Uzbekistan International Affairs - The Times Of Central Asia

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Ecological Limit: Five Year Countdown to Water Scarcity in Central Asia

Combating climate change requires collective action by all or a sufficient majority of the world's players supporting global initiatives. Otherwise, it may soon be too late to take any action. To address the issue, the Eurasian Development Bank, the CAREC Think Tank, and the Asian Development Bank organized a two-day forum entitled “The Climate Challenge: Thinking Beyond Borders for Collective Action,” in Almaty, Kazakhstan. Focusing on means of achieving genuine regional cooperation on Asian climate action, the eighth CAREC Think Tank Development Forum was attended by policymakers, experts, and opinion leaders from more than 30 countries. The extensive two-day dialog, consisting of eight sessions, opened with a discussion on the effectiveness of current global initiatives related to climate change: the Paris Agreement, the Global Environment Facility, and the Green Climate Fund. Attention then turned to deepening cooperation among as many stakeholders as possible through multilateral platforms such as the UN Framework Convention on Climate Change. Asia's role in the global fight against climate change, and the difficult balancing act between economic growth and decarbonization efforts were discussed at length. Simply put, the rapid growth of the Asian economy is inevitably accompanied by an increasing consumption of energy, the generation of which leads to increased emissions and pollution. Climate damage due to human impact can be halted and even reversed. However, because this can only be achieved with technological intervention, it poses problems for developing economies unable to afford advanced technologies. Hence, establishing a framework and mechanisms for global technology transfer were key to discussions. Water and finance were also high on the agenda and the subject of a paper presented by Arman Ahunbaev, Head of the Center for Infrastructure and Industrial Research of the Eurasian Development Bank on “Ways to close the investment gap in the drinking water supply and wastewater sector in Central Asia." Ahunbaev reported that 10 million people, or 14% of the population in Central Asia, do not have access to safe drinking water and warned that without intervention, the situation would reach the point of no return in the coming years. To prevent this from happening, he stressed the urgent need for solutions to four problems. The first problem is a twofold increase in the volume of water intake for municipal and domestic needs, based on past figures which showed a growth from 4.2 cubic kilometers in 1994 to 8.6 cubic kilometers in 2020. The second problem is the severe deterioration of water supply infrastructure and treatment equipment, and the third, technological and commercial water losses in distribution networks. The fourth problem is related to the demographic boom and, consequently, the rapid urbanization of Central Asia's population. Cities are expanding and their infrastructure needs to develop accordingly. According to experts, in 2023, urbanization in Central Asian countries will reach 49%, and by 2050, 61%. By 2030, the urban population will exceed that in rural areas. Ahunbaev noted the need for improvement in financing the water supply and sanitation sector in Central Asia since according to rough...

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EBRD to Support Pilot Project for Renewable Hydrogen in Uzbekistan

The European Bank for Reconstruction and Development (EBRD) will finance Central Asia's first renewable hydrogen production project in Uzbekistan. The project includes the installation of a 20 MW electrolyzer and constructing a new 52 MW wind farm. The EBRD is providing a $65 million (€58 million) financing package to ACWA Power UKS Green H2, which is developing, designing, constructing, and operating the facility. This company is jointly owned by ACWA Power and Uzkimyosanoat (UKS), a large state-owned chemical holding company. Financing includes a $55 million senior loan from the EBRD and $10 million in concessional financing from Canada through the High Impact Partnership on Climate Change Special Fund (HIPCA). The EBRD also plans to provide an equity bridge loan of up to $5.5 million (€4.9 million) and up to $5.5 million (€4.9 million) for the project. The project, supported by the Japan-EBRD Cooperation Fund, will help replace “grey” hydrogen, derived from natural gas and widely used in producing ammonia fertilizers in Uzbekistan, with renewable hydrogen. The latter is recognized as a critical alternative for decarbonizing the fertilizer sector. The facility is expected to make up to 3,000 tons of hydrogen annually, reducing annual CO2 emissions by 22,000 tons. The Bank also noted that Uzbekistan, the leading recipient of EBRD financing in Central Asia, has already received about €5 billion under 164 projects, most of which support private entrepreneurship. The Times of Central Asia has previously written that the Asian Development Bank (ADB) has announced the launch of a five-year partnership strategy with Uzbekistan from 2024 to 2028. The strategy will support Uzbekistan's reforms in promoting the country's transition to a green economy, supporting private sector development and competitiveness, and stimulating investment in economic capital.

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U.S. Think Tank Calls on American Politicians to Make Uzbekistan a Valued Partner

Daniel Runde, a senior vice-president at the Washington, D.C.-based think tank the Center for Strategic and International Studies (CSIS), has called on American politicians to strengthen the U.S.'s relations with Uzbekistan. He believes that Uzbekistan, a key partner for the United States in Central Asia, deserves more attention from the West. With Russia’s invasion of Ukraine and growing competition with China, the U.S. could strengthen ties with Uzbekistan to promote regional stability and counterbalance Russian and Chinese influence. “Uzbekistan seeks more engagement with the United States through bilateral efforts and the “C5+1” (the five Central Asian countries plus the United States) diplomatic platform. We might never become Uzbekistan’s best friend. However, we could become better and more reliable friends. Uzbekistan has five bordering countries, and at one point in the early 2000s, it considered the United States its ‘sixth neighbor,’” Runde mentioned. “When the U.S. government was active in Afghanistan, we supported Uzbekistan’s efforts to develop its economy and invest in its security. With our disengagement from Afghanistan, we need to look at Uzbekistan as the valued partner that it could be and re-engage. We should work towards the day that Uzbekistan considers the United States its ‘sixth neighbor’ again.” According to Runde, there are several goals that the US could assist Uzbekistan in achieving. While some are significantly more difficult to handle, others are relatively straightforward: 1) Uzbekistan wants U.S. support to join the World Trade Organization (WTO), a goal it has pursued for almost 30 years. The U.S. has provided some technical help, and during a recent visit, U.S. Trade Representative Katherine Tai reaffirmed America’s support. For further progress, Uzbekistan could benefit from greater involvement from U.S. institutions like the Development Finance Corporation (DFC), Export-Import Bank (EXIM), and U.S. Trade and Development Agency (USTDA) to strengthen trade ties with the U.S. 2) Uzbekistan and other Central Asian countries want the U.S. to repeal the Jackson-Vanik Amendment, which restricts regular trade with them. This amendment, initially targeting Soviet-era policies, is now outdated and seen as disrespectful, as it treats these nations as if they are still part of the Soviet Union. Repealing it would show that the U.S. respects their independence and is ready to treat them as equal partners. “Jackson-Vanik now restricts normal trade relations with several existing and former nonmarket economies, including Uzbekistan. For countries like Uzbekistan, Jackson-Vanik is a sign of disrespect that encourages them to take their business to China, Russia, Turkey, or the Gulf,” Runde argues. 3) He notes that many developing countries, including Uzbekistan, would like to see Congress successfully renew the Generalized System of Preferences (GSP), a trade preference program. “The GSP benefited many developing countries by providing duty-free treatment for their products. With the absence of this program, trade volumes between Uzbekistan and the United States have not been as impressive as they might have been. Compare U.S. trade with Uzbekistan and Uzbekistan’s trade with China, Russia, or the EU. The lapse of the U.S. GSP has had a real impact on our influence...

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Public in Uzbekistan Concerned About Pavel Durov’s Arrest

The arrest of the founder of the popular Telegram messaging app, Pavel Durov, in Paris on August 24 on charges of illegal activities including enabling drug trafficking, crimes against minors, and fraud has caused public discussion and unease in Uzbekistan, where use of the platform is widespread. Durov’s visit to Uzbekistan in June highlighted the platform’s deep integration into daily life in the country. “Uzbekistan loves Telegram: over 70% of the country’s 37 million people are on Telegram, and their entire economy is run on our platform - every business in the country has a Telegram bot or channel. We are proud of this popularity and love Uzbekistan,” Durov stated during his visit. Across the nation, people are now worried that Telegram may be switched off, and are talking and writing about the need to choose an alternative messenger to share files and communicate. Comments such as “Free Durov” can be found under an abundance of news and social media posts, whilst another group of users believes that such an extensive network cannot be destroyed so easily. Political scientist Hamid Sadiq told the Firkat analytical program that Durov’s arrest could be part of a more extensive planned program. Describing Durov as Telegram's “face” and his brother Nikolai as its “brain,” Sadiq noted that no one has yet been able to crack Telegram's encryption, and today, the messenger continues to work without bans in Russia, Ukraine, Uzbekistan, and even China. The political scientist describes Durov as an "anarchist," unlike Mark Zuckerberg, Elon Musk, and Steve Jobs. Stating that Durov disagrees with Putin’s regime and pointing to the conflict with Vkontakte in Russia in 2014, Sadiq states that he considers the accusations against Durov to be absurd, and that Durov was granted French citizenship in 2021 “for his great political services.” As the situation develops, the impact of Durov’s arrest on Telegram’s future remains unclear. Yesterday, the Times of Central Asia reported on the reaction to this event in Kazakhstan and Kyrgyzstan. Both the Russian and Ukrainian military use Telegram, with Russia’s war machine particularly reliant, and any cracks in its encryption could prove particularly disastrous to Russia’s war effort. However, as Telegram messages are not end-to-end encrypted as they are in Signal and WhatsApp – meaning they can be read by Telegram’s staff - the platform has been left open to requests to cooperate in the dissemination of data to state actors. It seems that what sets Telegram apart, attempting to bridge the gap between being a messenger app and a social media platform, may prove to be its downfall. As this story develops, it appears the public in Central Asia are right to have cause for concern.

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ADB New Partnership Strategy for Uzbekistan Focuses on Transition to Green Economy

On August 27, the Asian Development Bank (ADB) announced the launch of a five-year country partnership strategy for Uzbekistan from 2024 to 2028. The strategy will support the country’s reforms to transform into a green and inclusive economy. Aligned with the government’s priorities in its long-term development plan, known as “Uzbekistan-2030,” the ADB strategy will assist the Uzbek government in facilitating the country’s transition to a green economy, supporting private sector development and competitiveness, and promoting investments in human capital. ADB's Director General for Central and West Asia, Eugene Zhukov, commented: “ADB’s new partnership strategy for Uzbekistan will support the country in achieving its strategic goals in transitioning to a green economy by 2030. As a long-term trusted partner of Uzbekistan, ADB remains committed to helping the country sustain its robust economic expansion and reduce poverty even amid external global and regional shocks.” The new strategy provides ADB interventions in various sectors, including energy, public sector management and governance, finance, transport, agriculture and natural resource management, and urban development. The bank will also support development in education and social protection. ADB will strengthen macroeconomic and fiscal reforms, as well as the transformation and preparation of state-owned enterprises for privatization. The bank will support private sector engagement in economic development, including improvements to the domestic financial markets and infrastructure investments. ADB support will focus on improving the quality and inclusivity of education and skills development in Uzbekistan, enhancing access to health and social services, and encouraging greater private sector participation. ADB will also continue its partnerships with Uzbek civil society organizations to combat climate change, invest in people, advocate for gender equality, and support vulnerable groups. Since 1995, ADB has provided Uzbekistan $12.5 billion worth of loans, grants, and technical assistance.

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Uzbekistan and Afghanistan To Work Together on Mining Projects

Afghanistan and Uzbekistan have signed five agreements related to mining projects in Afghanistan. The agreements are for the exploration of hydrocarbon fields in the Afghan-Tajik oil and gas basin, the development of copper and gold deposits in the Qandaran district of Zabul province, iron extraction in the Hesh district of Bamyan province, and hydrocarbon resources in the Tuti-Maidan district of Faryab province. There are also plans to build a 120-megawatt gas-fired power plant in Faryab province. These agreements, totaling $1.15 billion, were part of a more comprehensive package of 35 agreements and memorandums of understanding signed between the two countries. These agreements amount to an Uzbek investment in Afghanistan of over $2.5 billion. The latest round of cooperation points to the strengthening of economic ties between Tashkent and Kabul, which is especially important given the region's current geopolitical challenges and financial instability. These agreements can also significantly impact Afghanistan's economic development by providing needed resources and creating jobs in crucial regions of the country.