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Bilateral Relations

Trade and Migrant Workers Fuel Serbia’s Growing Ties with Uzbekistan

BELGRADE – While seeking to join the European Union – a process that has been going on for nearly two decades – Serbia is also moving to build closer relations with Central Asia. After expanding cooperation with Kazakhstan earlier this year, the Southeast European nation is now looking to replicate that momentum in its relations with Uzbekistan. At first glance, the two countries seem to have little in common. Serbia is a relatively small economy with strong ties to European markets, while Uzbekistan is Central Asia’s most populous nation and one of the region’s fastest-growing economies. Yet the two states are actively expanding their cooperation. On September 8, Serbian President Aleksandar Vucic and his Uzbek counterpart, Shavkat Mirziyoyev, signed a joint statement establishing a strategic partnership between Belgrade and Tashkent. Uzbekistan’s leader’s visit to Serbia comes less than a year after Vucic made his first official trip to the Central Asian state. In the meantime, the Serbian government announced its plans to open an embassy in Tashkent – a move that will undoubtedly further strengthen diplomatic and economic ties between the two countries. While the economy was at the top of the agenda during Vucic and Mirziyoyev’s talks in Belgrade, the meeting also carried significant political importance for the Serbian leader. Mirziyoyev arrived in Serbia on September 7, when thousands of people gathered to attend the funeral of former Bosnian Serb military commander Ratko Mladic. His death and the public tribute to him have reopened divisions over Serbia’s wartime legacy and further complicated its relationship with the European Union. Vucic had a long-standing reason not to attend the ceremony: he was due to meet Mirziyoyev at the airport. However, multiple opposition figures accused the Serbian leader of using Mirziyoyev’s visit as a justification for staying away, with one alleging that the visit had actually been rescheduled to give him an excuse. The following day, the two leaders, as well as Serbian and Uzbek delegations, signed 20 agreements in various fields, from digitalization and renewable energy to trade, transport, agriculture, tourism, healthcare, and culture. Vucic even hinted that Serbia aims to expand military ties with Uzbekistan. As he stressed, Belgrade plans to develop long-range ballistic missiles over the next year and has invited Uzbekistan to cooperate in this area. Meanwhile, the Southeast European nation is expected to establish direct flights between Belgrade and Tashkent within the next seven to eight months. More importantly, Serbia, which has free trade agreements with the European Union, China, Turkey, the UK, and the Eurasian Economic Union, as well as regional Balkan nations, hopes to strike such a deal with Uzbekistan. According to Jagoda Lazarevic, the country’s Minister of Internal and Foreign Trade, if the process succeeds, Serbia would become the first European country to enter into free trade talks with Uzbekistan. However, bilateral trade between the two nations remains relatively small, reaching $41.8 million in 2025. By comparison, according to data from Kazakhstan’s Ministry of Trade and Integration, trade between the largest Central Asian country...

Automotive Manufacturing

Kazakhstan Plans BYD Assembly and New Domestic Vehicle Brands

Kazakhstan plans to begin assembling passenger vehicles for Chinese electric vehicle manufacturer BYD next year and launch buses under a domestic brand as it expands local vehicle production and develops its electric mobility sector. The announcement came during a government meeting, where Astana Group chairman Nurlan Smagulov said the company had reached agreements with BYD following negotiations held in Shanghai earlier this month. Production of BYD passenger vehicles is expected to begin in 2027. “Next year we will begin producing BYD passenger cars. The company manufactures only hybrid and fully electric vehicles,” Smagulov said, noting that BYD already operates a production facility in neighboring Uzbekistan and is seeking to expand its presence in the Kazakh market. Prime Minister Olzhas Bektenov said the government would support the project and urged the company to accelerate implementation, describing domestic electric vehicle production as a priority for Kazakhstan’s industrial policy. Astana Group also plans to introduce a new bus brand, Astana, developed jointly by Kazakh and Chinese engineers. Assembly of diesel- and natural gas-powered buses is scheduled to begin in November, while production of electric buses is expected to start in March next year. Adil Shaikemelov, deputy director of SaryarkaAvtoProm, part of the Allur Group, said the company is developing a domestic passenger car brand with an undisclosed international partner. He said the first vehicle under the new brand could enter production within three to four years. The government is working with BYD to develop a nationwide network of high-speed charging stations, Industry and Construction Minister Yersaiyn Nagaspayev said. Kazakhstan is also expanding its automotive workforce. Science and Higher Education Minister Sayasat Nurbek said about 4,000 students are enrolled in automotive-related programs at 19 universities, while more than 3,000 government scholarships have been allocated this year. Additional specialists are training abroad through the Bolashak scholarship program. As previously reported by The Times of Central Asia, Kazakhstan is also preparing to manufacture autonomous SITRAK heavy trucks as part of broader efforts to localize vehicle production and deepen industrial cooperation with Chinese manufacturers.

International transport

Kazakhstan Seeks to Strengthen Industrial Base Through Local Locomotive Manufacturing

Kazakhstan is expanding its railway engineering sector as a key pillar of its industrial policy aimed at reducing import dependence and strengthening technological sovereignty. The machinery industry remains one of the main indicators of an economy’s technological maturity. For Kazakhstan, its development represents not only domestic industrialization but also the strengthening of the country’s position as an exporter of high-value-added products. Railway engineering plays a particularly important role in this system. One of the anchor investors in the sector is Wabtec Corporation. Recently, Kazakhstan signed contracts with the company worth $4.2 billion. These agreements include the supply of 300 locomotives through 2036, as well as service maintenance, the implementation of digital systems, and equipment repair. On the sidelines of the 13th Forum of Machine Builders of Kazakhstan, Shyngys Altayuly, Product Director at Wabtec Corporation LLP, told The Times of Central Asia about the expansion of production localization and plans to manufacture a new generation of locomotives. Since 2009, the “Locomotive Kurastyru Zauyty” plant in Astana has been producing freight TE33A(S) Evolution locomotives, passenger TEP33A models, and shunting TEM11 units. Over this period, more than 700 locomotives have been manufactured for the state railway company Kazakhstan Temir Zholy, including over 40 units exported to CIS countries and neighboring markets. “With the introduction of our Evolution series TE33A locomotives in Kazakhstan, lifecycle costs have been reduced while ensuring high operational readiness across the country’s locomotive fleet,” Altayuly noted. He also emphasized that over the past 25 years, 75% of all mainline AC diesel locomotives purchased globally have been produced by Wabtec. From Imports to Sovereignty The plant has localized the production of all major components, including the main frame, diesel compartment, driver’s cab, generator, equipment and air compartments, bogie frame, and other elements. This reduces dependence on external suppliers amid unstable global logistics. At the same time, the facility is expanding cooperation with local suppliers. Kazakh enterprises produce elements of the running gear, safety systems, electronics, and a range of other components, including metal structures, driver’s cabins, wheels, and safety system components. “In this way, we are building a domestic value-added engineering chain. This includes not only locomotive production itself but also the entire component base used in assembly,” Altayuly explained. According to him, the localization level has already reached 40%, and further expansion is underway. Components planned for future localization include casting, lighting systems, heated windshields, driver’s seats, piping products, and cable systems. “Once a company becomes a supplier to JSC ‘LKZ,’ it gains access to international markets. Wabtec operates in 50 countries, and our products are used in more than 100 countries worldwide. Therefore, any enterprise that completes this process and becomes a reliable supplier will gain access to global markets,” Altayuly added. Debut of a New Locomotive The next stage of development will be the launch of the new T33AT locomotive, scheduled for production in 2027. The project is being implemented as part of the Wabtec-KTZ partnership and reflects a strategy of integrating global technologies into the national industry....

U.S.-Kazakhstan Relations

Rubio Meeting Highlights Kazakhstan’s Growing U.S. Agenda

U.S. Secretary of State Marco Rubio’s April 15 meeting with senior Kazakh officials in Washington gave fresh visibility to a relationship that both sides increasingly frame in economic as well as diplomatic terms. At a time when Washington is trying to give its Central Asia policy more practical shape, Kazakhstan is a key U.S. partner in the region. Rubio met President Tokayev’s Special Representative for Negotiations with the United States, Erzhan Kazykhan, and Deputy Prime Minister and Minister of National Economy, Serik Zhumangarin. The talks covered ways to expand economic ties between the United States and Kazakhstan, as well as Kazakhstan’s role in peacemaking and regional initiatives. Rubio also welcomed Kazakhstan’s participation in the C5+1 platform and reaffirmed U.S. support for the country’s “sovereignty, independence, and territorial integrity.” In a post on X, Rubio said the talks focused on strengthening commercial ties and advancing regional cooperation. That language put trade, investment, and regional economic coordination at the center of the meeting. Launched in 2015, the C5+1 began as a diplomatic framework linking the United States and the five Central Asian states. It later broadened into a more structured platform, with working groups on trade, energy, and the environment, and with growing emphasis on logistics, diversification, supply chains, and investment. The rise of the B5+1 reinforced that shift by giving business a more formal place in the relationship. By late 2025, the format placed more emphasis on deliverables, including infrastructure, funding mechanisms, and cooperation on mineral processing and research. That shift has also been visible in Kazakhstan’s own dealings with Washington. During President Kassym-Jomart Tokayev’s visit to the United States in November 2025, the Kazakh delegation signed 29 bilateral agreements worth about $17 billion, including a memorandum on critical minerals cooperation and major commercial deals in aviation, agriculture, and mining. The same visit underlined how closely economic diplomacy and strategic supply concerns are now tied together. Kazakhstan has attracted roughly $100 billion in cumulative U.S. investment since independence, and critical minerals have moved closer to the center of the relationship as Washington looks for secure supply chains beyond China and Russia. Kazakhstan has attracted over $151 billion in net foreign direct investment since independence. Rubio’s talks with Zhumangarin and Kazykhan came after months of stronger U.S.-Kazakhstan economic contact. Kazakhstan has a larger economic profile than any other Central Asian state, and its role in energy, critical minerals, investment, and transit gives it a prominent place in Washington’s regional thinking. That makes Astana a natural focus for any U.S. push to deepen commercial ties in Central Asia. The sovereignty language in the U.S. readout was also not incidental. For Kazakhstan, public backing from Washington on sovereignty, independence, and territorial integrity carries political weight in a region where questions of borders, pressure, and strategic dependence remain sensitive. Astana’s multi-vector foreign policy is built on preserving room for maneuver among larger powers. High-level engagement in Washington supports that strategy and signals that closer U.S. ties can sit alongside Kazakhstan’s broader balancing act. The Washington...

Foreign Affairs

Kazakhstan’s Foreign Minister Visits Caucasus to Expand Trade and Transit Ties

Kazakhstan’s Foreign Minister, Yermek Kosherbayev, conducted a diplomatic tour of the South Caucasus, Armenia, Azerbaijan, and Georgia, as part of Astana’s efforts to strengthen trade and economic ties, expand investment cooperation, and develop key transit routes between Central Asia and Europe. Armenia: Trade, Investment, and Digitalization In Yerevan, Kosherbayev held meetings with Prime Minister Nikol Pashinyan, President Vahagn Khachaturyan, and Foreign Minister Ararat Mirzoyan. He conveyed greetings from Kazakh President Kassym-Jomart Tokayev and highlighted the high level of bilateral cooperation. “Thanks to the efforts of the leaders, bilateral relations between Kazakhstan and Armenia have reached a qualitatively new level,” Kosherbayev said. He noted that the evolving geopolitical situation creates new opportunities for both economies. Kazakhstan reaffirmed its interest in long-term supplies of agricultural products, including grain and meat, as well as in expanding transport links and launching direct flights. The two sides discussed the implementation of the Roadmap for Trade and Economic Cooperation for 2026-2030. More than 100 enterprises with Kazakh capital are registered in Armenia, while over 400 Armenian companies operate in Kazakhstan, indicating growing business activity. Artificial intelligence, digitalization, nuclear energy, pharmaceuticals, higher education, and healthcare were identified as priority areas for cooperation. Particular attention was given to the establishment of a branch of the TUMO educational center in Astana. Azerbaijan: Energy and Transport Corridors In Azerbaijan, Kosherbayev met with President Ilham Aliyev and Foreign Minister Jeyhun Bayramov. Discussions focused on strengthening allied relations and expanding cooperation in energy, industry, and logistics. “Kazakh-Azerbaijani relations are characterized by steady and progressive development and possess significant potential. We express our firm commitment to further strengthening our alliance with brotherly Azerbaijan,” the minister said. Bilateral trade has increased sharply over the past five years, reaching $470.7 million in 2025. The two sides agreed to work toward raising this figure to $1 billion. Particular attention was paid to the development of the Trans-Caspian International Transport Route, a key element in diversifying Kazakhstan’s export routes. For Astana, Azerbaijan is the pivotal Caspian link in the westward corridor connecting Kazakhstan to the South Caucasus and on to European markets. The parties also discussed projects to lay a fiber-optic communication line and a subsea power cable across the Caspian Sea to strengthen regional energy and digital connectivity. These projects fit a broader strategy to connect Central Asian energy and data infrastructure more closely with Azerbaijan and, through it, with Europe. In addition, both sides highlighted opportunities to expand the transit of Kazakh energy resources through Azerbaijani territory, alongside growing cultural, humanitarian, and educational exchanges. Georgia: Investment and a Logistics Hub The final stop was Georgia, where the minister met with President Mikheil Kavelashvili and Foreign Minister Maka Bochorishvili. “Kazakhstan views Georgia as a reliable political and economic partner in the South Caucasus,” Kosherbayev said. The officials noted positive momentum in economic cooperation. Kazakh investment in Georgia has exceeded $600 million, with companies active in logistics, energy, and finance. Georgia’s importance to Kazakhstan lies not only in bilateral trade and investment, but in its role as...

Bilateral Trade

Ukrainian Deputy Foreign Minister: Astana and Kyiv Seeking to Restore Trade

Ukrainian Deputy Foreign Minister, Olexandr Mishchenko, discussed prospects for trade and economic cooperation, including the possible resumption of the Intergovernmental Commission on Trade and Economic Cooperation, during a meeting on April 2 with Serik Zhumangarin, Kazakhstan’s Deputy Prime Minister and Minister of the National Economy. In comments to The Times of Central Asia, the Ukrainian Foreign Ministry representative said Astana and Kyiv are aiming to restore bilateral trade. Trade between Kazakhstan and Ukraine reached approximately $5.5 billion annually before the war but has since declined sharply. However, according to Kazakh data, the situation has begun to improve. The Ministry of National Economy reported that trade turnover between the two countries totaled $415.8 million in 2025, up 5.4% from $394.3 million in 2024. Kazakhstan’s main exports to Ukraine include ferroalloys, fertilizers, and rice, while imports from Ukraine consist of chocolate and other cocoa products, flour and confectionery, medicines, cheese, and cottage cheese. [caption id="attachment_46523" align="aligncenter" width="960"] Image: Ukrainian Embassy in Kazakhstan[/caption] Astana and Kyiv also intend to expand the range of goods traded. During interdepartmental consultations held in Astana, the sides discussed trade, investment, agriculture, logistics, and humanitarian cooperation, with a focus on export diversification. They agreed to intensify business contacts, consider resuming the Intergovernmental Commission, and expand cooperation in priority sectors, particularly the agro-industrial complex. Mishchenko said the countries also plan to strengthen cooperation in the energy sector and restore logistics chains. Until 2022, Ukraine provided key transit routes for Kazakh exports to Europe. Before 2022, a significant share of Kazakhstan’s westbound trade relied on routes passing through or near Ukrainian infrastructure. The war disrupted those pathways and forced a broader regional shift toward alternative corridors, including routes across the Caspian and South Caucasus, which remain longer, more complex, and often more expensive. “Territorial integrity remains the cornerstone of our cooperation. We are deeply grateful to Kazakhstan for its humanitarian aid: more than 600 tons were collected, particularly during the winter. This support was critical to Ukraine’s resilience,” Mishchenko said. The visit marked the first trip by a senior Ukrainian government representative to Kazakhstan in recent years. A large delegation of Ukrainian entrepreneurs accompanied Mishchenko, seeking to re-establish business ties with Kazakh partners. “Ukraine is already looking toward the post-war future, and concrete proposals for cooperation, including in energy, are being developed through bilateral engagement with Kazakhstan,” Mishchenko told The Times of Central Asia. “Kazakhstan’s energy resources create opportunities for mutually beneficial cooperation, including potential integration into Ukrainian markets.” Mishchenko noted that a Ukrainian business mission, the first in many years, visited Kazakhstan, including the Pavlodar Region, a major industrial hub with significant heavy industry and energy capacity. “This creates real demand for modernization, engineering solutions, and equipment supplies,” he said. The delegation held meetings with government officials, financial institutions, and business representatives, alongside regional visits aimed at launching joint projects. In Astana, talks were held with the leadership of Baiterek National Management Holding. Ukrainian entrepreneurs also visited the Astana International Financial Centre and the city administration, where they were briefed...