Foreign Investment - The Times Of Central Asia

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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...

Uzbek-U.S. Realtions

Insider’s View: Uzbekistan–U.S. – A New Era of Environmentally Friendly and Energy-Efficient Investment

Today, environmentally friendly and energy-efficient projects are no longer just a fashionable trend but a factor of global competitiveness. Uzbekistan, once regarded as a country with a resource-based energy system and limited opportunities for the adoption of modern technologies, is now becoming a hub for “green” investment and innovation. A strategic partnership with the United States plays a special role in this process, encompassing key areas ranging from energy and ecology to finance, education, and culture. Clean and innovative projects are becoming the hallmark of Uzbek-American relations, shaping a new model of cooperation in the 21st century. Green Energy and Strategic Partnership Uzbekistan is moving confidently toward a “green” future. While in 2018 renewable energy sources accounted for less than one percent of electricity generation, from January to July 2025, renewables already provided 20.3% of the country’s total electricity. More than 11 billion kWh of “green” energy were produced, including 6.4 billion kWh from solar power plants and 3.6 billion kWh from wind farms. This volume saved 3.6 billion cubic meters of natural gas and prevented over 2.2 million tons of harmful emissions. Every day, renewables now generate about 26.7 million kWh – enough to cover the needs of 7.28 million households for half a year, or 3.64 million homes for an entire year. Currently, 10 solar and 4 wind plants with a combined capacity of more than 4.5 GW operate across 10 regions of the country. A key focus of Uzbek-American cooperation has become “green” energy. In 2025, Allied Green Ammonia (AGA), together with the U.S. company Plug Power, announced a major project for the production of sustainable aviation fuel, green diesel, and urea. The plan includes the supply of electrolyzers with a capacity of up to 2 GW for the future complex. A final investment decision is expected by the end of 2025, and the project has already been recognized as one of the flagship initiatives for Central Asia. Air Products – A Flagship of American Presence Air Products, a global leader in industrial gases and hydrogen energy, occupies a special place in Uzbek-American cooperation. In the Kashkadarya region, the company participates in a large-scale gas-to-liquids (GTL) project worth around $1 billion. The complex is designed to produce about 1.5 million tons of synthetic fuels per year, including diesel, jet kerosene, and naphtha. Its structure includes air separation units, autothermal reformers, and hydrogen production facilities. This project has become a landmark example of how U.S. technologies are transforming Uzbekistan’s energy sector. In addition to GTL, Air Products is actively developing industrial gas production in Uzbekistan. The company participates in oxygen, nitrogen, and hydrogen production projects, introduces the latest PSA units, as well as freezing and storage technologies that reduce food losses and enhance economic resilience. Furthermore, the company has implemented a “green financing” system that links investments to sustainability principles. These projects not only strengthen the country’s industrial potential but also pave the way for positioning Uzbekistan as a regional hub for “green” energy. The company’s future plans...

Japan

Tokyo Steps Up: Iwaya’s Central Asia Tour Signals Japan’s Long-Term Commitment

Japanese Foreign Minister Takeshi Iwaya made a landmark trip to Central Asia from August 24–28, 2025, holding talks in Kazakhstan and Uzbekistan. Tokyo framed the visit as a bid to deepen bilateral ties and revive the Central Asia plus Japan leaders’ summits. The visit fulfilled commitments made by then-Prime Minister Kishida, who had planned a similar tour in 2024 before cancelling at the last minute due to a domestic earthquake alert. Strategic Engagement Iwaya’s visit reflects Tokyo’s long-standing, multifaceted approach to Central Asia. Analysts emphasized to The Times of Central Asia that Japan is pursuing “trust-building diplomacy” in the region, focusing on human capital, infrastructure, and governance rather than quick geopolitical wins. Tokyo inaugurated the Central Asia plus Japan Dialogue format in 2004, making it the first outside power to group all five Central Asian republics within a single framework. As Professor Timur Dadabaev of Tsukuba University told The Times of Central Asia, Tokyo is seen “not as a competing hegemon, but as a partner that invests in the region’s human capital, infrastructure, and governance in ways that reinforce independence.” This approach contrasts with what has been characterized as the transactional models of other powers. On August 25, Iwaya met with Kazakhstan’s Deputy Prime Minister and Foreign Minister Murat Nurtleu in Astana, marking his first official visit to the country. The talks underscored both sides’ commitment to strengthening ties as strategic partners and in upholding a “free and open international order based on the rule of law.” The ministers welcomed active exchanges and pledged to expand cooperation in trade, investment, mineral resources, disaster prevention, and nuclear non-proliferation. They also announced plans to accelerate preparations for the long-delayed Central Asia plus Japan summit. [caption id="attachment_35524" align="aligncenter" width="1000"] Japanese Foreign Minister Iwaya with Kazakh Foreign Minister Nurtleu in Astana after their meeting on August 25, 2025; image Japan MOFA[/caption] In Tashkent, Iwaya echoed this message, calling Uzbekistan “an important strategic partner,” and highlighting the first-ever foreign ministers’ strategic dialogue held there. Japanese officials also stressed their policy does not aim to pressure Central Asian partners on sensitive issues. Characterizing Japan as a “catalyst to promote interconnectivity and inter-regional cooperation,” Foreign Ministry spokesman Toshihiro Kitamura stated that Tokyo does not see a zero-sum “competition between Japan and other countries. We would like to see Central Asian countries work together with other parts of the world.” In Tashkent, Kitamura explicitly noted that while Japan condemns Russia’s invasion of Ukraine, it will not pressure Uzbekistan or others to take the same stance. “The relationship between Russia and the Central Asian countries is a very delicate issue. Each country should take into account the relations it establishes with other countries. Even if it is with Russia, such relations do not affect the relations of other countries with Japan,” Kitamura stated. Bilateral Agreements In Kazakhstan, Iwaya held high-level talks with President Kassym-Jomart Tokayev and Foreign Minister Nurtleu. Tokayev welcomed Japan as a “reliable and close partner in Asia” and said ties are “developing dynamically.” The sides agreed to...

Civil Aviation

Kazakhstan Boosts Air Transport Sector with New Fleet and Airport Revamps

Kazakhstan is set to double its civil aircraft fleet over the next five years, increasing the number of aircraft from 103 to 216 by 2030. According to the Ministry of Transport, in 2025 the country's fleet will add six new Airbus A320s and one Boeing 737 MAX 8. In January 2025, FlyArystan and Air Astana received new aircraft as part of this expansion. The government’s long-term plan aims to boost the number of aircraft operated by Kazakh airlines to 216 by the end of the decade. “This year, 36 new international routes have been launched, and eight foreign airlines have entered the market. There are currently 61 domestic routes with 850 flights per week,” said Deputy Minister of Transport Maksat Kaliakparov. As part of domestic connectivity efforts, 21 subsidized routes are now operating across nine regions, with approximately $12 million allocated for these services in 2025. The government’s priority is to improve air access to tourist destinations such as Usharal, Urdar, Kokshetau, and Turkestan. Airport Infrastructure Development Major investments are also being channeled into the country’s largest airports in Astana, Almaty, Shymkent, and Aktobe, all of which are being developed into multimodal transport hubs. In Astana, a $1.1 billion modernization project for Nursultan Nazarbayev International Airport began in 2025. Plans include the construction of a second runway, a third passenger and cargo terminal, and a multifunctional complex known as the Aerotropolis. The new facility will feature an industrial and logistics zone, business centers, hotels, and retail space. In Almaty, the airport is undergoing modernization in line with a General Development Plan extending to 2050. The initial phase includes reconstructing the domestic terminal, building a taxiway, upgrading the runway and fueling infrastructure, and establishing a cargo apron and maintenance hangar. Future phases envision a hotel and a multi-level parking facility. During the construction phase, more than 1,800 jobs are expected to be created, with an additional 550 jobs during operations. Shymkent opened a new 40,000 square-meter terminal in December 2024, boosting its annual passenger capacity from 800,000 to 6 million. Plans are underway to construct a new 3,500-meter runway and develop a multimodal hub connecting the airport with the Ontustik Special Economic Zone. In Aktobe, a multifunctional logistics center is being implemented at the airport. As part of this effort, the fuel filling complex is being upgraded, and storage capacity will more than double, facilitating an increase in flight operations. Authorities are also considering the construction of a second runway, which would allow the existing runway to undergo major repairs without disrupting service. “In addition, the government has decided to expand the boundaries of special economic zones at the country's largest airports. This will attract investors, develop industry and logistics, and turn Kazakhstan's air hubs into growth points for the national economy,” the government said in a statement. Foreign Investment and Regional Expansion As previously reported by The Times of Central Asia, the German company Skyhansa intends to construct a new cargo and passenger airport in Kazakhstan’s Zhetysu region. The project...

Japan

Bridges, Not Blocs: Japan’s Central Asia Approach

Japan is one of the countries that has been most active in recent years in terms of deepening political and economic relations with the republics of Central Asia. However, the geopolitical and ideological grounds for Tokyo's activism have received less attention than those of other countries. In early August 2024, then Prime Minister Fumio Kishida was scheduled to visit the region, but the visit was cancelled at the last minute due to the risk of a major earthquake that could have struck Japan at that time. During his visit, Kishida was also expected to announce the launch of an economic aid package for the Central Asian republics. As confirmed by the Ministry of Foreign Affairs in Tokyo, Japanese Foreign Minister Takeshi Iwaya is visiting the region over the coming days, landing in Kazakhstan on August 24, before moving on to Uzbekistan until August 28. In the two countries, he will meet with his Kazakh and Uzbek counterparts, Murat Nurtleu and Bakhtiyor Saidov, respectively, with the aim in both cases of strengthening bilateral relations. Japan's interest in Central Asia is long-standing: the Central Asia Plus Japan Dialogue format was launched back in 2004, a platform that has been emulated by several countries in the following years. From a political point of view, this is a very smooth relationship, as confirmed to The Times of Central Asia by Timur Dadabaev, Professor of International Relations at the University of Tsukuba. “Japan’s engagement with Central Asia is driven less by immediate material gain and more by its pursuit of trust-building diplomacy,” Dadabaev told TCA. “It is a relationship rooted in Japan’s desire to be seen as a reliable, non-imperial partner that supports the sovereignty, stability, and regional agency of Central Asian states. Unlike other powers, Japan positions itself as a ‘distant neighbor without hidden agendas,’ which makes its initiatives particularly well-received. Over the years, this has translated into Japan being perceived not as a competing hegemon, but as a partner that invests in the region’s human capital, infrastructure, and governance in ways that reinforce independence rather than dependence.” The relationship between Japan and the Central Asian republics is based on many concrete elements - cooperation on energy, migrant workers, and connectivity - which, as Tomohiko Uyama, Professor of Modern History and Politics of Central Asia at Slavic-Eurasian Research Center at the Hokkaido University pointed out to TCA, represent the basis for broader diplomatic engagement. “The relationship between Japan and Central Asia is based on geopolitical factors. For Japan, Central Asia is a region that shares troublesome neighbors, Russia and China,” Uyama said. “Increasing Japan's presence in this region is important for curbing the excessive expansion of China and Russia’s global influence. However, strengthening diplomatic relations requires fostering economic and human relations. Therefore, in addition to its traditional technical cooperation, Japan is seeking to promote decarbonization, transportation connectivity, and human resource development.” Professor Dadabaev also stresses that the two dimensions - the one linked more to concrete elements and the one that has more to...

Foreign Investment

Kyrgyzstan Sees Continued Growth in Foreign Direct Investment

Kyrgyzstan continues to show steady growth in attracting foreign direct investment (FDI), with figures exceeding pre-pandemic levels. According to the National Statistical Committee, FDI reached over $1 billion in 2024, and the positive momentum has continued into 2025. In the first quarter of 2025, Kyrgyzstan attracted $288.3 million in direct investment, up 44% compared to the same period in 2024. The National Statistical Committee categorizes investments as coming from either Commonwealth of Independent States (CIS) countries or non-CIS countries, with volumes from both sources remaining roughly comparable. Among non-CIS nations, China maintained its position as Kyrgyzstan’s largest investor, contributing $66.3 million during the first quarter. Among CIS countries, Russia led with $56 million, while Kazakhstan remained a key regional partner with nearly $50 million invested from January to March 2025. Other CIS countries contributed considerably smaller amounts. Turkey also continues to play a significant role, investing $62 million in Kyrgyzstan’s production sector. Other notable contributors include the Netherlands, with $23.8 million. Uzbekistan demonstrated marked growth, following the signing of a bilateral agreement on the demarcation of certain border areas and water resources. Uzbek investments reached more than $5 million in the first quarter of 2025, up sharply from $237,000 in all of 2024. India likewise recorded a surge in investment, increasing from $91,000 in 2024 to $1.9 million in the first three months of 2025, an almost 2,000% rise. Bishkek remains the country’s most attractive destination for foreign investment, drawing more than $525 million in 2024. The Chui region ranks second, driven by the expansion of factories and processing enterprises with foreign participation. The manufacturing sector continues to be the primary target for foreign investment, followed by financial intermediation and insurance. Additional capital is flowing into mineral extraction, trade, and equipment repair.