Tajikistan Business Economy - The Times Of Central Asia

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Asian Development Bank

ADB Issues Disaster Relief Bonds to Support Kyrgyzstan and Tajikistan

The Asian Development Bank (ADB) said on May 3 that it had issued its first Disaster Relief Bonds (DRBs), also known as catastrophe bonds, to help Kyrgyzstan and Tajikistan respond to earthquakes and floods. The bonds are part of ADB’s Risk-Layered Disaster Relief Finance Program, which seeks to reduce the financial impact of natural disasters and climate-related shocks. Both Kyrgyzstan and Tajikistan are highly vulnerable to such events but have limited fiscal capacity and risk transfer mechanisms to respond effectively. “With this inaugural sovereign catastrophe bond, our developing member countries in Central Asia gain rapid, committed financing when disaster hits, so they can build back faster. This bond will pave the way for future issuances, and over time deepen investor engagement in this dynamic region,” said ADB Vice-President for Finance and Risk Management Roberta Casali. The DRBs are designed to provide rapid liquidity following severe earthquake or flood events. Once a qualifying disaster occurs, funds will be disbursed through national social protection systems to support affected populations, particularly the most vulnerable. ADB issued separate three-year bonds worth $80 million each for the two countries. Both instruments carry a coupon composed of the compounded Secured Overnight Financing Rate (SOFR), plus a funding margin of 4 basis points and a risk margin of 600 basis points. The bonds were priced at par and are set to mature on May 30, 2029. The offerings attracted broad investor interest. For the Kyrgyzstan tranche, 64% of the bonds were placed in Europe and 36% in the Americas. By investor type, 37% went to specialized insurance-linked securities funds, 32% to insurance and reinsurance companies, and 31% to fund managers. For the Tajikistan tranche, 60% of the bonds were placed in Europe and 40% in the Americas. By investor type, 36% went to insurance-linked securities funds, 33% to insurance and reinsurance firms, and 31% to fund managers. “We are delighted by the strong response from the global investor community, whose support has further enabled the transfer of sovereign disaster risk from the public to the private sector,” said Jordan Brown, Managing Director for Asia Pacific at Aon Securities, which acted as dealer, initial purchaser, and sole bookrunner for the transaction. ADB approved the $56.4 million Risk-Layered Disaster Relief Finance Program in November 2025.

Beef Prices

Meat Prices in Tajikistan Among Highest in Central Asia

Beef prices in Tajikistan remain among the highest in Central Asia, with average retail prices ranging from $10 to $11 per kilogram, higher than in neighboring Kyrgyzstan, Kazakhstan, and Turkmenistan. By comparison, beef costs around $7.6 per kilogram in Kyrgyzstan, approximately $7-7.5 in Turkmenistan, and about $8.66 in Kazakhstan. Uzbekistan is at a similar level to Tajikistan, with prices averaging $10.85 per kilogram. Globally, meat prices continue to rise. According to the Food and Agriculture Organization (FAO), prices increased by about 1% in March compared with February and were up 8% year-on-year. Analysts say the increase is largely driven by rising pork prices, particularly in Europe, along with reduced meat production in Brazil. At the same time, lamb and poultry prices have edged down slightly. Experts warn that declining production in the United States and Brazil, combined with strong demand in Europe, could push beef prices even higher. The highest beef prices globally are recorded in Switzerland, where they reach $45.72 per kilogram. Other high-cost markets include Norway ($32.67), Luxembourg ($27.09), South Korea ($25.23), and Singapore ($25.02). The lowest prices are found in Nigeria ($4.56), Pakistan ($4.70), Kenya ($5.17), India ($5.33), and Nepal ($5.40). Among former Soviet countries, price differences are also significant, with the highest costs in the Baltic states. In Estonia, beef is priced at $20.48 per kilogram; in Latvia, $13.71; and in Lithuania, $12.43. Mid-range prices are seen in Armenia ($11.59), Russia ($10.80), Azerbaijan ($10.64), and Georgia ($9.91). Lower prices are found in Belarus ($9.25), Moldova ($8.59), and Ukraine ($7.22). Despite high prices, domestic meat production in Tajikistan is increasing. According to official data, output of livestock and poultry (in live weight) reached 54,700 tons in January-March 2026, up 11.5% year-on-year. However, prices remain elevated due to supply shortages. The country meets only about 58% of domestic demand, while imports account for just 4-6% of the market. Imported meat, particularly from Belarus and Kazakhstan, is cheaper and helps contain prices, but due to consumer preferences it is mainly used in the food service sector and does not replace locally produced meat. Experts say the high cost of meat in Tajikistan is driven by structural factors, including underdeveloped livestock farming, feed shortages, and limited systemic support for farmers. Imports, they note, provide only temporary relief and do not address the underlying causes of high prices.

Fuel Prices

Fuel Prices Surge in Tajikistan Amid Middle East Conflict

Fuel prices at gas stations in Dushanbe have risen sharply since early March, increasing on average by 8-9%. The increase has been driven by domestic factors as well as adverse developments in the global energy market. The most widely used AI-92 gasoline has risen in price from $1.05 to $1.13 per liter. Diesel has followed a similar trend, increasing from $1.14 to $1.24 per liter. Prices for liquefied petroleum gas (LPG) have risen more modestly, by about 6%, to $0.62 per liter. Prices also vary by location, with drivers noting that fuel in central Dushanbe is traditionally more expensive than in outlying areas. Suppliers attribute the increases to higher prices from producers, but the situation largely depends on external supply chains. Russia remains the primary source of petroleum products for Tajikistan. In 2025, the country imported more than 1.2 million tonnes of fuel and LPG from Russia, accounting for over 70% of total imports. Supplies also come from Kazakhstan, Uzbekistan, and Turkmenistan, though their share is significantly smaller. According to official statistics, Tajikistan imported more than 325,000 metric tons of petroleum products in the first quarter of this year, valued at over $251 million, or approximately $772 per metric ton. Compared with the same period last year, import volumes increased by 11.4%, while their total value rose by 8.6%. Experts say external factors are the main driver of rising prices. They point to international media reports that the conflict involving the United States, Israel, and Iran has triggered a chain reaction in the fuel market, affecting the supply chain from crude oil to refining and retail prices. A key factor has been disruption in the Strait of Hormuz, through which roughly 20% of global oil supplies pass. At the same time, price trends have varied significantly across countries. Al Jazeera reported that fuel prices rose by nearly 70% in Cambodia, 50% in Vietnam, 35% in Nigeria, 33% in Laos, and 28% in Canada. In Central Asia, however, price increases have been more moderate, ranging from 2% to 5% in March and April. In Uzbekistan and Turkmenistan, prices have remained largely stable, which analysts attribute to pricing policies by Russian producers and the availability of domestic fuel supplies.

EU Sanctions

EU Removes Three Tajik Banks from Sanctions List

The European Union has removed three financial institutions in Tajikistan from its sanctions list. The decision was adopted on April 23, as part of the EU’s 20th sanctions package, according to the National Bank of Tajikistan. The move concerns Spitamen Bank, Dushanbe City Bank, and Commercebank of Tajikistan, which had previously been subject to restrictions introduced on November 12, 2025. “As a result of productive dialogue and cooperation between the relevant authorities of the Republic of Tajikistan and European partners, a favorable basis has been created for reviewing previously imposed restrictions,” the National Bank said. The National Bank also noted that the decision reflects strengthened cooperation between the regulator, government ministries, and the European Commission, as well as the consistent implementation of international compliance standards and improvements in anti-money laundering systems. “The adoption of this decision is viewed as a direct result of expanded cooperation with the European Commission, the consistent implementation of international compliance standards, and the strengthening of mechanisms to combat money laundering,” the statement said. The regulator believes the move will provide a strong boost to the development of the banking sector, increase investor confidence, and expand financial services in the country. The sanctions against the three Tajik banks had originally been introduced under the EU’s 19th package of restrictions against Russia. According to the Council of the EU, the measures included a ban on transactions with certain banks and companies from third countries suspected of facilitating sanctions circumvention. At the time, Brussels considered these institutions potential channels for bypassing restrictions imposed on Russia. The list also included financial entities from Kyrgyzstan, Kazakhstan, the United Arab Emirates, Hong Kong, China, and India. However, specific cases or transaction volumes that led to the sanctions were not disclosed. The wording remained general, referring to “assistance in sanctions circumvention” and “support for the Russian economy.” In response, Tajik authorities worked to secure the removal of the restrictions, providing additional guarantees and information to the EU demonstrating that the banks’ financial operations comply with international standards. For its part, the EU showed readiness to reconsider the measures, taking into account changes in the banks’ financial practices and Tajikistan’s efforts to strengthen domestic financial regulation.

Aviation Industry

Tajikistan-Based Shohin Airlines Aims to Acquire Four Airbus Aircraft

Shohin Airlines, a new private airline registered in Tajikistan, says it is in the final stage of acquiring four planes from the Airbus A320neo line of aircraft. The airline and the European aerospace company met on April 10 to discuss the acquisition of two A320neo and two A321neo aircraft, building on a dialogue that began earlier this year at the Airbus headquarters in Toulouse, France, according to Shohin Airlines. The discussions with Airbus are showing “steady positive momentum,” and implementation of agreements “will be an important step in developing the airline’s fleet and strengthening its position in the air transport market,” the airline said in a statement on Friday. Currently, Shohin Airlines operates helicopters for specialized flights. The negotiations with Airbus reflect its plans for significant expansion into commercial passenger traffic. Last month, the airline announced a $200 million investment from a European investment fund.

EBRD

Tajikistan to Receive Nearly €50 Million from the EBRD to Reduce Electricity Losses

The European Bank for Reconstruction and Development (EBRD) will provide Tajikistan with a loan and grant package totalling approximately €50 million to help reduce electricity losses in two regions of the country. According to the Ministry of Finance, total financing amounts to €49.6 million, including €28 million in loans, with the remainder provided as a grant. The loan terms are highly concessional. The interest rate is set at 0.5% per annum plus Euribor, meaning a fixed margin is added to the benchmark rate, which fluctuates based on market conditions. For example, if Euribor stands at 0.2% at the time of disbursement, the total interest rate would be 0.7%. The loan will be repaid over 20 years. During the first six years, only interest payments will be required, while the principal will be repaid over the remaining 14 years. Presenting the agreement to parliament, First Deputy Minister of Finance Yusuf Majidi said the primary objective is to reduce energy losses, replace outdated infrastructure, introduce modern metering systems, and improve billing and revenue collection. The project involves modernisation of electricity distribution networks across nine regional branches in the Sughd and Khatlon regions. The need to address electricity losses has also been highlighted by President Emomali Rahmon. In an address to parliament, he cited figures showing that during the first 11 months of 2025, electricity losses totalled 3 billion kWh-500 million kWh less than in the same period a year earlier.