Page 211 – The Times Of Central Asia

09 Jul 2025

Business & Economy, Kyrgyzstan, Kyrgyzstan Business & Economy

Russian Inflows Drive Kyrgyz Remittance Surge

July 9, 2025
By Anton Chipegin

Kyrgyzstan recorded a sharp increase in remittance inflows during the first five months of 2025, reaching USD 1.367 billion —a 16% rise compared to the same period in 2024, according to data from the National Bank of the Kyrgyz Republic (NBKR).

The increase was particularly notable in April and May, traditionally high-transfer months ahead of the summer season. In May alone, remittances totaled USD 299 million, up from USD 253 million in May 2024.

Russia remains the dominant source of remittances, accounting for 94% of total inflows between January and May. The NBKR reported USD 1.2 billion in transfers from Russia during this period, reflecting a year-on-year increase of USD 188 million.

This growth comes despite a significant drop in the officially registered number of Kyrgyz labor migrants in Russia from 650,000 in previous years to around 350,000 in 2025. Unofficial estimates, however, suggest the actual figure may exceed one million. The higher remittance volume suggests increased per-capita transfers or improved earnings among Kyrgyz migrants.

In 2023, remittances from Russia stood at USD 2.532 billion. Even as the migrant workforce declined sharply in 2024, total transfers from Russia rose by USD 34 million, indicating persistent reliance on income from abroad.

Other countries contributed relatively little to Kyrgyzstan’s remittance inflows. Transfers from the United States edged up to USD 27.6 million in the first five months of 2025, an increase of USD 600,000 from the previous year.

In contrast, remittances from South Korea and Turkey declined sharply. Transfers from South Korea fell from USD 28.2 million to just USD 1 million, while Turkey’s contribution dropped from USD 6.9 million to USD 4 million.

Remittances continue to play a central role in Kyrgyzstan’s economy, historically making up more than 30 percent of GDP. Yet the country’s ongoing reliance on Russia for these financial inflows highlights its exposure to external risks such as geopolitical tensions, currency fluctuations, and changes in foreign labor market policies.

Looking ahead, the NBKR expects the upward trend in remittances to persist through 2025. However, long-term sustainability may hinge on diversifying migration destinations and strengthening domestic employment opportunities.

09 Jul 2025

Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Kazakhstan to Use Industrial Hemp for Passport Production

July 9, 2025
By Dmitry Pokidaev

Kazakhstan will begin producing high-security paper from domestically cultivated industrial hemp, which will be used in the manufacture of passports and national ID cards, the Ministry of Agriculture (MoA) has announced.

As previously reported by The Times of Central Asia, Kazakh authorities first considered cultivating industrial hemp in 2016, though the initiative remained dormant until recently. In spring 2025, a draft law legalizing the cultivation of non-narcotic hemp was submitted to parliament. It was approved by deputies in June and subsequently signed into law by President Kassym-Jomart Tokayev.

The legislation authorizes the government to determine which hemp varieties are eligible for industrial use, explicitly excluding strains used for narcotics, and outlines procedures for cultivation and processing.

High-Security Applications and Export Potential

At a government briefing on Tuesday, Deputy Minister of Agriculture Azat Sultanov explained the rationale behind the initiative.

“The main product will be high-security paper, which is a valuable export commodity used for the production of identification documents such as passports and other special forms,” Sultanov said. “The range of products being considered by the investor is wide. Market demand will be taken into account, and we believe all the output will go for export.”

The North Kazakhstan Region is currently being considered as the site for the production facility.

Regulated THC Levels and Licenses Issued

Earlier, the Ministry of Agriculture confirmed that the allowed level of tetrahydrocannabinol (THC), the psychoactive component of cannabis, in cultivated industrial hemp would not exceed 0.3%. In contrast, wild hemp found in Kazakhstan can contain up to 15% THC, rendering the industrial variant non-psychoactive.

Deputy Minister of Internal Affairs Sanjar Adilov noted in April that four licenses for industrial hemp cultivation had already been issued. One licensed farming enterprise in Kostanay Region, adjacent to North Kazakhstan Region, is already engaged in hemp cultivation and processing.

08 Jul 2025

Environment, Kazakhstan Environment, Kazakhstan

Kazakhstan Considers Carbon Accounting System to Boost Emissions Transparency

July 8, 2025
By Dmitry Pokidaev

Aydar Kazybayev, co-founder of the National Academy of Corporate Governance, has proposed the introduction of a carbon accounting system in Kazakhstan. He argues that such a system would enable the automatic calculation of greenhouse gas emissions at industrial enterprises and ensure more transparent and objective reporting.

“Today in Kazakhstan, greenhouse gas emission reports remain virtually unchanged, and in some cases have worsened. This is due to different companies conducting annual verifications without a unified verification history,” Kazybayev said at the Central Asia Thermal Power Forum.

He announced that a digital platform is scheduled for launch by the end of the year, aimed at integrating all combined heat and power (CHP) plants into a single emissions database. The system would allow companies to maintain carbon records independently via an aggregator or delegate the task to operators managing centralized “carbon accounts.”

“Our main objective is to reduce the administrative burden on companies required to submit such reports,” Kazybayev emphasized.

According to Kazakhstan’s most recent official submissions to the UN Framework Convention on Climate Change (UNFCCC), total greenhouse gas emissions stood at 375.4 million tons in 2020, declined to 328.4 million tons in 2021, and rose again to 353 million tons in 2022. The energy sector remains the largest contributor, accounting for 288.5 million tons in 2020, 251.4 million in 2021, and 281.9 million in 2022.

Kazybayev also cited technological innovations in China as potential models. Specifically, he highlighted China’s Smart Green Energy platform, which enables real-time monitoring of coal consumption and emissions, and generates both daily and annual reports. This system, currently in use at all coal-fired power plants in China, costs approximately $30,000.

“Such tools would be highly beneficial for Kazakhstan. They help accurately estimate resource usage and identify inefficiencies,” Kazybayev explained.

He also pointed to China’s modernization of coal-fired thermal power plants, where heat pumps and geothermal technologies are being adopted. These systems extract thermal energy from the air, ground, or water and integrate it into heating networks.

Air pollution remains a critical concern across Central Asia. As previously reported by The Times of Central Asia, the World Bank has attributed over 65,000 premature deaths annually to regional air pollution.

08 Jul 2025

Central Asia, Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy, Kyrgyzstan Home

Kyrgyzstan Seeks Foreign Investment in Critical Minerals Sector

July 8, 2025
By Sergey Kwan

Kyrgyzstan is emerging as a potential player in the global critical minerals market and is actively seeking international partnerships to develop its untapped geological resources.

Speaking at the International Forum on Critical Minerals 2025 in Seoul on May 12-13, Deputy Minister of Natural Resources, Ecology, and Technical Supervision Marat Jusupbekov emphasized the country’s growing relevance in the strategic resource sector. He noted that Kyrgyzstan is home to 11 deposits of rare earth elements (REEs), positioning it as a promising destination for investment and cooperation.

“Kyrgyzstan has significant reserves of rare and critical minerals that are essential for the energy transition and high-tech manufacturing. We are open to cooperation with global partners,” Jusupbekov said during his address.

One of the most notable assets is the Kutessay II deposit, which holds more than 63,300 tons of rare earth metals, along with molybdenum, silver, bismuth, lead, and zinc. The government is promoting joint development of this site with the nearby Kalesai beryllium deposit, which contains an estimated 11,700 tons of beryllium. Both deposits are licensed to Kyrgyzgeology, a state-owned enterprise tasked with attracting foreign investment.

Jusupbekov also highlighted the potential of the Kyzyl-Ompol uranium-thorium group, including the Tash-Bulak area, where titanium-magnetite reserves are estimated at 5.5 million tons. This project is licensed to Kyrgyzaltyn, the country’s largest mining company.

The deputy minister underlined the strategic role of critical minerals in the global transition to clean energy and advanced manufacturing. Materials such as lithium, cobalt, manganese, gallium, indium, graphite, and zinc are essential for the production of solar panels, electric vehicle batteries, and other next-generation technologies.

“Kyrgyzstan is committed to modernizing its mining sector by adopting green technologies and responsible extraction practices,” he said. “We invite international partners to co-develop critical mineral projects and advance sustainable industrial growth.”

In December 2024, Kyrgyzstan signed Memorandums of Understanding with South Korea’s Ministry of Trade, Industry and Energy and the Korea Institute of Geoscience and Mineral Resources (KIGAM). These agreements laid the foundation for deeper cooperation and potential South Korean investment in Kyrgyzstan’s mining sector.

The International Forum on Critical Minerals 2025, co-hosted by KIGAM, South Korea’s Ministry of Trade, Industry and Energy, and its Ministry of Foreign Affairs, brought together representatives from 12 countries, including Kazakhstan, Uzbekistan, Tanzania, the Democratic Republic of the Congo, Nigeria, Mongolia, Vietnam, Indonesia, Australia, Canada, and new participants Kyrgyzstan and Tajikistan.

08 Jul 2025

Business & Economy, Kyrgyzstan, Kyrgyzstan Business & Economy

Kyrgyz Lending Surges 55% as Consumer Demand Fuels Growth

July 8, 2025
By Anton Chipegin

From January to May 2025, the volume of new loans issued by commercial banks in Kyrgyzstan rose by 55 percent, according to the Eurasian Development Bank’s (EDB) June macroeconomic forecast.

The sharpest increase was recorded in consumer lending, which more than doubled during the period, rising by 2.1 times. As a result, the total loan portfolio of the Kyrgyz banking sector grew by nearly one-third.

“High lending rates are supporting domestic demand: retail trade and public catering increased by 25.3 percent during the first five months of the year. Consumer activity will continue to drive economic growth,” the EDB report states. Similar findings were previously released by the National Bank of the Kyrgyz Republic (NBKR), though with some differences in specific figures.

According to the NBKR, net profits of Kyrgyz banks from January to May totaled 12 billion som (approximately 137 million USD). The overall loan portfolio reached 404 billion som (around 4.6 billion USD), with overdue loans amounting to 7.3 billion som (83.5 million USD), or 1.8 percent of the total. The deposit base also showed strong growth: citizens deposited roughly 700 billion som (8 billion USD), reflecting a 17.7 percent increase since the start of the year.

Efforts to reduce dollarization have also shown progress. The share of foreign currency assets in banks’ loan portfolios fell by 1.5 percentage points to 18.5 percent. Meanwhile, the proportion of household deposits held in foreign currency declined by 4.6 percentage points to 38.4 percent.

According to EDB analysts, several key factors are driving Kyrgyzstan’s economic momentum. These include rising global gold prices, strong domestic consumption, and increased investment. Based on these trends, the bank has revised its 2025 GDP growth forecast for Kyrgyzstan upward by 1.6 percentage points. The country’s economy is now projected to grow by 10.3 percent this year.

08 Jul 2025

Central Asia, Uzbekistan, Local Politics, Uzbekistan Local Politics

Uzbekistan Elected to the UN FAO Council for the First Time

July 8, 2025
By Sadokat Jalolova

Uzbekistan has been unanimously elected to the Council of the Food and Agriculture Organization of the United Nations (FAO) for the 2028-2029 term, the country’s Ministry of Foreign Affairs has announced. This marks the first time Uzbekistan has secured a seat on the Council, which plays a pivotal role in shaping global agricultural and food policy.

The FAO Council consists of 49 member states, selected to ensure equitable geographic representation. It is tasked with reviewing the FAO’s budget and programs and making strategic recommendations to the FAO Conference.

Uzbekistan’s election is widely viewed as international recognition of the country’s recent reforms in agriculture and food security. Under the leadership of President Shavkat Mirziyoyev, the government has prioritized sustainability, food safety, and environmental protection.

Council membership will provide Uzbekistan with a stronger voice in international agricultural discussions. It will enable the country to participate in the development of global standards, support national and regional initiatives, and attract international funding to advance key development goals.

In recent years, Uzbekistan has collaborated closely with the FAO on several high-profile projects. In May 2024, the FAO and the Ministry of Ecology organized a workshop in Tashkent to launch a joint initiative on hazardous chemical management. Supported by the European Union, the project aims to reduce reliance on harmful pesticides by promoting safer alternatives to local farmers.

Earlier, in March 2024, the FAO and Uzbekistan’s Ministry of Agriculture hosted a seminar on the “Recarbonization of Agricultural Soils” (RECSOIL), culminating in an approved national action plan. The RECSOIL initiative complements two ongoing FAO projects focused on sustainable land management in drought-prone and dryland areas. These efforts are already benefiting Uzbek farmers through the adoption of modern, resource-efficient practices that improve productivity while preserving the environment.