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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...

Bilateral Investment

Kyrgyzstan’s Bilateral Development Funds Back Industry and Energy Projects

Kyrgyzstan has established bilateral development funds with Russia, Uzbekistan, Azerbaijan and Hungary that are financing manufacturing and energy projects across the country. The Russian-Kyrgyz Development Fund (RKDF) is by far the largest. In November 2025, President Sadyr Japarov said it had invested more than $1 billion in Kyrgyzstan and financed more than 3,500 projects since its creation. At the time, the fund was participating in 14 hydropower and renewable energy projects worth more than $175 million. One of them is the 25-megawatt Bala-Saruu hydropower plant in Talas Region, for which the RKDF allocated $10 million to help complete construction. The newer Azerbaijan-Kyrgyz Development Fund has also begun financing identifiable projects. By November 2025, it had allocated $14.4 million to four projects worth a combined $52.7 million. They included KG TEX, a garment factory with 300 jobs, and the 9-megawatt Tyup small hydropower plant. The Uzbek-Kyrgyz Development Fund financed the 6.7-megawatt Kogart hydropower plant. The project began in August 2022 and was ready for operation by July 2024, according to the fund. In May 2026, the Hungarian-Kyrgyz Development Fund opened a long-term credit line for NEMAN-PHARM. The first financing stage was earmarked for purchasing pharmaceutical products in Hungary. Projects financed by the fund must include a Hungarian component of at least 30%. Its published loan rates range from 1.5% to 7.25% a year, with terms of up to 10 years. These institutions are operating during a period of rapid economic expansion in Kyrgyzstan. Gross domestic product grew by 11.9% year-on-year in the first half of 2026. The International Monetary Fund has warned of emerging signs of overheating and expects re-export and trade-related activity to plateau. The number of state-backed financing options is also set to increase. The Turkic Investment Fund has begun practical operations and is expected to provide financing for joint projects across Central Asia. For Kyrgyzstan, these funds provide access to long-term capital for projects that may struggle to secure conventional financing. Their success will ultimately depend on whether the businesses and infrastructure they support remain viable and repay their loans.

Caspian Pipeline Consortium

Shipowners Pull Back from CPC as Export Recovery Falters

The Caspian Pipeline Consortium’s Black Sea export operations have become intermittent once again following a brief restart. Eight trading sources told Reuters that CPC repeatedly suspended operations this week and was closed again on August 5, as safety concerns made shipowners reluctant to accept CPC voyages. Four tankers completed loading after the July 30 attacks, and two had left the terminal area by early this week. Those departures confirmed that cargo could still move, but they did not show that the terminal had returned to normal. Russian transport group FESCO suspended operations in the area on August 4, while one CPC Blend seller needed several attempts to secure a vessel for a recent cargo. CPC declined to comment. Kazakhstan’s Energy Ministry had said on August 1 that a complete shutdown was not under consideration and the situation was under control. A Brief Restart The latest disruption followed two attacks near the terminal on July 30. NISSOS SIFNOS was struck while loading Tengizchevroil crude at single-point mooring SPM-3. MARATHI was hit while waiting about six nautical miles offshore. Both crews were unharmed, fires were extinguished, and no pollution was reported. Chevron told The Times of Central Asia at the time that it was “aware of reports of an incident involving a vessel loading at Caspian Pipeline Consortium (CPC) facilities near Novorossiysk. The safety of personnel, the protection of the environment and integrity of assets are our top priorities.” CPC stopped oil loading after the event, but said its pipeline facilities were operating normally. On July 31, Chevron CEO Mike Wirth said that oil was flowing and tankers were loading. By August 3, four tankers had completed loading at the terminal; two had departed, while at least three more remained nearby. Exports had resumed briefly, but the restart proved fragile. The Energy Ministry said CPC was receiving 100,000 metric tons of crude a day on August 1, equal to about 730,000 barrels per day. “The CPC continues to receive oil from shippers, while storage tanks are being filled,” the ministry said. It added that higher intake depended on tankers arriving on time. The 1,511-kilometer pipeline can continue moving crude into terminal storage while maritime exports slow or stop. If the tanks fill, CPC may have to restrict intake, forcing producers in Kazakhstan to cut output. Freight costs reflected the risk. The daily charter rate for a tanker calling at CPC reached $338,000 by the end of last week, almost double the level from a month earlier. August-loading CPC Blend cargoes were offered this week at nearly $4 a barrel below Brent. The grade had traded at a premium only a few weeks earlier. War-risk insurance for calls at Black Sea terminals has risen to as much as 2% of a vessel’s value, from around 1% two weeks earlier, according to insurance sources. Production Damage Spreads Preliminary operational data put Kazakhstan’s crude oil and gas condensate production for July at 7.6 million metric tons, or about 1.85 million barrels per day. That was...

Space Technology

Uzbekistan’s AI Module Reaches Orbit Aboard Samarqand-2028 Satellite

A Chinese-built Earth observation satellite carrying artificial intelligence developed by Uzbek specialists was launched from a sea platform off China’s Shandong province on August 5. The Samarqand-2028 satellite was launched alongside Lampung-1, another Earth observation satellite from China’s STAR.VISION Aerospace. A livestream showed the rocket lifting off from the platform. STAR.VISION developed Samarqand-2028, while specialists from Uzbekistan’s national space agency, Uzbekcosmos, created its onboard AI module. Uzbekcosmos said this was the first time Uzbek specialists had participated in developing artificial intelligence for a satellite. Samarqand-2028 carries a hyperspectral sensor that records reflected light in 22 wavelength bands. A conventional color image records visible light in only three broad bands, while the additional bands can reveal details difficult to see with the human eye. Uzbekcosmos plans to use the images to create national maps of cotton and wheat cultivation and make initial assessments of air quality. As The Times of Central Asia reported on August 4, processing images onboard the satellite could reduce the amount of data transmitted to Earth and allow useful information to reach officials more quickly. Samarqand-2028 is separate from Uzbekistan’s first national scientific satellite, Mirzo Ulugbek. Seven Uzbek engineers studying at Kyushu Institute of Technology in Japan have begun developing the 6U satellite, which is scheduled for launch in 2028. The program is intended to train specialists and establish a domestic satellite engineering team. The next stage will be commissioning Samarqand-2028 and testing whether its AI module functions as intended in orbit. Its practical value will depend on whether Uzbek institutions can convert the imagery into useful information for agriculture and environmental monitoring.