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Druzhba Pipeline

Kazakhstan Asks Russia to Reopen Druzhba Oil Route to Germany After Six-Month Halt

Kazakhstan has formally asked Russia to restore oil shipments to Germany through the Druzhba pipeline, six months after Moscow suspended the route. The request follows a drone attack on Russian infrastructure that briefly halted another Kazakh oil export route earlier this week. Energy Minister Yerlan Akkenzhenov said on November 4 that he had personally delivered the request to Russian officials. Kazakhstan has the technical capacity to resume deliveries, he told reporters, and is awaiting Moscow’s response. “I personally delivered an official request in a face-to-face meeting,” Akkenzhenov said, but gave no timetable for a decision. The suspended route carried Kazakh crude through Russia, Belarus and Poland to the PCK refinery in Schwedt, northeastern Germany. Russia halted transit on May 1, citing technical restrictions, and the deliveries have remained suspended ever since. Kazakhstan shipped 2.1 million metric tons to Schwedt through Druzhba in 2025, and had planned to increase the figure to approximately 3 million tons this year. Before the suspension, it delivered 1.02 million tons between January and April, according to Interfax. A German Market, a Russian Transit Route Kazakh oil became an important replacement for Russian crude after Germany ended direct imports from Russia in 2023. The Schwedt refinery had previously depended on Russian supplies. Kazakh producers could reach it through the same Soviet-era pipeline network, and this arrangement grew quickly. In October 2025, the parties extended supplies through the end of 2026. Schwedt is central to fuel supplies around the German capital. The refinery says it supplies approximately 90% of the gasoline, diesel, jet fuel and heating oil used in Berlin and Brandenburg. Kazakh crude accounted for about 17% of its oil intake before the halt. The refinery has an unusual ownership arrangement. Russia’s Rosneft retains its majority stake through German subsidiaries, but the German government has controlled those interests since 2022. Berlin placed them under a new trusteeship in February 2026. In August, a Schwedt refinery spokesperson said crude imported through Poland’s Gdańsk port had fully replaced the missing Kazakh volumes. By October 28, the refinery was operating at more than 86% capacity, according to regional authorities. Its management said alternative supplies had kept operations stable despite the loss of Kazakh crude. The refinery also takes oil through Germany’s port of Rostock. Russian Deputy Prime Minister Alexander Novak attributed the suspension to “technical capabilities” in April. He said the oil would move through other export routes. Kazakhstan’s Energy Ministry then allocated 260,000 tons of May shipments elsewhere, including 160,000 tons through the Caspian Pipeline Consortium (CPC) and 100,000 tons through Russia’s Baltic port of Ust-Luga. Both alternatives allowed exports to continue, but neither eliminated dependence on Russian transport infrastructure. [caption id="attachment_60096" align="aligncenter" width="1774"] The PCK oil refinery in Schwedt, Germany; image: Rauenstein[/caption] Another Disruption at Samara That vulnerability was apparent again this week, when drone attacks on facilities at Russia’s Samara oil transit hub forced the Atyrau–Samara pipeline to stop pumping on November 2. Kazakhstan resumed shipments the following day after technical checks. Atyrau–Samara connects Kazakhstan’s western...

Wheat Exports

Kazakhstan Wheat Exports to Israel Under Discussion

Kazakhstan’s Food Contract Corporation is prepared to discuss long-term contracts to supply between 200,000 and 500,000 metric tons of food-grade wheat to Israel. Samat Tenbayev, deputy chairman of the company’s management board, outlined the proposal during talks in Jerusalem, Kazakhstan’s Ministry of Agriculture said on November 4. The ministry did not announce any signed contracts or specify whether the proposed volumes would be supplied annually or over a longer period. Israel’s wheat imports exceed 2 million metric tons a year, according to the ministry. The country also buys barley, corn, and oilseeds, and the corporation is open to discussing supplies of other Kazakh agricultural products. Tenbayev cautioned that the long distance involved could make deliveries difficult. Kazakhstan proposed shipping the grain either through Azerbaijan and Georgia or via Baltic Sea ports. The corporation has already sent a trial shipment of grain to Armenia through Russia, Azerbaijan, and Georgia. The Food Contract Corporation buys grain from Kazakh farmers, stores it, and exports it. During the 2024–25 season, it shipped grain to Morocco, Algeria, Egypt, and Vietnam. Tenbayev said the 2026 harvest gives Kazakhstan room to export more grain, including wheat high in protein and gluten. The country harvested 24.3 million metric tons of grain in 2026, one of its largest harvests in 15 years. Kazakhstan exports agricultural products to more than 80 countries, the Agriculture Ministry said. From January through September 2026, it exported 8.4 million metric tons of grain by rail. Of that total, 5.5 million metric tons went to other Central Asian countries, mainly Uzbekistan and Tajikistan. Rail shipments to Afghanistan more than quadrupled compared with the same period in 2025. China buys grain, animal feed, vegetable oils, and oilseeds from Kazakhstan. In the first half of 2026, Kazakhstan’s agricultural exports to China totaled $1.1 billion, nearly double their value in the same period a year earlier. During the talks, Kazakhstan also expressed interest in Israeli technologies that help farmers save water, including water-efficient irrigation systems and the reuse of treated wastewater.

Cotton Harvest

Uzbekistan Cotton Harvest Exceeds 5 Million Tons for First Time Since Independence

Uzbekistan has harvested more than 5 million metric tons of raw cotton in 2026, its highest reported total since independence in 1991. The record comes as the country has sharply reduced the area planted with cotton and expanded mechanized harvesting. In early November, the Ministry of Agriculture announced the milestone, with harvesting still underway in some areas. The harvest is at least 500,000 metric tons above the contractual target of 4.5 million metric tons for farms and cotton-textile companies, providing additional raw material for Uzbekistan’s textile industry. Cotton production has long been central to Uzbekistan’s economy and agricultural landscape. During the Soviet period, nearly 2 million hectares were devoted to the crop, which consumed substantial water resources and depended heavily on manual labor. By 2000, cotton cultivation covered approximately 1.4 million hectares, yielding around 3 million metric tons. In 2026, cotton was grown on approximately 890,000 hectares, according to the Ministry of Agriculture. In a November 4 address to farmers, President Shavkat Mirziyoyev said the area planted with cotton had fallen by 38% in recent years, while average yields had risen from 2.1 to 5.6 metric tons per hectare. He attributed the increase in yields to improved farming methods, new cotton varieties, and investment in irrigation technology. More than 3,000 cotton-picking machines had collected 85% of this year’s crop by November 4, Mirziyoyev said, with harvesting fully mechanized in the Jizzakh and Syrdarya regions. The shift has particular significance in Uzbekistan, where cotton harvesting was once associated with the systematic mobilization of schoolchildren, students, teachers, and public-sector employees. The Cotton Campaign coalition says systemic state-imposed forced labor has ended, although labor rights concerns remain. Mechanical harvesting has further reduced the need for large numbers of seasonal pickers. Cotton cultivation contributed to the depletion of the rivers feeding the Aral Sea, causing one of Central Asia’s most severe environmental disasters. Mirziyoyev said water consumption in cotton production had fallen by half compared with the 1990s, although his address did not explain how that figure was calculated. Despite difficult growing conditions, Karakalpakstan, the autonomous republic bordering the remnants of the Aral Sea, harvested more than 400,000 metric tons of cotton this year, according to the president. He said average yields had increased by 1 to 1.5 metric tons per hectare compared with previous years. The region continues to face the effects of the Aral Sea’s retreat, including soil salinity and water shortages.

Uranium Reserves

Kazakhstan Uranium Reserve Planned by End of 2027

Kazakhstan, the world’s largest uranium producer, plans to create a state strategic uranium reserve by the end of 2027 to secure fuel supplies for its future nuclear power plants. Deputy Prime Minister and National Economy Minister Serik Zhumangarin announced the deadline at a government meeting on November 3. The country’s nuclear development strategy calls for reserving at least 150,000 metric tons of uranium by 2050. Atomic Energy Agency Chairman Almassadam Satkaliyev said on November 2 that the reserve could include deposits left underground, physical stocks of natural uranium, and manufactured nuclear fuel. The government has not announced how much material will be held in each form or how the reserve will be financed. Most of Kazakhstan’s uranium output is exported. In 2026, national uranium company Kazatomprom signed new supply contracts with energy companies in China and India. The company is also exploring six sites covering more than 1,000 square kilometers and plans to begin exploration at the Kyzyltu site. Kazakhstan approved the construction of its first plant under the new nuclear program in an October 2024 referendum. Its longer-term plans envisage at least three plants operating by 2050, reintroducing nuclear generation into an electricity system still heavily dependent on coal. The first plant, Balkhash, is planned near the village of Ulken in the Zhambyl district of the Almaty region. Russia’s Rosatom will lead construction of the two-reactor facility, with a combined generating capacity of 2.4 gigawatts. Construction is scheduled to begin in 2027, with commissioning provisionally expected in 2037–2038. China National Nuclear Corporation has been selected to lead the second project, Moyynkum, in the same district near Lake Balkhash. Kazakhstan plans to sign an intergovernmental agreement on the project by the end of 2027. For a third nuclear power plant, it is considering Kurchatov in eastern Kazakhstan and a location in the west of the country, although no final site has been announced. Kazakhstan’s vast uranium deposits do not eliminate the need for international partners to produce reactor fuel. Natural uranium must undergo further processing, including enrichment to make it suitable for the planned reactors, before being manufactured into fuel assemblies, or bundles of fuel rods. Kazakhstan already produces these assemblies at the Kazakh-Chinese Ulba-FA fuel assembly plant in Oskemen. The facility reached its annual design capacity of 200 metric tons of low-enriched uranium in fuel assemblies in 2024. It supplies Chinese reactors using manufacturing technology from France’s Framatome and uranium enriched in Russia.

Pharmaceutical Manufacturing

Kazakhstan Seeks to Reduce Dependence on Imported Medicines with New Pharmaceutical Plants

Kazakhstan plans to begin producing almost 500 types of medicine domestically by 2034 under eight investment projects worth approximately $862 million, the Health Ministry said on November 3. The projects are expected to create more than 1,200 jobs and reduce the country's dependence on imported medicines. Production will begin in stages, with the first 300 medicines scheduled for 2027–2030 and another 194 to follow by 2034. The projects cover medicines for cancer, cardiovascular and autoimmune diseases, infections, rare conditions, and diabetes. Investment agreements have been signed with eight companies, including Chimpharm, Nobel, Rompharm, Abdi Ibrahim Global Pharm, and Steppe Pharmaceuticals. According to the Ministry of Health, Kazakhstan's pharmaceutical market reached $2.84 billion in 2025. Domestically manufactured pharmaceuticals and medical devices accounted for just 15% of the market by value that year, virtually unchanged from 15.1% in 2024. By contrast, Kazakhstani manufacturers now account for 42% of medicine packages sold, according to the ministry. This suggests that local manufacturers have a stronger presence by volume than by value. At a government meeting on November 3, Prime Minister Olzhas Bektenov called for a shift from basic filling and packaging to full-cycle pharmaceutical manufacturing, including the production of active pharmaceutical ingredients. This will require investment in specialized equipment, technical expertise, and quality-control systems. Kazakhstan currently has 43 companies producing medicines, while another 166 manufacture medical devices. One of the planned facilities will be built by Steppe Pharmaceuticals in the Alatau Special Economic Zone near Almaty. The approximately $67 million project is designed to produce 20 medicines, including treatments for cancer and rare diseases. Operations are scheduled to begin in 2031, with full capacity expected in 2032 and full-cycle production across key product lines planned for 2034. Nonetheless, domestic pharmaceutical output has already been increasing. Between January and August 2026, production reached $346 million, up 30% from the same period in 2025. Over the past two years, investment in the industry has increased 3.3-fold, while exports have risen 1.9-fold. Russia, Kyrgyzstan, Uzbekistan, Mongolia, and Moldova are the main buyers of Kazakhstani pharmaceutical products. Kazakhstan also plans to speed up the registration of imported medicines. A 15-working-day procedure has been introduced for products from countries with established pharmaceutical regulatory systems. So far, 16 medicines and medical devices from the United States, Germany, France, Denmark, the United Kingdom, and South Korea have been registered through this process. Registration has also begun for more than 112 previously unregistered medicines procured by the state-run centralized distributor. These include treatments for patients with serious and rare diseases.

Cost of Living

Uzbekistan Inflation: Consumers’ Estimates Exceed Official Rate

People in Uzbekistan believe prices have risen considerably faster than official inflation figures show, according to a survey by the Central Bank of the Republic of Uzbekistan. Respondents estimated annual price increases at 9.2% in September, compared with the official inflation rate of 6.4%. The survey covered 2,726 residents and measured their perceptions of price changes over the preceding 12 months. The nationwide estimate fell by 0.9 percentage points from 10.1% in August, according to survey data cited by economist Otabek Bakirov. Tashkent recorded the highest regional figure, at 11.9%, while pensioners nationwide put annual price increases at 12.5%, up 3.1 percentage points from their August assessment. Meat and dairy products were the most frequently cited sources of price increases, mentioned by 56% of respondents, followed by gasoline and other fuels (53%) and electricity and natural gas (36%). Compared with August, the share of respondents reporting substantial increases in electricity and natural gas prices rose by 17 percentage points. The shares citing fuel prices and transportation services each rose by 11 points, followed by nine points for restaurants, eight for education, and seven for healthcare. These figures measure changes in the proportion of people reporting higher prices, not the size of the price increases themselves. On November 4, the Central Bank raised its year-end inflation forecast from 6.5% to 7% and kept its benchmark interest rate at 14%, citing strong domestic demand and persistent price pressures. Uzbekistan's economy grew by 8.3% year on year in January–September, supported by industry, construction, and services. The bank now expects growth of around 8% for 2026. According to the bank, demand is exceeding the economy's capacity to supply goods and services, adding to inflationary pressure. Fluctuations in global food and energy prices could also push up import and transportation costs, while planned increases in government-regulated tariffs pose another inflation risk. Core inflation, which excludes certain volatile and government-regulated prices, stood at 5.5% in September. The Central Bank expects overall inflation to decline to its 5% target by the end of 2027. In neighboring Kazakhstan, annual inflation stood at 9.3% in September, while households expected prices to rise by 11.8% over the following year. The National Bank of Kazakhstan lowered its benchmark rate to 15.75% on October 23, its fourth consecutive cut during 2026, and signaled that further reductions could be paused.