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Stepping Out of Stalin’s Shadow: Kyrgyzstan and Tajikistan Demarcate 90% of Border

Representatives of the Kyrgyz Republic and Tajikistan met in Bishkek on February 5th to complete negotiations on another 3.71 km of the common state border, the press service of the Cabinet of Ministers of the Kyrgyz Republic has reported. The next meeting will be held in Tajikistan, with no date yet specified. Currently, approximately 90% of the border has been demarcated, with the remaining 10% still considered disputed. A long-standing source of conflict between the two nations, it is emblematic of the problem that even the length of the border - sometimes cited as being 975-kilomtres long, and at others times 972-kilomteres - is rarely agreed upon. As of January 2023, Tajikistan’s President Rahmon stated that 614-kilometres had been settled upon, backtracking on a previously stated figure of 664. In a sign of thawing relations, however, on November 9th 2023, the Cabinet of Ministers of the Kyrgyz Republic announced that a further 17.98 kilometers of the border had been agreed. With its scant natural resources and dwindling water supplies, the border between Kyrgyzstan and Tajikistan has been the scene of numerous skirmishes for many years. In 2014, all borders between Kyrgyzstan and Tajikistan were closed indefinitely to Kyrgyz and Tajik citizens following clashes over a bypass road in disputed territory; mortars were fired and both armies suffered casualties. Trouble spilled over again throughout 2021 and 2022, reportedly starting over a water dispute in the Vorukh enclave, and leaving an unknown number in the hundreds killed, and up to 136,000 people evacuated. An enduring example of the chaos left behind by the USSR, the arbitrary division of Central Asia into Soviet Socialist Republics wholly disregarded existing cultural and geographical realities. This is exemplified by Stalin's application of Lenin’s policy on the “self-identification of working people,” a classic divide-and-rule play which saw culturally Tajik cities such as Samarkand and Bukhara being incorporated into Uzbek territory. In exchange, Tajikistan was given the inhospitable Khojand landmass surrounding the Fan Mountains. As late as 1989, Tajikistan petitioned Mikhail Gorbachev for the ‘return’ of Samarkand and Bukhara. This haphazard division also isolated around 100,000 residents in the Ferghana Valley from their central governments, creating eight large enclaves. Although three of these enclaves had populations fewer than 10,000 and two were used exclusively for pastures, the remaining three - Sokh (Uzbekistan within Kyrgyzstan), Vorukh (Tajikistan within Kyrgyzstan), and Shakhimardan (Uzbekistan within Kyrgyzstan) have repeatedly proven problematic, particularly when countries enforce strict border regulations in response to disputes and disagreements over demarcation arrangements. These enclaves have been hotbeds for conflict: between 1989 and 2009, the Ferghana Valley witnessed approximately 20 armed conflicts, and in 2014 alone, Kyrgyzstan reported 37 border incidents.

Kazakhstan And Kyrgyzstan Address Border And Water Issues

Kazakhstan and Kyrgyzstan will be working together to open an additional checkpoint for goods vehicles on their countries’ border. They are also set to further their cooperation in the water and energy sectors. These agreements were reached at a meeting between the Kazakh prime minister, Alikhan Smailov, and the chairman of Kyrgyzstan’s cabinet of ministers Akylbek Japarov in Almaty on February 1st.  Kyrgyzstan has complained for years about long lines at the Kazakh border for its cargo trucks bringing goods to Russia through Kazakhstan. The most recent big traffic jam occurred on the Kyrgyz side of the border in August 2023, when more than 600 trucks were stuck at the crossing.  These delays were caused by Kazakh authorities carrying out enhanced checks on trucks entering the country from Kyrgyzstan, ostensibly to combat illegal border activity. However, the situation caused speculation that the jams were a result of a dispute over irrigation water resources between Kazakhstan and Kyrgyzstan. Irrigation water remains an issue in Kazakh-Kyrgyz relations. Last summer the southern regions of Kazakhstan experienced a severe shortage of water for their fields, while upstream Kyrgyzstan also lacked water and couldn’t supply enough of it to its northern neighbor. Kazakhstan, especially its dry southern regions, is dependent on water coming from Kyrgyzstan.  At the meeting on February 1st Mr Smailov also spoke about the growing trade between the two countries, with bilateral trade growing by 12% and reaching $1.3bn between January and November 2023.

Kyrgyz Gold Mines Produce Over 20 Tons Annually, But Local Jewelers Pay Above Global Price

Jewelers in Kyrgyzstan produced goods worth $1.6 million in 2023, five times more than in 2022, the Ministry of Economy and Commerce of Kyrgyzstan has stated. The ministry said the jewelry industry is important for the republic, not only because of its income, but also because of its importance in the country's culture, history, and tourism, and the government will support it in every way possible. "As part of the state support to date, jewelry manufacturers pay VAT with an 80% reduction. The leadership of the ministry highly appreciates the contribution of manufacturers to the preservation and development of this beautiful art," Deputy Minister of the Economy and Commerce, Ainura Usenbekova said at a meeting with jewelers. Meanwhile, the jewelers noted that despite the fact that more than 20 tons of gold is mined annually in Kyrgyzstan, the main problem for their industry is the supply of this precious metal. "The situation in this area has not changed for many years. We do not have physical access to metal, and if we do, it is at an inflated price. Gold bars sold to us by the National Bank between 5 and 20% more expensive than the global gold price. Plus, another 5% is added by Kyrgyzaltyn," said Stalbek Akmatov, president of the Kyrgyz Jewellers Union. Kyrgyzaltyn a Kyrgyz state company which controls gold circulation in the country Jewelers believe that until issues with the price of gold are settled so it's sold on the domestic market at prices comparable to those on the London Mercantile Exchange, serious development of the industry is out of the question. The Ministry of the Economy stated that they are aware of the problem, and the authorities are ready to discuss and work on creating competitive conditions for the continued development of the industry.

Kyrgyzstan Wins ICC Case Against Kazakh State Gas Company

Officials at the International Chamber of Commerce's (ICC) International Court of Arbitrations in Paris, France, have ruled unanimously ruled in favor of the Kyrgyz Republic in a case brought by Kazakhstan's state natural gas company QazaqGaz that sought $35 million, according to the Ministry of Justice of the Kyrgyz Republic. The Kazakh company's claim was filed in 2020. QazaqGaz had originally sought $35 million during the arbitration proceedings, but later reduced its claims to $15 million by waiving its claim to lost profit. The claims against the Kyrgyz government were based on "expropriation and other violations of the claimant's rights." In 2004, QazaqGaz, together with the Kyrgyz national gas operator, JSC Kyrgyzgaz, established a joint venture (JV) for the purpose of modernizing and operating the Kyrgyz section of the Bukhara-Tashkent-Bishkek-Almaty gas trunk-line.  Under the agreement, the Kyrgyz gas operator transferred its share of the gas pipeline to the new JV. The investment agreement called for pipeline modernization, but later the contract was terminated by mutual consent. The Kazakh company then made claims based on three legal instruments: the Kyrgyz-Kazakh intergovernmental agreement on the promotion and protection of investments; the International Energy Charter, which includes substantive guarantees for the protection of foreign investments; and the Kyrgyz Republic's law on investments, which protects investors coming into the country. "The arbitration tribunal agreed with the Kyrgyz Republic's argument on the expiration of the statute of limitations on the plaintiff's claims arising from the Law on Investments in the Kyrgyz Republic and considered them inadmissible," the Kyrgyz Ministry of Justice said in a statement. It's worth noting that according to Kyrgyz law, the statute of limitations is three years from the moment the claimant discovered the violation of their rights. The International Arbitration Court rejected the claim on two other legal instruments. According to the Kyrgyz Ministry of Justice, the arbitration panel agreed with the defendant's argument that the actions of Kyrgyzgaz - which allegedly violated the rights of the plaintiff - cannot be attributed to the Kyrgyz Republic under the rules of international law on state responsibility. Therefore, the Kyrgyz Government cannot be held liable for the actions of Kyrgyzgaz in allegedly wrongfully terminating the contract. The International Arbitration Court ordered the Kazakh company to reimburse the Kyrgyz side for 60% of its arbitration costs. The decision can be appealed within one month. KyrgyzGaz is now called Gazprom Kyrgyzstan, and is owned by the Russian state gas company.

Kyrgyz Republic Unaffected by Recent Earthquake, Says Chief Seismologist

In the aftermath of a recent seismic event, Kanat Abdrakhmanov, Kyrgyzstan's chief seismologist, was quick to reassure residents via a Facebook post that no populated areas in the Kyrgyz Republic were adversely affected. Apologizing for his delayed response due to a high volume of calls, Abdrakhmanov confirmed the occurrence of a significant earthquake. He explained that while the epicenter located in China experienced an intensity of 8-9 points, the impact in Bishkek was considerably less, registering at 3-4 points. He further mentioned that there were three additional aftershocks following the main quake, but these were far too distant to be felt in the Kyrgyz Republic. Drawing on his expertise and previous earthquake patterns, he assured the public that no significant tremors were expected after the initial shock. Abdrakhmanov ended his message with words of comfort for his fellow citizens, urging them to remain calm and not to succumb to fear. His reassurances seek to prevent panic and ensure that misinformation does not spread, contributing to stability and peace of mind during this potentially stressful time.

Despite Challenges, Kyrgyzstan Showed Steady Economic Growth in 2023

Despite global uncertainties, Kyrgyzstan’s economic development in 2023 showed good results, the country’s Ministry of Economy and Commerce said on January 16th. Economic growth over the past three years averaged 6.9% — 5.5% in 2021, 9% in 2022, and 6.2% in 2023, indicating the stability of the economy and its gradual adaptation to the post-Covid world and current geopolitical uncertainty, the ministry said in a statement. According to preliminary estimates from the National Statistical Committee, in 2023 Kyrgyzstan’s gross domestic product amounted to $13.7 billion. In construction, growth was at 10.3%, in the services sector 6.2%, in industry 2.7%, and in agriculture 0.6%. Industries producing goods accounted for 32.3% of GDP, and industries providing services 50.8%. The volume of foreign trade from January-November 2023 amounted to $13.9 billion, an increase of 29% compared to January-November 2022. Kyrgyzstan’s exports amounted to $2.8 billion and increased by 36.7%, and imports amounted to $11.1 billion, up 27.2%. In the structure of trade turnover, exports accounted for 20.2%, and imports 79.8%. Kyrgyzstan’s trade with fellow member states of the Eurasian Economic Union (EEU) - Armenia, Belarus, Kazakhstan, and Russia - amounted to $3.9 billion, a decrease of 11% compared to January-November 2022. Kyrgyzstan’s largest trading partners were Russia (65.9%) and Kazakhstan (31.7%). Meanwhile, Kyrgyzstan’s trade with countries outside the EEU from January-November 2023 amounted to $10 billion, a 1.6-fold increase compared to January-November 2022.