Uzbekistan Business & Economy - The Times Of Central Asia

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Tokayev Calls For Expanded SCO to Play Greater Role on Global Stage

A meeting entitled “Strengthening Multilateral Dialogue – Striving for Sustainable Peace and Development” was held to conclude the Shanghai Cooperation Organization summit in Astana on July 4. The meeting was was held in the "SCO Plus" format. and was attended by the leaders of the SCO full member states who participated in the Summit earlier in the day, plus leaders of the organization's observer countries and dialogue partners. These included the UN Secretary-General António Guterres, presidents Recep Tayyip Erdoğan of Turkey and Ilham Aliyev of Azerbaijan, and the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani. The SCO Plus session of the Summit took on greater importance this year, amid suggestions that the alliance is primed to expand next year. Countries interested in joining the SCO as full members include Turkey, Qatar and Egypt. In his speech at the meeting, Kazakhstan's President Kassym-Jomart Tokayev emphasized the role that the SCO can play as a stabilizing force in the international arena. “Today the world is faced with serious challenges caused by unprecedented geopolitical contradictions and growing conflict potential,” said Tokayev. “The international security architecture is under threat, which could lead to dire consequences for all of humanity. In such a fateful period, we are entrusted with a huge responsibility for strengthening peace, stability, and security through collective efforts at the regional and global levels. The Shanghai Cooperation Organization, taking into account its authority, significant economic and human resources, is capable of developing effective solutions to achieve sustainable development goals and overcome modern challenges.” Concerning the role of the United Nations, Tokayev said that its potential is far from being exhausted. “Our common task is to strengthen the role of the UN as the main international institution for ensuring global security, capable of effectively confronting the challenges of the 21st century. The voice of the SCO should and will sound louder in the international arena, promoting a consolidated position on various problems of our time,” he emphasized. In his own speech, Gutteres referred to the SCO as "a valuable partner of the United Nations". With reference to strengthening trade and economic ties, Tokayev said: “At the current stage, the economies of the SCO member countries are demonstrating high growth rates of 4% to 9%. The share of the SCO states in global GDP is 30% already. Today, the foreign trade of the SCO participating countries exceeds $8 trillion, which is equivalent to a quarter of all world trade.” Tokayev emphasized the fact that economic growth in Asia is largely due to the SCO states. On behalf of Kazakhstan, he also welcomed China’s intention to expand access for SCO countries to its market, and increase trade turnover with the SCO member states to $3 trillion. “It is important for us to fully unleash the colossal economic potential of the SCO. The interaction of the SCO with such integration associations as the EAEU, BRICS and ASEAN opens up broad prospects. A powerful driver for sustainable growth in global trade is further strengthening of transport connectivity. More than...

Case Opened Against Subsidiary of Russia’s Lukoil in Uzbekistan

The Committee for the Development of Competition and Consumer Protection of Uzbekistan has initiated a case against Lukoil Overseas Supply and Trading Ltd, a subsidiary of Russia's Lukoil, the Committee's press service has reported. The Committee's staff state that they identified signs of the manipulation of the price of technical sulfur by Lukoil in their selling of products through exchange trading. As a result, the price of technical sulfur rose between 10 to 50%, meaning the company violated the law "on competition." Additional information will be made available once the Committee reaches a decision on how it will proceed. Lukoil Overseas Supply and Trading Ltd was established in April 2010 as part of a marketing campaign for the sale of joint products during the implementation of production sharing agreements in respect to several gas fields. It entered the exchange-trade market for technical sulfur in Uzbekistan in 2015. Today, the company and Uzbekneftegaz dominate the technical sulfur market.

Drop in Uzbekistan’s Gold Sales

In April, Uzbekistan's sales of gold dropped significantly, according to data published by the World Gold Council (WGC). In the same month, the total gold reserves held by the world’s central banks increased by 33 tons and volumes of purchases and sales amounted 36 tons and 3 tons respectively. The most active buyers of precious metals during the reporting period were the Central Banks of Turkey (8 tons), Kazakhstan (6 tons), and India (6 tons). Meanwhile, the Central Bank of China greatly reduced its gold purchases , while increasing its reserves by 2 tons to 2,264 tons; the lowest figure since November 2022. A significant decrease in precious metal sales occurred at the expense of Uzbekistan and Jordan, whose reserves decreased by only 1 ton. In May, the world central banks' reserves increased by 10 tons, the volume of purchases was 23 tons, and that of sales, totalled 12 tons. During that month, Kazakhstan took the lead in sales of 10 tons of gold. A previous report, posted by the TCA, provided data for Uzbekistan’s gold exports in February and March.

Shanghai Cooperation Organization

SCO Summit: Eurasian Alliance Signs Security Agreements; Welcomes Belarus

By Jonathan Campion, reporting from the SCO Summit in Astana At the Shanghai Cooperation Organization (SCO) Summit in Astana this morning, leaders from the bloc’s member states signed a host of agreements intended to promote cohesion in the Eurasia region. The first session, which was held behind closed doors, had begun with the signing of the document that accepted Belarus as the SCO’s 10th full member. The SCO is a political, security and economic alliance, of which Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan are founding members. The group also includes China, Russia, Iran, India, Pakistan, and now Belarus. The organization has four observer states and 14 dialogue partners, covering half of the world’s population, and almost a third of global GDP. The first agreement signed was a document outlining the Shanghai Cooperation Organization’s development strategy for the next 12 months. In 2025 Kazakhstan will pass chairmanship of the alliance to China, and there is speculation that the SCO may grow further next year, to include at least one new member. With security a growing concern for members, particularly in light of the March terrorist attack outside Moscow, for which the terror group Islamic State Khorasan Province (ISIS-K) have claimed responsibility, leaders approved the SCO’s latest three-year Cooperation Program to counter terrorism, separatism and extremism. The parties also signed an agreement on the organization’s regional anti-drug strategy. Another high-profile document is the SCO’s development strategy for cooperation in the energy sphere. Kazakhstan is at the forefront of the region’s transition to green energy, with Chinese leader Xi Jinping mentioning the country’s new Zhanatas wind farm and the Turgusun hydropower station as key joint projects with China in an article published in the Kazakh press this week. The heads of state were welcomed to the Summit by Kazakh President Kassym-Jomart Tokayev, with his Russian counterpart Vladimir Putin, Aleksandr Lukashenko of Belarus and Chinese leader Xi Jinping the last to arrive, ten minutes after the other dignitaries. Some leaders did not arrive at all: India’s Narendra Modi is not attending this year’s SCO Summit, and has sent the country’s external affairs minister Subrahmanyam Jaishankar in his place. The Summit's afternoon session is styled as "SCO Plus". In attendance are the heads of state of the alliance's dialogue partners, including the presidents of Turkey and Azerbaijan, Recep Tayyip Erdogan and Ilham Aliyev. Turkmenistan – which is not affiliated to the SCO but which is invited as a guest – is led not by its President Serdar Berdimuhamedov, but by his father Gurbanguly Berdimuhamedov, the former leader who is now the chairman of the country’s People’s Council.

Remittances to Central Asia and Europe Down 10%

After significant growth of 18% in 2022, the inflow of remittances to Europe and Central Asia last year decreased by 10%, amounting to about $71 billion, according to an analytical review by the World Bank entitled "Migration and Development". This reduction is due to a slowdown in remittances from Russia to neighboring countries, especially the Central Asian states. Among the reasons cited are the devaluation of the ruble against the dollar (39% in 2023), a decline in the number of remittances from Russia to Ukraine, and a slowdown in the outflow of migrants to Russia from neighboring states, many of whom have decided to return home after facing a wave of xenophobia following the Crocus City Hall attack. Financial institutions in some countries have also restricted transfers from Russia for fear of sanctions, which could divert remittance flows to unofficial channels. According to the World Bank, in 2023, remittances from Russia fell significantly to Uzbekistan (from 87% to 78% of all remittances), Georgia (from 47% to 37%), Azerbaijan (from 82% to 63%), and Kyrgyzstan (from 95% to 94%). Remittances from the U.S. to these countries also declined. "In Armenia, Azerbaijan, and Kazakhstan, remittances fell by at least 29% in 2023. At the same time, remittances to Albania, Bulgaria, Kosovo, and Turkey doubled," the report states. According to the World Bank's forecast, remittance flows to Europe and Central Asia will decline by another 2% in 2024, but grow by about 4% to about $72 billion in 2025. The average cost of sending remittances also increased.

Hungarian Company to Develop Smart Parking for Tashkent

Specialists from Hungary will create an automated "smart" parking system in Tashkent. The issues of establishing cooperation and realizing investment projects in road and urban infrastructure were discussed at a meeting between Uzbekistan's Ambassador to Hungary, Oybek Shakhavdinov, and Gabor Pusztai, Advisor to the General Director of the iCell company. The parties conferred on the Hungarian group's work on a project to help establish parking management within the fast-growing city of Tashkent. The system involves introducing and using high-tech sensors and mobile applications to find, reserve, and pay for parking spaces. iCell's specialists have been working for over a year on studying possible options for the effective implementation of the project and preparing a package based on the conditions and specifics of the capital of Uzbekistan. It was stated that an essential point in implementing the project is introducing changes to the republic's current legislation regarding administrative sanctions for offenses and articles which provide a clear understanding of the rights and obligations of road users. iCell specializes in software development and services in various technological and telecommunication sectors. The company's main activities and services include fleet management, intelligent parking solutions, IT services, energy and infrastructure management, and application development for various industries.