Energy and Economy

 

World Bank Warns of Slowing Growth and Rising Debt Risks in Caucasus and Central Asia

The World Bank predicts a slowdown in economic growth across the South Caucasus and Central Asia over the next two years due to global political uncertainty, weakened trade, falling commodity prices, and inflationary pressures. The bank expects Georgia’s growth to dip yet remain regionally high at 5% by 2026, while Armenia and Azerbaijan will grow more modestly. In Central Asia, Kyrgyzstan and Tajikistan will see the sharpest declines, with Uzbekistan maintaining steady growth. Regional trade could also suffer from rising global tariffs. The report urges governments to fast-track structural reforms that strengthen the private sector and promote business innovation. It also warns that about a surge in household debt, particularly in Kyrgyzstan, where consumer loans grew more than 85% in early 2025, raising concerns of a future default crisis. Meanwhile, remittances from Russia to Kyrgyzstan and Uzbekistan rose sharply, while Georgia experienced a notable drop in remittance inflows.

Source: Eurasianet

Kazakhstan-UAE Wind Project Signals Major Leap in Renewable Energy Shift

On April 30, Kazakhstan approved a landmark deal with the UAE’s Masdar to build a one-gigawatt wind power plant and a 300-megawatt energy storage system in the Zhambyl region, advancing its green energy transition. Signed in December 2023 and ratified by the parliament in Astana this week, the project will generate 3.4 billion kilowatts per hour (kWh) annually and cut nearly two million tons of carbon emissions. It introduces Kazakhstan’s first large-scale storage system, strengthens the national grid, and brings $1.4 billion in foreign investment. The project also promises new transmission lines, job creation, and greater use of local materials, tapping into the country’s vast renewable potential.

Source: Caspian News

Kazakhstan Turns to Tajik Hydropower to Ease Energy Crisis

On April 30, Kazakhstan signed a 20-year agreement to import hydropower electricity from Tajikistan, signaling deeper regional energy cooperation in Central Asia. However, actual electricity deliveries could still be years away, because Tajikistan’s Rogun Hydropower Plant, the source of electricity, remains under construction, with only two of the six turbines currently operational and full completion not expected until 2035. The deal comes amid worsening electricity shortages in Kazakhstan, with a projected deficit of 5.7 billion kWh in 2025, prompting the country to seek alternatives beyond Russian imports and delayed nuclear plants. Although the agreement sets the price at $0.034 per kWh, it does not specify when deliveries will begin or how much power will be supplied. Once the agreement is fully operational, the electricity will flow through the restored Soviet-era regional grid, helping meet demand in Kazakhstan’s populous southeast while also enabling carbon credit claims for imported clean energy.

Source: The Times of Central Asia

Fitch Assigns ‘B’ Rating to Kyrgyzstan on Growth and Fiscal Strength

Fitch Ratings has assigned Kyrgyzstan a ‘B’ rating with a Stable Outlook, citing economic growth, low debt, and disciplined fiscal policy. The economy grew 9% annually from 2022 to 2024, driven by re-exports, mining, and construction, though growth is expected to slow to 6.5% in 2025. Public debt fell to 37.5% of GDP by 2024 and is projected to rise moderately due to bond-financed infrastructure projects. Despite reliance on remittances and ties to Russia, Bishkek maintained surpluses and kept inflation within target. Fitch sees structural risks but acknowledges improved reserves and stable macroeconomic management.

Source: Daryo

Erdoğan Announces Launch Date for Akkuyu NPP

Speaking at the Istanbul Natural Resources Summit on May 2, President of Türkiye Recep Tayyip Erdoğan announced the construction of the country’s first nuclear reactor at the Akkuyu Nuclear Power Plant (NPP) has entered the final stage and is expected to be operating at full capacity by 2028. “This will reduce natural gas imports by 7 billion cubic meters - this means savings of $2.5 billion,” Erdoğan added.

Source: Vestnik Kavkaza

Kazakhstan and Pakistan Sign Agreements on Trade and Connectivity

During the 13th meeting of their Intergovernmental Commission held in Islamabad on April 30, Kazakhstan and Pakistan signed 10 agreements on key sectors including trade, education, sports, entrepreneurship, standardization, and information exchange. The agreements, signed between Kazakhstan’s Minister of Transport Marat Karabayev and Pakistan’s Minister of National Economy Ahad Khan Cheema, focus on enhancing rail, sea, and road connectivity, simplifying customs procedures, and resuming regular direct flights between the two countries. Special emphasis was placed on regional connectivity, including the Kazakhstan-Turkmenistan-Afghanistan-Pakistan and Kazakhstan-Uzbekistan-Afghanistan-Pakistan routes.

Source: Daryo, Kazinform International News Agency

Politics and Security

 

Iran and Azerbaijan Sign Seven MOUs During Pezeshkian’s Visit to Baku

Iranian President Masoud Pezeshkian visited Baku on April 28, 2025, and signed seven memoranda of understanding (MOUs) with Azerbaijani president Ilham Aliyev, covering political consultation, cultural exchange, health, media, and investment. Both leaders reaffirmed their recognition of Nagorno-Karabakh as Azerbaijani territory. Pezeshkian shortened his trip due to a fatal incident at Shahid Rajee airport in Iran but pledged to return soon. His visit marked a significant step toward restoring bilateral ties after a gunman killed an Azerbaijani guard at his embassy in Tehran in 2023. Azerbaijan later reopened the embassy at a new location, ending an 18-month closure.

Source: bne Intellinews 

Armenia and Georgia Reaffirm Ties, Emphasize Regional Peace

Armenian President Vahagn Khachaturyan met with Georgian President Mikheil Kavelashvili in Yerevan to discuss strengthening bilateral relations and advancing regional stability. Following a private conversation, the two leaders held an expanded meeting with their delegations, where they emphasized the importance of deepening cooperation across multiple sectors. Both presidents reaffirmed their commitment to fostering peace in the South Caucasus and promoting a regional agenda centered on lasting stability and development.

Source: Hetq

Azerbaijani Delegation Visits Syria, Discussions on Rebuilding

On May 4, under the instruction of President Ilham Aliyev, a delegation led by Deputy Prime Minister of Azerbaijan Samir Sharifov conducted an official visit to Damascus, Syria. The delegation was met by Syria’s transitional President Ahmad Al-Shaara in Damascus, where sides discussed opportunities for collaboration in key areas including the economy, energy, culture, and education. Specifically, the sides exchanged potential avenues of cooperation in Syria’s post-conflict reconstruction, including possible Azerbaijani support in infrastructure, oil and gas, and education development.

Source: Middle East Monitor