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Hydra Fire

Greek Reports: Captain of Boat Carrying Kazakhs Says Hydra Fire Was His Fault

The captain of a luxury boat that was carrying Kazakh tourists when it was linked to a forest fire on the Greek tourist island of Hydra in June has taken responsibility for the blaze, according to Greek media. While some circumstances surrounding the fire remain unclear, the statement by the captain undercuts suspicion that initially fell on the group of tourists including Daniyar Abulgazin, who has shares in multiple Kazakh companies and is one of Kazakhstan’s wealthiest business executives. Abulgazin, who rented the boat, had denied wrongdoing in connection with the fire and said he had left Greece as previously scheduled on June 22 after speaking with “representatives of the Greek authorities.” The captain, who is in detention and faces arson charges, said he launched fireworks, one of which landed in the forest and started the wildfire, protothema.gr reported last week. The acknowledgement reversed his earlier account that no fireworks were set off from the vessel. The Greek media outlet did not identify the captain. A dozen other crewmembers were arrested after the fire. Most were released on bail. Prosecutors also filed charges of complicity in arson against the Kazakh passengers, Greek media have said. But the captain’s new testimony, delivered early this month, exonerates “the other crew members and the foreign multimillionaire charterers of the yacht,” ekathimerini.com reported. Abulgazin had referred to “incorrect and misleading” media reports, expressing regret about the fire and promising to cooperate with the Greek investigation.

Migrants

Despite Labor Shortages, Kyrgyzstan Continues to Round-Up Undocumented Migrants

Kyrgyzstan is grappling with a severe labor shortage, yet the government continues to crack down on undocumented migrants. Police raids in Bishkek over the past few days have resulted in the detention of 28 Bangladeshi nationals, who face administrative penalties and were fined for working without valid documentation. This crackdown, however, comes despite an urgent need for laborers, the head of the construction agency in the Kyrgyz Republic stating that the construction industry alone urgently needs at least 10,000 workers. The tension between labor shortages and the crackdown on migrant workers has been an ongoing theme of President Japarov’s tenure. Since March, Kyrgyz authorities have intensified efforts to find and deport illegal migrant laborers, with some 1,500 Pakistanis and 1,000 Bangladeshis apprehended. This campaign reflects the nationalist policies promoted by Japarov and his longtime ally Tashiyev, emphasizing Kyrgyz traditions and customs, which have gained them significant popularity. The support of young Kyrgyz men, who are a crucial pillar for Japarov and Tashiyev, is evident in their backing of measures to curb undocumented migration. The situation escalated on May 17-18, when unrest broke out in Bishkek, leading to the hospitalization of 41 people. The unrest underscored splits within the government, with Deputy Cabinet Chairman Edil Baisalov labeling the attackers as "hooligans," while President Japarov defended the actions of "patriotic youth" who demand strict measures against illegal migrants. The violence targeted foreign students and workers, exacerbating tensions and prompting diplomatic concerns, as seen in the meeting between Kyrgyz Deputy Foreign Minister Almaz Imangaziev and a Pakistani delegation discussing the safety of foreign nationals. Despite assurances from the Kyrgyz government that such incidents would be prevented in the future, the crackdown on migrant workers continues, highlighting the complex interplay between labor needs and nationalist policies. President Japarov has vowed swift action against any threats to state integrity, signaling a tough stance on both undocumented migration and internal dissent. This ongoing tension reveals the challenges Kyrgyzstan faces in balancing economic demands with political and social stability.

Oil & Gas

Is Kazakhstan Preparing to Take on the Oil Consortium “Whales”?

The filed lawsuits and environmental claims totaling $159.6 billion against the consortiums operating the Kashagan and Karachaganak fields reflect the Kazakhstani government’s intention to revise the largest oil & gas contracts. Kazakhstan, due to drought in Central Asia and a drop in oil production after the expiration of major oil & gas contracts by 2040, will likely look like Arrakis, the fictional desert planet from Dune: Part Two over whose valuable commodity the Great Houses struggle. Meanwhile, the Dune sandworms, which produce the spice needed by all the planets, resemble the consortiums developing the Tengiz, Karachaganak, and Kashagan fields – just as huge and just as rare, with almost no such production sharing agreements (PSAs) with 40-year stabilization contracts left in the world. In Kazakhstan, the three operators are known as the “three whales.” What’s going on At the beginning of April 2024, Bloomberg published an article about the claims exceeding $16.5 billion brought forward by Kazakhstan, through PSA LLP, against the consortiums North Caspian Operating Company (NCOC), which is developing the offshore Kashagan field, and Karachaganak Petroleum Operating (KPO). The environmental regulator for the Atyrau region has additionally filed a claim for $5.1 billion against NCOC, while another lawsuit for $138 billion of lost revenue has been launched. Consortium Amount of PSA claim Environmental fine Total NCOC $13 billion + $138 billion $5.1 billion $156.1 billion KPO $3.5 billion $3.5 billion The total amount is possibly the largest in the world for the oil & gas sector. Since 2016, PSA LLP has been the authorized state institution in the production sharing agreements for NCOC, KPO, and the Dunga project (previously owned by Total E&P Dunga GmbH; in November 2023, the state-owned KazMunayGas bought the TotalEnergies stake for an estimated $300 million). Kazakhstan’s Ministry of Energy is currently entrusted to run PSA LLP, while the stakes in Karachaganak and Kashagan are held by KazMunayGas (KMG) and the sovereign wealth fund Samruk-Kazyna (SK). The international arbitration claims followed inspections in 2013-20 that revealed costs not agreed upon with the Kazakhstani government (costs are reimbursed from oil revenues), along with failure to hit planned oil production targets and violations during tenders, etc. The initial amount of the lawsuit against NCOC was raised from $13 billion to $15 billion. The new claim for $138 billion relates to lost revenue “reflecting the calculation of the value of oil production that was promised to the government but not delivered by the field developers,” Bloomberg reported, citing sources familiar with the matter. The $5.1 billion fine levied by regional environmental regulators against NCOC has to do with the storage of excessive amounts of sulfur on site (more than a million tons more than permitted), as well as 10 other Administrative Code violations. Later, however, a court partially satisfied the consortium’s appeal. Deputy General Director of PSA LLP Nurlan Serik has made clear that Kazakhstan intends to challenge the consortium’s costs and failure to fulfil plans only through courts. According to various estimates, about $60...

Kyrgyzstan Strengthens Protection From Family, Sexual, and Gender Violence

The President of the Kyrgyz Republic, Sadyr Japarov has signed a law aimed at strengthening the protection of its citizens from family, sexual, and gender violence. The law provides for amendments to several legislative acts and aims to provide comprehensive assistance to victims of various forms of violence. A key objective is to ensure victims' access to justice and protect their rights and interests. The law is being adopted due to the alarming situation with the level of family and gender violence in Kyrgyzstan. In 2021, more than 10,000 cases were registered, but only 2.5% of them proceeded to court. In 2023, the number of cases increased to 11,000, and 95% of the victims were women. The increasing number of such incidents and the lack of protection for victims necessitated a review of the relevant legislation. The new law is designed to address gaps in legal protection for victims and create stricter measures to punish perpetrators.

Kyrgyzstan, Kazakhstan Urge Nationals to Avoid UK Cities Hit by Violence

Some Central Asian countries have warned their citizens to avoid cities in the United Kingdom where anti-immigrant riots have erupted since late last month. Kyrgyzstan urged its nationals to “temporarily refrain from visiting the cities of Rotherham, Bolton, Blackpool, Hull, Bristol, Stoke-on-Trent, Belfast, as well as the suburbs of Manchester and Liverpool until the situation in these regions stabilizes,” the Ministry of Foreign Affairs said Thursday. “At the same time, citizens of the Kyrgyz Republic currently located in the specified settlements should observe increased security measures, be vigilant and careful, refrain from visiting crowded places and follow the latest news,” the ministry said. It listed +44 7341 185777 as an emergency telephone number, accessible via WhatsApp, for Kyrgyz citizens. Kazakhstan’s embassy has issued similar advice, saying there are emergency contact lines for Kazakh citizens in the United Kingdom as well as their relatives in Kazakhstan. It listed +44 7900 511 535 as an emergency number. Riots in Britain started after the stabbing murders of three girls at a children’s dance event in the coastal town of Southport near Liverpool on July 29. Hundreds of people have been arrested in violence that police say was stirred by agitators promoting anti-immigrant sentiment. Some of the mobs attacked mosques. Despite fears of more unrest, Wednesday night was relatively peaceful as thousands of police officers and anti-racism protesters mobilized to head off the threat.

Uranium Lawsuit Against Kyrgyz Government To Be Considered in Washington, D.C.

A case against the Kyrgyz authorities will be heard in Washington, D.C. in November 2024. At the end of 2022, International Mining Company Invest Inc. - which is headquartered in the U.S. - filed a lawsuit in international arbitration, accusing the Kyrgyz authorities of illegally expropriating investments. The company estimated its losses at $63 million. In 2009, International Mining Company Invest Inc. received the right to use subsoil for geological exploration. In 2013, the country's authorities issued a license to the foreign company to search for uranium and other metals at one more site. International Mining Company Invest Inc. carried out work in three regions of the republic; however, in 2019, a moratorium on exploration and development of uranium and thorium deposits was introduced. The company lost its license and initiated arbitration proceedings at the International Center for Settlement of Investment Disputes. Speaking at a press conference in Bishkek, Kyrgyz Justice Minister Ayaz Baetov said the case will be heard in international arbitration in Washington in November 2024. "The so-called uranium moratorium was the reason for this case's emergence. The case is now being considered. We have our arguments; they have theirs," the official stated. The previous authorities imposed a moratorium on the mining and exploration of uranium and thorium deposits; the new administration lifted the ban, but announced that Kyrgyz companies would develop the deposits.