Uzbekistan - The Times Of Central Asia

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Chinese Influence

China Steps Into the Central Asian Power Vacuum

China’s footprint in Central Asia is growing rapidly, with the number of joint projects and strategic initiatives expanding across the region. Analysts attribute this shift to the waning influence of both Russia and the United States. Kazakhstan: From Agriculture to Atomic Energy In recent months, China has significantly deepened its cooperation with Kazakhstan. As The Times of Central Asia recently reported, on July 24, the Kazakh Ministry of Finance announced a pilot project with China involving unmanned freight trucks crossing the Bakhty (Kazakhstan) and Pokitu (China) border points. The initiative, known as "Smart Customs," will employ autonomous guided vehicles (AGVs) and implement a unified electronic customs declaration system recognized by both countries. Further institutional cooperation had earlier emerged on July 23, with the launch of the China-Central Asia Poverty Reduction Cooperation Center and the China-Central Asia Education Exchange and Cooperation Center in Urumqi, Xinjiang. These centers aim to deepen collaboration on poverty alleviation and education, priorities reaffirmed during the second China-Central Asia Summit in Astana, where 24 bilateral agreements were signed during President Xi Jinping’s visit. Meanwhile, China is asserting itself in Kazakhstan’s energy sector. On June 14, the China National Nuclear Corporation (CNNC) was announced as the leader of a consortium to build a new nuclear power plant in Kazakhstan. Although Russia's Rosatom is slated to construct the country's first nuclear plant, logistical and financial setbacks at its Akkuyu project in Turkey have led some experts to suggest that CNNC may ultimately be responsible for Kazakhstan’s inaugural facility. Meanwhile, as previously reported by The Times of Central Asia, transit routes through Russia are seeing multiple problems, with Kazakhstan temporarily suspending oil exports via the Black Sea ports of Novorossiysk and Yuzhnaya Ozerovka due to newly enforced Russian regulations. At land borders, new entry procedures for foreign citizens, including Kazakhs, have led to massive traffic jams. China’s Strategic Pivot According to sociologist Gulmira Ileuova, China's assertive role is a response to the diminishing presence of both Russia, distracted by the war in Ukraine, and the United States, which has scaled back developmental efforts. In March, President Donald Trump signed an executive order curtailing the global operations of the United States Agency for International Development (USAID), leading to the suspension of several NGO and media initiatives in Central Asia. “China is rapidly filling the vacuum,” Ileuova noted in an interview with The Times of Central Asia. “Beijing is transitioning from economic engagement to ideological influence, promoting narratives of social harmony and a shared future.” Ileuova anticipates that a broad ideological campaign, comparable to the "One Belt, One Road" infrastructure initiative, may follow, amplifying China’s soft power in the region. Rather than emphasizing democratic values, Chinese cooperation projects often focus on poverty alleviation, which finds greater resonance among Central Asian populations. Xi Jinping’s Repeated Visits Signal Priority As previously stated, Chinese President Xi Jinping visited Kazakhstan on June 16 for the Second China-Central Asia Summit in Astana, during which leaders signed the Astana Declaration and a treaty on “eternal good-neighborliness.” According to political...

Caspian Sea

Opinion: A Sea of Discord? Intensifying Military Drills Threaten Stability in the Caspian Region

On Monday, Russia and Iran launched joint military exercises in the Caspian Sea under the banner “Together for a Safe and Secure Caspian Sea.” Officially, the drills aim to enhance maritime security and naval cooperation between the two countries and are being coordinated by Iran’s Northern Fleet. While such exercises might once have passed without much notice, their timing and frequency reflect a shifting dynamic: the Caspian region is rapidly emerging as a potential hotspot in global geopolitics. Just one month prior, the same waters hosted joint military exercises between Azerbaijan and Kazakhstan, held in Aktau, western Kazakhstan. These were followed by the “Tarlan-2025” air and tactical drills in Azerbaijan from July 8-10, which focused on enhancing UAV operations and military coordination. Baku’s strategic alliance with Ankara is a key factor here. Azerbaijan, a close Turkish partner, is now engaged in a more strained relationship with Russia. Moscow’s muted reaction to this cooling suggests an awareness that Ankara is increasingly shaping a Turkic military-political bloc, an emerging force in a region of strategic importance to both Russia and China. Earlier this month, Turkey launched its annual Anadolu-2025 special forces exercises. Participants included troops from 33 nations, Kazakhstan, Azerbaijan, Pakistan, Uzbekistan, and others but notably excluded Russia. For the first time, in 2024, military exercises were held in the Caspian without Russian involvement. The Birleistik (Unity) 2024 drills were conducted at Kazakhstan’s Oymasha training ground and Cape Tokmak along the Caspian coast. Troops from Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan rehearsed scenarios including conflict zone identification, night maritime operations, and amphibious landings. Previously, regional military cooperation had been limited to bilateral engagements, such as the 2023 UZAZ exercises (Azerbaijan-Uzbekistan), Kanzhar-2023 (Kazakhstan-Uzbekistan), and Hazri-2023 (Azerbaijan-Kazakhstan). The spike in joint drills during 2024-2025 underscores growing rivalries between regional and global powers. These operations are not mere formalities but reveal emerging security alignments and geopolitical signals. Three distinct blocs appear to be coalescing in the Caspian, with implications for Central Asia as well. The first bloc includes Russia, Iran, and China. These nations have held annual “Maritime Security Belt” exercises since 2019, with the most recent in March 2025 off the Iranian coast. The second bloc comprises Turkey, Azerbaijan, and members of the Organization of Turkic States (OTS). Defense ties among these countries are becoming a core element of OTS cooperation. At the 10th OTS Summit in Astana in 2023, Azerbaijani President Ilham Aliyev emphasized defense as the main guarantor of member state security, citing ongoing regional conflicts and violations of international law. The third bloc, more pragmatic and focused, is the Kazakhstan-Azerbaijan partnership. These countries are cooperating on the basis of the 2018 Caspian Convention to secure maritime communications. Azerbaijan contributes military expertise, particularly in UAV and drone warfare developed during the Karabakh conflicts. Kazakhstan brings diplomatic credibility and promotes regional governance and connectivity, offering a stabilizing complement to Azerbaijan’s military strengths. In sum, the Caspian Sea, once colloquially referred to as “Russia’s lake”, is steadily losing that identity. It is transforming into...

Higher Education

Indian Regulator Flags Concerns About Uzbek University

India’s National Medical Commission (NMC) has issued a warning to Indian students regarding enrollment at the Chirchik branch of Tashkent State Medical University in Uzbekistan, as well as three medical schools in Belize. As reported by The New Indian Express, the NMC cited multiple concerns, including alleged non-compliance with Indian medical education standards, subpar infrastructure, inadequate clinical training, high tuition fees, and instances of student harassment. According to the NMC, all of the institutions in question “did not comply with Indian medical education standards, lacked adequate or functioning campus infrastructure, provided poor quality educational and clinical training, and had instances of harassment of Indian students. Additionally, they reportedly charged excessive fees and refused refunds upon withdrawal from the course.” In response, the Chirchik branch issued an official statement categorically denying the accusations, calling them “unfounded.” The university emphasized that it adheres strictly to academic and clinical guidelines established by Uzbekistan’s Ministry of Health and the World Federation for Medical Education (WFME). Established by presidential decree in July 2023, the branch began full operations in December 2024. It currently enrolls 801 students, including five from India, alongside others from Jordan, Pakistan, and Egypt. The university highlighted its modern facilities, which include fully equipped classrooms, laboratories, simulation centers, and student dormitories. “An open and transparent environment is created for students,” the statement read, underlining a commitment to academic freedom and equal treatment. The Chirchik branch is listed in the World Directory of Medical Schools, jointly maintained by WFME and FAIMER. It offers English-language medical programs and maintains partnerships with several international universities and clinical institutions. “We take the concerns raised by the NMC seriously,” the university stated. “However, we believe these claims are based on information that has not been verified locally and are unfounded.” The university expressed openness to inspections and dialogue with Indian authorities and reassured students and families of its adherence to global academic standards. “We categorically reject attempts to damage our reputation,” the statement concluded.

Crime

Secret 450-Meter Smuggling Tunnel Uncovered on Kazakhstan-Uzbekistan Border

Kazakhstan’s Financial Monitoring Agency has uncovered a secret underground tunnel used to smuggle petroleum products across the border with Uzbekistan. The tunnel, discovered in the Turkestan region, extended 450 meters underground. According to the agency, a transnational criminal group operated the tunnel for approximately two months, using it to illegally transport fuel and lubricants. The scheme reportedly involved foreign financing and a carefully organized logistics network to facilitate cross-border smuggling. The operation to dismantle the network was coordinated by the Prosecutor’s Office of the Turkestan region and the Department of Financial Monitoring, with assistance from Uzbek law enforcement. Authorities have identified all members of the group, including several Uzbek nationals. Five Kazakh citizens have been formally named as suspects. Officials confirmed that the investigation is complete and the case has been referred to court. This is not the first such case. In December 2024, a similar tunnel was discovered under joint operations between Kazakhstan and Uzbekistan. That tunnel also measured around 450 meters and was used to move an estimated 5 to 7 tons of fuel daily. In April 2024, Kyrgyz authorities uncovered a separate underground passage in the Jalal-Abad region along the border with Uzbekistan. That tunnel was reportedly used for smuggling both people and goods. According to Kyrgyzstan’s Osh regional police department, officers arrested a woman from Uzbekistan who had illegally entered Kyrgyz territory through the tunnel. These repeated discoveries highlight the persistence and complexity of smuggling operations across Central Asia’s borders. Authorities in Kazakhstan, Uzbekistan, and Kyrgyzstan have intensified joint efforts to locate and dismantle underground smuggling routes used by organized criminal groups. Kazakhstan’s Financial Monitoring Agency emphasized that cross-border cooperation will continue in order to prevent similar incidents and strengthen regional border security.

Banking

Halyk Bank Buys 49% Stake in Uzbekistan’s Click in Landmark Fintech Deal

Almaty - Kazakhstan’s Halyk Bank has announced it will acquire a 49% stake in Uzbek digital payments company Click for $176.4 million, marking one of the largest cross-border banking investments in Central Asia to date. The deal values Click at approximately $360 million, highlighting the growing importance of digital finance in the region’s rapidly evolving financial landscape. With over 20 million customers, Click is one of Uzbekistan’s most widely used payment providers. As part of the agreement, Click will also take a 49% stake in Tenge Bank, Halyk’s Uzbek subsidiary, for $60.76 million. The reciprocal structure of the deal is designed to foster tighter operational integration and shared technological infrastructure between the two institutions – a significant step toward regional financial harmonization. “This is a historic moment for Click. Partnering with Halyk Bank and expanding our capabilities through Tenge Bank represents a major step forward in delivering world-class digital financial services to millions of users,” said Ulugbek Rustamov, CEO of Click. “At the same time, the structure of the deal ensures Click retains its independence, continues to shape its strategic vision, and remains a proud national brand.” Strategic Push Toward Integration The announcement comes as both Kazakhstan and Uzbekistan continue efforts to modernize their financial systems and ease cross-border payments. Regional trade between the two nations has grown steadily in recent years, with bilateral trade turnover reaching $4.22 billion in 2024, up from $2.9 billion in 2020. Halyk Bank, already Kazakhstan’s dominant financial institution with a 29% market share and more than 10.9 million active retail clients, views the investment as a strategic step towards capturing Uzbekistan’s booming digital economy. Click, meanwhile, gains regulatory grounding via Tenge Bank and access to Halyk’s technology and ability to raise capital from its public listing on the London Stock Exchange. Uzbekistan, whose GDP grew by 7.2% in the first half of 2025, continues to open its financial sector to foreign capital – a key pillar of President Shavkat Mirziyoyev’s economic reform program. Competing Power Structures? This fintech alliance also throws an intriguing light on Central Asia’s most influential business families. Halyk Bank is majority-owned by Timur Kulibayev and his wife Dinara, the daughter of former Kazakh president Nursultan Nazarbayev, widely viewed as Kazakhstan’s most powerful couple. Their expanding presence in Uzbekistan via Click and Tenge Bank may once have had the potential to ruffle feathers amongst Uzbekistan’s elite. The fact that the deal has been allowed to proceed this far is in itself an acknowledgement of the shared interests of regional powerbrokers. A Shift in Regional Strategy The deal represents a strategic reversal for Halyk Bank. In recent years, the bank has divested from its Kyrgyz and Tajik operations, selling 100% of its Kyrgyz subsidiary to oligarch Aidan Karibzhanov in 2024 and liquidating its Tajik entity in 2022. The Click acquisition signals a renewed focus on Uzbekistan, with the potential to make the country Halyk’s primary external growth market. This renewed push comes as Halyk cements its dominance in Kazakhstan, where it controls...

UNESCO World Heritage List

Timur’s Birthplace Languishes on UNESCO List of Endangered Sites

Bukhara, Samarkand, Khiva. Uzbekistan’s cultural heritage draws visitors from around the world, but the troubled modern history of another ancient site, Shakhrisabz, is a reminder that development and mass tourism sometimes overshadow preservation. Shakhrisabz, or Green City, is less known than some other tourist destinations in Uzbekistan that were part of the Silk Road network linking cultures across Asia, Europe, and Africa many centuries ago. Yet the old urban core is more than 2,000 years old and contains spectacular monuments and other structures, some dating from the heyday of the city during the rule of the Turco-Mongol conqueror Timur, also known as Tamerlane, and the Timurids in medieval times. [caption id="attachment_34196" align="aligncenter" width="2560"] Timur Statue; image: TCA, Stephen M. Bland[/caption] UNESCO declared it a world heritage site in 2000. But the historical center of Shakhrisabz, previously called Kesh, was placed on the U.N. cultural agency´s list of world heritage sites in danger in 2016 after large sections were razed to make way for a park and tourist facilities. It has stayed on the danger list ever since as officials in Uzbekistan, assisted by international advisers, try to figure out a way to prevent it from losing its United Nations status altogether. A total of 53 locations around the world are on UNESCO’s danger list. [caption id="attachment_34197" align="aligncenter" width="2560"] The Fayzullah Ravnakhi Museum B&B, one of many buildings demolished to make way for tourist facilities; image: TCA, Stephen M. Bland[/caption] A solution in Uzbekistan’s case appears to be in the works. At a meeting in Paris this month, the UNESCO World Heritage Committee tentatively approved an Uzbek proposal that would restore Shakhrisabz in southern Uzbekistan to the regular heritage list but in reduced form – only four key Timurid monuments would be included, while the rest of the historical center would be labeled as a buffer zone. “The main focus is expected to shift from the concept of a ´complete historic city´ to the conservation of the ensemble of monuments, including the Ak-Saray Palace, while preserving their urban context,” reported Gazeta.uz, a media organization in Uzbekistan. [caption id="attachment_34198" align="aligncenter" width="2560"] Ak-Saray Palace; image: TCA, Stephen M. Bland[/caption] Uzbekistan must conduct archaeological studies, prepare a restoration plan, and take other measures in order for the proposal to succeed, according to Gazeta.uz. Uzbekistan must update UNESCO on its progress in February 2026, and the process could still take several years. Construction of the Ak-Saray Palace began in 1380 after a military victory by Timur, who was born in the city, according to UNESCO. The agency said that not one of the many Timurid monuments in Samarkand, north of Shakhrisabz, can rival the Ak-Saray Palace. “The foundations of its immense gate have been preserved: this architectural masterpiece is outstanding in its dimensions and bold design,” UNESCO said. While Shakhrisabz has less tourist infrastructure than nearby Samarkand, there are efforts to raise its profile. Last year, the Economic Cooperation Organization, whose ten members include Central Asian countries, declared it the tourism capital for 2024. Uzbekistan’s other cultural sites have also faced...