The failure of regionalism in Central Asia is a puzzle. Whereas almost all world regions have seen a rise of regional organisations since the end of the Cold War, attempts to establish durable regional cooperation among Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan proofed unsuccessful. Although some of the Central Asian countries participate in wider regional organisations like the Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organisation (SCO), the genuine Central Asian Cooperation Organisation (CACO) was dissolved in 2005. Given the cultural, economic and political similarities between the five Central Asian countries, this lack of a regional organisation is surprising. In contrast to previous work, this paper argues that the failure of regionalism in Central Asia is not so much due to domestic political factors, but more to the extra-regional economic dependence of the regional economies and the impact of external powers within Central Asia. Challenged by the rise of China, Russia uses the EAEU in order to preserve its hegemonic influence over the former Soviet Republics. By joining the Russian dominated EAEU, Central Asia's regional power Kazakhstan enjoys economic benefits which outweigh the potential gains of Central Asian cooperation within CACO by far. Consequently, Kazakhstan follows its extra-regional interests in closer cooperation with Russia at the cost of regional cooperation with its Central Asian neighbours. As a result, the Central Asian countries are unable to build up a unified regional block in relation to extra-regional powers like China or Russia.