Kazakhstan Featurees - The Times Of Central Asia

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Baikonur Cosmodrome

Baikonur Cosmodrome: Liftoff for Discovery and Diplomacy

On July 14, 2026, Kazakhstan's Baikonur Cosmodrome will once again serve as the launchpad for discovery and diplomacy. As the site where Soyuz missions carry international crews into orbit, Baikonur continues to show how nations can cooperate in space even when relations are strained. According to NASA, astronaut Dr. Anil Menon and Roscosmos cosmonauts Pyotr Dubrov and Anna Kikina will travel aboard the Soyuz MS-29 spacecraft to the International Space Station (ISS), where they will spend eight months as members of Expeditions 74 and 75. They are scheduled to launch at 10:47 a.m. EDT (7:47 p.m. Baikonur time). The launch will be broadcast live on NASA+, Amazon Prime, and NASA's YouTube channel. According to Ambassador Erzhan Kazykhan, Permanent Representative of Kazakhstan in Geneva, who spoke with The Times of Central Asia, “Kazakhstan supports practical cooperation between the United States and the Russian Federation in space research and remains committed to facilitating such collaboration where appropriate. The Baikonur Cosmodrome will continue to support international space missions and scientific research. The city of Baikonur remains an important center for space science, engineering, and launch operations.” Since its establishment in 1955, the Baikonur Cosmodrome has played a historic role in space exploration, hosting the launch of Sputnik 1 and Yuri Gagarin’s first human spaceflight. Today, Kazakhstan and Russia continue to cooperate on the use of the facility, which remains an important launch site for missions to the International Space Station and other space programs. Baikonur contributes to Kazakhstan’s economic development through lease revenues, employment, infrastructure growth, and international partnerships. It also supports the development of the country’s space capabilities. For more than 25 years, astronauts and cosmonauts have lived and worked continuously aboard the International Space Station, demonstrating the durability of U.S.-Russian space cooperation even during periods of significant political tension. The ISS operates as an integrated platform, with the U.S. and Russian sections providing complementary capabilities, including propulsion, power, life support, and research support. Crew-exchange agreements have helped maintain continuous staffing, reflecting both nations’ commitment to operational safety, scientific cooperation, and mission continuity. [caption id="attachment_52042" align="aligncenter" width="2048"] Baikonur Cosmodrome in Kazakhstan. Credit: NASA/Joel Kowsky[/caption] The Soyuz MS-29 launch from Baikonur on July 14 symbolizes U.S.-Russian teamwork in space and suggests that scientific cooperation can provide a model for diplomacy beyond the launchpad. Ambassador Kazykhan added, “Kazakhstan believes that the path forward lies in advancing initiatives that produce tangible results, bridge differences, and rebuild confidence among nations. The cooperation enabled through the Baikonur Cosmodrome, as well as joint efforts in support of the International Space Station, demonstrate that space can remain a powerful platform for dialogue, partnership, and collective responsibility.” Toktar Aubakirov, Talgat Musabayev, and Aidyn Aimbetov are the three cosmonauts from Kazakhstan to have traveled into space. Musabayev traveled to the International Space Station in 2001, followed by Aimbetov in 2015.

Donald Trump

Tokayev and Trump Put Results at the Center of a Growing Partnership

Investment, nuclear security and a possible visit to Kazakhstan featured in a July 10 telephone call between Kazakh President Kassym-Jomart Tokayev and U.S. President Donald Trump. Tokayev began by congratulating Trump on the 250th anniversary of U.S. independence. He noted that the United States had become a global superpower within three generations and expressed support for what Akorda described as the Trump administration’s “common-sense policies”. The Kazakh president also said those policies aligned with his own vision of building a Just Kazakhstan based on law and order. The language reflected the increasingly warm tone of the relationship and Tokayev’s effort to engage Trump through themes of national strength, order and economic achievement. The discussion soon turned to results. Tokayev reported progress in implementing agreements reached during his November 2025 visit to Washington. During that visit, Kazakh and U.S. partners announced 29 deals and cooperation initiatives worth nearly $17 billion, according to Kazakh officials. They included a planned $1.1 billion tungsten project involving U.S.-based Cove Capital. Kazakhstan’s scale gives the relationship wider strategic weight. By far Central Asia’s largest economy, it accounted for 56.4% of the combined GDP of the region’s five states in 2025, based on World Bank data. Kazakhstan also held 66.4% of Central Asia’s inward foreign direct investment stock at the end of 2025, according to UNCTAD. Its importance to the United States and its allies is equally concrete. Kazakhstan-origin material accounted for 24% of foreign-origin uranium deliveries to U.S. civilian nuclear-power operators in 2024, second only to Canada, according to the U.S. Energy Information Administration. Kazakhstan also accounted for 12.7% of the value of the European Union’s crude petroleum-oil imports from outside the bloc in 2025, behind only the United States and Norway, according to Eurostat. That economic and strategic weight helps align the priorities of the two governments. Washington wants dependable sources of critical minerals and more resilient supply chains. Kazakhstan wants American capital and technology to expand processing, manufacturing and higher-value production. The November package provided a framework for moving the relationship from political interest toward concrete commercial projects. Senator Steve Daines has helped sustain that momentum. Akorda specifically mentioned Tokayev’s recent meeting with Daines, alongside his contacts with U.S. Special Envoy for South and Central Asia Sergio Gor, other White House officials and American business leaders. Daines has become one of Washington’s leading advocates for closer engagement with Kazakhstan and the wider Caspian region. In a June speech on U.S. relations with the region, he called for new mines, upgraded infrastructure and artificial-intelligence investment. He also pressed Congress to repeal the Jackson–Vanik restrictions still affecting Central Asia. For Kazakhstan, the lingering Cold War-era measure leaves normal trade relations subject to annual review rather than permanent status. Its removal would provide greater political certainty for long-term American investment. The most strategically significant language in the Akorda readout concerned nuclear non-proliferation. Tokayev reaffirmed Kazakhstan’s commitment to “non-proliferation of nuclear weapons and enriched uranium” and stressed close collaboration with the International Atomic Energy Agency to ensure effective...

Middle East Crisis

U.S. Strikes on Iranian Rail and Coastal Infrastructure Put Central Asia’s Southern Routes Under Pressure

U.S. strikes on Iranian rail and coastal infrastructure have put Central Asia's southern transport plans under new pressure. Kazakhstan and Turkmenistan have spent years building routes through Iran to reach the Persian Gulf, the Gulf of Oman, and markets beyond Russia. Public statements so far do not show a confirmed halt in Central Asian freight, but bridge damage near Iran's border with Turkmenistan and strikes along Iran's southern coast have made the security picture more concrete. Reports and a video posted on July 9 showed damage to the Aq Taqeh Khan railway bridge, on Iran's rail link to Turkmenistan and Kazakhstan, after overnight U.S. strikes. Reuters said it verified the location by matching the bridge, riverbank, road, fields, and nearby town with satellite imagery, and found no earlier versions of the video online. Iran's Revolutionary Guard-linked Neynava Corps in Golestan said the area around the Aq Taqeh Khan railway bridge in Aq Qala County was targeted by U.S. cruise missiles early on July 9, with no casualties reported. The bridge sits on the Gorgan-Incheh Borun railway line, which reaches the Incheh Borun border crossing with Turkmenistan and links onward to Kazakhstan. Head of the Islamic Republic of Iran Railways, Jabar-Ali Zakeri, said engineers had rebuilt one damaged track on the Mashhad route and returned it to service in less than 15 hours, according to Fars News Agency. He said work on a second damaged line was continuing and was expected to finish within hours. That statement concerned the Mashhad route, however, and does not confirm the status of the Gorgan-Incheh Borun line. The route sits inside a wider transport effort that Kazakhstan, Turkmenistan, Iran, China, and Russia have all tried to expand. TCA has previously reported on a 2024 test container train on the China-Kazakhstan-Turkmenistan-Iran route, which ran from Xi'an to Tehran. It carried 45 forty-foot containers loaded with auto parts and cut the China-Iran delivery time to 15 days. The Gorgan-Incheh Borun railroad was inaugurated in December 2014, linking Iran to Turkmenistan and Kazakhstan along the eastern side of the Caspian Sea. The wider Uzen-Bereket-Gorgan route runs for more than 900 kilometers from western Kazakhstan through Turkmenistan into northern Iran. It connects Kazakhstan and Turkmenistan’s rail networks to Iran’s system and onward to the Persian Gulf and Asian markets. The U.S. military has framed the latest strikes as a response to Iranian attacks on commercial shipping. U.S. Central Command said on July 8 that its forces had struck about 90 Iranian military targets, including air defense systems, coastal surveillance assets, missile and drone storage sites, naval capabilities, and military logistics infrastructure along Iran's coastline. CENTCOM said the operation was designed “to further degrade Iran's ability to attack commercial shipping and innocent civilian mariners in the Strait of Hormuz.” The coastal security picture also impacts Kazakhstan through Shahid Rajaee Port in Bandar Abbas. On June 28, Kazakhstan and Iran signed a 27-year Build-Operate-Transfer agreement for a Kazakh transport and logistics terminal there. The Kazakh embassy in Tehran said the deal...

Energy Investment

Kazakhstan’s Energy Sector Without Local Business: The Anatomy of Major Projects

In late June 2026, construction began on a 1 GW wind power plant in Kazakhstan’s Zhambyl Region. The project is valued at $1.4 billion. Companies based in the United Arab Emirates, Masdar and W Solar, hold 80% of the project, while Kazakhstan’s quasi-state sector holds the remaining 20% through Qazaq Green Power and the Kazakhstan Investment Development Fund. This ownership model has become typical across Kazakhstan’s energy industry. Nearly all major new energy infrastructure projects rely on foreign capital. The country’s largest renewable energy developments involve international investors, including France’s TotalEnergies and Saudi Arabia’s ACWA Power. Even when agreements collapse, the government continues to rely on foreign partners. After financing problems ended cooperation with Russia’s Inter RAO, construction of new thermal power plants in Semey and Ust-Kamenogorsk was quickly reassigned to a Kazakh-Singapore consortium. A similar pattern appears across the sector: foreign investors provide most of the capital and technology, while Kazakhstan’s state-linked companies take minority stakes through Samruk-Kazyna or its subsidiaries This has created an unusual situation. Despite an acute shortage of generating capacity and guaranteed long-term demand, Kazakhstan’s largest private businesses have largely stayed away from electricity generation. Instead, domestic capital continues to favor sectors with greater liquidity and shorter investment horizons, ranging from finance to residential real estate. The reasons lie in straightforward economics, where financing costs and regulatory conditions outweigh the sector’s potential returns. The Financial Equation Power generation is one of the most capital-intensive infrastructure industries, with investment payback periods typically ranging from 10 to 15 years. Such projects require access to long-term financing at low interest rates. For Kazakhstan’s private sector, those financing instruments are largely unavailable. Under the National Bank’s tight monetary policy, with the benchmark interest rate standing at 17%, commercial borrowing costs for businesses routinely exceed 20% annually. Financing the construction of a power plant with local-currency loans at those rates is, mathematically, unviable. Such projects are virtually guaranteed to become unprofitable. Rather than engaging in complex, long-term infrastructure financing, Kazakhstan’s banking sector has increasingly concentrated on faster and more profitable lending. Official statistics from the National Bank of Kazakhstan illustrate this imbalance. As of May 2026, banks’ claims on households had reached approximately $60 billion, while lending to non-financial private enterprises, the real economy,stood at about $29 billion, less than half that amount. In practice, commercial banks have largely withdrawn from financing major industrial investment projects, preferring consumer lending with higher liquidity and quicker returns. Foreign corporations, meanwhile, enter Kazakhstan with access to international capital markets. They secure financing from global development institutions or sovereign wealth funds in their home countries at significantly lower borrowing costs. As a result, domestic private investors often lose the competitive race before projects even reach the investment decision stage. Unequal Conditions for Investors A second obstacle for domestic investors lies in Kazakhstan’s regulatory framework. Electricity tariffs have historically been kept under government control to limit inflationary pressures and avoid sharp increases in household utility bills and production costs. To attract major international energy companies,...

TCA Interviews

Kazakhstan Seeking to Turn Transit Routes Into Investment Growth, Vice Minister Says

The development of transport and logistics has become one of the main priorities of Kazakhstan's economic policy as the country seeks to turn its position between China, Russia, the Caspian Sea, and Europe into long-term growth. Government transport data show the broader transport and warehousing sector grew in January-May 2026, although rail freight and cargo turnover remained under pressure. Large-scale rail, road, port, warehouse, and digital projects now sit at the center of that effort. The sector requires tens of billions of dollars in investment, while the reshaping of Eurasian supply chains since 2022 has raised the importance of the Middle Corridor and Caspian-linked routes. Can Kazakhstan attract the capital needed to implement large-scale infrastructure projects? How will changing investment priorities affect regional development? And how could new investment reshape the country's transport market? The Times of Central Asia discussed these questions with Maksat Kaliakparov, vice minister of transport of the Republic of Kazakhstan. TCA: How would you assess the current investment attractiveness of Kazakhstan's transport sector? How much foreign investment has the industry attracted recently? Maksat Kaliakparov: The investment attractiveness of the sector is high and continues to strengthen. In 2025 alone, gross foreign direct investment into Kazakhstan's economy reached $20.5 billion, an increase of 14.4% compared with the previous year. Investment is increasingly flowing into transport and logistics alongside manufacturing, digital infrastructure, and the financial sector. The transportation and warehousing sector was among the country's fastest-growing industries in January-May 2026, expanding by 8.4%. Investor interest is also reflected in the fact that, in 2025, Kazakhstan signed 88 commercial agreements worth more than $69.5 billion with partners from China, the UAE, the United States, and European countries. A significant share of these funds will be directed toward transport and logistics projects. More broadly, Kazakhstan's investment policy framework includes a target of increasing annual foreign direct investment inflows to $25.5 billion while raising investment in fixed capital to 25.1% of GDP. TCA: Which segments of the industry are currently attracting the greatest investor interest: railways, highways, aviation, ports, warehousing, or digital logistics? Which areas will require the largest investments in the coming years? Maksat Kaliakparov: Investor interest is spread across several major segments. Railways remain a key priority. Kazakhstan is implementing modernization and new construction projects, including the recently commissioned Dostyk-Moyynty railway section, as well as the Darbaza-Maktaaral and Moyynty-Kyzylzhar lines. By 2030, the country plans to build or modernize approximately 5,000 kilometers of railway infrastructure. Maritime and port logistics are also attracting substantial investment. Expansion is underway at the ports of Aktau and Kuryk, while a new container hub in Aktau is being built with the participation of China's Lianyungang Port Group. The project is expected to increase capacity to 240,000 TEU by the end of 2026. Road infrastructure has secured a landmark private investment through the Car Park Transformer roadside service network. Warehouse and multimodal logistics continue to develop, including through Kazakhstan's terminal at Georgia's Port of Poti. Digitalization is another important area. In particular, the pilot Smart...

Middle East Crisis

Kazakhstan’s Persian Gulf Port Plan Faces New Iran Risk

Kazakhstan has moved a long-planned southern trade project from talks to contract. The move gives Astana a possible foothold on the Persian Gulf, but it comes as a second night of U.S. strikes on Iran and Iranian retaliation around the Gulf states have raised the cost of using that route. On June 28, Kazakhstan and Iran signed a 27-year BOT agreement to build a Kazakh transport and logistics terminal at Iran’s Shahid Rajaee Port in Bandar Abbas. The contract gives the project two years for construction and 25 years for operation, with commercial activity expected in the third year. Aman Malgazhdarov of QazExportPromotion signed for Kazakhstan, and Hossein Abbas Nejad of Hormozgan’s Ports and Maritime Organization signed for Iran. The project is designed to plug Kazakhstan into the International North-South Transport Corridor and widen export access to the Persian Gulf, South Asia, Southeast Asia, and East Africa. The $25 million investment covers a 15-hectare logistics center that could handle 1.5 million tons of goods a year. Mohammad Shakibi-Nasab, the head of Iran’s Ports and Maritime Organization, said it would “create jobs… increase the operational capacity” of Shahid Rajaee and “boost ports along the North-South corridor.” Malgazhdarov called it the “core of a future Kazakh port” within Shahid Rajaee. That ambition now sits beside a worsening security picture. On July 8, U.S. President Donald Trump declared the interim agreement to end the Iran war “over” after attacks on three cargo ships in the Strait of Hormuz. Asked about the deal, Trump said: “It’s over. I don’t want to deal with them.” The U.S. then launched a new round of strikes, and Iran fired on U.S. sites in Bahrain and Kuwait. U.S. Central Command said the attacks were meant to “further degrade” Iran’s ability to threaten navigation in the strait, with Trump warning, “If it happens again, it will get much worse!” By July 9, the U.S. military said it had struck 170 Iranian targets in 48 hours. Iran had fired at U.S. bases in Bahrain, Kuwait and Qatar, and Iran’s health ministry said U.S. strikes on July 7 and 8 killed 14 people and wounded 78. The attacks hit Bandar Abbas, where Shahid Rajaee is located, and other southern coastal areas. Crude oil prices rose by 5% as the risk widened. For Kazakhstan, the timing is uncomfortable. Shahid Rajaee sits near the Strait of Hormuz, the waterway that connects the Persian Gulf to the open sea. The port offers one of Central Asia’s shortest southern outlets, but the approach depends on a zone where security, insurance premiums, and naval risk can change quickly. A terminal can lower handling costs and improve control over cargo, but it cannot remove war risk at the maritime end of the corridor. The risk may not be limited to the Gulf. The Financial Times reported that a railway bridge near Aqqala in Golestan Province was hit with cruise missiles, citing Iran’s Revolutionary Guards. The bridge lies on the Gorgan-Incheh Borun line, which carries passengers and cargo...