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China Export/Import Industry Automobile Industry Government Economic Cooperation

Uzbekistan Boosts Car Production and Expands Exports

Between January and October 2024, Uzbekistan produced 338,000 vehicles, generating $455 million in car exports, according to figures revealed during a government meeting chaired by President Shavkat Mirziyoyev on November 25. Next year, the country aims to manufacture 450,000 vehicles in 2025 and boost export revenues to $700 million. The automotive sector has become a cornerstone of Uzbekistan's industrial growth, accounting for 10 percent of the country’s total industrial output. Currently, the industry produces 1,400 types of automotive components and has achieved a 4 percent reduction in production costs. To strengthen domestic manufacturing further, the government plans to launch 63 projects worth $325 million, facilitating the production of an additional 700 types of automotive parts. Uzbekistan’s vehicle assembly incorporates major global brands, including Chevrolet (USA), as well as South Korean and Chinese manufacturers. The country’s commitment to innovation and green energy was underscored by the June opening of a BYD electric vehicle plant in Jizzakh, which marked a significant milestone for the industry. The new Jizzakh plant currently produces 50,000 electric vehicles annually during its first phase. Planned expansions include: Second phase: A $300 million investment to scale production to 200,000 electric vehicles per year. Third phase: A $500 million investment to increase capacity to 500,000 vehicles annually. These developments highlight Uzbekistan’s commitment to becoming a regional leader in electric vehicle production and innovation. The country’s automotive industry has demonstrated remarkable growth, fueled by strategic investments in local manufacturing and a focus on sustainable technologies. By prioritizing electric vehicles and expanding exports, Uzbekistan is positioning itself as a competitive player in the global automotive market.

Oil & Gas Export/Import Industry Motor fuel LPG Oil refinery

Kazakhstan Needs a Fourth Oil Refinery to Meet Its Growing Demand for Motor Fuel

Speaking in parliament on November 25, Kazakhstan’s Energy Minister Almasadam Satkaliyev announced that the country anticipates a shortage of motor fuel by 2036. To address this, he emphasized the need to design a new oil refinery with a capacity of 10 million tons per year by 2030, with construction slated to begin in 2032. According to Satkaliyev, the proposed refinery will ensure Kazakhstan’s fuel demands are met from 2040 to 2050 while also enabling exports to rapidly developing markets in Central, South, and Southwest Asia. Currently, Kazakhstan operates three oil refineries - located in Shymkent, Pavlodar, and Atyrau - which are sufficient to meet domestic demand for gasoline and diesel fuel. However, during seasonal shortages, Kazakhstan imports additional fuel from Russia. Satkaliyev provided details on the country’s fuel production and import figures for 2024. Kazakhstan plans to produce 10.9 million tons of fuel this year, including 5.1 million tons of gasoline, 0.6 million tons of aviation fuel, and 5.2 million tons of diesel. In addition, approximately 1 million tons of fuel will be imported from Russia, comprising 0.285 million tons of gasoline, 0.3 million tons of aviation fuel, and 0.45 million tons of diesel. By 2032, Kazakhstan’s annual fuel production is expected to reach 19 million tons, including 8.2 million tons of gasoline, 1.5 million tons of aviation fuel, and 9.3 million tons of diesel. This increase will not only eliminate the need for imports but also enable the country to export surplus fuel. Satkaliyev also addressed the domestic supply of liquefied petroleum gas (LPG), which is the most affordable and widely used automobile fuel in Kazakhstan. From January to October 2024, Kazakhstan produced 2.5 million tons of LPG, compared to 2.4 million tons in 2023. The Energy Ministry has set the planned production volume for 2024 at 2.9 million tons. To stabilize the LPG market, the ministry has banned its exports since November 2023. The domestic market requires 164,000 tons of LPG monthly, while the ministry distributes 130,000-140,000 tons. Looking ahead, the government aims to meet rising LPG consumption by introducing new production capacities, with plans to increase annual LPG production to 4.2 million tons by 2032.

Industry Germany Green economy Funding green projects International investment COP29

Uzbekistan and Germany Partner on Green Industrialization with €3 Million Grant

On November 13, at the 29th UN Climate Change Conference (COP29) in Azerbaijan's capital Baku, Uzbekistan's Ministry of Economy and Finance signed a memorandum with the German International Cooperation Society (GIZ) to secure additional funding for a project aimed at supporting the private sector in green industrialization. As part of the initiative, Germany has allocated €9 million to help Uzbekistan’s private sector transition to a green economy. The project is designed to assist the Uzbek government in implementing economic reforms and fostering sustainable economic development, focusing on enhancing the capacity of both the public and private sectors to adopt green industrialization practices. The initiative will also provide technical expertise in measuring and certifying greenhouse gas emissions, supporting Uzbekistan’s participation in international carbon trading mechanisms, and aligning with the European Union’s Cross-Border Adjustment Mechanism (CBAM). Additionally, it aims to promote resource-saving and sustainable production by encouraging the private sector to adopt green technologies, including circular economy practices and green industrial park models. To further bolster the project, a €3 million grant was approved during the conference. This funding will complement the ongoing initiative, titled “Support to the Private Sector and Advice on Economic Policy in Uzbekistan.”

Kyrgyzstan Triples Ice Cream Exports

Kyrgyzstan has doubled its ice cream production in the last five years, and tripled its exports to other countries in the region. Last year, the country produced 10,800 tons of ice cream, up from 5,200 tons five years earlier. This increase is due to growing demand for Kyrgyz ice cream in other Eurasian countries, primarily Kazakhstan, Uzbekistan, and Russia. Exports to these countries have increased from 2,800 tons per year to 6,100 tons since 2019. “At the same time, imports of ice cream have shown good dynamics recently, and they have decreased from 2,788 tons (per year) to 1,969 tons. This indicates the substitution of imported products with domestic production,” said the Ministry of Agriculture of the Kyrgyz Republic. According to official data, Kyrgyzstan imports ice cream from Turkey, Belarus, and Lithuania. While a kilogram of ice cream from Russia costs 240 KGS ($3), Lithuania and Turkey ask an average of 570 KGS ($7). The cost of one kilogram of ice cream from Kyrgyzstan is just over 200 KGS ($2.5).

Turkey Industry Defense Army Military Information military equipment

Kazakhstan May Manufacture Turkish Bayraktar Drones

A delegation headed by Kazakhstan's Minister of Defense , Colonel General Ruslan Zhaksylykov, attended the IV International Exhibition of Defense and Aerospace Equipment SAHA EXPO-2024 opening ceremony in Istanbul. The event brought together leading representatives of the military-industrial complex of Europe, Asia, and the Middle East. It demonstrated the latest developments, including automatic troop and battle management systems, robotic systems, communications, air defense, radio reconnaissance, electronic warfare, radio countermeasures, unmanned aerial vehicles, and laser technologies. During the exhibition, Zhaksylykov held talks with Turkish Minister of National Defense Yaşar Güler and Chairman of the Defense Industry Agency Haluk Görgün. He also met with Mohammed bin Mubarak Fadel Al Mazroui, UAE Minister of State for Defense Affairs. Special attention was paid to the talks with Baykar Defense CEO Haluk Bayraktar. The parties agreed on developing a roadmap for the localization of the production of tactical unmanned aircraft systems and barrage munitions at the operational level in Kazakhstan. Kazakhstan is actively developing the production of unmanned aerial vehicles (UAVs) with the involvement of foreign partners. One of the significant projects is the joint production of Anka drones with Turkey, which will start in 2024. The agreement between Turkish Aerospace Industries (TAI) and Kazakhstan Engineering provides for technology transfer and the creation of an assembly line, allowing Kazakhstan to produce drones independently in the future. In addition to Turkey, Kazakhstan cooperates with South Korea and China on drones. In 2023, Petropavlovsk established local drone production using components from China. Such steps contribute to the development of Kazakhstan's defense industry and reduce dependence on imports.

Daewoo To Invest $730 Million in Turkmenistan

South Korean company Daewoo Engineering & Construction has won a tender to build a fertilizer plant in Turkmenistan. The project is estimated to cost a trillion won (about $730 million). According to the company, the new plant will be located in Turkmenabat, 450 km east of Ashgabat. It will have an annual capacity of 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate, and will include additional auxiliary facilities. After the completion of the main contract, final data on the contract's value and implementation terms will be published. The company has stated that implementing the project will allow Daewoo E&C to strengthen its presence in Central Asia and expand its activities in the petrochemical and agricultural sectors, infrastructure, and urban projects. In the future, the company intends to offer environmentally friendly technological solutions to further cooperate with Turkmenistan. Daewoo E&C noted that winning the tender was possible thanks to the support of the South Korean government, including during the official visit of President Yun Seok Yeol to Turkmenistan in June. The company's Chairman, Jeong Won-ju, also met with the Chairman of the People's Council of Turkmenistan, Gurbanguly Berdimuhamedov, in November 2022 during his visit to South Korea. The two sides signed a memorandum of understanding, cementing an agreement on close cooperation. Jeong Won-ju has visited Turkmenistan three times since then, which helped strengthen ties and successfully conclude negotiations. Daewoo E&C is aiming to become a leader in the global EPC (engineering, procurement, and construction) market. “We strive to participate in projects that contribute to a sustainable future,” a company representative stated. Turkmenistan is implementing several major projects with the participation of South Korean companies. Hyundai Engineering has agreed with state-owned Turkmengas to expand the Galkynysh gas field. This project includes the construction of a fourth gas desulfurization facility, making it the largest in the country's history. Korean companies have also been actively constructing and developing an oil refinery in Kiyanly. Projects to create “smart cities” are also being discussed.