Page 233 – The Times Of Central Asia

19 Jun 2025

Kazakhstan, Home, Life & Culture, Kazakhstan Life & Culture

Kazakhstan Launches 2025 Year of China Tourism

June 19, 2025
By Sergey Kwan

On June 16, Astana hosted the official launch of the Year of China Tourism in Kazakhstan. The opening ceremony was attended by Kazakh Minister of Tourism and Sports Yerbol Myrzabosynov and Chinese Minister of Culture and Tourism Sun Yeli, underscoring the growing cultural and economic ties between the two countries.

Minister Myrzabosynov emphasized that tourism has become a vital bridge in strengthening people-to-people connections between Kazakhstan and China. The 2025 initiative follows the success of the Year of Kazakhstan Tourism in China in 2024, declared by Presidents Kassym-Jomart Tokayev and Xi Jinping as part of ongoing bilateral cooperation.

A centerpiece of this year’s initiative is the implementation of the Welcome Chinese program, which aims to tailor Kazakhstan’s hospitality and tourism services to meet the needs of Chinese visitors. The program includes efforts to improve language accessibility, offer Chinese-style amenities in hotels, and develop guided tours designed specifically for Chinese tourists.

According to the Kazakh Ministry of Tourism and Sports, the Year of Kazakhstan Tourism in China yielded significant results. In 2024, Kazakhstan welcomed 655,000 tourists from China, a 78% increase compared to 367,000 in 2023. The surge in travel was further supported by the mutual visa-free regime introduced in November 2023. Under this agreement, citizens of both countries can travel visa-free for up to 30 days per visit, with a maximum of 90 days within a 180-day period. The visa exemption applies to tourism, medical visits, business travel, and transit.

Officials expect that the Year of China Tourism in Kazakhstan will not only boost inbound travel from China but also deepen economic, cultural, and diplomatic cooperation between the two nations.

19 Jun 2025

Home, Uzbekistan, Turkmenistan, Tajikistan Business Economy, Uzbekistan Features, Tajikistan, Turkmenistan Business & Economy, Local Politics, Kyrgyzstan, Uzbekistan Business & Economy, Tajikistan Features, Kazakhstan, Kazakhstan Business & Economy, Kyrgyzstan Business & Economy, Turkmenistan Features, Features, Kazakhstan Featurees, Kyrgyzstan Features

From Reform to Roadblocks: The Uneven Evolution of Motor Insurance in Central Asia

June 19, 2025
By Vagit Ismailov

Motor insurance markets across Central Asia exhibit contrasting levels of development, from Kazakhstan’s expanding, digitized sector to Kyrgyzstan and Turkmenistan, where the system remains largely ineffective. Beyond compensating for damages, motor insurance is increasingly viewed as a tool for strengthening financial markets, promoting road safety, and easing the fiscal burden during emergencies.

Kazakhstan

Kazakhstan leads the region in insurance market volume. According to the Agency for Regulation and Development of the Financial Market (ARDFM), compulsory third-party motor insurance (OSGPO) premiums totaled more than KZT 106 billion ($205 million) in 2023, an 18% increase from the previous year.

Since 2019, Kazakhstan has operated an electronic OSGPO registration system, streamlining policy purchases and reducing fraud. Integration with the Ministry of Internal Affairs databases now enables more effective monitoring of compliance.

In April 2025, the country introduced a revised bonus-malus system with 18 risk classes, ranging from M2 (highest risk, coefficient 3.5) to Class 13 (lowest risk, coefficient 0.5). New drivers are assigned Class A with a coefficient of 1.8. The updated system accounts for accident history, traffic violations, and the duration of accident-free driving.

Despite this progress, voluntary comprehensive insurance (CASCO) remains underutilized; fewer than 5% of car owners hold such policies. Barriers include high costs, limited public understanding, and the persistent mistrust of insurers. Nevertheless, demand for CASCO is growing amid rising accident rates and vehicle costs. Once considered a luxury for owners of new cars, CASCO is increasingly popular among middle-income drivers, particularly those buying vehicles on credit or lease.

According to Ranking.kz, CASCO premiums reached KZT 13.4 billion ($26 million) in January-February 2025, slightly below the same period in 2024 ($29 million) but still well above pre-pandemic levels. CASCO now covers a broad range of risks, including accidents, theft, vandalism, fire, and natural disasters. For many Kazakhstani drivers, comprehensive coverage is becoming a central part of their financial strategy rather than a discretionary purchase.

Kyrgyzstan

In Kyrgyzstan, however, the motor insurance system is largely dormant. Although a compulsory insurance law was passed in 2015, only 8-10% of the vehicle fleet is insured. The absence of a unified digital platform, weak interagency coordination, and low public confidence hinder progress.

The authorities intend to relaunch reforms in 2025, focusing on digital integration between the Ministry of Internal Affairs and the National Bank. Beginning July 1, 2025, fines will be imposed on uninsured drivers: 3,000 KGS (around $35) for individuals and 13,000 KGS (about $150) for foreign nationals and legal entities. The new penalties are expected to promote compliance and foster a stronger insurance culture.

Uzbekistan

Uzbekistan, in contrast, has made substantial strides since 2019. Restrictions on foreign insurers have been lifted, and the Insurance Market Development Agency has spearheaded a digital transformation of the sector. In 2023, motor insurance premiums surpassed 250 billion som, largely from OSGPO policies.

The government has expanded policy coverage and supports online issuance to increase accessibility and competition. As of September 1, 2024, all compulsory motor insurance policies will be digitized and issued through a centralized system. Reforms will introduce risk-adjusted pricing based on driver behavior, accident severity, and violations. The insurance payout ceiling has also been raised to 40 million som, aligning Uzbekistan’s approach more closely with that of Kazakhstan.

Tajikistan

Tajikistan’s compulsory motor insurance system, introduced in 2021, remains in its infancy. Coverage is still below 10%, hindered by low awareness, underdeveloped infrastructure, and weak regulatory oversight.

The National Bank of Tajikistan is working with international partners, including the IMF and IFC, to craft a roadmap aimed at expanding digital access and boosting financial inclusion through improved insurance services.

Turkmenistan

Turkmenistan presents the region’s most restrictive market. All insurance is provided through the state-owned Türkmenistanyn Döwlet Ätiýaçlandyryş Şereketi, with virtually no private or foreign sector participation.

Although compulsory motor insurance has been mandated since 2009, public data on market penetration is unavailable. External estimates suggest coverage is under 20%. Voluntary policies are rare, and low levels of digitization further inhibit development.

Overall challenges and prospects

Across the region, countries face a set of shared obstacles: low public trust, inadequate enforcement of compulsory coverage, insufficient digital infrastructure, and a limited insurance culture. Yet there are signs of positive momentum. Governments are investing in digital platforms, integrating insurance systems with internal affairs databases, and encouraging online and mobile policy access.

Experts anticipate that over the next three to five years, Central Asia will witness meaningful growth in motor insurance, driven by policy reform, technology adoption, and improving public awareness.

19 Jun 2025

Environment, Kazakhstan Environment, Kazakhstan

Extreme Heat Warps Roads Across Kazakhstan

June 19, 2025
By Dmitry Pokidaev

Kazakhstan is experiencing widespread road damage due to an intense heatwave, with asphalt and cement concrete surfaces warping in both southern and northeastern regions of the country. The national road operator KazAutoZhol has stated that such deformation is a normal response to extreme heat conditions.

Air temperatures have soared above 35°C across most regions, prompting meteorologists to advise residents to avoid going outdoors during peak daylight hours. The most affected areas are inter-city highways, where the heat has caused significant stress on infrastructure.

The first reports of road warping emerged from the Pavlodar Region in northeastern Kazakhstan. On June 13, local authorities conducted emergency repairs at kilometer 1,265 of the Astana-Shiderty-Pavlodar-Uspenka-Russian border highway. Concrete slabs had buckled following a sharp temperature increase to 33-35°C.

Notably, this highway is a toll road, and the damage drew criticism from motorists. Shortly thereafter, similar issues were reported in the south. On June 19, KazAutoZhol announced repairs on the Shymkent, Uzbekistan border highway, specifically at kilometer 763, another toll section. The pavement there had deformed due to air temperatures reaching 40-45°C.

On the same day, further damage was reported on the Astana-Pavlodar highway in central Kazakhstan, where several consecutive days of temperatures between 32-35°C contributed to the melting and lifting of concrete slabs.

“Cement concrete pavements are particularly sensitive to sudden temperature changes,” experts from KazAutoZhol explained. “In hot conditions, the slabs expand. If gaps between them are insufficient or joints are compromised, internal stress can cause the slabs to suddenly lift, a phenomenon commonly referred to as a ‘blow-up.’ This is typical in regions where daytime temperatures exceed 35°C, which includes much of southern and central Kazakhstan.”

KazAutoZhol also cited similar challenges in other countries, noting that in the United States, states like Minnesota, Wisconsin, and Illinois report comparable incidents nearly every summer.

The organization operates under the Ministry of Transport of Kazakhstan, which recently saw a leadership shake-up. In mid-May, President Kassym-Jomart Tokayev reprimanded then-Minister Marat Karabayev for multiple failings within the transport sector. Karabayev was dismissed in early June, and his deputy, Maksat Kaliakparov, was appointed acting minister.

As previously reported by The Times of Central Asia, construction began this month on the strategic Center-West highway corridor, part of the Trans-Caspian International Transport Route (TITR), a key freight link connecting China and Europe via Kazakhstan.

19 Jun 2025

Home, Business & Economy, Kyrgyzstan Business & Economy

Kumtor Launches Tire Retreading Program to Cut Costs and Waste

June 19, 2025
By Anton Chipegin

Kumtor, Kyrgyzstan’s largest gold mining operation, has initiated a tire retreading program for its fleet of large Caterpillar mining dump trucks. The announcement was made by Kubat Abdraimov, chairman of the board of the state-owned Kyrgyzaltyn company, which oversees the Kumtor enterprise.

The retreading work is being carried out at a facility in Tokmok. The first set of refurbished tires has already been installed on dump trucks and is undergoing operational testing at the mine. If successful, the program will expand, with the Tokmok plant expected to retread between 200 and 300 tires annually. “This will save more than $1.5 million per year. At the same time, we are solving an important environmental problem by reducing waste and reusing resources,” Abdraimov said during a site inspection of Kumtor’s production facilities.

New tires for Caterpillar dump trucks can cost up to $30,000 each. In the high-altitude conditions of the Kumtor mine, located at 3,500 to 4,500 meters above sea level, tire wear is especially rapid, making operations significantly more expensive. According to the company’s press service, the refurbished tires were delivered to the mine at the end of May. One vehicle fitted with the retreaded tires has already logged over 1,000 kilometers and more than 100 hours of work under full load. The condition of the tires is being monitored continuously.

In the early years of Kumtor’s development during the 1990s, the initial tire supply came from the Belarusian manufacturer BelAZ. However, the products proved unsuitable for the mine’s extreme conditions, leading to a switch to Canadian suppliers along with other imported components.

Abdraimov also highlighted the critical contribution of technical personnel to the reliability of mining operations. “The mine uses modern mining and auxiliary equipment. Work is carried out around the clock in challenging weather and at high altitudes. The reliability and qualifications of the repair crews are key to sustainable operation,” he said.

Industry experts suggest the tire retreading initiative could be a foundational step in creating a domestic industrial cluster focused on the repair and maintenance of mining equipment in Kyrgyzstan.

19 Jun 2025

healthcare, Home, Tajikistan Business Economy, Tajikistan, Tajikistan Features, Business & Economy

Tajikistan’s Pharmaceutical Sector Remains Heavily Dependent on Imports

June 19, 2025
By Vagit Ismailov

Despite possessing vast reserves of medicinal plants, Tajikistan’s pharmaceutical industry remains heavily reliant on imports. Experts are increasingly questioning why the sector has been reduced to a basic “buy-and-sell” model and what is hindering the use of the country’s natural resources.

Abundant Resources, Limited Output

Tajikistan is home to more than 3,500 species of medicinal plants, including licorice, mint, valerian, chamomile, motherwort, and even rare saffron. However, this natural wealth has not translated into pharmaceutical independence. In the past two years alone, Tajikistan has imported roughly $84 million worth of medicines.

Currently, 67 pharmaceutical companies are registered in the country, producing around 600 types of drugs. Still, imported pharmaceuticals dominate the market. According to industry observers, the sector has evolved into a retail-focused trade, rather than a hub for research-based production.

During the Soviet era, pharmaceuticals in Tajikistan were closely integrated with scientific institutions. Research institutes flourished, pharmacies compounded custom medications, and both training and quality control were rigorous. Following the collapse of the USSR, this infrastructure disintegrated. The responsible state committee was dissolved, and a previously regulated system was replaced by an unstructured market.

Today, training programs are often accelerated, pharmacists’ qualifications are inconsistent, and the emphasis has shifted from treatment to sales.

A Pharmacy That Heals

Amid this decline, one notable exception is found in the city of Isfara, where a phytotherapy department has been established at the local hospital. Spearheaded by pharmacist Abubakr Faiziev, the department operates out of a restored facility where locally gathered herbs are used to produce traditional infusions and decoctions. Faiziev personally collects about half of the ingredients.

“It is important to me that the pharmacy heals, not just sells,” he said.

According to Faiziev, approximately 80% of patients return for follow-up treatment, often bypassing conventional doctors due to the perceived effectiveness of herbal therapies, a sentiment echoed even among members of the local elite.

A Science in Decline

Faiziev laments the erosion of scientific ambition in the country.

“People now ask for business plans and guaranteed profits instead of pursuing knowledge. But science doesn’t work that way,” he said.

Research, he noted, has become sporadic and often relies on outdated data, with little interest from private companies in investing in innovation.

Young professionals, too, are increasingly opting for commercial routes. “They prefer to open pharmacies for fast income rather than engage in research,” he explained. “There are many pharmacists now. But we must transform quantity into quality. Without passion for the profession, one cannot become a skilled expert.”

The State’s Role and Untapped Potential

President Emomali Rahmon has repeatedly stressed the need to develop the domestic pharmaceutical industry and better utilize Tajikistan’s natural resources. Ongoing reforms include updates to medical university curricula, the opening of laboratories, and the training of technologists and quality control specialists. Yet, experts argue that without a comprehensive, systematic strategy and active engagement from the private sector, these measures are insufficient.

Faiziev advocates for the creation of a pharmaceutical technology park and the development of both the domestic and export markets. He has submitted a proposal to the Ministry of Health to hold training courses for regional professionals but has yet to receive a response.

“I am not claiming that herbal medicine is a cure-all,” Faiziev concluded. “But there is a vast sector where natural remedies are most effective. They are accessible, safe, and cost-efficient.”

19 Jun 2025

Home, Uzbekistan, Turkmenistan International Affairs, International Affairs, Kazakhstan International Affairs, Turkmenistan Features, Features, Uzbekistan International Affairs

Turkmenistan’s Gas Swap Deals Could Be Collateral Damage from Israeli-Iran Conflict

July 3, 2025
By Bruce Pannier

Turkmenistan has the fourth largest reserves of natural gas in the world, but the country has found it difficult to export substantial volumes. Lack of export pipelines are one of the problems and it seemed Turkmenistan had partially solved this dilemma by arranging gas swap deals.

Unfortunately for Turkmenistan, these deals involve Iran as the key country, and the Israeli-Iran conflict sheds new doubt on the ability of Iran to fulfill its part in the swap arrangements.

So Close

Turkmenistan signed a deal to supply 10 billion cubic meters (bcm) of gas annually to Iraq in late October 2024. It was the first major gas export deal Turkmenistan had signed in nearly two decades.

That last big agreement was signed with China in 2006. It involved building four gas pipelines from Turkmenistan to China to eventually carry a combined 85 bcm of gas, 65 bcm of which would be Turkmen gas. Since the pipelines cross through Uzbekistan and Kazakhstan, both of those countries are allotted 10 bcm each of the capacity for their gas exports.

The fourth branch that would have carried 30 bcm of Turkmen gas has not been built, leaving Turkmen gas exports to China averaging 35 bcm per year.

At the moment, China is the only major customer for Turkmen gas. The second largest buyer of Turkmen gas is Uzbekistan, which only purchases about 2 bcm.

Not even 20 years ago, Russia was purchasing more than 40 bcm of Turkmen gas, but by 2023 that had dwindled to 5.5 bcm, still leaving Russia as the second largest buyer of Turkmen gas. In July 2024, after negotiations over price broke down, the two parties chose not to renew that contract.

That made the agreement with Iraq all the more important for Turkmenistan. However, there are no pipelines connecting the two countries.

Yet So Far

The Turkmen-Iraqi agreement calls for Turkmenistan to ship 10 bcm of gas to Iran, with Iran then sending 10 bcm of its gas to Iraq. Iran needs gas for its northern regions that are not connected to the domestic pipeline network that sources gas from the fields of in the south of the country.

Turkmenistan has two pipelines to export gas to Iran. Both were built after independence in 1991, and could carry up to a combined 20 bcm. Since January 2017, when the Turkmen government made good on a threat to cut off Iran over unpaid bills for gas, almost no gas has been shipped through these pipelines.

The first task is to perform maintenance, repairs, and upgrades on these pipelines so that Turkmenistan can physically send 10 bcm of gas to Iran.

The Iranian pipeline to Iraq is functional. Iran was exporting gas to Iraq, but international sanctions on Iran hindered Iraq’s ability to pay for that gas.

Prior to the agreement with Iraq, Turkmenistan signed a contract in early July 2024 with Iranian officials for the transfer of gas.

It is unclear how far along Turkmenistan is in performing its pipeline maintenance in preparation for resuming gas exports to northern Iran, but work is likely now on hold due to the uncertainty surrounding Iran’s conflict with Israel.

The involvement of Iran in the Turkmen-Iraq gas swap arrangement had promised additional gains for Turkmenistan. According to the Turkmen-Iranian agreement of July 2024, “Iranian companies will construct a new 125-kilometer gas pipeline along with three gas pressure booster stations in Turkmenistan aimed at boosting annual shipments of gas to Iran to 40 bcm.”

That would not only double Turkmenistan’s potential export capacity to Iran but also double Turkmenistan’s current total gas exports.

Again, the contract is at risk due to the Israel-Iran conflict.

It was never mentioned which Iranian companies would be working in Turkmenistan, but it appears that Iran’s first priority once the fighting with Israel ends will be to repair damaged infrastructure inside the country. Iran’s ability to pay for 30 bcm of gas will also be a question, as Iranian state funds are directed toward the restoration of infrastructure.

At the very least, the Turkmen-Iraq gas swap seems headed for delays.

In the meantime, for about a decade, Turkmenistan has also had an on-again, off-again gas swap agreement with Azerbaijan via Iran. It is for a substantially smaller amount, only about 1 bcm, but the situation in Iran might shut down the deal with Azerbaijan too, at least temporarily.

Minus 70 in One Week

Setbacks to Turkmenistan’s plans to export gas were not confined to the situation with Iran.

Turkmen President Serdar Berdimuhamedov was in Kazakhstan’s capital, Astana on June 17 for the C5+1 summit with the other Central Asian presidents and Xi Jinping of China. Berdimuhamedov met separately with Xi, hoping for some sign that work on Line D of the pipeline network leading from Turkmenistan to China might start soon. According to the Chinese news agency Xinhua, Xi only spoke vaguely about boosting natural gas cooperation.

When Berdimuhamedov visited China in January 2023, a joint statement with Xi at least mentioned the need to “accelerate… construction of Line D of the Turkmenistan-China gas pipeline.” No construction has been done on Line D since that statement, and it seems no progress was reached during the meeting between Xi and Berdimuhamedov in Astana.

So, the news from Iran is especially crushing to Turkmenistan’s gas export aspirations. No additional 40 bcm to Iran, including the 10 bcm for Iraq, anytime soon, and no extra 30 bcm to China.