Business & Economy - The Times Of Central Asia

Viewing results 853 - 858 of 1107

Starlink Close to Providing Internet Access in Remote Parts of Kyrgyzstan

Representatives of Kyrgyzstan's ministry of digital development have met again with the American company Starlink, with a view to bringing satellite internet access to the country. However, there are still regulatory hurdles in Kyrgyzstan that hinder the development of Starlink technology. Elon Musk's aerospace company SpaceX first entered the Kyrgyz market in 2021, and a subsidiary company named Starlink KG was registered. However, the first attempts at cooperation were unsuccessful, as the Kyrgyz authorities refused to allocate the necessary radio frequencies without a tender process. Starlink KG received a license for its operations only at the end of last year. Nevertheless, Starlink remains willing to work with Kyrgyzstan, one of its directors Rebecca Hunter meeting recently with the Kyrgyz ambassador to the U.S. and Canada Baktybek Amanbaev to discuss this issue. Last year, deputy chairman of the cabinet Edil Baisalov also spoke with representatives from Starlink. They discussed the possibility of using this company's technology to deploy satellite internet in Kyrgyzstan's mountainous regions, particularly in remote schools.

Central Asia Home International Affairs Kazakhstan International Affairs Kazakhstan Business & Economy Kazakhstan Business & Economy Features Kazakhstan Featurees

Kazakhstan Likely To Insist on Revisions to Kashagan Oil Contracts

Kazakhstan is demanding compensation for lost profits from the North Caspian Operating Company (NCOC), the consortium that manages the Kashagan oil field, and arbitration claims have risen to $150 billion. Sources close to Kashagan told The Times of Central Asia that this should send the message to western energy companies that Kazakhstan is looking to revise previously signed contracts. While Bloomberg has reported the sum of the claims, citing people familiar with the matter, Kazakh government officials have declined to comment on the situation, claiming that it is a "commercial dispute." In April 2023, proceedings against the companies developing the Kashagan and Karachaganak fields began as part of a dispute over cost deductions from oil-sale proceeds of more than $13 billion and $3.5 billion, respectively. An additional $138 billion claim relates to the calculation of the cost of oil production "that was promised to the government but not delivered by the field developers," according to Bloomberg. The Ministry of Energy has not yet commented on the new claims. It states that the Kazakh authorities seek to maximize profits from their oil-production projects with the participation of foreign investors, but have been relatively flexible in previous disputes with oil corporations. International sources note that Eni, Shell, Exxon and TotalEnergies have already invested around $55 billion in Kashagan, and currently the field produces about 400,000 barrels of oil per day. NCOC investors, led by Italy's Eni, are convinced that production can be increased to 1.5 million barrels per day. NCOC has stated that it acts in strict compliance with the contract. Representatives of Eni confirmed that the Kazakh authorities have applied to the court for arbitration settlement, but did not disclose details. Earlier, Kazakhstan won a lawsuit against the Kashagan consortium which required them to pay $5.1 billion for damage to the environment. Kashagan is developed by the NCOC consortium, which includes the national company KazMunayGas (KMG) and several foreign energy companies: Eni, Shell (Great Britain), ExxonMobil (USA), Total (France), Inpex (Japan), and CNPC (China). Member of the Public Council of the Kazakh Ministry of Energy, Olzhas Baidildinov believes that the sharp increase in the amount of the lawsuit is a signal from the Kazakh side to the consortium to revise the contracts. "In my opinion, it's obvious that Kazakhstan wants to revise the terms of work on large consortia. At the same time, I have proposed many times to exchange the frozen assets of the Russian Federation for stakes in major projects: Tengiz, Karachaganak and Kashagan. There is a nuance here: for example, the shares in Karachaganak and Kashagan are managed by PSA LLP, which is determined by the authorized body, while the share in Tengiz is managed by KazMunayGas. As we see, on Kashagan and Karachaganak there are arbitration claims filed in international arbitration, there is an environmental issue - but on Tengiz they are silent for some reason. This is either KMG's unprofessionalism, because the amount of investment expense is very high, or some other unknown issues that need...

Central Asia Kazakhstan Local Politics Kazakhstan Business & Economy

AI Takes Hold in Kazakhstan’s Finance Industry

The National Bank of Kazakhstan has conducted a survey on the prospects for developing artificial intelligence (AI) in the country. The results of this survey showed that 31% of respondents who work in the finance industry are already using AI in their work. Analysts from the National Bank concluded that AI technologies are gaining popularity in Kazakhstan, with domestic banks becoming leaders in implementing AI in business processes. Among the most popular AI technologies in the Kazakhstani financial market are machine learning and computer vision -- as well as large language models (LLMs) and natural language processing. This indicates a wide range of innovative technologies are being applied to various financial activities. However, besides the sheer potential of the technologies, major barriers to further development of AI in the country have also been identified. These include lack of infrastructure and computing power, lack of security standards for AI products, difficulties in accessing data, and unreliable internet connections. The lack of an active national research and development (R&D) institute and low demand for AI products among potential customers were also cited.

Central Asia Uzbekistan International Affairs Business & Economy Uzbekistan Business & Economy Uzbekistan International Affairs

Rosatom Set to Build Small Nuclear Power Plants in Uzbekistan

Russian state nuclear power corporation Rosatom is ready to offer lower-capacity nuclear power plant (NPP) projects to Uzbekistan. That's according to comments made by Denis Manturov, Russia's Minister of Trade and Industry, at the fourth annual international industrial exhibition, Innoprom, Central Asia. “Currently, the Rosatom state corporation and the Uzatom agency are working out the general contract for the construction of a nuclear power plant. This is a large-scale and complex project. Rosatom is ready to offer Uzbekistan additional solutions, including solutions related to low-power nuclear power plants,” Manturov said. According to Manturov, who is also a Deputy Prime Minister, the site for the construction of the NPP has already been chosen, and the spot is located near Tuzkon Lake in the Jizzakh region, which studies have confirmed is a favorable place. In addition, the optimal technical configuration for the project has already been determined. Rosatom plans to build a complex consisting of two power units with VVER-1200 reactors. “Now, together with Uzbek and international experts, technical issues related to the integration of the nuclear power plant into the energy system, cooperation with renewable energy sources, reducing the volume of water for the use of the plant and maximum production of electricity are being considered taking into account the climatic characteristics of the region,” Manturov stated.

Central Asia Kazakhstan Local Politics Local Politics Business & Economy Kazakhstan Kazakhstan Business & Economy

Kazakhstan Plans To Stop Bloggers From Promoting Gambling

Kazakhstan is preparing big changes for the gambling business in the form of a new bill that's under consideration in the country's lower house of parliament, the Mazhilis. Should the bill become law, bloggers will be banned from advertising betting platforms and online casinos. These changes are aimed at stricter regulation of the gambling industry and protection of citizens' financial interests. Members of the Maijilis emphasize that bloggers will still be able to cover sporting events on their social media accounts, but advertising gambling establishments will be banned. That's a step towards more responsible and ethical advertising practices that focus on sports and healthy lifestyles that the government would like to promote. The bill includes other important changes, such as raising the minimum age for gambling to 25, banning gambling by those who are in debt, and tightening the requirements for advertising gambling establishments. These steps are aimed at creating a safer and more responsible gambling environment for citizens of Kazakhstan. In March the Mazhilis started working on the new draft law, which, according to representative Askhat Aimagambetov, provides for the introduction of liability for gambling businesses in the form of fines ranging from 1.1 million tenge ($2,500) to 3.6 million tenge ($8,000). In addition, members of the Maijilis spoke out on the possible introduction of a ban on gambling for civil servants. This is a step that could be part of a broader program to combat the negative consequences of gambling addiction among public-sector employees.

Central Asia Uzbekistan Uzbekistan Business & Economy Business & Economy Uzbekistan International Affairs

China Remains Uzbekistan’s Top Trade Partner

In the first three months of 2024, the value of bilateral trade between China and Uzbekistan reached $2.1 billion. During this period, Uzbekistan's exports to China totaled $349.4 million, whilst imports from the People's Republic of China (PRC) reached $1.7 billion. This trade flow reflects a significant surplus in the PRC's trade balance, indicating a steady demand for Chinese goods. According to the Uzbek statistics agency, trade with China accounts for 21.5% of the country's total foreign trade. The number of companies with Chinese investments is steadily growing in Uzbekistan - at the beginning of April, there were 2,501 of them, up 7% compared to the end of last year. At a meeting of the leaders of Uzbekistan and China in Beijing in late January, 2024, Presidents Mirziyoyev and Xi agreed to prepare programs of cooperation in infrastructure development, industrial cooperation, technology transfer in agriculture, and green energy. Last year, Chinese companies commissioned two solar power plants in Uzbekistan with a capacity of 1,000 MW. Mirziyoyev and Xi said bilateral trade turnover between the countries could reach $20 billion annually. The two sides see great potential in the construction of the China-Kyrgyzstan-Uzbekistan trunk-line railroad. According to various estimates, this multi-modal corridor will reduce the distance of cargo delivery to Europe from China by 900 kilometers, saving 7-8 days of transit time.