• KZT/USD = 0.00215
  • TJS/USD = 0.10810
  • UZS/USD = 0.00009
  • TMT/USD = 0.29850
  • KZT/USD = 0.00215
  • TJS/USD = 0.10810
  • UZS/USD = 0.00009
  • TMT/USD = 0.29850
  • KZT/USD = 0.00215
  • TJS/USD = 0.10810
  • UZS/USD = 0.00009
  • TMT/USD = 0.29850
  • KZT/USD = 0.00215
  • TJS/USD = 0.10810
  • UZS/USD = 0.00009
  • TMT/USD = 0.29850
  • KZT/USD = 0.00215
  • TJS/USD = 0.10810
  • UZS/USD = 0.00009
  • TMT/USD = 0.29850
  • KZT/USD = 0.00215
  • TJS/USD = 0.10810
  • UZS/USD = 0.00009
  • TMT/USD = 0.29850
  • KZT/USD = 0.00215
  • TJS/USD = 0.10810
  • UZS/USD = 0.00009
  • TMT/USD = 0.29850
  • KZT/USD = 0.00215
  • TJS/USD = 0.10810
  • UZS/USD = 0.00009
  • TMT/USD = 0.29850
28 August 2026

Viewing results 7 - 12 of 769

Kazakhstan and Kyrgyzstan Give Conflicting Accounts of Four-Country Blackout

Kazakhstan and Kyrgyzstan have given differing accounts of what triggered the August 14 blackout that cut electricity across swathes of Central Asia. Three days later, the initiating event remains unresolved, and the times released by the two sides do not fit neatly into the same sequence. Kazakhstan’s national grid operator KEGOC says two hydrogenerators at Kyrgyzstan’s Toktogul Hydropower Plant, with a combined capacity of 600 MW, disconnected at 2:37 p.m. Kazakhstan time. KEGOC said the sudden loss of generation overloaded the North-East-South transit corridor, separating southern Kazakhstan from the rest of the national grid and the interconnected systems of Kyrgyzstan, Uzbekistan, and Tajikistan. A special commission is investigating the causes. Meanwhile, Kyrgyzstan’s National Electric Grid has given a different chronology. It said that at 3:34 p.m. Kyrgyzstan time, an external disconnection occurred on a high-voltage line linking the northern and southern parts of Kazakhstan’s power system. The Central Asian network then split into an isolated section, and Kyrgyzstan temporarily operated separately while automatic protection systems worked to protect equipment. The one-hour difference between the countries’ clocks makes the discrepancy clearer. Kazakhstan has used UTC+5 nationwide since 2024, while Kyrgyzstan uses UTC+6. That puts Kyrgyzstan’s reported line disconnection at 2:34 p.m. Kazakhstan time, three minutes before KEGOC’s stated 2:37 p.m. Toktogul shutdown. The two times may describe different stages of a fast-moving cascade, but they do not establish the same starting point. A third timestamp complicates the sequence. Alatau Zharyq Company said three 500 kV KEGOC transmission lines shut down at 2:38 p.m., and that those lines triggered automatic load-shedding and frequency protection in Almaty and the surrounding region. Taken together, the public statements leave a sequence of 2:34 p.m., 2:37 p.m., and 2:38 p.m. that investigators will need to reconcile. TCA reporters in Almaty and Bishkek experienced power cuts, while local media reported outages in Dushanbe, Khujand, and southern parts of Uzbekistan. In Kazakhstan, the disturbance affected consumers in the Zhambyl, Turkistan, Kyzylorda, Zhetysu, and Almaty regions, with further restrictions in Karaganda, Ulytau, and Abai. KEGOC said supplies were restored across the affected regions later that afternoon. The four-country impact reflects how tightly the systems are connected. Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan operate in parallel through the Central Asian power system. Cross-border links allow operators to share electricity and reserve capacity, but also mean that a sudden loss of generation or a major transmission line can be felt beyond one national grid before protection systems isolate the disturbance. Central Asia has been here before. In January 2022, a major blackout hit southern Kazakhstan, Kyrgyzstan, and Uzbekistan. The event also involved a sharp imbalance on the regional network and the separation of Kazakhstan’s northern and southern grids. Its precise starting point was disputed in the immediate aftermath. The regional grid dates to the Soviet period. Uzbekistan later withdrew from the old electricity ring, leaving Tajikistan largely isolated for years. Regional links have since been rebuilt; Tajikistan began reconnecting to the unified system in 2024. An Asian Development Bank project is adding...

Kyrgyzstan Electricity Imports to Rise Again in 2026

Kyrgyzstan will again have to import a significant share of its electricity in 2026. With consumption expected to reach 19.6 billion kWh, domestic power plants are projected to generate 15.5 billion kWh. The difference, around 4.1 billion kWh, will have to be covered by imports. For a country where most electricity is generated by hydropower plants along the Naryn River, many of them built during the Soviet period, the current deficit is the result of a long-running gap between rising demand and the construction of new large-scale generating capacity. The new estimates from the Energy Ministry were presented on August 10 during preparations for the heating season. A year earlier, Kyrgyzstan imported about 3.9 billion kWh, meaning that its dependence on external supplies is expected to increase slightly this year. The reasons go far beyond the current period of low water levels. Kyrgyzstan’s power system in its present form developed as part of the integrated Soviet Central Asian network. The republic controlled the upper reaches of the Naryn River, while reservoirs and hydropower plants built along it served two purposes: generating electricity and regulating water flows for agriculture downstream, primarily in Uzbekistan and Kazakhstan. The first major plant on the Naryn was the Uch-Kurgan Hydropower Plant, commissioned in the early 1960s. Construction of the much larger Toktogul hydropower complex began in 1962. Toktogul was commissioned in January 1975. It was followed by the Kurpsai, Tash-Kumyr, and Shamaldy-Sai hydropower plants. This cascade became the backbone of Kyrgyzstan’s electricity sector. The Soviet system was not designed to make each republic self-sufficient in energy. Kyrgyzstan stored water during the colder months and released it for downstream irrigation in summer, generating electricity that fed into the regional grid. In return, it received fuel and power from elsewhere in the Soviet system during winter. After the collapse of the Soviet Union, that integrated system fragmented, while the power plants and reservoirs remained. Construction of new large facilities then almost stopped. Work on Kambarata-2 began in 1986 but was suspended after the collapse of the Soviet Union; its first generating unit was not commissioned until 2010. As a result, a substantial share of Kyrgyzstan’s present-day electricity generation still comes from plants built several decades ago. The hydropower plants themselves are gradually being modernised. Following rehabilitation, Toktogul’s capacity increased from the original 1,200 MW to 1,440 MW. But upgrading existing generating units does not solve the other problem: electricity consumption is growing faster than new sources of generation are being added. In 2025, the country consumed about 19.1 billion kWh, roughly 860 million kWh more than a year earlier. Imports totaled about 3.9 billion kWh from Turkmenistan, Uzbekistan, Kazakhstan, and Russia. This year, imports are expected to increase to 4.1 billion kWh. The situation also depends on water availability. The Toktogul Reservoir allows part of the Naryn’s flow to be shifted between seasons, so its water level directly affects the generating capacity of the country’s largest hydropower plant. At the August 10 meeting, the authorities said the reservoir...

Why Central Asia Growth Forecasts Differ So Sharply

How fast can Central Asia continue to grow? The Eurasian Development Bank (EDB) and the International Monetary Fund (IMF) give markedly different answers. The contrast is sharpest in Kyrgyzstan, where the EDB expects another year of double-digit growth, while the IMF sees a much more pronounced slowdown. Both institutions are looking at the same countries and have access to broadly the same set of macroeconomic data. Their forecasts, however, reflect different assessments of how much of Central Asia’s recent momentum can be sustained. The EDB expects strong investment to keep growth high, while the IMF is more cautious about how long the recent pace of expansion can continue. The EDB is itself a regional development institution. It was established by Russia and Kazakhstan in 2006, with Armenia, Belarus, Kyrgyzstan, and Tajikistan later becoming shareholders. Uzbekistan joined the bank in 2025. The EDB is headquartered in Almaty. The comparison covers the four Central Asian states that are EDB members; Turkmenistan is not included. Its latest forecast for Central Asia is optimistic. In 2026, the EDB expects growth of 10.2% in Kyrgyzstan, 8.3% in Tajikistan, 7.9% in Uzbekistan, and 5.5% in Kazakhstan. The region’s economy as a whole is expected to grow by more than 6.5%, with its combined GDP exceeding $600 billion for the first time. The IMF gives lower figures. Its latest available country projections put 2026 growth at 4.6% for Kazakhstan, 6.8% for Uzbekistan, 6.1% for Kyrgyzstan, and 6.0% for Tajikistan. These projections were published at different times rather than as a single set of four country forecasts. The largest gap is in Kyrgyzstan, where the forecasts differ by 4.1 percentage points, but there are nevertheless modest percentage point gaps between the forecasts for Tajikistan (2.3), Uzbekistan (1.1), and Kazakhstan (0.9). These differences are large enough to raise the question: why the difference in expectations? Part of the answer lies in how the institutions assess the effect of a more uncertain global economy. The IMF expects the world economy to grow by 3% in 2026 and 3.4% in 2027. Its July update said the conflict in the Middle East was weighing particularly heavily on energy importers and warned that renewed conflict or financial-market disruption could weaken the outlook. For the four countries, this means different things. Kazakhstan exports oil and benefits from high prices, although it also depends on the condition of export routes and external demand. Kyrgyzstan and Tajikistan import a significant share of their fuel, while their economies are closely linked to migrant remittances. Uzbekistan has a larger domestic market and its own resource base. Kazakhstan illustrates the logic of the IMF forecast particularly well. Its GDP grew by 6.5% in 2025, one of its strongest performances in recent years. The Fund does not expect that surge to be repeated. Oil production is expected to stabilize after last year’s increase, with growth slowing to 4.6% in 2026, according to the IMF forecast. This does not mean that the Fund attributes everything to oil. Domestic demand remains strong,...

Kyrgyzstan’s Bilateral Development Funds Back Industry and Energy Projects

Kyrgyzstan has established bilateral development funds with Russia, Uzbekistan, Azerbaijan and Hungary that are financing manufacturing and energy projects across the country. The Russian-Kyrgyz Development Fund (RKDF) is by far the largest. In November 2025, President Sadyr Japarov said it had invested more than $1 billion in Kyrgyzstan and financed more than 3,500 projects since its creation. At the time, the fund was participating in 14 hydropower and renewable energy projects worth more than $175 million. One of them is the 25-megawatt Bala-Saruu hydropower plant in Talas Region, for which the RKDF allocated $10 million to help complete construction. The newer Azerbaijan-Kyrgyz Development Fund has also begun financing identifiable projects. By November 2025, it had allocated $14.4 million to four projects worth a combined $52.7 million. They included KG TEX, a garment factory with 300 jobs, and the 9-megawatt Tyup small hydropower plant. The Uzbek-Kyrgyz Development Fund financed the 6.7-megawatt Kogart hydropower plant. The project began in August 2022 and was ready for operation by July 2024, according to the fund. In May 2026, the Hungarian-Kyrgyz Development Fund opened a long-term credit line for NEMAN-PHARM. The first financing stage was earmarked for purchasing pharmaceutical products in Hungary. Projects financed by the fund must include a Hungarian component of at least 30%. Its published loan rates range from 1.5% to 7.25% a year, with terms of up to 10 years. These institutions are operating during a period of rapid economic expansion in Kyrgyzstan. Gross domestic product grew by 11.9% year-on-year in the first half of 2026. The International Monetary Fund has warned of emerging signs of overheating and expects re-export and trade-related activity to plateau. The number of state-backed financing options is also set to increase. The Turkic Investment Fund has begun practical operations and is expected to provide financing for joint projects across Central Asia. For Kyrgyzstan, these funds provide access to long-term capital for projects that may struggle to secure conventional financing. Their success will ultimately depend on whether the businesses and infrastructure they support remain viable and repay their loans.

Central Asia Tourism Growth Outpaces Other Regions

Central Asia emerged as one of the world's fastest-growing tourism regions in 2025, with travel and tourism contributing $20.1 billion to the regional economy. According to an analysis based on World Travel & Tourism Council (WTTC) data, the sector's economic contribution grew by 17.7% during the year, the highest rate among the regions covered. By comparison, tourism GDP grew by 8.7% in Northeast Asia and 7.6% in Southeast Asia. The number of jobs supported by tourism grew by 9.5%, while spending by international visitors increased by 26.4%. Despite this rapid expansion, tourism remains a relatively small part of Central Asia's economy. It accounted for 4.3% of regional GDP in 2025, slightly below its pre-pandemic share of 4.5% in 2019. The slight fall in its share reflects the wider growth of the region's economies. The increase is being driven primarily by travel within Central Asia and from neighboring Russia. Kazakhstan, Uzbekistan, Russia, and Kyrgyzstan together accounted for 90% of the region's recorded inbound arrivals in 2025. Uzbekistan's official statistics, for example, show that visits to relatives accounted for most foreign visits recorded for tourism purposes during the first eight months of 2025. Comparisons between countries require caution because governments use different statistical methods, including whether they count border crossings or unique visitors. Uzbekistan remains the regional leader in terms of tourism's importance to the national economy. The sector accounted for 6% of GDP in 2025 and contributed $8.3 billion. Even there, however, tourism is considerably less economically important than in established destinations such as Spain, where WTTC forecast that it would account for almost 16% of GDP in 2025. Kazakhstan has the region's largest tourism economy in absolute terms, contributing $9.3 billion in 2025. Tourism nevertheless represented only 3.2% of the country's GDP, reflecting the larger role of industry and trade. The upward trend has continued into 2026. According to the Bureau of National Statistics, Kazakhstan welcomed three million foreign travelers in the first quarter. Uzbekistan was the largest source, accounting for 1.1 million travelers. Kyrgyzstan and Russia were the next largest sources. Revenue generated by accommodation providers rose by 13.9% compared with the same period a year earlier. WTTC forecasts almost 13% growth in the sector's economic contribution in Kazakhstan in 2026. Tourism in Central Asia is expanding and generating substantially more revenue. However, visitors from neighboring countries and Russia still dominate the regional market, leaving longer-haul tourism to grow from a comparatively low base.

Kyrgyzstan Moves to Contain Rising Fuel Prices

Kyrgyzstan’s fuel regulator has reached a new pricing agreement with retailers as higher import costs continue to strain the domestic market. The framework applies to AI-92 gasoline and diesel fuel. Liquefied petroleum gas is also covered. Retailers will follow an approved schedule for price adjustments and notify the Antimonopoly Regulation Service when suppliers change wholesale prices. The regulator will monitor the market and consider changes to the schedule when import costs shift significantly. The aim is to maintain supplies while limiting unjustified increases at filling stations. The measure comes as problems at Russian refineries continue to affect regional fuel markets. Kyrgyzstan obtains more than 90% of its imported petroleum products from Russia, leaving it highly exposed to changes in Russian output and export policy. Retail prices still do not include the full increase in import costs, the regulator said. A government subsidy program introduced in May compensates fuel importers and retailers for part of the difference between purchase costs and fixed benchmark prices. Without the subsidies, officials estimate that AI-92 gasoline would cost about $1.20 per liter and diesel about $1.32 per liter. As The Times of Central Asia previously reported, the government removed AI-95 gasoline from temporary price regulation and abandoned plans for maximum retail prices after supply problems emerged.