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06 Apr 2025

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Why Europe Is Betting Big on Kazakhstan’s Future

April 24, 2025
By Dr. Robert M. Cutler

On April 3, Kazakhstan’s President Kassym-Jomart Tokayev met with European Commission President Ursula von der Leyen in Samarkand, ahead of the Central Asia–European Union summit. Although the meeting was brief, it came at a key moment, bringing into focus a set of shared economic and technological priorities that both sides increasingly treat as strategic.

Tokayev made his position plain: Kazakhstan is looking to push forward in four core areas of cooperation with the EU: energy, industrial infrastructure, transport and logistics, and digital technology. Each of these lines up with the country’s broader goals for economic modernization. The two leaders also acknowledged recent steps toward a simplified EU visa regime for Kazakhstani nationals, which would ease movement for businesses and professionals in both directions.

The meeting itself fits into a growing pattern. It builds on the first five-country Central Asia–EU leaders’ summit held in Astana back in October 2022. That gathering marked a turning point, putting the EU’s regional engagement on firmer institutional footing. It went beyond symbolic gestures and aimed at unlocking concrete investment opportunities.

Since then, the EU has moved quickly to back up its commitments with financial and logistical support. Much of this has flowed through the Global Gateway initiative, a flagship program designed to channel European investment into infrastructure projects in developing and strategically situated economies. The European Bank for Reconstruction and Development (EBRD) has had a visible role in this process, running studies and financing projects across the transport, energy, and trade connectivity sectors.

One EBRD-backed report, published in 2023, offered a striking projection: around €18.5 billion would be needed to scale container transport between the EU and Central Asia by a factor of eight. The goal was to go from fewer than 100,000 TEUs per year to roughly 865,000 by 2040. In response, the EU and the EBRD convened an Investors’ Forum in early 2024, bringing in more than €10 billion in early-stage pledges. A second forum is now scheduled for 2025, with new focus areas, including mining, supply chains, and processing industries.

During the Samarkand discussion, von der Leyen underlined the strategic significance of the Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR). This project has been gaining traction in EU planning circles as an alternative to routes running through Russia or the Gulf. The corridor promises not only economic returns but greater resilience in east–west supply chains. Kazakhstan, by geography and by political posture, is positioned at the center of this shift. Its participation is not just beneficial but also structurally important.

The timing of the meeting was also notable. Just a day earlier, Kazakhstan’s Ministry of Industry and Construction had announced a major find: a substantial deposit of rare earth elements at the Kuirektykol site. State-supported geological teams working in that region reported an estimated one million tons of potential material. Preliminary surveys from two zones, Irgiz and Dos 2, showed mineral content exceeding 0.1%, with some samples reaching as high as 0.25%. This level is a strong signal for commercial viability and will likely draw the attention of investors and technology firms looking to diversify sourcing.

Von der Leyen welcomed the news, emphasizing that rare earths have become critical to Europe’s industrial and strategic planning. The EU has relied heavily on imports from China, especially for components used in renewable-energy technologies, defense, and digital devices. Shifting to a broader base of suppliers has become a matter of long-term stability.

Kazakhstan, in that context, offers more than geology. It also offers predictability. Unlike some other countries with natural resource wealth, it provides legal consistency and relative political continuity. Tokayev’s government has established itself as being receptive to international investment, building the kind of regulatory frameworks that give long-term investors some sense of assurance. The combination of resources plus reliability is a relatively rare one in today’s geopolitical environment.

The Kazakhstan-EU relationship is also grounded institutionally. The Enhanced Partnership and Cooperation Agreement (EPCA) provides a legal structure for everything from trade norms to environmental standards. Since the EPCA came into force in 2020, the EU has edged out China, Russia, and the U.S. to become Kazakhstan’s largest trading partner. Over the past two years, Kazakhstan has increased its integration into EU satellite and communications networks, supporting a range of applications from agricultural monitoring to climate data to communications security.

Looking ahead, momentum seems to be building. EU funding in Central Asia as a whole is expected to pass €20 billion by the end of 2025, including priorities for environmental standards, joint ventures, and local capacity-building. A post-summer Economic Forum is in the works, and the next Investors Forum — this time focused more on raw materials and supply chain development — is planned for the fall. In parallel, the C5+EU format will continue to evolve, with think tanks, regional experts, and business leaders feeding into its policy architecture.

The Tokayev–von der Leyen meeting reaffirmed the partnership’s direction. What remains is implementation across the issue-areas of infrastructure, technology, resources, and the legal frameworks that tie them together.

President Tokayev has consistently framed the EU as a long-term partner for Kazakhstan’s development. From the European side, Kazakhstan is increasingly seen as a stable anchor in a region where volatility is a persistent risk. The Samarkand meeting, though modest in scale, allowed the two sides an opportunity to articulate together their agreement that their partnership is continuing to consolidate itself in a constructive manner.

04 Apr 2025

Draft, Home, Tajikistan International Affairs, Uzbekistan, Turkmenistan, Turkmenistan International Affairs, Tajikistan, Uzbekistan Features, International Affairs, Kyrgyzstan International Affairs, Kyrgyzstan, Kazakhstan, Kazakhstan International Affairs, Features, Uzbekistan International Affairs

Mirziyoyev Champions a Flourishing Central Asia by Enhancing Collaboration With the European Union

April 6, 2025
By Arindam Banik

The global landscape is transforming, driven by geopolitical instability, economic uncertainties, and climate-related challenges. These dynamics are fostering innovative forms of international collaboration. A notable example of this shift is the remarkable fourfold increase in trade between Central Asia and the European Union over the past seven years, culminating in an impressive €54 billion. This surge highlights a growing interest among European businesses in the diverse markets of Central Asia, strategically situated at the intersection of crucial global trade routes. Against this backdrop, the Central Asia-EU summit was held over two days in Samarkand, the “Eternal City”, on April 3-4, 2025.

During his inaugural address on April 3, 2025, Uzbekistan’s President Shavkat Mirziyoyev articulated the summit’s significance, stating his view that this gathering represented a transformative moment that could redefine regional partnerships. Mirziyoyev reflected on the deep historical connections and shared interests driving the momentum toward closer ties with the EU. The choice of Samarkand — renowned for its rich historical legacy as a center of trade, science, and diplomacy — as the venue for this significant meeting was particularly poignant, as it symbolizes the intersection of cultures and ideas.

Mirziyoyev evoked the historical interactions between Amir Temur and European monarchs, underscoring Samarkand as a melting pot of diversity and intellectual exchange. He introduced the notion of the “Samarkand spirit,” which he described as a symbol of unity and interconnectedness that could serve as the foundation for a new chapter in international relations. The President emphasized the sweeping transformations occurring in Central Asia, reinforcing Uzbekistan’s dedication to nurturing good-neighborly relations built on mutual benefit.

Miriyoyev candidly acknowledged the region’s history of conflicts and disputes but expressed hope for a shift toward constructive dialogue and trust, pointing to the recent resolution of border disputes between Kyrgyzstan and Tajikistan as a concrete example of this positive trajectory. Furthermore, he elaborated on ongoing initiatives to establish border trade zones, joint investment funds, and transportation corridors that could enhance connectivity and economic collaboration. Mirziyoyev outlined several key priorities: fortifying regional security, advancing economic integration, and promoting environmental sustainability. He conveyed a sense of optimism, proclaiming, “We are facing a historic chance to make our region not only sustainable but also prosperous.”

The President discussed Uzbekistan’s comprehensive economic reforms to create a conducive business environment and liberalize the foreign exchange market. He expressed optimism that the Enhanced Partnership and Cooperation Agreement (EPCA) with the EU would significantly enhance trade and investment relations and proposed aligning the EU’s Global Gateway strategy with regional transport initiatives to support this. He also advocated for developing an Action Plan for the Trans-Caspian Transport Corridor. Additionally, he believes there is potential to establish Tashkent as a financial center similar to Hong Kong, as the initial conditions meet the necessary criteria.

On energy matters, Mirziyoyev positioned Central Asia as a dependable partner for Europe, highlighting the region’s potential to contribute to energy stability and decarbonization efforts. He cited the ambitious Green Strategic Corridor project and the prospect of a Central Asia-EU Clean Energy Partnership, detailing Uzbekistan’s plans to bolster renewable energy capacity while reducing greenhouse gas emissions.

In addressing urgent security challenges, he acknowledged shared threats such as terrorism and cybercrime, emphasizing the need for continued collaboration with the EU in these vital areas. Mirziyoyev also highlighted Uzbekistan’s pragmatic approach to engaging with Afghanistan, pointing out the progress in stabilizing the region. He advocated for Afghanistan’s integration into global economic processes to promote regional stability.

In the context of climate change, Mirziyoyev emphasized Central Asia’s vulnerability and called for cooperative action with the EU. He proposed a Green Partnership that centers on renewable energy, ecosystem restoration, and water conservation, mentioning initiatives like the Green Belt of Central Asia and plans for establishing a Green University.

In his overall assessment, Mirziyoyev expressed optimistic expectations for the summit, looking forward to signing the Samarkand Declaration, which he believes will solidify the strategic partnership. He emphasized the significance of enhancing political dialogue and creating innovative mechanisms for collaboration. In his closing remarks to European leaders, the President conveyed Central Asia’s enthusiasm for dialogue and increased engagement. He expressed gratitude for the EU’s support and reaffirmed the aspiration to transform Central Asia into a cohesive and dynamic region. Concluding on an optimistic note, Mirziyoyev declared that the summit serves as a gateway to new opportunities for cooperation.

04 Apr 2025

Justice, Uzbekistan, Uzbekistan Justice

Belgium Transfers $108 Million in Seized Assets to State Treasury Following Uzbek Corruption Probe

April 4, 2025
By Sadokat Jalolova

On March 28, 2025, the Brussels Public Prosecutor instructed Belgium’s Central Office for Seizure and Confiscation (COSC) to transfer $108 million in confiscated assets to the Belgian state treasury. The funds, now officially the property of the Belgian government, were seized in connection with an international corruption investigation linked to Uzbekistan.

The case stems from a years-long probe into illicit payments and bribes tied to telecom contracts in Uzbekistan. The funds were allegedly laundered and routed through various jurisdictions before being frozen in Belgium at the request of Uzbek authorities. The investigation, based on international legal cooperation and the UN Convention Against Corruption, initially led to the freezing of approximately $200 million.

A Dutch-language court in Brussels later ruled that the full amount, including accrued interest, should be permanently confiscated. The court also ordered the funds to be split between Belgium and Uzbekistan, applying a restitution model similar to those used among European Union member states. As a result, another $108 million is expected to be transferred to Uzbekistan in the near future.

In 2022, Uzbekistan’s Deputy Minister of Justice Muzraf Ikramov publicly stated that assets worth $240 million, linked to a criminal group associated with Gulnara Karimova, had been located in Belgium. He noted that cooperation between Uzbek and Belgian law enforcement agencies had been established to facilitate their return.

When contacted by Kun.uz for comment, Uzbekistan’s Ministry of Justice said that details of the investigation remain classified. “Since the investigation process in Belgium is not over, and due to the confidentiality rules, it is not possible to disclose much information about these assets,” a ministry official said.

04 Apr 2025

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

Polpharma Group to Boost Pharmaceutical Production and Exports in Kazakhstan

April 4, 2025
By Sergey Kwan

Kazakhstan’s national investment promotion agency, Kazakh Invest, has signed a Memorandum of Cooperation with Polpharma Group, a leading pharmaceutical manufacturer in Central and Eastern Europe, the Caucasus, and Central Asia. The agreement marks the launch of a €55 million investment project in Kazakhstan by SANTO, a member of the Polpharma Group.

The memorandum was signed by Azamat Kozhanov, Deputy Chairman of Kazakh Invest’s Management Board, and Markus Sieger, CEO of Polpharma Group.

Over the next decade, the project is expected to create approximately 300 jobs and significantly increase domestic pharmaceutical production, particularly for medications targeting socially significant diseases such as cancer, diabetes, and cardiovascular conditions.

The initiative includes the introduction of new manufacturing lines, expanded R&D investment, and the development of training programs in line with international standards.

This strategic partnership supports Kazakhstan’s national goal of increasing local pharmaceutical production to 50% of domestic demand. It also aims to position the country as a regional hub for pharmaceutical manufacturing and exports.

“We are aware that President Kassym-Jomart Tokayev has set a clear objective to boost local pharmaceutical output to 50%, and we fully support this vision,” said Markus Sieger. “The COVID-19 pandemic revealed the vital importance of resilient, domestic supply chains. Our goal is not only to strengthen production in Kazakhstan but to transform the country into an export hub for large regional markets.”

SANTO currently holds six Good Manufacturing Practice (GMP) certificates and has successfully passed inspections by the European Union. The company is now anticipating certification under EU GMP standards, which would provide access to EU markets for both the company and Kazakhstan’s broader pharmaceutical sector.

Polpharma Group continues to expand its footprint in Central Asia. In 2024, 12% of the company’s global sales came from the region, a figure that is expected to grow further.

The development of a pharmaceutical hub in Kazakhstan will enhance the country’s position in both domestic and international markets. These new investments, along with the expected GMP EU certification, are set to strengthen Kazakhstan’s global pharmaceutical competitiveness, reduce reliance on imports, and improve national pharmaceutical security.

04 Apr 2025

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

U.S. Company John Deere Launches Agricultural Machinery Production in Kazakhstan

April 4, 2025
By Vagit Ismailov

American agricultural machinery giant John Deere has officially launched production in Kostanay, Kazakhstan, marking a milestone in the country’s strategy to localize industrial output and reduce reliance on imports.

The new manufacturing line is based at the Agromash plant’s localization center and reflects the Kazakh government’s broader policy to support domestic manufacturing and develop the machine-building sector.

A key driver behind this initiative was the government’s recent decision to end subsidies for imported tractors and combines, creating momentum for localized production. The agreement with John Deere, widely recognized as a global leader in agricultural equipment, emerged as a flagship example of this new direction.

By partnering with Agromash, Kazakhstan’s largest machinery manufacturer, the venture will produce self-propelled, trailed, and mounted equipment adapted to local agricultural conditions.

Local production is expected to help farmers modernize their equipment more affordably. Through a government-backed preferential leasing program with an annual rate of just 5%, supported by 120 billion tenge in allocated funds, over 3,200 farmers will be able to purchase new domestically produced machinery this year.

“Kazakhstan’s agricultural producers now have access to machinery on favorable terms. This not only simplifies modernization efforts but also boosts the development of the agricultural sector,” the government noted.

Agromash President Dinara Shukizhanova credited the country’s economic reforms for making the collaboration with John Deere possible. The initiative is expected to generate jobs, introduce advanced technologies, and prioritize the training of a new generation of engineers and technical specialists.

John Deere’s official representative in Kazakhstan, Eurasia Group, will handle sales, service, and implementation of digital agricultural solutions. Over the next five years, three modern service centers will be established across the country to support digitalization in agriculture. These hubs will offer technical support and training for agronomists, mechanics, engineers, and IT professionals, reinforcing the efficient use of modern equipment.

In addition to John Deere, the Agromash plant currently produces agricultural machinery under the ESSIL, LOVOL, and DEUTZ-FAHR brands. With an annual production capacity of up to 5,000 units, Agromash supplies machinery nationwide, supported by a regional network that spans major agricultural areas from Almaty to Ust-Kamenogorsk.

Deere & Company, the parent corporation behind the John Deere brand, is a U.S.-based multinational manufacturer of agricultural, construction, and forestry equipment, as well as diesel engines and heavy-duty transmissions.

The localization of John Deere production not only reinforces Kostanay’s position as Kazakhstan’s leading hub for agricultural machinery but also represents a strategic move toward technological sovereignty, innovation, and a strengthened domestic agro-industrial sector.

04 Apr 2025

Central Asia, Home, Kyrgyzstan Life & Culture, Life & Culture, Kyrgyzstan, Kyrgyzstan Features, Kyrgyzstan Home

Unvaccinated Children Barred from First Grade in Kyrgyzstan

April 4, 2025
By Anton Chipegin

Kyrgyzstan’s Ministry of Education has announced that children who are not vaccinated will not be admitted to first grade, amid a worsening measles outbreak in the country.

Deputy Education Minister Lira Samykbayeva stated during a live national radio broadcast that the process of registering children for school has been significantly simplified. Parents no longer need to submit numerous documents such as passports, marriage or birth certificates, and proof of family composition.

“This year, the Ministry of Education integrated its database with other government agencies, so there is no longer a need to collect certificates manually,” Samykbayeva explained.

However, she emphasized that two medical certificates will remain mandatory: one confirming a general health examination, and another verifying that the child has received preventive vaccinations, including the measles vaccine.

“The only thing that must be provided to the school is two medical certificates,” she said. “Including vaccination against measles.”

A government decree enforcing the new requirement was adopted just a day earlier. In the future, the Ministries of Education and Health plan to fully integrate their systems, allowing medical records to be accessed automatically by schools.

The stricter policy comes as Kyrgyzstan battles a growing measles outbreak. Since the beginning of the year, over 4,000 children have contracted the disease, and eight people have died. According to health officials, 95 percent of those infected were unvaccinated.

Speaking to The Times of Central Asia, Gulbara Ishenapysova, Director of the Republican Center for Immunoprophylaxis, said the Ministry of Health is stepping up vaccination efforts.

“By decision of the Kyrgyz Cabinet of Ministers, the ministry has revised the national vaccination calendar,” she noted.

In an effort to improve public trust, Kyrgyz health authorities have also engaged religious leaders. Clergy across the country are being encouraged to speak with parents about the importance of vaccinating their children.