EAEU - The Times Of Central Asia

Viewing results 1 - 6 of 51

Rail cargo

Navigation Seals in the EAEU: Digital Modernization or a New Barrier for Kazakhstani Businesses?

Since February 2026, the countries of the Eurasian Economic Union (EAEU), Kazakhstan, Kyrgyzstan, Tajikistan, Belarus, and Russia, have begun the phased introduction of a navigation seal system to track cargo shipments. The mechanism is designed to increase transit transparency, strengthen control over the movement of goods, and speed up logistics operations. However, business representatives warn that the new system could lead to higher logistics costs and create additional administrative barriers for carriers. Against the backdrop of the launch of the project’s first phase in Kazakhstan, debate is growing over whether digitalization will deliver the expected benefits, or become another source of pressure on the market. New Transport Control System The agreement on the use of navigation seals in the EAEU was signed by the heads of state on April 19, 2021, and ratified by Kazakhstan in 2023. The document provides for the tracking of goods transported through the territories of two or more member states of the union. In Kazakhstan, amendments were introduced to national legislation to implement the agreement, the information systems of controlling authorities were modernized, and pilot projects were conducted in both road and rail transport. Under a resolution of the Government of Kazakhstan dated September 10, 2024, the national operator of the transport tracking system is the Institute of Space Technology and Technologies LLP, which operates under the Aerospace Committee of the Ministry of Digital Development. By decision of the Eurasian Economic Commission’s Collegium dated September 23, 2025, phased transport tracking using navigation seals began on February 11, 2026, for goods transported between EAEU countries. In 2025, the national operator, together with the State Revenue Committee of the Ministry of Finance of Kazakhstan, conducted a pilot project on the use of navigation seals in transit transportation. Testing took place at road border crossings and along railway routes. The main objective was to test procedures for installing and removing seals, as well as to verify the interaction between government information systems and the Transit platform. As a result of the pilot project, more than 890 shipments involving 1,757 vehicles were tracked, and a total of 1,637 navigation seals were installed. The devices were used at key road checkpoints and along the railway route between Altynkol and Saryagash stations. Based on the results, authorities concluded that the system was technically and organizationally ready for large-scale implementation. How “Digital Seals” Work According to Osken Toishibekov, director of the Institute of Space Technology and Technologies, the system is based on the Transit information platform, which connects carriers, operators, and government agencies. He explained to The Times of Central Asia that a navigation seal is a device equipped with an electronic module and a sealing element with satellite navigation capabilities. It enables the location of a vehicle to be tracked via GPS, with data transmitted to the system through mobile networks. The device records attempts to open or damage the seal, break the sealing cable, interfere with the equipment, or trigger other abnormal events. All information is automatically transmitted to the...

TCA Interviews

Kyrgyzstan Between the Russian World and Global Chaos: An Interview With Deputy Prime Minister Edil Baisalov

Edil Baisalov is a politician who began his career as a civil-rights activist, became a prominent member of Kyrgyzstan’s non-governmental organization (NGO) sector, and is now serving as the country’s Deputy Prime Minister. In an exclusive interview with The Times of Central Asia, he explained not only how his views have changed over the years, but also how Kyrgyzstan is seeking to find its place in what he described as a rapidly changing global landscape. In Baisalov’s assessment, the global system is facing a crisis of democracy. “The world order, as we know it, is collapsing – or at least is under attack from both within and without,” Baisalov told TCA. “The era of global hypocrisy is over, and the people of Kyrgyzstan have woken up. “What various international institutions have taught us over the years – their lectures on how to develop an economy, how to pursue nation-building, and so forth – has been proven wrong. Throughout the 1990s, Kyrgyzstan was one of the most diligent students of the liberal policies promoted by the “Chicago Boys.” We followed their instructions to the letter. Kyrgyzstan was the first post-Soviet country to join the World Trade Organization in 1998, and we were the first to receive normalized trade relations with the U.S. with the permanent repeal of the Jackson-Vanik amendment. All of our previous governments followed IMF conditionality dictates to the letter, especially in deregulation, mass privatization, and all the austerity programs and budget sequestrations. We were promised prosperity; that the free markets and the invisible hand would take care of everything. But it did not work. “I remember it well: at the time, U.S. President Bill Clinton laughed at China, saying that Beijing needed to adopt certain policies, to liberalize, or that science could not prosper in a closed society. He claimed the Chinese model was doomed to fail, arguing that scientific and technological breakthroughs could only occur in a Western-style society with minimal state intervention. Yet today, we witness the triumphant rise of the People’s Republic of China. This is not only an emergence but also a return to the rightful place of a great civilization that has, for millennia, contributed enormously to humankind.” TCA: Does this mean you now see China, rather than the West, as a model for Kyrgyzstan to follow? Baisalov: It’s not about the Chinese model or any particular foreign template. What we understood is that as a nation, we are in competition with other nations. Just like corporations compete with each other, nations must look out for themselves. If our state does not actively develop industries and sciences, there is no formula for success. All those ideologies promoting the “invisible hand” – the idea that everything will naturally flourish on its own – are simply false. TCA: When did Kyrgyzstan stop taking orders from outside forces and begin making independent national decisions? Baisalov: We used to be naive about wanting to be liked by others. But not anymore. In the last five years of...

Trade

Kyrgyzstan Ready to Act as a ‘Gateway’ for Tajik Goods to EAEU and EU Markets

On February 13 in Bishkek, Chairman of the Cabinet of Ministers of Kyrgyzstan Adylbek Kasymaliev and Prime Minister of Tajikistan Kokhir Rasulzoda held the first meeting of the Kyrgyz-Tajik Intergovernmental Council. Opening the session, Kasymaliev said that 2025 marked a historic milestone in bilateral relations, citing the completion of the delimitation process of the Kyrgyz-Tajik border. He described the agreement as “a decisive factor in strengthening security and stability not only in our countries but also in the entire region.” Addressing trade and economic cooperation, Kasymaliev stated that Kyrgyzstan is ready to expand supplies of meat and dairy products, clothing and textiles, coal, glass, and sugar to Tajikistan. According to official figures, bilateral trade turnover reached $36 million in 2025, representing a nearly 24-fold increase compared to 2024. Both sides have set a target of increasing annual trade to $500 million. In the field of transport and logistics, Kasymaliev emphasized the need to improve border infrastructure and enhance the efficiency of checkpoints. Proposed measures include modernizing existing border crossings, expanding capacity, developing logistics and cargo terminals, and introducing digital solutions in customs and border administration. “Kyrgyzstan is ready to act as a trade gateway for Tajik goods to the markets of the Eurasian Economic Union (EAEU), as well as the European Union through the Generalised Scheme of Preferences Plus (GSP+),” Kasymaliev said. He also highlighted the strategic China-Kyrgyzstan-Uzbekistan railway project, which he said would significantly increase Kyrgyzstan’s transit potential and strengthen its role as a logistics hub in Eurasia. According to the Kyrgyz prime minister, the new transport corridor will create additional opportunities for Tajikistan. Kasymaliev further noted positive dynamics in tourism cooperation. In 2025, 86,000 tourists from Tajikistan visited Kyrgyzstan, a 12-fold increase compared to 2024. Kyrgyzstan reaffirmed its interest in developing joint tourism initiatives, including the possible introduction of a unified visa for third-country nationals traveling across Central Asia. Rasulzoda stated that Tajikistan places particular importance on good-neighborly relations and mutually beneficial cooperation with Kyrgyzstan, confirming readiness to further strengthen the partnership. As part of his visit to Bishkek, Rasulzoda toured a recently opened waste-to-energy plant constructed by a Chinese company. He described the facility as a promising example of modern waste recycling and expressed Tajikistan’s interest in implementing similar projects.

Migrant Rights

Kyrgyzstan Sues Russia at EAEU Court Over Migrant Families’ Health Insurance

Kyrgyzstan has filed a legal claim against Russia at the Eurasian Economic Union Court over Moscow’s refusal to issue compulsory medical insurance cards to the family members of Kyrgyz labor migrants working in Russia. The case, lodged on January 27, centers on whether Russia is meeting its obligations under the EAEU’s labor-migration agreement. Kyrgyz officials say the refusal to issue insurance to dependents violates provisions on social protection for migrants and their families inside the union. The lawsuit was announced by Azamat Mukanov, chairman of Kyrgyzstan’s Mandatory Health Insurance Fund, at a meeting of the Jogorku Kenesh’s parliamentary committee on labor, healthcare, women’s affairs, and social issues. Mukanov said Russia is in breach of the EAEU agreement by denying required policies to family members, even though the pact covers migrant workers from all five EAEU members: Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. "In practice, this provision does not work," Mukanov stated. “Because of this, it was decided to apply to the EAEU court with a request to specify the provisions of the EAEU in this direction.” Mukanov said proceedings are already underway, and a decision is “expected within two weeks.” The dispute also surfaced during the recent visit of Russian Deputy Prime Minister Alexey Overchuk to Bishkek. Kyrgyz officials raised the issue in bilateral discussions but moved to litigation after limited progress through diplomatic channels. The complaint does not dispute Russia’s right to manage its health system. Rather, it turns on whether family members of migrant workers - spouses, children, and other dependents - should be eligible for free health insurance once their breadwinners are lawfully employed in Russia. Insurance of this kind, known locally as OMS, opens access to a broad range of state-funded medical services beyond emergency care. Without it, dependents may have to pay out of pocket or buy private coverage for non-urgent treatment. Under the EAEU’s social security provisions, the right to social protection and medical care for a worker and their family should be on the same terms and conditions as for citizens of the State of employment. That language appears in the union’s treaty and its annexes regulating labor and social rights. Kyrgyz officials argue that Russian practice undermines that principle when family members are excluded. Kyrgyzstan is one of Russia’s closest partners in Central Asia, bound by deep economic, security, and migration ties. Bishkek is a member of the Eurasian Economic Union and the Moscow-led Collective Security Treaty Organization, and has generally avoided direct public disputes with the Kremlin. Kyrgyz officials have typically sought to resolve migration-related frictions quietly through bilateral channels, making the decision to take Russia to a supranational court unusual. In April 2025, Kyrgyzstan’s Foreign Ministry summoned Russia’s ambassador after police reportedly used force against Kyrgyz nationals in a Moscow bathhouse raid, a rare diplomatic protest against Russia that underscored growing domestic concern over the treatment of migrant workers. The EAEU Court in Minsk adjudicates disputes over the interpretation of union law and ensures consistent application across member states. It...

EAEU

Tokayev Sets Agenda for Kazakhstan’s 2026 EAEU Chairmanship

Kazakhstan has assumed the rotating chairmanship of the Eurasian Economic Union (EAEU) for 2026, pledging to focus on digital transformation, logistics integration, and the removal of internal trade barriers across the bloc. In a statement published on December 31, 2025, President Kassym-Jomart Tokayev outlined five key priorities for Kazakhstan’s EAEU presidency. The EAEU includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, and facilitates the free movement of goods, services, capital, and labor among its members. Artificial Intelligence and Economic Integration Tokayev identified artificial intelligence (AI) as a vital tool for deepening integration within the bloc. AI technologies, he said, are already being used to forecast trade flows and assess the impact of tariffs and trade agreements on member economies. Kazakhstan, which has set a national goal of becoming a digital nation, expressed readiness to share its expertise with other EAEU members in areas such as AI, digital regulation, and economic transformation. Tokayev proposed the adoption of a Joint Statement on the Responsible Development of Artificial Intelligence at the 2026 Eurasian Economic Forum in Astana. The document would define a new framework for digital cooperation within the bloc. Positioning the EAEU as a Eurasian Logistics Hub Highlighting the EAEU’s geographic position as a natural bridge between East and West, Tokayev called for transforming the bloc into a leading logistics hub for the Eurasian continent. He emphasized the need to modernize transport, customs, and logistics infrastructure, and to develop international transport corridors and multimodal transport solutions. He also proposed an integrated, AI-based cargo flow management system across the EAEU to reduce delivery times, cut costs, and enhance the bloc’s global competitiveness in logistics. Digitalizing Industry and Agriculture Calling industry and agriculture the economic foundation of the EAEU, Tokayev urged deeper cooperation to produce globally competitive products. While financial mechanisms for joint projects already exist, he argued that more emphasis should be placed on innovation-led initiatives. He proposed launching demonstration centers, automation startups, and competence hubs to drive digitalization at both enterprise and farm levels. Barrier-Free Trade as a Core Principle Tokayev stressed the elimination of administrative and regulatory barriers within the bloc as a central priority. He criticized artificial restrictions on trade, constraints on the movement of citizens, and long freight queues at borders. He also warned against the use of customs procedures and regulatory controls, including sanitary, veterinary, and phytosanitary measures, as tools of political or economic leverage. To address this, he proposed deploying AI to monitor legislative initiatives across the EAEU and flag potential internal trade barriers at an early stage. Expanding External Economic Ties Kazakhstan’s chairmanship will also focus on expanding the EAEU’s external partnerships. In 2025, the bloc signed Free Trade Area agreements with Mongolia and Indonesia and concluded an Economic Partnership Agreement with the United Arab Emirates. Tokayev said greater attention will be paid to building economic ties with countries in the Global South, the Arab world, Southeast Asia, Africa, and regional economic organizations. Macroeconomic Context Tokayev’s agenda is being launched against a backdrop of solid macroeconomic performance...

Excise Tax Revenues

Alcohol and Tobacco Lead Kyrgyzstan’s Excise Tax Revenues

Alcohol and tobacco products continue to be the primary sources of excise tax revenue for Kyrgyzstan’s state budget, according to the Ministry of Finance’s final report on budget revenues for the first 11 months of 2025. The report highlights excise taxes as one of the most stable and predictable sources of state income. From January through November 2025, total excise tax revenues exceeded $222 million. Alcohol producers remain the top contributors. During the reporting period, they transferred $38 million to the budget. Vodka producers accounted for the largest share at $25.5 million, while breweries contributed approximately $9.4 million. Producers of brandy, wine, and other alcoholic beverages paid significantly less. As a result, the alcohol sector continues to lead all industries in excise tax contributions. Despite reduced domestic production, tobacco companies dominate excise revenues from imports. In the same period, excise taxes on tobacco products imported from Eurasian Economic Union (EAEU) countries brought in $101 million, with an additional $4.4 million from imports originating outside the EAEU. Revenue is no longer limited to traditional cigarettes. The report notes contributions from heated tobacco products and electronic cigarettes. While their current share remains modest, steady annual growth in excise payments for these categories points to shifting consumer habits. Kyrgyz authorities consider excise taxes on alcohol and tobacco not only a fiscal mechanism, but also a tool of social policy. Gradual increases in tax rates are intended to simultaneously boost revenue and, according to government projections, reduce consumption of harmful products. The state's role in the alcohol sector warrants particular attention. In early 2023, the country’s largest alcohol producer, Ayu, along with its distilleries and vodka factories, was voluntarily transferred to state ownership. Since then, smaller industry players have voiced concern that the government may incrementally tighten its grip on the sector and effectively establish a monopoly. Overall, the data confirm that so-called “harmful” goods, alcohol and tobacco, remain the most lucrative sources of excise tax revenue for the Kyrgyz budget.