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Large-Scale Cyberattacks on Kazakhstan Continue

Leaks of millions of citizens data, attacks by hackers, hourly calls from fraudsters – these are just some of the threats which have faced Kazakhstan over the past few months. Following the resignation – or dismissal depending on which source one believes – of the head of the Ministry of Digital Development, Innovation and the Aerospace Industry, Bagdat Mussin, many wonder whether the authorities will be able to secure Kazakhstan’s internet. The Times of Central Asia investigates.

On May 9, AlmaTV, Kazakhstan’s largest internet and cable TV provider, suffered an attack by hackers which caused disruption to its’ services. “According to data received… the cause of the disruption was a large-scale and multi-level cyberattack,” AlmaTV stated. The outage solely affected internet broadcasting, whilst analog, digital and satellite TV services were working normally.

According to numerous sources, the broadcast of the Victory Day military parade in Moscow was interrupted by footage of an anti-Russian nature, alleged torture, and other explicit content. Officials in Kazakhstan have yet to commented.

This is not the first scandal in the sphere of cybersecurity. In March of this year, the State Technical Service JSC discovered that personal data pertaining to over two million clients of the microfinance organization, zaimer.kz (MFO Robocash.kz LLP), had been compromised. Warnings about the leak were also received by people who had never used the company’s services. In the opinion of many analysts, the reaction of the Ministry of Digital Development, Innovations and the Aerospace Industry was extremely late in coming, extremely vague, and in no way reassured Kazakhstanis about the safety of their private information. Mussin was accused of making excuses, poor-quality communication, failing to answer questions, and “babble talk.”

In addition, back in February, foreign media, in particular CyberNews, reported that in leaked Chinese Government documents, data belonging to residents of Kazakhstan was found. The documents were related to spyware developed by the Chinese information security company, iSoon, and targeted social media platforms, telecommunications companies, and other such organizations.

Allegedly, unknown assailants have posted a huge number of PRC government documents on GitHub. The information circulated also revealed sensitive data pertaining to several telecom operators in Kazakhstan.

Also in February, a shocking statement by the Center for Analysis and Investigation of Cyberattacks (TSARKA) appeared, according to which a Chinese hacker group controlled the critical facets within Kazakhstan’s IT infrastructure for almost two years. “On February 16, 2024, unknown persons published on the GitHub resource a leak of secret data from the Chinese company iSoon (aka Anxun), one of the contractors of the Chinese Ministry of Public Security (MPS). It is reported to be associated with Chengdu 404, a structure controlled by Chinese cyber intelligence known as APT41,” TSARKA said.

“The attackers’ goal was both general information, such as databases, and targeted information of specific individuals: control of correspondence, calls and movement. Data analysis showed that the volume of stolen information is measured in terabytes.”

The hackers managed to gain control over the event logs, call durations, IMEIs of devices, and call billing details of the operators. Additionally, they exposed user data from local internet providers IDNET and IDTV, alongside information from the Unified Savings Pension Fund and Air Astana.

“This is just the tip of the iceberg,” TSARKA stated. “No one knows how many undetected hackers and leaks of our data there are.” The Ministry of Digital Development said the National Security Committee has now joined the probe.

Stories about the leaks of personal information of can be found on news feeds almost daily, which causes justifiable indignation among citizens, Majilis Deputy, Ekaterina Smyshlyayeva commented. “It is alarming how the quality of information, and the degree of confidentiality is changing. If earlier it was about addresses and phone numbers, today, medical data, banking information, i.e., information that is secret are leaked using the same schemes. At the same time, the legislative basis of information protection in our country complies with international standards,” Smyshlyayeva explained to a parliamentary inquiry.

“Given the introduction of state control, the volume of work will increase many times over. At the same time, the participation of state bodies in the protection of their own data and even secrets cannot be called fully-fledged. This is a serious problem, because correct laws with weak implementation do not guarantee protection, and their presence creates a dangerous illusion of order,” the deputy added. Smyshlyayeva proposed that the number of staff working in authorized bodies for personal data protection be increased, or services be redistributed, possibly with their transfer to a competitive environment to accredited organizations in the field of information security.

Following Mussin’s ousting, on May 6 Zhaslan Madiyev was named as the new Minister of Digital Development, Innovation and the Aerospace Industry. However, threats from foreign fraudsters and hackers continue to multiply at an alarming rate. So far, only one major operation to catch fraudsters has been carried out, and law enforcers simply do not have time to block calls. Thus, the number of threats in Kazakhstan’s information sphere continue to grow.

As previously reported by TCA, over an eight-day period in April 2024 alone, a deluge of stories containing rumors about Kazakhstan’s foreign policy permeated regional media. These included accounts claiming that the U.S. was hyping an alleged voice recording of a Russian official claiming that Kazakhstan is Russia’s next target; that Kazakhstan is in covert discussions to join NATO; and that Kazakhstan is seeking security guarantees from China to counterbalance the Russian threat. As noted in a U.S. Department of Homeland Security Threat Assessment, a story claiming that the United States is “running a lab in Kazakhstan to create biological weapons for use against China” has also been circulating for some time.

 

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Kazakhstan Launches Battle against Counterfeit Medicines

From 1 July 1, 2024, in an effort to rid the country of counterfeit drugs flooding the local market,  labeling of all medicines in Kazakhstan will become mandatory.

According to the World Health Organization (WHO), every tenth package of medicines distributed in developing countries is counterfeit, and in Kazakhstan, exceeds 10% of the volume of imported medicines. This is not only an economic issue, but one that poses a direct  threat to people’s lives and the health of the nation.  Under the new initiative, all drugs will be assigned an electronic passport detailing both its source and  path to the consumer.

The Ministry of Health of the Republic of Kazakhstan stated that the key aim of the project is to eradicate illegal trade in medicines, including those used within the state’s medical programs and mandatory social health insurance.

Confident that mandatory labeling will prove effective in dealing with gray imports in the pharmaceutical market,  economist Andrei Chebotarev remarked, “When the manufacturer’s goods are labeled, you can trace their  route all the way to your home medicine cabinet. Everyone will know, for example,  where the pills were produced and how they were imported into the country. At present, there is no  guarantee that  goods are genuine. Where was this medicine produced? In India, in Germany? It is almost impossible to check the source.” In short, he continued, labeling is the surest way of “letting the cat out of the bag.”

Another positive impact of the introduction of labeling concerns  an increase in tax revenues and customs duties. Pharmacies in Kazakhstan already sell drugs labeled with the DataMatrix code. Specialists believe that the pharmaceutical industry is ready to exit the shadow turnover.

During the first two months of 2024, almost 5,000 tons of various drugs worth $275.7 million, were imported by Kazakhstan.

 

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Kazakhstan Secures Almost Billion Cubic Meters of Irrigation Water from Uzbekistan

Kazakhstan is set to receive 922 million cubic meters of water from Uzbekistan via the Dostyk interstate canal during this year’s irrigation season.

According to a report issued by the Kazakh Ministry of Water Resources and Irrigation on 13 May, the matter was determined in an Agreement by the Interstate Water Coordination Commission of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

In addition, the parties formally approved the joint operation of the Naryn-Syr Darya cascade of reservoirs scheduled until 30 September.

It was announced that the Shardara reservoir in the Turkestan region of southern Kazakhstan currently holds 4.8 billion cubic meters of water. The Toktogul reservoir on the Naryn river in upstream Kyrgyzstan, which releases water for irrigating fields in the south, has so far amassed 8 billion cubic meters of water.

During the meeting, a draft agreement was also created ‘On the creation of a mechanism for water and energy cooperation between the countries of Central Asia.’

Kazakhstan’s Minister of Water Resources and Irrigation Nurzhan Nurzhigitov commented, “Our priority now, is to collect and send flood water to the Caspian Sea, Lake Balkhash, Kamysh-Samar lakes, and from the Ulytau region to lakes in the Kyzylorda region. But it is also important to provide water to the southern regions of Kazakhstan. And in this matter, water diplomacy is very important.”

 

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Launch of Flights Between Almaty and Nukus

From 1 June, Uzbekistan Airways will begin operating regular flights between Almaty in Kazakhstan and Nukus, the main city of Uzbekistan’s north-western Karakalpak Autonomous Region.

Flights on a 174-seat A320 aircraft, will operate twice a week, on Wednesdays and Saturdays.

In welcoming the move, the Ministry of Transport of Kazakhstan said that the new air route would greatly enhance the development of trade, economic and business cooperation between Kazakhstan and Uzbekistan.

The introduction of the flights will also benefit tourism, making it easier and quicker to visit the region’s renowned Savitsky Museum, home to one of the world’s best collections of Soviet art; the Muynak Ship Cemetery on the fast-disappearing Aral Sea, and the ancient city of Mizdakhan.

The total number of international flights from Kazakhstan now stands at 567 per week on 121 air routes, including direct flights to 28 countries.

 

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Uzbekistan Set to Increase Coal Production

On 13 May, Uzbekistan President Shavkat Mirziyoyev reported on government plans to increase the country’s coal production.

The country’s coal reserves currently amount to almost 2 billion tons, and production continues to grow.

In 2023, Uzbekistan produced 6.550 million tons of coal compared to less than 4 million tons in 2016. The target this year, is to increase coal production to 8 million tons, and by 2025, up to 10 million tons.

As a result of an earlier drive by the government to attract investment in the industry from the private sector,  369 thousand tons of coal were produced in 2023 and this year, is expected to rise to 900 thousand tons.

Geological exploration is currently underway at new coal deposits in the regions of Surkhandarya, Kashkadarya and Tashkent, and according to the report, coal production in these areas should begin next year.

 

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Uzbekistan to Create IT Towns Across its Regions

On May 13, Uzbekistan President Shavkat Mirziyoyev conducted a government meeting on measures to develop digital technologies and expand IT training for young people across the country.

In recent years, Uzbekistan’s IT sector has undergone rapid growth and compared to the 147 companies registered in 2017, the country now has close to 2,000.

The number of specialist employees has likewise increased and today some 30,000 people work in high-paid company jobs and a further 70,000 young people are independently engaged in the sector.

During the first quarter of this year alone, services in the sector increased by 20 percent, exports amounted to $200 million, and 5,000 new jobs were created.

Home to 80 percent of the country’s IT specialists, Tashkent represents the hub of Uzbekistan’s IT services and exports.

To redress the balance through the development of the IT sector further afield, the government now plans to create IT towns in fifteen of the country’s regions and in the city of Khanabad.

Once established, the IT towns will enable some 10,000 young people per year to study, free of charge, information technologies, foreign languages, and other professions in high demand.

Hailing the initiative, the president emphasized that the key aim of the IT towns is to “give young people wings and train them in professions fit for the modern world.”

 

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