Kazakhstan Featurees - The Times Of Central Asia

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Nuclear Power Plant

Over Sixty Kazakh Firms Compete to Join First Nuclear Power Plant Project

More than 60 Kazakh companies have expressed an interest in supplying goods, services, and undertaking construction work for the country's first nuclear power plant, according to Sergey Agafonov, chairman of the Kazakhstan Association of Energy Repair, Design, Engineering Companies, and Energy Equipment Manufacturers. Construction of the plant began last week near the village of Ulken on the shores of Lake Balkhash, approximately 400 kilometers from Almaty. Under the current plan, Russia’s state nuclear energy corporation Rosatom will commission two reactors with a combined capacity of 2.4 GW by 2035. The facility is expected to meet a substantial share of Kazakhstan’s growing electricity demand. The estimated cost of the project is between $14 billion and $15 billion, with an additional $1 billion allocated for the development of social infrastructure in the region. Rosatom CEO Alexei Likhachev confirmed the company’s readiness to involve Kazakh businesses during a meeting with Prime Minister Olzhas Bektenov. According to the industry association, the preliminary list of potential Kazakh participants includes 66 companies: seven energy equipment manufacturers, 41 building materials producers, and 18 construction firms. Notable names include Tavrida Electric Astana, NERO Group, Kazakhstan Insulator Plant, Sayman Corporation, KARLSKRONA LC AB, Alageum Electric, and Karaganda Turbomachinery Plant. Among building materials suppliers, Qarmet is prominent, while Bazis-A Corp. stands out among construction companies. Agafonov noted that the project could serve as a major driver for local industry, drawing a parallel to Turkey’s Akkuyu nuclear power plant, where local firms played a substantial role. As previously reported by The Times of Central Asia, Kazakhstan plans to construct at least three nuclear power plants. The Chinese National Nuclear Corporation (CNNC) has been granted the rights to develop the second and third sites.

Middle Corridor

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...

International Diplomacy

Tokayev Congratulates Putin After Alaska Meeting; Russian Leader Briefs Mirziyoyev

Russian President Vladimir Putin spoke to the leaders of Kazakhstan and Uzbekistan by telephone on Sunday, briefing them about his talks in Alaska with U.S. President Donald Trump about ending the war in Ukraine. Trade and joint energy projects between Russia and the Central Asian countries were also discussed. President Kassym-Jomart Tokayev of Kazakhstan congratulated Putin on “the results” of the meeting with Trump and said “the negotiations contributed to a better understanding by the American side of the Russian position on Ukraine, which will help find common ground on this complex issue,” Tokayev’s office said. “Kassym-Jomart Tokayev considers the Alaska summit a breakthrough event in terms of strengthening Russia's international positions and mutual understanding on the world stage,” the office said. Even so, uncertainty remains. Putin and Trump provided few details about their meeting on Friday, leaving Alaska without the Ukraine-backed cease-fire that Trump had previously demanded. Ukraine and its European allies are concerned that Trump could back a proposed deal under which Moscow secures more Ukrainian territory as part of a resolution. Ukrainian President Volodymyr Zelenskyy and European leaders are scheduled to meet Trump at the White House on Monday to press their case for a peace with security guarantees. In their phone call, Putin informed President Shavkat Mirziyoyev of Uzbekistan of the “main results” of his meeting with Trump, Mirziyoyev’s office said. “The leader of Uzbekistan expressed support for the agreements reached and voiced hope for a swift settlement of the situation surrounding Ukraine,” the office said. Putin and Mirziyoyev spoke about accelerating trade between their two countries, while Tokayev thanked the Russian leader for collaborating in the field of energy, a possible reference to Russia’s leading role in building Kazakhstan’s first nuclear power plant. The Kremlin released similar statements about the phone calls.

International Diplomacy

Despite War’s Challenges, Kazakhstan Says Trump-Putin Meeting Was “The Beginning”

Kazakhstan has praised Russian President Vladimir Putin and U.S. President Donald Trump for their meeting in Alaska, describing it as “the beginning of high-level negotiations on the situation in Ukraine.” President Kassym-Jomart Tokayev “regards the summit as a historic event, made possible by the political will and sincere determination of both leaders to seek common approaches to resolving contemporary global challenges, including the cessation of hostilities in Ukraine,” Tokayev´s press secretary, Ruslan Zheldibay, said on X on Saturday. Tokayev’s statement generally aligned with the positive statements made by Putin and Trump after their meeting on Friday, even though the two leaders provided few details about how they envisioned resolving the conflict when they spoke briefly to the media after their discussion. Ukraine and its European allies have been concerned that Trump could favor Putin’s terms for ending the war, leaving Ukraine vulnerable to renewed Russian pressure in the future. Ukrainian President Volodymyr Zelenskyy is expected to meet Trump at the White House on Monday. In a Truth Social post on Saturday, Trump appeared to back away from his previous demand for a Ukraine-supported ceasefire, saying it was better to “go directly to a Peace Agreement, which would end the war, and not a mere Ceasefire Agreement, which often times do not hold up.” Despite their concerns, European leaders have welcomed Trump’s negotiation efforts, noting a statement by the U.S. president that the United States “is prepared to give security guarantees” so that Ukraine can defend its sovereignty. “It will be up to Ukraine to make decisions on its territory. International borders must not be changed by force,” a joint statement by European leaders said. Kazakhstan is not directly involved in negotiations over Ukraine, but it has become an intermittent venue for international diplomacy and has offered to assist as needed since it maintains ties with both Russia and Ukraine. Tokayev has spoken in support of Ukraine’s sovereignty and territorial integrity. But in a phone call a week ago, Tokayev told Zelenskyy that “A bad peace is better than a good war,” possibly a pitch to the Ukrainian leader to consider concessions such as giving up territory in order to preserve the country’s independence. Russia occupies an estimated 20% of Ukraine and has made gains in eastern Ukraine in recent days. At least publicly, Zelenskyy has opposed the idea of giving up territory, saying the Ukrainian constitution prevents him from doing so. On Saturday, he said on X: “A real peace must be achieved, one that will be lasting, not just another pause between Russian invasions.” Kazakhstan, which has sought neutrality over the war, shares a long land border with Russia and has closer trade and diplomatic ties with Moscow than Kyiv. Since Russia’s full-scale invasion of Ukraine in February 2022, Tokayev has spoken to Zelenskyy several times in phone calls that, according to Kazakhstan’s presidency, were initiated by the Ukrainian side. Tokayev has spoken to Putin by phone on more than twice as many occasions and has also met the Russian...

Peace Talks

Trump-Putin Alaska Summit Ends Without Ceasefire

U.S. President Donald Trump and Russian President Vladimir Putin met on Friday in Alaska for their first face-to-face summit since the start of the Ukraine war. Despite optimism from the U.S. side, the talks ended without an agreement on a ceasefire. The leaders met for nearly three hours at Joint Base Elmendorf-Richardson in Anchorage, following a red-carpet welcome and military flyover. Only a handful of aides joined the private session. Afterward, Trump called the exchange “extremely productive” and said “some headway” had been made, but stressed that “there’s no deal until there’s a deal.” Putin described “progress” and “agreements,” though neither leader offered specifics, and neither took questions. No Ceasefire, Continued Dialogue Ending Russia’s invasion of Ukraine dominated the agenda. Trump had vowed to bring the war to a close quickly, but the Alaska talks produced no ceasefire. Ukrainian officials noted that Putin appeared to have “bought more time” as fighting continues. Air raid sirens sounded in Ukraine, and Russian border regions came under drone attack even as the summit unfolded. Having previously said on the way to his summit with Russian President Vladimir Putin that he wouldn’t “be happy if I walk away without some form of a ceasefire,” U.S. President Donald Trump walked away from the talks with no agreement in place, instead urging Ukrainian President Volodymyr Zelenskyy to “make a deal.” “I believe we had a very productive meeting,” Trump stated. “There were many, many points that we agreed on… I will call up NATO… I’ll of course call up President Zelenskyy and tell him about today’s meeting… We really made some great progress… I’ve always had a fantastic relationship with President Putin – with Vladimir…We were interfered with by the ‘Russia, Russia, Russia’ hoax,” he added. “Again, Mr. President, I’d like to thank you very much, and we’ll speak to you very soon and probably see you again very soon,” Trump said. “Thank you very much, Vladimir.” “Next time in Moscow,” Putin replied, chuckling, with a rare use of English, before Trump abruptly ended his press event, refusing to take any questions. Both leaders said the dialogue would continue. Trump claimed he and Putin agreed on “most things” and floated the idea of joining a future meeting between Putin and Ukrainian President Volodymyr Zelenskyy. Putin, while not referencing direct talks with Kyiv, urged Ukraine and its allies not to “derail” what he called constructive progress. Signals from Washington and Moscow Trump emphasized his desire to stop the fighting, stating, “I want the killing to stop,” and suggested he believed Putin wanted peace as well. He also said he would hold off on imposing new “severe” measures on Russia, a shift from earlier rhetoric. Trump also revealed that he would pause plans to levy tariffs on Chinese imports over Beijing’s purchases of Russian oil, saying progress in Alaska made that step unnecessary for now. Putin, meanwhile, repeated his long-standing demands that NATO expansion and other “root causes” be addressed before peace can be achieved. He warned that...