• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00199 0%
  • TJS/USD = 0.09166 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00199 0%
  • TJS/USD = 0.09166 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00199 0%
  • TJS/USD = 0.09166 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00199 0%
  • TJS/USD = 0.09166 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00199 0%
  • TJS/USD = 0.09166 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00199 0%
  • TJS/USD = 0.09166 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00199 0%
  • TJS/USD = 0.09166 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00199 0%
  • TJS/USD = 0.09166 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 -0.14%
19 February 2025

Viewing results 13 - 18 of 1208

Tajikistan Nears Full Transition to Ruble in Trade with Russia, As Bilateral Trade Surges

Tajikistan has nearly completed its transition to ruble payments in trade with Russia, with over 90% of transactions now conducted in Russian currency, according to Firdavs Tolibzoda, head of the National Bank of Tajikistan. This marks a significant shift from 2021, when trade between the two countries was evenly split between the ruble and the U.S. dollar. Tolibzoda highlighted that Tajik banks are working to minimize financial risks by primarily cooperating with Russian banks that are not subject to international sanctions. The shift away from the dollar in Tajik-Russian trade began after Western sanctions were imposed on Russia following its invasion of Ukraine. Over the past three years, Tajik exchange offices have no longer faced periodic shortages of U.S. currency, a problem that was common before the transition to ruble payments. In 2024, bilateral trade between Tajikistan and Russia is expected to reach $1.98 billion, reflecting a 15.6% increase from 2023. However, trade remains highly imbalanced. Russian imports account for 95.2% of total trade, with Tajikistan purchasing oil products and essential goods, while Tajikistan’s exports to Russia amounted to just $96 million, primarily consisting of vegetables, fruits, and mineral products such as ores and concentrates. Despite Russia’s dominant role as Tajikistan’s largest trading partner, China is rapidly catching up. In 2024, Russia accounted for 22.1% of Tajikistan’s total foreign trade turnover, while China’s share reached 21.8%. Trade with China grew by 30.1% over the past year, almost double the growth rate of trade with Russia, indicating a shifting dynamic in Tajikistan’s economic partnerships.

New Freight Train Route Links China to Afghanistan via Central Asia

A freight train carrying communication equipment and other goods departed from Chongqing, China, on Monday and is expected to arrive in Afghanistan within 12 to 15 days, Xinhua has reported. This marks the launch of a new direct freight route between Chongqing and Afghanistan, passing through Kazakhstan and Uzbekistan. The train is transporting telecommunications equipment produced by Chinese tech company ZTE, which will be used to expand Afghanistan’s communication infrastructure. According to Liu Jianfeng, a representative from ZTE, the new rail route reduces transit time by three to five days compared to road transport, and lowers logistics costs by 15% to 20%. Xu Runqiu, an executive at Yuxin’ou (Chongqing) Supply Chain Management Company, emphasized that the route’s launch strengthens economic and trade ties between China and Central Asian countries. Chongqing has been positioning itself as a key inland logistics hub, with freight traffic to Central Asia and Europe expanding significantly in recent years. To date, the city has dispatched more than 18,000 freight trains across 50 routes, reaching over 100 cities in Asia and Europe.

Kazakhstan is Striving for Investment Amid “Resource Nationalism”

Amid the war in Ukraine, as well as various geopolitical turbulences that threaten to fundamentally change the current global order, Kazakhstan is aiming to attract more foreign investment. The war in Ukraine has so far had a relatively positive impact on the economies of most Central Asian nations, giving Astana room to achieve its ambitious goal of attracting $150 billion in foreign direct investment by 2029.  Kazakhstan, along with other neighboring actors, used the Russian invasion of Ukraine to develop closer economic ties with the West, namely with the European Union. It is therefore no surprise that, in 2022 and 2023, the EU member Netherlands invested over $12 billion in the Kazakh economy, making it the leading foreign investor. The United States, according to the official statistics, is the second-largest investor, with Switzerland rounding out the top three. Although between 2005 and its total foreign direct investment (FDI) reached $402 billion, Kazakhstan’s innovation agenda aims to attract $150 billion of FDI in the next five years while doubling the country’s GDP. The problem is that in 2023 the inflow of foreign direct investment into Kazakhstan decreased by 32.3%, which suggests that Astana may have a hard time finding ways to attract more capital into the Kazakh economy. Experts claim that there is no comprehensive development strategy for both industries and regions in Kazakhstan, which limits investments in its economy. But the creation of platforms with tax preferences, an independent regulator, and a regulatory environment based on the principles of British law are believed to contribute to the active development of entrepreneurship. In other words, the authorities in Kazakhstan are using a model based on practices in Britain and the United Arab Emirates to attract investment, drawing inspiration from the British Common Law system, as well as the Dubai International Financial Center, which served as a reference for the Astana International Financial Center. Given that both Kazakhstan and the UAE are economies based on fossil fuel exports, it is unlikely to be a coincidence that Astana aims to use Abu Dhabi’s experiences to improve its existing arrangements with foreign corporations operating in Kazakhstan.  "Large investments require a long-term planning horizon. Therefore, the government will have to intensify negotiations regarding the extension of production sharing agreements contracts on the updated terms, favorable to the country," Kazakhstan’s President Kassym-Jomart Tokayev said on January 28, as foreign companies reportedly claim that Astana is seeking to increase its shares in key oil and gas projects in what amounts to "resource nationalism".  At the same time, the Kazakh government seeks to create a favorable investment climate for foreign companies by reducing bureaucratic obstacles, introducing tax breaks, eliminating financial audits, and ensuring the protection of the legal rights of investors. Kazakhstan has also recently introduced a Digital Nomad visa (also called a 'Neo Nomad' visa), which grants foreign nationals the right to reside in the country while working for a foreign employer. Such a move can be interpreted as another attempt to attract foreign investment in Kazakhstan. ...

Kasymaliyev: Kyrgyzstan to Focus on Hydropower and Economic Growth

As a small, landlocked country in the heart of Central Asia, Kyrgyzstan is prioritizing the expansion of its hydropower potential, enhancing transit opportunities, and digitalizing public administration, Chairman of the Cabinet of Ministers Adylbek Kasymaliyev said at the World Governments Summit in Dubai, United Arab Emirates, on February 11. According to Kasymaliyev, Kyrgyzstan’s position as an "upstream country" in the region largely shapes its water policy. The country’s total hydropower potential is estimated to exceed 140 billion kilowatt-hours per year. While Kyrgyzstan’s abundant water resources meet domestic needs, they also supply irrigation water to large farmland areas in downstream Central Asian countries such as Kazakhstan and Uzbekistan. Hydropower and Regional Energy Cooperation Kyrgyzstan’s flagship project in the water and energy sector is the construction of the Kambarata-1 hydroelectric power plant on the Naryn River, in partnership with Kazakhstan and Uzbekistan. Once completed, the plant is expected to generate 5.6 billion kilowatt-hours of electricity annually, meeting domestic demand while also enabling the export of surplus clean energy to neighboring countries. Transport and Trade: China-Kyrgyzstan-Uzbekistan Railway Another major infrastructure initiative highlighted by Kasymaliyev is the China-Kyrgyzstan-Uzbekistan railway, which broke ground in December 2024. More than just a transport corridor, the railway is seen as a strategic link connecting East and West. The route will facilitate the movement of goods from China to Kyrgyzstan and onward to Central Asia, the Middle East - including Turkey - and the European Union. “The project will strengthen interregional ties, help diversify transport routes, and enhance the region’s competitiveness as an international transport and transit hub, benefiting all Central Asian countries,” Kasymaliyev said. Digital Transformation and AI in Governance Kyrgyzstan’s third priority is digital transformation, aimed at reducing bureaucracy and lowering the cost of public services for citizens and businesses. “We are on the threshold of a new era of public administration, where digital transformation, artificial intelligence, and big data are not just tools but the foundation for making balanced and strategically sound decisions,” Kasymaliyev stated. He emphasized that AI offers unprecedented opportunities to improve governance efficiency. “Today, decisions worldwide are based on objective analysis of vast amounts of data. If we can assess the impact of fiscal reforms, energy tariff changes, or investment programs in advance, we can minimize risks, enhance economic resilience, and make truly well-informed decisions,” he said, adding that Kyrgyzstan is eager to adopt best practices from international partners.

Kazakhstan to Diversify Agricultural Crops for Higher Yields and Increased Profits

Kazakhstan will continue diversifying its agricultural crop areas this year as part of efforts to double gross agricultural output, Minister of Agriculture Aidarbek Saparov announced at a government meeting on February 11, focused on preparations for the upcoming sowing season. According to Saparov, Kazakhstan plans to sow crops on 23.8 million hectares in 2025, an increase of 518,000 hectares compared to 2024. The crop diversification program will cover approximately 1 million hectares, while the area dedicated to highly profitable crops will expand by 750,000 hectares. The area under oilseed crops will increase by 365,000 hectares, reaching 3.3 million hectares, including a 50,600-hectare expansion for sunflower cultivation, bringing it to 1.3 million hectares. Potato cultivation will grow by 14,900 hectares to reach 136,800 hectares, while buckwheat fields will expand by 41,500 hectares, bringing the total to 147,000 hectares. The sugar beet planting area will increase to 18,400 hectares, and forage crops will expand by 184,000 hectares, reaching 3.4 million hectares. Cotton will be sown on 135,200 hectares, while rice will cover 90,200 hectares. Kazakhstan will also continue to reduce its reliance on wheat monoculture. In 2025, grain crops will be sown on 16.6 million hectares, slightly down from 16.7 million hectares in 2024. Over the past two years, wheat cultivation has been reduced by nearly 730,000 hectares, including 159,000 hectares this year. According to Saparov, diversification will help mitigate risks associated with price fluctuations in agricultural markets. Oilseeds and legumes remain in high demand both domestically and internationally, with consistently strong prices. While the average price of wheat stands at 65,000 - 70,000 KZT per ton, export-oriented crops such as flax and rapeseed can fetch 200,000 KZT per ton or more. Beyond economic benefits, crop diversification contributes to soil health. Saparov highlighted that legumes, in particular, help enrich the soil with nitrogen, improving the yield of subsequent crops. This approach not only increases profitability but also enhances environmental sustainability.

ICAO to Develop Master Plan for Kazakhstan’s Civil Aviation

Kazakhstan’s Ministry of Transport and the International Civil Aviation Organization (ICAO) have signed an agreement to develop a strategic Master Plan for the Development of Kazakhstan’s Civil Aviation through 2050. The plan will outline a comprehensive strategy for the country’s civil aviation sector, covering the development of airports, air navigation systems, and airlines. It will also focus on improving flight safety, aviation security, accessibility, and the liberalization of air transport. Kazakhstan is the first country in Central Asia and the Commonwealth of Independent States (CIS) to establish a strategic partnership with ICAO for the sustainable development and modernization of its civil aviation sector. The initiative aligns with national objectives to enhance Kazakhstan’s role as a regional transit and transport hub. According to the Ministry of Transport, domestic airlines carried 14.3 million passengers in 2024, a 9% increase from 2023. Passenger traffic at Kazakhstan’s airports also grew by 14%, reaching 29.7 million people. Kazakhstan currently operates 582 flights per week to 31 countries, including Russia, Kyrgyzstan, Uzbekistan, Tajikistan, Georgia, Belarus, Azerbaijan, the United Arab Emirates, Saudi Arabia, Qatar, South Korea, China, India, and several European nations such as Germany, Italy, and the Netherlands. Additional destinations include countries in Southeast Asia, the Middle East, South Asia, Turkey, and the Maldives.