Kazakhstan - The Times Of Central Asia

Viewing results 19 - 24 of 4651

Kashagan

Kazakhstan Expands Kashagan Legal Fight as Arbitration and Claims Mount

For several years, Kazakhstan has been engaged in arbitration proceedings worth billions of dollars, many of which have been conducted behind closed doors. Recently, new details have emerged about one of the largest disputes, involving the North Caspian Operating Company (NCOC). The dispute stems from environmental violations identified during a 2022 inspection at the Kashagan field. Environmental authorities found that the operator, NCOC, had stored approximately 1.2 million tons of sulfur in excess of permitted limits. As a result, the company faced a fine of around $5 billion. Kashagan is one of the largest and most technically complex offshore oil fields ever discovered, with proven hydrocarbon reserves estimated at 4.65 billion tons. The consortium includes seven major international energy companies: KazMunayGas (16.88%); Eni (16.81%); Shell (16.81%); ExxonMobil (16.81%); TotalEnergies (16.81%); CNPC (8.33%); and INPEX Ltd (7.56%). A lawsuit was filed by all consortium members except KazMunayGas, Kazakhstan’s national oil company. The field has long been central to Kazakhstan’s oil production and relations with international investors. Kazakhstan’s interests in the Kashagan dispute are represented by the Ministry of Ecology and the Ministry of Justice. According to the Vice Minister of Justice, Daniel Vaisov, a trial court has already ruled in favor of the state. “A first-instance court has ruled in Kazakhstan, recognizing the state’s position as lawful. Six contractors — excluding KazMunayGas — filed an appeal in March,” Vaisov said. NCOC challenged the environmental inspection results. In June 2023, a court in Astana partially upheld the company’s claims. However, this was overturned in February 2024, when an appellate court ruled in favor of the government, confirming the inspection’s legality. Subsequent developments have further complicated the case. In August 2025, an Astana court overturned the environmental agency’s order, citing procedural violations. The case is once again under appeal. At the same time, the contractors have challenged the $5 billion fine through international arbitration. The proceedings are set to take place in Washington at the International Centre for Settlement of Investment Disputes (ICSID), where the arbitral tribunal is currently being formed, Vaisov said. The case is being closely watched as a test of how far Kazakhstan is willing to push legal pressure on major Western energy investors. Separately, Kazakhstan is pursuing much larger claims against Kashagan consortium members under the production-sharing agreement. In May 2024, Kazakhstan’s Ministry of Energy said claims against Kashagan project developers could reach up to $150 billion. Initially, the government sought $15 billion from NCOC. It later increased its claims by a further $138 billion, citing lost profits linked to oil volumes that investors had committed to supply to the state. The Ministry of Energy has described the dispute as purely commercial, relating to Kazakhstan’s rights under the production-sharing agreement. Officials maintain that the legal proceedings do not affect the investment standing of project participants. Separately, in January last year, an economic court in Astana ordered NCOC to pay 3.5 billion KZT (about $8 million) for excessive flaring of raw gas. In addition to Kashagan, Shell is involved in...

Science

Plans Underway to Launch Humanoid Robot Production in Astana

Plans are underway to launch humanoid robot production in Astana at the Astana Hub International Technology Park, Minister of Digital Development and Artificial Intelligence Zhaslan Madiev announced at a government meeting. According to Madiev, Astana Hub remains a key institution for fostering innovative entrepreneurship in Kazakhstan. The technology park runs acceleration programs, including AI’preneurs, aimed at launching startups in the field of artificial intelligence. Since September 2024, 35 AI startups have been established through the program’s three cohorts. In collaboration with the city authorities, the Astana Innovations Accelerator program is also being implemented. It focuses on integrating startups into urban infrastructure and helping them secure commercial contracts. Following a competitive selection process, eight projects have received funding. The minister also reported that an “Exponential Cluster” is being developed at the technology park, an innovation platform designed to bring together science, startups, and industry. As part of this initiative, a network of technology centers is being created, covering areas such as robotics, unmanned systems, cybersecurity, medicine, and industrial applications. A humanoid robotics laboratory has already been launched at the Robotics Center. Projects include the development of teleoperation systems for robot control and the integration of robots with the AlemLLM language model for user interaction. Special attention is being given to unmanned technologies. According to Madiev, Kazakhstan plans to launch a pilot project for autonomous vehicles involving international companies in the second quarter of 2026. A separate private initiative to deploy delivery drones is also underway. At the Drone Center, construction of a “phygital” arena, combining physical and digital environments, and infrastructure for training unmanned aerial vehicle operators is nearing completion. All Astana Hub technology centers are expected to be operational by the end of the year. The ministry expects the cluster to support the launch of up to 500 startups annually, including more than 100 hardware projects, and to position Astana as a regional innovation hub. According to official data, by 2025 Astana Hub residents had created more than 32,500 jobs. A total of 537 companies export IT services to 111 countries, with export volumes reaching $681 million, an increase of 44% compared to the previous year. The Times of Central Asia previously reported that the Chinese company AgiBot plans to launch the production and deployment of industrial robots in Kazakhstan.

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.

Oil Imports

Georgia May Replace Russian Oil with Imports from Turkmenistan and Kazakhstan

Georgia’s only oil refinery, owned by Black Sea Petroleum (BSP), plans to completely stop importing Russian oil and instead switch to crude supplies from Turkmenistan and, potentially, Kazakhstan. This was announced by the company’s CEO, David Potskhveria. According to Potskhveria, the shift would not only diversify supply sources but also open access to European markets. “We will completely replace Russian oil with Turkmen oil, and then with Kazakhstani oil. This will give us the opportunity to export products to the EU,” he said. The rationale is straightforward: imports of Russian petroleum products into the European Union are currently prohibited. Maintaining previous supply arrangements would effectively block access to European markets. However, switching suppliers presents logistical challenges. As Potskhveria noted, processing of Turkmen crude can begin only after transit issues through Azerbaijan are resolved. For now, logistics remain the main bottleneck. While the refinery is technically ready, implementation depends on securing reliable transport routes. The proposed move away from Russian oil follows earlier developments. In late February, the EU considered including the Kulevi port on a preliminary sanctions list due to its import and processing of Russian crude. The trigger was a shipment delivered in October 2025 by Russneft, involving approximately 105,000 tons of oil to the port of Kulevi. The shipment prompted criticism from the Georgian opposition, which accused the authorities of undermining the sanctions regime and appealed to European institutions. The Kulevi refinery is a relatively new entrant to the regional oil market. It began operations in December last year and has already outlined expansion plans. Its current processing capacity is around 1.2 million tons per year, with plans to increase this to 4.5 million tons. At present, the facility produces fuel oil, diesel, and other petroleum products. Future plans include expanding output to Euro-5 standard gasoline, jet fuel, and Eurodiesel. BSP’s international partners reportedly include Trafigura and Saudi Aramco.

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...