Caspian Sea - The Times Of Central Asia

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Bilateral Trade

Kazakhstan and Iran Discuss Trade on Pezeshkian’s Visit to Astana

Kazakhstan and Iran have announced plans to significantly deepen economic cooperation, aiming to triple bilateral trade turnover to $1 billion in the coming years. The announcement was made by Kazakh President Kassym-Jomart Tokayev during the Kazakh-Iranian business forum, held as part of the official visit of Iranian President Masoud Pezeshkian to Astana. According to Tokayev, mutual trade exceeded $340 million last year and is expected to “increase many times over” in 2024. The two countries have set an initial target of reaching $1 billion in trade, with an eventual goal of $2 billion, relying on expanded logistics and the establishment of sustainable supply chains. A key mechanism will be the opening of the Kazakhstan Trade House in Tehran, intended to facilitate systematic exports of Kazakhstani products. Over the past two decades, Iran has invested more than $226 million in Kazakhstan’s economy, and more than 350 Iranian companies currently operate in the country. Tokayev emphasized Kazakhstan’s readiness to initiate new joint projects across sectors ranging from industry to agribusiness. Strengthening corridors and access to the Persian Gulf Tokayev highlighted the development of transport and logistics infrastructure as a primary enabler of increased trade. Kazakhstan, he noted, is a vital transit hub in Eurasia, with 85% of cargo between China and Europe passing through its territory. Astana plans to construct a transport and logistics terminal at the port of Shahid Rajai, linking Kazakhstan’s ports of Aktau and Kuryk with the Iranian ports of Amirabad and Anzali. The Kazakh side also expressed readiness to integrate the ports of Bandar Abbas and Chabahar into the regional supply chain. The Kazakhstan-Turkmenistan-Iran railway plays a central role in these plans. Traffic volumes along this corridor are expected to double by 2030, delivering a substantial boost to regional trade and industrial development. Key market for Kazakh grain Iran remains a key buyer of Kazakh grain. In the first 10 months of 2024 alone, exports reached $280 million. Total agricultural trade between the two countries stood at $220 million in 2023, underscoring the sector’s growth potential. Iran’s Solico Group plans to build a dairy plant with an annual capacity of 200,000 tons and launch baby food production. Meanwhile, Kourosh Food Industry is exploring opportunities to establish vegetable oil plants and poultry farms. Kazakhstan, in turn, is inviting Iranian investors to participate in modern manufacturing projects and develop export-oriented supply chains. A shared challenge: the declining Caspian Sea The environmental situation in the Caspian region was another key topic of discussion. Falling sea levels are already affecting port operations, logistics, and fish stocks. Tokayev called for the creation of an intergovernmental program to preserve the Caspian Sea and urged greater involvement from international organizations. Kazakhstan intends to take part in the upcoming VII Caspian Summit in Tehran and has proposed hosting the IV Caspian Economic Forum within the next two years. Pezeshkian noted that the private sector has already identified promising areas for collaboration from the creation of a joint shipping consortium on the Caspian to the development of...

Trade and Logistics

China’s Zhongyun to Partner on $300M Seaport Project in Aktau

A new $300 million seaport is set to be built in Aktau, with China’s Zhongyun International confirmed as the strategic partner. The announcement was made by Nurdaulet Kilybay, Akim (Governor) of the Mangistau region, during a government meeting on November 25. Located on the Caspian Sea in western Kazakhstan, the port of Aktau connects to Azerbaijani ports Baku and Alyat to the west, and to the Iranian port of Bandar-e Anzali to the south. The Aktau-Alyat ferry crossing plays a key role in the Trans-Caspian International Transport Route, part of the larger Belt and Road Initiative linking China to Europe via Kazakhstan, Azerbaijan, Georgia, and Turkey. The route significantly shortens delivery times to the European Union. Aktau’s current cargo port has a capacity of 3.2 million tons of dry goods and 12.5 million tons of crude oil annually. In June 2025, the first phase of a $38 million container hub was launched in Aktau, expanding the port’s capacity from 140,000 to 240,000 twenty-foot equivalent units (TEU). Over the summer, Mangistau authorities held talks with several Chinese firms about building a modern seaport and logistics center in Aktau. Zhongyun International has since registered a local subsidiary and is preparing documentation for an investment agreement. “This project will contribute to the formation of a new international transport corridor: China-Kazakhstan-Aktau-Baku-Poti-Europe. Its implementation will cut delivery times by 7-15 days, reduce transport costs by 18-25%, and create new jobs,” Kilybay said. Additional Infrastructure at Kuryk Port At the same meeting, Minister of Trade and Integration Arman Shakkaliev reported on progress at the Sarzha multifunctional marine terminal in the port of Kuryk, located on the eastern Caspian coast near Aktau. The $189 million project is being developed with private investment. “The general cargo terminal and temporary storage facility are now operational, and cargo transshipment has already begun,” Shakkaliev said. Terminals for grain, bulk, chemical, and universal cargo, as well as a transport and logistics center, are currently under construction. The port of Kuryk now handles up to 6 million tons of cargo per year, 4.1 million tons via the railway terminal and 1.9 million tons via the road terminal. In 2024, dredging works in the port’s waters were completed ahead of schedule, enabling deeper drafts and the full loading of vessels.

Caspian Sea

Kazakhstan Leads Regional Efforts to Save the Caspian Sea

Today, Central Asia and the Caspian littoral states face growing challenges that extend well beyond national borders. Climate change, water scarcity, land degradation, and the shrinking of the Caspian Sea are no longer only environmental concerns but matters of regional security and sustainable development. The Caspian Sea, the world’s largest inland body of water, has become a symbol of crisis. Its rapid decline threatens ecosystems, navigation, fisheries, and food security from the Caucasus to Central Asia. Dushanbe: ecology as a new agenda for regional security A week ago, Dushanbe hosted two major international events: the “Central Asia–Russia” Summit and the meeting of the CIS Heads of State Council. At both forums, President Kassym-Jomart Tokayev called for moving from declarations to concrete action, proposing to Establish a Council of Ministers for Ecology among the Central Asian countries and Russia Develop an Interstate Program for the preservation of the Caspian Sea’s water resources Expand the use of space technologies to monitor transboundary water bodies These initiatives are part of a broader effort to build a new environmental framework for Eurasia, positioning Central Asia as a laboratory for sustainable solutions rather than a zone of ecological risk. The environmental disaster of the Caspian Sea The Caspian Sea is shrinking rapidly. According to data from Kazakhstan’s Ministry of Ecology, since 2006 its surface area has decreased by more than 31,000 square kilometers, and water levels have fallen by about 1.5 to 2 meters. Projections indicate severe consequences for spawning grounds, the Caspian seal population, port infrastructure, and the regional economy. The crisis mirrors the Aral Sea disaster, where environmental degradation caused widespread illness and social disruption. Experts warn that toxic dust from the exposed seabed could lead to respiratory diseases among millions of people. According to estimates by Save the Caspian Sea, the shoreline could retreat by as much as 89 kilometers, pushing fishing communities to the edge of survival. Falling sea levels already threaten unique wildlife, navigation, water supply, and agriculture, creating risks of migration and conflict. Because the Caspian is landlocked and not connected to the world’s oceans, its water losses cannot be naturally replenished. A coordinated response is needed, including sustainable water management, pollution control, and climate adaptation. The Caspian Sea as a crossroads of interests and contradictions The Caspian region today is more than an ecosystem; it is a geopolitical nexus where the interests of coastal states and global powers converge. Key transport routes such as the North–South Corridor and the Middle Corridor meet here, linking the economic, energy, and political interests of Russia, Iran, Turkey, China, and the European Union. The United States has also shown growing interest, particularly through its support for infrastructure projects in the South Caucasus and initiatives related to the Zangezur Corridor. Yet logistics, energy, and trade risk losing their purpose if the region’s natural foundation disappears. An ecological collapse could undermine multibillion-dollar investments, threaten food security, and turn the Caspian from a zone of cooperation into a battleground over resources. That is why saving...

Caspian Sea

Kazakhstan Initiates International Program to Save the Caspian Sea

The ongoing shallowing of the Caspian Sea is no longer a national issue, it is emerging as a significant international challenge. Kazakh President Kassym-Jomart Tokayev emphasized that the crisis requires collective action and the adoption of an intergovernmental program. Since the early 2000s, the Caspian Sea’s water level has been steadily declining. As previously reported by The Times of Central Asia, by the summer of 2025, the sea had fallen below 29 meters relative to global sea level, marking a historic low. The northern basin, which borders Russia and Kazakhstan, is drying up particularly rapidly, due in large part to decreased flow from the Volga River. This is not the first time Kazakhstan has raised concerns about the Caspian Sea on the international stage. According to Tokayev, “the need to develop an intergovernmental program to preserve the Caspian Sea has matured.” The president believes that participation should extend beyond the five littoral states, Russia, Iran, Azerbaijan, Turkmenistan, and Kazakhstan, to include other nations invested in the region’s environmental health. He recalled that during his visit to China in early September, he proposed the creation of a specialized international organization. “This is not only a problem for one country, but for a number of states,” Tokayev stressed in his annual address to the nation. At the same time, the president acknowledged that Kazakhstan faces its own internal water management challenges. Losses in some irrigation and water channels reach 50-60%, and resource accounting is still being carried out using outdated technologies. “As for the culture of conserving natural resources, especially water, we must admit that we have big problems here: as they say, the horse didn’t lie down,” Tokayev remarked. To address these issues, he proposed creating a unified digital platform for water resources, powered by artificial intelligence. This platform would enable accurate hydrogeological monitoring and the development of a national water balance. Tokayev said this system would provide the foundation for a long-term water policy and help attract investment into the sector. Tokayev also stressed that environmental safety should become part of Kazakhstan’s national ideology. He highlighted the ongoing Taza Kazakhstan (“Clean Kazakhstan”) initiative, which began in 2024. Under this project, approximately 860,000 hectares of land have been cleaned and over 4 million trees planted. “If such active work continues, Kazakhstan will become a truly green country, an inspiring example and a valuable legacy for future generations,” Tokayev said. He also called for the introduction of a unified standard for environmental education, from schools to universities.

Telecommunications

Kazakhtelecom CEO Confirms 2026 Launch of Caspian Submarine Cable Project

Kazakhstan and Azerbaijan have entered the active implementation phase of the long-anticipated submarine fiber-optic cable (SFOC) project across the Caspian Sea. According to Bagdat Mussin, CEO of Kazakhtelecom JSC, the underwater cable system is scheduled for completion and launch by the end of 2026. First proposed in 2019, the project involves the construction of two parallel fiber-optic lines, spanning approximately 380 to 400 kilometers, to connect the digital infrastructures of Kazakhstan and Azerbaijan. Originally, Kazakh telecom operators Transtelecom and KazTransCom participated alongside Azerbaijan’s AzerTelecom. However, by 2022, the Kazakh companies had exited the venture, and in 2023, Kazakhtelecom assumed the lead role on behalf of Astana. On August 22, 2023, Kazakhtelecom and AzerTelecom formalized their partnership by signing a joint venture agreement in Amsterdam. Mussin stated that national operators have now completed site surveys of the coastal infrastructure, identifying locations for both a beach manhole and a cable landing station. A specialized survey vessel, currently operating from the Kazakh port of Bautino, is mapping the seabed to assess depth, terrain, underwater currents, and geological conditions to finalize the cable route. “The bridge's capacity is designed to meet future demands and will support at least 400 Tbit/s. When the first byte of data travels through this artery, the Caspian will become a unique digital bridge between Asia and Europe,” Mussin said. As previously reported by The Times of Central Asia, the total cost of the project is estimated at $50.6 million. The cable is part of a wider regional initiative to advance digital transformation and sustainable connectivity across Eurasia.

Environment

NCOC Wins Temporary Reprieve in Environmental Case in Kazakhstan

An Astana court has overturned a multi-billion-dollar environmental fine imposed on the North Caspian Operating Company (NCOC), the consortium developing the Kashagan oil field in Kazakhstan’s sector of the Caspian Sea. The ruling was based on procedural violations by Kazakhstan’s environmental authorities. However, the court made clear that the decision does not prevent the re-filing of claims once the procedural flaws are addressed. The NCOC consortium comprises KMG Kashagan B.V. (16.877%), Shell Kazakhstan Development B.V. (16.807%), Total EP Kazakhstan (16.807%), Agip Caspian Sea B.V. (16.807%), ExxonMobil Kazakhstan Inc. (16.807%), CNPC Kazakhstan B.V. (8.333%), and Inpex North Caspian Sea Ltd. (7.563%). In March 2023, the Ministry of Ecology and Natural Resources filed a $4.2 billion lawsuit against NCOC, based on a complaint from the Atyrau Region Department of Ecology. The agency alleged that more than 1.7 million tons of sulfur were being stored at the Kashagan site, far exceeding the 2022 legal limit of 730,000 tons. NCOC denied the allegations, stating that its sulfur production and storage practices fully complied with Kazakh legislation and international standards. In March 2025, an arbitration court ruled in favor of NCOC. The case then proceeded to the appellate level, where the Administrative Chamber of the Astana Court annulled the initial enforcement order due to violations of the Administrative Procedure Code by the environmental authorities. “It has been established that the authorized body committed violations of the Administrative Procedure Code of the Republic of Kazakhstan when issuing the order, which was the basis for overturning the contested order,” the court’s press service stated. The court emphasized that its ruling was procedural and did not address the substance of the environmental claims. “The court did not assess the validity of the conclusions of the Department of Ecology on the merits. Thus, the decision does not affect the substance of the violations identified and does not prevent the authorized body from taking further action after the procedural errors have been corrected,” the statement continued. As previously reported by The Times of Central Asia, this is not Kazakhstan’s only legal dispute with NCOC. An international arbitration case remains ongoing, in which the government is seeking $150 billion in lost profits, citing delays in the Kashagan field’s launch and the failure to meet oil delivery commitments.