Belgian Companies Eye Grain Processing Projects in Kazakhstan
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Belgian companies Maselis and Borlix NV are considering cooperation with Kazakhstan in deep grain processing and the production of food ingredients and animal feed, Kazakhstan’s Foreign Ministry said following a working visit by Kazakhstan’s Ambassador to Belgium Roman Vassilenko to the province of West Flanders.
During meetings with company executives, the sides discussed bringing modern processing technologies to Kazakhstan and potential joint investment projects in the agricultural sector.
According to the Kazakh side, Kazakhstan’s exports to Belgium rose by 48% in 2025 to $311.5 million. Flaxseed was the country’s main export commodity. Belgium remains the largest European market for Kazakh flaxseed, while Kazakhstan ranks as the European Union’s leading supplier of flaxseed.
Vassilenko also highlighted the potential of the Middle Corridor and the use of Antwerp-Bruges port infrastructure to increase exports of Kazakh agricultural products to the EU. During the visit, he toured the Zeebrugge port complex.
The ambassador also met with Blankenberge Mayor Björn Prasse. They discussed cooperation between the Belgian city and Kazakhstan’s tourist regions, including resort management, environmental projects, the development of yachting infrastructure and urban mobility.
The two sides also intend to develop direct ties between regions and municipalities in Kazakhstan and Belgium.
Belgian companies are being considered as potential partners ahead of the first state visit by Belgium’s King Philippe to Kazakhstan, scheduled for autumn 2026.
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Chinese cargo airline to launch flights via Astana
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Chinese cargo airline China Central Longhao plans to begin operating flights via Astana International Airport in September, the airport’s press service said.
The carrier plans to operate four flights a week using Boeing 747-400F freighter aircraft.
Representatives of the airport and the airline discussed cooperation under a programme for technical stops by cargo aircraft in Astana, as well as the further development of air freight services.
The airport expects the arrival of the new carrier to expand its cargo route network and strengthen Astana’s position as a transit hub connecting China, Central Asia and other international markets.
Direct flights from Aktau to Istanbul are also set to resume in October.
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Kazakhstan proposes tax breaks for digital assets and businesses
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Kazakhstan is proposing a temporary exemption from individual income tax for individuals earning income from digital asset transactions conducted through Kazakhstan-based providers. The Ministry of National Economy has submitted the relevant amendments to the Tax Code for public consultation.
Under the draft legislation, the exemption would apply from 1 January 2026 to 31 December 2028.
The amendments also propose changes for investors. In particular, they would introduce a separate taxation regime for Golden Visa holders and their family members and abolish a fee of 7,000 monthly calculation indices (MCI) for Astana International Financial Centre investors seeking a document confirming their status as Kazakhstan residents.
Investors could also be reimbursed for infrastructure development costs through tax payments.
For businesses, the proposals include exempting factoring and forfaiting transactions conducted by second-tier banks from value-added tax (VAT). Companies would also be allowed to deduct product labelling expenses at 150% of their actual costs.
The changes would also affect agricultural producers. An additional VAT credit of 80% is proposed to be gradually reduced and fully abolished by 2035.
For the oil industry, the amendments would clarify the method for determining the global oil price using a "Brent minus KEBCO discount" formula. They would also retain a transitional period for applying previously established reduced mineral extraction tax rates to the relevant oil fields.
Another amendment concerns the self-employed. Founders of limited liability partnerships and shareholders of joint-stock companies would no longer be eligible for the special tax regime for self-employed individuals.
The draft also proposes changes to tax administration, including rules governing electronic invoices, VAT credits and the taxation of non-residents.
The draft law has been published on Kazakhstan’s Open Legal Acts portal for public consultation.
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Kazakhstan to Modernize 14,500 Kilometers of Canals and Build 42 Reservoirs
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Kazakhstan is continuing to modernize its water infrastructure. By 2030, the country plans to build 42 new reservoirs, reconstruct 37 existing ones, modernize 14,500 kilometers of canals and digitize at least 3,500 kilometers of irrigation networks, the Ministry of Water Resources and Irrigation said.
New Water Code: 168 Water Conservation Plans Prepared
A new Water Code took effect in 2025, strengthening oversight of water use and introducing the concepts of "water security" and "environmental flow."
Large water users are required to introduce water reuse and recycling systems. A total of 168 related plans have already been prepared.
Agriculture accounts for about 60% of the country’s water consumption. In 2025, water-saving technologies were used on 543,500 hectares, saving about 874 million cubic meters of water. By 2030, Kazakhstan plans to expand the area to 1.3 million hectares and increase water savings to 2.2 billion cubic meters.
A total of 228 billion tenge has been allocated for the development of these technologies from 2026 through 2028. Farmers are reimbursed for up to 80% of their costs.
More than 1,000 inspections of water use were conducted in 2025 and 2026, resulting in fines exceeding 316 million tenge. Satellite monitoring identified another 472 violations, with fines totaling more than 206 million tenge.
Canal Modernization: Work Underway on More Than 4,600 Kilometers
Kazakhstan plans to modernize 14,500 kilometers of irrigation canals by 2030.
More than 1,400 kilometers were upgraded in 2024 and 2025, while work is underway on another 4,600 kilometers. In 2026, work is expected to be completed on 962 kilometers, improving water supplies to about 200,000 hectares of irrigated land.
Modernization of the K. Satpayev Canal is continuing. Kazakhstan also plans to reconstruct the D. Kunayev Greater Almaty Canal.
42 New Reservoirs to Be Built, 37 to Be Reconstructed
By 2030, Kazakhstan plans to build 42 new reservoirs and reconstruct 37 existing ones. Five facilities have already been upgraded.
The Karakuys and Baidibek Ata reservoirs are under construction in the Turkistan region. Once commissioned, they will provide additional storage capacity of about 69 million cubic meters of water.
Northern Aral Sea Volume Rises to 23.5 Cubic Kilometers
The volume of the Northern Aral Sea has increased from 18.4 cubic kilometers in 2023 to 23.5 cubic kilometers.
About 30 cubic kilometers of water flowed into Lake Balkhash over the past two years, helping stabilize its water level. The Kapshagay Reservoir has been filled to capacity for the third consecutive year.
More Than 3.3 Million Schoolchildren Taught to Conserve Water
Water conservation projects have reached more than 3.3 million schoolchildren and over 35,000 students.
As part of the Moldir Bulak campaign, 94 springs and 62 bodies of water were cleaned up and improved in 2025 and 2026. Participants collected about 300 metric tons of waste.
More Than 23,000 Water Bodies and Facilities Digitized
Data on more than 23,000 water bodies and facilities has been entered into the National Water Resources Information System, including 17,748 rivers, 3,148 lakes and 1,109 hydraulic structures.
Since the beginning of 2026, more than 26,800 water supply agreements have been signed through the digital system.
Automation is also being introduced across irrigation networks. Work has begun on 103 canals spanning 857 kilometers, while another 270 canals with a combined length of 1,184 kilometers are being converted to automated control.
2,700 Springs Added to Unified Database
Kazakhstan has re-established its national hydrogeological service, Kazhydrogeology.
More than 2,700 springs have already been added to a unified database, while another 711 potential water sources have been identified. A framework for the integrated use and management of groundwater for 2027-2040 is also being developed.
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Kazakhstan Signs Contract to Build Its First Nuclear Power Plant
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Kazakhstan has signed a contract for the engineering, procurement and construction of its first nuclear power plant, the country’s Atomic Energy Agency said.
The agreement was signed during the 11th Eastern Economic Forum in Vladivostok.
The contract was signed by Kazakhstan Nuclear Power Plants LLP and Atomstroyexport JSC, a subsidiary of Russia’s state nuclear corporation Rosatom.
The signing ceremony was attended by Almassadam Satkaliyev, chairman of Kazakhstan’s Atomic Energy Agency, and Rosatom Director General Alexey Likhachev.
The Atomic Energy Agency said the signing moves Kazakhstan’s first nuclear power plant project into the implementation phase.
Under an intergovernmental agreement dated May 28, 2026, the parties must complete the required procedures, including obtaining approval from the Kazakh government.
The agency said Kazakhstan’s need for reliable electricity would grow as its economy, industry, infrastructure, digitalization and artificial intelligence sectors develop. The nuclear power plant is expected to provide stable baseload generation for decades.
Particular emphasis will be placed on local content during construction. The project aims to involve as many Kazakh companies and specialists as possible and make use of domestically produced goods, works and services.
Construction of the plant is also expected to support the development of new industries and technologies and the training of specialists for the nuclear sector.
Construction of Kazakhstan’s first nuclear power plant is scheduled to begin in 2027. The Atomic Energy Agency has said the project will require more than 10,000 workers.
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Kazakhstan’s Trade With SCO Countries Exceeds $72 Billion
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Kazakhstan’s trade with Shanghai Cooperation Organization member states reached $72.6 billion in 2025, up from $67.7 billion a year earlier, the country’s Ministry of Trade and Integration said.
Kazakhstan’s exports to SCO countries totaled $30.7 billion, while imports stood at $41.8 billion.
China remains Kazakhstan’s largest trading partner within the organization, with bilateral trade reaching $34.2 billion in 2025. Russia ranked second at $27.4 billion, followed by Uzbekistan at $4.8 billion and Kyrgyzstan at $2.2 billion.
Kazakhstan’s main exports to SCO countries include uranium, copper ores and concentrates, crude oil, copper and copper cathodes, natural gas, wheat and ferroalloys.
Agricultural exports rose significantly in 2025. Animal feed exports increased 2.5 times to $614.9 million, while sunflower oil shipments climbed 62.4% to $633.7 million. Wheat exports rose 17.1% to $1.13 billion.
Exports of barley increased 22%, wheat flour 11.8% and flaxseed 72.9%.
Kazakhstan primarily imports passenger cars and car bodies, natural gas, petroleum products, gold, computer equipment, and spare parts for cars and tractors from SCO countries.
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Kazakhstan Offers to Host SCO Development Bank Headquarters
Kazakhstan is prepared to host the headquarters of the Shanghai Cooperation Organization Development Bank if all member states agree, President Kassym-Jomart Tokayev said at a meeting of the SCO Council of Heads of State in Bishkek.
Tokayev backed China’s initiative to establish the SCO Development Bank and proposed directing its resources primarily toward infrastructure, technology and industrial projects.
"If a consensus is reached among the member states, Kazakhstan could host the institution and its headquarters," Tokayev said.
He said trade among SCO countries was approaching $1 trillion, although the economic interconnectedness of member states had yet to reach its full potential.
Tokayev proposed creating a broad SCO trade and investment area with minimal barriers, digital procedures and stronger transport and logistics connectivity.
Kazakhstan also proposed introducing a system of pilot industrial consortia. The mechanism would allow individual countries to launch joint projects when ready, without waiting for every SCO member to participate. Successful projects could later be expanded across the organization.
Another proposal involved establishing SCO cross-border trade zones using existing border cooperation centers. Tokayev said this would allow member states to test simplified trade procedures, digital processes and modern payment and settlement mechanisms.
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Kazakhstan Proposes SCO Transport Strategy
Kazakh President Kassym-Jomart Tokayev proposed developing and adopting an SCO transport connectivity strategy through 2035 at a meeting of the Shanghai Cooperation Organization’s Council of Heads of State, the Akorda presidential press service said.
"We support the digitalization of customs procedures, mutual recognition of electronic documents, the use of green corridors and other modern mechanisms. An effective solution could be the creation of a unified SCO digital transit platform to ensure the seamless movement of goods from their point of origin to the final recipient," Tokayev said.
He said Kazakhstan attached great importance to connecting China’s Belt and Road Initiative, the Trans-Caspian International Transport Route, the North-South Corridor and emerging trade routes between Central and South Asia.
Tokayev also identified the development of a new technological model as another priority. He said the rapid advancement of artificial intelligence and digital technologies required SCO countries not only to adapt to change but also to develop forward-looking solutions.
"With their considerable scientific and innovative potential, SCO member states could move more quickly from exchanging experience to jointly developing technologies and strengthening expertise, gradually creating their own artificial intelligence ecosystem," Tokayev said.
He added that Kazakhstan supported broader international cooperation in this field.
Tokayev also highlighted the need to reform the Shanghai Cooperation Organization and proposed assigning the task to member states’ foreign ministries.
"In closing, I would like to reaffirm Kazakhstan’s readiness to make every effort to take our multifaceted partnership within the SCO to a qualitatively new level. There is no doubt that, through mutual trust and solidarity, we will reach even greater heights on the path of progress. Kazakhstan is ready to travel this path together with you," Tokayev said.
Several documents were signed following the SCO Council of Heads of State meeting in Bishkek.
It was previously reported that Kazakhstan was prepared to host the headquarters of the SCO Development Bank.
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SCO Countries Account for Around a Quarter of Global GDP
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