Energy and Economy

 

Kazakhstan Reopens CPC Terminal in Novorossiysk After Plunge in Oil Output Following Drone Strikes

Kazakhstan’s Ministry of Energy announced on June 27 that it would resume oil exports along the Caspian Pipeline Consortium (CPC) after a wave of drone attacks on oil tankers at the CPC terminal. The country’s oil output fell drastically in the past week, with Astana choosing to temporarily suspend loading operations at the terminal. Oil and condensate production fell by 21 percent on July 22, with the most severe overall drop at 50 percent below monthly averages on July 27, or 1 million barrels per day. Meanwhile, output from its Tengiz fields dropped by over 50 percent.

Sources: Reuters, Astana Times, The Moscow Times

Kyrgyzstan Completes First Stage of Balykchy-Kochkor-Kara-Keche Rail Line

President Sadyr Japarov inaugurated the first stage of a new rail line on July 25. The Kyrgyz president traveled by rail to the new Kochkor Station, the endpoint of a 63-km line that will grow to eventually transport coal to Bishkek and connect to the China-Kyrgyzstan-Uzbekistan railway currently under construction. Kyrgyz Temir Jolu financed the project itself, although the milestone comes in the wake of embezzlement allegations related to the long-delayed North-South highway. This line is an important achievement for a country that laid no new rail for the first 30 years of its independence and has long had its connectivity constrained by mountainous terrain.

Source: The Times of Central Asia

President Mirziyoyev Launches Construction of $2.2 Billion Toll Road

Construction has officially begun on a 282-km toll road connecting Tashkent and Samarkand. The company Chinese Overseas Engineering Construction was selected in May to carry out the $2.2 billion project, which is expected to halve travel times between the two cities and decrease transportation costs by 20-24 percent. Uzbekistan is building several new highways as it seeks to capitalize on a wave of connectivity projects expanding the Middle Corridor’s competitiveness.

Source: gazeta.uz

Russia Suspends Imports of Dairy Products from Armenia

Russia has chosen to halt the import of Armenian dairy products after reportedly uncovering milk from infected livestock. Russia added that several dairy products were produced with raw materials from countries outside the Eurasian Economic Union (EAEU). The move follows months of trade tensions and Russian export bans of other Armenian agricultural goods, which have led to a 20.5 percent decline in bilateral trade from January to May compared to the same period last year.  

Source: The Moscow Times

Italy and World Bank to Co-Finance Construction of Rogun Hydropower Plant in Tajikistan

On July 24, the World Bank and the Italian State Bank Cassa Depositi e Prestiti (CDP) agreed to co-finance the construction of Rogun HPP. The Italian Climate Fund, with the approval of the Ministry of Environment and Energy Security, will loan $150 million towards the project. The World Bank will direct a grant of $659 million to Rogun as well. As Rogun HPP is being constructed by Italy’s Webuild construction company, most of the loan will go towards paying the salaries of Italian construction workers.  

Source: Interfax, Fergana.News

Politics and Security

 

Tokayev Calls for a “Freeze” of Russia-Ukraine War

Kazakhstan’s President Kassym-Jomart Tokayev called on Russian President Vladimir Putin to consider a return to negotiations between Russia and Ukraine. He specifically referred to a return to Istanbul 2.0, a negotiations framework, which was originally proposed in Spring 2022. Tokayev made the statement during a face-to-face meeting in Omsk between the two leaders, though it also follows a series of drone strikes on the Caspian Pipeline Consortium (CPC) Oil Terminal in Novorossiysk. Ukrainian Foreign Minister Andrii Sybiha publicly supported Tokayev’s message, while Russian Press Secretary Dmitry Peskov stated that a freeze would be “impossible.” 

Sources: Euronews, The Moscow Times

Kazakhstan Joins World AI Cooperation Organization as Founding Member

Kazakhstan, alongside 28 other countries, became founding members of The World AI Cooperation Organization (WAICO) on July 16, 2026. WAICO, an intergovernmental organization focused on cooperation and governance regarding AI, was founded during the World Artificial Intelligence Conference and High-Level Meeting on Global AI Governance in Shanghai, China. Kazakhstan’s membership in the organization demonstrates the country’s commitment to developing its own AI sector.

Sources: El.kz, Astana Times, Xinhua

Tehran Accuses Ukraine of Strike on Iranian Vessel in the Caspian Sea

Iran’s foreign ministry announced that one sailor had been killed and another injured following an attack on an Iranian commercial vessel in the Caspian Sea. Tehran blamed Ukrainian forces for targeting the ship, calling it a violation of international law and an attempt to escalate the war. Meanwhile, Ukrainian President Volodymyr Zelenskyy pointed to intelligence showing that the Iranian cargo ship was used to transfer military equipment and technology between Russia and Iran. Separately, Turkmenistan condemned the attack and emphasized the need for stability and peace in the Caspian Sea. 

Sources: Reuters, Caspian Post 

Azerbaijan and Germany Elevate Ties to Strategic Partnership

Azerbaijani President Ilham Aliyev visited Berlin on July 20-21 to meet with German Chancellor Friedrich Merz and President Frank-Walter Steinmeier, where Azerbaijan and Germany signed a Joint Declaration on a Strategic Agenda for Bilateral Partnership. The document formalizes a new state in relations, extending cooperation beyond energy into transport connectivity, trade, and security. Direct supplies of Azerbaijani gas to Germany via the Southern Gas Corridor began in January 2026, with related contracts now totaling around 2 billion cubic meters annually. Furthermore, Merz described the initialed Armenia-Azerbaijan peace agreement as a historic opportunity to overcome a decades-long conflict, while Steinmeier called the two countries "an island of stability." 

Source: Trend.az