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Regional Civil Aviation Organization Established for the First Time in Central Asia

The Eurasian Civil Aviation Conference (EACAC) has held its first meeting in Almaty, with the participation of the aviation authorities from participating countries. The meeting included participants from Armenia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, who discussed joint initiatives to strengthen cooperation in flight safety and sustainable aviation development. Representatives from Mongolia also participated as observers. Opening the event, Vice Minister of Transport of Kazakhstan, Talgat Lastayev, noted that EACAC will become a platform to share experiences and address issues related to future challenges in civil aviation. During the meeting, a declaration on the establishment of EACAC was signed, and the document was certified by the Chairman of the Civil Aviation Committee, Saltanat Tompieva, from Kazakhstan. EACAC will allow for the consolidated expression of positions within the framework of interactions with such institutions as the ICAO, the European Commission, IATA, and other international organizations. Katalin Radu, Director General of the Aviation Administration of Kazakhstan, stressed that the new organization would ensure unity in the positions of member countries in the international aviation arena and strengthen cooperation with such associations as ACAO, AFCAC, ECAC, and LACAC. Key tasks of EACAC include the coordination of regional efforts in aviation security, creating common standards, developing unmanned aviation, and training personnel. The initiative was first announced in May 2023 during Kazakhstan's first Aviation Dialogue, “Energy Transition for Sustainable Development and Realization of Central Asia's Transit Potential.” In April 2024, the project was presented during the Directors General of Civil Aviation meeting of the European and North Atlantic Bureau of ICAO (EURNAT-DGCA) in Toulouse, France.

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Tajikistan and ADB Sign Grant for Green Corridor Initiative

On November 1, Tajikistan's Ministry of Finance signed a grant agreement worth $86.6 million with the Asian Development Bank (ADB) for a “Green Corridor Demonstration Project”. This project aims to reconstruct 49 kilometers of Tajikistan's Dangara-Gulistan highway, expand it to four lanes with a "Green Road" element, add 48.8 kilometers of bicycle lanes, and build two charging roads. The AIIB has approved a $75.5 million loan for Tajikistan to build a 920-meter bridge, connecting 350,000 people in the northeast to Dushanbe and regional towns and the border of Kyrgyzstan.

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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...

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IFC Increases Investments in Central Asia

The International Finance Corporation (IFC), a member of the World Bank Group, says it committed $1.04 billion in Central Asia in the fiscal year 2024, which started on July 1, 2023, and ended on June 30, 2024. The funds comprised over $400 million in long-term financing from IFC’s account, $600 million in mobilization, and $35 million in short-term trade and supply-chain finance to facilitate trade flows. The funds, coupled with advisory support, aimed to increase private sector participation, create jobs, boost financial inclusion, bolster infrastructure, and support the region’s green transition. Priority sectors included finance, capital markets, renewable energy, agriculture, and infrastructure. Over the last fiscal year, IFC-supported projects in the Central Asian region created about 35,000 jobs, including more than 13,000 for women. Strengthening local financial markets is among its key objectives. To that end, the IFC invested $228 million in 10 financial institutions in Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, with up to half earmarked for women entrepreneurs and rural enterprises. The IFC also supported local financial institutions in growing their micro, small, and medium enterprises (MSME) businesses, advancing climate finance and digital transformation, and issuing the first-ever sustainability, social, and green bonds. The IFC and the World Bank financed a new solar plant with the country’s first battery energy storage system to support Uzbekistan's green transition and climate action. The plant is expected to provide electricity access to approximately 75,000 households in the Bukhara region. In Tajikistan, the IFC invested in the country’s first green bond, issued by Eskhata Bank. The bond will support climate-smart projects and MSMEs undertaking environmental projects. In Kazakhstan and Kyrgyzstan, in addition to investments to increase financial inclusion, the IFC has been evaluating new advisory and investment opportunities, including PPPs in areas such as drinking water supply, renewable energy (including geothermal solutions for heating and cooling), railway projects as part of the Middle Corridor, and the first municipal green bonds in Central Asia. The IFC also supports Kazakhstan's accelerated methane mitigation efforts, which align with the Global Methane Pledge. Wiebke Schloemer, the IFC’s Director for Türkiye and Central Asia, reiterated its commitment to the region: “Over the past 20 years, the region has seen substantial development, with an average annual growth rate of 6.2 percent. Central Asia must leverage the green transition to boost private investment, strengthen connectivity, and reduce resource dependency to continue this growth. The IFC aims to address these goals and continue to deliver solutions where we are needed most — from increasing access to finance for farmers and women entrepreneurs to creating jobs to continue to help countries transition to net zero.”

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ADB Finances Road Reconstruction in Tajikistan

The Asian Development Bank (ADB) has approved a $86.67 million grant to help Tajikistan expand its degraded two-lane 49-km Dangara–Guliston highway to four lanes. Commenting on the move, ADB Director General for Central and West Asia Yevgeniy Zhukov said: “ADB, in partnership with other organizations, promotes safe, accessible, and green transport infrastructure and services in our developing member countries. The Dangara–Guliston road, constructed in the 1930s and reconstructed in the 1970s, will become the first road in Tajikistan to incorporate climate adaptation and elements specific to women's needs." The project will fund two pilot charging stations and develop investment frameworks to catalyze private sector investment in Tajikistan's national charging infrastructure rollout. Safety is a high priority and to this end, the newly reconstructed road will include dedicated cycleways, wide sidewalks for people with children and disabilities, improved lighting and well-marked pedestrian crossings. Special toilets and changing facilities will be provided for mothers and babies, while public transport facilities will include preferential seating for people with disabilities. In addition to the above, the fund will incorporate training programs for women living in and around the project area to open and run small businesses, and award entrepreneurship grants to selected participants. The Tajikistan government has pledged $23 million towards the realization of the project whilst subject to its Board’s approval in early 2025, the European Bank for Reconstruction and Development (EBRD, will provide a $40 million co-financing loan. Tajikistan’s Ministry of Transport plans to complete the project in 2030.

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Migrants in the Crossfire: Russia’s Recruitment for Ukraine War Sparks Tensions

Russia’s ongoing “special military operation” in Ukraine has increased the demand for additional forces, and, in response, Russia is increasingly viewing the use of migrants as a good solution to the situation. As of September 1, 2024, official figures state that 3,985,000 citizens of Central Asian countries lived in Russia. Uzbekistan leads the way with over 1,792,000 migrants, followed by Tajikistan with more than 1,231,000, Kazakhstan with 606,900, Kyrgyzstan with 262,800, and Turkmenistan with 92,000. Some Central Asian migrants have signed contracts with the Russian Ministry of Defense to participate in the war, motivated mainly by financial incentives. However, economic reasons are not the only factor driving them to war. People from Central Asian countries who have received citizenship are also being threatened with imprisonment for failing to join the war effort. TCA has previously reported on efforts by officials to recruit young men detained at the Sakharovo immigration processing center to join the Russian army and fight in Ukraine. In addition, a decree issued by Vladimir Putin has simplified the process for foreigners who join the military to gain Russian citizenship. In contrast, Central Asian governments have looked to discourage their citizens from engaging in the conflict. For example, Uzbekistan has warned that any citizen involved in the Russia-Ukraine war will face legal consequences. In October 2023, an Uzbek citizen who fought in Ukraine for financial reasons was sentenced to three years in prison by a Uzbek court. The defendant had returned to Uzbekistan after being wounded in the conflict, and authorities discovered military documents and proof of his Russian citizenship during their investigation. By September 2024, a growing number of Central Asians had perished in the war, including 47 Uzbeks, 51 Tajiks, and 26 Kyrgyz nationals. In Kazakhstan, since 2014, following the start of the war in the Donetsk and Luhansk regions, criminal liability was been introduced for citizens who participate in armed conflicts abroad. A person who commits such an offense can be punished with imprisonment for up to 12 years, face the confiscation of property, and be deprived of their citizenship. For example, in November of last year, a 34-year-old man from Kazakhstan was imprisoned for six years and eight months for participating in the war in Ukraine. Kyrgyzstan and Tajikistan have also applied measures involving the deprivation of liberty their citizens who participate in the war. Tajikistan’s economy significantly depends on remittances from labor migrants in Russia, which account for approximately one-third of its GDP. Despite the war in Ukraine, over 1.7 million Tajik citizens sought work in Russia in the first half of 2022. However, reports indicate that many Tajik migrants are being sent to Ukraine against their will, raising concerns. The situation further deteriorated after a terrorist attack at Crocus City Hall in February 2024. Tajik nationals were among the primary suspects, leading to a shift in Russia’s attitude towards Central Asian migrants. Tajikistan’s Foreign Minister, Sirojiddin Muhriddin, expressed concerns over the violations of Tajik citizens’ rights in some CIS countries, calling for a...