Kazakhstan - The Times Of Central Asia

Viewing results 49 - 54 of 5310

Labor Market

Kazakhstan Faces Shortage of Doctors and IT Specialists

Kazakhstan continues to face labor shortages in healthcare, information technology, engineering, and the creative industries, according to the Ministry of Labor and Social Protection. The ministry published a list of the country’s most in-demand professions based on data from state information systems and the Enbek.kz employment portal. The most acute shortages remain in the medical sector. According to the ministry, there are only around 100 job seekers’ resumes for 469 vacancies for obstetricians and gynecologists. For pediatricians, 448 vacancies were recorded against 139 resumes, while anesthesiologists and intensive care specialists accounted for 300 vacancies and only 75 resumes. “Shortages are also observed among oncologists, neonatologists, and endocrinologists,” the ministry said. Demand also remains high for information technology specialists. More than 500 vacancies are currently open for software application developers, while around 355 vacancies are available for graphic designers. According to the Unified System for Recording Labor Contracts, more than 45,000 employment contracts have been signed since the beginning of 2026 in the country’s most in-demand professions. The largest number of contracts, around 8,000, involved software developers. Obstetricians-gynecologists, pediatricians, and application programmers were also actively recruited. The ministry acknowledged that Kazakhstan is partially addressing labor shortages by attracting foreign specialists. “To attract valuable personnel, Kazakhstan operates a simplified employment procedure for foreign specialists,” the ministry said. According to officials, the list of in-demand professions includes more than 50 occupations and allows highly qualified foreign workers to obtain permanent residence permits in Kazakhstan. This year, 55 labor contracts have been signed with foreign specialists, primarily in the automation sector. The ministry said that, overall, the domestic labor market covers demand for most key professions, although shortages in the healthcare sector remain persistent. The Times of Central Asia previously reported that Kazakhstan’s small and medium-sized businesses are also facing a severe labor shortage.

IPO

IPO as a Lifeline: Who Will Pay for Kazakhstan Railways’ Growing Debt?

The planned IPO of Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ), once presented by the authorities as one of the largest public offerings in Central Asia, is increasingly being viewed as an attempt to stabilize the company’s balance sheet amid rapidly rising debt. The share sale, expected in late 2026, may turn out to be less a growth story than a mechanism for refinancing the obligations of the state-owned carrier. During parliamentary hearings on April 24, company executives acknowledged that one of the key objectives of the IPO is to raise funds to service KTZ’s growing debt burden. According to official company and government data, KTZ’s nominal debt has risen sharply. It stood at about $5.7 billion in early 2024, and roughly $8 billion by 2025. By April 2026, it had reached 4.7 trillion tenge, or about $10.4 billion. The increase reflects heavy borrowing for rolling stock, infrastructure modernization, and the expansion of Kazakhstan’s transit capacity, including projects linked to the Middle Corridor. It also reflects the cost of maintaining below-market tariffs for socially important domestic freight. Kazakhstan’s Supreme Audit Chamber warned as early as 2024 about risks related to the company’s financial sustainability. However, the authorities and KTZ management argue that large-scale borrowing was necessary to prevent an infrastructure crisis. According to official estimates, borrowed funds include about $4.9 billion for renewing rolling stock, including locomotives and railcars, and about $2.3 billion for modernizing railway infrastructure. The currency structure of the debt represents an additional vulnerability. More than half of the company’s obligations are denominated in foreign currencies, making KTZ highly sensitive to fluctuations in the tenge. Any weakening of the national currency automatically increases debt servicing costs and reduces the operator’s profitability. Potential investors face another challenge: historically, KTZ has served not only as a commercial company but also as an instrument of state social policy. A substantial share of revenues from China-Europe transit freight is used to subsidize unprofitable domestic passenger transport and the transportation of socially important goods within Kazakhstan. This cross-subsidization mechanism limits the company’s ability to generate free cash flow. Grain transportation under regulated tariffs alone generated losses of approximately $95 million (44 billion tenge) for KTZ in 2024. In an effort to improve the company’s attractiveness ahead of the IPO, KTZ has initiated large-scale tariff increases for mainline railway services. Beginning in April 2026, transportation tariffs for coal, grain, and iron ore were doubled. However, the move risks adding to costs in Kazakhstan, where railway tariffs directly affect the cost of food, electricity, and industrial goods. Annual inflation stood at 12.2% in January 2026, adding to concerns that higher railway tariffs could feed into wider price pressures. Additional inflationary pressure may come from the expiration of the government’s moratorium on utility tariff increases, after which household utility bills in some regions could rise by 10-20%. Against this backdrop, analysts do not rule out a return to tighter state regulation of tariffs, a development that could once again limit the ability of natural...

Elections

Kazakhstan Rules Out Fines for Not Voting in Elections

Kazakhstan does not plan to introduce compulsory voting or impose fines on citizens who fail to participate in elections and referendums, Central Election Commission (CEC) Secretary Shavkat Utemisov said. Speaking on the sidelines of a joint session of parliament, Utemisov acknowledged that declining voter participation, particularly among young people, remains a challenge in Kazakhstan. He said, however, that the country does not intend to adopt practices used in some states where voting is mandatory. Utemisov added that some countries have lowered the voting age, citing Belgium, while others impose penalties, including fines, on citizens who fail to appear at polling stations. “But Kazakhstan is not taking that path at the moment; for us, this issue is not as pressing as it is in the West,” he said. Kazakhstan’s most recent major electoral event was the constitutional referendum held on March 15. According to the CEC, approximately 12.4 million citizens were eligible to vote, while more than 9.1 million cast ballots, a turnout of 73.12%. The next major political event will be elections to Kazakhstan’s new unicameral parliament, the Kurultai, which President Kassym-Jomart Tokayev previously said would take place in August. Utemisov stressed that draft amendments to the Constitutional Law “On Elections,” adopted by the outgoing parliament, contain no provisions introducing mandatory voting. According to him, the CEC also has no plans to initiate such amendments in the near future. The election official added that ensuring voter turnout should be the responsibility of political parties participating in campaigns. At the same time, he warned that any attempts to encourage participation through cash payments or gifts could be interpreted as voter bribery. During the joint parliamentary session, lawmakers also approved the Constitutional Law “On the Kurultai of the Republic of Kazakhstan and the Status of Its Deputies,” which will enter into force on July 1. The new parliament will consist of 145 deputies, compared to the current bicameral legislature, which includes 148 members, 98 deputies in the Mazhilis and 50 senators. Deputies in the Kurultai will serve five-year terms. Elections will be held exclusively under a proportional representation system based on party lists. “The draft law defines the place of the Kurultai within the system of state authorities, the principles of its operation, its structure, the procedure for its formation, and the mechanisms for exercising its powers,” Mazhilis deputy Aidos Sarym said. According to Sarym, the legislation also establishes the powers of the new parliament to adopt laws, participate in the formation of state bodies, and conduct parliamentary oversight. A separate provision states that the Kurultai will become the legal successor to the current parliament. The Times of Central Asia previously reported that the August vote will become Kazakhstan’s first parliamentary election in which citizens vote exclusively for political parties rather than individual candidates.

Oil Prices

Opinion: Kazakhstan, Oil, the Iran War and Dutch Disease

In 1977, The Economist coined a new term for the (potential) negative consequences of a short-term boom in natural resources: “Dutch disease.” The phenomenon got its name from an analysis of the decline of the manufacturing sector in the Netherlands following the 1960s natural gas discoveries at Groningen, in the northeastern Netherlands. The theory was that a surge in the price of a natural resource like oil or gas would likely cause currency appreciation, making imports cheaper and other sectors, like manufacturing, less competitive. Whether the recent spike in oil prices will contribute to Dutch disease in oil-rich Kazakhstan will likely depend on the length of the Iran war’s effect on oil prices (which could last well beyond the end of the conflict itself) and the government’s stewardship of Kazakhstan’s economy. President Kassym-Jomart Tokayev deserves credit for the government’s efforts to diversify the national economy. Investing in the nation’s manufacturing base, especially SMEs, educating the Kazakh workforce, and improving healthcare are all helping broaden the Kazakh economy and reduce the country’s dependence on oil. But oil is the main driver of Kazakhstan’s wealth, and while other sectors are increasing their share of Kazakhstan’s economy, oil and the wider extractive sector remain central to public finances, accounting for over 40% of government revenues. So, let’s do a deep dive on Kazakhstan’s oil. Most of Kazakhstan’s oil comes from the west of the country, including the Tengiz field near the Caspian Sea and the offshore Kashagan field in the northern Caspian. The Tengiz oil field is one of the deepest and largest oil fields in the world, while Kashagan, an offshore deposit, ranks as one of the largest global oil discoveries since the 1960s. Kazakhstan’s main export blend, CPC Blend, is a light, sweet crude, a desirable oil type that’s easy to refine into gasoline and diesel. Because the Iran war and restrictions around the Strait of Hormuz have disrupted tanker traffic and raised fears of supply shortages, global oil prices have climbed. And while high oil prices are generally a net positive for Kazakhstan, the current price - Brent crude was trading above $100 per barrel in mid-May 2026 - could present problems. In the short term, high oil prices tend to boost government revenues and budget surpluses. They can increase inflows to Kazakhstan’s National Fund, depending on production, tax receipts, transfers, and government withdrawal policy, and provide resources for government spending on infrastructure and social programs. They can also stimulate demand in related sectors, boosting Kazakhstan’s oil-related industries. And since oil exports typically make up more than half of the nation’s export revenues, high oil prices generally lead to a rise in Kazakhstan’s GDP. So far, so good. But high oil prices also carry risks. For one thing, they can strengthen the tenge and add to domestic demand, especially if higher revenues feed into faster government spending. Which is where Dutch disease comes in. As the stronger currency makes non-oil exports less competitive, capital and labor shift toward the energy...

Energy Security

Kazakhstan Targets 2027 Exit From Routine Russian Electricity Imports

Kazakhstan wants to stop buying electricity from Russia by 2027. The challenge is whether it can do so while keeping homes warm, mines running, and fast-growing regions supplied when demand peaks. The target is a test of whether the country can close a power deficit caused by years of underinvestment, rising demand, aging thermal plants, and uneven regional supply. The goal was restated this month by Deputy Energy Minister Sungat Yessimkhanov, who said Kazakhstan expects to reduce its electricity shortfall this year and bring it down to zero in 2027. The pledge builds on earlier government comments that Kazakhstan would cut imports as new domestic capacity comes online. In February 2025, Yessimkhanov told Kazinform that Kazakhstan planned to reduce electricity imports from Russia and could stop buying foreign electricity once planned capacity was commissioned in 2027. The gap is small on paper, but it carries political weight. Kazakhstan may be energy-rich, but its electricity system has been running short. The country produces coal, oil, gas, uranium, and growing volumes of renewable power, yet it still relies on imports from Russia to cover gaps between generation and consumption. In 2025, Kazakhstan generated 123.1 billion kilowatt-hours of electricity and consumed 124.6 billion kilowatt-hours, according to a January government meeting on new capacity. Installed capacity rose from 25.3 gigawatts to 26.7 gigawatts, but demand still exceeded domestic generation. Data from KEGOC, Kazakhstan’s national grid operator, shows how narrow the margin has become. In 2025, the gap between production and consumption was 1.4956 billion kilowatt-hours. KEGOC said the shortfall was covered by supplies from the Russian energy system. Kazakhstan received 4.6388 billion kilowatt-hours from Russia and sent 2.1595 billion kilowatt-hours back. That left a net power flow from Russia of 2.4793 billion kilowatt-hours, down from 3.4111 billion kilowatt-hours in 2024. The planned 2027 shift does not mean Kazakhstan will disconnect from Russia’s grid. The objective also fits a wider pattern in Astana’s energy policy: not breaking with Russia, but reducing the number of areas in which Russia is the default route, supplier, or emergency backstop. In oil and trade, Astana has been trying to expand alternatives to the Caspian Pipeline Consortium route through Russia, including through the Middle Corridor. In electricity, the logic is narrower but similar. Ending Russian power imports would not make Kazakhstan energy-independent, but it would turn one more Russian-linked dependency from a structural need into a contingency option. Kazakh energy analyst Zhakyp Khairushev made this distinction in comments to LS, stating that Kazakhstan has a real chance to reach annual self-balance in 2027, but a stable surplus will be harder. The key issue is not only installed capacity, but available capacity during peak hours, winter demand spikes, and repair periods. A megawatt of wind or solar power does not play the same role as a megawatt of coal, gas, or flexible generation during a cold evening. Kazakhstan’s deficit is not only about total output; it is also about where electricity is produced, when it is available, and whether the grid...

Oil Price

Kazakhstan Sees No Major Risks From UAE Exit From OPEC+

Kazakhstan does not expect major economic turbulence following the United Arab Emirates’ withdrawal from OPEC and the OPEC+ agreement, despite the country’s continued dependence on global oil prices, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said. The UAE announced that it would leave OPEC on May 1, citing disagreements over existing production quotas. Abu Dhabi plans to increase oil output amid concerns over possible supply disruptions through the Strait of Hormuz and the risk of shortages on the global market. The departure of one of the world’s largest oil producers has fueled concerns about a potential drop in crude prices and the possibility of a price war among exporters. However, Zhumangarin said international analysts remain cautious in assessing the broader implications of the move. “Some are saying this marks the end of the OPEC era. In reality, international expert assessments and forecasts remain very cautious regarding whether this could lead to a price war and whether such a scenario is even possible,” he told reporters. According to the minister, even if the UAE raises production from the current 3.5 million barrels per day to 5 million barrels per day, the global market would continue to balance itself through other major producers and alternative suppliers. Commenting on the possible impact of lower oil prices on Kazakhstan’s economy, Zhumangarin noted that the government traditionally prepares several macroeconomic development scenarios. “This year, the pessimistic forecast was based on an oil price of $50 per barrel,” he said. The minister also pointed out that oil prices had exceeded $100 per barrel several times this year amid tensions in the Middle East. According to Zhumangarin, Astana retains the ability to adjust budget spending if conditions on the oil market deteriorate. On the eve of the US-Israeli war on Iran in late February, the industry benchmark Brent crude was trading at approximately $70 to $73 per barrel; as of May 11, it had risen to slightly below $104 per barrel. In April, OPEC+ countries increased oil production by 206,000 barrels per day, including a rise in Kazakhstan’s quota from 1.569 million to 1.599 million barrels per day by June. Kazakhstan’s authorities would like to see further growth in national oil production, however, a lack of viable export routes aside from Russia, as well as the fallout from Ukrainian attacks on the Russian port of Novorossiysk in November last year, have limited Kazakhstan's ability to fully exploit the recent rise in prices.