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Energy

Kazakhstan’s Two Futures on Display at Energy and Digital Forums in Astana

As the temperatures in Astana dipped below zero this week, the capital played host to two international gatherings that offered sharply contrasting visions of Kazakhstan’s future. On one bank of the Ishim River, industry veterans and government officials gathered for Kazakhstan Energy Week in the cavernous halls of the Independence Palace. Just across town, the Astana Digital Bridge forum drew swarms of young entrepreneurs and tech enthusiasts to the gleaming Expo Center. The Old Guard Assembles Energy Week opened at 10 a.m. sharp on Thursday, October 2nd. Beneath gold-and-jade ceilings, chandeliers clinging to them like stalactites, padded white leather chairs were lined up neatly on stage. They were filled by some of the oil industries leading lights; dark suits were de rigueur. Over lunch, a string quartet performed Gardel’s Por Una Cabeza, while the final evening saw delegates invited to see Verdi’s Rigoletto at Astana’s ostentatious opera house. The format was carefully stage managed. Executives delivered their speeches like lecturers at a school assembly, with the audience listening politely. Questions from the floor were not invited. There was a certain quiet bullishness amongst those present – the air of an industry that had been written off, but far from ready to concede relevance. Oil and gas continue to provide 35% of GDP and 75% of exports, despite talk of an energy transition. “We expected a tailing off in demand on a global level, and this has not happened,” said Richard Howe, Executive Vice President of Shell’s Exploration and Production division during a panel of energy executives. Beside him, Askhat Khassenov, Chairman of the Board at KazMunayGas, was a little more smug – “It looks like oil and gas are going to be around for a lot longer than some had anticipated,” he said. Nevertheless, regular attendees at Kazakhstan’s annual energy shindig noted that the event was notably quieter than in previous years. Russians were absent, and Europeans few and far between. Delegations from neighboring Central Asian and Middle Eastern states padded out the numbers, perhaps reflecting countries in a similar situation. The audience skewed heavily male and middle-aged. While a side event titled “Women in Oil” took place in a nearby hall, the real worry was generational. Both Howe of Shell and Bakhodirjon Sidikov of Uzbekneftegas admitted that talent – or the lack of it – was their biggest challenge. Concerns about the lack of top scientists have also been taken up at the highest level. “Today, 90% of university graduates have bachelor's degrees. Meanwhile, the proportion of PhD holders is less than 1%,” President Kassym-Jomart Tokayev said earlier this week. “Therefore, it is necessary to increase the number of grants for doctoral studies, with preference given to technical specialties.” If the message of Energy Week was that Kazakhstan’s present still runs on oil and gas, it was also clear the sector is worried about who will run it tomorrow. [caption id="attachment_37005" align="aligncenter" width="355"] Image: Joe Luc Barnes, TCA[/caption] New Kazakhstan For the future talent, you only had to drive...

domestic development

Central Asia and Regional Integration: Logistics, Water, Energy

Central Asia is undergoing a profound transformation, where questions of domestic development and the region’s ability to act in a coordinated way are coming to the forefront. For many years, Central Asian states were viewed as fragmented, each pursuing separate strategies that often put them in competition. Today, however, shared challenges and growing interdependence are making gradual convergence increasingly likely. The region now confronts common pressures such as water scarcity, energy imbalances, environmental degradation, and the fallout of instability in Afghanistan -- issues that no single country can effectively address in isolation. Increasingly, regional platforms such as the Interstate Commission for Water Coordination (ICWC) are being leveraged to mediate water-energy tradeoffs, while joint initiatives in transport, transit, and energy infrastructure foster new integration. Moreover, leading actors like Kazakhstan and Uzbekistan are pushing coordinated strategies -- modernizing rail and aviation links, coordinating transboundary water allocations, and exploring nuclear cooperation -- that point toward a more interconnected regional future. Shared Challenges and Points of Convergence The region faces problems that no country can solve alone. These include water shortages, energy imbalances, environmental risks, and instability in Afghanistan. Such challenges can be seen as both threats and opportunities, since they also represent areas of overlapping interest. Joint action in these fields can deliver more than fragmented national strategies. Water is particularly important, remaining one of the most sensitive issues in interstate relations. Yet it also offers opportunities for coordinated action through existing regional platforms, such as the Interstate Commission for Water Coordination of Central Asia. The “water for energy” model is increasingly seen as a practical tool, already under discussion and applied in bilateral and multilateral projects. Environmental issues are similarly shared. The disappearance of the Aral Sea, land degradation, air pollution, and glacier melt create threats that transcend national borders. Joint monitoring, data exchange, and coordinated adaptation measures, particularly within the United Nations Regional Centre for the Sustainable Development Goals for Central Asia and Afghanistan, opened in August 2025 in Almaty, could become a new direction for regional cooperation. Afghanistan remains another risk factor that affects the security of the entire region. At the same time, transportation and energy projects linking Central Asia with South Asia through Afghan territory can turn a challenge into an opportunity. Reducing instability and integrating Afghanistan into regional trade and transit networks serves the interests of all Central Asian states. Kazakhstan and Uzbekistan as leading forces To understand how closer integration might work in practice, it is useful to examine the strategies of the region’s two key players: Astana and Tashkent. The major agreements concluded by Kazakhstan and Uzbekistan with the United States in transport and aviation should be viewed not as isolated deals, but as evidence of the complementary strengths of the two largest economies in Central Asia. Kazakhstan signed its largest locomotive contract to date with U.S. company Wabtec, a $4.2 billion agreement for 300 TE33A freight locomotives to be assembled at the Wabtec Kazakhstan plant in Astana, along with servicing support. This will modernize...

Energy

Kyrgyzstan Moves to Develop Local Lithium Battery Production

On September 26, the Kyrgyz Ministry of Economy and Commerce signed a memorandum of cooperation with Russian state atomic energy corporation Rosatom, Energy Solutions Kyrgyzstan LLC, and Elbrus Construction Company LLC to explore the development of lithium battery and energy storage system production in Kyrgyzstan. According to the ministry, the agreement outlines joint efforts to analyze the domestic lithium battery market, prepare proposals for localized production, and implement projects focused on energy storage solutions within the country. The initiative is expected to attract high-tech investment, generate new jobs, and contribute to Kyrgyzstan’s energy independence. It also supports the development of clean and sustainable energy technologies. The project is particularly relevant as the number of imported electric vehicles (EVs) in Kyrgyzstan continues to rise, alongside government plans to localize EV assembly. The initiative aligns with the country’s broader strategy to promote eco-friendly transport options and reduce air pollution, especially in urban areas such as Bishkek. In a related development, the Ministry of Economy and Commerce signed a memorandum of understanding in June with South Korean companies EVSIS, NGS, and the Korea Automobile Environment Association. That agreement focuses on expanding EV charging infrastructure in Bishkek. As The Times of Central Asia previously reported, South Korean stakeholders also plan to launch production of EV charging stations in Kyrgyzstan. The project aims to establish a local manufacturing facility and develop a nationwide charging network across major cities and regions.

Energy

Kazakhstan Enforces Fuel Export Ban

Kazakhstan’s Ministry of Energy has confirmed that the country’s six-month ban on fuel exports remains in full effect, with no gasoline shipments currently sent to Uzbekistan or other neighboring countries. Officials acknowledged a single exception earlier this year, when surplus volumes of AI-92 gasoline were exported to Uzbekistan in the spring. The ministry characterized the shipment as a routine measure aligned with international practice, designed to optimize domestic storage and increase tax revenues. Since June, all fuel exports have been suspended to build strategic reserves ahead of scheduled maintenance at Kazakhstan’s oil refineries. The ban, introduced on May 19, covers gasoline, diesel, and other petroleum products. Reports of Fuel Shortages and Smuggling Speculation over renewed fuel shortages in Kazakhstan surfaced in local media on September 22, with reports citing illegal cross-border smuggling as a contributing factor. Some sources also claimed that Uzbekistan had increased purchases of Kazakh gasoline amid a decline in fuel imports from Russia. In response, the Ministry of Energy reiterated that no current fuel exports are taking place and emphasized that the export moratorium is being strictly enforced. Uzbekistan’s Fuel Market in Transition Uzbekistan’s state energy company Uzbekneftegaz recently announced plans to phase out production of AI-80 gasoline starting in September. Beginning in 2026, the country intends to supply only higher-octane grades, including AI-92 and AI-95, to align with international fuel standards. The regional fuel market has already undergone significant restructuring. In April 2024, the Telegram channel Oil & Gas of Kazakhstan reported that Uzbekistan was scaling back crude oil imports from Kazakhstan in favor of cheaper Russian supplies. During the first quarter of 2024, Uzbek companies imported 15,200 tons of crude oil from Kazakhstan by rail, down from 25,600 tons during the same period in 2023. Most of this volume was refined at the Ferghana plant. Meanwhile, Russia’s Gazprom Neft significantly expanded deliveries to Uzbekistan. In the first quarter of 2024, the company shipped 75,000 tons of crude via pipelines through Kazakhstan, nearly seven times more than the 10,700 tons delivered a year earlier.

Japan

From Hydropower to Human Capital: Japarov Plans Strategic Visit to Japan

Kyrgyz President Sadyr Japarov is preparing for a visit to Japan that underscores growing strategic ties between the two countries. Kyrgyz officials say they plan to sign energy and infrastructure agreements in Tokyo, including support for a training center for the national electric grid and upgrades at the Kurpsai hydropower plant, according to Trend, citing the Kyrgyz Energy Ministry. The same report notes that grant funding from Japan’s international cooperation programs will back grid training and modernization efforts. The timing reflects Tokyo’s recent step-up in activity vis-à-vis Central Asia. As previously reported by The Times of Central Asia, in late August 2025, Japan’s foreign minister undertook a multi-country tour that emphasized long-term engagement and connectivity across the region. Japanese officials framed their approach as trust-building, focused on people-to-people links, infrastructure, and practical cooperation. Energy cooperation is expected to feature prominently during the visit. Kyrgyz officials say the Japan-backed training center is moving through final approval, and modernization of the Kurpsai facility is planned with Japanese grant support. Bishkek has also invited Japanese participation in additional hydropower projects, positioning Japan as a technology and financing partner in Kyrgyzstan’s power sector. Labor mobility and skills are another focus. The authorities in Kyrgyzstan have been working with Japanese counterparts to create safe, legal pathways for Kyrgyz workers. In July, Kyrgyz officials met with Japan’s construction human-resources association to align training standards and prepare workers for job opportunities in Japan, and free Japanese-language courses were launched in Bishkek to improve employability for prospective migrants. Education and cultural exchange underpin the relationship. Over three decades, Japan has funded scholarships, exchanges, and language programs that connect Central Asian students to Japanese universities. An overview of these initiatives highlights how education has become a durable pillar of Japan’s regional engagement, building familiarity with Japanese business practices and technology among Kyrgyz graduates. For Bishkek, the visit is about turning ongoing cooperation into signed projects and new resources. Officials point to the grid training center and Kurpsai upgrades as near-term deliverables, while the broader agenda includes workforce programs and academic ties. The message from both sides is continuity: steady, practical steps rather than headline-grabbing announcements. Regionally, Japan’s approach offers Central Asian countries additional partners for finance, training, and technology. For Kyrgyzstan, deeper ties with Tokyo complement existing relationships while helping diversify investment sources and markets. The outcome to watch is whether the visit locks in concrete funding and timelines for priority energy and skills initiatives outlined by the Kyrgyz side.

Economic Cooperation

Kazakhstan and Turkmenistan Finalize $555 Million Investment and Trade Agreement

Kazakhstan’s Senate on September 4 ratified a bilateral agreement with Turkmenistan aimed at bolstering mutual investment and economic cooperation, Kazinform reported. The agreement, which sets out conditions for the promotion and protection of investments, is expected to create a more transparent and predictable environment for investors from both countries. Senator Amangeldy Nugmanov emphasized that the agreement provides comprehensive legal safeguards for investment across all sectors, from state-led initiatives to private enterprise. For the first time at the interstate level, Kazakhstan and Turkmenistan have formalized clear guarantees to protect investor interests. The agreement includes provisions for dispute resolution, including access to international arbitration, and ensures fair and equal treatment for foreign investments. Energy Sector as Strategic Priority Energy cooperation figures prominently in the agreement. Kazakhstan has expressed readiness to invest in the development of Turkmenistan’s gas condensate fields and to support the expansion of pipeline infrastructure. Nugmanov highlighted a separate agreement signed between Kazakhstan’s QazaqGaz and Turkmenistan’s state concern Turkmengaz, describing it as a “golden bridge” that will enhance both nations' economic prospects and contribute to regional energy security. Trade and Transport Ties Expand Senator Sergey Ershov noted that bilateral trade reached $555.7 million in 2024. Kazakh investors injected $16.1 million into Turkmenistan’s economy, while Kazakhstan received $400,000 in direct investment from Turkmenistan. Beyond energy, cooperation now includes rail, road, and maritime transport. Turkmenistan has also shown interest in modernizing armored vehicles and supplying spare parts to Kazakhstan. During a summit held in April, the presidents of both countries agreed to target $1 billion in annual trade turnover in the near future. They also underscored the strategic importance of expanding cooperation in energy and transport. Key projects under discussion include Kazakhstan’s potential participation in Turkmenistan’s Galkynysh gas field and the development of the Turgundi-Herat-Kandahar-Spin Boldak railway. The rail line, which would pass through Afghanistan, is seen as a means of diversifying trade routes and unlocking new regional markets.