Bilateral Cooperation - The Times Of Central Asia

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Bilateral Cooperation

Kazakhstan and Italy to Strengthen Military Cooperation

Kazakhstan and Italy are set to take their bilateral relations to a new level by enhancing military cooperation through targeted collaborations and strategic agreements. This partnership represents a significant step in bolstering the defense capabilities of Kazakhstan while strengthening ties between the Central Asian power and a key European Union member state. Key Areas of Collaboration The partnership will focus on several critical areas, including joint training initiatives, personnel exchanges, and advancements in military technology. Known for its ambitious modernization efforts across various sectors, Kazakhstan sees collaboration with Italy as an opportunity to upgrade its defense infrastructure and expertise. With its advanced military technology and extensive experience in both conventional and peacekeeping operations, Italy could provide Kazakhstan with valuable insights into modern warfare techniques and operational strategies. Potential areas of cooperation include cybersecurity, counterterrorism, and border security, reflecting mutual interests in maintaining regional and global stability. Additionally, military equipment production and joint defense projects are on the table, positioning Italy as a potential key player in Kazakhstan’s defense procurement strategy. By sharing technology and expertise, both nations aim to enhance their military preparedness and foster mutual growth. The news comes after a Kazakh delegation, headed by the Defense Minister of Kazakhstan, Ruslan Zhakssylykov, visited Italy’s Ministry of Defense and various military facilities, according to the Kazakh Ministry of Defense. The Strategic Importance Kazakhstan occupies a vital geopolitical position in Central Asia, serving as a crossroads for trade and security routes connecting Europe and Asia. A stronger defense partnership with Italy, a NATO member, underscores Kazakhstan’s intention to diversify its international relations and expand its defense partnerships beyond neighboring powers, China and Russia. For Italy, this cooperation aligns with its broader goal of deepening ties in Central Asia, a region that is becoming increasingly significant for global peace and security, especially given its proximity to Afghanistan and the interplay of great-power politics in the area. Enhanced ties with Kazakhstan offer Italy a foothold in Central Asia and a strategic partner with shared commitments to regional security and stability. This partnership also complements Kazakhstan’s multi-vector foreign policy approach, which seeks to balance relations with major global players while focusing on national interests. Deepening ties with Italy helps Kazakhstan diversify its defense alliances and reduce over-reliance on any single foreign power for military support. Recent Developments Recent discussions between Kazakh and Italian defense officials have demonstrated a commitment to cooperation. Agreements on military education programs and joint exercises are already underway. A key highlight of this partnership is Kazakhstan’s potential involvement in Italy’s defense technology initiatives. Reports suggest that ongoing negotiations could lead to joint production deals involving advanced military equipment, including drones and surveillance systems. Such developments would allow Kazakhstan to benefit from Italy’s state-of-the-art defense capabilities while contributing to its domestic military-industrial base. Outlook for the Future This emerging partnership between Kazakhstan and Italy signals a new chapter in Kazakhstan’s defense strategy. The collaborative efforts will not only help Kazakhstan grow its military competency but also fortify Italy’s presence in an...

Water Management

Uzbekistan to Supply 16 Billion Cubic Meters of Water to Kazakhstan by October 2025

Uzbekistan has agreed to supply 16 billion cubic meters of water to Kazakhstan by October 1, 2025, according to Kazakhstan’s Ministry of Water Resources and Irrigation. This agreement was reached during the 12th meeting of the Joint Working Group on Bilateral Water Cooperation, attended by Kazakhstan’s Minister of Water Resources and Irrigation, Nurzhan Nurzhigitov, and Uzbekistan’s Minister of Water Resources, Shavkat Khamrayev. In the previous water-sharing period (October 2023 - October 2024), Kazakhstan received 15 billion cubic meters of water. This year, the allocation will increase by 1 billion cubic meters. Uzbekistan has also pledged to ensure a stable water supply through the Dostyk Canal during the 2025 irrigation season. Additionally, both countries have agreed to carry out joint repairs on interstate canals to improve water access for farmers in Kazakhstan’s Turkestan region and Uzbekistan’s Jizzakh region. A key topic of discussion was the automation of water metering in the Syr Darya River. Kazakhstan and Uzbekistan have identified 10 monitoring points (five in each country) where automated water tracking systems will be installed. The technical specifications for a feasibility study have been approved. Kazakhstan’s Minister of Water Resources and Irrigation announced that a follow-up meeting with international organizations is planned for February to discuss further implementation steps. As The Times of Central Asia previously reported, Kazakhstan is set to receive 11 billion cubic meters of irrigation water by April 2025 under a regional agreement reached in Dushanbe. The deal was signed at a meeting of Central Asian water officials from Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan. The water will flow into the Shardara Reservoir in Kazakhstan’s Turkestan region via the Syr Darya River. Of this amount, 1.6 billion cubic meters will be allocated to the Aral Sea to help support its ecosystem.

Bilateral Relations

Kyrgyzstan Raises First Sovereign Bond to Mitigate China’s Growing Influence

On February 4, Kyrgyz president Sadyr Japarov embarked on a four-day state visit to China, visiting Beijing and the northern city of Harbin for the opening ceremony of the 2025 Asian Winter Games. The visit comes against a backdrop of increasing engagement between Bishkek and Beijing. Temur Umarov, a fellow at the Carnegie Russia Eurasia Center, says that certain groups within the government are worried about an overreliance on China. “This is the problem of the current political leadership,” Umarov says. “They want to do more with China … they want to have more investment from China, but they have this debt that they inherited from the previous administrations.” Indeed, 36.7% of Kyrgyzstan’s foreign debt is now owed to the Export-Import Bank of China (Exim Bank), Beijing’s state-run lender which traditionally deals with foreign investments. China is also responsible for 46% of Kyrgyzstan’s foreign trade. With Russia hemorrhaging influence in the region amid its ongoing war in Ukraine, accessing new sources of investment has risen up the agenda in Bishkek. The Name’s Bond A key plank of these diversification attempts was put forward on January 13, when the Minister of Economy and Commerce, Bakyt Sydykov, announced plans to raise $1.7 billion through the sale of ten-year sovereign bonds in Hong Kong. “The country intends to tap into the international market for the first time,” Sydykov said. “We want to use Hong Kong’s role as a financial center to attract more potential investors, probably more diversified investors.” For Iskender Sharsheyev, an economist, this turn to the global markets cannot come soon enough. “This should have happened thirty years ago,” he says. Sharsheyev notes that the groundwork has been laid over the last few years, with ratings agency Moody’s reaffirming its B3 credit rating last year and projecting a “stable” outlook for the country. The yield of these bonds has yet to be announced, although Sharsheyev expects it to be reasonably high. “We expect that [the yield] will be worse for our country than for other countries, because, firstly, we are just entering. Secondly, the new flow of cash into the country could create risks; it can also spur inflation.” However, the high yield and the risk is seen as worth the cost. “The bond offering is an example of how Kyrgyzstan is trying to balance out its debt portfolio and have diversified ties with different creditors,” says Umarov. He notes that this mirrors a trend seen across Central Asia, where bonds have not traditionally been used as a means of fundraising but have become increasingly popular over recent years. In October 2024, Kazakhstan issued its first dollar-denominated Eurobond since 2015, the 10-year bond raising $1.5 billion with a yield of 4.714%. Sharsheyev believes that some of the proceeds of the bond sale will be used specifically to head off debts to Beijing. “China is the main [source of] pressure. To maintain sovereignty, we have begun to service the external debt. Our country has spent an average of $400-500 million on paying...

Trade

Iran’s Non-Oil Exports to Uzbekistan Rise by 18%

Iran’s non-oil exports to Uzbekistan increased by 18% in value and 14% in weight during the first nine months of the current Iranian year (March 20 - December 20, 2024), compared to the same period last year (March 21 - December 21, 2023), Trend reported, citing data from the Iranian Customs Administration. According to the report, Iran exported 414,000 tons of non-oil goods worth $292 million to Uzbekistan during this period. In the corresponding months of the previous Iranian year, exports totaled 364,000 tons, valued at approximately $248 million. Key Iranian Exports to Uzbekistan Iran’s main exports to Uzbekistan included: Milk and dairy products Petrochemicals Various types of pipes Glass containers Agricultural equipment Overall, Iran’s total trade turnover with Uzbekistan during the nine-month period reached 444,000 tons, valued at $358 million. Expanding Trade Ties with Kazakhstan In addition to strengthening economic relations with Uzbekistan, Iran is also deepening trade ties with Kazakhstan. As The Times of Central Asia reported, on January 30, Iranian Vice President Mohammad-Reza Aref met with Kazakh Prime Minister Olzhas Bektenov in Almaty to discuss trade and transport cooperation. Kazakhstan’s trade with Iran reached $296 million in 2024, an 8.1% increase from the previous year. Notably, Kazakhstan’s exports to Iran grew by 29.1%, reaching $100.6 million. Kazakhstan plans to expand exports of wheat and barley, while both sides discussed increasing cargo traffic and upgrading port terminals to facilitate trade.

Bilateral Cooperation

Kazakhstan and the UAE Are Building a Geoeconomic Powerhouse Spanning Asia and the Gulf

Kazakhstan President Kassym-Jomart Tokayev’s recent mid-January visit to the United Arab Emirates (UAE), to attend the Abu Dhabi Sustainability Week (ADSW) Summit, underscores the strategic importance both nations place on their bilateral ties. ADSW is a prominent global platform dedicated to accelerating sustainable development and promoting international cooperation on the global environmental agenda. The 2025 summit — with the theme, “Nexus of Next: Supercharging Sustainable Progress” — was designed specifically to explore advanced technologies such as artificial intelligence, renewable energy, and innovative sustainability solutions. As leader of the most dynamic of the Central Asian economies, President Tokayev’s presence signaled his country’s ambition to play a more prominent role in addressing environmental challenges at an international level. In his keynote speech, Tokayev addressed environmental issues that are particularly critical for Kazakhstan, including desertification, biodiversity loss, water scarcity, and food security. He emphasized his country’s multifaceted approach to these challenges, which includes digital technologies, large-scale infrastructure projects, and the development of nuclear energy as a low-carbon solution. Kazakhstan has recently launched initiatives, such as expanding solar and wind farms and implementing advanced irrigation systems to combat desertification. Tokayev also highlighted Kazakhstan’s commitment to meeting its renewable energy targets, aiming to generate 15% of its electricity from renewables by 2030, in partnership with global leaders in green technology. Overall, the ADSW Summit provided a platform for Kazakhstan to engage with international partners, share its vision for sustainable development, and explore collaborative opportunities to address global environmental challenges. Kazakhstan’s efforts include the development of the Mohammed bin Rashid Al Maktoum Solar Park, which will have a capacity of 5,000 megawatts (MW) by 2030, and participation in the Space-D programme, which enhances operational performance through nano-satellites. In particular, President Tokayev met with UAE President Sheikh Mohamed bin Zayed Al Nahyan to discuss bilateral relations. The two leaders agreed to focus on a specific economic agenda — focused on trade, investment, and sustainable development — to create positive bilateral trade dynamics. Their Joint Declaration on Strategic Investment Projects in these fields was also highlighted. Kazakhstan and the UAE have developed a dynamic and multifaceted partnership over the past three decades. Since establishing diplomatic relations in 1993, the UAE has become Kazakhstan’s leading strategic partner in the Arab world. Early cooperation focused on trade and investment but has since expanded to include sectors such as petrochemicals, energy, transport, logistics, agriculture, and aerospace. Key milestones include the establishment of direct flight routes between the two countries and the signing of long-term investment agreements in the mid-2000s. Tokayev noted that direct investment from the UAE into Kazakhstan more than doubled from 2023 to 2024, placing the country among the top ten largest foreign investors in Kazakhstan. A focal point of their discussion was the goal of increasing bilateral trade turnover to $1 billion. In this context, the Dubai International Chamber has established a representative office in Kazakhstan to boost trade and investment opportunities further still. For several years, the UAE has been expanding its cooperation with the Greater Caspian...

Water Management

Kazakhstan and Uzbekistan Collaborate on Syr Darya River Automation to Improve Water Management

Kazakhstan and Uzbekistan are moving forward with plans to install ten automated measuring stations along the Syr Darya River, a project aimed at improving water resource management. As previously reported by The Times of Central Asia in September 2024, this initiative was first discussed during meetings between Uzbek Minister of Water Resources Shavkat Khamroyev and Kazakh Minister of Water Resources Nurzhan Nurzhigitov. The discussions focused on automating and digitizing water accounting in the river basin. On January 7, the two countries announced that they had agreed to develop technical specifications for the project. Five stations will be installed in each country, with the German Agency for International Cooperation (GIZ) assisting in the development of draft technical specifications. Meanwhile, negotiations are ongoing with international financial institutions to secure funding for the project. “This is just the beginning,” stated Kazakhstan’s Vice Minister of Water Resources and Irrigation, Nurlan Aldamjarov. “Only the first ten sections have been identified so far, but we aim to automate all major hydro posts and ensure complete transparency in water accounting. We are also actively addressing this issue in talks with our Kyrgyz and Tajik counterparts.” The automation of water management systems is a critical step for both Kazakhstan and Uzbekistan, as the Syr Darya River plays a vital role in supporting agriculture and ensuring water security in the region.