Opinion Head - The Times Of Central Asia

Viewing results 7 - 12 of 511

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...

Geopolitics

Opinion: The U.S. Still Doesn’t Know Where Central Asia Belongs

Washington cannot decide where Central Asia belongs. Is it part of Europe? Asia? The Middle East? The confusion is on full display in how the House of Representatives has reassigned the region across subcommittees in rapid succession. In the 116th Congress, which convened in 2019, Central Asia fell under the Subcommittee on Europe, Eurasia, Energy and the Environment. Two years later, in the 117th Congress, it was moved to the Subcommittee on Asia, the Pacific, Central Asia and Nonproliferation. That arrangement barely settled before the 118th Congress shifted it again—this time to the Subcommittee on the Middle East, North Africa, and Central Asia. Now, in the 119th Congress, it has been relocated to the Subcommittee on South and Central Asia. On the banks of the Potomac, Central Asia has taken on a nomadic life of its own—constantly on the move, never quite settling in one place. At the State Department, Central Asia is grouped under the Bureau of South and Central Asian Affairs alongside Afghanistan, India, Pakistan, and Sri Lanka. At the Pentagon, by contrast, the Middle East team oversees relations with Central Asia, alongside countries like Israel, Saudi Arabia, Iran, and Pakistan. These mismatches are not just clumsy; they are strategically dangerous. By misplacing Central Asia, Washington is misreading the geography of China’s rise. It is time for Washington to stop the bureaucratic musical chairs and place Central Asia within a coherent grand strategy. Far from being an afterthought, the region is one of the most consequential pieces of the geopolitical puzzle facing the United States: how to respond to China’s strategy. This is because Central Asia sits at the heart of China’s decades-long effort to move its critical lifelines away from the Indo-Pacific and onto the Eurasian landmass. Over the past 15 years, China has quietly reoriented its energy routes, reducing reliance on maritime pathways vulnerable to U.S. naval dominance—particularly chokepoints such as the Strait of Hormuz and the Strait of Malacca—and expanded overland imports across Eurasia. Today, China imports significant volumes of natural gas via pipelines from Turkmenistan and Russia, as well as crude oil from Kazakhstan. These continental routes are largely insulated from maritime interdiction, giving Beijing strategic resilience. Central Asia should be understood through this lens. For China, the region is not peripheral—it is essential. The pipelines, railways and trade corridors that underpin China’s resilience all pass through Xinjiang and Central Asia. In this sense, Central Asia is not merely adjacent to China; it is embedded in China’s vision of the future. This is why Washington’s practice of grouping Central Asia with South Asia misses the mark. The two regions operate under fundamentally different strategic logics. South Asia is centered on the Indian subcontinent, shaped by maritime dynamics and the India‑Pakistan rivalry. Central Asia, by contrast, is a continental crossroads—defined by overland connectivity, energy flows and great‑power competition across Eurasia. India, meanwhile, is geographically constrained—lacking direct land access to Central Asia due to territory administered by Pakistan and separated from China by the Himalayas—leaving it...

Afghanistan

Opinion: Hormuz Crisis Pushes Afghanistan Aid Routes Toward Central Asia

The crisis surrounding the Strait of Hormuz is usually viewed through the lens of energy security or military escalation. But it also has another, less visible, humanitarian dimension. A recent article in The Guardian, “Calls for humanitarian corridor through Strait of Hormuz as Iran war hits vital aid,” points to a critical shift: because of the conflict involving the United States, Israel, and Iran, along with instability around Hormuz, traditional humanitarian supply routes are beginning to break down. For Afghanistan, this is no longer a theoretical concern but an operational reality. According to the World Food Programme (WFP), cited by The Guardian, the cost of delivering food to Afghanistan has tripled. Cargo that previously moved by sea through Hormuz and onward to Pakistani ports must now travel overland across multiple countries, adding weeks to delivery times. The consequences are felt most acutely by vulnerable populations, particularly children. Predictability is one of the core requirements of any humanitarian system, and that predictability is now disappearing. Some shipments are stranded in regional hubs. Routes are constantly changing. Fuel costs continue to rise. Even modest increases in oil prices significantly raise operational expenses for humanitarian agencies. For Afghanistan, the implications are severe. The country has been in a prolonged food crisis for several years, with millions dependent on external aid. Delays of even one or two weeks can directly affect malnutrition and mortality rates. According to United Nations estimates, around 3.7 million Afghan children are currently suffering from wasting, nearly one million of them from severe wasting, a condition associated with sharply elevated mortality risks. UNICEF estimates that in 2026 alone, 1.304 million children aged 6-59 months will require treatment for acute malnutrition, including severe cases and other high-risk groups. Another 1.2 million pregnant and breastfeeding women are also suffering from acute malnutrition. Under these conditions, even temporary disruptions in aid deliveries become a direct threat to human life. The situation is being compounded by several overlapping factors. First, instability around the Strait of Hormuz has made maritime routes both more expensive and riskier. Second, the Pakistani corridor, previously the main overland route, has become unreliable, as repeated border closures and restrictions have tied humanitarian deliveries to the fluctuating political and security relationship between Kabul and Islamabad. Third, Iran has imposed restrictions on food exports and has itself become part of the conflict zone, undermining its role as both a supplier and transit route for Afghanistan. Together, these developments are creating what can be described as a “triple crisis” for humanitarian logistics into Afghanistan. The previous aid delivery system is effectively ceasing to function. In response, the WFP is restructuring its logistics network. One solution has been increased use of the Lapis Lazuli Corridor: Turkey-Georgia-Azerbaijan via the Caspian Sea-Turkmenistan and Afghanistan. Although this route is longer and more expensive, it offers predictability and an alternative to disrupted maritime pathways. The key issue is no longer which route is cheapest, but which is reliable. This shift places Central Asia increasingly at the center of...

Regional Ecological Summit

Opinion: The Regional Ecological Summit and the Making of a Central Asian Voice

On 22–24 April, Astana hosted the Regional Ecological Summit—a gathering of governments, international organizations, financial institutions, and civil society that marked a new level of ambition in Central Asia’s environmental diplomacy. Fifty-eight sessions were held across three days at a moment when Central Asia’s ecological agenda is becoming inseparable from its political and economic future. The opening ceremony was attended by the presidents of all five Central Asian states. The summit adopted the Astana Declaration on Ecological Solidarity in Central Asia and brought renewed attention to the need to reform the International Fund for Saving the Aral Sea (IFAS). Taken together, these developments signal more than procedural diplomacy. They point to growing political momentum. The region has never lacked shared history or channels of communication. Russian remains a practical language of intergovernmental exchange, and borders, economies, rivers, energy systems, and labor markets have tied these countries together long before contemporary climate diplomacy gave this interdependence a new vocabulary. For decades, much external analysis of Central Asia expected this interdependence to produce confrontation, particularly around water and energy. Those risks remain real. Yet the Astana summit showed a more complex trajectory. Climate change, biodiversity loss, water insecurity, land degradation, and food security are not separate national problems neatly contained within borders. Addressing them is becoming one of the fields through which regional coherence is being built. The significance of the Summit lies less in ceremonial language than in the consolidation of multiple ecological agendas into a visible diplomatic architecture. Through its panels and high-level discussions, the Summit placed Central Asia’s natural heritage not at the margins of development but at its center. Ecosystems, rivers, glaciers, mountains, and landscapes are not only environmental assets. They are conditions for prosperity, stability, and resilience. Kazakhstan’s chairmanship of IFAS reopened the question of whether the Fund, long criticized for its limitations, can be reworked rather than left as a symbol of failed regional environmental governance. Kazakhstan’s proposal for an International Water Organization should be read in the same frame: it is not merely a technical proposal about water governance but an attempt to move a Central Asian concern into the language of global institutional reform. Kyrgyzstan’s mountain agenda and Tajikistan’s glacier diplomacy also belong to this broader pattern. They are not just isolated national branding exercises. Together with Uzbekistan’s increasingly active regional posture, they form a wider mosaic: each country brings a distinct ecological priority, but these priorities are becoming legible as parts of one regional perspective, and its voice carries more weight when presented as such. This is particularly important in the current geopolitical moment. As larger powers turn inward, compete over corridors, or speak about Central Asia through the old grammar of influence, the region is attempting to define itself not as terrain for another “Great Game" but as a pole of its own. This does not mean distance from external partners. On the contrary, the United Nations was a strategic partner of the Summit, and many formats involved major international organizations, European...

Critical Minerals

Opinion: Kazakhstan’s Critical Minerals Promise Is Running Out of Time

Kazakhstan has long been defined by what lies beneath its soil. Oil, uranium, copper, zinc, lead, chromium, gold, and other minerals have shaped the country’s post-Soviet economy and supplied the budget, export revenues, and industrial base that supported three decades of state-building. That model is now entering a more complex phase. In the first quarter of 2026, Kazakhstan’s industrial output slipped as mining and quarrying fell by 11.4%, with crude oil production down 19.8%, natural gas output down 20%, and other mineral extraction down 15.1%, according to figures reported from the Bureau of National Statistics. The oil decline also reflected specific disruptions. Kazakhstan’s energy minister said oil and gas condensate production fell 20% year-on-year in the first quarter, while production at Tengiz had only recently resumed after an outage linked to a fire at a power unit. Reuters reported that the field’s restart was gradual. Those short-term shocks should not be confused with the whole story. They expose a deeper vulnerability: Kazakhstan has been highly successful at extracting known deposits, but far less successful at replacing them. The World Bank’s mining sector diagnostic put the problem plainly. Kazakhstan is underexplored, greenfield exploration has been almost non-existent for about 30 years, and much of the geological data inherited from the Soviet period is incomplete or outdated. This is not a story of geology alone. It is a story of institutions, incentives, and time. Deposits deplete whether governments plan for it or not. The difference between a mature resource economy and a vulnerable one is whether exploration, processing, regulation, and regional diversification keep pace with extraction. The Arithmetic of Depletion Kazakhstan still has one of the strongest mineral endowments in Eurasia. President Kassym-Jomart Tokayev has described rare and rare-earth metals as having “essentially become new oil,” and told the government to expand geological and geophysical exploration from 1.5 million square kilometers to at least 2.2 million by 2026, according to Akorda. OECD analysis published in 2026 underlines why the stakes are high. Kazakhstan’s metals mining sector accounted for 12.1% of GDP in 2024. The country is the world’s largest uranium producer, can currently export 21 of the 34 critical raw materials on the European Union’s official list, and has some of the world’s largest reserves of chromium, zinc, and lead. Yet reserve strength on paper does not remove the operational pressure at existing mines. In 2022, Kazakhstan’s prime minister warned that reserve growth for many minerals had not been compensated and that major metal deposits in eastern Kazakhstan, including Orlovskoye, Maleyevskoye, Tishinskoye, and Ridder-Sokolnoye, could be mined out within the next decade, according to the government’s own account of its 2023-2027 geology concept. Gold shows a similar tension between headline potential and mine-level pressure. Industry reporting has linked a fall in Kazakhstan’s 2025 mining output targets partly to changes at Vasilkovskoye, one of the country’s largest gold deposits, where operations are shifting from open-pit to underground mining as easily accessible ore becomes harder to extract. MINEX Forum reported that the transition reduced...

Brain Drain

Opinion: Kazakhstan’s Human Capital Problem – How State Scholarships Are Building a Talent Pipeline for the West

Kazakhstan spends millions of dollars every year sending its brightest students to the world's best universities through two flagship programs: the Nazarbayev Intellectual Schools (NIS) and Bolashak. For NIS, the state invests millions with no public record of what becomes of its graduates once they enter foreign educational institutions. For Bolashak, the return figures look reassuring on paper, but only until one asks what happens the moment the obligation expires. For Kazakhstan’s economy, heavily reliant on oil and gas exports, human capital is what can bring the country to its goal of economic diversification through the ideas and skills that no natural resource can replicate. Students from Kazakhstan studying abroad, with access to the world’s best professors and cutting-edge technologies, are exactly the human capital the country cannot afford to lose. However, they are also the ones the government has been paying to send away without a sustainable retention strategy in place. Nazarbayev Intellectual Schools Founded in 2008, the Nazarbayev Intellectual Schools network offers an internationally recognized 12-year curriculum, directly compatible with many foreign university admissions systems. It also provides some of its students with grants covering the full cost of attendance. The state funds NIS generously: in 2023 alone, more than $37 million was invested into the network. The results are extraordinary: from 2010 to 2024, 654 students received offers from the top 100 universities in the world, with 32 of them from the Ivy League. However, which country these graduates end up in is a different question, and the available statistics offer no public answer to. One former NIS student, who received a full scholarship to study abroad, says, "I'm extremely grateful for all the resources that the NIS provided me with. However, after my graduation from the university, I will be moving to San Francisco to work as an AI engineer. It would take me at least seven years to make the same salary I'll be earning here in a year." Another says, "It is not only about the higher wages in the U.S. It’s about the opportunities and autonomy one gets. The research lab I've joined since graduation has far more funding and resources for the work I'm actually passionate about." Bolashak Program Unlike NIS, the Bolashak program, established in 1993 and widely regarded as one of the most generous scholarship programs in the world, does require its recipients to return. Graduates must work in Kazakhstan for up to four years or face financial penalties. On paper, this looks like a solution to the human capital problem. In practice, it is only a delay. While the state at least partially recovers its investment, it is developed markets that eventually inherit the talent. "After completing my requirement back home, I was able to get an American company to sponsor my visa," says one Bolashak recipient. "I moved to the U.S. shortly after." "I was offered a transfer to the European branch of my company," says another, one year after fulfilling their obligation. The Solution to the Brain...