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Agriculture

Kazakhstan Considers Supporting Dairy Sector to Curb Inflation

Kazakhstan’s government is considering additional support for dairy processors and bakeries as part of broader efforts to slow inflation and stabilize prices for essential food products. The proposal was discussed during a government meeting focused on inflation dynamics and price trends for socially significant food products. According to Aizhan Bizhanova, Kazakhstan’s First Vice Minister of Trade and Integration, inflation in the country has been slowing for five consecutive months, declining from 12.9% in September 2025 to 11.7% in February 2026. Food inflation has also continued to ease, falling from 13.5% in December and 12.9% in January to 12.7% in February. The ministry attributes the slowdown in part to the expansion of the list of socially significant food products subject to price regulation. The list has been expanded from 19 to 31 items, and since the beginning of the year authorities have opened more than 800 administrative cases related to violations of pricing rules. “During the first week of March, the price index for socially significant food products increased by 0.1%. At the same time, dairy products recorded price growth, mainly due to rising costs of raw milk,” the government’s press service said in a statement. Additional pressure on prices has also come from higher energy costs and increased production expenses. Dairy products account for a significant share of Kazakhstan’s food inflation, estimated at about 6.3%. The Ministry of Trade and Integration therefore proposed exploring mechanisms to support dairy processing enterprises in order to reduce production costs and stabilize prices. The government also discussed possible support measures for Kazakhstan’s bakery sector. Among the options considered were providing bakeries with discounted grain and flour and exploring the possibility of lowering railway tariffs for transporting raw materials. Officials suggested working with the national railway operator Kazakhstan Temir Zholy to reduce transportation costs for the sector. Participants at the meeting noted that prices traditionally rise in March due to seasonal factors. However, the Ministry of Trade and Integration plans to mitigate the impact through additional price discount campaigns and expanded agricultural fairs. Kazakhstan also continues to use a “green corridor” mechanism to facilitate the import of vegetables from neighboring countries. Deputy Prime Minister and Minister of National Economy Serik Zhumangarin, who chaired the meeting, instructed authorities to conduct a detailed review of pricing at 42 dairy processing enterprises operating in Kazakhstan. The aim is to identify effective mechanisms for supporting producers and stabilizing consumer prices. Officials also highlighted slow releases of vegetables from regional stabilization funds, which supply products to the market at fixed prices. The slow pace was particularly noted in the Aktobe, Zhambyl, Kyzylorda, and Ulytau regions. Zhumangarin instructed the Ministries of Agriculture and Trade to inspect regional stabilization funds and verify the actual availability of products reported by local authorities. Despite recent improvements, several international organizations expect inflation in Kazakhstan to remain elevated in 2026. S&P Global Ratings forecasts inflation will reach about 11% by the end of the year. The Eurasian Development Bank predicts inflation could fall to 9.7% by...

Credit Ratings

Moody’s Upgrades Tajikistan’s Credit Rating to B2, Citing Economic Improvements

International rating agency Moody’s has upgraded Tajikistan's long-term sovereign credit rating to B2 with a stable outlook, according to the National Bank of Tajikistan. According to the financial regulator, Tajikistan has been cooperating with Moody’s since 2014, and the latest decision marks the first time the country’s sovereign rating has been raised to the B2 level. The National Bank said the upgrade reflects the government’s ongoing economic reforms and policy measures aimed at strengthening the country’s financial system and macroeconomic stability. Moody’s cited several factors behind the upgrade from B3 to B2, including sustained economic growth in recent years, improvements in fiscal management, and continued positive macroeconomic trends. The agency also highlighted progress in structural reforms, reduced risks related to public debt, and improvements in public financial management. The stable outlook indicates Moody’s expectation that Tajikistan will maintain prudent fiscal and monetary policies in the coming years. A B2 sovereign rating signals moderate creditworthiness. This means that while the country is capable of meeting its financial obligations, certain economic and external risks remain. Compared with the previous B3 rating, the upgrade reflects a stronger financial position and increased confidence from international financial markets. The stable outlook also suggests that no major macroeconomic shocks are expected in the medium term and that economic risks are considered manageable. Assessments by international rating agencies play an important role for countries seeking access to global financial markets. First, sovereign credit ratings help investors and lenders evaluate a government’s ability to meet its financial obligations, which directly affects borrowing costs and loan conditions. Second, a higher rating increases a country’s attractiveness to international investors. Global financial institutions often rely on such ratings when assessing investment risks, meaning improvements can help attract foreign capital. Credit ratings are also viewed as indicators of economic stability and fiscal discipline, strengthening confidence in government policies among international partners and domestic market participants. In addition, sovereign ratings influence external debt management and help governments raise financing for infrastructure and social development projects. The Moody’s upgrade is not the only positive signal for Tajikistan’s economy. Just a month earlier, another major international rating agency, Standard & Poor’s, improved the outlook on Tajikistan’s long-term sovereign credit rating from stable to positive while maintaining the rating at B. Taken together, the assessments from two leading global rating agencies highlight improvements in Tajikistan’s macroeconomic conditions and point to stronger prospects for financial stability in the coming years.

Agriculture

Kazakhstan Extends Ban on Chicken Egg Imports to Support Domestic Producers

Kazakhstan has decided to extend a ban on chicken egg imports in an effort to support domestic poultry producers. The restriction will also apply to imports from member states of the Eurasian Economic Union (EAEU), despite the absence of customs borders within the bloc. The decision was made during a meeting of the Interdepartmental Commission on Foreign Trade and Participation in International Economic Organizations, chaired by Deputy Prime Minister and Minister of National Economy Serik Zhumangarin. The commission reviewed several key issues affecting the country’s food security and economic policy. “An import ban on chicken eggs will be introduced for six months, including imports from EAEU countries. The relevant order will be adopted by the Ministry of Agriculture,” the government press service said following the meeting. According to the government, Kazakhstan currently has 70 poultry farms, including 34 specializing in egg production, 29 focused on meat production, and seven engaged in breeding and reproduction. In 2025, domestic production of chicken eggs increased by 2.4% to reach 4.57 billion eggs. As a result, local production now covers approximately 98% of domestic demand. Kazakhstan previously introduced temporary restrictions on egg imports in December 2025, when the Ministry of Agriculture imposed a one-month ban on imports of fresh chicken eggs. That measure expired on January 11, 2026. Earlier, a similar restriction had already been in place from April 2025 for six months. Taken together, these measures effectively closed Kazakhstan’s egg market to imports for more than a year. The commission also reviewed the possibility of introducing restrictions on potato exports. After assessing domestic market conditions, however, officials decided not to impose export limits. According to the government, stabilized prices and sufficient domestic supply make it possible to maintain potato exports without additional restrictions. At the same time, requirements for exporters seeking beef export quotas will be eased. The decision takes into account the government’s Comprehensive Livestock Development Plan, which aims to increase Kazakhstan’s cattle population from 7.9 million to 12 million head. The program also seeks to expand Kazakhstan’s beef export potential and open new foreign markets. The Ministry of Agriculture will amend the existing quota distribution rules accordingly. Meanwhile, authorities decided to extend the ban on the export of breeding livestock, including female cattle, as well as young bulls, in order to preserve breeding stock and ensure sufficient supply for domestic meat processors. The restriction also applies to exports to EAEU member states. As previously reported by The Times of Central Asia, Kazakhstan increased revenue from agricultural exports by more than one-third in 2025 compared to 2024.

Shell

Shell Signs New Exploration Deal in Kazakhstan Amid Legal Disputes

British energy company Shell has launched a new exploration project in Kazakhstan despite previously announcing that it would pause new investments in the country. On March 5, it was announced that Shell had signed a contract for geological exploration in the Aktobe region. The company has been involved in several legal disputes with Kazakhstan over subsoil use and had stated that it did not plan to invest further in the country’s energy sector. Geological Exploration Contract The Zhanaturmys site, which has attracted Shell’s interest, covers an area of 1,377 square kilometers and is located in one of Kazakhstan’s most actively developed oil and gas basins. The document was signed by Kazakhstan’s Deputy Energy Minister, Yerlan Akbarov, and Shell’s Senior Vice President and Chair in Kazakhstan, Suzanne Coogan. The contract provides for seismic exploration, data collection, and technical assessments. “The signing of today’s contract for geological exploration is further confirmation of Shell’s commitment to long-term cooperation with the Republic of Kazakhstan. Drawing on our global experience and advanced technologies, we intend to continue contributing to geological exploration and the expansion of the country’s resource base,” Coogan said. The agreement will remain in force until 2032. The project will be implemented under the terms of an improved model contract. According to Kazakhstan’s Energy Ministry, the company will allocate at least 100 million tenge (about $200,000) to finance socio-economic development in the region where the site is located. Shell is currently involved in three projects in Kazakhstan: the North Caspian Production Sharing Agreement (NCOC, 16.81% stake); the Karachaganak Production Sharing Agreement (29.25% stake); and the Caspian Pipeline Consortium (7.4% stake). Kazakhstan produces around 1.8–1.9 million barrels per day and hosts some of the world’s largest offshore reserves in the Caspian Sea. Western energy majors, including Shell, Chevron, ExxonMobil, and Eni, have operated in the country for decades through complex production-sharing agreements. Legal Disputes In February, Shell CEO Wael Sawan said the company would suspend new investments in Kazakhstan while legal proceedings with the government were ongoing. Numerous lawsuits filed by Kazakhstan, with claims amounting to billions of dollars, have reduced the company’s willingness to invest in the country, he said. “This affects our desire to continue investing in Kazakhstan. Although we see many opportunities for investment in the future, we will wait until we have a clearer picture of how things will turn out,” Sawan stated. Karachaganak and Kashagan Kazakhstan is currently involved in several legal disputes with Western oil companies, both in national courts and international arbitration. The cases concern two major oil and gas projects. One of them is Karachaganak. In 2023, the Kazakh government filed a lawsuit against the field's developers over cost deductions. The initial claim amounted to $3.5 billion but later increased to $6 billion after additional claims were filed. The project is operated by a consortium led by Eni and Shell, each holding a 29.25% stake. Other partners include Chevron (18%), Lukoil (13.5%, which has agreed to sell its stake), and KazMunayGas (10%). In January, it was...

Civil Aviation

Kyrgyzstan Signs Deal to Acquire Two Airbus A321 Aircraft

Kyrgyzstan has signed an agreement to acquire two Airbus A321ceo aircraft as part of efforts to expand the country’s civil aviation sector and launch new international routes. The signing ceremony took place on March 5 in Bishkek, where the agreement was signed by Manasbek Samidinov, chairman of the board of Airports of Kyrgyzstan OJSC, and Maurice Prendergast, senior vice president of BBAM Aircraft Leasing & Management. The event was attended by Johan Pelissier, president of Airbus Europe, and Kyrgyz Prime Minister Adylbek Kasymaliev. According to the agreement, the aircraft will be delivered to Kyrgyzstan by the end of 2026. They are intended for the state-owned carrier Asman Airlines, a subsidiary of Airports of Kyrgyzstan. The new aircraft are expected to support the launch of international flights and improve operational capacity. Asman Airlines currently operates three Dash 8 Q400 aircraft, Canadian-made short-haul turboprop planes capable of carrying up to 80 passengers over distances of up to 2,000 kilometers. These aircraft serve domestic routes across Kyrgyzstan after the airline recently restored air connections between Bishkek and several remote regional centers. Speaking at the ceremony, Kasymaliev said that the acquisition of modern and efficient aircraft would help raise Kyrgyzstan’s civil aviation sector to a new level of development. He added that between 2021 and 2025 the number of passengers served at Kyrgyzstan’s airports on domestic and international routes increased by 52%, while the number of flights rose by 53%. Kasymaliev also noted that audits conducted by the International Civil Aviation Organization (ICAO) in 2023-2024 confirmed that Kyrgyzstan’s aviation system complies with international standards. According to the latest audit, the aviation security compliance rate reached 85.76%, a significant improvement compared with previous results. “These achievements create the necessary conditions for Kyrgyzstan to be removed from the European Union’s aviation safety blacklist,” the prime minister said, adding that the final audit by the European Commission is expected in the coming days. Later the same day, President Sadyr Japarov met with Johan Pelissier and Maurice Prendergast to discuss the development of Kyrgyzstan’s aviation sector. During the meeting, Japarov highlighted the rapid modernization of airport infrastructure and the expansion of domestic air routes. While previously only four airports in the country were fully operational, all 11 airports in Kyrgyzstan are now functioning. Construction of a new international airport in Jalal-Abad is also underway. The president also confirmed that Kyrgyzstan is in the final stage of the process to be removed from the European Union’s aviation safety blacklist, with the final inspection expected later this month.

Logistics

Middle East Conflict Disrupts Logistics Routes for Deliveries to Kyrgyzstan

Military activity in the Middle East has caused serious disruptions to logistics routes used to deliver goods to Kyrgyzstan. In particular, the transit of cargo through Iran has completely stopped. This was reported to The Times of Central Asia by the Association of International Freight Forwarders of Kyrgyzstan. According to industry representatives, the auto parts market is already experiencing some of the most significant consequences. A substantial share of goods from the U.S., Europe, and the Middle East is delivered to Kyrgyzstan via the Iranian port of Bandar Abbas on the Persian Gulf. The port is considered a key transit hub through which a large volume of international cargo passes. However, due to the escalating situation in the region, maritime transport along this route has effectively been halted. As a result, many goods that have already been paid for and are intended for delivery to Kyrgyzstan remain stuck in ports of departure or transit zones. “A large volume of cargo used to be transported through the port of Bandar Abbas. We used this route for transit to the Emirates, to Dubai and Sharjah. Now we are effectively cut off from maritime transport. All the countries of the Persian Gulf are closed to us, and there are serious problems with air traffic in this region. A lot of cargo normally goes from Sharjah and Dubai to Kyrgyzstan, but these deliveries have now been suspended,” Igor Golubev, deputy chairman of the Association of International Freight Carriers of Kyrgyzstan, told The Times of Central Asia. According to him, equipment, auto parts, perfumes, and other goods are supplied to Kyrgyzstan from the countries of the Persian Gulf. If the conflict continues and logistics chains are not restored, Kyrgyzstan could face shortages of certain types of products. “Ships from all over the world used to arrive at the port of Bandar Abbas. It served as a transshipment hub from which we received a wide range of goods. Now this transit hub is effectively closed,” Golubev said. The disruptions have affected not only imports but also exports. According to the Association of Carriers, the transit of Kyrgyz cargo to Turkey and Europe, which previously passed through Iranian territory, has completely stopped. At present, more than 30 Kyrgyz trucks carrying goods remain in northern Iran, and their drivers are unable to return home. Additional difficulties have emerged due to fighting between Pakistan and Afghanistan. Kyrgyz logistics companies actively use the port of Karachi in Pakistan, and some cargo has traditionally been delivered to Kyrgyzstan through Afghanistan. This route is now also effectively closed. According to the Association of International Freight Carriers, negotiations are currently underway with Chinese partners on the possible use of alternative logistics corridors. The state-owned organization Kyrgyz Export told The Times of Central Asia that it is closely monitoring the situation and remains in constant contact with carriers. Authorities are also holding talks with Iran and other states in the region while considering alternative routes to restore the import and export of Kyrgyz goods.