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Kazakhstan Has Become Main Trade Partner of China’s Xinjiang Province

According to Chinese Customs Service data from the first quarter of 2024, Kazakhstan became the main trade partner of China's Xinjiang Uygur Autonomous Region. Since the beginning of the year, Xinjiang has conducted trade with 193 countries and regions of the world. The volume of imports and exports with Kazakhstan and Kyrgyzstan in currency terms has increased by 58.8% and 1.9% respectively. The volume of foreign trade originating from Xinjiang since the beginning of 2024 has increased by 42.7% year-on-year and reached about $13.2 billion. That puts Xinjiang in second place in China in terms of trade growth at the provincial level. Imports of agricultural products specifically increased by 36%. According to the General Customs Administration (GCA) of China, last year the trade turnover between Kazakhstan and Xinjiang increased by 63% and reached $20.3 billion. In the first half of 2023 China became Kazakhstan's main trading partner, displacing Russia. China supplies the country with cars, computers and laptops, plastics and plastic products -- and from Kazakhstan imports oil, natural gas, uranium, ferroalloys, mined ores and concentrates and oilseeds.

Central Asia Uzbekistan Local Politics Uzbekistan Business & Economy Business & Economy Uzbekistan Local Politics

Uzbekistan to Open Centres for Workers Seeking Employment Abroad

The Uzbek government is to open 27 educational institutions across the country for the purpose of training potential migrants in professions in demand by foreign employers. Students will also have access to lessons in various languages including English, German, Japanese, Korean and Arabic. Courses will be offered on a paid-contract basis for a year. Attendees with existing proficiency in languages spoken in countries of their choice, will be eligible for a 50% reimbursement by the state of costs incurred in attaining related certificates. Teachers at the centres will receive a 100% salary supplement. The government of Uzbekistan had earlier announced measures to support citizens seeking employment abroad and from June this year, migrant workers will be offered compensation for passing the qualification exam, obtaining a work visa in a foreign country, travel costs and insurance. In addition to training programmes to open up opportunities in better-paid and professional jobs outside Uzbekistan, the government has now confirmed further subsidies for legal and material assistance. According to the Uzbek Agency for External Labour Migration, some 70,000 citizens have legally secured work abroad over the past two years and Germany, Great Britain and Japan have recently shown great interest in employing Uzbek migrants. Remittances from labour migrants to Uzbekistan remain a material part of the country's gross domestic product (GDP) -- accounting for 17.8% in 2023. In neighbouring Tajikistan, migrant remittances account for almost half of the country's economic output, and in Kyrgyzstan, 20%.

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

World Bank Helps Uzbekistan With Digital Inclusion Project

The World Bank has given Uzbekistan a soft loan of $50 million to grow its digital economy. The loan will help employ about 9,000 young people -- including 4,500 women and 360 persons with disabilities -- in IT-related services. The funds will also be used to create 11 IT service centers, and train 6,200 people in digital skills, communication and foreign languages. The program, which will run until 2029, foresees the creation of a legislative framework in the IT sphere. The IT sector's contribution to Uzbekistan's GDP remains insignificant -- it was just 1.9% in 2022.

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Uzbek Refineries Abandoning Kazakh Oil in Favor of Cheaper Russian Crude

Uzbekistan is reducing oil imports from Kazakhstan in favor of cheaper Russian oil, according to a report by the specialized, energy-focused Telegram channel, Oil & Gas of Kazakhstan. According to this source, in the first quarter of 2024, companies in Uzbekistan imported 15,200 tons of crude oil from Kazakhstan by rail for processing. In January-March of 2023, imports amounted to 25,600 tons. The main volume of raw materials this year went to the Ferghana refinery. At the same time, Russia's Gazprom-Neft shipped 75,000 tons of oil through the pipeline in transit through Kazakhstan in the first quarter of 2024. This is almost seven times more than a year earlier, when this figure was just 10,700 tons. By the end of 2024, Russia plans a full-year supply volume to Uzbekistan of up to 550,000 tons of oil, against a total of 154,300 tons a year earlier, which will be supplied through Kazakh state oil-pipeline operator, KazTransOil's trunk pipelines. The reason for the growth of supplies is a more attractive price, which is in part pushed down by both the G7's price cap of $60 per barrel on Russian oil exports, and India's disinclination to pay for Russian oil in rubles - which is driving down Russian exports. If oil from Kazakhstan is supplied to Uzbekistan at a discount of $8-9 per barrel relative to the North Sea Dated Brent oil contract, then the size of the discount on Russian crude is reaching $11-12 per barrel.

Central Asia International Affairs Kazakhstan Business & Economy Kazakhstan International Affairs Kazakhstan Business & Economy

Kazakhstan Imported 500 Million Cubic Meters of Russian Gas in First Quarter 2024

In the first quarter of 2024 Kazakhstan took delivery of 500 million cubic meters of Russian gas, according to a report by the Ministry of Energy of Kazakhstan, who said that the import of blue fuel from Russia is under a contract between state energy companies JSC QazaqGaz and PJSC Gazprom. According to the agreement between the companies, fuel imports are made only when necessitated by the gas demand of the domestic Kazakh market against the background of peak consumption in winter -- and exclusively at the request of the Kazakh side. According to QazaqGaz, the wholesale cost of Kazakh gas is more than 60% higher than the retail price in the country. At the end of last year, the national company incurred $392 million in losses from the sale of natural gas on the domestic market. Experts say that the possibility of gas shortages in the country depends on the growth rate of domestic consumption and stability of commercial fuel supplies from domestic natural gas producers. If there is a shortage, it can be covered by imports assured by the national company. However, in order to prevent shortages of gas in the medium and long term, QazaqGaz has increased its commercial gas reserves, started to develop new fields, and undertaken construction of new -- and refurbishment of existing -- gas processing and gas transportation facilities. Earlier, Boris Martsinkevich, an energy expert and editor-in-chief of the Russian publication Geoenergetika, described Kazakhstan as a gas-dependent country. In his opinion, 2024 will be a milestone year for Kazakhstan. This is the year when Kazakhstan's fields will not be able to meet the needs of the domestic market. Martsinkevich's statements were made against the backdrop of a sharp decline in gas exports and an increase in gas imports.

Central Asia Local Politics Kyrgyzstan Kyrgyzstan Local Politics Business & Economy Kyrgyzstan Business & Economy

Kyrgyz Authorities Seeking Monopoly on Insurance, Industry Group Says

The Kyrgyz Association of Insurers is sounding the alarm that private insurance companies may soon be out of work due to government interference. According to a decree signed by Kyrgyz President Sadyr Japarov, all state bodies and local governments are now instructed to insure all their property with the State Insurance Organization (JSC SIO) in order to develop the national insurance market. "The Cabinet of Ministers of the Kyrgyz Republic will define JSC SIO as the national operator for reinsurance, including export risks, within the framework of cooperation with the Eurasian Reinsurance Company," the document says. The Kyrgyz Association of Insurers appealed to human rights activists to assist in protecting their interests. Private insurers are sure that the new law violates their rights and doesn't comply with Kyrgyzstan's current legislation. "According to insurers, the principles of entrepreneurial activity established by the legislation of the country, such as non-interference of state bodies in the activities of business entities, are violated. In addition, the state guarantees for the protection of the rights of entrepreneurs equal rights and opportunities to access financial resources -- as well as the creation of conditions for the protection and development of competition -- are being violated," - said the International Business Council, which was engaged by Kyrgyz private insurance companies on the matter. The current law "On Organization of Insurance in the Kyrgyz Republic" prohibits interference in insurance activities. Private insurance brokers and business owners argue that the state is playing an unfair game at the legislative level, forcing state-owned companies to insure their property with the SIO. Besides, the financial means to underwrite risk and pay out possible insurance claims are miniscule to the capitalization of private insurers. Last year, the authorities increased the capitalization of the SSO to 1 billion som, and this year they will allocate another 300 million som by presidential decree. "In the prescribed manner by 2027 to find and gradually allocate funds in the amount of 5 billion som to JSC "SIO" to increase the authorized capital... By 2027, the annual profit in the amount of 100 percent, received from the activities of JSC "SIO," will be directed to increase the authorized capital at the expense of the distribution of budget revenues and expenditures," the law reads. Today, 15 insurance companies, including SSS -- as well as several Chinese and Kazakhstani insurers -- operate in the Kyrgyz market. People familiar with the situation who spoke to The Times of Central Asia say most of the major national companies are already insured with SIO, meaning that only civil insurance lines -- like health and life -- and auto insurance remain for private insurers.