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Kazakhstan Plans to End State Regulation of Fuel Prices

Kazakhstan's Ministry of Energy is considering the phased liberalization of gasoline and diesel fuel prices as part of a broader reform aimed at addressing price disparities with neighboring countries and curbing illegal fuel exports. The proposed changes have been outlined in a draft document published on the Open NAP portal. The reform would gradually shift fuel pricing from state regulation to a market-based system. Since May 2024, Kazakhstan has implemented a differentiated pricing mechanism, but the Ministry of Energy acknowledges that state regulation has made Kazakhstan the country with the lowest fuel prices in the region. This disparity has incentivized “gray” fuel exports - illegal cross-border sales - and contributed to domestic shortages of petroleum products. Currently, a liter of AI-92 gasoline in Kazakhstan costs 205 KZT ($0.39), significantly cheaper than in neighboring countries: Russia: 288 KZT ($0.54) Kyrgyzstan: 385 KZT ($0.72) Uzbekistan: 489 KZT ($0.92) The price gap is similarly wide for diesel fuel: Kazakhstan: 295 KZT ($0.56) Russia: 355 KZT ($0.67) Kyrgyzstan: 427 KZT ($0.80) Uzbekistan: 528 KZT ($0.90) Price differences for gasoline range from 40% to 138%, while for diesel fuel the gap is between 20% and 79%. The Ministry of Energy emphasizes that this price liberalization is crucial for addressing the challenges caused by these discrepancies. According to the Ministry, the reform will help: Prevent illegal fuel exports. Ensure the economic viability of oil production projects. Enable expansion of refinery capacity from 18 million to 28 million tons per year. The modernization of the oil refining sector, spurred by market-based pricing, would also create new jobs and provide additional funding for government programs. “Phased liberalization of prices with priority support for socially vulnerable segments of the population is necessary. It will create a sustainable system for supplying the domestic market and ensure economic feasibility,” the Ministry’s explanatory note states. The Ministry has assured the public that the transition to market pricing will be gradual and carefully managed to avoid sharp or sudden price increases. Authorities also promise strengthened oversight of the fuel and lubricants market to ensure uninterrupted supply and compliance with legal standards. Agricultural producers, a key sector reliant on affordable fuel, will retain access to subsidized pricing under transparent mechanisms. Additionally, the government has pledged to implement social support measures to protect low-income and vulnerable populations from the financial impact of rising fuel prices. “Liberalization will ensure predictability of changes and create conditions for modernization of the industry. Social support will be prioritized, and agricultural producers will continue to benefit from structured access to fuel,” the Ministry emphasized. Kazakhstan’s plan to phase out state regulation of fuel prices marks a significant shift in the country’s energy policy. By transitioning to market pricing, the government aims to address long-standing challenges, including illegal exports and underinvestment in refinery modernization, while also ensuring social protections for vulnerable groups. The success of this reform will depend on how effectively the government balances economic modernization with public concerns over rising fuel costs.

Central Asia Kazakhstan Local Politics Local Politics Kazakhstan

Study Highlights Plastic Waste Challenges in Kazakhstan

Kazakhstan is grappling with a growing plastic pollution problem, as highlighted in a recent study conducted by the Ministry of Ecology and Natural Resources. The research, covering the period from 2013 to 2022, provides critical insights into the increase in plastic consumption, the resulting waste, and the systemic challenges that hinder effective waste management. The findings were part of the regional project "Plastic Waste in Remote and Mountainous Areas of Kazakhstan and Uzbekistan," implemented by the CSD Center (Cooperation for Sustainable Development of the Republic of Kazakhstan). Rapid Growth in Plastic Consumption The study revealed a significant rise in the volume of plastic products entering the Kazakh market over the past decade, increasing from 387,000 tons in 2013 to 855,000 tons in 2022. Key industries driving this growth include: Packaging: Representing over 23% of total plastic consumption, with 196,000 tons used in 2022 alone. Construction: Accounting for 19% (167,000 tons), where plastic is used in durable materials such as pipes and insulation. Transport: Consuming 17% of all plastic due to the increased production of vehicles and the use of lightweight plastic components. Escalation in Plastic Waste The growing use of plastic has led to a corresponding rise in waste. In 2022, plastic waste generation reached 296,000 tons, more than double the amount recorded in 2013. Packaging remains the largest source of waste, comprising 66% of the total, largely due to the prevalence of disposable plastic bags and other single-use packaging materials. By contrast, the construction and transport sectors generated relatively less waste, as the plastic used in these industries typically has a longer lifespan. The study also identified the primary types of plastic waste in Kazakhstan: Polyethylene: 38% Polypropylene: 23% Polyethylene terephthalate (PET): 14% Challenges in Plastic Waste Management The research outlined several obstacles that hinder effective management of plastic waste in Kazakhstan: Insufficient Infrastructure: Existing waste management facilities are unable to handle the growing volumes of plastic waste. Lack of Separate Collection Systems: The absence of infrastructure for sorting waste at the source limits recycling efforts. Low Environmental Awareness: A significant portion of the population remains unaware of the importance of waste sorting and recycling. Recommendations for a Circular Economy To address these issues, the study suggests improving legislation to limit the use of single-use plastic items and promote the adoption of recycled materials. These measures could create favorable conditions for Kazakhstan’s transition to a circular economy, where resources are reused and recycled rather than discarded. Additionally, the research emphasizes the need to develop infrastructure for waste sorting and recycling while raising public awareness about the environmental impact of plastic pollution. Regional Context Kazakhstan’s findings are part of broader efforts across Central Asia to combat plastic pollution. Countries in the region, including Kazakhstan, are exploring initiatives such as phasing out plastic bags to address the growing environmental challenge. For an overview of these regional efforts, see The Times of Central Asia’s reporton plastic bag bans. Conclusion Kazakhstan’s plastic waste study highlights the urgent need for systemic change in managing...

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19th-Century Historic Building Under Demolition in Turkmenistan

The demolition of a 19th-century historic building, formerly the History and Local History Museum and originally a Shiite mosque named after Haji Myalik, has begun in the city of Turkmenabat. Constructed in the 19th century, this architectural landmark was a vital part of Turkmenabat's cultural heritage for decades. The building served as a museum starting in 1967, but in 2011, after more than 40 years, its exhibitions were relocated to a new facility built specifically for that purpose. Despite the building’s historical significance, local authorities opted against restoration or handing it over to the Muftiyat (the official Islamic authority) and instead decided to demolish it. A Unique Architectural Legacy The architectural design of the former Haji Myalik Mosque was distinctive and highly regarded in the region. Tourist guides described it as one of Turkmenabat's most striking landmarks. The facade featured intricate brickwork, three semicircular arches, a prominent high portal, and two small towers capped with pointed domes in Ottoman architectural style. On the right side of the facade stood a minaret with a metal dome, once the tallest vantage point in Chardjui (the historic name of Turkmenabat). Today, this iconic structure is being dismantled piece by piece. The roof has already been removed, and the demolition process is ongoing. A Worrying Trend The demolition of historic buildings in Turkmenistan is not a new phenomenon and has raised alarm among residents and cultural heritage experts. In Ashgabat, the capital, numerous old buildings of historical and cultural importance have been destroyed over the years. Notable examples include the buildings of Karakumstroy, Hotel Turkmenistan, the Turkmenhovayollary Department, and the public garden featuring a monument to N. Aitakov. [caption id="attachment_27727" align="aligncenter" width="2560"] Ashgabat- A row of marble towers in Berzengi; image: TCA, Stephen M. Bland[/caption] A moderately young metropolis, its appellation meaning "City of Love" in Persian, Ashgabat developed around a Russian garrison during the 1880s. Leveled in the earthquake of 1948, prefab Soviet blocks soon sprung from the debris. Shaping his vision, former President Niyazov had these kommunalkas torn down and replaced by boxy, flat-topped marble towers with dazzling, reflective windows. Largely of a uniform eleven storys, their showy ostentation lacks any semblance of functionality, with endless ministry buildings standing unoccupied, overpriced residential blocks home to the affluent few. In 2021, authorities began demolishing four-story residential buildings at the intersection of Turkmenbashi and Atamurat Niyazov avenues, a move that drew criticism from citizens. Experts warn that such actions could result in the irreversible loss of the country’s unique architectural heritage. As the dismantling of the former Haji Myalik Mosque continues, concerns grow about the preservation of Turkmenistan's historic and cultural landmarks, many of which are disappearing under the pressure of modernization.

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Kyrgyz MP Urges Parliament to Preserve Lenin Monument in Bishkek

Kyrgyz parliamentary deputy Iskhak Masaliyev has called on his fellow parliamentarians to refrain from debating the removal of the Vladimir Lenin monument in Bishkek’s Old Square. Speaking during a parliamentary session, Masaliyev emphasized that the proposal to dismantle the statue is both untimely and dismissive of Lenin's historical contribution to the formation of Kyrgyz statehood. Masaliyev reminded lawmakers that while the collapse of the Soviet Union granted independence to many nations, Soviet governance played a pivotal role in establishing the foundations of statehood for certain republics, including Kyrgyzstan. He outlined the historical context of the early 20th century, noting that the territory of modern Kyrgyzstan was then divided - part of it belonging to the Russian Empire and the other to the Kokand Khanate. According to the MP, the October Revolution was instrumental in creating the Kara-Kyrgyz Autonomous Oblast, which later evolved into the Kyrgyz Autonomous Soviet Socialist Republic and, eventually, an independent Kyrgyz state. “Many nations of the world still do not have their own territory. We, on the other hand, have a state with clearly defined borders, and Vladimir Lenin’s role in this is significant. I say this not as a politician, but as a historian,” Masaliyev declared. The MP expressed concern about modern society’s increasing disregard for history, noting that a substantial portion of the Kyrgyz population - around 30 to 40 percent - lived during the Soviet era and were shaped by its values. Erasing the memory of that period, he argued, is both impractical and disrespectful to the past. Masaliyev also pointed out the proximity of Lenin’s monument to a statue of Turdakun Usubaliyev, a prominent Soviet-era statesman and reformer. He argued that commemorating Usubaliyev and other notable figures from the Soviet period while removing Lenin’s monument would be inconsistent, as all were part of the same ideological framework underpinned by Lenin’s leadership. “We must understand that we cannot simultaneously honor some of them while rejecting the memory of others,” Masaliyev stressed. In closing, Masaliyev urged his colleagues to shelve the debate over the Lenin monument, suggesting that the parliament’s focus should instead be directed toward more pressing national issues. The discussion surrounding the Lenin statue gained momentum after parliament deputy speaker Nurbek Sydygaliyev proposed its removal, arguing that the square is named after Turdakun Usubaliyev and should honor his legacy exclusively.

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Register of Corrupt Officials to Be Created in Kazakhstan

Kazakhstan is set to establish a public register of officials convicted of bribery and other corruption-related offenses. Some parliamentary deputies are also proposing additional measures, including banning convicted individuals from leaving the country to ensure they return stolen funds. The Kazakhstani parliament is currently reviewing amendments to anti-corruption legislation. Among the proposals, according to Albina Mautova of the Prosecutor General's Office, is the creation of a public register of individuals convicted of corruption offenses. This registry will be accessible to all citizens through the anti-corruption agency's website. “This register will include individuals who have committed serious and particularly serious corruption offenses. Inclusion in the register will be based on the presence of a conviction that has entered into legal force. Removal from the register will occur only in the event of an acquittal or the expungement of the criminal record,” Mautova explained. The legislative amendments also aim to broaden the scope of criminal liability related to bribery. According to Ulan Sarkulov, deputy chairman of the Anti-Corruption Agency, the new provisions would criminalize not only the act of receiving or giving bribes but also the promise or extortion of a bribe. Sarkulov emphasized that these measures are designed to have a preventive effect by addressing bribery at its earliest stages before damage is caused to the state. However, Sarkulov acknowledged the challenges of enforcement. “The investigative practices of other countries show that proving the promise or extortion of a bribe is difficult. There will never be widespread prosecutions here. International experience demonstrates only a handful of such cases globally,” he noted. Mazhilis deputy Azat Peruashev has called for an additional provision to bar convicted corrupt officials from leaving Kazakhstan. He argues that such a restriction would help recover stolen assets taken out of the country. “As our experience in recovering capital shows, the most effective measure is a ban on traveling abroad. Major corrupt officials often don’t simply take bribes in cash; they transfer funds to offshore accounts, re-hide them, and make it nearly impossible to trace. Sometimes, even our law enforcement agencies are unaware of how much money they have or where it’s located,” Peruashev stated. He further explained, “These individuals serve reduced sentences or pay fines, then go abroad to access the billions they’ve stolen—wealth they could never have earned legally. If they’re forced to remain in Kazakhstan, they will be more likely to return the stolen funds if they want to use them.” The Times of Central Asia previously reported that, according to Transparency International's 2023 Corruption Perceptions Index (CPI), Kazakhstan was ranked as the least corrupt country in Central Asia, marking a significant achievement in the region's fight against corruption.

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Kazakhstan Limits Payment Card Validity for Non-residents

The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARDF) has introduced new rules limiting the validity of payment cards issued to non-residents to one year. Exceptions are made for businessmen, investors, and diplomats. The changes are intended to reduce risks associated with drug trafficking and digital asset transactions. The ARDF clarified that the new restrictions do not apply to payment cards already in use. Under the updated regulations, banks are required to closely monitor transactions linked to drug trafficking; transfers to digital asset exchanges not affiliated with the Astana International Financial Centre (AIFC); and payments to electronic or online casinos. Banks must also scrutinize customers holding more than five cards at a single bank or three cards at three different banks. The new measures include stricter verification requirements for beneficial owners (BO): individuals who ultimately benefit from a company or assets, even if these are registered under another name. Financial institutions are now mandated to use all available tools, including official documents and public records, to identify the actual owners of assets. Previously, beneficial ownership was determined based solely on a person holding 25% or more of a company’s authorized capital. These reforms aim to enhance the transparency of financial transactions and prevent illegal activities, including fraud, money laundering, and other financial crimes.