Features - The Times Of Central Asia

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Caspian Sea

As Two Wars Reach the Caspian, Central Asia’s Middle Corridor Holds

On July 25, two wars met in waters that Central Asian governments had tried to keep apart. Ukraine reported successful long-range strikes in the Caspian Sea. President Volodymyr Zelenskyy said the targets included vessels involved in carrying military cargo from Iran and a warship. Tehran said an Iranian commercial vessel had been struck, killing one sailor and injuring another, and accused Kyiv of trying to widen the war. It remains unclear whether the vessel identified by Iran was among the targets described by Zelenskyy. Diplomacy produced a limited off-ramp. On July 28, Ukrainian Foreign Minister Andrii Sybiha told his Iranian counterpart, Abbas Araqchi, that the strike on the Iranian ship was unintended. Both governments said they wanted to avoid further escalation. The call reduced the immediate risk of retaliation, but it did not remove the new danger. The Caspian is now one of the places where Russia’s war against Ukraine and the war involving Iran, Israel, and the United States intersect. Central Asia is exposed through the infrastructure and trade routes linking them. A “Sea of Peace” Under Pressure Turkmenistan responded to the incident with unusually direct language. Its Foreign Ministry called attacks on vessels in the Caspian “inadmissible” and described the waterway as a “sea of peace, harmony and good-neighborliness.” Ashgabat did not name Ukraine or endorse Iran’s account. Its restraint was characteristic, but the public criticism was unusual. Turkmenistan’s permanent neutrality normally produces guarded statements during external conflicts. The intervention showed that Ashgabat viewed the attack as a challenge to the regional order. Turkmenistan faces Iran across a 1,148-kilometer land border and the southern Caspian. Turkmenbashi port is also central to its plans for a larger role in Eurasian trade. The principle is set out in the Convention on the Legal Status of the Caspian Sea, signed in Aktau in 2018. Its text calls for the peaceful use of the sea, prohibits the use or threat of force, and bars armed forces belonging to non-Caspian states. The convention has not entered into force because Iran has not ratified it. Its provisions were designed to govern relations among the five littoral states. They do not address a long-range strike carried out by a non-littoral state. But modern drones can cross distances that once provided strategic shelter. A landlocked sea can no longer be assumed to sit beyond the reach of surrounding wars. The Iran-Russia Link Ukraine has clear military reasons to look toward the Caspian. Iran has supplied Russia with drone technology used against Ukrainian cities and infrastructure. The sea also provides a direct commercial route between Iranian ports and Russia’s Volga region. Kyiv now treats vessels on that route carrying military cargo as part of Russia’s military logistics. Iran described the vessel struck on July 25 as civilian. The dispute over the ship’s cargo is central because commercial and military supply chains can overlap. A vessel may be civilian by flag and registration while carrying goods that Ukraine considers part of Russia’s war effort. That uncertainty reaches beyond...

Global Business Services

GBSF 2026 Highlights Uzbekistan’s Push for Global Business Services and AI

More than 450 participants from business and government, representing over 45 countries, gathered in Tashkent on July 24–25 for the Global Business Services Forum 2026. The event centered on Uzbekistan’s effort to become a regional center for global business services and business process outsourcing (BPO), with artificial intelligence (AI) also a major focus. Organizers described it as Central Asia’s largest international forum devoted to global business services and the digital economy. The forum follows May’s Global Tech Weekend in Tashkent, which brought more than 2,500 technology and investment professionals to the capital. Opening the forum, Uzbekistan’s Minister of Digital Technologies Sherzod Shermatov said recent reforms had improved conditions for international technology companies considering investment or expansion in the country. Shermatov said companies could draw on qualified specialists and modern digital infrastructure while reaching a fast-growing regional market. He also invited international firms to invest and develop long-term partnerships. Azamat Karamatov, CEO of IT Park Uzbekistan, said the organization now has more than 3,800 resident companies, including over 1,000 international businesses. Exports of technology services have surpassed $1 billion. He said IT Park gives foreign companies a route into Uzbekistan’s technology sector while helping develop local talent. Sessions examined AI and talent development. Other discussions covered international investment and outsourcing. Speakers also outlined tax incentives and support available to foreign companies entering the Uzbek market. The Soft Landing program and Zero Risk initiative are among the available schemes. Key Account Management services provide additional assistance. One speaker was Arseny Kucheryuk, an expert at Antal Uzbekistan, part of the British recruitment company Antal International. He drew on the firm’s recruitment work and salary surveys to describe changes in the labor market. Kucheryuk, who moved to Uzbekistan nearly five years ago, said employers once struggled to find highly qualified candidates. The market has since become more balanced, although strong candidates can still receive several offers within weeks. He said companies seeking experienced professionals often need to offer salaries well above candidates’ current income. Antal research found that more than 60% of candidates expect an increase of at least 20% when changing jobs. Kucheryuk added that pay alone does not determine retention. Career prospects and management quality also influence whether skilled staff remain with an employer. He said workplace culture is especially important when addressing religion or family. Speaking to The Times of Central Asia after his presentation, Kucheryuk said foreign investment was creating career opportunities in Tashkent and elsewhere in Uzbekistan. He attributed Uzbekistan’s appeal to cooperation between the government and private sector, which he said helps international companies enter the market and supports local businesses. Kucheryuk advised foreign investors to understand local business culture before entering the market. Although companies may bring senior executives from abroad, he said operational roles requiring knowledge of local law and business practice should generally be filled in Uzbekistan. Iyad Hafez, CEO and managing partner of Staff Arabia, said his first visit to Uzbekistan exceeded expectations. “I’m positively surprised,” he told The Times of Central Asia. “Very...

U.S. Tariffs

U.S. Imposes 12.5% Tariff on Kazakhstan Over Third-Country Import Controls

Kazakhstan is the only Central Asian economy included in a new U.S. tariff action covering 60 trading partners. An additional tariff of 12.5% has been imposed on a range of Kazakh goods, excluding products listed in the annexes to the final decision. The rate applies to goods entered for consumption in the United States from July 24, 2026. Kazakhstan’s Ministry of Trade and Integration said about 95% of the country’s exports to the United States would remain outside the measure because of the exemptions. It also said the new tariff replaces an expired temporary 10% surcharge and will not be added to it. Kazakhstan already prohibits forced labor in domestic employment under Article 7 of its Labor Code. The Office of the U.S. Trade Representative (USTR) did not allege that Kazakh exporters use forced labor. Its finding concerned a separate gap: Kazakhstan lacks a customs prohibition capable of excluding foreign goods produced wholly or partly with forced labor. The investigation was launched in March under Section 301 of the Trade Act of 1974, a mechanism that allows Washington to respond to foreign practices it considers discriminatory or restrictive to U.S. commerce. In June, USTR concluded that the policies of all 60 economies under review warranted action. The final decision followed more than 1,600 written comments and testimony from over 100 witnesses. Most of the economies were divided into two rate groups, while the European Union, Taiwan, Japan, South Korea, and Switzerland received special treatment linked to existing most-favored-nation tariffs. This was not a Kazakhstan-specific finding. USTR identified the same deficiency in 53 other economies, including Australia, Japan, Norway, Singapore, and South Korea. Together, the 60 economies under investigation accounted for 99.4% of U.S. imports. A 10% tariff was imposed on countries that had introduced at least a partial ban on imports associated with forced labor or made corresponding commitments to Washington. Kazakhstan was placed in the 12.5% category alongside Australia, Israel, New Zealand, Norway, Singapore, the United Arab Emirates, and several other U.S. trading partners, as well as China and Russia. The immediate cost to Kazakhstan will depend largely on the scope of the exemptions. Washington exempted raw materials where tariffs could leave the U.S. market without sufficient domestic supply, products whose higher cost could cause wider economic disruption, and goods that the United States cannot produce in sufficient quantities or obtain elsewhere. The 12.5% rate therefore does not mean that all Kazakh exports will become more expensive in the American market. The structure of bilateral trade further limits the likely damage. Kazakhstan’s exports to the United States are concentrated in commodities, particularly oil, uranium, metals, and semi-processed materials. Many serve U.S. energy and industrial needs. The Kazakh government’s estimate that about 95% of exports remain exempt indicates that the largest trade flows should avoid the additional tariff, although the U.S. notice does not provide a Kazakhstan-specific calculation. According to U.S. figures, goods trade between the two countries reached $5 billion in 2025. U.S. imports from Kazakhstan rose by 73%...

Opinion

Uzbekistan’s Heritage Did Not Stop With the Silk Road

When people think of Uzbekistan’s architectural heritage, the images are familiar: the turquoise domes of Samarkand, the madrasas of Bukhara, Khiva’s walled city, and the monuments of Shakhrisabz. But Uzbekistan’s history did not stop with the Silk Road. At its 48th session in July, UNESCO inscribed “Tashkent Modernist Architecture. Modernity and Tradition in Central Asia” on the World Heritage List. The new site brings together ten buildings and urban complexes constructed between the 1960s and the early 1990s, during the period in which Tashkent was dramatically rebuilt following the 1966 earthquake. The inscription deserves to be celebrated. More importantly, it expands the definition of what Uzbek heritage can be. [caption id="attachment_52926" align="aligncenter" width="1774"] Kosmonavtlar Metro Station, Tashkent; photo: Mathieu Lemoine[/caption] These buildings do not belong to the world of caravanserais and Timurid courts. They represent another layer of the country’s history: the ambitious and highly creative transformation of Soviet-era Tashkent. For decades, Central Asian heritage has often been viewed through a chronological hierarchy. The older a monument, the easier it is to recognize as heritage. Timurid architecture is obviously precious. A concrete building from the 1970s can appear more expendable. Tashkent shows why that distinction is too simple. UNESCO notes that the architecture developed after the earthquake combined industrialized construction and seismic engineering with local climatic, cultural and material conditions. The result was not simply Soviet modernism transplanted to Central Asia, but a distinct architectural language adapted to Tashkent. This broader understanding of heritage comes at an important moment. Uzbekistan is modernizing rapidly. Its cities are growing, tourism is expanding, infrastructure is improving and redevelopment is transforming urban space. Much of this change is necessary and welcome. Historic neighborhoods cannot be expected to function as open-air museums. Residents need reliable drinking water, sewage systems, heating, electricity, internet access, waste collection, accessibility, safe streets and comfortable housing. A leaking pipe is not “authenticity.” The more difficult question is how modernization takes place. [caption id="attachment_52925" align="aligncenter" width="1774"] Tashkent Modernist State Museum of History; photo: Mathieu Lemoine[/caption] Uzbekistan has already experienced how delicate that balance can be. In Shakhrisabz, large-scale redevelopment substantially altered the historic urban fabric. The historic center was placed on UNESCO’s List of World Heritage in Danger in 2016 and remains there today. The experience offers an important lesson: preserving monuments is not necessarily the same as preserving a city. A city can retain its most famous madrasa, mosque or mausoleum while losing part of its heritage if the streets, neighborhoods, businesses and communities surrounding them disappear. The pressure is not only architectural. As tourism grows and historic centers become more desirable, economic incentives change. Houses can become hotels and restaurants. Businesses serving residents can give way to businesses serving visitors. Traditional workshops can struggle with higher costs. Redevelopment can create pressure on residents to relocate. Bukhara illustrates why this is important. Its identity rests not only on monumental architecture but on a living economy of craftsmanship. Gold embroidery, ceramics, jewelry, woodwork and other trades remain sources of employment as well as cultural identity....

Caspian Pipeline Consortium

Kazakhstan Resumes CPC Oil Exports After Output More Than Halves

Kazakhstan resumed oil exports through the Caspian Pipeline Consortium on July 27 after the consortium restarted accepting crude and loading tankers at its Black Sea terminal near Novorossiysk. The Energy Ministry said the SEAMAJESTY and MILOS tankers were loading crude supplied by Tengizchevroil at two of the terminal’s single-point moorings. CPC said its pipeline had been back online since 12:28 p.m. Moscow time. Loading operations resumed after a week-long suspension. The ministry said terminal operations would continue according to assessments of the security situation and compliance with safety requirements. It remains in contact with CPC management, oil producers, and other companies involved in the shipments. The restart followed the sharpest production decline recorded during the disruption. Kazakhstan’s oil and gas condensate output fell to about one million barrels per day on July 26, according to an industry source. That was less than half the June average of 2.16 million barrels per day. Production had already fallen by about 21% as of July 22, to 1.63 million barrels per day. Tengiz, Kazakhstan’s largest oilfield, bore the heaviest initial reduction. Its output dropped by 56%, from a July average of 925,000 barrels per day to about 406,000 barrels per day. By July 26, the cuts had spread across Kazakhstan’s three largest oil projects. Daily production at Tengiz, Kashagan, and Karachaganak fell by between 70% and 90% compared with June levels, according to an industry source. The Energy Ministry and the projects’ operators did not comment on the field-level figures. Producers reduced output after CPC restricted intake from Kazakhstan and suspended tanker loadings. Storage tanks at the terminal had reached capacity, leaving the pipeline system with little room to receive additional crude. The Energy Ministry described the reductions as a technical measure intended to keep production operations stable. The halt followed a series of drone attacks on tankers near the CPC terminal. Three vessels were struck on July 17 and 19, including two loading Kazakh oil. Loadings briefly resumed before another tanker, NELSA, was hit at a single-point mooring on July 20. No casualties or oil spills were reported. Kazakhstan condemned the attacks and said an agreed information-sharing mechanism intended to protect civilian vessels carrying CPC crude had been disregarded. The government described the incidents as a threat to international energy security and demanded an immediate halt. The 1,510-kilometer CPC pipeline carries crude from western Kazakhstan through Russia to the Black Sea. It handles more than 80% of Kazakhstan’s oil exports, including most production from Tengiz, Kashagan, and Karachaganak. The shutdown added to a difficult year for the sector. Kazakhstan produced 45.7 million tonnes of oil in the first half of 2026, down 8.4% year-on-year. The ministry expects full-year production of 98 million tonnes after lowering its previous target because of earlier Tengiz outages and CPC disruptions. It was not immediately clear how quickly output would return to earlier levels. The reopening restores Kazakhstan’s main export outlet, but the speed and scale of the cuts again exposed its dependence on infrastructure vulnerable to...

Rogun Dam

Italy Commits $150 Million to Tajikistans Rogun Hydropower Plant

The World Bank Group and Italy’s state-controlled development bank, Cassa Depositi e Prestiti (CDP), have signed a co-financing agreement to support construction of Tajikistan’s Rogun Hydropower Plant, CDP and the World Bank’s office in Tajikistan said. The signing ceremony took place at Tajikistan’s Ministry of Finance in Dushanbe. Under the agreement, the Italian Climate Fund will provide $150 million for the project. The funds will be managed by CDP on behalf of Italy’s Ministry of Environment and Energy Security. CDP said the financing would support construction work on the right bank of the Rogun Dam. The Rogun Hydropower Plant is being financed by a consortium of 12 international development partners led by the World Bank Group, with CDP among its members. According to the World Bank, the project is expected to strengthen Tajikistan’s energy security while supporting the development of a cleaner energy market across Central Asia. The World Bank has already approved $650 million in grant financing for the project through the International Development Association (IDA). Located on the Vakhsh River, the Rogun Hydropower Plant is the centerpiece of the Vakhsh hydropower cascade. The project originated during the Soviet period, although construction of the current scheme was formally launched in 2017. Once completed, currently scheduled for 2033, the facility is projected to have an installed capacity of 3,780 MW. The World Bank estimates the plant will generate 14,400 gigawatt-hours of renewable electricity each year, equivalent to about 60% of Tajikistan’s current electricity production. The bank says the project will help reduce the country’s chronic winter electricity shortages, provide more reliable electricity for around 10 million people, create over 30,000 direct and indirect jobs, and enable electricity exports to neighboring Kazakhstan and Uzbekistan. Despite the new financing, the project continues to face criticism from environmental groups. The Times of Central Asia previously reported that the World Bank’s Inspection Panel registered a complaint filed by the environmental coalition Rivers Without Boundaries on behalf of downstream communities in Uzbekistan and Turkmenistan. The coalition argued that the project’s environmental and social assessments were outdated and warned that filling the Rogun reservoir could reduce water flows to the Amu Darya delta, accelerate desertification, increase soil salinity, and affect livelihoods downstream. In June 2025, the World Bank’s Inspection Panel recommended a full investigation. However, in November 2025, the Board of Executive Directors declined to authorize one, saying the complaint did not meet the mechanism’s technical eligibility criteria. Environmental groups criticized the decision. The World Bank has maintained that the project complies with its environmental and social safeguard framework, citing updated assessments, public consultations, and ongoing monitoring.