13 May 2024
Central Asia, Kazakhstan Local Politics, Local Politics, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

A Steep Rise in Popularity of Women-Only Carriages on Kazakhstan’s Trains

Since the beginning of this year, some 70 thousand women in Kazakhstan have opted to travel by train in carriages designated as “women’s cars”. According to data provided  by the national carrier “Kazakhstan Temir Zholy” (KTZ), this is a steep rise from the 34,000 who used the same carriages in 2023.

Introduced at the beginning of 2021, the service which female travellers deem safer and more comfortable than mainstream carriages, has now been used by over 359 thousand women.

Outlining the initiative, KTZh explained that tickets for women’s cars ,  available on eight trains, are sold only to women and are staffed exclusively by female conductors. Any males travelling must be seven years’ old or under.

With reference to forward planning, the company stated,  “A social survey is currently being conducted on the project. Once collated, the results should provide a better understanding of the needs and preferences of passengers, and subsequently, help determine a strategy for its future development.”

The need to launch women-only cars in Kazakhstan was spurred by public outrage following the rape of a female passenger  by two conductors on a high-speed train travelling the ‘Talgo’ route between  Astana   and Aktobe in the fall of 2018. During the ensuing  high-profile case in  July 2019, conductors Zhetes Umbetaliyev and Kolkanat Kurmaniyazov were found guilty and sentenced to two years and six months in prison.

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13 May 2024

Former Minister of the National Economy, Kuandyk Bishimbayev; image from the Astana court session.

Central Asia, Kazakhstan Lead Story, Lead Supplementrary 1, Home, Justice, Kazakhstan Justice, Kazakhstan, Kazakhstan Featurees

Kuandyk Bishimbayev Sentenced to 24 Years for the Murder of Saltanat Nukenova

Kuandyk Bishimbayev, a former Minister of National Economy of Kazakhstan under then-President Nursultan Nazarbayev, was sentenced on Monday to 24 years in prison in the specialized inter-district investigative court of Astana for torturing and murdering his common-law wife, Saltanat Nukenova, at the Gastrocenter Restaurant on November 9, 2023.

The verdict and sentence in an Astana courtroom followed a live-streamed trial that galvanized discussion about domestic violence in Kazakhstan and tested the ability of the criminal justice system to hold the powerful and influential to account. Rallies in support of Nukenova spread outside of Kazakhstan, and were staged in Czechia, Georgia, Italy, Spain, and numerous other countries.

A rally in Prague in support of Saltanat Nukenova. Image Source: Asel Kamiyeva

Judge Aizhan Kulbaeva read out the ruling after a jury trial as Bishimbayev stood in the glass-paneled dock, his head bowed at one point. He had acknowledged beating Nukenova and said his actions, which were captured on CCTV video, led to her death. But he claimed he did not intend to kill her.

“Bishimbayev Kuandyk Alikhanovich has been found guilty of committing criminal offenses under p. 1. 2 part 2 of article 110 (“Torture”) and point 5 part 2 of article 99 (“Murder”). 2 part 2 of article 99 (“Murder”) of the Criminal Code,” stated the judge. He was sentenced to 7 years on the first count, and 20 years on the second, which after a partial addition of terms amounted to 24 years in prison.

Image from the Astana court session

In addition, the director of Gastrocenter, Bakhytzhan Baizhanov was found guilty of harboring a particularly serious crime in advance and sentenced to four years in prison in a medium security penal institution, with time already served being taken into account.

During the trial, as public outrage over Nukenova’s killing simmered in Kazakhstan, President Kassym-Jomart Tokayev signed a new law in April in line with OECD standards which tightens the penalties for domestic violence and provides more help for survivors. The legislation became widely-dubbed, “Saltanat’s Law.”

The response to Saltanat Nukenova’s harrowing attack signals a positive trend for women’s rights in the region. The case quickly advanced to a jury trial, given full transparency via a live broadcast, with a female prosecutor at the helm — a clear stance on gender violence in Kazakhstan.

Human Rights Watch commended the law as a step forward, but say it should have designated domestic violence as “stand-alone offense,” which would allow other types of violence within the family, such as psychological or sexual, to be thoroughly investigated and prosecuted. The UNDP, meanwhile, commended “legislative initiatives protecting women’s [and] children’s rights,” calling them a “crucial step towards equality, justice [and] safety for all citizens” that “lay a foundation for a stable, prosperous society.”

This is not be the first time that Bishimbayev has been sentenced. In 2018 he received a ten-year sentence for accepting bribes, but after less than a year later he was pardoned by then-president Nazarbayev.

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13 May 2024
Kyrgyzstan, Kyrgyzstan Environment, Kyrgyzstan Business & Economy

Turkish Company to Manufacture Irrigation Equipment in Kyrgyzstan

This summer, a Turkish company will begin construction on a plant for the manufacture of equipment for drip and sprinkler irrigation in Kyrgyzstan.

The memorandum on the project was signed on May 13 by Kyrgyzstan’s Minister of Water Resources, Agriculture and Processing Industry Bakyt Torobaev and the head of the company Akplas Plastik San. Ve Tic. A.S.

To instigate the first stage of the build, the Turkish company will invest $10 million and the factory should be completed and fully operational within eight months.

Reiterating the need for a more efficient use of water, in the light of climate change, Minister Torobaev stated that the new irrigation systems are to be installed in regions throughout Kyrgyzstan.

In addition to providing the necessary equipment, the Turkish company in liaison with the state, will provide training for local farmers.

Company representatives also met with the Chairman of the Cabinet of Ministers of the Kyrgyz Republic Akylbek Japarov, who emphasized the country’s readiness to support entrepreneurs investing in Kyrgyzstan.

 

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13 May 2024
Central Asia, Uzbekistan, International Affairs, Business & Economy, Uzbekistan Business & Economy, Uzbekistan International Affairs

Uzbekistan To Work With Hungary on Nuclear Projects

Hungary will train nuclear engineers from Uzbekistan to work in Uzbek power plants, the country’s trade minister Peter Szijjarto announced during his recent visit to Tashkent.

“Since we have several decades of experience in the field of nuclear power, we have already started training future Uzbek nuclear power specialists in Hungary,” Sijjarto wrote on social media.

He noted that if a contract with Rosatom is signed for the construction of a nuclear power plant on the territory of Uzbekistan, it will use the Hungarian technology of cooling on the basis of a “dry” cooling tower. A similar method is already used by the Hungarian company Eniox, which is ready to provide financing to Hungary’s Eximbank Hungary in the amount of 130 million euros when participating in the Uzbek nuclear project.

Hungary has now started construction of the Russian-designed Paksh-2 NPP of generation “3+” with two power units based on VVER-1200 reactors. Operating since 1982, the Paksh NPP will start to be decommissioned from 2032.

“In the current energy crisis, the ability to produce nuclear energy has become extremely valuable. Without nuclear energy, Europe would not have a secure energy supply and affordable energy,” Sijjarto emphasized.

As the world’s fifth-largest exporter of uranium, Uzbekistan is attracting Japanese and Chinese companies that are actively developing uranium in the republic, especially with a focus on black shale.

According to data for 2022, Uzbekistan has reserves of 49,200 tons of uranium and about 32,900 tons of uranium in black shale.  The deposits are mainly concentrated in sandstones of the Kyzylkum desert.

Today, uranium mined in the country is exported abroad by companies such as Itochu (Japan), Cameco (Canada), CNEIC (China) and others.

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13 May 2024
Central Asia, Local Politics, Kyrgyzstan, Business & Economy, Kyrgyzstan Local Politics, Kyrgyzstan Business & Economy

Kyrgyz Banks Try to “Warm Up” Economy With Interest Rate Cut

Commercial banks in Kyrgyzstan are expected to reduce interest rates on loans, with the National Bank of Kyrgyzstan (NBKR) lowering the rate from 13% to 11%. However, experts believe that the regulator’s decision will not affect the banking sector.

“We expect that now the market offers on deposits and loans will be revised. But time is needed for this. Commercial banks, financial organizations have to adapt their conditions. If currently the interest rates on loans average more than 15%, then a revision of rates is expected,” Aida Karabayeva, head of the NBKR communications department, told a press conference in Bishkek.

The rate cut is an attempt to warm up Kyrgyzstan’s economy, weaken the national currency and increase export revenues, economists said. Thanks to the weakening of the Russian ruble against the Kyrgyz som, inflation in the country has fallen from 7.3% to 5.2%. This gives domestic producers and exporters room to maneuver.

“At the moment we see that inflation risks are weakening. Previously, the tightening of monetary policy by the National Bank controlled the saving behavior of the population and the banking sector. This helps to ensure that the national currency does not depreciate,” Ainura Mambetkul kyzy, head of the National Bank’s economic department, told The Times of Central Asia.

However, the situation has changed recently, Mambetkul kyzy said. Kyrgyzstan has enough finances to increase lending. This creates conditions for the growth of purchasing power of the population. And as a consequence, economic growth.

Despite the confidence of the financial regulator, commercial banks are in no hurry to reduce interest rates on loans. In any case, they are waiting for the next statement of the financial regulator, in May this year. The fact is that Kyrgyzstan’s banking system operates according to its own, domestic standards — most of the borrowed funds are raised abroad by the second tier banks, or use citizens’ deposit savings.

Maerim Askarbekova, director of Senti financial company, commented: “The practice is that a decrease in the discount rate leads to a general decrease in rates in the whole market. This applies to both loans and deposits. Deposits, on the other hand, directly affect the bond market. The decrease in the discount rate affects the decrease in the price of money on the market. And if the loan that the bank has taken for its operations has foreign roots, the bank will demand lower interest rates. But, in any case, the NBKR interest rate is a benchmark.”

 

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13 May 2024
Central Asia, Home, Business & Economy, Kazakhstan, Kazakhstan Business & Economy, Features, Kazakhstan Featurees

Cleaning up the Samruk-Kazyna National Welfare Fund

In his efforts to transition Kazakhstan from previous president Nazarbayev’s era, President Kassym-Jomart Tokayev has centered his policy agenda on strengthening justice and eradicating kleptocracy in Kazakhstan. His presidential platform, known as “Just and Fair Kazakhstan,” remains a focal point in his addresses, which often emphasize dismantling systems that have facilitated kleptocracy in the country. Tokayev’s anti-corruption efforts aim to enhance transparency and combat corruption through retrieving stolen assets, implementing digital monitoring of public expenditures, mandating financial disclosures from officials, and reallocating confiscated funds to infrastructure projects. In its 2023 consultations, the IMF recognized these positive steps.

These initiatives, combined with a notable increase in the public’s trust in the anti-corruption agency from 30% in 2022 to 43% in 2023, reflect tangible progress in Kazakhstan’s fight against corruption. A 2024 report by Transparency International asserts that “President Tokayev has initiated a series of anti-corruption reforms, and Kazakhstan is currently in the process of implementing recommendations made by the Council of Europe’s Group of States against Corruption (GRECO) in its 2022 evaluation report.”

Critics claim, however, that the country’s administration has not gone far enough in combatting corruption and that the government still lacks transparency when it comes to the management of state assets. Recently, Eurasianet commented that “Kazakhstan shows improvement on graft, but [is] still struggling.” Radio Free Europe has further reported that high-profile Kazakhs were escaping prosecution.

Tokayev has been visibly distraught with the government’s progress to date on tackling corruption and has even made major leadership changes, including in the office of the General Prosecutor in 2023. Also in 2023, the former Minister of Justice came under investigation for corruption. In February 2024, the Cabinet resigned to make way for a new government under Olzhas Bektenov, a former head of an anti-corruption watchdog. This move was widely recognized as the latest effort to clean out a bureaucracy compromised by its ties to business elites, particularly those linked with the “Old Kazakhstan” under former president Nazarbayev, who have undermined the state’s capacity to ensure a fair business environment, as well as to effectively investigate and prosecute corruption charges.

 

New steps to combat corruption and kleptocracy

In a presidential decree signed last week “On measures to liberalize the economy” that introduced several initiatives aimed at “ensuring freedom of entrepreneurship by developing competition, reducing state participation in the economy, and reducing business costs”, the President took aim at Samruk-Kazyna National Welfare Fund, i.e., the country’s Sovereign Wealth Fund, which has almost $70 billion under its’ management.

The fund has been highly scrutinized for being an instrument of kleptocracy. It has provided unreasonable support to banks, written-off major loans, given exorbitantly favorable loan terms, and in one case, caused a bank to fail and be taken over by a rival months later. As in other post-Soviet republics, banks have been vehicles for oligarchs ascendancy by way of using government funds to build massive business empires. Tokayev has publicly stated that the government needed to “immediately stop this orgy of leaking state aid into private pockets.”

The fund’s oversite of privatizations has also been a subject of controversy. It notoriously oversaw the privatization of Kazakhtelecom in a process tailored to benefit political heavyweights, most notably associates of former prime minister and intelligence chief Karim Massimov, including Kairat Satybaldy, the convicted nephew of former president Nursultan Nazarbayev. Satybaldy, who served as Massimov’s deputy in the National Security Committee, accumulated a whopping 28.8% control in the telecom giant.

With regards to Samruk-Kazyna in particular, the recent Presidential decree strengthens the corporate governance mechanisms of the fund and its subsidiaries by increasing their quality and autonomy, whilst it also seeks to improve the procurement processes the fund and its subsidiaries carry out. The decree also foresees the creation of a National Privatization Office to further mitigate against corruption. Operating under the Agency for the Protection and Development of Competition, this new office will ensure that the privatization of state assets follows a more standardized system.

 

A long road ahead, with one step at a time

As politicians from around the globe would agree, corruption remains a universal challenge plaguing states regardless of their level of economic development or democratic status; Western nations still struggle with it, as do the emerging democracies of Central Asia and elsewhere. Governments work to eliminate corruption and kleptocracy through increasing transparency and encouraging robust corporate governance. While positive change often comes slowly, implementing key laws and standards, such as those set forth in Kazakhstan’s recent presidential decree, including on Samruk-Kazyna, represent an important step towards making a tangible difference.

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