Business & Economy - The Times Of Central Asia

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Tajik Airlines

Tajikistan’s Somon Air Adds Routes, Receives First Boeing 737 MAX

Somon Air, Tajikistan’s national carrier, says it will start direct flights once a week between Dushanbe and Minsk, Belarus, on August 29. “Flights will operate every Saturday,” said the airline, which received its first Boeing 737 MAX aircraft in Dushanbe on August 3 as part of a fleet expansion. The airline, which is adding international routes and working to strengthen its role in the Central Asian aviation market, committed to ordering up to four 787 Dreamliners and up to 10 737 MAX aircraft in an announcement with Boeing in late 2025. At the time of the agreement’s announcement, Somon Air was operating six Next-Generation 737 airplanes to destinations across Europe, Asia and the Middle East, according to Boeing. The expansion of Somon Air’s international flights will “contribute to the development of tourism, cultural exchange, the expansion of economic relations, and the enhancement of Tajikistan's reputation as a country leading the ‘open door´ policy,” the state Khovar news agency reported on Monday. In 2025, Tajikistan introduced an Open Skies policy that lifted many market restrictions as a way to encourage competition, with the aim of generating better prices for passengers, more efficient service, and route diversification. On August 9, Somon Air began direct flights every Sunday between Dushanbe and Jeddah, Saudi Arabia. In June, it also started a weekly direct route between the Tajik capital and Tbilisi, Georgia. In April, the airline introduced a new weekly route between Dushanbe and Ufa in western Russia. Operating since 2009, privately owned Somon Air says it is Tajikistan’s “national air carrier.”

Uranium

Kazakh Uranium for Asia: Japan Returns for Fuel, South Korea Expands Cooperation

Kazakhstan accounts for around 40% of global uranium production. China already receives not only raw material from the country but also finished fuel assemblies; Japan is signing new contracts after bringing some of its reactors back online; and South Korea is expanding cooperation with Kazakhstan’s nuclear industry. Kazakhstan itself, which for decades exported almost all of its uranium, is preparing to build its own nuclear power plants. These developments are gradually changing the country’s place in Asia’s nuclear energy sector. In December 2025, Kazatomprom, the world’s largest producer of natural uranium, agreed on new supplies with Kansai Electric Power, one of Japan’s major nuclear power operators. The agreement for the supply of uranium oxide concentrate, U₃O₈, was signed during events connected with a visit by a Kazakh delegation to Japan. This is not finished reactor fuel. U₃O₈, known in the industry as yellowcake, must undergo conversion, enrichment, and fuel fabrication after mining. For Kansai, the agreement provides another source of raw material for its nuclear fleet, while for Kazakhstan it continues cooperation with the Japanese company that began almost two decades ago. Japanese demand is rising again after a prolonged decline. The Fukushima Daiichi nuclear disaster in March 2011 led to the gradual shutdown of all the country’s commercial reactors. Restarts began in 2015 after new safety requirements were introduced. In February 2025, the Japanese government approved an energy policy that envisages increasing nuclear power’s share of electricity generation to around 20% by 2040. To achieve this, Tokyo will need not only to restart existing reactors but also to secure their fuel supply. Kansai has a particularly important role in this process. The company operates seven reactors at three sites: Mihama, Takahama, and Ohi. In 2025, it also resumed work to assess the possibility of building a new reactor at the Mihama site. No final decision on construction has yet been made. Kansai’s links with Kazakhstan began long before the current revival of Japan’s nuclear energy sector. In 2006, the company and Sumitomo joined the APPAK uranium mining project in southern Kazakhstan. Kazatomprom currently owns 65% of the company, Sumitomo 25%, and Kansai 10%. APPAK develops the western section of the Mynkuduk deposit in the Turkistan region. For the Japanese company, this provides a presence directly at the source of the raw material. For Kazakhstan, the partnership became one of the first major examples of Asian energy companies participating in its uranium mining industry. China Already Receives Finished Fuel Kazakhstan has gone further with China than simply supplying uranium concentrate. Ulba-FA operates in Ust-Kamenogorsk as a joint venture between the Ulba Metallurgical Plant and China’s CGNPC-URC. The Kazakh side owns 51% and the Chinese side 49%. The plant produces fuel assemblies for Chinese nuclear power plants. Industrial production began in 2021. In December 2022, the first shipment was sent to China, containing just over 30 tonnes of low-enriched uranium in finished fuel assemblies. By the end of 2024, the plant had reached its design capacity of 200 tonnes a year....

Caspian Pipeline Consortium

Black Sea Risks Elevate Azerbaijan and Turkey in Kazakhstan’s Export Strategy

Bloomberg reported on August 8 that the Turkish authorities were withholding or delaying transit permission for some vessels bound through the Dardanelles for Novorossiysk. Some applicants were reportedly told that permits were not being issued, while others faced additional review. The practice appeared selective: vessels bound for some other Black Sea destinations continued to transit, while some Ukraine-bound vessels were also reportedly affected. On August 9, however, Turkish officials told Reuters that shipping through the Turkish Straits was proceeding smoothly and described the actions as temporary security measures rather than an ongoing restriction. The reported restrictions followed a sharp increase in attacks on commercial shipping around the Black Sea, including Turkish-linked vessels near Novorossiysk. Turkey’s Foreign Ministry expressed concern after attacks on the Turkish-owned Yaşar and Nadezhda and called on Russia and Ukraine to ensure navigational safety. Novorossiysk is especially important for Kazakhstan, because the Caspian Pipeline Consortium (CPC) terminal there handles the overwhelming majority of its oil exports. Although the CPC pipeline itself remains operational, the episode showed how quickly traffic serving Kazakhstan’s principal oil-export outlet could face an additional constraint. The events shed light on an export strategy Kazakhstan began developing several years before the current problems. Tokayev’s July 2022 instructions addressed both oil-export diversification through the Trans-Caspian route and alternative transport chains for other cargo. In particular, he called for greater use of Kazakhstan’s Caspian ports and the development of alternative railway routes. Later that year, KazMunayGas (KMG) and SOCAR established a framework for moving Kazakhstani oil from Aktau across the Caspian Sea and onward through the Baku–Tbilisi–Ceyhan pipeline, initially for up to 1.5 million tons annually. Kazakhstan, Azerbaijan, Georgia, and Turkey also adopted a 2022–2027 roadmap to remove bottlenecks along the Middle Corridor. Kazakhstan continued to develop transport links with Russia and China as it expanded Trans-Caspian routes through Azerbaijan, Georgia, and Turkey. The strategy extended Kazakhstan’s longstanding geopolitical multi-vector policy, which balances relations with partners in multiple directions, into the geoeconomic sphere. Tokayev made the combination explicit in his 2023 State of the Nation address. Relations with Turkey had meanwhile been elevated to an enhanced strategic partnership in May 2022, including transport cooperation and the Baku–Tbilisi–Kars railway. Kazakhstan and Azerbaijan deepened their strategic and allied cooperation later that year, likewise emphasizing transport and logistics. Closer ties with Azerbaijan and Turkey widened Kazakhstan’s options without displacing established routes through Russia. The CPC pipeline remains so dominant in Kazakhstan’s oil exports that no other existing route approaches its present scale. Of the 78.7 million tons of oil that Kazakhstan exported in 2025, the Energy Ministry reported the volume moving through the CPC pipeline at 64.8 million tons (the CPC itself reported about 63 million tons), meaning that more than four-fifths of Kazakhstan’s exported oil depended on the CPC system. Kazakhstan moved only about 1.4 million tons through the Aktau–Baku–Ceyhan (ABC) route in 2024, and about 1.3 million tons in 2025. Diversification cannot at present mean replacing CPC. The Baku–Tbilisi–Ceyhan (BTC) pipeline gives Kazakhstani oil a westbound egress...

Transit Corridors

Afghan Traders in Ashgabat Discuss Proposed Turkmenistan-Afghanistan Transit Corridor

A delegation from the Afghanistan Chamber of Commerce and Investment was in Turkmenistan in recent days as the two countries explore ways to boost trade and develop transit corridors, according to Afghan state media. Mawlawi Fazal Mohammad Saber, Afghanistan’s chargé d'affaires in the Turkmen capital of Ashgabat, met the group of Afghan traders during their visit, the National Radio and Television of Afghanistan, also known as RTA, reported on Thursday. The Afghan delegates and their counterparts in Turkmenistan discussed a proposal to create a new transit corridor from the Turkmen city of Turkmenabat to the northern Afghan city of Mazar-e-Sharif, according to TOLOnews, a news organization based in Kabul. It said the Afghan side had invited Turkmenistan to send a delegation of 100 traders and investors to Afghanistan. Turkmenabat is an economic hub in eastern Turkmenistan that is close to the border with Uzbekistan. Mazar-e-Sharif is the biggest city in northern Afghanistan and is a significant transit point for trade in Central Asia. Mazar-e-Sharif is closely linked to Uzbek trade and transport networks, though Turkmenistan has also been working to expand its economic presence in the city. The latest outreach between Afghanistan and Turkmenistan reflects a wider policy among Central Asian countries to expand economic ties with Taliban authorities in Kabul and increase access to South Asian and other markets, adding to the landlocked region’s options for trade at a time of geopolitical uncertainty. The leadership of those countries retains concerns about the security situation in Afghanistan, but hopes that engagement will help to stabilize their southern neighbor. Kazakhstan and Uzbekistan are key drivers of Central Asia’s growing relationship with Afghanistan. One of the high-profile projects featuring Ashgabat’s involvement is the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, which has faced years of delays and challenges, including heightened Afghan-Pakistani tensions.

Urban Air Mobility

Kazakhstan Advances Air Taxi Plans After First Passenger Flight

Kazakhstan has taken another step toward launching autonomous air taxis after completing the country's first passenger flight aboard a pilotless electric aircraft. The demonstration flight of the Chinese-built EH216-S took place in Astana during the Games of the Future 2026. Transport Minister Nurlan Sauranbayev became the first passenger to fly aboard the aircraft in Kazakhstan, later describing the experience as "not frightening at all." The demonstration marks the beginning of preparations for the practical deployment of urban air mobility. Initially, the aircraft are expected to operate short sightseeing flights lasting between five and 30 minutes. Their role could later expand to include emergency medical response, the delivery of medicines, wildfire support and other emergency services. Infrastructure for the new transport system is planned in Astana, Almaty and Alatau City. According to the Ministry of Transport, Kazakhstan has already adopted the core regulatory framework governing eVTOL aircraft and vertiports. Rules for unmanned air traffic management are also in place. Developed by China's Guangzhou EHang Intelligent Technology Co. Ltd., the two-seat EH216-S electric vertical take-off and landing aircraft can reach speeds of up to 130 km/h and fly as far as 35 kilometers on a single charge. During the demonstration, it was operated remotely from a ground control station. Sauranbayev said confidence in the technology was reinforced by the aircraft's operational experience in China. Alongside the flight demonstrations, EHang is discussing the possible localization of aircraft production in Kazakhstan. According to the company's sales director, Darren Xiao, potential manufacturing partners include Kazakh vehicle producers Allur and QazTehna. As previously reported by The Times of Central Asia, Alatau City, currently under construction near Almaty, is expected to become one of the first locations in Kazakhstan to introduce regular air taxi services as part of a new urban transport network.

Middle Corridor

Aral–Caspian Highway Project Advances Kazakhstan’s Bid for Eurasian Logistics Leadership

Kazakhstan has begun building an 800-kilometer highway that will give freight moving east and west a shorter road connection to the Caspian ports of Aktau and Kuryk. The government says the project could cut nearly 1,000 kilometers and up to three days from journeys between Europe and China, while improving Kazakhstan’s access to European and regional markets. President Kassym-Jomart Tokayev launched construction of the Beineu–Saksaulsk highway on August 3, and ordered its completion by 2029. He proposed calling it the Aral–Caspian Highway because it will run from Saksaulsk, near the Aral Sea, west to Beineu and the road network serving Kazakhstan’s Caspian ports. At Saksaulsk, three routes meet. The Kyzylorda road runs southeast to the Western Europe–Western China highway. The Ulgaysyn road continues northwest toward Aktobe. The new highway will run west to Beineu, from where roads lead to Aktau and Kuryk. The result is a more direct connection between southern Kazakhstan, the Aktobe corridor, and the Caspian coast, as outlined in the government’s wider road program. The government is reconstructing and expanding the Kyzylorda–Saksaulsk and Ulgaysyn–Saksaulsk sections alongside the new highway. The three projects cover a combined 1,574 kilometers. The authorities expect annual freight volumes along the routes to rise 2.5-fold to 13.2 million tons and say construction will create more than 10,000 jobs. Tokayev described the change as adding “horizontal connections” to Kazakhstan’s historically “vertical transportation networks.” His stated goal is to transform Kazakhstan into “one of the leading logistics hubs connecting Europe and Asia.” The road will feed into the Trans-Caspian International Transport Route, or Middle Corridor. Goods can move west from Kazakhstan across the Caspian, Azerbaijan, Georgia, and Türkiye, or east along the same route into Central and East Asia. The corridor gives European companies another path into Central Asian markets and gives Kazakhstan additional options for reaching Europe. The corridor is often presented as a China–Europe land-bridge, but the World Bank’s analysis expects most of its future traffic to be generated within the corridor region. Its modeling projects trade between Kazakhstan, Azerbaijan, and Georgia and the European Union to rise by 28% by 2030, while intercontinental freight remains below 40% of total volume. The commercial case therefore includes Kazakh exports moving west, European goods moving east, and regional cargo that never travels the full distance between Europe and China. Europe is already supporting parts of the network. The EU’s €30 million Trans-Caspian transport program backs preparatory work for the modernization of the Beineu–Saksaulsk road and improvements at Aktau. In June, Kazakhstan and European partners announced $462 million in transport agreements, including financing for the Aktobe–Ulgaysyn road and cooperation with A.P. Moller-Maersk on container shipping along the Middle Corridor. Kazakhstan also enters the competition with infrastructure already in use. It has a direct border with China, established railways carrying freight across the country, and operating Caspian ports. Uzbekistan is advancing the China–Kyrgyzstan–Uzbekistan railway and other routes, but The Times of Central Asia has previously reported that Kazakhstan retains the stronger position for now because several of...