Business & Economy - The Times Of Central Asia

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Aviation

Uzbekistan Turns to Georgia and Iraq as Jet Fuel Demand Rises 27%

Uzbekistan says it has arranged aviation fuel imports from Georgia, Iraq, and other countries as changes in regional air traffic drive up demand. President Shavkat Mirziyoyev's office said on August 3 that demand for aviation fuel will reach an estimated 375,000 metric tons from July through December, 27% higher than in the same period in 2025. The government linked the increase to more flights through Central Asia and a rise in services to Uzbekistan, according to an official statement. “Most of this demand will be met by domestic oil refineries,” the president’s office said, adding that alternative import channels, including supplies from Georgia and Iraq, had been established in response to export restrictions imposed by certain partner countries. The statement did not identify the countries imposing the restrictions. It also gave no details about suppliers, import volumes, prices, delivery routes, or whether shipments from Georgia and Iraq have begun. Batumi Oil Terminal resumed handling European-produced aviation fuel in July, while Georgia’s Kulevi refinery does not plan to begin producing aviation kerosene until 2027. Uzbekistan has not said whether the supplies listed as coming from Georgia are produced there or re-exported through the country. State-owned Uzbekneftegaz aims to produce 310,000 tons of aviation fuel in 2026. This is only the company’s production target, not Uzbekistan’s total domestic output. The government has not said how much of the country’s aviation fuel demand will be met by Uzbekneftegaz, other domestic producers, or imports. Uzbekistan's airports handled 64,831 flights during the first half of 2026, up 8% from a year earlier. Passenger traffic rose 16% to more than 8.15 million, according to Uzbekistan Airports data. International services accounted for 47,371 flights and nearly 6.7 million passengers, with Tashkent International Airport handling 40,283 flights, up 7%, while passenger traffic increased 17% to 5.36 million. Tourism is also adding to passenger demand. Uzbekistan recorded 6,565,410 foreign visits for tourism purposes in January-June, up 24.9% from a year earlier, according to the National Statistics Committee. The increase forms part of a wider regional travel boom. However, almost three-quarters of those came from Kyrgyzstan, Kazakhstan, and Tajikistan, which together accounted for 4.9 million arrivals. The total therefore includes substantial land-border traffic and cannot be read solely as an air-passenger figure. Geopolitical disruption is another factor driving demand. The war involving Iran has constricted a main Europe-Asia aviation corridor and forced airlines away from high-risk airspace. Some services are now using a northern arc through the Caucasus and Central Asia, increasing the value of the region’s airspace. Pressure from the north predates the Iran conflict. Since Russia’s full-scale invasion of Ukraine in 2022, many Western carriers have avoided Russian airspace. Uzbekistan Airways began routing Europe services around Russia and Belarus in January 2025. Its Tashkent-Munich route grew by 307 kilometers, adding 30 to 40 minutes to the journey time. Uzbekistan already had a growing air transit base. Uzaeronavigation served 188,000 flights in 2023, including 143,000 by foreign airlines. More than 74,000 flights were handled in Uzbek airspace during January-April...

Robot Delivery

Kazakhstan Tests Yandex Robot Couriers in Astana

Astana has begun testing robot couriers for grocery deliveries in selected areas of the capital, allowing some residents to receive orders from Yandex Lavka without a human courier. Under the pilot project, customers within the service zone can select robot delivery when ordering through the Yandex Go app. The small autonomous vehicles travel along pavements before stopping outside the customer’s address, where the storage compartment can be opened using the app. The project is being run by Yandex Qazaqstan with the Astana city administration, the city police department and the municipal technology company Astana Innovations, according to an announcement by the Astana authorities. The robots use cameras and other sensors to identify pedestrians and obstacles, and travel at around 6 kilometers per hour. Initial street testing began on July 15, before the service was opened to regular Yandex Lavka customers later in the month. In a statement issued by the Astana city administration, Gizat Amirgali, chairman of Astana Innovations, said the trial would be used to assess the safety and reliability of autonomous deliveries in ordinary urban conditions, as well as customer responses to the service. Yandex has operated robot couriers in Russian cities for several years and is expanding their use. In March, the company said its robots had completed more than one million deliveries and traveled over two million kilometers in Russia, although the Astana project remains a small and geographically limited trial. The launch comes as Kazakhstan experiments with several forms of automated delivery and transport. A separate drone-delivery pilot, planned for Almaty, is intended to test the transport of food, medicines and everyday goods over short urban routes.

OPEC

Kazakhstan OPEC+ Oil Production Target Rises After Output Agreement

Kazakhstan's OPEC+ crude oil production target will rise by 10,000 barrels per day in September to 1.628 million barrels per day after seven producers agreed to increase their combined target by 188,000 barrels per day. The decision completes the gradual restoration of 1.65 million barrels per day of production withheld under voluntary cuts announced in April 2023. Following a virtual meeting on August 2, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman agreed to the latest adjustment. The United Arab Emirates was part of the original group implementing the voluntary cuts but left OPEC and OPEC+ on May 1, reducing the group making the monthly decisions from eight countries to seven. OPEC's rounded country allocations raise the targets of Saudi Arabia and Russia by 62,000 barrels per day each, Iraq by 26,000, Kuwait by 16,000, Kazakhstan by 10,000, Algeria by 6,000, and Oman by 5,000 barrels per day. OPEC+ said the adjustment would allow participating countries to accelerate compensation for previous overproduction. It does not cancel Kazakhstan's obligation to offset all excess volumes produced since January 2024 by producing below its applicable targets in future months. Kazakhstan has faced sustained pressure within OPEC+ after repeatedly producing above its agreed limits. The expansion of the Tengiz oilfield has pushed national output to record levels, while Astana has repeatedly said it intends to meet its compensation commitments. Reuters reported that successive OPEC+ increases this year have remained largely on paper because export disruptions have constrained supply from the Gulf, Russia, and Kazakhstan. Sources had indicated that the group could pause further increases in the fourth quarter, although the August 2 statement made no commitment on production policy for the final three months of 2026. Recent disruptions at the Caspian Pipeline Consortium provide an immediate limit on what Kazakhstan's higher target may mean. The Times of Central Asia reported on August 3 that tankers were loading and Kazakhstan had restored crude intake after attacks near CPC's Black Sea terminal, but the available statements did not establish a full return to planned export volumes. CPC handles more than 80% of Kazakhstan's crude exports, so renewed loading restrictions could again force producers to cut output regardless of the higher quota. OPEC+ is also reviewing members' production capacity before setting the baselines that will apply in 2027. The seven producers will meet again on September 6 to assess market conditions and decide whether to make further changes.

GDP

Turkmenistan Reports 6.3% GDP Growth for the First Half of 2026

Turkmenistan's economy grew by 6.3% in the first six months of 2026 compared with the same period last year, according to Turkmen state media. Among Central Asian countries that had published first-half figures, Turkmenistan's reported growth rate was higher than Kazakhstan's but lower than those of Kyrgyzstan, Tajikistan, and Uzbekistan. By the end of the first half of 2026, Kazakhstan's economy had grown by 4.1%. Kyrgyzstan's economy expanded by 11.9%, reaching 960 billion som ($11 billion), with construction posting the fastest growth at 69.6%. Tajikistan reported growth of 8.2%, while Uzbekistan reported GDP growth of 8.5%. Turkmenistan's official figures should be treated with caution. The International Monetary Fund projects growth of about 2.4% for 2026 and says it uses its own GDP estimates because the official narrative is difficult to reconcile with other available data. Official data shows growth of 10.4% in transport and communications, 8.5% in trade, 8.4% in services, 6.7% in construction, 2.7% in industry, and 2% in agriculture. Retail trade turnover increased by 10.1%, while foreign trade turnover rose by 7.5%. The fuel and energy sector continues to play a central role in Turkmenistan's economy. The country possesses some of the world's largest natural gas reserves, and hydrocarbon production and exports remain its principal source of foreign currency earnings and a defining feature of the national economy. Construction is another major pillar, driven largely by state spending. Capital investment totaled 18.6 billion manats ($5.3 billion) in the first half of 2026, up 4.3% year on year and equivalent to 16.5% of GDP. Of this, 45.1% went to production facilities and 54.9% to social and cultural buildings. The government is also seeking to produce more construction materials and other goods domestically, reducing the need for imports. For the remainder of the year, the government says it will focus on completing ongoing construction projects, increasing capacity utilization at industrial plants, maintaining the stability of the manat, developing the tax system, preparing next year's state budget, and improving the use of budget funds. Earlier, The Times of Central Asia reported that Turkmenistan sees the proposed Trans-Caspian Gas Pipeline and the Southern Gas Corridor as a key route for diversifying its natural gas exports to Europe, as Ashgabat seeks to reduce its dependence on a limited number of export markets.

Caspian Pipeline Consortium

Chevron Says CPC Is Loading Tankers as Kazakhstan Restores Oil Intake

Chevron CEO Mike Wirth said that oil was flowing through the CPC pipeline and tankers were being loaded on July 31, one day after two vessels were attacked near its Black Sea terminal. Kazakhstan’s Energy Ministry said intake reached 100,000 metric tons a day from August 1 and rejected reports of a complete shutdown. “The pipeline is flowing. We’ve been loading ships this week,” Wirth said during Chevron’s second-quarter earnings call. He said two of CPC’s three single-point moorings were in service. The third was undergoing refurbishment and was expected to return during the third quarter. The ministry said CPC temporarily suspended pipeline system operations on July 31 but continued receiving crude and filling storage tanks. A complete shutdown “is not being considered,” it said. Further increases would depend on tankers arriving for loading near Novorossiysk. The two statements indicate that loadings restarted quickly after the July 30 attacks, but do not establish a full return to planned export volumes. CPC can receive crude while storage space remains available, but if tanker loadings fall behind, storage fills and producers must cut output as they did in late July. On August 2, OPEC+ raised Kazakhstan’s September target by 10,000 barrels per day to 1.628 million barrels. The increase formed part of a combined 188,000-barrel-per-day rise for Kazakhstan and six other producers. The group said countries that had exceeded their quotas since January 2024 would make up for the excess by producing less in future months. A separate OPEC+ monitoring committee, which includes Kazakhstan, stressed the “critical importance” of safeguarding international maritime routes and expressed concern about attacks on energy infrastructure. Its statement did not name CPC or the Black Sea incidents. For Kazakhstan, the higher quota may have little immediate effect if export flows remain constrained. Reuters has reported that OPEC+ may pause further increases after September while it reviews production capacity for quota baselines which will apply in 2027. The immediate risk is a repeat of late July, when disrupted loadings filled storage and forced sharp production cuts at Tengiz and other major fields. CPC loadings had resumed on July 27 after a week-long suspension. Three days later, two more tankers were attacked near the terminal. NISSOS SIFNOS was struck while loading Tengizchevroil crude at the SPM-3 offshore mooring, while MARATHI was hit while waiting for a berth about six nautical miles offshore. Both fires were extinguished, and no injuries to the crews or pollution were reported. Neither CPC nor Kazakhstan publicly identified an attacker. Ukraine’s drone forces later said they had struck four Russian tankers in the Black and Azov seas, but did not name the vessels or locations. The earlier stoppage had already demonstrated how swiftly export disruption can reach Kazakhstan’s oilfields. National oil and gas condensate production fell to about one million barrels per day on July 26, less than half the June average of 2.16 million barrels per day. CPC runs for about 1,510 kilometers from western Kazakhstan through Russia to the Black Sea. It handles...

Trans-Caspian Cable

Kazakhstan and Azerbaijan Begin Laying Trans-Caspian Fiber-Optic Cable

Kazakhstan and Azerbaijan have begun laying a fiber-optic cable across the Caspian Sea, marking the start of offshore construction on a long-planned digital connection between Central Asia and the South Caucasus. A specialized cable-laying vessel has departed the Port of Baku and begun laying the line toward Aktau, the Ministry of Artificial Intelligence and Digital Development of Kazakhstan announced. Weather permitting, the underwater installation is expected to take 15 to 20 days. Testing and commissioning are scheduled to be completed by the end of 2026. The 380-kilometer cable will connect Sumgait in Azerbaijan with Aktau in western Kazakhstan. It will be capable of transmitting up to 400 terabits of data per second, according to AzerTelecom. The full system, including testing and commissioning, is scheduled to be completed by the end of 2026. The project is being implemented by CaspiLink B.V., a joint venture established by Kazakhstan’s Kazakhtelecom and Azerbaijan’s AzerTelecom. It forms part of the Digital Silk Way initiative, a planned telecommunications corridor linking Asia and Europe. Preparatory work included surveys of the Caspian seabed and the selection of a route avoiding anchorage areas and military exercise zones. The armored cable was manufactured and tested in China before being delivered to the Kazakh port of Kuryk and transported to Baku for installation. As previously reported by The Times of Central Asia, the project had entered active implementation after several years of delays and changes among the participating companies. The cable was first proposed in 2019, although earlier completion targets were not met. Once operational, the link will provide a direct subsea data route between Kazakhstan and Azerbaijan. It will also expand Kazakhstan’s capacity to carry internet traffic between Asian and European networks.