Kazakhstan - The Times Of Central Asia

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Monetary Policy

Kazakhstan Central Bank Chief Sees No Pressure on Tenge After Rate Cut

Kazakhstan’s central bank governor has sought to calm concerns over the tenge after the National Bank cut its base rate for the first time since October 2025, saying demand for local-currency assets should remain stable despite lower returns. The National Bank of Kazakhstan lowered its base rate to 17% from 18% on June 5, citing slowing inflation and an improved economic outlook. The decision was based on updated assessments of inflation risks and key macroeconomic indicators, the bank said. Annual inflation slowed to 10.4% in May from a peak of 12.9% recorded in September last year. The central bank also raised its oil price assumption for the remainder of 2026 to $90 per barrel for Brent crude. National Bank Governor Timur Suleimenov said the rate cut would lower returns on tenge-denominated deposits but would not trigger a significant shift into foreign-currency assets. “Interest rates on tenge deposits remain substantially higher than returns on foreign-currency deposits,” Suleimenov told reporters. “A one-percentage-point reduction will not fundamentally change the attractiveness of deposits or other tenge-denominated assets such as corporate bonds and government securities.” Suleimenov said demand for local-currency assets is expected to remain stable, limiting pressure on the exchange rate. He acknowledged that the tenge could face seasonal pressure during the summer because of increased demand for foreign currency linked to overseas travel and dividend payments by Kazakhstani companies listed on international exchanges. However, he said Kazakhstan’s economic fundamentals remain supportive of the national currency. “Oil prices are rising, while metal prices have increased by an average of around 17%, with some commodities gaining as much as 40%,” Suleimenov said. “If there are no major external shocks, I see no reason for any significant weakening of the tenge.” The central bank also revised its inflation forecast for 2026 downward to a range of 9%-11%, compared with a previous estimate of 9.5%-11.5%. Its inflation forecast for 2027 remains unchanged at 5.5%-7.5%. Suleimenov said the bank expects inflation to approach its long-term target of 5% by 2028 as external inflationary pressures ease and government and central bank measures take effect. “The slowdown in inflation during April and May gave us room to lower the base rate,” he said. “But it would be premature to say inflation has been defeated. Future decisions will depend on incoming data and our assessment of risks.” The official exchange rate stood at 487.4 tenge per U.S. dollar on June 7. The outlook remains cautious. As previously reported by The Times of Central Asia, S&P Global Ratings forecast that the tenge would average around 540 per dollar in 2026, reflecting expectations of a weaker currency over the medium term.

C5+1

From Culture to Critical Minerals: C5+1 Opens Busy U.S. Week in Central Asia

The United States and Central Asia moved another part of the C5+1 agenda into a working-level form on June 5, when culture officials from the five Central Asian states and Washington met in Tashkent. The meeting came just days before a separate C5+1 critical minerals session in Astana, giving the week a wider agenda: cultural heritage, public diplomacy, mining, investment, and supply chains are now moving forward in the same regional format. The Tashkent meeting brought together Uzbekistan's Minister of Culture Ozodbek Nazarbekov, Kazakhstan's Minister of Culture and Information Aida Balayeva, Kyrgyzstan's Minister of Culture, Information and Youth Policy Mirbek Mambetaliev, Tajikistan's Minister of Culture Matluba Sattoriyon, Turkmenistan's Deputy Minister of Culture Gurbanmurad Miradaliev, and Sarah Rogers, the U.S. Under Secretary of State for Public Diplomacy and Public Affairs. The agenda covered cultural and humanitarian cooperation, joint cultural projects, creative exchanges, and the protection and promotion of cultural heritage. Participants discussed a permanent C5+1 Working Group on Culture, a C5+1 Culture and Innovation Forum, closer cooperation in the creative industries, and more places for Central Asian cultural professionals in U.S. education and exchange programs. Uzbekistan also proposed joint English for Culture centers with U.S. partners at cultural education institutions. In practical terms, that could mean joint training for museum staff, touring exhibitions, film and music exchanges, English-language programs for curators and cultural managers, and U.S.-backed workshops for people working in heritage, tourism, and the creative industries. For Uzbekistan, the proposed centers would give the agenda a physical base inside cultural education institutions rather than leaving it at the level of declarations. The meeting ended with a protocol, which reaffirmed the parties' commitment to the cultural heritage agenda adopted after the Washington summit in November 2025. The International Institute for Central Asia said it covered cooperation through joint events and festivals in art, literature, theater, cinema, and music. Kazakhstan's side also tied the discussion to museum partnerships, digitization of heritage, professional exchanges, tourism routes, and digital projects. The Tashkent talks grew out of the C5+1 leaders’ meeting in Washington, where culture joined a wider list of priorities. That summit marked ten years of U.S. engagement with the region through the format, which began in 2015 and has since expanded from foreign-minister meetings to expert groups and presidential-level summits. The Times of Central Asia previously reported that the November 2025 summit shifted the format from broad diplomacy toward deliverable agreements, with critical minerals, aviation, supply chains, and business ties among the main areas of focus. Culture fits into that agenda, as Central Asian governments see heritage, tourism, film, music, museums, and the creative industries as economic sectors as well as identity markers. For the United States, public diplomacy gives Washington a way to stay active in the region outside security and energy talks. It also gives the C5+1 a soft-power layer, using language programs, museum links, heritage projects, and creative exchanges to build influence without framing the relationship only around security or resources. Heritage protection has a security side as well. Trafficking...

Water Security

Megaprojects Instead of Quotas: How Central Asia’s Water Diplomacy Is Changing

Central Asia’s water politics are moving beyond Soviet-era quotas. As glaciers in the Tien Shan retreat and climate pressure increases, river management has become a question of energy security, food production, and regional stability. The Soviet-era system of river-water allocation has reached its limits, forcing Central Asian states to look beyond traditional negotiations and toward joint ownership of strategic water infrastructure. Even as regional governments learn to cooperate more closely, a new challenge is emerging on Central Asia’s southern frontier, one that could disrupt the region’s hydrological balance. The Illusion of Control Formally, Central Asia’s water resources are governed through a network of interstate institutions. The principal mechanisms are the Interstate Commission for Water Coordination (ICWC) and the International Fund for Saving the Aral Sea (IFAS). On paper, the system appears effective. Twice a year, ahead of the spring-summer irrigation season and the autumn-winter period, representatives of the region’s countries meet to approve water-withdrawal quotas from the Syr Darya and Amu Darya river basins. At the end of 2025, for example, officials meeting in Ashgabat agreed on water allocations for 2026, setting total withdrawals from the Amu Darya at nearly 55.4 billion cubic meters. This framework has helped prevent open interstate conflicts by providing a permanent forum for dialogue. However, its foundation remains the 1992 Almaty Agreement, which essentially preserved a Soviet-era quota system designed for a single centrally planned state rather than a group of independent countries with competing interests. The greatest weakness of the system is the absence of any meaningful enforcement mechanism. If one country exceeds its agreed allocation during a drought year, there are no legal or economic penalties. Disputes are instead resolved through emergency negotiations between ministries or, in some cases, direct interventions by heads of state. A system dependent on political goodwill and personal relationships is increasingly fragile in an era of climate stress. Turning Water Disputes Into Joint Investments As the quota system shows signs of strain, Central Asian countries have begun experimenting with a more pragmatic approach: shared ownership of infrastructure. The central paradox of the Syr Darya basin is that upstream and downstream countries need water at different times of the year. Kyrgyzstan and Tajikistan, which control the river’s headwaters, require releases in the winter to generate electricity and heat their cities. Kazakhstan and Uzbekistan, meanwhile, need that same water in summer to irrigate millions of hectares of farmland. Winter releases often flow downstream when demand is low, while shortages emerge during the peak agricultural season. The proposed solution is the Kambarata-1 hydropower plant on Kyrgyzstan’s Naryn River, a project now estimated to cost around $4.2 billion. What makes the project unusual is its ownership structure. Under a 2024 agreement, Kyrgyzstan will hold a 34% stake, while Kazakhstan and Uzbekistan will each own 33%. By investing billions of dollars in infrastructure located outside their territory, Kazakhstan and Uzbekistan are effectively purchasing seats at the decision-making table. As shareholders, they gain a direct role in determining reservoir operations, helping ensure water is...

Health

Alcohol and Male Mortality in Kazakhstan: A Problem People Do Not Usually Talk About

The figures are alarming when examined closely, although Kazakhstan seems to have grown used to them. Women in the country still live noticeably longer than men. According to the Bureau of National Statistics, women’s life expectancy has reached 79.8 years, while men’s is 72.19 years. A gap of almost eight years has persisted for several years. In 2024, women lived on average to 79.42 years, while men lived to 71.33 years. In 2023, the figures were 79.06 and 70.99 years, respectively. The statistics are changing gradually, but the main conclusion remains the same: male mortality in Kazakhstan remains one of the country’s most visible demographic problems. A gender gap in life expectancy is not unique to Kazakhstan – according to estimates by Our World in Data, men live shorter lives than women in every country in the world. The problem in Kazakhstan is the size of the gap. In prosperous countries, it is often three to four years. In Kazakhstan, it is about eight. Biology explains only part of this difference. The rest comes down to behavior, environment, and habits. What the Statistics Show At first glance, the level of alcohol consumption in Kazakhstan does not look extreme. According to WHO data, in 2022, alcohol consumption in Kazakhstan stood at 5.4 liters of pure ethanol per person over the age of 15. For comparison, the figure in Germany is about 13 liters, while in Russia it is more than 11 liters. However, the average figure is not the only thing that matters. The statistics do not show exactly who drinks, how often, or in what circumstances. That is why alcohol rarely appears in official statistics as a direct cause of death, but it often remains an invisible background to tragedy. Documents may list a heart attack, an injury, liver disease, or complications after poisoning, yet alcohol abuse may be a contributing factor behind many of these diagnoses. According to the WHO, more than 3 million people worldwide die every year from diseases and consequences related to alcohol, and a significant share of these deaths are among men. Kazakhstan has also appeared in international rankings of countries with high alcohol-related mortality. The example of Almaty is also revealing: over the course of a year, more than 6,000 cases of poisoning from alcoholic products were recorded there, around 2,000 people were hospitalized, and 23 cases ended in death. But even these data reflect only part of the problem. Alcohol may not be named as the main culprit, although it can trigger or intensify a chain of consequences, including heart disease, injuries, gastrointestinal diseases, infections, cancer, and mental disorders. Why Men in Particular According to the Bureau of National Statistics collection Men and Women of Kazakhstan, in 2023 there were 95 cases of alcohol-related disorders per 100,000 men, compared with 18 among women. Men suffer from these problems 5.3 times more often. The portrait of the typical consumer is also recognizable. Most often, this is a man aged 30 to 44, with secondary...

UNDP

UNDP Opinion: Central Asia – Shared Wildlife, Shared Landscapes, Shared Responsibility

As global leaders gather for the Global Environment Facility (GEF) Assembly in Samarkand, Central Asia has an opportunity to send a clear message to the world: protecting biodiversity is not only about saving species — it is about securing water, livelihoods, resilience and long-term stability for millions of people across our region. From the glaciers of the Tien Shan and Pamir mountains to the deserts, steppes and river basins downstream, Central Asia’s ecosystems are deeply interconnected across borders. Rivers flow between countries. Wildlife migrates through shared landscapes. Mountain ecosystems regulate water systems that sustain agriculture, energy production and communities far beyond the highlands themselves. Among the most powerful symbols of this shared natural heritage is the snow leopard — the silent guardian of Central Asia’s mountains. The snow leopard represents far more than a rare and iconic species. Its survival reflects the health of entire ecosystems that millions of people depend upon every day. Healthy mountain landscapes help secure freshwater resources, reduce disaster risks, sustain pastures and agriculture, preserve biodiversity, and strengthen resilience to climate change across the region. But today, these ecosystems are under growing pressure. Climate change is accelerating glacier melting and intensifying water stress. Land degradation, unsustainable grazing, habitat fragmentation and biodiversity loss are placing increasing pressure on fragile mountain environments and rural livelihoods. Communities living closest to nature are often the first to feel the consequences — through declining water availability, degraded pastures, reduced agricultural productivity and increasing climate-related risks. These challenges do not stop at national borders. And neither can the solutions. Only a coordinated regional response can match the scale of the challenge. Protecting Central Asia’s mountain ecosystems requires countries to work together to conserve ecological corridors, strengthen transboundary protected areas, improve water and land governance, and invest in climate-resilient livelihoods for communities whose futures are closely tied to nature. There are already successful examples of regional agreements. For example, a highly successful transboundary nature conservation agreement in Central Asia protects the Ustyurt Plateau and the Turan Temperate Deserts. Spanning across Kazakhstan, Uzbekistan, and Turkmenistan, this initiative has successfully safeguarded vulnerable ecosystems and migratory species like the saiga antelope and snow leopard. [caption id="attachment_50004" align="aligncenter" width="1774"] Photo: Saiga calf. Kazakhstan/UNDP Kazakhstan[/caption] It is encouraging that transboundary cooperation has already taken shape across the region. Across Central Asia, governments, communities and development partners are already demonstrating that conservation and development can advance together. While each country's experience is unique, the lessons are remarkably similar: when communities benefit from healthy ecosystems, nature and people both thrive. In Kazakhstan, the snow leopard has become one of the clearest examples of how coordinated conservation efforts can help restore fragile ecosystems across borders. The species inhabits mountain systems that extend beyond national boundaries into China, Kyrgyzstan, Russia, and Uzbekistan, making its protection inseparable from regional cooperation. Over the past decade, habitat countries have strengthened efforts to protect the species through national conservation strategies, expanded protected areas, and improved ecosystem monitoring. Supported by cooperation between the Government, UNDP, the Global...

El Niño

El Niño Could Bring Unusually Heavy Summer Rains to Central Asia, WMO Warns

Central Asia could face unusually heavy rainfall during the summer of 2026 as the climate phenomenon known as El Niño is expected to return in the coming months, according to forecasts from the United Nations’ World Meteorological Organization (WMO). The WMO estimates there is an 80% chance that El Niño conditions will develop between June and August and a near or above 90% chance that they will persist until at least November. The organization says the event could contribute to a rise in extreme weather around the world, including heatwaves, droughts, and intense rainfall. According to the WMO, temperatures in the tropical Pacific Ocean have been steadily increasing and are approaching the thresholds typically associated with El Niño. Scientists have also detected a large reservoir of unusually warm water below the ocean’s surface, with temperatures more than six degrees Celsius above normal in some areas, providing additional energy for the phenomenon to intensify. For Central Asia, El Niño is often associated with higher-than-average precipitation. While the region is better known for its arid and semi-arid climate, past El Niño events have brought increased rainfall to parts of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. WMO Secretary-General Celeste Saulo said countries should prepare for the possibility of stronger droughts and heavy rains, as well as elevated risks of heatwaves on land and in the oceans. “We need to prepare for a potentially strong El Niño event, which will exacerbate drought and heavy rainfall and increase the risk of heatwaves both on land and in the ocean,” Saulo said. UN Secretary-General António Guterres described the developing conditions as an urgent climate warning, saying El Niño would “pour fuel on the fire” of global warming and could accelerate the impacts of extreme weather worldwide. Seasonal forecasts released by the WMO also indicate that temperatures from June through August are likely to remain above normal across most regions of the world. Scientists note that while there is no evidence that climate change is making El Niño more frequent, a warmer atmosphere and warmer oceans can amplify its effects. The previous major El Niño episode, in 2023-2024, ranked among the five strongest on record and contributed to record global temperatures in 2024. The WMO says improved seasonal forecasting gives governments time to prepare for potential disruptions to agriculture, water resources, and disaster response systems before severe weather develops.