Economic Cooperation - The Times Of Central Asia

Viewing results 1 - 6 of 158

Middle Corridor

Middle Corridor Debate Shifts From Geopolitics to Commercial Viability

For several years, interest in the Middle Corridor has risen sharply amid the war in Ukraine, tensions around Iran, sanctions, instability on maritime routes, and governments’ efforts to diversify supply chains. The route runs through Central Asia, the Caspian Sea, and the South Caucasus. The way the issue is framed is now changing. The debate over whether this route is needed is moving into the background. A more important question is whether the Middle Corridor can develop from a politically attractive alternative into a sustainable transport and economic system that businesses will use not because of geopolitical circumstances, but because it is competitive. In this context, the 7th Caspian Business Forum, held in New York on September 22 and organized by the Caspian Policy Center (CPC), provided a useful snapshot of this shift. Representatives of the United States, Kazakhstan, Kyrgyzstan, Azerbaijan, Georgia, Turkey, and major businesses took part. The discussions focused on the Middle Corridor, the Trump Route for International Peace and Prosperity (TRIPP), energy, critical minerals, and attracting private capital. Freight volumes on the Trans-Caspian International Transport Route rose from 0.8 million tons to 4.5 million tons in the seven years to 2025, according to Kazakhstan’s Ministry of Transport. The route carried about 77,000 twenty-foot equivalent units of containerized cargo in 2025, and Kazakhstan aims to raise that total to 300,000 by 2029. These volumes are substantial, but they show the limits of the Middle Corridor’s current capacity. It has not yet become a replacement for all traditional overland routes between China and Europe. The World Bank has noted that the Middle Corridor is more than a transit bridge between China and the European Union (EU). Growth in trade among the countries along the route, as well as their trade with Europe, could be equally important. With the necessary investment and organizational reforms, it estimates, trade flows could triple and transport times could roughly halve by 2030. The route passes through several countries, crosses the Caspian Sea, requires transfers between different modes of transport, and depends on coordination among railway operators, ports, customs services, and tariff policies. A study of transport connectivity between Europe and Central Asia by the European Bank for Reconstruction and Development, at the request of the European Commission, identified 33 priority investment needs in physical infrastructure and seven soft-connectivity measures, ranging from the digitalization of transport documents to the harmonization of tariffs, customs, and border procedures. The CPC forum addressed these issues as well. CPC President Efgan Nifti put it this way: “For the Corridor to reach its full potential, it must increasingly function as one integrated system – with harmonized border procedures, coordinated ports and railways, and digitalized documentation.” Kazakhstan’s position reflects this approach. The country’s presidential representative for negotiations with the United States, Erzhan Kazykhan, called the Middle Corridor a “strategic investment in the future” connecting Kazakhstan with the South Caucasus, Turkey, and Europe. He said Astana views TRIPP as a logical extension of the system that could shorten the route to European markets...

Central Asia-South Korea summit 2026

South Korea and Uzbekistan Sign 13 Agreements as Seoul Deepens Cooperation Across Central Asia

Uzbekistan and South Korea signed 13 cooperation documents during President Shavkat Mirziyoyev’s visit to Seoul on September 14, covering areas including critical minerals, artificial intelligence, rail transport and defense. South Korean President Lee Jae Myung will host the first summit with all five Central Asian states on September 16. The five Central Asian presidents due to attend are Kazakhstan’s Kassym-Jomart Tokayev, Uzbekistan’s Shavkat Mirziyoyev, Kyrgyzstan’s Sadyr Japarov, Tajikistan’s Emomali Rahmon, and Turkmenistan’s Serdar Berdimuhamedov. Mirziyoyev’s talks opened a series of bilateral meetings running through September 16, with Kazakhstan and Turkmenistan scheduled for September 15, and Tajikistan and Kyrgyzstan the following morning. Among the Uzbek agreements is a memorandum to launch feasibility studies under South Korea’s Economic Development Cooperation Fund on the introduction of eight high-speed train sets and the establishment of a national genome and biobank center. The projects’ scope will depend on the studies’ findings. Uzbekistan had already agreed to purchase six high-speed trains from Hyundai Rotem in 2024. The Export-Import Bank of Korea and Uzbekistan’s investment ministry also agreed to identify potential projects and explore financing in six priority areas. These include critical minerals, AI and data centers, smart cities, an industrial complex for Korean companies, pharmaceuticals and biotechnology, and food, beauty and cultural industries. The presidents also agreed to use the Korea–Uzbekistan Rare Metals Center as a base for strengthening cooperation across exploration, development and processing. They agreed to expand cooperation on the use of AI in manufacturing. The package includes a defense cooperation contract involving Korea Aerospace Industries and an Uzbek counterpart. The South Korean government’s published summary did not identify the equipment or disclose the contract’s value. The agreements build on South Korea’s established economic presence across Central Asia. Its foreign ministry identifies Kazakhstan as its largest investment destination in the region, based on investment data through 2023. Kazakhstan’s industry ministry has put bilateral industrial cooperation at 46 joint projects worth about $3.9 billion, covering Hyundai and Kia vehicle production, Hyundai trucks and buses, ferroalloys and Samsung home appliances. Hyundai Trans Kazakhstan, part of Kazakhstan’s Astana Motors, produced 52,040 vehicles in Almaty in 2025, while Kia Qazaqstan began operating in Kostanay late that year, according to TCA’s reporting on Kazakhstan’s automotive industry. Korean companies are also involved in transport infrastructure and urban development. A Turkish–South Korean consortium secured the Big Almaty Ring Road public-private partnership, while South Korean partners are involved in the planned K Smart City district at Alatau. South Korean companies have participated in major industrial projects in Turkmenistan, including the Kiyanly gas chemical complex and gas processing facilities at the Galkynysh field. Daewoo Engineering & Construction is working on a mineral fertilizer production complex in Turkmenabat, where South Korea’s ambassador reviewed construction preparations in June. Turkmenistan’s foreign ministry has also highlighted Korean participation in transport infrastructure and shipbuilding. In Kyrgyzstan, South Korea has provided technical assistance to the textile sector and committed funding for a five-year digital-transformation program starting in 2026. The two governments are also examining potential cooperation involving Kyrgyzstan’s antimony...

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...