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Uzbekistan Moves to Penalize Financing of Mass Disturbances

Uzbekistan’s Parliament, the Oliy Majlis, is taking decisive steps to address the organization and financing of public disturbances. On December 11, the Legislative Chamber approved a draft law amending Article 244 of the Criminal Code. Passed in its first reading, the amendments aim to strengthen the country’s legal framework for tackling mass disturbances. During a parliamentary session on December 24, the draft law advanced further, reaching its third reading and gaining adoption. The updated Article 244 introduces several significant changes: A new third section establishes specific liability for individuals undergoing training with the intent to participate in mass disturbances. A fourth section introduces fines for financing such activities. A fifth section provides an exemption from criminal liability for individuals who voluntarily report to law enforcement after undergoing such training. These amendments are designed to deter organized disturbances while promoting cooperation with authorities.

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Kazakh MP Zhanbyrshin Criticizes Air Astana

Kazakh MP Yedil Zhanbyrshin has voiced strong criticism of Air Astana, calling for more Kazakh-language content on its flights and denouncing the airline’s complex refund and compensation processes. Zhanbyrshin directed his remarks at Air Astana CEO Peter Foster, emphasizing the need for the airline to prioritize the Kazakh language, particularly for flights operating within Kazakhstan. “We have repeatedly raised this issue, and it is time to bring the situation in line with the country’s laws. Onboard content is predominantly presented in another language, with Kazakh rarely used. Why is the state language not given priority?” the MP stressed. He further reminded the airline of its obligation to comply with national laws and uphold citizens’ rights. “Mr. Foster, when you first came to Parliament, you were asked only a couple of questions. Working here, you must protect the rights of Kazakhstanis, honor and respect the country’s laws, and create appropriate conditions. Don’t laugh! It’s not funny. You are sitting here, treating us as if we are not people. We are not aborigines in Africa [sic] who don’t understand anything. Don’t play with us, laughing in our faces. This is Parliament! We are representatives of the people, elected by the people,” Zhanbyrshin declared. Zhanbyrshin also criticized the airline’s refund policies, describing them as excessively convoluted. He recounted his personal experience of trying unsuccessfully for five months to secure compensation for a 12-hour flight delay. “It is almost impossible for an ordinary person to navigate the application process and find the necessary information on the website. This is a deliberately complicated process,” he said. He urged other airlines, including SCAT, to simplify their procedures. Zhanbyrshin’s comments follow another controversy involving Air Astana. In November, MP Irina Smirnova sued the airline after her flight was rescheduled at only seven hours' notice. Smirnova sought moral compensation of one tenge for the inconvenience but lost the case. She has since announced plans to appeal.

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Astana’s Long-Awaited LRT Project Set to Launch Next Year

Zhenis Kassymbek, the Akim (governor) of Kazakhstan’s capital Astana, has announced that the city’s first light rail transit (LRT) line will launch by the end of next year, marking a significant milestone in a 13-year-long construction project fraught with delays and controversies. The LRT project, envisioned as a high-speed transport system running on elevated tracks to bypass traffic, began construction in 2011. Initially, the line was slated for completion by 2017 to coincide with the EXPO international exhibition. It was intended to connect the Astana-Nurly Zhol railway station with the capital’s airport. While the railway station opened on time, the LRT project was halted in 2013 due to high costs and concerns over its financial viability. The project was revived in 2015 when Astana’s Akimat signed a construction deal with a consortium of Chinese companies, China Railway International Group Limited and Beijing State-Owned Assets Management Co., Ltd. However, further delays occurred when funds — amounting to over 80 billion tenge ($200 million at the time) — were frozen in the accounts of the now-defunct Bank of Astana. Construction began with the installation of support pillars, but the Chinese contractors abandoned the project due to funding issues. In 2019, Kazakhstan’s investigative authorities intervened. Talgat Ardan, the former head of Astana LRT, and Kanat Sultanbekov, an ex-deputy mayor of Astana, were accused of embezzling nearly 30 billion tenge. This included inflating project costs and awarding overpriced contracts. Both were sentenced in absentia to seven years in prison in May 2023. Despite initial skepticism from President Kassym-Jomart Tokayev, who questioned the project’s ridership potential given its 22-kilometer length and route, the decision was made to proceed. Former Akim Altay Kulginov argued that dismantling the incomplete infrastructure would cost more than completing it. Under Kassymbek, construction has progressed. “The first LRT trains will arrive in August or September next year. We expect to have 15 trains operational by fall, with technical testing by the end of 2024 and full service in early 2026,” Kassymbek stated during a briefing. The elevated tracks are nearing completion, with rail-laying in progress. Signal installation is set to begin in spring. The Akimat anticipates the line will serve approximately 20,000 passengers daily. The fare for LRT rides has yet to be finalized. Kassymbek announced that the pricing would remain affordable. However, he stopped short of providing specifics. In 2017, the proposed fare was 300 tenge per ride, three times the cost of a bus ticket at that time. Current bus fares in Astana range from 110 tenge for regular routes to 250 tenge for express routes. Given the LRT’s total project cost of $1.88 billion, fares significantly higher than bus rates may be needed to achieve profitability. Despite this, the LRT could address pressing issues, such as Astana’s daily traffic jams. Currently, buses are the only public transport option in the city. “We aim to expand roads, increase bridges, and enhance public transport to encourage residents to switch from private vehicles,” Kassymbek said. He also suggested that Turkestan and...

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Kazakh President Picks New Economy Minister Amid Reforms, Uncertainty

Kazakh President Kassym-Jomart Tokayev replaced the economy minister on Saturday, a move that came as Kazakhstan struggles with a depreciating currency even though it earned international praise for economic prudence in recent months. The Cabinet change also comes ahead of the January inauguration of U.S. President-elect Donald Trump, who has warned of more tariffs in his second term. Nurlan Baibazarov, who was appointed as deputy prime minister and national economy minister in February, was replaced by Serik Zhumangarin, an experienced hand whose previous posts included deputy economy minister, trade minister and head of Kazakhstan’s Agency for Protection and Development of Competition. He was also among the several deputy prime ministers in the Cabinet and retains that title as well. Zhumangarin was tasked in his new job with ensuring Kazakhstan’s economic growth, implementing structural changes and improving budget and tax policies, according to the prime minister’s office. “In addition, the Ministry of National Economy needs to pursue a balanced policy of business support and a balanced policy of tariff regulation in order to ensure economic growth in priority sectors,” the office said. While global economic policy-makers are preparing for uncertainty over planned tariffs and other measures when Trump takes office, the president-elect and Tokayev agreed in a telephone conversation this month to collaborate on trade, investment and other areas. In September, the Moody's Ratings agency upgraded Kazakhstan's long-term local and foreign currency issuer ratings to Baa1 from Baa2 and changed the outlook to stable from positive. Moody’s applauded institutional and economic reforms in Kazakhstan, as well as efforts to diversify and move away from hydrocarbons, but warned of the risk of geopolitical tensions and “secondary” sanctions related to Western economic pressure on Russia because of the war in Ukraine. In October, the International Monetary Fund predicted GDP growth in Kazakhstan of 3.9% for 2024, with growth expected to increase in 2025 despite uncertainty. It applauded what it called Kazakhstan’s tight monetary policy and commitment to exchange rate flexibility. Even so, Kazakhstan’s currency later came under increased pressure. The central bank said early this month that it had spent more than $1 billion in foreign exchange interventions since mid-November in an effort to stabilize the declining currency, which passed the threshold of 500 tenge to the U.S. dollar and hit record lows. Kazakh officials attributed the drop to the global appreciation of the dollar, a decrease in oil prices, the falling Russian ruble and other factors. Born in 1969 in Aktobe, Kazakhstan, Zhumangarin, the new economy minister, has also worked on competition and antitrust regulation for the Eurasian Economic Commission, a regulatory body that oversees the Eurasian Economic Union. The group aims at integrating the economies of the former Soviet states of Kazakhstan, Kyrgyzstan, Russia, Armenia and Belarus.

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Kyrgyzstan Unveils Ambitious Growth Plans at People’s Kurultai

On December 20, Bishkek hosted the third People’s Kurultai (Congress), a platform for direct dialogue between representatives of local communities from across Kyrgyzstan and the country’s top leadership. The event featured opening remarks by President Sadyr Japarov and a detailed address by newly appointed Chairman of the Cabinet of Ministers, Adylbek Kasymaliyev, who outlined the government’s economic priorities and strategic plans for the future. Japarov set the tone for the event by sharing his vision for Kyrgyzstan’s development priorities. He announced that construction of the long-anticipated China-Kyrgyzstan-Uzbekistan railway will commence on December 27. Kasymaliev, in his address, emphasized Kyrgyzstan’s ability to sustain economic momentum, citing the country’s 9% annual GDP growth rate over the past three years. He highlighted key initiatives aimed at transforming Kyrgyzstan’s economic landscape, including: Strategic Infrastructure Projects: Kasymaliyev underscored the significance of the China-Kyrgyzstan-Uzbekistan railway, which is expected to create new economic centers and logistics hubs, effectively positioning Kyrgyzstan as a "land port" in the region. Hydropower and Renewable Energy: As a reliable partner in Central Asia’s hydropower sector, Kyrgyzstan will continue collaborating with Kazakhstan and Uzbekistan on the flagship Kambarata-1 hydroelectric power plant. Kasymaliyev also announced plans to expand solar and wind energy, eliminate state monopolies in the energy sector, and create conditions to attract private investment. Agriculture and Food Security: The government will prioritize agricultural processing to add value to raw products, ensuring food security and bolstering rural economic development. Construction as an Economic Driver: With construction contributing 7.4% of Kyrgyzstan’s GDP - a tenfold increase since 2013 - Kasymaliyev called the industry a vital indicator of economic growth. He noted that construction has significantly improved citizens' well-being over the past three years. Government’s Strategic Goals Kasymaliyev laid out an ambitious roadmap for the Cabinet of Ministers, aiming for the following by 2030: Economic Growth: Maintaining a GDP growth rate of 9% and achieving a GDP of $30 billion. Income Growth: Raising GDP per capita from $2,500 to $4,000. Economic Transition: Shifting from a services-oriented economy to an industrial-agrarian model. Support for Small and Medium Businesses: Increasing their share in GDP from the current 40.5% to 50%. Poverty Reduction: Lowering the poverty rate to 17%. Education Expansion: Ensuring 80% of preschool-age children have access to kindergarten. Kasymaliyev’s address underscored the government’s commitment to comprehensive economic reforms and regional cooperation. His plans reflected an optimistic vision for Kyrgyzstan’s development while addressing key challenges in energy, infrastructure, and social services.

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Kyrgyzstan MP Proposes Legalization of Marijuana

At a recent session of the Jogorku Kenesh, Kyrgyzstan's parliament, Kyrgyz MP Dastan Bekeshev proposed revising the country’s approach to drug policy. Bekeshev suggested distinguishing between the lesser and greater evils of drug use, advocating for the legalization of light natural substances, such as marijuana, while emphasizing the dangers of synthetic drugs. Bekeshev argued that banning and destroying natural drugs only drives up their prices, pushing young people toward cheaper but far more harmful synthetic alternatives. He stressed that this approach exacerbates the drug problem rather than solving it. The idea of legalizing light drugs is not new for Bekeshev. In 2019, he proposed creating a designated zone at the former Manas airbase where the sale and use of light drugs would be permitted. Similarly, in 2017, former National Bank head Tolkunbek Abdygulov suggested that legalizing marijuana could help boost tourism in Kyrgyzstan. These proposals have sparked heated debates among Kyrgyz society and lawmakers, with opinions divided over balancing drug control with reducing the negative consequences of drug use. Regional Context The debate on legalizing light drugs is not unique to Kyrgyzstan. Across the Eurasia region, similar proposals have surfaced but have yet to gain official approval. In 2013, Russia called on CIS countries to adopt a joint statement opposing the legalization of light drugs, citing the potential risks of their spread. In 2023, Russian Interior Minister Vladimir Kolokoltsev reiterated Moscow’s firm stance against legalization, blaming Western propaganda for negatively influencing youth. Belarus has also explored the idea of legalizing psychedelics and other light drugs. However, no official measures have been enacted, reflecting the prevailing opposition to drug legalization within the CIS. Bekeshev’s proposal continues to fuel conversations about whether Kyrgyzstan could break with the regional norm and take a different approach to drug policy. As the debate unfolds, questions remain about the potential economic and social impacts of such a move.