Page 18 – The Times Of Central Asia

27 Mar 2026

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Kyrgyzstan Earned Almost $1.1 Billion from Tourism in 2025

March 27, 2026
By Sergey Kwan

Kyrgyzstan’s tourism industry continued to expand in 2025, remaining an important contributor to the country’s economic growth.

According to the National Statistical Committee, revenue from foreign visitors reached $1.098 billion in 2025, up from $1.016 billion in 2024.

Tourism accounted for 3.8% of GDP, compared to 3.6% the previous year. At the same time, Kyrgyz citizens spent $564 million on travel abroad.

As of January 1, 2026, the country had 148,100 registered tourism-related businesses. Revenue from passenger transportation serving tourists across all modes of transport totaled nearly 17.3 billion soms (approximately $197 million), compared to 16.9 billion soms in 2024.

Kyrgyzstan’s main tourist attractions include Lake Issyk-Kul and its mountain ski resorts, with the largest and most popular located in Karakol.

In recent years, more than 95% of foreign tourists have come from neighboring Central Asian countries and Russia.

According to the Tourism Development Fund, most visitors arrive from Uzbekistan, followed by Kazakhstan and Russia. At the same time, the number of tourists from Arab and European countries, as well as from China, India, and the United States, has been steadily increasing.

27 Mar 2026

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Uzbekistan and Tajikistan Launch 10 Joint Projects During Rahmon’s State Visit

March 27, 2026
By Sadokat Jalolova

Uzbekistan’s President Shavkat Mirziyoyev welcomed his Tajik counterpart Emomali Rahmon to Tashkent on March 26 for a state visit marked by high-level talks, and the launch of joint economic projects.

Talks between the presidents followed, first in a one-on-one format and then during the inaugural meeting of the Supreme Interstate Council, a new platform aimed at deepening bilateral cooperation. Mirziyoyev described the visit as a landmark in bilateral relations, noting that the council would elevate cooperation and provide a mechanism for implementing joint initiatives.

Both sides highlighted the increasing frequency of contacts between government institutions, parliaments, and agencies. In the lead-up to the visit, a series of events took place, including an intergovernmental commission meeting, an industrial exhibition, and forums involving regional leaders, academics, and youth. Uzbekistan also hosted Days of Tajik Culture and Cinema.

During the discussions, Mirziyoyev and Rahmon reviewed opportunities to expand cooperation across key sectors, including trade, industry, transport, and water and energy security. Bilateral trade approached $1 billion last year, driven largely by the exchange of finished goods.

The two countries aim to double this figure to $2 billion by 2030. Planned measures include accelerating the establishment of the Oybek-Fotekhobod border trade center, introducing digital certification systems and “E-Permit” mechanisms, and modernizing border infrastructure. The sides also agreed to adopt an industrial cooperation program covering mining, energy, agriculture, construction, and manufacturing.

Following the council meeting, Mirziyoyev and Rahmon attended a ceremony to launch 10 joint projects. These include new enterprises producing furniture and leather goods, expanded household appliance manufacturing, textile production facilities in Tajikistan, and construction projects in Tashkent. Additional initiatives include food processing plants in Uzbekistan’s Fergana region, dairy production in the city of Andijan, and facilities for making fruit juice and metal briquettes in the country’s Surkhandarya region.

A ceremony was also held to name a street in New Tashkent after Dushanbe, underscoring symbolic ties between the two capitals.

The visit also featured the opening of a new building for Tajikistan’s embassy in Tashkent. The complex includes administrative offices, a consular section, a residence for the ambassador, and housing for diplomatic staff and their families.

Cultural diplomacy formed another key part of the visit. Mirziyoyev and Rahmon attended a joint concert at the International Forums Palace featuring performers from both countries, with a program highlighting shared cultural heritage and longstanding ties between the Uzbek and Tajik peoples.

The leaders also discussed regional and international issues, reaffirming their commitment to continued dialogue and cooperation within Central Asia. They agreed to strengthen coordination on security matters and expand interregional ties, as well as humanitarian, educational, and scientific exchanges.

Given the presence of large diaspora communities in both countries, a proposal was put forward to adopt a five-year program aimed at strengthening cultural and humanitarian connections.

At the conclusion of the visit, both sides agreed to develop a comprehensive roadmap to ensure implementation of the agreements reached, signaling continued efforts to expand cooperation across political, economic, and cultural spheres.

27 Mar 2026

Kazakhstan, Home, Justice, Kazakhstan Justice, Features, Kazakhstan Featurees

Kazakhstan–Kashagan Dispute Heads to International Arbitration

March 29, 2026
By Dmitry Pokidaev

Kazakhstan’s Vice Minister of Justice, Daniel Vaisov, announced that the country’s claims over the removal of sulfur storage limits at the Kashagan field, operated by North Caspian Operating Company N.V. (NCOC), will be heard under the International Centre for Settlement of Investment Disputes framework, which is headquartered in Washington.

NCOC includes Shell, TotalEnergies, Eni, ExxonMobil, CNPC, Inpex, and KazMunayGas.

In March 2023, an inspection of the Kashagan consortium by Kazakhstan’s environmental authorities identified violations of environmental legislation, including the excessive storage of sulfur volumes exceeding permitted limits. The resulting claim was valued at around $5 billion, according to the authorities. A court of first instance in Kazakhstan ruled in favor of the environmental authorities, according to Vaisov.

Six of the seven NCOC participants, excluding KazMunayGas, challenged the ruling in a Kazakh court in March this year. At the same time, the foreign investors initiated international arbitration proceedings.

“This claim was filed under bilateral international agreements: the agreement between the Republic of Kazakhstan and the Republic of France, and the agreement between the Republic of Kazakhstan and the Kingdom of the Netherlands,” Vaisov said during a briefing.

The Ministry of Justice, Ministry of Ecology, and Ministry of Energy are jointly handling the case.

Kazakhstan has been steadily tightening its position in major energy projects, seeking a larger share of revenues from fields developed under production-sharing agreements signed in the 1990s. Disputes over Kashagan and Karachaganak reflect broader efforts to rebalance terms with foreign investors as production stabilizes and fiscal pressures grow. The outcome of these cases could reshape how Central Asia’s largest economy manages foreign participation in its energy sector.

A separate dispute concerning project costs, reportedly exceeding $100 billion, is being handled under the framework of the Production Sharing Agreement (PSA), in line with government policy, Vaisov said.

Kazakhstan maintains that under the current terms, participating oil companies receive up to 98% of revenue from oil production at Kashagan, leaving the state with comparatively limited income in the form of royalties. Astana’s claim related to this issue has been reported at approximately $160 billion.

“As far as I know, an interim decision has been made regarding Karachaganak. Further work is currently underway,” Vaisov said.

In January 2026, an international arbitration tribunal ruled in favor of Kazakhstan in its dispute with shareholders in the Karachaganak Oil and Gas Projects, Eni, Shell, Chevron, and Lukoil. Compensation for the shareholders’ unjustified reimbursement of expenses has yet to be determined, but experts estimate it at between $2 billion and $4 billion.

Vaisov also noted that Kazakhstan has been reducing the cost of arbitration proceedings involving foreign investors.

“The Ministry of Justice has managed to reduce spending on these matters each year. Since 2021, costs have been reduced by nearly threefold. At the same time, the Republic of Kazakhstan engages leading law firms for these proceedings, as contracting companies do the same,” he said.

27 Mar 2026

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Kazakhstan Expands Aviation Hub with Focus on U.S. and Long-Haul Flights

March 27, 2026
By Times of Central Asia

Kazakhstan is preparing for an audit by the U.S. Federal Aviation Administration (FAA) that would allow the country to launch direct flights to the United States. To achieve this, the government must demonstrate the reliability of its aviation regulatory system, the presence of an independent and effective oversight body, and transparent airline certification procedures.

The country is also planning to acquire modern long-haul aircraft and has begun construction of its first maintenance center to service them. The Times of Central Asia spoke with representatives of Kazakhstan’s aviation industry about the progress of these efforts, when direct flights to North America may begin, and what challenges remain.

As part of efforts to expand international routes and strengthen Kazakhstan’s position as an aviation hub between Europe and Asia, Bauyrzhan Umiraliyev, head of the Aviation Safety Department at the Civil Aviation Committee, said the national carrier Air Astana plans to purchase 15 Boeing 787 Dreamliner aircraft, with deliveries scheduled between 2026 and 2035.

“This is a strategically important decision that can significantly boost civil aviation, the economy, and the country’s international standing,” an aviation authority representative told The Times of Central Asia. “Long-haul aircraft will allow airlines to launch direct flights to destinations in North America, Europe, Asia, and Australia that were previously inaccessible or required layovers.”

The aircraft will also enhance Kazakhstan’s attractiveness as a transit hub and tourist destination, while enabling airlines to compete internationally through improved efficiency, pricing, and service quality.

The purchase of these aircraft, previously delayed twice since 2025 due to production backlogs at Boeing, is expected to open new opportunities for Kazakhstan’s aviation sector, particularly following the anticipated attainment of Category 1 (CAT-1) safety status, confirming compliance with international aviation standards.

CAT-1: The Path to the U.S.

In 2024, Kazakhstan’s aviation authorities and the FAA signed an agreement to conduct a technical assessment under the International Aviation Safety Assessment (IASA) program.

According to Aslan Satzhanov, Acting Executive Director of the Aviation Administration of Kazakhstan, the assessment identified areas requiring improvement in flight safety oversight.

“We are currently working on amendments to regulatory acts to implement modern safety procedures and standardize processes, with technical support from FAA experts,” Satzhanov said.

In parallel, experts from the U.S. Transportation Security Administration have conducted preliminary assessments of airport security under the Export Control and Border Security Program.

The first visit, in October 2021, resulted in a generally positive evaluation of Kazakhstan’s aviation security framework. A follow-up visit in August 2022 focused on screening procedures for passengers, baggage, and cargo at Astana Airport.

“The capital’s airport received a positive assessment, and the coordinated work of aviation security personnel was noted,” Satzhanov said.

According to preliminary information, the full IASA audit may take place after long-haul aircraft enter service and relevant infrastructure is fully prepared; though, it should be noted that Kazakhstan does not control the timing of the IASA audit.

Industry Awaits New Aircraft

Preparations for launching new international routes, including previously announced flights to New York and Tokyo, are already underway. According to Satzhanov, flights to Tokyo may begin in the second half of 2026, while New York routes are expected no earlier than early 2027.

These timelines depend directly on the delivery and operational readiness of new aircraft.

Kazakhstan’s airlines are also planning broader route expansion. SCAT Airlines aims to launch flights to destinations including Tel Aviv, Shanghai, Guangzhou, Larnaca, Dalaman, and Salalah. Meanwhile, the Air Astana Group is considering routes to Tokyo, Samarkand, Xi’an, Urumqi, and Riyadh.

“At the same time, long-haul aircraft may also be deployed on existing routes to increase capacity and improve efficiency,” Satzhanov added.

Staffing Challenges and Foreign Pilots

Training personnel for such a large-scale expansion remains a critical challenge. Under agreements with Boeing, initial training for pilots and technical staff is provided by the manufacturer.

In the first phase, foreign instructors train local specialists, who then pass on their knowledge to other staff. This approach is intended to build domestic expertise over time.

Air Astana has already begun training engineers for the Boeing 787 at international centers, and plans to transition to in-house training programs. The airline is also developing partnerships with local aviation institutions.

However, industry representatives acknowledge that foreign pilots will be required in the short term due to a shortage of locally certified specialists qualified to operate the new aircraft.

MRO Development

In late February, SCAT Airlines, in partnership with Boeing, launched construction of a major Maintenance, Repair, and Overhaul (MRO) center in Shymkent.

According to aviation officials, the project represents a key milestone in developing Kazakhstan’s aviation infrastructure. The facility will provide a full cycle of aircraft maintenance services and reduce reliance on foreign providers.

The complex will cover more than 45,000 square meters, with additional apron space exceeding six hectares. It will include at least 15 specialized facilities, such as engine repair shops, avionics laboratories, and aircraft painting and interior modification units.

Construction is scheduled for completion in November 2027.

Initially, the center will service Boeing 737 aircraft, which make up the majority of SCAT’s fleet. Plans are in place to expand capabilities to wide-body aircraft, including the Boeing 777, by 2030.

The facility is also expected to attract foreign airlines, strengthening Kazakhstan’s role as a regional aviation hub.

Regional Competition

Kazakhstan’s major airports, including Astana, Almaty, Aktau, Atyrau, and Shymkent, already meet International Civil Aviation Organization standards and are capable of handling long-haul aircraft.

However, competition is intensifying. Uzbekistan has also secured agreements to acquire 22 Boeing aircraft for long-haul operations, positioning itself as a rival regional hub.

Outlook

Kazakhstan’s aviation ambitions reflect a broader strategy to position itself as a key transit hub between Asia and Europe. Achieving this will require sustained investment in infrastructure, workforce development, regulatory improvements, and international cooperation.

If successfully implemented, these measures could strengthen Kazakhstan’s regional position, drive economic growth, and enhance its global connectivity.

27 Mar 2026

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Large Families in Kazakhstan Are Cutting Back on Food

April 6, 2026
By Vagit Ismailov

A new study by analysts at Finprom.kz highlights a concerning trend: in Kazakhstan, food consumption declines as the number of children in a household increases, while the gap between low- and high-income families continues to widen.

Drawing on data from the National Statistics Bureau for the fourth quarter of last year, the analysts found a clear pattern: per capita food consumption decreases as family size grows.

In households with one child, per capita consumption of meat and meat products stands at 21.8 kg per quarter. In families with four children, this figure falls to 14.8 kg, roughly one-third lower.

A similar pattern is evident across other food categories. In larger families, fish consumption is 33.4% lower, dairy products 26.4% lower, fruit 26% lower, and confectionery 22.8% lower. In households with five or more children, the disparities are even more pronounced.

Year-on-year data show that the situation is deteriorating in families with four children, where consumption of staple foods continues to decline. Meat consumption fell by 3.2% (around 0.5 kg per person), fish by 5.6%, dairy products by 2%, and potatoes by 7.6%.

By contrast, average consumption across Kazakhstan has not declined. On the contrary, overall food intake has increased slightly, suggesting that the negative trend is concentrated among larger, lower-income households.

The disparity is particularly stark when comparing the wealthiest 10% of households with the poorest 10%.

In the fourth quarter of last year, higher-income households increased consumption across most categories: meat by 3.8%, dairy products by 1.8%, eggs by 6%, and vegetables by 3.4%. Consumption of higher-cost items also rose, including fish and seafood (up 8%), oils and fats (up 10.8%), and confectionery (up 11.9%).

In contrast, low-income households reduced consumption in several categories during the fourth quarter of 2025: fish and seafood fell by 11.9%, vegetable oils by 11.3%, and bread and cereals by 4.3%. Modest increases in some items, such as dairy products and eggs, did not offset the overall decline.

Meat consumption illustrates the disparity most clearly. In higher-income households, per capita consumption rose from just over 25 kg to around 30 kg per quarter. In low-income households, it remains at approximately 10 kg.

For comparison, the recommended daily intake for adults is about 150 grams, or roughly 18 kg per quarter. This suggests that lower-income groups consume significantly less than recommended levels.

Overall, the gap between affluent and low-income households is substantial: nearly threefold for meat consumption, 2.4 times for dairy products, and 18.8% for bread and cereals.

27 Mar 2026

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EAEU Trade Frictions Deepen Despite Shymkent Integration Push

March 31, 2026
By Stephen M. Bland

The Eurasian Economic Union (EAEU) met in Shymkent on March 26-27 with a long agenda and a familiar promise: deeper integration, smoother trade, and a more modern common market. Kazakhstan, which holds the bloc’s 2026 chairmanship, used the meeting to push artificial intelligence, digital logistics, industrial cooperation, and the removal of internal barriers. Twelve documents were signed, covering areas including industrial cooperation, transport, and digital integration.

“Kazakhstan aims to become a fully-fledged digital country. We have built a modern ecosystem, including Astana Hub and the Alem.ai AI center, and are ready to share experience with EAEU partners on digital regulation and economic transformation,” Kazakh Prime Minister Olzhas Bektenov stated.

That sounds ambitious, but it also highlights the bloc’s central weakness. The EAEU has no shortage of plans; it has a shortage of trust between its members, and that matters more. The dynamics extend across the bloc, but are most visible in Kazakhstan and Kyrgyzstan.

The EAEU was built to ensure the free movement of goods, services, capital, and labor across Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. But the reality keeps drifting away from the treaty. Kazakhstan’s chairmanship agenda calls for a barrier-free internal market, yet the bloc is entering a new phase of tighter controls, retaliatory measures, and disputes over who really benefits.

Shymkent made that contradiction impossible to miss. Prime Minister Olzhas Bektenov promoted an AI-based system to coordinate cargo flows across the union and speed up transit. He also backed the full electronic handling of veterinary and phytosanitary checks, all of which are practical ideas. Central Asia needs faster, cheaper, and more predictable logistics, but digital tools do not solve a political problem. A system becomes more efficient only if its members want it to be open. When they want leverage instead, technology can only make the controls smarter.

Image: primeminister.kz

Kazakhstan’s priorities already show where the friction lies. President Kassym-Jomart Tokayev opened his chairmanship by calling for digital transformation, better transport links, and the elimination of internal trade barriers. He also pushed a stronger external profile for the EAEU, with wider links across Asia, the Arab world, and the Global South. That is a serious agenda for a bloc trying to present itself as a Eurasian logistics hub. That push for external expansion comes at a time when internal frictions are becoming harder to manage. It sits uneasily beside everyday trade practice inside the union, where growing trade disputes have become part of the EAEU’s normal life, not an exception to it.

The clearest recent example is Russia’s SPOT import-control system, which takes effect for road shipments from EAEU countries on April 1. Importers must submit shipment information two days before trucks reach the border and receive a QR code. Moscow has presented the change as a tax-compliance and anti-fraud measure, with additional financial guarantees expected in later phases of its implementation. In practice, it adds cost, time, and uncertainty before goods even reach the border, the opposite of what a customs union is supposed to do. New Russian trade controls are technical on paper, but they change how power works inside the bloc.

The controls already fit into a wider pattern. Border checks and documentation controls have tightened on the Kazakhstan-Russia frontier, and scrutiny of product labeling and paperwork has grown stricter. Businesses now face a system in which “free movement” exists in law, but not in practice. That gap is politically corrosive because it hits the smaller members hardest. Russia can absorb delays and redesign procedures. Kazakhstan also faces rising costs from disruptions, while smaller economies such as Kyrgyzstan feel them more immediately.

Kyrgyzstan has been blunt about that pressure. Earlier this month, Bishkek asked the Eurasian Economic Commission to remove import duties on a group of socially important goods, including flour, vegetable oil, fruits and vegetables, and cocoa powder. The logic was simple: global inflation is still feeding into domestic prices, and smaller members of the bloc need more flexible trade tools than their larger partners. That request made economic sense for Kyrgyzstan, but it also showed how uneven the union remains. When a member needs emergency tariff relief on basic goods to manage price pressure, the common market isn’t functioning on equal terms. Kyrgyzstan’s push for lower import duties came just a week before the Shymkent meeting.

The same imbalance appears in labor. One of the EAEU’s strongest selling points has always been access to the Russian labor market, especially for Kyrgyzstan. That benefit should be real, giving migrants easier legal access to jobs, simpler registration, and better tax regimes. But labor mobility has never been as stable as the bloc’s rhetoric suggests. In January, Kyrgyzstan took Russia to the EAEU court over compulsory medical insurance for migrants’ family members. In March, the court clarified that member states do not have to issue that coverage automatically. The case exposed a basic truth: labor access inside the EAEU is still vulnerable to national limits when politics hardens. Kyrgyzstan’s experience inside the union captures that well.

Kazakhstan has its own reasons to push back more openly. On March 10, Industry and Construction Minister Yersayin Nagaspayev said Kazakhstan would mirror Russia’s higher recycling fee on imported cars as part of efforts to support the domestic industry. That is not the language of seamless integration; it is the language of reciprocal pressure. Once that logic takes hold, the EAEU stops looking like a common market and starts looking like a managed bargaining arena.

None of this means the EAEU is collapsing. Its economic weight is still large, and its members continue to find value in it. Mutual trade in goods has roughly doubled since 2015, reaching close to $100 billion in 2024, according to the Eurasian Economic Commission. In 2024 alone, mutual trade in goods rose by around 9%. The Eurasian Economic Commission says most settlements now take place in national currencies, accounting for over 90% of transactions inside the union. Those are not minor gains. They explain why no member is walking away.

But Shymkent showed where the EAEU stands in 2026. It is good at producing strategies, roadmaps, and digital concepts, but much weaker at guaranteeing that member states will restrain themselves when their interests come first. Kazakhstan’s chairmanship has chosen the right themes: logistics, digitalization, and fewer barriers. The problem is that the union’s real barriers are now political. Until members stop using trade rules, border procedures, and regulatory measures as instruments of pressure, the EAEU will keep modernizing its systems without fixing its core defect. It can integrate its platforms faster than it integrates its interests.

The next intergovernmental meeting is set for Cholpon-Ata, Kyrgyzstan, in early August.