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Kazakhstan to Begin Purchasing Electricity from Rogun HPP

Kazakhstan has announced plans to purchase electricity from Tajikistan’s Rogun hydropower plant (HPP), a major facility currently under construction. According to a draft agreement published on Tajikistan's official legal information portal, the cooperation between the two countries is set to last for 20 years, with an option to extend for an additional 10 years. The price for the electricity is set at $0.034 per kilowatt-hour (excluding VAT), plus a transit surcharge determined by the seller’s costs. Payments are to be made within 35 days for each supply period. The supply will only occur during scheduled shortages and will be integrated into KEGOC’s national grid. Rogun HPP will handle transportation to the border, while the Settlement and Financial Center for Renewable Energy Support LLP will oversee control on the Kazakh side. Any disputes arising from the agreement will be resolved through the Singapore International Arbitration Center. Electricity agreements with Kazakhstan and Uzbekistan are a critical component for securing international financing for the Rogun HPP’s construction. Project costs have risen to $6.4 billion, according to recent estimates. To cover these costs, the Tajik government is negotiating semi-concessional loans worth $1.73 billion, $850 million in grants, and $390 million in concessional loans. The remainder will come from the government budget and revenues generated by the plant. This year, the Tajik government allocated 5 billion somoni (approximately $460 million) for the Rogun project, with 2.8 billion somoni coming from the state budget and 2.2 billion somoni from investment projects. By the end of September 2024, 4.3 billion somoni (about $395 million) had already been spent on construction. Once completed, Rogun HPP will become the largest hydropower facility in Central Asia, boasting a capacity of 3,600 MW and capable of producing up to 17 billion kWh of electricity annually. This output represents 65–85% of Tajikistan’s total electricity production. The plant will house six units of 600 MW each, with full commissioning expected by 2029. Currently, two units are operating at low capacity, having been commissioned in 2018 and 2019. The project serves as a landmark achievement for Tajikistan’s energy sector and a key driver of regional energy cooperation, promoting economic stability and resource-sharing throughout Central Asia.

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Kyrgyzstan’s Talas Province Faces Urgent Need for Proper Detention Facility

Kyrgyz Ombudswoman Jamilya Dzhamanbayeva has voiced serious concerns over the substandard conditions in the temporary detention center (TDC) in Talas Province. During a recent visit, detainees reported inadequate facilities and breaches of detention standards, according to the Ombudsman Institute. Dzhamanbayeva revealed that the TDC houses individuals awaiting trial alongside those already charged with crimes—a practice explicitly prohibited under Kyrgyz law. “At the time of the visit, there were 17 individuals suspected or accused of crimes in the TDC, which has a total capacity of 36 people. Among them, two were women. The TDC is situated in the yard of the Department of Internal Affairs, but in a separate building,” stated the Ombudsman Institute. Lack of a Dedicated Proper Pre-Trial Facility The absence of an investigative detention center (IDC) in Talas Province forces authorities to detain pre-trial prisoners in the TDC, mixing them with individuals under investigation. This not only violates national laws but raises significant human rights concerns. During her visit, Dzhamanbayeva inspected the cells and spoke directly with detainees to assess their conditions. She called on the Kyrgyz government to expedite the construction of a dedicated IDC in Talas Province to comply with international standards and Kyrgyz legal obligations. Inhumane Living Conditions The National Center for the Prevention of Torture has also criticized the state of the Talas TDC, identifying severe deficiencies: Lack of natural light: Windows are blocked by metal structures, preventing daylight from entering. Inadequate sleeping arrangements: Detainees sleep on the floor due to a shortage of beds and bedding. Unsanitary environment: The facility suffers from poor hygiene and overall neglect. These conditions exacerbate the already critical situation for detainees, underscoring the pressing issue of detention standards in Talas Province.

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Russia Looking to Export Gas to China via Kazakhstan

Russia continues to try to reorient its natural gas exports from Europe to Asia and is planning a new pipeline route to China that would pass through Kazakhstan. Kazakhstan stands to benefit not only from transit fees, but could also import some Russia gas for regions in northeastern Kazakhstan that are desperately in need of more energy sources. The Russian plans are bad news for Turkmenistan as China is Turkmenistan’s main gas customer and Turkmen authorities were hoping to sell China even more gas. On November 15, Russian Deputy Prime Minister Aleksandr Novak mentioned the pipeline plan on the sidelines of a Chinese-Russian forum in Kazan, Russia. Novak said such a project is still only being discussed, but Russian media outlet Kommersant wrote on November 18 that there are already three options for the pipeline. All three possibilities pass though northeastern Kazakhstan, but Kazakhstan’s level of participation in the pipeline is different in each variation. One of the projects would require Kazakhstan to build a pipeline for gasification of the northeastern Pavlodar, Abai, and Karaganda provinces. A second proposal would include only the Abai and Zhetysu provinces. Russian gas giant Gazprom’s financial obligation also changes depending on the pipeline project selected. The most expensive option for Gazprom would cost more than $10 billion to construct and would not operate at full capacity until 2034. All versions foresee at least 35 billion cubic meters of Russian gas (bcm) shipped via the pipeline with Kazakhstan receiving some 10 bcm, which would greatly alleviate recent power shortages in northeastern Kazakhstan. Despite Novak saying the pipeline project was only being discussed, Kazakhstan and Russia appear well along in their planning. In early May, Kazakh Ambassador to Russia Duaren Abayev gave an interview to Russia’s TASS news agency and mentioned there was a “roadmap” for supplying 35 bcm of gas to China via Kazakhstan. Russia already exports gas to China via the “Sila Sibiri” (Power of Siberia) pipeline and expects that in 2024 the pipeline will for the first time reach its full capacity of 38 bcm. Construction of Sila Sibiri-2 with a planned capacity of some 50 bcm has been delayed due to China’s reluctance to loan Russia money for construction, differences over price, and China’s increasing purchases of liquefied natural gas (LNG). Novak commented on Sila Sibiri-2, saying the pipeline project involving Kazakhstan was separate and the Russian government will continue to negotiate with China about construction of Sila Sibiri-2. Russia is seeking to replace its former main customer, the European Union. Prior to the Kremlin launching its full-scale war on Ukraine in February 2022, the EU was buying between 150-160 bcm of Russian gas annually. The EU sharply cut back on Russian gas imports in response to the invasion of Ukraine and in 2023 imported less than 43 bcm. Russia’s pivot to Asia for gas exports targets the Chinese market, but Gazprom is looking to take any possible Asian customers and has found some in Central Asia. Russia’s surge into the Asian...

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Kazakhstan Abandons Universal Income Declaration Plan

Kazakhstan Scraps Universal Tax Declarations Amid Public Concerns In a surprising move, the Kazakh government has proposed canceling the universal tax declaration system set to take effect in 2025. The decision, aimed at alleviating public anxiety amid worsening economic conditions, will exempt over 90% of the population from filing declarations. Experts argue that this adjustment is necessary and practical, as the reform would otherwise add unnecessary strain on taxpayers without significantly benefiting state revenues. Public Backlash and Policy Reassessment The Universal Declaration initiative was intended to include approximately 8 million additional citizens in 2025, encompassing private sector employees, pensioners, and students. However, widespread public concern about the burden on taxpayers and tax authorities prompted a reevaluation. Finance Minister Madi Takiyev announced the exemption on November 19, citing the country's advanced digital infrastructure, which already tracks key financial data. Prime Minister Olzhas Bektenov echoed these sentiments, directing the Ministries of Finance, National Economy, and Justice to draft legislative amendments within three days. He emphasized that the reform had “caused concern of the population, which was brought to the attention of the head of state.” He added that a widespread income declaration is unnecessary because the databases of state agencies in Kazakhstan are "highly digitized." Streamlined Tax Obligations The revised approach retains declaration requirements for specific groups, including: Citizens with assets abroad. Individuals making significant purchases (exceeding 74 million KZT, or approximately $149,000, in 2024). Those receiving income are subject to independent taxation. Voluntary declarations will remain an option for all citizens. A Phased Reform The universal declaration system began in 2021 and was implemented in stages. Initially, it targeted government officials and their spouses. The requirement extended to public sector employees and the quasi-public sector in subsequent phases. By 2024, business leaders, entrepreneurs, and their spouses were included. The final stage, which aimed to include the broader population, faced criticism for being outdated in the digital era. President Kassym-Jomart Tokayev acknowledged this, stating, “It is planned that about 8 million more people will submit declarations next year. However, we should consider that the concept of universal income declaration was adopted 14 years ago. During this time, the country has made significant progress in digitalization and fintech. Databases of various government agencies have been integrated. Financial and tax control has been strengthened. Given these large-scale changes, the question arises as to whether it is advisable for citizens falling under the fourth and final stage to submit declarations. The government needs to work out a solution to this.” Expert Analysis Political scientist Gaziz Abishev highlighted the effectiveness of the reform's earlier stages, which targeted those most likely to influence public funds or earn significant income. “The first three stages have already included bureaucrats, civil servants, quasi-public sector employees, and businesspeople. Everyone who manages public funds or earns a considerable income within Kazakhstan’s economy has already been required to report and will continue to submit declarations,” Abishev explained. The fourth stage, set to include around 8 million additional citizens, drew criticism for its lack...

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EDB Conference in Almaty to Focus on Sustainable Development in Central Asia

The Eurasian Development Bank (EDB) will host its annual conference, titled “Promoting Sustainable Development in Central Asia,” on December 6 in Almaty, Kazakhstan. The EDB, an international financial institution focused on fostering economic cooperation and development across Eurasia, counts Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan among its member countries. Kazakhstan alone accounts for nearly 60% of the Bank’s investment portfolio, reflecting its pivotal role in regional development efforts. The conference will focus on the EDB’s most pressing priorities for 2024, including the urgent need for sustainable and rapid economic growth to alleviate poverty in Central Asia. Discussions will address the persistent challenges of transport connectivity, which are particularly acute for the landlocked countries of the region. Additionally, the event will explore the integrated development of the water, energy, and food nexus, which the EDB views as essential for ensuring the region’s security, peace, and sustainable development. Participants will also examine trade facilitation, investment strategies, and innovative solutions for infrastructure development. These topics are considered crucial for advancing the region’s economic prospects and improving the quality of life for its citizens. The conference will host representatives from leading international organizations, including the World Bank, the Islamic Development Bank (IsDB) and its Institute, the World Food Programme, and the UN Development Programme. Other participants include the Development Bank of Kazakhstan, the UN Economic and Social Commission for Asia and the Pacific (ESCAP), and the UN Climate Technology Centre & Network (CTCN), alongside government officials and regional stakeholders. This annual event is expected to provide a platform for actionable discussions, fostering collaboration among key players and paving the way for sustainable economic development in Central Asia.

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Gold Reserves in Kyrgyzstan May Reach Up to 4,000 Tons

Kyrgyzstan holds over 5,000 deposits of various minerals, including valuable resources such as gold, rare earth elements, uranium, and thorium. This was announced by Deputy Minister of Natural Resources Narynbek Satybaldiev during a briefing. According to official state data, Kyrgyzstan has just over 1,000 tons of confirmed gold reserves. However, geologists estimate that the country's total potential exceeds 4,000 tons. Many deposits are complex, containing other metals such as antimony, copper, and zinc alongside gold. Satybaldiev highlighted that the recent lifting of a moratorium on deposit development presents new opportunities for mining gold and other strategically important metals essential for the global economy. The Kyrgyz government is developing a comprehensive strategy to fully utilize its mineral resources. The plan includes exploration, mining, and processing initiatives, with a particular focus on rare earth metals. These resources are critical for producing high-tech products and advancing green energy technologies. The implementation of this strategy is expected to boost mining revenues, strengthen Kyrgyzstan's economic independence, and attract foreign investment. In June 2024, Kyrgyzstan lifted a ban on developing uranium and thorium deposits, a restriction that had been in place since 2019. The decision reflects the government’s aim to balance environmental safety with the need to harness strategically important resources for economic growth. The policy change is expected to attract investment, create jobs, and increase revenues from mineral exports.