Uzbekistan - The Times Of Central Asia

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Middle Corridor

Azerbaijan–Kazakhstan Ties Could Reorient Central Asian Integration

The five Central Asian presidents met with Azerbaijan’s Ilham Aliyev in Avaza on October 8 for the Consultative Meeting of the Heads of State of Central Asia and the Republic of Azerbaijan. Azerbaijan’s participation brings a principal outlet for Central Asian trade into the six governments’ economic deliberations. Within their consultative format, the states can coordinate industrial projects with the transport services through which regional producers reach foreign markets. If Azerbaijan and Kazakhstan connect cross-Caspian transport more closely to industrial cooperation, the corridor could become an organizing axis for regional integration. The Case for Trans-Caspian Integration Closer Azerbaijan–Kazakhstan cooperation would make cross-Caspian transport more dependable if trains reach Kazakhstani ports in time for Caspian sailings and cargo arriving at Azerbaijani terminals connects with onward services through Georgia. A 2023 assessment by the International Bank for Reconstruction and Development (IBRD), also called the World Bank, identified trade among Kazakhstan, Azerbaijan, Georgia, and Europe as a driver of corridor demand, giving regional exporters a place alongside China–Europe transit traffic. Onward connections from the China–Kyrgyzstan–Uzbekistan (CKU) railway now under construction could run through Turkmenistan and across the Caspian to Azerbaijan, providing an alternative to routes through Iran. Conflict involving Iran strengthens Azerbaijan’s position as the more dependable western outlet for Europe-bound exports. Greater predictability could offset the cost of a Caspian crossing by reducing the stocks firms must hold against delays and the losses caused by interrupted deliveries. Extending the operating coordination developed with Kazakhstan to these southern connections could make Azerbaijan commercially preferable for Central Asian exporters serving European markets. Kazakhstan and Azerbaijan occupy the principal positions in this prospective reorientation. Together, they represent approximately one-third of the six countries’ population but account for more than three-fifths of their nominal GDP. Yet bilateral merchandise trade amounted to only $470.7 million in 2025. Their combined economic weight is thus disproportionate to the commerce presently linking them. The infrastructure and institutions connecting industrial investment to markets across the Caspian could give the two countries a basis for organizing wider regional integration, provided firms sustain commercial relationships through those connections. The Bilateral Basis for Regional Integration Export commitments depend on the cost and timing of the complete transport service. At Avaza, Kazakhstan’s President Kassym-Jomart Tokayev attached “particular importance” to developing the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. His Azerbaijani counterpart, Ilham Aliyev, advocated joint investment, manufacturing, and entry into foreign markets. For firms undertaking joint production, the commercial viability of Aliyev’s proposal would depend on transport coordinated from departure to delivery. Kazakhstan is developing the Middle Corridor along with the eastern branch of the International North–South Transport Corridor, which links Russia and Iran through Kazakhstan and Turkmenistan. At Avaza, Turkmenistan’s President Serdar Berdimuhamedov supported the development of North–South corridors in addition to East–West routes. Tokayev also highlighted the continuing importance to Kazakhstan of the North–South route in cooperation with Russia. Kazakhstan’s multi-vector approach thus extends to transport infrastructure: the Middle Corridor strengthens westward access without displacing the commercial connections maintained...

Nuclear Energy

Japanese Firm Backs Uzbekistan’s Nuclear-Powered Data Center Project

Uzbekistan's first nuclear power plant, now under construction in the Jizzakh region, is primarily a Russian project. Rosatom is supplying the reactors, and Atomstroyexport, part of its engineering division, is the main contractor. But at the first summit of the Central Asia plus Japan Dialogue in Tokyo in December 2025, a Japanese company agreed to cooperate on a related project: a 50-megawatt data center that could become the first in the world powered entirely by a small modular nuclear reactor. What Russia Is Building The plant in the Forish district will combine two large VVER-1000 reactors with two smaller RITM-200N reactors, for a total capacity of just over 2.1 gigawatts. Uzbekistan's nuclear energy agency, Uzatom, has estimated the maximum contract value at $9.5 billion. Initial concrete work began in March 2026, while the first concrete for the small reactor's foundation was poured in June. The first small reactor is expected to start up in 2029, while the two larger reactors are scheduled for 2033 and 2035. Japan's Role? On December 20, 2025, at the summit, Uzatom signed a memorandum of understanding with Muroosystems Corporation. This Tokyo-based company, founded in 2006, specializes in information technology infrastructure and renewable energy. It expanded into nuclear engineering through its acquisition of a German company, NUKEM Technologies Engineering Services (NUKEM), in 2024. Through NUKEM, Muroosystems plans to provide nuclear safety assessments and engineering services, alongside technical consulting that includes owner's engineer support. These services are intended to support the project in line with international best practices and International Atomic Energy Agency requirements. The cooperation agreement also covers the proposed nuclear-powered data center, involving Uzbekistan's Ministry of Digital Technologies. There is an interesting history behind NUKEM's involvement. The German company was previously owned indirectly by Atomstroyexport and remains based in Germany, although it has been Japanese-owned since September 2024. The Data Center Itself The project involves a data center with an estimated power demand of 50 megawatts. According to DatacenterDynamics, it is expected to receive its normal electricity supply through a direct line from one of the Russian-made RITM-200N reactors, each capable of generating 55 megawatts, rather than from the national grid. Public announcements do not specify how backup power would be provided during reactor maintenance or shutdowns. Combining a Reactor With a Data Center The rationale, outlined by NUKEM, is straightforward. The data center would receive a stable, round-the-clock power supply. In return, the nuclear power plant would gain a steady customer whose high demand could be met through a direct connection, potentially improving the use of its generating capacity. The project also fits into Uzbekistan's efforts to develop artificial intelligence (AI) and digital infrastructure. In September 2026, the country opened new AI-capable data centers in Bukhara and Kokand, while state telecommunications operator Uztelecom announced an agreement to distribute Amazon's satellite internet services. A Pattern, Not an Isolated Case Muroosystems' involvement in Central Asia is not limited to Uzbekistan. The Japanese company has also signed a memorandum of understanding with the National Nuclear Center of...

Energy Infrastructure

AIIB Signs $1.1 Million in Grant Agreements for Caspian Green Energy Projects

The Asian Infrastructure Investment Bank (AIIB) and Azerbaijan have signed two grant agreements totaling $1.1 million. The funds will support preparations for a submarine electricity cable between Kazakhstan and Azerbaijan, as well as preliminary planning for offshore wind infrastructure in the Caspian Sea. Most of the funding, $1 million, is earmarked for the first phase of a feasibility study for the Caspian Green Energy Corridor. The grants are being administered by AIIB through the Multilateral Cooperation Center for Development Finance. The project envisages laying an approximately 400-kilometer submarine power cable. Uzbekistan is also expected to be connected via overland transmission lines. Experts will assess the technical feasibility of transmitting electricity across the Caspian Sea, as well as the scheme's economic viability and environmental impact. The Asian Development Bank will provide another $1 million for the study, bringing its total funding to $2 million. A separate $100,000 grant will support preliminary planning for shore-based infrastructure for Azerbaijan's offshore wind industry. This includes port facilities and vessels, as well as connections between future wind farms and the power grid. Kazakhstan, Uzbekistan, and Azerbaijan agreed to develop the energy corridor in November 2024 at the COP29 climate conference in Baku. In March 2026, the Mazhilis, formerly the lower house of Kazakhstan's parliament, approved an agreement on a strategic partnership among the three countries in the production and transmission of green energy. Kazakhstan formally ratified the agreement in April. The corridor would enable exports of renewable electricity from Kazakhstan and Uzbekistan to Azerbaijan, with the possibility of further deliveries to Europe. Regional cooperation plans also cover the production and export of green hydrogen and ammonia using renewable energy. Azerbaijan's Energy Minister Parviz Shahbazov said the agreements would help develop offshore wind energy and expand opportunities to export electricity from the Caspian region and Central Asia. AIIB Chief Investment Officer Konstantin Limitovskiy stressed the importance of preparatory studies in attracting investment to regional energy infrastructure. AIIB's 12th Annual Meeting will take place in Baku, Azerbaijan, on July 14–15, 2027.

Yandex Drone Attack

Drone Strikes on Russian Data Centers Disrupt Yandex Services Across Central Asia

Drone attacks on three Yandex data centers in Russia disrupted taxi, delivery, and other digital services in Kazakhstan, Kyrgyzstan, and Uzbekistan. At the same time, the company said that Kazakh users’ personal data continued to be stored within Kazakhstan. The outages revealed how heavily Central Asia’s digital economy depends on computing infrastructure beyond its borders. Between October 8 and 11, drones attacked three Yandex data centers in Russia. The first facility hit was in Sasovo, in the Ryazan region, where two supercomputers used for artificial intelligence development were located. The center shut down completely. A subsequent strike hit a data center in Kaluga, disabling some of its equipment. On October 11, another attack forced a facility in Vladimir to shut down. Yandex confirmed the damage and said no employees were injured. Company specialists began redistributing computing workloads among the remaining operational sites, but it is not yet known when the damaged equipment will be fully restored. According to Reuters, the strikes on Russian data centers were part of an expansion of attacks on economic and technological infrastructure during Russia’s war against Ukraine. The consequences quickly spread beyond Russia. On October 11, users in Kazakhstan encountered problems ordering taxis, meals, and groceries through Yandex Go, Yandex Eats, and Yandex Lavka. The disruptions also affected scooter rentals and other applications. Drivers and couriers could not receive orders, while restaurants and stores temporarily lost access to some of their customers. Yandex Qazaqstan confirmed the technical problems. By evening, taxi booking was available again, although some functions continued to operate with restrictions. The company explained that when servers fail, computing tasks are transferred to other resources, but switching workloads takes time. Similar disruptions occurred in Kyrgyzstan and Uzbekistan. Users reported errors when booking rides and ordering deliveries, as well as problems displaying fares. In Kyrgyzstan, Yandex’s local division acknowledged the problems and confirmed that damage to infrastructure in one country could disrupt applications in another. For Central Asia, this is more than a temporary inconvenience. Digital platforms have become part of the urban economy, supporting the work of drivers, couriers, restaurants, stores, and delivery services. When an application stops accepting orders, some market participants effectively lose access to customers. However, reliable estimates of financial losses in Kazakhstan, Kyrgyzstan, and Uzbekistan are not yet available. It is unclear how many orders were lost or whether partners will be compensated for their losses. The outages also affected Yandex’s financial services. Dmitry Pirogov, head of the company’s fintech division, said on October 11 that users were temporarily unable to check their balances, pay for purchases, or transfer money through Yandex Pay. According to him, account information is stored in multiple copies, and checks found no loss of records. However, data preservation did not ensure uninterrupted access to financial transactions. This distinction proved particularly important for Kazakhstan. Following the widespread outages, questions arose about why damage to servers in Russia affected applications in Kazakhstan despite local legal requirements to store personal data within the country. Yandex Qazaqstan said...

Gold

Uzbekistan Gold Reserves Rise to 446 Tons Despite Price Drop

Uzbekistan's gold reserves increased by about 7 metric tons in September, bringing its total holdings to approximately 446 tons, according to figures published by the Central Bank of Uzbekistan. The increase followed purchases of 8 tons in August, bringing Uzbekistan's purchases since the beginning of the year to nearly 50 tons by the end of that month. According to the World Gold Council, Uzbekistan was the third-largest central bank buyer of gold during this period, behind Poland and China. Physical gold holdings increased from 14.11 million to 14.34 million troy ounces in September. However, the value of Uzbekistan's international reserves fell by $5.54 billion, or 7.69%, to $66.58 billion as of October 1. The value of its gold holdings alone declined by $4.83 billion to $60.08 billion. The foreign currency component of the reserves also decreased by $702.8 million, or 10.59%, to $5.92 billion in September. Gold now accounts for approximately 90% of Uzbekistan's international reserves. The decline in the value of the reserves was largely due to falling global gold prices, which dropped by approximately 10% from a late-August high of $4,660 per troy ounce to around $4,176 at the end of September. The World Gold Council attributed the decline to a stronger U.S. dollar, rising U.S. Treasury yields, and investors reducing their positions in gold futures. Higher bond yields make gold less attractive because, unlike bonds, it pays no interest.

Avaza Summit

Avaza Summit Highlights East–West and North–South Trade Routes

On October 8, the presidents of five Central Asian states and Azerbaijan gathered in Avaza, on Turkmenistan's Caspian coast, to discuss closer economic and political cooperation. Hosted by Turkmen President Serdar Berdimuhamedov, the annual Consultative Meeting included Azerbaijan as a full participant for the first time, extending the forum across the Caspian to the South Caucasus. The six leaders adopted a joint statement recognizing East–West and North–South transport corridors as priorities for regional development. The summit highlighted the region's growing importance in Eurasian trade and international supply chains. Beyond expanding transport networks, the leaders proposed closer industrial cooperation and cross-border investment, seeking to capitalize on their geographic advantages while preserving flexibility in their international economic relationships. Transport Corridors in Multiple Directions Turkmen President Serdar Berdimuhamedov said, "I believe it is now important to intensify negotiations and practical steps toward establishing transport and logistics connectivity along the East–West and North–South routes." He added, "The Central Asia–Caspian Sea–South Caucasus–Europe corridor should play a key role here." He also emphasized that cooperation among Turkmenistan, Azerbaijan and Kazakhstan as Caspian states could help integrate the wider Central Asian region and other countries into these transport networks. Turkmenistan remained prepared to make its Caspian infrastructure available for mutually beneficial projects. Its port at Turkmenbashi and rail connections toward Iran give it a practical role in both East–West and North–South trade. The Turkmen president's emphasis on North–South connectivity also reflects ongoing transport cooperation with Russia. In May 2026, Turkmenistan reported that Russia, Kazakhstan, Turkmenistan and Iran were working on an agreement to improve freight movement along the corridor's eastern branch. Turkmen officials also outlined preferential railway tariffs and container services linking Turkmenbashi with Russia's Olya port. Kazakh President Kassym-Jomart Tokayev also highlighted growing demand for the Middle Corridor, while emphasizing the continued importance of the North–South route. "For Kazakhstan, the North–South route in cooperation with Russia remains particularly relevant," Tokayev said. The statement is consistent with Kazakhstan's longstanding multivector foreign policy, which seeks to maintain established trade connections while expanding access to alternative transport routes. Kazakhstan, Central Asia's largest economy, occupies a strategic position at the intersection of major East–West and North–South transport routes. For the region’s landlocked economies, a wider choice of reliable routes can improve access to markets and reduce dependence on individual transit connections. Expanding the Middle Corridor Azerbaijani President Ilham Aliyev emphasized investments on both shores of the Caspian, noting that transit cargo volumes along the Middle Corridor increased by more than 10% in 2025 and by almost 20% during the first eight months of 2026. Azerbaijan has invested in ports, railways, highways and other infrastructure to facilitate trade between Central Asia and international markets. It also serves as a transit route for Kazakh and Turkmen oil exports, giving the country a growing role in connecting Central Asian producers with markets to the west. Tokayev proposed exploring the integration of the Middle Corridor with the Trump Route for International Peace and Prosperity (TRIPP), a planned transport link through Armenia connecting mainland Azerbaijan...