This week, the media in the region covered several important energy stories, such as Türkiye and Turkmenistan's finalizing a deal that will see Turkmenistani gas exported to Türkiye through Iran and Uzbekistan’s plans to form an international consortium to develop its nuclear energy potential. They also reported on a number of trade developments, including Russia's lifting of restrictions on the transit of Kazakhstani agricultural products and Uzbekistani and Pakistani businessmen's negotiating of 181 deals valued at $500 million at the “Made in Uzbekistan” expo in Pakistan. Several outlets noted that Afghanistan concluded a $264 million contract to design a new railway from Herat to Kandahar, and the Canadian mining company, Ivanhoe Mines, began the exploration of a significant copper deposit in Kazakhstan. Lastly, multiple sources also covered the surge in remittances received by Kyrgyzstan.

Energy

Türkiye and Turkmenistan have signed a deal to export Turkmenistani gas through Iran to Türkiye (Reuters). According to the Turkish Energy Minister Alparslan Bayraktar, the gas will begin flowing on March 1. Initially, Turkmenistan plans to export roughly 2 billion cubic meters annually. Currently, Türkiye consumes around 50 billion cubic meters of gas every year. Its leading suppliers include Russia, Iran, and Azerbaijan. The Turkish energy minister also confirmed that both countries are exploring the possibility of constructing a pipeline under the Caspian Sea to boost their energy cooperation further.

On February 10, Uzbekistani President Shavkat Mirziyoyev held a meeting to review the country’s nuclear industry (Kun). During the meeting, the President noted the growing energy needs of the population and the need to develop all energy resources. While 4 GW of electricity has been brought online, and the share of renewable energy has reached 16% in recent years, the government plans to add an additional 25 GW in the next five years to increase the share of renewables above 50% by 2030. Using the country’s significant uranium reserves, Uzbekistan plans to construct several small modular nuclear reactors. To this end, Azim Akhmedkhadjaev, the director of UzAtom, Uzbekistan’s nuclear energy agency, announced they would form an international consortium to support the development of nuclear projects, such as constructing a small modular NPP in Jizzakh (Kun). He outlined that they would utilise non-nuclear Chinese technologies, European software and hardware systems, and Russian systems. For instance, he mentioned that the project would employ various innovations, such as dry cooling towers from Chinese and Hungarian manufacturers, to minimise water consumption at the plant. Lastly, he also emphasised the importance of safety and that UzAtom has established a program with the International Atomic Energy Agency to train the necessary technicians.
According to Uzbekistan’s 2025 state program, the government expects to add more than 4.5 GW (up from 3.5 GW) of solar and wind energy in the next five years (Kun). In addition, photovoltaic panels with a capacity of 785 MW and HPPs with a capacity of 225 MW will be installed (up from 160 MW). The revised document excludes several initiatives, such as the plan to attract $10 million from the sale of carbon credits and several green development measures for tourist cities. Preferential tariffs for renewable energy will also be applied from April 1. These tariffs will also apply to biogas and waste incinerators. They also plan to introduce the practice of large state companies, such as Uzbekistan Airways and Uzneftegaz, conducting and publishing ESG reports. The document proposes the establishment of pilot industrial zones producing green products in Fergana and Samarkand. The minimum percentage of green components in investment projects will increase from 15% to 30% by 2027 and to 55% by 2030. The development of ecological master plans for districts and regions is proceeding, along with the introduction of environmental ratings for regions.

Kyrgyzstan’s ambassador in Saudi Arabia, Ulukbek Maripov, recently met with the Executive Director of Fas Renewable Energy, Marcus Schrauf (Kabar). They discussed the company’s plans to construct a 900 MW solar power plant for $500 million in collaboration with the Kyrgyzstani Green Energy Fund. They also explored the possibility of deepening cooperation in the energy sector.

Last week, Kyrgyzstan’s Minister of Energy, Taalaibek Ibrayev, held several meetings with the heads of multiple Chinese companies during a visit to China last week (AKIpress). He held talks with the Deputy Director General of China National Nuclear Corporation (CNNC) Zhang Kai. He emphasised the need to approve the planned 400 MW solar power plant in Issyk-Kyl. They also considered developing nuclear energy in Kyrgyzstan. He visited Beijing Capital International Airport and toured their new 25 MW solar power plant. He met with Sun Energy Co., which is building a 250 MW wind farm in the Batken region. During his visit, he also held discussions with representatives from companies contemplating investing in green energy in Kyrgyzstan, including Winday, Beyondsoft, Shongfuyan Group, Molin Energy Company, Covec China Overseas Engineering Group, and the China Machinery Engineering Corporation. He met with Li Bianchu, a member of the Board of Directors of TBEA, the company that expanded the Bishkek heating and power plant. He invited them to participate in modernizing the old units of the plant, laying a 110 kV cable line between Datka and Kemin, and developing the Jalalabad airport. Lastly, he met with Qian Liuyu, the main shareholder of the Kyrgyz-Chinese Joint Hydropower Construction Society, and revealed that it will construct a new small HPP in Kyrgyzstan (Kazinform). The new HPP will be built at the Papan reservoir on the Ak-Buura River in the Osh region. It will have a capacity of 25 MW and will cost around $27 million. The minister also indicated that the feasibility study was already complete.

Remittances

According to data from the National Bank of Kyrgyzstan, the gross inflow of remittances into the country surged to $2.99 billion in 2024 (24.kg). This represents a 10.5% increase compared to the 2023 figures. Russia accounted for 93.1% or $2.78 billion, with other significant amounts received from the U.S. (2.1% or $62.5 million) and South Korea (1.5% or $45.6 million). On the other hand, outflows decreased to $445.8 million, a 20.6% drop compared to 2023. Overall, net inflows rose by 18.6% to $2.55 billion (AKIpress). 

Infrastructure

Afghanistan has signed contracts worth $264 million to design a new 737-kilometer railway between Kandahar and Herat (Daryo). This comes amid a broader effort to enhance Afghanistan’s infrastructure and regional connectivity. The project has garnered attention from Central Asian states that are interested in developing connections with Iran, Pakistan, and India. In 2024, Afghanistan, Kazakhstan, and Turkmenistan held talks on developing the corridor between Herat and Kandahar. Turkmenistan is also constructing a logistics centre at Torghundi on its border with Afghanistan. Meanwhile, Kazakhstan and Uzbekistan have agreed to cooperate to extend the country’s rail infrastructure and supply the necessary materials.  

Finance

According to Uzbekistan’s Central Bank, the value of the country’s foreign currency and gold reserves amounted to $42.9 billion, an increase of $1.72 billion or 4.17% over January (Daryo). Notably, the country’s gold reserves rose by $3.02 billion to $35.06 billion. This significant growth has been driven by a surge in the price of gold on global markets, with a troy ounce reaching $2900. In terms of volume, Uzbekistan’s reserves only grew slightly from 12.3 million troy ounces (382.57 tons) to 12.6 million troy ounces (391.9 tons). At the same time, the country’s foreign exchange reserves fell by $1.29 billion to $7.3 billion. On the other hand, foreign securities rose to $102.1 million. Overall, the Central Bank’s holdings of foreign bonds have tripled since October, in accordance with its current investment policy.

Investment

In 2024, Tajikistan experienced a sharp increase in foreign capital inflows (The Caspian Post). The total inflow of foreign capital surged by 72% or $2.1 billion to $4.9 billion. 82.4% or $4.1 billion went to Dushanbe, 15.5% or $761.2 million to Sughd Province, 0.2% or $11.8 million to Khatlon Province, 0.1% or $3.2 million to districts of republican subordination, and 0.1% or $1.3 million to Gorno-Badakhshan Autonomous Oblast. Foreign direct investments (FDI) also rose by $110.2 million or 38.8% to $394.3 million. The lion’s share of FDI came from China ($150.9 million) and the U.S. ($118.9 million). Other significant investors include the U.K. ($51.1 million), Russia ($28.9 million), and Kazakhstan ($15.7 million).

The Asian Development Bank (ADB) will provide $222 million to finance key investment projects in Kyrgyzstan in 2025 (Kazinform). Of the $222 million, $74.8 million will be made up of grants, while the remaining $147.2 million will be preferential loans. They have pledged $40 million towards developing climate and disaster-resilient water management systems, $65 million to expand access to affordable and energy-efficient housing, and $50 million towards climate reforms under a policy-based loan. Under the Sustainable Energy Financing Facility (SEFF 2), they plan to give $3 million to renovate low-carbon municipal buildings, $1 million to a new business service center, and $530000 to build a floating solar power plant at the HPP 5 reservoir. Lastly, $37.5 million will be provided for the development of the Almaty-Bishkek economic corridor and $25 million for improving the energy efficiency of public buildings.

Diplomatic Events

On February 12, Tajikistani Foreign Minister Sirojiddin Muhriddin visited Astana (The Astana Times). He met with his Kazakhstani counterpart, Murat Nurtleu, to discuss the development of relations and the implementation of multiple agreements concluded during President Tokayev’s visit to Tajikistan last year. He also met with President Tokayev to consider expanding cooperation in various sectors, such as trade, agriculture, digitalization, and transit. They also explored enhancing energy cooperation during their deliberations. Following his meeting with Foreign Minister Nurtleu, Foreign Minister Muhriddin announced that Tajikistan and Kazakhstan would soon seek to sign an agreement on how much electricity Kazakhstan will receive from Tajikistan’s Rogun HPP (Kazinform).