Features - The Times Of Central Asia

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Kazakhstan and Uzbekistan to Bring Mutual Trade to $10 Billion

On November 9th, Alikhan Smailov, the Prime Minister of Kazakhstan, made an official visit to Tashkent, Uzbekistan, for the 16th summit of the Economic Cooperation Organization. Prior to the event, he met with the President of Uzbekistan, Shavkat Mirziyoyev. During their meeting, Smailov extended warm greetings from the President of Kazakhstan, Kassym-Jomart Tokayev, and highlighted the strong strategic partnership between the two nations, based on trust and mutual understanding3. Smailov pointed out that "Uzbekistan is one of the largest trade partners of Kazakhstan. Our countries account for about 70% of all trade in Central Asia. At the end of last year, trade turnover increased by 30%, and for the first time reached the milestone of $5 billion. We are actively working to bring mutual trade to $10 billion”. Mirziyoyev reciprocated the sentiment, noting that the strategic agreements between Kazakhstan and Uzbekistan were being systematically realized across various sectors, including trade, transportation, and water management5. He added, “All issues we have are moving forward; I think there is not a single unresolved issue. In terms of trade, the projects we have agreed on with the President of Kazakhstan will help us reach new frontiers”. In line with these discussions, Arman Shakkaliev, Kazakhstan’s Minister of Trade and Integration, and Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry and Trade, signed an agreement to regulate the activities of the International Centre for Industrial Cooperation “Central Asia”7. This center, set to be established on the border of the two countries, will house production sites, warehouses for goods and equipment storage, and transport infrastructure. The aim is to expedite cargo delivery and reduce logistics costs. The Industrial Cooperation Centre is expected to stimulate the creation of new production facilities and jobs, aid in the processing of agricultural and industrial products, and provide logistics services for goods transportation. It's hoped that the centre will enhance transport efficiency and expedite customs clearance processes. The signing of this agreement is a practical step towards the realization of the project. The launch of the Industrial Cooperation Centre is poised to serve as a catalyst for the further development of international trade and economic integration between Kazakhstan and Uzbekistan. It's also projected to contribute to increasing bilateral trade turnover to up to $10 billion.

Promoting Sustainable Development in Central Asia: Key Highlights from the Eurasian Development Bank’s Roundtable

According to a press release issued by the Eurasian Development Bank (EDB), on November 16th, 2023, Almaty, Kazakhstan, served as the venue for a critical roundtable hosted by the EDB, titled "Promoting Sustainable Development in Central Asia". This gathering saw the participation of representatives from a wide range of international organizations and multilateral development banks. Attendees included the likes of the World Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, FAO, UNIDO, UNEP, ESCAP, UNDP, the World Health Organisation, the International Fund for Saving the Aral Sea, and CICA. The agenda was packed with discussions revolving around irrigation, water challenges, environmental and social standards of international financial institutions, and case studies that showcased collaborations in project implementation12. The EDB's latest report, "Efficient Irrigation and Water Conservation in Central Asia", was introduced during the roundtable's first session. Nikolai Podguzov, Chairman of the EDB Management Board, underscored the essential interrelationship between water, food, and energy in Central Asia. He declared the development of the region’s water and energy resources as a strategic priority for the EDB. He also expressed concerns over an impending water deficit in Central Asia within the next five years, urging for collective action supported by multilateral development banks3. Tatiana Proskuryakova, the Regional Director for Central Asia at the World Bank, also spoke at the event. She emphasized the importance of sustainable development in Central Asia to international organizations and multilateral financial institutions. She revealed that the World Bank has allocated approximately a quarter of its $12 billion investment portfolio in Central Asia to water, energy, and environmental sectors. This proportion is expected to rise to almost half in the near future4. Following this, Evgeny Vinokurov, EDB Chief Economist, presented the study "Efficient Irrigation and Water Conservation in Central Asia". He proposed a ten-step solution to address the prevalent issues. The steps include establishing an International Water and Energy Consortium; fostering collaboration among multilateral banks; creating a regional cluster to produce irrigation equipment; consolidating efforts to strengthen cooperation with Afghanistan; using PPP instruments; instituting proper water accounting; gradually integrating investment charges into the tariff structure; improving land conditions; implementing digital technology, and leveraging state-of-the-art irrigation technology and laser levelling.

President Tokayev’s Republic Day Speech Marks Thirty-Three Years of Independent Kazakhstan

In late October, Kazakhstan’s President Kassym-Jomart Tokayev delivered a speech on the eve of the country’s Republic Day holiday. While casting a view back to the declaration of independence in 1990, it was a multi-pronged evaluation of the events in the country’s current context. This approach allowed Tokayev to wear two hats – one as the head of state, which he has worn since 2019, and one as a professionally-trained political scientist and diplomat. Five main themes stood out in the President’s speech: The independence as the highest national value; the focus on a balanced, peaceful and co-operative foreign policy; the irreversibility of the recent progressive reforms which have strengthened rule of law and shifted the governance culture; the crucial role of the youth in shaping Kazakhstan’s future, and finally, the nation’s commitment to honoring the honest and dedicated work of its citizens. The President’s evaluation of his first theme, underlining the importance of the country’s independence, included a roll-call of more than a dozen unsung heroes of the early 1990s, who gave birth to the new state. “This declaration of independence,” he affirmed, “met the aspirations and expectations of the people and was adopted thanks to the wisdom and prudence of the country's patriots,” whose “courage and determination, shown at a critical hour can be regarded as true heroism.” While Tokayev did not include himself in that list, likely out of modesty, everyone listening to the speech knew that after the dissolution of the Soviet Union, he became the deputy foreign minister of a newly independent Kazakhstan in 1992. He stayed in that post for the better part of a decade before becoming deputy prime minister and then prime minister in 1999. From 2002 to 2007, he represented the country’s foreign ministry and served as state secretary. Thereafter, he variously spent two years as Director-General of the United Nations Geneva Office, and served as chairman of Kazakhstan’s Senate, until 2019 when he became President. Secondly, President Tokayev underlined that Kazakhstan’s balanced, peaceful and co-operative foreign policy was central to the nation’s strategy to consolidate and preserve its independence by safeguarding peace and harmony beyond its borders. The President’s message underscored the significance of Kazakhstan’s “precious legacy” of independence. This represents, he pointed out, the latest in a historical series of Kazakh states stretching back to Turkic Khaganates, the Golden Horde and the Kazakh Khanate. However, as Tokayev stressed, the present state of Kazakhstan represents not only a historical achievement but also an ongoing commitment to the future that shapes the country’s diplomatic strategy and its approach to global interactions. President Tokayev’s Republic Day speech also articulated the imperative of “zero tolerance” towards any manifestations of radicalism, extremism, legal nihilism, and everyday vandalism. These phenomena cannot be allowed because the maintenance of social stability and unity is the foundational domestic requirement for upholding sovereignty and statehood. His strict position on combatting these destructive forces is part and parcel of the government’s commitment ensure that the rule of law is respected...

President Tokayev Puts Kazakhstan at the Centre of International Diplomacy

In the first half of November, Kazakhstan's President Kassym-Jomart Tokayev received a series of global leaders who came to Kazakhstan for high-level meetings. French President Emmanuel Macron arrived at the beginning of the month for two days of intensive talks prior to signing significant agreements. Immediately after, the heads of state of the members of the Organisation of Turkic States attended the organisation's tenth anniversary summit meeting in Astana, hosted by President Kassym-Jomart Tokayev. A few days later, Russia's President Vladimir Putin, accompanied by his foreign minister Sergey Lavrov, came to Kazakhstan for wide-ranging bilateral consultations. This busy itinerary reinforces Kazakhstan’s role a pivotal player in global geopolitics. The country's diplomatic activity in recent years has become key to maintaining a delicate balance within Central Asia. Kazakhstan has also played a lodestar role in guiding the region on how to balance the increasingly fractured international system, reflecting both the country's geopolitical realities and its greater ambitions on the international stage. In this environment, Kazakhstan's President Tokayev has skilfully navigated relationships with regional players and global powerhouses. Macron’s first stop in Central Asia French President Macron's visit to Kazakhstan in early November was the first stop in his strategic tour of Central Asia. During his meeting with President Tokayev, Macron signed several important agreements concerning crucial sectors for future development and bilateral co-operation, including critical minerals, energy, pharmaceuticals and aerospace. These agreements signify France's realisation that, amidst Russia and China’s increasing influence in this region, France must strengthen its own relations with Central Asian countries. The agreements signed are not only economically substantial but also strategically astute. France is the fifth-biggest foreign investor in Kazakhstan, with existing ties in the energy and uranium mining sectors. France’s energy giant TotalEnergies has been long involved in the offshore Kashagan oilfield, while French company Orano, whose leader was included in Macron's delegation, runs a uranium mine in Kazakhstan. French energy company EDF is in contention for a contract to build Kazakhstan’s first nuclear power station. All these projects underscore France's strategic interest in its long-standing partnership with the country. As such, President Macron's visit is not merely a diplomatic courtesy but a demonstration of France's recognition of Kazakhstan's growing importance in international affairs. It also signifies a global shift of geopolitical focus towards Central Asia, where Kazakhstan stands as the leading country. Bilateral relations between the two countries are poised to develop robustly, exerting a significant influence on the region's economic and political dynamics. President Tokayev hosted a successful OTS summit The tenth anniversary summit of the Organisation of Turkic States (OTS) in Astana was an important moment in the history of Turkic co-operation. President Tokayev as the host (and representing Kazakhstan as a key OTS member) played a central role in shaping the summit's agenda and objectives. Two principal concerns of the gathering were to boost economic co-operation and diversify transport corridors. This emphasis aligns with the OTS members' economic development strategies to increase exports. Special attention was given to ways to support...

President Tokayev Meets with UN Secretary General Guterres

Several days ago, Kazakhstan's President Kassym-Jomart Tokayev addressed the opening session of the United Nations General Assembly in New York. He also met with the UN Secretary General Antonio Guterres, who called his country "a privileged partner that is a pillar of multilateralism, a promoter and defender of peace at the global level." Guterres in response, acclaimed Kazakhstan's continuing cooperation with the UN, particularly its focus "on strengthening peace and security, achieving the Sustainable Development Goals and ensuring human rights." However, Tokayev's initiatives go still deeper than that. In a rapidly evolving global landscape, President Tokayev has articulated a series of policy proposals that not only reaffirm Kazakhstan's traditional commitment to established international norms but also introduce innovative solutions to contemporary challenges. It is particularly the newer proposals that resonate deeply with the principles of the United Nations and the broader ethos of multilateralism. "A privileged partner that is a pillar of multilateralism, a promoter and defender of peace at the global level“ -General Antonio Guterres, UN Secretary on Kazakhstan Historically, Kazakhstan has been a staunch supporter of the principles enshrined in the UN Charter, demonstrating its commitment to global peace, security and co-operation. Tokayev, a diplomatic by training, has always favoured diplomatic solutions based on the UN Charter and universally recognized international law. The crisis in Ukraine has further underscored Kazakhstan's emphasis on these principles and its belief in dialogue as the cornerstone of international relations. On the environmental front, Tokayev reaffirmed Kazakhstan's commitment to the Paris Climate Agreement and its emphasis on Climate-Positive Actions. These include investments in green-energy jobs and ending fossil fuel subsidies. He also offered new initiatives such as the Just Energy Transition Partnership (JETP) and the Project Office for Central Asia on Climate Change and Green Energy. Such progressive solutions aim to address the dual challenges of facilitating energy transition and bolstering climate resilience. The upcoming Regional Climate Summit slated for 2026 particularly underscores Kazakhstan's proactive leadership in environmental diplomacy. It showcases the country's alignment with the UN's Sustainable Development Goals (SDGs) as well as its dedication to multilateral diplomacy and consensus. Regarding trade and development, Kazakhstan's proposals at the UN play to its strength as a dynamic economy in the region. The best example of this is the proposal to establish a UN Regional Centre for SDGs for Central Asia and Afghanistan in Almaty. With its significant agricultural production, Tokayev also suggested that Kazakhstan should act as a regional food supply hub. This proposition addresses the pressing issue of food security, thus resonating with the UN's agenda. Kazakhstan's security and disarmament proposals are particularly noteworthy. While the country has always been a proponent of the Treaty on the Prohibition of nuclear weapons, Tokayev recommended a new Strategic Plan to aim for the total renunciation of nuclear weapons by 2045. This vision is in line with the UN's disarmament goals moves toward limiting nuclear proliferation. President Tokayev also put forth the idea to establish an International Agency for Biological Safety to be tasked with...

Momentum builds for the Game-changing Trans-Caspian International Trade Route

The landscape of global trade is quickly evolving as international supply chains reconfigure themselves following the retreat of globalisation, driven by the deepening bifurcation of the international arena between U.S.-led and China-led subsystems. Such a time of rapid change calls for future-oriented leadership informed by strategic foresight and diplomatic acumen. This is particularly true for countries that may find themselves in delicate geo-economic positions. Responding to these challenges, Kazakhstan's President Kassym-Jomart Tokayev has positioned his country as a pivotal player on the Trans-Caspian International Trade Route (TITR), a project reshaping trade dynamics between Asia and Europe through a network of railways and seaways in order to facilitate faster and more efficient trade. Successful implementation of the TITR will bring significant economic benefits to Kazakhstan, boosting trade and attracting foreign investment. It will open new avenues for economic growth, create jobs, and foster innovation. The TITR will make Kazakhstan the most attractive destination for businesses seeking to install themselves in Central Asia so as to tap into the vast Asian markets. The TITR also has strategic geopolitical significance. It is not a programmatic part of the China's Belt and Road Initiative (BRI), which concentrates on a "northern" route through Russia and a "southern" maritime route. The new momentum behind the TITR comes at a time when the northern route suffers from the economic fallout of the Russia-Ukraine conflict. Beyond economics, the TITR has already elevated Kazakhstan's political stature. The European Union (EU) and European Bank for Reconstruction and Development (EBRD) have formally recognised this shift. At a recent joint conference in Almaty, with wide participation from many Central Asian players, these two entities selected what they call the "Central Trans-Caspian Network", running through southern Kazakhstan, as the most sustainable of three container-transit options for linking Central Asia and Europe. The EU and EBRD foresee a seven-fold increase in transit volumes from 18,000 "twenty-foot equivalent units" (TEUs, a standard industrial measure) to 130,000 TEUs by 2040. It is hardly a coincidence that this date coincides with the "Turkic World Vision" statement adopted by the Organisation of Turkic States at their 2019 summit in Baku. The EU and EBRD’s study is country-specific and proposes seven soft connectivity measures and 32 hard infrastructure investment needs across five Central Asian countries. The study provides for such practical measures as digitalisation of transport documents, improvement of interoperability, enhancement of the public-private partnership (PPP) environment, facilitation of trade, liberalisation of markets, improvements to tariff-setting mechanisms and the increase of funding for asset maintenance. Country-specific priority investment needs for Kazakhstan include Almaty-Khorgos and Aktau-Beyneu railway double-tracking, expansion of several terminals and railway stations, and Aktau port capacity expansion, amongst other projects. The involvement of the EBRD in this study also represents a "seal of approval" for international financial institutions to participate in building out the corridor. The detailed EU-EBRD work identifies specific projects in specific geographical regions and already represents a preliminary feasibility study for them. It outlines key actions for the development of the network and its...