International Affairs - The Times Of Central Asia

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Russian Comments Put Kazakhstan’s Oil Transit to Germany Under Threat

Russia has warned Kazakhstan about the possible suspension of Kazakh crude oil transshipment to Germany through the Druzhba oil pipeline system. The stated reason is the debt of Polish pipeline operator PERN, according to a report by Reuters. Reuters, citing people familiar with the matter, claims that Russia's Transneft has warned its Kazakh partner KazTransOil about the suspension of oil deliveries to the Schwedt refinery. The reason for this demarche is the outstanding debts of Polish state pipeline operator PERN. If the Polish company doesn't pay for the services of oil acceptance and transfer at the Polish transit point Adamova Zastava on the border with Belarus by June, the transit will be stopped. The amount of the debt is unknown. PERN explained its version of the situation by citing western sanctions against Russia. Payment of money to the Russian side can lead to violations of the sanctions regime. According to comments made by the Kazakh Ministry of Energy, the Kazakh government itself looks at the possibility of transit suspension very negatively. KazTransOil said that the plan of deliveries to Germany remains unchanged, and that negotiations with all participants of the process are underway. Curiously, the Ministry of Energy denied the Reuters report, claiming that "the information does not correspond to reality." In early April it was reported that the Kazakh side intends to supply 1.2 million tons of oil to the Schwedt refinery by the end of the year. This would not be the first case involving a cessation of Kazakh oil transiting Russian territory. Earlier, there were repeated problems with the Caspian Pipeline Consortium (CPC) terminal in Novorossiysk, Russia, on the Black Sea. Some analysts believe that Russia uses oil transportation as an instrument to apply pressure to the Kazakh government.

Samarkand to Host Asian Women’s Forum Next Month

The Asian Women's Forum will be held in Samarkand this May, where participants will discuss the situation surrounding women's rights in the countries of Central and Southeast Asia. The forum will discuss issues related to expanding women's rights, and reducing poverty in the region by involving women in entrepreneurship. Sessions will pay special attention to the role of parliaments in stimulating women's participation in business, gender-oriented budgeting, elimination of gender disparity, and eradication of all forms of violence against women and children. The participants will also focus on modern approaches and best practices in promoting the green economy, the impact of climate change on gender issues in the region -- as well as protection of women's rights and interests. Women are now a driving force in all aspects of life in Central Asia. Addressing the 78th session of the UN Commission on the Status of Women in New York, Chairwoman of the Senate of the Oliy Majlis (bicameral parliament) of Uzbekistan Tanzila Narbayeva said that "the attitude towards women has fundamentally changed in the country. Much attention is [being] paid to their education, mastering professions and foreign languages -- as well as to the development of women's entrepreneurship." To date, Uzbekistan has adopted more than 40 legal and regulatory acts to improve the status of women in society, established the National Agency for Social Protection, which, among other things, provides targeted assistance to women and works specifically on the social adaptation of women returned from conflict zones in Syria, Iraq and Afghanistan.

Energy

Kazakhstan Likely To Insist on Revisions to Kashagan Oil Contracts

Kazakhstan is demanding compensation for lost profits from the North Caspian Operating Company (NCOC), the consortium that manages the Kashagan oil field, and arbitration claims have risen to $150 billion. Sources close to Kashagan told The Times of Central Asia that this should send the message to western energy companies that Kazakhstan is looking to revise previously signed contracts. While Bloomberg has reported the sum of the claims, citing people familiar with the matter, Kazakh government officials have declined to comment on the situation, claiming that it is a "commercial dispute." In April 2023, proceedings against the companies developing the Kashagan and Karachaganak fields began as part of a dispute over cost deductions from oil-sale proceeds of more than $13 billion and $3.5 billion, respectively. An additional $138 billion claim relates to the calculation of the cost of oil production "that was promised to the government but not delivered by the field developers," according to Bloomberg. The Ministry of Energy has not yet commented on the new claims. It states that the Kazakh authorities seek to maximize profits from their oil-production projects with the participation of foreign investors, but have been relatively flexible in previous disputes with oil corporations. International sources note that Eni, Shell, Exxon and TotalEnergies have already invested around $55 billion in Kashagan, and currently the field produces about 400,000 barrels of oil per day. NCOC investors, led by Italy's Eni, are convinced that production can be increased to 1.5 million barrels per day. NCOC has stated that it acts in strict compliance with the contract. Representatives of Eni confirmed that the Kazakh authorities have applied to the court for arbitration settlement, but did not disclose details. Earlier, Kazakhstan won a lawsuit against the Kashagan consortium which required them to pay $5.1 billion for damage to the environment. Kashagan is developed by the NCOC consortium, which includes the national company KazMunayGas (KMG) and several foreign energy companies: Eni, Shell (Great Britain), ExxonMobil (USA), Total (France), Inpex (Japan), and CNPC (China). Member of the Public Council of the Kazakh Ministry of Energy, Olzhas Baidildinov believes that the sharp increase in the amount of the lawsuit is a signal from the Kazakh side to the consortium to revise the contracts. "In my opinion, it's obvious that Kazakhstan wants to revise the terms of work on large consortia. At the same time, I have proposed many times to exchange the frozen assets of the Russian Federation for stakes in major projects: Tengiz, Karachaganak and Kashagan. There is a nuance here: for example, the shares in Karachaganak and Kashagan are managed by PSA LLP, which is determined by the authorized body, while the share in Tengiz is managed by KazMunayGas. As we see, on Kashagan and Karachaganak there are arbitration claims filed in international arbitration, there is an environmental issue - but on Tengiz they are silent for some reason. This is either KMG's unprofessionalism, because the amount of investment expense is very high, or some other unknown issues that need...

Rosatom Set to Build Small Nuclear Power Plants in Uzbekistan

Russian state nuclear power corporation Rosatom is ready to offer lower-capacity nuclear power plant (NPP) projects to Uzbekistan. That's according to comments made by Denis Manturov, Russia's Minister of Trade and Industry, at the fourth annual international industrial exhibition, Innoprom, Central Asia. “Currently, the Rosatom state corporation and the Uzatom agency are working out the general contract for the construction of a nuclear power plant. This is a large-scale and complex project. Rosatom is ready to offer Uzbekistan additional solutions, including solutions related to low-power nuclear power plants,” Manturov said. According to Manturov, who is also a Deputy Prime Minister, the site for the construction of the NPP has already been chosen, and the spot is located near Tuzkon Lake in the Jizzakh region, which studies have confirmed is a favorable place. In addition, the optimal technical configuration for the project has already been determined. Rosatom plans to build a complex consisting of two power units with VVER-1200 reactors. “Now, together with Uzbek and international experts, technical issues related to the integration of the nuclear power plant into the energy system, cooperation with renewable energy sources, reducing the volume of water for the use of the plant and maximum production of electricity are being considered taking into account the climatic characteristics of the region,” Manturov stated.

Britain’s Cameron to Central Asia: Work with Us

Britain’s foreign secretary is in Central Asia this week, seeking deeper ties with a part of the world seen as increasingly vital to international security, energy flows and efforts to combat climate change. The trip, which David Cameron described as overdue, followed criticism that Britain had neglected what the envoy’s own office describes as a “pivotal region of the world.” Cameron´s visit comes months after a British parliamentary committee report said there was a perceived “lack of seriousness” in Britain’s engagement with Central Asia. The committee said Russia and China were courting the region, while Britain was “a leading enabler for corrupt Central Asian elites and a key node for capital flight out of the region.” Cameron spent the first day of his trip in Tajikistan, meeting President Emomali Rahmon in Dushanbe and visiting the Nurek hydropower project, which supplies about 70% of the country’s electricity. He will also visit Kyrgyzstan, Uzbekistan, Turkmenistan, Kazakhstan and Mongolia. “These countries aren’t often talked about in the U.K., so you might ask why,” Cameron said on Monday. “Well, these countries are sandwiched between China, Russia, Afghanistan and Iran. They’re making a choice of who to work with, and in a more competitive and contested world, if you want to protect and promote British interests, you need to get out there and compete.” Britain intends to provide investment funds for small businesses as well as “green” projects that can mitigate the effects of climate change, Cameron said. Without providing specifics, he told Tajik television that he and Rahmon discussed security and “all the difficulties and conflicts in the region.” The Islamic State group, which is said in some quarters to have increasingly recruited Central Asians into its ranks, claimed responsibility for the killing of more than 140 people by gunmen who attacked the Crocus City Hall in Moscow on March 22. Several Tajik migrants are among the detained suspects. Cameron will “advance discussions on sanctions circumvention, human rights and reform,” his office said. Britain is a staunch supporter of Ukraine in its war against Russia, which has had success in dodging Western sanctions, partly by trading with Europe via Central Asia. For example, British firms´ exports to Kyrgyzstan have soared by over 1,100%, Sky News reported. “Major European economies are quietly continuing their economic cooperation with Moscow by circumventing sanctions to take advantage of the vacated market,” says a commentary in the Center for European Policy Analysis, which is based in Washington. “And they’re doing it by finding partners in the South Caucasus and Central Asia.” Cameron praised the Nurek Dam as an example of the kind of “great schemes” that can help reduce the use of coal-fired power plants and drive down carbon emissions by providing clean energy from Central Asia to South Asia under the CASA-1000 project. On the second leg of his tour, Cameron arrived in Kyrgyzstan later on April 22, where he met with President Sadyr Japarov. They exchanged views on the prospects for Kyrgyz-British cooperation in the political, trade,...

Turkmen Dissidents Mark Anniversary of Deadly Storm With Government Protest

On April 27 activists from the Warsaw Post-Soviet Dissident Alliance will hold a protest in Warsaw, Poland, against the Turkmen government. The event is being organized in memory of the dozens of victims of the 2020 windstorm in the city of Turkmenabat. The protest will mark the fourth anniversary of the April 27 storm that brought hurricane-force winds to Turkmenabat. The storm claimed dozens of lives, but authorities in Ashgabat have never mentioned it -- nor have they offered any support to the victims' families. Rather, criminal cases were opened against the volunteers who tried to help people in the city on their own, the Warsaw Alliance have claimed in a statement. The Alliance is demanding that Turkmen authorities acknowledge the storm as a historical fact, disclose the number of dead and injured, pay compensation to the injured citizens and their families, and declare April 27 as a day of mourning. On 27 April 2020 there was a severe windstorm in Turkmenistan. The gales damaged a number of settlements in the Turkmenabat region, leaving hundreds of people homeless. Electricity, gas and drinking water were cut off for several days in places like Lebap, Turkmanabat (partially), Kerki and Farob (completely). Turkmen state television made no mention of the storm. The windstorm also crossed into Uzbekistan, where one death and 41 injuries of various degrees were reported. In contrast to the response of the Turkmen government, Uzbekistan's president Shavkat Mirziyoyev immediately flew to the city of Bukhara, where there was the most damage, to meet with residents.