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Region: Economics and Sociology

2025 year, number 1

ECONOMIC RELATIONS BETWEEN CENTRAL ASIA AND RUSSIA: CURRENT CHALLENGES

Zh.A. Kulekeev1,2, E.A. Pak3
1KMG Engineering LLP, Astana, Kazakhstan
2Applied Economics Research Centre LLP, Astana, Kazakhstan
3National Research University Higher School of Economics, Moscow, Russia
Keywords: Central Asia, Russia, integration, geopolitics, economic interaction, foreign trade

Abstract

Central Asia, as defined by most international organizations, comprises five independent states: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Russia has historically been an important partner for this region, with deep-rooted foundations for interaction. However, despite the economic rationale for closer integration, the relationship remains fragmented. Over the 30 years of independence, only partial integration mechanisms have been established with no signs of a coherent economic space due to considerable obstacles to integration. This article analyzes the economies of Central Asian countries and the challenges facing the region that hinder interactions. The obstacles include disparities in economic development levels among the states, the instability of their political systems in response to external and internal shocks, and the incomplete nature of reform processes. These challenges are further compounded by rising geopolitical tensions in neighboring areas. The study evaluates the outcomes of cooperation between Central Asian countries and Russia up to 2015 and examines the reforms initiated since 2016 that have contributed to strengthening interactions. It highlights the need for a country capable of systematically leading integration efforts in the region at this modern stage. Based on an analysis of internal and external barriers to economic rapprochement, we identify Kazakhstan as the most suitable candidate to assume this role.