Political Developments
Kazakhstan has completed a series of visits to explore advanced technologies to build its future nuclear power plant (NPP). The final decision on the choice of a supplier or consortium for the construction of a nuclear power plant will be made in the near future. A shortlist of four prominent companies has been made for consideration: China National Nuclear Corporation (CNNC), Korea Hydro and Nuclear Power Co. (ICHNP), Russia’s Rosatom, and Électricité de France (EDF). These companies are leaders in the nuclear energy sector, with a strong presence in countries such as the Czech Republic, Egypt, Hungary, India, Türkiye, and the United Arab Emirates (UAE), which have established collaborations with them. Choosing companies with proven expertise and advanced technology reflects Kazakhstan’s commitment to building a reliable and safe energy infrastructure as it moves forward with its plans to develop nuclear energy capacity. This move is also a step toward ensuring the country’s energy security and environmental sustainability in the long term.
Kazakhstan plans soon to sign all the necessary agreements in order to construct the country’s first nuclear power plant in the Almaty Region, and also determine the regions for constructing the second and third plants. President Kassym-Jomart Tokayev has asked the government and the Samruk Kazyna state fund to finalize the most suitable locations for future NPPs. The president said there was a growing deficit of electricity, so it was necessary to speed up the construction of the first nuclear power plant and create a nuclear cluster. Kazakh Energy Minister said that a city in the Abai region was being considered as a potential site for Kazakhstan’s second NPP. Kurchatov, located on the left bank of the Irtysh River between Semey and Pavlodar, was previously the center of the Semipalatinsk nuclear test site, which was previously shut down in 1991, could be third possible site. Tokayev directed the addition of at least three gigawatts of new energy capacity within two years, nearly 2.5 times higher than in previous years.
The Russian Foreign Ministry issued a statement following a controversial article in Nezavisimaya Gazeta that drew criticism from the Turkmen leadership. On January 12, the newspaper published an article titled “Neutrality Turned Out to Be an Excuse for Strengthening the Personality Cult of the ‘Second Turkmenbashi.’” The piece compared former president Gurbanguly Berdimuhamedov to his predecessor, Saparmurat Niyazov, who was the subject of a personality cult during his rule over Turkmenistan from 1985 to his death in 2006. Niyazov often called himself “Turkmenbashi” (father of the Turkmen). The article was subsequently removed from Nezavisimaya Gazeta’s website, but not before it provoked discontent in Ashgabat. In response, the Russian Foreign Ministry issued a clarification emphasizing that “The assessments given in the article have nothing in common with the official position of Russia and do not reflect the high status of ties between our friendly countries.”
Kyrgyzstan became the latest country in Muslim-majority Central Asia to ban the Islamic niqab, a long garment that covers the body, hair, and face, except the eyes. Effective February 1, the ban imposed a fine of 20,000 som ($230) on women who wear the niqab in public places. Female Islamic clothing and men’s beards have long been the focus of government campaigns and public debates in Central Asia, where staunchly secular governments fear the growing influence of Islam. Kyrgyz lawmakers have said the ban is needed for security reasons — so people’s faces can be seen and individuals identified. But opponents say the ban deprives women of the freedom to choose what they want to wear. Lawmakers and government-backed religious figures insist the ban does not extend to the hijab, the Islamic head scarf that covers the hair and neck but leaves the face visible. Kyrgyzstan is the only country in Central Asia that allows hijabs in schools and offices. Authorities in Central Asia insist their national attire meets the requirements of Islamic clothing for women.
Turkmenistan has not officially banned the hijab, but it demands women wear Turkmen national clothing to work and at public events. There have been reports that several hijab-wearing women have been ordered by the authorities to remove their head scarves. Tajikistan routinely promotes Tajik traditional clothing for women, while outlawing what it calls outfits “alien” to Tajiks, in reference to Islamic clothing.
During his nomination hearing to become the next U.S. secretary of state, Senator Marco Rubio noted that the U.S. government should engage Central Asia and called for the Jackson-Vanik Amendment to be annulled. These statements caused optimism in Central Asia, particularly in the Kazakhstani and Uzbekistani media, that the region will not be overlooked again during the second Trump administration. The Jackson-Vanik amendment remained in place over a wide swath of countries after the Soviet collapse. It was repealed in regard to Kyrgyzstan in 1998 and Russia in 2012, but most Central Asian countries — Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan — remain technically subject to its provisions. These countries, however, are typically granted normal trade relations status on an annual basis.
The Caspian Policy Center (CPC) issued a report in mid-January with policy recommendations for the Trump administration to engage Central Asia and the Caucasus. These recommendations include the repeal of Jackson-Vanik; development of a Trans-Caspian Regional Security Strategy that integrates Central Asia and the Caucasus; appointing senior and experienced ambassadors and staff to the region; and promoting energy cooperation, with a specific focus on traditional and next-generation energy, including critical minerals and rare earths. The report also provides more specific recommendations, such as appointing a Special Representative for the Caucasus and Central Asia region, transferring Central Asia oversight from the State Department’s South and Central Asia Bureau to the Europe Bureau, and moving Central Asia from USAID’s Asia Bureau to the Europe and Eurasia Bureau. There are many reasons why Washington should continue to engage this region, given geopolitical and security considerations, issues related to mining and access to critical minerals, and investment opportunities, not to mention working together to improve good governance, respect for human rights, and address regional environmental issues. Countries like Kazakhstan want to increase their partnership with Washington, and it is now the Trump administration’s turn to move relations forward. Following his electoral victory, Central Asian governments, particularly Uzbekistan’s President Shavkat Mirziyoyev, were among the first high-ranking officials to congratulate Trump, signaling the region’s profound interest in maintaining and potentially expanding bilateral relations. The U.S. presidential election held substantial relevance for Central Asia’s multi-vector foreign policy strategy. Trump’s victory presents potential opportunities to enhance economic cooperation and strengthen regional security mechanisms. His return to power promised significant transformative potential, emphasizing pragmatic, business-oriented engagement while maintaining a strategic focus on countering China and Russia and addressing geopolitical challenges in Afghanistan.
Till now, no sitting president of the United States has visited Central Asia; on the other hand, Russian President Vladimir Putin has made 73 visits while Chinese President Xi Jinping has visited 13 times since 2012. A presidential visit could signify a substantial change in U.S. engagement with the region.
Turkmenistan is rapidly expanding and modernizing its military to allow Ashgabat to defend itself against domestic challenges, threats from Afghanistan, and increasing competition on the Caspian, as well as to support its expanded political and economic activity internationally. While it still lags militarily behind Kazakhstan and Uzbekistan, Turkmenistan now has more tanks than any other country in Central Asia, is investing heavily in modernization and training, and leads Kyrgyzstan and Tajikistan in international rankings of military strength by wide margins. Ashgabat is less dependent on Russia or the People’s Republic of China than many have assumed and is rapidly becoming a force to be reckoned with in the region. At present, the Turkmenistan military numbers some 40,000 personnel, 90 percent of whom are in the ground forces. Turkmenistan’s annual defense budget is approximately $1 billion dollars. It boasts more tanks (654) than any other country in the region, of which 392 are fully operational (for comparison, Kazakhstan has only 350 tanks, of which 210 are in a state of readiness). The latest Global Firepower Power Index ranks Turkmenistan’s military as 77th in the world, behind Kazakhstan (57th) and Uzbekistan (58th), but well ahead of Kyrgyzstan (105th) and Tajikistan (108th). Judging from the comments of senior Turkmenistan officials, Ashgabat will expand its military and spending on equipment in 2025 in order to ensure “the independence, sovereignty and territorial integrity of the country”. The state will also increase spending on the purchase of ships and on shipbuilding, where Turkmenistan has lagged because unlike some other Caspian littoral states it did not receive any ships from the Soviet flotilla when the Soviet Union disintegrated.
The long-standing border dispute between Kyrgyzstan and Tajikistan is on the verge of resolution, with bilateral procedures now underway. The final step of the process will be the signing of an agreement by the presidents of both states after the completion of essential stages, including approval by their parliaments. Following the completion of all paperwork, the two nations will engage in a demarcation process that is expected to take another one to two years before the issue is fully resolved. The agreement includes the relocation of houses in border villages, where properties were sometimes located across the two countries’ borders in a “chessboard” pattern. In these cases, residents whose homes fall on the opposite side of the border will be resettled. The dispute over the Kyrgyz-Tajik border stems from unresolved territorial issues dating back to Soviet times. With a total length of about 970 kilometers, the border was never fully delimited or demarcated.
In 2024, both Kyrgyzstan and Uzbekistan signed memorandums of understanding with Rosatom to construct smaller plants. Despite the region’s ample hydrocarbons and hydroelectric resources, the Central Asian states continue to experience regular power shortages.
Almaty court delivered its final verdict on Jan. 27 in the case of the January 2022 unrest, sentencing 45 defendants involved in the violent protests. Defendants in January events trial receive sentences, with Arman Zhumageldiev facing 20 years. Among those sentenced were former Almaty maslikhat (local representative body) Deputy Kairat Kudaibergen, sentenced to eight years. Ruslan Iskakov, former head of the National Security Committee’s fifth department, was given 15.6 years and a lifetime ban from holding civil service positions. However, protests spread to other cities, including Almaty, the nation’s largest city and former capital. According to Kazakh Prosecutor General Berik Asylov, peaceful protests were “taken over by organized criminal groups” in what the country’s leadership called an “attempted coup d’etat.” He said that most of the participants were under 30 years of age. After order was restored, President Tokayev moved to cement his grip on power — dismissing aides who were seen as close to his predecessor and one-time mentor Nursultan Nazarbayev, and stripping the former leader of many privileges. The head of the Kazakh secret services at the time of the unrest, Karim Massimov, was dismissed and last year jailed for 18 years on treason charges and staging an attempted armed coup.
Economic Developments
Projected growth in Central Asia is expected to accelerate to 5% in 2025 before softening to 4.2% in 2026. This growth will be driven by increased oil production in Kazakhstan, which will serve as a critical engine of recovery for the region. Remittances will also continue to play a key role, particularly for Kyrgyzstan and Tajikistan. These inflows provide vital support to household consumption and help improve current account balances. However, international sanctions on Russia and financial restrictions on cross-border transfers could push some remittance flows into informal channels, potentially limiting their economic impact.
Uzbekistan became a net importer of gas in 2024 for the second year in a row. From January to December, natural gas imports from Turkmenistan and Russia increased by 2.41 times, reaching $1.67 billion. Monthly imports slowed to $127.9 million. In 2023, for the first time in its history as an independent nation, Uzbekistan transitioned from being a gas exporter to a gas importer. Turkmenistan remains the leading gas exporter to China, supplying $9.57 billion worth of natural gas since the beginning of 2024. Russia ranks second, increasing its gas exports by 25% to $8.03 billion, followed by Myanmar ($1.39 billion) and Kazakhstan ($1.36 billion). Gas exports to China in December, 2024 saw a significant decline compared to November, falling from $53 million to $34.2 million. However, total exports to China over the 12 months reached $627.6 million, marking an 18.4% increase.
Chevron said that it had started production at a $48 billion expansion of the giant Tengiz oilfield which will bring its output to around 1% of global crude supply. The Tengiz field accounts for a large part of landlocked Kazakhstan’s oil production and has been a major cash generator for Chevron for decades. But its exports depend almost entirely on a pipeline that runs through Russia to the Black Sea, putting it effectively under Moscow’s control. Flows could also be impacted by Kazakhstan’s agreement with OPEC and other major oil producers to curtail global supply in recent years. The expansion is expected to reach full capacity of 260,000 barrels per day by June, lifting overall production at Tengiz to around 1 million barrels of oil equivalent per day. Tengiz is one of the world’s deepest and most complex fields due to high levels of sulphur and harsh weather conditions. Chevron has a 50% stake in the Tengizchevroil joint venture which it operates, with Exxon Mobil holding 25%, Kazakh oil firm KazMunayGas 20% and Russian oil producer Lukoil the remaining 5%.
Uzbekistan’s foreign trade turnover (FTT) reached $65.9bn in January-December 2024, marking an increase of $2.4bn, or 3.8%, compared to the same period in 2023. This growth reflects the country’s ongoing efforts to stimulate exports, optimize imports, and maintain a balanced trade environment. In terms of foreign trade balance, Uzbekistan’s exports totaled $26.95bn, reflecting an 8.4% increase from 2023, while imports amounted to $38.99bn, marking a modest 0.8% increase. This resulted in a negative balance of $12.04bn. China remained Uzbekistan’s largest trade partner, contributing 18.9% of total FTT in 2024. Total trade with China reached $12.49bn, a decrease from $13.83bn in 2023. Exports to China declined to $2.05bn from $2.29bn, while imports fell to $10.43bn from $11.34bn. Despite the decrease, China consistently topped the trade list. Russia emerged as the second-largest trade partner, accounting for 17.7% of total FTT in 2024, up from 16.2% in 2023. Total trade with Russia rose to $11.63bn, an increase from $10.16bn in 2023. Exports to Russia grew to $3.7bn from $3.5bn, while imports expanded to $7.9bn from $6.7bn. Kazakhstan remained the third-largest trade partner, contributing 6.5% to total FTT in 2024, down slightly from 7.0% in 2023. Total trade with Kazakhstan reached $4.28bn, reflecting a marginal decrease from $4.49bn in 2023. India, which replaced Kyrgyzstan in Uzbekistan’s top trade partners list, recorded a notable increase. Uzbekistan’s FTT with India for 2024 reached $980.4mn, with exports totaling $126.8mn and imports accounting for $853.6mn. The CIS countries have become increasingly important to Uzbekistan’s foreign trade, accounting for 35.1% of the total FTT in 2024. This represents a 2.2% increase compared to 2023. In 12M24, Uzbekistan’s foreign trade turnover with the CIS countries totaled $23.12bn, with exports reaching $9.06bn and imports amounting to $14.06bn.
Officials from Uzbekistan, Kazakhstan, Kyrgyzstan and the World Bank agreed on the key principles and stages of the Kambarata HPP-1 hydropower plant project during a meeting in Tashkent. The project will be carried out by a company in which Kyrgyzstan owns a 34% stake and Uzbekistan and Kazakhstan each have 33%. The main sources of financing for the project are the founders’ own funds, as well as loans and grants from international financial institutions and commercial banks. Kambarata HHP-1 will have capacity of 1,860 MW, generating 5 billion kWh of electricity annually. The dam is expected to reach 256 meters in height, holding over 5 billion cubic meters of water. Kyrgyzstan plans to launch the first unit in eight years The HPP will not only meet the energy needs of Central Asia but also address regional water concerns. Kyrgyzstan signed agreements with the World Bank in September 2024 on loans and grants worth $13.6 million to update the Kambarata HPP-1 feasibility study.
The EAEU, consisting of Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan, recorded a trade turnover of $17.5bn, with exports totaling $5.83bn and imports reaching $11.66bn in 12M24. The union’s unified customs system and the free movement of goods, services, migrants, and capital promote robust trade ties. The structure of foreign trade turnover reveals that Europe was the largest trading partner, accounting for 42.3% of the total FTT. Exports to Europe totaled $14.1bn, while imports from the region stood at $13.8bn. Asia followed closely, contributing 46.1% of the total, with exports amounting to $8.5bn and imports reaching $21.8bn. Other regions such as Africa, North America, South America, and Australia contributed a combined total of 2.6%.
China has muscled Russia aside as Central Asia’s top trading partner. The figures show that the balance of 2024 trade leans heavily in China’s favor. Overall turnover with Central Asia reached $94.8 billion, up from $89.4 billion the previous year. Chinese goods and services exported to Central Asia were worth $64.2 billion, accounting for more than two-thirds of trade. Most of the $30.6 billion that China imported from Central Asia last year comprised natural resources, including oil, natural gas, rare earths, precious metals and minerals. Another major import item was fruits and other foodstuffs. Kazakhstan remained China’s largest trade partner in the region, with bilateral trade turnover reaching $43.8 billion, a nearly 7 percent increase over the previous year’s total. Kazakhstan imported $28 billion worth of goods and services and exports totaled $15.9 billion. Kyrgyzstan achieved the greatest percentage gain year-on-year with China, with bilateral turnover increasing by about 15 percent to $22.7 billion. The most notable aspect is that Kyrgyzstan grew its exports to China by an astounding 3,270 percent, from a relatively paltry $80 million in 2023 to $2.8 billion last year. Nevertheless, Kyrgyzstan ran a massive trade deficit with China in 2024 as imports reached $19.9 billion. Trade with Turkmenistan, China’s third-largest trade partner in the region, was flat at $10.6 billion. But Turkmenistan remained the only Central Asian state to record a trade surplus with Beijing. Ashgabat’s exports totaled $9.6 billion, while imports were limited to just over $1 billion. The Turkmen surplus is far from an anomaly. The country’s favorable balance of trade with China dates back at least to 2014, which is as far back as GACC data goes. Uzbekistan experienced a marginal decline in Chinese trade by about 2 percent to just under $13.8 billion, with exports to China amounting to $2 billion and imports $11.8 billion. Tajikistan also saw a decline in bilateral turnover by nearly 2 percent to about $3.9 billion. While Dushanbe’s exports to China grew by almost 40 percent year-on-year to $350 million, Tajik imports stood at just over $3.5 billion.
During the meeting between Kazakh Prime Minister Olzhas Bektenov and Chinese Ambassador Han Chunlin, the officials emphasized diversifying exports, particularly increasing shipments of Kazakh grain to China. China ranks among Kazakhstan’s top five investment partners. Some 62 joint projects worth $8.7 billion have been completed, creating 11,000 jobs. An additional 55 projects worth $13.5 billion are under development, and plans for 222 projects exceed $60.5 billion. In the transport sector, cargo volumes between the two countries rose by 13% in 11 months of 2024, totaling 29.3 million tons. Both countries aim to upgrade border checkpoints and expand cross-border shipping to meet growing demands.
Kazakhstan’s economy grew by 4.8% despite a decline in oil production and prices in 2024. The country’s overall inflation fell to 8.6%, which is 2.5 times lower than the 2023 peak. Food inflation stood at 5.5%, non-food inflation was 8.3%, contributing to the overall slowdown in inflation. The tenge exchange rate fell by 15.5% due to geopolitical tensions and increased demand for foreign currency. To address this, the National Bank of Kazakhstan (NBK) implemented measures such as interventions and the mandatory sale of 50% of foreign exchange earnings by the quasi-public sector, among others. Gold and foreign exchange reserves rose by 27.4% to $45.8 billion, providing coverage for 7.4 months of imports. Meanwhile, the National Fund’s assets reached $58.8 billion.
Kazakhstan, one of the world’s 10 biggest oil producers, stepped up pressure on international firms working in the country with a call for “better terms” in their contracts. Kazakhstan has clashed for years with international oil companies over costs, bringing multi-billion-dollar claims against them in 2023.The companies say the government is simply seeking to increase its shares in key oil and gas projects in what amounts to “resource nationalism”. Kazakhstan’s authorities have rejected such criticism saying its aim was to rein in costs inflated by Western majors. In 2023 it launched claims against groups developing the Kashagan and Karachaganak oilfields worth more than $13 billion and $3.5 billion, respectively, over disputed costs. The offshore Kashagan field, one of the world’s biggest discoveries in recent decades, is being developed by Eni, Shell, TotalEnergies, ExxonMobil, KazMunayGaz, Inpex and CNPC.
The Trans-Caspian International Transport Route (TITR), or Middle Corridor, has evolved as a key alternative for trade between Europe and the People’s Republic of China (PRC) due to sanctions against Russia. The route bypasses Russia and transits through Central Asia, the Caucasus, and Türkiye. The TITR has seen a 25-fold increase in freight volumes from the PRC to Europe in 2024, with Azerbaijan playing a pivotal role. This growth aligns with the PRC’s One Belt-One Road initiative, emphasizing regional connectivity. This route highlights how countries in Central Asia and the Caucasus view transit through Russia as a growing economic risk while fostering infrastructure ties between the PRC and European Union offers a more promising economic future.
Russia and Kazakhstan convened high-level talks at level of Prime Ministers in Astana with a key focus on raising bilateral trade to $30 billion, in economic, trade, and cultural cooperation. Kazakh PM said that the state visit of President Putin to Kazakhstan in November 2024 reaffirmed the strength of their relations. Discussions covered key joint projects in energy, industry, transport, education, and culture, as well as scientific and technical collaboration, in line with the countries’ long-standing strategic partnership.
There was almost no infrastructure connecting Afghanistan and Central Asia when the Taliban were chased from power in late 2001. However, during the nearly 20 years that US-led foreign forces were present in Afghanistan, new links between Central Asia and Afghanistan were established. One of the most important connections was electricity. Power transmission lines were built from Tajikistan, Turkmenistan and Uzbekistan to Afghanistan. Those three Central Asian countries now supply some 80% of Afghanistan’s electricity imports. After the 2021 change of government in Afghanistan, the three Central Asian states continued to export electricity to Afghanistan. The move was particularly significant for Tajikistan, the Central Asian country that continued to view the Taliban as a threat. In 2022, the Taliban’s first full year back in power, Tajikistan sold some $72.8mn of electricity to Afghanistan. That was $14.9mn more than it sold in 2021. During the first 10 months of 2024, Tajikistan’s electricity sales to its southern neighbour came to more than $80mn. Also in 2022, Uzbekistan’s electricity exports to neighbouring Afghanistan totalled some $82.5mn. In 2023 that figure grew to $91.18 million. As regards another neighbour, Turkmenistan, Afghanistan imported Turkmen electricity worth $64mn in 2023. There were concerns in late 2021 that the Taliban might not be able to pay for all the electricity Afghanistan was receiving. In early October 2021, Afghanistan owed its three northern neighbours and Iran a combined $51mn for electricity. By May 2022, more than $100mn was owed to just Tajikistan and Uzbekistan. The Taliban vowed to pay their electricity bills and indeed seem to have accomplished this. In February 2024, Afghanistan’s electricity utility, Da Afghanistan Breshna Sherkat (DABS), said that since August 2021, it had made electricity payments totalling $627mn to its Central Asian suppliers and Iran. Tashkent confirmed at the time that Afghanistan had paid all but some $1.2mn of its debt to Uzbekistan for electricity supplies. Before the end of 2024, Afghanistan reached agreements with Tajikistan, Turkmenistan and Uzbekistan for electricity supplies through 2025. The Central Asian trio are all working on projects to increase their electricity exports to Afghanistan. Additionally, work has resumed on the Central Asia-South Asia-1000 (CASA-1000) power transmission line. It went through a temporary suspension after the Taliban’s return to power. CASA-1000 aims to have hydropower plants in Kyrgyzstan and Tajikistan supply 1,000 megawatts (MW) of electricity to Pakistan and 300 MW to Afghanistan annually.
The leading exporter of wheat and wheat flour to Afghanistan is Kazakhstan. In 2022, a year when Kazakh-Afghan trade totalled around $988mn, Kazakhstan exported wheat flour worth some $554mn and grain worth some $194mn to Afghanistan. Kazakhstan’s Grain Union reported in November 2024 that during September 2023 to August 2024, the largest buyer of Kazakh wheat flour was Afghanistan at $336mn. It is money from foreign aid flows that helps Taliban-ruled Afghanistan pay for the electricity, wheat and other food and construction materials received from Central Asia – but the biggest donor of this aid just suspended its financial help for Afghanistan.
The European Union is the main trade and investment partner for Kazakhstan. Trade turnover in January-November 2024 amounted to 44.2 billion US dollars, accounting for about 30% of the country’s foreign trade and increasing by 17.7% compared to the same period previous year. The volume of European investments into the economy of Kazakhstan since 2005 amounted to 180 billion dollars.
India-Central Asia Relations
The chiefs and delegates of election management bodies from 13 countries met and adopted the ‘Delhi Declaration’ at an international event hosted by the Election Commission of India (EC) on ‘Global Election Year 2024: Reiteration of Democratic Spaces; Key Takeaways for EMBs’. Nearly 30 representatives from the EMBs of 13 countries including Bhutan, Georgia, Namibia, Uzbekistan, Sri Lanka, Indonesia, Kazakhstan, Ireland, Mauritius, Philippines, Russian Federation, Tunisia, and Nepal attended the conference. They vowed to adopt technological integration and innovation to make the electioneering process transparent, efficient and effective. The declaration said that “a working group will be constituted of all willing Election Management Bodies (EMB) worldwide for dealing with issues of social media, artificial intelligence and cyber security, which will meet on a regular basis to take stock of the evolving challenges and collectively take up critical issues with big-tech entities and other stakeholders.” It said that the countries will vigorously resist all fake narratives that may be created to undermine the electoral process and “the conduct of elections as prescribed under our respective laws and not allow these narratives to overwhelm our duties in any manner”.
As the global push for clean energy intensifies, the demand for rare earth elements–critical for renewable energy technologies–continues to surge. To reduce its reliance on China, India has been diversifying its supply sources through agreements with nations in the US, Latin America, and Africa. Kazakhstan, with its abundant rare earth resources and proximity, is emerging as a strategically valuable partner. Kazakhstan’s potential to bolster global rare earth supplies aligns with India’s goal to establish a more reliable and geographically closer supply chain. Despite being the fifth-largest holder of rare earth reserves, India lacks the advanced extraction technologies required for self-sufficiency. This has made the country vulnerable to supply chain disruptions, especially as China remains a dominant player in the rare earth sector. Concerns over security and supply reliability have intensified New Delhi’s search for diverse sources, with Kazakhstan emerging as a key option. Kazakhstan’s vast reserves and its proximity to India make it an attractive partner for addressing critical gaps in India’s rare earth supply chain. The country is well-positioned to supply these essential materials, which are integral to industries ranging from renewable energy and electronics to defense and nuclear technology. Recognizing their strategic importance, India has proposed the establishment of an India-Central Asia Rare Earths Forum during the Second India-Central Asia National Security Advisors (NSAs) meeting. This initiative aims to foster transparent and mutually beneficial partnerships, addressing the critical role of rare earths in achieving sustainable, low-carbon growth. Central Asia boasts vast reserves of critical minerals. The region accounts for 38.6 per cent of the world’s manganese ore, 30.07 per cent of its chromium, 20 per cent of its lead, 12.6 per cent of its zinc, and 8.7 per cent of its titanium. These resources position Central Asia as a strategic powerhouse in the global minerals market.
Larsen & Toubro (L&T) has bagged a contract worth Rs. 2500 crores to build Uzbekistan’s first AI-enabled and sustainable data centre aiming for maximum energy efficiency. L&T will be responsible for the engineering, procurement and construction of the data centre which will be equipped with advanced AI capabilities. The 10 Megawatt data centre will be built at Tashkent and will have robust security measures to protect sensitive data.
In recent years, collaboration between India and Uzbekistan has witnessed remarkable growth, with a surge in joint ventures and investment projects across key sectors such as IT, healthcare, pharmaceuticals, agriculture, and tourism. Uzbek delegations have participated in major exhibitions in India, showcasing advancements in textile, agriculture, healthcare, metallurgy, electronics, and handicrafts. Similarly, Indian delegations have attended exhibitions and symposia in Tashkent focusing on tourism, oil and gas, energy, textiles, healthcare, agricultural production, medical equipment, media, and mining. The comprehensive cooperation between the two countries continues to expand across trade, economic, cultural, humanitarian, defense, and tourism spheres, further solidifying the deep-rooted ties shared by their peoples. This enhanced collaboration has led to increased mutual trade volumes, a rise in joint projects, and a new era of cultural exchange. Capacity building has emerged as a cornerstone of the India-Uzbekistan partnership. With Uzbekistan’s leadership focused on upskilling its youthful population, India is playing a pivotal role in supporting these efforts. Under the Indian Technical and Economic Cooperation (ITEC) program, nearly 1,500 Uzbek nationals have received training in diverse fields such as textiles, IT, cybersecurity, healthcare, banking, agriculture, pest control, science and technology, and women empowerment. Uzbekistan is positioning itself as a regional textile hub, opening up significant opportunities for India to contribute through investments, fashion expertise, branding, and textile machinery. India, known for its competitive edge in textile machinery and spare parts, is well-suited to support Uzbekistan’s ambitions. Cooperation in civil nuclear energy is also gaining momentum. Uranium shipments from Uzbekistan to India have already begun, marking a milestone in this collaboration. India has offered expertise in the irradiation of agricultural products, water purification, bio-waste management, and healthcare, particularly in cancer detection and treatment using nuclear technology. Indian investments in Uzbekistan have reached approximately $325 million, with 315 joint ventures currently operating across diverse sectors. The partnership is also witnessing growing collaboration in education, as four Indian universities—Amity, Acharya, Sharda, and Sambhram—have established campuses in Uzbekistan. This marks the beginning of a broader expansion in education, healthcare, and agriculture. Tourism is experiencing a surge, with thousands of Indian travelers visiting historic Uzbek cities such as Tashkent, Samarkand, Bukhara, and Khiva. At the same time, Uzbekistan views India as a leading destination for medical tourism, further strengthening people-to-people connections.
Uzbekistan Airways JSC, in collaboration with its India representative, ARYA ENTERPRISES is actively working to strengthen India-Uzbekistan connection and attract more Indian travelers to discover this hidden gem. Uzbekistan Airways JSC revenues have surged over the past years. In addition to daily flights from New Delhi, Uzbekistan Airways JSC expanded its operations to Mumbai in April 2024 and further to the newly launched GOX (Manohar International Airport) in October 2024. It is planning to increasing operations from Mumbai, effective April 2025, to thrice a week (currently twice a week frequency).
Kazakhstan’s state-owned gas company, QazaqGaz, is in discussions to join the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. This project, which aims to transport natural gas from Turkmenistan to India, Pakistan and Afghanistan has faced delays due to security concerns in Afghanistan and Pakistan. Kazakhstan’s participation could bring additional investment and technical expertise, potentially accelerating its progress. For India, securing energy supply through TAPI remains a priority, but geopolitical risks and Pakistan’s control over transit routes pose significant challenges. Despite these obstacles, the TAPI pipeline could play a key role in strengthening regional cooperation and energy security, provided the involved nations can navigate these challenges and create a more stable and reliable energy framework for the region. Engaging with Kazakhstan on energy diplomacy, while simultaneously expanding alternative energy partnerships, could be significant for India’s long-term energy security. The project has stalled over the years. The idea of the project goes back to 1990s when oil companies were interested in exploiting the natural gas resources of Central Asian states. However, the instability in the region led to the shelving of plans. In 2002, a new deal on the pipeline was signed by Turkmenistan, Afghanistan and Pakistan and in 2005, Asian Development Bank submitted its feasibility report. In 2008, India, Pakistan and Afghanistan signed an agreement to buy natural gas from Turkmenistan and finally in 2010, an intergovernmental agreement was signed in Ashgabat, Turkmenistan. The earlier estimated cost of TAPI pipeline was about USD 7.6 billion which has been raised to about USD 10 billion by recent estimates. The project is being coordinated by the Asian Development Bank and implemented by TAPI Pipeline Company Limited (TPCL) – Pipeline Consortium, in which Turkmengaz — a state-owned gas company of Turkmenistan has 85 percent stakes and the remaining three countries have 5 percent each. The construction of the Turkmenistan section began in 2015 and was completed in 2019. The construction of Afghanistan segment couldn’t take off immediately after the completion of Turkmenistan because of the political instability in Afghanistan. In 2022, after coming to power, the Taliban regime assured the security of the TAPI Pipeline and announced a contingent of 30000 security personnel to guard the pipeline in Afghanistan. Finally, the construction on the Afghan segment of the Pipeline began in September 2024.
Kazakhstan launched its ‘Born Bold’ media campaign in New Delhi, revealing plans for the Astana International Forum 2025 set for May 29-30. The forum aims to tackle global challenges such as sustainable development, climate change, and digitalization and strengthen Kazakhstan-India relations. It will expand Kazakhstan’s impact on the global stage, specifically in energy, agriculture, and technology sectors. The event also aims to attract investments in critical areas, aligning with Kazakhstan’s economic and diplomatic objectives.
The three-day Guwahati Asian Film Festival (GAFF) 2025 from February 7 showcased the best from Asian cinema with a Caucasian-Central Asian flavour. The highlight of the inaugural edition of the GAFF was a set of films from Azerbaijan, Kazakhstan (Joqtau directed by Aruan Anartay), and Uzbekistan (House directed by Jamshid Narzikulov).
Air Astana will launch new flights between Almaty and Mumbai on April 20, 2025. Currently, Air Astana operates nine flights from New Delhi to Almaty since 2024. The flights en route Almaty-Mumbai will be performed by Airbus aircraft three times a week on Sundays, Wednesdays and Thursdays. The first flight will depart from Almaty on April 20 at 04:40 am and arrive in Mumbai at 09:55 am local time. The duration of the flight from Almaty is 4 hours and 50 minutes and 4 hours and 20 minutes backward. Air Astana is celebrating 20 years of connecting Kazakhstan and India by expanding its services with a new Almaty-Mumbai route launching on 20 April.
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