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China

Kazakhstan Turns to China and Hong Kong for Deals, Yuan Debt, and Market Access

Kazakhstan has opened a new phase in its economic ties with China, with a large package of Hong Kong and mainland Chinese agreements arriving alongside Kazakhstan’s first sovereign borrowing in China’s domestic bond market. The two steps show Astana is moving beyond trade growth into finance, listings, yuan debt, and China-linked capital for infrastructure and industry. On June 2, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin met a delegation of about 70 business representatives from Hong Kong and mainland China. Kazakhstan’s government said the group included 40 Hong Kong companies and 30 mainland Chinese companies working in finance, logistics, technology, energy, industry, and professional services. The visit produced four intergovernmental memoranda and 42 commercial agreements. Together, they covered aviation, finance, trade, innovation, technology, the digital economy, and green development. Hong Kong’s government gave a separate count, saying its business delegation had so far concluded 43 memoranda and agreements in Kazakhstan. The same statement said Hong Kong and Kazakhstan would move ahead with exploratory talks on a comprehensive double-taxation agreement and an investment promotion and protection agreement. A Hong Kong airline plans to launch direct flights to Almaty in the first quarter of 2027, which would add a practical link to the new finance and trade agenda. Officials discussed bond issuance, yuan funding, listings by Kazakh companies in Hong Kong, joint investment funds, and large investment projects. Baiterek National Managing Holding signed cooperation documents with Bank of China (Hong Kong), Invest Hong Kong, and Standard Chartered Hong Kong. Hong Kong Exchanges and Clearing Limited, which operates the Hong Kong Stock Exchange, also signed two memoranda in Kazakhstan, including one with the Astana International Exchange. The two exchanges plan to work on cross-border listings of shares and debt securities. The agreements came days after Kazakhstan completed its debut sovereign panda bond, a renminbi-denominated instrument sold in mainland China by a foreign issuer. The Finance Ministry raised 3.4 billion yuan (about $500 million) through three-year sovereign bonds. The bonds carried a 1.9% yield, and demand exceeded supply by two times. The issue was listed on the Beijing Financial Assets Exchange and the Astana International Exchange. The sovereign issue followed earlier yuan deals by state-linked Kazakh issuers. Development Bank of Kazakhstan placed 2 billion yuan in three-year yuan-denominated Eurobonds in September 2025, the first such issue in Central Asia. KazMunayGas raised 1.25 billion yuan in October through a five-year offshore yuan-denominated bond. Samruk-Kazyna, Kazakhstan’s sovereign wealth fund, closed the order book for 3 billion yuan in debut panda bonds in April 2026. Together with the sovereign bond, those issues total 9.65 billion yuan. The figures cover more than central-government borrowing. The National Bank of Kazakhstan defines external debt as liabilities of residents to non-residents. It includes debt obligations of both the public and private sectors. A country breakdown drawn from National Bank data shows Kazakhstan’s external debt to Chinese creditors rose to $12.87 billion at the start of 2026, up from $9.29 billion at the end of 2024. The new panda...

Brain Institute

Kazakhstan Opens Central Asia’s First Brain Research Institute

Kazakhstan has opened Central Asia’s first specialized Brain Institute, a new research and education center focused on neuroscience, brain health, and artificial intelligence-assisted medical research, officials said. The institute was launched at Al-Farabi Kazakh National University (KazNU) in Almaty and is the first facility of its kind in Kazakhstan and the wider Central Asian region. The center builds on KazNU’s Cognitive Neuroscience Center, established in 2018, and is intended to expand research into brain development, neurological disorders, cognition, and multilingualism, while training a new generation of neuroscience specialists. Research at the institute will use advanced equipment, including a 3-Tesla magnetic resonance imaging scanner, high-density electroencephalography systems, functional near-infrared spectroscopy technology, and AI and big data analytics tools. Led by Professor Almira Kustubayeva, the institute brings together laboratories specializing in cognitive, behavioral, and computational neuroscience, as well as neurolinguistics. Its research areas will include brain development, neurodegenerative diseases, decision-making, emotional regulation, and the neurological aspects of multilingualism. Scientists at the institute also plan to develop new diagnostic and predictive biomarkers that could improve the detection and treatment of neurological and cognitive disorders. The opening coincided with the 80th anniversary of Kazakhstan’s National Academy of Sciences (NAS) and is part of the government’s push to develop the country’s scientific and technological capacity. Speaking at the launch ceremony, KazNU rector Zhanseit Tuimebayev said the development of science and innovation had been identified as a national priority by President Kassym-Jomart Tokayev. NAS president Akylbek Kurishbayev described the project as an example of cooperation between academic and scientific institutions aimed at developing Kazakhstan’s research base. Kazakhstan has increased investment in scientific research and medical innovation in recent years. Earlier this year, researchers at the Kazakh Research Institute of Processing and Food Industry announced work on an antioxidant dietary supplement intended to help prevent cancer and cardiovascular disease. Last year, surgeons from Kazakhstan carried out Uzbekistan’s first robot-assisted joint replacement procedures using the MAKO robotic surgical platform. President Tokayev has also announced plans to establish two science cities in Almaty and Kurchatov as part of efforts to develop nuclear energy, nuclear medicine, and advanced scientific research.

Caspian Green Energy Corridor

Kyrgyzstan Eyes Role in Trans-Caspian Green Power Route

Kyrgyzstan has signaled interest in taking part in the Central Asia-Azerbaijan Green Energy Corridor, a regional initiative aimed at expanding renewable electricity links across the Caspian region. The issue was discussed during a meeting between Azerbaijan’s Energy Minister Parviz Shahbazov and Kyrgyzstan’s Energy Minister Taalaibek Ibraev on the sidelines of Baku Energy Week on June 1. The ministers said the project would help integrate regional energy systems, strengthen energy security, and facilitate access to new markets for electricity generated from renewable sources. Ibraev said Kyrgyzstan’s hydropower potential and its role within the Unified Energy System of Central Asia made it a logical participant in the initiative. He added that Kyrgyzstan’s involvement would enhance the sustainability and reliability of green electricity supplies along the Caspian route. Kyrgyzstan currently faces seasonal electricity shortages and relies on imports to meet domestic demand. However, authorities expect the country to generate significant exportable surpluses once several large hydropower projects, including the long-delayed Kambarata-1 dam, are completed. The ministers also discussed fuel cooperation. The Kyrgyz side proposed increasing imports of Azerbaijani diesel as the country seeks alternatives amid rising prices for fuel traditionally supplied from Russia. The Central Asia-Azerbaijan Green Energy Corridor is one of several flagship projects aimed at strengthening energy connectivity between Central Asia, the South Caucasus, and European markets. Speaking at the Investment Forum on Energy Transition in Central Asia, held during Baku Energy Week and organized jointly by the International Renewable Energy Agency and Azerbaijan’s Energy Ministry, Shahbazov described the initiative as a key component of regional energy integration. According to Shahbazov, a strategic partnership agreement previously signed by Azerbaijan, Kazakhstan, and Uzbekistan laid the foundation for the development of a Trans-Caspian Energy Corridor. “The establishment of the strategically important Trans-Caspian energy corridor, which will interconnect the power systems of our countries, is fully aligned with the key priorities of this policy,” Shahbazov said. He added that the project could also strengthen the Middle Corridor by creating a green energy link connecting Europe with Asia and China via the Caspian Sea. Shahbazov said the feasibility study for the Caspian-Black Sea-Europe Green Energy Corridor is expected to be completed by July 2026, while the feasibility study for the Central Asia-Azerbaijan Green Energy Corridor is scheduled for completion in May 2027.

Agricultural Exports

Kazakhstan’s Agricultural Exports to Iran Nearly Double in 2025

Kazakhstan’s agricultural exports to Iran nearly doubled in 2025, driven by a sharp increase in grain shipments, Agriculture Minister Aidarbek Saparov said during talks with Iranian Minister of Industry, Mine and Trade Seyyed Mohammad Atabak. According to Kazakhstan’s Agriculture Ministry, agricultural trade between the two countries rose 55.8% year-on-year to $342 million in 2025, accounting for 79% of total bilateral trade. Exports of Kazakhstan's agricultural products increased 97% to $238.5 million. Grain exports more than doubled to 1.1 million metric tons, valued at $225.3 million, Saparov said. “Kazakhstan attaches special importance to expanding cooperation with Iran in the agricultural sector. Our markets complement each other, as demonstrated by the steady growth in bilateral agricultural trade,” he said. The ministers discussed prospects for expanding trade in agricultural products, investment cooperation, and the development of joint projects in the agro-industrial sector. Particular attention was given to increasing Kazakhstan's exports of grain, beef, and lamb that meet international veterinary and halal standards. The two sides also highlighted the potential for expanding supplies of vegetable oils and other food products to the Iranian market. Atabak said Iran was interested in expanding economic ties with Kazakhstan, including through increased agricultural trade, improved transport links, and joint processing projects. “Kazakhstan is an important partner for Iran in the region. We are interested in increasing bilateral trade, expanding agricultural supplies, developing logistics routes, and implementing joint projects in processing and agro-industrial cooperation,” he said. Saparov also invited Iranian investors to participate in projects involving agricultural production and value-added processing, including grain and oilseed processing facilities. The growth in agricultural trade comes despite disruptions to some bilateral projects earlier this year. In April, Kazakhstan’s Deputy Foreign Minister Arman Issetov said several joint projects with Iran had been suspended because of military hostilities there. Trade ties have nevertheless continued to expand. In May, Kazakhstan's vegetable oil producers launched pilot shipments of rapeseed and sunflower oil to Iran via the Caspian Sea, opening a new export route for the sector. Kazakhstan and Iran have set an ambitious target of increasing bilateral trade to $1 billion in the coming years, with plans to double that figure over the longer term, following agreements reached during Iranian President Masoud Pezeshkian’s visit to Astana last year.

Caspian Region

Why the Caspian Is Becoming Eurasia’s New Energy Crossroads

Russia’s war in Ukraine and instability in the Middle East are accelerating the emergence of a new Eurasian energy architecture, with the Caspian region increasingly at its center. In international politics, moments when several global crises simultaneously create opportunities for new centers of influence are rare. Today, a vast area stretching from Central Asia to the South Caucasus is experiencing just such a moment. Russia’s invasion of Ukraine has fundamentally reshaped Europe’s approach to energy security. Tensions in the Middle East have also raised questions about the reliability of traditional energy supply routes. Meanwhile, the global energy transition is driving demand for both clean-energy sources and alternative transport corridors. Against this backdrop, the Caspian region is no longer viewed as a peripheral economic space. It is increasingly emerging as a critical hub in Eurasia’s evolving energy system. Baku Energy Week 2026 shows how far this shift has come, highlighting Azerbaijan’s transformation from a traditional oil and gas producer into a strategic connector linking Central Asia, Türkiye, Europe, the United States, and the Middle East. One of the forum’s most significant political signals came in the form of a message from U.S. President Donald Trump to participants. His remarks went beyond a routine diplomatic greeting and reflected a broader shift toward a more pragmatic view of global energy policy. Trump described the United States as a strong supporter of Azerbaijan’s oil and gas industry and said the U.S.-Azerbaijan energy partnership would become more important in the years ahead. For much of the past decade, Western energy strategies appeared increasingly focused on rapid decarbonization and climate objectives. However, rising energy prices, Europe’s energy crisis, and growing global electricity demand have prompted policymakers to reassess those priorities. Trump openly reaffirmed support for the oil and gas sector and emphasized that the United States remains a long-standing energy partner of Azerbaijan. More importantly, Washington appears to recognize Baku’s strategic role in global energy security. The Trump administration increasingly views energy security as an element of geopolitical competition and is prepared to support projects that diversify supplies of hydrocarbons and critical raw materials. Speaking at the opening of Baku Energy Week, Azerbaijani President Ilham Aliyev said Trump’s policies had helped return energy policy to “normality.” Aliyev also noted that the oil and gas industry had faced sustained pressure from advocates of a rapid energy transition. It was therefore no coincidence that Azerbaijan signed a series of agreements during the forum with major American companies, including Chevron, JPMorgan, Oracle, and Comstock Resources. Particularly noteworthy was a cooperation agreement covering critical minerals and rare earth elements. For Washington, access to these resources is increasingly a matter not only of energy policy but also of technological and national security amid intensifying competition with China. In effect, Washington is beginning to view Azerbaijan as an important platform in a changing Eurasian energy map. While Washington is signaling renewed political backing, Turkish President Recep Tayyip Erdoğan remains one of the principal architects of the region’s practical integration. Over the past...

Textile Industry

Turkmenistan Showcases Textile Industry as Labor Concerns Linger

Textile executives from Asia and Europe will gather this week at an event in Turkmenistan, which says it is aligning its textile industry with international standards despite continuing concerns about labor conditions during the annual cotton harvest. More than 30 Turkmen firms are registered to participate in the TurkmenTextile Expo in Ashgabat on June 4-6, according to event organizers. More than 40 companies from China, Turkey, and Italy are also listed as Turkmenistan seeks to upgrade an industry that is critical to the national economy. Discussion topics include brand strategies, the new textile technology for deriving fibers from algae, and the role of traditional textiles in contemporary art and fashion in Central Asia. There will be a fashion show and a presentation about the Eurasian Council for Craft & Design, a platform that was launched this year to promote regional designers and artisans. Katharina Schaus, the German founder of a consultancy called it fits – Organic Textile Partner, will speak about international trends in sustainable cotton production and textile certification. Another speaker, Carola Deiners, will address “responsible sourcing and the expectations of international buyers.” There have long been international concerns and calls for boycotts because of the reported mobilization of public employees and the use of forced labor, including children, in the annual cotton harvest in Turkmenistan. While the government has promised to improve working conditions and has collaborated with international inspectors, critics point to periodic state denials of the problem and an alleged gap between labor rules and their implementation. This year, the International Labour Organization, or ILO, said in a report on the 2025 harvest in Turkmenistan that there had been some progress on working conditions, particularly remuneration, but that some contractual protections and safety and health measures were still lacking. The report said there was still public employee involvement in the harvest and reported recruitment through workplace or administrative channels, as well as the perception of negative consequences for refusal to work in cotton. There was “a clear increase in children’s presence in cotton fields compared to 2024, despite strengthened legal prohibitions,” according to the report. Turkmenistan, meanwhile, has said it is increasing investment in spinning, weaving, knitwear, sewing production, and other aspects of its textile industry. Part of that effort has included the introduction of new production technologies from top textile companies in Japan and Europe. While there is a strong focus on exports, Turkmenistan’s Ministry of Textile Industry launched an online store called Dokma as part of a plan to digitalize the domestic economy. Through Dokma, state media reported last year, “customers can order hundreds of types of textile and leather footwear products — from enterprises within the ministry’s system as well as from private producers.”