Business & Economy - The Times Of Central Asia

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Central Asia – EU Political and Security Cooperation

On June 5, Brussels hosted the 11th round of the annual High-Level Political and Security Dialogue between the European Union and Central Asia. Chaired by Enrique Mora, Deputy Secretary-General for Political Affairs of the European External Action Service, the meeting was attended by Deputy Ministers of Foreign Affairs of Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. As reported by Kazakhstan’s Foreign Ministry, the agenda comprised the implementation of the Joint Roadmap for Deepening Ties between Central Asia and the EU, the dynamics of transport, trade, economic, energy and climate relations, and common security challenges regarding Afghanistan. Roman Vassilenko, Deputy Minister of Foreign Affairs of Kazakhstan, presented several initiatives relating to energy, trade and water resources management aimed at enhancing interregional cooperation with the EU. Outlining the priorities of Kazakhstan’s chairmanship of the International Fund for Saving the Aral Sea (IFAS), he highlighted a program for continuous monitoring of the basin ecosystem. To be implemented over the next three years, the initiative will provide a mechanism for long-term intraregional cooperation on the Aral issue. Vassilenko also reiterated the need for Central Asian countries to synchronize efforts in the fields of effective irrigation, the operation of water and energy facilities, and the implementation of environmental measures. The European External Action Service reported that in turn, the EU had reaffirmed its willingness to support efforts to intensify its cooperation on security with Central Asia, especially in areas concerning management of water-related challenges, energy and climate change, and connectivity. The High-Level Political and Security Dialogue was the latest conference to be held within the context of increased engagement between Central Asia and the European Union. Central Asia’s Heads of State and the President of the European Council had previously met on 27 October 2022 and 2 June 2023. At a further EU-Central Asia Ministerial meeting on 23 October 2023 in Luxembourg, the 27 EU Foreign Ministers adopted a Joint Roadmap for Deepening Ties between the EU and Central Asia with concrete actions for strengthening cooperation, most notably regarding security. The EU and Central Asian countries are now planning the first-ever EU-Central Asia Summit for later this year.

Central Asia Turkmenistan Turkmenistan Local Politics Local Politics Turkmenistan Business & Economy Business & Economy

Turkmenistan to Ditch Forced Labor in Cotton Harvesting

According to reports published by Turkmen.news, the government of Turkmenistan and the International Labor Organization (ILO) have adopted a roadmap for cooperation for 2024-2025, The document details specific steps to prevent the use of forced labor by adults and children during the cotton harvest. It also provides mechanisms for hired labourers to lodge complaints regarding coercion or extortion, and sets a minimum wage for pickers. If all of the conditions and measures outlined in the roadmap are implemented, significant progress will be made towards eradicating forced labor in Turkmenistan. The key aim is the legislation of a presidential decree on measures for organized cotton harvesting to eliminate the use of forced or compulsory labor. It is expected that a system of prohibitions and penalties will be introduced regarding the practice of forced mobilization or extortion. The roadmap stresses the need for a simple and easily accessible means whereby complaints of coercion can be anonymously filed to prevent officials retaliating against the complainant. The Ministry of Foreign Affairs, the Supreme Court, the Prosecutor General's Office, the Interior Ministry, the Ministry of Justice, the Ombudsman Institute, and the Ministry of Labor and Social Security are tasked with developing the document's recommendations. “Overall, if the measures in the roadmap are implemented, it will be a big step forward. Although the government has not publicly recognized the problem, such a detailed plan is encouraging,” said Ruslan Myatiev, editor of Turkmen.news.

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

Erdogan: Turkmenistan Gas Exports to Turkey “Only a Matter of Time”

Turkey's president Recep Tayyip Erdogan has said that it is "only a matter of time" before gas from Turkmenistan is exported to Turkey and Europe through the expanded Trans-Anatolian Gas Pipeline (TANAP) project. “Our long-standing cooperation, crowned with infrastructure investments such as Baku-Tbilisi-Ceyhan, Baku-Tbilisi-Erzurum pipelines, and TANAP, has not only benefited Turkey and Azerbaijan but has also made significant contributions to the energy security of the region and Europe,” Erdogan said at the International Caspian Oil and Gas Exhibition in Azerbaijan's capital of Baku. Two gas routes from Turkmenistan to Azerbaijan are being reported. The Turkish Daily Sabah reports that this plan involves transporting gas by sea on gas carrying ships. Upstream, citing experts, reports that SOCAR will start negotiations with Turkmenistan on the resumption of gas supply through Iran under the exchange scheme. On June 4th, Turkey’s Botas Petroleum Pipeline and Azerbaijan’s SOCAR also signed agreements to promote an intergovernmental deal calling for cooperation on natural gas issues reached in May. In one of the five signed contracts, Botash and SOCAR must jointly organize the natural gas supply from Turkmenistan to Azerbaijan and then through Turkey to other countries.

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

Turkmenistan Hosts European Exhibition on Energy-Saving

An ambitious and multi-faceted traveling exhibition “Transition to Renewable Energy Sources—Energy of the Future” has just opened at the Technology Center of the Academy of Sciences of Turkmenistan. As reported by “Turkmenistan: Golden Age”, the exhibition, curated by the Embassy of the Federal Republic of Germany and the German Society for International Cooperation (GIZ), presents the various means and measures developed by European countries to save energy. Divided into five sections, the exhibition provides a hands-on exploration of energy efficiency practices through interactive touch panels and by immersing themselves in virtual reality, visitors can envisage the world in the future. The exhibition highlights the multilevel aspects, challenges, and potential of the global energy transition from society, politics, economics, and science perspectives, and during its tour, aims to encourage widespread dialogue and an exchange of knowledge and views on decarbonization and global energy transition. Regarding the tour, project manager Yasmine Deren, stated, “This exhibition started three years ago and has already visited Europe, Asia, the Gulf States and in Central Asia, Tajikistan and Uzbekistan. We are happy that the exhibition is now being shown in Ashgabat, Turkmenistan and afterwards, Kyrgyzstan and Kazakhstan." The exhibition will be displayed Monday - Saturday in Ashgabat until 25 June and thereafter, in Turkmenistan's city of Mary.

Central Asia Tajikistan Local Politics Tajikistan Business Economy Tajikistan Local Politics Business & Economy

Farms in Tajikistan Being Abandoned Due to Lack of Money

Farmers in Tajikistan are being forced to abandon their farms, explaining that there is no way to earn a living from them. One farmer in the Sino Dekhkan farm in the Vosei district said he was forced to stop operating because of financial problems. “I used to take a loan from Amonatbank to run my business. But they don't give loans anymore. They say you are already old; you will die, and who will pay you back? The land has been standing for two years. It's a cotton field. I haven't found a single somoni for sowing,” the man said. Another problem, farmers say, is the shortage of irrigation water, and the situation only worsens yearly. “I have not been on my land for three years. Because there is no water in the canal. The Nazar State Farm, in Kukhnashahr, takes all the water, and we don't have a drop left,” complained a resident of Kamolobod village in Kulyab. Farmers in Sughd region, adjacent to Dushanbe, face the same problem. Some farmers complain that the authorities force them to plant crops to their detriment. As a result, they say, they not only do not make a profit but also remain at a disadvantage. Economist Foziljon Fatkhulloyev said the agriculture industry will only develop once farmers are given more benefits and preferences. “They give benefits, for example, for six months, but do not consider that farmers' profits do not cover their expenses. If they provide more benefits, the prices of agricultural products on the market would be reduced by 5-10 percent. They should at least give agrarians tax breaks,” he suggested. About 70% of Tajikistan's population lives in rural areas, and developing the agricultural sector will help solve many of its residents' socio-economic problems. Agriculture and labor migration are a source of income for many families. Data is needed on how many farms were forced to close last year, and how many farmers still need to yield products. Representatives of Tajikistan's Ministry of Agriculture do not comment on the situation. At press conferences, the ministry's leadership reports on the development of agriculture and the success of farms.

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

S&P Keeps Uzbekistan’s Credit Rating as “Stable”

The global credit rating agency S&P has maintained Uzbekistan's sovereign credit rating at “BB-/B” (stable outlook). Its latest report on Uzbekistan mentions that: In 2024-2027, the average economic growth is forecasted to be 5.2%, slightly lower than last year’s 6%. Financial and governance reforms, including a planned increase in energy tariffs, will support the country’s investment prospects. Decision-making remains centralized. Although the perception of corruption is improving, it remains high. Growth in Uzbekistan is mainly due to domestic and international investments, which accounted for about 43% of the GDP last year. From 2021 to 2023, Uzbekistan has seen strong real GDP growth, averaging around 6.4% annually, and we expect the outlook to remain strong, supported by public and private investment. Investments drive growth in Uzbekistan, and last year, investments were one of the highest in the world, accounting for about 43% of GDP. Within the “Uzbekistan – 2030” strategy framework, state, and public structures are activating energy, transport, telecommunications, agriculture, and tourism expenditures. At the same time, they are consistently continuing the work of reforming the energy sector, privatization, and improving the tax-budget policy. Uzbekistan’s economy continues to weather the effects of the Russia-Ukraine war well, though remittance flows and remittances from Russia have declined from their 2022 peak. The flow of remittances was estimated to be approximately $11 billion in 2023 (11% of GDP) but was still nearly 40% higher than in 2021 and up 9% year-over-year in the first quarter of 2024. Russia remains Uzbekistan’s largest remittance source, at 78% of total remittances in 2023. In addition, the total volume of trade with Russia has increased. In the first quarter of 2024, compared to the same period in 2023, it was about 16%. Given the sanctions imposed on Russia by the Western Union, Uzbekistan’s exports to Russia have increased to meet the growing demand. In addition, Uzbekistan signed a two-year contract with Russia’s Gazprom in October 2023, importing 9 million cubic meters of gas daily. Despite strong growth rates, our sovereign ratings for Uzbekistan remain limited by a low per capita GDP, projected to be $2,600 in 2024, compared to other countries globally. The country benefits from favorable demographics with a young population. Almost 90% of the population is of working age or below, providing an opportunity for growth based on labor supply. However, analysts say job growth will need help to keep up with demand. The weakness of the Russian economy, where most permanent and seasonal migrants in Uzbekistan are employed, may exacerbate this issue. The effectiveness of Uzbekistan’s monetary policy has improved in recent years. One of the most significant reforms was the exchange rate liberalization in September 2017. The central bank intervenes in the foreign exchange market from time to time to moderate volatility and assess the appreciation of the local currency through large purchases of gold.