Kyrgyzstan Features - The Times Of Central Asia

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Regional Cooperation

Made In Central Asia: Leaders Eye $20 Billion Trade Milestone as Regional Cooperation Deepens

The first meeting of trade and investment ministers from Central Asian countries, joined by Azerbaijan, has taken place in Tashkent, where participants agreed to nearly double mutual trade to $20 billion and discussed launching a regional brand, Made in Central Asia. Opening the session, Uzbekistan’s Minister of Investment, Industry, and Trade, Laziz Kudratov, highlighted the substantial potential for increased trade due to the complementarity of regional economies and growing business interest in joint initiatives According to Uzbek data, intra-regional trade doubled between 2017 and 2024, reaching approximately $11 billion. Kudratov proposed developing an action plan to raise trade turnover to $20 billion. The proposed strategy includes harmonizing customs procedures, implementing digital document management, mutually recognizing permits, and developing “single window” systems at borders. Additional measures under discussion include creating a regional electronic catalog of goods and producers and integrating the digital platforms of chambers of commerce, industry, and export agencies. Uzbekistan also proposed hosting the Central Asia and Azerbaijan Investment Forum in Samarkand in 2026, positioning it as a platform to launch the Made in Central Asia brand. Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliev, urged countries to shift from a “buy-sell” model to an “invest-produce-sell” approach. He noted that Kazakhstan is entering a new investment cycle aimed at building export-oriented industries and sustainable value chains. Shakkaliev added that the upcoming industrial cooperation development program with Uzbekistan could be expanded to other Central Asian countries and Azerbaijan. Kazakhstan also supported the common branding initiative and proposed a pilot project using digital trading platforms. Tajikistan’s Minister of Economic Development and Trade, Zavki Zavkizoda, underscored the importance of digital technologies and cited examples of regional companies operating at an international level. Nazar Agakhanov, Turkmenistan’s Minister of Trade and Foreign Economic Relations, stressed that simplifying trade procedures and developing electronic platforms are essential to meeting shared goals. Ashgabat expressed its readiness to join the working group to be established following the meeting. Kyrgyzstan was represented by its ambassador to Uzbekistan, Duishonkul Chotonov, who noted that Bishkek views the format as a platform for collective decisions that advance regional economic development. Azerbaijan’s First Deputy Minister of Economy, Elnur Aliyev, reported that trade with Central Asian states grew by 58% in the first nine months of 2025, surpassing $1 billion. He said Azerbaijan is prepared to expand its transport infrastructure through new logistics hubs and the promotion of joint ventures. The meeting concluded with the signing of a joint communiqué expressing intentions to deepen economic ties, establish joint ventures, and develop new instruments for investment cooperation. The seventh Consultative Meeting of the Heads of State of Central Asia will be held in Tashkent on November 15-16. Azerbaijani President Ilham Aliyev is also expected to attend.

Foreign Debt

Balancing Act: Kyrgyzstan’s Strategy to Manage Chinese Debt

In recent years, China’s economic engagement across Eurasia has become increasingly diverse and complex. What began with large-scale infrastructure projects under the Belt and Road Initiative has expanded into a wide range of sectors, including critical minerals, energy, pharmaceuticals, and textiles. Alongside these investments, China has also deepened its soft power presence through Luban Workshops, educational exchanges, and media cooperation with regional countries. While this growing influence strengthens China’s position as a major development partner, it has also raised public concern about debt dependency. Kyrgyzstan illustrates this issue more clearly than most. In 2022, more than 40% of the country’s official external debt was owed to China. This heavy reliance has sparked debate over whether the relationship creates long-term vulnerabilities that could limit economic independence and policy flexibility. The scale of the debt has generated several layers of concern within Kyrgyz society. Many worry that national resources are being redirected from essential public needs toward debt repayment. Others fear that financial obligations could eventually lead to asset-for-debt arrangements or serve as a tool of political influence. Kyrgyz governments have therefore explored various ways to ease their debt burden, but with limited success. Direct Negotiations with China and Innovative Approaches The first approach has been to negotiate directly with China for relief. However, these talks have mostly produced temporary payment deferrals rather than genuine debt reduction. In November 2020, China Eximbank agreed to postpone $35 million in loan repayments until the period between 2022 and 2024. The agreement remained purely commercial, requiring a 2% fee on the deferred amount and likely continued interest payments. This arrangement differs from the more concessional restructuring models often offered by multilateral lenders or Paris Club members, which are designed to restore debt sustainability and support economic reform. Chinese state lenders such as the Eximbank tend to approach debt through a commercial logic, emphasizing the protection of contracts and the profitability of Belt and Road projects. As a result, debt forgiveness is considered an unattractive option from the perspective of Chinese financial institutions. Kyrgyzstan has also experimented with more innovative ideas. The government proposed that creditors forgive part of its debt in exchange for investments in environmental and climate-related projects. These initiatives, often described as debt-for-nature swaps, would redirect funds from debt service toward renewable energy, reforestation, or carbon reduction programs. Although several European partners expressed interest, China declined to participate in 2024. China’s reluctance reveals an important feature of its lending philosophy. Despite its growing global presence, Chinese state banks continue to prioritize financial security and measurable returns over experimental or non-monetary arrangements. Even when Beijing publicly supports global climate cooperation, its institutions remain cautious about initiatives that fall outside traditional commercial frameworks. Kyrgyzstan’s New Debt Management Strategies Kyrgyzstan’s approach to managing its external debt is undergoing a gradual but meaningful transformation. The government has introduced new policies and sought diversified financial partnerships in an effort to strengthen fiscal stability and reduce dependency on any single creditor. One of the most significant steps has been...

Podcast

Pannier and Hillard’s Spotlight on Central Asia @ The Times of Central Asia – New Episode Coming Sunday

As Managing Editor of The Times of Central Asia, I’m delighted that, in partnership with the Oxus Society for Central Asian Affairs, from October 19, we are the home of the Spotlight on Central Asia podcast. Chaired by seasoned broadcasters Bruce Pannier of RFE/RL’s long-running Majlis podcast and Michael Hillard of The Red Line, each fortnightly instalment will take you on a deep dive into the latest news, developments, security issues, and social trends across an increasingly pivotal region. In the new episode, available from Sunday, November 16, the team takes a deep dive into the recent C5+1 summit in Washington with guests Assel Tutumlu, a lecturer in the International Relations Department at the Near East University in Cyprus, who is originally from Kazakhstan, and Brianne Todd, Non-Resident Senior Fellow, Atlantic Council’s Eurasia Center; Adjunct Assistant Professor, Georgetown University.

Critical Minerals

What Can Kyrgyzstan Offer the U.S.? A Critical Mineral You May Not Have Heard Of

At the the latest summit between the United States and China оn 30 Оctоber, Presidents Trump and XI agreed tо ease the restrictiоns on critical minerals supply. Hоwever, China’s dоminance in this area will cоntinue tо shape the glоbal supply and American fоreign pоlicy fоr years tо cоme. Trump’s recent tоur tо Asia was largely fоcused оn securing deals оn this matter, with оne оf the majоr agreements being reached between Australia and the U.S. Оn Nоvember 6, anоther summit, the C5+1, took take place in Washingtоn. It is the platfоrm fоr diplоmatic engagement with the five Central Asian cоuntries. Fоr Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan it was an оppоrtunity tо reduce dependence frоm China and Russia, while the United States was looking for ways tо diversify sоurces оf critical minerals. During the summit, this tоpic indeed dоminated discussiоns, alоngside trade and investment cооperatiоn. Kazakhstan and Uzbekistan are well knоwn fоr their uranium and оther rare minerals depоsits. U.S. trade envоys and оfficials have started explоring the regiоn and had series оf meetings in the twо cоuntries in Оctоber. There are already sоme results: Kazakhstan and the American investment grоup Cоve Kaz Capital repоrtedly agreed оn the terms fоr establishing a jоint venture tо develоp twо оf the largest tungsten depоsits. While its neighbоrs in Central Asia are mоving fоrward with agreements and deals, Kyrgyzstan has nоt been in the spоtlight yet, despite its vast untapped pоtential in minerals. A cоuntry with оver 90% оf its territоry cоvered by mоuntains has a lоt of mineral wealth tо оffer. Sо what can Kyrgyzstan оffer exactly? A critical mineral you may not have heard оf: antimоny. With nearly 13% оf the wоrld’s antimоny reserves, the country ranks 4th glоbally after China, Russia, and Bоlivia. The U.S. Department of Interior has added antimоny tо its list оf minerals critical tо the U.S. ecоnоmy and natiоnal security. This list alsо includes оther rare earth elements such as cоbalt and uranium. Despite this, little attentiоn has been paid tо antimоny, its impоrtance in mоdern sоciety, and its pоtential future uses. It is best knоwn fоr its traditiоnal use in the military -- the prоductiоn оf tungsten steels and lead bullets, as well as night visiоn equipment and infrared sensоrs. Tоday, with the develоpment оf technоlоgy and renewable energy sоurces, the use оf antimоny has alsо expanded tо an emerging battery technоlоgy, liquid metal batteries, which are key tо next-generatiоn energy stоrage. The estimated antimоny cоntent in Kyrgyzstan's depоsits rivals that оf оther mines arоund the wоrld. Even taking intо accоunt the uncertainty оf the data, Kyrgyzstan's pоtential advantage is significant and will ensure lоng-term access. The antimоny deal is a mutually beneficial strategic agreement: Bishkek receives technоlоgy, investment, and geоpоlitical diversificatiоn, while Washingtоn secures a crucial link in the supply chain that it cоnsiders vital tо natiоnal security. Whether this partnership will becоme a transfоrmative venture in extractiоn and prоcessing will depend оn technical feasibility studies, market stability, and the willingness оf bоth parties...

U.S.-Central Asia Summit

Washington Shifts C5+1 From Diplomacy to Deals

On November 6, 2025, Washington hosted the C5+1 summit, bringing U.S. President Donald Trump together with the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The tone shifted from broad diplomacy to deliverable transactions, with officials emphasizing cooperation on critical raw materials. The timing signified a broader shift in supply chains away from China and Russia, and the discussion moved from general diplomacy to transactions that can be tracked and delivered. The private-sector track also accelerated. The B5+1 (“B” for “business”) platform is meant to carry follow-through on minerals, processing, logistics, and services. It complements state-to-state commitments by putting contract-ready work streams and policy dialogue in the same frame. Verification is simple: match U.S. and host-government readouts with company filings and ministry communiqués issued after the summit. Subsequent notices should specify instruments, values, financing, timelines, and the units responsible. What Was Signed Versus What Was Signaled The summit mixed firm orders with preliminary commitments. Uzbekistan Airways converted eight options for the Boeing 787-9 (covered by FAA Type Certificate Data Sheet T00021SE) into a firm order, bringing its total to twenty-two Dreamliners. That flows into the manufacturer’s backlog and starts financing and ground-side preparation. Tajikistan’s Somon Air announced up to four 787-9s and ten 737 MAX; that signals intent, with binding contracts and financing to follow. Engine families for the 787-9 are Rolls-Royce Trent 1000 TEN and GE Genx-1B, setting maintenance and training paths. Air Astana said it had selected up to fifteen 787-9s. Slot allocation and financing are next, along with sale-and-leaseback or operating-lease decisions. A parallel commercial package aimed to show that U.S.–Central Asia ties can move on a near-term clock, framed publicly through the Department of Commerce’s announced “C5+1 Deal Zone,” earmarked at “over $25 billion.” Rare earths and related inputs sat at the center of the talks. Aviation and other signings were presented as tangible outcomes. The substance rests with the underlying company agreements and national approvals, although the packaging usefully aggregates a single narrative for public consumption. Minerals were cast as the strategic core, even though many projects remain in the early stages. Public readouts emphasized supply-chain resilience and competition with China and Russia. For shipments into the European Union, the bottleneck remains the processing limits set by the EU Critical Raw Materials Act. Customs classification uses the Harmonized System (HS), a universal tariff code maintained by the World Customs Organization (WCO): tungsten falls under HS 8101, while rare-earth metals and their compounds are under HS 2805 and HS 2846. Bankability likewise depends on recognized industry disclosure rules for reporting mineral resources, which require standardized geology, sampling, and reserve estimates before serious financing proceeds. Wire services likewise underscored rare earths and closer cooperation along the value chain. Country Outcomes Kazakhstan. The most tangible non-aviation item was a tungsten venture at Northern Katpar and Upper Kairakty, with an indicated project scope of around $1.1 billion. A Letter of Interest (LOI) from the U.S. Export–Import Bank (EXIM) suggests a figure near $900 million on a 70/30 structure with...

C5+1 Summit

Paul Kapur: “The United States’ Commitment to Central Asia Is Strong and Enduring”

WASHINGTON (TCA) — Assistant Secretary of State for South and Central Asian Affairs Paul Kapur reaffirmed Washington’s long-term commitment to Central Asia during remarks marking the 10th anniversary of the C5+1 partnership at the Kennedy Center hosted by the United States Department of State on November 6. Addressing an audience of officials, diplomats, and business leaders, Kapur said he was “honored to join an esteemed group” for the occasion. “I recently started my tenure as Assistant Secretary, and I’m particularly glad that I started as we celebrate the decade of C5+1 partnership,” he noted. Kapur, who oversees U.S. policy toward the region and serves as Secretary Marco Rubio’s chief advisor on Central Asia, is a veteran academic who has taught at the Naval Postgraduate School and Claremont McKenna College, and previously served on the State Department’s Policy Planning Staff during the first Trump administration. He opened his remarks by thanking the Kennedy Center and Ambassador Rick Vernell for hosting the event, as well as Special Envoy and Ambassador Sir Jim Gore and Deputy Secretary of State Chris Landau “for everything that they did, which included lots of diplomacy, many days and hours on the road.” He also recognized Senator Steve Daines “who’s done so much to support and promote ties” between Central Asia and the United States, and expressed appreciation to Central Asian delegations who “traveled a long way to be here.” “As we mark this anniversary, I want to reiterate that the United States is committed to this region, and that commitment is strong and enduring,” Kapur said. “Under President Trump’s and Secretary Rubio’s leadership, we’re elevating the C5+1 partnership as a priority — a strategic priority and an economic priority.” He said the partnership is already producing results in trade, investment, and innovation. “We’re making tangible progress toward increased trade and investment in areas ranging from aviation to cybersecurity to agriculture, and we’re ensuring a secure energy future for each of our countries,” he said. Kapur emphasized that economic ties are only part of the picture. “As we advance prosperity, we also promote peace,” he stated. “The United States remains committed to supporting each C5 country’s independence, sovereignty, and territorial integrity, protecting borders and strengthening security cooperation, both bilaterally and through the C5+1.” Reflecting on the partnership’s first decade, Kapur cited initiatives such as the C5+1 Critical Minerals Dialogue, the B5+1 Business Dialogue, training networks for regional law enforcement and border security, and English-language programs for young professionals. He also highlighted efforts to protect the region’s cultural heritage through historical preservation and law enforcement cooperation to combat antiquities trafficking. “Although we’re celebrating the future today, it’s important to remember that our new initiatives are built on a deep foundation of cooperation over the past decade,” he said. “As we elevate and modernize our collective efforts, C5+1 countries and the United States are increasingly prepared to deliver innovative regional solutions to our most pressing global problems.” He concluded with a personal message to Central Asian partners. “To my Central...