Business & Economy - The Times Of Central Asia

Viewing results 13 - 18 of 2773

Nuclear Energy

Japanese Firm Backs Uzbekistan’s Nuclear-Powered Data Center Project

Uzbekistan's first nuclear power plant, now under construction in the Jizzakh region, is primarily a Russian project. Rosatom is supplying the reactors, and Atomstroyexport, part of its engineering division, is the main contractor. But at the first summit of the Central Asia plus Japan Dialogue in Tokyo in December 2025, a Japanese company agreed to cooperate on a related project: a 50-megawatt data center that could become the first in the world powered entirely by a small modular nuclear reactor. What Russia Is Building The plant in the Forish district will combine two large VVER-1000 reactors with two smaller RITM-200N reactors, for a total capacity of just over 2.1 gigawatts. Uzbekistan's nuclear energy agency, Uzatom, has estimated the maximum contract value at $9.5 billion. Initial concrete work began in March 2026, while the first concrete for the small reactor's foundation was poured in June. The first small reactor is expected to start up in 2029, while the two larger reactors are scheduled for 2033 and 2035. Japan's Role? On December 20, 2025, at the summit, Uzatom signed a memorandum of understanding with Muroosystems Corporation. This Tokyo-based company, founded in 2006, specializes in information technology infrastructure and renewable energy. It expanded into nuclear engineering through its acquisition of a German company, NUKEM Technologies Engineering Services (NUKEM), in 2024. Through NUKEM, Muroosystems plans to provide nuclear safety assessments and engineering services, alongside technical consulting that includes owner's engineer support. These services are intended to support the project in line with international best practices and International Atomic Energy Agency requirements. The cooperation agreement also covers the proposed nuclear-powered data center, involving Uzbekistan's Ministry of Digital Technologies. There is an interesting history behind NUKEM's involvement. The German company was previously owned indirectly by Atomstroyexport and remains based in Germany, although it has been Japanese-owned since September 2024. The Data Center Itself The project involves a data center with an estimated power demand of 50 megawatts. According to DatacenterDynamics, it is expected to receive its normal electricity supply through a direct line from one of the Russian-made RITM-200N reactors, each capable of generating 55 megawatts, rather than from the national grid. Public announcements do not specify how backup power would be provided during reactor maintenance or shutdowns. Combining a Reactor With a Data Center The rationale, outlined by NUKEM, is straightforward. The data center would receive a stable, round-the-clock power supply. In return, the nuclear power plant would gain a steady customer whose high demand could be met through a direct connection, potentially improving the use of its generating capacity. The project also fits into Uzbekistan's efforts to develop artificial intelligence (AI) and digital infrastructure. In September 2026, the country opened new AI-capable data centers in Bukhara and Kokand, while state telecommunications operator Uztelecom announced an agreement to distribute Amazon's satellite internet services. A Pattern, Not an Isolated Case Muroosystems' involvement in Central Asia is not limited to Uzbekistan. The Japanese company has also signed a memorandum of understanding with the National Nuclear Center of...

Grain Trade

Kazakhstan’s Grain Exports to Europe Hit Russian Rail Bottleneck

Russian Railways (RZD) has rejected October requests to transport grain from Kazakhstan through Russia to Estonian ports, citing insufficient rail capacity. There is no formal ban on shipments, but without approval, exporters cannot move their cargo along the usual route. Zeynolla Abdumanapov, head of Kazakhstan's National Association of Exporters KazGrain, reported the problem. The affected rail border crossings are Ivangorod–Narva and Pechory–Koidula, through which Kazakhstan's shipments travel to the Estonian ports of Muuga and Sillamäe. The Baltic route is particularly important for shipments of Kazakhstan's durum and high-protein wheat, as well as oilseed flax, to Europe. These crops command higher prices than ordinary wheat. On October 8, Estonia banned the transit of grain originating in or exported from Russia and Belarus. The restrictions do not apply to grain from Kazakhstan passing through Russian territory, and exporters had hoped to take advantage of available capacity at Estonian ports, where Russian grain transit had already been virtually nonexistent. However, disruptions to shipping through the Black Sea, caused by Ukrainian attacks on Russian port infrastructure and vessels, have forced Russia to redirect much of its grain toward its own Baltic ports, including Ust-Luga and Vysotsk. St. Petersburg is another destination. Russian grain also continues to pass through Latvia and Lithuania, which have not imposed equivalent bans. The shift has increased pressure on the railway network serving the Baltic region. According to Reuters, RZD has given priority to grain shipments heading toward Baltic and Arctic ports. Russia has also raised freight tariffs for shipments to Baltic and Finnish border crossings. Gani Yessenbayev, a representative of Kazakhstan Temir Zholy (KTZ), the country's state railway operator, told the Eurasian AGRICOM 2026 conference that KTZ is negotiating with RZD and recommending that exporters resubmit their applications. The volume of cargo affected by the rejections has not yet been disclosed. Russia can be bypassed via the Trans-Caspian International Transport Route through Azerbaijan and Georgia. However, KazGrain estimates that shipping costs along this route are roughly twice as high, while transshipment capacity is constrained by the facilities at Georgia's Port of Poti. For large-scale wheat exports, the additional costs could prove too high. Kazakhstan's grain trade with Iran is also becoming more difficult. According to Abdumanapov, sea freight rates from Aktau have risen from $17 to $95 per metric ton. Suppliers from Kazakhstan must compete with cheaper Russian grain, while a stronger tenge further reduces their export earnings in local currency. Most of Kazakhstan's grain exports, however, go to neighboring countries rather than Europe. From January through September 2026, grain shipments by rail for export increased by 14% to 8.4 million metric tons. Of that total, 5.5 million tons went to Central Asia. Uzbekistan received 4.11 million tons and Tajikistan 1.18 million tons. Shipments to Afghanistan totaled 762,000 tons, while China received 750,000 tons. Kazakhstan increased its agricultural export revenue by more than a third in 2025. The restrictions on transit through Russia therefore primarily threaten sales of Kazakhstan's higher-value agricultural products to the European Union. Future shipments will...

Flaxseed Trade

Kazakhstan Flaxseed Exports Hit Record 1.3 Million Tons

Kazakhstan ended the 2025/2026 marketing year with record flaxseed exports of nearly 1.3 million metric tons, 2.5 times the previous season's volume. The country accounted for 72.5% of flaxseed imports into the European Union (EU) in the 12 months to June 2026, with European tariffs on Russian flaxseed helping Kazakhstan improve its position in the market. "Kazakhstan is the undisputed leader in flaxseed supplies to the EU and the second-largest exporter to China after Russia," said Yevgeny Karabanov, head of the Analytics Committee of the Grain Union of Kazakhstan. Flaxseed, also known as linseed, comes from the flax plant, which is grown for the fibers used to make linen. The seeds are eaten as food, added to animal feed, or pressed for oil used in cooking and industrial products such as paints and varnishes. According to Karabanov, the export total covers September 2025 to August 2026. European Commission data show that the EU imported 686,800 metric tons of flaxseed between July 2025 and June 2026, up 16.8% from the previous 12-month period. Kazakhstan supplied 497,800 metric tons of that total. Karabanov attributes the shift in the European market to higher tariffs on Russian flaxseed, which rose to 20% in 2025 and 50% in 2026. In January 2026, the value of Russian flaxseed exports to the EU fell to €96,500, its lowest level since July 2010. Belgium became the largest European buyer of Kazakhstan's flaxseed, increasing purchases 1.84-fold to 347,100 metric tons. Other European buyers, including Poland and Estonia, also increased their purchases. Outside the EU, China remains Kazakhstan's largest market. Exports there totaled 537,700 metric tons, 2.8 times the previous season's volume. Afghanistan increased its purchases 3.38-fold to 141,400 metric tons. Exports to Uzbekistan, Tajikistan, and Turkey also grew. China and Belgium together accounted for 68.1% of Kazakhstan's total flaxseed exports. Afghanistan, the third-largest buyer, accounted for another 10.9%. In the new season, exports to Europe could face logistical constraints. According to Karabanov, the redirection of Russian grain exports to Baltic ports could increase pressure on rail networks and complicate the transit of Kazakhstan's shipments through Russia. An alternative route through Belarus and Lithuania would be more expensive. Rising transportation costs are already affecting prices in Ghent, Belgium, a major European trading hub for agricultural commodities. Flaxseed prices there have been rising for the past six weeks, he said. Further increases in logistics costs could erode Kazakhstan's price advantage in the European market.

Data Centers

Kazakhstan Data Centers: Will There Be Enough Electricity and Customers?

Kazakhstan aims to become a regional hub for data processing and artificial intelligence (AI). Data Center Valley is under construction in Ekibastuz, United States-based Firebird is involved in preparations for a major computing complex, and new fiber-optic lines are expected to connect the country to Europe across the Caspian Sea. Authorities hope to attract billions of dollars in investment and develop hundreds of megawatts (MW) of capacity. The main questions are whether the power grid can meet such demand and whether there will be enough international customers. Ekibastuz: The First 50 MW of a Promised Gigawatt At the center of these plans is Data Center Valley in Ekibastuz, an industrial city in northeastern Kazakhstan. The complex is eventually expected to expand to 1 gigawatt (GW) of capacity. According to the government, the first phase is designed for 50 MW. By August, earthworks were approximately 90% complete, and builders had begun laying foundations, with the first facility scheduled to launch in June 2027. Firebird AI: $10 Billion in Agreements On October 2, national telecommunications operator Kazakhtelecom, KT-Telecom, and Firebird AI KZ signed an initial agreement covering the construction and long-term leasing of computing infrastructure. Earlier, the government announced a package of agreements worth up to $10 billion with Firebird, involving U.S.-based NVIDIA as a technology partner. The project provides for the potential deployment of up to 100,000 graphics processing units (GPUs), specialized chips used to train and run AI systems. For now, the $10 billion represents the announced value of the agreements. How much money will go directly toward construction and equipment purchases has not been publicly disclosed. Singapore-based Energy Capital Global has also expressed interest in Kazakhstan’s market. The company is considering a data center campus at Data Center Valley with an initial phase of approximately 100 MW and the potential to expand to 1 GW. In August, it signed a memorandum of understanding with KT-Telecom. Trans-Caspian Cable: A New Data Transmission Route Data centers need fast communications links to serve international customers. Kazakhstan and Azerbaijan are developing an undersea fiber-optic connection between Aktau and Sumgait. On October 6, Kazakhstan's Minister of Artificial Intelligence and Digital Development, Zhaslan Madiyev, announced that the approximately 390-kilometer undersea section of the cable had been completed. The line is scheduled to launch in October 2026. The Trans-Caspian route is intended to connect China and Central Asia with the South Caucasus and Europe. For Kazakhstan, it offers an opportunity to reduce dependence on Russian transit routes. According to the Caspian Policy Center, approximately 95% of the country's outbound international internet traffic passes through Russia. Kazakhstan is also building an approximately 4,500-kilometer West–East fiber-optic backbone, connecting the Caspian coast with the Chinese border. More than 2,200 kilometers have been laid, with construction scheduled for completion by the end of 2026. The new routes would also provide alternative connections, reducing the risk of widespread disruptions if individual lines are damaged. The Existing Market: Tens of Megawatts Versus Hundreds Planned As of October 7, 2026, the industry directory...

Kashagan Oil Field

Exxon Reportedly Blocks Settlement Over Kazakhstan’s $5 Billion Kashagan Fine

ExxonMobil has blocked a proposed settlement over Kazakhstan’s $5.2 billion environmental fine against the operator of the Kashagan oil field, according to an October 9 Bloomberg report citing unnamed sources. The dispute also affects reported discussions about a potential $80 billion expansion, although Kazakhstan’s state oil company has challenged accounts of that proposal. Citing people familiar with the negotiations, Bloomberg said Exxon opposed the latest settlement proposal and persuaded TotalEnergies, previously neutral, to join its position. Together, their opposition was sufficient to halt the proposal. The terms under discussion were not disclosed. Kashagan is operated by a consortium of international companies and Kazakhstan’s state-owned KazMunayGas. ExxonMobil, TotalEnergies, Shell, and Eni each hold 16.81%, while KazMunayGas owns 16.88%. CNPC and Inpex hold the remaining stakes, according to KazMunayGas. According to Bloomberg, KazMunayGas has decided to pay its share of the fine, although the agency did not establish whether payment had been made. ExxonMobil, TotalEnergies, KazMunayGas, Shell, and Inpex declined to comment. Eni, CNPC, and North Caspian Operating Company (NCOC), the field operator, did not respond to its requests. The dispute has also entered discussions over future development. In August, Bloomberg reported that Exxon had proposed an $80 billion joint venture with KazMunayGas to develop western Kashagan. The proposed 50-50 venture could produce up to 600,000 barrels a day, but would depend on resolving the sulfur fine and Kazakhstan's separate claims of around $150 billion. However, KazMunayGas chairman Askhat Khassenov rejected that account, saying it was inaccurate and that the company did not confirm plans for the joint venture. The project has not been approved, and neither the investment figure nor the proposed production capacity has been independently confirmed. KazMunayGas has published separate expansion plans for existing Kashagan operations. Its Phase 2A and 2B projects could raise total oil and condensate production to roughly 710,000 barrels a day, subject to further technical work, gas-processing capacity, and investment decisions. It remains unclear how the reported western development would fit alongside those plans. Kashagan produced approximately 18.2 million metric tons of oil in 2025, according to KazMunayGas. Further expansion would be technically demanding. The field lies in the shallow northern Caspian Sea, where high levels of hydrogen sulfide complicate extraction and processing. The penalty dates to a 2022 inspection of NCOC’s Bolashak processing complex in the Atyrau Region. Inspectors said more than 1.7 million tons of sulfur had accumulated in storage, against a permitted limit of 730,000 tons. NCOC denies the alleged violations and maintains that its sulfur management complied with Kazakh law and project permits. The penalty totals 2.356 trillion tenge, with its dollar value varying by exchange rate. NCOC’s 2024 sustainability figures show that sulfur in block storage fell from 1.775 million tons at the end of 2022 to 613,000 tons at the end of 2024. Annual sulfur production in 2024 was 1.42 million tons, a different measure from the accumulated stockpile involved in the fine. The reduced stockpile does not determine whether the earlier storage breached the permit. Concerns about storage...

Energy Infrastructure

AIIB Signs $1.1 Million in Grant Agreements for Caspian Green Energy Projects

The Asian Infrastructure Investment Bank (AIIB) and Azerbaijan have signed two grant agreements totaling $1.1 million. The funds will support preparations for a submarine electricity cable between Kazakhstan and Azerbaijan, as well as preliminary planning for offshore wind infrastructure in the Caspian Sea. Most of the funding, $1 million, is earmarked for the first phase of a feasibility study for the Caspian Green Energy Corridor. The grants are being administered by AIIB through the Multilateral Cooperation Center for Development Finance. The project envisages laying an approximately 400-kilometer submarine power cable. Uzbekistan is also expected to be connected via overland transmission lines. Experts will assess the technical feasibility of transmitting electricity across the Caspian Sea, as well as the scheme's economic viability and environmental impact. The Asian Development Bank will provide another $1 million for the study, bringing its total funding to $2 million. A separate $100,000 grant will support preliminary planning for shore-based infrastructure for Azerbaijan's offshore wind industry. This includes port facilities and vessels, as well as connections between future wind farms and the power grid. Kazakhstan, Uzbekistan, and Azerbaijan agreed to develop the energy corridor in November 2024 at the COP29 climate conference in Baku. In March 2026, the Mazhilis, formerly the lower house of Kazakhstan's parliament, approved an agreement on a strategic partnership among the three countries in the production and transmission of green energy. Kazakhstan formally ratified the agreement in April. The corridor would enable exports of renewable electricity from Kazakhstan and Uzbekistan to Azerbaijan, with the possibility of further deliveries to Europe. Regional cooperation plans also cover the production and export of green hydrogen and ammonia using renewable energy. Azerbaijan's Energy Minister Parviz Shahbazov said the agreements would help develop offshore wind energy and expand opportunities to export electricity from the Caspian region and Central Asia. AIIB Chief Investment Officer Konstantin Limitovskiy stressed the importance of preparatory studies in attracting investment to regional energy infrastructure. AIIB's 12th Annual Meeting will take place in Baku, Azerbaijan, on July 14–15, 2027.