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Coal

Kyrgyzstan Government Temporarily Bans Road Coal Exports as Shipments to China Surge

On December 3, the government of Kyrgyzstan imposed a six-month ban on the export of coal by road transport. The restriction aims to stabilize the domestic market amid rising demand and does not apply to shipments passing through the Irkeshtam and Torugart checkpoints on the border with China. Despite its environmental impact, coal remains a critical fuel source for winter heating in Kyrgyzstan, which continues to face chronic electricity shortages. In an effort to curb domestic price increases, the government introduced temporary state regulation of coal prices in September, effective for 90 days. While domestic needs remain high, coal is also a key export commodity. China has emerged as a growing destination for Kyrgyz coal, with exports reaching 11,600 tons in September 2025, the highest monthly volume recorded this year, according to China’s General Administration of Customs. Data from the National Statistics Committee of Kyrgyzstan shows that in 2024, the country exported 1.1 million tons of coal worth $52.7 million. Uzbekistan remained the largest buyer, importing 996,600 tons. However, exports to China surged to 118,200 tons, up from just 13,000 tons in 2023. In late November, Chairman of the Cabinet of Ministers Adylbek Kasymaliev visited the Torugart border checkpoint and the newly opened Torugart-1 coal mine, which began operations on November 12. Kyrgyzkomur OJSC, the national coal company, holds the exploration license for a 557.6-hectare section of the deposit in the At-Bashy District of Naryn Province. Total reserves are estimated at 423,400 tons. Kasymaliev instructed officials to ensure stable operations at the site and to initiate coal exports from the Torugart-1 mine as soon as possible.

Oil and Gas

China’s Power Play in Central Asia’s Energy Sector

China is steadily expanding its influence in Central Asia’s oil and gas sector through multi-billion-dollar investments, long-term supply agreements, and a growing network of strategic partnerships. From Kazakhstan to Turkmenistan, Beijing’s state-backed companies are securing key upstream and midstream assets, financing new petrochemical and pipeline projects, and positioning themselves as indispensable players in the region’s resource development. This expansion is driven not only by China’s rising energy demand, but also by Beijing’s ambition to establish durable overland energy corridors that reduce reliance on maritime routes vulnerable to disruption. Central Asia’s existing and planned pipelines provide China with rare direct access to oil and gas fields across its western frontier, making the region a focal point of its broader energy-security strategy and a cornerstone of Beijing’s efforts to diversify supply while deepening political and economic footholds across Eurasia. Kazakhstan Eyes Chinese Investment Amid Lukoil Sanctions Kazakhstan may seek to transfer Russian company Lukoil’s stake in the offshore Kalamkas-Khazar oil and gas project to a new partner, with some industry channels, including the Telegram channel Energy Monitor, speculating about possible Chinese interest. Lukoil, which has been targeted by Western sanctions, is reportedly planning to exit Kalamkas-Khazar Operating LLP, a joint venture with KazMunayGas (KMG). Each company currently holds a 50% stake. Some commentators have suggested that a Chinese investor could step in, but no replacement has been officially confirmed. Seconded engineers from KMG Engineering are expected to be withdrawn from the project as of January 1, 2026, with several Kalamkas-Khazar staff members temporarily reassigned to other KMG subsidiaries until a new partner is confirmed. The project is considered highly promising, with earlier estimates citing reserves of 81 million tons of oil and 22 billion cubic meters of gas. New exploration has identified additional oil-bearing structures. A final investment decision (FID) worth more than $6.5 billion was originally expected by the end of 2025. However, U.S. sanctions against Lukoil have delayed progress. Located 120 km from the Kashagan field in the North Caspian Basin, the Kalamkas-Khazar block comprises the Kalamkas-More and Khazar fields. The site is situated in Kazakhstan’s Mangistau Region, 60 km from the Buzachi Peninsula. KazMunayGas Chairman Askhat Khasenov previously confirmed that production was expected to begin in 2028-2029, with peak output reaching four million tons annually. Lukoil was sanctioned by the UK on October 15, followed by the U.S., complicating ongoing negotiations. Despite this, major projects where Lukoil holds minority stakes, such as Tengiz, Karachaganak, and the Caspian Pipeline Consortium, have not been impacted. A Lukoil withdrawal would create a rare opening for China to secure its first significant offshore position in the North Caspian, a zone historically dominated by Western majors and Russian firms. Such an entry would represent a notable shift in Kazakhstan’s offshore partnership landscape. Beijing's Billion-Dollar Energy Deals in Kazakhstan In September 2025, President Kassym-Jomart Tokayev announced a series of energy deals with China valued at $1.5 billion. During his official visit to China, more than 70 commercial agreements totaling approximately $15 billion were signed, several...

China

China Demands That Tajikistan Protect Chinese Citizens After Attack

China is urging Tajikistan to “take all necessary measures” to protect Chinese citizens and businesses in Tajikistan’s border area, where several Chinese workers were killed in a drone attack that was carried out from neighboring Afghanistan last week. Tajik President Emomali Rahmon, meanwhile, met senior security officials in his government on Monday to discuss ways to strengthen security on the southern border with Afghanistan, whose ruling Taliban movement has expressed sorrow and promised to help find the attackers. “According to reports from officials, during the past week two incidents of gunfire occurred across the border into Tajikistan, resulting in five deaths and five injuries,” Tajikistan’s presidential office said. It said Rahmon “strongly condemned the illegal and provocative actions of Afghan citizens” and ordered security officials “to resolve the issue and prevent the recurrence of such unfortunate incidents.” The statement did not provide details on the five people who were killed. The government previously said a drone attack from Afghanistan targeted a camp housing company employees in Tajikistan’s southwestern Khatlon region last week, killing three Chinese workers. The government meeting on Monday came a day after Chinese ambassador Guo Zhijun called Tajik Foreign Minister Sirojiddin Muhriddin as well as a senior Tajik security official to discuss the border situation. “Guo demanded that Tajikistan take all necessary measures to ensure the safety of Chinese enterprises and citizens in Tajikistan,” the Chinese embassy in Dushanbe said on Monday. It noted that Tajikistan said it “will immediately upgrade its security measures to protect the safety of Chinese enterprises and citizens to the fullest extent of the law.” Chinese workers are involved in mining and construction projects in Tajikistan, which along with other countries in Central Asia is seeking to improve relations and develop trade with Afghanistan despite persistent security concerns. Tajikistan said that it used a drone to kill two suspected drug smugglers from Afghanistan in the border area last month. In August, Tajik guards and fighters from the Afghan Taliban exchanged fire. Afghanistan’s Ministry of Foreign Affairs has condemned the killings of the three Chinese workers last week and blamed that attack on “those seeking to create disorder, instability, & mistrust among the countries of the region.” It said it “stands ready for information-sharing, technical collaboration, & joint assessments in order to identify those responsible for the incident.” Separately, Afghanistan’s border to the east and south with Pakistan has been the focus of recent clashes between the two countries that killed dozens of people and disrupted trade. Pakistan accuses Afghanistan of providing sanctuary to militants who carry out attacks against Pakistani security forces, an allegation that the Taliban in Afghanistan denies.

Renewable energy

Kyrgyzstan’s Renewable Pivot and the Strategic Weight of China’s Rising Role

China’s energy engagement in Central Asia has undergone a quiet but decisive transformation since 2018. What was once a relationship built almost entirely on pipelines, hydrocarbons, and state-backed fossil fuel projects is now expanding into a much more diversified portfolio in which renewable energy plays an increasingly central role. Kazakhstan and Uzbekistan were the first to attract large-scale Chinese commitments in solar and wind power, yet Kyrgyzstan is quickly emerging as the newest frontier in this shift. Recent agreements demonstrate how Bishkek is rapidly positioning itself within China’s clean energy expansion. In 2022, Kyrgyzstan signed an agreement with Chinese investors to build a 1-gigawatt solar plant in Issyk-Kul. Furthermore, the government concluded another agreement with Shenzhen Energy Group for the construction of two additional power plants, one solar and one wind. The Energy Ministry has also reached an investment deal with States Technology Co. and San Energy Co. for a 250-megawatt solar facility in Batken. These projects indicate that Chinese capital is not only filling Kyrgyzstan’s immediate energy gaps, but is also beginning to reshape the country’s long-term energy structure. This push toward solar and wind arrives at a critical moment. Kyrgyzstan remains overwhelmingly dependent on hydropower, which generates more than 90% of the country’s electricity. Yet this climate-sensitive resource is now far less stable than in the past. Shifts in water levels driven by changing weather patterns have introduced new uncertainties into the country’s ability to meet domestic demand. At the same time, electricity consumption has surged at an unprecedented rate, rising by nearly one billion kilowatt hours in a single year due to newly launched industrial enterprises and rapid residential construction. The combination of climate volatility and soaring consumption has placed the energy system under severe strain. The government has declared a three-year energy emergency and introduced consumption restrictions designed to save approximately 40 kilowatt hours per month. Under these conditions, diversifying away from near-total reliance on hydropower is no longer optional but an urgent strategic necessity. Solar and wind investments offer a viable path forward. Expanding renewable capacity will give Kyrgyzstan a more predictable and resilient energy base, enabling the country to better manage seasonal shortages and climate-driven disruptions. Kyrgyzstan also imports all of its fossil fuels. As renewable capacity expands and the use of electric vehicles increases, the country could gradually reduce its dependence on oil imports from Russia, easing both financial pressures and geopolitical exposure. For this reason, cooperation with China represents more than a set of commercial transactions. It is evolving into a strategic pillar of Kyrgyzstan’s broader effort to strengthen energy security and modernize its power system. Chinese companies bring financing, technology, and implementation speed, all of which are essential for a country facing immediate and long-term energy risks. The benefits may extend beyond the domestic market. With sufficient renewable capacity, Kyrgyzstan could eventually re-enter regional electricity trade as an exporter. Some estimates suggest that cross-border energy sales could generate up to 220 million dollars annually in foreign currency earnings, providing a significant...

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.

Middle Corridor

Kazakhstan, Azerbaijan, Georgia, and China Deepen Cooperation on Trans-Caspian Transport Corridor

Railway companies from Kazakhstan, Azerbaijan, and Georgia have signed a cooperation agreement with China Railway Container Transport Corp., Ltd. (CRCT) to jointly develop the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor – a strategic link connecting China and Europe via Central Asia and the South Caucasus. The agreement was signed during the Second China Railway Express Cooperation Forum, held on 18 November in Xi’an, under the theme “Connecting Asia and Europe for a Shared Future.” According to Kazakhstan Temir Zholy (KTZ), the country’s national railway operator, the agreement establishes formal cooperation between Chinese railways, through CRCT, and MIDDLE CORRIDOR MULTIMODAL Ltd., a joint venture created in 2023 by the railway companies of Kazakhstan, Azerbaijan, and Georgia. The initiative aims to enhance the efficiency, safety, digitalization, and sustainability of China-Europe rail container transport services along the trans-Caspian route. Kazakhstan, Azerbaijan, and Georgia play key roles along the TITR, which offers a vital alternative trade corridor between China and Europe that bypasses Russia. In recent years, Kazakhstan has strengthened its position as a regional transit hub. KTZ reports that freight transportation between Kazakhstan and China has increased more than 4.5-fold over the past decade. For 2025, total freight volume is projected to reach 35 million tons, with over 29 million tons transported in the first ten months, an 11% year-on-year increase. Joint infrastructure projects in China and Kazakhstan, including hubs in Lianyungang, Khorgos, and Xi’an, continue to demonstrate strong growth. Container shipments have more than quintupled in the past ten years, exceeding 1.4 million twenty-foot equivalent units (TEUs). Momentum along the Trans-Caspian route also remains strong: the number of container trains increased by 12% in the first ten months of this year. To capitalise on this growth, Kazakhstan is investing in railway infrastructure. Modernization and construction of 5,000 kilometers of railway track is underway, which will raise the country’s annual cross-border freight capacity with China to 100 million tons in the coming years.