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Kashagan

Kazakhstan–Kashagan Dispute Heads to International Arbitration

Kazakhstan’s Vice Minister of Justice, Daniel Vaisov, announced that the country’s claims over the removal of sulfur storage limits at the Kashagan field, operated by North Caspian Operating Company N.V. (NCOC), will be heard under the International Centre for Settlement of Investment Disputes framework, which is headquartered in Washington. NCOC includes Shell, TotalEnergies, Eni, ExxonMobil, CNPC, Inpex, and KazMunayGas. In March 2023, an inspection of the Kashagan consortium by Kazakhstan’s environmental authorities identified violations of environmental legislation, including the excessive storage of sulfur volumes exceeding permitted limits. The resulting claim was valued at around $5 billion, according to the authorities. A court of first instance in Kazakhstan ruled in favor of the environmental authorities, according to Vaisov. Six of the seven NCOC participants, excluding KazMunayGas, challenged the ruling in a Kazakh court in March this year. At the same time, the foreign investors initiated international arbitration proceedings. “This claim was filed under bilateral international agreements: the agreement between the Republic of Kazakhstan and the Republic of France, and the agreement between the Republic of Kazakhstan and the Kingdom of the Netherlands,” Vaisov said during a briefing. The Ministry of Justice, Ministry of Ecology, and Ministry of Energy are jointly handling the case. Kazakhstan has been steadily tightening its position in major energy projects, seeking a larger share of revenues from fields developed under production-sharing agreements signed in the 1990s. Disputes over Kashagan and Karachaganak reflect broader efforts to rebalance terms with foreign investors as production stabilizes and fiscal pressures grow. The outcome of these cases could reshape how Central Asia’s largest economy manages foreign participation in its energy sector. A separate dispute concerning project costs, reportedly exceeding $100 billion, is being handled under the framework of the Production Sharing Agreement (PSA), in line with government policy, Vaisov said. Kazakhstan maintains that under the current terms, participating oil companies receive up to 98% of revenue from oil production at Kashagan, leaving the state with comparatively limited income in the form of royalties. Astana’s claim related to this issue has been reported at approximately $160 billion. “As far as I know, an interim decision has been made regarding Karachaganak. Further work is currently underway,” Vaisov said. In January 2026, an international arbitration tribunal ruled in favor of Kazakhstan in its dispute with shareholders in the Karachaganak Oil and Gas Projects, Eni, Shell, Chevron, and Lukoil. Compensation for the shareholders’ unjustified reimbursement of expenses has yet to be determined, but experts estimate it at between $2 billion and $4 billion. Vaisov also noted that Kazakhstan has been reducing the cost of arbitration proceedings involving foreign investors. “The Ministry of Justice has managed to reduce spending on these matters each year. Since 2021, costs have been reduced by nearly threefold. At the same time, the Republic of Kazakhstan engages leading law firms for these proceedings, as contracting companies do the same,” he said.

Aviation

Kazakhstan Expands Aviation Hub with Focus on U.S. and Long-Haul Flights

Kazakhstan is preparing for an audit by the U.S. Federal Aviation Administration (FAA) that would allow the country to launch direct flights to the United States. To achieve this, the government must demonstrate the reliability of its aviation regulatory system, the presence of an independent and effective oversight body, and transparent airline certification procedures. The country is also planning to acquire modern long-haul aircraft and has begun construction of its first maintenance center to service them. The Times of Central Asia spoke with representatives of Kazakhstan’s aviation industry about the progress of these efforts, when direct flights to North America may begin, and what challenges remain. As part of efforts to expand international routes and strengthen Kazakhstan’s position as an aviation hub between Europe and Asia, Bauyrzhan Umiraliyev, head of the Aviation Safety Department at the Civil Aviation Committee, said the national carrier Air Astana plans to purchase 15 Boeing 787 Dreamliner aircraft, with deliveries scheduled between 2026 and 2035. “This is a strategically important decision that can significantly boost civil aviation, the economy, and the country’s international standing,” an aviation authority representative told The Times of Central Asia. “Long-haul aircraft will allow airlines to launch direct flights to destinations in North America, Europe, Asia, and Australia that were previously inaccessible or required layovers.” The aircraft will also enhance Kazakhstan’s attractiveness as a transit hub and tourist destination, while enabling airlines to compete internationally through improved efficiency, pricing, and service quality. The purchase of these aircraft, previously delayed twice since 2025 due to production backlogs at Boeing, is expected to open new opportunities for Kazakhstan’s aviation sector, particularly following the anticipated attainment of Category 1 (CAT-1) safety status, confirming compliance with international aviation standards. CAT-1: The Path to the U.S. In 2024, Kazakhstan’s aviation authorities and the FAA signed an agreement to conduct a technical assessment under the International Aviation Safety Assessment (IASA) program. According to Aslan Satzhanov, Acting Executive Director of the Aviation Administration of Kazakhstan, the assessment identified areas requiring improvement in flight safety oversight. “We are currently working on amendments to regulatory acts to implement modern safety procedures and standardize processes, with technical support from FAA experts,” Satzhanov said. In parallel, experts from the U.S. Transportation Security Administration have conducted preliminary assessments of airport security under the Export Control and Border Security Program. The first visit, in October 2021, resulted in a generally positive evaluation of Kazakhstan’s aviation security framework. A follow-up visit in August 2022 focused on screening procedures for passengers, baggage, and cargo at Astana Airport. “The capital’s airport received a positive assessment, and the coordinated work of aviation security personnel was noted,” Satzhanov said. According to preliminary information, the full IASA audit may take place after long-haul aircraft enter service and relevant infrastructure is fully prepared; though, it should be noted that Kazakhstan does not control the timing of the IASA audit. Industry Awaits New Aircraft Preparations for launching new international routes, including previously announced flights to New York and Tokyo, are already underway....

Society

Large Families in Kazakhstan Are Cutting Back on Food

A new study by analysts at Finprom.kz highlights a concerning trend: in Kazakhstan, food consumption declines as the number of children in a household increases, while the gap between low- and high-income families continues to widen. Drawing on data from the National Statistics Bureau for the fourth quarter of last year, the analysts found a clear pattern: per capita food consumption decreases as family size grows. In households with one child, per capita consumption of meat and meat products stands at 21.8 kg per quarter. In families with four children, this figure falls to 14.8 kg, roughly one-third lower. A similar pattern is evident across other food categories. In larger families, fish consumption is 33.4% lower, dairy products 26.4% lower, fruit 26% lower, and confectionery 22.8% lower. In households with five or more children, the disparities are even more pronounced. Year-on-year data show that the situation is deteriorating in families with four children, where consumption of staple foods continues to decline. Meat consumption fell by 3.2% (around 0.5 kg per person), fish by 5.6%, dairy products by 2%, and potatoes by 7.6%. By contrast, average consumption across Kazakhstan has not declined. On the contrary, overall food intake has increased slightly, suggesting that the negative trend is concentrated among larger, lower-income households. The disparity is particularly stark when comparing the wealthiest 10% of households with the poorest 10%. In the fourth quarter of last year, higher-income households increased consumption across most categories: meat by 3.8%, dairy products by 1.8%, eggs by 6%, and vegetables by 3.4%. Consumption of higher-cost items also rose, including fish and seafood (up 8%), oils and fats (up 10.8%), and confectionery (up 11.9%). In contrast, low-income households reduced consumption in several categories during the fourth quarter of 2025: fish and seafood fell by 11.9%, vegetable oils by 11.3%, and bread and cereals by 4.3%. Modest increases in some items, such as dairy products and eggs, did not offset the overall decline. Meat consumption illustrates the disparity most clearly. In higher-income households, per capita consumption rose from just over 25 kg to around 30 kg per quarter. In low-income households, it remains at approximately 10 kg. For comparison, the recommended daily intake for adults is about 150 grams, or roughly 18 kg per quarter. This suggests that lower-income groups consume significantly less than recommended levels. Overall, the gap between affluent and low-income households is substantial: nearly threefold for meat consumption, 2.4 times for dairy products, and 18.8% for bread and cereals.

EAEU

EAEU Trade Frictions Deepen Despite Shymkent Integration Push

The Eurasian Economic Union (EAEU) met in Shymkent on March 26-27 with a long agenda and a familiar promise: deeper integration, smoother trade, and a more modern common market. Kazakhstan, which holds the bloc’s 2026 chairmanship, used the meeting to push artificial intelligence, digital logistics, industrial cooperation, and the removal of internal barriers. Twelve documents were signed, covering areas including industrial cooperation, transport, and digital integration. “Kazakhstan aims to become a fully-fledged digital country. We have built a modern ecosystem, including Astana Hub and the Alem.ai AI center, and are ready to share experience with EAEU partners on digital regulation and economic transformation,” Kazakh Prime Minister Olzhas Bektenov stated. That sounds ambitious, but it also highlights the bloc’s central weakness. The EAEU has no shortage of plans; it has a shortage of trust between its members, and that matters more. The dynamics extend across the bloc, but are most visible in Kazakhstan and Kyrgyzstan. The EAEU was built to ensure the free movement of goods, services, capital, and labor across Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. But the reality keeps drifting away from the treaty. Kazakhstan’s chairmanship agenda calls for a barrier-free internal market, yet the bloc is entering a new phase of tighter controls, retaliatory measures, and disputes over who really benefits. Shymkent made that contradiction impossible to miss. Prime Minister Olzhas Bektenov promoted an AI-based system to coordinate cargo flows across the union and speed up transit. He also backed the full electronic handling of veterinary and phytosanitary checks, all of which are practical ideas. Central Asia needs faster, cheaper, and more predictable logistics, but digital tools do not solve a political problem. A system becomes more efficient only if its members want it to be open. When they want leverage instead, technology can only make the controls smarter. [caption id="attachment_46024" align="aligncenter" width="1920"] Image: primeminister.kz[/caption] Kazakhstan’s priorities already show where the friction lies. President Kassym-Jomart Tokayev opened his chairmanship by calling for digital transformation, better transport links, and the elimination of internal trade barriers. He also pushed a stronger external profile for the EAEU, with wider links across Asia, the Arab world, and the Global South. That is a serious agenda for a bloc trying to present itself as a Eurasian logistics hub. That push for external expansion comes at a time when internal frictions are becoming harder to manage. It sits uneasily beside everyday trade practice inside the union, where growing trade disputes have become part of the EAEU’s normal life, not an exception to it. The clearest recent example is Russia’s SPOT import-control system, which takes effect for road shipments from EAEU countries on April 1. Importers must submit shipment information two days before trucks reach the border and receive a QR code. Moscow has presented the change as a tax-compliance and anti-fraud measure, with additional financial guarantees expected in later phases of its implementation. In practice, it adds cost, time, and uncertainty before goods even reach the border, the opposite of what a customs union...

Perceptions

Opinion: Central Asia Through Western Eyes – Misconceptions Among Young People

Do you know where Kazakhstan is? Although the question is straightforward, it often causes hesitation on a university campus in Washington, D.C. Some students gesture uncertainly toward Eastern Europe. Others guess the Middle East. Some admit they have never heard of it, often with a nervous laugh. Central Asia remains one of the least understood parts of the world for many young people in the West. It is often defined more by pop culture, history, and imagination than by its diverse reality. “I honestly thought Kazakhstan was somewhere near Afghanistan,” said Michael, a student from Georgetown University. “I didn’t realize it was its own region.” Such knowledge gaps are not unusual. Central Asia is rarely mentioned in Western education systems or media coverage, despite its size, strategic significance, and rich cultural heritage. As a result, assumptions often take the place of understanding and tend to follow similar patterns, which over time may shape Western attitudes toward the region. A Region Reduced to Stereotypes When Western students are asked what comes to mind when they think about Central Asia, their responses often follow a familiar pattern: deserts, nomads, the Soviet Union, and sometimes confusion with other regions. Emily, a student from American University, remarked, “I picture a lot of sand and heat, and perhaps those who ride horses?” Although this image is partial, it is not entirely inaccurate, as the region’s customs and natural surroundings do contribute to its character. However, contemporary cities, academic institutions, businesses, and the region’s cultural diversity are largely absent from these perceptions. Perceptions have also been shaped by pop culture. For some, Kazakhstan is associated less with geography or history than with Borat, the fictional journalist from a Hollywood comedy. Despite being widely recognized as satire, the persona has nevertheless made a lasting impression on viewers unfamiliar with the region. As Sacha Baron Cohen explained, Kazakhstan was chosen precisely because it was largely unknown to Western audiences. According to his explanation, he selected the country because “no one had heard anything about it,” making it a blank canvas onto which Western attitudes about backwardness could be projected. None of the scenes depicting Borat’s “home village” were filmed in Kazakhstan; they were shot in rural Romania. The language Borat speaks is not Kazakh, and the customs he describes bear no relation to everyday life in Kazakhstan. Daniel, a student from George Mason University, asked, half-jokingly, “Is that where Borat is from?” These examples illustrate how humor and media can fill gaps in knowledge. When Kazakhstan first appeared in popular Western media, it was often portrayed through harsh stereotypes, introducing global audiences to a country still defining its image. Between Curiosity and Ignorance However, alongside these misconceptions, there is also genuine interest. “I had no idea it was so multicultural,” said Emma, a student from American University. “We never really learned about it.” This response points to a broader issue: Central Asia is often misunderstood not only because of misinformation, but because of its limited visibility in the...

Football

Uzbekistan´s Footballers Prep for World Cup with Friendlies at Home

Uzbekistan's national football team will play friendly matches against Gabon and Venezuela in the coming days as part of its preparation for this year’s FIFA World Cup. First up for Uzbekistan is Gabon on Friday at Bunyodkor Stadium in Tashkent, followed by a matchup with Venezuela on Monday, March 30 at the same location. Trinidad and Tobago is also participating in the round of friendly matches, and will face Venezuela and Gabon at Pakhtakor Stadium, which is also in the Uzbek capital. Uzbekistan will compete in the World Cup for the first time and faces some tough contenders in the four-member group K. Its first match is against Colombia in Mexico City on June 17. The Uzbek national team then heads to the United States to play Portugal in Houston on June 23. The fourth member of group K is yet to be determined, pending the outcome of play-off matches. Uzbekistan will play that final group match in Atlanta on June 27. Uzbekistan’s team is led by coach Fabio Cannavaro, a former defender who was captain of Italy’s winning team in the 2006 World Cup in Germany.