Page 261 – The Times Of Central Asia

26 May 2025

Trade Along Irtysh River Creates New Opportunities and Regional Challenges for Kazakhstan

May 26, 2025
By Times of Central Asia

The Irtysh is the longest transboundary tributary river in the world. It flows through the territories of Kazakhstan, Russia, and China, which gives it important strategic significance as a connecting link in maintaining its ecological balance, as well as in its potential use for international transit logistics. Together with the Ob River, the Irtysh connects the transport corridor of the New Silk Road with the Northern Sea Route, thereby integrating Eurasian transport corridors into the global transport system.

Reserves of River Logistics

According to Kazakhstan’s Ministry of Transport, the waterway along the river could be integrated into a large-scale multimodal logistics project. Currently, navigation on the Irtysh River within Kazakhstan runs for just over 1,600km — from Lake Zaysan to the border point of Klin with Russia. The navigation season lasts an average of 192 days, from April to November. During this period, river transport carried out a significant volume of shipments, ensuring connectivity between the regions of Eastern Kazakhstan, Pavlodar, and the border areas of Russia.

The riverbank infrastructure includes the Pavlodar River Port, which has a handling capacity of up to 650,000 tons per year and a network of 10 permanent berths – Tugyl, Oktyabrsky, Ust-Kamenogorsk, “Irtyshtrans,” “Gravelit,” and others – that can handle up to 10,000 tons of cargo daily. The river fleet used for cargo transportation consists of about 95 vessels, including barges, tugs, and auxiliary units. Ship repair functions are performed by three specialized enterprises in Ust-Kamenogorsk, Semey, and Pavlodar. However, most of the technical base requires major renovation: equipment and structures are heavily worn, and the fleet of vessels is mostly outdated.

The Irtysh basin remains a key cargo-generating region, accounting for more than 90% of the country’s river freight. In 2024, the total volume of river transport amounted to 1.5 million tons, including 296,000 tons of export cargo to Russia.

To systematically modernize river transport, in January 2025, a roadmap for the comprehensive development of shipping on the Irtysh River was approved. According to Deputy Transport Minister Maksat Kaliakparov, the main measures include the construction of a new river port in Tugyl, the modernization of existing berths, the purchase of modern transport vessels, the opening of the Urlitobe river crossing point on the border with Russia, and the creation of logistics and multimodal hubs. Plans also include the construction of hydraulic engineering structures, riverbed clearing, and dredging works, which will increase the waterway’s throughput capacity and create conditions for year-round navigation. All this will undoubtedly require significant infrastructure investments, the amount of which, according to the Ministry of Transport, will be specified based on the results of the design and estimate documentation and negotiations with private and foreign investors.

The implementation of these measures opens up opportunities for an even larger project – a multimodal transit corridor between Russia, Kazakhstan, and China, which will involve the movement of ships on the Omsk-Tugyl section with further delivery of cargo by road or rail to China.

One of the key elements of the project being developed by the ministry in Kazakhstan will be the construction of a river port with a transport and logistics center in the settlement of Tugyl, as well as the fourth railway border crossing point with the construction of a new railway line between Tugyl and Maikapchagai.

“If the project is implemented, cargo turnover is expected to grow to 3.5 million tons per year and export routes will be expanded with access to northern seaports,” says Kaliakparov.

Water transport amid climate challenges and growing demand for water

In addition to being environmentally friendly, water transport is characterized by low costs. It is 2-3 times cheaper than rail transport and can be five times cheaper than road transport. However, will the three countries be able to find common ground that will satisfy the needs of their economies when water transport is linked to issues of water resources in the transboundary Irtysh River?

The upper part of the Irtysh basin and its sources are located in China. Given this country’s plans for large-scale development of its western regions, which include the completion of the Black Irtysh-Karamay canal in the Xinjiang Uyghur Autonomous Region (XUAR) to transfer part of the water to the oil field near the town of Karamay, and increasing water withdrawals for agricultural needs due to expansion of cultivated areas, the country plans to actively build canals, reservoirs, dams, hydroelectric power plants, and other hydraulic structures.

Meanwhile, in Kazakhstan, the water resources of the Irtysh and its tributaries provide for the livelihoods of almost 30% of the country’s population. About 45% of the country’s agricultural production is produced within the basin, and the Irtysh cascade of hydroelectric power plants provides 10% of the country’s total electricity generation. For Russia, the water management activities of the countries in the upper reaches of the river – Kazakhstan and China – pose serious challenges for the socio-economic development of the city of Omsk and the surrounding region.

Climate change also contributes to the challenges in maintaining the water balance, which affects the water level of the Irtysh River. Besides the transit waters coming from China, the river is significantly fed by tributaries, snow reserves from the mountains of Eastern Kazakhstan, and precipitation. At the same time, signs of a reduction in the replenishment of groundwater and surface waters are observed. This reduces the predictability and stability of the river’s management and requires a flexible and scientifically sound water management strategy.

To minimize ecological impact, annual studies of the river are conducted, and all work is coordinated with state authorities in the fields of ecology, water resources, industrial safety, and local executive bodies. As part of scientific support, mathematical modeling has been carried out, designs of hydraulic structures have been tested, and environmentally safe dredging technologies have been developed. In addition to transport goals, these measures contribute to restoring the hydro-ecological balance.

Kazakhstan is negotiating with Chinese and Russian partners to restore full navigation on the river and jointly use the transit potential of the Irtysh.

“The Russian and Chinese sides have expressed preliminary interest in participating in the project. Today, together with the Omsk Region’s government, we are working on a pilot voyage along the Omsk-Tugyl route. Discussions are underway with China on the construction of a railway line and the opening of a new border crossing at Maikapchagai-Zimunai, which will provide a direct logistics link with western China,” said Kaliakparov.

The development of river navigation on the Irtysh River for Kazakhstan, in addition to the transit of goods through its territory, will allow a number of regions to cease to be dead ends and join the transit chain in cargo and passenger transportation. The project will give impetus to the development of small and medium-sized businesses, tourism, and other sectors of the economy.

Tourism along the river

The deputy minister notes that passenger excursion shipping on the Irtysh River is gaining significant popularity, especially during the tourist season.

“As you know, the East Kazakhstan region has a unique natural landscape, from mountain ranges to cascades of reservoirs. This opens up great opportunities for river trips, weekend tours, and tourism. The most popular routes are along the Ust-Kamenogorsk and Bukhtarma reservoirs and excursions on Lake Zaisan. A fleet of pleasure boats is being developed in the region, piers are being built, and the range of tourist services is expanding. Small and medium-sized businesses are actively investing in the development of water tourism. In the future, it may be possible to create river tourism clusters that are integrated into interregional routes and included in international tourism programs,” says Kaliakparov.

The development of waterways along the Irtysh River, as well as cross-border tourism and trade, will be facilitated by the construction of two airports in the region – in Zaisan and Katon-Karagai – and the completion of the reconstruction of the Kalbatao-Maikapshagai highway, which together will lay the foundation for the creation of a major tourist and logistics hub.

Overall, the three countries still have considerable work ahead to expand transport cooperation, develop effective water resource management measures that meet shared interests, foster economic integration, and address social and environmental issues while minimizing water deficit risks and ensuring water security.

The proposal to connect Russia and China with a new transport route, which could serve as an alternative to maritime, road, and rail routes, is planned to be discussed at the upcoming meeting of transport ministers of the Shanghai Cooperation Organization in China this July.

26 May 2025

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Kazakhstan to Launch New Flights to 15 Foreign Cities

May 26, 2025
By Dmitry Pokidaev

Kazakhstan will open 15 new international air routes this year, operated both by domestic carriers and by new foreign low-cost airlines entering the market. The announcement was made by Minister of Transport Marat Karabaev during a government session in the Senate, the upper house of Kazakhstan’s parliament.

“The new destinations include cities such as Munich, Budapest, Shanghai, Guangzhou, and others,” Karabaev stated. Most of these routes will be serviced by Kazakh airlines Air Astana and SCAT. Karabaev also highlighted the entry of five new low-cost carriers from India, Thailand, and South Korea, following the implementation of Kazakhstan’s open skies regime.

The additional eleven destinations are Cairo, Da Nang, Abu Dhabi, Hurghada, Busan, Osh, Mumbai, Kulja, Rome, Gazipaşa, and Samarkand. The incoming low-cost carriers include SpiceJet (India), Thai AirAsia X (Thailand), Eastar Jet and T’Way Air (South Korea), and Air Arabia Abu Dhabi (UAE).

The open skies regime eliminates all restrictions on the number of flights operated by foreign carriers on international routes not served by domestic airlines. It currently applies to 15 airports across Kazakhstan: Astana, Almaty, Shymkent, Aktau, Aktobe, Karaganda, Ust-Kamenogorsk, Pavlodar, Kokshetau, Taraz, Petropavlovsk, Semey, Turkestan, Kostanay, and Uralsk. Introduced in 2022, the policy has been extended through the end of 2027.

Karabaev noted that the increased presence of low-cost airlines is fostering greater competition within the domestic aviation market.

He also addressed the development plans of VietJet Kazakhstan, formerly known as Qazaq Air. The airline, now under the ownership of Vietnam’s SOVICO Group, aims to expand its operations beyond Vietnam by launching additional routes between Kazakhstan and neighboring Russia.

As previously reported by The Times of Central Asia, SOVICO Group is also considering the acquisition or management of an airport in Kazakhstan. Currently, VietJet Kazakhstan operates 14 domestic routes, four of which receive state subsidies, and four international destinations. The airline has reportedly been offered an option to manage an airport in the Kyzylorda region.

26 May 2025

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Central Asia’s Sovereignty in the Shadow of the War in Ukraine

September 16, 2025
By Times of Central Asia

The Ukraine war has fundamentally changed Central Asia’s strategic positioning, accelerating diversification away from Russian dependence. Kazakhstan and Uzbekistan are navigating between maintaining necessary ties with Moscow, while asserting sovereignty through expanded partnerships with China, Turkey, and the West.

The Sovereignty Imperative

When Russian forces crossed into Ukraine in February 2022, the violation of territorial integrity sent immediate shockwaves through Central Asia. For leaders whose nations had endured centuries of Russian and Soviet rule, Vladimir Putin’s denial of Ukrainian statehood carried threatening undertones. This concern proved well-founded; since 2014, Russian officials have increasingly questioned Central Asian independence, with Putin dismissing Kazakhstan as never having “any statehood,” and nationalist figures like Zakhar Prilepin suggesting the outright annexation of territories “labor migrants come from.”

This threat became tangible post-2022. Duma member Konstantin Zatulin warned that “with friends, we don’t raise territorial questions… With the rest — like with Ukraine — everything is possible,” while media personality Tigran Keosayan told Kazakhstan to “look at Ukraine carefully.” Such rhetoric has deepened Central Asia’s resolve to defend its sovereignty, even as economic and security constraints limit dramatic policy shifts.

Measured Defiance

Despite expectations in some quarters that Kazakhstan would align with Moscow following the Russian-led CSTO intervention during the January 2022 unrest, President Kassym-Jomart Tokayev defied such predictions. Sitting beside Putin in June 2022, Tokayev refused to recognize the “quasi-state territories” of Donetsk and Luhansk, drawing fierce Russian criticism. This principled neutrality, supporting neither Russia’s war nor “blindly follow[ing]” Western sanctions, has largely succeeded in keeping Kazakhstan shielded from the ire of Moscow.

Uzbekistan’s President Shavkat Mirziyoyev adopted a similar positioning, with then Foreign Minister Abdulaziz Kamilov declaring Uzbekistan’s recognition of Ukrainian territorial integrity. Though Kamilov was subsequently reassigned amid reports of Russian pressure, Tashkent has maintained its “balanced and neutral position,” refusing to endorse any territorial changes achieved through force.

Public Opinion is Divided but Shifting

The war has polarized Central Asian societies along generational and ethnic lines. In Kazakhstan, surveys show roughly 27-32% of respondents still accept the Kremlin justifications for its invasion of Ukraine, while 24-28% view Russia as the aggressor. Critically, only 15% explicitly support Russia versus 20% backing Ukraine, with the majority remaining neutral. More telling is the growing anxiety about Russia’s intentions: 26% of Kazakhstanis now consider a Russian attack on their country a possibility.

In Uzbekistan, state media control limits public polarization, but the historical memory of Russian colonization has reinforced the appreciation for independence. Prilepin’s 2023 annexation comments sparked widespread patriotic indignation, while the government’s firm rebuttal drew popular praise.

Strategic Diversification Accelerates

The war has catalyzed Central Asia’s pivot toward multiple partnerships, exploiting Russia’s distraction and resource constraints.

China is already the region’s largest economic partner. China has deepened its influence through the first China-Central Asia summit in 2023 and Xi Jinping’s pledge that Beijing “categorically opposes” interference in Kazakhstan’s internal affairs. Chinese investment in alternative corridors bypassing Russia has accelerated, while modest military cooperation provides security alternatives to Russian guarantees.

Ankara has also leveraged its shared heritage through the Organization of Turkic States, positioning itself as a cultural and security alternative. Turkish Bayraktar drones sold to Uzbekistan and Kyrgyzstan demonstrate growing defense ties, while Turkey’s mediation of the 2022 Kyrgyz-Tajik border conflict showcased its emerging role as a regional problem-solver.

Institutional Erosion

Russian-led structures also face credibility challenges. The CSTO’s failure to respond to Armenia’s appeals and its ineffectiveness during the Kyrgyz-Tajik clashes has prompted member states to seek supplementary security arrangements. Kyrgyzstan canceled a scheduled CSTO exercise in 2022, while Kazakhstan continues NATO Partnership exercises despite Moscow’s objections.

The Eurasian Economic Union similarly faces strain as members assert their economic sovereignty. Kazakhstan’s refusal of joint currency proposals and its compliance with Western sanctions monitoring demonstrate the limits to integration when national interests diverge from Moscow’s preferences.

Three Scenarios for Regional Futures

Victory for Ukraine would likely accelerate this Central Asian strategic distancing, legitimizing de-russification efforts and deeper Western/Turkish cooperation. However, economic dependencies and ethnic Russian populations would moderate the pace of change, preventing any dramatic realignment.

A negotiated Stalemate is the most probable outcome and one that would reinforce current multi-vector approaches. Central Asian states would continue diversifying partnerships while avoiding provocative moves, evolving toward strategic ambiguity rather than clear alignment.

A Russian consolidation, meanwhile, would pose the biggest challenge, potentially triggering authoritarian strengthening as leaders prepare for renewed imperial pressure. However, the war has already demonstrated Russia’s limitations, reducing Moscow’s capacity for effective coercion.

Identity and Decolonization

The conflict has accelerated “decolonizing” narratives across Central Asia. Kazakhstan has intensified efforts to counter Russian historical revisionism, with new textbooks explicitly debunking Putin’s claims about Kazakh statehood. Street renaming campaigns and monument removals, once sporadic, have also gained broader support. Similar trends have appeared in Uzbekistan and Kyrgyzstan, where the promotion of native languages and Latin scripts signals cultural independence.

Critically, governments have managed ethnic tensions carefully. Kazakhstan’s handling of Russian draft evaders, welcoming them for economic benefits while monitoring for extremist activity, demonstrates sophisticated crisis management that gives Moscow no pretext for “protection” interventions.

Constrained Transformation

More than three years into the latest installment of the Ukraine war, Central Asia has achieved a remarkable strategic realignment without triggering any Russian retaliation. The region’s leaders have successfully balanced assertions of sovereignty with pragmatic engagement, exploiting great power competition for economic and security benefits.

This represents the most significant shift in Central Asian geopolitics since the Soviet collapse, a shift toward greater autonomy within existing constraints. The war has weakened Russian dominance without eliminating it entirely, creating space for multi-polar partnerships that enhance regional sovereignty.

For policymakers in Washington, Brussels, and Beijing, Central Asia’s careful balancing act offers both opportunities and reasons for caution as the region welcomes diversified partnerships. Success requires an understanding that Central Asian sovereignty, hard-won and carefully guarded, is non-negotiable, regardless of which great power comes calling.

25 May 2025

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Meloni Will Attend Italy-Central Asia Summit in Kazakhstan This Week

May 25, 2025
By Times of Central Asia

Italian Prime Minister Giorgia Meloni, who postponed a trip to Central Asia in April because of the death of Pope Francis, has rescheduled her visit to the region for this coming Wednesday to Friday.

Meloni will travel to Uzbekistan on Wednesday and will attend a Central Asia-Italy summit during a visit to Kazakhstan on Thursday and Friday, according to her office.

The leaders of Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan are expected to join Meloni at the summit, which is aimed at strengthening economic collaboration between Italy and Central Asia.

23 May 2025

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$15 Billion in Crypto Withdrawn from Kazakhstan Amid Calls for Tighter Controls

May 23, 2025
By Vagit Ismailov

Approximately $15 billion worth of cryptocurrency has been withdrawn from Kazakhstan, a figure disclosed by Berik Sholpankulov, Deputy Chairman of the National Bank. The exodus highlights systemic issues in the country’s digital finance regulations.

Billions in the “Gray Zone”

According to Sholpankulov, the primary driver of this significant capital outflow has been the absence of robust regulatory frameworks governing digital finance.

“Today, the volume of crypto assets withdrawn from the country amounts to $15 billion. The fact is that there was insufficient administrative and legal regulation in place to allow citizens to invest safely,” he stated during a briefing.

In response, the National Bank plans to introduce sweeping changes, including administrative and criminal penalties for the illegal circulation of cryptocurrencies and their unauthorized transfer abroad. Sholpankulov also indicated that the authorities may soon begin naming individuals involved in illicit transactions.

“Perhaps we will also hold a briefing and announce by name who spent what in the ‘gray’ zone. But [there] will already be administrative and criminal prosecution,” he stated.

Transparency and Licensing: Key Reforms

Legislative amendments are currently under development to legitimize and open Kazakhstan’s digital asset market. The initial step will involve licensing all market participants, such as cryptocurrency exchanges and digital service providers, through the Astana International Financial Center (AIFC).

Licensed entities operating through the AIFC will enable residents to legally buy and sell digital assets. All transactions will be monitored and transparent, giving the state tools to prevent illegal financial flows.

A dedicated platform is also being launched under the National Bank to test emerging digital technologies and services before a broader rollout.

Strategic Shift Toward a Digital Economy

These reforms extend to Kazakhstan’s cryptocurrency mining sector. Large-scale operators will be permitted to build independent power plants to reduce their reliance on the national power grid, thus improving operational stability and economic feasibility.

Deputy Minister of Digital Development Kanysh Tuleushin emphasized that establishing a legal market for digital assets marks a pivotal phase in the country’s economic transformation. The relevant authorities aim to implement a fully regulated and transparent cryptocurrency market by the end of 2025.

Kazakhstan’s competitive advantages, including affordable electricity, vast space, and a supportive legal infrastructure, position it well to attract investment and build a robust digital ecosystem. If fully realized, the reform package could elevate Kazakhstan to a leading position in the region for legal cryptocurrency operations, stimulating job creation, and curbing shadow capital outflows.

Previously, The Times of Central Asia reported that MP Olzhas Kuspekov had proposed strengthening state controls over cryptocurrency circulation, including blocking access to unlicensed exchange platforms.

23 May 2025

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Kyrgyz Farmers in Naryn Region Receive Ecotourism Training

May 23, 2025
By Anton Chipegin

Farmers in Kyrgyzstan’s Naryn region are receiving specialized training to help them tap into the growing ecotourism market. Organized by the Kyrgyz Department of Tourism, the courses aim to equip rural communities with the skills and tools necessary to turn their agricultural operations into attractive destinations for eco-conscious travelers.

During the sessions, local farmers were introduced to tourism opportunities specific to their region. They also learned how to register and promote their services on major digital platforms such as Booking.com, TripAdvisor, Google Maps, and 2GIS.

A key focus of the training was on storytelling and digital marketing. Participants were taught how to showcase the uniqueness of their farms through reviews, videos, and visual content, tools seen as vital for attracting visitors in the digital age.

Ecotourism, and agritourism in particular, has seen a notable rise in popularity among international visitors, especially from Europe. Kyrgyzstan’s rural areas attract travelers seeking an authentic glimpse into traditional life and rich local culture.

The Kyrgyz Association of Tour Operators (KATO) notes that rural tourism is expanding steadily. In a recent report, the association highlighted the importance of proactive promotion. “The main thing is to position your business as a tourist attraction and actively promote it, attracting potential partners and customers. Income will depend on effort and imagination, because tourism is about selling new experiences and positive emotions,” KATO stated.

With tourism continuing to diversify in Kyrgyzstan, initiatives like this are seen as essential to empowering local communities and fostering sustainable economic development in remote regions like Naryn.