Home - The Times Of Central Asia

Viewing results 4609 - 4614 of 5698

Erdogan: Turkey Wants to Become Full SCO Member

Turkish President Recep Tayyip Erdogan has announced his country's aspiration to become a full member of the Shanghai Cooperation Organization (SCO), at a press conference in Washington after the conclusion of the NATO summit. "Turkey's goal, which is now an observer in the SCO, is full membership. Now, it should join the Shanghai Five," Erdogan stated. The Turkish president attended the SCO summit held in Astana on July 3-4. SCO Secretary-General Zhang Ming said that despite its membership of NATO, Turkey actively participates in the organization's activities, which are not directed against other states. He emphasized that interaction with Ankara is based on the principles set out in the SCO charter and is in line with the "Shanghai spirit."

Russian Securities Are Leaving Kazakhstan — Reports

The Central Securities Depository of Kazakhstan has urged those in the financial sector to send orders to withdraw Russian securities from their nominal holding by August 1. These statements were reported by RBC, which referenced a notice letter by a Kazakhstani brokerage to its clients and a source within the financial sector, who confirmed the authenticity of the letter. In the letter to clients, the broker informed them that he received a letter from the Kazakhstan depository notifying him about the necessity of completing deals with the National Settlement Depository by the end of the month. Quoted by the broker, the message of the Kazakhstan depository states that, "The Central Securities Depository notifies you that you need to conduct transactions with the participation of National Settlement Depository JSC that are ordinary and necessary for the alienation of debt or shares in favor of non-U.S. persons and not included in the U.S. blocking sanctions list, by August 1, 2024. After this date, the possibility of executing orders by the Central Securities Depository on these financial instruments will be considered, taking into account the peculiarities of possible restrictions.” In the letter, the Central Securities Depository informs clients in advance about possible restrictions and difficulties in executing orders on securities with the prefix RU before the ISIN after the specified date. The Depository also added that when processing orders from clients, the Central Securities Depository will consider the possibility of their execution, considering the risks and consequences that may arise for itself. "In essence, the letter says that they recommend finalizing all settlements and ridding Kazakhstan depository of securities with Russian ISINs. The Kazakhstan depository does not want to see these securities in portfolios," - says Julia Khandoshko, CEO of European broker Mind Money. In mid-June, the US Treasury Department's Office of Foreign Assets Control (OFAC) included the Moscow Exchange, which owns 13.1% of KASE shares, in the Specially Designated Nationals requiring sanctions list. The exact volume of Russian securities held in Kazakhstan is still being determined. However, from March to December 1, 2022, Bloomberg estimates that Kazakh brokers conducted transactions with Russian federal loan bonds totaling $1.4 billion.

Afghanistan Ready to Implement TAPI Project

The meeting of Turkmenistan's ambassador to Afghanistan, Khoji Ovezov, with Afghan Foreign Minister Amir Khan Muttaki in Kabul demonstrated specific dynamics in implementing the TAPI gas pipeline project. The news agency Alemarah reported the talks centered on the TAPI project and its advancement in Afghanistan. Diplomats discussed the possibility of increasing the pipeline's capacity, which could significantly increase the volume of Turkmen gas supplies to Pakistan and India. In addition to TAPI, the sides considered expanding transit and transportation connections through the Turgundi station and the joint electric power project of the Nurul Jihad substation in Herat province. The Afghan side assured determination to resolve the outstanding issues on the TAPI project and start actual work. "We are preparing all the necessary documents and starting preparations for construction," Amir Khan Muttaki said. The minister also noted the work being done to develop railroad facilities in the dry port of Turgundi and promised to update Turkmenistan soon. Taliban official Zabihullah Mujahid recently announced Afghanistan's readiness to develop the TAPI project further and cooperate with regional countries to create a North-South international transport corridor.

Kazakhstan Seeks to Increase Local Content in Oil and Gas Equipment Production

From July 10 to 12, the Kazakhstani city of Atyrau hosted the Oil and Gas Machine Building Forum. The Forum aimed to develop local content and support domestic manufacturers of oil and gas equipment and local suppliers of works and services for the sector. The event also included Open Doors Days for three major oil and gas operators in Kazakhstan: Tengizchevroil, North Caspian Operating Company, and Karachaganak Petroleum Operating B.V. As reported by the Kazakh Ministry of Energy, these three major subsoil users account for 70% of all oil and gas equipment purchases in Kazakhstan. Speaking at the Forum, Vice Minister of Energy Alibek Zhamauov said that both Kazakhstan’s president and prime minister outlined several specific tasks aimed at developing local content in the oil and gas sector. Particular attention, they said, should be paid to increasing the share of Kazakhstani goods, works and services in the sector’s purchases, creating new as well as modernizing existing production facilities, localizing the production of the most popular products in Kazakhstan, as well as moving design offices to the country, with the mandatory involvement of local engineers and design companies. Due to efforts of the Ministry of Energy, in May of this year contracts were signed between Tengizchevroil, North Caspian Operating Company, and Karachaganak Petroleum Operating B.V. and domestic manufacturers for the purchase of locally made oil and gas equipment worth $240 million. Speaking at the Forum, Leyla Gimranova, Deputy Director of the Project Department at Kazakh Invest, emphasized that oil and gas engineering could become a new growth point in developing domestic added-value production and import substitution. She said that last year, Kazakhstan produced oil and gas equipment for $72.7 million and imported such equipment for $1 billion. “This is a significant difference that needs to be reduced. Therefore, we are actively working to identify priority goods for import substitution, the production of which is possible based on existing domestic enterprises," Gimranova said.

Uzbekistan’s Investment in Kazakhstan Reaches Record Levels

The volume of gross direct investment flow from Uzbekistan to Kazakhstan in 2023 was a record $22.2 million, as reported by Zakon.kz. This is the largest statistic recorded since the end of 2005. Last year, Kazakhstan and Uzbekistan implemented several important investment projects. In particular, $71.2 million was invested into the production of Chevrolet Onix cars in the Kostanay region. A metal rolling plant was built in the Almaty region after a roughly $57 million investment. Lastly, a facility to produce various sterile pharmaceutical and hygiene products was established in Shymkent following an approximately $9.3 million investment. The increase in investment offers from Uzbekistan is reported to be related to the positive business environment in Kazakhstan. The report notes that extremely favorable conditions have been created for business in the neighboring country. The current conditions in Kazakhstan effectively protect the rights of investors and thus encourage investments. The governments of Tashkent and Astana recently signed a Treaty to enhance cooperation between the two countries. The countries agreed to increase the volume of mutual trade to $10 billion and expand business relations soon. According to the Telegram channel “Data Hub,” Uzbekistan had become the third largest foreign investor, surpassing China, regarding the number of companies registered in Kazakhstan. These statistics show that Uzbekistan is increasingly becoming an important trade partner for Kazakhstan.

World Bank to Provide Additional Support for Kambarata-1 Hydropower Project in Kyrgyzstan

The World Bank announced on July 11 that its Board of Executive Directors has approved $13.6 million in additional financing for the Kambarata-1 Hydropower Plant (HPP) Project in Kyrgyzstan. This additional funding will supplement the ongoing $5 million Technical Assistance Fund. The World Bank is aiming to support the government of the Kyrgyz Republic in preparing the Kambarata-1 HPP project in an environmentally, technically, financially, and commercially sustainable manner. Hugh Riddell, World Bank’s Country Manager for the Kyrgyz Republic, commented: “The World Bank is assisting the Kyrgyz Republic in developing its vast clean energy potential, which would be key to realizing the country’s and region’s bold initiatives on clean energy transition and enhanced regional cooperation on energy and water. World Bank support will help the government of the Kyrgyz Republic to comprehensively prepare the Kambarata-1 HPP Project in a sustainable and bankable way.” The ongoing Technical Assistance for the Kambarata-1 Hydropower Plant Project has made significant progress since its approval in the fall of 2023. The project feasibility update has commenced, and environmental and social reports are being prepared. In addition, a Donor Coordination Committee was established during the International Energy Investment Forum held in Vienna in June 2024. This additional financing is needed to ensure comprehensive and in-depth implementation of several critical activities, including establishing panels of experts on dam safety, environmental, and social concerns. The funding will also help in designing a benefit-sharing plan, structuring the project’s financing plan and commercial framework, and establishing a company to run the dam upon its completion. The additional financing is to be provided on highly concessional terms and comprises $11 million of credit at zero percent interest, with repayments eased over 50 years and a 10-year grace period. In addition to this credit, there is a $2.6 million grant from the Central Asia Water and Energy Program (CAWEP), which requires no repayment. The CAWEP is a multi-donor partnership between the World Bank, the European Union, Switzerland, and the United Kingdom, which is aimed at strengthening regional cooperation on water and energy security in Central Asia, which is facing a climate emergency. The Donor Coordination Committee for the construction of Kambarata-1 HPP was established at the Kyrgyz Republic International Energy Investment Forum, which was held in Vienna on June 10. The Committee comprises major international financial institutions and development partners, including the World Bank, the OPEC Fund, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, and the European Bank for Reconstruction and Development. Speaking at the Vienna forum, Chairman of the Cabinet of Ministers of the Kyrgyz Republic Akylbek Japarov said that the Kambarata-1 HPP project has broad economic, environmental, and social benefits and prospects for both Kyrgyzstan and the rest of Central Asia. The project will provide Kyrgyzstan and Central Asia with clean energy at the lowest possible cost. The Kambarata-1 HPP will be situated in the upper reaches of the Naryn River in Kyrgyzstan. Its installed capacity will be 1,860 megawatts, and its average annual...