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Trade and Logistics

Kazakhstan Proposes Kenyan Trade Hub to Access Eurasian Markets

Kazakhstan has proposed establishing a Kenyan trade and logistics hub on its territory to facilitate the export of Kenyan goods to Eurasian markets, as Astana seeks to position itself as a key transit link between Asia, Europe, and Africa. The initiative was announced by President Kassym-Jomart Tokayev of Kazakhstan during the Kazakhstan-Kenya Business Forum, held as part of Kenya’s President William Ruto’s state visit to Astana. “We are committed to opening a Kenyan trade hub in Kazakhstan that will provide your businesses with direct access to the entire Eurasian region,” Tokayev told representatives of the Kenyan business community. Kazakhstan hopes to expand exports of grain and other agricultural products to Africa, while Kenya could increase supplies of tea, coffee, and flowers to Central Asian and broader Eurasian markets. Astana is also promoting itself as an important part of international transport corridors. According to Tokayev, approximately 85% of overland transit traffic between China and Europe passes through Kazakhstan. The country is actively developing the Trans-Caspian International Transport Route, commonly known as the Middle Corridor, which is increasingly viewed as an alternative to traditional transit routes through Russia. Tokayev proposed integrating the Middle Corridor with East African maritime routes by using the potential of China’s Belt and Road Initiative. Kazakhstan specifically expressed interest in cooperation with the ports of Mombasa and Lamu, which are regarded as the region’s largest logistics hubs. “It is necessary to connect the Middle Corridor with Africa’s vital maritime arteries,” Tokayev said. The two sides also discussed the development of direct cargo air links between Kazakhstan and Kenya, as well as the possibility of launching direct passenger flights between Astana and Nairobi in the future. Beyond logistics, Kazakhstan and Kenya plan to expand cooperation in the extraction of rare earth metals and critical minerals, resources in growing global demand amid the energy transition and the expansion of digital technologies. During the forum, Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, and Kenya’s National Mining Corporation signed an agreement on joint geological exploration and subsoil development projects in Kenya. Tokayev also proposed establishing a Kazakhstan-Kenya Business Council and a specialized expert group focused on transport and logistics infrastructure development. According to the president, these steps should accelerate the creation of an intergovernmental commission on trade and economic cooperation. Ruto said Nairobi was interested in creating a “new economic bridge” between Central Asia and Africa. “The logistics ports of Mombasa and Lamu will be available to companies from Kazakhstan interested in entering East African markets,” Ruto said. The visit comes as Kazakhstan seeks to diversify its trade routes and expand economic ties with countries of the Global South. Earlier, authorities in Kazakhstan announced plans to expand the country’s maritime fleet on the Caspian Sea to increase the capacity of the Middle Corridor.

GSMA Summit

GSMA M360 Eurasia in Samarkand Highlights Push for Faster Digital Growth

Government officials, telecom executives, investors and startup founders gathered in Samarkand this week for GSMA M360 Eurasia 2026, an event focused on one of the region’s biggest questions: how to turn expanding connectivity into long-term economic growth. Held on May 20-21, the summit brought together policymakers and technology companies to discuss artificial intelligence, 5G deployment, digital public services, investment and startup ecosystems. New data released by the GSMA during the event suggests the mobile industry is becoming an increasingly important economic engine across Eurasia. According to the newly published Mobile Economy Eurasia 2026 report, mobile technologies and services generated $270 billion in economic value across Eurasia in 2025, equivalent to 8.1% of regional GDP. That contribution is projected to reach $300 billion by 2030. Opening the event, John Giusti, Chief Regulatory Officer at the GSMA, said decisions made now on regulation, infrastructure and investment will shape Eurasia’s digital future. “The mobile industry is a powerful driver of growth across Eurasia, contributing around $270 billion to the regional economy today and set to reach $300 billion by 2030,” Giusti said during the keynote session. “Hosting M360 Eurasia in Samarkand is especially fitting. Uzbekistan’s rapid digital progress shows how mobile connectivity can modernize public services, boost productivity and improve lives across the region.” The GSMA report estimates that the mobile ecosystem supported approximately 750,000 jobs across Eurasia in 2025. By 2030, mobile’s economic contribution is expected to grow faster than overall regional GDP growth. Yet expansion remains uneven. Despite wider internet coverage, a significant usage gap persists: nearly 29% of people covered by mobile networks across Eurasia still do not use mobile internet. The report identified affordability, digital literacy and trust as the main barriers. [caption id="attachment_49256" align="aligncenter" width="2560"] Image: ТСА, Sadokat Jalolova[/caption] Uzbekistan’s 5G Push and Why 4G Still Matters One of the summit’s recurring themes was 5G deployment. The GSMA forecasts that by 2030, almost 30% of all mobile connections in Eurasia will use 5G technology. Uzbekistan is expected to exceed that average, with more than 40% of connections projected to run on 5G by the end of the decade. Still, Giusti cautioned against focusing exclusively on next-generation networks. In an interview with The Times of Central Asia, he said maintaining investment in existing technologies remains critical. “I think obviously Uzbekistan is leading in terms of 5G deployment,” Giusti said. “But I think it’s very important that we not lose sight of continued investment in 4G.” “We have a lot of 4G devices out there, and I think LTE is offering a huge amount of opportunity for citizens. So, I think it’s this complementary approach of making sure we invest both in the next generation of technology and continue to facilitate the growth of existing technologies.” His comments reflect a broader debate in emerging digital economies: whether governments and operators should prioritize cutting-edge infrastructure or maximize access through already established networks. For many consumers, especially outside major urban centers, 4G remains the primary gateway to digital services. Digital Services Beyond...

Sanctions

Kyrgyzstan Orders 50 Companies to Cease Activity Over Sanctions Risks

Kyrgyzstan has ordered 50 companies to cease activity after state agencies flagged them for sanctions risks, as Bishkek faces growing pressure over Russia-linked trade and payment channels. The move follows months of pressure from Western governments, which say some routes through Central Asia can be used to bypass sanctions imposed over the war in Ukraine. The Ministry of Justice did not name the companies, their owners, or their sectors. It also did not say whether any of them had direct links to Russia. The list was prepared by the Ministry of Economy and Commerce and other state bodies after checks into possible attempts to evade sanctions restrictions. The order was issued under an interagency mechanism for identifying dishonest participants in foreign economic activity and transactions with increased sanctions risks. The mechanism allows state bodies to use a simplified procedure to terminate the activity of legal entities after a formal submission. The Justice Ministry linked the move to efforts to protect the national economy from possible secondary sanctions. The European Union adopted its 20th sanctions package against Russia on April 23, less than a month before the Ministry of Justice order. The package added measures on energy, finance, trade, and crypto channels. It also used the EU’s anti-circumvention tool against Kyrgyzstan for the first time. Under that measure, the EU banned exports of computer numerical control machines and radios to Kyrgyzstan when there is a high risk that the goods will be re-exported to Russia. The Council of the EU said trade data showed a sharp rise in re-exports of common high-priority items through Kyrgyzstan to Russia. The EU treats the goods as sensitive because they can support industrial production, communications, and military-linked supply chains. The financial aspect of the sanctions has also reached Kyrgyzstan. The EU said it was targeting four financial institutions in third countries for circumventing sanctions or connecting to Russia’s financial messaging system. Local media identified Keremet Bank and Capital Bank as the Kyrgyz banks included in the package. The EU also designated a Kyrgyz entity that operates a platform where significant amounts of the A7A5 stablecoin are traded. Local outlets identified the entity as TengriCoin, registered in Bishkek, and linked it to the Meer platform. The pressure on Kyrgyz banks and crypto companies has been growing. The U.S. Treasury designated Keremet Bank in January 2025, saying the bank had coordinated with Russian officials and Promsvyazbank, a sanctioned Russian state defense lender, to support cross-border transfers. In August 2025, the UK government sanctioned Capital Bank of Central Asia, its director Kantemir Chalbayev, Grinex, Meer, TengriCoin, Old Vector, and other targets linked to Russian payment and crypto channels. London said the ruble-backed A7A5 token had moved $9.3 billion on a dedicated crypto exchange in four months. Kyrgyz officials have rejected the broader claim that the country helps Russia evade sanctions. The Foreign Ministry said on April 28 that Kyrgyzstan acts within national laws and its international obligations. It said Bishkek had supplied the requested documents to European partners...

Eurasian Development Bank (EDB)

EDB to Provide Tajikistan With $18.5 Million for Road Construction in Gorno-Badakhshan

The Eurasian Development Bank (EDB) will finance the construction of a section of the Labidjar-Kalaikhumb highway in Tajikistan in a project aimed at improving transport connections with the country’s remote Gorno-Badakhshan Autonomous Region (GBAO) and increasing access to mountainous areas. The financing agreement was signed by the EDB’s country director for Tajikistan, Vladimir Yakunin, and Tajik Finance Minister Fayziddin Kakhhorzoda. Under the agreement, the bank will provide Tajikistan with concessional financing totaling $18.5 million. Of that amount, $17 million will be issued as a loan, while an additional $1.5 million will be allocated as a targeted grant. The funds will be used for the construction and reconstruction of the first section of the Labidjar-Kalaikhumb road. The project includes the construction of ten kilometers of roadway and three bridges. Project developers say the new infrastructure will improve cargo transport safety, enhance access to remote mountain regions, and create additional opportunities for business development and trade. The project is also expected to strengthen transport links between Tajikistan’s centrally administered districts and the Gorno-Badakhshan Autonomous Region. “The project will become part of a broader effort to modernize Tajikistan’s transport infrastructure and will contribute to the country’s socio-economic development, the expansion of interregional ties, and increased population mobility,” Yakunin said. He added that support for infrastructure projects remains one of the bank’s key strategic priorities. The Eurasian Development Bank has operated across the Eurasian region for nearly two decades. The institution finances projects in transport, digital infrastructure, agriculture, industry, and green energy. According to the bank, by the end of 2025, its portfolio included 326 projects with a combined investment volume of approximately $19.6 billion. A significant share of those projects is linked to the development of transport corridors and deeper economic integration among participating countries. The EDB also states that its activities are guided by the United Nations Sustainable Development Goals and ESG principles.

Opinion: How AI Is Reshaping the Global Image of Nations

Artificial intelligence is rapidly becoming one of the most powerful geopolitical and economic forces in the world. It is changing how countries compete, build influence, and attract investment. Until recently, discussions about Central Asia’s economic development were dominated by infrastructure, energy, logistics, and natural resources. Today, a new layer of competition is emerging: digital influence shaped by AI systems. According to McKinsey, AI could contribute up to $13 trillion to the global economy by 2030. For Central Asia and Kazakhstan, AI development is no longer just a digital transformation agenda; it is directly tied to technological sovereignty, economic resilience, and long-term competitiveness. Who Shapes a Country’s Image in the Age of AI? Digital influence is increasingly determined by how artificial intelligence systems interpret and represent countries. Consider a Singaporean investor asking Gemini about emerging technology markets in Central Asia. A European procurement manager using ChatGPT to identify logistics partners in the region. A journalist turning to Perplexity for insights on Kazakhstan’s fintech ecosystem before writing a report. In each case, AI generates answers based on the data it has been trained on and can access. This creates a new geopolitical reality: those who shape data and content structure ultimately shape how countries are represented globally. Generative AI is already used at a massive scale, with ChatGPT surpassing 900 million weekly active users as of early 2026. As these systems become default information interfaces, the visibility of countries within AI-generated responses is becoming increasingly important. When high-quality, structured, and authoritative content is missing, AI systems rely on outdated information, fragmented sources, and external narratives. In practice, this means that a lack of structured digital presence can directly influence international perception. How Other Countries Are Responding Several countries have already recognized this shift and are actively responding. According to Axios, Israel paid Brad Parscale’s firm $9 million as part of a campaign aimed at shaping how AI platforms portray the country. The United Arab Emirates and Saudi Arabia are investing heavily in AI infrastructure and Arabic-language models, including Gulf-backed data centers, sovereign AI initiatives, and Arabic-first large language models. These efforts go beyond technology development. They represent a broader competition for influence in an information environment where AI-generated responses increasingly shape global understanding. AI Momentum in Kazakhstan In 2025, Kazakhstan was listed among the region’s strongest performers in the Government AI Readiness Index published by Oxford Insights. Kazakh officials cited a ranking of 60th out of 195 countries, while Oxford Insights published a regional report that placed Kazakhstan 58th globally. In either case, it was the highest-ranked of the five Central Asian states and represented a sharp improvement from the previous year. Over the past two years, Kazakhstan has demonstrated rapid progress in artificial intelligence. Venture investment in AI has increased more than fivefold, from $14 million to $73 million. IT service exports surpassed $1 billion in 2025, with later ministry figures putting the total at about $1.14 billion. The Kazakh-linked AI startup Higgsfield AI has also been widely described as Kazakhstan’s...

Air Taxi

Air Taxi Service in Kazakhstan Unlikely to Launch Commercially Before 2029

An air taxi service being developed in Kazakhstan’s Almaty Region is unlikely to begin full commercial operations before 2029, Almaty Region Governor Marat Sultangaziev said during test flights of the new transport system in Alatau, a newly established “city of the future” near Almaty. On May 19, Alatau hosted Central Asia’s first public launch of an electric vertical takeoff and landing (eVTOL) aircraft, marking the debut of air taxi technology in the region. Developers say the electric air taxi is expected to help reduce traffic congestion, connect tourist destinations, and shorten travel times. The aircraft can reach speeds of up to 200 kilometers per hour and travel distances of up to 200 kilometers on a single charge. Equipped with 13 electric motors, the air taxi is designed to carry one pilot and five passengers. In accordance with safety requirements, the first demonstration flight was conducted without passengers, the press service of the Almaty regional administration reported. Almaty Region Governor Marat Sultangaziev, who attended the launch event, described the initiative as strategically important for Kazakhstan’s transport sector. At the same time, he said the project would require infrastructure development and a comprehensive legal framework before commercial operations could begin. “Project initiators are now working on that process, and we will support them where necessary. They plan to transition from test operations to industrial-scale implementation around 2029. This initiative fully aligns with the concept of developing Alatau as a center for innovation and digitalization,” Sultangaziev said. Alisher Abdykadyrov, CEO of the Alatau City Authority state fund, said specially equipped vertiports would be used for eVTOL takeoffs and landings. The facilities would include charging and navigation systems and could be integrated into urban environments, including rooftops, transport hubs, and business districts. Construction of the first vertiport in Alatau has already begun, Abdykadyrov said, with additional facilities planned for Almaty and tourist destinations across the Almaty Region. The future network is expected to connect key transport hubs throughout the region. “Today we are witnessing a historic moment for Kazakhstan,” Abdykadyrov said. “This is not simply a demonstration of a new technology, but the beginning of a new phase in the city’s development based on innovation and digital technologies. Alatau is envisioned as a city of the future, which makes it especially symbolic that the development of air mobility and a new industry begins here.” “Our goal is not only to introduce the technology itself, but to build a complete ecosystem around it, creating infrastructure, developing engineering expertise, and generating new jobs,” he added. Regarding the legal regulation of the new mode of transport, Daniyar Uteulin, project manager at Alatau Advanced Air Group (AAAG), said the first package of regulatory proposals has already been prepared and submitted to the government for consideration. According to Uteulin, the draft regulations are based on the experience of countries where urban air mobility technologies are already developing rapidly, including the United States, China, South Korea, and several Middle Eastern countries. Kazakhstan is expected to designate a separate flight corridor...