Kazakhstan Weekly: Kazakhstan tallies CPC attack losses, accelerates privatization, advances nuclear plan

December 11, 2025 to December 17, 2025

This week's top 10 stories from Kazakhstan, selected from our daily intelligence briefs.

1. Energy Ministry Calculates Losses After Attack on Caspian Pipeline Consortium

Kazakhstan’s Energy Minister Yerlan Akkenzhenov said authorities are assessing damage after a November 29 drone attack disabled the Caspian Pipeline Consortium’s (CPC) ATK‑2 loading unit at Novorossiysk, temporarily disrupting the main route that handles roughly 80% of Kazakhstan’s oil exports (CPC capacity ~65 million tonnes/year). Repairs to ATK‑2 are expected December 11–13; the ministry has not disclosed full loss estimates or repair timelines but warns that any sustained interruption could materially affect export volumes and state revenues and will require insurance and contingency coordination.

In response, Kazakhstan is redirecting part of Kashagan crude—about 50,000 tonnes in December—away from CPC toward the Kazakhstan–China pipeline and other corridors, with NCOC allocations sending ~30,000 tonnes to CNPC and ~20,000 tonnes to Inpex. Officials say existing alternatives (Kazakhstan–China pipeline, Baku–Tbilisi–Ceyhan, Atyrau–Samara, rail and sea swaps) cannot fully substitute CPC capacity, implying short‑term logistical rebalancing, possible price differentials for Kazakh blends, and heightened focus on infrastructure security and redundancy. The foreign ministry has discussed the attacks with Ukraine; liability questions are being handled under consortium contracts.

Local Coverage: inform.kz, zakon.kz, egemen.kz

From daily briefs: 2025-12-11, 2025-12-16

2. Privatization Plan Expands to Energy, Industry, Transport and Telecom, Half of Assets to Be Sold by 2026

Prime Minister Olzhas Bektenov unveiled an expanded privatization program that for the first time includes assets in the fuel and energy complex, industrial enterprises, transport and telecommunications, with the government targeting the sale of half of the assets slated for privatization by 2026. Authorities say the accelerated timeline is intended to hasten the state’s withdrawal from commercial sectors and broaden the pipeline of offerings, signalling imminent auctions and tenders that could materially alter ownership structures in key segments of the economy.

The move to put core infrastructure and strategic industries on the block is designed to deepen market reforms and attract private capital, but raises questions about regulatory oversight and investor eligibility as network industries are exposed to private control. Details on specific assets, sale formats and participation rules were not disclosed in the briefing, leaving outcomes and sectoral impacts uncertain ahead of the 2026 milestone.

Local Coverage: inform.kz

From daily brief: 2025-12-18

3. Balkhash Nuclear Plant Framed as Strategic Shift for Energy Security and Economic Upgrade

Kazakh President Kassym-Jomart Tokayev framed the planned Balkhash Nuclear Power Plant—and a proposed second nuclear power plant—as a strategic pivot to strengthen national energy security and modernize the economy. Speaking to outline the government’s nuclear program, Tokayev said the Balkhash project will “boost Kazakhstan’s energy potential” and mark a transition to a higher-quality stage of development, and he called for investment in training a new generation of energy professionals and expanding scientific and industrial capabilities to support the sector’s growth (aikyn.kz).

For international energy and policy professionals, the announcement signals Kazakhstan’s intent to diversify its energy mix amid heightened global resource competition and to anchor long-term economic restructuring in large-scale, state-supported nuclear capacity. While Tokayev did not give specific commissioning dates or capacity figures in the summary, the clear policy emphasis is on building nuclear infrastructure plus human capital to underpin technological development and energy independence.

Local Coverage: zakon.kz, aikyn.kz, informburo.kz, inform.kz

From daily brief: 2025-12-18

4. Foreign Direct Investment Reaches $10.55 Billion in First Half as Investors Weigh Stability Risks

The country attracted $10.55 billion in foreign direct investment in H1 (first six months) of the year, signaling continued investor interest despite geopolitical uncertainty, according to inform.kz. The inflows reflect resilience in its resource base, strengthened infrastructure links to China and Central Asia, and pro‑investment reforms, sustaining momentum in energy, mining, logistics and manufacturing supply chains.

However, elevated regional tensions and global risk repricing could moderate FDI in H2, particularly for sectors dependent on cross‑border logistics and Western finance. International companies should expect opportunities but also heighten compliance, sanctions screening and diversify trade routings; authorities are likely to stress policy continuity and investment protection as competition for capital among emerging markets intensifies.

Local Coverage: inform.kz

From daily brief: 2025-12-16

5. Policy Push Aims to Double GDP by 2029 with Manufacturing, Digitalization, and Regional Rebalancing

Kazakhstan announced an ambitious policy push to double GDP to $450 billion by 2029, building on 6.3% growth in the first nine months and steady 4–6% annual expansion in manufacturing. The strategy shifts the economy from raw-material exports toward higher value-added production through a revamped investment model that guarantees energy supplies, improves infrastructure access, streamlines procedures, and deepens cooperation with Russia and China on nuclear, gas-chemical, and industrial-park projects.

Digital transformation—AI-enabled logistics, “smart” transport corridors and infrastructure digitalization—is highlighted as central to attracting long-term investment and improving supply-chain efficiency. Strong fiscal buffers (National Fund $64 billion; reserves $52.2 billion) provide stability, but officials emphasize the need to diversify non-oil revenues and reform fund management. Addressing persistent regional imbalances between oil-rich western regions and underdeveloped industrial areas, policymakers are promoting a unified “producer-to-shelf” distribution system and expanded industrial policy to boost processing, logistics and regional rebalancing.

Local Coverage: egemen.kz

From daily brief: 2025-12-13

6. Brussels Launches ‘Kazakhstan–EU Gateway’ Platform to Deepen Bilateral Engagement

Brussels on Tuesday launched the “Kazakhstan–EU Gateway,” a new platform intended to institutionalize and deepen EU–Kazakh engagement across trade, investment and policy coordination. Although organizers provided few operational details at launch, the Brussels-based initiative signals explicit EU-level backing and a drive to streamline connectivity with European stakeholders; it is positioned to become a single point of contact for businesses seeking market entry, regulatory clarification and support for sectoral projects in logistics, energy and digital services.

For international professionals the Gateway could simplify partnership-building and accelerate project pipelines, but key questions remain: governance arrangements, participating institutions, funding, and how the platform will mesh with existing frameworks such as the EU–Kazakhstan Enhanced Partnership and Cooperation Agreement and broader regional connectivity initiatives. Further announcements will be needed to assess timelines, measurable targets and specific programmatic priorities.

Local Coverage: inform.kz

From daily brief: 2025-12-11

7. Energy Overhaul Accelerates with Grid Upgrades, New Thermal Plants, and Renewables Push to 2035

Kazakhstan has launched a multi‑year power‑sector modernization led by President Kassym‑Jomart Tokayev that aims to add more than 26 GW of capacity by 2035 and upgrade at least 200 energy and utility assets while renewing 86,000 km of lines by 2030. The program — supported by a “Tariff in Exchange for Investment” mechanism that mobilized over 900 billion tenge of private capital — has already driven a 20% rise in capital spending on maintenance, reduced CHP equipment wear to 61%, removed nine heat and power assets from risk lists, replaced 323 km of heat pipes and cut emergency incidents by 25%. Output rose by 16 TWh over six years to a record 118 billion kWh, and system reliability improvements accompany near completion of the West Kazakhstan–Atyrau–Mangystau grid integration and planned full linkage to the national system.

Planned supply additions include new units at Ekibastuz GRES‑2, construction of GRES‑3, combined‑cycle gas plants in Kyzylorda and Turkistan beginning in 2025, and Almaty station upgrades by 2026 to reduce pollution. Renewables have attracted ~$2.5 billion in five years, bringing over 266 MW of new wind and solar (Karaganda, Ulytau, Kyzylorda, Mangystau) and lifting clean power to above 7% across 159 RE plants; a first auction for a gigawatt‑class wind farm with storage signals readiness for larger flexible capacity. The roadmap retains “clean coal” options for thermal assets and emphasizes energy independence as a national security priority.

Local Coverage: inform.kz, zakon.kz, aikyn.kz, dknews.kz, egemen.kz, malim.kz, informburo.kz

From daily briefs: 2025-12-16, 2025-12-18

8. Government Tightens Follow-Up on Audit Chamber Budget Recommendations with New Roadmap and Reporting Rules

The government has adopted new procedures to enforce recommendations from the Supreme Audit Chamber following its annual evaluations of the republican budget. Amendments to the rules for preparing and submitting the annual budget execution report introduce a mandatory Roadmap, drafted by the central ministry responsible for budget execution and submitted to the Supreme Audit Chamber for review within 10 working days; the Roadmap must set concrete actions and deadlines across long-, medium- and short-term horizons.

Quarterly reporting is now compulsory for all agencies responsible for specific budget items, with submissions due by the 5th day after each quarter; the central body will consolidate these reports and update the Government Office on implementation. The changes aim to standardize oversight, accelerate monitoring of compliance with audit recommendations, and strengthen transparency and fiscal discipline in budget execution.

Local Coverage: dknews.kz

From daily brief: 2025-12-16

9. Government Approves Trade Policy Concept to 2030, Prioritizing Digitalization, Exports, and Consumer Protection

On 27 November 2025 the cabinet approved a national trade policy concept through 2030 prioritizing digitalization, higher-value production and stronger consumer protection to modernize Kazakhstan’s trade sector. Trade employed over 1.5 million people in 2024 (16.6% of the workforce) across more than 806,000 enterprises (about one-third of firms), with five regional hubs—Almaty, Astana, Shymkent, Atyrau and Karaganda—accounting for 71.3% of trade volume (37.6 trillion tenge). The strategy emphasizes e‑commerce, exchange trading, product labeling and integrated state IT systems, plus a shift from “buy‑sell” to “produce‑sell” to boost processed exports and tighten quality/certification regimes.

The policy sets measurable KPIs for 2030: raise real trade growth to 110.2%, increase productivity to 171%, double capital investment to 2.7 trillion tenge, expand exchange trading to 27%, e‑commerce to 20%, modern retail to 72%, and lift processed exports to $52 billion while shrinking the shadow economy to 2.42%. President Kassym‑Jomart Tokayev and Trade Minister Arman Shakkaliyev frame the reforms as drivers of faster economic, revenue and employment growth if services and retail potential are fully utilized—signaling priority investment opportunities and regulatory tightening for international firms and investors.

Local Coverage: aikyn.kz

From daily brief: 2025-12-13

10. Presidential Decree Centralizes New Government IT on QazTech Platform, Imposes 2026 Moratorium

President Kassym-Jomart Tokayev has issued a decree requiring that, beginning 1 January 2026, all new information systems for state bodies and quasi-public sector entities in Kazakhstan be developed on the unified QazTech e‑government platform. The decree immediately imposes a moratorium on creating new digital systems outside QazTech effective from that 2026 date, directs the Government, central and local authorities and quasi‑state organizations to integrate future services into QazTech, and assigns oversight to the Presidential Administration.

The measure aims to standardize IT architectures, eliminate functional duplication and reduce public spending; exceptions where QazTech development is “objectively unfeasible” must be escalated to the Presidential Commission on the Introduction of Digitalization for review. The decree takes effect immediately, signaling a centralized, top‑down approach to Kazakhstan’s public sector digitalization and tightening control over future IT procurement and development.

Local Coverage: inform.kz, aikyn.kz, zakon.kz, egemen.kz, malim.kz, dknews.kz

From daily brief: 2025-12-11

About This Weekly Digest

The stories above represent the most significant developments from Kazakhstan this week, selected through our AI-powered analysis of hundreds of local news articles.

Stories are drawn from our daily intelligence briefs, which synthesize reporting from Kazakhstan's leading news sources to provide comprehensive situational awareness for international decision-makers.