Export/Import - The Times Of Central Asia

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Export/Import Economy Economic Diversification Investment Projects

Kazakhstan to Slash Imports with $2.6 Billion Domestic Output Plan

Kazakhstan's Ministry of Industry and Construction (MIC) has announced plans to reduce the country’s reliance on foreign imports by replacing goods worth KZT1.4 trillion ($2.6 billion) with domestically produced alternatives by 2025. This ambitious goal is intended to be achieved through the launch of new production facilities in the automotive and household appliances sectors. According to the MIC's Industry Committee, 190 investment projects are slated for implementation in 2025, creating over 20,000 permanent jobs for Kazakhstani workers. Once fully operational, these projects are expected to generate an output of KZT2.2 trillion ($4.1 billion), with KZT0.8 trillion ($1.5 billion) designated for export. The import substitution effort is forecasted to account for KZT1.4 trillion ($2.6 billion) of this total output. “This initiative will bolster domestic production, reduce dependence on imports, and enhance the competitiveness of Kazakhstan's national economy,” stated the committee. Trade Trends and Key Import Partners Kazakhstan's import volume for January - October 2024 was $48.4 billion, as reported by the Bureau of National Statistics. During this period, imports declined by 3.3% compared to the same timeframe in 2023. The country’s key import partners include: Russia: 29.7% of total imports China: 25.5% Germany: 4.9% USA: 3.9% France: 3.2% Republic of Korea: 3.1% The largest import categories in 2024 were cars (4.1%), aircraft (3%), medicines (2.9%), cell phones (2.7%), and motor vehicle bodies (2.1%). Significant Projects on the Horizon To address these import trends, major projects in the automotive, household appliances, and metallurgy sectors are planned for 2025. These include: Almaty: Construction of a multi-brand plant by Astana Motors to produce Chinese passenger cars. The facility will have an annual production capacity of 90,000 vehicles. Kostanay Region: Establishment of the KIA Qazaqstan plant, which will produce 70,000 vehicles annually of the Korean brand. Combined, these automotive projects will create 3,700 jobs. As previously reported by The Times of Central Asia, Kazakhstan is expected to record high sales of passenger cars by the end of 2024, with approximately 70% of vehicles purchased being domestically produced. Regional Investment Distribution The Turkestan region and Almaty City lead in the number of new investment projects, with 15 and 14 initiatives, respectively. The Kostanay and Karaganda regions also stand out, particularly Karaganda, which is set to receive KZT256 billion ($486 million) for ferrous and non-ferrous metallurgy projects. Overall, Kazakhstan’s manufacturing sector is projected to attract KZT1.2 trillion (nearly $2.3 billion) in investments in 2025, further solidifying the country’s industrial base and economic resilience.

Export/Import Automobile Industry Trade Market economy

Kazakhstan Expects Record Car Sales

Kazakhstan's automobile market continues to grow, with sales of new cars on track to match or exceed last year’s record. In 2023, Kazakh motorists purchased over 198,000 new vehicles, and experts predict similar or higher figures for 2024. According to the Kazakhstan Automobile Union (KAO), 20,984 passenger cars and commercial vehicles were sold in November 2024, a 10.7% increase compared to November 2023. Over the first 11 months of 2024, Kazakh dealers sold 179,628 new cars, surpassing the 175,100 sold during the same period last year. Despite earlier concerns of a potential market slump, industry experts remain optimistic. KAO head Anar Makasheva had cautioned that the 2023 record represented “inorganic growth” driven by pent-up demand. However, Artur Miskaryan, general director of the Agency for Monitoring and Analysis of the Automobile Market (AMAAR), believes the market’s positive trend will continue. “Kazakhstan may well repeat or even surpass last year’s record for fleet renewal, potentially reaching 200,000 new car sales,” Miskaryan stated. He acknowledged some fluctuations, noting that in certain months, sales fell below 2023 levels but were offset by stronger performance in other periods. Kazakhstan’s domestic car manufacturers, based in Kostanai and Almaty, are also close to replicating last year’s success. In 2023, locally produced vehicles accounted for over 70% of the 198,000 new cars sold - approximately 148,000 units. Miskaryan estimates that domestic production will maintain a similar share in 2024. As previously reported by the The Times of Central Asia, stricter regulations for importing foreign cars into Kazakhstan were introduced on December 1, 2024. However, experts anticipate that these changes will not significantly affect the market until spring 2025. Kazakhstan’s automobile sector continues to demonstrate resilience and robust growth, positioning itself for another record-breaking year in 2024.

Export/Import Trade Economic Growth CIS International trade Foreign trade turnover

Uzbekistan’s Foreign Trade Turnover Reaches $59.4 Billion in 2024

From January to November 2024, Uzbekistan’s foreign trade turnover (FTT) reached $59.4 billion, marking an increase of $2.1 billion or 3.6% compared to the same period in 2023, according to the Uzbek Statistical Agency. The volume of exports rose to $24.2 billion, a 4.4% increase compared to January-November 2023. Imports totaled $35.1 billion, growing by 3.0% over the same period. Kazakhstan emerged as one of Uzbekistan’s largest economic partners, following China and Russia. Factors contributing to this include a shared border, trade liberalization, and economic collaboration within the CIS free trade zone. Uzbekistan currently conducts trade with 195 countries, with significant FTT shares attributed to: China: 19.0% Russia: 18.0% Kazakhstan: 6.5% Turkey: 4.4% South Korea: 3.0% The Commonwealth of Independent States (CIS) countries accounted for 35.4% of Uzbekistan’s FTT during this period, reflecting a 3.0% increase from 2023. The growing economies of Uzbekistan’s trading partners in the CIS suggest a potential for increased demand for Uzbek exports. However, trade with non-CIS countries saw a decline. Uzbekistan’s trade share with other foreign nations dropped by 3.0% compared to the same period in 2023, comprising 64.6% of the total FTT.

Agricultural Export Economy Agriculture Export/Import Russia

Tomato Surplus in Turkmenistan and Uzbekistan Amid Low Russian Demand

Greenhouse vegetable farmers in Turkmenistan and Uzbekistan are grappling with a significant oversupply of tomatoes due to a decline in demand from Russian buyers, according to analysts at EastFruit. Turkmenistan's greenhouse farmers are reporting extreme difficulties in selling their produce, with prices falling below $1 per kilogram. “Demand in the Russian market has dropped sharply, continuously exerting downward pressure on prices,” noted the EastFruit report. Turkmenistan has rapidly expanded its greenhouse farming sector in recent years, increasing production volumes of tomatoes. However, the sharp decline in Russian purchasing power is presenting a major challenge. Similarly, tomato prices in Uzbekistan have plummeted, averaging 32% lower than last year. Wholesale prices for red, round greenhouse tomatoes stand at $1.17 per kilogram for smaller quantities, with export prices similar to those in Turkmenistan. Despite these low prices, Uzbekistan often prioritizes exporting premium-quality tomatoes, which can fetch higher prices internationally than in the domestic market. Uzbek exporters have highlighted the negative impact of the depreciation of the Russian ruble and financial instability in Russia. These factors have complicated the export of greenhouse vegetables to one of the region's largest markets, exacerbating the difficulties faced by growers.

Energy Security Energy Infrastructure Electricity supply Export/Import Afghanistan

Afghanistan’s Electricity Restored Following Supply Issues from Uzbekistan and Turkmenistan

The Afghan Power Supply Company, Da Afghanistan Breshna Sherkat (DABS), recently announced disruptions in electricity imports from Uzbekistan and Turkmenistan. This has left many regions in darkness and sparked public dissatisfaction over the lack of a reliable power supply. The interruptions stemmed from technical problems on the Uzbek side and hurricane-related issues in Turkmenistan. Uzbek authorities confirmed that they were working to resolve the issue swiftly. On December 15, DABS confirmed that the technical issues had been resolved and normal electricity supply from both Uzbekistan and Turkmenistan had been fully restored. Afghanistan relies heavily on electricity imports from neighboring countries, particularly Uzbekistan. In 2023, Uzbekistan extended its contract to export electricity to Afghanistan, underscoring the continued energy partnership between the two nations. In earlier discussions, Afghanistan offered Uzbekistan opportunities to invest in its natural resources, including oil, gas, and copper deposits in the provinces of Ghazni and Herat, along with the potential to establish mineral processing plants.

China Export/Import Xinjiang Silk Road Economic Belt Economic Cooperation International trade

Kazakhstan, Xinjiang, and Hong Kong Forge Trilateral Partnership to Boost Trade, Investment, and Connectivity

Kazakhstan, China’s Xinjiang Uyghur Autonomous Region (XUAR), and the Hong Kong Special Administrative Region have agreed to establish a joint mechanism for trilateral cooperation. The agreement was reached on December 5 during a meeting in Urumqi, Xinjiang, attended by Kazakhstan's Vice Prime Minister Serik Jumangarin, XUAR Party Committee Secretary Ma Xingrui, and Hong Kong’s Secretary for Commerce and Economic Development Algernon Yau. At the meeting, Ma Xingrui underscored Xinjiang’s strategic role as a bridge connecting Kazakhstan with Hong Kong and the broader Belt and Road Initiative. Highlighting Kazakhstan as a critical transport hub linking Europe and Asia, and Hong Kong as a global trade and logistics center, Ma proposed developing a framework for collaboration. The suggested mechanism would focus on boosting investment and strengthening cooperation in key sectors, including finance, energy, agriculture, logistics, and cultural exchanges such as education, healthcare, tourism, and scientific research. Vice Prime Minister Jumangarin proposed establishing a Kazakhstan-Xinjiang-Hong Kong Cooperation Council to create actionable strategies for enhancing investment, trade, and economic ties. He suggested hosting the council’s inaugural meeting in Kazakhstan next year. Jumangarin also highlighted China’s significant investment in Kazakhstan, noting 145 joint projects worth $38 billion and 5,000 joint ventures currently operating in the country. He invited businesses from Hong Kong and Xinjiang to collaborate on establishing production facilities in Kazakhstan, particularly for the deep processing of agricultural raw materials. “Kazakhstan is a major exporter of grain and oilseed products, with growing livestock exports,” Jumangarin said. “We encourage businesses from Hong Kong and Xinjiang to partner with us in producing value-added food products.” Hong Kong’s Secretary for Commerce, Algernon Yau, emphasized the city’s status as the world’s third-largest financial center and a global aviation hub connecting over 200 destinations. He welcomed Kazakh enterprises to register in Hong Kong, highlighting the city’s strong ties with ASEAN countries, which could provide Kazakh companies with expanded access to those markets. In a separate meeting, Jumangarin and Ma Xingrui discussed plans to double trade turnover between Kazakhstan and Xinjiang. XUAR is Kazakhstan’s largest trading partner among Chinese regions, accounting for nearly half of the bilateral trade volume. In 2023, trade between Kazakhstan and XUAR grew by 62%, reaching $20.3 billion. During the first nine months of 2024, trade increased by another 22.46%, reaching $17.67 billion. Both sides are working toward the goal set by the presidents of Kazakhstan and China to raise overall trade turnover to $100 billion. Another key topic was the development of river transportation as an alternative to road and rail routes. Kazakhstan proposed creating a multimodal transit corridor through Russia, Kazakhstan, and China using the transboundary Irtysh River, with initial freight traffic volumes projected at 2–2.5 million tons. Additionally, a potential route along the transboundary Ili River was discussed, linking the Kazakh city of Konayev with the Chinese city of Yining. The agreements reached at the trilateral meeting represent a significant step toward closer collaboration between Kazakhstan, Xinjiang, and Hong Kong. With plans to enhance trade, investment, and infrastructure development, the partnership holds great...