Kazakhstan Featurees - The Times Of Central Asia

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Healthcare

Kazakhstan Is Rethinking Its Healthcare System, Focusing on Prevention

Kazakhstan’s Ministry of Health has outlined updated investment and development plans for 2023-2027, signaling a shift in the country’s healthcare approach from treating diseases to preventing them, strengthening biosafety, and expanding mental health support. However, some experts warn that the new strategy could have unintended economic consequences, including the reallocation of budget funds toward information campaigns, digital initiatives, and infrastructure projects whose effectiveness may be difficult to assess. One of the key areas of reform is the prevention of noncommunicable diseases. Authorities are considering restrictions on advertising products high in salt, sugar, and trans fats, amid rising childhood obesity rates. According to the Food and Agriculture Organization of the United Nations, 21% of children in Kazakhstan aged 6-9 are overweight. Such restrictions could affect the media market. Research by the Institute for Fiscal Studies indicates that bans on advertising unhealthy food can reduce media revenues. In Kazakhstan, this could increase pressure on an industry already subject to limits on advertising alcohol, tobacco, and certain medications. At the same time, the ministry plans to expand public awareness campaigns, including video content and national initiatives such as “Salamatty shanyraq” (“Healthy Family”). Public health research suggests that the effectiveness of such campaigns can be difficult to measure, and their impact on behavior may be limited. Another priority is the creation of a “biological shield” system, including genomic and metagenomic surveillance, as well as the development of domestic pharmaceutical manufacturing. These initiatives are expected to attract up to $380 million in private investment. However, concerns remain about implementation capacity. Previous reports have highlighted inefficient use of medical equipment. In 2024, Health Minister Akmaral Alnazarova stated that expensive equipment in some medical facilities remained unused. In certain regions, shortages of trained specialists and necessary consumables have prevented effective deployment. The third component of the strategy focuses on mental health. Authorities plan to expand the network of specialized centers and introduce the uSupport digital platform to provide online consultations. At the same time, public trust in the state system remains limited. According to official data, individuals with addictions often avoid seeking treatment due to fears of being registered, which could restrict access to employment, education, and driver’s licenses. Experts also highlight the scale of gambling addiction. Estimates suggest that around 350,000 people in Kazakhstan suffer from compulsive gambling, while the growing availability of online casinos and microfinance services continues to contribute to rising household debt. The shift toward a preventive healthcare model aligns with global trends. However, analysts warn that without effective implementation, the reform could result in increased administrative pressure on businesses, inefficient public spending, and limited improvements in health outcomes.

Qosh Tepa Canal

Afghanistan Advances Qosh Tepa Canal While Urging Regional Water Cooperation

Uzbekistan just hosted the Tashkent Water Week forum, and the speaker many wanted to hear from was the representative from Afghanistan. Central Asia and Afghanistan are being hit hard by climate change. This region has endured several droughts already this decade, and indications are that this year will bring drought again. Hanging over the forum was Afghanistan’s plan to complete the Qosh-Tepa Canal in 2028, which will draw water from a river that Central Asian countries also use and further complicate the regional water situation. [caption id="attachment_18865" align="aligncenter" width="1280"] Qosh Tepa Canal, artist's rendition; image: TCA, Aleksandr Potolitsyn[/caption] Our Fair Share The forum, which actually spanned only two days, March 25-26, brought together some 80 speakers and more than 1,200 delegates from 19 countries. In the past five years, Central Asia has seen noticeably diminished precipitation, melting glaciers, and record high temperatures, making water conservation a priority. The last days of March saw temperatures soar into the 30s Celsius in southern Kazakhstan. In both Kazakhstan and Kyrgyzstan, there were record-high temperatures in February. Rainfall for the last three months of 2025 was also far below normal across Central Asia. When the Taliban government announced in early 2022 that it would build the 285-kilometer-long, 100-meter-wide, 8.5-meter-deep Qosh Tepa to irrigate lands in northern Afghanistan, it added another water concern to Central Asia, particularly the governments in Turkmenistan and Uzbekistan. Afghanistan’s Deputy Minister of Water and Energy, Mujeeb-ur-Rahman Omar, led the Afghan delegation at the Tashkent Water Week. At the forum, he repeated his government’s position that historically, Afghanistan has taken only very small volumes of water from the Amu-Darya River basin, while its northern neighbors have been using large amounts for irrigation for decades. “We believe in the fair and sustainable development of the region,” Omar said, adding, “We intend to develop (water resources) on a legal basis, in accordance with the legal rights of the countries in the region.“ Omar is correct that under international law, Afghanistan has an equal right to water from the Amu-Darya, one of Central Asia’s two great rivers. The river currently marks the border between Afghanistan to the south, and Tajikistan, Uzbekistan, and a small section of Turkmenistan to the north. There is no separate regional water use agreement between the Central Asian states and Afghanistan. Since none of the Central Asian governments officially recognize the Taliban as the legitimate Afghan government, Russia is the only country that does at the moment, there is no possibility of a legal treaty on water use being signed. So, shortly after the construction of the canal is finished in 2028, some 20% of the water in the Amu-Darya, starting from the point just west of the Tajik-Uzbek border, will be diverted into the Qosh Tepa canal. It is already clear that this will mean the end of some downstream communities in Uzbekistan and Turkmenistan that are on the edge of the Kara-Kum Desert and which are already under strain from insufficient water supplies. Turkmenistan did not send a...

Fuel Prices

Central Asia Avoids Fuel Shock as Global Pressures Build

Central Asia has so far avoided the immediate fuel shocks spreading across much of the world following the U.S. and Israel’s war with Iran. There are no lines at gas stations, no visible shortages, and no signs of panic buying. But that stability sits within a rapidly tightening global market, where disruptions in Asia and policy responses in Europe are reshaping fuel flows in ways the region will struggle to avoid. Across Southeast Asia, governments are already taking precautionary steps. Some state agencies and private firms are shifting parts of their workforce to remote work to reduce fuel consumption and prepare for potential price spikes and logistics disruptions, while Thailand is preparing contingency measures, including possible fuel rationing. China, one of Asia’s largest suppliers of refined fuels, has moved to restrict exports of gasoline, diesel, and jet fuel in an effort to prevent domestic shortages linked to the war. The move is expected to tighten supplies across Asia, especially for countries that rely on Chinese fuel imports. China supplied about one-third of Australia’s jet fuel last year, highlighting the wider regional impact, and roughly half of the Philippines’ and Bangladesh’s in 2024. Vietnam has already warned airlines to prepare for flight reductions in April due to the risk of shortages caused by these export restrictions. Indonesia is also imposing limits on fuel sales. Fuel-related pressures have begun to emerge in Europe as well. Poland has introduced tax measures aimed at reducing fuel prices, with the government saying this will lower prices for consumers. Slovenia, meanwhile, has introduced significant restrictions on fuel consumption. Under new rules, private motorists are limited to purchasing a maximum of 50 liters per day, while businesses and farmers may purchase up to 200 liters daily. The combined effect of war-driven energy shocks and renewed tariff barriers is raising global costs and adding pressure across trade, transport, and inflation. Against this backdrop, Central Asia’s apparent stability is misleading. It is highly unlikely that import-dependent states such as Kyrgyzstan and Uzbekistan will be as well protected as Kazakhstan, which may benefit in the short term from higher crude prices. Starting April 1, Russia is banning gasoline exports in an effort to stabilize its own domestic market. Russia is a key fuel supplier to Central Asia. However, according to assurances from the Ministry of Energy of the Russian Federation, the temporary export ban will not affect supplies to Uzbekistan. Deliveries under intergovernmental agreements are expected to continue, ensuring that at least part of the region’s supply remains uninterrupted. In Kyrgyzstan, despite recent developments, fuel prices and supplies remain relatively stable. The government is considering lowering taxes or temporarily waiving excise duties for fuel importers should the crisis continue. Information from Turkmenistan is difficult to verify independently. Despite reports of fuel shortages at gas stations last year, official media are now indicating a significant increase in domestic gasoline production. The production plan for January-February 2026 was reportedly fulfilled at 122.7%, according to Deputy Chairman of the Cabinet of Ministers Guvancha...

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....

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...