Business & Economy - The Times Of Central Asia

Viewing results 913 - 918 of 1104

Kyrgyz Fuel Rules Set to Raise Prices Amid Fight With Black Market

As part of the fight against the shadow gasoline market, the Kyrgyz authorities plan to introduce a rule that all gas stations in the country must label fuel from June 1 this year. The plan meant is to tighten control over the production, movement, storage, shipment and sale of motor fuels, and the initiator of the innovation is the tax service. The draft law was approved by the Ministry of Economy of Kyrgyzstan; the document is undergoing public hearings. According to the bill, from June 1, all gas stations in the country will be required to sell only labeled fuel. There will be an exception only for fuels and lubricants produced in Kyrgyzstan and exported. The requirement will be for vendors to add a small amount of a special molecular marker to each batch of fuel. The tax service said that such a marker cannot be faked and cannot be washed off or altered in any way. Once the law comes into force, tax officials plan to create a mobile laboratory that will travel around the country and check gasoline at gas stations. "Tax officials in any corner of the country will be able to check the legality of movement and sale of fuel and lubricants, and apply sanctions measures if necessary," the Kyrgyz tax service stated. Fuel markers will make it possible to determine the origin of gasoline and prevent the mixing of different brands of fuel. Tax officials said some gas stations currently mix various additives to gasoline to artificially increase its octane number or dilute the fuel to increase its volume. This isn't the first time the authorities have tried to introduce fuel-labeling in Kyrgyzstan, Kanat Eshatov, president of the republic's Association of Oil Traders commented, explaining that gas station owners include the cost of these substances in their pricing. This means that for the average consumer, gasoline will become more expensive. "So far we do not know how much such labeling will cost. We count gasoline by tons. So we will have to buy a certain amount of this substance per ton, and this amount will fall on the shoulders of the consumer," Eshatov explained to the Times of Central Asia. In their justification for the bill, Kyrgyz Economy Ministry officials said the country's fuel and lubricants trade has a high shadow, or unregulated market component. The shadow market of gasoline continues to grow. For example, on the bypass road near Bishkek, which runs along the border with Kazakhstan, one can find a dozen illegal sellers of gasoline, which they sell in plastic bottles. Gasoline is smuggled into Kyrgyzstan from neighboring republics. According to the Kyrgyz Tax Service, in 2023 the agency seized almost six times as much illegal fuel as in 2022 - 19,600 liters versus 3,400 liters in 2022. Legal gas stations sometimes also sell smuggled gasoline. With the introduction of labeling, this practice will stop, the tax service said.

Central Asia Opinion Head Home Kazakhstan International Affairs Kazakhstan Business & Economy Kazakhstan Business & Economy Opinions Kazakhstan Opinions Features

The Middle Corridor: How Kazakhstan is Carving its Niche in Europe-Asia Transport

In the aftermath of the pandemic and amid rising geopolitical tensions and sanctions – leading to the breakdown of traditional shipping and logistics chains – the need to develop new, alternative routes for trade has gained particular importance. One such route is the Middle Corridor, or Trans-Caspian International Transport Route, which has become a priority project for Kazakhstan and its neighbors. In this overview we look at the prospects for this multi-modal transnational route. The Trans-Caspian International Transport Route (TITR), or Middle Corridor, starts in China, passes through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and Turkey, before reaching Europe. Last year, more than 2.7 million tons of cargo was transported along the TITR, up 86% on 2022, whilst it is expected to carry 4 million tons this year. Drivers of growth This growth in volumes has been facilitated by the conflict in Ukraine and restrictions on the transport of goods through Russia, which previously represented the main land route connecting East and West. As a result, in 2022 the volume of container traffic via the TITR grew 33% year-on-year. In addition, amid the geopolitical tensions that have effected the safety of traversing the Suez Canal and the Red Sea – the central and shortest trade route between Asia and Europe – many shipping companies have been forced to go around the southern tip of Africa. This has led to an increase of 14-18 days in the delivery time of goods, as well as additional costs. Because of attacks by Houthi rebels, the number of container ships passing through the Suez Canal each week was down 67% year-on-year in 2023, according to the UN. Meanwhile, in the first two months of 2024, trade volumes along the route decreased 43%. According to data from the UN Conference on Trade and Development, last year the cost of transporting goods from Shanghai to European countries by sea roughly tripled. At the same time, shipping goods by rail from inland Chongqing to Europe was a third cheaper than by sea. Experts note that over the past decade, the total cost of transporting goods between China and Europe by rail has fallen 30%. All this opens wide opportunities for the further development of the TITR, which should be taken advantage of by countries along the route. Middle Corridor countries working together Today, to ensure safe and uninterrupted exports, as well as to attract more flows through Kazakhstan and other TITR countries, measures are being taken. Indeed, the route is considered a strategic initiative for the development of the entire region’s transport potential. During a recent visit to Azerbaijan, Kazakh President Kassym-Jomart Tokayev said that in the future the volume of cargo transported via the TITR should increase to 10 million tons, which is to be facilitated now by both existing demand and technology. At the end of 2022, a roadmap for 2022-27 was signed to eliminate bottlenecks along the route in Kazakhstan, Azerbaijan and Turkey, while to boost the volume of cargo transported by rail a...

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

Kazakhstan and China Strengthen Strategic Partnership

On 29 March Kazakhstan’s Deputy Prime Minister and Minister of Foreign Affairs, Murat Nurtleu visited China for the first meeting concerning the establishment of the Strategic Dialogue between Kazakhstan and China. Following discussions with Chinese Foreign Minister Wang Yi on political, trade, economic, investment, and cultural cooperation, Minister Nurtleu reported: “We attach great importance to the development of relations with Beijing. We have established a comprehensive strategic partnership, which is being strengthened through personal friendly contacts of our leaders.” Citing the fact that in 2023, China became the Kazakhstan’s largest trading partner, with an increase in turnover of bilateral trade of over 30% to 41 billion US dollars, he emphasized the need for further promotion of joint economic, transport and logistics projects within the framework of China’s Belt and Road initiative. In turn, the Chinese Foreign Minister stated, “Kazakhstan is our authoritative strategic partner in the region” and announced that China is ready to fully strengthen and enhance cooperation with Kazakhstan. The ministers also noted that the significant intensification of cooperation between the two countries was largely due to the introduction of the mutual visa-free regime implemented in November last year.

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

Uzbekistan’s Gold Mining Aims to Replace Labour Migration

Most of the country's gold, located in the regions of Navoi, Samarkand and Bukhara, cannot be extracted industrially due to low concentration and difficulties in accessing the mountainous terrain. Uzbekistan's gold reserves for artisanal mining exceed 3 tons per 590 hectares. Gold mining by artisanal miners began to gain momentum after 2019 when the authorities issued permits for excavation in specified areas and since then, year on year, the Ministry of Geology has added new sites which are available through electronic auctions. Any Uzbek resident acquiring a plot, can mine for a period of three years and sell the extracted gold to mining and metallurgical plants and licensed jewellery companies. Mining has existed in Uzbekistan for many years, but prior to 2019, much of it was illegal. The gold was often smuggled out of the country, and as a result of makeshift mines collapsing, fatalities and serious injuries were common. The legalisation of mining activity aims to help safeguard the miners and reduce the illegal export of gold from the country. Moreover, by providing jobs for residents, it will help curb labour migration. "My job consists of digging ore and taking it to the washing plant. On average, I earn $240-$315 a month; enough to feed myself," excavator driver Sardor Mardiyev told Agence France Press. Mardiyev currently works at a gold-mining site in the village of Soikechar, Nurata, in Uzbekistan's Navoi region and according to owner, Zakhid Khudaiberdiyev, the site produces an average of 12 to 15 grams of gold per day. However, while providing an economic lifeline for workers who might otherwise work abroad, independent mining is damaging the soil and holes dug by miners pose a serious risk to farmers' livestock. In addition, even small-scale mining consumes large amounts of fresh water, which is scarce in the region. Uzbekistan ranks 15th in the world in terms of gold reserves, which experts estimate to total 362 tons. Since the beginning of 2024, revenue from the gold trade has accounted for a third of Uzbekistan's total exports and in accordance to a call by President Shavkat Mirziyoyev, production is set to increase by 50 percent by 2030.

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

Year of Kazakhstan Tourism in China

The Year of Kazakhstan Tourism in China was officially launched in Beijing on 28-29 March. The occasion was marked by several events including a Kazakh-Chinese forum on the development of tourism and investment, an exhibition representing Kazakhstan’s various regions, cultural activities staged in an ethno-village, and a gala concert. In his welcoming speech at the Kazakh-Chinese tourism and investment forum, Ermek Marzhikpayev, Minister of Tourism and Sports of Kazakhstan, said: “The Year of Tourism of Kazakhstan in the People's Republic of China is a landmark event that helps strengthen friendly relations between the two countries. We believe that our dialogue will give new breath and new horizons for partnership in the field of tourism, creating the basis for fruitful and long-term cooperation.” He added that Kazakhstan’s rich nomadic culture, centuries-old history, and unique natural landscape has much to offer to travellers with wide-ranging interests. Kairat Sadvakasov, chairman of Kazakh Tourism national company, likewise celebrated the launch saying, “We are convinced that Kazakhstan is one of the most attractive destinations for Chinese tourists, being not just a friendly and neighboring country with a visa-free regime, but also a strategic partner of the 'Belt and Road' Initiative. We offer tourists engagement with the concept of ‘Eco-Ethnic-Entertainment-Events’ including: ecotourism, ethno-tourism, and cultural entertainment.” China was second only to Russia in the list of countries whose citizens visited Kazakhstan in 2023. According to official statistics, over the first nine months of last year, more than 75,000 Chinese tourists stayed in Kazakh hotels, and a total of over 200,000 visitors from China visited Kazakhstan.

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

Kazakhstan to Earn $1.7 Billion from Russian Oil Transit to China

The Mazhilis of the Parliament of Kazakhstan has ratified amendments to the agreement between the Governments of Kazakhstan and Russia on the transportation of Russian oil through Kazakhstan to China. The original agreement, signed on December 24, 2013, covers the period up until January 1, 2024 but both parties have now expressed their interest in its extension to 2033. According to Kazakhstan’s Energy Minister Almasadam Satkaliev, extending the agreement for a further ten years will enable the transit 10 million tons of Russian oil per year. Approval was granted for transit tariff set at $15 per ton and between 2024 and 2033, the forecast revenue from the transit of Russian oil through Kazakhstan to China is $1.710 billion. Statistics show that from 2014 to 2023, the total transit of Russian oil through Kazakhstan to China amounted to 90,899,271 tons, providing transit revenue of $1.327 billion.