• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10844 -0.46%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10844 -0.46%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10844 -0.46%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10844 -0.46%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10844 -0.46%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10844 -0.46%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10844 -0.46%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00194 -0%
  • TJS/USD = 0.10844 -0.46%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
09 December 2025

AIIB Approves $250 Million to Support Uzbekistan’s Climate Transition

The Asian Infrastructure Investment Bank (AIIB) has approved a $250 million program to support Uzbekistan’s transition to a green and sustainable economy. The funding will help Uzbekistan achieve its goal of reducing greenhouse gas emissions per unit of GDP by 35% by 2030, compared to 2010 levels, and foster sustainable economic growth.

The program focuses on three key areas. First, it aims to strengthen governance by improving climate policies and integrating climate goals into national decision-making processes. Second, it addresses better management of water and land resources, reduces climate risks, and supports economic development. Finally, the program promotes low-carbon solutions in energy, transportation, and e-mobility, with a strong emphasis on energy efficiency and sustainable practices.

The initiative encourages state-owned enterprises to adopt climate risk disclosure practices and expand renewable energy projects.

AIIB Vice President Konstantin Limitovskiy emphasized the importance of the collaboration between AIIB, the Asian Development Bank (ADB), and Uzbekistan. “By integrating climate priorities into economic planning, enhancing adaptation measures, and driving decarbonization in critical sectors like energy and transport, this program plays a key role in supporting Uzbekistan’s efforts to implement its 2030 national strategy and fulfill its Nationally Determined Contribution under the Paris Agreement,” he said.

Kanokpan Lao-Araya, the ADB Country Director for Uzbekistan, highlighted that climate change presents a substantial challenge to the country’s long-term economic stability. She emphasized that the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) are collaborating to support Uzbekistan in achieving resilient, inclusive, and low-carbon economic growth.

Uzbekistan’s Ministry of Economy and Finance will lead the program, with support from other government agencies. AIIB and ADB will oversee its implementation to ensure it aligns with Uzbekistan’s broader development goals.

Kyrgyzstan Faces Electricity Deficit of 3.9 Billion Kilowatt-Hours

Kyrgyzstan is grappling with an electricity deficit of 3.9 billion kilowatt-hours as authorities struggle to resolve recurring winter energy shortages despite the construction of new hydroelectric power plants and electricity imports from neighboring countries. President Sadyr Japarov addressed the issue in a recent interview with the state news agency.

Japarov acknowledged that the electricity shortfall remains unresolved, attributing it to the growing demand driven by an increasing number of social and infrastructure projects.

“Our electricity is cheap. At a production cost of 2.7 Kyrgyz som (KGS) [approximately $0.031] per kilowatt-hour, consumers purchase it for 1.1 KGS. Additionally, under the Family Assistance program, we supply electricity to 69,000 families at a subsidized rate of 0.5 KGS per kilowatt-hour. Moreover, 186,000 consumers in mountainous areas receive electricity at 1.1 KGS without restrictions,” Japarov explained.

The president also criticized wasteful electricity consumption in both public and private sectors, citing a lack of awareness and accountability.

“Employees and heads of public institutions, schools, and kindergartens irresponsibly leave lights on in workspaces, assuming the state will pay for it. Similarly, street lighting remains on unnecessarily,” Japarov said.

For the past 30 years, Kyrgyz citizens have endured periodic electricity blackouts. Japarov urged them to remain patient for another three to four years, assuring that the energy deficit would be resolved with the completion of the Kambarata Hydroelectric Power Plant-1 project, which is expected to stabilize the country’s power supply.

Kazakhstan Offers Neutral Ground for Peace Talks, Says Deputy Minister Vassilenko

Kazakhstan’s Deputy Minister of Foreign Affairs, Roman Vassilenko, has expressed hope for ending global conflicts, reiterating Kazakhstan’s readiness to provide a platform for dialogue. Vasilenko made the remarks at the World Policy Conference held in Abu Dhabi.

“I am an optimist by nature and hope that wars will stop. This applies to the ongoing conflicts in Ukraine and the Middle East,” Vasilenko said in an interview.

The Deputy Minister underscored Kazakhstan’s neutral stance, highlighting the country’s balanced diplomatic relations with Russia and Western nations. “We hope that by the end of this year or possibly next year, Armenia and Azerbaijan will sign a peace treaty. We have offered to host this event in Kazakhstan,” Vasilenko stated.

Vasilenko also emphasized the European Union’s significance in Kazakhstan’s economic development and international partnerships.

“The EU is our largest trade partner and investor. It is the largest market for Kazakhstani oil and a vital source of technology and investment. We are collaborating with the EU to develop the Middle Corridor, a trade route connecting Central Asia with Europe via the Caspian Sea and the South Caucasus. Progress has already been made. For instance, over the next three years, we aim to quadruple the volume of cargo transported along this route,” he noted.

Kazakhstan continues to position itself as a bridge between dialogue and cooperation, leveraging its strategic geographic location and balanced foreign policy.

How Kazakhstan and Uzbekistan Anchor a Strategic Middle-Power Hub in Central Asia

Kazakhstan and Uzbekistan are driving Central Asia’s global significance. Together, they are turning Central Asia into a strategic middle-power hub. The two countries increasingly act as central nodes in a region key to global supply chains and, inevitably, geopolitical competition. However, they are not merely reactive to changes around them, but are highly dynamic.

What does it mean to say that the region is emerging as a strategic middle-power “hub”? The notion of a hub extends beyond the national profiles of the two principals, Kazakhstan and Uzbekistan, to include the aggregation of collective influence. Central Asia is recognized as a cohesive entity in global forums. Kazakhstan’s energy wealth combines with Uzbekistan’s demographic strength, creating an influential synergy beneficial to the entire region.

The interplay between their respective strengths allows them to amplify Central Asia’s voice in international institutions and negotiations collectively. By integrating their regional strategies within global frameworks — such as the Organization of Turkic States (OTS), the Shanghai Cooperation Organization (SCO), and the Conference on Interaction and Confidence Building Measures in Asia (CICA) — Kazakhstan and Uzbekistan enhance the region’s geopolitical relevance.

Kazakhstan, for example, has successfully advocated for the Trans-Caspian International Transport Route (TITR, also called the “Middle Corridor”). This transcontinental trade route is emerging as a lynchpin in Eurasian logistics, connecting China to Europe via the Caspian Sea. Uzbekistan, for its part, has emphasized the integration of transport and energy infrastructure. These initiatives align with the broader vision of a unified Central Asia.

The leadership of Kazakhstan and Uzbekistan has reinforced the region’s collective identity as the “C5” group, also including Kyrgyzstan, Tajikistan, and Turkmenistan. This regional bloc has become a diplomatic focal point for major powers like the United States, China, Germany, and Japan. All of them engage with Central Asia through structured consultations within the C5 framework. These meetings have given the region traction in international diplomacy.

The elevation of the C5 group reflects the region’s new prominence. The United States engages with the C5 on issues ranging from regional security to sustainable development, emphasizing its commitment to a secure and prosperous Central Asia. China’s cooperation under the C5+1 mechanism complements its transcontinental infrastructure initiatives. Germany focuses on sustainable energy and governance, while Japan prioritizes infrastructure and technology transfers.

Kazakhstan and Uzbekistan together have over two-thirds of the region’s gross domestic product and two-thirds of its population. Kazakhstan’s vast natural resources undergird its economic influence, while its geographic expanse (as the ninth-largest country in the world) makes it central to major connectivity initiatives. Through President Kassym-Jomart Tokayev’s nuanced foreign policy, Kazakhstan has adeptly balanced relationships with major powers, ensuring that it remains a key partner for Russia, China, and the European Union.

Uzbekistan has surged to prominence through its ambitious domestic reforms and proactive engagement for regional cooperation under the leadership of President Shavkat Mirziyoyev, who has implemented market liberalization measures attracting foreign investment and reinvigorating its economy. As the most populous country in Central Asia, Uzbekistan is an indispensable actor in regional affairs. Uzbekistan’s strategic geographic position between Central and South Asia also enables it to play a key role in emerging connectivity projects linking Central Asia’s resources to South Asia’s burgeoning markets.

The challenges to this strategic middle-power hub are multifaceted. Coordination between Kazakhstan and Uzbekistan is essential but not always straightforward, as national interests and priorities occasionally diverge. Moreover, the region remains subject to external pressures from major external powers, each of which seeks to shape Central Asia in alignment with its own strategic goals. Gaps in infrastructure connectivity among the Central Asian states and economic disparities between them also pose obstacles to realizing the region’s full potential.

Despite these challenges, there are immense opportunities for Kazakhstan and Uzbekistan to consolidate Central Asia’s role as a strategic middle-power hub. Their collaboration, coupled with the broader C5 framework, is starting to transform the region into a key player in global geopolitics. This development holds the potential for influencing economic and political outcomes far beyond the borders of Central Asia. If Kazakhstan and Uzbekistan continue to act together as stabilizers and connectors, they can ensure that Central Asia will not only survive as a collective project but, moreover, thrive as one.

Central Asia, under the joint leadership of Tokayev and Mirziyoyev is evolving into a geostrategic bridge, a critical interface among larger powers and regions, not on the periphery but central to the intersections of global geopolitical and economic currents. Kazakhstan’s infrastructure and energy exports link Russia, China, and Europe, while Uzbekistan’s outreach to South Asia and the Middle East broadens the region’s connectivity.

That bridging function is not simply geographic, but also political and economic. As nonaligned actors in an increasingly polarized world, Kazakhstan and Uzbekistan provide platforms for dialogue and cooperation, serving as intermediaries that facilitate interaction among competing global interests.

Afghanistan’s Electricity Restored Following Supply Issues from Uzbekistan and Turkmenistan

The Afghan Power Supply Company, Da Afghanistan Breshna Sherkat (DABS), recently announced disruptions in electricity imports from Uzbekistan and Turkmenistan. This has left many regions in darkness and sparked public dissatisfaction over the lack of a reliable power supply.

The interruptions stemmed from technical problems on the Uzbek side and hurricane-related issues in Turkmenistan. Uzbek authorities confirmed that they were working to resolve the issue swiftly.

On December 15, DABS confirmed that the technical issues had been resolved and normal electricity supply from both Uzbekistan and Turkmenistan had been fully restored.

Afghanistan relies heavily on electricity imports from neighboring countries, particularly Uzbekistan. In 2023, Uzbekistan extended its contract to export electricity to Afghanistan, underscoring the continued energy partnership between the two nations.

In earlier discussions, Afghanistan offered Uzbekistan opportunities to invest in its natural resources, including oil, gas, and copper deposits in the provinces of Ghazni and Herat, along with the potential to establish mineral processing plants.

U.S., Uzbek Think Tanks Agree to Work Together

Two prominent research centers in Uzbekistan and the United States plan to collaborate on joint projects.

The Washington-based Caspian Policy Center and Uzbekistan’s state-backed Institute for Strategic and Regional Studies signed a “strategic partnership agreement” and look forward to “fruitful joint work,” Caspian Policy Center CEO Efgan Nifti said on X.

Furqat Sidiqov, Uzbekistan’s ambassador to the U.S., said the agreement would help to foster ties between the two countries through research and dialogue.

Founded in 2016, the nonprofit Caspian Policy Center focuses on economic, political, energy and security issues in the Caspian region. The Uzbek institute started in 1992 under a presidential decree.

Last week, Eldor Aripov, director of the Institute for Strategic and Regional Studies, met leaders of top research groups in Washington. Among the topics they discussed were economic and other reforms in Uzbekistan that open “great opportunities for expanding the presence of American business in the Uzbek market,” the institute said.

The leaders also discussed U.S. foreign policy priorities, including in Central Asia, and noted “successful cooperation” in the so-called C5+1 talks format that includes Uzbekistan, Kyrgyzstan, Kazakhstan, Tajikistan, Turkmenistan and the United States, according to the institute. It said the format helped to coordinate efforts “to strengthen regional trade, develop transport and energy links, combat environmental challenges, and counter extremism.”