natural gas

Decline in Uzbekistan’s Production of Natural Gas, Oil and Coal

According to data released by the Statistics Agency of Uzbekistan, from January – May, the country’s production of natural gas amounted to 18.8 billion cubic meters, one billion cubic meters less than in the same period last year.

Natural gas production in Uzbekistan has seen a steady decline in recent years and from 2019-23, fell by 22.8 percent. In 2022, gas production decreased from 53.8 billion to 51.67 billion cubic meters, or 4%, and in 2023, from 51.67 billion to 46.71 billion cubic meters, or 9.6%.

To compensate for the drop in domestic production, Uzbekistan has increased its import of natural gas from Turkmenistan and Russia.

In the first 5 months of this year, Uzbekistan also saw a decrease in coal and oil production. Coal production fell by 73 thousand tons, to 1.9 million tons, and oil production, by 22 thousand tons, to 305 thousand tons.

 

photo: Kazakhstan Foreign Ministry

Kazakhstan Pushes New Measures to Utilize its Transit Potential

On June 20, Permanent Delegate of Kazakhstan to International Organizations in Paris, Askar Abdrakhmanov, attended the International Transport Forum (ITF) Day at the Organization for Economic Co-operation and Development (OECD) headquarters.

In his presentation on “Connectivity in Times of Crisis,” Ambassador Abdrakhmanov focused on Kazakhstan’s measures to further develop its transport infrastructure and international freight transportation, and Astana’s efforts to develop transport cooperation with the country’s neighbouring states.

Regarding the potential of both old and new routes, Abdrakhmanov highlighted the construction of second tracks on the Dostyk – Moynty railway on the Kazakhstan and China border, a container hub and dredging projects at Aktau and Kuryk seaports, a new Darbaza – Maktaral railway line with further access through Uzbekistan, Turkmenistan and Iran to the Persian Gulf and the Indian Ocean, and functioning the eastern branches of the North-South corridor.

Special attention was paid to the Trans-Caspian International Transport Route (TITR), widely known as the Middle Corridor. He emphasized the importance of the recent joint government venture to establish a single, unified operation of cargo transportation along the Middle Corridor, as well as the launch of the TITR Coordination Platform with the participation of Central Asian states, the South Caucasus, and the European Commission.

“The current geopolitical situation has created new economic and logistical challenges for Kazakhstan and other countries in the region, and the answers to them lie in closer cooperation with our neighbours and international partners,” stated the Kazakh diplomat.

The International Transport Forum (ITF) at the OECD is an intergovernmental organization with 69 member countries which serves as a think tank for transport policy and organizes annual summits of transport ministers. Kazakhstan has been an ITF member  since 2017.

 

 

@Akorda.kz

Results of Visit of the U.S. Trade Representative to Kazakhstan

By Vagit Ismailov

President of Kazakhstan Kassym-Jomart Tokayev, Deputy Prime Minister Serik Zhumangarin, Minister of Trade and Integration Arman Shakkaliev, Minister of Labor and Social Protection Svetlana Zhakupova, and other officials met with U.S. Trade Representative Catherine Tye. The United States and Kazakhstan reaffirmed their commitment to expanding and diversifying bilateral trade relations. Both sides pledged to deepen cooperation in agriculture and make progress in the near term. This includes increasing U.S. meat and poultry production capacity, optimizing the issuance of digital export certificates, and facilitating increased shipments of U.S. agricultural equipment to Kazakhstan.

Tye noted Kazakhstan’s interest in repealing the Jackson-Vanik amendment and expressed support for the U.S. Congress’ efforts to update the Generalized System of Preferences program. She also recognized the program’s importance in diversifying Kazakhstan’s trade. The U.S. and Kazakhstan pledged to strengthen joint work on regional connectivity and increase the capacity of the Trans-Caspian Trade Route. The parties discussed increasing bilateral engagement to create diverse, secure, and sustainable supply chains. They stressed the importance of continuous cooperation in trade facilitation, including the harmonization and digitization of customs processes.

Tye noted the contribution of U.S. companies’ supply of high-quality products and the development of alternative trade routes. She also thanked Kazakhstan for the success of the 15th meeting of the Board of the U.S.-Central Asia Trade and Investment Framework Agreement (TIFA). The working groups noted progress on several issues, including sanitary and phyto-sanitary measures, customs procedures, intellectual property protection, women’s economic empowerment, and digital trade. Tye further emphasized the importance of a transparent and consultative regulatory process in regional harmonization.

Kazakhstan and the U.S. reaffirmed their commitment to utilize the TIFA mechanism further to deepen trade and investment ties between the U.S. and Central Asia. The U.S. also expressed interest in working closely with Kazakhstan to support internationally recognized labor rights, including promoting workers’ rights to freedom of association and collective bargaining. The United States and Kazakhstan pledged to continue working to achieve concrete trade results, maintaining the positive momentum of the bilateral trade and investment relationship.

Screenshot from video - Ministry of Emergency Situations

Firefighters Evacuate People from Burning High-Rise in Astana

A large fire broke out at a 26-storey building in Kazakhstan’s capital on Saturday, sending dense clouds of smoke billowing across the city.

Firefighters evacuated people, including a three-month-old baby, from the Rixos Khan Shatyr Residences in Astana, the Ministry of Emergency Situations said. It posted photographs and video of firefighters escorting people into the street and using a crane and hose to extinguish the flames. Much of the blaze appeared to be on part of the building’s outer covering material.

Built by Turkish company Sembol Construction, the building is on Turan Avenue and near the Khan Shatyr shopping and entertainment center, which has a distinctive cone-like structure.

“Fully equipped apartments and high-level finishes, full range of services and infrastructure, as well as comfortable and spacious offices will be a hallmark of the project,” Sembol Construction said when the building project was underway.

Eight people, including one child, were evacuated from the building. According to the official representative of the Ministry of Emergency Situations of the Republic of Kazakhstan Dinara Nurgalieva, there was no information about the severely injured.

A firefighting headquarters has been set up at the scene, with firefighters continuing to extinguish not only the cladding of the building, but also working inside the complex. The causes of the fire have not yet been reported, and specialists continue to work at the scene.

Rise in economic growth

EDB Upgrades Economic Growth Forecast for Most Member States

In a newly-released Macroeconomic Outlook for its six member states,  the Eurasian Development Bank (EDB) reported that in 2024, Armenia’s GDP is expected to grow by 7.5%, Belarus’s by 3.4%, Kazakhstan’s by 5%, Kyrgyzstan’s by 5.5%, Russia’s by 3%, and Tajikistan’s by 8%.

For most EDB member countries, the outlook has been upgraded in response to strong early year performance and continued robust utilization of domestic growth sources. EDB analysts forecast a 3.4% growth in the region’s GDP by the end of 2024.

In Armenia, Kyrgyzstan, and Tajikistan, high growth rates early in the year, driven by strong domestic demand and increased exports of basic metals, have led to the following upgraded GDP growth projections for 2024: 7.5% for Armenia, 5.5% for Kyrgyzstan, and 8% for Tajikistan.

Kazakhstan’s economy is expected to maintain a high GDP growth rate of around 5% in 2024. Government efforts to diversify the economy are anticipated to catalyse and sustain a steady GDP growth rate in the medium term.

Russia’s GDP growth forecast for 2024 has been improved to 3%. EDB analysts note that the expansion of domestic demand has been driven by high household incomes and fiscal stimuli. However, due to tight monetary policy, it is anticipated that consumer activity will gradually decline in the coming year.

Belarus’s GDP growth forecast for 2024 has been upgraded to 3.4%, supported by continued strong growth in demand from Russia and wage increases.

EDB researchers forecast that inflation in Kyrgyzstan and Tajikistan may drop below target levels, while Russia and Kazakhstan continue to face increased inflationary pressures. Bank analysts project that inflation rates will gradually approach targets in 2024: 1.5% in Armenia, 6% in Belarus, 8.3% in Kazakhstan, 4.3% in Kyrgyzstan, 5.8% in Russia, and 4.1% in Tajikistan.

 

photo: EU in Uzbekistan

Uzbek Prison Visit by EU, US, and UK Diplomats

At the invitation of Uzbek authorities, UK Ambassador Timothy Smart, EU Ambassador Charlotte Adriaen and US Deputy Chief of Mission Paul Poletes visited a prison colony in the Chirchik district close to Tashkent, on 20 June.

As reported by the Delegation of the European Union to Uzbekistan, the visit included a tour of facilities for medical care and therapy, as well as two workshops where prisoners produce garments and furniture. Presentations by staff, provided an insight into the daily lives of prisoners serving their sentences.

The visit marks a milestone in engagement between Uzbekistan and the European Union, the United Kingdom, and the United States, and the diplomats acknowledged both the openness of the prison staff and  improvements made in recent years.

Uzbekistan has announced its intention to ratify the Optional Protocol to the Convention against Torture (OPCAT) under which the National Preventative Mechanism will conduct comprehensive and independent reports on detention facilities to support the Uzbek government in forwarding reforms to improve the justice sector.

Charlotte Adriaen thanked both the Uzbek government and the administration of prison #13 for enabling the visit and said: “Transparency in the penitentiary system is key to Uzbekistan’s path towards the ratification of OPCAT. In this regard, and considering the positive impression provided by today’s visit, it is my firm belief that openness and cooperation with international and national monitors can only benefit the life of prisoners and Uzbekistan.”

Enthused by the visit, Timothy Smart added: “It is encouraging to see Uzbekistan continue its journey towards improving human rights in the country. In the UK we have had many issues with our prisons and through open discussion and independent scrutiny, have been able to improve conditions. I am most grateful to the Uzbek government and authorities of prison #13 for such access.  I was struck by both the quality of the facilities we saw today and the focus on rehabilitation. The life skills provided are invaluable to both the individuals as well as their mahallas”.