Page 202 – The Times Of Central Asia

09 Jul 2025

Home, International Affairs, Kyrgyzstan International Affairs, Features, Kyrgyzstan Features

Kyrgyzstan Advances New Cross-Border Transport Corridor with China via Bedel Pass

July 9, 2025
By Sergey Kwan

Kyrgyzstan is advancing plans to develop a new international transport corridor through the Bedel checkpoint on the Chinese border, aiming to boost cross-border trade and reduce reliance on high-altitude routes that are often impassable in winter.

Bedel Corridor Gains Momentum

The proposed corridor was a central focus during Deputy Chairman of the Cabinet of Ministers Bakyt Torobaev’s July 8 visit to Beijing. Torobaev met with Chinese corporate leaders to discuss the construction of the Barskoon-Uchturfan-Aksu highway, which would link Kyrgyzstan’s Issyk-Kul Region with China’s Aksu Prefecture in Xinjiang via the Bedel Pass.

The Bedel checkpoint, located in a remote mountainous region of southeastern Kyrgyzstan, was first opened under a simplified regime in September 2024. It lies roughly equidistant from Karakol and Aksu and currently operates with temporary infrastructure. According to the Kyrgyz government, the route’s full-scale development, including a modern highway and internationally compliant border facilities, is scheduled for completion by 2027.

Bedel will become Kyrgyzstan’s third automobile crossing point with China, alongside the Irkeshtam (Osh Region) and Torugart (Naryn Region) passes. These older routes are frequently disrupted by severe winter weather. The new corridor is expected to offer a more reliable and time-efficient alternative for cargo moving between Xinjiang and Kyrgyzstan, reducing dependence on the longer Kashgar-Torugart-Naryn-Bishkek route.

In Beijing, Torobaev and Chinese officials agreed to organize reciprocal business visits and establish joint working groups with representatives from both governments to coordinate the project.

The corridor is expected to strengthen Kyrgyzstan’s role as a regional transit hub, facilitating the re-export of Chinese goods to third countries. Bilateral trade between Kyrgyzstan and China reached $23 billion in 2024, an eightfold increase in recent years.

Progress on China-Kyrgyzstan-Uzbekistan Railway

During his Beijing visit, Torobaev also attended the 12th World Congress on High-Speed Rail, where he emphasized the strategic importance of the China-Kyrgyzstan-Uzbekistan (CKU) railway project.

The 523-kilometer line includes 304 kilometers running through Kyrgyz territory. Construction officially began on December 27, 2024, in Jalal-Abad. Once complete, the railway will link China’s Kashgar with the Kyrgyz cities, Torugart, Makmal, and Jalal-Abad, before continuing to Andijan in Uzbekistan. The project is designed to handle up to 15 million tons of cargo annually and carries an estimated investment of $4.7 billion.

Torobaev noted that the Makmal transshipment station will serve as the core logistics hub on the Kyrgyz side, featuring customs infrastructure, storage facilities, and multimodal services to ensure smooth cargo transit between China and Uzbekistan.

“The CKU railway is the shortest route between East and West,” he said. “It will connect China to European and Middle Eastern markets, forming a vital transport artery.”

Torobaev also announced a proposed rail extension between Aksu in China and Balykchy in Kyrgyzstan via the Bedel checkpoint, which would further enhance the regional transport network.

09 Jul 2025

Central Asia, International Affairs, Kyrgyzstan, Kyrgyzstan International Affairs

Kyrgyzstan Expands Labor Cooperation with Japan to Promote Safe Migration

August 26, 2025
By Sergey Kwan

Kyrgyzstan is strengthening labor migration ties with Japan as part of a broader strategy to diversify employment opportunities for its citizens abroad. The Ministry of Labor, Social Security and Migration is working to establish safe, legal, and skills-based pathways for Kyrgyz workers to access the Japanese labor market, in line with international labor standards and Japan’s workforce demands.

On July 2, officials from the Ministry’s Center for Employment of Citizens Abroad met in Bishkek with representatives from the Japan Association for Construction Human Resources (JAC), an organization that facilitates the recruitment of specified skilled workers in Japan’s construction sector.

The two sides discussed plans to create a specialized training center in Kyrgyzstan to prepare construction professionals according to Japanese industry standards. They also agreed to develop free Japanese language courses to enhance the employability of Kyrgyz job seekers.

In May, Kyrgyz Minister of Labor Ravshanbek Sabirov held talks with Hitoshi Kanamori, President of IM Japan, the largest Japanese organization overseeing the technical intern training program. The discussions focused on expanding structured employment pathways for Kyrgyz nationals in Japan.

The Kyrgyz side reiterated its commitment to training workers in fields currently in high demand in Japan, including IT, social services, hospitality, and skilled trades such as welding. Both parties stressed the importance of integrating vocational training with Japanese language instruction.

Minister Sabirov also emphasized the need to ensure labor protections for Kyrgyz citizens working abroad.

“It is important that Kyrgyz specialists not only secure employment but also have access to social insurance, legal protection, and consistent communication with Kyrgyz government bodies,” he said.

While Russia remains the primary destination for Kyrgyz labor migrants, recent years have seen growing interest in alternative destinations such as Turkey, South Korea, Japan, and parts of Europe.

09 Jul 2025

Justice, Kazakhstan Justice, Kazakhstan

Kazakhstan Proposes Criminal Penalties for Illegal Meat Sales

July 9, 2025
By Dmitry Pokidaev

Kazakhstan’s Minister of Agriculture, Aidarbek Saparov, has proposed introducing criminal liability for the sale of meat that bypasses veterinary and sanitary inspections.

Speaking at a government meeting, Saparov emphasized that Kazakhstan is undertaking large-scale efforts to digitize its livestock industry. Each farm animal now receives an individual identification number, with all veterinary procedures recorded in an electronic system. However, the minister warned that the system’s effectiveness depends on livestock owners maintaining accurate and transparent records.

“We must strengthen oversight of livestock registration and tighten accountability, up to criminal liability, for unscrupulous livestock suppliers and buyers of animal products without proper veterinary documentation,” Saparov stated.

Illegal Slaughterhouses a Threat to Public Health

Saparov cited recent cases of underground slaughterhouses as a significant public health concern. In December 2024, two unlicensed facilities were discovered in Astana, distributing unregulated meat across the country. Similar operations were uncovered in Semey and Shymkent in spring 2025.

Currently, criminal penalties in Kazakhstan apply only to cattle theft. Violations of veterinary and sanitary rules, unless they result in serious harm to human health, are punished administratively.

Since the beginning of 2025, 64 veterinary checkpoints have inspected 28,500 vehicles transporting meat. Violations were identified in 547 cases, resulting in administrative fines for the owners.

Livestock Industry Growth and Export Expansion

Saparov also reported robust growth in livestock production. From January to May 2025, output increased by 4.2% compared to the same period in 2024.

Meat production (in carcass weight) rose by 3%.
Cow’s milk production grew by 7.5%.

Almaty and Akmola regions led in meat output, while North Kazakhstan and Pavlodar regions led in milk production.

The livestock population also expanded:

Cattle: up 23.4 percent to 9.6 million head
Small ruminants: up 7.8 percent to 26.3 million head
Horses: up 12.2 percent to 5 million head
Camels: up 8.5 percent to 321,300 head
Poultry: up 2.2 percent to 47.7 million birds

“Current production volumes fully meet domestic demand for beef and mutton and allow us to expand exports to up to 50,000 tons annually,” Saparov said.

In 2024, Kazakhstan’s beef exports increased by 1.4 times to over 22,000 tons. Mutton exports grew 2.2 times, reaching 18,000 tons.

As previously reported by The Times of Central Asia, Turkey expressed interest in importing Kazakh meat, reportedly offering prices nearly double those proposed by China.

09 Jul 2025

Central Asia, Turkmenistan, Turkmenistan International Affairs, International Affairs, Turkmenistan Features

Turkish Court Orders Deportation of Two Turkmen Bloggers

July 9, 2025
By Sadokat Jalolova

A Turkish court in the city of Samsun has ordered the deportation of two Turkmen bloggers, Alisher Sakhadov and Abdullah Orusov, despite their applications for international protection. The Turkmenistan Helsinki Foundation for Human Rights reported that the court issued its ruling on June 13, 2025, and officially notified the men’s lawyer on June 27.

The court found both men to be residing in Turkey illegally and rejected their asylum claims. According to documents reviewed by their lawyer, the decisions in the two cases were nearly identical, with some sections reportedly copied verbatim.

Sakhadov applied for protection in April 2023 but was later issued a permanent entry ban under Code G-82, which Turkish authorities assign to individuals deemed threats to national security. The court concluded that he faced no credible risk of mistreatment if returned to Turkmenistan.

Orusov’s case followed a similar pattern. He applied for protection in July 2023 and received the same security designation. The court similarly ruled that his return would not expose him to torture or degrading treatment. Their legal team plans to appeal the ruling to Turkey’s Constitutional Court.

Requests for the release of both men from deportation centers were denied on June 25 and 26.

Alisher Sahatov is one of the most prominent Turkmen activists in Turkey. He became a well-known figure within the diaspora through his YouTube channel Erkin Garaýyş, where he highlighted the challenges faced by Turkmen migrants. Abdullah Orusov was also active on social media, where he regularly criticized the Turkmen authorities. His posts often resonated widely among migrants and human rights advocates.

As previously reported by The Times of Central Asia, another Turkmen activist, Dushemov, completed a four-year prison sentence in June 2025 but was transferred to a pre-trial detention center instead of being released. New charges were filed against him following an alleged altercation with another inmate. Dushemov and human rights organizations claim the case was fabricated to extend his detention, part of what they describe as a broader campaign of repression against government critics.

09 Jul 2025

Home, Business & Economy, Kazakhstan, Kazakhstan Business & Economy, Features, Kazakhstan Featurees

Kazakhstan Sets Sights on Becoming Central Asia’s Blockchain Hub

July 24, 2025
By Aliya Haidar

Kazakhstan is accelerating its efforts to become a regional leader in blockchain and cryptocurrency. Among its latest initiatives is a proposal by the National Bank of Kazakhstan (NBK) to establish a state crypto reserve.

National Strategy and Regulatory Evolution

The NBK recently endorsed the idea of forming a national reserve of crypto assets. This was confirmed in an official response from NBK Chairman Timur Suleimenov to a parliamentary inquiry. The proposal includes creating the reserve through a subsidiary of the NBK focused on alternative investments. Mirroring practices in countries such as the United States, the reserve could be composed of confiscated crypto assets and cryptocurrencies mined with state involvement. Legislative amendments to support this move are expected.

In January, President Kassym-Jomart Tokayev underscored the urgency of developing Kazakhstan’s crypto infrastructure, citing a global shift toward digital assets. Tokayev emphasized the need for a comprehensive national strategy to meet emerging challenges.

Currently, legal cryptocurrency transactions in Kazakhstan can only occur via exchanges operating under the Astana International Financial Center (AIFC). Registered participants include major platforms such as Binance and Bybit.

Expanding Infrastructure and Innovation

The government is also considering the creation of crypto banks, which would regulate the digital asset market, facilitate storage and transactions, and boost the financial ecosystem. These institutions are seen as critical to fostering IT sector growth and blockchain compliance jobs.

There are also plans to establish a licensed national cryptocurrency exchange that would operate nationwide beyond the AIFC.

In May, Kazakhstan announced the launch of a special CryptoCity zone to pilot cryptocurrency-based payments for goods and services. The following month, five banks, Halyk Bank, Forte, Freedom, RBK, and Altyn, joined a NBK pilot program to introduce crypto cards. These cards, linked to wallets on AIFC-registered exchanges, allow for the real-time conversion of crypto into tenge for payments and cash withdrawals, including at physical retail terminals.

Mining: Prospects and Pressure

Kazakhstan has had a complex relationship with cryptocurrency mining. Between mid-2021 and early 2022, the country ranked third globally in Bitcoin mining, driven by low energy costs and an influx of miners from China. At its peak in January 2022, Kazakhstan accounted for 13.22% of global mining power.

However, the surge in mining led to severe energy shortages. While enthusiasm for mining has returned, President Tokayev called in March 2025 for renewed investment in digital mining infrastructure.

First Deputy Minister of Digital Development Kanysh Tuleushin has championed state-regulated mining as a potential revenue source and a catalyst for modernizing the energy grid. He pointed to models such as the U.S., where miners help balance grid loads, and to Kazakhstan’s “70/30” initiative, which allocates 30% of newly modernized thermal power plant capacity to miners and 70% to the national grid.

Tuleushin also emphasized the potential for repurposing associated petroleum gas to generate mining power, thereby reducing emissions and monetizing a previously wasted resource. He argued that legalizing crypto activity nationwide could transform Kazakhstan into Central Asia’s crypto leader, on par with emerging markets in Uzbekistan and Kyrgyzstan.

Energy Shortages and Long-Term Solutions

Despite its ambitions, Kazakhstan’s energy capacity remains a critical constraint. Analysts at energyprom.kz estimate a national electricity shortfall of 5.7 billion kWh in 2025. This follows a 2 billion kWh deficit in 2024, when production totaled 117.9 billion kWh against a demand of 119.9 billion kWh.

Projections indicate a surplus may not emerge until 2027, with significant new capacity planned under the Ministry of Energy’s development roadmap through 2035, including over 26 GW of additional generation.

A key component of this plan is nuclear energy. Rosatom has been selected to build Kazakhstan’s first nuclear power plant by 2035-2036, with a second plant to follow under China’s CNNC. Until then, the grid remains vulnerable.

The Supreme Audit Chamber, meanwhile, has warned that unregulated mining continues to burden the grid. In 2024, miners consumed 901 million kWh, worth 13 billion tenge, without oversight, exacerbating the energy crisis, according to former Prime Minister Alikhan Smailov.

Tariff hikes under the “Tariff in Exchange for Investment” program have further strained households and fueled inflation. The country’s aging infrastructure, 76% of CHP plants are over 50 years old, is also a pressing concern.

Regional Competition

Kazakhstan faces stiff competition in the region. Uzbekistan has prioritized blockchain development, issuing 14 licenses between 2022 and 2024. Its UZnEX exchange has surpassed $1 billion in trading volume and is expanding into NFTs and digital art.

Kyrgyzstan has also enacted comprehensive legislation governing digital assets, requiring licensing for exchanges and mining companies. By 2024, it had 75 registered exchange operators and seven crypto exchanges, with transaction volumes reaching $4.2 billion.

To compete, Kazakhstan must liberalize its regulatory environment and establish a national digital strategy capable of addressing infrastructure challenges and regional competition.

09 Jul 2025

Business & Economy, Kyrgyzstan, Kyrgyzstan Business & Economy

Russian Inflows Drive Kyrgyz Remittance Surge

July 9, 2025
By Anton Chipegin

Kyrgyzstan recorded a sharp increase in remittance inflows during the first five months of 2025, reaching USD 1.367 billion —a 16% rise compared to the same period in 2024, according to data from the National Bank of the Kyrgyz Republic (NBKR).

The increase was particularly notable in April and May, traditionally high-transfer months ahead of the summer season. In May alone, remittances totaled USD 299 million, up from USD 253 million in May 2024.

Russia remains the dominant source of remittances, accounting for 94% of total inflows between January and May. The NBKR reported USD 1.2 billion in transfers from Russia during this period, reflecting a year-on-year increase of USD 188 million.

This growth comes despite a significant drop in the officially registered number of Kyrgyz labor migrants in Russia from 650,000 in previous years to around 350,000 in 2025. Unofficial estimates, however, suggest the actual figure may exceed one million. The higher remittance volume suggests increased per-capita transfers or improved earnings among Kyrgyz migrants.

In 2023, remittances from Russia stood at USD 2.532 billion. Even as the migrant workforce declined sharply in 2024, total transfers from Russia rose by USD 34 million, indicating persistent reliance on income from abroad.

Other countries contributed relatively little to Kyrgyzstan’s remittance inflows. Transfers from the United States edged up to USD 27.6 million in the first five months of 2025, an increase of USD 600,000 from the previous year.

In contrast, remittances from South Korea and Turkey declined sharply. Transfers from South Korea fell from USD 28.2 million to just USD 1 million, while Turkey’s contribution dropped from USD 6.9 million to USD 4 million.

Remittances continue to play a central role in Kyrgyzstan’s economy, historically making up more than 30 percent of GDP. Yet the country’s ongoing reliance on Russia for these financial inflows highlights its exposure to external risks such as geopolitical tensions, currency fluctuations, and changes in foreign labor market policies.

Looking ahead, the NBKR expects the upward trend in remittances to persist through 2025. However, long-term sustainability may hinge on diversifying migration destinations and strengthening domestic employment opportunities.