By Syed Fazl-e-Haider

The Caspian Sea is increasingly emerging as a focal point of geopolitical competition. The joint military exercises conducted by Russia and Iran in July, following similar drills by Azerbaijan and Kazakhstan in the northern Caspian a month earlier, underscore the region’s rapid transformation into a nexus of strategic rivalries and evolving security alignments. Among the littoral states, Azerbaijan, Kazakhstan, and Turkmenistan are assuming particularly prominent roles in shaping the strategic landscape. Their efforts are supported by Turkey, which is facilitating the naval expansion of these three Turkic nations. Russia’s ongoing involvement in the war in Ukraine has significantly weakened Moscow’s capacity to assert dominance over the Caspian Sea and to effectively utilize it as part of the International North–South Transport Corridor (INSTC) linking Russia to Iran and India.


                                                            Credit: Wikimedia Commons

BACKGROUND: The Caspian Sea was widely regarded as a “Russian lake” during the Soviet era, as Iran, possessing only a short Caspian coastline, showed little interest in utilizing it for power projection. For decades, Russia’s Caspian Flotilla maintained dominance over the waters of the inland sea. After the Soviet Union’s dissolution in 1991, Moscow sought to preserve the existing balance of power in the Caspian. In 2018, Russia secured an agreement among the five Caspian littoral states on territorial delimitation, excluding the military presence of non-littoral actors in the sea.

The region experienced a significant geopolitical shift in 2020 after Azerbaijan’s victory in the 44-day war against Armenia over the Nagorno-Karabakh region. Turkey provided military assistance to Azerbaijan during the conflict. Following the Azerbaijan-Armenia war, the Caspian littoral states expanded their navies. Turkey continues to support Azerbaijan’s requirements for modern weapons, equipment, and ammunition. In 2023, Azerbaijan’s Defense Minister, Zakir Hasanov, affirmed that Ankara was Baku’s principal partner in military cooperation.

Over the past five years, Turkey has facilitated the naval expansion of Kazakhstan, Azerbaijan, and Turkmenistan. These countries, along with Kyrgyzstan and Uzbekistan, are members of the Turkey-backed “Pan-Turkic Union.” Through this framework, Turkey has assumed a leading role in diminishing Russia’s influence over the military development of these states.

In 2023, Turkey’s Asfar and YDA Group, together with Kazakhstan’s Uralsk Plant “Zenit” JSC, concluded an agreement for the construction of offshore platforms in the Caspian Sea. The agreement included the production of various naval vessels, including main surface combat ships, to fulfill the operational requirements of the Kazakh Navy. Likewise, the deepening relations between Turkey and Turkmenistan signify a broader shift in energy geopolitics and highlight their shared strategic interests. The Bayraktar TB2, Turkey’s first domestically produced unmanned combat aerial vehicle (UCAV), is deployed within Turkmenistan’s armed forces. In February, the two countries signed a gas supply agreement that offers Turkmenistan a new export channel while consolidating Turkey’s position as a regional energy hub.

In 2024, the joint military exercises Birleistik (Unity) 2024 were conducted at Kazakhstan’s Oymasha training ground and Cape Tokmak along the Caspian coast, marking the first such drills held without Russian participation. The armed forces of Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan jointly participated in the exercise.

In April, Azerbaijan and Kazakhstan announced plans to conduct the joint military exercises Caspian Breeze – 2025 in the northern part of the Caspian Sea near Russia’s coastline. The exercises commenced in June at Aktau, Kazakhstan, with the objective of strengthening the protection of maritime economic infrastructure, naval bases, and shipping routes. A month later, Russia and Iran initiated their own joint naval exercises, CASAREX 2025, under the banner “Together for a Safe and Secure Caspian Sea.” These drills were designed to enhance maritime security and promote deeper naval cooperation between the two states.

The two joint military exercises within the span of a single month demonstrate a changing regional balance of power. The Caspian littoral states have expanded their naval capabilities in recent years, thereby challenging Russia’s long-standing hegemony in the Caspian region.

IMPLICATIONS: The navies of the three Turkic littoral states, Azerbaijan, Kazakhstan, and Turkmenistan, have experienced substantial growth and deepened cooperation in recent years. Through a series of bilateral and multilateral security agreements and supported by Turkey, these states have enhanced their strategic position vis-à-vis Russia. These developments have not only strengthened the collective influence and military capacity of the Turkic states but have also posed a significant challenge to Russia’s longstanding naval dominance in the Caspian.

Security cooperation among the three Turkic littoral states in the absence of Russian participation signifies a major geopolitical realignment in the Caspian region. For instance, Azerbaijan and Turkmenistan have agreed to employ their joint naval forces to protect pipelines on the seabed and vessels operating on the surface. The regional geopolitical competition is likely to intensify following Iran’s decision to resume drilling operations in the Caspian after a 30-year hiatus. This development could generate tensions with the three Turkic littoral states, which are already deeply engaged in offshore oil and gas extraction within the Caspian Sea.

Turkey plays a pivotal role in the ongoing militarization of the Caspian Sea. It initially strengthened Azerbaijan’s defense capabilities, subsequently supported Turkmenistan, and is now actively engaged in enhancing Kazakhstan’s naval power. According to Yuri Lyamin, an analyst at the Center for Analysis of Strategies and Technologies (CAST), “Kazakhstan is following the ongoing, multi-year process of strengthening the navies of Caspian states. The reasons and necessity of this can be debated, but it is a long-standing trend driven by prestige and the desire to keep up with its neighbors. Over the past decade and a half, Turkmenistan has built a very strong navy in the Caspian, including with Turkey’s assistance. It was to a Turkish design that Turkmenistan’s largest ship, and one of the largest warships in the Caspian, the corvette Deniz Khan, was commissioned and constructed in 2021. A considerable number of missile, missile-artillery, and other boats for the Turkmen border guards were also built based on Turkish designs.” The growing number of actors in the region is complicating Moscow’s ability to utilize the area for strategic connectivity projects. One of these is the International North–South Transport Corridor (INSTC), a Russia-led project designed to connect Russian ports with Iran, the Gulf region, and the Indian Ocean. The INSTC agreement was initially signed in 2000 by Russia, Iran, and India, was later joined by Azerbaijan and several Central Asian states. Meanwhile, Iran is actively seeking alternative trade routes to the EU, including via Armenia.

Conversely, Azerbaijan’s Port of Baku serves as a critical hub within the east–west Trans-Caspian Middle Corridor, which links China to the EU via Central Asia and the South Caucasus, thereby bypassing Russia. The Middle Corridor endows Baku’s with an important role for both Europe and Central Asia by providing a viable alternative to Russian transit routes, facilitating efficient east–west connectivity across the Caspian and through the South Caucasus.

Similarly, Turkey promotes the integration of Turkmenistan in the Middle Corridor, which would advance Turkey’s long-standing ambition to position itself as a strategic logistical bridge linking Asia and Europe.

The 2018 agreement grants the Caspian states the right to construct gas pipelines across the seabed. Ankara aims to channel Caspian gas to its territory via Azerbaijan, and onward to the EU, elevating Turkey’s role as a pivotal energy hub. However, this directly contradicts Russian interests and the potential exists for heightened tensions or even confrontation between the Turkey-backed Turkic states and the Russia-Iran alliance over control of the Caspian Sea’s energy resources.

CONCLUSIONS: The geopolitical competition between the three Turkey-backed Turkic littoral states and the Russia–Iran alliance could intensify as both sides continue to expand their economic and military presence in the Caspian region. The increase in military exercises conducted over the past two years underscores the emergence of new security alignments within the Caspian basin.

Turkey has taken on a leading role in advancing the naval capabilities of the three Turkic littoral states, a position that was traditionally held by Russia. As Turkey’s involvement in the region deepens, Moscow’s ability to shape the military development of these countries will likely be further marginalized. Russia, meanwhile, continues to bear significant geopolitical costs for its full-scale invasion of Ukraine in 2022. Since the onset of the conflict, Moscow’s influence across Central Asia and other regions, including the Caspian, has steadily declined and other powers such as China and Turkey have begun to fill the resulting vacuum.

AUTHOR’S BIO: Syed Fazl-e-Haider is a Karachi-based analyst at the Wikistrat. He is a freelance columnist and the author of several books. He has contributed articles and analysis to a range of publications. He is a regular contributor to Eurasia Daily Monitor of Jamestown Foundation  Email, This email address is being protected from spambots. You need JavaScript enabled to view it.

By Umair Jamal

On July 3, 2025, Russia became the first major state to formally recognize the Taliban as Afghanistan’s legitimate government. This decision, framed as a strategic partnership aimed at countering the Islamic State-Khorasan (ISIS-K), seeks to employ Taliban authority to stabilize Afghanistan and curb regional terrorism. Yet, the move entails legitimizing a regime with longstanding and ongoing associations with jihadist networks, including al-Qaeda, Tehrik-i-Taliban Pakistan (TTP), the Islamic Movement of Uzbekistan (IMU), and other extremist actors. These linkages, encompassing ideological affinities, logistical cooperation, and territorial safe havens, generate concern regarding the exacerbation of extremism, the destabilization of neighboring states such as Tajikistan, Uzbekistan, and Pakistan, and the complication of global counterterrorism strategies.

                                                                 City of Kabul (Image Courtesy of Pexel)

BACKGROUND: Russia’s formal recognition of the Taliban as Afghanistan’s legitimate government on 3 July 2025 represents a significant reorientation in its Afghan policy. This decision is underpinned by Moscow’s security imperatives and broader geopolitical calculations.

After the U.S. withdrawal in August 2021, the Taliban rapidly reasserted control over Afghanistan, creating a power vacuum that has permitted diverse extremist organizations to expand within ungoverned spaces. Russia’s engagement is shaped by the Taliban’s asserted opposition to the Islamic State-Khorasan (ISIS-K), a shared adversary responsible for the March 2024 Crocus City Hall attack in Moscow, which claimed more than 140 lives. This incident highlighted ISIS-K’s transnational capabilities, leading Russia to regard the Taliban as a prospective partner in constraining its influence.

In April 2025, Russia’s Supreme Court annulled the Taliban’s terrorist designation, maintained since 2003, thereby facilitating formal recognition and reflecting a pragmatic effort to stabilize Afghanistan and safeguard Russian interests in Central Asia. The Taliban’s governance, however, remains highly contested owing to their strict enforcement of Islamic law and enduring connections with extremist organizations. The movement appears to have openly violated the 2020 Doha Agreement commitment undertaken with the international community to prevent Afghan territory from serving as a base for terrorism.

During their 1996–2001 rule, the Taliban provided sanctuary to al-Qaeda, a relationship that endures through both operational and ideological linkages, as documented in recent UN assessments. The Haqqani Network, a semi-autonomous Taliban faction under Interior Minister Sirajuddin Haqqani, remains pivotal in orchestrating attacks and sheltering terrorists. In addition to al-Qaeda and Tehrik-i-Taliban Pakistan (TTP), the Taliban sustain ties with organizations such as the Islamic Movement of Uzbekistan (IMU), Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), and the East Turkestan Islamic Movement (ETIM), which targets China’s Xinjiang region. Since 2021, at least 21 extremist groups have exploited Afghanistan’s ungoverned spaces for training, recruitment, and logistical operations, according to the UN’s 15th Analytical Support and Sanctions Monitoring Team report.

ISIS-K, which emerged in 2015 with an estimated 4,000–6,000 combatants, persists in conducting attacks across Iran, Pakistan, and Europe, reinforcing Russia’s calculated yet precarious reliance on the Taliban to confront this threat while potentially disregarding their wider patronage of jihadist networks.

IMPLICATIONS: Russia’s recognition of the Taliban carries substantial implications for regional stability and global counterterrorism. On the one hand, it may enhance collaboration against militant organizations such as ISIS-K, which pose threats to both Russia and Central Asian states. The Taliban have undertaken operations that reduce ISIS-K’s local activity, though the group’s international reach endures, as demonstrated by the 2024 Moscow attack. On the other hand, such engagement entails risks, as legitimizing the Taliban may strengthen a regime that continues to shelter, protect, and support multiple extremist factions.

A recent United Nations assessment warns that al-Qaeda and its affiliated jihadist groups now control facilities in 14 of Afghanistan’s 34 provinces and are increasingly assisting anti-Pakistani militants, such as Tehrik-i-Taliban Pakistan (TTP), in conducting cross-border attacks. Another UN report indicates that the TTP has established new training camps in Kunar, Nangarhar, Khost, and Paktika (Barmal) Provinces and is expanding recruitment within its ranks, including from the Afghan Taliban. The UN further notes that the Taliban continues to provide the TTP with logistical, operational, and financial support, with leader Noor Wali Mehsud reportedly receiving a “monthly payment” of approximately 43,000 USD. Evidence also suggests that TTP cadres sustain tactical-level ties with ISIL-K in Afghanistan while offering training and assistance to militant networks in Pakistan’s Baluchistan province. Moreover, the de facto authorities in Kabul have deployed Islamic Movement of Uzbekistan (IMU) combatants within law enforcement and military units to provide domestic security, particularly in northern Afghanistan.

In recent months, foreign terrorist combatants of Central Asian origin with affiliations to al-Qaeda and the Islamic Movement of Uzbekistan have relocated from the Syrian Arab Republic to northern Afghanistan. These fighters have been characterized as “scouts,” serving as a vanguard to establish conditions for the subsequent arrival of their families and additional militants into Afghanistan.

Moreover, the Uyghur militant organization East Turkestan Islamic Movement (ETIM), also known as the Turkistan Islamic Party (TIP), continues to operate within Afghanistan. According to the United Nations, ETIM enjoys “unprecedented levels of freedom” under Taliban governance. In some instances, the Taliban have relocated ETIM militants from Badakhshan, near China’s border, to other regions under pressure from Beijing. This relocation appears to constitute partial restraint rather than elimination, enabling the group and its ideology to persist in Afghanistan. The Taliban have further refused to extradite senior figures such as TIP leader Abdul Haq al-Turkistani, who remains in Kabul directing the group’s global activities, including those of its Syrian contingents. Turkistani reportedly mediates internal Taliban disputes and represents al-Qaeda in the Taliban’s Shura Majlis, particularly on military affairs. This situation directly contradicts Taliban denials of hosting foreign fighters and demonstrates high-level endorsement and protection.

Another pressing concern is that the Taliban are deploying and mobilizing foreign militant organizations such as Jamaat Ansarullah, which undermines Tajikistan’s stability, and the IMU, to combat ISIS-K in Afghanistan. This operational integration is troubling, as it demonstrates the incorporation of such groups into military roles. A recent UN assessment highlights “closer ETIM/TIP collaboration with the Taliban in Afghanistan,” encompassing alliances with TIP’s Syrian affiliate, Hayat Tahrir al-Sham (HTS). The report further noted that “Regional Member States reported that, in December 2024, a three-person delegation, including one representative from ETIM/TIP, traveled from Damascus to Kabul and engaged the de facto authorities on the eastward movement of foreign terrorist fighters.” Such partnerships and dialogues indicate that the Taliban regard groups like ETIM and IMU as allies rather than adversaries, despite their destabilizing implications for Central Asia and Russian interests.

CONCLUSIONS: Russia’s recognition of the Taliban as Afghanistan’s legitimate government constitutes a high-risk gamble that may ultimately backfire by strengthening a regime deeply enmeshed with jihadist networks. United Nations reports substantiate the Taliban’s continued support for organizations such as al-Qaeda, the Haqqani Network, TTP, and ETIM, which exploit Afghanistan’s ungoverned spaces for training and cross-border operations, thereby undermining stability across Central and South Asia.

By legitimizing the Taliban, Russia may unintentionally reinforce a wider terrorist ecosystem, thereby weakening international counterterrorism norms and complicating collaboration with Western and regional partners. The Taliban’s accommodation of at least 21 extremist organizations, documented since 2021, heightens the risk of Afghanistan reemerging as a central hub of global terrorism.

To balance its security interests while mitigating associated risks, Russia should pursue a cautious and multifaceted strategy. First, it should employ platforms such as the Shanghai Cooperation Organization (SCO) to coordinate with China, Tajikistan, and Uzbekistan on intelligence exchange and border security to limit extremist spillover. Second, Moscow should make its support for the Taliban conditional upon verifiable commitments to sever links with groups such as TTP and ETIM, reinforced through targeted sanctions to ensure compliance. Third, Russia ought to engage both Pakistan and India in addressing cross-border threats posed by TTP and Kashmir-oriented organizations like LeT and JeM, fostering regional dialogue to avert escalation. Finally, it should strengthen its domestic counterterrorism capacity by investing in real-time surveillance of Afghan-based groups and reducing reliance on Taliban assurances.

By combining pragmatic engagement with rigorous oversight, Russia can advance its objective of constraining ISIS-K while avoiding the amplification of a broader jihadist threat and ensuring that Afghanistan does not further destabilize the region.

AUTHOR'S BIO: Umair Jamal is a Ph.D. candidate at the University of Otago, New Zealand, and an analyst at Diplomat Risk Intelligence (DRI). His research focuses on counterterrorism and security issues in Pakistan, Afghanistan, and the broader Asia region. He offers analytical consulting to various think tanks and institutional clients in Pakistan and around the world. He has published for several media outlets, including Al-Jazeera, Foreign Policy, SCMP, The Diplomat, and the Huffington Post.

By Charlotte Krausz

President Trump's recent imposition of 25 percent tariffs on India for importing Russian oil signals a potential expansion of secondary sanctions to other Russian energy customers. The policy shift threatens to extend punitive measures to post-Soviet states in Central Asia and the South Caucasus that remain heavily dependent on Russian energy infrastructure. While aimed at curtailing Russia's war revenues, such measures could paradoxically drive these strategically important regions closer to Moscow's orbit, undermining years of U.S. and EU engagement in the region.

Gazprom headquarters in St. Petersburg, Russia (Image Courtesy of Flickr)

BACKGROUND: In his statements, Trump has criticized countries that import oil and accused them of funding the “Russian war machine.” By stopping Russia’s revenues from its largely petrostate-based war economy, the U.S. seeks to thwart Russian advances in Ukraine and punish Putin. Yet imposing high tariffs on countries dependent on Russia for their energy supply, especially on post-Soviet states in Central Asia and the South Caucasus, could have far worse ramifications for U.S. and EU aspirations in the region and drive former Soviet republics closer to Russia once more

A key example of this policy shift occurred in the first days of August 2025, when President Trump imposed a 25 percent tariff (later raised to 50 percent) on India for being a major buyer of Russian oil. Randhir Jaiswal, a spokesman for the Foreign Ministry of India, said that “the targeting of India is unjustified and unreasonable.” Given that India buys one-third of its crude oil from Russia, India is unlikely to change course, and the tariffs have badly damaged relations with India. The move is especially surprising given Trump’s past cordial relationship with Modi and the Biden administration's geopolitical courting of India. Biden even hosted Modi for a state dinner in June 2023.

In a recent opinion piece in The Washington Post, Andriy Yermak, Ukraine’s chief of the presidential office, praised the high tariffs on India. Yermak declared that it was a “great first step” but called for more pressure and for a “full economic blockade” of Russia. While Ukraine understandably wants everything possible to be done to end the war and bring peace, not all avenues will lead to the desired outcome. The decision for Europe to get off Russian oil following the full-scale invasion of Ukraine in 2022 was apparent and necessary. And though it led to an increase in energy costs and inflation, alternative energy sources were found, and Russia lost a vital stream of revenue. The expansion of these sanctions, this reasoning goes, will help the war effort and thwart Russia’s imperial ambitions.

But this strategy could be disastrous if poorly applied, especially in Central Asia and the South Caucasus, where countries are still dependent on Russia for energy needs. The energy landscape in Central Asia reflects decades of Soviet-era infrastructure and integration. Central Asian countries, except oil-rich Turkmenistan, remain highly reliant on Russian energy infrastructure and benefit from shared Soviet-era energy grids and the Eurasian Economic Union.

The South Caucasus presents a similar case. Georgia and Armenia, even more so, are largely dependent on Russian oil and have limited energy supply options. Georgia lacks domestic oil refineries and imports primarily from Russia and Azerbaijan, with Russian imports recently surpassing Azerbaijani supplies for the first time in eighteen years despite troubled bilateral relations. Armenia faces even greater constraints, with Gazprom maintaining a monopoly over natural gas imports and distribution. Natural gas made up 80 percent of Armenia’s energy imports in 2020. The rest comes from Iran in an electricity-for-natural trade deal. Armenia’s natural gas imports are delivered through the North-South Gas Pipeline via Georgia. Other regional pipelines bypass Armenia due to geopolitical conflicts with Azerbaijan and Turkey.

IMPLICATIONS: Following the closure of European markets to Russian oil after the 2022 invasion of Ukraine, Russian energy companies redirected their focus towards Central Asia, leading to an increase in Russian energy imports into the region. Russia and Central Asian countries rely on the same Soviet-era-built energy grid and EAEU membership. Russian investment in Central Asia’s energy infrastructure has expanded since 2022, including nuclear power plants in Uzbekistan and Kazakhstan and hydroelectric facilities elsewhere. Even Kyrgyzstan, despite being a renewable energy leader, plans to double its Russian oil imports by 2040.

Despite their energy dependence on Russia, both Armenia and Georgia have sought EU membership in the past. Both countries have undergone democratic revolutions, although their current political situations are tenuous. After Russia failed to defend Armenia from Azerbaijan’s September 2023 offensive, public opinion of Russia dramatically decreased, with two-thirds expressing a negative view and 40 percent viewing Russia as a threat. When the Georgian government withdrew from EU accession in November 2024, protests lasted for months demanding a reversal. Armenia and Georgia also share ties to Europe and the U.S. in terms of tourism, culture, and ethnic diasporas.

The U.S. imposing sanctions or high tariffs on countries in Central Asia and the Caucasus has the potential to undo decades of U.S. outreach to these regions. These could not separate their energy supplies from Russia without great harm to their own economies, nor would such a tradeoff be worth it to them. Antagonist trade policies would increase anti-American sentiment, inhibit future American investment, and thrust these post-Soviet states back into Moscow’s orbit.

Secondary sanctions on Russian oil importers are not assured to change the situation on the ground in Ukraine, which has been at a territorial standstill for months. Russia has proved more than capable of keeping its war machine growing and expanding under international sanctions. These approaches are less effective than simply supplying Ukraine directly with the weapons it needs to liberate territory and defend its skies.

Should the U.S. see strategic importance in weaning post-Soviet republics off Russian oil, it could encourage alternative energy routes and the use of renewable energy. Tajikistan and Kyrgyzstan are already at the forefront in renewables like wind and hydroelectric power. A key alternative route could source energy from Turkmenistan. Turkmenistan has the fourth-largest natural gas reserves in the world. As Michael Doran from the Hudson Institute explains, “We just need a few kilometers of pipeline to be built in order to connect up Turkmen gas to Azerbaijan, which can then flow comfortably to Europe across Georgia … Turkmen Gas could end the dependence of Europe on Russian gas.” In addition, the U.S.-brokered peace treaty between Armenia and Azerbaijan presents new energy options for Armenia. If Armenia’s borders with Azerbaijan and Turkey were to be opened, it could diversify its energy imports rather than remaining reliant on Russia.

CONCLUSIONS: Post-Soviet states in Central Asia and the Caucasus are caught between a revanchist Russia and growing ties with the West. Central Asia and the South Caucasus have much to offer the West, from energy deposits to critical minerals, emerging democracies, and tourism. A “full economic blockade” would not only be impossible to enforce but also detrimental to long-term U.S. interests.

The countries of the Central Asia and Caucasus regions are aware of the great power rivalries surrounding them. They understand their precarious situations and the importance of not antagonizing Russia. If the U.S. wants to have a presence in Central Asia and the South Caucasus in the decades to come, it must respect the inherent multilateralism of these regions. As the war in Ukraine drags on, Washington must decide to what extent it sees importance in stopping the flow of Russian oil. It must weigh the value of cutting Russian oil revenues against future relations with post-Soviet countries.

AUTHOR’S BIO: Charlotte Krausz is a researcher at the American Foreign Policy Council, a Washington-based think tank. She is an undergraduate at the University of St. Andrews studying International Relations and Persian.

John DiPirro

July 25, 2025

Armenia stands at a critical crossroads as it seeks to break free from Russian influence and integrate with the West. Following recent peace talks with Azerbaijan in Abu Dhabi and the proposed U.S.-overseen Zangezur Corridor, Armenia has a unique opportunity to transform its geopolitical position. The nation must navigate four key strategic priorities: normalizing relations with Turkey despite historical tensions over the Armenian Genocide, accelerating EU and NATO integration while strengthening democratic institutions, developing strategic industries including defense manufacturing partnerships with Europe, and leveraging the Zangezur corridor to deepen ties with India as an emerging defense partner. With the pivotal 2026 parliamentary elections approaching and Russia intensifying hybrid attacks to destabilize the government, Armenia's choices will determine whether it consolidates as a democratic, pro-Western anchor or reverts to dependence and instability.

Read Armenia's Corridor Toward Regional Stability

By Sergey Sukhankin

Kazakhstan has finalized its decision regarding the bidder selected to construct its inaugural nuclear power plant (NPP). Contrary to earlier projections favoring a Chinese provider, the Russian state corporation Rosatom has assumed the leading role within the international consortium. However, this outcome is unlikely to marginalize Chinese interests: a Chinese firm is expected to lead the construction of a subsequent NPP, while Chinese companies are concurrently gaining prominence in other vital sectors of Kazakhstan’s (and Central Asia’s) economy, including renewable energy and water management. Western firms appear to be the principal losers, as their capacity to expand into the most lucrative and strategic segments of Kazakhstan’s economy is likely to diminish.

 The Beloyarsk Nuclear Power Plant in Russia. Image Courtesy of IAEA Imagebank  

BACKGROUND: In October 2024, following a national referendum in which over 71 percent of voters supported the construction of a nuclear power plant (NPP) in Kazakhstan, local authorities prouced a shortlist of prospective bidders. This included China’s CNNC, Russia’s Rosatom, South Korea’s KHNP, and France’s EDF. The selection process extended beyond economic rationale and was clearly shaped by geopolitical considerations: although Kazakhstani authorities initially intended to make a decision by the end of 2022, the deadline was repeatedly postponed. Despite widespread confidence among local experts that CNNC would prevail, and notable public support for the French and South Korean contenders, on June 14 it was officially announced that Russia’s Rosatom would lead the international consortium responsible for building the NPP.

However, appointing Rosatom to oversee Kazakhstan’s first NPP does not signify exclusive Russian dominance in the country’s emerging nuclear sector. President Kassym-Jomart Tokayev had previously stated that, to avert a foreseeable energy shortage, Kazakhstan would require not one but three NPPs. Furthermore, Minister of Energy Almasadam Sätqaliev publicly indicated that CNNC would likely head the consortium for the construction of another NPP. Tokayev later reaffirmed this during a meeting with Xi Jinping, assuring the Chinese leader that, given Kazakhstan’s need for 2–3 NPPs, CNNC is regarded as a reliable strategic partner with a secured role in the domestic market.

IMPLICATIONS: In many respects, Kazakhstan’s decision to appoint Rosatom as the head of the international consortium is readily explicable and can be attributed to two principal factors. First is the logic of “do-not-poke-the-bear” thinking. A combination of adverse developments and humiliations—the stalled “three-day war” in Ukraine, increasing economic and political isolation, and a series of setbacks in the Middle East—has rendered the Russian political elite particularly sensitive to any potential rejection of its bid by Kazakhstan. Furthermore, Kazakhstan has once again declined to join BRICS, a move that visibly displeased Moscow. At this juncture, it is worth recalling that on May 29, Vladimir Putin met with Kazakhstan’s first president, Nursultan Nazarbayev—an event that, according to some experts, may be interpreted as part of Russia’s exertion of political pressure on Kazakhstan’s current leadership in relation to the NPP project.

Despite Russia’s ongoing decline, Kazakhstan’s accommodation of Russia’s NPP-related interests is not unexpected: when cornered, the Russian regime is capable of undertaking retaliatory measures—such as provocations, subversion, or other forms of pressure—against the significantly smaller Kazakhstan. Conversely, experts have acknowledged that the selection of Rosatom may also possess an element of rationality. Analysts based in Kazakhstan emphasize Russia’s notable competitive advantages, which include cultural and linguistic proximity as well as logistical and technological compatibility. Moreover, Uzbekistan’s decision to finalize an agreement for the construction of a small NPP—an agreement that has since been upgraded in scope—may have further influenced Kazakhstan’s preference for Rosatom. Importantly, Rosatom is not subject to international sanctions, and the likelihood of its inclusion on such lists does not appear imminent.

That said, uncertainty remains regarding how Kazakhstan would respond should the corporation become subject to Western sanctions or if Russia’s macroeconomic conditions deteriorate further. Although Russia reportedly offers Kazakhstan favorable credit terms—details of which remain undisclosed—Kazakhstan-based experts highlight that Russia has previously failed to fulfill its commitments to finance energy infrastructure projects in three Kazakhstani cities. Moreover, citing the Belarusian case, anonymous Russian sources caution that partnering with Rosatom may ultimately impose a financial burden on Kazakhstan, despite the apparent economic appeal of the offer, and could also give rise to significant safety concerns over time.

Russia, however, will not be the sole dominant actor in Kazakhstan’s emerging nuclear energy sector. As previously noted, the local ruling elite regards China as a crucial component of the equation and, seemingly, as a counterbalancing force to Russia. For its part, Beijing will capitalize on several competitive advantages as it seeks to expand its influence within the country and its nuclear industry.

First, China is intensifying its cooperation with Kazakhstan in the field of water management, a domain of critical importance given the deteriorating conditions in the Caspian Sea. For example, during a recent meeting between Chinese and Kazakh water management experts, it was agreed that China Energy International Group would provide comprehensive training and expertise to its Kazakh counterparts. Additionally, it was disclosed at the meeting that the company is actively exploring the construction of a hydroelectric power facility in Kazakhstan and has expressed interest in participating in projects focused on the digitalization and automation of the country’s water management sector. Beyond current challenges with water supply, Kazakhstan’s ambitious plans to develop green hydrogen—which demands significant water resources—underscore water management as a strategic priority, and China is poised to expand its involvement in this area.

Second, China is rapidly enhancing its role in one of Kazakhstan’s most promising economic sectors—its uranium industry. Kazakhstan ranks first globally in uranium production and holds the second-largest uranium reserves after Australia, where production may decline due to growing public opposition. In light of ongoing geopolitical instability in Sub-Saharan Africa, Kazakhstan and Canada are likely to remain the two leading uranium producers, maintaining dominance in the global market. In this context, China could support Kazakhstan in addressing two major constraints limiting the full exploitation of its uranium resources: the absence of domestic enrichment capabilities and the continued reliance on Russia for uranium export logistics.

It is thus worth noting that Rosatom-affiliated Uranium One Group recently concluded an agreement with the Chinese firm SNURDC Astana Mining Company Limited, a subsidiary of the State Nuclear Uranium Resources Development Co., Ltd. Under this arrangement, the Russian party transferred its shares in uranium production sites located in Northern Kazakhstan (Northern Khorasan) to its Chinese counterpart. Although experts remain divided on China’s rationale for acquiring stakes in what is viewed as a relatively depleted and marginal uranium site, many interpret this as a strategic move to further expand China’s presence in Kazakhstan. In any case, an increasing foothold in the country’s uranium sector could serve as a compelling argument in China’s favor in its pursuit of the NPP project.

Finally, Kazakhstan must recognize the potential consequences it may face in the near future if it fails to deepen its cooperation with China in nuclear and other forms of clean energy. Many experts contend that China’s rapid shift toward renewable energy signals a troubling trend for its hydrocarbon suppliers, including Kazakhstan. At present, renewable sources account for 80 percent of China’s energy and electricity demand, while fossil fuels still constitute approximately 62 percent of its overall energy consumption. However, the proportion of non-renewable energy in China’s energy mix is expected to decline further. This trajectory suggests that Kazakhstan should proactively explore alternative areas of economic cooperation—such as critical metals, renewable energy, and nuclear power—with its principal economic partner, especially in light of Beijing’s strategic direction and the intensifying competition from regional actors like Uzbekistan, where China is also expanding its presence.

CONCLUSIONS: Kazakhstan’s decision to appoint Rosatom de facto as the lead entity in constructing its first nuclear power plant (NPP) reflects a blend of economic, geopolitical, and symbolic considerations. The second NPP will most likely be built by China, which is simultaneously consolidating its position in Kazakhstan’s water management and renewable energy sectors—domains poised to drive economic growth across Central Asia for decades to come. For Russia, weakened and humiliated in Ukraine and the Middle East, the opportunity to construct Kazakhstan’s inaugural NPP represents a highly symbolic gesture, acknowledging its ongoing role in bilateral relations. Kazakhstan’s choice to prioritize a Sino-Russian consortium—though the long-term stability of this partnership remains uncertain—for shaping the country’s nuclear future effectively establishes a duopoly in this sector of the national economy. This development may be unwelcome news for Western actors, whose companies are unlikely to secure significant contracts in Kazakhstan’s most strategic economic sectors.

AUTHOR'S BIO: Dr. Sergey Sukhankin is a Senior Fellow at the Jamestown Foundation and the Saratoga Foundation (both Washington DC) and a Fellow at the North American and Arctic Defence and Security Network (Canada). He teaches international business at MacEwan School of Business (Edmonton, Canada). Currently he is a postdoctoral fellow at the Canadian Maritime Security Network (CMSN).