Page 332 – The Times Of Central Asia

02 Apr 2025

Draft, Life & Culture, Kazakhstan Life & Culture, Kazakhstan

Kazakh Villages Voluntarily Embrace Alcohol-Free Lifestyle

April 2, 2025
By Vagit Ismailov

An increasing number of villages across Kazakhstan are voluntarily banning the sale of alcohol, reflecting a grassroots movement aimed at improving public health, safety, and the wellbeing of future generations.

Prosecutor General Berik Asylov highlighted the trend on his official X (formerly Twitter) account, describing it as a conscious decision made by ordinary citizens, not a top-down directive.

“When citizens take responsibility, reality itself changes,” he wrote, emphasizing that the initiative stems from the community level.

Bottom-Up Initiative, Top-Level Support

One notable example comes from a village in the Mangistau region, where residents released a video declaring their collective decision to stop selling alcohol. Similar efforts have emerged in Akmola, Zhambyl, Karaganda, Atyrau, and other regions. While still relatively isolated, these cases are increasing, Asylov noted, with the number of “dry” villages steadily growing.

The movement is often driven by local community councils and elders, supported by the prosecutor’s office, police, and akimats (local government offices), which help implement preventive measures and maintain order.

Entrepreneurs have also played a key role. Responding to requests from fellow villagers, many voluntarily removed alcohol from their shelves. Contrary to concerns, these businesses did not suffer losses, residents began purchasing more nutritious food and products for children instead.

Visible Impact on Communities

According to Asylov, the results are already apparent: crime rates are dropping, domestic violence is decreasing, and more young people are choosing sports and healthier lifestyles over alcohol.

“This is a real-life demonstration of the principle of ‘Law and Order’, not enforced by fear, but built on trust; not through punishment, but through personal choice,” he said.

Official Data Reflects the Trend

Law enforcement statistics support this development. In the first quarter of 2025, the number of crimes committed under the influence of alcohol declined nationwide, a direct outcome of such community-led initiatives.

In Aktobe region, 33 villages across nine of the region’s twelve districts have officially stopped selling alcohol, according to local media.
In Turkestan region, 61 more villages have taken similar steps, according to Murat Kabdenov, head of the regional police department.

Meanwhile, the village of Sunkar in Almaty region stands out for its complete elimination of alcohol from daily life, not just retail outlets.

A Vision for the Future

Prosecutor General Asylov reaffirmed that the General Prosecutor’s Office supports any community-driven initiative that promotes social harmony, respect for the law, and a shared vision for a better future.

“People value trust, stability, and peace. They inspire each other through personal example,” he concluded.

02 Apr 2025

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Controversies and Rejections: What Future Awaits the CSTO?

November 27, 2025
By Aliya Haidar

Armenia has officially refused to contribute financially to the Collective Security Treaty Organization (CSTO), a bloc tasked with ensuring the independence, territorial integrity, and sovereignty of its member states. Meanwhile, the organization’s Secretary General, Imangali Tasmagambetov, has come under scrutiny for remarks he made related to the ongoing conflict between Russia and Ukraine.

Shifting Alliances and Regional Tensions

Founded in 1992, the CSTO comprises Russia, Kazakhstan, Kyrgyzstan, Belarus, Tajikistan, and Armenia. Georgia, Azerbaijan, and Uzbekistan have withdrawn from the organization at various times.

While the CSTO regularly conducts joint military exercises and cooperates on counter-terrorism and anti-narcotics efforts, the war in Ukraine has exposed internal divisions and challenged the bloc’s cohesion.

Tasmagambetov Responds to Criticism

In March, Secretary General Tasmagambetov raised eyebrows in an interview with a Russian outlet, warning that any deployment of EU troops to Ukraine could escalate regional tensions. He stated that the CSTO would be ready to provide assistance “within the framework of the organization’s charter and subject to approval by all member states.”

The remarks sparked a backlash, particularly on social media in Kazakhstan, where some users accused Tasmagambetov, the former prime minister, of adopting a pro-Russian stance. Responding in late March, Tasmagambetov recorded a rare video message clarifying his position.

“How can one calmly react to baseless claims that I would send my compatriots to war?” he asked. “There will always be those who distort my words. I have always remained loyal to my people; the interests of our country have always come first.” Tasmagambetov went on to urge viewers to think critically about information shared online.

This controversy follows an earlier statement by Aibek Smadiarov, spokesperson for Kazakhstan’s Ministry of Foreign Affairs, who said in October 2022 that the CSTO had no plans to involve itself in the Ukraine conflict. “The CSTO’s jurisdiction is limited to the internationally recognized territories of its member states,” Smadiarov stated.

Kazakhstan, meanwhile, is reviewing a report by a Ukrainian institution that said about 661 Kazakh citizens have fought for Russia since it launched a full-scale invasion of Ukraine in February 2022. The I Want To Live center, which is run by the Ukrainian security services and assists with surrender requests from soldiers fighting for Russia, published a list of what it said were the Kazakh nationals. Of the 661, at least 78 have been killed, according to the center. Without providing details, it said it received the list from its own sources within the Russian military.

Kazakh media quoted Igor Lepekha, Kazakhstan’s deputy interior minister of internal affairs, as saying the numbers have to be checked because it is unclear whether they are reliable. Kazakhstan bans mercenary activities in foreign conflicts and has opened a number of related investigations in the last few years. Last year, a court in Kazakhstan sentenced a Kazakh national to more than six years in jail for fighting with Russia’s Wagner Group in Ukraine.

Armenia Pulls Back

Adding to the bloc’s instability, Armenia recently announced that it would no longer finance the CSTO. The Armenian Ministry of Foreign Affairs confirmed the decision, citing its refusal to sign the 2024 budget agreement.

Yerevan has long criticized the CSTO for its lack of support during the Armenia-Azerbaijan conflict. Tensions escalated further when the Armenian parliament passed a bill signaling the country’s intent to join the European Union.

Political analyst Gaziz Abishev suggests that Armenia’s financial withdrawal may be part of broader efforts to normalize relations with Azerbaijan. “By halting payments, Armenia is signaling that it no longer requires territorial guarantees from its CSTO partners. This leaves room for a peace deal,” Abishev noted.

A Look Back: CSTO’s Kazakhstan Mission

Despite the current turmoil, the CSTO’s mission in Kazakhstan in January 2022 remains one of its most effective operations. Initially triggered by protests over gas price hikes, the crisis escalated into violent clashes and the seizure of government buildings.

On January 5, President Kassym-Jomart Tokayev requested CSTO assistance, and within days, troops from Russia, Kyrgyzstan, Armenia, Tajikistan, and Belarus were deployed to secure strategic sites while Kazakhstani forces restored order.

Often criticized for being a “paper tiger” and a “zombie” alliance, it remains to be seen whether the CSTO can be an effective force in a time of geoploitical strife as NATO increasingly falters.

02 Apr 2025

Home, Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy, Features, Kyrgyzstan Features

Are Innovative Industries One of the Kyrgyz Republic’s Opportunities to Prosper?

November 28, 2025
By Daniel Abdyldaev

The emergence of AI is considered by many to be a major tectonic shift, much like the emergence of the internet in its time. It is hard to overestimate the role innovation plays in our lives, with founders all over the world trying to pioneer our way out of the next problem. At first glance, the Kyrgyz Republic’s tech sector does not represent anything particularly meaningful. The chances of the small landlocked country – the farthest from any ocean in the world, which is the most affordable mode of shipping mode – integrating into innovative global ecosystems on its own seem wholly unrealistic. However, if we look at the dynamics of development in its tech sector, the potential is there. Is there a chance that the Kyrgyz Republic can become a part of the global tech scene?

Image: The World in Maps

According to Ashley Vance at Bloomberg, “It’s about a landlocked nation, one with very few natural resources, hoping to gen up a tech industry on the fly.” The Kyrgyz startup ecosystem is clearly in its nascent stages, meaning that you haven’t heard about the Kyrgyz Skype. Yet. The country’s position in the Global Innovation Index in 2024 is 99^th, up from 106th in 2023. The Global Startup Ecosystem Index, meanwhile, has the Kyrgyz Republic lower than 100^th place in its 2024 ranking, down from 99th in 2023. “The country has maintained second position in Central Asia and seventh in the Central Asia Regional Economic Cooperation Program (CAREC) business region,” according to this index.

The Kyrgyz Republic’s VC ranking of 103rd in the Venture Capital & Private Equity Country Attractiveness has barely changed over the last couple of years. When compared to peer group economies, it is obvious that the Kyrgyz Republic needs significant improvements in the depth of the capital market, social environment, entrepreneurial opportunities, and economic activity.

Image: Venture Capital & Private Equity Country Attractiveness Index 2023

In terms of the number of venture capital deals, the Kyrgyz Republic is still lagging behind its neighbors. Out of $110+ million of venture capital funding in the region in 2023, the Kyrgyz contribution was only a fraction at $1.1 million. In 2024, this increased to $1.7 million, however, with the country’s first venture capital law soon to be adopted.

Image Venture Capital in Central Asia 2024

The High Technology Park of the Kyrgyz Republic, which is a special tax regime for IT companies targeting exports, is demonstrating a steady growth, with its revenue expanding from under a million in 2013, to a more impressive $130 Million in 2024. The park’s residents are mostly companies providing IT outsourcing for developed markets, but the signs of a turn towards launching their own IT products are there. A separate world-first Creative Industries Park has also been set up to support the country’s creative industries, including startups.

When it comes to the largest Kyrgyz startups, they are founded by Kyrgyz nationals, who have built their startups in more sophisticated ecosystems. Erkin Adylov’s Behavox is an illustrative example of such a story. The company, which is the largest provider of AI-compliance solutions for financial institutions, raised $100 million from SoftBank’s Vision II Fund in 2020. In late 2024, Behavox secured an additional $70 million credit facility from Hercules Capital (NYSE: HTGC) for strategic expansion. A brilliant example of a soonicorn (a startup that is expected to reach the $1 billion unicorn valuation in the near future) can hardly be called a Kyrgyz startup in its full meaning, however, as it is not integrated into the local tech ecosystem.

Another so-called hybrid group is represented by those founders with expertise in more developed ecosystems who have now taken a more active role in the domestic sphere. One such person is Tilek Mamutov, both the first Kyrgyz national to become a software developer at Google and the first admitted to Y Combinator, the leading global startup accelerator based in Silicon Valley. Mamutov’s startup, Outtalent, is helping tech professionals around the world land jobs in the largest global tech companies, such as Meta, Amazon, Apple, Netflix, and Google. Not only is Mamutov helping his customers from different parts of the globe, but he is also contributing to the local startup scene by sharing his expertise. He has even moved his company’s HQ from Silicon Valley to Bishkek.

Finally, the local ecosystem has seen an explosion of locally born stories. If a decade ago the local tech scene was reminiscent of tumbleweeds in the desert, this year alone seven Kyrgyz startups were admitted to top global accelerators: Yessa — Antler Vietnam, Admitted — Antler Malaysia, Chef Vision AI — Antler Vietnam, Core Pod — Launch, MyStory — StartX, BabyGuide — Antler Malaysia, and Neobis — Google for Startups.

Another challenge is that no country in the region can integrate into the global ecosystem alone. Even larger countries in the region, such as Kazakhstan and Uzbekistan, are still too small when it comes to the global scale. The optimal opportunity, therefore, is to be found in integrating as a region, and the trend is heading in that direction.

Last year Silicon Valley saw the very first Central Eurasia @ Silicon Valley conference, which took place in the legendary Yerba Buena Arts Center in San Francisco right before TechCrunch Disrupt. The event became the largest representing the region in Silicon Valley to date. It is now clear that regional cooperation represents the best chance of ultimately becoming a part of the global tech scene.

But even with regional integration there is one more challenge to address. Without access to more mature ecosystems, there will be neither the expertise nor the capital. This is why we are seeing innovation hubs opening in different parts of the world that provide a soft-landing for founders from our region, connecting local ecosystems with established ones like Silicon Valley. One such hub is the Silkroad Innovation Hub, which organized the Central Eurasia @ Silicon Valley conference last October. The Eurasian Startup Hub is building a similar bridge in the UK, while the Al-Farabi Innovation Hub is doing the same in Saudi Arabia, and now in Dubai. There are even attempts afoot to build a hub in China.

Whether the Kyrgyz Republic can become a part of the global innovative ecosystem will depend on its ability to foster regional cooperation and to build relationships with more evolved ones as it continues to facilitate a favorable environment for Kyrgyz founders. But the seeds have certainly been planted — and while still in their early stages, their promising trajectory is becoming more and more obvious.

01 Apr 2025

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

Kazakhstan and Kyrgyzstan Plan Faster Routes from Almaty to Issyk-Kul

April 1, 2025
By Sergey Kwan

Kazakhstan and Kyrgyzstan have taken another step toward implementing a long-discussed infrastructure project: the construction of an alternative highway linking Almaty, Kazakhstan’s largest city, to Lake Issyk-Kul, Kyrgyzstan’s top tourist destination.

On March 28, Almaty hosted the sixth meeting of the Kyrgyz-Kazakh Working Group on Transport and Infrastructure Development, held under the framework of the Almaty-Bishkek Economic Corridor Project, with support from the Asian Development Bank.

Participants agreed on the key parameters for a feasibility study and committed to accelerating the implementation of the new road.

@AKIPress/The existing road from Almaty to Issyk-Kul and three possible alternative routes

Lake Issyk-Kul remains a major draw for tourists from across the region and is especially popular with residents of Almaty seeking weekend or summer getaways. Although the two locations are only 80 kilometers apart in a straight line, they are separated by mountain ranges. The existing route detours through Bishkek, extending the distance to more than 460 kilometers and turning what could be a short trip into an 8-hour drive to Cholpon-Ata, the largest resort town on the lake’s northern shore.

Kazakhstan and Kyrgyzstan first signed a memorandum of understanding on the construction of an alternative route in 2007, but progress has since stalled.

The proposed new highway would bypass Bishkek, passing through the town of Uzynagash, west of Almaty, and the town of Kemin, located approximately 100 kilometers east of Bishkek, before continuing to Cholpon-Ata. This revised route would reduce the total distance to around 260 kilometers, significantly shortening travel time.

01 Apr 2025

Central Asia, Uzbekistan, Uzbekistan Business & Economy, Business & Economy

Uzbekistan’s Foreign Debt Climbs to $64.1 Billion in 2024

April 1, 2025
By Sadokat Jalolova

Uzbekistan’s total external debt rose to $64.1 billion in 2024, accounting for 55.7% of the country’s gross domestic product (GDP), according to a new report from the Central Bank on the balance of payments, international investment position, and external debt. This marks an increase from 51.9% at the end of 2023.

The country’s external debt includes both public and private liabilities, though many private-sector entities, particularly in banking and industry, are partially or wholly state-owned. The government controls approximately 65% of the banking sector and holds stakes in major enterprises such as UzAuto Motors and Uzbekneftegaz. These companies, along with state-owned banks like the National Bank of Uzbekistan (NBU) and Uzpromstroybank, have collectively issued billions in debt over recent years.

Corporate (or private sector) external debt rose by $6.6 billion to $30.2 billion, equivalent to 26.2% of GDP. Government debt increased by $4.2 billion, reaching $33.9 billion, or 29.5% of GDP.

Since 2016, Uzbekistan’s external debt has expanded 4.4 times, from $14.7 billion to $64.1 billion. Corporate debt has nearly quadrupled during that period, while government debt has grown by a factor of 5.2.

Although the growth rate of public external debt has decelerated in recent years, corporate debt, primarily borrowed by state-owned banks and companies, continues to rise sharply.

According to projections from the Ministry of Economy and Finance, Uzbekistan’s public debt is expected to reach $45.1 billion by the end of 2025, representing 36.7% of projected GDP. By the end of 2024, public debt is estimated to total $39.7 billion.

01 Apr 2025

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New Report Urges Local Irrigation Equipment Production to Tackle Water Scarcity in Central Asia

April 1, 2025
By Sergey Kwan

The Eurasian Development Bank (EDB) and the United Nations Industrial Development Organization (UNIDO) have jointly released a report titled Irrigation Equipment Production in Central Asia: Industrialising the Water Sector, highlighting the urgent need to localize irrigation equipment manufacturing in the region.

The publication argues that establishing a domestic irrigation equipment manufacturing sector could serve as a strategic response to mounting water challenges in Central Asia. It calls for coordinated action by regional governments, international organizations, and private sector actors to implement investment and policy frameworks aimed at reducing reliance on imports and fostering a self-sufficient production ecosystem.

Heavy Dependence on Imports

The report identifies irrigation equipment as a key strategic area for bolstering food security and managing water resources more efficiently. Currently, the regional market for such equipment is valued between $130 million and $200 million, with over 90% of this demand met through imports.

Despite this dependency, governments across Central Asia are taking proactive steps to modernize agriculture. Substantial financial and non-financial support is being extended to farmers, and plans are underway to expand irrigated farmland and adopt advanced irrigation technologies.

According to the study, the irrigated area in Central Asia is projected to grow to 10.6 million hectares by 2040. This expansion is expected to drive demand for up to two million units of irrigation equipment, with the potential to generate $426 million annually in local production. The report further estimates the annual market for new sprinklers at $114 million and for drip irrigation systems at $220 million.

Cluster-Based Development

To address these needs, the publication proposes a cluster-based approach to developing local irrigation equipment production hubs.

Nikolai Podguzov, Chairman of the EDB Management Board, emphasized the economic potential of localization: “The region’s demand for irrigation equipment could more than double by 2030. Localizing production will not only help retain investments within the local economy but also stimulate the development of precision irrigation technologies, digital water management tools, engineering labs, and knowledge-sharing centers focused on best practices in irrigation and water use.”