Kyrgyzstan Home - The Times Of Central Asia

Viewing results 181 - 186 of 694

Electricity

Kyrgyzstan Faces Power Shortages Amid Record Low Water Levels at Toktogul Reservoir

Kyrgyz authorities have warned of potential rolling blackouts this winter due to critically low water levels at the country’s main hydropower facility, the Toktogul Hydroelectric Power Station. At a press conference in Bishkek, Energy Minister Taalaibek Ibraev reported that as of mid-September, the Toktogul reservoir had accumulated just 10.8 billion cubic meters of water, 1.5 billion cubic meters less than at the same time last year. The shortfall significantly limits the country’s electricity generation capacity during peak winter demand. “Kyrgyzstan is facing a persistent energy crisis, exacerbated by insufficient water reserves amid global warming and rising demand for electricity,” Ibraev stated. Hydropower provides around 90 percent of Kyrgyzstan’s electricity. If water levels at Toktogul fall to 6.5 billion cubic meters, the turbines will be unable to function, increasing the risk of large-scale outages. Officials clarified, however, that the current deficit does not necessarily mean the country will face a total blackout during the winter of 2025-26. On the eve of the announcement, energy ministers from Kyrgyzstan, Kazakhstan, and Uzbekistan met in the town of Cholpon-Ata, where they agreed to facilitate electricity transit from Russia and Turkmenistan through their respective territories. “Through joint efforts, we will ensure an uninterrupted power supply to our cities and strengthen regional energy security. We expect our Kazakh and Uzbek colleagues to adhere to the delivery schedules set out in the signed protocols,” Ibraev added.

Hydropower

EDB to Fund Feasibility Study for Kyrgyz Hydropower Cascade

On September 18, the Eurasian Development Bank (EDB) and Orta Asya Investment Holding signed an agreement to develop a feasibility study for the Suusamyr-Kokomeren hydropower plant cascade project in Kyrgyzstan. The study will be financed by the EDB, a multilateral development bank headquartered in Almaty that invests across its member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. This agreement builds on earlier investment deals between Kyrgyzstan and Central Asian Investment Holding, a subsidiary of Turkey’s İhlas Holding, to develop both the Kokomeren and Kazarman cascades. With a combined capacity of 2,217 MW, these agreements were signed on August 11 by Kyrgyz Energy Minister Taalaibek Ibraev and Ahmet Mücahid Ören, Chairman of İhlas Holding’s Board of Directors. These projects are considered strategically important for both Kyrgyzstan and the broader Central Asian region, with planned investments exceeding $6 billion. Once completed, they are expected to increase Kyrgyzstan’s electricity generation capacity by more than 50%, meeting rising domestic demand and enabling future electricity exports. The Kokomeren River cascade will include three hydroelectric plants with a combined capacity of 1,305 MW: Karakol HPP - 33 MW Kokomeren-1 HPP - 360 MW Kokomeren-2 HPP - 912 MW Under the terms of the agreements, Central Asian Investment Holding will operate the plants for 20 years, with Kyrgyzstan guaranteeing the purchase of the electricity generated. İhlas Holding, through its subsidiary, is also developing a 250 MW natural gas-fired combined heat and power plant (CHPP-2) in Bishkek. Scheduled for commissioning in 2028, CHPP-2 is expected to enhance the capital’s heating and electricity supply while reducing reliance on the aging coal-fired Thermal Power Plant, currently the city’s primary energy source. The parallel development of hydropower and cleaner thermal energy projects is seen as central to Kyrgyzstan’s energy transition, offering both economic benefits and improved environmental outcomes.

Aviation

Kyrgyzstan Says It’s Close to Being Removed from EU Flight Ban

A delegation from Kyrgyzstan’s Civil Aviation Agency will meet European officials in Brussels next month, marking another step in the campaign to end a two-decade ban on Kyrgyz airlines operating in the European Union because of safety concerns. The October 7 meeting will be followed by a final European audit in December as Kyrgyzstan moves into the last stage of being removed from the EU’s so-called “blacklist” of air carriers, Kyrgyz President Sadyr Japarov said last week during the re-opening of two of the country’s airports, Naryn and Kazarman. "Thus, we firmly believe that the European skies, which have been closed since 2006, will reopen for Kyrgyzstan,” said Japarov, who predicted that the possible removal of the ban would boost international tourism in the Central Asian country. Kanat Tologonov, deputy director of Kyrgyzstan’s Civil Aviation Agency, said this week that European officials will decide on whether to lift the air ban on Kyrgyzstan in May 2026, according to the 24.kg news agency. Speaking to a parliamentary committee on budget and fiscal policy, Tologonov said Kyrgyzstan successfully passed 2023-2024 audits of the International Civil Aviation Organization, a U.N. agency that oversees safety and other aspects of air travel. As Kyrgyzstan’s bid to regain access to EU skies gains momentum, civil aviation chief Daniyar Bostonov met representatives of the International Air Transport Association this week to discuss upgrading air navigation and the digitization of passenger and air cargo transportation. The EU Air Safety List is a list of air carriers that it says do not fulfil international safety standards and it bars those airlines “from operating to, in and from the EU, including the overflight.” Sixteen carriers from Kyrgyzstan are on the list, out of a total of 169 banned airlines, according to a June update. The EU barred Kyrgyzstan because of inadequate regulation in the aviation sector and failure to comply with international safety standards. Civil aviation has been developing in some other parts of Central Asia, including Uzbekistan and Kazakhstan.

India

Central Asia Deepens Trade Links with India Amid Growing Economic Ties

Trade between the countries of Central Asia and India is growing, edging closer to the $2 billion mark and signaling a new phase in cooperation across the Eurasian continent. According to data from the Eurasian Development Bank (EDB), this surge reflects the expanding economic footprint of both regions. Nikolay Podguzov, Chairman of the EDB, emphasized that Central Asia and India are not only continental neighbors but also markets with significant untapped potential. Of the bank’s seven member states, four — Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan — form the heart of Central Asia. Their growing engagement with New Delhi is now setting the tone for broader regional cooperation. Strong Growth as a Foundation The economic fundamentals supporting this trend are healthy. Central Asia has maintained steady growth of around 4.5% annually, while India’s economy continues to expand even faster, at roughly 6% per year. But despite this positive backdrop, there are still logistical hurdles. Trade routes between India and Central Asia must pass through intermediary countries such as Iran, Russia, or Azerbaijan — each adding layers of bureaucracy, customs costs, and delays. Experts argue that overcoming these transit bottlenecks will be crucial if India and Central Asia are to unlock the full potential of their partnership. New initiatives like the International North-South Transport Corridor and discussions on India’s role in developing Chabahar Port in Iran reflect ongoing efforts to make these pathways more efficient. Kazakhstan: The Leading Partner Kazakhstan is India’s largest trading partner in Central Asia, with bilateral trade crossing $1 billion — more than half of the region’s total trade with India. Astana supplies uranium, which is important for India’s civilian nuclear energy program, along with crude oil and steel products. In return, India exports pharmaceuticals, textiles, and consumer goods, with exports valued at around $260 million. The two countries also collaborate in strategic sectors such as energy security and defense. In 2022, India and Kazakhstan conducted joint military drills under the Kazind exercise, which reflects a broadening relationship beyond commerce. Uzbekistan: A Growing Market Trade with Uzbekistan has risen steadily, approaching $500 million in bilateral turnover, while India’s exports to Uzbekistan are valued at around $1.3 billion. Pharmaceuticals, machinery, and agricultural products dominate New Delhi’s exports, while Uzbekistan provides fruits, minerals, and cotton to the Indian market. Uzbekistan and India recently increased engagement through forums like the India-Central Asia Dialogue, where issues of connectivity, counterterrorism, and energy cooperation are regularly discussed. Tajikistan: Small but Strategic Although trade volumes with Tajikistan hover around $100 million, the partnership has strategic importance. Aluminium from Tajikistan’s massive TALCO smelter is a key export, while India provides medicines and consumer goods to Tajikistan. Beyond commerce, Dushanbe is a vital security partner for New Delhi. India operates a military facility in Tajikistan — the Farkhor Air Base, its only such presence abroad. Kyrgyzstan: Modest Trade, Strong Ties Kyrgyzstan’s trade with India is relatively small, at about $50 million, but the relationship is significant in the context of regional institutions like the Eurasian Economic Union...

Labor Migrants

Russia’s Crackdown Forces Central Asia to Rethink Labor Migration

The most recent World Bank study on labor migration highlighted the immense scale of the issue, describing it as "an ongoing development challenge in Europe and Central Asia, which is currently home to 100 million migrants," roughly one-third of all migrants globally. Historically, Russia has been the primary destination for Central Asia's mobile labor force. However, since March 2024, Moscow’s increasingly restrictive migration policies have forced Central Asian states to confront a dual challenge: managing displaced workers and rethinking the logistics of cross-border labor flows. As of 2023, more than 80% of labor migrants from Tajikistan and Kyrgyzstan were working in Russia. Migration from Uzbekistan was more diversified, with 57% of migrants heading to Russia, 15% to Kazakhstan, and 10% to Ukraine. For millions across the region, labor migration remains a vital economic lifeline. According to the World Bank report, The Journey Ahead: Supporting Successful Migration in Europe and Central Asia, remittances in 2024 accounted for 45% of Tajikistan’s GDP, the highest ratio globally. In Kyrgyzstan, remittances made up 24% of GDP, while in Uzbekistan the figure was 14%. A 2025 update increased the figure for Tajikistan further still, noting that domestic consumption was "supported by large remittance inflows - peaking at 49% of GDP in 2024." Since the start of the war in Ukraine, rhetoric in the Russian media and among some politicians toward Central Asian migrants has increasingly shifted toward overt hostility. Following the March 2024 terrorist attack at Moscow’s Crocus City Hall, in which Tajik nationals were named among the suspects, Russia began implementing harsher measures. This included widespread street inspections of Kyrgyz, Uzbek, and Tajik citizens, alongside new, more restrictive legal frameworks. While certain steps, such as mandatory biometric data collection, were officially justified by security concerns, other policies have further complicated daily life for foreign nationals. For example, since January 2025, all foreign-owned SIM cards in Russia have been deactivated. Foreign citizens must now register with government agencies to obtain new mobile services, a policy framed as a response to telecom fraud. Another measure, introduced on June 30, requires citizens of visa-free countries to register in the “Gosuslugi RuID” app before entering Russia. They must obtain a digital code to pass border control, effectively instituting a pre-entry surveillance mechanism. Kazakhstan was the first to publicly respond, with Foreign Ministry spokesman Aibek Smadiyarov refusing to rule out reciprocal measures against Russian citizens. “We are studying this issue very carefully. It requires consultations with our government agencies,” Smadiyarov said. Yet, despite these developments, none of the Central Asian countries currently maintains a comprehensive migration strategy equipped to handle these shifting dynamics. In Kazakhstan, the issue came to the fore in 2025 with a noticeable influx of Tajik nationals, the group most affected by Russia’s new rules. At a government meeting in late July, officials noted that Kazakhstan had recorded a positive migration balance for the second consecutive year, as well as a 1.5-fold increase in the number of foreign citizens permanently residing in the country. “The importance...

Banking

Dollarization in Kyrgyzstan Declines as Banks Report Lower Profits

The National Bank of the Kyrgyz Republic (NBKR) has reported a continued decline in dollarization within the country’s banking sector, reflecting growing public confidence in the national currency. As of early September, the share of foreign currency loans in the banking sector dropped to 18%, down from over 20% at the start of the year. The decrease is even more pronounced in the deposit base: the share of foreign currency deposits fell from 43% to 38% during the first eight months of 2025. NBKR officials say households are increasingly moving away from the U.S. dollar and other foreign currencies as trust in the national currency, the som, strengthens. Despite the reduction in foreign currency lending and deposits, the sector overall continues to grow. Since the beginning of the year, deposits in Kyrgyz soms have increased by 21%, reaching 717.6 billion KGS ($8.2 billion). The total loan portfolio rose by 26% to 430 billion KGS ($4.9 billion). However, commercial banks are reporting weaker profitability. Financial statements for January to August 2025 indicate a steep drop in earnings from foreign exchange operations. During this period, turnover in foreign currencies fell by more than 2 billion KGS ($23 million), totaling 18 billion KGS ($206.5 million). Analysts note that the current environment contrasts sharply with conditions just a few years ago. After the onset of Russia's war in Ukraine in 2022 and the introduction of Western sanctions, Kyrgyzstan’s currency market experienced significant volatility. Banks then benefited from heightened demand for exchange operations. But with today’s more stable ruble and reduced fluctuations, those profits have diminished. Just five years ago, the National Bank was actively urging citizens to use the som more broadly. At the time, dollar-denominated loans were more expensive, yet remained popular among Kyrgyz borrowers. Now, the trend has reversed, with households increasingly choosing the national currency over foreign alternatives.