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Kazakhstan Seeks FAO Support in Promoting Exports of Aport Apples

During his official visit to Italy on January 18th, President Kassym-Jomart Tokayev met with Director General of the Food and Agriculture Organization of the United Nations (FAO), Qu Dongyu. Tokayev and the FAO head attended a presentation of the famous Kazakh aport apples as part of the FAO’s One Country One Priority Product program, the Kazakh Ministry of Agriculture reported. “Kazakhstan is widely known as the birthplace of apples,” the President said. “Aport apples grow in the vicinity of Almaty, the largest metropolis in our country and my hometown. Translated from Kazakh, ‘Almaty’ means ‘place of abundance of apples.’” Aport apples are distinguished by their large size, distinct smell, and their succulent nature. One of the main landmarks in Almaty, the first sight to greet visitors to the Kok-Tobe Mountain which looms over the city is a granite statue of an apple with water gushing from its core.[/vc_column_text][vc_single_image image="13860" img_size="full" el_class="scond-image" parallax_scroll="no" woodmart_inline="no"][vc_column_text woodmart_inline="no" text_larger="no"]Tokayev expressed his hope that Kazakhstan’s initiative to promote aport exports on world markets will be supported by the FAO. In 1970, there were 3.8 million aport trees in Kazakhstan, but by 1984, only 1.4 million remained. In 2012, scientific research began on the revival and rejuvenation of the variety, including the establishment of an experimental garden of aport grafted onto Sievers apple trees, where in 2023, Kazakh scholars harvested the first large fruits weighing 400-500 g. FAO's One Country One Priority Product program was launched in September 2021. It focuses on initiatives for the green development of high-value agricultural products with unique qualities and special characteristics associated with a geographic region, agricultural practices, and cultural heritage. Other countries with their own distinct products also participate in the program. For example, Turkey is represented by figs, Moldova by table grapes, and Uzbekistan by cherries.

Kazakhstan Business & Economy Kazakhstan Business & Economy

New Trade and Logistics Center Opened on Kazakhstan-China Border

On January 19th, a new international trade and logistics center began operations on the Kazakh-Chinese border near the village of Dostyk, with the aim of improving cross-border logistics infrastructure and increase the capacity of the Alakol customs post, the Ministry of Transport of Kazakhstan reported. President Kassym-Jomart Tokayev has repeatedly spoken about speeding up the passage of freight trucks across the Kazakh-Chinese border. “To fulfil the instructions given by the head of state, we are planning to open more such hubs for the processing and storage of cargo. The new transport and logistics center is the first hub on [Kazakhstan’s] eastern borders,” Vice Minister of Transport, Maksat Kaliakparov said at the opening ceremony of the new logistics center. The new logistics center will increase the capacity of the Alakol customs post from 200 to 600 trucks per day, thereby increasing the daily cargo turnover from 4,000 to 12,000 tons. In annual terms, cargo turnover will increase from one million to three million tons. “Currently, 180 vehicles pass through the Alakol customs post in one direction. This year we plan to complete the modernization of this post and increase the cargo flow to 500 vehicles,” said Zhandos Duysembiev, Chairman of the State Revenue Committee of the Ministry of Finance of Kazakhstan. The new logistics center is located on an area of 13.5 hectares, 3.5 of which are occupied by warehouse premises and infrastructure, whilst 10 hectares are allocated for the parking of freight vehicles. For the next three years, the logistics center has been transferred to the management of the state company, Nur Zholy customs services, which is wholly-owned by the State Revenue Committee.

Uzbekistan Uzbekistan Business & Economy Business & Economy

Uzbekistan Aims to Attract More Foreign Investment, Increase Exports

On January 18th, President Shavkat Mirziyoyev chaired a government meeting on priority tasks in the field of investment, export and industry for 2024, his press service has reported. It was stated at the meeting that the Uzbekistan 2030 strategy has set a goal of bringing the country's GDP to $160 billion and per capita income to $4,000 a year, which cannot be achieved solely through the domestic market; meaning there is a need to attract more foreign investment and increase exports. Over the past six years, the country has received almost $50 billion in foreign investment, with the economy growing by 6% last year. However, exports did not increase. It was stated that although Uzbekistan has enjoyed the EU’s GSP+ trade preference system and has the opportunity to export 6,200 types of goods to Europe duty-free, only 384 types of goods were exported under this system last year. To take the economy to a new level would require exports to be increased by at least 30% annually. A total of $200 million has been allocated for export lending, but that has not always translated into the production of value-added products and exports. From now on, subsidies and loans will be provided primarily to exporters entering new markets with products with high added value. Another issue discussed at the meeting was industrial production. Over the past six years, the volume of investments attracted to industry has increased seven-fold, with equipment worth $14 billion being imported over the past three years. Uzbekistan has created 24 special economic zones (SEZs), where land is allocated in a simplified manner and tax benefits are provided by the state. However, these opportunities are not being fully utilized. For instance, 800 hectares of land with ready-made infrastructure is still empty in the SEZs. Therefore, it was decided that 240 hectares of land in SEZs in the Bukhara, Navoi, and Tashkent regions will be outsourced to foreign companies.

Kazakhstan Business & Economy Kazakhstan Business & Economy Features Kazakhstan Featurees

President Tokayev Calls on Italian Businesses to Invest in Kazakhstan

The President of Kazakhstan, Kassym-Jomart Tokayev on January 18th paid an official visit to Italy, holding talks with Prime Minister, Giorgia Meloni. During the discussion, Tokayev stated that Kazakhstan and Italy maintain a wide-ranging political dialogue and have established close economic cooperation, as well as fruitful cultural and humanitarian ties, his press service reported. “We are proud to be Italy's main partner in Central Asia. Our economic cooperation is developing dynamically and has enormous potential for further growth,” Tokayev said. Italy is among the largest investors in Kazakhstan’s economy, with trade turnover between the two countries amounting to approximately $15 billion, whilst direct foreign investment from Italy has reached $7.3 billion. More than 300 Italian companies currently operate in Kazakhstan, including such large investors as ENI, SDF Group, PetroValves, Maire Tecnimont, IVECO, and Tenaris. Meloni confirmed Italy’s commitment to developing contacts with Kazakhstan, stating that “We consider your visit an excellent opportunity to further strengthen Kazakh-Italian relations.” During the talks, the leaders focused on deepening cooperation in the spheres of trade, economy, investment, energy, transport and logistics, agriculture, culture, humanitarian, education spheres, and green energy. In their joint statement, Tokayev and Meloni noted the launch of major transport and connectivity initiatives in Central Asia, particularly those related to the development of the Trans-Caspian International Transport Route. They also emphasized the importance of holding the Central Asia + Italy format meeting in Rome later in 2024, and in Kazakhstan in 2025. As part of the visit, an agreement was signed between the Kazakh Samruk-Kazyna Fund and the Italian group of companies, Cassa Depositi i Prestiti on the creation of a joint investment fund and financing in manufacturing, energy and logistics, as well as a joint final investment decision between the Kazakh national oil and gas company, KazMunayGas, and the Italian company, ENI, on a joint project for the construction of a hybrid power plant (wind and solar) with a total capacity of 247 MW in Kazakhstan. On the same day, President Tokayev attended the Investment Roundtable, Kazakhstan-Italy, in Rome. Speaking to representatives of the Italian business community, Tokayev stated that the energy sector is the main area of economic cooperation between the two countries. “More than 80% of Kazakhstan’s oil is exported to Europe, which provides for about 10% of the EU’s needs. I would like to express my gratitude to Italy, a long-time and reliable energy partner of Kazakhstan. We highly appreciate the contribution of the Italian flagship company ENI to the economy of Kazakhstan. Kazakhstan provides ample opportunities in the field of oil and gas exploration. We implement the best global practices to discover significant deposits. We also invite Italian companies to participate in servicing the oil and gas industry,” the President said. Tokayev also called on Italian businesses to cooperate in the extraction and processing of critical raw materials. “According to World Bank estimates, there are more than 5,000 undiscovered deposits in Kazakhstan worth over 46 trillion dollars. Today, we already produce 19 of the 34 most important...

Central Asia Kazakhstan Business & Economy Kazakhstan Business & Economy

Kaspi.kz Announces Plans for NASDAQ IPO

Kaspi.kz, the prominent financial and technological holding, has revealed its decision to launch an Initial Public Offering (IPO) on the renowned NASDAQ exchange in the United States. Representatives of the holding shared their intention to offer nine million depositary shares on the exchange, with each equivalent to one ordinary share in the company. The pricing of these shares will be determined through the bookbuilding process and the closing price of the global depositary receipt (GDR) on the day of the offering. Kaspi’s shares are currently trading at $98.10 on the London Stock Exchange, and If this valuation is replicated funds raised from the IPO are estimated to reach $873,000,000, placing the market value of Kaspi.kz at $18.4 billion. The expected determination of the IPO price is set for the end of the application collection, during the night of January 18th to 19th, Astana time. Kaspi.kz initially expressed its intention to partake in the NASDAQ IPO in October of the previous year, formally filing the application in December. The holding aims to list American depositary shares (ADS) on the Nasdaq Global Select Market (Nasdaq) under the symbol 'KSPI.' Kaspi.kz shares are already traded on the London Stock Exchange (LSE), Kazakhstan Stock Exchange (KASE), and Astana International Stock Exchange (AIX). The underwriters for the U.S. placement will be Morgan Stanley, JP Morgan, and Citigroup. Kaspi.kz operates across three platforms: payments, marketplace, and fintech, offering a range of services such as online payments, peer-to-peer transfers, personal funds management, and online shopping. The group comprises Kaspi Shop LLP, Kaspi Bank LLP, Kaspi Pay LLP, and Kaspi Travel LLP. As of January 1st, 2024, major shareholders include Baring Vostok fund (26.13%), Vyacheslav Kim (22.27%), and Mikhail Lomtadze (23.42%).

Kazakhstan Business & Economy Kazakhstan Business & Economy

Russia Reopens Market for Kazakhstan’s Livestock Products

As of January 15th, the Russian Federation has lifted restrictions on the import of livestock products from Kazakhstan. The decision was made following negotiations last December between the Ministers of Agriculture of Kazakhstan and the Russian Federation, Aidarbek Saparov and Dmitry Patrushev, the Ministry of Agriculture of Kazakhstan has reported. “This is an important step for the agricultural industries of Kazakhstan and Russia, which helps strengthen trade and economic ties between our countries,” Saparov stated. The import of Kazakh livestock products to Russia was suspended in January 2022 due to veterinary problems in several regions of Kazakhstan. After a two-year break, the Russian market has reopened to suppliers of livestock products from those regions of Kazakhstan where the vaccination of cattle has been confirmed by the World Organization for Animal Health. In other regions, the vaccination campaign is still ongoing. Saparov pointed to the fact that trade turnover between the two countries is uneven, with imports to Kazakhstan from Russia far exceeding exports. Therefore, Saparov focused on the potential for increasing the supply of Kazakh products to the Russian market. In other news, as Russia is currently experiencing an acute shortage of chicken eggs, the Russian side has asked Kazakhstan to increase the supply of eggs. The issue was discussed on January 17th by the Deputy Prime Ministers of Kazakhstan and Russia, Serik Zhumangarin and Alexey Overchuk. Zhumangarin instructed the Ministry of Agriculture to urgently consider this issue and find ways of increasing the supply to border regions of the Russian Federation. In 2022, Kazakhstan produced more than five billion chicken eggs, 102% of the population’s needs. From January-November 2023, 4.9 billion eggs were produced. During that period, Kazakhstan exported 186.6 million eggs — 114 million to Afghanistan, 70 million to Kyrgyzstan, and 2.6 million to Russia.