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28 Oct 2025

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Kazakhstan Authorities Deliberate Future of Lukoil Assets

October 28, 2025
By Vagit Ismailov

Russian oil giant Lukoil has announced plans to divest its international assets, including subsidiaries, amid ongoing Western sanctions.

The company stated the sale is being conducted under a license issued by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which allows Lukoil to wind down its foreign operations in an orderly manner by November 21, 2025. An extension of this deadline may be requested.

“Review of applications from potential buyers has begun,” the company said in an official statement.

According to industry data, Lukoil currently holds stakes in several key Kazakh projects: 5% in Tengizchevroil (TCO), 13.5% in Karachaganak Petroleum Operating B.V., 50% in the Kalamkas-Khazar project (Kalamkas-Khazar Operating joint venture), 49.99% in Al-Farabi Operating (offshore exploration and production), and 12.5% in the Caspian Pipeline Consortium (CPC).

While analysts suggest CPC operations are unlikely to be affected by U.S. restrictions, Kazakhstan may witness a significant redistribution of oil sector investments.

Despite this, Kazakh authorities remain cautious in making definitive assessments. Nurlan Zhakupov, head of the Samruk-Kazyna sovereign wealth fund, stated that discussions are ongoing with both domestic and international advisors regarding Lukoil’s shares in Kazakh ventures.

“A great deal of complex work is being carried out with relevant consultants, including international ones, on how KazMunayGas can navigate the current situation. Lukoil has major projects in Kazakhstan, so this is a complex and multifaceted issue,” Zhakupov said.

Deputy Minister of Energy Sanzhar Zharkeshov emphasized that any decisions regarding the acquisition of Lukoil’s shares fall under the purview of the national oil company KazMunayGas.

“Lukoil is KazMunayGas’s partner. They are jointly involved in Kalamkas, Khazar, and other projects. At this stage, the Ministry of Energy is not addressing the buyout or shareholder restructuring, this is a matter for KazMunayGas as an economic entity,” Zharkeshov said at a press conference.

Energy Minister Yerlan Akkenzhenov added that decisions on potential buyouts have not yet been made.

“This discussion has not yet taken place. The sanctions are still being analyzed, and their full impact on companies and the economy remains to be assessed. I believe a decision will be made soon, within the next few days, before the end of this week,” Akkenzhenov stated.

The Times of Central Asia has previously reported on the broader effects of U.S. and EU sanctions on economies across Central Asia.

28 Oct 2025

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Central Asia Loses 14 Million Tons of Crops Annually Due to Poor Storage Infrastructure

October 28, 2025
By Anton Chipegin

Each year, approximately 14 million tons of agricultural products are lost across Central Asia due to inadequate storage infrastructure, according to a recent analytical report from the Eurasian Development Bank (EDB).

In Kyrgyzstan, Tajikistan, and Uzbekistan, so-called “dry warehouses” remain the norm. A significant share of produce is stored in facilities lacking the conditions necessary for long-term preservation. As a result, large volumes of crops spoil annually, especially during seasonal peaks.

The EDB notes that Eurasian countries are entering a new logistics phase. The rapid growth of e-commerce and retail expansion is generating unprecedented demand for modern warehouse infrastructure. According to the bank’s projections, total demand for warehouse space in the region will double by 2040, surpassing 120 million square meters.

Between 2020 and 2024, the region’s total warehouse space increased from 48 to 58 million square meters. Russia remains the dominant player, with around 53 million square meters of commercial and logistics space. Central Asian countries, however, continue to lag far behind.

Crop losses peak during the autumn harvest and spring sales of residual stock. During these times, buffer storage and efficient transport logistics are critical. Without these, “farmers are forced to sell surpluses at the lowest price or throw them away,” EDB analysts warn.

Experts identify the warehouse sector as a key driver of trade growth in Eurasia. Realizing this potential, however, will require coordinated action among governments, businesses, and international institutions. The report emphasizes the need for a unified institutional environment to enhance investment appeal and market transparency.

“The region, which has long remained on the periphery of global logistics flows, is now shaping a new map of Eurasian logistics. In the coming years, the market will remain highly dynamic: more than 20 million square meters of new warehouse space is planned for commissioning, including 1.6 million square meters in Central Asian countries,” the report states.

Kyrgyzstan serves as a case in point. In 2020, amid the COVID-19 pandemic, agriculture was the country’s only growing sector. Yet farmers struggled with oversupply, cabbage, in particular, had to be fed to livestock or discarded due to a lack of buyers and storage facilities. A similar situation unfolded with potatoes.

28 Oct 2025

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Tajik Border Guards Clash with Taliban Fighters Along Afghan Border

October 28, 2025
By Sadokat Jalolova

Armed clashes erupted between Tajik border guards and Taliban fighters on October 25 along the Tajik-Afghan frontier, according to local sources cited by the Afghan outlet 8 Subh. The confrontation reportedly occurred in the Davanga district of Shahr-e Buzurg, located in Afghanistan’s Badakhshan province.

The dispute reportedly stemmed from disagreements over water diversion from the Amu Darya river, which serves as part of the natural boundary between Tajikistan and Afghanistan. The region is also home to Chinese-operated gold mining projects, further complicating the security landscape.

Sources on the ground reported casualties and injuries, although official figures have not yet been released. The Tajik government has not issued an official statement. In response to the incident, Taliban representatives in Badakhshan held a meeting with the province’s appointed governor, Ismail Ghaznawi.

This is not the first escalation in the area. On August 24, a shootout occurred near a Chinese-operated gold mining facility on the Afghan side of the border. That conflict was halted following emergency negotiations between the two sides, although accusations of harboring hostile groups persisted.

The latest incident comes just days after a Taliban delegation visited Dushanbe. Led by Balkh province’s Governor Yusuf Wafa, the delegation met with Tajikistan’s National Security Council Chairman Saimumin Yatimov and the Chairman of the Council of Ulemas, Saidmukarram Abdulkodirzoda.

Despite this diplomatic contact, Tajikistan remains the only Central Asian country that has not recognized the Taliban government. Dushanbe continues to call for the formation of an inclusive government in Afghanistan and the protection of human rights.

Nonetheless, limited trade and humanitarian engagement between the two countries persist. The Afghan embassy in Dushanbe is still headed by a diplomat appointed by the former government, while the Afghan consulate in Khorog is administered by a representative of the current Taliban-led administration. Tajikistan, in turn, maintains its embassy and consulate in Afghanistan.

28 Oct 2025

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Tokayev Awards Entrepreneurs and Workers as Kazakhstan Marks Republic Day

October 28, 2025
By Vagit Ismailov

As previously reported by The Times of Central Asia, Kazakhstan recently celebrated Republic Day. On this day 35 years ago, the country adopted the Declaration of Sovereignty, and in December 1991, the Union of Soviet Socialist Republics disappeared from the world map. However, the state continues some Soviet traditions, including hosting events on the eve of public holidays. Grand concerts and lavish receptions are held with the participation of artists of various genres, and state awards are given to workers, farmers, and public sector employees. One of the innovations of the new era is the awarding of prizes to well-known businesspeople, which would have been unthinkable under the communist era.

On the eve of Republic Day, the head of Kazakhstan issued a decree honoring citizens who have made a significant contribution to the economic, cultural, and social development of the nation. Among them are many people well-known in the country, such as Shukhrat Ibragimov, who holds the position of CEO and Chairman of the Board of Directors of the Eurasian Resources Group; Vyacheslav Kim, who heads the board of directors of Kaspi; Tursengali Alaguzov, head of GALANZ Bottlers; Daniyar Abulgazin, investor and co-founder of the Qazaq Oil and SinoOil gas station chains; and Nurlan Smagulov, founder of Astana Group, which includes companies such as Astana Motors and the MEGA shopping and entertainment complexes.

Among the award winners were also Armanzhan Baitasov, the publisher of Forbes Kazakhstan; Farrukh Makhmudov, founder of the Orbis Kazakhstan; Kenes Rakishev, head of Fincraft Group; Oleg Novachuk, acting chairman of the board of directors of KAZ Minerals Ltd; Alexander Chukreev, an entrepreneur known for his beverage brands; and Saule Zhakayeva, chair of the board of Citibank Kazakhstan.

This routine procedure sends a signal to the business community that the state encourages successful businesses that bear the burden of social responsibility. Many of the award winners helped the country during the severe floods of 2024, when tens of thousands of people were left homeless, and are building museums, schools, and public buildings at their own expense.

In addition to businesspeople, this year, which Tokayev has declared the Year of Working Professions, was marked on the eve of Republic Day with state awards for 138 representatives of working dynasties, around 500 workers and laborers in industry, transport, construction, agriculture, and other sectors, about 200 representatives of small and medium-sized businesses, more than 130 teachers and scientists, over 100 medical workers and other citizens who have made a personal contribution to the development of the country through their daily work.

28 Oct 2025

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Rare Earth Diplomacy: Critical Minerals Set to Top Agenda at C5+1 Summit

November 7, 2025
By Andrei Matveev

The announcement of an upcoming C5+1 summit in Washington between the United States and the Central Asian republics has taken much of the regional and U.S. political establishment by surprise.

A swift visit by U.S. Special Envoy for South and Central Asia Sergio Gor and Deputy Secretary of State Christopher Landau to Uzbekistan and Kazakhstan was seemingly necessary to coordinate the summit’s agenda. Notably, Kazakhstan appears prepared to play a leading role on one of the summit’s most pressing issues.

The summit, scheduled for November 6 in Washington, was first revealed through media channels before being confirmed through official correspondence between Kazakh President Kassym-Jomart Tokayev and U.S. President Donald Trump. Uzbek media later confirmed the meeting, citing sources within the administration of President Shavkat Mirziyoyev, and this was followed by Kyrgyzstan’s President Sadyr Japarov.

It is notable that shortly after Tokayev’s correspondence with Trump became public, the Kazakh president held a phone call with Russian President Vladimir Putin. Officially, the two discussed Tokayev’s upcoming visit to Moscow. This was their second such call in less than two weeks, the previous taking place on October 14. There is speculation that the Washington summit may have been a key topic of discussion.

During meetings in Tashkent with Gor and Landau – Uzbekistan being the first stop on their tour – Mirziyoyev reportedly discussed a broad set of topics. However, the issue of “critical materials,” particularly rare earth metals, stood out. It is increasingly clear that rare earths will be a central focus of Trump’s engagement with Central Asian leaders.

Sergio Gor and Christopher Landau at the Shymbulak ski resort in Almaty; image: Akorda

Trump has previously drawn attention for high-stakes diplomacy involving rare earth metals, including a controversial deal with Ukrainian President Volodymyr Zelensky and later discussions with Russian President Vladimir Putin in Anchorage. Most recently, during the first leg of his Asia tour, Trump met with Japanese Prime Minister Sanae Takaichi and concluded a rare earth metals agreement, despite the challenges associated with extracting these materials, which are often found underwater.

Against this backdrop, Kazakhstan appears well-positioned to take the lead in terms of rare earth elements. President Tokayev first proposed developing rare earth metal deposits in his September 2023 address, “The Economic Course of Fair Kazakhstan.” In 2024, Kazakh geologists identified 38 promising solid mineral deposits, including the Kuyrektykol site in the Karaganda region, which contains substantial reserves.

Tokayev returned to the issue in January 2025, during an extended government meeting, criticizing the cabinet for delays and emphasizing Kazakhstan’s untapped potential in rare earth extraction and processing.

In April, during the Central Asia-European Union summit, Tokayev met with European Commission President Ursula von der Leyen, who congratulated him on the discovery of a major deposit in Kazakhstan. The topic also featured at the Central Asia-Italy summit in May, where Tokayev proposed creating a regional research center to consolidate data on rare earth deposits across Central Asia. “The creation of joint ventures, technology transfer, and the localization of Italian production in the region are of practical interest and promise significant benefits for our countries,” Tokayev stated.

Most recently, in his September 8 State of the Nation address, Tokayev outlined concrete targets, instructing the government to launch at least three enterprises within three years to produce high-tech goods using critical materials.

“Given global trends, rare earth metals and other critical materials are becoming particularly important. In this area, Kazakhstan has all the opportunities to firmly integrate into global production and trade chains,” he said.

If President Trump is seeking the “deal of the century” on rare earths, Kazakhstan appears more than ready to make its pitch.

The upcoming C5+1 summit represents more than a diplomatic gathering – it is emerging as a stage for a wider strategic realignment. With Washington seeking to secure critical materials and diversify supply chains away from geopolitical rivals, and Central Asian states eager to attract investment while balancing relations with Moscow and Beijing, the meeting could redefine regional partnerships. Whether the talks yield substantive agreements or remain largely symbolic, the fact that rare earths now sit at the heart of U.S.–Central Asian dialogue signals a new era of resource diplomacy in Eurasia – one in which Kazakhstan, and potentially its neighbors, stand to play an outsized role.

28 Oct 2025

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China’s Visa Diplomacy: A Strategic Tool for Influence in Central Asia

October 28, 2025
By Yunis Sharifli

As China’s international influence expands, it is refining its approach to global engagement by combining economic strength with crafted instruments of soft power. While in the past China primarily relied on Confucius Institutes and educational exchange programs to promote cultural understanding and strengthen people-to-people connections, its strategy has evolved into a more diverse and multidimensional framework.

In recent years, Beijing has expanded its soft power tools to include Luban Workshops, which transfer technical skills and vocational expertise, and medical cooperation initiatives that enhance China’s reputation as a reliable development partner. These efforts have allowed China to project an image of a country that not only builds infrastructure and invests in markets, but also contributes to human capital and social welfare across the developing world.

A newer element in this evolving strategy is visa diplomacy. In a global environment where mobility and connectivity shape international relationships, easing travel restrictions has become a subtle yet effective way to deepen engagement.

As of mid-2025, China has signed or implemented visa-free or unilateral visa exemption agreements with 75 countries, covering tourism, business, family visits, and transit travel. This list includes key Central Asian partners such as Kazakhstan and Uzbekistan, both of which maintain mutual visa exemption agreements with Beijing.

The expansion of China’s visa diplomacy brings significant benefits for both China and its Central Asian partners, particularly Kazakhstan and Uzbekistan. For Beijing, this initiative advances two major objectives, strengthening its economy and enhancing its soft power.

On the economic side, visa-free agreements allow China to attract a larger and more diverse group of international visitors, expanding its tourism market beyond traditional regions. While travelers from Europe, Asia, and North America remain the most frequent visitors, there has been a noticeable increase in arrivals from Central Asia.

This trend is already visible in official figures, as in 2024 China recorded 20.1 million foreign entries under visa-free arrangements, representing 74.6 percent of total arrivals and marking a growth of more than 112 percent compared with 2023.

Visa-free diplomacy also supports China’s broader development goals by making tourism one of the essential drivers of economic growth and a reliable source of revenue. In 2025, China’s tourism sector, including both domestic and international travel, is expected to contribute a record 13.7 trillion yuan to the national economy.

This figure exceeds pre-pandemic levels by more than ten percent and sustains approximately 83 million jobs. As China expands its visa agreements with Central Asian countries, it aims to attract more visitors from the region, increase tourism income, and deepen regional economic ties.

Beyond its economic value, visa-free diplomacy enhances China’s soft power across Central Asia. By facilitating more frequent travel and cultural interaction, China has the opportunity to build a more positive image among Central Asian societies and to strengthen long-term people-to-people relations.

These exchanges can create familiarity and trust, which are essential elements of sustainable diplomacy. When combined with other soft power tools such as educational programs, technical cooperation, and media outreach, visa diplomacy helps China build a balanced approach that complements its economic influence with greater social and cultural engagement in the region.

For Central Asian countries such as Kazakhstan and Uzbekistan, mutual visa exemption agreements also generate important economic benefits and align well with their goals of expanding and diversifying the tourism sector. Visa-free access serves as a strong incentive for Chinese tourists, who rank among the world’s highest spenders on international travel.

Their presence provides a direct boost to local economies through increased spending on accommodation, restaurants, transportation, and local goods. There has already been a visible rise in the number of Chinese tourists visiting Uzbekistan. The visa-free arrangement is expected to further strengthen tourism flows from China to the Central Asian region. Building on the new visa-free policy, Uzbekistan aims to attract one million Chinese tourists in the medium term.

Beyond tourism, simplified travel regulations also create new opportunities for trade and investment. Easier mobility encourages Chinese entrepreneurs and investors to explore Central Asia, identify potential ventures, and establish business operations. Over time, these interactions can help attract greater levels of investment, deepen economic integration, and strengthen China’s role as a strategic economic partner in the region.

Against the backdrop of China’s growing economic influence in Central Asia, visa-free agreements play an important role in strengthening people-to-people engagement across the region. This approach complements Beijing’s long-standing focus on government and elite-level relations by fostering broader social and cultural connections.

Through expanded mobility, China seeks to build familiarity and trust among Central Asian societies, allowing individuals to experience its culture, development, and economic progress firsthand. Over time, this engagement can help ease public concerns about China’s increasing presence in the region and reshape perceptions by highlighting the potential benefits of Chinese investment and cooperation. By encouraging more direct human interaction, China aims to cultivate a more balanced and positive narrative around its role in Central Asia.