedly adapted to new technology. What once seemed radical – reading news on a computer or phone rather than in a newspaper – quickly became routine. In the process, new professions emerged, including search engine optimization editors, audience analytics specialists, multimedia journalists, and social media editors, while demand for printing and newspaper distribution declined. Online publishing also dramatically lowered the cost of launching a news outlet. “Just as the media's move online in the 2000s did, AI is now reducing the cost of producing information. But there is a fundamental difference between these two revolutions,” Suleyev said. “The first changed how information was produced, distributed, and consumed. The second is also affecting the very process of creating journalistic content.” The Right to Fair Compensation That transformation raises an immediate financial problem: search engines can deliver AI-generated answers without users visiting the websites that originally reported the information. Suleyev says this is costing publishers traffic and advertising revenue. Evidence of declining traffic is already mounting. Google search referrals to more than 2,500 news websites worldwide fell by 33% between November 2024 and November 2025, according to a report by the Reuters Institute for the Study of Journalism. Researchers cautioned, however, that it remains unclear how much of this decline can be attributed directly to AI-generated summaries. On October 12, major publishers, including The New York Times and The Economist, joined a coalition seeking greater control over how AI companies use their content and fair compensation for that use. Suleyev believes such issues must be discussed by the media community and addressed through legislation. Relying on AI Alone Is a Losing Strategy Smolin is more optimistic about AI's practical benefits. Tasks that once took a journalist two hours of searching can now, he said, be completed in minutes. Generating illustrations has also become easier, reducing the need for some in-house design work. “There's a saying I really like: to use artificial intelligence, you need to develop your own intelligence,” Smolin said. “I'm fully in favor of developing AI in the industry, but only in combination...

Oil Licenses

Uzbekistan Confirms Cancellation of Saneg Oil Licenses

Uzbekistan has revoked some oil-field licenses held by Sanoat Energetika Guruhi (Saneg), a major Uzbek private oil and gas producer, after the company failed to develop deposits and meet licensing conditions. The move is another setback for the company, formerly known as Jizzakh Petroleum, following the collapse of its $100 million agreement to purchase the Fergana Oil Refinery. When the refinery sale was announced in 2022, Saneg was reported to account for approximately 80% of Uzbekistan's oil production and hold development rights to 103 oil and gas fields. Officials have not said how many licenses have been canceled, which fields are affected, or what impact the decision will have on the company's operations. Speaking at an October 8 press conference, Sohibjon Murodov, director of the State Assets Management Agency, said the affected deposits had not been developed and licensing conditions had not been met. He did not disclose when the licenses were canceled. The Ministry of Mining Industry and Geology is now preparing measures for the affected fields. Asked why Saneg had originally received development rights without competitive auctions, Murodov explained that under the previous system, the first applicant could obtain a license after paying the prescribed fees. Auctions for hydrocarbon licenses were introduced in 2023–2024. He stressed that the deposits themselves had remained state property. A Privatization Reversed The government transferred management of the Fergana refinery to Saneg, then operating as Jizzakh Petroleum, in 2020. In May 2022, it announced the $100 million sale, accompanied by a separate commitment to invest $380 million in modernization. The transaction was intended to address longstanding problems. Reporting at the time described shortages of raw materials and said the refinery had not undergone major modernization or reconstruction for two decades. Saneg's investment commitments covered improvements to fuel production and processing facilities. Despite the announced sale, the state still held 58.5% of the refinery in May 2026, while Saneg owned 41.5%. By June, the State Assets Management Agency was its sole owner, according to registry information reported by Interfax. Explaining the termination in October, Murodov said financial difficulties in the investor's other projects had prevented it from making purchase payments on time. The contract allowed termination if payments were three months overdue, he said. The agency consulted international legal advisers and notified Saneg before ending the agreement. Saneg had previously maintained that it had fulfilled its payment and investment obligations, according to Interfax's June report. However, the amount of the overdue payments remains unclear, as does how earlier payments and investments will be treated and how much modernization work was completed. State-Directed Debt Recovery The state had already intervened in January to address financial problems at Saneg, oilfield services company Eriell, and engineering contractor Enter Engineering. Uzbek reporting has linked all three businesses to businessman Bakhtiyor Fozilov. A January 22 government resolution recorded combined unpaid wages of approximately $131 million owed to 38,700 employees across the three companies, according to reporting by Spot in March. The government ordered the sale of non-core assets to...

Trans-Caspian Cable

Kazakhstan and Azerbaijan Launch Trans-Caspian Fiber-Optic Cable

Kazakhstan and Azerbaijan have launched the first fiber-optic communications link across the Caspian seabed. The approximately 380-kilometer cable connects Aktau and Sumgait, with Presidents Kassym-Jomart Tokayev and Ilham Aliyev inaugurating the line in Baku on October 15. Russian operators have long dominated Kazakhstan’s international connectivity. A 2025 Internet Society report identified them as the country's principal suppliers of international bandwidth. The new route will give operators the option of directing data through Azerbaijan, Georgia, and Turkey toward Europe, providing redundancy independent of existing routes through Russia. This is particularly important during outages or congestion on existing connections. Part of the broader Digital Silk Way initiative, the cable could also benefit Uzbekistan and Kyrgyzstan, both of which rely on Kazakhstan for international internet connectivity. The cable, supplied by a Chinese manufacturer, uses optical fiber made in Japan and terminal equipment from Western suppliers, according to the Caspian Policy Center. It has a design capacity of at least 400 terabits per second and was developed through CaspiLink, a joint venture between Kazakhstan’s Kazakhtelecom and Azerbaijan’s AzerTelecom. The project had been under discussion since 2019. In 2024, planned investment was estimated at more than 23 billion tenge (approximately $50 million). Marine surveys began in August 2025. Underwater cable laying began in July 2026 and was completed on August 5, with the line inaugurated on October 15. Kazakhstan also hopes to use the new connection to attract technology companies. Bagdat Mussin, chairman of Kazakhtelecom’s management board, said the cable could support Kazakhstan’s Data Center Valley, a complex under development in Ekibastuz for cloud computing and artificial intelligence. Mussin also told reporters that adjustments to the line would continue through the end of 2026, with the benefits expected to be felt no earlier than early 2027, according to Tengrinews. As The Times of Central Asia previously reported, Kazakhstan must also secure reliable electricity supplies and sufficient demand for its planned data center capacity. Kazakhstan's Ministry of Artificial Intelligence and Digital Development estimates that the new route could help more than double the country's international data transit to 21.6 Tbps in the coming years. How much traffic will initially use the cable, including traffic redirected from existing routes through Russia, remains unclear.