• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00201 0%
  • TJS/USD = 0.10515 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00201 0%
  • TJS/USD = 0.10515 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00201 0%
  • TJS/USD = 0.10515 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00201 0%
  • TJS/USD = 0.10515 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00201 0%
  • TJS/USD = 0.10515 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00201 0%
  • TJS/USD = 0.10515 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00201 0%
  • TJS/USD = 0.10515 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00201 0%
  • TJS/USD = 0.10515 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0.28%
27 February 2026

Viewing results 1 - 6 of 14

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...

The Illusion of Chinese Investment in Kazakhstan

Concerns about how Chinese businesses operate abroad — and the challenges already confronting Kazakhstani entrepreneurs — have resurfaced following a recent letter to the prime minister from an association of oil service companies reporting price dumping. Despite these developments, Kazakhstani experts remain hesitant to discuss the negative effects of China’s growing influence in the country’s real economy. Technological Dependence The reluctance is unsurprising. Astana’s official policy seeks broad rapprochement with Beijing, spanning economic, political, and cultural spheres. Given the power imbalance, Kazakhstan avoids public statements that might offend its wealthier partner, particularly in the media, which China monitors closely. As a result, the recent complaint by the PetroCouncil — an oil and gas association representing more than 150 domestic service companies — about dumping by foreign, mainly Chinese, firms has been met with silence from local experts. In a letter addressed to Prime Minister Olzhas Bektenov, the PetroCouncil warned that foreign firms, particularly from China, have been offering services to major Kazakhstani enterprises at prices 60–70% below market value. This, they argue, is forcing out local businesses, reducing Kazakhstani content, eroding tax revenue and employment, diminishing engineering expertise, and threatening industrial safety. We asked PetroCouncil Managing Director Daniel Zholdybaev why foreign companies have come to dominate Kazakhstan’s oil and gas sector and whether the competence of local personnel or service providers is a factor. According to Zholdybaev, the dominance is rooted in how foreign operators first entered Kazakhstan’s market: by bringing their own technologies. This created long-term dependency not only on their expertise but also on foreign suppliers. “Chevron, for instance, maintains a vetted list of approved suppliers, and wherever the company operates, it only works with those on that list,” Zholdybaev explained. While Kazakhstan continues to develop domestic manufacturing capabilities, local firms are still barred from participating in high-risk operations such as work on wells with extreme pressure or temperature conditions. Zholdybaev noted that Kazakhstan’s three major fields — Tengiz, Karachaganak, and Kashagan — account for 90 percent of oil and gas imports. The operators of these projects are mainly Western companies. Russia, due to international sanctions, plays only a marginal role in procurement despite maintaining a presence in Kazakhstan. However, it is Chinese companies, actively welcomed by the state, that have introduced the issue of price dumping. Chinese firms operating in Kazakhstan’s oil and gas industry maintain closed procurement systems, sourcing goods and services almost exclusively from Chinese suppliers. As a result, Chinese investment brings minimal benefit to Kazakhstan’s economy. Even construction contracts often return to China. Russian observers, typically sensitive to Central Asia’s dealings with China and the United States, have also remained largely silent on this issue. A rare exception was political analyst Yuri Baranchik, who posted a sharply critical comment on his Telegram channel: “This is a clear example of what happens when Chinese companies are allowed full access to the domestic market,” he wrote. “They dump prices to bankrupt local businesses, monopolize the sector, and then dictate terms. Now the Kazakh government must figure...

Chinese Firms to Build Waste-to-Energy Plants in Astana and Shymkent

Kazakhstan is advancing the modernization of its waste management system with the launch of new waste-to-energy projects in Astana and Shymkent, its second- and third-largest cities. On October 31, the Ministry of Ecology and Natural Resources announced the signing of investment agreements with China’s Shaanxi Construction Engineering Kazakhstan Co., Ltd. and East Hope LLP to construct the new facilities. In Astana, East Hope LLP will invest approximately $180 million to build a plant with a daily processing capacity of 1,500 tons of municipal solid waste, equating to around 550,000 tons per year. In Shymkent, Shaanxi Construction Engineering Kazakhstan Co., Ltd. will invest $100 million in a plant capable of processing 1,000 tons of waste daily, around 360,000 tons annually. Together, the two projects are expected to create more than 550 jobs during the construction phase and approximately 200 permanent positions once operational. The plants aim to significantly reduce the volume of waste sent to landfills while generating clean electricity, contributing to Kazakhstan’s broader environmental and energy goals. In August, the Ministry signed a separate agreement with China’s Hunan Junxin Environmental Protection Co. Ltd. to construct Kazakhstan’s first waste-to-energy facility in Almaty. That plant will process at least 1,600 tons of solid waste daily and generate up to 60 megawatts of electricity. The total investment in the Almaty project is estimated at $269 million.

EDB Estimates Central Asia-China Transport Connectivity Projects at $9 Billion

China has emerged as the principal investor in regional transport infrastructure, with analysts from the Eurasian Development Bank (EDB) estimating that cross-border projects linking Central Asia and China will require $9 billion in funding through 2035. According to the EDB, 12 projects valued at more than $9 billion are either underway or in the planning stages. These account for 17% of the $52.8 billion allocated to 90 transport corridor projects across Central Asia. The initiatives are expected to significantly boost trade and cargo flows with China, already the region’s largest trading partner. China-Kyrgyzstan-Uzbekistan Railway The most ambitious among them is the long-anticipated China-Kyrgyzstan-Uzbekistan (CKU) railway, a $4.7 billion project that will establish the first direct rail link between China and these two Central Asian states. Half of the funding will come from a Chinese concessional loan, while the remainder will be provided by a joint venture created to build and operate the railway. China will hold a 51% stake in the venture, while Kyrgyzstan’s contribution is valued at $575.75 million. On August 31 in Tianjin, Kyrgyz President Sadyr Japarov met with Chinese President Xi Jinping. Following the meeting, officials signed a letter of intent regarding China’s preferential loan to finance Kyrgyzstan’s share, according to the Kyrgyz presidency. The 523-kilometer railway officially broke ground on December 27, 2024, in Jalal-Abad, Kyrgyzstan. Once completed, the CKU will link Kashgar (China) with Torugart, Makmal, and Jalal-Abad (Kyrgyzstan), and Andijan (Uzbekistan). The line is projected to carry up to 15 million tons of cargo annually, significantly reshaping regional trade flows. Currently, Kazakhstan is the only Central Asian country with a direct railway connection to China. Kazakhstan’s Leading Role Kazakhstan leads Central Asia in cross-border infrastructure investment with China, accounting for $3.4 billion or 37% of the total. Key projects include: The modernization of the Dostyk-Moiynty railway section (836 km), scheduled for completion in 2025, which will increase freight capacity fivefold. Construction of the Ayagoz-Bakhty railway line and the launch of a third border crossing with China, aimed at further diversifying transit corridors. Regional Impact The scale and scope of these initiatives underscore the strategic importance of transport connectivity in China-Central Asia relations, particularly under the Belt and Road Initiative. By 2035, upgraded infrastructure is expected not only to enhance regional logistics and reduce transport bottlenecks but also to strengthen Central Asia’s position as a vital transit corridor between China and Europe, fostering deeper economic integration across the Eurasian continent.

Chinese Mining Firm Lists on AIX in Landmark Belt and Road IPO

China’s Jiaxin International Resources Investment Limited, the world’s leading tungsten mining and production company, has successfully completed an offering of common shares on the Astana International Exchange (AIX) in Kazakhstan. The listing ceremony took place on September 5 during Astana Finance Days 2025, marking a milestone for Kazakhstan’s capital market. According to the Ministry of Industry and Construction, the transaction represents the first IPO in Central Asia denominated in Chinese yuan (CNY) and the first IPO on AIX’s dedicated Belt and Road Initiative segment. Strategic Importance of the Boguty Mine Jiaxin International is currently developing the Boguty tungsten deposit in Kazakhstan’s Almaty region. With reserves of approximately 107 million tons of ore, Boguty is ranked as the fourth-largest tungsten deposit in the world, positioning Kazakhstan as a critical player in the global supply chain for this strategic metal. At the listing ceremony, Minister of Industry and Construction Ersayin Nagaspayev emphasized the strategic value of the transaction: “This event once again demonstrates the high level of investor confidence in the Astana International Financial Center. I am confident that the example of such a large and reputable company will significantly increase the investment attractiveness of Kazakhstan and attract new foreign participants.” AIX, established in 2017 under the Astana International Financial Center (AIFC), counts among its shareholders the AIFC, Shanghai Stock Exchange, Silk Road Fund, and NASDAQ which also provides its trading platform. Record-Breaking Demand Ordinary shares of Jiaxin International were admitted to listing on August 28 on both AIX and the Hong Kong Stock Exchange (HKEX). The final offer price was set at CNY 9.93. Global demand exceeded $34 billion, with the IPO more than 220 times oversubscribed compared to the targeted amount. Confidence in Kazakhstan’s Market Assel Mukazhanova, CEO of AIX, highlighted the significance of the deal: “It has been about 10 years since Jiaxin first entered the Kazakh market with a tungsten investment project, and today we are proud to celebrate the inclusion of its shares into the AIX Official List. This achievement not only demonstrates the trust placed in our market but also sets a strong precedent for other issuers to follow.” For Jiaxin International, the dual listing underscores the growing economic ties between China and Kazakhstan. Liu Liqiang, Chairman of Jiaxin International Resources Investment Limited, stated: “This milestone not only marks a significant chapter in the company’s growth journey, but also reflects our solid step forward in deepening China-Kazakhstan economic cooperation in the context of High-Quality Belt and Road Cooperation.”

China’s Luban Workshops in Kazakhstan: Skills-Building or Strategic Leverage?

At the recent Shanghai Cooperation Organization summit in Tianjin, China inaugurated two new vocational centers in Kazakhstan under the Luban Workshop initiative. The move highlights the growing emphasis on technical education and skills development across the region. Kazakhstan’s first Luban Workshop was launched in 2023 at Serikbayev East Kazakhstan Technical University, creating a platform to advance engineering and technical training. The program has since expanded with a second workshop at the Gumilyov Eurasian National University in Astana and a third at the Academy of Logistics and Transport in Almaty. This China-led program aims to share China’s educational expertise and technical resources with partner countries, with a particular focus on cultivating a new generation of skilled workers in developing economies. The workshops are not only a vehicle for workforce training but also a symbol of the Belt and Road Initiative’s people-to-people exchange dimension. By encouraging social and educational connections, China is seeking to complement government-to-government cooperation with deeper societal ties. The choice of Tianjin for the ceremony is not a coincidence. The Luban Workshop concept originated in this city and has been actively promoted by the Tianjin municipal government. Equally notable is Kazakhstan’s central role in the program’s expansion. The Kazakh government has expressed consistent support for Chinese-led educational partnerships, underlining the importance of vocational training to its national development agenda. During his visit to a Luban Workshop in Kazakhstan in February 2024, President Kassym-Jomart Tokayev praised the initiative, saying, “I am deeply appreciative of the contributions made by Chinese universities. They have executed exemplary work. I hope to see more workshops like this in Kazakhstan.” The expansion of China’s Luban Workshop initiative offers distinct benefits for both China and Kazakhstan. For China, the workshops help shift perceptions of its educational initiatives. Unlike the Confucius Institutes, which focus on cultural and language promotion, the Luban Workshops emphasize practical, in-demand skills in fields such as manufacturing and technology. This approach allows China to project a more pragmatic and development-oriented image, fostering goodwill in a way that is less vulnerable to geopolitical criticism. A second key benefit lies in the realm of soft power. By delivering tangible skills and opportunities, Luban Workshops can positively influence public attitudes toward China in Central Asia. In Kazakhstan, such initiatives not only support technical education but also help frame Chinese investments as beneficial for local communities. Over time, this contributes to strengthening government-to-government ties and broader people-to-people connections, enhancing China’s long-term influence in the region. For Kazakhstan, the Luban Workshops provide benefits by helping to build a pool of technically skilled human capital. This directly supports the country’s industrial goals and broader economic development agenda. A more qualified workforce also enables local citizens to participate more actively in Chinese-backed projects in Kazakhstan, thereby boosting local employment. One of the recurring criticisms of China’s overseas investment projects has been the limited transfer of knowledge and skills. In many cases, local workers are confined to low-skilled, manual roles, while Chinese nationals occupy managerial and technical positions. The Luban Workshops...