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21 Aug 2025

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S&P Reaffirms Tajikistan’s Credit Rating at B/B with Stable Outlook

August 21, 2025
By Sadokat Jalolova

International ratings agency S&P Global Ratings has reaffirmed Tajikistan’s sovereign credit rating at B/B with a “stable” outlook, according to a statement from the National Bank of Tajikistan.

The bank noted that Tajikistan has worked with international rating agencies since 2014 to assess its sovereign creditworthiness. The reaffirmed rating reflects improved engagement with international partners, consistent economic growth, and rising foreign exchange reserves, all of which contribute to timely debt servicing and reduced pressure on the country’s balance of payments.

Officials emphasized that Tajikistan’s external economic indicators have strengthened in recent years, even as concessional loans continue to make up a large share of its public debt. Maintaining the current rating, they said, affirms the country’s macroeconomic stability and strong economic performance, while enhancing its credibility with foreign investors.

In July, the Eurasian Development Bank (EDB) forecast that Tajikistan’s economy would grow by 8.4% in 2025, the country’s fastest expansion in two decades. Growth of 8% is projected for 2026 and 7.1% for 2027, with Tajikistan expected to outpace both regional and global averages despite a slight moderation.

A key factor underpinning this momentum is remittances from Tajik migrant workers, which are said to account for approximately 45% of GDP. These funds remain vital to the economy, sustaining household consumption and contributing to overall macroeconomic resilience.

21 Aug 2025

Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Hungarian Firm to Build Honey Processing Plant in Kazakhstan

August 21, 2025
By Dmitry Pokidaev

Hungarian company Aranynektár Kft plans to invest in the construction of a honey production and processing plant in Kazakhstan, with a focus on environmentally friendly exports to the European Union.

The project was discussed during a meeting in Astana between Kazakhstan’s Deputy Minister of Agriculture, Yermek Kenzhehanuly, and Aranynektár Kft CEO Ferenc Fulmer. According to the ministry, the facility will feature modern equipment and aim to meet stringent EU standards.

“Kazakhstan has all the necessary conditions for the sustainable development of beekeeping, from a favorable climate and clean environment to a strong scientific base and government support,” Kenzhehanuly said.

Fulmer expressed readiness for long-term cooperation. His company is Hungary’s largest honey producer and exporter, with an annual capacity of up to 4,000 tons, 80% of which is exported to EU countries, the Middle East, and Asia.

In 2024, Kazakhstan produced 5,000 tons of honey, with over 58% of output coming from East Kazakhstan, Pavlodar, Almaty, Turkestan, Abai, and Zhetysu regions. To support the sector, the government will introduce a subsidy of $0.37 per kilogram of honey sold starting in 2025.

Under the 2024-2026 state development program, Kazakhstan is also funding projects aimed at the rational use of bee genetic resources and the adoption of environmentally sustainable production methods. These initiatives are expected to enhance product quality and align with EU export standards.

Previously, The Times of Central Asia reported that Kazakhstan is seeking to expand agricultural exports to Europe and Russia, while China has emerged as the largest importer of honey from Kyrgyzstan.

21 Aug 2025

Central Asia, Kazakhstan, Business & Economy, Kazakhstan Business & Economy

Kazakhstan’s Competition Agency Proposes Partial State Regulation of Coal Prices

August 21, 2025
By Dmitry Pokidaev

Kazakhstan’s Agency for the Protection and Development of Competition has proposed introducing state regulation of coal prices, but only for coal sold to energy companies.

The agency argues that the coal market for energy producers operates as a de facto monopoly. Over 70% of this segment is controlled by Bogatyr Komir LLP, based in Ekibastuz. According to the agency, the company has consistently raised prices over the past five years, with annual increases ranging from 5% to 21.5%. In 2023, antitrust authorities launched an investigation into Bogatyr Komir for allegedly setting monopolistically high prices. The company contested the probe, but on June 10, 2025, Kazakhstan’s Supreme Court upheld the legality of the investigation.

Officials emphasized that thermal coal prices have a direct impact on electricity tariffs, accounting for up to 60% of the costs incurred by energy producers. Rising coal prices also drive up the cost of food and utilities. Despite electricity and heat tariffs being regulated at every stage of delivery, coal prices remain outside the scope of state control.

“This leads to sharp price fluctuations and causes cash flow gaps for energy producers. Therefore, the agency initiated the introduction of state regulation of energy coal prices. This provision is included in the sixth package of amendments to the antitrust legislation, which is currently being considered by parliament,” the agency’s press service stated.

Energy is the largest consumer of coal in Kazakhstan. In 2024, 59% of the 109.8 million tons of coal mined domestically was used within the country, while 29.5 million tons were exported. Coal powers approximately 66% of Kazakhstan’s electricity and 80% of its heat. While around 25 companies operate in the sector, 75% of production is concentrated among four major firms: Bogatyr Komir (with about 40% of market share), Euro-Asian Energy Corporation, Shubarkol Komir, and Karmet (formerly ArcelorMittal Temirtau).

As previously reported by The Times of Central Asia, Kazakhstan’s coal reserves could last 200-300 years, depending on the rate of extraction.

21 Aug 2025

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CSTO Working Group on Military Training and Scientific Cooperation Opens in Bishkek

August 21, 2025
By Stephen M. Bland

A working group meeting on military training and scientific cooperation under the Collective Security Treaty Organization (CSTO) opened in Bishkek today, bringing together delegations from Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan to coordinate officer education, joint curricula, and research collaboration across the bloc. The two-day session runs August 21–22 under Kyrgyzstan’s 2025 chairmanship. AKIpress reported the start of proceedings and its focus on aligning training and scientific work across member states.

Officials have said the agenda will center on harmonizing military-education standards, expanding joint training for specialized branches, and mapping priority research areas that can be shared among defense academies and laboratories across the alliance. Outcomes from the Bishkek meeting are expected to inform the CSTO’s rolling program of joint trainings and institutional cooperation in 2026 and beyond.

Recent Track Record in Central Asia

Today’s meeting builds on a stepped-up schedule of CSTO drills and staff talks in Central Asia. In September 2024, Kyrgyzstan hosted the active phase of “Interaction-2024,” “Search-2024,” and “Echelon-2024” exercises designed to synchronize command-and-control, reconnaissance, logistics, and support elements of the alliance’s collective forces. The Kyrgyz leg concluded with combined operations demonstrations and evaluation of interoperability gains.

In October 2024, Tajikistan hosted “Rubezh-2024,” focused on Central Asia’s rapid-deployment forces and scenarios involving incursions by illegal armed groups, hostage rescue, and air-defense coordination. The CSTO reported that the exercise’s operational objectives were achieved and that joint tactics were refined during the active phase at the Harbmaidon range.

This year, the organization also ran a strategic command-staff training for its Joint Staff and national ministries on March 17–20, 2025, rehearsing planning and coordination procedures for regional contingencies – part of the bloc’s annual joint-training cycle.

Policy framework and next steps

The Bishkek working group is meeting against the backdrop of decisions taken by defense ministers in Bishkek on May 28, 2025, when CSTO members approved the Plan of Military Cooperation for 2026–2030 and the Plan of joint training for 2026 – documents that set training priorities, exercise calendars, and institutional cooperation goals across the alliance.

By aligning academy programs and research agendas, and pairing them with the long-term exercise plan, the CSTO is aiming to standardize specialist training (from signals and EW to logistics and UAV operations), expand exchanges among defense universities, and convert lessons from recent drills into updated curricula. As chair, Kyrgyzstan is expected to circulate agreed proposals from this week’s sessions to the Council of Defense Ministers for inclusion in the 2026 training calendar and for incorporation into the 2026–2030 cooperation framework.

21 Aug 2025

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Analysis: How Kazakhstan’s New Road and Rail Projects Are Boosting the Economy

August 21, 2025
By Times of Central Asia

Kazakhstan is the largest landlocked country in the world, located at the strategic crossroads of Eurasian trade routes. This year, the country launched two major infrastructure projects: the Trans-Kazakhstan Railway Corridor and the construction of a new Center-West Highway, which will connect the capital, Astana, with Kazakhstan’s western regions.

How the Center-West Highway will reshape Kazakhstan’s economy and logistics

The Center-West Highway will link Astana to the country’s western territories, providing direct access to the Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR). Passing through the towns of Arkalyk, Turgay, and Irgiz, the route will cut the distance to western Kazakhstan by more than 560 kilometers (about 350 miles).

It is expected to improve interregional connectivity, stimulate socio-economic growth, increase the capacity of the transport network, and strengthen Kazakhstan’s role as a transit hub.

Deputy Minister of Transport Maksat Kaliakparov told The Times of Central Asia that construction is still in its early stages. Repairs on the Astana-Korgalzhyn-Karazhar section are currently funded by the Development Bank of Kazakhstan, with completion planned for 2026.

“The remaining sections are still in the design phase, and financing is being secured,” Kaliakparov said. “This year we plan to complete feasibility studies for unpaved sections, approve project documentation for the Arkalyk-Egindikol and Irgiz-Torgay stretches, and explore public-private partnerships to attract investment.”

Beyond improving domestic transport links, the Center-West Highway is set to become a crucial part of the TITR, providing a shorter and more reliable route to Kazakhstan’s Caspian ports of Aktau and Kuryk. This will speed up transit, increase freight volumes, and reduce logistics costs for both domestic and international shippers.

According to Kaliakparov, the project also includes modern roadside infrastructure: logistics hubs in Arkalyk and Irgiz, service stations, cafés, hotels, and an intelligent traffic monitoring and control system.

“It is also important to introduce a number of innovative and environmentally friendly solutions, such as stormwater treatment facilities, energy-saving LED lighting, and the use of recycled materials. Environmental requirements will also be taken into account, including the preservation of animal migration routes using environmentally friendly solutions such as underground passages and eco-bridges,” emphasized Kaliakparov.

However, despite its significant advantages, the project faces a number of challenges. The key ones among them are financing, complex terrain and geological conditions, seasonal limitations, and low population density along parts of the route, which affect its commercial viability.

Kaliakparov added: “The road requires significant investment, especially for the construction of new sections, some of which pass through hard-to-reach areas. It is also necessary to take into account the short construction season in the northern and central regions of the country”.

According to him, the highway is being designed with the local climate in mind. Kazakhstan’s continental weather patterns, sharp temperature fluctuations, steppe and semi-desert landscapes, hydrological studies, erosion prevention measures, and strict environmental compliance are taken into account.

Once completed, the Center-West Highway is expected to increase freight traffic to 5–6 million tons per year, cut delivery times between central and western Kazakhstan by 30–40%, divert traffic to this shorter, more cost-effective route, and expand transit flows. The project is tentatively scheduled for completion in 2029, assuming steady funding and adherence to timelines.

Key to Eurasian infrastructure or a new challenge?

From the border with China to Kazakhstan’s seaports on the Caspian Sea, Kazakhstan is building the Trans-Kazakhstan Railway Corridor. The project involves the construction of a 366-kilometer section from Moyynty to Kyzylzhar as an extension of the Dostyk-Moyynty line, as well as the modernization of approximately 1,600 kilometers of existing railway tracks.

The railway will function as a specialized container corridor, introducing modern technologies such as double-stack platforms and locomotives powered by liquefied natural gas, improving both efficiency and environmental performance.

According to Kazakhstan Temir Zholy (Kazakhstan Railways), the project will ease congestion on existing routes, reduce China-Europe transit times, improve access to the country’s coal and metallurgy industries, and boost line capacity.

This massive undertaking also requires close coordination with partner countries – China, Azerbaijan, Georgia, and Turkey. In 2022, these nations signed a joint 2022-2027 roadmap to eliminate infrastructure bottlenecks and increase the capacity of the TITR, synchronizing operations along the route. On Kazakhstan’s side, major supporting projects are underway: building a second track on the Dostyk-Moyynty line, purchasing container platforms and locomotives, expanding the Aktau and Kuryk ports, and developing new logistics terminals along the Trans-Caspian route.

In the long term, the Trans-Kazakhstan Railway Corridor is expected to become a key link in boosting Kazakhstan’s transit potential and increasing freight volumes to Europe, Russia, the South Caucasus, and Turkey via the TITR.

Overall, these two large-scale national projects will have a profound impact on Kazakhstan’s internal regions by creating jobs, supporting business development, lowering logistics costs, and improving transport services. On the global stage, the Center-West Highway and Trans-Kazakhstan Railway Corridor could cement Kazakhstan’s role as a central Eurasian transport and logistics hub, improving efficiency and strengthening links between East and West.

21 Aug 2025

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Britain Imposes Sanctions on Kyrgyzstan’s Capital Bank, Other Entities

August 22, 2025
By Times of Central Asia

Britain has announced sanctions against Kyrgyzstan-based Capital Bank and its director, Kantemir Chalbayev, as part of a growing crackdown on financial networks allegedly being used by Russia to get around international restrictions and fund the war in Ukraine. The bank has previously denied circumventing such restrictions.

“With sanctions continuing to bite, Russia has turned to the Kyrgyz financial sector to channel money through opaque financial networks, including through the use of cryptocurrencies. These networks have created a convoluted scheme to evade sanctions imposed by the UK and its partners,” the Foreign Office said on Wednesday.

So-called secondary sanctions also targeted the Grinex and Meer cryptocurrency exchanges, as well as the infrastructure behind the new rouble-backed cryptocurrency token A7A5, which has moved $9.3 billion on a dedicated crypto exchange in just four months, according to the British government.

The new round of British sanctions was also applied to the Kyrgyzstani firm Old Vector. The firm collaborated with Garantex, which had created Grinex to evade sanctions, and others in the development of the A7A5 token, according to an Aug. 14 statement by the U.S. Treasury Department that imposed similar measures.

In May, state-owned Capital Bank said it was complying with international sanctions regulations.

“Since 2023, as part of its risk management policy, Capital Bank has ceased all forms of financial interaction with individuals and legal entities subject to sanctions imposed by the United States, the European Union, and the United Kingdom,” the bank said. “This decision was made to protect the financial system of the Kyrgyz Republic from the potential impact of secondary sanctions and to ensure the security of operations for both resident and non-resident clients.”

The Foreign Office statement comes as U.S. President Trump tries to end the war in Ukraine through dialogue, meeting last week with Russian President Vladimir Putin and this week with Ukrainian President Volodymyr Zelenskyy and European leaders.