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Tobacco

Kazakhstan Vape Ban Faces a Test Under Eurasian Economic Union Rules

Kazakhstan banned vapes two years ago, but anti-tobacco organizations now fear that new rules being developed by the Eurasian Economic Union (EAEU) could allow them back onto the market. Public health advocates have appealed to President Kassym-Jomart Tokayev, accusing the government's economic officials of attempting to weaken the restrictions. Undermining Prohibition? Since June 2024, Kazakhstan has prohibited the production, import, and sale of electronic cigarettes, vaping liquids, and certain smokeless tobacco products. This includes snus, a form of tobacco placed under the upper lip. Violations can result in criminal prosecution. The EAEU, which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, is developing a common technical regulation for nicotine-containing products allowing manufacturers to operate under common standards across several national markets. The Coalition for a Smoke-Free Kazakhstan argues that the regulation, being developed at Armenia's initiative, could create a legal basis for resuming trade in products currently banned in Kazakhstan. However, a version of the proposed draft prepared by Russia's Agriculture Ministry in November 2025 explicitly states that products cannot be placed on the market in EAEU member states where their circulation is prohibited under national law. Compliance with common technical standards would therefore not, by itself, authorize vape sales in Kazakhstan. It remains unclear whether this provision has been retained in the text currently under negotiation. A Boon for the Treasury The coalition also accused Deputy Prime Minister and Minister of National Economy Serik Zhumangarin of pressuring the Ministry of Health. According to the activists, he has been pushing for approval of the regulation despite the ministry's objections. In July, Zhumangarin met with executives from Philip Morris International, a multinational tobacco company with manufacturing operations in Kazakhstan. According to the government, the deputy prime minister supported common EAEU rules that would take national legislation and public health commitments into account. The company presented plans to establish a laboratory in Kazakhstan to test nicotine-containing products, with the facility also intended to serve markets in other countries. The tobacco industry generates substantial revenue for Kazakhstan's budget. In 2025, excise taxes on tobacco products totaled 330.7 billion tenge (approximately $735 million). During the first three months of 2026, Kazakhstan exported $42.5 million worth of cigarettes. The Hookah Lobby In spring 2026, Kazakhstan also debated relaxing its anti-tobacco legislation by allowing hookah smoking in licensed restaurants and other food-service establishments. Hookah smoking has been prohibited in enclosed public places since 2020. Supporters of legalization argued that the restrictions had driven the hookah business underground. According to their estimates, approximately 22,000 establishments offer hookahs. They projected that licensing would generate more than 16 billion tenge annually (approximately $35.5 million) in government revenue. The anti-tobacco coalition opposed the proposal. Its leader, Jamilya Sadykova, warned that licensing would effectively legalize tobacco use in places where the government is supposed to protect customers and employees from smoke exposure. In August, the World Health Organization supported maintaining the existing ban. Nevertheless, hookahs continue to be offered in cafes and specialized establishments, and customers are periodically fined during police raids....

Nuclear Energy

U.S. Promotes Small Nuclear Reactors in Uzbekistan

The United States is promoting small modular nuclear reactors in Uzbekistan as Tashkent develops its nuclear power sector with Russia. Secretary of State Marco Rubio promoted the technology during his October 19 visit to Samarkand, linking it to rising energy demand. “We’re introducing U.S. small modular reactors and modernizing the Uzbek electric grid and gas distribution network,” Rubio told the U.S.-Uzbekistan Business and Investment Council. He said the cooperation would help the government keep pace with growing energy demand. Rubio did not name a reactor supplier or announce financing or a construction schedule for an American plant. Uzbekistan’s interest predates Rubio’s visit. In November 2025, the country expressed interest in studying designs from Holtec, GE Hitachi, and NuScale, according to the World Nuclear Association. Tashkent has pursued those discussions alongside its current nuclear partnership with Russia. Small modular reactors generally have an electrical capacity of up to 300 megawatts per unit, according to the International Atomic Energy Agency. Factories can manufacture their components and assemble them on site. Utilities can add smaller units in stages as demand increases. For Uzbekistan, nuclear power forms part of an effort to expand electricity supply as domestic gas production declines. Once a net gas exporter, the country became a net importer in 2023. Gas output fell 16.3% year-on-year in January-August 2026, increasing pressure on supplies. The World Nuclear Association puts natural gas at 76% of Uzbekistan’s electricity output in 2023. Reducing the amount burned in power stations could ease import needs and leave more available for industry, including petrochemicals. Russia’s state nuclear corporation Rosatom is developing Uzbekistan’s first nuclear complex in the Forish district of the Jizzakh region. The design combines two large Russian VVER-1000 reactors with two smaller RITM-200N units, providing about 2.1 gigawatts of capacity. The smaller reactors are each rated at 55 megawatts. Presidents Shavkat Mirziyoyev and Vladimir Putin launched the project by video link in June, accompanied by a concrete pouring ceremony. The development has expanded substantially since the countries agreed in 2024 to build a plant consisting of six small reactors. The published schedule envisages a technical launch of the first small unit in late 2029, with the larger units following in the 2030s. Nuclear generation is therefore several years away. Uzbekistan must also improve the networks that deliver electricity to homes and businesses. Following a nationwide referendum on the issue, Kazakhstan is also investing in nuclear power. Its planned Balkhash plant, near Ulken on Lake Balkhash, will use Russian technology. A nuclear agreement signed in May envisages two VVER-1200 reactors with a combined capacity of about 2.4 gigawatts. Kazakhstan’s Atomic Energy Agency put the project’s cost at approximately $16.5 billion, including security and supporting infrastructure. Kazakhstan’s strategy calls for at least three nuclear power plants by 2050. China National Nuclear Corporation has been selected to lead the second project. The country is the world’s largest uranium producer, but developing power stations also requires foreign reactor technology and expertise. Kazakhstan and Uzbekistan have begun cooperating on nuclear safety. Officials...

Chess

Turkmenistan Pushes to Develop Chess Talent

Turkmenistan is hosting a national chess tournament this month amid signs that efforts to develop young chess players are gaining momentum. The Turkmenistan Chess Federation Cup runs from October 22 to November 1 in Ashgabat, featuring the disciplines of classical, rapid, and blitz chess. Young prospects and grandmasters are among those expected to participate. Top performers will qualify for the 2027 Turkmenistan Premier League, while the strongest rapid and blitz players will earn the opportunity to represent Turkmenistan in international competitions, according to state media. A powerhouse of Central Asian chess is Uzbekistan, whose open team, including Javokhir Sindarov and Nodirbek Abdusattorov, won gold at the Chess Olympiad in Samarkand in September. Kazakhstan´s women won silver at the Chess Olympiad, and the country’s juniors excelled at the just-completed World U7-U17 Championships in Roquetas de Mar, Spain. FIDE, the global governing body of chess, noted Kazakhstan’s “outstanding medal haul across the age categories” at the event in Spain. Turkmenistan, meanwhile, is working to develop chess at the grassroots level. State media reported this month that the qualifying rounds of the second league of the 2026 Turkmenistan Chess Championship had concluded in Ashgabat, Dashoguz, Turkmenabat, and Mary. “The competition was held in parallel and attracted a record number of participants in the history of the tournament – 401 chess players,” said Turkmenistan: Golden Age, a state news site. It said the second league was established in 2023 to make it easier for people in more regions of the country to participate and advance to higher levels of competition. The league’s player base of the competition has grown by 23 percent since it started several years ago, the news site reported, adding that most of the players are young children and teenagers. Turkmenistan has produced a small number of grandmasters since independence from the Soviet Union in 1991. In 2025, it signed a memorandum to establish the Turkic Chess Association. Other signatories are Azerbaijan, Kazakhstan, Kyrgyzstan, Türkiye, and Uzbekistan. The goals of the association include strengthening ties among national chess federations, organizing major tournaments, and developing programs for children and youth, according to FIDE. It said signatory countries represent a region with about 170 million people and more than 100 grandmasters.

CICA

Kazakhstan Proposes a Preventive Diplomacy Mechanism for CICA

Kazakhstan’s proposal to establish a preventive diplomacy mechanism presents the Asian forum with a specific task: determining who, with whose consent, and through what procedures can help reduce tensions before they escalate into open conflict. On October 15, 2026, at the seventh summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA) in Baku, Kazakhstan’s President Kassym-Jomart Tokayev proposed launching a preventive diplomacy mechanism. The initiative came amid efforts to transform CICA into a full-fledged international organization and make its activities more practical. However, the proposed mechanism’s process for requesting assistance, powers, funding, and operating procedures were not detailed in the summit announcement. For Central Asia, crisis prevention has direct practical significance. Disagreements over water use, transit restrictions, or disruptions to cross-border infrastructure can affect several countries simultaneously. Even a technical problem can take on a political dimension if the parties lack agreed-upon information and have no way to discuss the situation quickly. Preventive diplomacy is useful at a stage when there is still room for agreement, but routine working contacts are no longer sufficient. CICA already has a foundation for such work. Its activities are based on sovereign equality, noninterference, and consensus-based decision-making. The Catalogue of Confidence Building Measures covers military-political, economic, environmental, and human issues, as well as new challenges and threats. Its agenda includes transport corridors, energy security, and cooperation in the digital sphere. Discussions on crisis prevention can therefore be linked to existing areas of cooperation. As Aigerim Bakhtiyarova, deputy director of the Institute of Applied Research and Analytics at the Academy of Public Administration under the President of the Republic of Kazakhstan, noted in comments to The Times of Central Asia, differences in the foreign policy doctrines and geopolitical positions of CICA member states do not diminish their shared interest in regional security. “Today, strategic predictability has become a very rare but very important condition for multilateral partnership, essential for peace, stability, and development,” the expert said. In her assessment, even countries engaged in open rivalry have an interest in maintaining channels of communication that can prevent conflicts from spreading and limit the associated economic and humanitarian costs. However, a shared interest in preventing conflicts does not necessarily mean that states are prepared to grant additional powers to a multilateral mechanism. The principle of consensus creates conditions for trust while also setting limits on the future mechanism. When members’ interests diverge, agreeing on a collective position may take longer than the pace of a developing crisis allows. Therefore, in developing the initiative, it is important to determine which actions require a separate decision by all member states and which can be carried out under a previously agreed mandate, at the request and with the consent of the parties directly concerned. The following are possible approaches to implementing the proposal, rather than announced components of the mechanism. One realistic option could be a system of national contact points authorized to receive requests for urgent consultations. Their task would be to quickly connect the...

Logistics

Kazakhstan’s Warehouse Market Faces Mismatch Between Supply and Demand

Central Asia is seeking a larger role in trade between China and Europe by offering alternative shipping routes that bypass Russia. However, growing interest in transit has not been matched by balanced development of warehouse infrastructure. Some transport hubs face shortages of modern facilities, while others have vacant space. For international freight operators and retailers, this means additional costs. For investors, it raises the risk of financing warehouses that may struggle to attract tenants. These contradictions were discussed on October 15 in Almaty at the Central Asia Warehouse Summit 2026, organized by consulting firm IBC Global. The summit brought together industry representatives and investors. Research presented at the event showed a growing disconnect between warehouse construction and actual demand. Vacant Warehouses Exist, but Not Where They Are Needed According to IBC Global, the vacancy rate for modern warehouse space in Kazakhstan is about 5%. This gives tenants more options when choosing facilities and negotiating rents. However, the national figure masks significant differences between cities and types of warehouse space. Industry estimates put Astana's shortage of modern warehouse space at approximately 350,000–400,000 square meters. Separately, property consultancy Bright Rich reported that Almaty's warehouse vacancy rate had reached 13.3% in May 2026. These estimates come from different periods and surveys, and should not be treated as directly comparable. Class A warehouses are modern facilities with high ceilings, loading docks, security systems, and infrastructure designed to handle large volumes of goods. Kazakhstan's warehouse market is nevertheless expanding rapidly. According to an IBC Global ranking presented at the summit, the total area of Class A warehouses covered by its research increased by 39% over the past year to 730,000 square meters. More than half of that space, approximately 400,000 square meters, is controlled by the five largest property owners. Their facilities are concentrated mainly in Almaty and Almaty Region, Astana, and Shymkent. Developers Continue Building Despite Weaker Demand A survey of more than 100 warehouse market participants across four Central Asian countries revealed a gap between developers' plans and tenants' expectations. According to IBC Global, 81% of developers intend to launch new projects or complete facilities already under construction within the next twelve months. Yet 62% of developers surveyed identified weak tenant demand as the main obstacle to market development, while 52% cited the high cost and limited availability of financing. IBC Global's market sentiment index for Kazakhstan stood at 48.1 points in the third quarter of 2026, below the neutral threshold of 50. However, 52% of respondents expect supply and demand to move closer to equilibrium over the next year. The risks are particularly high for speculative developments launched without a tenant already under contract. Developers expect to secure customers after construction is completed, but by then business requirements and market rental rates may have changed. One alternative is the build-to-suit model, in which a facility is constructed to meet the requirements of a specific tenant. Its location, size, equipment, and operating conditions are agreed upon in advance. This reduces vacancy risk for...

Taxi Competition

Yandex Go Outage Boosts Rival Taxi Services in Uzbekistan

The ripple effects of this month's Yandex Go outage are still being felt across Uzbekistan's taxi market. Rival ride-hailing services have reported a surge in bookings, while a senior government official has raised the prospect of further competition, revealing that a Chinese company plans to launch its own taxi app with a fleet of 5,000 vehicles. Uzbekistan's First Deputy Minister of Transport Mamanbiy Omarov disclosed the unnamed investor's plans in an October 16 interview with Spot, although further details were scant. On October 11, Yandex Go users in Uzbekistan experienced disruptions when trying to book rides. The app also operated intermittently in Kazakhstan and Kyrgyzstan. The outages coincided with a series of drone strikes targeting Yandex data centers in Russia. Between October 8 and 11, attacks affected company facilities in the Ryazan and Kaluga regions, followed by a strike in Vladimir. Server disruptions also hit delivery and other digital services used by people across Central Asia. Yandex Go accounted for approximately 85% of receipts issued through taxi aggregators in Uzbekistan in 2024, according to figures from the country's Tax Committee. Between October 11 and 13, orders through Uklon rose to two to three times normal levels, while MyTaxi, which operates only in Tashkent, reported 15 times its usual volume, according to Spot. MyTaxi said its own servers are located in Uzbekistan and outlined plans to retain the new passengers attracted during the disruption. It remains unknown where the Chinese operator's servers will be located or which companies will provide its technical infrastructure. These details would help establish how dependent the service might be on infrastructure outside Uzbekistan. Chinese automakers already operate in Uzbekistan, while companies from China are involved in developing the country's transport infrastructure. The proposed fleet could give the new operator a significant presence, particularly if it concentrates on Tashkent. However, Chinese companies have not always succeeded in challenging Yandex's position in Central Asia. Ride-hailing giant DiDi entered neighboring Kazakhstan in 2021 but withdrew in March 2022, less than a year after launching. The company cited changing market conditions and other challenges, although it did not explain its decision in detail.