Kazakhstan - The Times Of Central Asia

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Critical Minerals

Kazakhstan and South Korea to Establish Rare Metals Research Center in Almaty

Kazakhstan and South Korea are establishing a joint research and technology center in Almaty to support the development of Kazakhstan’s rare metals and critical minerals industry. The Kazakh-Korean Center for Rare and Rare Earth Metals will be established at Satbayev University in partnership with the Korea Institute of Industrial Technology and the Korea National Institute of Rare Metals. During a meeting on July 9, representatives of the three institutions discussed how the project will be carried out. They also reviewed the purchase of modern laboratory equipment and long-term scientific and technological cooperation. The center will train specialists for Kazakhstan’s growing rare metals industry and give local researchers access to modern analytical and processing equipment. It will also support joint research with international partners. “The combined scientific potential of Kazakhstan and the Republic of Korea will enable the implementation of modern technologies for processing strategic raw materials, expand scientific research, and train world-class specialists,” Satbayev University Rector Meiram Begentayev said. According to the university, the facility will become Kazakhstan’s first full-cycle scientific and technological platform dedicated to developing, testing, and commercializing environmentally friendly technologies for the production of high-purity and ultra-high-purity rare and rare earth metals. The center will also conduct fundamental and applied research and pilot new technologies for processing mineral and industrial raw materials. The initiative is part of Kazakhstan’s effort to become a major supplier of critical minerals. Demand is rising from electric vehicle makers and renewable energy companies, while semiconductor and defense industries are also increasing their need for rare metals. Speaking at the C5+1 Critical Minerals Dialogue in Astana on June 10, Minister of Industry and Construction Yersaiyn Nagaspayev described critical minerals as a strategic priority for Kazakhstan’s industrial policy and long-term economic development. He said the country has more than 9,500 mineral deposits, including over 100 containing rare and rare earth metals. Nagaspayev has previously said Kazakhstan is capable of supplying 19 of the 50 critical raw materials identified by the United States and 21 of the 34 minerals included on the European Union’s critical raw materials list, positioning the country as an increasingly important participant in global supply chains. Kazakhstan already produces strategic materials including beryllium, titanium, tantalum, niobium, rhenium, antimony, bismuth, selenium, and tellurium, both as primary metals and as components used in advanced industrial applications.

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...

Religion

Opinion: Christian Missions in Central Asia: Religious Freedom and Social Tensions

Central Asia has long been a crossroads of civilizations, cultures, and religions. For more than two millennia, the region has connected East and West, with Zoroastrianism, Buddhism, Judaism, Christianity, Islam, and indigenous belief systems coexisting, interacting, and, at times, competing. Christianity flourished here centuries ago through Nestorian and other Eastern Christian communities, while Russian Orthodoxy endured throughout the Soviet period. Under Soviet rule, religion was heavily suppressed, yet Christianity survived among Russians, Germans, Poles, Ukrainians, and other communities that had been deported or resettled across the region. Following the collapse of the Soviet Union, decades of official atheism gave way to a religious revival, creating space for a new wave of missionary activity. The principles of Christian missionary work are similar across denominations, with preaching, charity, education, medical assistance, and moral renewal at their core. In practice, however, missionary efforts in the newly independent Central Asian states evolved far beyond religious services. Amid the economic hardship that followed the collapse of the Soviet system, many churches combined evangelism with humanitarian assistance, language courses, youth programs, computer training, sports clubs, and cultural activities. These initiatives proved particularly attractive to young people, students, socially vulnerable groups, and urban residents seeking new educational and social opportunities. Among the five Central Asian republics, Kazakhstan emerged as one of the most favorable environments for Christian missions. During the 1990s, its relatively liberal religious climate, large urban centers, multiethnic society, sizeable Korean diaspora, Russian-speaking environment, and comparatively open legal framework enabled numerous foreign churches to establish seminaries, schools, charitable foundations, and places of worship. South Korean Protestant organizations became especially active. Presbyterian, Baptist, Methodist, and Pentecostal churches initially found a natural base within the Koryo-saram community, but their activities gradually expanded well beyond ethnic Koreans. It is at this point that a more sensitive issue emerges. Missionary churches generally regard religious conversion as a legitimate expression of freedom of conscience. Many Muslim families, however, particularly in rural and traditionally conservative communities, view the conversion of their children as a rupture with family heritage, ancestral traditions, and communal identity. Across much of Central Asia, religion is not merely a matter of personal belief. It is closely intertwined with kinship, ethnic identity, marriage, burial customs, and family authority. As a result, active proselytizing among indigenous youth can provoke strong opposition from relatives and local Muslim communities. The issue reflects the interaction between missionary strategies and social pressures such as limited interfaith dialogue, economic hardship, youth vulnerability, foreign funding, government suspicion, and concerns over cultural continuity. When religious conversion becomes associated with financial assistance, educational opportunities, foreign sponsorship, or improved social mobility, critics may portray it as an attempt to “buy souls,” even when churches describe such activities as humanitarian or charitable work. One of the most serious examples occurred in Tajikistan on October 1, 2000, when bombs exploded during a Sunday service at Sonmin Grace Church, a Korean Protestant church in Dushanbe associated with South Korean missionaries. The congregation had attracted local converts. Several people were killed and dozens...