European agricultural producers eyeing outposts in Kazakhstan

Eurasianet Carly Brant, Sean Kearin Mar 2, 2026 -China-Central Asia Monitor: Feb. 20-28, 2026. 

European agricultural products companies are reportedly considering setting up operations in Kazakhstan to facilitate more efficient trade with China. The fastest land transit routes for shipping European agricultural products to China have been closed off in recent years, due to sanctions imposed on Russia following its unprovoked invasion of Ukraine.

Some European producers now see a presence in Kazakhstan as a potential work-around. “European agricultural companies are ready to place their production in Kazakhstan, because we have large land: they are ready to produce their seeds, their products in Kazakhstan,” Baizhan Ualkhanov, the head of the Kazakh Potato and Vegetable Growers Association, told a local media outlet. Ualkhanov did not name any specific companies as ready to invest in Kazakhstan. He indicated, however, that a Hungarian entity was exploring the possibility of producing fodder crops, such as sorghum and alfalfa, in the country. Two German entities are reportedly considering producing wheat and barley, while a Turkish company may launch an oil seed production venture, he added. 

Meanwhile, official Kazakh data shows that China is a fickle market for Kazakh agricultural exports, according to a report distributed by the APK Inform news agency. On the positive side, Kazakhstan recorded a 56 percent increase in sunflower oil exports to China during the last four months of 2025, compared to the same period the previous year. On the negative side, China has stopped accepting railcars carrying Kazakh rapeseed oil, alleging GMO contamination. Kazakhstan’s National Association of Oilseed Processors has sought the intervention of government officials in Astana, asserting that tests conducted by Kazakh laboratories show no contamination. So far, however, officials have not responded to the producers’ request. Kazakhstan’s National Exporters Association KazGrain is also seeking the government’s help in boosting grain exports to China, reports Eldala.kz. 

More from Kazakhstan

Just over 2 million Chinese tourists have visited Kazakhstan since Astana introduced visa-free travel for Chinese citizens in July 2022. The influx has generated revenues exceeding $859 million, representatives of the Ministry of Tourism told local media. In 2023, the number of Chinese visitors in Kazakhstan totaled 367,000. Numbers have risen steadily since then. Neighboring Uzbekistan also has reported explosive growth in Chinese tourism numbers since the introduction of visa-free travel in 2025. Meanwhile, Chinese investors are involved in three of Kazakhstan's largest tourism investment projects, including the Mandarin Oriental Astana hotel (300 billion tenge), the Zhibek Zholy entertainment center on the shores of Lake Kapchagay near Almaty (53.3 billion tenge), and the Hilton Hotel in Shymkent (30 billion tenge), a top Tourism Ministry official told reporters.

The Ulytau region in central Kazakhstan is seeking a new investor to build a 480 billion tenge ($965 million) oil refinery. Two Chinese entities, the Zhong Mao Group and CITIC Construction, pulled out of the project after the Kazakh government said it was unable to commit sufficient crude volumes to the refinery, LS reports.

Just over 85,400 Chinese autos were sold in Kazakhstan in 2025, accounting for a 38.4 percent share of all car sales. Chinese sales are expected to reach 98,000 vehicles, or an estimated market share of 42 percent, in 2026, according to a presentation hosted by the Kazakhstan Automobile Union, the country’s largest auto industry organization.

The National Olympic Committees of Kazakhstan and China, meeting in Milan on the sidelines of the Winter Olympics, reportedly agreed to hold joint training camps in boxing and diving, reports DKNews.kz, commenting that “sports diplomacy is becoming part of geopolitics.”

International flights connecting Kazakhstan and China are expanding. Air Astana is planning to launch flights from Almaty to Shanghai (starting March 29) and Astana to Guangzhou (starting June 2).  FlyArystan expects to start flights from Almaty to Xi'an (pending slot approval) and from Aktau to Urumqi (in June), according to Kazakhstan’s Ministry of Transport.

Kyrgyzstan 

The China National Heavy Machinery Corporation has received a contract to reconstruct Kyrgyzstan’s Lebedinovskaya Hydroelectric Power Plant, which is expected to boost its annual generating capacity from 7.6 to 10 megawatts, according to Knews.kg. Earlier this year, Chinese entities obtained a contract to build several small hydroelectric plants worth $300 million and started an upgrade of the Uch-Kurgan hydroelectric power plant.

Former Kyrgyz prime minister Feliks Kulov has called on the Kyrgyz government to consider financing its portion (24.5 percent) of the China-Kyrgyzstan-Uzbekistan railway by selling shares to the public, thus reducing external debt and providing a lucrative investment opportunity for citizens. He asserted that if the railway meets projected tonnage targets, “the annual [dividend] yield could be 15-25 percent.” The overall cost of the railway project is estimated at $4.7 billion. The route is expected to become operational within four to six years. “The main idea [is] not just to build a railroad, but to ensure that the people become its co-owners, so that dividends are received not only by the budget but also by each family,” Kulov wrote.

Uzbekistan 

Tashkent will host the Uzbekistan-China Business Forum on March 3. The gathering seeks to promote  bilateral trade and investment.

Turkmenistan

The Oguzrobot school team from Turkmenistan qualified for a spot in the international robotics championship in China after participating in the regional stage of the FIRST Tech Challenge (FTC) robotics championship in Astana.