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Agriculture

Hungarian Firm to Build Honey Processing Plant in Kazakhstan

Hungarian company Aranynektár Kft plans to invest in the construction of a honey production and processing plant in Kazakhstan, with a focus on environmentally friendly exports to the European Union. The project was discussed during a meeting in Astana between Kazakhstan’s Deputy Minister of Agriculture, Yermek Kenzhehanuly, and Aranynektár Kft CEO Ferenc Fulmer. According to the ministry, the facility will feature modern equipment and aim to meet stringent EU standards. “Kazakhstan has all the necessary conditions for the sustainable development of beekeeping, from a favorable climate and clean environment to a strong scientific base and government support,” Kenzhehanuly said. Fulmer expressed readiness for long-term cooperation. His company is Hungary’s largest honey producer and exporter, with an annual capacity of up to 4,000 tons, 80% of which is exported to EU countries, the Middle East, and Asia. In 2024, Kazakhstan produced 5,000 tons of honey, with over 58% of output coming from East Kazakhstan, Pavlodar, Almaty, Turkestan, Abai, and Zhetysu regions. To support the sector, the government will introduce a subsidy of $0.37 per kilogram of honey sold starting in 2025. Under the 2024-2026 state development program, Kazakhstan is also funding projects aimed at the rational use of bee genetic resources and the adoption of environmentally sustainable production methods. These initiatives are expected to enhance product quality and align with EU export standards. Previously, The Times of Central Asia reported that Kazakhstan is seeking to expand agricultural exports to Europe and Russia, while China has emerged as the largest importer of honey from Kyrgyzstan.

Trump Tariffs

Trump’s 100% Tariffs May Target Kazakhstan and Kyrgyzstan

U.S. President Donald Trump has signaled a new wave of sanctions against Russia, including the potential imposition of 100% tariffs on its trading partners, which could affect Kazakhstan, Kyrgyzstan, and other former Soviet states. Who Could Be Affected? On July 15, President Trump announced an escalation in U.S. arms deliveries to Ukraine and warned of intensified sanctions against Russia. If no progress is made in resolving the conflict within 50 days, the U.S. will implement additional measures, including secondary tariffs of up to 100% on countries trading with Russia. Experts warn that Kazakhstan, Kyrgyzstan, and Azerbaijan may be particularly vulnerable. Although not among Russia’s largest trading partners, these countries maintain extensive commercial ties with Moscow. According to the Centre for Research on Energy and Clean Air (CREA), China, India, and Turkey accounted for 74 percent of Russia's fossil fuel revenue in 2024. Oil exports totaled €104 billion, petroleum products €75 billion, gas €40 billion, and coal €23 billion. Despite multiple sanctions packages, the European Union continues to import Russian energy. In 2024, the EU spent €21.9 billion on Russian oil and gas, just 1% less than in 2023. Over the same period, EU financial assistance to Ukraine amounted to €18.7 billion, according to the Kiel Institute for the World Economy. Yet Trump may spare Russia’s largest trading partners. In recent months, he has taken steps to impose severe tariffs on the European Union and China, only to reverse course under pressure from business groups and concerns about global trade disruptions. Nevertheless, Kazakhstan received formal notification from the U.S. on July 7 that a 25% tariff on its goods will take effect from August 1, 2025. This raises the possibility that smaller economies in Russia’s orbit may become targets of U.S. economic retaliation. Already in the Crosshairs Kazakh analyst Olzhas Baidildinov noted that trade between Kazakhstan and Russia totaled $27.8 billion in 2024, with $18.2 billion in exports from Russia and $9.5 billion from Kazakhstan. "Such figures certainly cannot escape the attention of OFAC,” Baidildinov wrote, referring to the U.S. Treasury’s Office of Foreign Assets Control. “European sanctions apply only within Europe. However, Kazakhstan continues to import Russian oil, gas, and petroleum products. Secondary sanctions, as I’ve previously warned, are merely a matter of minor adjustments to existing measures,” he added. Trump’s administration may also be overlooking Kazakhstan’s unique geographic and economic ties to Russia. The two countries share the world’s longest continuous land border, over 7,500 kilometers, and are closely connected through pipelines, energy infrastructure, and raw materials trade. Azerbaijan and Kyrgyzstan Also Vulnerable Azerbaijan’s trade with Russia reached approximately $4.8 billion in 2024, an increase of 10.1 percent. Russia ranks as Azerbaijan’s third-largest trading partner, after Italy and Turkey. Exports to Russia totaled $1.178 billion, accounting for 4.4 percent of Azerbaijan’s total exports. Notably, Russia is the largest buyer of Azerbaijan’s non-oil products, with a 34.6 percent share. Imports from Russia include foodstuffs, machinery, and metals, while Azerbaijan supplies gas, textiles, and agricultural goods. Kyrgyzstan is also at risk....

Agriculture

Tajikistan Pursues Cotton Reform with EU Backing

The European Union’s support for green transitions presents a real opportunity for Tajikistan to achieve sustainable agricultural development, particularly in the cotton industry, according to Mizrob Amirbekov, an agricultural development expert. Amirbekov highlighted this potential, underscoring the importance of international assistance in modernizing the sector, addressing environmental and social challenges, and establishing a fair and transparent production system. Rising Demand, Persistent Problems As global demand for environmentally friendly textiles grows, Tajikistan has a unique chance to establish a sustainable model for cotton production, Amirbekov explained. Increased interest in natural fabrics, driven by both demographic growth and technological advancements, is pushing the industry toward transformation. However, this economic potential is clouded by persistent challenges, including environmental stress, social risks such as forced labor, and a lack of transparency across the supply chain. The global cotton sector has long faced scrutiny over high water consumption, widespread pesticide use, and unethical labor practices. In response, consumers and international regulators are increasingly pressing for a shift to more sustainable production methods. EU Investment and National Reform Tajikistan has begun responding to these challenges. In 2024, it approved the National Strategy for the Development of the Cotton and Textile Industry through 2040, prioritizing modernization, cost reduction, and the expansion of high-value-added production chains. The European Union is playing a central role in this transformation, having allocated a €19.88 million grant to support the sector’s green transition. The funds aim to advance digital technologies, assist small and medium-sized enterprises, and help the industry adapt to climate change impacts, from droughts to rising temperatures. “This is not merely financial aid, it’s an opportunity to build a truly sustainable cotton production system,” said Amirbekov. “Farmers and buyers need to understand the principles of sustainability and how agriculture can become a driver of the green economy.” Ongoing Social and Environmental Challenges Despite signs of progress, Amirbekov noted that significant problems persist. Farmers report that forced labor continues in some areas, with schoolchildren and unrelated government employees involved in cotton harvesting, practices that violate Tajikistan’s international commitments and damage the credibility of its organic cotton sector. Environmental impacts are equally severe. Producing a single T-shirt can consume up to 2,700 liters of water, and nearly a kilogram of pesticides may be used per hectare. Amirbekov stressed the need to adopt certified standards such as the Global Organic Textile Standard (GOTS), to promote sustainable cotton varieties, and to implement precision farming. “Climate change is already reducing yields, droughts, floods, and temperature fluctuations are becoming more common,” he warned. To address this, he advocates for sustainable seed varieties, efficient irrigation, and participation in carbon reduction programs. Amirbekov also criticized the cotton supply chain as fragmented and poorly regulated, undermining trust from international buyers and complicating the enforcement of sustainability standards. He called for the introduction of digital platforms to track supply chains in real time. Social inequality is another concern: women and small-scale farmers often face limited access to markets and lack property rights. Incorporating fair trade practices, supporting cooperatives, and enforcing...

Foreign Affairs

TRNC President Urges Central Asia to Tread Carefully on Cyprus in EU Deals

Ersin Tatar, President of the Turkish Republic of Northern Cyprus (TRNC), has urged Central Asian nations to exercise caution in their dealings with the European Union, particularly regarding the Cyprus issue. His remarks were reported by Anadolu Agency during a recent meeting with representatives of the Association of Turkish Travel Agencies (TÜRSAB). Tatar acknowledged that it is “understandable” for Central Asian countries to cooperate with the EU in pursuit of their national interests. “These countries have various projects and partnerships with the EU, especially in trade and development. That’s normal,” he said. “But I believe the Turkish states should be more careful in their relations with the Greek Cypriot side.” Turkic Solidarity and the Role of TRNC Highlighting the cultural and linguistic connections among Turkic nations, Tatar highlighted the importance of maintaining solidarity within the Organization of Turkic States (OTS), where the TRNC has held observer status since 2022. “The TRNC values its growing relationship with member states such as Kazakhstan, Uzbekistan, Kyrgyzstan, and Turkmenistan,” he said. Tatar expressed concern that recent EU overtures toward Central Asia could be aimed at limiting the TRNC’s engagement in the Turkic bloc. “The EU, which showed little interest in the region before, is now making deals. This raises questions,” he noted. Cyprus Issue and EU Documents Reaffirming the Turkish Cypriot stance on the Cyprus issue, Tatar reiterated support for a two-state solution and called on Turkic nations to extend the same diplomatic openness to Northern Cyprus as they do to the internationally recognized Greek Cypriot administration. “Our expectation is that they treat us with the same openness they show to the Greek Cypriots,” he said, warning that EU documents may contain references to UN resolutions on Cyprus that could be misinterpreted. “Do they really know what those articles mean and what consequences they might have?” he asked. Central Asia-EU Relations on the Rise Tatar’s comments follow the recent EU-Central Asia Summit in Samarkand, held on April 3-4, which marked a new chapter in regional cooperation. The summit culminated in the signing of the Samarkand Declaration, underscoring the intent to build a strategic partnership between the two regions. “Over the past seven years, the trade turnover between Central Asian countries and the EU has quadrupled, amounting to 54 billion euros,” said Uzbek President Shavkat Mirziyoyev in remarks to Euronews. European Commission President Ursula von der Leyen also welcomed the shift, stating, “The EU and Central Asia are becoming closer partners, and this summit marks the beginning of a new phase in our cooperation.”

European Union

Tajikistan to Modernize Energy, Cotton, and Education Sectors with EU Grants

On March 14, European Commissioner for International Partnerships Jozef Síkela arrived in Tajikistan. He met with President Emomali Rahmon to reaffirm the European Union’s commitment to the country through the EU’s Global Gateway initiative. During their meeting, Síkela and Rahmon discussed the state and future of EU-Tajikistan relations, as well as pressing regional issues. Their talks focused on expanding economic and trade ties, attracting investments in industry and agriculture, and securing funding for hydropower projects. Rahmon emphasized Tajikistan’s commitment to green technologies and its goal of generating 100% of its electricity from renewable sources under the Strategy for the Development of the Green Economy until 2037. EU’s New Funding for Tajikistan During his visit, Síkela announced several new EU funding initiatives aimed at strengthening Tajikistan’s sustainable development. According to the EU Delegation to Tajikistan, two key agreements were signed with Team Europe partners to drive sustainability efforts in the country: A €20 million investment grant with the European Bank for Reconstruction and Development (EBRD) to modernize Tajikistan’s electricity grid, reduce energy losses, and prepare for future renewable energy investments. This aligns with the EU’s broader goal of enhancing energy security and supporting the green transition in Central Asia. A €20 million grant with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the German Agency for International Cooperation, to promote sustainability in Tajikistan’s cotton sector. The initiative will support certified sustainable cotton production, improve processing for high-quality exports, and create new opportunities for the domestic private sector. Additionally, the EU announced a €10 million disbursement as part of a larger €30 million budget support program. This funding will help implement the National Strategy for Education Development 2030 and the Programme for Professional Training of Citizens 2021-2025, improving the quality and relevance of both general secondary education and vocational training. As part of his visit, Síkela toured the Rogun Hydropower Plant, a crucial project for Tajikistan’s energy infrastructure. “With its Global Gateway strategy, the EU is investing in Tajikistan’s future by supporting critical infrastructure upgrades, expanding renewable energy capacity, and modernizing key industries such as cotton production,” Síkela stated. “These investments will reduce energy losses, create jobs, and open new export markets”.

European Union

Visit by EU’s Sikela Strengthens Global Gateway Partnership with Turkmenistan

On March 12, European Commissioner for International Partnerships Jozef Síkela visited Turkmenistan, as part of the European Union’s work to expand cooperation under the Global Gateway strategy. The visit focused on transport connectivity, renewable energy, and trade facilitation, aiming to integrate Turkmenistan into regional and global economic networks, according to the EU Delegation to Turkmenistan. Global Gateway and the Trans-Caspian Transport Corridor The Global Gateway strategy is the EU’s initiative to bridge global investment gaps by promoting sustainable connectivity in digital, energy, and transport sectors, while strengthening education and research systems. The initiative seeks to mobilize €300 billion in public and private investments between 2021 and 2027, fostering sustainable growth and resilient partnerships worldwide. A key topic during Síkela’s meetings with Turkmenistan’s President Serdar Berdimuhamedov and Foreign Minister Rashid Meredov was the Trans-Caspian Transport Corridor, a strategic route enhancing connectivity between Central Asia and Europe. Síkela reaffirmed the EU’s support for Turkmenistan’s role in this corridor, emphasizing its potential to create faster, more secure trade routes. “We see Turkmenistan as a key partner for building stronger connections between Europe and Central Asia. By working together under the Global Gateway, especially through the Trans-Caspian Transport Corridor, we are creating faster, more secure trade routes that will open new opportunities for businesses, attract investments, and create jobs. Our joint efforts aim to cut trade times between Europe and Asia to only 15 days, while helping Turkmenistan become an important hub for commerce between Asia and Europe.” According to the Turkmen Foreign Ministry, Berdimuhamedov highlighted the Turkmenbashi Port as a vital transit hub on the Caspian coast, offering a direct link to the Black Sea, Europe, the Middle East, South Asia, and the Asia-Pacific region. While in Turkmenistan, Síkela visited the Turkmenbashi Port, where he met with Mammethan Chakyev, Director General of the Agency for Transport and Communications under the Cabinet of Ministers. He reaffirmed the EU’s commitment to supporting infrastructure modernization and regulatory alignment to international standards. Energy and Climate Cooperation As part of the visit, two key initiatives were launched under the EU-Turkmenistan bilateral cooperation facility: A €6 million project, implemented by the International Trade Centre (ITC), will support Turkmenistan’s accession to the World Trade Organization (WTO) and promote economic modernization. A €4.5 million initiative, implemented by GIZ, aims to advance renewable energy development, reduce methane emissions, and improve energy efficiency. Síkela also welcomed Turkmenistan’s accession to the Global Methane Pledge, stressing the importance of emissions reduction and sustainable energy solutions for fostering a greener economy. The EU’s technical and financial assistance will further support Turkmenistan’s efforts to align with international trade and environmental standards.