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e-Commerce

Kyrgyzstan E-Commerce Platform to Be Built With Chinese Firm

Kyrgyzstan and China are set to create a new e-commerce platform using Kyrgyz Post’s network to deliver orders across the country. For Kyrgyz businesses, the project promises access to foreign buyers, although it remains unclear how the platform’s export component will work. The agreement was signed on August 28 by state-owned Kyrgyz Post and China’s Kashgar Fengxin Trading Co., Ltd. at the Kyrgyz-Chinese Investment Forum in Bishkek. The platform is expected to integrate with the existing postal and logistics infrastructure. The project also includes digital services and content using artificial intelligence technologies. That said, details were light, and the announcement gave no launch date, cost, or financing terms. For Kyrgyz Post, the project is a continuation of efforts to transform a traditional postal operator into infrastructure for online commerce. The company already provides services linked to Ozon – its website, for example, features a dedicated delivery calculator for the Russian marketplace. The new platform is expected to use the existing network of postal and logistics facilities for nationwide delivery. The sector itself is growing rapidly. According to Chairman of the Cabinet of Ministers Adylbek Kasymaliev, Kyrgyzstan’s domestic e-commerce market was estimated at $525 million in 2025, about 15% more than a year earlier. In the first half of the year alone, around one million online purchases were made worth 1.7 billion soms ($19.4 million). At the same time, a significant share of e-commerce is already linked to foreign platforms. Russian marketplaces Wildberries and Ozon operate in Kyrgyzstan, while Chinese platforms Taobao and Alibaba are popular, and Temu is also available to Kyrgyz consumers. Amazon and eBay are not fully available in the country. For Kyrgyzstan, the reverse flow – selling its own goods abroad – is therefore of particular interest. Kyrgyz Post specifically points to this opportunity, saying the new platform should help local entrepreneurs promote their products and expand sales opportunities in foreign markets. The operator has not yet specified which countries will be accessible to sellers or whether they will gain direct access to Chinese consumers. This is not Kyrgyzstan’s first attempt to create dedicated infrastructure for cross-border e-commerce. The government, together with the United Nations Development Programme, has been working on at regulatory framework for an E-commerce Park, intended to support companies operating in the sector. Separately, the government says a preferential tax regime has been introduced for e-commerce participants, with a tax of 2% of turnover and exemptions from VAT, income tax, and sales tax. The partnership with the Chinese company comes amid a broader shift in Kyrgyzstan’s economic relationship with Beijing. According to the Kyrgyz government, direct investment from China totaled $1.85 billion between 2021 and 2025. At the same forum, officials said they wanted to gradually move beyond a relationship dominated by trade toward joint production, technology localization, and cooperation between Kyrgyz and Chinese companies in third-country markets. The government also links this broader goal to the China-Kyrgyzstan-Uzbekistan railway. The planned route starts in Kashgar, crosses into Kyrgyzstan through the Torugart Pass and runs...

e-Commerce

Kazakhstan E-Commerce Grows as Shoppers Spend over $8 Billion in 2025

Kazakh consumers spent 3.77 trillion tenge (about $8.2 billion) on online purchases in 2025, roughly 50% more than two years earlier. E-commerce now accounts for 14.3% of the country’s retail market, with most sales taking place through marketplaces such as Kaspi.kz, Wildberries, and Ozon. A marketplace is a digital platform that brings together products from multiple sellers rather than operating as a single retailer’s online store. In 2025, they accounted for 86% of online retail sales, up from 84.9% a year earlier, according to Kazakhstan’s Bureau of National Statistics. The share of sales through retailers’ own websites fell from 15.1% to 14%, although their turnover still rose in absolute terms. The online shopping basket is changing as well. Phones and gadgets remain the largest category, accounting for 17.1%. Clothing, footwear, and sporting goods make up 12.4%, household goods 12.1%, home appliances 10.3%, and food 7.4%. Growth in the grocery segment is changing delivery requirements. Five dark-store projects – facilities used to process online orders – were built in Almaty, Astana, Karaganda, and Aktobe last year. Marketplaces also installed 2,300 new parcel lockers. The rapid growth of the market has been supported by the widespread use of cashless payments, banking apps, and retail fintech. Domestic platforms are developing alongside major foreign players, intensifying competition for Kazakh consumers. But the presence of large cross-border platforms also creates additional logistical risks. In July, Ukrainian strikes on Wildberries logistics facilities in Russia affected Kazakh sellers that relied on the company’s Russian infrastructure. Following the attacks, Wildberries began searching for additional warehouse capacity in Kazakhstan, where the company is already developing logistics complexes in Almaty and Astana. Expanding domestic warehousing and infrastructure can shorten delivery times and reduce the dependence of some trade flows on logistics centers abroad. New Kazakh players are also emerging. In Karaganda, for example, the Teez marketplace is developing its own warehouse infrastructure and nationwide delivery network. The market’s growth has also brought problems for sellers, with Kazakh entrepreneurs citing difficulties with international payments and double taxation among the main barriers to growth. For small businesses, marketplaces provide access to a large customer base, but they also make sales dependent on the platform’s commissions and logistics. The rules for foreign players are changing as well. Since January 1, 2026, foreign marketplaces serving Kazakh consumers have been required to comply with new tax laws. The VAT rate for foreign platforms has risen from 12% to 16%. The legislation also allows Kazakhstan to suspend access to platforms that ignore registration notices. The government is anticipating further e-commerce growth. The Ministry of Trade’s official target is to increase its share of retail turnover to 18.5% by 2029. In 2024, the market was worth about 3.2 trillion tenge and accounted for 14.1% of retail trade, the Ministry of Trade and Integration said its volume had increased roughly fivefold since 2020. E-commerce is now expanding from a much larger base. Marketplaces already account for the overwhelming majority of online sales, so the next stage of market development will depend not...

e-Commerce

After Wildberries Drone Attacks, Kazakhstan Minister Urges Support for Local Marketplaces

Kazakhstan's Trade and Integration Minister Arman Shakkaliyev has encouraged consumers to shop on domestic online marketplaces, urging them not to base their purchases solely on the lowest prices offered by foreign platforms and invoking what he called “economic patriotism.” Speaking to reporters, Shakkaliyev advised consumers to use marketplaces they trust, saying that domestic platforms offered greater assurance that purchases would be delivered. He was responding to questions about the disruption affecting Wildberries after drone attacks on its Russian facilities. On August 2, Ukrainian drones struck a Wildberries warehouse in Novosemeykino, in the Samara region, causing a fire. The following day, Wildberries said a separate logistics facility in the Vladimir region had also caught fire following an attack. No casualties were initially reported at either site. Shakkaliyev's remarks come amid reports that Wildberries is seeking additional warehouse capacity in Kazakhstan. According to sources familiar with the discussions, the company is looking for approximately 100,000 square meters of warehouse space in Kazakhstan, although no single vacant facility of that size is currently available on the local market. The issue has also drawn attention in Moscow. Speaking on the sidelines of the Third Russia-Kazakhstan Media Forum, Russian Deputy Foreign Minister Mikhail Galuzin said efforts to integrate Russian and Kazakhstan-based online marketplaces had begun well before the recent attacks on logistics infrastructure and were continuing. He noted that more than 100,000 suppliers from Kazakhstan were registered on the Russian marketplaces Wildberries and Ozon, another e-commerce giant. Kazakhstan's Ministry of Trade and Integration has previously stated that it has not yet received an official request from Wildberries to establish additional warehouse facilities in the country. The ministry said that any such proposal would be reviewed in accordance with Kazakhstan's legislation and national interests. It added that all market participants would be subject to the same rules, without special preferences or exemptions.

Marketplace

Kazakhstan Yet to Receive Wildberries Warehouse Request

Kazakhstan’s Ministry of Trade and Integration has said it is prepared to consider a request from RWB, the company formed through the merger of online marketplace Wildberries and outdoor advertising operator Russ, to establish additional warehouse capacity in the country. The company’s reported interest comes amid continuing drone attacks on logistics infrastructure in Russia. The ministry said it has not yet received any formal request from Wildberries. Should one be submitted, it would be considered in accordance with Kazakhstan’s legislation and the country’s national interests. “To date, the Ministry of Trade and Integration has not received any official request from Wildberries regarding the placement of additional warehouse facilities in the Republic of Kazakhstan. If such proposals are submitted, they will be considered in accordance with the legislation of the Republic of Kazakhstan and with due regard for the country’s national interests,” the ministry said. The ministry added that it supports investment projects aimed at developing modern logistics infrastructure, creating jobs, and expanding cross-border e-commerce. It also stressed that all market participants are subject to the same rules under Kazakhstan’s legislation and the regulations of the Eurasian Economic Union, with no special preferences or exemptions. As The Times of Central Asia previously reported, RWB began looking for warehouse space in Kazakhstan after a series of drone attacks on logistics facilities in Russia that began on July 18. The company is seeking approximately 100,000 square meters of warehouse space, although market participants say there is currently no single vacant logistics complex of that size in Kazakhstan. The expansion of logistics infrastructure has become a priority as Kazakhstan’s online retail market grows. The Ministry of Trade and Integration says the sector is now more than seven times larger than five years ago, surpassing $6.1 billion and accounting for 14.1% of retail turnover. By 2030, the government wants online sales to account for 20% of the domestic retail market.

e-Commerce

Wildberries Kazakhstan Sellers Count Losses After Ukraine Strikes

Over the past month, Ukrainian forces have carried out a series of strikes on the facilities of Russia's largest online marketplace, Wildberries. As with previous attacks on Russia's energy infrastructure, including that of the Caspian Pipeline Consortium (CPC), the consequences are again being felt by citizens and businesses in neighboring countries, highlighting the extent to which the war's economic effects now extend far beyond the battlefield. Since July 18, Ukrainian strikes have hit Wildberries logistics facilities in Moscow, St. Petersburg and Crimea, as well as in Tver and Tambov Oblasts. According to the Russian business daily Kommersant, the attacks damaged logistics facilities representing more than 10% of Wildberries’ total warehouse floor space, with a combined area exceeding 550,000 square meters. Alongside Wildberries, another major Russian marketplace, Ozon, also operates in Kazakhstan. Its logistics network has so far not been affected by similar attacks. Together, the two companies account for more than 85% of Kazakhstan’s cross-border online marketplace segment, according to data presented in June by Mazhilis deputy Aituar Koshmambetov during parliamentary discussions on the development of e-commerce. E-commerce has become one of Kazakhstan’s fastest-growing sectors, expanding roughly fivefold since 2020. The market was valued at $6.7 billion in 2025, and the government aims to increase that figure to $19.5 billion by 2029. Against that backdrop, Kazakh sellers were always likely to be affected sooner or later. On Tuesday, Kazakhstan’s National Chamber of Entrepreneurs, Atameken, said it had begun collecting information on Kazakh businesses affected by the attacks on Wildberries facilities in Russia. According to preliminary estimates by the Ecommerce-KZ Association, more than 100 member companies suffered losses as a result of fires at the marketplace’s logistics centers. Their combined losses exceed $2.1 million. Following an request from Atameken to Kazakhstan’s Ministry of Trade and Integration, the ministry has approached Russian authorities and the Wildberries for further information. For neighboring Kyrgyzstan, the situation surrounding Wildberries has proved even more painful. Compensation for lost goods is now being discussed at the level of the country’s economy minister, who is negotiating with the marketplace’s management. Much of Kyrgyzstan’s garment industry and trading sector now depend on Wildberries. According to the country’s association of garment manufacturers, individual producers have suffered losses ranging from 1 million to 100 million Kyrgyz soms, or approximately $11,400 to $1.14 million. While businesses in Russia, Kazakhstan, and Kyrgyzstan are counting their losses, Wildberries itself appears to be reconsidering its logistics strategy. According to a report in Kommersant, the company has begun searching for vacant warehouse space in Kazakhstan and is prepared to lease virtually all of the country’s available modern warehouse capacity. According to NF Group, only 5.8% of Kazakhstan's modern warehouse space was vacant at the end of 2025. Stanislav Akhmedzyanov, managing partner at IBC Global, said the Kazakh market has no single warehouse facility of 100,000 square meters, which is reportedly the amount of space Wildberries requires. As of the end of June 2026, only 130,000 square meters of warehouse space remained available across the country, scattered...

Shadow Economy

Kazakhstan Targets Further Reduction in Shadow Economy With AI-Driven Monitoring

Kazakhstan’s government has approved a 2026–2028 Action Plan to reduce the shadow economy through greater use of artificial intelligence and the digital tenge. The plan also calls for further digitalization in sectors most vulnerable to informal economic activity. The government hopes that the measures will reduce the shadow economy's share of GDP from 16.7% in 2025 to 13.8% by 2028, a decline of nearly three percentage points over the next three years. According to the Prime Minister's Office, Kazakhstan has already modernized 20 government information systems in recent years, dismantled the financial infrastructure supporting illegal online casinos with a turnover of approximately $4.2 billion, and prevented unjustified public spending totaling around $765 million. Officials said these efforts helped reduce the shadow economy’s estimated share of GDP from 24% in 2019 to 16.7% in 2025. "The main objective of the Action Plan is to reduce the shadow economy, ensure fair competition, increase business transparency, and boost budget revenues without imposing new obligations on entrepreneurs," the government said. A unified AI-powered monitoring platform will be central to the strategy. The system will combine data from government agencies to identify signs of hidden economic activity and flag risks in real time. Officials say this will help prevent violations before they cause budget losses. The plan contains 53 measures focused on improving economic transparency and accelerating digitalization in sectors with elevated risks of informal activity. The government has identified trade, construction, transport, agriculture, healthcare, and education as priority sectors for the new system. Retail trade will be another focus. The government plans to continue developing the Digital Bazaar, an electronic platform launched in late 2024 to bring Kazakhstan’s traditional markets and trading venues online. More products will be added to the mandatory digital-labeling system, while the National Product Catalogue will be extended. These measures are intended to make supply chains more transparent and curb counterfeit goods. They are also expected to create fairer conditions for businesses. Controls over excise goods and socially important products will be further automated. The government also plans tighter oversight of e-commerce platforms and online marketplaces, along with closer integration of state information systems. In the social sector, digital tools will be used to monitor the quality of services and track prices. They will also help authorities oversee public spending. The government plans to increase the use of the digital tenge, Kazakhstan’s central bank digital currency. It is already being used in selected government programs to improve the traceability of public funds. As previously reported by The Times of Central Asia, the digital tenge officially became a legally recognized form of Kazakhstan's national currency on July 18, providing the legal foundation for its broader use in government payments and public finance.