Kazakhstan - The Times Of Central Asia

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Central Asia + Japan

Patient Capital, Fast Deals: Japan and South Korea Take Different Paths into Central Asia

Japan and South Korea have reached the same strategic conclusion: Central Asia matters to their economic security. Yet they are pursuing that goal through markedly different playbooks. In December 2025, Tokyo hosted the first leaders' summit of the "Central Asia plus Japan" Dialogue, 21 years after the format was launched. All five Central Asian presidents attended. Japan set a target of three trillion yen in business projects across the region over five years - roughly $19 billion at the time - while placing critical-mineral supply chains among the summit's priority areas. The bilateral announcements were equally significant. Uzbekistan presented a proposed project portfolio worth more than $12 billion and called for a joint investment platform to advance it. Kazakhstan and Japan announced a package of public- and private-sector agreements worth $3.7 billion. These included a long-term uranium contract and an offtake agreement under which Kazakhstan's Eurasian Resources Group would supply gallium to Mitsubishi Corporation RTM Japan. The timing was no accident. By May 2026, Chinese shipments to Japan of dysprosium and terbium remained close to zero, while exports of finished rare earth magnets to Japan fell 35% from the previous month. These materials are essential to high-performance magnets. For Tokyo, diversifying critical mineral supply is no longer a distant policy objective; it is an immediate industrial requirement. South Korea has been moving toward the same destination by a different route. During then-President Yoon Suk Yeol's state visit to Kazakhstan in 2024, the two countries signed a critical minerals memorandum allowing Korean companies to participate in the exploration and development of lithium, chromium, uranium, and rare earths. Seoul is now preparing to host the first Korea-Central Asia summit on September 16-17, 2026, elevating years of bilateral and multilateral engagement to the leaders' level. [caption id="attachment_52351" align="aligncenter" width="1280"] Image: Japan Cabinet Public Affairs Office[/caption] Why Central Asia Counts Both Japan and South Korea are resource-poor manufacturing powers whose leading industries depend on secure supplies of imported minerals. South Korea imports more than 95% of the critical minerals it consumes. Japan received its own warning in 2010, when Chinese rare earth shipments were disrupted during a territorial dispute, and the pressure has returned in a sharper form in 2026. Central Asia cannot replace China in the short term, but it offers Tokyo and Seoul a credible route toward diversification. Kazakhstan and Uzbekistan combine substantial mineral potential with governments eager to attract investment, technology, and new export markets. Kazakhstan is already a major producer of uranium and chromium, and has significant copper, titanium, and rare earth prospects. In April 2025, Kazakhstan announced the possible discovery of a rare earth deposit containing more than 20 million metric tons of resources. If further exploration confirms that estimate, the country could possess one of the world's largest rare earth resource bases. However, the distinction between a resource estimate and a usable supply chain is crucial. A discovery is not a producing mine, and a mine is not a processing industry. Exploration, environmental approvals, infrastructure, separation, refining, and...

Children's Rights

Kazakhstan Leads Central Asia with 24th Place in KidsRights Index

KidsRights Foundation is an Amsterdam-based international children’s rights organization founded in 2003. Working with Erasmus University Rotterdam, it produces the annual KidsRights Index, which compares how countries uphold children’s rights using United Nations data. The 2026 edition covers 194 countries. Kazakhstan ranked 24th worldwide in the 2026 index. It was the only country from Eastern Europe and Central Asia in the top 25. Its overall score was 0.797. Its highest result was in protection, with a score of 0.944. Health followed at 0.900. Kazakhstan scored 0.847 for life and 0.765 for education. The enabling environment for children’s rights received 0.583. Kazakhstan Leads Central Asia The remaining Central Asian countries ranked much lower. Turkmenistan placed 75th, followed by Kyrgyzstan in 82nd. Tajikistan was 92nd, and Uzbekistan 96th. Kazakhstan finished 51 places above Turkmenistan and 72 above Uzbekistan. The index does not explain the policy choices behind each ranking. It does show wide differences in children’s health and education across Central Asia. Protection and the legal framework for children’s rights also vary. Kazakhstan in the Global Ranking Luxembourg topped the index, followed by Iceland. Monaco placed third. Germany and Norway completed the top five. The Netherlands fell to 22nd after ranking in the top 10 four years ago. The 2026 report linked the decline to rising childhood obesity and higher child mortality. Children’s Rights Under Pressure Conflict-related sexual violence against children rose by 35% from 2024, according to the report. More than one in five children now live within range of armed conflict, which can disrupt schooling and healthcare while forcing families from their homes and driving more children into poverty. The 2026 index added overweight and obesity to its health indicators. KidsRights said the share of children aged 5 to 19 who are overweight or obese now exceeds the share who are underweight. Where Kazakhstan Scores Lower Kazakhstan’s lowest result was the 0.583 score for the enabling environment for children’s rights. This domain examines whether laws and budgets support the UN Convention on the Rights of the Child. It also considers data collection and cooperation between state institutions and civil society. The score was well below Kazakhstan’s results for protection and health. It points to areas where the country can improve despite its high overall ranking. The regional gap also shows why Central Asia should not be treated as a single policy model. Neighboring countries recorded very different results despite shared geography. As previously reported by The Times of Central Asia, Kazakhstan is using the digital tenge to track some forms of public spending. The KidsRights Index does not assess the currency project, so no direct link can be drawn between it and Kazakhstan’s ranking.

Aviation Fuel

Kazakhstan Begins Importing European Jet Fuel via the Middle Corridor

Kazakhstan has resumed importing European jet fuel through Georgia’s Batumi Oil Terminal after an eight-year break. The route gives the country another source as domestic demand continues to exceed production. The Batumi Oil Terminal, owned by Kazakhstan’s state pipeline operator KazTransOil, has resumed handling Jet A-1 fuel produced by European refineries. The first shipment, totaling 10,000 metric tons, arrived via the Black Sea and is awaiting onward transport by rail to Kazakhstan along the Trans-Caspian International Transport Route, also known as the Middle Corridor. Kazakhstan needs the additional supply because its refineries cannot meet domestic demand. As previously reported by The Times of Central Asia, jet fuel demand is expected to reach about 1.18 million metric tons in 2026. Domestic refineries are projected to produce around 750,000 metric tons, leaving a large shortfall to be covered by imports. The shortfall has grown this year amid maintenance at the Atyrau refinery and rising air traffic. Fuel supplies from Russia have also tightened. Moscow introduced temporary export restrictions to stabilize its domestic market. The restrictions created uncertainty for countries that have traditionally relied on Russian fuel. Kazakhstan has responded by looking for other import routes and expanding storage capacity. The Batumi terminal offers one alternative. On Georgia’s Black Sea coast, it connects maritime shipments with rail routes through the South Caucasus and across the Caspian Sea. The terminal is a major logistics hub on the Middle Corridor. According to KazTransOil, the terminal can handle up to 11 million metric tons of cargo a year. Its 132 storage tanks have a combined capacity of more than 585,000 cubic meters. During the first half of 2026, the Batumi Oil Terminal handled approximately 725,000 metric tons of petroleum products. Along with aviation fuel, it transships crude oil and refined products, including diesel and gasoline. The terminal also handles fuel oil and liquefied petroleum gas. The Batumi route reopened while global jet fuel supplies remain tight. Reuters reported this week that European inventories had fallen below one month’s supply, leaving the market vulnerable to disruptions caused by tensions in the Middle East. European buyers have turned to the United States and other suppliers in Africa and Asia. Kazakhstan is also expanding domestic storage capacity. The government has approved new aviation fuel facilities at airports to guard against shortages and build larger reserves. The first shipment will meet only a small part of Kazakhstan’s annual jet fuel demand. The Middle Corridor carries exports from Central Asia to Europe. The Batumi shipment shows that the corridor can also bring refined petroleum products into the region.

Digital Infrastructure

Kazakhstan and China Sign Deals Worth Over $15 Billion During Tokayev’s Shanghai Visit

Kazakhstan and China signed more than 70 commercial agreements worth over $15 billion during President Kassym-Jomart Tokayev’s working visit to Shanghai on July 16. The package covers artificial intelligence, digital infrastructure, transport, finance, agriculture, vehicle production, and other high-technology industries. The documents were exchanged after a roundtable with Chinese executives. Akorda did not publish a full project-by-project valuation, and the package includes both agreements and memoranda. The headline figure represents the announced value of the documents rather than money already invested or spent. AI and Industrial Projects Among the main documents was a strategic partnership agreement between Kazakhstan’s Ministry of Artificial Intelligence and Digital Development and Huawei Technologies. The Samruk-Kazyna sovereign wealth fund signed a separate agreement to acquire Huawei technology and equipment. Samruk-Kazyna, Freedom Holding, the Astana city administration, and Geely Auto Group also signed a memorandum on electric-vehicle infrastructure and the use of artificial intelligence in Kazakhstan’s automotive industry. Kazakhtelecom and China’s HV & Submarine Hengtong Group agreed on the basic principles for developing the Data Center Valley project in Ekibastuz. The planned one-gigawatt cluster is intended to combine data centers, cloud services, supercomputing facilities, AI laboratories, research institutions, training programs, and technology startups. Further agreements covered robotics and research. Qazbot Technologies signed a strategic cooperation agreement with Agibot PTE, while the Almaty city administration, NERO Group, and UBTECH Robotics agreed to develop artificial intelligence and robotics in the city. Qazaq AI Research University and the Shanghai Innovation Institute signed a cooperation memorandum. The industrial package includes an agreement between Allur Group and Li Auto to produce Li Auto vehicles in Kazakhstan. Astana Group and Chery Holding signed a technology licensing agreement for OMODA and JAECOO production at the Astana Motors Manufacturing Kazakhstan plant. Qarmet, the Development Bank of Kazakhstan, and a Chinese engineering company also agreed to cooperate on new coke oven batteries and a gas purification system. Transport and Logistics An investment agreement was signed for the first phase of a multifunctional terminal at the Port of Kuryk. Another document covers cooperation on two logistics parks at Khorgos-Eastern Gate, while Kazakhstan’s Ministry of Industry and Construction and NUCTECH agreed to work on inspection systems at border checkpoints and expand local production. Tokayev said around 85% of rail freight between China and Europe passes through Kazakhstan and that the country has invested more than $35 billion in transport and logistics infrastructure over the past 15 years. He also promoted the Smart Cargo platform, which is designed to combine customs, logistics, and commercial services in one digital system. The president also invited Chinese companies to invest in the extraction and deeper processing of critical minerals, agricultural technology, and the development of Alatau City. The government wants the new city to become a regional center for digital finance, asset tokenization, artificial intelligence, and advanced telecommunications. Tokayev said bilateral trade reached a record $49 billion in 2025, cumulative Chinese investment in Kazakhstan exceeded $30 billion, and more than 8,500 companies with Chinese participation operate in the country. Existing joint projects...

Civil Aviation

Kazakhstan and China Agree to Expand Scheduled Air Services

Kazakhstan and China have agreed to significantly expand scheduled air services between the two countries following aviation consultations held in Beijing between Kazakhstan’s Civil Aviation Committee and the Civil Aviation Administration of China. According to Kazakhstan’s Ministry of Transport, the talks focused on bilateral cooperation in civil aviation. The two sides agreed to increase the number of scheduled passenger flights operated by airlines of both countries from 124 to 152 flights per week. They also expanded the list of major Chinese destinations available for air services with Kazakhstan to 11 cities, adding Chongqing, one of southwestern China’s largest industrial, logistics, and transportation hubs, with a population of more than 32 million. The consultations also covered plans to launch direct flights between Astana and Shanghai, with airlines from both countries expected to participate. Another key issue was the creation of a third international air corridor between Kazakhstan and China. The new route is expected to increase the capacity of regional airspace, optimize flight paths, reduce congestion on existing air routes, and support further growth in passenger and cargo traffic between the two countries. The parties also discussed the allocation of airport slots for Kazakh airlines at Chinese airports, expanded access to Chinese airspace for Kazakh carriers operating international transit flights, and the conclusion of an interagency agreement on civil aviation search-and-rescue cooperation. “The two sides confirmed their mutual interest in further developing cooperation in civil aviation and agreed to continue joint efforts aimed at expanding air connectivity, improving transport links, and strengthening the strategic partnership between Kazakhstan and China,” the Ministry of Transport said. The agreement comes as Kazakhstan continues to expand its international aviation network. Earlier this month, Kazakhstan’s low-cost carrier FlyArystan announced the launch of a new Atyrau-Batumi route to Georgia beginning July 14, with weekly flights operated by Airbus A320 aircraft. From August 2026, Turkish carrier AJet will also increase frequencies on both the Astana-Ankara and Almaty-Ankara routes from two to seven weekly flights. As previously reported by The Times of Central Asia, Hong Kong’s flagship carrier Cathay Pacific plans to launch scheduled cargo services to Astana in August 2026, followed by regular passenger flights between Hong Kong and Almaty in January 2027.

Digital Tenge

Digital Tenge Receives Official Legal Status in Kazakhstan

Beginning July 18, the digital tenge will officially become a recognized digital form of Kazakhstan’s national currency. Amendments to the country’s legislation grant the National Bank of Kazakhstan the exclusive authority to issue and circulate the digital currency, establishing a comprehensive legal framework for its wider use across the financial system. Unlike many central bank digital currency (CBDC) projects around the world, which remain at the pilot or experimental stage, Kazakhstan has already moved beyond testing into practical implementation. Rather than replacing cash or bank cards, the digital tenge has been designed primarily to improve transparency in public spending, government procurement, and the monitoring of budget expenditures. By the beginning of 2026, approximately 336.6 billion tenge, or about $640 million, worth of digital tenge had been issued, and the technology had been deployed in more than 100 pilot projects. These include public procurement, the management of National Fund resources, tax administration, government subsidies, and infrastructure financing. Programmable payment technology enables authorities to track the movement of public funds almost in real time while restricting spending according to predefined conditions. The practical use of the digital tenge continues to expand. According to the National Payment Corporation of Kazakhstan, the platform was used throughout 2025 in projects involving infrastructure financing, public procurement, business support programs, and other government initiatives. The experience gained from these projects has laid the foundation for the next stage of the digital tenge’s development. Kazakhstan remains the regional leader in the development of a central bank digital currency. Elsewhere in Central Asia, governments have concentrated on digital payments and the regulation of digital assets. As previously reported by The Times of Central Asia, Kyrgyzstan is promoting the gold-backed USDKG stablecoin for cross-border transactions, while other countries in the region have yet to move toward the practical implementation of national CBDCs. The International Monetary Fund believes the next phase of the project will depend less on further technological development than on strengthening regulation, enhancing cybersecurity, and integrating the digital tenge into Kazakhstan’s existing financial architecture. According to the IMF, these factors will determine whether the project can be successfully scaled nationwide.