Business & Economy - The Times Of Central Asia

Viewing results 25 - 30 of 1126

Kazakhstan’s Nuclear Fuel Plant Achieves Full Production Capacity

Kazakhstan’s national uranium company, Kazatomprom, announced on January 6 that its Kazakh-Chinese joint venture, Ulba-FA LLP, achieved its design capacity of producing 200 tons of low-enriched uranium in the form of fuel assemblies by the end of 2024. Ulba-FA is the only fuel production facility for nuclear power plants in Central Asia. The joint venture is a collaboration between Kazatomprom, represented by its subsidiary Ulba Metallurgical Plant, and China General Nuclear Power Corporation. Since commencing operations in November 2021, Ulba-FA has gradually ramped up production, reaching its design capacity within three years. The 200 tons of nuclear fuel produced in 2024 are sufficient to reload six nuclear reactors. Supplying China’s Nuclear Power Plants All fuel assemblies produced at the Ulba-FA plant are currently supplied to nuclear power plants in China, underscoring the strategic partnership between the two nations in the nuclear energy sector. China and Russia remain the largest importers of Kazakh uranium. Between January and October 2023, Kazakhstan exported $2.46 billion worth of uranium, with $922.7 million directed to China and $1.2 billion to Russia. Kazatomprom solidified its position as the world’s largest uranium producer in 2023, accounting for approximately 20% of global primary uranium production.

Central Asia Business & Economy Kazakhstan Kazakhstan Business & Economy Kazakhstan Home

Kazakhstan’s New Harvest Grain Exports Surge by 54%

Between September and December 25, 2024, Kazakhstan exported 3.7 million tons of grain from its new harvest - a dramatic 54% increase compared to the same period in 2023, when 2.4 million tons were exported. The announcement was made by Kazakhstan’s Ministry of Agriculture, citing data from Kazakhstan Temir Zholy (KTZ), the national railways company responsible for grain transportation. Significant increases were reported across the traditional markets for Kazakh grain: Uzbekistan: Exports grew by 44%, rising from 994,000 tons to 1.427 million tons. Tajikistan: Exports increased by 53%, from 385,000 tons to 589,000 tons. Afghanistan: Exports surged by 52%, from 120,000 tons to 182,000 tons. Kyrgyzstan: Exports rose by 22%, from 59,000 tons to 72,000 tons. Iran has emerged as a highly promising new market. Exports to Iran (via the Caspian port of Aktau) soared by a staggering 30.2 times, from just 14,000 tons to 435,000 tons. Kazakhstan harvested over 26.5 million tons of grain from 16.7 million hectares in 2024, as previously reported by The Times of Central Asia. The country plans to export approximately 12 million tons of the new harvest to both traditional markets - Central Asia and Afghanistan - and new ones, including Iran, Pakistan, Indonesia, Brazil, and Malaysia. China is also seen as a key growth market. In 2023, Kazakhstan exported 1.43 million tons of cereals to China - a 5.5-fold increase from the previous year. Kazakhstan’s grain export surge underscores the country’s growing role as a major supplier to both regional and global markets, bolstered by strong demand and strategic diversification efforts.

Home Business & Economy Kazakhstan Business & Economy Features Kazakhstan Featurees

Kazakhstan to Slash Imports with $2.6 Billion Domestic Output Plan

Kazakhstan's Ministry of Industry and Construction (MIC) has announced plans to reduce the country’s reliance on foreign imports by replacing goods worth KZT1.4 trillion ($2.6 billion) with domestically produced alternatives by 2025. This ambitious goal is intended to be achieved through the launch of new production facilities in the automotive and household appliances sectors. According to the MIC's Industry Committee, 190 investment projects are slated for implementation in 2025, creating over 20,000 permanent jobs for Kazakhstani workers. Once fully operational, these projects are expected to generate an output of KZT2.2 trillion ($4.1 billion), with KZT0.8 trillion ($1.5 billion) designated for export. The import substitution effort is forecasted to account for KZT1.4 trillion ($2.6 billion) of this total output. “This initiative will bolster domestic production, reduce dependence on imports, and enhance the competitiveness of Kazakhstan's national economy,” stated the committee. Trade Trends and Key Import Partners Kazakhstan's import volume for January - October 2024 was $48.4 billion, as reported by the Bureau of National Statistics. During this period, imports declined by 3.3% compared to the same timeframe in 2023. The country’s key import partners include: Russia: 29.7% of total imports China: 25.5% Germany: 4.9% USA: 3.9% France: 3.2% Republic of Korea: 3.1% The largest import categories in 2024 were cars (4.1%), aircraft (3%), medicines (2.9%), cell phones (2.7%), and motor vehicle bodies (2.1%). Significant Projects on the Horizon To address these import trends, major projects in the automotive, household appliances, and metallurgy sectors are planned for 2025. These include: Almaty: Construction of a multi-brand plant by Astana Motors to produce Chinese passenger cars. The facility will have an annual production capacity of 90,000 vehicles. Kostanay Region: Establishment of the KIA Qazaqstan plant, which will produce 70,000 vehicles annually of the Korean brand. Combined, these automotive projects will create 3,700 jobs. As previously reported by The Times of Central Asia, Kazakhstan is expected to record high sales of passenger cars by the end of 2024, with approximately 70% of vehicles purchased being domestically produced. Regional Investment Distribution The Turkestan region and Almaty City lead in the number of new investment projects, with 15 and 14 initiatives, respectively. The Kostanay and Karaganda regions also stand out, particularly Karaganda, which is set to receive KZT256 billion ($486 million) for ferrous and non-ferrous metallurgy projects. Overall, Kazakhstan’s manufacturing sector is projected to attract KZT1.2 trillion (nearly $2.3 billion) in investments in 2025, further solidifying the country’s industrial base and economic resilience.

Central Asia Business & Economy Kazakhstan Kazakhstan Business & Economy

Kazakhstan Will Not Extend Wheat Import Ban

Kazakhstan’s Ministry of Agriculture has announced that the country will not extend the ban on wheat imports, which was in effect from August 21 to December 31, 2024. However, officials have not ruled out the possibility of reintroducing such measures in the future to safeguard the interests of domestic grain producers. “From August 21 to December 31, 2024, there was a ban on the import of wheat into the territory of the Republic of Kazakhstan (RK) from third countries and from the EAEU countries by all means of transport, except for the transit of wheat through the territory of Kazakhstan. Thus, from January 1, 2025, the ban on imports of wheat into Kazakhstan and imports will be carried out without restrictions,” stated the Ministry of Agriculture. The ministry noted that future decisions on non-tariff measures regulating wheat imports would depend on the situation in the grain market. This leaves open the possibility of reintroducing temporary bans on imported wheat if necessary. The current ban was introduced to stabilize domestic grain prices. In October, Deputy Prime Minister Serik Zhumangarin explained that earlier attempts to regulate imports through less restrictive measures had failed. Wheat continued to enter Kazakhstan through unofficial channels at prices lower than the cost of domestically produced grain, disrupting the local market. “We needed this ban to determine the price on the domestic market, to give a message to the domestic market on price,” Zhumangarin stated. He added that the authorities have now stabilized prices and plan to monitor wheat pricing at the border to avoid the need for future blanket bans. The ban had a significant impact on wheat imports from Russia. In the first half of 2024, 1.3 million tons of Russian wheat were imported, often labeled as feed for poultry farms or raw materials for Kazakhstan’s flour milling industry. This figure sharply contrasts with Kazakhstan’s annual grain consumption of 1.7 million tons, based on per capita consumption of 64 kg annually. Kazakhstan entered the ban period with robust grain reserves of 5.1 million tons and anticipated a record harvest of 25 million tons in 2024. In reality, the harvest exceeded expectations, reaching 26.5 million tons, according to the Ministry of Agriculture. Despite these gains, the competitiveness of domestic grain within the country remains a concern. The Times of Central Asia previously reported Kazakhstan’s ambitious export plans, aiming to ship up to 12 million tons of grain from the new harvest to international markets. However, competition with Russian wheat has complicated these efforts. In response to Kazakhstan’s ban, Russia imposed partial restrictions on importing Kazakh agricultural products in October 2024. More critically, Russia began redirecting its wheat exports to third countries that have traditionally been key markets for Kazakh farmers.

Central Asia Kyrgyzstan Business & Economy Kyrgyzstan Business & Economy

Kyrgyz Authorities Postpone Fines for Lack of Compulsory Car Insurance

The Cabinet of Ministers of Kyrgyzstan has announced another postponement of fines for motorists without a Compulsory Motor Liability Insurance Policy (CMLIP). Initially set to take effect on January 1, 2025, the penalties will now be delayed until July 1. This is not the first time the implementation of this regulation has been deferred. Authorities concluded that citizens need clearer information about the requirements for mandatory auto insurance. “Currently, changes have been initiated to allow the CMLIP policy to automatically transfer to the new owner of the car when it is sold, which will greatly simplify the insurance process for citizens. We strongly recommend car owners issue a policy in advance to avoid penalties and ensure the protection of their liability on the roads,” stated the Cabinet’s official message. Under the amended law, individuals who fail to secure a CMLIP will face fines of KGS 3,000 ($35), while legal entities will be fined KGS 13,000 ($150). Notably, fines for legal entities have been enforceable since spring 2023. As previously reported by The Times of Central Asia, every motorist in Kyrgyzstan is required to purchase an insurance policy when re-registering a vehicle. However, compliance remains a significant challenge. Despite efforts by the State Insurance Organization to promote compulsory insurance - including warnings about fines - results have been underwhelming. Only around 100,000 vehicles in Kyrgyzstan are insured, out of the 1.6 million cars registered in the country. The Cabinet’s decision to delay penalties aims to provide additional time for public awareness campaigns and to address logistical issues, such as enabling automatic policy transfers during vehicle sales. Officials hope these measures will encourage more motorists to comply with the law before fines are enforced in mid-2025.

Central Asia Home Uzbekistan Turkmenistan Tajikistan Uzbekistan Features Tajikistan Business Economy Kyrgyzstan Turkmenistan Business & Economy Business & Economy Kazakhstan Uzbekistan Business & Economy Tajikistan Features Kazakhstan Business & Economy Kyrgyzstan Business & Economy Turkmenistan Features Features Kazakhstan Featurees Kyrgyzstan Features

Central Asia Poised to Outpace Global Growth in 2025, IMF Projects (With One Exception)

The year 2025 is anticipated to bring moderate growth for the global economy, according to forecasts by the International Monetary Fund (IMF). Global GDP is projected to grow by 3.2%, reaching $115.3 trillion at current prices. While global growth is expected to remain stable, it is weaker than initially forecast. The IMF notes that the economic outlook for the United States has improved, but growth expectations for other advanced economies, particularly in Europe, have been downgraded. Emerging markets and developing economies continue to grapple with a range of challenges, including production disruptions, shipping delays, geopolitical conflicts, civil unrest, and extreme weather events. These factors have tempered growth prospects in regions such as the Middle East, Central Asia, and sub-Saharan Africa. In contrast, emerging Asia is experiencing robust growth, fueled by strong demand for semiconductors and electronics, underpinned by substantial investments in artificial intelligence. Additionally, public investment in China and India is driving regional economic expansion. However, the IMF forecasts that global growth will average 3.1% annually over the next five years, a pace slower than pre-pandemic levels. Global Economic Highlights In 2025, the United States is expected to retain its position as the world’s largest economy, with a GDP of $30.3 trillion at current prices. China will follow with $19.5 trillion, while Germany is projected to rank third at $4.9 trillion. Japan and India will occupy fourth and fifth places, with GDPs of $4.4 trillion and $4.3 trillion, respectively. Central Asia Outlook In Central Asia, Uzbekistan’s economy is forecast to expand by 5.7%, reaching $127.4 billion at current prices, according to the IMF. This growth rate positions Uzbekistan as one of the region’s fastest-growing economies. Kazakhstan, the largest economy in Central Asia, is expected to achieve 4.6% growth, with GDP reaching $306.6 billion. Kyrgyzstan’s GDP is forecast to grow by 5%, reaching $17.3 billion at current prices. Tajikistan’s economy is expected to grow by 4.5%, with GDP projected at $14.1 billion. Turkmenistan is forecast to experience slower growth, with its GDP increasing by 2.3% to reach $91.1 billion.