Trade - The Times Of Central Asia

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Sanctions

Kyrgyzstan Orders 50 Companies to Cease Activity Over Sanctions Risks

Kyrgyzstan has ordered 50 companies to cease activity after state agencies flagged them for sanctions risks, as Bishkek faces growing pressure over Russia-linked trade and payment channels. The move follows months of pressure from Western governments, which say some routes through Central Asia can be used to bypass sanctions imposed over the war in Ukraine. The Ministry of Justice did not name the companies, their owners, or their sectors. It also did not say whether any of them had direct links to Russia. The list was prepared by the Ministry of Economy and Commerce and other state bodies after checks into possible attempts to evade sanctions restrictions. The order was issued under an interagency mechanism for identifying dishonest participants in foreign economic activity and transactions with increased sanctions risks. The mechanism allows state bodies to use a simplified procedure to terminate the activity of legal entities after a formal submission. The Justice Ministry linked the move to efforts to protect the national economy from possible secondary sanctions. The European Union adopted its 20th sanctions package against Russia on April 23, less than a month before the Ministry of Justice order. The package added measures on energy, finance, trade, and crypto channels. It also used the EU’s anti-circumvention tool against Kyrgyzstan for the first time. Under that measure, the EU banned exports of computer numerical control machines and radios to Kyrgyzstan when there is a high risk that the goods will be re-exported to Russia. The Council of the EU said trade data showed a sharp rise in re-exports of common high-priority items through Kyrgyzstan to Russia. The EU treats the goods as sensitive because they can support industrial production, communications, and military-linked supply chains. The financial aspect of the sanctions has also reached Kyrgyzstan. The EU said it was targeting four financial institutions in third countries for circumventing sanctions or connecting to Russia’s financial messaging system. Local media identified Keremet Bank and Capital Bank as the Kyrgyz banks included in the package. The EU also designated a Kyrgyz entity that operates a platform where significant amounts of the A7A5 stablecoin are traded. Local outlets identified the entity as TengriCoin, registered in Bishkek, and linked it to the Meer platform. The pressure on Kyrgyz banks and crypto companies has been growing. The U.S. Treasury designated Keremet Bank in January 2025, saying the bank had coordinated with Russian officials and Promsvyazbank, a sanctioned Russian state defense lender, to support cross-border transfers. In August 2025, the UK government sanctioned Capital Bank of Central Asia, its director Kantemir Chalbayev, Grinex, Meer, TengriCoin, Old Vector, and other targets linked to Russian payment and crypto channels. London said the ruble-backed A7A5 token had moved $9.3 billion on a dedicated crypto exchange in four months. Kyrgyz officials have rejected the broader claim that the country helps Russia evade sanctions. The Foreign Ministry said on April 28 that Kyrgyzstan acts within national laws and its international obligations. It said Bishkek had supplied the requested documents to European partners...

Trade Pavilion

Kyrgyzstan to Open Trade Pavilion at Uzbekistan’s Key Food Distribution Center

The Trade Mission of the Kyrgyz Republic in Uzbekistan will open a Kyrgyz Trade Pavilion at Food City in Tashkent. Food City is Uzbekistan’s largest wholesale fruit and vegetable market and one of the country’s biggest food distribution centers. An agreement on the pavilion’s opening was signed on May 15 in Tashkent between the Trade Mission of the Kyrgyz Republic in Uzbekistan and the Uzbek company FOODSTUFFS SELL. Spanning 60 hectares in Tashkent, Food City includes a large fresh food market serving retailers, supermarket chains, exporters, food processing companies, restaurants, and catering businesses. According to the Kyrgyz Ministry of Economy and Commerce, the pavilion will create a new platform for promoting Kyrgyz products in the Uzbek market and developing trade between the two countries. The pavilion will feature a permanent exhibition of Kyrgyz goods, including environmentally friendly and organic agricultural products, processed goods, and other food products. Officials say the project is expected to expand Kyrgyzstan’s export potential and strengthen direct ties between producers and distributors in the two countries. Bakai Akbaraliev, Kyrgyzstan’s trade representative in Uzbekistan, said the opening of the pavilion at Food City represents more than simply a new trading platform. “We are creating a sustainable channel for promoting Kyrgyz products, expanding export opportunities for businesses, and developing new mechanisms for sustainable trade and economic cooperation between the two countries,” Akbaraliev said. The project also aims to increase trade turnover between Kyrgyzstan and Uzbekistan.

Organization of Turkic States

Turkic States Focus on AI and Trade at Kazakhstan Summit

Leaders of the Organization of Turkic States (OTS) are holding an informal summit in the city of Turkistan, focused on artificial intelligence, digitalization, and economic integration, as Central Asia gains importance as an alternative trade corridor between Europe and China. The meeting brings together the leaders of Kazakhstan, Turkey, Azerbaijan, Uzbekistan, and Kyrgyzstan, along with representatives of observer states. Discussions are centered on digital platforms, joint AI projects, transport corridors, and industrial cooperation. The summit comes amid rapid growth of the Trans-Caspian International Transport Route, also known as the Middle Corridor, which links China and Europe through Central Asia and the Caucasus while bypassing Russia. According to analysts in Kazakhstan, cargo volumes along the route reached 3.3 million tons in 2024, almost six times the 2021 level. Turkish President Recep Tayyip Erdoğan arrived in Astana on a state visit ahead of the summit and held talks with Kazakh President Kassym-Jomart Tokayev. “Kazakhstan and Turkey are connected by enduring friendship, brotherhood, and eternal partnership,” Tokayev said following the meeting. Erdoğan thanked Kazakhstan for the reception and highlighted the escort provided by Kazakh military fighter jets after his aircraft entered the country’s airspace. According to participants at the OTS business forum, the combined GDP of member states exceeds $2.1 trillion, while their total population stands at 178 million people. Despite increasing political coordination, trade between OTS countries still accounts for only around 7% of their total foreign trade turnover, leaving considerable room for deeper economic integration, analysts say. OTS member states are increasingly seeking to expand cooperation beyond cultural and political ties by focusing on logistics, the digital economy, and joint investment projects. Kazakhstan views the organization as one of the instruments for diversifying its foreign economic relations and expanding its role as a transit hub between Asia and Europe.

Trade

EDB: Central Asian Trade Has Doubled in Five Years

Mutual trade between Central Asian countries reached $12.3 billion in 2025, nearly doubling compared to 2020, according to analysts at the Eurasian Development Bank (EDB). The figure underlines how Central Asia is increasingly emerging as a more interconnected regional market after years of relatively limited internal trade links following the collapse of the Soviet Union. Kazakhstan remains the largest participant in regional trade, accounting for 54% of all intraregional exports, valued at $6.6 billion. The country's key export commodities to the region include grain products (18%), ferrous metals (13%), crude oil and petroleum products (8%), sunflower oil (7%), and beverages (3%). The primary destination for these exports is Uzbekistan, while Kyrgyzstan recorded the fastest growth in imports from Kazakhstan, with volumes nearly tripling to $1.7 billion. Uzbekistan ranks second, accounting for 26% of regional exports, worth $3.2 billion. The largest increase in Uzbek exports was recorded in trade with Kazakhstan, where shipments grew 2.1 times. Uzbekistan’s main export products include motor vehicles and auto parts (14%), fruit and vegetables (11%), plastic products (5%), fertilizers (4%), and clothing (3%). Between them, the two largest Central Asian economies represent nearly $10 billion of exports to their neighbours, representing almost 80% of regional trade. Turkmenistan's share of exports – primarily natural gas – rose to 11%, while Kyrgyzstan's $0.9 billion of exports (half of which was unprocessed precious metals and coal) represented 7%. Tajikistan was the smallest contributor, accounting for just 3% of intraregional exports – principally zinc, lead and copper. According to EDB analysts, the rapid expansion of trade has been driven by strengthening bilateral economic cooperation among Central Asian states and efforts to simplify trade procedures. The bank said the pace of growth demonstrates that Central Asia is gradually emerging as an increasingly integrated regional market with strengthening internal economic ties. That said, analysts stressed that the current level of trade still represents only a fraction of the region’s broader economic potential. Further reductions in trade barriers, improved transport connectivity, and deeper industrial cooperation could significantly accelerate intraregional trade turnover, the report said. EDB analysts estimate that trade between Central Asian countries could increase by an additional $4 billion by 2029.

Trade

Tokayev Expects Kazakhstan-Russia Trade to Exceed $30 Billion

Kazakh President Kassym-Jomart Tokayev said trade turnover between Kazakhstan and Russia could surpass $30 billion in 2026, following a slight decline last year. Speaking during a meeting with Russian President Vladimir Putin in Moscow, Tokayev said Russia remains one of the largest investors in Kazakhstan. “Over the past five years, Russia has been one of the main investors in the Kazakh economy. Trade is developing successfully. According to forecasts, this year we will confidently surpass the $30 billion mark, this is a good indicator,” Tokayev said. Trade turnover between the two countries increased by 3% in 2024 to reach $27.8 billion, but declined to $27.4 billion in 2025, Kazakhstan’s Trade Minister Arman Shakkaliyev previously reported. Kazakhstan's trade turnover with Russia has long been eclipsed by that with China and the European Union – both of which have reached around $50 billion per year. Tokayev was in Moscow on a working visit ahead of Victory Day commemorations – a visit which had appeared in doubt following the threat of Ukrainian strikes on Moscow. During the talks, the two sides discussed bilateral economic cooperation, preparations for Putin’s upcoming state visit to Kazakhstan, and the Eurasian Economic Union summit scheduled to take place in Astana on May 28-29. According to Tokayev, Kazakhstan and Russia have implemented 122 joint industrial cooperation projects out of 177 planned over the past 20 years. Tokayev also congratulated the Russian leader on the anniversary of victory in World War II. “We honor the heroes of the bloodiest war in human history,” he said, noting that 57 World War II veterans remain alive in Kazakhstan. Putin, in turn, thanked Tokayev for the visit and praised his contribution to bilateral relations. “The fact that you found it possible to come to Moscow and be with us these days is the best proof of the level of relations between Kazakhstan and the Russian Federation,” the Russian president said. The Times of Central Asia previously reported that Russia had tightened foreign trade procedures at the beginning of the year, a move that could affect logistics and trade flows across Central Asia.

U.S.-Turkmenistan Relations

Washington Meets Ashgabat as Turkmen-American Business Cooperation Association Debuts

On May 7, the Turkmen-American Business Cooperation Association (TABCA) and the Embassy of Turkmenistan in Washington marked the organization’s official launch through a series of daylong events attended by members of the business community, diplomats, and dignitaries, including senior representatives from the U.S. Department of Commerce. Serving as a definitive bridge between the business communities of the United States and Turkmenistan, TABCA aims to promote bilateral trade, support market access initiatives, and encourage strategic partnerships and innovation across key sectors. More than 50 Turkmen and American companies joined the meetings, underscoring Ashgabat’s continued push toward a more open and globally engaged economy—one that inevitably brings both opportunity and risk. According to Esen Aydogdyyev, Turkmenistan’s Ambassador to the United States, “We are committed to cultivating broad international partnerships where agreements contribute to national development, economic resilience, and long-term independence for its citizens. Ashgabat is seeking broader investor and commercial engagement, which is compatible with our strategic autonomy and non-aligned status.” [caption id="attachment_48630" align="aligncenter" width="901"] (L/R) Viktoriya Frolova, Commerical Specialist, U.S. Embassy Turkmenistan, former Ambassador of Turkmenistan to the U.S., Meret Orozov, Chairman of the Board, Turkmen American Business Cooperation Association Nurgeldi Meredov, and Mr.Maksat Annamyradov, Board Member, Turkmen American Business Cooperation Association. Image: Kakajan Ovezov, Begench Arazalyyev[/caption] The initiative reflects Turkmenistan’s effort to strengthen ties with Western investors while maintaining its neutrality and independent foreign policy. Economic growth is strongest, the participants echoed, when enterprise creates broad opportunity and shared prosperity. Ambassador Aydogdyyev said that “priority areas for cooperation include trade and commerce, energy, transportation and communications, agriculture, renewable energy, the chemical and food sectors, as well as environmental protection. We especially value entrepreneurship and small business partnerships between Turkmenistan and the United States. In addition, we want Turkmen entrepreneurs to play a role in supporting economic growth and employment opportunities in the United States, which they are already contributing to today.” Win-Win is the Guiding Principle TABCA’s official launch in Washington is more than symbolic—it reflects a meaningful new chapter in U.S.-Turkmenistan relations, grounded in practical business cooperation and a shared commitment to cross-border investment. While some observers in Turkmenistan remain cautious about the risk of outside geopolitical agendas or economic models that favor a narrow set of interests under the banner of long-term prosperity and commercial diplomacy, the focus today is on building fair opportunity, productive partnership, and tangible commercial results. “U.S. and Turkmen businesses are already helping drive jobs and economic growth in both countries—a reminder of why stronger commercial ties matter,” said Nurgeldi Meredov, TABCA’s Chairman. “Our goal is to expand trade, boost investment, and create long-term partnerships that open new opportunities for companies on both sides.” [caption id="attachment_48631" align="aligncenter" width="712"] Jamila Kerimova, founder of “Ish nokady” (standing); image: Kakajan Ovezov, Begench Arazalyyev[/caption] At TABCA’s morning session, Turkmen businesses highlighted B2B engagement and SME growth opportunities, showcasing companies in logistics, e-commerce, manufacturing, consulting, and real estate. The presentations were followed by networking aimed at fostering direct commercial partnerships. Nurgeldi Meredov, alongside Meret Orazov, former Ambassador of Turkmenistan...