Bilateral Trade - The Times Of Central Asia

Viewing results 1 - 6 of 87

Bilateral Trade

Tajikistan-Kyrgyzstan Trade Soars More Than 15-Fold in 2025

Trade between Tajikistan and Kyrgyzstan has surged dramatically in 2025, increasing more than fifteenfold compared to the same period last year, according to the Customs Service of Tajikistan, as reported by Asia-Plus. From January to May, total bilateral trade reached $6.35 million, up from just $405,100 during the same period in 2024. Tajik exports to Kyrgyzstan amounted to $1.59 million, while imports from Kyrgyzstan totaled $4.76 million. Analysts attribute the sharp rise to improving political relations and the state visit of Kyrgyz President Sadyr Japarov to Dushanbe on July 8-9, at the invitation of Tajik President Emomali Rahmon. Bilateral trade has experienced fluctuations over the past decade. Peak volumes were recorded in 2018-2019, when annual trade neared $60 million, with more than $48 million in Kyrgyz exports to Tajikistan and over $14 million in Tajik exports. Since 2020, however, trade had been in decline, dropping to $26.2 million in 2021, $15 million in 2022, and just $11.4 million in 2023. Figures for 2024 remained low at approximately $11.6 million. The strong recovery in 2025 is largely credited to progress on border delimitation, the opening of two new border checkpoints, and renewed political dialogue. Experts also cite a series of new intergovernmental agreements as contributing factors. On June 30, during the visit of Tajikistan’s Foreign Minister Sirojiddin Muhriddin to Cholpon-Ata, both sides reaffirmed their commitment to expand trade and economic cooperation. A new target has been set: increasing annual trade to $500 million. Since the beginning of the year, the two countries have signed 15 agreements, including border-related protocols and measures to strengthen both political and humanitarian ties.

State Visit

Uzbekistan and Azerbaijan Forge $1B Trade Vision

President Shavkat Mirziyoyev of Uzbekistan arrived in Baku on July 2 for a state visit at the invitation of Azerbaijani President Ilham Aliyev. He was received at the airport by Deputy Prime Minister Yagub Eyyubov and other senior officials, with an official reception taking place at the presidential residence in Zagulba. A Thirty-Year Economic Partnership During bilateral talks, Presidents Mirziyoyev and Aliyev reaffirmed their commitment to enhancing the strategic partnership between Uzbekistan and Azerbaijan as the two nations mark 30 years of diplomatic ties. “Never in history have our relations been at such a high level as they are today,” said Mirziyoyev. Economic cooperation was a key focus of the discussions. Trade between the two countries has increased by 25% over the past year, and there are now approximately 300 joint ventures with a combined project portfolio valued at $4 billion. The leaders agreed to a new goal of boosting bilateral trade and investment to $1 billion annually by 2030. A comprehensive cooperation program was adopted to facilitate this, covering sectors such as industry, infrastructure, agriculture, healthcare, tourism, and banking. Advancing Transport and Logistics Links Significant progress was reported in the transport and energy sectors. The two presidents welcomed the growth of cargo transit along the Trans-Caspian International Transport Route, also known as the “Middle Corridor.” Uzbek cargo volumes on the route rose by 25% in 2024, surpassing one million tons, a development supported by the launch of a new electronic permit system in March. The leaders also committed to accelerating work on a joint green energy export initiative targeting European markets. Institutionalizing Strategic Ties Several bilateral documents were signed to formalize cooperation. These included a roadmap for implementing the 2023 Treaty on Alliance Relations through 2029, as well as agreements in environmental protection, science, higher education, and industry for the 2025-2026 period. Additional deals addressed agriculture, food security, social protection, maritime navigation, and municipal partnerships. New sister-city agreements were signed between Tashkent and Sumgayit, and between Navoi and Gabala. At a joint press briefing, Mirziyoyev lauded Azerbaijan’s efforts to restore its UN-recognized territorial integrity, stating, “You have fulfilled the long-standing dream of your father and every citizen of Azerbaijan.” He also praised infrastructure development in formerly disputed territories of Nagorno-Karabakh and described Azerbaijan as a “reliable ally and strategic partner.” The two leaders emphasized their shared positions on regional and global issues and pledged continued coordination in international forums. Mirziyoyev reaffirmed Uzbekistan’s commitment to the diplomatic resolution of conflicts. Cultural Diplomacy and Symbolism The visit featured symbolic and cultural highlights. In Baku’s Ag Sheher district, the presidents laid the foundation for Uzbekistan Park, a 4.5-hectare space celebrating Uzbek culture and architecture. They also inaugurated Uzbekistan’s new embassy in Baku, which includes halls named after different Uzbek regions, with Mirziyoyev proposing to name one of the halls after Karabakh as a gesture of friendship. The two leaders later toured the Sea Breeze resort complex on the Caspian coast, part of the broader Caspian Riviera tourism project. A similar development, Sea...

Economic Cooperation

China-Kazakhstan Economic Ties: Strong Trade, Weakening Investment

For the second consecutive year, China remains Kazakhstan's largest foreign economic partner. In 2023, China's share of Kazakhstan's total trade turnover surpassed 20%, up from 15.1% in 2019, according to analysts at Ranking.kz. Trade Dynamics: What Kazakhstan Sells and Buys Data from the National Statistics Bureau of the ASPiR RK show that bilateral trade between Kazakhstan and China reached $30.1 billion in 2023. Kazakhstan exported goods worth $14.9 billion to China, while imports from China totaled $15.2 billion. In the first quarter of 2025, trade turnover stood at $5.9 billion, a 5.1% decrease compared to the same period in 2024. Analysts attribute this dip primarily to reduced exports from Kazakhstan. Kazakhstan’s exports to China consist predominantly of raw materials: oil and gas, ores, metal concentrates, uranium, and agricultural products. China, in return, exports transport equipment, electronics, construction materials, clothing, and footwear to Kazakhstan. Notably, Kazakhstan spent over $100 million on Chinese sock imports last year. Digital technology also represents a significant share of imports, with Kazakh companies spending approximately $683.6 million on computers and laptops. Chinese Investment: From Energy to Industrial Zones China ranks among the top five foreign investors in Kazakhstan. In 2024, direct investment from China amounted to $1.2 billion, almost 50% less than the previous year. This decline mirrors broader trends affecting other major investor countries. Overall, 2024 marked a record low for gross foreign direct investment (FDI) inflows into Kazakhstan. Between 2015 and 2022, 25 joint projects valued at $7.4 billion were implemented. According to KAZAKH INVEST and Halyk Research, an additional 30 major initiatives worth $5.2 billion are in the pipeline. One flagship project is the $1.5 billion copper smelter in the Abai region, a joint venture between KAZ Minerals and Chinese investors, expected to be completed by the end of 2028. Another major initiative is an industrial town in the Zhetysu region’s special economic zone (SEZ), with investments totaling $638 million. The site will host enterprises in non-ferrous metallurgy, electronics, and food production, spanning over 1,000 hectares. China is also a key player in Kazakhstan’s renewable energy sector, financing wind farms in the Abai, Aktobe, Mangistau, and Ulytau regions at an estimated cost of $1.2 billion. As of May 1, 2025, more than 4,100 legal entities with Chinese participation were registered in Kazakhstan, which is 3.5 times the number recorded in 2019, according to the Bureau of National Statistics. Of these, approximately 40.7 percent (about 1,700 companies) are involved in trade, while others operate in industry (354 enterprises), construction (352), and mining (209).

Bilateral Trade

Kazakhstan and Kyrgyzstan Aim to Increase Trade to $3 Billion

Kazakhstan and Kyrgyzstan have reaffirmed their commitment to significantly boost bilateral trade, aiming to reach $3 billion annually by 2030. The pledge was made during a meeting between Daniyar Amangeldiyev, First Deputy Chairman of Kyrgyzstan’s Cabinet of Ministers, and Serik Zhumangarin, Kazakhstan’s Deputy Prime Minister and Minister of National Economy, on the sidelines of the Astana International Forum on May 30. In 2024, trade between the two countries totaled $1.7 billion. The new target reflects a strategic initiative set by the presidents of both nations to deepen economic integration. Roadmap for Trade Expansion At the meeting, officials discussed a draft roadmap to accelerate bilateral trade. Zhumangarin noted that Kazakhstan is prepared to increase its exports to Kyrgyzstan by more than $260 million, with a focus on petrochemicals, food products, and metallurgy. In the first quarter of 2025, trade between the two countries reached $435.1 million, a 25.2% increase compared to the same period in 2024. Kazakhstan’s exports stood at $341.9 million, while imports from Kyrgyzstan totaled $93.3 million. Agriculture: A Key Growth Sector Agricultural products now account for 20% of bilateral trade, and this figure continues to rise. In Q1 2025, trade in agricultural goods surged by 40.7%. Kazakhstan exported 3,400 tons of grain and 10,900 tons of flour to Kyrgyzstan during this period. In a notable development, Kazakhstan has approved Kyrgyzstan’s proposal to establish a “green-light” corridor at the border, ensuring the unhindered passage of early-season fruits and vegetables from Kyrgyzstan. Major Logistics Hub to Boost Connectivity A flagship joint project is the creation of an Industrial Trade and Logistics Complex at the Kazakhstan-Kyrgyzstan border. Located near the Karasu and Ak-Tilek checkpoints, the hub is poised to become one of Central Asia’s largest cargo distribution centers, supporting the consolidation, processing, and transit of goods. Land has already been allocated for the project: 50 hectares on the Kazakh side and 40 hectares on the Kyrgyz side. An investor has been identified, and work on a master plan and feasibility study is currently underway. To support this initiative, Kazakhstan has established the Alatau industrial zone in the Zhambyl region. The zone will host facilities for agricultural processing, as well as the production of consumer goods and building materials. Infrastructure Connectivity: Almaty-Issyk-Kul Highway Project The meeting also touched on the long-anticipated construction of an alternative highway linking Almaty, Kazakhstan’s largest city, with Lake Issyk-Kul, one of Kyrgyzstan’s most popular tourist destinations. The project is expected to enhance regional connectivity and stimulate tourism and trade between the two countries.

Bilateral Trade

Russia and Tajikistan to Open Joint Industrial Park by 2030

Russia and Tajikistan are planning to establish a joint industrial park in Tajikistan by 2030, in a move aimed at significantly boosting bilateral trade. The announcement was made by the Russian Ministry of Industry and Trade in a recent statement. The industrial park, to be built in Tajikistan and managed by the Russian side, is designed to facilitate the entry of more Russian industrial companies into the local market. According to officials, the project seeks to increase trade between the two countries by 2.5 times within the next five years. The initiative is part of Russia’s national project on international cooperation and export, and participation will be open to companies from both Russia and other countries. Products manufactured at the site are expected to be sold not only within Tajikistan but also across neighboring countries in Central Asia. Details of the project were presented in Dushanbe by Artur Galiullin, Deputy Director of the Department for International Cooperation and Export Licensing. His remarks came during a visit to the Korgohi Machine Building Enterprise. As previously reported by The Times of Central Asia, Tajikistan has made substantial progress in shifting trade settlements with Russia to the ruble. According to Firdavs Tolibzoda, Chairman of the National Bank of Tajikistan, over 90% of trade transactions are now conducted in Russian currency, a sharp departure from 2021, when trade was evenly split between the ruble and the U.S. dollar.

Bilateral Relations

Strategic Cooperation Between Turkey and Turkmenistan Gains Momentum

Turkey and Turkmenistan have accelerated their cooperation in recent years, advancing economic, energy, and diplomatic initiatives that underscore their shared cultural and strategic interests. Their deepening of bilateral ties reflects and expresses both broader regional dynamics and shifts in global energy geopolitics. As The Times of Central Asia reports, the two countries signed a natural gas supply agreement in February 2025 that reinforces Turkey’s ambitions as a regional energy hub while providing Turkmenistan with a new export avenue. Turkmenistan will begin supplying 1.3 billion cubic meters per year (bcm/y) of natural gas to Turkey on March 1 through a swap agreement. Turkmenistan will send gas to Iran for consumption in the northeast of the country, in return for which Iran will transfer an equivalent amount to Turkey. Various press commentaries and diplomatic declarations touting the “export of Turkmen gas to Turkey” are therefore to be regarded skeptically as political grandstanding, even if such an assessment may be supported from a technical standpoint of how the industry calculates flows. Trade and investment relations between Turkey and Turkmenistan have recently seen steady growth, underpinned by Turkish business engagement in Turkmenistan’s infrastructure and construction sectors. Over 600 Turkish companies are active in Turkmenistan, and Turkish direct investment has surpassed $500 million. Turkish contractors have executed projects worth over $50 billion in Turkmenistan since its independence. In this context, the eighth meeting of the bilateral Intergovernmental Commission on Economic Cooperation took place in Ankara on February 25. Following the meeting, a large-scale protocol was signed, including 87 points and covering cooperation over a wide range of issues - areas such as trade and investment, energy, transport and logistics, scientific cooperation, agriculture, and healthcare. The bilateral trade turnover between the two countries reached $2.2 billion in 2024, and Turkey aims to more than double this level to $5 billion. However, reaching that target hinges on further liberalization of Turkmenistan’s economic policies and the expansion of investment-friendly regulations, both of which could be challenging. The two sides also discussed how to integrate Turkmenistan into the Trans-Caspian International Transport Route (TITR, “Middle Corridor”) as well as possible cooperation in the field of transport and logistics toward that end. Ankara has successfully positioned itself as a strategic economic partner, but Ashgabat’s tightly controlled economy presents structural barriers that may slow the desired growth. Ankara’s engagement with Ashgabat thus reflects its broader efforts to enhance connectivity across Central Asia. Turkey’s push to integrate Turkmenistan into the TITR aligns with its own ambition to position itself as a logistical bridge between Asia and Europe, complementing its Middle Corridor strategy, which seeks to create an alternative trade route bypassing Russia. However, Turkmenistan’s rigid economic model and cautious foreign policy limit the pace of integration. Practical challenges include regulatory misalignment, infrastructure bottlenecks, and geopolitical sensitivities. Turkey’s Vice-President, Cevdet Yilmaz, affirmed his country’s intention that Turkmen gas and electricity should reach European markets through Turkey. Turkish state-owned companies such as TPAO and BOTAŞ will also seek to develop hydrocarbon fields in Turkmenistan and...