Page 217 – The Times Of Central Asia

02 Jul 2025

Kyrgyz Transport Minister Wears Camouflage Following Rebuke by State Security Chief

July 2, 2025
By Anton Chipegin

Kyrgyzstan’s Minister of Transport and Communications, Absattyr Syrgabaev, was seen wearing camouflage during a recent site inspection, days after facing public criticism from Kamchybek Tashiev, head of the State Committee for National Security (GKNB) and deputy chairman of the Cabinet. The incident took place during a working visit to the Jalal-Abad region.

Tashiev’s reprimand was sparked by the poor condition of a local maternity hospital. He criticized hospital staff for neglecting basic maintenance, including watering trees and keeping the grounds tidy.

“Is it really impossible to water them? Why do I have to come here and talk about this?” Tashiev said during the visit.

Turning his attention to Syrgabaev, Tashiev accused the minister of ignoring broader infrastructure responsibilities beyond road construction. He urged Syrgabaev to change his appearance to reflect a more hands-on approach.

“Until November, don’t wear a suit. Wear camouflage like me and work until nightfall. In winter, you can go back to suits. Otherwise, you’ll keep showing up in Naryn and Ton in business attire. You have to work! Do you hear me?” Tashiev said at a government meeting in Jalal-Abad.

Demands for Constant Work

Tashiev also directed harsh criticism at regional governors (akims) and other civil servants, insisting they work “around the clock without days off.” He emphasized that every official must act as a “strong manager.”

“Stop working one day and resting two!” he demanded.

Shortly after these remarks, Syrgabaev appeared in camouflage during a road reconstruction inspection in the Suusamyr Valley, aligning with Tashiev’s directive. The appearance drew attention from local media outlets.

Context of Political Pressure

This is not the first time Syrgabaev has come under scrutiny. In May 2025, Tashiev gave him a one-month deadline to complete the Balykchy to Cholpon-Ata highway. While the road was completed on time, unfinished sidewalks led to a “final warning” for the minister. A year earlier, he had been criticized for delays in constructing a bridge over the Ala-Archa River in Bishkek.

The backdrop of heightened scrutiny comes amid ongoing corruption investigations. In recent months, authorities have arrested the mayors of Tokmok and Kara-Balta, the deputy mayor of Bishkek, and several contractors.

In this climate, Tashiev’s public remarks are increasingly viewed as informal mandates, reflecting his growing influence within Kyrgyzstan’s state apparatus.

02 Jul 2025

Central Asia, Uzbekistan, Uzbekistan Business & Economy, Business & Economy

Uzbekistan’s Gold Exports Surge 55% in Early 2025, Reaching $6.49 Billion

July 2, 2025
By Sadokat Jalolova

Uzbekistan’s gold exports surged in the first five months of 2025, reaching $6.49 billion, a 54.8% increase compared to the same period in 2024, according to the National Statistics Committee. Gold now accounts for nearly 44% of the country’s total export revenues, up from $2.66 billion and 37.1% during the same period last year.

The rise in gold exports reflects a combination of high global prices, hovering near record highs of around $3,000 per ounce and strong international demand for bullion. Analysts note that much of the growth occurred after February, contributing to a sharp uptick in trade revenue.

A Strategic Export Commodity

Uzbekistan remains one of the world’s top gold producers, largely due to massive operations such as the Muruntau mine, which in 2021 produced approximately 85,000 kg of gold. According to the World Gold Council, Uzbekistan produced 119.6 tonnes of gold in 2023, ranking tenth globally.

Gold plays a pivotal role in Uzbekistan’s economy, generating significant export earnings and bolstering foreign currency reserves. It remains a central pillar of the country’s trade strategy and monetary policy.

Record Foreign Reserves

With the rise in gold exports, Uzbekistan’s international reserves have reached an all-time high. As of late May 2025, reserves stood at $49.66 billion, up from about $37.4 billion in mid-2024.

Much of this increase is attributed to gold: the Central Bank of Uzbekistan’s holdings grew both in volume and value, with the rise in gold prices adding over $1.8 billion in recent months.

In January 2025, Uzbekistan even became the world’s top official-sector gold buyer, a move aimed at strengthening its reserve position. In 2023, the country earned $8.15 billion from gold exports, nearly double the previous year’s figure, despite some sales from national reserves.

These trends underscore gold’s growing importance as both a trade driver and a stabilizing force for Uzbekistan’s economic and financial position.

02 Jul 2025

Central Asia, Uzbekistan, Uzbekistan Business & Economy, Business & Economy

World Bank Urges Uzbekistan to Deepen Reforms to Sustain Growth and Empower Private Sector

July 2, 2025
By Sadokat Jalolova

Uzbekistan has made significant progress on economic reforms since 2017, but more decisive action is needed to sustain high growth rates and foster a dynamic private sector, according to the World Bank’s latest Country Economic Memorandum. The report, which analyzes the country’s economic trajectory from 2010 to 2022, outlines key policy recommendations for the coming years.

Between 2010 and 2022, Uzbekistan’s per capita GDP grew at an average annual rate of 4.2%, outpacing the regional averages for Europe and Central Asia and for lower-middle-income countries. However, the World Bank notes that this growth has been driven largely by capital accumulation rather than productivity gains, while the private sector remains underdeveloped.

“To become an upper-middle-income country by 2030, Uzbekistan needs to boost its growth closer to double digits,” the report states. Achieving this requires sharp improvements in total factor productivity, which hinges on reducing regulatory and market distortions, deepening trade integration, and investing in human capital.

State Role and Infrastructure Gaps

State-owned enterprises (SOEs) still dominate many sectors of the economy. As of 2020, over 2,000 SOEs accounted for revenues equivalent to 32% of GDP. Many of these operate in areas where private firms could be more efficient. The report recommends accelerating privatization, particularly in competitive sectors, and enhancing transparency in the process.

Infrastructure remains a major bottleneck to sustainable growth. While Uzbekistan has taken steps to attract private investment, especially in the energy sector, greater efforts are needed. The World Bank urges targeted investment in electricity and transport infrastructure, prioritizing economically strategic regions such as Tashkent and Qarshi, and improving connectivity between hubs like Samarkand, Navoi, and Khorezm.

Trade and Regulation

Since 2017, Uzbekistan’s trade-to-GDP ratio has more than doubled, reaching 71.6% in 2022. Still, only 6% of domestic firms are engaged in exporting. To capitalize on its growing trade openness, the report calls for further tariff reductions, streamlined customs processes, and modernized logistics and transport networks.

To foster a more competitive business environment, the World Bank recommends comprehensive regulatory reforms. This includes establishing independent regulators in sectors such as energy, rail transport, and telecommunications, and enhancing the mandate of the Competition Promotion and Consumer Protection Committee.

If implemented, these reforms could help Uzbekistan accelerate its economic transformation, create more jobs, and strengthen its position in the global economy.

02 Jul 2025

Home, Environment, Kyrgyzstan Environment, Kyrgyzstan

Kyrgyz Government Urges Farmers and Migrants to Cultivate Underused Farmland

July 2, 2025
By Sergey Kwan

Kyrgyzstan’s Ministry of Water Resources, Agriculture, and Processing Industry is encouraging both domestic farmers and citizens working abroad to return and develop the country’s underutilized, low-productivity farmland.

According to the ministry, Kyrgyzstan currently has 614,000 hectares of such land. The initiative invites citizens to convert these idle plots into productive agricultural zones, helping to green the country and generate income.

Those interested will receive comprehensive support from both the ministry and local authorities. Assistance includes the installation of drip irrigation systems, access to preferential loans, supply of high-quality seedlings, and expert consultations.

The ministry recommends planting fruit trees and berry shrubs that thrive in low-fertility, arid soil conditions. Suggested crops include apple, apricot, cherry, mulberry, currant, rosehip, sea buckthorn, hawthorn, as well as walnut and pistachio trees.

This initiative is part of a broader strategy to stimulate agricultural production and exports in Kyrgyzstan, where more than half the population lives in rural areas.

02 Jul 2025

Home, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Kazakhstan’s Labor Migration Market: Balancing Interests Amid Rising Violations

July 2, 2025
By Vagit Ismailov

Analysts at Finprom.kz have released a new overview of labor migration trends in Kazakhstan. According to the report, as of May 1, 2025, 14,300 foreign citizens were officially employed in the country, a 4% increase compared to the same period last year.

Origins and Occupations

The majority of migrant workers come from China, with 5,100 individuals, a 24.5% year-on-year increase. They are followed by workers from Uzbekistan (1,900), Turkey (1,100), and India (1,100).

Foreign workers are primarily employed in construction, which accounts for 5,000 people, a 19.1% increase from the previous year. Other major sectors include agriculture, forestry, and fisheries (2,300 workers), and mining and manufacturing (1,300 workers in each).

The most common job categories for foreign workers include specialists (4,400), heads of structural divisions (2,400), seasonal workers (2,300), skilled laborers (1,000), and intra-company transferees (3,600). Despite overall growth, the number of foreign specialists has declined by 21.5% compared to last year. The number of foreign nationals in management roles remains largely unchanged at 567, compared to 564 last year.

Quotas, Oversight, and Violations

The Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan sets annual quotas for hiring foreign labor. In 2024, the quota was capped at 22,000 workers, equivalent to 0.23% of the national workforce.

However, violations related to labor migration are on the rise. Between January and May 2025, authorities recorded 1,600 administrative offenses, an increase of 10.1% compared to the same period in 2024. The highest number of violations occurred in the Karaganda region (224), followed by Astana (141), Shymkent (136), Almaty (110), and the Turkestan region (99).

Those held administratively responsible included 238 individual entrepreneurs and 19 government officials. Authorities also fined 106 foreign nationals for breaches of migration laws.

Total fines amounted to KZT 157.1 million ($303,000), up 22.6% from KZT 128.2 million a year earlier. Of this amount, KZT 130 million (82.7%) has already been collected.

02 Jul 2025

Home, International Affairs, Kazakhstan International Affairs, Kazakhstan, Features, Kazakhstan Featurees

New Plane Crash Allegations Add Fuel to Russia-Azerbaijan Dispute

July 17, 2025
By Times of Central Asia

Earlier this year, Azerbaijan lashed out at Russia over the Dec. 25, 2024 crash of an Azerbaijan Airlines plane that the government said was hit by accidental Russian ground fire before crashing in Kazakhstan. Now, Moscow is coming under fresh scrutiny over the crash, which killed 38 of the 67 people on board, as a broader dispute between Russia and Azerbaijan sharply escalates.

On Wednesday, an Azerbaijani news outlet, Minval Politika, published an anonymous letter and other materials purportedly containing a Russian air defense captain’s assertion that the Russian Defense Ministry gave the order to shoot down the plane as it tried to land in Grozny, Chechnya. The outlet says it can’t confirm the authenticity of the letter, and Russia has previously said an official investigation should run its course. But the dramatic allegation and the timing of the apparent leak to Minval Politika are likely to heighten acrimony at a particularly sensitive moment.

Minval Politika said it felt compelled to publish the information for “society,” and that the “data obtained can serve as useful information for the competent authorities of the Republic of Azerbaijan investigating the circumstances of the tragedy.”

The wider confrontation stems partly from the arrests of dozens of people of Azerbaijani origin by Russian security officials in the Russian city of Yekaterinburg last week. Two ethnic Azerbaijani brothers died in those raids, which Russian officials said were part of an old murder probe. Azerbaijan then detained staff at the Baku office of Russian state media group Sputnik, alleging fraud and other crimes. Russia, in turn, accused Azerbaijan of “unfriendly” conduct.

The rift lays open the delicacy of relations between regional power Russia and most former Soviet republics that, since the dissolution of the Soviet Union in 1991, have developed trade, diplomatic, and other ties with Moscow while trying to strengthen their own sovereignty and national identity, and engage with other international partners. Central Asian countries – Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan – have generally maintained this balance and looked for diplomatic solutions to concerns such as discrimination against Central Asian migrants in Russia.

At the other end of the spectrum, Ukraine has been in an all-out war with a Russian invading force for more than three years.

Azerbaijan, in the South Caucasus region, has long maintained an alliance with Russia, which has gradually been losing influence in the area as it focuses on the Ukraine war and as Türkiye and other players gain more clout. Azerbaijan’s relationship with Russia soured markedly because of the Azerbaijan Airlines plane crash and what Azerbaijani authorities and commentators saw as an evasive Russian response to the disaster.

The incident put Kazakhstan in a difficult position because the crash happened on its territory, just outside the Caspian Sea city of Aktau, and Kazakh authorities were therefore the leaders of an investigation that required the full cooperation of Russia to understand what really happened. Russian President Vladimir Putin had apologized to his Azerbaijani counterpart, Ilham Aliyev, but did not acknowledge that the aircraft had been accidentally hit by Russian fire before diverting to Aktau. Russia has said the area was under attack by Ukrainian drones at the time.

Numerous aviation and security specialists have said damage to the plane’s fuselage was consistent with shrapnel marks. But a preliminary report released by Kazakhstan in February did not clear up whether Russia had fired on the plane, saying only that objects that were not part of the plane had struck it and caused significant damage.

As The Times of Central Asia reported at the time: “While a full report is in the works, that could take many more months, during which time tensions between Azerbaijan and Russia are likely to stew or escalate unless Azerbaijan gets the full apology and accountability that it demands.”

While ties with Russia deteriorate, Azerbaijan is pursuing brisk diplomacy with other countries in the broader region. On Tuesday, Ukrainian President Volodymyr Zelenskyy telephoned Aliyev. On Wednesday, Uzbek President Shavkat Mirziyoyev arrived in Azerbaijan for a visit.