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Bilateral Trade

Japan Sets Sights on Deeper Economic Ties with Kyrgyzstan

In an interview with AKI.TV, Japan’s Ambassador to the Kyrgyz Republic, Ryuichi Hirano, said that Japan intends to move its longstanding relationship with Kyrgyzstan toward a broader economic partnership based on shared interests. Ambassador Hirano pointed to Kyrgyzstan’s growing economic and diplomatic weight. “I know that Kyrgyzstan’s economy is growing rapidly. Moreover, Kyrgyzstan is strengthening its presence in the international community, particularly as a prospective new member of the UN Security Council,” he said. Kyrgyzstan was elected to a non-permanent Security Council seat on June 3, 2026 for the 2027–2028 term, and will serve on the Council for the first time. Economic data for Kyrgyzstan has been robust in recent years. Official figures put Kyrgyzstan’s real GDP growth at about 11.1% in 2025, the second consecutive year above 11% and well above the 2025 forecasts of the International Monetary Fund and the Asian Development Bank. Ambassador Hirano stressed the need for more reciprocal cooperation. “I believe we already have a solid foundation for developing our bilateral relations on a mutually beneficial basis, and I would like to do my part to advance them,” he said. President Sadyr Japarov’s visit to Japan gave fresh impetus to deepening bilateral relations. On December 20, 2025, he met Prime Minister Sanae Takaichi, and the two leaders signed a joint statement on the further development of relations through mutually beneficial cooperation. In the interview, Ambassador Hirano said he attended the meeting and described it as productive and positive. The statement builds on the 2023 Joint Statement on Friendship and Comprehensive Partnership in the New Era, signed during Japarov’s November 2023 visit to Japan. The agenda has since shifted toward trade, investment, and commercial opportunities. Japan’s recorded exports to Kyrgyzstan reached ¥13.01 billion (US$82.1 million) in 2025, while imports from Kyrgyzstan totaled ¥79.2 million (US$ 505,000). Bilateral trade therefore remains small and heavily weighted toward Japanese exports, which leaves considerable room for diversification and growth, especially on the Kyrgyz side. Five areas stand out for the emerging partnership: critical minerals, including antimony and silicon; energy, especially hydropower and renewable electricity; transport infrastructure; agriculture and food processing; and digital technologies, satellite applications and education. Transport connectivity also has a regional dimension. The Tokyo Declaration adopted at the Central Asia plus Japan summit in December 2025 made stronger links between Central Asia and international markets a priority, including support for the Trans-Caspian International Transport Route. Kyrgyzstan’s role in the China–Kyrgyzstan–Uzbekistan railway, with tunnels now under construction, could strengthen its position not only in trade between China, Central Asia and Europe, but also in trade with Japan. While not mentioned directly by Ambassador Hirano, stronger institutional groundwork is also being laid. Japan and Kyrgyzstan signed a new double-taxation agreement on December 19, 2025. It entered into force on July 26, 2026, although most of its provisions apply from January 1, 2027. At their December meeting, the two leaders also agreed to establish an intergovernmental commission on trade, economy, culture and human exchange. They said they wanted to conclude a...

Water Management

Water Projects in Tajikistan: Japan Learns from a Troubled Grant

Residents of Moskva in Tajikistan’s Khatlon region reported receiving water for an average of just 10.9 hours a day in a 2017 survey, nearly four years after a Japanese-funded supply system was completed in June 2013. An external evaluation commissioned by the Japan International Cooperation Agency (JICA) gave the project a D rating, the lowest possible. Japan is now financing a new water supply system in Abdurahmoni Jomi district, also in the Khatlon region. The two projects illustrate how its approach to water supply assistance has developed, particularly in metering, utility management, and infrastructure maintenance. A Project That Met Its Targets on Paper Hamadoni district, which includes Moskva and lies near the Afghan border, had a population of approximately 119,000 when the original grant was planned. Some 59% of residents lacked access to a working water supply system, and only 16 of the district’s 47 village wells were operational. More than 70% of residents in village areas relied on canals and rivers for water. The grant financed three deep wells, elevated reservoirs, and a 32.9-kilometer pipeline network in Moskva, as well as a water supply system for two villages and drilling equipment. The project cost 19% more than planned and took 67 months instead of the expected 31. In 2016, the local utility reported that the system supplied water to all 22,505 residents of Moskva and 7,103 residents in the two villages, where it was distributed through communal taps. Leaks, Meters, and a Flat Fee The grant covered pipeline replacement in only part of Moskva. According to the local utility, approximately 70% of the pipes outside the project area needed replacement. Leaks occurred frequently but were not systematically recorded. The utility estimated losses at 35% to 50%, but without household meters it could not accurately distinguish consumption from leakage. Households paid a flat monthly fee of 13.4 somoni (about $1.50 at the time) for unlimited water use. Some residents left their taps running to irrigate gardens, particularly during the summer, reducing water pressure elsewhere in the network. The arrangement provided little financial incentive to reduce consumption. JICA Disagrees with Its Evaluator JICA’s Financial Cooperation Implementation Department issued a separate opinion challenging the D rating, arguing that the evaluation did not adequately reflect the project’s achievements. The department pointed out that the system delivered 7,580 cubic meters of water per day, compared with an originally projected daily average of 5,292 cubic meters. It also cited the expansion in coverage and improvements in water quality. The external evaluator, however, noted that the system had been designed to permit a 24-hour water supply, but service had been limited to a 13-hour daily schedule because of leaks and excessive consumption. The amount pumped into the network did not necessarily reflect how much water reached households. Metering Brings Improvements, 2017–2021 The evaluation recommended replacing deteriorated pipes, installing meters, improving maintenance, and explaining the new arrangements to residents. Japan had already begun a technical cooperation project in April 2017, while the evaluation was underway. It concluded...

Middle Corridor

Japanese Firms Test Middle Corridor Freight Route as Tokyo Funds Aktau Port Upgrade

Japan is assessing greater use of the Middle Corridor following trial shipments by Japanese companies, as Tokyo funds customs upgrades at Kazakhstan’s port of Aktau worth up to $4.5 million. The results of the trials were presented at an October 19 conference in Tokyo, which focused on Japan’s transport links with Central Asia and the Caucasus. The trials assessed delivery times and costs, alongside customs procedures and logistics services. Japan’s funding provides for the installation of a stationary X-ray inspection system for large cargo at Aktau, where containers are shipped across the Caspian Sea to Azerbaijan. The grant, agreed in January, is valued at up to 719 million yen (approximately $4.5 million). The equipment is expected to reduce inspection times by two-thirds. Kei Takagi, Japan’s State Minister of Economy, Trade and Industry, linked Tokyo’s interest in the Middle Corridor to efforts to diversify international transport routes and strengthen trade with Central Asia and the Caucasus. For Japanese exporters, the Middle Corridor could provide an alternative way to reach markets across Central Asia and onward to Europe. Japanese cargo must first reach the corridor by sea, through China or another point connecting to the overland transport network. The route’s attractiveness therefore depends on transshipment costs and reliable connections, including efficient customs clearance. In 2025, the Middle Corridor handled 4.12 million metric tons of freight, down from 4.48 million tons in 2024 but approximately five times the volume recorded seven years earlier. According to Kazakhstan’s Ministry of Transport, transit times along the corridor have fallen from 28–32 days to 13–17 days. The ministry’s estimate is for the corridor, rather than a quoted delivery time from Japan. Beyond freight transport, conference participants discussed digital infrastructure across the Caspian Sea. The Kazakh side highlighted the October 15 inauguration of a 380-kilometer fiber-optic cable linking Kazakhstan and Azerbaijan. The cable across the Caspian seabed is intended to carry international internet traffic between Central Asia and the South Caucasus, with adjustments to the line continuing through the end of 2026. Direct air connections were also discussed. Air Astana plans to launch scheduled flights between Almaty and Tokyo’s Narita Airport in December 2026.

Mining Investment

Kazakhstan’s Solidcore to Invest $25 Million in Japan Gold Exploration

Solidcore Resources, a leading Kazakhstan-based gold producer, is expanding into exploration in Japan. The company will invest $25 million in gold exploration across five project areas on the islands of Hokkaido and Kyushu, with the option to acquire interests of up to 80% in individual projects if exploration proves successful. Solidcore has partnered with Canada-based Japan Gold Corp., a company focused on mineral exploration in Japan. It has also acquired an 18.81% stake in Japan Gold for $6.85 million. If it exercises warrants allowing it to buy additional shares, its interest could rise to 19.9% on a partially diluted basis. Solidcore produces gold in Kazakhstan, and its shares are traded on the Astana International Exchange. In 2025, the company produced 395,000 ounces of gold equivalent, 19% less than a year earlier. Higher gold prices nevertheless pushed revenue up 13% to $1.5 billion. The partnership covers Hakuryu, Bajo, Mizobe, Ryuo, and Aibetsu, five of Japan Gold’s project areas. Three are on Hokkaido and two on Kyushu. Several are close to historic gold mines, while much of the surrounding territory remains underexplored using modern methods. At Hakuryu, drilling has already identified zones of high-grade gold mineralization. Geophysical surveys at Bajo detected anomalies interpreted as possible extensions of mineralized structures, with strike lengths of more than one kilometer. Mizobe lies in an area with geology similar to Hishikari, Japan’s largest commercially operating gold mine, which produced around 9 million ounces of gold between 1985 and 2025. Ryuo and Aibetsu include areas of historic mining. The Tokusei mine within Aibetsu produced 39,000 ounces of gold and 473,000 ounces of silver between 1930 and 1942. Solidcore CEO Vitaly Nesis said the company was attracted by the potential for large-scale gold discoveries and Japan’s relatively limited modern exploration. “Japan Gold’s license portfolio stands out to us. It has the makings of a large-scale, generational gold district with a distinctive style of geology that we have been historically successfully working with, in a stable, well-regulated, developed and notably under-explored jurisdiction,” Nesis said. Japan Gold holds mineral rights covering more than 3,000 square kilometers. In addition to the five project areas included in the agreement, it retains another 22 projects. The $25 million will fund drilling and other exploration work over three years rather than the purchase of developed deposits. After completing the program, Solidcore will be able to select the most promising areas and earn a 49% direct interest in one or more of them. If further studies indicate that mining could be economically viable, Solidcore will have the option to increase its interest first to 70% and then to 80%. To do so, it will have to fund a pre-feasibility study and then a bankable feasibility study for each selected project. Japan Gold Chairman and CEO John Proust said Solidcore’s strategy of expanding its reserves through geographic diversification fits with his company’s work building an exploration portfolio in Japan. The deal marks an overseas expansion for a major Kazakhstan-based gold producer. Within Kazakhstan, exploration and reassessment...

Japanese Investment

Japanese Investment Tackles Uzbekistan’s Aral Sea Crisis

Until recently, the rehabilitation center in Akmangit, a settlement in Karakalpakstan, relied on sewage trucks to remove wastewater. Although it receives about 3,500 patients with disabilities each year, the center had no sewer system. In March 2025, a Johkasou system, a compact Japanese unit that treats wastewater biologically, was installed at the center. The treated water can now be reused for irrigation instead of being hauled away. Similar systems were installed at a kindergarten and a specialized school. In their first four months of operation, the three units treated more than 16,400 cubic meters of wastewater. Although these installations are small relative to Karakalpakstan’s water and sanitation needs, they illustrate Japan’s approach in Uzbekistan’s Aral Sea region through local pilot projects tied to longer-term development programs. During an October 2025 visit, a United Nations Development Programme (UNDP) delegation and a representative of the Embassy of Japan in Uzbekistan saw residents using the program to introduce drip irrigation and expand small businesses. A smoked-fish producer in Samanbay employed 12 people. Since 2020, Japan has funded trials of water-saving and wastewater-treatment technologies in the region, supported climate-resilient agriculture, and introduced local business-development models. These projects draw less attention than Central Asia’s uranium, critical-mineral, energy, and transport deals. In Karakalpakstan, however, Japan has pursued influence through smaller projects intended to remain in place for years. Water and Agriculture Projects In September 2023, Japan provided $2 million for a UNDP program promoting climate-resilient agriculture in four districts of Karakalpakstan. By the program’s conclusion in 2025, more than 7,700 residents had gained access to clean drinking water. The Johkasou units were among the program’s most visible elements. Developed in Japan in the late 1940s amid sanitation problems, the decentralized systems offer an alternative where centralized sewer networks are impractical. Their treated water can be reused for irrigation. The program tested another Japanese technology on the dried Aral Sea bed. In 2024, UNDP planted 1,000 saxaul seedlings using a superabsorbent polymer (SAP) that retains moisture around plant roots. Saxaul, a desert shrub or small tree, helps stabilize sand and limit the spread of salt and dust from the former seabed. The 1,000 seedlings formed part of UNDP’s Green Aral Sea initiative. Between 2020 and March 2025, the program planted 823,000 trees across 658.2 hectares. In February 2026, Japan and UNDP launched a $4.6 million project scheduled to run through 2028. Its work includes irrigation rehabilitation, digital water monitoring, wastewater reuse, and desalination powered by renewable energy. More than 1,000 farmers and households are expected to benefit. Local Business Models Japan has paired these technologies with models for local economic development. One is the One Village, One Product Movement (OVOP), which began in Japan’s Oita Prefecture in 1979. Under the model, communities develop marketable products based on local resources and skills. In Karakalpakstan, OVOP has been applied to agriculture, handicrafts, and food processing, including the small businesses visited by the delegation in October 2025. Another Japanese approach is kaizen ("continuous improvement"). It seeks to improve production and...

Uranium

Kazakh Uranium for Asia: Japan Returns for Fuel, South Korea Expands Cooperation

Kazakhstan accounts for around 40% of global uranium production. China already receives not only raw material from the country but also finished fuel assemblies; Japan is signing new contracts after bringing some of its reactors back online; and South Korea is expanding cooperation with Kazakhstan’s nuclear industry. Kazakhstan itself, which for decades exported almost all of its uranium, is preparing to build its own nuclear power plants. These developments are gradually changing the country’s place in Asia’s nuclear energy sector. In December 2025, Kazatomprom, the world’s largest producer of natural uranium, agreed on new supplies with Kansai Electric Power, one of Japan’s major nuclear power operators. The agreement for the supply of uranium oxide concentrate, U₃O₈, was signed during events connected with a visit by a Kazakh delegation to Japan. This is not finished reactor fuel. U₃O₈, known in the industry as yellowcake, must undergo conversion, enrichment, and fuel fabrication after mining. For Kansai, the agreement provides another source of raw material for its nuclear fleet, while for Kazakhstan it continues cooperation with the Japanese company that began almost two decades ago. Japanese demand is rising again after a prolonged decline. The Fukushima Daiichi nuclear disaster in March 2011 led to the gradual shutdown of all the country’s commercial reactors. Restarts began in 2015 after new safety requirements were introduced. In February 2025, the Japanese government approved an energy policy that envisages increasing nuclear power’s share of electricity generation to around 20% by 2040. To achieve this, Tokyo will need not only to restart existing reactors but also to secure their fuel supply. Kansai has a particularly important role in this process. The company operates seven reactors at three sites: Mihama, Takahama, and Ohi. In 2025, it also resumed work to assess the possibility of building a new reactor at the Mihama site. No final decision on construction has yet been made. Kansai’s links with Kazakhstan began long before the current revival of Japan’s nuclear energy sector. In 2006, the company and Sumitomo joined the APPAK uranium mining project in southern Kazakhstan. Kazatomprom currently owns 65% of the company, Sumitomo 25%, and Kansai 10%. APPAK develops the western section of the Mynkuduk deposit in the Turkistan region. For the Japanese company, this provides a presence directly at the source of the raw material. For Kazakhstan, the partnership became one of the first major examples of Asian energy companies participating in its uranium mining industry. China Already Receives Finished Fuel Kazakhstan has gone further with China than simply supplying uranium concentrate. Ulba-FA operates in Ust-Kamenogorsk as a joint venture between the Ulba Metallurgical Plant and China’s CGNPC-URC. The Kazakh side owns 51% and the Chinese side 49%. The plant produces fuel assemblies for Chinese nuclear power plants. Industrial production began in 2021. In December 2022, the first shipment was sent to China, containing just over 30 tonnes of low-enriched uranium in finished fuel assemblies. By the end of 2024, the plant had reached its design capacity of 200 tonnes a year....