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Agriculture

Increased Cooperation Between Uzbekistan and Singapore

On January 15, an online meeting was held with the participation of the Minister of Agriculture of the Republic of Uzbekistan, Ibrahim Abdurahmanov; the governor of the Tashkent region, Zoir Mirzayev, and the representative of Wilmar International Company of Singapore, Charles Cheau. During the meeting, the parties discussed issues of expanding areas of cooperation between the two countries in the field of agriculture, including possibilities of further acceleration of previously implemented projects and cooperation agreements. While many achievements have been made in bilateral relations, it was noted that there remain opportunities for expanding practical cooperation. Uzbekistan's Minister of Agriculture noted that a donation system was established with Singapore several years ago in the field of agriculture, and that the focus of the current cooperation meeting was on active reforms to be implemented in the future, development of the value chain in agriculture, and the importance of the agro-food system. Wilmar Company was founded on April 1, 1991 in Singapore and is the leading agro-industrial corporation in Asia. The company has a high market capitalization on the Singapore Stock Exchange. From an operational perspective, the company has a strong position as an integrated agribusiness model covering the entire agricultural value chain. An agreement was signed as a result of the meeting by Uzbekistan's Ministry of Agriculture, the administration of its Tashkent region and the Wilmar International Company.

9 months ago

Mining

Development of Kyrgyzstan’s largest iron deposit begins

Kyrgyzstan's state enterprise Kyrgyzgeologiya will begin exploration work at the iron deposit "Zhetim Too" in the Naryn region. The country's Cabinet of Ministers granted the entity the right to use subsurface resources for geological exploration at the deposit. The development of the iron deposit was one of the election promises of the current President of the Kyrgyz Republic, Sadyr Japarov. In 2020, Japarov said he was considering paying off the state debt to China with raw materials from the deposit. "This is a project that will pull our economy out of the swamp," the future head of state had declared while campaigning before the presidential election. Geologists predict that the "Zhetim-Too" deposit could earn $200 million a year. But it's not only about earning and selling raw materials abroad. At the "People's Kurultay" (i.e., people's parliament), the President noted that at the moment, the Kyrgyz Republic spends millions of dollars a year to buy iron to build railroads, hydroelectric power plants and other structures in the country. "In the future, we intend to use our own iron ore deposits and build modern plants to process iron ore and manufacture products from it instead of buying iron from outside," Japarov said. It should be noted that earlier attempts to start work at the "Zhetim Too" deposit ended in a political scandal and high-profile dismissals of officials. At one time, various foreign mining companies worked at the deposit, which caused discontent among local residents. Rallies were repeatedly held in nearby villages. In 2012, the Kyrgyz authorities sued the Chinese company Mylin Resources for the license of the deposit. Since 2016, the license for exploration and development of the subsoil of "Zhetim Too" has belonged to the state. Kyrgyzstan's geologists have previously stated that the exploration of the deposit will take at least five years. After all, it is necessary to assess the reserves of the deposit and the depth of their occurrence, as well as to study the composition of the soil and what percentage of it contains metals. There are also issues of ecology, environmental protection and construction of necessary infrastructure. Additionally, relic forests of the Naryn Reserve are located near the deposit. "Zhetim Too" was discovered in 1956 at the junction of Naryn and Issyk-Kul oblasts of Kyrgyzstan. Iron reserves at the deposit were estimated from 3 to 10 billion tons. The Association of Mining Industries of Kyrgyzstan calls the site one of the largest iron ore deposits in the world. However, the deposit has been explored only superficially so far and requires additional exploration. The approximate cost of exploration is estimated at more than 20 million U.S. dollars.

9 months ago

Border disputes

Kyrgyzstan and Tajikistan continue to work on harmonizing state border

Topographic working groups of the two countries gathered in the city of Batken in the Batken region of Kyrgyzstan between January 10 and January 16, and agreed on another major 38.35-kilometer section their state borders, the press service of the Kyrgyzstan Cabinet of Ministers reports. "In accordance with the agreement reached in the period from January 10 to 16, 2024 in the city of Batken of Batken oblast of the Kyrgyz Republic held a meeting of topographic working groups and working groups on legal issues of the government delegations of the Kyrgyz Republic and the Republic of Tajikistan on delimitation and demarcation of the Kyrgyz-Tajik state border," reported Cabinet of Kyrgyzstan on its website. The Kyrgyz authorities note that the meeting was held in an atmosphere of friendship and mutual understanding, and a protocol was signed following the meeting. The parties will continue work on the description of the remaining areas at the next meeting, which will be held in Tajikistan. The previous meeting was also held on the territory of Tajikistan from December 17 to 23, 2023. At that time, almost 12 kilometers of the state border were agreed upon. It should be noted that as of today, Kyrgyzstan and Tajikistan have agreed on 90 percent of the territories of the state border, the total of which is 975 kilometers. Next year, the authorities of both countries plan to finalize the delimitation. Issues related to delineating a common border between the two countries arose after the collapse of the USSR, particularly with regards to lands rich in water resources, given that irrigation of agricultural lands and private plots is critical in this arid region. More than 30 years have passed since the collapse of USSR, and the parties still have not agreed on the disputed territories. This has caused periodic conflicts between the citizens of border villages and residents of enclaves and border guards of Kyrgyzstan and Tajikistan, including the use of heavy weapons. The last such conflict took place on the territory of Batken oblast of Kyrgyzstan and Sughd oblast of Tajikistan in September 2022, where hundreds died deaths on both sides and civilian infrastructure was destroyed. Since May 2021, land and air communication between the countries remains closed. The presidents of the Kyrgyz Republic and Tajikistan have repeatedly discussed the delimitation and demarcation of the state border, and have decided to put an end to this ongoing issue after the above-mentioned most recent conflict. Since then, meetings of topographic groups have been held on a regular basis. The situation on the disputed territories is also monitored by the Collective Security Treaty Organization (CSTO). Both countries are members of the CSTO.

9 months ago

Kleptocracy

Nephew of ex-President Nazarbayev to be Tried

The criminal case against Samat Abish, nephew of the former President of Kazakhstan, Nursultan Nazarbayev, is set to proceed to trial in Astana. The investigation conducted by the General Prosecutor's Office has concluded, and the case has been transferred to the courts. This will be the first time a relative of Nazarbayev has been tried on charges related to the violent events of January 2022. Details of the pre-trial investigation will not be made available to the public, as the case involves state secrets. Abish is being charged under Article 362 (Part 4) of the Criminal Code, "Exceeding official powers," which could result in up to five years imprisonment and the confiscation of property if he is convicted. Abish, aged 45, is the son of Satybaldy Abishevich Nazarbayev, the younger brother of the former president who died in a car accident in 1981. Abish took his surname in honor of his grandfather. Abish lost his position as the First Deputy Chairman of the National Security Committee of Kazakhstan on January 5th 2022, amidst riots across the country. Alongside him, the head of the KNB, Karim Massimov, and the Prime Minister, Askar Mamin, were also dismissed. Two days later, Abish was detained in Almaty and charged in connection with the January events. Investigators attributed primary responsibility for the tumultuous events of early 2022 to Karim Massimov, Abish's direct supervisor, and his three deputies. President Tokayev stated during an extraordinary session of the CSTO Collective Security Council on January 10th 2023, that the events were an attempt to seize power by high-ranking officials. Abish's sibling, Kairat Satybaldy, was convicted on corruption charges last year for embezzling tens of millions of U.S. dollars.

9 months ago

Foreign debt

Kazakhstan’s Foreign Debt Inches Upwards

The external debt of Kazakhstan has reached $161.9 billion, an increase of $1.3 billion over the past year to October 2023, according to the National Bank of Kazakhstan. The main creditors of Kazakhstan are the Netherlands ($42.5 billion), Great Britain ($14 billion), international organizations ($13 billion), Russia ($12.5 billion), the USA ($11.3 billion), France ($11.2 billion), Bermuda ($9.4 billion), and China ($9.2 billion). Considering the structure of Kazakhstan's external debt as a whole, the bulk of loans is occupied by inter-company debt ($92.2 billion), obligations of other sectors ($44.4 billion), Government bodies ($12.5 billion), the banking sector ($10.6 billion), and the National Bank ($2.1 billion). According to the latest data, the volume of total external debt of all countries in the world by the end of 2022 reached a record $92 trillion. As of April of last year, the countries with the highest national debt in the world were considered to be the U.S.A. ($29.46 trillion), Japan ($13.05 trillion), China ($10.12 trillion), France ($3.3 trillion), and Italy ($3.17 trillion). In terms of its debt to GDP ratio, Kazakhstan ranks in a respectable 148th position with a debt to GDP ratio of 27.4% as compares to first place Japan, which has a debt to GDP ratio of 262%. Earlier, the Ministry of the National Economy of Kazakhstan proposed setting a limit on the external debt for 2024 for Samruk-Kazyna and the national holding, Baiterek - the two companies which most often borrow from other countries. This limit would be in the amount of almost $12.5 billion for Samruk-Kazyna, and just over $5 billion for Baiterek. In spring of the last year, President Tokayev declared that for Kazakhstan to reach the category of countries with high level incomes, the economy of the country would need to grow 6% annually. As of November of last year, this indicator was at 4.9%.

9 months ago