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Clean Energy

Uzbekistan Moves Forward with $6 Billion Biofuel Project in Khorezm

Uzbekistan has announced a major step toward developing large-scale clean energy infrastructure with the signing of a binding implementation agreement for a $6.08 billion biofuel project in the Khorezm region. The Project Implementation Agreement (PIA) was signed between Allied Biofuels FE LLC and the regional government of Khorezm, formalizing plans to build what the developers describe as Central Asia’s first integrated biofuel refinery. The agreement was concluded on April 2 in Perth, Australia, by Khorezm regional governor Jurabek Rakhimov and Alfred Benedict, chairman and general director of Allied Biofuels. According to Allied Biofuels, the project has been granted special economic zone status under a presidential decree, providing tax exemptions and customs incentives aimed at ensuring long-term financial stability and investor confidence. Once completed, the facility is expected to produce sustainable aviation fuel (SAF), electro-synthetic SAF (e-SAF), and green diesel at an industrial scale. Annual output is projected to reach approximately 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel. The refinery will be supported by a large renewable energy system, including battery storage and hydrogen production capacity. The project also incorporates a closed-loop model that converts biogenic carbon dioxide into fuel while using agricultural feedstock as a primary input. Officials say the initiative is designed not only to produce fuel but also to strengthen industrial capacity and introduce advanced technologies. The construction phase alone is expected to generate around 2,000 direct and indirect jobs. Speaking at the signing, Rakhimov said the project would help build a “high value-added industrial chain” in the region and expand export potential. He added that cooperation with Allied Biofuels would support the transfer of advanced green technologies and position Khorezm as “an emerging international hub for green industry.” Benedict described the agreement as “a defining moment” for both the company and the broader clean energy sector. “This project sends an unambiguous message to the global investment community, Uzbekistan is not merely open for business; it is ready to lead,” he said. The project is being developed in partnership with international technology providers, including hydrogen systems supplied by Plug Power. Advisory support for the transaction was provided by Affinity Capital Group.

Air Routes

Turkmenistan’s Air Connectivity Shows Little Change Despite Expansion Plans

Turkmenistan’s airport schedules remain largely unchanged, with no new destinations added and previously announced flights yet to begin operating. Plans to expand international air links from Turkmenistan have been discussed for years, but little has changed in practice. At the end of last year, Russia’s S7 Airlines announced the launch of the Ashgabat-Novosibirsk route starting March 31. Tickets went on sale at the time, with flights planned once a week. However, as of early April, the flights are absent both from the airline’s schedule and from airport data. Only connecting options remain in booking systems. No official explanation has been provided, despite considerable interest in the route. Flights from Turkmenistan to Russia remain in high demand, significantly exceeding supply. Tickets sell out almost immediately despite high prices, which passengers often associate with monopoly conditions and possible corruption schemes. At present, the choice is limited to two routes: S7 Airlines operates Ashgabat-Moscow flights, while national carrier Turkmenistan Airlines serves only the Ashgabat-Kazan route. The limited number of direct routes forces passengers to seek alternatives. One of the most common is transit through Uzbekistan. The neighboring country can be reached by land, and from there dozens of flights to Russian cities are available. At the same time, there is separate demand for travel to Uzbekistan itself, including for business, education, and tourism. Nevertheless, Turkmenistan has no direct air links with any neighboring country. The restoration of flights with Uzbekistan was discussed in 2025 by presidents Serdar Berdimuhamedov and Shavkat Mirziyoyev, but no specific timelines or routes have been announced since. Some travel takes place via Azerbaijan. In the first two months of this year, more than 4,000 citizens of Turkmenistan entered the country. A significant share of these trips is related not to tourism but to obtaining European visas, as doing so from within Turkmenistan is more difficult. Meanwhile, discussions on transport cooperation between Ashgabat and Baku have focused mainly on cargo transportation. The only notable change has been an increase in the number of flights between Ashgabat and Istanbul, driven by the foreign carrier Turkish Airlines.

Automotive Industry

Kyrgyzstan Seeks to Increase Automobile Imports from China

On April 8, the National Investment Agency of Kyrgyzstan and A-CAR (Chuan Yi LLC) signed a memorandum on investment cooperation in the automotive industry, including the supply and sale of new Chinese cars in Kyrgyzstan and the development of service infrastructure. The Chinese company plans to establish a dealer network and open an official representative office for Central Asia. A-CAR supplies vehicles from leading Chinese and international brands and provides a full range of services, including technical maintenance, vehicle registration, and insurance. A significant portion of vehicles imported from China to Kyrgyzstan are re-exported to Russia rather than remaining in the local market. The duty-free regime for electric vehicles in Kyrgyzstan has significantly boosted imports of Chinese electric cars. As a member of the Eurasian Economic Union (EAEU), Kyrgyzstan benefits from an annual quota allowing the duty-free import of up to 15,000 electric vehicles. Sergey Tselikov, director of Russian automotive analytics agency Autostat, wrote on his Telegram channel that Kyrgyzstan remains the second-largest import channel for new passenger cars into Russia after China. He said 84% of the new passenger cars imported through Kyrgyzstan were manufactured in China, including Chinese, European, and Japanese brands. According to Autostat, Kyrgyzstan is the largest supplier of new passenger cars to Russia among EAEU member countries. In 2025, 53,600 new passenger cars were imported to Russia from Kyrgyzstan, followed by 17,100 cars from Belarus, 11,000 from Kazakhstan, and 344 from Armenia. Kyrgyzstan is also seeking to collaborate with Chinese companies to develop electric vehicle (EV) charging infrastructure. In late March, Energy Minister Taalaibek Ibrayev visited China, where he held a series of meetings with energy and technology companies involved in EV infrastructure development. Negotiations focused on cooperation in energy infrastructure, including the development of EV charging stations and energy storage systems in Kyrgyzstan. These initiatives align with government efforts to promote environmentally friendly transport and reduce air pollution in Bishkek and other major cities. The number of EVs in Kyrgyzstan has been rising steadily, with more than 200 electric vehicles imported into the country daily under a value-added tax (VAT) exemption scheme, according to official figures. Despite this growth, EVs still account for a small share of the country’s total vehicle fleet, about 0.8%, or approximately 15,200 vehicles, according to the Ministry of Natural Resources, Ecology, and Technical Supervision.

TCA Interviews

Kazakhstan’s Logistics: Mukhtar Tolegen on Infrastructure and Reform

Kazakhstan has invested tens of billions of dollars in transport infrastructure in recent years and has positioned itself as a key transit link between Europe and Asia. Yet the country still ranks in the middle of the World Bank’s Logistics Performance Index (LPI). Why have these large investments not produced a sharper improvement, and what reforms are needed to change that? The Times of Central Asia spoke with Mukhtar Tolegen, executive director for transport logistics at the Union of Transport Workers of Kazakhstan, “KAZLOGISTICS.” TCA: What is Kazakhstan's current position in the LPI, and how has it changed? Mukhtar: In the World Bank's 2023 LPI ranking, Kazakhstan ranks 79th out of 139 countries, with an overall score of 2.7 on a five-point scale. This represents a decline from the previous ranking, when the country ranked 71st. It's important to note that the index's methodology was updated in 2023. In addition to expert assessments, the calculation now includes real-world cargo tracking data, including GPS-based data. This made the ranking more objective and simultaneously increased competition between countries. Despite its decline, Kazakhstan is demonstrating steady progress in a number of areas. This is primarily due to the development of transport infrastructure, the construction of new highways, the modernization of checkpoints, and the creation of transport and logistics centers. Strengthening the country's transit potential within international transport corridors, including the Middle Corridor, the North-South Corridor, and the China-Kazakhstan-Europe route, is also playing a significant role. At the same time, digitalization of logistics is rapidly advancing, including electronic customs solutions, cargo tracking systems, and other technological tools. An additional driver is the growing interest of international investors, including in the context of the Belt and Road Initiative. TCA: How does a country's position in the ranking affect its economy and investment attractiveness? Mukhtar: The LPI index is not simply a reflection of the state of the logistics system, but an important indicator of a country's economic competitiveness. The higher a country's ranking, the lower its logistics costs for exports and imports, the faster cargo flows across borders, and the higher the level of trust among international partners and investors. Low scores, on the other hand, indicate bottlenecks, for example, in customs procedures or infrastructure. Under such conditions, large international companies may choose alternative routes, which reduces the country's transit potential. Thus, the LPI serves as a tool that directly influences the development of international trade, investment attractiveness, and the country's strategic position in the global market. TCA: In which index components is Kazakhstan showing progress, and where are challenges remaining? Mukhtar: The LPI index is based on six key components, and the dynamics of these components in Kazakhstan remain uneven. Quality of Infrastructure Steady progress is being observed here, driven by large-scale investments in the transport system. The modernization of the Dostyk-Moiynty railway section has significantly increased the capacity of the Kazakhstan-China route. Projects are underway to build new lines, including a bypass of Almaty, as well as the Moiynty-Kyzylzhar, Darbaza-Maktaaral, and Ayagoz-Bakhty routes....

Gold

Uzbekistan’s International Reserves Decline After Seven Months of Growth

Uzbekistan’s gold and foreign currency reserves declined in March after seven consecutive months of growth, according to data released by the Central Bank. As of April 1, the country’s total international reserves stood at more than $68.99 billion, marking a monthly decrease of over $8.09 billion, or around 10%. The Central Bank attributed the drop primarily to a fall in global gold prices during March, when the price per ounce declined from $5,174.1 to $4,553.95. Gold remains the largest component of Uzbekistan’s reserves. Its total value fell by $6.82 billion to $60.85 billion, ending an eight-month growth streak. At the same time, the physical volume of gold held by the Central Bank continued to increase, rising by 0.3 million troy ounces to reach 13.4 million troy ounces, or approximately 416.8 tons. Foreign currency reserves also declined over the same period. In March, they dropped by $1.26 billion, or 14.3%, to $7.57 billion. Of this amount, $1.3 billion is held in foreign central banks and the International Monetary Fund, while $4.71 billion is deposited in foreign commercial banks. In addition, the value of foreign securities purchased by the Central Bank reached $1.545 billion, accounting for 2.24% of total reserves. The latest figures follow a period of strong growth in Uzbekistan’s reserves. As previously reported by The Times of Central Asia, the country’s international reserves rose sharply in 2025, increasing by $25.1 billion to reach a record $66.3 billion as of January 1, 2026. This growth, equivalent to a 61% increase over the year, was largely driven by high global gold prices, alongside gains in foreign currency holdings.

Oil and Gas

Kazakhstan Gains Weight in China’s Energy System

The newly extended U.S. waiver for Russian oil transit through Kazakhstan and the reported giant onshore hydrocarbon discovery in western Kazakhstan point in different directions, yet they belong in the same analytical frame. One concerns an existing flow that already reaches China through working infrastructure, while the other concerns a possible future source that has not yet reached the stage of commercially proven reserves. Together, they mark a change in Kazakhstan’s position. The country is increasingly important to China both as a corridor and as a possible larger upstream partner. The U.S. waiver now runs until March 19, 2027. Kazakhstan is not a giant direct oil supplier to China in the way that Russia or Saudi Arabia is; China’s import structure is broader. But Kazakh-origin oil shipments, Russian transit oil, and adjacent energy links now constitute a single, more complex relationship. According to official Chinese sources, oil imported from Kazakhstan enters mainly through the China-Kazakhstan crude pipeline. More Than Kazakhstan’s Own Barrels Kazakhstan-China Pipeline LLP reported that in 2024, the Atasu-Alashankou route carried 1.2 million tons of oil and 9.989 million tons of transit oil, against a design capacity of 20 million tons a year. Official Chinese figures sharpen the point. By the end of 2024, total cumulative throughput on the pipeline had reached 280 million tons, including 19.139 million tons in 2024, while cumulative crude imported from Kazakhstan was lower. Kazakhstan’s significance to China is therefore larger than Kazakhstan’s own volumes would suggest, because the route carries more than Kazakhstan’s own oil. A glance at Europe keeps that proportion straight. Eurostat reports that Kazakhstan supplied 12.7% of the European Union’s petroleum oil imports in 2025. The European External Action Service said that Kazakhstan accounted for 10.9% of EU oil imports in the first quarter of 2024. This made it the bloc’s third-largest supplier in that period, and a more important direct oil supplier to Europe than to China. The significance of Kazakhstan’s geographic proximity to China becomes clearer when one looks beyond crude oil. Kazakhstan is not only a direct oil supplier, but also a transit corridor for multiple China-bound energy flows. The Kazakhstan-China oil pipeline is one of China’s major import routes. At the same time, while Kazakhstan’s own gas exports to China remain limited due to rising domestic demand, gas from Turkmenistan and Russia both pass through its territory. Oil and gas do not form a single operational system, but together they show that China’s energy connection with Kazakhstan extends beyond one commodity and beyond Kazakhstan’s own barrels. The Source Side May Be Growing In this context, the reported discovery on the Zhylyoi carbonate platform makes a difference because it widens the source side of the relationship without changing present flows. According to public statements by KazMunayGas officials, the Karaton, Kazhygali, and Zhylyoi formation has resource potential of 4.7 billion metric tons of hydrocarbons, and the broader Zhylyoi carbonate reservoir may hold as much as 20 billion metric tons of oil equivalent. The field is onshore in...