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Agriculture

Uzbekistan to Invest $200 Million in Seed Production

Uzbekistan is expanding international cooperation in agriculture, with President Shavkat Mirziyoyev reviewing new sector development plans on March 3. The country is implementing agricultural reforms aimed at boosting efficiency through modern technologies and scientific research. Recently, Uzbek experts visited China, Italy, and Japan to study advanced farming practices, leading to new partnerships in the sector. Seed Production: A Key Priority High-quality seed production is essential for increasing crop yields. While Uzbekistan has 14 agricultural research institutes and 55 seed farms, they struggle to develop new seed varieties. As a result, many farmers rely on imported seeds, which are often more effective than local alternatives. To address this issue, Uzbekistan will establish a national seed and nursery system based on China’s agricultural model. The project, to be launched at the Agro-Service Center in Yukorichirchik district, will receive a $200 million investment. It will focus on developing improved varieties of cotton, wheat, rice, corn, grapes, and fruit. Additionally, a model farm will be created, integrating modern equipment and drone technology. Investing in Agricultural Education Developing skilled agricultural professionals is another challenge. Uzbekistan is looking to Italy’s education system as a model, particularly the University of Bologna, which trains specialists for European agriculture. This year, 200 Uzbek students will study at Bologna, Tuscia, Ferrara, and Pisa universities. The University of Tuscia will also offer 30 annual scholarships for Uzbek students. Uzbekistan is further expanding practical training opportunities abroad. Uzbek students have already completed internships in Germany and the UK, while universities in Tashkent and Fergana are establishing Japanese language centers to prepare students for study in Japan. Expanding Global Cooperation Mirziyoyev has called for stronger ties with Hungary, the Netherlands, Canada, Australia, and South Korea. In response, the Ministry of Agriculture is developing new initiatives to introduce innovative agricultural practices across the country.

Labor Market

Kazakhstan Boosts Vocational Training as Demand for Blue-Collar Workers Surges

Kazakhstan is experiencing a growing demand for blue-collar workers, particularly in the construction, agriculture, manufacturing, and healthcare sectors, according to Deputy Minister of Labor and Social Protection Askar Biakhmetov. In 2024, a total of 979,000 job seekers found employment in Kazakhstan, including 714,000 individuals who secured permanent jobs, Biakhmetov stated. Kazakhstan’s Labor Market Development Concept aims to increase the number of high-quality, well-paid jobs from 2.5 million in 2024 to 3.8 million by 2029. To achieve this, the Ministry of Labor and Social Protection has expanded vocational training programs: In 2023, 67,500 people participated in short-term vocational courses The Skills Enbek online training platform trained 57,700 people, of whom 14,600 secured jobs after completing their courses The platform currently offers 858 online courses, including 311 free courses, aimed at helping individuals gain new skills or improve their qualifications Kazakhstan has declared 2025 the “Year of Blue-Collar Professions” to highlight the importance of vocational careers. “The total demand for labor over the next six years is estimated at 1.6 million workers. Of these, around 900,000 jobs will require vocational education, while more than 400,000 positions will be in blue-collar professions,” Biakhmetov stated. Meanwhile, the government is taking steps to reduce reliance on foreign labor. Svetlana Zhakupova, Minister of Labor and Social Protection, announced that Kazakhstan’s annual foreign labor quota will be reduced from 22,000 to 15,000 in 2025. As Kazakhstan continues to modernize its labor market, the government is prioritizing workforce development through training initiatives and employment programs, ensuring sufficient skilled labor for the country’s growing economy.

Tax

Kazakh Government Prepares for Battle with Big Business Over Tax

Kazakhstan's government is entering a critical phase of its tax system overhaul, which is set to conclude by Nauryz, the country’s most significant Turkic holiday, beginning on March 21. The deadline for the ultimatum issued by Prime Minister Olzhas Bektenov to major businesses, accused of exploiting tax loopholes, will expire in the second half of March. The question remains: What happens next? Tax Reform: Eliminating Preferences The government has been pushing for tax reform, aiming to abolish a range of tax benefits, some of which date back to 2008 during the global financial crisis. However, the main point of contention now is the Special Tax Regime (STR), a more recent initiative. The STR was introduced in 2021 as a response to the economic crisis caused by the COVID-19 pandemic. Today, 2.3 million taxpayers in Kazakhstan operate under this system, yet only 8% (137,000 entities) are value-added tax (VAT) payers. Additionally, 81% of registered entities use the simplified tax declaration regime, with 85% reporting annual incomes of up to 15 million KZT ($30,000). Ultimatum to Developers Following a report by Minister of Finance Madi Takiyev on tax evasion practices, Prime Minister Bektenov singled out two of Kazakhstan’s largest construction companies, BI Group and BAZIS, accusing them of using legal loopholes to avoid paying fair taxes. “Unscrupulous entrepreneurs are exploiting various tax optimization schemes and paying amounts that do not match their billion-dollar revenues. We have a full list of such companies, including major developers like BI Group, BAZIS, and others, as well as well known restaurant chains, fitness clubs, and businesses across multiple industries,” Bektenov said. He then issued a demand: companies must voluntarily submit revised tax declarations within two weeks and pay appropriate taxes. Shortly afterward, it was revealed that BI Group was ordered to pay 11.9 billion KZT ($23.8 million) in additional taxes, while BAZIS must pay 4.6 billion KZT ($9.2 million) for 2022 and 2023. Developers Deny Allegations In response, both companies denied the accusations. BAZIS stated that its subsidiary structure was created to comply with Kazakhstan’s equity participation laws, not for tax evasion. “This is a legal requirement under Kazakhstani legislation, and we fully comply with it,” the company said. BAZIS also emphasized that it is regularly monitored by tax authorities and expressed concern over Bektenov’s remarks. BI Group, for its part, insisted that its tax deductions are audited annually by both state bodies and independent international firms such as KPMG and Ernst & Young. “The company has been audited annually for the last 10 years by KPMG and Ernst & Young, and no violations have been found,” BI Group stated. Ties to the Government BI Group has had close ties to the Kazakh government. In 2020, the company was tasked with building modular hospitals during the COVID-19 crisis. However, in 2021, the project came under corruption investigation, though the company was ultimately cleared. BI Group’s owner, Aidyn Rakhimbayev, remains a highly influential businessman. He is ranked 11th on Forbes Kazakhstan’s list of the country’s wealthiest individuals,...

International Transport

Development of a Maritime Fleet in a Landlocked Country

It may come as a surprise to some, but despite being a landlocked country far from any ocean, Kazakhstan is actively developing its maritime fleet. The country recognizes that to play a significant role in maritime transport across the Caspian Sea, Kazakhstan must enhance the competitiveness of its commercial fleet, alongside improving coastal infrastructure and services. This initiative not only generates revenue for Kazakh transport companies and contributes to the national budget but also safeguards the country's foreign trade. Kazakhstan has set an ambitious goal to establish a regional transit hub based on its Caspian Sea ports, Aktau and Kuryk. It is attracting major international players to develop its logistics services and integrate Kazakhstan into the global trade and transport network. However, the development of the national commercial fleet is lagging. The shortage of a strong fleet means Kazakhstan struggles to compete with the maritime industries of other Caspian nations. It is no secret that most maritime transport between the ports of Aktau/Kuryk and Baku is currently handled by the Azerbaijan Caspian Shipping Company, one of the largest maritime transport operators in the region. The company owns more than 50 transport vessels and over 110 specialized ships and plans to implement a large-scale investment program to modernize its fleet by 2029. Meanwhile, according to Kazakhstan’s Bureau of National Statistics, 263 maritime vessels are registered in the country. However, more than 70% of these vessels are over 25 years old. The aging fleet and weak presence in the maritime transport market prevent Kazakhstan from increasing its share in global supply chains, meaning most of the profits from freight transport go to foreign carriers. The longstanding principle discussed in Kazakhstan’s transport sector — “Our Cargo – Our Port – Our Fleet”— could enable domestic transport companies to earn up to 30% more through logistics-related revenue. According to World Bank estimates, by 2030, cargo transportation via the Trans-Caspian International Transport Route is expected to reach 11 million tons. The Concept for the Development of Kazakhstan’s Transport and Logistics Potential until 2030 forecasts that the volume of containerized transit cargo along this corridor from China will grow by at least 40,000 TEU (twenty-foot equivalent units) in the next five years. Over the past decade, Kazakhstan’s domestic tanker fleet has significantly reduced its oil transport operations, as most of the country's crude oil is now transported via pipelines. However, a recent drone attack on the Caspian Pipeline Consortium's (CPC) largest oil pumping station and a subsequent statement from “Transneft” warning that this could lead to a 30% reduction in Kazakhstan’s oil exports highlight the urgent need for an alternative maritime route for oil transport. This would help maintain stable oil production in the country’s fields. Accelerating the modernization and expansion of Kazakhstan’s national fleet will integrate the country into the regional transport and logistics system, reduce dependency on foreign vessels, and protect foreign trade from volatile freight market conditions — especially given ongoing geopolitical uncertainties in the region. A key initiative expected to strengthen Kazakhstan’s...

Finance

Kyrgyzstan to Issue $1.7 Billion in Eurobonds for the First Time

The Ministry of Finance of Kyrgyzstan has summarized its 2024 financial results and outlined its plans for 2025. According to Finance Minister Almaz Baketaev, the country’s recent financial policies have played a key role in rebuilding the economy. First-Ever Eurobond Issuance For the first time, Kyrgyzstan is preparing to issue Eurobonds worth $1.7 billion with a 10-year maturity period. The bonds will be denominated in U.S. dollars, euros, Chinese yuan, UAE dirhams, Hong Kong dollars, and the Kyrgyz som. Earlier, The Times of Central Asia reported that the government was working on issuing European and American bonds, though at the time, the Ministry of Finance had not provided specific details. Now, the scale and scope of the plan have been confirmed. “This issuance will be aimed at implementing priority projects in the energy sector,” said Umutzhan Amanbayev, director of the Central Treasury at the Ministry of Finance. Investment and Economic Growth Strategy The Ministry of Finance believes that Kyrgyzstan’s stable budget surplus, improving economic indicators, infrastructure development, and large-scale reforms continue to enhance its position in global financial rankings, attracting greater attention from international investors. The Treasury has emphasized that strengthening the country’s financial and economic foundation will require: Effective budget policies Improvements in the social sector Increased foreign investment These measures, officials argue, will help sustain economic growth and ensure long-term stability. Growing Role in Financial Markets Kyrgyz authorities have begun actively engaging with international financial markets to attract investment. In 2024, the government issued green bonds to fund environmental projects. Additionally, Kyrgyzstan is working on integrating its stock exchange with those of the Eurasian Economic Union (EAEU) countries. The recent decision by S&P Global Ratings to assess Kyrgyz government securities has further bolstered interest in the country’s financial instruments, enhancing the appeal of Kyrgyzstan’s sovereign bonds.

Energy

Kazakhstan to Expand Oil, Gas, and Green Energy Production in 2025

The Ministry of Energy of Kazakhstan has released its 2024 fuel and energy sector report and outlined its plans for 2025. The country aims to increase crude oil and natural gas production while expanding renewable energy capacity. Oil Production and Refining In 2024, Kazakhstan produced 87.7 million tons of crude oil. Oil refining met the target of 17.9 million tons, while the production of: Oil products reached 14.5 million tons (exceeding the plan) Liquefied gas totaled 3 million tons Petrochemical products amounted to 540,000 tons In 2025, the country aims to boost crude oil production to 96.2 million tons, driven by the expansion of production at the Tengiz field and continued development at Karachaganak, Kalamkas-Sea, and Khazar. Natural Gas Expansion and Infrastructure Kazakhstan produced 59 billion cubic meters (bcm) of natural gas in 2024 and plans to increase output to 62.8 bcm in 2025. As of last year, 61.8% of Kazakhstan’s population had access to natural gas supplies. The government plans to expand gasification efforts in 2025 through the completion of major gas pipelines and distribution stations. Growth in Renewable Energy and Electricity Generation Kazakhstan generated 117.9 billion kWh of electricity in 2024, with 7.58 billion kWh (6.4%) coming from renewable energy sources (RES). In 2025, the country will implement nine new RES projects with a total capacity of 455.5 MW, further increasing the share of green energy and reducing the carbon footprint of Kazakhstan’s energy sector.