Kazakhstan Featurees - The Times Of Central Asia

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Nuclear Referendum

Observers From 30 Countries Will Follow the Referendum on NPP in Kazakhstan

The secretary of the Central Referendum Commission, Mukhtar Erman, has announced that 177 international observers will monitor the referendum on constructing a nuclear power plant (NPP) in Kazakhstan. Erman specified that observers represent 30 countries and four international organizations. Major international organizations invited by Kazakhstan include the OSCE, SCO, CIS, and Organization of Turkic States; however, the OSCE will not participate due to its high workload. Deputy Foreign Minister Roman Vassilenko added that 200 foreign journalists from 37 countries, including international media representatives, will work on the day of the referendum. According to Vassilenko, this will ensure transparency and objectivity. The idea of holding the referendum, which will be held on October 6, 2024, emerged against the backdrop of regular problems with energy supply and the need to modernize infrastructure. An active debate has characterized the build-up to the referendum, a project supported by the authorities as a solution to combat energy shortages and carbon dioxide emissions, whilst some quarters of the population remain concerned about environmental risks and Kazakhstan's historical connection to nuclear testing.

Middle Corridor

China Officially Joins the Middle Corridor

It was announced during the 8th International Silk Road Expo in Xi’an in September 2024 that China will formally join the Middle Corridor under the guise of participation by the China Railway Container Transport Corporation (CRTC). This move signals a growing reliance on Central Asia’s trade-route infrastructure potential. China's shift to overland routes is part of a broader strategy to diversify away from traditional maritime routes through chokepoints like the Strait of Malacca, which carry geopolitical risk. Kazakhstan's strategic geographic location naturally makes it indispensable to China’s trade, and infrastructure projects currently underway represent a key component of the Middle Corridor’s potential. In July 2024, Kazakh President Kassym-Jomart Tokayev ratified agreements with China aimed at further developing the Middle Corridor, enhancing both road and rail infrastructure. The country has already been upgrading its rail infrastructure, modernizing dry ports like Khorgos on the Chinese border, and expanding transit facilities at the Caspian Sea port of Aktau. The increased flow of goods through Kazakhstan is evident: over 212 container block trains have passed through the country by September 2024, with the number projected to exceed 300 by the year’s end. These build-outs, and particularly Kazakhstan’s modernization of its railways, go hand-in-hand with the recently finished improvements along the Baku-Tbilisi-Kars (BTK) line, which connects Azerbaijan to Turkey via Georgia. The expansion of the BTK line's capacity from 1 million to 5 million tons per year has now been completed. As a result of all these efforts, the travel time for goods from China to the Black Sea has been reduced to just 10–12 days, highlighting the efficiency of the corridor. Azerbaijan also plays a crucial role in this economic ecosystem. Baku’s port of Alat serves as a critical transit point for cargo crossing between Central Asia and the South Caucasus. Azerbaijan’s collaboration with Kazakhstan, Georgia, and Turkey has led to significant investments in expanding port facilities and upgrading railway systems beyond the crucial BTK link mentioned above. The result is a smoother, more reliable flow of goods from China to Europe. Azerbaijan is winning its bet to become a regional logistics hub. In addition, a Chinese consortium recently secured the contract for the construction of the Anaklia deep-sea port in Georgia, a strategically important site on the eastern edge of the Black Sea. The project was initially awarded to a Georgian-American consortium, but was cancelled in 2020 due to political and legal disputes. Following a new tender process this year, the Chinese consortium emerged as the sole bidder. If supporting infrastructure is adequately developed and the Black Sea’s cargo transit capacity can be significantly enhanced, then the Anaklia port could become a critical node in the Middle Corridor, enhancing its role in Eurasian trade and bolstering regional connectivity. China’s increased reliance on Central Asian, trans-Caspian, and South Caucasus routes is not just about efficiency. It is also a strategic diversification to mitigate the risks posed by geopolitical instability in other regions. Traditional sea routes through maritime choke-points as well as overland routes like...

Bilateral Relations

Lukashenko Turns Up Charm After Kazakhstan Kerfuffle

In August, Belarusian leader Aleksandr Lukashenko drew a Kazakh rebuke after he criticized Kazakhstan for what he described as its tepid support for Russia. Lukashenko was a model of diplomatic etiquette on Tuesday, effusively praising Kazakhstan as a close ally during a ceremony at which he received credentials of foreign ambassadors. “Today there are practically no areas where we do not have common interests. Annual $1 billion trade turnover and successful projects in industrial interaction testify to the high dynamics of bilateral cooperation,” the longtime Belarusian ruler said of Kazakhstan. Lukashenko´s comments were reported by Belarus Today, a state-run media group. The Belarusian president also thanked Kazakh President Kassym-Jomart Tokayev for supporting Belarus when it became a member of the Shanghai Cooperation Organization, a regional security group, earlier this year, according to Belarus Today. Kazakhstan was chair of the organization at the time. Things weren’t as convivial in August when Lukashenko, a backer of Russian President Vladimir Putin, suggested in an interview with Russian state television that Kazakhstan was exploiting Russia, now in a third year of war since its full-scale invasion of Ukraine in February 2022. “We are not starting to cheat like some post-Soviet states. They want to take something from Russia, but give nothing in return,” Lukashenko said at the time. The longtime leader of Belarus, who has crushed opposition over 30 years in power, referred to the dispatch of troops from regional countries to Kazakhstan in a show of support after protests and riots erupted there in January 2022, killing more than 200 people. Most of the troops were Russian; a small contingent came from Belarus. Kazakhstan’s Ministry of Foreign Affairs summoned the Belarusian ambassador after Lukashenko’s remarks and said, in an apparently oblique reference to the Ukraine war, that “all disagreements between states should be resolved by political and diplomatic means.” Kazakhstan’s new ambassador in Belarus is Yerlan Baizhanov, formerly the country’s top diplomat in Vietnam, Cambodia and Laos.

Nuclear Referendum

The Geopolitical Battle for Kazakhstan’s First Nuclear Power Plant

Nuclear power plants currently operate in only 32 countries in the world. Kazakhstan seems poised to join their ranks in the near future; but what does this shift mean for the energy-rich Central Asian nation? Following the collapse of the Soviet Union in 1991, Kazakhstan has been a strong advocate for nuclear non-proliferation and disarmament. Astana not only eliminated its nuclear arsenal, which was one of the largest in the world at the time, but also closed the Semipalatinsk nuclear test site, where the Soviet Union conducted more than 450 nuclear tests over 40 years. Thousands of people in Kazakhstan experienced birth defects and cancer linked to nuclear testing. This history makes the construction of a nuclear power plant in the former Soviet republic a particularly sensitive issue. Nevertheless, a majority of the population in Kazakhstan is expected to support building a nuclear facility in the national referendum scheduled for October 6. But what comes after the vote? If the citizens of Kazakhstan approve the government’s plans to go nuclear, the country might get its first nuclear power plant no earlier than 2035. In the meantime, Astana will have to find a strategic partner to participate in the development of the facility. Building and operation a nuclear power plant requires advanced technology, engineering expertise, and rigorous safety standards – areas where Kazakhstan currently lacks experience. “As a result, the country will likely need to rely on international partners to design, build, and possibly even operate its first nuclear power plant,” said James Walker, CEO and Head of Reactor Development at NANO Nuclear Energy, in an interview with The Times of Central Asia. Although most policymakers in Kazakhstan would like Western companies to build a nuclear power plant in Ulken, on the western shore of Lake Balkhash, at this point the Russian State Nuclear Energy Corporation Rosatom seems to have the best chance of playing a key role in the project. In Walker’s view, Russia has a long history of cooperation with Kazakhstan in the nuclear sector and could be a logical partner, especially given its extensive experience in building and operating nuclear power plants in other countries. “Rosatom has been actively involved in Kazakhstan’s nuclear sector for years, including uranium mining and nuclear fuel cycle activities. This established presence, coupled with Russia’s geopolitical influence in Central Asia, makes Rosatom a strong contender,” stressed the CEO of NANO Nuclear Energy, pointing out that Chinese corporations are also very interested in the potential construction of the first Kazakh nuclear power plant. Indeed, according to reports, the China National Nuclear Corporation offered to build a 1.2 GW nuclear power plant unit in Kazakhstan for $2.8 billion, with the construction taking five years. Another candidate for the project is South Korea’s Korea Electric Power Corporation. The largest electric utility in the East Asian nation reportedly proposed building a water-cooled power reactor –using water as a coolant to transfer heat away from the core. Walker, however, argues that while South Korea has a competitive edge...

TITR

The Future of Transit in Kazakhstan

Increasing the volume of transit cargo through Kazakhstan is a strategic priority for the nation as it aims to become a transportation and logistics hub in Central Asia and the Caspian region, with its railways at the forefront of this effort. TCA spoke with Asem Mukhamedieva, Managing Director for New Projects at KTZ Express JSC, about the company’s current capabilities, prospects, and new projects in this direction. Kazakhstan’s Role in Transit Cargo TCA: Kazakhstan, has become a vital land transportation corridor between Asia and Europe. How does Kazakhstan Temir Zholy (KTZ) contribute to further increasing transit cargo, and what trends have you observed? Mukhamedieva- The volume of transit handled by KTZ Express in the first eight months of this year reached approximately 350,000 twenty-foot equivalent units (TEU). The China-Europe-China route saw a 36% increase, while the China to Central Asia route grew by 17%. Notably, the Trans-Caspian International Transport Route (TITR) dispatched 220 container trains, a twenty-fold increase from last year. TCA: What new routes have been launched, and what is KTZ doing to increase them? - KTZ is continuously expanding its transportation network and logistics services. One significant development is the Trans-Afghan route, which was launched this May. Under a pilot project, containers with aluminosilicate hollow microspheres were shipped from Pavlodar to Jebel Ali Port via Uzbekistan, Afghanistan, Pakistan, and the UAE. Offering competitive terms and tariffs has encouraged more cargo traffic along this route. In July, we cut delivery times in half — down to just five days — on the Xi’an-Altynkol-Tashkent route, compared to the previous 10-12 days. This success is largely due to the new terminal in Xi’an, built by KTZ and its Chinese partners. The terminal consolidates cargo from various Chinese provinces, streamlining logistics processes and significantly improving efficiency. We also launched several new logistics services to boost cargo traffic and strengthen international links. For example, in June, we introduced a regular South Korea-China-Kazakhstan-Central Asia route. We also reopened a previously unprofitable route from China to Iran and back, reducing costs by collaborating with Chinese partners. The Growing Importance of the Trans-Caspian Route TCA: You mentioned the growth of the TITR. Could you elaborate on the regions of China involved, the types of cargo, and what steps are being taken to attract more shipments? - The Trans-Caspian International Transport Route (TITR) has become a critical link in Eurasian logistics. This year, the route achieved remarkable growth. In September, we welcomed the 200th train dispatched via TITR at the Port of Aktau. Transit volumes for the first eight months of this year surpassed annual totals from previous years. Xi'an province leads in shipments, accounting for 57% of the total volume on this route. Other key provinces include Yiwu, Chongqing, Sanping, and Henan. Major markets for these shipments are Azerbaijan (62%), Georgia (23%), Turkey (7%), and EU countries (9%). Over 200 different commodity items were transported, with automobiles, components, textiles, and electronics making up 56% of the total. To maintain this momentum, we are working...

Karaganda Mining Disaster

Karaganda: The Black Heart of Kazakhstan

On October 28, 2023, an explosion at Kostenko Mine in Karaganda killed 46 workers. As the largest industrial accident since Kazakhstan independence, this deeply shook Kazakhstan to its core and resulted in the nationalization of ArcelorMittal Temirtau, who owned the mine. The effects of this accident were most deeply felt in Karaganda, a region and city, which has long stood as the center of coal mining in the country. Coal and Repression: The History of Karaganda Located in the center of Kazakhstan, the city of Karaganda from which Karaganda region gets its name, is deeply intertwined with the coal and metallurgical industries. According to legends, coal was first discovered in the area in 1833 by a local shepherd boy named Appak Baizhanov. In the following decades, a mining settlement would appear in the region owned by the Russian merchant, Nikon Ushakov. The mines would then be sold to British investors in 1905, who controlled them until the Red Army entered the region in 1920. Due to the destruction caused by the Russian Civil War, the early Soviet Government left the coal reserves of the Karaganda Basin untouched for nearly a decade. In 1929, a directive from Moscow about the creation of trust to exploit the coal reserves of Kazakhstan would bring renewed interest to the region. A subsequent decree in 1931 established a separated trust for Karaganda which was to become the “third coal base” of the Soviet Union. The previous coal bases were located in Donets in the Ukrainian SSR, and Kuznetsk in the Russian SFSR. Finally, in February of 1934, Karaganda was given the status of a city and would serve as the administrative center for mining in the region. [caption id="attachment_23855" align="aligncenter" width="1280"] Administrative building of Karlag; image: TCA, Joseph Anderson[/caption] The establishment of Karaganda enticed many workers and specialists from all over the Soviet Union to move to the region. However, not everyone sent to the region came voluntarily, since during the same period the coal trust was being established for Karaganda, the infamous Karlag was being set up by the NKVD. The Karaganda Corrective Labor Camp better known as Karlag was one of the largest GULAG camps; the famous author and dissident, Aleksandr Solzhenitsyn, was sent to Karlag for a brief period. Besides GULAG prisoners, whole ethnic groups, such as Volga Germans, Chechens, and Ingush were forcibly deported to the region during World War II. These deportations as well as imprisoned intellectuals at Karlag would have a lasting impact on the city, making it one of the most cosmopolitan cities in the Kazakh SSR in addition to having very well staffed universities. Before the collapse of the Soviet Union, Karaganda stood as the second most populated city in the Kazakh SSR, only behind the capital of Alma-Ata. In 1960, the first and only blast furnace operating in Central Asia was constructed in Temirtau. It would be at this metallurgical plant that the First President of Kazakhstan Nursultan Nazarbayev would begin his career. By 1978,...