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World Bank to Support Kyrgyzstan’s Food Industry

The World Bank's International Development Association will loan Kyrgyzstan $35 million to develop agro-food clusters in the Chui, Jalal-Abad, and Naryn regions. Of that amount, $5 million is a grant, and $30 million is an interest-free loan for 12 years with a six-year grace period. Kyrgyzstan's deputy minister for water resources and agriculture, Kubat Kaseyinov, said the allocated money will be used to develop a dairy cluster in Chui and Jalal-Abad. There are also plans to improve the seed system and breeding farms throughout the country. This includes providing equipment for seed farms, developing infrastructure, improving animal breeding policies and regulations, developing a national meat and dairy farming plan, and supporting selected breeding farms.

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

Foreign Investment in Central Asia is Following Demographic Trends

The population growth in Central Asia, combined with worsening demographic situations across the rest of the post-Soviet space, means a gradual shift in power and investment toward the regional powers of Uzbekistan and Kazakhstan. Thanks to their growing markets – unlike Belarus and Russia, where the population is slowly declining, and especially Ukraine – Uzbekistan and Kazakhstan are starting large projects with the participation of foreign investors. In particular, Russia is showing increased interest in Central Asia, with the US and the EU also keen to engage financially. Recently, Kazakhstani political scientist Marat Shibutov noted on social media that politicians have realized the benefits of investing in countries with major population growth. He argued that power dynamics across the post-Soviet space are changing in line with that. Shibutov quoted an article that he co-authored with Yuri Solozobov in May 2019: “according to statistics, in 1991 there were 20 million people in Uzbekistan and 51 million in Ukraine. Now, there are officially 32.6 million in Uzbekistan (experts say about 34 million) and 42 million in Ukraine (the real figure is unknown). But soon, everything is set to change dramatically. In fact, in 2-5 years, Uzbekistan will equal or surpass Ukraine in population – this will be a turning point in the post-Soviet space. First and foremost, Uzbekistan's investment and trade position will improve, especially in the consumer goods segment. Considering the nuclear power plant project being implemented with the help of Russia and the Ustyurt oil and gas fields, Uzbekistan will become a more promising country for foreign investors than Ukraine, whose development will be entirely about defense spending and internal political issues.” Due to the war that started in 2022, Shibutov’s forecast has materialized even faster. According to UN estimates, Ukraine's population this year is barely 37 million. No one has accurate data since the last census in this country was carried out in 2001. As of 2023, the Ministry of Social Policy of Ukraine put the figure even lower than the UN, at 36 million. Thus, after Russia (with a population of over 140 million), Uzbekistan is likely the second most populous country of the former USSR. In Kazakhstan the population is growing even faster than in Uzbekistan. Russian and Kazakh businesses are implementing 135 projects worth $26.5 billion. Additionally, 67 joint projects worth $14 billion are being planned across key economic industries, including machine building, metallurgy, and chemicals. They are expected to create 11,000 jobs. According to Russian ambassador to Kazakhstan Alexei Borodavkin, there are more than 18,000 enterprises with Russian capital in Kazakhstan and about 4,000 joint ventures with Kazakh partners. Overall, Russia and Kazakhstan have investments totaling $33.5 billion across 143 projects. In November last year, a memorandum of cooperation was signed between the countries’ ministries of energy to build three thermal power plants (TPP) in Kazakhstan – Kokshetau TPP, Semey TPP, and Ust-Kamenogorsk TPP. The combined capacity of the new coal-fired facilities will be about 1 GW (Kokshetau TPP 240 MW, Semey TPP 360 MW,...

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

French Cargo Airline Plans to Use Uzbekistan’s Navoi Airport

CMA CGM Air Cargo, a French cargo airline, plans to deliver cargo from China to Europe via Uzbekistan. The carrier intends to use Navoi Airport as a transit point. Representatives of Uzbekistan Airports, Uzaviation, and Uzaeronavigatsia Center recently met with the French CMA CGM Air Cargo delegation, headed by General Director Damien Mazauder, in Tashkent. The airline will carry out five flights a week on Airbus A330 aircraft, and Navoi Airport will become a transit point for technical landings, refueling, and crew changes. CMA CGM Air Cargo is headquartered in Paris; it was established in 2021 as an air division of the CMA CGM transportation group.

Central Asia Environment Kyrgyzstan Environment Kyrgyzstan Business & Economy Kyrgyzstan Business & Economy Kyrgyzstan Features

Kyrgyzstan Lifts Ban on Mining of Uranium and Thorium

Deputies of the Kyrgyz Parliament have approved a bill lifting the ban on mining uranium and thorium by 69 votes in favor to three against. Parliamentarians are confident that the legislative changes will bring significant economic dividends to the country. The law banning uranium and thorium mining was passed in 2019. At that time, authorities wanted to sell the license to develop a deposit, but faced a significant pushback from residents who feared the project could harm the environment and damage the water table. The result was a complete ban on the entire territory of the Republic. In the Issyk-Kul region of Kyrgyzstan alone, 150,000 cubic meters of radioactive waste were accumulated from uranium mining in the last century. According to the Ministry of Emergency Situations, the country has 92 burial sites, with 23 tailing dumps containing uranium elements. Kyrgyzstan's total volume of poisonous and hazardous substances stands at 2.9 million cubic meters. The notes behind the new bill indicate that alternative sources of income are needed due to severe economic impacts over recent years. However, these activities must strictly comply with environmental norms and standards in uranium and thorium mining. Speaking in parliament, Minister of Natural Resources, Environment, and Technical Supervision, Melis Turganbayev assured deputies that the bill's passage would not harm the environment or the health of Kyrgyz citizens. “For uranium mining to be profitable, a deposit needs 40-50 tons. Kyrgyzstan lacks such reserves. There are occurrences from 0.01 to 0.08% in 83 locations. Our goal is not the uranium, but the associated metals,” Turganbayev said. Authorities plan to mine titanomagnetite, which is accompanied by uranium and thorium. Both elements will be processed at the Kara-Balta Combine in Chui Oblast. Thorium will be stored, while uranium will be sold to other states. Iskhak Masaliyev, one of the three deputies who voted against the bill, reminded his colleagues of discussions in the early 2000s on ecology. However, only now has it been possible to begin to eliminate harmful waste. Doctor of Geological and Mineral Sciences, academician Rozalia Jenchuraeva told The Times of Central Asia that the 2019 law banning mining was “a big folly” as it suspended all waste activities and impacted jobs, leaving hazardous materials lying no more than 20 meters deep are slowly contaminating the soil and water. “If they pull it all out, it will be wonderful. It will clean up the land. This is work for the Kara-Balta Combine. I think the government has decided to develop Kyzyl-Ompol, which is the right thing to do,” Jenchuraeva said. Jenchuraeva believes that Kyrgyzstan has qualified personnel who have previously worked at uranium sites, know how to mine uranium and thorium, and can develop the deposits using their expertise and resources. Earlier, President Japarov met with residents near the Kyzyl-Ompol deposit. “The development of Kyzyl-Ompol will create over a thousand jobs. This mine will become the second Kumtor (gold deposit). The local budget will cease to be subsidized, and the people will get richer,” the president said. Kyzyl-Ompol is...

Central Asia Kyrgyzstan Kyrgyzstan Local Politics Business & Economy Kyrgyzstan Business & Economy

International Association of Crypto-Economy and AI Created in Kyrgyzstan

The International Association of Crypto-Economy and Artificial Intelligence was established in Kyrgyzstan with the assistance of the Russian Association of Crypto-Economy, Artificial Intelligence and Blockchain (RAKIB), TASS reports. RAKIB was created to unite participants in the blockchain technology market and investors in blockchain-based projects in cryptocurrencies. The association aims to promote the spread and deep integration of blockchain technologies into the economy and legalize the use of electronic currencies based on this technology. Alexander Brazhnikov, executive director of RAKIB, said on the margins of the Kazan Crypto-forum that the main tasks of the international association established in Kyrgyzstan will be to ensure security in the digital world, cross-border payments, and the creation of new projects. Brazhnikov will become the chairman of this association, which was officially registered a week ago and will have its headquarters in Bishkek. “We want to make people engaged in this business cooperate,” Brazhnikov said, noting that associations from different countries and individual legal entities can join the organization. According to him, some countries in Africa and the Middle East have shown great interest, and more than 15 countries may join the association by the end of 2024.

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

Copper Smelter To Be Built In Eastern Kazakhstan

A copper smelting plant with a capacity of 300,000 tons of copper per year is to be built in Kazakhstan's eastern Abay region, according to a government press release. An agreement for the plant's construction has bee signed by KAZ Minerals Smelting LLP, the customer, and China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC), a design services supplier and process equipment procurement company. NFC Kazakhstan LLP will also be involved as a construction and commissioning work contractor. The plant will be built near the village of Aktogay. The raw materials will be the copper concentrate from Vostoktsvetmet LLP's Bozshakol and Aktogay mining and processing plants. “Following the plant's construction, a cluster will be created, combining one of the world's largest copper mines and modern copper smelting production. With a preliminary cost of $1.5 billion, the project will create more than 1,000 new jobs. It is planned to be put into operation by the end of 2028,” the press release says. The high-tech enterprise for producing high-value-added products will be the largest in the country. The applied technologies in copper smelting production meet world environmental standards. The enterprise will provide the internal market needs for processing copper-containing raw materials and copper cathode. “It should be noted that cathode copper is widely used in the electric power industry, machine building, and other industrial sectors. In addition, the new plant plans to produce refined gold, silver, and sulfuric acid,” the release added.