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Mongolia

Uzbekistan and Mongolia Target $100 Million Trade Turnover

Uzbekistan and Mongolia discussed expanding cooperation in mining, agriculture, transport, and industrial production during the Uzbekistan-Mongolia Business Forum held in Tashkent, according to Uzbekistan’s Ministry of Investment, Industry and Trade. More than 70 companies from the two countries took part in the forum, which brought together government officials, business representatives, and investors seeking to deepen economic ties between Central Asia and Northeast Asia. The delegations were led by Uzbekistan’s Deputy Minister of Investment, Industry and Trade Ilzat Kasimov, Mongolian Ambassador to Uzbekistan Dadanhuu Batbaatar, and Mongolian parliament member Sukhbaatar Erdenebat. One of the main topics was cooperation in geology and mining. The ministry said Uzbekistan’s Ministry of Geology has already started practical work on developing mineral deposits through its representative office in Ulaanbaatar. The sides also reviewed growing trade figures. Uzbekistan’s exports to Mongolia increased by 15.6% in the first quarter of 2026, and both governments set a target of raising annual bilateral trade turnover to $100 million. Industrial cooperation focused heavily on processing Mongolian wool and cashmere in Uzbekistan for export markets. In agriculture, officials discussed plans to increase the number of Mongolian sheep raised in Uzbekistan to one million by 2029, while Uzbek irrigation technologies may also be introduced in Mongolia. Transport and logistics were another key area of discussion. Participants explored launching freight transportation along the Uzbekistan-Kyrgyzstan-China-Mongolia corridor, which could improve trade routes between Central and East Asia. The forum included B2B and G2B negotiations involving companies such as Suzur Health Med, Prime Nomadic Meat, and Tsamkhag Construction. According to the ministry, the talks resulted in the formation of a package of investment projects and the creation of a permanent mechanism to monitor joint initiatives. Economic ties between the two countries have been growing from a relatively small base. Bilateral trade totaled about $14 million in 2023 but nearly doubled year-on-year, driven by what analysts describe as complementary economies. Uzbekistan exports automobiles, textiles, and agricultural products, while Mongolia supplies livestock products, wool, leather, and minerals.

Asian Development Bank

ADB Annual Meeting in Samarkand Unveils Major Energy, Climate, and Development Initiatives

The Asian Development Bank’s (ADB) 59th Annual Meeting concluded in the historic Uzbek city of Samarkand after four days of discussions focused on energy connectivity, climate financing, and economic resilience across Asia and the Pacific. Held from May 3 to 6, the gathering brought together government officials, development institutions, economists, and private sector representatives at a time of growing geopolitical and economic uncertainty. It marked the second time Uzbekistan has hosted the ADB Annual Meeting, following the 43rd edition in Tashkent in 2010. A central announcement at the meeting was the unveiling of a broader $70 billion regional infrastructure program aimed at accelerating energy and digital connectivity across Asia and the Pacific. The initiative is structured around two major pillars: a $50 billion Pan-Asia Power Grid Initiative focused on cross-border electricity systems, and a $20 billion digital connectivity component aimed at strengthening broadband and data infrastructure across the region. Together, these programmes are intended to reduce energy costs, improve reliability, and deepen regional economic integration. The Pan-Asia Power Grid Initiative (PAGI) In his address to delegates, ADB President Masato Kanda noted that PAGI seeks to support more interconnected and resilient infrastructure systems. "To survive and thrive in this new era, we must build deeply connected and resilient systems," he said, adding that stronger regional grids and digital networks can help countries manage rising energy demand whilst also accelerating the transition to cleaner power sources. The initiative seeks to integrate around 20 gigawatts of renewable energy capacity and the develop enough transmission infrastructure to expand electricity access for up to 200 million people. ADB officials said the bank would use its role as a regional convener to bring together governments, regulators, and private investors to overcome barriers that often slow regional infrastructure projects. The bank pointed to earlier success stories, including the Bangladesh-India power grid interconnection and the Monsoon Wind Power Project in Laos, as examples of cross-border cooperation supported through blended finance mechanisms. [caption id="attachment_37211" align="aligncenter" width="1536"] Image: TCA, Stephen M. Bland[/caption] Climate and Food Security Concerns Climate and environmental financing also featured prominently during the Samarkand meetings. On May 5, the ADB announced that the German government had joined the bank’s Nature Solutions Finance Hub with €5.5 million ($6.5 million) in grant co-financing, some of which has been earmarked for sorely needed watershed rehabilitation in Uzbekistan. The discussions also reflected growing concern over global food security and supply chain vulnerabilities linked to the ongoing war in Iran. Qingfeng Zhang, Senior Director of ADB’s Agriculture, Food, Nature, and Rural Development Sector Office, warned that disruptions around the Strait of Hormuz were increasing the cost of everything from energy to insurance, freight to fertilizer – placing additional pressure on food systems across Asia and the Pacific, including Central Asia. Unlike the shock caused by Russia’s invasion of Ukraine, which directly disrupted grain and fertilizer exports, Zhang said the current crisis was affecting agriculture primarily through higher operating and transportation costs. The Strait of Hormuz handles roughly one-quarter of global seaborne oil...

Bilateral Trade

Despite Growth Plans, Trade Between Kazakhstan and Russia Declined in 2025

Trade and economic ties between Kazakhstan and Russia showed signs of slowing in 2025. By the end of the year, bilateral trade totaled $27.4 billion, a slight decrease compared with the previous year. The figures were announced by Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliev, following talks in Astana between Prime Minister Olzhas Bektenov and Russian Prime Minister Mikhail Mishustin. A year earlier, bilateral trade had demonstrated growth. In 2024, trade turnover increased by 3% to reach $27.8 billion, largely driven by rising imports of Russian goods into Kazakhstan. At the same time, exports of Kazakhstani products to Russia declined, pointing to a persistent imbalance in the structure of trade. The contraction recorded in 2025 reflects a broader trend, a slowdown in growth while overall trade volumes remain relatively high. Despite the decline, both sides continue to set ambitious targets for expanding economic cooperation. “At the same time, the goal has been set to bring bilateral trade to $30 billion. During the meeting of the heads of government, measures and priority sectors that could generate additional trade growth were discussed. These include energy, commerce, transport and logistics. We also reviewed issues related to the negotiation process and our integration agenda,” Shakkaliev said. Kazakh authorities expect digitalisation measures to help accelerate trade flows. Kazakhstan’s Deputy Minister of Finance, Yerzhan Birzhanov, outlined plans to introduce electronic waybills and modernize 30 checkpoints along the Kazakhstan–Russia border. These steps are expected to reduce transit times and improve operational transparency. Russia remains one of the largest investors in Kazakhstan’s economy. “There is a very significant presence of Russian business in Kazakhstan, and we welcome it. We are ready to explore new areas of cooperation. I am confident that there are ample opportunities for this. The Government of Kazakhstan will make every effort to intensify and enhance our cooperation,” Bektenov said. In turn, Mishustin highlighted prospects for further joint initiatives. “There is considerable potential in bilateral cooperation to launch joint projects in energy, industry, transport infrastructure, agriculture and the digital economy,” he stated. In addition to economic issues, the two sides discussed joint efforts to preserve the ecosystem of the Caspian Sea and implement environmental initiatives. External factors are also influencing trade dynamics. In particular, tighter foreign trade procedures introduced by Russia could reshape logistics routes and alter commodity flows across Central Asia.

Bilateral Trade

Kazakhstan’s Trade with China Is Growing, but the Deficit Is Widening

Kazakhstan’s trade and economic ties with China continue to deepen, yet the expansion in bilateral trade is accompanied by a widening imbalance. By the end of 2025, China had consolidated its position as one of the country’s key trading partners, accounting for nearly a quarter of total foreign trade turnover. According to data from the analytical centre of the Association of Financiers of Kazakhstan (AFK), bilateral trade reached $34.1 billion, an increase of 13.2% compared with the previous year. China’s share in Kazakhstan’s foreign trade rose to 23.7% from 21.2% a year earlier. Growth in trade was driven primarily by an increase in imports of Chinese goods. In 2025, imports from China reached $18.9 billion, 23.6% higher than the previous year. China accounted for 29.2% of all imports into the country. The structure of imports indicates growth in shipments of both consumer goods and industrial products. The largest increases were recorded in vehicles (+$3.4 billion), metals (+$645 million), and chemical products (+$412 million). According to analysts, this reflects expanding investment activity, infrastructure projects, and domestic demand. In contrast to imports, Kazakhstan’s exports to China showed only moderate growth, rising by 2.1% to $15.2 billion. At the same time, the export structure changed. Shipments of agricultural and chemical products increased, while exports of traditional raw materials declined. Experts attribute this to cooling industrial demand in China, lower global commodity prices, and growth in domestic production within China itself. Faster growth in imports led to a sharp deterioration in the trade balance. According to AFK data, the bilateral trade deficit with China increased tenfold, from $370 million to $3.7 billion. At the same time, price trends for goods imported from China remained largely downward. Declining prices for a number of items are linked to low inflation in China and increased competition from Chinese manufacturers in foreign markets. This, in turn, is exerting a restraining effect on inflation in Kazakhstan, partially offsetting price increases driven by domestic factors such as tariffs, demand, and budget spending. In the short term, analysts expect imports from China to remain the main driver of bilateral trade. Kazakhstan’s exports, meanwhile, will depend on commodity prices and the level of industrial demand in China. High oil prices (above $100 per barrel) could temporarily reduce the deficit by boosting export revenues. However, this effect would be largely price-driven and is unlikely to change the overall structure of trade.

Economic Growth

Central Asia Records Over 6% Growth as Trade with Russia Expands

Central Asian economies concluded 2025 with growth exceeding 6%, significantly outpacing major developed markets such as the United States and the Eurozone, where expansion stood at approximately 1.6% and 1.1%, respectively, according to Turkish newspaper Yeni Şafak. The figure aligns with the World Bank who puts regional expansion at 6.2% and the Eurasian who Development Bank (EDB) estimates growth at 6.6%. Economists attribute the region’s performance to strong domestic demand, active state investment programs, infrastructure development, and rising exports of raw materials and industrial goods. Kazakhstan and Uzbekistan accounted for the largest contributions to overall growth, supported by large-scale public investment initiatives and expanding foreign trade. By contrast, the U.S. and European economies experienced slower growth amid high interest rates, inflationary pressures, and weaker consumer demand. Uzbek economist Mirkomil Kholboyev, writing on his Telegram channel, said the trend reflects deeper structural factors. “In general, the average real growth in Central Asia has almost always been higher than in the United States or Europe, with the exception of 2021,” he wrote. “Beyond short-term effects, lower-income countries like ours tend to grow faster than high-income economies. In wealthier countries, the return on additional capital has declined, while in our region capital remains scarce, allowing investments to generate higher returns. Demographic growth is also higher here, and the steady expansion of the labor force serves as an additional driver of economic growth.” Trade data indicate that Central Asia’s economic ties with Russia have strengthened in recent years. In 2021, the region accounted for 3.2% of Russia’s imports. By the first 10 months of 2025, that share had risen to 4.6%. Over the same period, Central Asia’s share of Russian exports increased from 5.6% to 7%. Overall, during the first 10 months of 2025, Central Asia ranked as Russia’s third-largest import partner and fourth-largest export destination. Before the war in Ukraine, the region ranked seventh among Russia’s import partners and fourth in exports. Although Russia’s economy remains significantly larger, reaching approximately $2.1 trillion in 2024 and exceeding the combined size of Central Asian economies by about 4.4 times, the increase in trade shares over the past four years is notable. Kholboyev also noted that part of the rise in imports is attributable to re-export activity.

Uzbek-U.S. Relations

Uzbekistan and United States to Establish Investment Platform

Shavkat Mirziyoyev has arrived in Washington with his spouse on a working visit that includes participation in the first summit of the Board of Peace and a series of business engagements aimed at strengthening bilateral economic ties. According to the presidential press service, the visit is focused on expanding trade, investment, and financial cooperation with U.S. partners. As part of his program in Washington, Mirziyoyev met with John Jovanovic, President and Chairman of the Export-Import Bank of the United States, and Ben Black, Chief Executive Officer of the U.S. International Development Finance Corporation. The discussions centered on expanding financial support for priority industrial and infrastructure projects in Uzbekistan. Officials noted that negotiations held last year with U.S. President Donald Trump gave new impetus to trade and investment cooperation. In particular, the two sides reviewed progress in supporting the activities of the bilateral Business Council and advancing plans to launch an Investment Platform intended to promote major projects on a systematic basis. Cooperation with the Export-Import Bank is expected to include increased financing for large-scale industrial and infrastructure initiatives, as well as assistance with the supply of high-technology equipment. During talks with the Development Finance Corporation, emphasis was placed on strengthening investment mechanisms and facilitating the corporation’s participation in national and regional projects, including the development of Uzbekistan’s financial market and energy sector. At the conclusion of the meetings, the parties exchanged an Agreement on the Establishment of an Investment Platform between Uzbekistan and the United States in the presence of the Uzbek president. The current visit builds on steps taken last November, when Uzbekistan announced the creation of the Uzbekistan-U.S. Business and Investment Council. The body was formalized by presidential decree following Mirziyoyev’s official visit to Washington within the C5+1 framework. The council is jointly chaired by senior representatives of both countries and is designed to serve as an institutional mechanism for deepening commercial cooperation. During his Washington meetings, Mirziyoyev also invited the American side to participate in the upcoming Tashkent International Investment Forum, underscoring continued efforts to attract U.S. business engagement in Uzbekistan’s economic reforms.