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The Onset of “Friend-Shoring” in Central Asia

As Central Asia’s significance for global supply chains grows, the world’s major economic powers are seeking closer economic ties with the region’s countries. China, Russia, and the West all curry favor through investments and initiatives to bolster the region’s exports and secure their supply chains. Bordering China and Russia, Central Asia spans a land surface area corresponding to 87% the size of the entire European Union (EU). The region has a combined market of 76 million people and gross domestic product of 450 billion U.S. dollars. It is critical to global energy supply chains as it possesses 20% of the world's uranium reserves, as well as 17.2% of total oil and 7% of natural gas deposits. Kazakhstan produces over half of the EU’s critical raw materials, i.e. substances used in technology which are subject to supply risks and are hard to replace with substitutes. In the first seven months of 2024, rail cargo across the Middle Corridor, a trans-Caspian trade route linking China to Europe, has increased 14-fold compared to the same period last year. As the region opens up and undergoes significant economic transformation, supply chains are increasingly directed there, sparking competition for control over its vast natural resources and production capabilities. Major economic powers are stepping in to strengthen bilateral ties to ensure reliable trade partnerships. These strategies, known as “friend-shoring,” aim to reduce geopolitical risks, enhance supply chain stability, and transform Central Asian countries into trusted allies by fostering strong bilateral relationships and deeper economic ties. China and Russia remain at the helm of regional activity China has been actively engaging with Central Asian countries through strengthening economic ties and building strategic partnerships. Through the Belt and Road Initiative (BRI), which aims to enhance infrastructure and trade connectivity across the region, China has helped strengthen the region’s rail network. China supplies equipment and invests in Uzbekistan’s electric vehicles, scooters, and leather production. Uzbekistan, in partnership with PowerChina and Saudi company ACWA Power, is also constructing the country’s first green hydrogen plant. Kyrgyzstan’s bilateral trade with China was up 30% in 2023 compared to 2022. This year, Turkmenistan has surpassed Russia in gas exports to China. In 2023, Kazakhstan's agricultural exports to China doubled to $1 billion compared to 2022, making China the largest importer of agricultural products from the country. Historically, Russia has been a major trading partner for Central Asian countries due to the Soviet legacy of a command economy, which established strong economic interdependencies that persisted in post-USSR period. While the region is aggressively diversifying its trade relationships, Russia is increasing gas supplies and energy infrastructure investments, specifically in renewables and nuclear facilities. Kazakhstan delivers most of its oil to Europe through Russia. Russian-led organizations, including the Eurasian Economic Union (EAEU) and the Commonwealth of Independent States (CIS), promote cooperation and economic integration with free movement of goods, services, and capital among member states. Russia's war against Ukraine has disrupted supply chains, but it has also opened up new trade opportunities, especially for Kazakhstan, as...

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Kyrgyzstan Wants to Extend Prison Terms for “Calls to Seize Power”

Kyrgyzstan's Interior Ministry has proposed toughening the criminal penalties for inciting violent seizures of power. The ministry has tabled an amendment whereby those found to have breached Article 327 of Kyrgyzstan's Criminal Code (“Public calls for violent seizure of power”) could face between three and five years in prison. The Criminal Code currently only sets out a fine of 20,000 to 50,000 som ($236 to $590), or imprisonment of up to three years. The draft law has been submitted for public discussion. In Kyrgyzstan, it is not uncommon for civic activists and those who criticize the current government to be arrested on charges of "public calls for violent seizure of power". Among Kyrgyz citizens to have been convicted of this charge are Zarina Torokulova and Kanykei Aranova, who are both currently in prison after posting messages on social media. Their sentences are harsher than the law currently calls for: Torokulova was sentenced to five years in prison in 2023, while this year Aranova was sentenced to three and a half years. In June 2024, 20 Kyrgyz citizens who peacefully protested against a land swap with Uzbekistan involving the Kempir-Abad reservoir were acquitted by the court, but the prosecutor's office appealed the court's decision, demanding that they be found guilty. Furthermore, the Interior Ministry proposes increasing the prison term to five to seven years if the offense is committed by a group of individuals, or by using the internet or mass media. The current punishment is a fine of 50,000 to 100,000 som ($590 to $1,185) or imprisonment for three to five years. The draft bill also proposes to criminalize public calls for extremist activity and possession of extremist materials if a person has previously received a warning. For this purpose, new articles will be added to the Criminal Code: “Possession of extremist materials” and “Public calls for extremist activities.”

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Kyrgyzstan Celebrates Independence Day

On August 31 Kyrgyzstan celebrated the 33rd anniversary of its independence. Ala-Too Square in Bishkek hosted a gala concert featuring famous Kyrgyz and foreign artists, while President Sadyr Japarov addressed the nation. “We are a great nation with a strong spirit!", Japarov said. "That is why, on this day, we raise our flag high. Let our country reach new heights, and let the flag wave highly. May our independence never be threatened. I congratulate all of you on our Independence Day!” Japarov also played the komuz, a Kyrgyz string instrument. The centerpiece of the Independence Day celebrations was a drone show. In the sky above Ala-Too Square, drones created images of Kyrgyzstan, and portraits of national heroes and athletes. On August 31 festivities took place throughout the country. [caption id="attachment_22518" align="aligncenter" width="2048"] @president.kg[/caption] On August 31, 1991, Kyrgyzstan officially withdrew from the USSR and declared its independence. Economist Nurgul Akimova said Independence Day is not just a national holiday but a symbol of economic and political independence: “On this day, I reflect on how our country, having become independent, began to build its economic policy, focusing on the needs and opportunities of its people. Economic independence is not just freedom from external control but the ability to independently determine the trajectory of development. In the context of globalization, when small economies often face pressure from more powerful players, preserving sovereignty and independence requires competent management and a deep understanding of how to integrate into the global economic system profitably. This day reminds me of the importance of economic policies aimed at social equity and sustainable development. It prompts reflection on how our country can use its resources and potential to improve the lives of all citizens. Economic independence is not an end but a means to create a just society where everyone can realize their potential. Independence Day reminds us that economic stability and prosperity are impossible without responsible governance and transparent institutions. It is also a reason to consider integrating into global markets. Still, on terms that will contribute to Kyrgyzstan's long-term development, not just short-term gain". [caption id="attachment_22519" align="aligncenter" width="2048"] @president.kg[/caption] Civic activist Mars Cherikchiyev told The Times of Central Asia that Independence Day is about family security and confidence in the future of children. “I liked President Japarov's speech, which talked about Kyrgyzstan's achievements and plans for the future. Good work is being done in all sectors of the economy, and foreign investors see this. We are creating our infrastructure, opening regional airports, building internal roads, and cooperating with neighbors. We are gaining confidence for the future. Improving economic terms and general welfare for citizens is independence,” Cherikchiyev said. [caption id="attachment_22520" align="aligncenter" width="2048"] @president.kg[/caption]

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Tajikistan-Kyrgyzstan Border Demarcation Completed

Tajikistan and Kyrgyzstan have completed negotiations to demarcate their common border, which had been disputed for many years. The final meeting of the two countries' topographic-legal working groups was completed in the town of Batken in Kyrgyzstan on August 11-17. This has been reported by the State Committee for National Security of Tajikistan. "During this meeting, the parties continued the discussion and exchanged proposals on the description of the passage of the Tajik-Kyrgyz state border line in the remaining sections," the Committee commented. At the end of June, The Times of Central Asia reported that 94% of the borderline between Tajikistan and Kyrgyzstan had been fully delineated. The conflict was caused by uncertainties regarding the exact demarcation of the border between the two republics, which spans some 980 kilometers. With its scant natural resources and dwindling water supplies, the border between Kyrgyzstan and Tajikistan has been the scene of numerous armed conflicts. This situation arose after the collapse of the USSR – the parties could not agree on the ownership of dozens of disputed territories. The borderless areas have become a zone of conflict between the local population and the border troops of the other country. The last major conflict took place on September 16, 2022, as a result of which hundreds of people were killed and injured on both sides. Huge material damage was caused to the infrastructure of the border areas of the regions of Sogd (Tajikistan) and Batken (Kyrgyzstan).

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Rise in Kyrgyzstan Foster Families

At the beginning of July, records showed that 218 children without parental care were being raised by 110 foster families in Kyrgyzstan; an increase of 29% compared to the previous year. Active in promoting fostering as a far better alternative to orphanages , the Kyrgyz Ministry of Labor reports, "A foster or adoptive family is a trained family that provides upbringing for children in difficult life situations for a certain period of time, based on a contract with the state. Citizens between the ages of 30 to 65 are eligible to apply to become foster parents and to ensure the safety and wellbeing of their charges, receive specialist training as well as monthly checks by social service employees. Contracted by the state, they also receive an allowance of $80 a month until the orphans come of age. According to the Ministry of Social Services, "If applicants have one or two children, they can only foster three. If foster parents have no children of their own, they can raise up to five toddlers or teenagers from three to 16 years of age." Beneficial on many levels, fostering provides children with both a secure base and opportunities to master a trade, work in agriculture or follow a profession, to enable them to lead independent lives as adults.

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USAID Equips Mega Fruit Storage Facility in South Kyrgyzstan

The United States Agency for International Development (USAID) has helped Kyrgyzstan’s Nookat Almasy Cooperative open the largest cold storage facility in the Nookat district of the southern Osh region. Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic Bakyt Torobaev and USAID Mission Director in the Kyrgyz Republic Kaya Adams attended the facility’s opening ceremony. As reported by the U.S. Embassy in Kyrgyzstan, the new facility will generate 200 full-time jobs and assist local farmers in marketing and expanding sales of their produce. Thanks to cooling equipment worth $78,400 from USAID, the Nookat Almasy Cooperative’s new facility can now store locally grown apples and raspberries for up to four months. By extending their shelf life and enabling farmers to sell at a higher price when market conditions improve, the enhanced storage will help maintain market stability and ensure a reliable and consistent food supply throughout the year. Since 2018, the U.S. government has helped establish over 20 new cold storage facilities in southern Kyrgyzstan, more than doubling capacity to reach 12,500 tons, decreasing food spoilage by 40%, and creating income-generating activities for over 4,000 local farmers.