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Energy

Kazakhstan, Kyrgyzstan, and Uzbekistan Sign Trilateral Deal on Water and Energy Cooperation

Kazakhstan, Kyrgyzstan, and Uzbekistan have signed a trilateral protocol on water and energy cooperation, covering the upcoming winter heating period and the 2026 agricultural season. The agreement was formalized at a meeting of the countries’ energy and water ministers held in Almaty on November 22. With water levels at Kyrgyzstan’s Toktogul Hydropower Plant (HPP) reservoir critically low, Kazakhstan and Uzbekistan have agreed to supply electricity to Kyrgyzstan during the winter months. This will allow Kyrgyzstan to reduce electricity generation during peak heating demand and conserve water in the Toktogul Reservoir. The stored water will later be released downstream to Kazakhstan and Uzbekistan during the 2026 growing season to ensure consistent irrigation for farmland in their southern regions. The Toktogul HPP, located on the Naryn River, a key tributary of the Syr Darya, is Kyrgyzstan’s largest power station, supplying about 40% of the country’s electricity. It plays a dual role: meeting domestic energy needs and regulating water flows critical to downstream agricultural systems. In winter, Kyrgyzstan typically ramps up power output to meet heating demand, often at the expense of reservoir levels, which can compromise irrigation capacity the following spring. Under the new protocol, Uzbekistan has also pledged to support regional electricity balancing and ensure transit capacity. Earlier, the three countries agreed to facilitate cross-border electricity flows, including Russian electricity transiting to Kyrgyzstan via Kazakhstan, and Turkmen electricity reaching Kyrgyzstan through Uzbekistan’s transmission grid. Participants in the Almaty meeting emphasized that the trilateral agreement reflects a spirit of good neighborliness and is aimed at enhancing regional energy security and stability. The agreement is particularly critical for Kyrgyzstan, which faces persistent electricity shortages, especially during the winter when electric heating is widely used. On November 18, Kyrgyzstan completed the full modernization of the Toktogul HPP, with the commissioning of its fourth generating unit. The upgrade raised the facility’s total capacity from 1,200 MW to 1,440 MW. In parallel, Kyrgyzstan is advancing construction of the Kambarata-1 HPP, a major regional project being developed jointly with Kazakhstan and Uzbekistan. Once completed, Kambarata-1 will have a generation capacity of 1,860 MW and produce 5.6 billion kWh annually.

Energy

Uzbekistan and SOCAR Advance $2 Billion Ustyurt Energy Project

Uzbekistan’s Minister of Energy, Jorabek Mirzamahmudov, has outlined the country’s deepening energy cooperation with Azerbaijan’s state oil company SOCAR, highlighting progress on a recently signed Production Sharing Agreement (PSA) for the Ustyurt region and broader plans in petrochemicals and electricity trade. In an interview with Azerbaijani media outlet Report, Mirzamahmudov confirmed that Uzbekistan, SOCAR, and Uzbekneftegaz have already established a joint operating company to oversee the Ustyurt project. Fieldwork is expected to accelerate soon, with seismic surveys covering over 3,000 linear kilometers set to begin before year-end, followed by the drilling of the first exploration well. The PSA structure splits ownership equally between the state and investors, with SOCAR and Uzbekneftegaz as the primary partners. British energy major BP has shown interest and is in preliminary discussions to join the consortium. Azerbaijani President Ilham Aliyev stated in August that SOCAR had commenced work at an Uzbek oil field following the contract signing. He expressed optimism about potential discoveries within the next one to two years. Mirzamahmudov acknowledged that earlier data on Ustyurt had not suggested large hydrocarbon reserves but said that modern interpretation techniques have revealed greater potential. While refraining from early reserve estimates, he said SOCAR specialists are optimistic about promising oil indicators. If confirmed, Uzbekistan plans to build a new refinery. Total investment in the Ustyurt project is projected at around $2 billion. The minister said SOCAR and Uzbekneftegaz would finance the project’s initial stages, with BP possibly joining later. He did not rule out future collaboration with Azerbaijan on major fields like Shah Deniz or Absheron but emphasized that Uzbekistan’s current priority is increasing domestic production. In the long term, joint ventures in third countries are also being considered. Trans-Caspian Energy and Renewables Push Mirzamahmudov also discussed the proposed trans-Caspian high-voltage direct current (HVDC) cable project aimed at exporting renewable energy to Europe. A joint venture involving Azerbaijan, Kazakhstan, and Uzbekistan has already been formed. The Asian Development Bank is assisting in selecting a consultant for the project’s feasibility study. Several countries, including Saudi Arabia, have expressed interest. Uzbekistan currently generates more than 20% of its electricity from renewables and aims to increase that share to 54% by 2030. In the Ustyurt region alone, wind projects totaling over 2.5 GW are under development, with the first 100 MW already operational. The government also plans to deploy hybrid wind-solar-storage systems with a minimum capacity of 5 GW. Localization and Petrochemical Cooperation Mirzamahmudov noted that future oil and gas processing facilities could be localized in special economic zones in Bukhara, Karakalpakstan, and Khorezm, which are currently being evaluated for infrastructure and logistics readiness. A joint venture with SOCAR Trading is already exporting polymer products, and ongoing discussions aim to expand cooperation in fuel production and fertilizer manufacturing.

U.S. and Uzbekistan Sign Landmark Economic and Strategic Agreements

The United States and Uzbekistan are deepening their economic and technological partnership. Following President Shavkat Mirziyoyev’s meeting with U.S. President Donald Trump in Washington, the U.S. State Department announced a sweeping package of agreements, described as among the most significant in the history of bilateral relations in both investment and strategic scope. High-Level Business Engagements During his Washington visit, President Mirziyoyev held talks with representatives from major American corporations, investment funds, and financial institutions. The meeting was attended by U.S. Secretary of Commerce Howard Lutnick, Special Assistant to the President Ricky Gill, Special Assistant to the President Ricky Gill, Deputy Secretary of Agriculture Stephen Vaden, and executives from companies such as Traxys, FLSmidth, McKinsey, Meta, Google, Amazon, Boeing, Air Products, Axiom Space, Cove Capital, Freeport-McMoRan, Orion CMC, Cargill Cotton, John Deere, Honeywell, Valmont Industries, and Flowserve Corporation. Opening the event, Mirziyoyev highlighted that trade between Uzbekistan and the U.S. has quadrupled over the past eight years, and more than 300 American companies are now operating in the country. He added that this is just the beginning of a new era in economic cooperation. Key strategic goals were outlined: by 2030, Uzbekistan aims to develop a new-generation energy system with 18-20 GW of renewable capacity, more than half of it sourced from solar and wind. In this context, the two countries plan to jointly develop and process critical minerals such as uranium, copper, tungsten, molybdenum, and graphite, establishing resilient supply chains and leveraging U.S. processing technologies. Infrastructure is another major focus. Uzbekistan intends to invest over $12 billion by 2030 to modernize roads, railways, terminals, and airports. Digital cooperation is also expanding. Projects with Google, Meta, and NVIDIA include the launch of Apple Pay and Google Pay, the creation of a Digital Academy, and the development of startup hubs. These initiatives are expected to be supported by the U.S. International Development Finance Corporation (DFC) and the U.S. Exim Bank. Mirziyoyev reaffirmed his personal commitment to supporting American investment, stressing that Uzbekistan remains a stable and favorable destination for foreign businesses. Securing Access to Strategic Raw Materials Washington’s primary interest lies in critical minerals. The U.S. will gain priority access to joint mining projects and exclusive access to geological data on rare earth and other strategically significant elements. This move is part of a broader U.S. effort to diversify global sources of inputs vital to defense, green energy, and other high-tech sectors. The two countries are also preparing a $400 million investment package to develop sustainable supply chains for critical and rare earth minerals. For Uzbekistan, this represents a key step toward integration into global value chains and reduced reliance on limited partners. Energy Cooperation: A Role for Small Modular Reactors Uzbekistan plans to acquire American small modular reactors (SMRs), a technology increasingly favored by emerging economies for its scalability and relatively low upfront costs. Interest in SMRs has grown following the 2025 approval of the upgraded NuScale Power Module (77 MW), and Uzbekistan may become one of the first countries in...

Strategic Partnership

Tokayev in New York: $100B U.S. Investment Push Boosts Kazakhstan Ties

Kazakhstan and the United States are continuing to strengthen their strategic partnership, with investment playing a central role. At a roundtable with U.S. business representatives in New York, President Kassym-Jomart Tokayev stated that American investments in Kazakhstan’s economy have surpassed $100 billion. “Today, more than 630 American companies are successfully operating in our country, including Chevron, ExxonMobil, Boeing, Visa, Mastercard, Meta, Wabtec, and Citibank. We regard the U.S. as an important strategic partner and reaffirm our commitment to further developing multifaceted cooperation,” Tokayev said. The president noted that Kazakhstan’s economy grew by 6.5% in the first eight months of 2025. He added that ongoing political and economic reforms are creating favorable conditions for long-term growth and attracting further investment. Energy and Uranium: The Cornerstone of Cooperation Energy continues to underpin U.S.-Kazakhstan relations. “We recognize and highly value the large and successful investments of Chevron and ExxonMobil over the past 30 years. Despite all the turbulence in regional geopolitics, their presence in our country has never been questioned,” Tokayev said. He pointed out that Kazakhstan supplies about 40% of the global uranium market and nearly a quarter of U.S. imports. Tokayev also highlighted Kazakhstan’s “four sources” strategy - oil, gas, coal, and uranium - and expressed support for the U.S. approach to coal as a reliable energy source in the near term. $4.2 Billion Wabtec Agreement: A Landmark Deal A key outcome of Tokayev’s U.S. visit was the signing of a $4.2 billion agreement with American locomotive manufacturer Wabtec. According to the U.S. Department of Commerce, the deal will see Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), acquire 300 ES44Aci Evolution Series freight locomotives over the next decade. U.S. Secretary of Commerce Howard Lutnick described the contract as the "largest in history,” noting it would create approximately 11,000 jobs in Texas and Pennsylvania. “This is not just a story of massive success, it’s an example of how American innovation strengthens global leadership,” he posted on X. Wabtec President and CEO Rafael Santana added, “This project represents KTZ’s ambition to transform Kazakhstan’s railway network into a key bridge between Europe and Asia.” Tokayev has emphasized that Kazakhstan is upgrading transport hubs and rolling out a “Smart Cargo” digital customs and logistics system to streamline east–west and Trans-Caspian transit traffic. Presidential Support: Trump and Tokayev Hold Call The Wabtec agreement was preceded by a phone call between U.S. President Donald Trump and President Tokayev. “I just concluded a wonderful call with the Highly Respected President of Kazakhstan, Kassym-Jomart Kemeluly Tokayev,” Trump wrote on Truth Social. He emphasized the significance of the locomotive deal and linked it to his broader support for revitalizing U.S. infrastructure. “We need to support our rail industry, which has been attacked for years by ‘fake environmentalists.’ Now railroads are coming back and fast!” he said. Observers noted that Trump’s personal involvement underscored the political importance of the agreement for bilateral relations. Green Energy Progress: SAF Plant with LanzaJet Another notable development was the agreement between Kazakhstan’s national oil...

Water Management

Kazakhstan, Kyrgyzstan, and Uzbekistan Agree on Joint Water and Energy Measures

Kazakhstan, Kyrgyzstan, and Uzbekistan have reached a landmark agreement on coordinated water and energy management, signaling a deepening commitment to cross-border cooperation amid growing seasonal and climate-related challenges. The agreement was formalized on September 7 in Cholpon-Ata, Kyrgyzstan, during a meeting of energy ministers and water management authorities from the three countries. The protocols define mutual obligations for water releases and electricity exchanges, with the goal of balancing the region’s energy needs and preserving critical water resources. Under the terms of the agreement, Kyrgyzstan will release water from the Toktogul Hydroelectric Power Plant (HPP) reservoir to downstream Kazakhstan and Uzbekistan. In return, Kyrgyzstan will receive electricity from both countries through spring 2026. According to the Kyrgyz Ministry of Energy, the arrangement is designed to optimize the use of water stored in Toktogul and to secure reliable electricity supplies for Kyrgyzstan during the 2025-2026 autumn-winter period. Regional Power Transit Agreements The protocols also include provisions for cross-border electricity transit: from Russia to Kyrgyzstan via Kazakhstan’s grid, and from Turkmenistan to Kyrgyzstan through Uzbekistan’s transmission network. The Toktogul HPP, situated on the Naryn River, a major tributary of the Syr Darya, is Kyrgyzstan’s largest power facility, generating roughly 40% of the country’s electricity. It serves a dual function: providing domestic energy and regulating water flows that are essential for irrigation in downstream Kazakhstan and Uzbekistan. In winter, Kyrgyzstan often increases power output from Toktogul to meet heating demand, but this can significantly lower reservoir levels, jeopardizing irrigation supplies the following spring. The new agreement is intended to reduce this risk by enabling Kazakhstan and Uzbekistan to supply electricity during peak winter months, allowing Kyrgyzstan to conserve water. Kazakhstan’s Ministry of Energy emphasized that the trilateral deal is crucial to maintaining water levels in Toktogul and ensuring sufficient irrigation for southern Kazakhstan during the next growing season. Broader Regional Energy Cooperation Separately, Kazakhstan and Uzbekistan signed an agreement for the supply of approximately 900 million kilowatt-hours of electricity between March and December 2026. The electricity is expected to cover anticipated shortages in Kazakhstan’s southern power grid and further underscores the growing interdependence of Central Asia’s energy and water systems.

Trilateral Relations

Trilateral Summit in Turkmenistan Focuses on Transport, Energy, and Trade

On August 22, a trilateral summit was held in Turkmenistan’s Avaza National Tourist Zone, bringing together Uzbekistan President Shavkat Mirziyoyev, Chairman of the Halk Maslahaty of Turkmenistan Gurbanguly Berdimuhamedov, and Azerbaijan President Ilham Aliyev. The leaders focused on strengthening cooperation in trade, the economy, transport, energy, and humanitarian affairs, while also emphasizing the development of political, cultural, and multilateral ties. Transport and Transit Mirziyoyev presented several initiatives aimed at expanding regional transport routes and maximizing the region’s transit potential. He highlighted the strategic importance of integrating existing and new corridors to better connect China with South Asia, the Middle East, and Europe. Construction of the China-Uzbekistan railway is underway, and a memorandum has been signed with Pakistan and Afghanistan to establish the Trans-Afghan Corridor. According to Mirziyoyev, these projects could significantly enhance infrastructure utilization across Azerbaijan, Turkmenistan, and Uzbekistan. The development of the Middle Corridor and the Zangezur Corridor was also discussed. The leaders agreed to collaborate on increasing the capacity of regional transport hubs, constructing modern logistics infrastructure at the ports of Turkmenbashi and Baku, implementing a unified tariff policy, and digitizing freight systems. Uzbekistan expressed its willingness to reduce tariffs on a reciprocal basis to facilitate improved access to global markets for regional businesses. Energy Cooperation Energy cooperation was another key focus. The participants emphasized the need to expand collaboration in energy exports and to explore new supply routes. A proposed project to export “green” energy to Europe was described as promising. Additionally, in the hydrocarbon sector, the leaders proposed deeper cooperation in geological exploration and offshore field development in the Caspian Sea. “Joint efforts in the fields of transport, transit, and logistics will be of great importance not only for our countries but also for the wider region,” said President Aliyev, stressing the strategic nature of trilateral cooperation. Aliyev also noted that Azerbaijan’s state oil company SOCAR has begun developing an oil field in Uzbekistan, with results expected in the coming years. Trade and Industry According to summit participants, mutual trade volume between Uzbekistan, Turkmenistan, and Azerbaijan has doubled in recent years, with industrial goods making up 40% of this trade. Talks included preparations for a Comprehensive Action Plan aimed at developing trade and logistics chains, establishing wholesale distribution centers, unifying phytosanitary standards, introducing digital product labeling, and launching joint online platforms. The leaders also underscored the importance of regional engagement and called for increased organization of trade fairs and business forums under the auspices of national chambers of commerce and industry. Summit Outcomes The summit concluded with the endorsement of a new trilateral program for cultural and tourism exchanges, aimed at boosting regional tourism and promoting shared cultural heritage. A joint presidential statement was issued, alongside memoranda of cooperation in the fields of transport and logistics, shipbuilding, and aviation. Additionally, an agreement was signed on cooperation between national commodity and raw material exchanges. To ensure implementation, President Mirziyoyev proposed the development of a roadmap and the institutionalization of regular ministerial meetings focused on key cooperation areas.