International Affairs - The Times Of Central Asia

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Caspian Sea

Kazakhstan to Construct Seven New Offshore Vessels

Kazakhstan plans to expand its maritime fleet by building seven new vessels on the Caspian Sea. These vessels will be three tankers, two ferries, and two container ships. The construction of the vessels is part of a broader strategy to develop Kazakhstan's transportation and logistics infrastructure, which will strengthen its position on the Caspian Sea. Today, Kazakhstan's merchant fleet consists of 17 vessels: 10 tankers, four dry bulk carriers, and three container ships. In December 2023, KazMunayGas and Abu Dhabi Ports Group signed an agreement to establish a ship repair and shipbuilding yard in Kazakhstan. This project will provide the necessary base for the repair and construction of new vessels, which will increase the competitiveness of Kazakhstan's fleet on a global level. In addition, Kazakhstan continues to strengthen its ties with Azerbaijan. Tankers have already been purchased to transport oil from Kazakhstan to Azerbaijan for subsequent shipment via the Baku-Tbilisi-Ceyhan oil pipeline. This cooperation will diversify export routes and ensure the stability of supplies. Turkey has become another significant partner of Kazakhstan in shipbuilding. Under an agreement with Turkish companies, new vessels will be built, providing the country with additional opportunities to develop trade relations in the region. This project will also reduce Kazakhstan's dependence on Russia in shipbuilding, and strengthen its position in the Caspian Sea.

Economy

Uzbekistan Targets Economic Growth and Poverty Eradication

According to a report newly published by the US Department of State, titled “2024 Investment Climate Statements: Uzbekistan”, the country aims to develop its economy, work towards eliminating poverty and achieve above-average income status by 2030. The government regards foreign direct investment as key to attaining its goals, and increasing interest has been expressed by American investors. Although challenges remain, Uzbekistan has the potential to become a regional economic leader thanks to its large and growing population, rich natural resources, and developed infrastructure. Bilaterally landlocked, the economy largely depends on trade with regional neighbors and thus, Uzbekistan cannot provide stable employment for its rapidly growing population of 37 million. State policy aims to ensure social stability and stabilize growth rates by directing public and private investments to areas that will create new jobs and strengthen the country’s economic sovereignty. The Government of Uzbekistan (GOU) manages investment flows through annual and mid-term investment programs, mainly concerning developments in infrastructure, industrialization, and natural resource projects. The current National Investment Program for 2023-2025 comprises nearly 800 projects worth $55.4 billion. Medium-term targets for 2030 are eradicating poverty and becoming a high-middle-income country. Foreign ownership and the control of airlines, railways, long-distance telecommunication networks, and other sectors related to national security require special GOU permission. By law, because foreign nationals cannot obtain a license or tax permit for individual entrepreneurship in Uzbekistan, they cannot be self-employed and must be employed by a legally recognized entity. The law in Uzbekistan states that local companies with at least 15% foreign ownership can qualify as having a foreign investment. The minimum fixed charter-funding requirement for a company with foreign investment is 400 million UZS (USD 1 equals 12,500 UZS as of March 2024). Minimum charter funding requirements can differ for business activities subject to licensing. For example, that for banking activities is 100 billion UZS; for microcredit organizations, 2 billion UZS; for pawnshops, 500 million UZS; for production of ethyl alcohol and alcoholic beverages,10,000; for lotteries, 200 million UZS; and for tourism operators, 400 BCRs; Base Calculation Rates (BCR) (one BCR equals 340,000 UZS or about $27, as of March 2024). Foreign investment in media enterprises is limited to 30%. The government closely monitors foreign investment in strategic sectors such as mining, energy, transport, banking, and telecommunications. There is no straightforward screening process, and some laws are designed to protect domestic industry and limit foreign competition, such as banning 529 imported goods in 2021. The ban applies when there are at least two domestic suppliers but no restrictions are imposed on US investors. Uzbekistan has laws to protect entrepreneurs and investors, including “On Competition” and “On Investments.” However, the rules can be complex and sometimes contradictory. In some cases, businesses must comply with government decisions that are unavailable to the public. Foreign investors often seek benefits through Presidential Decrees to avoid such issues, though these can be easily revoked. The regulatory system reform is still in progress. The government’s “Uzbekistan 2030” development strategy includes a range of...

Migrant Workers

Russia Wants to Ban Migrants’ Families

Russia is considering a bill that could restrict the right of migrant workers to bring their families into the country. The initiative from LDPR deputies, led by Leonid Slutsky, has already sparked active discussions among politicians and society. The main goal of the proposed law is to reduce the inflow of uncontrolled migration and the ensuing public tension. Particular reference is made to the many migrant families living in Russia who accumulate debts for public utilities and create enclaves where local laws and customs are often ignored. The bill suggests that with the exception of highly qualified specialists, the presence of a work contract or a patent, should no longer be a reason for migrants to move their families to Russia. This bill is not the only measure aimed at tightening the migration policy in Russia. In 2022, a “controlled stay” system was introduced, strengthening control over migrants on the country's territory. In recent years, Russia has also introduced labor migration quotas limiting the number of jobs available to foreign nationals, especially in construction, trade, and other low-skilled sectors. These quotas were further tightened, resulting in fewer migrants entering the country. Another measure was the introduction of compulsory health insurance for migrants, adding a financial burden to those coming to work in Russia. In addition, strict language and cultural integration requirements have been introduced, including mandatory Russian language training and exams on the country's history and culture. Such actions have drawn criticism from human rights activists, who believe that the restrictions could increase social tensions and make life difficult for migrants already living in Russia.

World Nomad Games

The World Nomad Games: Capturing a Sense of the Great Steppe

The 5th World Nomad Games, set to be hosted in Astana from September 8-13, is Central Asia's largest national sports competition and, complemented by unique cultural and scientific programs, attracts participants and spectators from throughout the world. As reported by TCA, there is a distinctive festive fizz in the air as the city prepares to welcome visitors, with streets, shopping centers, public spaces and even buses already festooned with flags and colorful decorations. Ablai Kondybaev, the Deputy Head of the Directorate responsible for preparing and organizing the 5th World Nomad Games, spoke to The Times of Central Asia about how the event allows visitors to experience the spirit of the Great Steppe. TCA: The geographical scope of the Nomad Games is steadily expanding worldwide. How many countries will participate this year and how many tourists and spectators are expected to attend? AK: The Games have a ten-year history. Having originated in Kyrgyzstan in 2014, they have since been held three times in the Kyrgyz city of Cholpon-Ata and on the shores of Lake Issyk-Kul. Over the relatively short period since it began, the event has grown dramatically. The first Games attracted participants from 19 countries mainly from Central Asia where there is a historic nomadic culture, whereas the 4th Nomad Games hosted by Iznik, Turkey, in 2022, saw athletes competing from 81 countries. It's very interesting to track the geography of engagement. In previous Games, for example, countries such as New Zealand and Madagascar participated. Superficially, they have nothing to do with nomadic culture, yet consider themselves descendants of nomads. Such things bring us closer together; in the distant past, all humanity was nomadic. To date, we have received applications for participation from 89 countries to compete in this year's event. The Nomadic Games are a new and interesting phenomenon, offering unique and highly engaging spectacular sports, unfamiliar and exotic to European and Western audiences. As such, the Games are becoming increasingly popular abroad. Today's geographical representation of athletes is expansive, with countries including Venezuela, Ireland, Gambia, and Brunei participating for the first time. For ten years, countries from literally all continents have joined the event and perhaps in the future, we will reach a point where interest in our national sports is on a par with the Olympics or soccer championships. [caption id="attachment_21887" align="aligncenter" width="2560"] Falconry in Cholpon-Ata, Kyrgyzstan; image: Stephen M. Bland[/caption] TCA: Is it significant that the month of September was chosen for the Games? AK: Absolutely. September is when nomads traditionally celebrate the completion of the migration with their caravan of yurts and animals from their summer to winter camp with a toi ; an event comprising feasts, rituals, games and competitions. TCA: Which competitions generate the most excitement amongst spectators: Horse racing, archery, wrestling? AK: Nomadic life is directly related to horses, and year on year we observe how people who know nothing about steppe culture are particularly fascinated by our equestrian sports. Always spectacular and challenging, they take the audience's breath away. But...

United Nations

UN General Assembly Adopts Uzbekistan-Initiated Resolution on Forest Management

The UN General Assembly last week adopted Uzbekistan's proposed resolution on “Fostering sustainable forest management, including afforestation and reforestation, in degraded lands, including drylands, as an effective solution to environmental challenges.” The resolution is based on the concept of Uzbekistan’s nationwide program, Yashil Makon (Green Space), which aims to preserve and restore biodiversity through the greening of urban and rural areas. Launched by Uzbekistan's President Shavkat Mirziyoyev in November 2021, the Yashil Makon initiative allows the planting of one billion trees and shrub saplings across the country over five years. The resolution reflects the key proposals on effectively countering climate change and combating land degradation, voiced by Mirziyoyev during the 78th session of the General Assembly and the 28th UN Climate Change Conference. The resolution discloses the economic, social, and environmental benefits of sustainable forest management and tree planting, emphasizing their contribution to increasing biodiversity, mitigating the effects of climate change and air pollution, and achieving the Sustainable Development Goals, including poverty eradication and food security. The resolution gives specific recommendations to UN member states regarding tree planting to preserve and increase biodiversity using nature-saving and ecosystem methods.

Afghanistan

Uzbekistan and Afghanistan to Increase Trade Turnover to $3 Billion

The government portal of the Republic of Uzbekistan has reported that on August 17, a delegation led by the Prime Minister of the Republic of Uzbekistan, Abdulla Aripov, visited Afghanistan. President Mirziyoyev has previously stated that no positive result can be achieved without establishing an international dialogue with the current government in Afghanistan. In a special resolution of the United Nations General Assembly adopted in 2022 at Mirziyoyev's initiative, it was recognized that Afghanistan has a special place in establishing relations between Central Asia and South Asia. As the report states, Uzbekistan was one of the first to establish a constructive and mutually acceptable dialogue with the interim government of Afghanistan. During the meetings, the development of trade relations with Afghanistan, the promotion of effective cooperation in the field of energy to a new level, the implementation of joint development projects in copper, iron, oil and gas fields, transport and logistics, agriculture and water management, education, and further development of inter-regional relations were discussed. It was also noted that there are possibilities to increase mutual trade turnover to $1 billion this year, and to $3 billion shortly after. It was reported that agreements on the protection of bilateral investments and preferential trade would give great impetus to the further development of trade and economic cooperation. Former Minister of Foreign Affairs and Director of the Central Asia International Institute, Vladimir Norov, wrote on LinkedIn that 35 contracts with a total value of $2.5 billion were signed between the government of Uzbekistan and the Taliban. "They were signed yesterday in the presence of Taliban Deputy Prime Minister for Economic Affairs, Abdul-Ghani Baradar and Uzbek Prime Minister, Abdulla Aripov. Of these, 12 documents are investment documents worth $1.4 billion, and 13 are trade documents worth $1.1 billion. Uzbekistan will train 100 Afghan railway specialists and accept 500 Afghan students for a grant work that has begun to simplify the issuance of visas to Uzbekistan for Afghan students and businessmen," Norov wrote. One of the main announcements was the introduction of a Preferential Trade Agreement, which will come into effect on October 1, 2024. This agreement will eliminate import duties on 14 different products, simplify the process for exporters, and increase trade flow between the two countries. To further support cross-border trade, the Ayritom-Khayraton border post has switched to 24-hour working hours starting August 1, 2024. Previously, The Times of Central Asia reported that the Uzbek side has finished repairing the Naibabad railway station in Afghanistan.