Features - The Times Of Central Asia

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Economy

Central Asia Attracted $24.8 billion in Investments in 2024

Despite global economic challenges, Central Asia has experienced growth in attracting foreign direct investment (FDI). According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), investment in the region increased by 27%, reaching $24.8 billion in 2024. Kazakhstan and Uzbekistan have become the main centers of attraction for capital, offering investors significant opportunities in the energy sector and green technologies. Uzbekistan attracted $4 billion in foreign investment, reflecting a 49% year-on-year decline. However, the country is actively developing sustainable environmental projects. South Korea’s Western Power plans to build a $152 million biofuel plant in Fergana region. The plant will process cotton stalks to heat greenhouses, which will replace coal and reduce emissions by 120,000 tons of CO2 over 10 years. This project reflects Uzbekistan's policy of reducing dependence on fossil fuels and introducing “green” technologies. Kazakhstan maintained its position as the regional leader in attracting investment, accounting for 63% of Central Asia's total FDI. The country increased its investment inflow by 88%, reaching $15.7 billion. An important role was played by Qatari company UCC Holding, which invested $11 billion in the construction of two gas processing plants, a compressor station, and new main gas pipelines. These projects strengthen Kazakhstan's role as a key energy hub in the region. Kyrgyzstan recorded the highest relative growth in investment, increasing by 310% to $2.1 billion. Turkmenistan and Tajikistan received $339 million and $281 million, respectively. As for outgoing investments, their volume from the region decreased by 58% to $2.3 billion. Russia remains the primary source of outgoing investments, accounting for 90% ($2.1 billion). Georgia invested $105 million, Azerbaijan $76 million, and Kazakhstan $47 million.

Digitalization

Digital Kazakhstan: Pioneering E-Government and AI Innovations Amid New Challenges

Kazakhstan has solidified its position as a global leader in digital transformation, ranking among the top 25 countries in e-government development and achieving significant milestones in IT innovation. After nearly two decades of digitalization efforts, the country is now aiming to surpass the most advanced nations. The concept of e-government in Kazakhstan was first announced in former President Nursultan Nazarbayev’s address on March 19, 2004. That same year, a program for the establishment of e-government was approved, and the eGov.kz web portal was launched in 2006. Initially, the platform primarily provided informational services. The second phase of e-government (2007–2008) introduced interactive services, allowing citizens to request certificates, submit inquiries to government bodies, and track their progress online. A key milestone was the establishment of Citizen Service Centers on January 5, 2007. Before the digital era, obtaining documents was a lengthy and cumbersome process, plagued by long queues and widespread corruption. In 2024, digitalization in Kazakhstan reached new heights. The government reports that 92% of public services are now provided electronically. Innovations such as biometric identification and QR signatures have simplified access, with over eight million QR code signatures registered and more than 18 million identifications conducted through the Digital ID system this year, according to Kanat Tuleushin, the First Vice-Minister of the Ministry of Digital Development, Innovation, and Aerospace Industry (MCRIAP). The modernization of the e-government platform is ongoing, with plans to transition to the third version of eGov. Additionally, IT services from Kazakhstan are now exported to 86 countries, with key markets including Russia, Ireland, Mexico, the United States, and Singapore. A central focus of the government strategy is the development of artificial intelligence (AI). In 2024, a draft law on AI was approved, and a Committee on AI was established to oversee the development of this field in the country. Kazakhstan continues to modernize its e-government platform, with plans to transition to the third version of eGov. The country has also made strides in exporting IT services to 86 countries, including major markets like Russia, Ireland, Mexico, the United States, and Singapore. A key priority for the government is the development of artificial intelligence (AI). In 2024, a draft law on AI was approved, and a dedicated Committee on AI was established to oversee advancements in this area. In the 2024 UN E-Government Development Index (EGDI), Kazakhstan ranked 24th among 193 countries, climbing four spots since the last assessment. The country also secured a place in the global top 10 of the Online Service Index (OSI), which evaluates the accessibility and quality of government-provided online services. South Korea leads the EGDI rankings, while Kazakhstan outpaces many of its regional neighbors, including Armenia (53rd), Russia (56th), Uzbekistan (59th), Kyrgyzstan (89th), and Turkmenistan (172nd). Kazakhstan’s banking sector has also played a pivotal role in driving digital innovation. Major banks now integrate a wide range of public and business services into their apps. For example, Halyk Bank offers over 60 services, Kaspi.kz provides 40, Bank CenterCredit more than 30, and Freedom...

Aktau Plane Crash

Kazakhstan Transfers Flight Recorders to Brazil for Further Investigation

The Azerbaijan Airlines plane crash near the Kazakh city of Aktau continues to dominate media discussions in Azerbaijan, Kazakhstan, and Russia. Public attention has centered on statements from Azerbaijan’s leader, Ilham Aliyev, who appears dissatisfied with Vladimir Putin’s vague apologies, as well as on the actions of Kazakh President Kassym-Jomart Tokayev, who faces the delicate challenge of conducting an investigation that satisfies both Baku and Moscow. Tensions between Baku and Moscow have escalated, with both sides imposing mutual migration restrictions. Russians are now limited to 90 days per year in Azerbaijan, while Russia has enacted asymmetric measures against Azerbaijani citizens. Amid this backdrop, Kassym-Jomart Tokayev has taken personal control of the aviation accident investigation, which includes collaboration with specialists from both Azerbaijan and Russia. On the evening of Sunday, December 29, the Commission on Aviation Incident Investigation, led by Kazakhstan’s Minister of Transport, Marat Karabayev, announced its decision to send the flight data recorder (black box) to Brazil's Center for Investigation and Prevention of Aeronautical Accidents (CENIPA). Brazil is also the manufacturer of the Embraer aircraft involved in the crash. According to the Kazakh authorities, the decision complies with the standards of Annex 13 of the Chicago Convention, which assigns responsibility for decoding flight recorders to the investigating country and allows it to select the location for the task. Kazakhstan, a member of the International Civil Aviation Organization (ICAO) since 1992, made the decision in alignment with this framework. The commission emphasized that CENIPA possesses the necessary technical expertise, certified laboratories, and specialized equipment for decoding the flight data recorders. Kazakh analyst Gaziz Abishev interprets the decision as a potential response to external pressure on Kazakhstan, though officials deny any such influence. According to Abishev, the rhetoric from Azerbaijan’s leadership reflects a lack of mutual understanding with Moscow, suggesting covert attempts to sway the investigation. “In this context, Kazakhstan’s decision to transfer the black box to CENIPA represents a principled step aimed at neutralizing pressure and ensuring an impartial decoding process that instills confidence in the international community,” Abishev stated. A similar view is held by Aydos Sarym, a deputy in Kazakhstan's Mazhilis. “This is, in essence, a ‘Solomonic’ decision, as Azerbaijan is the aggrieved party, with the majority of victims being its citizens. President Aliyev has repeatedly emphasized Russia’s culpability in the tragedy and expressed distrust toward certain CIS institutions that have investigated past international incidents. To guarantee full transparency and objectivity, the decryption process has been entrusted to Brazil. This move seeks to accurately determine the cause of the tragedy and establish accountability while ensuring the investigation’s conclusions are accepted by all parties,” Sarym commented. Azat Peruashev, leader of the parliamentary party Ak Zhol, also voiced support for the decision. He praised it as a testament to Tokayev’s diplomatic skill, describing him as a “high-class diplomat capable of finding balanced solutions in the most challenging situations.” Peruashev highlighted the advantages of shifting the investigation to a neutral and unbiased venue, allowing the manufacturer to confirm whether the crash...

Repatriation

Repatriating Islamic State Fighters and Families: Balancing Security and Humanity

With the fall of the Assad regime in Syria, repatriating foreign fighters is a pressing issue at the intersection of global security, humanitarian principles, and national responsibility. Central Asian governments — namely, Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan — have emerged as proactive players in repatriating their citizens from camps in northeastern Syria. While these efforts are laudable, they come with challenges and unanswered questions. Tens of thousands of people, many of them women and children associated with former ISIS or the Islamic State of Iraq and Syria - a terrorist organization known for its extreme ideology and violent actions of its’ fighters — remain trapped in the camps of northeastern Syria. Their lives are defined by squalor and uncertainty, and they face a bleak future. Central Asian nations have stepped up where many others have faltered, asserting their responsibility to help their citizens who languish there. Yet, this commitment is not without its limits. Repatriating men — many of whom were fighters — remains a challenge that even the most ambitious programs have struggled to address. This issue looms large, as it intertwines with broader questions. These include reintegration, security risks, and the potential for radicalization, both in prison systems and broader society. The scale of efforts undertaken by four of the Central Asian countries is significant. Together, they have repatriated around 2,200 citizens: Kazakhstan, the most, 754 individuals, followed by others with numbers ranging from 381 to 533. These figures represent more than just logistical achievements. They reflect these governments' commitment to humanitarian principles. However, the path has not been entirely smooth, as some of the repatriated women and children have returned back to conflict zones. As counterintuitive as this may seem, they might do so out of ideological commitment, social ties, coercion or threats, trauma bonding, or difficulty reintegrating into their home societies. All this suggests cracks in reintegration programs that must be addressed. The strategies employed by the Central Asian states, despite their common goal, differ in focus and execution. Kazakhstan’s “Operation Zhusan” is often mentioned as a model of coordination and commitment. It has gone beyond mere repatriation to a vision embracing comprehensive reintegration, including other services, such as DNA testing to identify orphaned children. Yet such efforts rely heavily on state resources and long-term political will, neither of which can be taken for granted. Uzbekistan’s Mehr ("Kindness") initiative has particularly focused on protecting children and supporting the unification of families. Yet even with international appreciation, Uzbekistan faces the same challenges as its neighbors: how to sustain this momentum and address lingering societal stigmas toward returnees. Kyrgyzstan paused its repatriation operations in Iraq due to legal roadblocks and has turned its attention to Syria. However, Kyrgyzstan relies significantly on international cooperation, as its own economic resources for such activities are comparatively limited. So far, it has repatriated 511 citizens. Tajikistan’s steady progress highlights even more pointedly the role of international cooperation with organizations like UNICEF and the European Union. The Tajik authorities have worked closely with...

Aktau Plane Crash

How the Azerbaijan Airlines Crash Could Shake Relations with Russia

The crash of an Azerbaijan Airlines (AZAL) airplane in Aktau, Kazakhstan, has the potential to significantly effect Azerbaijan's relations with Russia if Moscow mishandles the situation. To date, there has been a lack of transparency and responsiveness on the part of the Kremlin. The implications could include accelerating the deterioration of Moscow's influence in the region. These implications, therefore, concern not only the local countries, but any international actor having strategic interests in the South Caucasus and Central Asia, or otherwise concerned with their future role and place in the evolving post–Cold War international system. The Facts of the Disaster Given the rapid dissemination of information in the 2020s by electronic means, whereby authentic real-time videos made by first responders to the fuselage on the ground were uploaded to social media and available worldwide within minutes, the overall outline and some details of the incident are by now generally well known. The airplane was en route from Baku to Grozny, the capital of Chechnya, when explosions in the air damaged the cabin. Very soon after, but not as a result of these explosions, the pilots completely lost all electronic orientation and navigation capabilities. According to one source close to Azerbaijan's investigation into the crash, preliminary results showed the plane was struck by a Russian Pantsir-S air defense system and its communications were then paralyzed by electronic warfare systems on the approach into Grozny. Ukrainian military drones have repeatedly targeted Russia’s southern regions, triggering Russian air defenses. “No one claims that it was done on purpose,” the source said; but “taking into account the established facts, Baku expects the Russian side to confess to the shooting down of the Azerbaijani aircraft.” After being hit, the plane was refused emergency landing permission at Grozny (2.5 kilometers from where the incident occurred) and at least two other Russian airports in the North Caucasus (Makhachkala, 155 kilometers away, and Mineral’nye Vody, 225 kilometers), before being directed by local air control out over the Caspian Sea. Once there, the pilots made the decision to try to land in Aktau (435 kilometers away). Against all odds, they succeeded in avoiding the need to ditch the aircraft into the sea, which would have undoubtedly killed all on board and also destroyed the craft, making any investigation into what had happened impossible. In the event, according to the Kazakhstani authorities, out of 62 passengers and five crew, 32 survivors were initially rescued. Captain Igor Kshnyakin, Co-pilot (First Officer) Alexander Kalyaninov, and Purser Hokuma Aliyeva died when the front wheel touched down ahead of the back wheels, as a result of which the cockpit was thrown violently away from the ongoing wreck. However, this is what created the conditions for at least some of the passengers to survive, as it split the fuselage in two. The event has garnered international attention, including for the professionalism of the crew. What Has Happened Since At first, Kazakhstan declared its own unilateral competence to investigate the crash, which occurred on...

Visa

Azerbaijan Tightens Visa Rules for Russians Amid Aktau Crash Fallout

The Azerbaijani government has announced new restrictions on the temporary stay of Russian citizens, effective January 1, 2025. Under the new rules, Russian citizens and stateless persons residing in Russia will be limited to a maximum of 90 days per calendar year without a visa. The announcement comes in the wake of a tragic plane crash involving an Azerbaijan Airlines (AZAL) aircraft near the Kazakh city of Aktau on December 25. The plane, which had taken off from Baku headed to Grozny, Chechnya, crashed, killing 38 people and injuring 29 others. Kazakhstan is currently leading the investigation into the incident. Accusations and Responses Azerbaijan’s President Ilham Aliyev has stated that the plane was struck by Russian ground fire while flying over Russian territory. He accused Russia of attempting to obscure the truth by spreading “absurd theories” about the crash. Russian President Vladimir Putin had issued an apology for the incident one day before Aliyev's remarks, but did not admit responsibility for the alleged ground fire. International Reactions The crash has prompted flight suspensions to Russia by several airlines, citing safety concerns. Turkmenistan: Flights on the Ashgabat-Moscow-Ashgabat route have been canceled from December 30, 2024, to January 31, 2025. The reason for the decision has not been disclosed, but the airline previously operated twice-weekly flights to Moscow. Kazakhstan: Kazakh Air has suspended its Astana-Yekaterinburg route from December 28, 2024, to January 27, 2025, to ensure passenger safety. Israel: Israeli airline El Al has halted flights on the Tel Aviv-Moscow route until next week, citing “events in Russian airspace.” UAE: Flydubai has suspended flights to Sochi and Mineralnye Vody due to technical reasons. Flights to Sochi are expected to resume on January 2, while services to Mineralnye Vody will restart on January 3. In a symbolic gesture, an Uzbekistan Airways plane circled Aktau Airport twice in memory of the Azerbaijan Airlines crash victims. Broader Implications The tragedy and subsequent allegations have heightened tensions in the region and raised concerns about air travel safety in Russian airspace. While investigations are ongoing, the incident underscores the geopolitical sensitivities and potential risks associated with the aviation sector in this area.