• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
22 January 2025

Viewing results 1 - 6 of 19

Opinion: What Will a New Trump Presidency Mean for Central Asia?

During his presidency, Donald Trump introduced a foreign policy approach that recalibrated U.S. engagement with Central Asia, a region strategically critical yet overshadowed by the influence of China and Russia. Trump’s policies, targeting the collective challenge of CRINK (China, Russia, Iran, and North Korea), aimed to foster regional autonomy and counter external dependency. This policy shift, aimed at countering the global influence of CRINK has extended to the vital region of Central Asia. Further, it is geographically wedged between Russia and China and serves as a critical bridge for U.S. interests. The CRINK nations, in their regional strategies, have made substantial inroads in Central Asia. Additionally, each nation is pursuing influence through economic, political, or military avenues. China’s Belt and Road Initiative (BRI) and Russia’s Eurasian Economic Union, for instance, have been noted as major forces reshaping Central Asian economies as well as infrastructure. In 2013, the BRI of China was launched, which has channeled billions into roads, railways, and other infrastructure projects in Central Asia, seeking to create new trade routes connecting Asia to Europe. On the other side, Russia has promoted its Eurasian Economic Union as a trading bloc that has aimed at fostering economic integration among Central Asia and neighboring countries. These initiatives have provided economic incentives for Central Asia but also intensified its reliance on external powers, particularly China and Russia​. During his presidency, Trump emphasized a CRINK-focused strategy, which prioritized Central Asia's sovereignty and reduced dependency on China and Russia. This strategy laid the groundwork for U.S. engagement in the region, influencing current policy directions. In 2020, Trump’s administration unveiled a comprehensive strategy for Central Asia, marking the first such effort in over two decades. The policy emphasized U.S. support for border security and defense collaboration, including financial aid to Tajikistan and military training for Kazakhstan and Uzbekistan. These measures, though initiated under Trump, continue to shape current U.S. approaches to combating terrorism and fostering regional stability. For example, the U.S. has established the C5+1 initiative as a dialogue platform between the United States and the five Central Asian nations (Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Tajikistan). It was developed further to promote mutual goals in regional security, economic development, and environmental resilience​. Security cooperation is a vital aspect of this U.S. strategy which has given the threats of terrorism and also potential instability at CRINK’s peripheries (Sciutto, 2024). In particular, Afghanistan’s proximity to Central Asia poses both risks as well as opportunities for these nations. The U.S. has provided financial support to Tajikistan to strengthen border security and counter drug trafficking. Furthermore, while also assisting Kazakhstan and Uzbekistan with training and equipment to improve their defense capabilities the US has financially supported the nation. This military cooperation has aimed to prevent the encroachment of extremist groups like ISIS, which could exploit regional instability and threaten U.S. interests​. Trump’s presidency emphasized private sector investments as an alternative to China’s Belt and Road Initiative. Although modest compared to China’s commitments, these investments reflected an effort to position...

Risk and Reward: Why Savvy Investors Should Dive into Central Asia-Caspian Region

Central Asia-Caspian basin has long been a geopolitical chessboard — fragmented by conflict but dependent on cooperation. In an era of shifting alliances, political instability, and economic uncertainty, multinational corporations (MNCs) must reassess their strategies. While the region's challenges remain considerable, it also presents unique investment opportunities that should not be overlooked. Since the 1990s, operating in post-Soviet Eurasia has been synonymous with political risks. The Central Asian states have sought foreign direct investment (FDI) but face significant obstacles, including weak rule-of-law, inconsistent regulatory frameworks, and entrenched corruption. Yet despite these barriers, the region continues to attract international capital, signaling its long-term potential. Traditionally reliant on oil and gas exports, these countries are now pivoting toward diversification. Nations like Azerbaijan, Kazakhstan, and Turkmenistan are strengthening ties with the European Union (EU) to balance their historical reliance on Russia’s energy network. This shift is opening new frontiers for investment, particularly in green energy, infrastructure, and technology. However, geopolitical instability remains a critical risk. The war in Ukraine has intensified uncertainties, with Russia, China, the EU, and the U.S. vying for influence. Energy security, once an afterthought, has become a central issue. The closure of the Novorossiysk terminal in early 2023, halting Kazakh oil exports, underscored how quickly geopolitical disruptions can affect supply chains, prompting companies like ExxonMobil to reassess their regional strategies. Yet this volatility also creates opportunities. The region’s economic shift away from resource dependence toward a knowledge-based economy offers fertile ground for businesses willing to invest in infrastructure, technology, and renewable energy. The Caspian basin’s strategic location, as a transit hub for energy to Europe, only heightens its importance in the EU’s efforts to reduce dependency on Russian supplies. For international businesses, this means new markets, sectors, and investment channels are emerging. The post-Covid landscape adds complexity, with digital transformation accelerating across industries. Countries in the Central Asia-Caspian basin are under pressure to adopt these technologies, which could drive long-term economic growth. Yet the gap between ambitious reform plans and their implementation remains wide. Regulatory inefficiencies and bureaucratic hurdles continue to hamper progress, presenting a challenge for foreign investors looking for stability. For multinational corporations, the region presents both risks and significant upsides. On one hand, border disputes, political unpredictability, and regulatory uncertainty create barriers. On the other, the region’s growing role as an energy transit hub and its emerging sectors, from green energy to infrastructure, offer promising avenues for investment. Azerbaijan and Kazakhstan, in particular, have been proactive in bolstering energy exports to Europe, positioning themselves as critical players in the global energy transition. If the conflict in Ukraine continues to escalate, the region’s geopolitical risks will undoubtedly increase. However, external actors — particularly the U.S., the EU, and China — are also likely to deepen their involvement, further reshaping the region’s economic and political landscape. The rise of Sino-American tensions only adds another layer of complexity to an already volatile environment. Yet, for companies that can navigate these complexities, the rewards are significant. Central Asia-Caspian basin remains...

How Central Asia Is Shifting From Russia Towards Turkey

For Turkey, a NATO member and EU hopeful, the Organization of Turkic States (OTS) is an instrument that helps Ankara increase its presence in the strategically important region of Central Asia. For Kazakhstan, Kyrgyzstan, Uzbekistan, and Turkmenistan, the Turkish-dominated group seems to be a tool that allows them to achieve their economic goals, while also continuing to distance themselves from Russia. Although Moscow still has a relatively strong foothold in Central Asia, it does not seem able to prevent the growing role of the Organization of Turkic States in the post-Soviet space. This entity – whose members are Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan, while Turkmenistan, Hungary, and the self-proclaimed Turkish Republic of Northern Cyprus hold observer status – has the potential to eventually serve as a counterbalance not only to Russian, but also Chinese influence in the region. Since its foundation in 2009, the OTS has held ten summits of its leaders. Over this period, the intergovernmental organization’s working bodies have also convened dozens of times. On November 5-6 in the Kyrgyz capital Bishkek, the OTS heads of states will meet for the eleventh time to discuss the future of the Turkic world. Although the agenda has yet to be announced, it is believed that the OTS leaders will seek to strengthen economic cooperation between its members. Currently, their major trade partners are nations outside the bloc. For instance, Turkey’s largest trading partner is Germany, Azerbaijan’s is Italy, while China has recently become Kazakhstan’s biggest trade partner with bilateral trade hitting $31.5 billion. For neighboring Kyrgyzstan and Uzbekistan, China and Russia remain the most important economic partners. One of the group’s major problems is the fact that its members, excluding Turkey, are landlocked countries heavily-dependent on Russia and China geographically. Turkmenistan and Kazakhstan, as major energy exporters, rely on oil and gas pipelines traversing Russian territory to reach their customers in Europe. It is, therefore, no surprise that the Organization of Turkic States governments’ agreed in September to create a simplified customs corridor, aiming at reducing the number of documents required for customs operations and customs procedures between OTS member states. In other words, they plan to increase trade among themselves. According to Omer Kocaman, OTS Deputy Secretary-General, the Turkic nations are also looking to “continue cooperation to stimulate positive changes in their financial systems.” That is why the organization has recently launched the Turkic Investment Fund – the first joint financial institution for economic integration of the Turkic countries, with an initial capital of $500 million. Kyrgyzstan’s Chamber of Commerce and Industry announced on October 17 that, starting in January 2025, the Turkic Investment Fund will begin financing major joint projects in OTS nations. However, in July, Azerbaijani President Ilham Aliyev said that the current structure of the Organization of Turkic States does not meet its established goals, and that its budget is insufficient for their implementation. In order to change that, on October 19, ministers of economy and trade of the OTS nations met in Bishkek to...

The Ferghana Valley: Navigating Complex Challenges in Central Asia’s Most Volatile Region

The Ferghana Valley is one of Central Asia’s most fertile and densely populated areas, but it is also among the most volatile. Spanning Uzbekistan, Kyrgyzstan, and Tajikistan, this landlocked region has long been a hotbed of ethnic tension, water disputes, and political instability. These challenges are deeply rooted in the geography, history, and sociopolitical landscape, making the valley a key focal point for understanding broader regional dynamics in Central Asia.   Geographical Importance and Ethnic Diversity Nestled between the towering Tien Shan and Pamir Mountain ranges, the Ferghana Valley covers over 22,000 square kilometers. It is fertile land nourished by the Syr Darya River, making it a critical area for cultivating cotton, fruits, and vegetables. These natural resources have historically drawn diverse populations, creating a vibrant ethnic mosaic. The valley is home to Uzbeks, Kyrgyz, and Tajiks, as well as smaller ethnic groups. While ethnic Uzbeks form the majority, significant Kyrgyz and Tajik minorities inhabit border regions. The ethnic diversity of the Ferghana Valley is both a strength and a source of tension. Soviet-era border policies exacerbated these divisions by creating artificial boundaries that crisscrossed the valley, leaving behind ethnic enclaves — pockets of one nationality surrounded by the territory of another. These enclaves have complicated governance and territorial integrity, making border management a persistent challenge.   The Soviet Legacy and Border Disputes During Soviet rule, the Central Asian republics were organized under Stalin’s divide-and-rule strategy, which deliberately created complex borders to weaken local identities and prevent regional unity. The Ferghana Valley, divided among three Soviet republics, is a prime example of this approach. After the Soviet Union's collapse in 1991, the administrative boundaries became international borders overnight between Uzbekistan, Kyrgyzstan, and Tajikistan. The lack of clearly defined borders has sparked numerous conflicts over territory, water, and land. A notable clash between Kyrgyzstan and Tajikistan in 2021 resulted in over 40 deaths and the destruction of homes and infrastructure. Many disputes revolve around access to scarce resources like water and arable land. These issues have escalated into violent confrontations, leading to casualties and the displacement of local populations.   Water: A Scarce and Contested Resource Water is the lifeblood of the Ferghana Valley, but disputes over its allocation are a major source of tension. The valley depends heavily on irrigation for its agricultural productivity, and the Syr Darya River, along with its tributaries, plays a crucial role in supplying water to the region. However, the division of the valley among the three countries complicates water management. Uzbekistan, the most populous of the three, relies on the valley’s water resources for its cotton industry, a cornerstone of its economy. Meanwhile, Kyrgyzstan and Tajikistan, which control the headwaters of the Syr Darya, often use their upstream position to leverage water access. This dynamic has led to frequent disagreements over water usage. For instance, Kyrgyzstan has at times threatened to withhold water unless it receives compensation, either through payments or electricity.   Ethnic Tensions and Political Instability Ethnic tensions further complicate the Ferghana Valley’s already volatile...

Bridging Continents: The China-Kyrgyzstan-Uzbekistan Railway – A Tale of Opportunities, Challenges, and Controversies

On June 6, 2024, an agreement was signed in Beijing to begin the construction of a railway between China and Uzbekistan which will pass through Kyrgyzstan, a strategic infrastructure project designed to create a new land transport corridor between Central and East Asia. For 27 years, this project remained a pipe-dream. Now, the presidents of the three countries have confidently declared that this railway, with a length of 523 kilometers, is extremely necessary and will be highly profitable for the entire region. However, such sentiments were not always the case, and doubts have long lived in the heads of multiple Kyrgyz presidents. Both Askar Akayev, who ruled the country from 1990 until the revolution in 2005, his successor Kurmanbek Bakiyev, also overthrown as a result of revolution in 2010, and Almazbek Atambayev, were not sure of the benefits of this project. Until 2017, that is, shortly before Atambayev’s resignation and the transfer of power to his, as it seemed to him at that time, reliable friend Sooronbay Jeenbekov, Atambayev was more or less consistent in defending the interests of his country, but later his focus shifted towards China. Why was there such a turn from Atambayev towards Beijing? This later became clear. On January 26, 2018, an accident occurred in the old part of the Bishkek Combined Heat and Power Plant (CHP), which was supposed to have been modernized by that time. This incident served to reveal large-scale corruption and financial violations at the CHP. The contract for implementation of the modernization was signed on July 16, 2013 between the owner of the CHP, Electric Stations OJSC, and the Chinese company, TBEA, in the amount of $386 million dollars. The financing was provided as a loan by a state fund of China, the Export and Import Bank of China (Eximbank), and Kyrgyzstan had to return approximately $500 million including interest. However, after the accident and the transfer of the case to court, it transpired that the real cost of the subhead modernization was a maximum of $250-260 million. Hence, the cost was hugely inflated; as an example, a pair of pliers was invoiced for $640, and fire extinguishers for $1,600. A similar situation occurred with the Datka-Kemin power line, the construction of which began in 2012, when Atambayev was president. The project was implemented by the same Chinese company, TBEA, which carried out work on modernization of the CHP, and the amount cited for the project was the same, $386 million. Again, the loan was issued by Eximbank. As a result of corruption scandals which were revealed in 2019, Atambayev was deprived of presidential immunity and paid with his freedom. Kyrgyzstan’s accumulated debt since its independence in 1991 is estimated at $6.2 billion - 45% of GDP - around $1.7 billion of which is owed to Eximbank. After Sadyr Japarov came to power in November 2020, issues surrounding the Kumtor Gold Mine came to the fore. Discovered by geologists in 1978, the largest open pit gold mine in Central Asia,...

Central Asians Beaten and Deported from Russia

The punishment for many Central Asians in Russia whose work or residency documents are not in order is pain and humiliation, and then possibly deportation. Xenophobia targeting Central Asians in Russia has been on the rise since the March 22 terrorist attack on Moscow’s Crocus City Hall that left more than 140 people dead. Russian authorities apprehended a group of ethnic Tajiks who allegedly carried out the attack and after that the level of prejudice against Central Asians in Russia, which has always existed, dramatically worsened. The treatment of Central Asians at the Sakharovo migration center on the outskirts of Moscow is an example. Moscow courts are likely to send Central Asians caught with document problems to the Sakharovo center. Radio Free Europe’s Kyrgyz Service interviewed several people who passed through the Sakharovo center. Their descriptions shed light on the conditions inside. One man who spent 18 days in the center said, “The day we entered there, they intimidated us, forced us to walk in single file, run fast… then they examined us and beat us with a stun gun.” That jibes with another man’s description. “They call your last name, then you go out into the corridor and run. There they hit you on the back of the head and tell you to ‘run.’” Then, the man continued, “They made me face the wall, forced me to raise my arms up, spread my legs, and started hitting me with a stun gun.” There is an anti-Islamic element to the treatment of detainees at Sakharovo. A different person remembered this about his detention. “They fed us food with pork. Since we were hungry, we removed the meat and ate what was left.” He said there were some people who recited their daily prayers in their rooms. “When one guy was saying namaz, the guards entered. Then one of them (the guards) hit him in the face twice.” When the person continued saying his prayers, the guards said, “Let him go to Kyrgyzstan, Tajikistan, Uzbekistan, and read his prayer there.” Some of the detainees with beards were forcibly shaved. Batygul Moldobayeva is from Kyrgyzstan. She was detained in Moscow this summer with an expired work permit and sent to Sakharovo. Moldobayeva said the guards yelled at women detainees and were rude to them. She added that sometimes the guards “asked them to be their ‘temporary wives.’” Moldobayeva said there were pregnant women in the center, some as far along as six months, and the guards did not pay any attention to their condition. According to Moldobayeva, there were some Kyrgyz citizens at Sakharovo who had been there for three or four months. Askar Uskenbayev is another Kyrgyz citizen who was detained in Moscow in mid-June and sent to Sakharovo. He said he met fellow Kyrgyz citizens who had been there six months. After being deported back to Kyrgyzstan, Moldobayeva posted about her experience on social media and warned Kyrgyz citizens to be sure all their documents were in order if they...