• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10456 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10456 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10456 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10456 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10456 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10456 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10456 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00212 0%
  • TJS/USD = 0.10456 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%

Viewing results 331 - 336 of 1913

How Armenia–Azerbaijan Peace Lowers Corridor Risk for Central Asia

The framework announced on 8 August 2025 in Washington for Armenia–Azerbaijan peace and development resets the security–economics equation in the South Caucasus and holds deep implications for Central Asia. At its core is the mutual recognition of territorial integrity, renunciation of force, and a transit arrangement under Armenian jurisdiction linking mainland Azerbaijan with its exclave of Nakhchivan across the Syunik province. For Central Asia, the immediate significance is the de-risking of the westbound Caspian–Caucasus–Anatolia artery centered on Azerbaijan’s Alat Port and the Baku–Tbilisi–Kars (BTK) rail route. As reported by Azerbaijan Railways, BTK’s operating capacity was lifted to 5 million tons/year (t/y) in May 2024 and has a path for expanding to 17 million tons in later phases. Alat currently lists 13 berths and dedicated ferry roll-on/roll-off (“ro-ro”) facilities. A dependable Armenian-jurisdiction link would create a second, legally unambiguous passage across the South Caucasus. Single-route dependence through Georgia would be reduced, as would the variance of end-to-end journey times. That reliability directly benefits Kazakhstan and Turkmenistan, whose westbound flows move by rail-ferry from Aktau/Kuryk to Alat and from Turkmenbashi to Alat before continuing overland toward Türkiye. Peace Reframes the Middle Corridor These developments also strengthen the business case for incremental investments in ports, ferries, rail paths, and energy interconnectors tied to the Middle Corridor, including swap-based energy routing already practiced between Azerbaijan and Kazakhstan. At Alat, confirmed as the hinge of the Middle Corridor, political risk converts into bankable time, which prices into contracts, which later in turn finances small but decisive capacity steps; bankable time begets bankable trade. Conflict risk in the South Caucasus has been a priced variable since 2020. A durable peace narrows that risk band and yields three operational effects with country-specific salience. First, marine war-risk and cargo premiums in nearby high-risk theaters such as the Gulf, typically ranging from 0.2–0.3% of hull value, rose to 0.5% during recent tensions. This figure offers a benchmark for how underwriters re-price routes as perceived closure risk changes. Second, forwarders can trim buffer time, improving asset utilization for rail paths and ro-ro (roll on, roll off) rotations pairing the Caspian ports (Alat, Aktau/Kuryk, Turkmenbashi). Third, carriers gain confidence to publish regular rotations and pre-position equipment; the Azerbaijan Caspian Shipping Company notes 1–2-day intervals in favorable conditions and shows multiple departures on a given day (e.g., August 15 listed Alat–Kuryk, Alat–Turkmenbashi, etc.). Lower variance is not cosmetic; it is collateral for contracts. Banks recognize collateral. Insurers do, too. When variability falls, rate discovery improves; as a result, multi-month slots or rail-path agreements become financeable. This is precisely the mechanism exporters from Kazakhstan and Turkmenistan need to secure predictable capacity into Azerbaijan and onward to Türkiye. Reliability also changes routing choices. At Alat, rail-ferry cargo arriving from Aktau/Kuryk or Turkmenbashi can be planned to run either via Georgia or via Syunik toward Kars, whichever route minimizes dwell time and schedule variance for the onward leg. Even where pure distance savings are modest, gains in reliability reduce movements of empty containers. They also...

Kazakhstan Pushes Nationwide AI Rollout Amid Cybersecurity Risks and Skills Shortages

Kazakhstan is preparing to deploy artificial intelligence (AI) on a large scale across the economy, government, and education. However, experts warn that without transparency, constant auditing, and stronger oversight, the program risks falling short of its goals. Slow Progress and Security Risks A meeting on AI development was held in Astana on August 11, attended by President Kassym-Jomart Tokayev, Prime Minister Olzhas Bektenov, and senior government officials. According to Tokayev, Kazakhstan’s main objective is to become a digital hub in Eurasia, but sluggish implementation, weak control mechanisms, and a shortage of qualified personnel are stymying progress. “I have already spoken about accelerating the creation of a unified national digital ecosystem," Tokayev said. "I have instructed that the necessary infrastructure be prepared, a legislative framework and data collection system be developed, and work begin on the introduction of artificial intelligence. However, the progress in implementing these instructions is unsatisfactory.” Cybersecurity is the priority, as current systems remain highly vulnerable. Since the start of the year, more than 40 major data breaches have occurred. The largest incident, in June, leaked 16.3 million records containing the personal data of Kazakh citizens, out of a population of 20 million, into the public domain. This was confirmed by Olzhas Satiev, president of the Center for Analysis and Investigation of Cyber Attacks (CARCA). By the end of the year, AI is set to be incorporated into e-government and Smart City projects, with a particular emphasis on the AI-Sana program, which aims to develop human capital and transform universities into research centers. The government is also responsible for introducing AI into state agencies and national companies, as well as drafting new legislation regulating AI. There are also plans to migrate all state and quasi-state digital systems onto a single sovereign platform. The national digital platform, QazTech, entered into commercial operation in July. Partnerships With China Kazakhstan intends to work closely with China on new digital products. Tokayev has pointed to China’s DeepSeek platform, developed for $6.5 million, far below the cost of Western equivalents, as an example to learn from. In February 2025, the National Academy of Sciences signed a memorandum with Zhejiang University of Technology, establishing an International Joint Laboratory for Spatio-Temporal Artificial Intelligence and Sustainable Development. The lab will focus on energy and climatology projects. In August, Tokayev expressed support for China’s proposal to create a World Organization for AI Development. Concerns Over Oversight and Staffing Independent analysts believe Kazakhstan has the potential to integrate AI into many aspects of daily life, given its relatively high level of digitalization. However, they warn of the risk of large sums being wasted on ineffective projects. Economist Rassul Rysmambetov has called for a full audit of more than a thousand large state IT systems to identify ineffective platforms. He also highlighted the shortage of skilled personnel: “There is too much technology, but not enough staff. Investments and start-ups sound like good slogans, but where are the professionals? I have often seen IT specialists forced into other jobs due to...

Kazakhstan’s Student Housing Crisis Deepens

Kazakhstan continues to face a severe shortage of student dormitories, with many new facilities being built in locations that do not address the areas of greatest need, according to a report by analysts at Energyprom.kz. Demand far outstrips supply In the 2024/2025 academic year, the country had 336,400 non-resident students, 7.5% more than the previous year. The largest concentrations were in Almaty (123,500), Astana (51,900), and Shymkent (28,500). Of these, 131,400 required dormitory accommodation, but only 95,900 places were available. On average, just 39% of non-resident students in need were housed. In some regions, the situation was far worse: in Aktobe region, almost 70% of students seeking accommodation could not get it; in North Kazakhstan region, the figure was 68.8%; and in Turkestan region, 58.5%. While the national average shows 73% of students have access to some form of housing, regional disparities are stark. Only eight out of 20 regions fully met demand. The lowest provision rates were recorded in Aktobe (50.4%), Almaty (60.3%), and Abai region (69.1%). As a result, even in relatively well-served areas, many students are forced to rent costly and often substandard accommodation. Misaligned construction priorities In the first half of 2025, 22 dormitories were commissioned nationwide, up from 18 in the same period last year. However, half were designated for workers and migrants rather than students. Only six were built specifically for students, while four were family-type facilities. The Atyrau region saw the most activity, with six dormitories built, followed by Astana (four) and Akmola and Mangistau regions (three each). Notably, no new student dormitories were built in either Aktobe region or Almaty, where demand is highest. Paradoxically, Atyrau, where 99.7% of demand is already met and only 26.3% of students require housing, recorded the highest construction rates. Rising student numbers add pressure The problem is compounded by an influx of internal and international student migrants. In the first quarter of 2025 alone, 8,900 such students arrived, a 26.3% increase year-on-year. Almaty led the inflow with 2,100 new students, up from 1,400 last year (+48.9%). It was followed by Astana, Shymkent, Almaty region, and Turkestan region. Only Pavlodar region maintained last year’s intake, while Ulytau and Akmola regions saw declines. Analysts note that while the growth reflects the appeal of Kazakhstan’s leading universities, it is placing additional strain on an already inadequate student housing system.

Kazakhstan Tops Central Asia for GDP per Capita, Surpassing Russia and China

Kazakhstan has emerged as the regional leader in gross domestic product (GDP) per capita, overtaking both Russia and China, according to the International Monetary Fund (IMF). IMF data shows that in 2025 Kazakhstan’s GDP per capita reached $14,770, compared to $14,260 in Russia and $13,690 in China. Within Central Asia, Turkmenistan followed with $13,340, while Uzbekistan posted $3,510, Kyrgyzstan $2,750, and Tajikistan $1,430. Kazakhstan also leads among Commonwealth of Independent States (CIS) members, ahead of Georgia ($9,570), Armenia ($8,860), Moldova ($8,260), Belarus ($7,880), Azerbaijan ($7,600), and Ukraine ($6,260). Only the Baltic states recorded higher figures: Estonia ($32,760), Lithuania ($30,840), and Latvia ($24,370). Ireland remained Europe’s leader with $108,920 per capita. The IMF calculates GDP per capita at current prices, offering a snapshot of purchasing power and overall economic wellbeing. Its analysts attribute Kazakhstan’s strong performance to vast mineral resources, with energy and mineral exports continuing to drive growth. Recent years have also seen expansion in raw material processing and production of high value-added goods. The report cites ongoing business reforms, foreign investment inflows, and infrastructure upgrades as key factors enhancing competitiveness. Significant spending is going into transport, logistics, technology, education, healthcare, and social services, bolstering domestic demand and labor productivity. Kazakhstan’s strategic position on trade routes linking Europe and Asia, participation in the Belt and Road Initiative, and active engagement with Russia, China, the EU, and other partners are also seen as growth drivers. The IMF notes that macroeconomic stability is supported by low inflation, a steady tenge exchange rate, and a balanced budget. “The policies of the National Bank and the government are helping to maintain economic stability even amid global challenges,” the report states. The Times of Central Asia previously reported that, according to IMF forecasts, Central Asian economies are expected to grow faster than the global average in 2025.

Kazakhstan Presses Oil Giants as Kashagan Revenues Face Scrutiny

The media in Kazakhstan is once again debating the revision of production sharing agreements (PSAs) with foreign companies in the country’s major oil consortia. PSA LLP, the state-owned operator authorized by the Ministry of Energy to represent Kazakhstan’s interests in the North Caspian Production Sharing Agreement, has released new data on revenues from the Kashagan field, information expected to reignite calls to amend agreements with major Western oil producers in Kazakhstan’s favor. President Kassym-Jomart Tokayev has publicly backed the discussion. In January, he instructed the government to intensify negotiations with foreign investors. "The implementation of production-sharing agreements for large fields has allowed Kazakhstan to become a reliable supplier of energy to the global market. These projects have made a great contribution to the country’s socio-economic development. However, large investments require a long-term planning horizon. Therefore, the government must intensify negotiations on extending PSA contracts, possibly on revised terms that are more favorable for Kazakhstan,” Tokayev said at an expanded government meeting. The PSA company, headed by Tokayev’s nephew, Beket Izbastin, reported that in 2024, the Kashagan consortium’s total revenue from oil, gas, and sulfur sales exceeded $11 billion. Of this, 80% covered capital and operating costs (“Cost Oil”), while only 20% came from “Profit Oil,” amounting to $2.2 billion. Kazakhstan’s share was 10%, or $220 million. Including the $430 million in taxes paid by the operator, NCOC, the country’s total revenue was $650 million. “With revenues of $11 billion, the republic’s share, including taxes, was only 6%, the lowest among oil companies not only in Kazakhstan but globally,” PSA said. Under the current terms, Kazakhstan’s share of Profit Oil will not increase until three billion barrels have been extracted from Kashagan. Only the first billion has been produced over the past decade. Shareholders are expected to begin paying a 30% income tax soon; KazMunayGas has already transferred an initial $45 million payment from the Kashagan profits. The fairness of this revenue distribution is now a central point of debate. Some observers believe the renewed focus ahead of the next parliamentary session could signal that Tokayev will again raise the issue in his annual address, alongside agreements for Karachaganak and Tengiz, the other pillars of Kazakhstan’s oil sector. Tengiz operates under a contract expiring in 2033, earlier than Karachaganak (2037) and Kashagan (2041). At his press conference in Astana last month, Prime Minister Olzhas Bektenov confirmed that negotiations with major oil companies had only just begun. “Indeed, there is a view that the country’s interests are significantly infringed upon. We are starting negotiations with our consortium partners to conclude new PSAs for a new period. This will be done in a measured and balanced manner, without sudden moves, while defending the national interests of our country,” Bektenov stated. The question of what exactly constitutes “national interests” remains open. In February, Mazhilis deputy Edil Zhanbirshin linked the issue to Kazakhstan’s dependence on imported fuel. Despite the $3.7 billion spent on modernizing the country’s three oil refineries, annual processing volumes remain below 18...

World Bank: Central Asia’s Growth to Slow but Remain Resilient

Central Asia is set to remain one of the world’s fastest-growing regions, although its economic momentum is expected to moderate in the coming years, according to the World Bank’s Spring 2025 Europe & Central Asia Economic Update. The region posted a growth rate of 5.5% in 2024, with projections of 5.0% for 2025 and 4.4% for 2026 as oil output normalizes in Kazakhstan, re-exports fade, and remittance inflows settle. The World Bank also revised its 2024 forecast upward by 0.8 percentage points, citing stronger-than-anticipated domestic demand. The forecasts incorporate data available through April 10, 2025. Country-Level Outlook Uzbekistan is forecast to grow by 6.5% in 2024, followed by 5.9% in both 2025 and 2026. Kyrgyzstan is expected to expand by 9.0% in 2024 and 6.8% in 2025. Tajikistan will grow by 8.4% in 2024 and 6.5% in 2025. Kazakhstan’s growth is projected to be more moderate, at 4.8% in 2024 and 4.5% in 2025. The World Bank attributes much of the region’s expansion to robust domestic demand, including household consumption, investment, and government spending, rather than export performance. Remittances continue to play a vital role in economic stability: they account for nearly 40% of GDP in Tajikistan, over 20% in Kyrgyzstan, and are critical in reducing poverty in Uzbekistan, where poverty rates would nearly double in their absence. Investment and Long-Term Prospects With investment comprising about 26% of GDP, Central Asia boasts one of the highest investment-to-GDP ratios among developing regions. This is largely driven by construction and large-scale infrastructure projects, particularly in the energy and transport sectors. However, the road to high-income status remains long. According to the Bank, based on current trajectories, it would take Kazakhstan and Turkmenistan approximately 40 years, Kyrgyzstan 70 years, and Uzbekistan and Tajikistan over 100 years to reach the high-income threshold of $14,005 in per capita income, a benchmark set for 2023. Risks and Policy Recommendations These forecasts are based on data available through April 10, 2025, and reflect persistent challenges stemming from the COVID-19 pandemic, ongoing cost-of-living pressures, and regional trade disruptions since 2022. To sustain momentum, the World Bank urges policymakers to pursue structural reforms and channel investment into productivity enhancements, technology adoption, and innovation. Without such efforts, growth could fall below potential in the years ahead.