Russia loses projects in Central Asia

Russia's economic influence in Central Asia is faltering. A central foundation of its presence - the financing of major energy and infrastructure projects - appears to be becoming increasingly fragile. For years, the international energy sector was a reliable lever of Russian foreign economic policy. State-affiliated companies such as Rosatom or Inter RAO secured lucrative large-scale projects and thus political influence. However, this model is now clearly reaching its limits: Gaps in financing are slowing down projects - and opening the door for new players. The change is particularly visible in Kazakhstan. There, an energy project that originally had a Russian focus was awarded to the Chinese group Harbin Electric International. The decisive factor was not least the failed financing commitment from Moscow. The new contractor also offered significantly more favorable conditions - and undercut the original costs by several hundred million dollars. Russia also lost out on other projects. As early as 2025, the state-owned company Inter RAO had to hand over several power plant projects in Kazakhstan. The contracts also went to Chinese suppliers - a clear indication of the shifting balance of power in the region. Meanwhile, skepticism towards Russian partners is growing in Uzbekistan. The authorities there are now examining alternatives and have involved the French company Framatome in talks. The focus is on modern technologies and possible cooperation in the construction of nuclear power plants - an area that was previously considered the domain of Russian companies. The development points to a structural change: While Russia is struggling with financial bottlenecks, other international players are gaining influence. Central Asia is thus increasingly becoming the scene of economic competition in which the availability of capital is becoming the decisive factor. The post Russia loses projects in Central Asia appeared first on ostwirtschaft.de.