• KGS/USD = 0.01188 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.09382 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01188 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.09382 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01188 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.09382 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01188 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.09382 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01188 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.09382 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01188 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.09382 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01188 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.09382 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01188 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.09382 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
10 September 2024

Our People > Yevgeny Rakhimzhanov

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Yevgeny Rakhimzhanov

Journalist

Yevgeny Rakhimzhanov is a journalist from Kazakhstan who lives in Almaty. He has worked in leading national media and headed several national media projects. His articles have appeared in a plethora of publications both at home and abroad.

Articles

Empowering Kazakhstan’s Future: Navigating Diplomatic, Energy, and Geopolitical Challenges in the Nuclear Power Referendum

Never short of diplomatic acumen, on September 2, President Kassym-Jomart Tokayev signed a decree on holding a referendum on the construction of a nuclear power plant (NPP) in Kazakhstan. Tokayev’s goal is to ensure that arguments for nuclear energy are compelling and to involve citizens, scientists, and government officials in the decision-making process. However, it's crucial that the public are fully informed about these plans as Kazakhstan finalizes the first stage of its new nuclear development. With demand for electricity soaring, it can be argued that the case for the NPP is compelling. Officials forecast that electricity deficits are set to worsen, leading to a reliance on imports, such as was the case in the 1990s. In the first three months of 2024 alone, tariffs rose by 26%. Electricity in Kazakhstan is currently generated by 222 power plants under various forms of ownership, with 84% coming from fossil fuels, hydropower accounting for 12%, and less than 2% coming from solar and wind installations as of 2019. Renewables had expanded to 5.92% by 2023, but the deficit continues to grow.   Old-Timers and Newcomers On October 6 of this year, the Kazakhstani people will give the final answer in a referendum on whether nuclear power will become a component of their everyday lives or whether nuclear-phobia, connecting both the memory of atomic testing at Semipalatinsk and persistent distrust in the ability of officials to build something grandiose without embezzlement, will prevail. The example of the LRT (the project for elevated light-rail transportation in Astana, which was to be implemented back in 2013) stands as a stark monument to corruption which has even penetrated the cultural code of today's youth. One of the first episodes of a then-popular show hosted by politician and businessman, Bulat Abilov, was devoted to nuclear energy and the need to build nuclear power plants. Abilov's inspiration for this topic was Mukhtar Dzhakishev. The former Head of Kazatomprom and Deputy Minister of Energy and Mineral Resources, on November 10, 2009, Dzhakishev was charged with the theft of Kazatomprom property and the receipt of bribes, and was sentenced to fourteen years imprisonment. Subsequently found guilty on separate charges related to embezzlement, fraud, involvement in organized crime and the abuse of power, he was sentenced to a further ten years to run concurrent to his prior sentence. Dzhakishev was released in March 2020, but this episode has led neither man to change their position - nuclear power plants are the best thing for Kazakhstan in light of coming energy shortfalls. Agitators for the NPP, who also include the General Director of Kazakhstan Nuclear Power Plants JSC, Timur Zhantikin, and specialists from the Institute of Nuclear Physics of the Ministry of Energy, have, however, encountered vociferous opposition. Some still oppose the NPP, such as ecologist Mels Yeleusizov. The arguments among those resistant to construction of the NPP have long remained unchanged, with seismic hazards, radiophobia, and corruption at the forefront. The pressure on emotions has also remained unwavering, with slogans such...

5 days ago

Who Will Benefit if Kazakhstan Refuses To Build Nuclear Power Plants?

Kazakhstan is facing a growing energy deficit while having large reserves of uranium which would allow the country to develop its nuclear power industry. However, so far, uranium mined in the country is used solely for export, and every year difficulties with supply chains only increase. All these problems can be solved in one elegant way, but this solution is what a part of the Kazakhstani public actively opposes.   Difficulties with production and supplies Kazakhstan ranks second in the world in terms of proven reserves of natural uranium. About 14% of the world's proven reserves are concentrated in the country's subsoil. According to estimates, the country's explored reserves contain more than 700,000 tons of uranium. In 2009, Kazakhstan became the world's largest uranium producer and continues to maintain its leading position in the global market, producing approximately 40% of the world's uranium. In 2021, uranium production in Kazakhstan amounted to 21,800 tons, but by 2023 this had decreased to 21,112 tons. Moreover, due to difficulties related to the availability of sulfuric acid, the national company Kazatomprom reduced production plans for 2024. According to the initial plan, between 25,000 and 25,500 tons were to be produced; now, the plan is to produce 21,000 to 22,500 tons. Kazatomprom has also stated that if limited access to sulfuric acid continues through 2024 and the company fails to reduce the construction backlog at new sites, it could have a negative impact on production plans for 2025. Uranium mining in Kazakhstan is carried out solely by in-situ leaching, the most environmentally safe and lowest-cost method available. The Russia-Ukraine conflict could not help but affect this area of Kazakhstan's exports. This year, it became known that Kazakhstan is working on diversifying its uranium export routes, bypassing Russia. This is stated in the report on implementing the concept of development of Kazakhstan's fuel and energy complex for 2023. As part of this, Kazatomprom is working on an agreement with the Chinese companies CNUS, CNEIC, and CNNC to provide uranium transit services through China. Kazakhstan currently transports uranium products to customers in North America and Europe through the port of St. Petersburg. An alternative way is to use the Trans-Caspian international transportation route, with shipments through the ports of Aktau (Kazakhstan), Alyat (Azerbaijan), and Poti (Georgia).   Nuclear deadlock Obviously, some of the concerns of Kazakhstan's leadership and Kazatomprom regarding the sale of uranium products could be alleviated by developing the country's own nuclear industry, meaning that uranium mined in the country would feed its own nuclear power plants. Talks about the need to build nuclear plants in the country have regularly been raised since the beginning of the 2000s. Kazakhstani nuclear physicists and nuclear specialists, with the persistence of a Don Quixote have periodically rush to attack the windmills of Kazakhstani radio-phobia, which, however, did not arise without reason. The Semipalatinsk Nuclear Test Site (SNTS) and the Chernobyl disaster are two significant elements of this phobia. In the early 1990s, when the SNTP was closed, the...

2 weeks ago

Will Direct Flights from Kazakhstan to the U.S. Become a Reality?

Kazakhstan and Uzbekistan spent the first thirty years of independence embroiled in rivalries rooted in the Soviet-era. However, the two countries have since moved towards cooperation, and both Tashkent and Astana have tasted success. One area in which Uzbekistan has far surpassed Kazakhstan in direct air routes to key countries. From Tashkent, one can even fly to New York, which is still a dream for Kazakhstanis who want to reach the U.S. via direct flights. As previously reported by TCA, however, at the end of July, the authorities in Kazakhstan stated that the first B787 “Dreamliner” will be delivered in late 2025, bringing Astana’s long-held goal of direct flights to the United States by the end of 2025 a step closer. But will this dream become a reality? In January 2022, the Parliament of Kazakhstan adopted the draft law "On ratification of the agreement between the Government of the Republic of Kazakhstan and the Government of the United States of America on Air Transport". The agreement itself was signed back on December 30, 2019,  when it referenced the flight route Nur-Sultan - New York. Then Minister of Industry and Infrastructure Development (MIID), Kairbek Uskenbayev said that a joint commission of representatives of American airlines had reviewed the airports of the capital and Almaty, and concluded that they met international standards. Earlier, the MIID had specified that under the "Open Skies" regime, the fifth freedom of the air would allow Kazakhstan's airlines to bring passengers to the United States, then pick up passengers there and transport them to a third country, that is, to fly in transit through the United States. Concerning cargo, the agreement provided a seventh degree of freedom, which also allows a Kazakh airline to transport cargo from the U.S. to Canada or the United Kingdom without additional authorization. U.S. companies in Kazakhstan would have similar rights. At a meeting held in 2022, which was attended by the Director General of the Aviation Administration, Catalin Radu, and the Minister of Industry and Infrastructural Development of Kazakhstan, Kairbek Uskenbayev, it was stated that work has been underway since the beginning of 2022 to increase technical capacity in preparation for the upcoming FAA International Aviation Safety Assessment (IASA) into launching direct flights between Kazakhstan and the United States. According to Talgat Lastayev, the Civil Aviation Committee Chairman, Kazakhstan had raised its flight safety assurance level to 84%, 15% above the global average. Plans for the capital's airport changed, however. On the sidelines of a government event in May 2023, when asked by journalists when flights to New York was expected to commence, Peter Foster, head of Air Astana, Kazakhstan's largest airline, responded stating, "Flights are planned to begin by 2025. There is a small correction to be made; the flights will be from Almaty. The Almaty - New York route will at the initial stage be three times a week, with a further increase to 5 flights a week, and if there is good performance, daily flights. There will be no...

4 weeks ago

Steel Highways: The State of Central Asia’s Railways

Railways in Central Asia have always played an important political and economic role, but amid the current geopolitical turbulence, they have become a crucial means of  transporting  goods from China to Europe and the Middle East, bypassing sanctioned Russia. But what is the state of  Central Asia's railway industry, and is it up to the new challenges? The history of rail transport in Central Asia dates back to the end of the 19th century. In 1874, a special commission of the Russian Empire recognized the need to construct a line from Orenburg to Tashkent. Later, however, strategic considerations forced a change of plan and to ensure a stable connection between the Turkestan and Caucasus regions, the first steel highway in Central Asia would be built to connect Tashkent with the eastern coast of the Caspian Sea. This was an active period of the so-called Great Game, when Russia and Great Britain competed in Central Asia. Since then, the geopolitical importance of railways in the region, which lacks access to oceans, has not decreased whatsoever. Indeed, amid armed conflicts in the Middle East and between Russia and Ukraine, railways have become even more important given their role in ensuring the movement of goods along the Trans-Caspian International Transport Route (TITR) and the International North-South Transport Corridor (INSTC). Against this backdrop, Kazakhstan's President Kassym-Jomart Tokayev has tasked the national railway company Kazakhstan Temir Zholy (KTZ) with leading the transformation of the country into a transport and logistics hub.   Kazakhstan: A story of steady development The length of Kazakhstan's mainline rail network is over 16,000 km, with over 800 stations and crossing points. The freight car fleet exceeds 120,000 units, while locomotives number more than 1,700. Kazakhstan’s railways account for 70% of freight traffic, and 60% of passenger traffic in the country. Just under 1% of the country’s population is employed in the rail industry. According to the KTZ's annual report in 2023, container transit rose 14% year-over-year to 1.282 million TEU (twenty-foot equivalent units), which drove a 30.6% year-on-year rise in operating income to KZT1.934 trillion, while net profit came in at KZT136.8 billion ($286.8 million). The volume of freight transported between Kazakhstan and China was also up 22% to 28 million tons. In addition, KTZ reported the completion of large-scale track repairs in 2023, with 1,443 km of railway track repaired, double the figure achieved in 2022. The start of large infrastructure projects was also noted. In particular, construction was launched of the Darbaza–Maktaaral and Bakhty–Ayagoz lines (with a third border crossing with China set to be opened in 2027), while construction of the bypass line around Almaty also commenced. Over 300 km of the second track was laid on the Dostyk-Moyynty railway section. Finally, a Kazakh transport and logistics terminal was opened in the Chinese dry port of Xi'an.   Uzbekistan: First high-speed rail in Central Asia O’zbekiston Temir Yo’llari (UTY), Uzbekistan's national rail carrier, was founded on November 7, 1994, taking over the lines of the Soviet-era Middle...

1 month ago

Kazakhstan Resolves Dispute with Stati Amid Allegations of Litigation Profiteering

Kazakhstan’s government and representatives of the Stati family have reached an agreement to cease all legal proceedings regarding the case (Republic of Kazakhstan v. Ascom Group SA) with approval from major creditors, including an offshore  investment vehicle of the Stati parties called Tristan Oil Ltd. The Stati side includes the family, as well as investors in Argentem Creek Partners (the investment manager of funds that lent money to Tristan Oil), and other possible shareholders. While the agreement comes after a fourteen-year dispute over oil and gas assets in Kazakhstan, its precise details remain confidential. Daniel Chapman, CEO of Argentem Creek Partners, was quoted in the Ministry of Justice statement as saying: “We support the framework agreement and commend President Tokayev’s decision to create a Fair Kazakhstan as part of his admirable reforms. With the settlement of this dispute, Kazakhstan is honoring international treaty obligations and, thereby, opening its doors to increased investment and heightening its economic growth potential. We welcome this new era for Kazakhstan.” Kazakhstan’s Minister of Justice, Azamat Yeskarayev said the agreement “was made in view of the public interest and does not involve the spending of budgetary funds,” and added: “We believe that this move will have a positive effect on attracting new investments in our country and on the growth of the economy.”   A brief history of the dispute In 1999, Tristan Oil Ltd., an offshore company, was granted exploration and production rights at the Borankol oil field and the Tolkyn gas field located in the Mangistau region of Kazakhstan through the acquisition of Kazpolmunai LLP and Tolkynneftegaz LLP in the same year. Additionally, Tristan Oil Ltd. made investments towards the construction of a modern liquefied gas processing plant to become operational by the end of the 2000s. In 2010, assets of the Stati family were nationalized with the authorities citing their unlicensed activities, and were transferred to the trust management of KazMunayGas JSC structures. Moldovan businessmen decried the seizure as violating provisions of the Energy Charter Treaty, filed lawsuits claiming illegal seizure of their property, and began a legal battle in international jurisdictions that lasted for fourteen years. This event became a core component of the Republic of Kazakhstan v. Ascom Group SA case involving Tristan Oil Ltd. Kazakhstan’s representatives claimed that Stati’s creditor, Argentem Creek Partners, had conspired to enforce a tainted award. However, the lawsuit was dismissed by the Supreme Court of Sweden in a final June 2023 decision awarding $497.6 million to Stati parties. The court's decision mandated the Kazakhstan Government to disburse the initial instalment of approximately $76 million to the Stati family, along with accrued interest based on six-month U.S. Government bond rates, starting from April 2009. Additionally, the ruling included an allocation of $1.5 million to cover legal expenses. Despite the final and binding decision in Sweden, the legal battle showed no signs of abating, with cases continuing in England, the U.S., the Netherlands, Luxembourg, Belgium and Italy.  The Ministry of Justice of Kazakhstan appeared intent on prolonging...

1 month ago