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Operator of France’s Courchevel Ski Resort to Build Slopes in Kyrgyzstan

A new ski resort called Three Peaks will soon open in the Issyk-Kul region of Kyrgyzstan. According to plans, Société Des Trois Vallées, the operator of the elite Courchevel resort in France, will build slopes with a total length of 200 kilometers in the villages of Jyrgalan, Ak-Bulak and Boz-Uchuk. The first stage of construction will require an investment of $165 million. This money will be used to build 60 kilometers of ski slopes, six cable cars, as well as the full suite of hospitality infrastructure: hotels, restaurants, conference halls and recreation areas. The works are planned to be completed by the end of 2026. Representatives of a consortium of French companies that develop and manage ski resorts came to Kyrgyzstan in the spring of last year. Later, the French ambassador to the Kyrgyz Republic, François Delaus, announced the construction of a large tourist facility in Issyk Kul.

Central Asia International Affairs Kyrgyzstan International Affairs Kyrgyzstan Business & Economy Kyrgyzstan Business & Economy

U.K. Plans to Open an Investment Fund in Kyrgyzstan

The United Kingdom is weighing up the prospect of opening an investment fund in Kyrgyzstan. Its main function will be to support small- and medium-sized businesses, according to comments made by the British ambassador to Kyrgyzstan Nicholas Bowler during a recent meeting of the Kyrgyz-British Business Council. "Britain is interested in cooperation in mining, agriculture, consulting, the financial sphere, information technology, education and some other areas," said Bowler. According to him, Britain intends to invest £19.5 million ($24.5 million) to create a venture capital investment fund in the country. The series of funds will seek investments in small- and medium-sized enterprises with high potential in the region. The British embassy and business community intend to maintain contacts at the International Business Council and develop trade and economic relations between the two countries. Ambassador Bowler said that the UK is also interested in mining metals and minerals in Kyrgyzstan. In the near future British geologists will begin work to digitize the republic's geological data. In addition, Bowler said, negotiations are underway to engage the international consulting company Boston Consulting Group to develop a joint mining strategy. "Work is now underway in Kyrgyzstan to introduce English commercial law. In the south of the country, United Concrete Canvas is planning to start construction of a concrete canvas [canal lining] plant in the near future, which demonstrates the trust and interest of British companies in Kyrgyzstan," said Kyrgyz ambassador to the UK Ulan Jusupov at the meeting. At the end of 2023 bilateral trade volume between Kyrgyzstan and the UK amounted to $92 million. This represented an increase of 287% on the previous year, as European nations looked for new trading partners in Central Asia, and searched for a way for their firms to get their goods into Russia with less scrutiny. Recently the British authorities have adopted a new trade scheme for developing countries. Under the scheme, Kyrgyzstan can export to the UK more than 8,000 different types of goods at reduced or zero tariffs. So far the main export items are gold, generators, and chemical products. Earlier this month, British foreign secretary David Cameron met with Kyrgyz president Sadyr Japarov as part of his working visit to Central Asia.

Central Asia International Affairs Kyrgyzstan Kyrgyzstan International Affairs Business & Economy Kyrgyzstan Business & Economy

Kyrgyzstan Looks to Azerbaijan to Replace Russian Fuel

Geopolitical turbulence is forcing Kyrgyz authorities to diversify approaches to securing its fuel and lubricants supplies. Azerbaijan may become one of the sources of oil products. As part of Kyrgyz president Sadyr Zhaparov's recent visit to Azerbaijan, negotiations were held with representatives of the Baku Oil Refinery, which is run by the state oil company, SOCAR. The two sides discussed the specific details of Azerbaijani oil supplies to the Junda oil refinery in Kyrgyzstan. "Azerbaijan is one of the largest exporters of oil products. In the near future, the Junda oil refinery will also start operating in Kyrgyzstan, the demand of which is more than 1 million tons of fuel per year. In this regard, the issues of oil supplies to Kyrgyzstan were discussed with the management of SOCAR. For their part, they are ready to cooperate," said Kyrgyz energy minister Taalaibek Ibrayev. Earlier, Kyrgyzstan's Ministry of Economy and Commerce discussed various risks in the fuel market. The ministry is preparing a package of measures in case of a sharp increase in prices for crude oil and petroleum products. Kyrgyzstan's economy minister Daniyar Amangeldiev referenced the agreements between Russia and Kyrgyzstan on duty-free supplies of oil products under the customs rules of the Eurasian Economic Union (EAEU). However, the ministry fears a sharp reduction in imports from Russia -- as Ukrainian forces use drones to bomb Russian refining capacity, and western sanctions make repairing and replacing parts more difficult. Currently, Kyrgyzstan's local capacity for refining petroleum products doesn't even cover 5% of domestic demand.

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

Uzbekistan Will Allow Gambling From Next Year

From 1 January 2025, gambling, lotteries and betting activities will be legal in Uzbekistan. The National Agency for Advanced Projects will control the legal entities that will manage gambling activities in the country. Those management companies will pay a tax on revenue at the rate of four percent for five years. Under the regulations, the age limit will be set for gambling participants at 18 years of age, and companies must have a license to provide betting services and gambling platforms. Despite the current bans, the population actively participates in games of chance -- using foreign and illegal services. That means that participants risk falling prey to scammers, losing huge sums of money in the process. Crimes and suicides among gamblers are not uncommon. According to preliminary estimates, the state budget will receive about $6 million per year. Earlier, the Uzbekistan Football Association's press secretary, Davron Faiziev, spoke about the advantages of legalizing betting activities: "By banning betting activities, we lose a lot. First of all, a large flow of funds goes to other countries. This is why the decision was made -- to legalize all this, to control and ensure clean activity in the future." In Faiziev's opinion, gaming and betting companies can improve the situation in the sports sector of the country's economy, as according to foreign experience, many betting offices are active sponsors of sports teams.

Central Asia Opinion Head Home Turkmenistan International Affairs Turkmenistan Turkmenistan Business & Economy Turkmenistan Opinions Business & Economy Turkmenistan Features Opinions

Turkmenistan’s Gas and Türkiye’s Plans to Become a Gas Hub

A series of ongoing political consultations between Turkmenistan and Türkiye continued on 25–26 April, as a Turkmen delegation led by Deputy Minister of Foreign Affairs Ahmet Gurbanov visited Ankara, hosted by Turkish counterpart Burak Akçapar. Beyond the regular bilateral agenda of political-diplomatic, trade-economic and cultural-humanitarian cooperation, the two sides emphasized the implementation of bilateral agreements reached at the third Antalya Diplomatic Forum in early March, particularly the prospects for cooperation in the energy sector. On 1 March 2024, Turkmenistan and Türkiye signed two documents — a memorandum of understanding (MoU) and a letter of intent — aimed at strengthening cooperation in the natural gas sector. In theory, this seems to be a positive development for the two countries as well as for Europe. The two possible routes for Turkmen gas to reach Türkiye and Europe are (1) via the Caspian Sea and Azerbaijan, and (2) through Iran's existing pipeline infrastructure via a gas swap agreement. Neither one is likely to happen soon. The project to export Turkmen gas to Europe through a shore-to-shore high volume pipeline, at 31 billion cubic meters per year (bcm/y) is no longer alive after various parties have failed to realize it over the past quarter-century. It was bruited when it was announced that Turkmen President Serdar Berdimuhamedov planned to visit Brussels in late 2023 (which ended up not happening) and definitively killed when the initiative by American company Trans-Caspian Resources (headed by a retired U.S. ambassador to Turkmenistan) failed to persuade Ashgabat to construct short low-volume (8–11 bcm/y) "Platform Option" pipeline in the Caspian Sea. Gas "swaps" and Türkiye’s ambitions The idea of a "Turkish gas hub" arose from Russia's search to depoliticize trade between Gazprom and European firms by facilitating a platform where Gazprom's origination of the gas would be obscured and anonymized. Buyers and sellers could meet through Turkish intermediation. Türkiye, however, seeks to draw advantage by imposing the condition of long-term contracts with Gazprom for gas sales at below-market prices. This would guarantee a role for the Turkish intermediaries and, moreover, ensure for them a profit margin through mandatory service fees. "Swap" operations mean an exchange of gas amongst Turkmenistan, Iran and Azerbaijan; however, this would involve only a few billion cubic meters. Even if all participants agree, several questions still remain: Will swap transactions be profitable, given the price of gas in Europe? Even if Iran agreed to a Turkmen gas swap, would Tehran execute the agreement in good faith? In fact, Tehran would prefer to offer its own gas to Turkish and European markets, rather than transit competitive Turkmen gas through his territory. In addition, the gas that Azerbaijan produces for export already has contracted buyers under long-term agreements. Azerbaijan would be interested in the Turkish gas hub only if it should in future produce surpluses of gas that cannot be sold under long-term contracts. Then, such surpluses could be sold at a gas hub under short-term contracts, assuming that transit and profitability are guaranteed. Challenges to Türkiye’s...

Central Asia Uzbekistan Business & Economy Uzbekistan Business & Economy

Uzbekistan Moves to Speed Up Privatization of State Property

Uzbekistan's president Shavkat Mirziyoyev has signed a decree that will put up for auction shares in 247 state enterprises and 1,028 units of real estate. Initial public offerings (IPOs) and secondary public offering (SPOs) of 12 large enterprises are also to be held on the domestic stock market. The Uzbek government is planning various incentives to speed up the sales. For example, if an asset is not sold within three months of the auction opening, its value will be phased down to 10% of the starting bid price. Lessees of state property will be able to buy the assets under contract directly at the appraised value, and those who purchase privatized state assets in installments will be able to pay just 15% of the purchase price in the first three months, and the rest only within the next 10 years. Additionally, the privatization program provides for simplified sale of land plots located along international highways, as well as the sale and registration of land assets for the construction of commercial and service facilities along those roads. Earlier this year Mirziyoyev criticized the slow pace of property privatization in the country and noted that it could bring 20 trillion sum ($1.5 billion) to the national budget. According to Mirziyoyev, many enterprises have artificially inflated their valuations to avoid transferring state assets to private ownership. The Ministry of Health (39), Uzpromstroybank (27), the Ministry of Preschool and School Education (21), the Committee on Roads (17), the Ministry of Higher Education, Science and Innovation (14), Uzbek Postal Service [Pochtasi] (14), and the Ministries of Culture and Water Management (13 each) have the most unrealized assets that should be transferred to the docket for privatization. Thanks to the incentives, significant revenues are expected from the sale of land to entrepreneurs through the auctions, which last year generated 1 trillion sum ($78 million) in windfall for the state budget. Among the most significant objects privatized in recent years were the Kokand Superphosphate Plant, in which a foreign investor invested $40 million and increased production fourfold. Furthermore, the sale of state stakes in Ipoteka Bank ($324 million) and in Coca-Cola Uzbekistan ($252 million) netted significant cash injections for the government.