• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00192 0%
  • TJS/USD = 0.09224 0.55%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 -0.14%
22 January 2025

Viewing results 1 - 6 of 28

Opinion: What Will a New Trump Presidency Mean for Central Asia?

During his presidency, Donald Trump introduced a foreign policy approach that recalibrated U.S. engagement with Central Asia, a region strategically critical yet overshadowed by the influence of China and Russia. Trump’s policies, targeting the collective challenge of CRINK (China, Russia, Iran, and North Korea), aimed to foster regional autonomy and counter external dependency. This policy shift, aimed at countering the global influence of CRINK has extended to the vital region of Central Asia. Further, it is geographically wedged between Russia and China and serves as a critical bridge for U.S. interests. The CRINK nations, in their regional strategies, have made substantial inroads in Central Asia. Additionally, each nation is pursuing influence through economic, political, or military avenues. China’s Belt and Road Initiative (BRI) and Russia’s Eurasian Economic Union, for instance, have been noted as major forces reshaping Central Asian economies as well as infrastructure. In 2013, the BRI of China was launched, which has channeled billions into roads, railways, and other infrastructure projects in Central Asia, seeking to create new trade routes connecting Asia to Europe. On the other side, Russia has promoted its Eurasian Economic Union as a trading bloc that has aimed at fostering economic integration among Central Asia and neighboring countries. These initiatives have provided economic incentives for Central Asia but also intensified its reliance on external powers, particularly China and Russia​. During his presidency, Trump emphasized a CRINK-focused strategy, which prioritized Central Asia's sovereignty and reduced dependency on China and Russia. This strategy laid the groundwork for U.S. engagement in the region, influencing current policy directions. In 2020, Trump’s administration unveiled a comprehensive strategy for Central Asia, marking the first such effort in over two decades. The policy emphasized U.S. support for border security and defense collaboration, including financial aid to Tajikistan and military training for Kazakhstan and Uzbekistan. These measures, though initiated under Trump, continue to shape current U.S. approaches to combating terrorism and fostering regional stability. For example, the U.S. has established the C5+1 initiative as a dialogue platform between the United States and the five Central Asian nations (Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Tajikistan). It was developed further to promote mutual goals in regional security, economic development, and environmental resilience​. Security cooperation is a vital aspect of this U.S. strategy which has given the threats of terrorism and also potential instability at CRINK’s peripheries (Sciutto, 2024). In particular, Afghanistan’s proximity to Central Asia poses both risks as well as opportunities for these nations. The U.S. has provided financial support to Tajikistan to strengthen border security and counter drug trafficking. Furthermore, while also assisting Kazakhstan and Uzbekistan with training and equipment to improve their defense capabilities the US has financially supported the nation. This military cooperation has aimed to prevent the encroachment of extremist groups like ISIS, which could exploit regional instability and threaten U.S. interests​. Trump’s presidency emphasized private sector investments as an alternative to China’s Belt and Road Initiative. Although modest compared to China’s commitments, these investments reflected an effort to position...

How Kazakhstan and Uzbekistan Anchor a Strategic Middle-Power Hub in Central Asia

Kazakhstan and Uzbekistan are driving Central Asia’s global significance. Together, they are turning Central Asia into a strategic middle-power hub. The two countries increasingly act as central nodes in a region key to global supply chains and, inevitably, geopolitical competition. However, they are not merely reactive to changes around them, but are highly dynamic. What does it mean to say that the region is emerging as a strategic middle-power "hub"? The notion of a hub extends beyond the national profiles of the two principals, Kazakhstan and Uzbekistan, to include the aggregation of collective influence. Central Asia is recognized as a cohesive entity in global forums. Kazakhstan’s energy wealth combines with Uzbekistan’s demographic strength, creating an influential synergy beneficial to the entire region. The interplay between their respective strengths allows them to amplify Central Asia’s voice in international institutions and negotiations collectively. By integrating their regional strategies within global frameworks — such as the Organization of Turkic States (OTS), the Shanghai Cooperation Organization (SCO), and the Conference on Interaction and Confidence Building Measures in Asia (CICA) — Kazakhstan and Uzbekistan enhance the region’s geopolitical relevance. Kazakhstan, for example, has successfully advocated for the Trans-Caspian International Transport Route (TITR, also called the "Middle Corridor"). This transcontinental trade route is emerging as a lynchpin in Eurasian logistics, connecting China to Europe via the Caspian Sea. Uzbekistan, for its part, has emphasized the integration of transport and energy infrastructure. These initiatives align with the broader vision of a unified Central Asia. The leadership of Kazakhstan and Uzbekistan has reinforced the region's collective identity as the "C5" group, also including Kyrgyzstan, Tajikistan, and Turkmenistan. This regional bloc has become a diplomatic focal point for major powers like the United States, China, Germany, and Japan. All of them engage with Central Asia through structured consultations within the C5 framework. These meetings have given the region traction in international diplomacy. The elevation of the C5 group reflects the region's new prominence. The United States engages with the C5 on issues ranging from regional security to sustainable development, emphasizing its commitment to a secure and prosperous Central Asia. China’s cooperation under the C5+1 mechanism complements its transcontinental infrastructure initiatives. Germany focuses on sustainable energy and governance, while Japan prioritizes infrastructure and technology transfers. Kazakhstan and Uzbekistan together have over two-thirds of the region's gross domestic product and two-thirds of its population. Kazakhstan's vast natural resources undergird its economic influence, while its geographic expanse (as the ninth-largest country in the world) makes it central to major connectivity initiatives. Through President Kassym-Jomart Tokayev's nuanced foreign policy, Kazakhstan has adeptly balanced relationships with major powers, ensuring that it remains a key partner for Russia, China, and the European Union. Uzbekistan has surged to prominence through its ambitious domestic reforms and proactive engagement for regional cooperation under the leadership of President Shavkat Mirziyoyev, who has implemented market liberalization measures attracting foreign investment and reinvigorating its economy. As the most populous country in Central Asia, Uzbekistan is an indispensable actor in regional affairs....

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...

How Can Central Asian Countries Advance Democratization Efforts Amid Geopolitical Uncertainty?

On October 27, Uzbekistan held parliamentary elections, which, along with the referendum in Kazakhstan and upcoming local council elections in Kyrgyzstan, contributed to a global election year. In the elections in Uzbekistan, the ruling Liberal Democratic Party emerged victorious, participating for the first time in elections held under a mixed majoritarian-proportional system. As a result of the vote, the Liberal Democratic Party received 42,7% of the votes, securing 64 out of 150 seats in parliament. Voter turnout was 74.72%, and observers noted the organization and conduct of the elections. Leaders in Central Asia frequently cite the region’s volatile geopolitical landscape as a basis for more cautious internal reforms. This reflects a need to maintain stability in the face of external pressures. Historically and currently, Central Asian countries do not represent homogeneous societies. Additionally, increasing political divisions within society and among political elites are observed in almost all five countries of the region. Against this backdrop, escalating geopolitical conflicts on the global stage may further hinder the realization of major political reforms.   Political Reforms and an Unstable World Order It's challenging to definitively assess political reforms in Kazakhstan and Uzbekistan as either negative or positive, as both perspectives exist. European and American leaders often note the countries' aspirations for reforms and express readiness to support them. Therefore, Kazakhstan and Uzbekistan effectively act as locomotives of political reforms in Central Asia at this stage. Under the leadership of President Kassym-Jomart Tokayev, Kazakhstan has undertaken political reforms aimed at modernizing the political system and strengthening democratic institutions. A significant step was limiting presidential powers by introducing a single seven-year presidential term without the right to re-election, which should promote regular changes in political leadership. Kazakh authorities argue that the role of parliament has also been strengthened to increase its influence and accountability to the government, providing a more balanced system of checks and balances. Liberalization of the party system included simplifying the registration of political parties and introducing elections based on single-member districts, which should foster political pluralism. Steps were taken to increase citizen participation in governance, including the introduction of direct elections for village and district mayors and creating mechanisms for open citizen feedback. Additionally, a 30% quota for women, youth, and people with disabilities was introduced in party lists, contributing to strengthening gender equality. Under President Shavkat Mirziyoyev, Uzbekistan is also conducting significant reforms aimed at democratizing the political system. These elections were noteworthy for the introduction of a mixed electoral system, representing a significant departure from past practices. Under this system, 150 seats in the Legislative Chamber of the Oliy Majlis should be filled by two methods: 75 seats were elected through single-member districts (majoritarian system), and the remaining 75 were allocated proportionally based on party results (proportional system). This approach aims to enhance political pluralism by allowing both individual candidates and political parties to gain representation. The majoritarian component allows voters to directly elect representatives from their constituencies, fostering a closer connection between elected officials and their constituents....

How Central Asia Is Shifting From Russia Towards Turkey

For Turkey, a NATO member and EU hopeful, the Organization of Turkic States (OTS) is an instrument that helps Ankara increase its presence in the strategically important region of Central Asia. For Kazakhstan, Kyrgyzstan, Uzbekistan, and Turkmenistan, the Turkish-dominated group seems to be a tool that allows them to achieve their economic goals, while also continuing to distance themselves from Russia. Although Moscow still has a relatively strong foothold in Central Asia, it does not seem able to prevent the growing role of the Organization of Turkic States in the post-Soviet space. This entity – whose members are Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan, while Turkmenistan, Hungary, and the self-proclaimed Turkish Republic of Northern Cyprus hold observer status – has the potential to eventually serve as a counterbalance not only to Russian, but also Chinese influence in the region. Since its foundation in 2009, the OTS has held ten summits of its leaders. Over this period, the intergovernmental organization’s working bodies have also convened dozens of times. On November 5-6 in the Kyrgyz capital Bishkek, the OTS heads of states will meet for the eleventh time to discuss the future of the Turkic world. Although the agenda has yet to be announced, it is believed that the OTS leaders will seek to strengthen economic cooperation between its members. Currently, their major trade partners are nations outside the bloc. For instance, Turkey’s largest trading partner is Germany, Azerbaijan’s is Italy, while China has recently become Kazakhstan’s biggest trade partner with bilateral trade hitting $31.5 billion. For neighboring Kyrgyzstan and Uzbekistan, China and Russia remain the most important economic partners. One of the group’s major problems is the fact that its members, excluding Turkey, are landlocked countries heavily-dependent on Russia and China geographically. Turkmenistan and Kazakhstan, as major energy exporters, rely on oil and gas pipelines traversing Russian territory to reach their customers in Europe. It is, therefore, no surprise that the Organization of Turkic States governments’ agreed in September to create a simplified customs corridor, aiming at reducing the number of documents required for customs operations and customs procedures between OTS member states. In other words, they plan to increase trade among themselves. According to Omer Kocaman, OTS Deputy Secretary-General, the Turkic nations are also looking to “continue cooperation to stimulate positive changes in their financial systems.” That is why the organization has recently launched the Turkic Investment Fund – the first joint financial institution for economic integration of the Turkic countries, with an initial capital of $500 million. Kyrgyzstan’s Chamber of Commerce and Industry announced on October 17 that, starting in January 2025, the Turkic Investment Fund will begin financing major joint projects in OTS nations. However, in July, Azerbaijani President Ilham Aliyev said that the current structure of the Organization of Turkic States does not meet its established goals, and that its budget is insufficient for their implementation. In order to change that, on October 19, ministers of economy and trade of the OTS nations met in Bishkek to...

The Ferghana Valley: Navigating Complex Challenges in Central Asia’s Most Volatile Region

The Ferghana Valley is one of Central Asia’s most fertile and densely populated areas, but it is also among the most volatile. Spanning Uzbekistan, Kyrgyzstan, and Tajikistan, this landlocked region has long been a hotbed of ethnic tension, water disputes, and political instability. These challenges are deeply rooted in the geography, history, and sociopolitical landscape, making the valley a key focal point for understanding broader regional dynamics in Central Asia.   Geographical Importance and Ethnic Diversity Nestled between the towering Tien Shan and Pamir Mountain ranges, the Ferghana Valley covers over 22,000 square kilometers. It is fertile land nourished by the Syr Darya River, making it a critical area for cultivating cotton, fruits, and vegetables. These natural resources have historically drawn diverse populations, creating a vibrant ethnic mosaic. The valley is home to Uzbeks, Kyrgyz, and Tajiks, as well as smaller ethnic groups. While ethnic Uzbeks form the majority, significant Kyrgyz and Tajik minorities inhabit border regions. The ethnic diversity of the Ferghana Valley is both a strength and a source of tension. Soviet-era border policies exacerbated these divisions by creating artificial boundaries that crisscrossed the valley, leaving behind ethnic enclaves — pockets of one nationality surrounded by the territory of another. These enclaves have complicated governance and territorial integrity, making border management a persistent challenge.   The Soviet Legacy and Border Disputes During Soviet rule, the Central Asian republics were organized under Stalin’s divide-and-rule strategy, which deliberately created complex borders to weaken local identities and prevent regional unity. The Ferghana Valley, divided among three Soviet republics, is a prime example of this approach. After the Soviet Union's collapse in 1991, the administrative boundaries became international borders overnight between Uzbekistan, Kyrgyzstan, and Tajikistan. The lack of clearly defined borders has sparked numerous conflicts over territory, water, and land. A notable clash between Kyrgyzstan and Tajikistan in 2021 resulted in over 40 deaths and the destruction of homes and infrastructure. Many disputes revolve around access to scarce resources like water and arable land. These issues have escalated into violent confrontations, leading to casualties and the displacement of local populations.   Water: A Scarce and Contested Resource Water is the lifeblood of the Ferghana Valley, but disputes over its allocation are a major source of tension. The valley depends heavily on irrigation for its agricultural productivity, and the Syr Darya River, along with its tributaries, plays a crucial role in supplying water to the region. However, the division of the valley among the three countries complicates water management. Uzbekistan, the most populous of the three, relies on the valley’s water resources for its cotton industry, a cornerstone of its economy. Meanwhile, Kyrgyzstan and Tajikistan, which control the headwaters of the Syr Darya, often use their upstream position to leverage water access. This dynamic has led to frequent disagreements over water usage. For instance, Kyrgyzstan has at times threatened to withhold water unless it receives compensation, either through payments or electricity.   Ethnic Tensions and Political Instability Ethnic tensions further complicate the Ferghana Valley’s already volatile...