Business & Economy - The Times Of Central Asia

Viewing results 601 - 606 of 1122

IMF: Uzbekistan’s Foreign Debt to Decrease by 10% in 2029

According to a new report issued by the International Monetary Fund, in recent years and against uncertainties from the pandemic and Russia’s war in Ukraine, Uzbekistan's rapid growth in economy is set to continue in tandem with a significant decline in poverty. Despite a slowdown in the development of trade partners and the removal of the fiscal stimulus in 2023, a strong economic growth is predicted for this year and supported in the medium term, by the completion of budgetary consolidation, ongoing structural reforms, and continuing capital inflows, demonstrates the government’s commitment to promoting market-oriented reforms to further Uzbekistan’s economic development. Challenges still remain, however, in the large state footprint in the economy and last year’s expansionary fiscal policy, which the authorities determined to persevere in their reform efforts, must address to advance sustainable and inclusive growth. The monetary policy which has reduced inflation must continue until it reaches the Central Bank of Uzbekistan's target. Sustaining a high real policy rate, tight fiscal and macro-prudential policies, and supportive structural reforms would gradually reduce inflation to the target by the end of 2027 and the CBU should stand ready to increase its policy rate if the energy price reform leads to broader price pressures and raises inflation expectations. The government should continue efforts to accelerate the restructuring and privatization of state enterprises, eliminate preferences for state-owned enterprises and unbundle large enterprises to increase competition and improve the business environment. The authorities are accelerating efforts for WTO accession and undertaking measures to bolster external competitiveness and export diversification; opening markets and reducing monopolies would boost growth and help reduce inflation. According to the IMF’s analysis, it will reach 60.1% of GDP at the end of 2024, and the country's total external debt is expected to decrease to 51% of GDP by 2029. Similarly, from 33% of GDP at the end of 2024, government-guaranteed external debt is likely to decline to 27% by 2029. Several factors contribute to these positive statistics. The government of Uzbekistan aims to limit the budget deficit to 3% of GDP by introducing annual limits on the budget deficit and new debts. In addition, the 2023 public debt law limits state-guaranteed debt to 60% of GDP, with proposals for debt reduction if it reaches 50%. As stated in the report, the authorities emphasized their commitment to maintaining a moderate level of debt and noted that the government’s goal of reducing and maintaining the medium-term fiscal deficit at 3% of GDP would send purchasing power parity and external borrowing as a share of GDP downwards

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

Kazakhstan, Iran, Turkmenistan and Russia to Develop North-South Transport Corridor

On July 19 - 20, the Ministry of Transport of Kazakhstan organized its first meeting on the North-South transit and trade corridor in Aktau attended by delegations from Azerbaijan, Armenia, Afghanistan, Kazakhstan, Russia, Belarus, Turkmenistan, UAE, Iran, Iraq, Oman, and Uzbekistan. By connecting Russia and Belarus to ports in the Persian Gulf, with further access to India, the North-South transport corridor will broaden prospects for trade and become a key engine for Kazakhstan's economic development. During the meeting, Kazakhstan, Iran, Turkmenistan, and Russia signed a roadmap for the development of the eastern route of the North-South transport corridor from 2024 to 2025, aimed to increase the corridor's throughput to 15 million tons of cargo annually by 2027 and 20 million tons by 2030. Kazakh Minister of Transport Marat Karabaev commented: “Kazakhstan intends to continue its active participation in the development of the Eastern branch of the North-South corridor, which has the highest potential for growth in cargo flows until 2030 and appears to be the safest and shortest transit route to the Indian Ocean. Therefore, it is necessary to begin the practical implementation of the Roadmap signed today for the synchronous development of the eastern route of the North-South corridor passing through the territories of Kazakhstan, Russia, Turkmenistan, and Iran.”

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

Kazakhstan Ends Litigation With Moldovan Businessmen

After 15 years of litigation worldwide, a long-standing dispute between Kazakhstan and Anatol and Gabriel Stati, businessmen from Moldova, has ended. The Ministry of Justice of Kazakhstan has reported that the government, the National Bank of Kazakhstan, and representatives of Stati have signed a framework agreement. The parties, with the support and consent of leading creditors of Tristan Oil, have concluded a legally binding framework agreement on a peaceful and mutually acceptable resolution of the long dispute over oil and gas assets in Kazakhstan. As reported by the Ministry of Justice, the signatories have reached an agreement on mutually favorable terms that will lead to the termination of all legal proceedings and stop ongoing lawsuits in all jurisdictions. The specific terms of the agreement remain confidential. Daniel Chapman, CEO of Argentem Creek Partners, said, "We support the framework agreement and applaud President Kassym-Jomart Tokayev's decision to build a 'Just Kazakhstan' as part of his admirable reforms. The settlement of this dispute demonstrates Kazakhstan's compliance with international treaty obligations, which opens the door to increased investment and enhances its economic growth potential. We welcome a new era for Kazakhstan.” Argentem Creek Partners is the investment manager of specific funds that became lenders to Tristan Oil Limited, the investment vehicle of the Stati parties. According to Justice Minister Azamat Yeskarayev, "This agreement is made with the public interest in mind and does not involve the expenditure of public funds. We believe that this step will positively impact the attraction of new investments to our country and the economy's growth.” The legal battle between Stati and entities in Kazakhstan started in 2010. Lawsuits have been considered in the Netherlands, Belgium, Luxembourg, Sweden, the UK, and the United States. At one point, the assets of the National Fund of Kazakhstan were even frozen. The episode began in October 2008, when then President of Moldova,Vladimir Voronin, complained to Nursultan Nazarbayev that businessman Anatol Stati was using money received in Kazakhstan to sponsor the opposition in Moldova. Shortly thereafter, Stati's relationship with the authorities in Kazakhstan sharply deteriorated. A series of inspections initiated by state began, during which the unlicensed use of trunk pipelines, tax arrears, violations of license and contractual conditions under subsoil use contracts and other issues were discovered. According to experts familiar with the case against Stati, by that time the Moldovan businessmen had already decided to leave Kazakhstan and were preparing for these inspections, which would result in the termination of contracts. Therefore, by November 2009, they had amassed a lot of materials, which, in the hands of their lawyers could be used to argue that Kazakhstan was in violation of the regime of fair and equal treatment of investors under the Energy Charter Treaty. On July 21, 2010, the Ministry of Oil and Gas of Kazakhstan terminated the subsoil use contracts of the Stati companies Tolkynneftegaz LLP and Kazpolmunai LLP due to non-fulfillment of license and contractual terms. Five days after receiving the termination notice, on July 26, 2010, Stati filed...

Central Asia healthcare Kazakhstan Local Politics International Affairs Business & Economy Kazakhstan International Affairs Kazakhstan

Chinese Company Opens Genetic Laboratory in Astana

Kazakh Invest has reported that the opening ceremony of the Astana Genetic Center laboratory of the Chinese company BGI Group took place in Kazakhstan’s capital, Astana, on July 19. BGI Group, a world leader in genome research of living organisms, has over a hundred joint laboratories, medical centers, and production facilities in more than 30 countries. The opening ceremony was attended by Yin Ye, CEO of BGI Group; Kunsulu Zakariya, Advisor to the President of Kazakhstan on Science and Innovation; Akmaral Alnazarova, Kazakhstan’s Minister of Health; and Saule Sabyr, First Secretary of the Investment Committee of the Kazakh Ministry of Foreign Affairs. BGI Group opened the laboratory jointly with a local partner, scientific and production company BIOGEN Technopark LLP. The laboratory will conduct various molecular genetic tests related to reproductive health and diagnosis of hereditary and oncological diseases. The Astana Genetic Center is the only full-cycle laboratory in Kazakhstan capable of conducting all stages of genetic research without taking biomaterial abroad.

Central Asia International Affairs Business & Economy

Russia Ups Ban on Migrant Employment

Heads of Russia's Chelyabinsk and Krasnodar regions have announced that this year, migrants are to be banned from working in over a dozen sectors. In the Chelyabinsk region migrant workers have already been banned from driving cabs and buses. Restrictions will now extend to an additional 19 sectors, including the sale and repair of cars and motorcycles, providing financial services and in particular insurance and pensions, engaging in recruitment, organizing gambling and lotteries, and repairing computers and household appliances. Migrants will also be prohibited from working in trade, hospitality, catering, and agriculture. They will be unable to work as lawyers, translators, accountants, veterinarians, and fitness trainers, nor conduct creative activities or organize entertainment events. From September 22, citizens of other countries will be prohibited from working as household assistants and employment in agriculture, manufacturing, culture, and the hospitality sector in the Krasnodar region. Earlier bans in the region applied to trade, catering, education, health care, sports, medical services, courier services, and passenger transportation, including cabs. Employers violating the rules will either be fined up to 1 million roubles for each illegally employed migrant or have their business suspended for up to 90 days. In the Tomsk region, immigrants were previously banned from working in six areas: cabs, hotels, catering, security, education, and sports. In July, it was proposed at the federal level to introduce a ban on migrants working in cab and delivery services across Russia.

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

Kazakhstan to Export Meat and Live Cattle to China

On July 17, Kazakhstan's minister for agriculture Aidarbek Saparov met with the heads of the Chinese companies CITIC Construction and Beijing Capital Agro. Following this meeting, Kazakh agro-industrial companies have signed three contracts with their Chinese counterparts to export meat and live cattle to China for $75 million. Beijing Capital Agro intends to invest more than $600 million in Kazakhstan’s beef production by 2030. As part of the project, cattle feedlots will be created in Kazakhstan. Emphasizing the importance of the Kazakh-Chinese partnership in agriculture, Saparov said: “China is one of our three largest agricultural trading partners. In 2023, the trade turnover of agricultural products between Kazakhstan and China amounted to $1.3 billion, 67% more than in 2022. Exports of Kazakh agricultural products to China have doubled and reached $1 billion. Grain and oilseeds account for most of the export volume to China, but we see a big potential for increasing export volumes with livestock products.” Kazakhstan has all the conditions for the production of environmentally friendly meat products. This year, the area under fodder crops has been expanded by 314,000 hectares. This contributes to the development of livestock farming, including poultry farming and dairy and beef cattle breeding. In February 2024, China's government lifted restrictions on importing meat products from Kazakhstan. This allowed for the resumption of the export of meat from Kazakhstan, with the first batch of beef exported to China in June.