Kyrgyzstan Features - The Times Of Central Asia

Viewing results 487 - 492 of 914

The Fall and Fall of Salim Abduvaliev – Kyrgyz Authorities Place Uzbek “Kingpin” on Wanted List

The State Committee for National Security of Kyrgyzstan (GKNB) has issued an arrest warrant for the already imprisoned 73-year-old Salim Abduvaliev, who for decades was one of Uzbekistan's most prominent individuals. As part of the investigation, evidence was obtained that Abduvaliev had financed the activities of an organized criminal group led by Kamchybek Asanbekovich Kolbaev, an individual linked to heroin trafficking who was wanted by the U.S. Department of State and was a member of the international criminal group, the "Brothers’ Circle," or “Bratva”. Kolbaev was killed in Bishkek in a security operation in October 2023 at the age of 49. In a dramatic fall from grace, in March of this year, Abduvaliev was sentenced to six years in prison in Uzbekistan for “arms trafficking”. Initially a fan of President Mirziyoyev, even being photographed wearing a t-shirt proclaiming “My President” emblazoned with Mirziyoyev’s image, Abduvaliev eventually fell afoul of reforms and a crackdown on corruption. “Whether it is criminal groups… or officials mired in corruption, if someone flouts the law and causes harm to the state and society, we will never be able to stand by and watch it,” Mirziyoyev said in December 2023. “In ‘New Uzbekistan,’ the law must prevail, and punishment for crimes must be inevitable”. Having been hugely influential in CIS countries for decades, Abduvaliev now also stands accused in Kyrgyzstan of establishing illegal channels for transporting narcotics to Europe. According to the GKNB, Abduvaliev regularly provided material support to Kolbaev and helped him to become the leader of the Kyrgyz criminal world and rank among the most influential criminal figures in the region. In their indictment, the GKNB stated that Kolbaev and Abduvaliev had a close relationship; pictures showing Kolbaev’s visits to “celebrations and other events” organized by Abduvaliev in Uzbekistan number among the evidence. Based on the collected materials, Abduvaliev was placed on the interstate and Interpol databases by the Oktyabr District Court of Bishkek. Widely-known as "Salimboy-Boyvaccha" (which can be used to mean “grandfather”, “rich man”, or “dandy”), Abduvaliev previously held the position of Vice President of the National Olympic Committee and President of the Wrestling Association of Uzbekistan. He was also an associate of the mob boss, Gafur Rakhimov, considered to be one of the most prominent drug lords in the CIS. [caption id="attachment_21414" align="alignnone" width="700"] Image: GKNB of the Kyrgyz Republic[/caption] A mainstay of Central Asian crime circles, Abduvaliev was in the aluminum business with the notorious Michael Cherney – declared by the FBI to be an “organized crime figure” - sponsored the participation of Anatoly Bykov – since jailed for murder - in elections in Krasnoyarsk Krai in Russia. A 2012 article in Argumenty I fakty cites an “FBI Organized Crime” report as stating that in 1987, when Mikhail Cherney came to “conquer Moscow,” he came with “recommendation letters [from] respected” Tashkent businessmen known by their nicknames, Gafur and Salim.” A well-connected source who wishes to remain anonymous for their safety told TCA that “in Uzbekistan there was no single business...

Steel Highways: The State of Central Asia’s Railways

Railways in Central Asia have always played an important political and economic role, but amid the current geopolitical turbulence, they have become a crucial means of transporting goods from China to Europe and the Middle East, bypassing sanctioned Russia. But what is the state of Central Asia's railway industry, and is it up to the new challenges? The history of rail transport in Central Asia dates back to the end of the 19th century. In 1874, a special commission of the Russian Empire recognized the need to construct a line from Orenburg to Tashkent. Later, however, strategic considerations forced a change of plan and to ensure a stable connection between the Turkestan and Caucasus regions, the first steel highway in Central Asia would be built to connect Tashkent with the eastern coast of the Caspian Sea. This was an active period of the so-called Great Game, when Russia and Great Britain competed in Central Asia. Since then, the geopolitical importance of railways in the region, which lacks access to oceans, has not decreased whatsoever. Indeed, amid armed conflicts in the Middle East and between Russia and Ukraine, railways have become even more important given their role in ensuring the movement of goods along the Trans-Caspian International Transport Route (TITR) and the International North-South Transport Corridor (INSTC). Against this backdrop, Kazakhstan's President Kassym-Jomart Tokayev has tasked the national railway company Kazakhstan Temir Zholy (KTZ) with leading the transformation of the country into a transport and logistics hub. Kazakhstan: A story of steady development The length of Kazakhstan's mainline rail network is over 16,000 km, with over 800 stations and crossing points. The freight car fleet exceeds 120,000 units, while locomotives number more than 1,700. Kazakhstan’s railways account for 70% of freight traffic, and 60% of passenger traffic in the country. Just under 1% of the country’s population is employed in the rail industry. According to the KTZ's annual report in 2023, container transit rose 14% year-over-year to 1.282 million TEU (twenty-foot equivalent units), which drove a 30.6% year-on-year rise in operating income to KZT1.934 trillion, while net profit came in at KZT136.8 billion ($286.8 million). The volume of freight transported between Kazakhstan and China was also up 22% to 28 million tons. In addition, KTZ reported the completion of large-scale track repairs in 2023, with 1,443 km of railway track repaired, double the figure achieved in 2022. The start of large infrastructure projects was also noted. In particular, construction was launched of the Darbaza–Maktaaral and Bakhty–Ayagoz lines (with a third border crossing with China set to be opened in 2027), while construction of the bypass line around Almaty also commenced. Over 300 km of the second track was laid on the Dostyk-Moyynty railway section. Finally, a Kazakh transport and logistics terminal was opened in the Chinese dry port of Xi'an. Uzbekistan: First high-speed rail in Central Asia O’zbekiston Temir Yo’llari (UTY), Uzbekistan's national rail carrier, was founded on November 7, 1994, taking over the lines of the Soviet-era Middle...

Amid Russia-Ukraine War, Top EU Diplomat Promises Closer Cooperation with Central Asian States

Josep Borrell, Vice-President of the European Commission and High Representative of the European Union for Foreign Affairs and Security Policy, visited Central Asia to meet with the presidents of Kazakhstan and Kyrgyzstan. This trip by Borrell, whose term ends in October 2024, underscores the region's growing global importance in terms of trade and energy security, especially given the ongoing war between Russia and Ukraine. Borrell arrived in Kazakhstan for an official visit on August 1, marking his second diplomatic trip since his appointment as the EU’s foreign affairs chief. Explaining the purpose of the visit, he said “as my mandate as a representative of the European Union ends in three months, it was very important for me to come here to Astana to reaffirm the strong interest and commitment of the European Union to strengthen cooperation with Central Asia in general and with Kazakhstan in particular as the strongest country in the region.” Europe’s realization of Central Asia’s strategic value has recently become more apparent. In a presentation to investors on January 29, 2024, Borrell detailed the EU's growing interest in Central Asia, citing Russia's conflict with Ukraine as a driving force behind this policy reorientation. Borell asserted that the EU regarded Russia as a security concern and is committed to lessening its dependence on Russia. He impressed the same point on Central Asian audiences and called for strengthening trade relationships as well as diminishing reliance on Russia through the Global Gateway, a strategy by the European Union to invest in infrastructure projects worldwide. Notably, the primary land routes from Central Asia to the EU currently traverse Russian territory. The EU’s preferred corridor, known as the Trans-Caspian International Transport Route, is in high demand with volume of cargo transportation in 2023 of more than 2.7 million tons, 86% higher than in 2022. This capacity is projected to rapidly expand as infrastructure investments become operational. “I used to say that four years ago, when I came to Brussels, Central Asia was a little bit in the middle of nowhere – and now, you are in the middle of everything… Everything that matters between Europe and Asia goes through you”, said Borrell. Borrell's first trip to Kazakhstan as the EU’s top diplomat was in November 2022. Since that time, the country has become increasingly significant for Europe as a transport corridor, an alternative energy partner (oil, green hydrogen, and nuclear), and a supplier of scarce critical materials used for the development of technology products. In this regard, Kazakhstan is not only crucial for Europe and its Western allies but also for Russia and especially China, both of which are competing for trade and investments in the country and in the broader region. For Uzbekistan, Russia is boosting its gas exports and is planning to construct nuclear power plants. China has invested billions of dollars in transport infrastructure investments in Central Asia under its Belt and Road Initiative, which has significantly enhanced regional connectivity. Rather than aligning exclusively with one power bloc, Kazakhstan’s...

Kyrgyz Stock Exchange

Kyrgyz Stock Exchange Continues to Grow

The Kyrgyz Stock Exchange (KSE) is the leader among the countries of the Eurasian Economic Union (Russia, Armenia, Kazakhstan, Kyrgyzstan, Belarus) in terms of trading volume growth. The volume of capitalization for the second quarter of 2024 amounted to $636 million. The indicator increased five times compared to the same period last year. In 2022 the exchange began trading in precious metals, and in 2023 the first trades in government securities took place. "The volumes in 2023 increased because there were very large transactions in the primary market. We hosted such companies as Aiyl Bank - more than 4.8 billion KGS ($56.4 million), State Mortgage Company - 3.8 billion KGS ($44.7 million), Entrepreneurship Development Fund - 503 million KGS ($5.9 million), and the National Electric Grid of Kyrgyzstan conducted a transaction for 5.3 billion KGS ($62.3 million). Banks and companies with state participation carried out additional capitalization,” KSE vice-president Aida Chodulova told The Times of Central Asia. According to Chodulova, all securities transactions (public and private) must now go through the stock exchange. "We are now introducing new software to make the system more modern and accessible. We are developing new areas: IPOs, digitalization, and the development of the commodities sector and the precious metals sector. We will also open a currency pairs trading and crypto exchange sector,” Chodulova said. "At the end of 2023, we held auctions and issued State Treasury Bonds with a two-year circulation term. They were issued in both the national currency and Russian rubles. Commercial banks in Kyrgyzstan and insurance companies participated in the trade. Russian Gazprombank bought some of the securities for Russian investors,” she added. Last year, KSE planned to issue “green” state treasury bonds with a five-year circulation term, with some of these securities to be sold to Russia. However, the project had to be suspended due to the international economic sanctions placed on Russia as a result of its invasion of Ukraine.

Kyrgyzstan to Ban Plastic Bags

Following a ban of plastic bags in biosphere reserves and natural protected areas on June 1 2024, Kyrgyzstan is to prohibit their production, sale and distribution nationwide, from 2027 onwards. Regarding the move, the Ministry of Natural Resources of the Kyrgyz Republic stated: "Plastic and the pollution it causes, is detrimental to human health. Plastic enters the human body as micro- and nano-particles through food, packaging, water, and air. Plastic waste continues to pollute the environment at the disposal stage, and waste disposal workers suffer, especially from close contact with burning plastic." Asel Raimkulova, Deputy Minister of Natural Resources, Ecology and Technical Supervision of Kyrgyzstan, told the Times of Central Asia that whilst the use of plastic products which can be recycled within the country is under review and likely to continue, the ban on plastic bags throughout the country is absolute. Deputy ministers however, have opposed the use of plastic bottles but said that given the lack of alternatives available to Kyrgyz bottling companies, some exceptions will be made. According to eco-activists, Kyrgyzstan has some 80 plants to recycle plastic but since seven out of ten supermarket products are now fully or partially packaged in plastic, they do not have the capacity to process the ever-increasing volume of waste. "For example, in Kyrgyzstan, tetra paks—multi-layer juice or milk cartons that, at first glance, look like cardboard—are not recyclable. In addition to cardboard, such packaging contains a layer of aluminum and several layers of polyethylene. And separating them from each other is not easy,” stressed activists of the environmental movement Peshcom.

World Bank Supports Community-Driven Development in Kyrgyzstan

On July 31, the World Bank’s Board of Executive Directors approved $27 million for Kyrgyzstan's National Community Initiatives Project (NCIP). The project aims to improve access to socioeconomic infrastructure and increase economic opportunities at a local level, focusing on women and youth. Hugh Riddell, World Bank’s Country Manager for the Kyrgyz Republic, commented, “The National Community Initiatives Project builds on more than a decade of the Government’s successful community-driven development initiatives and aims to scale up, standardize, and deepen their impact. The project will also build the capacity of local governments to work effectively with communities on development priorities, ensuring a more prosperous future for all.” The project will be implemented through 2029 by Kyrgyzstan’s Community Development and Investment Agency. As part of the Village Climate-Resilient Infrastructure Investments component, the project will directly benefit rural populations in 40 Aiyl Aimaks (sub-districts), one per district across the country. Each selected sub-district will receive up to $450,000 for socioeconomic infrastructure identified through a participatory village needs assessment and decision-making process. Eligible infrastructure may include kindergartens, schools, health facilities, water supply systems, and other climate-adaptive investments such as renewable energy sources, energy-efficient street lighting, drip irrigation, and disaster preparedness. Within the Grants for Climate-Smart Local Economic Development and Livelihood Activities component, 15 competitively selected sub-districts will receive grants of $200,000 to $300,000 for local economic development. The objective is to enhance economic opportunities, enabling businesses to launch or expand while creating jobs for women, youth, and vulnerable groups. Economic sub-projects will target agricultural processing, handicrafts, eco-tourism, and green enterprises. The project will also finance comprehensive training for local self-government and communities in participatory needs assessment and planning; selection, management, and monitoring of village investments; climate change; and economic empowerment. The project will also look to engage women and youth in local planning and investment processes, ensuring their priorities for regional infrastructure and livelihood investments (such as medical facilities, schools, and kindergartens) are addressed, and providing tailored training to strengthen women’s leadership in social and economic spheres. Support will also be offered for women's entrepreneurship, the establishment of private childcare facilities, and targeted youth engagement opportunities.