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Iran

Central Asia Updates from Mideast Conflict

Kazakhstan has expressed sorrow over the deaths of young students in what appeared to be an air strike that hit a girls’ primary school in the southern Iranian city of Minab. “I received the news of the death of 160 schoolgirls in Iran - with deep distress. The interruption of the lives of children, who must get education and step into the future on a peaceful day, is an irreplaceable tragedy for all humanity,” Education Minister Zhuldyz Suleimenova said on Facebook on Monday. “As a parent, I believe that children should never be victims of any kind of conflict, or political disputes,” Suleimenova said. “Their safety and well-being is one of the most important values for the international community and for every state.” Health officials and state media in Iran have reported a higher death toll of at least 175 in the destruction at the school on Saturday, saying most of the dead were probably children. The U.S. military said it was looking into reports of civilian casualties during its operations against the Iranian government. Some reports say the school that was hit is near an Iranian military installation, one of many targeted by U.S. and Israeli strikes since the military air campaign began on Saturday. Kyrgyzstan is working to help hundreds of its citizens who are stranded in Gulf countries because of the Mideast conflict. Diplomats are negotiating with hotels to make sure that Kyrgyz nationals are not evicted, Seitek Zhumakadyr uulu, head of the consular department of Kyrgyzstan’s Ministry of Foreign Affairs, said on Monday. He said there are 800 stranded Kyrgyz citizens in Qatar and about 1,000 in the United Arab Emirates, according to Kyrgyzstan’s state news agency Kabar. Most Kyrgyz citizens in Saudi Arabia are performing Umrah, the Islamic pilgrimage to Mecca, the official said. Thousands of pilgrims have been affected by the air strikes on Iran and retaliation by Iranian forces. Airspace in many parts of the region is closed to commercial traffic and airlines have suspended flights. However, Ulukbek Maripov, Kyrgyzstan’s ambassador in Saudi Arabia, has said that airports there are operating relatively well. There are no reports of Kyrgyz civilian casualties in the conflict. Uzbekistan’s diplomats in Turkmenistan's capital Ashgabat are arranging assistance for Uzbek citizens who want to leave Iran and cross into neighboring Turkmenistan. “Embassy officials will meet citizens at the Turkmen-Iranian border crossing in the city of Sarakhs,” Uzbekistan’s state news agency Dunyo reported. “Official vehicles of the Embassy of Uzbekistan in Ashgabat have been mobilized to facilitate onward travel arrangements.” The Iranian city of Sarakhs is a key transit point for trade between Iran and Central Asia. The border between Iran and Turkmenistan is more than 1,000 kilometers. A Tajik citizen who was leaving Iran by crossing into Azerbaijan needed medical assistance at the border. “A female citizen of Tajikistan experienced health problems during the evacuation from Iran via the Azerbaijani border,” the Azerbaijani Press Agency reported. “She applied to a doctor present at the checkpoint. The Tajik citizen...

Iran

Iran Volatility Tests Central Asia’s Overland Corridors

The current escalation around Iran holds the potential for transforming the long-term geopolitical configuration of Eurasia, including Central Asia. In the short and medium term, aside from the security and safety of its citizens, Central Asia's main concern is economic, because it puts stress on overland rail and trucking routes that cross Iranian territory. Central Asian exporters do not ship through the Gulf, so for now the key issue is whether an Iran-crossing land route remains reliable enough, and financeable enough, to serve as a routine outlet for trade. The Iran transit option differs from trans-Caspian reliance on ports and rail interfaces around the Caspian Sea, transiting to onward rail across the South Caucasus and into Europe. The Iran option offers a continuous land arc from Central Asian railheads and road networks into Iran, then onward to Türkiye and connected European rail networks, with the additional possibility of reaching Iran’s southern ports for Indian Ocean-facing trade. Each route has its own chokepoints, paperwork burdens, and exposure to risk premiums. Rail is efficient for bulk and container flows when schedules and documentation are stable. Trucking provides flexibility, short-notice capacity, and last-mile options, but it is more sensitive to security conditions and border clearance delays. Technical capacity at the Iran–Turkmenistan crossings is key. Recent reports of discussions in Sarakhs describe efforts to expand the use of a specialized rail logistics process whereby entire wheel assemblies are replaced on railcars to transition between different track gauges. There is also a need to address customs constraints at Sarakhs and Incheh Borun. Against that operational background, Kazakhstan has signaled diplomatic attention to Gulf partners and Jordan. President Kassym-Jomart Tokayev has sent messages of support to leaders of the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, and Kuwait, followed by a similar message to Jordan, and a phone call with Qatar’s emir. The language emphasized solidarity and diplomacy and, in commercial terms, reads as partner-management. It reassures major investors and energy-market counterparts that Kazakhstan is engaged, attentive, and positioning itself for stability rather than escalation. The trans-Iran rail foundation is over a decade old. On December 3, 2014, the presidents of Kazakhstan, Turkmenistan, and Iran inaugurated the 928-kilometer Uzen–Bereket–Gorgan railway, characterized by RFE/RL (which gave the length as 935 kilometers) as the shortest railway connecting the three states. The International Union of Railways similarly notes the inauguration of the Gorgan–Inche Boroun link on that date as part of the corridor connecting Iran to Turkmenistan and Kazakhstan. Recent reporting suggests renewed efforts to operationalize the Iran option as a westbound channel. Uzbekistan, in cooperation with Türkiye, launched freight rail services along the Uzbekistan–Turkmenistan–Iran–Türkiye route in 2022. The Organization of Turkic States described a December 2022 event in Tashkent as the first freight train organized from Türkiye to Uzbekistan, which anchors the same basic idea: make westbound rail via Iran more regular and more visible to logistics markets. The point is not that Iran becomes the sole answer, but that Central Asian exporters and transit states have been...

Iran

Central Asia Confronts Iran War Fallout as Trade Routes and Citizens Come Under Pressure

Central Asian governments are racing to protect citizens and keep trade moving as the U.S.–Israel war with Iran widens across the Middle East, disrupting airspace and driving up shipping and energy costs. The effects of the conflict are reaching a region that has spent the past four years trying to diversify trade routes and reduce dependence on maritime chokepoints, now disrupted by rising risk and transport volatility. The threat to its citizens has become immediate for Central Asian governments. On March 1, Kazakhstan’s Foreign Ministry said that it was working on evacuation measures for its nationals in escalation zones and urged citizens to follow official updates from diplomatic missions. It also advised Kazakh citizens in Iran to explore overland exits, including via Azerbaijan, Armenia, Türkiye, and Turkmenistan, given airspace closures and flight suspensions. Uzbekistan’s Foreign Ministry issued safety guidance for citizens in the United Arab Emirates, urging them to avoid crowded areas and adhere to official security directives as tensions in the region escalated. Tajik nationals have already been among those leaving Iran through Azerbaijan’s Astara crossing, with The Times of Central Asia reporting yesterday that five civilians from Tajikistan are among foreigners from numerous countries who have crossed from Iran into Azerbaijan. For Central Asia, the crisis is hitting both its people and its trade routes. The same border crossings used for evacuations sit on corridors that carry freight and connect the region to southern markets. Azerbaijan’s role as a transit hub has grown sharply over the past decade, but in this crisis, it is also a pressure valve for land exits from Iran. As of March 2, more than 300 people have been evacuated from Iran via Azerbaijan. Any tightening at borders or disruptions to rail and road links around the Caspian immediately affect how Central Asian states move both people and cargo. Oil and shipping costs are rising sharply. On March 1, oil prices jumped by around 10%, with analysts warning prices could move toward $100 a barrel if disruption in the Strait of Hormuz worsens. The impact across Central Asia has been uneven. Kazakhstan may see stronger export revenues in the short term due to higher crude prices, but that gain comes with volatility and increased import costs across the region. ING stated that stronger commodity prices could improve the external balance of fuel exporters such as Kazakhstan, while increasing inflation risks for importers. Shipping poses a deeper structural risk. Tanker owners and traders have slowed or suspended transits through the Strait of Hormuz because of security fears and insurance constraints, even without a formal blockade. Higher risk premiums feed directly into freight rates on the routes Central Asian exporters use to reach Europe, the Gulf, and South Asia. When insurers reprice war risk, smaller shippers and landlocked economies absorb the cost first. Iran is central to Central Asia’s trade geography. It serves as a transit state for the southern corridor linking Central Asian rail and port networks to Türkiye, Europe, and the Gulf. Central Asian...

Iran

Central Asian Countries Scramble to Help Nationals in Mideast Conflict Zone

With the Mideast conflict entering a second day, Central Asian governments have urged their citizens in the region to take precautions, including following the instructions of local authorities and staying away from mass gatherings. Five civilians from Tajikistan are among foreigners from a range of countries who have crossed from Iran into Azerbaijan since the United States and Israel launched air strikes at Iranian targets on Saturday, the Azerbaijani Press Agency reported. Others who have crossed include 18 Saudi diplomats, four diplomats from Jordan and hundreds of Russian civilians. Canada and Spain have communicated with Azerbaijan about the possible evacuation of their citizens as well. One citizen of Azerbaijan in the region has been injured, but is in good condition and receiving support from diplomatic staff, said Aykhan Hajizade, spokesman for Azerbaijan’s Ministry of Foreign Affairs. He was quoted by state news agency Azertac. Uzbekistan said there are no casualties among its 81 citizens in Iran. The nationals from Uzbekistan include eight employees of diplomatic missions, nine students in the city of Qom, nine who are in Iran on private visits and 55 permanent residents. “The Embassy maintains constant contact with compatriots,” the Uzbek government said. Iran responded to the air strikes with retaliatory waves of missiles and drones aimed at Israel as well as U.S. military facilities and civilian areas across the region. “Air traffic has been suspended due to temporary restrictions on the use of airspace,” Uzbekistan’s Ministry of Foreign Affairs said in a message on Telegram to its nationals in Dubai, United Arab Emirates. The ministry urged them to fully comply with local laws, avoid going out unnecessarily and stay away from crowded places, and rely only on official sources of information. Kazakhstan said it was working on “round-the-clock interaction” with authorities in countries affected by the conflict, and that its diplomatic missions are providing consular and legal assistance to compatriots. The Ministry of Foreign Affairs has opened hotlines. “Lists of citizens in the region, including transit zones, are being updated,” the ministry said. “Operational chats have been created in messengers where compatriots can get answers to their questions and information about the situation in the country, including recommendations.” The ministry said it was collecting information about the number of Kazakhstani citizens in the “escalation zone,” and that it was difficult to specify the exact number. There have been no reports so far of casualties among people from Kazakhstan, it said. Last year, Mashhad, a northeastern Iranian city near the border with Turkmenistan and a significant hub for trade with Central Asia, was among the targets hit by the Israeli military. At the time, Turkmenistan facilitated the cross-border transfer from Iran of some people from Central Asia and other regions. So far, there are no reports of U.S. or Israeli strikes on Mashhad since the latest conflict began. The city is an Islamic pilgrimage site and is the birth place of Ayatollah Ali Khamenei, Iran’s supreme leader. He was killed in air strikes on Saturday.

Finance

Digital Inequality in Central Asia: Who Is Winning the AI Race in Finance?

AI in Central Asia’s financial sector is no longer a fashionable add-on. It has become a dividing line between leaders and laggards. A comprehensive report by the National Bank of Kazakhstan and the Fintech AI Center highlights a stark reality: while some institutions are building sovereign data centers, others are still attempting to automate basic document management processes. Kazakhstan is setting the pace. In his introduction to the report, Timur Suleimenov, Governor of the National Bank of Kazakhstan, echoes President Tokayev’s digital modernization agenda, writing: “Artificial intelligence is rapidly becoming a new paradigm for the development of the national economy… Our country faces the task of not only avoiding being left on the periphery of the global technological trend, but also of using its potential to accelerate economic modernization.” The regional AI race in finance is effectively underway, and the findings reveal deep digital inequality. The Balance of Power: Leaders and Followers A review of AI implementation across the region shows a pronounced technological divide. Kazakhstan remains the undisputed leader. Its banking sector has moved beyond experimental pilot projects. According to the report, AI is most actively deployed in the development of new products (14% of financial institutions) and marketing (13%), where neural networks enable hyper-personalized offerings. A further 10% of institutions use AI in operational activities and compliance. Elsewhere in Central Asia, governments are developing ambitious strategies, but implementation in the financial sector remains limited. Kyrgyzstan plans to launch a National AI Platform under its Digital Transformation Concept for 2024-2028. However, most of the country’s banks remain at the pilot or early implementation stage. Current AI applications focus primarily on decision-making optimization and advertising materials rather than complex financial operations. Tajikistan has positioned itself prominently at the policy level. It adopted an AI Development Strategy through 2040, the region’s first long-term framework, and initiated a United Nations General Assembly resolution on AI for Central Asia in July 2025. Yet in practice, the country’s financial market is dominated by microfinance organizations (MFOs), which are cautious in adopting advanced technologies. Their AI use is largely confined to risk management and documentation, while automation, software development, and data processing lag behind. Only 7% of institutions apply AI in financial consulting and customer support. Uzbekistan has taken a different route, prioritizing international and regional partnerships. In October 2024, the government approved its AI Development Strategy through 2030. Rather than building infrastructure independently, Tashkent is partnering with global technology providers. The state is working with Huawei to develop physical AI infrastructure and deploy ready-made industry solutions. At the same time, Uzbekistan is strengthening its academic capacity, including investments in high-performance computing for Inha University in Tashkent. Regional integration is also central to its strategy: IT Park Uzbekistan has signed a memorandum with Kazakhstan’s Astana Hub to integrate startup ecosystems. This combination, collaboration with global vendors, academic investment, and regional partnerships, is enabling Uzbekistan to narrow its technological gap more quickly. People Instead of Servers Digital inequality is most evident in spending priorities. Investment structures...

Water Scarcity

Central Asia and the Global Water Crisis: A Test of Governance and Cooperation

Water scarcity is rapidly transforming from a regional environmental concern into one of the defining global security challenges of the 21st century. UN-linked assessments estimate that around four billion people experience severe water scarcity for at least one month each year, and nearly three-quarters of the global population lives in countries facing water insecurity. Against this backdrop, Central Asia is not an exception but rather a concentrated example of global dynamics: climate pressure, population growth, and inefficient resource management. Regional initiatives, including proposals put forward by Kazakhstan, therefore have the potential to contribute not only to stability in Central Asia but to the development of a more coherent global water governance architecture. The Water Crisis as a Global Reality Water is increasingly regarded as a strategic resource on par with energy and food. Climate change is intensifying droughts, floods, and the degradation of aquatic ecosystems across all regions, from Africa and the Middle East to South Asia, Europe, and North America. Recent mapping and analysis by investigative groups and international media indicate that half of the world’s 100 largest cities experience high levels of water stress, with dozens classified as facing extremely high levels. Major urban centers, including Beijing, New York, Los Angeles, Rio de Janeiro, and Delhi, are among those under acute pressure, while cities such as London, Bangkok, and Jakarta are also categorized as highly stressed. In this context, Central Asia is not an outlier. It is confronting today what may soon become the global norm. Central Asia: Where Global Trends Converge A defining feature of the current environmental situation is that factors beyond natural ones drive the water crisis. Experts increasingly stress that shortages are often less about absolute physical scarcity and more about outdated management systems, infrastructure losses, and inefficient consumption patterns. In this respect, Central Asia can be seen as a testing ground for global water challenges, where multiple stress factors converge. The region, with mountain peaks exceeding 7,000 meters, contains some of the largest ice reserves outside the polar regions. The Pamir and Hindu Kush ranges, together with the Tibetan Plateau, the Himalayas, and the Tien Shan, form part of what is sometimes referred to as the “Third Pole,” the largest concentration of ice after the Arctic and Antarctic. [caption id="attachment_13410" align="aligncenter" width="2560"] The White Horse Pass, Tajikistan; image: TCA, Stephen M. Bland[/caption] However, the pace of change is alarming. By 2030-2040, water scarcity in Central Asia risks becoming chronic. Glaciers in the Western Tien Shan, for example, have reportedly shrunk by roughly 27% over the past two decades and continue to retreat, posing a direct threat to the flow of the Amu Darya and Syr Darya rivers. These rivers increasingly fail to reach the Aral Sea in sufficient volume, while the exposed seabed has become a major source of salt and dust storms. [caption id="attachment_21928" align="aligncenter" width="2560"] Moynaq, Karakalpakstan; image: TCA, Stephen M. Bland[/caption] Infrastructure inefficiencies compound the problem. Estimates suggest that in some systems, 40-50% of water can be lost in deteriorating...