Business & Economy - The Times Of Central Asia

Viewing results 835 - 840 of 1414

New Cargo Train Covers China-Kazakhstan-Uzbekistan Route In Record Time

Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), announced on August 5 that Kazakhstan and Uzbekistan have launched the fastest ever cargo train service on the China-Kazakhstan-Uzbekistan route. The train on this new route now covers a distance of 4,486 km in a record five days. The train departed from the Kazakh-Chinese terminal in Xi'an, China. The containers were then transshipped at the KTZE Khorgos Gateway dry port on the Kazakh-Chinese border, and traveled through Kazakhstan to the Saryagash station on the border with Uzbekistan, before reaching its final destination — Tashkent rail station, one of Central Asia's major transport hubs. The short-term increase in cargo transportation is attributed to the utilization of KTZ terminal capacities in China, and the collaborative efforts between the railway administrations of Kazakhstan and Uzbekistan to enhance their border infrastructure. Reconstruction and technological process improvements have increased the capacity of the Saryagash interstate junction station, a key hub for cargo flow between Kazakhstan and Uzbekistan, by 50%. In 2023, the volume of cargo transportation between Kazakhstan and Uzbekistan exceeded 31 million tons, an increase of 17.2% compared to 2022.

Home Justice Kazakhstan Justice Kazakhstan Business & Economy Kazakhstan Business & Economy Features Kazakhstan Featurees

Kazakhstan Resolves Dispute with Stati Amid Allegations of Litigation Profiteering

Kazakhstan’s government and representatives of the Stati family have reached an agreement to cease all legal proceedings regarding the case (Republic of Kazakhstan v. Ascom Group SA) with approval from major creditors, including an offshore investment vehicle of the Stati parties called Tristan Oil Ltd. The Stati side includes the family, as well as investors in Argentem Creek Partners (the investment manager of funds that lent money to Tristan Oil), and other possible shareholders. While the agreement comes after a fourteen-year dispute over oil and gas assets in Kazakhstan, its precise details remain confidential. Daniel Chapman, CEO of Argentem Creek Partners, was quoted in the Ministry of Justice statement as saying: “We support the framework agreement and commend President Tokayev’s decision to create a Fair Kazakhstan as part of his admirable reforms. With the settlement of this dispute, Kazakhstan is honoring international treaty obligations and, thereby, opening its doors to increased investment and heightening its economic growth potential. We welcome this new era for Kazakhstan.” Kazakhstan’s Minister of Justice, Azamat Yeskarayev said the agreement “was made in view of the public interest and does not involve the spending of budgetary funds,” and added: “We believe that this move will have a positive effect on attracting new investments in our country and on the growth of the economy.” A brief history of the dispute In 1999, Tristan Oil Ltd., an offshore company, was granted exploration and production rights at the Borankol oil field and the Tolkyn gas field located in the Mangistau region of Kazakhstan through the acquisition of Kazpolmunai LLP and Tolkynneftegaz LLP in the same year. Additionally, Tristan Oil Ltd. made investments towards the construction of a modern liquefied gas processing plant to become operational by the end of the 2000s. In 2010, assets of the Stati family were nationalized with the authorities citing their unlicensed activities, and were transferred to the trust management of KazMunayGas JSC structures. Moldovan businessmen decried the seizure as violating provisions of the Energy Charter Treaty, filed lawsuits claiming illegal seizure of their property, and began a legal battle in international jurisdictions that lasted for fourteen years. This event became a core component of the Republic of Kazakhstan v. Ascom Group SA case involving Tristan Oil Ltd. Kazakhstan’s representatives claimed that Stati’s creditor, Argentem Creek Partners, had conspired to enforce a tainted award. However, the lawsuit was dismissed by the Supreme Court of Sweden in a final June 2023 decision awarding $497.6 million to Stati parties. The court's decision mandated the Kazakhstan Government to disburse the initial instalment of approximately $76 million to the Stati family, along with accrued interest based on six-month U.S. Government bond rates, starting from April 2009. Additionally, the ruling included an allocation of $1.5 million to cover legal expenses. Despite the final and binding decision in Sweden, the legal battle showed no signs of abating, with cases continuing in England, the U.S., the Netherlands, Luxembourg, Belgium and Italy. The Ministry of Justice of Kazakhstan appeared intent on prolonging...

Central Asia Tajikistan International Affairs Tajikistan Business Economy Tajikistan International Affairs Business & Economy

South Korea Launches $4 Million Railway Project in Tajikistan

As reported by Asia-Plus, the Ministry of Transport of Tajikistan and the Korea International Cooperation Agency (KOICA) have signed a memorandum of negotiations on the $4 million economical and technical development of the Jaloliddin Balkhi–Nizhniy Pyanj railway project. “The main goal of this project is to enter the market of South Asian countries—Afghanistan, Pakistan, India,” stated Azim Ibrahim, Minister of Transport of Tajikistan after explaining and that the railway will ensure the development of regional trade, help maintain the condition of roads, and reduce the burden and intensity of traffic on the streets. “If the project is successfully implemented, Tajikistan will become an attractive railway transit country," he continued. "And the increase in the volume of cargo and product transportation with neighbouring countries will prove very beneficial for Tajikistan and other countries in the region." Acting Ambassador of South Korea to the Republic of Tajikistan, Kim Jeon Sik, hailed the project as another step towards the country's progressive future and said that with direct access to the sea, Tajikistan had the potential to become the main link in international cargo transportation. He closed by expressing his hope that South Korea’s first railway construction project in Central Asia would be completed within three years.

Central Asia Environment Kazakhstan Environment Kazakhstan Local Politics Local Politics Kazakhstan Business & Economy Kazakhstan Business & Economy

Kazakhstan Prepares for the Second Phase of North Aral Sea Restoration

On August 1, Kazakhstan’s minister for water resources and irrigation, Nurzhan Nurzhigitov, chaired a meeting on preparations for the second phase of the North Aral Sea restoration project. The North Aral Sea is the portion of the former Aral Sea fed by the Syr Darya River. It split from the South Aral Sea in 1987–1988, when water levels dropped due to water diversion for agricultural use. The meeting reviewed the preparation of a feasibility study for the project. The project consists of three components. The first component improves conditions for fisheries and the aquatic environment in and near the sea, and stabilizes wetlands in the Syr Darya River delta. The second component supports sustainable economic, social, and environmental activities in Kazakhstan’s Kyzylorda region by developing fisheries, livestock farming, tourism, and forest planting. The third component plans to improve water management systems in the Aral-Syr Darya basin. Nurzhigitov commented: "The project being prepared is a continuation of a large-scale project to regulate the Syr Darya River bed and preserve the North Aral Sea, which was implemented between 2002 and 2010 and positively affected the entire Aral Sea region. The second phase covers many different areas — from the stable provision of the North Aral Sea with water to developing economic and social projects."

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

High Water in Kyrgyzstan’s Toktogul Reservoir Forecast to Boost Electricity Generation

On August 2, the volume of water in the reservoir of Kyrgyzstan's Toktogul hydroelectric power plant reached 11.922 billion cubic meters, which according to the plant's operator Electric Stations OJSC, is almost one billion cubic meters more than that recorded on August 1, 2023. Located on the Naryn River, which feeds the Syr Darya River that flows to Kazakhstan and Uzbekistan, Toktogul HPP is the largest power plant in Kyrgyzstan and generates some 40% of the country’s electricity. The Toktogul reservoir currently receives 840 cubic meters of water per second and releases 475 cubic meters per second. The released water is used to generate electricity and then flows to downstream countries where it is used for irrigation. The reservoir has a maximum capacity of 19.5 billion cubic meters, with an average volume is 17.3 billion cubic meters, and the "dead" level at which the power plant would stop operating is 5.5 billion cubic meters. As reported by 24.kg news agency, Electric Stations OJSC expects the volume of water in the Toktogul reservoir to reach 12.5 billion cubic meters at the beginning of the next heating season (October 1, 2024) and at the end of 2024/25 season, fall to around 7.9 billion cubic meters. Toktogul HPP comprises four hydroelectric units with a total generating capacity of 1320 MW and on completion of the modernization of hydroelectric unit #1, later this year, the capacity will increase by 60 MW and reach 1380 MW. In recent years, because Kyrgyzstan has been unable to produce enough electricity to meet the country's growing demand, electricity has been imported from neighbouring states.

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

EU’s Borrell Reaffirms European Commitment to Cooperation with Kazakhstan

On August 1, the high representative of the European Union for foreign affairs and security policy, Josep Borrell, visited Astana and met with Kazakhstan's President Kassym-Jomart Tokayev, and Foreign Minister Murat Nurtleu. Explaining the purpose of the visit, Borell said “as my mandate as a representative of the European Union ends in three months, it was very important for me to come here to Astana to reaffirm the strong interest and commitment of the European Union to strengthen cooperation with Central Asia in general and with Kazakhstan in particular as the strongest country in the region.” “I used to say that four years ago, when I came to Brussels, Central Asia was a little bit in the middle of nowhere – and now, you are in the middle of everything…Everything that matters between Europe and Asia goes through you”, he added. The EU High Representative also said, “Under the leadership of President Tokayev, Kazakhstan has embarked on the path of the wide range of political and economic reforms that we support”. Stressing Kazakhstan's strategic geographical position as a bridge between Europe and Asia, Borrell noted that the EU is Kazakhstan’s number one trade partner, representing more than one-third of all Kazakh exports, and the biggest investor in the country. Borrell’s meeting with President Tokayev covered progress of the Enhanced Partnership and Cooperation Agreement between Kazakhstan and the EU, a comprehensive accord aimed at enhancing political, economic, and social collaboration between the EU and Kazakhstan. Tokayev commended the high-level dialogue between Kazakhstan and the EU, notably the productive visit of European Council President, Charles Michel, and talks with the President of the European Commission, Ursula von der Leyen. “I think we reached many common views as far as our cooperation is concerned,” Tokayev said. He also lauded a memorandum signed by the Government of Kazakhstan and Ursula von der Leyen on the development of green hydrogen on November 7, 2022, during the COP27 climate conference in Sharm El-Sheikh, calling it “a very concrete step forward in terms of mutual cooperation”. Borrell commented that they had "discussed key political and economic reforms in Kazakhstan and topics of mutual interest in the challenging geopolitical context. We appreciate Kazakhstan’s principled support to the UN Charter and commitment to international law." Borrell also met with the Minister of Foreign Affairs of Kazakhstan Murat Nurtleu. Speaking about the Ukraine war, Borrel stated: "We encourage you to take further steps in order to make this war reach an end, and to use your influence for that." Also on the agenda were cooperation in transport and logistics, digitalization, civil aviation, agriculture, use of critical raw materials, and energy. According to Kazakhstan’s Foreign Ministry, the European Union is Kazakhstan’s leading trading and investment partner, accounting for more than 30% of Kazakhstan’s foreign trade and investments. In 2023, trade between Kazakhstan and the EU amounted to $41.4 billion. In January-May 2024, bilateral trade reached $20.2 billion, showing a 14.1% increase compared to the same period last year ($17.7 billion). The...