@iStock

01 May 2024
Central Asia, Uzbekistan, Business & Economy, Uzbekistan Business & Economy

Uzbekistan Raises Its Poverty Line Due to Increases in Gas, Electricity Prices

Uzbekistan has updated its minimal poverty-defining level of consumer spending for the population to $51 from $48.9 dollars per month. This is already the second increase in the indicator since the beginning of the year, which is explained by rising gas and electricity prices.

Minimum consumer spending is calculated in Uzbekistan based on the daily neds of citizens on means spent on food and non-food products and services. According to Picodi.com, Uzbekistan is among the top ten countries with the highest spending on food, with citizens spend 46.5% of their earnings on edibles.

Overall, annual food inflation in the country reached one of its lowest levels in recent years in 2023, totaling 9.7% annually. In March 2024, food inflation contracted even more, to 7.8% annually, according to international data portal, Trading Economics.

The Center for Economic Research and Reforms says that the country managed to lift more than a million Uzbeks out of poverty in 2023. This was due to higher wages, social payments, benefits, and increases in income from agriculture.

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@airproducts.uz

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

American Company Launches CO2 Production in Uzbekistan

The American company Air Products is planning to open a carbon dioxide (CO2) production project in Uzbekistan. The corresponding agreement, worth $15 million, was signed with Navoi Nitrogen (Navoiazot) chemical complex. The plant will be the first and so far the only one of its kind in Uzbekistan, and will use untreated CO2 captured at the ammonia production line.

Production of high-purity carbon dioxide will allow its use in beverage production, food packaging, welding mixtures, for blast freezing of food products, the agro-industrial complex, greenhouses, water purification, dry ice production, and more.

The plant, which will have a capacity of 120 tons of CO2 per day, will reduce the consumption of natural gas, which is currently the main source of CO2 generation.

“Using CO2 in greenhouses allows farmers to harvest 20-40 percent more crops. For example, in Holland and Spain, 60 percent to 90 percent of greenhouses use carbon dioxide to enrich the atmosphere. Uzbekistan’s agriculture has great potential, and competent use of CO2 will allow it to achieve excellent results,” believes Kirill Korotkov, commercial director for Air Products Uzbekistan.

Air Products began operations in Uzbekistan in 2019, and to date has implemented a number of projects in the oil & gas and chemical industries.

In September 2023, during a working visit of Uzbek president Shavkat Mirziyoyev to New York, he met with Air Products’s chairman Seifi Ghasemi. The parties considered the expansion of their strategic partnership — with investments totaling up to $1 billion.

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01 May 2024
Central Asia, Kazakhstan Lead Story, Home, Kazakhstan Local Politics, Local Politics, Kazakhstan, Features

Divisive Forces Prompt Tokayev’s “National Unity” Message

At the 32nd session of the Assembly of the People of Kazakhstan, President Kassym-Jomart Tokayev promoted peace and harmony as the state ideology and impressed on “national unity” by referring to all citizens of his country as Kazakhs regardless of their ethnic, linguistic or religious affiliation. “Society should not be divided on these grounds”, Tokayev said.

Kazakhstan, a predominantly Muslim nation where Christians make up nearly 25% of the population, constitutes a genuine melting pot housing 131 different ethnicities. Such diversity can positively fuel innovation by merging different perspectives and create complex problem-solving methods. But it can also turn into a vulnerability when differences are manipulated to divide communities to gain political advantage. The Assembly of the People of Kazakhstan was established in 1995 to mitigate such risks and foster social harmony in the country.

 

Forces of division

The President’s latest statements draw attention to what the country perceives as threats to its national unity, which also reverberate elsewhere in the world, including corruption, malign foreign influence, and disinformation. It is difficult to ascertain whether foreign-backed political activities are genuinely aimed at enhancing the human condition in a country or are instead trying to undermine the state’s stability to advance the agendas of other states or individuals. Worryingly for Kazakhstan, a survey of whom many of the well-known political activists are affiliated with shows that they have not grown organically from the country’s civil society ecosystem. Instead, they are often funded by foreign states, NGOs and/or oligarchs. This represents a complex scenario that should alarm true defenders of democracy and human rights.

Firstly, the entrenched oligarchy formed under former President Nazarbayev’s thirty-year reign presents a challenge to the current leadership’s efforts to tackle corruption, kleptocracy and disinformation. These powerful business elites, who largely control the economy and media, resist any efforts to curtail their reach and influence. The government’s anti-corruption initiatives and asset recovery efforts are seen as direct threats to their wealth and dominance.

Secondly, foreign actors see Kazakhstan’s strategic value in the renewed Cold War between Russia and the West. While Kazakhstan’s official and clear position has been one of neutrality, foreign-backed grassroots movements and misinformation campaigns have aimed to move society to take one side or another in this somewhat bipolar battle.

The convergence of these domestic and international pressures forms a formidable challenge that threatens to compromise Kazakhstan’s sovereignty and the welfare of its citizens. The oligarchs, mainly fearing repatriation of their assets hidden abroad through the recovery efforts of the country’s new leadership, could be inclined to support state-led polarization efforts to weaken the government, thus further intensifying the threat to Kazakhstan’s peace and stability.

 

The evolution of the Kazakh ideology

The development of Kazakhstan’s national identity has been in the works since its independence from the Soviet Union in 1991, and has intensified as the country became a focal point for foreign powers seeking influence in 2022.

This broader statehood identity celebrates Kazakhstan’s history and diversity. President Tokayev appears to be leading the country in defining its ideology in a way that pairs current affairs with preserving the country’s sovereignty and building a government that is more accountable to its citizenry. His rhetoric encourages the promotion of national interests and advocates for a “just and fair Kazakhstan” that should benefit all citizens.

This ideology is taking an eclectic form, rejecting some foreign influences while being receptive to others, depending on whether they fortify or upset the country’s social order. For example, Kazakhstan’s populace is increasingly resistant to the Russian language and is opting to use the Kazakh dialect. Most inhabitants disfavor supporting Russia’s war effort and do not celebrate historical military victories of the Soviet Union. At the same time, the country has lived peacefully with its ethnically Russian population of 3.8 million. Many Kazakhs, especially the older generation, still appreciate the Soviet Union’s contribution to the country’s industrialization as well as to the universal education and healthcare systems. Some 76% of higher education students choose to study in Russia.

While maintaining a balance between external forces, Kazakhstan is also trying to stay true to its own traditional morals. Some Western constructs, such as the LGTBQ movement, are at odds with the country’s family values. Despite being a Muslim-majority nation with a secular stance, Kazakhstan’s resistance to Islamic extremist ideologies is exemplified by its efforts to restrict groups like Tablighi Jamaat. Interestingly, these restrictions have elicited criticism from the U.S.

In any case, it would not be fair to judge Kazakhstan’s international alignment based on domestic social issues. Its trajectory points towards the West when it comes to its democratic orientation, compliance with international norms and regulations, and meeting environmental goals.

 

Conclusion

Whatever side of the global divide one observes from, Kazakhstan appears predictably and skillfully multi-vector in its trade and security policies. It seeks plurality in foreign relations and has been anchoring its legislation and policies in line with key international laws and conventions under the United Nations frameworks.

Building democratic institutions, practices, and culture is a gradual process that can span generations. Remember, for instance, that women in Portugal only gained universal suffrage in 1976, and African Americans in the U.S. were only allowed this right in 1965. Kazakhstan has been an independent country for just 33 years, and it has already seen significant democratic progress, particularly when compared to the rest of the region. It should be allowed to advance at its own pace, and to do so while preserving its own identity and upholding international norms.

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Uzbek ministry of ecology,environmental protection & climate change

01 May 2024
Uzbekistan, Uzbekistan Home, Uzbekistan Life & Culture, Uzbekistan International Affairs

Uzbekistan Opens New  Museum Commemorating WW2 Japanese POWs

On 30 April, Uzbekistan Minister of Ecology, Environmental Protection and Climate Change Aziz Abdukhakimov  joined by Ambassador of Japan to Uzbekistan Hatori Takashi, founder and director of the museum, Jalil Sultanov, and representatives of the Japan Society in Uzbekistan to celebrate the opening of a new museum in Tashkent commemorating Japanese prisoners of war.

Over 20,000 Japanese POWs captured by the Soviet Union during the second world war, were interned in Uzbekistan between 1945-1950. During this period, the prisoners were dispersed across the country to construct buildings, dams, and roads in regions including Angren, Bekabad, and Kokand, and in Tashkent, built the Alisher Navoi Opera Theatre, the Mukini Theatre, the Central Telegraph and Ministry of Culture, as well as barracks still in use today.

According to estimates, 817 died in the process.

The new premises, under construction since 2023, replace the original museum founded in May 1998.

Housing photographs, documents, and artefacts, such as prisoners’ workwear and a wooden crib made for the local market, the collections testify to the lives of Japanese POWs in Uzbekistan, and given a new lease of life, are expected to become a major draw for Japanese tourists visiting the country.

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@ecostan.kg

01 May 2024
Central Asia, Environment, Kyrgyzstan Environment, Kyrgyzstan, Kyrgyzstan International Affairs, Business & Economy, Kyrgyzstan Business & Economy

ADB Allocates $56 Million for Sewage Treatment Plant to Protect Issyk-Kul

The Asian Development Bank (ADB) has agreed to allocate money for the construction of a sewage treatment plant in Cholpon-Ata, Kyrgyzstan’s main resort city on the northern shore of the high-mountain Lake Issyk-Kul, which is the crown jewel of the Kyrgyz  tourism industry. .

According to the State Agency of Architecture and Construction, the ADB will allocate $31 million in the form of a grant and $25 million as a soft loan for the construction of a sewage treatment plant with a capacity of 14,200 cubic meters per day. The funds will also be used to build 18 sewage pumping stations, 45km of main sewers, and 109km of intra-square sewage networks in the city of Cholpon-Ata.

“To date, the design and cost- estimate documentation for the sewage treatment plant, two main pumping stations and sewage collector in the city of Cholpon-Ata, and tender documents for them, [have been] sent for consideration by the Asian Development Bank,” reported the press service of the State Construction Committee.

The agency emphasizes that all local guest houses, sanatoriums and resorts will be able to connect to the central sewage system. Environmentalists have repeatedly warned of unfavorable ecological degradation of the waters of Lake Issyk-Kul, because of hundreds of hotels located in the coastal zone.

Today, most sewage treatment facilities in the coastal towns of Balykchy, Karakol and Cholpon-Ata are out of operation. Those sewage systems were put into operation in the 1960s or 1970s, and received little maintenance or upkeep.

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@Cronos Asia

01 May 2024
Central Asia, Home, Uzbekistan, International Affairs, Kazakhstan, Kazakhstan International Affairs, Features, Uzbekistan International Affairs

Visit by UK’s Cameron Doesn’t Oblige Central Asian Countries to Do Anything, Expert Says

British Foreign Minister David Cameron’s grand tour of Central Asia last month was an attempt to remind those of us in Central Asia about investment and sanctions, Kazakhstani economist Aidarkhan Kusainov has told The Times of Central Asia.

Over several days in late April, Cameron visited the five countries of Central Asia, demonstrating the UK’s intentions to participate in developing economic ties with the region. The visit was closely monitored by the international media, which said Britain’s main motive was to reiterate its interests.

In the countries chosen by the head of the UK Foreign Office for the tour, the interest in his visit was not so acute. Cameron himself assured them that he was not going to force the leaders to choose between Russia and China on the one hand and the West on the other. However, experts believe that the geopolitical component was still present, as the war in Ukraine has sharply increased attention to the region — and not only on the part of British leadership.

“We are not saying to Kazakhstan or any other country that you have to make a choice, or that we are asking you not to choose to partner and trade with Russia or with China or with anyone else. We are here because we believe that you should be able to choose to partner with us in a way that reflects positively on both our common security and our common prosperity,” Cameron said before meeting with Kazakh Foreign Minister Murat Nurtleu. The British Foreign Secretary made a similar statement during his visit to Kyrgyzstan.

Following a trip to Kazakhstan, where Cameron also met with President Kasym-Jomart Tokayev, it was stated that economic cooperation between the two countries has great prospects. In addition, it’s  worth noting that bilateral trade turnover between Britain and Kazakhstan exceeds the total bilateral turnover of all other countries in the region.

Furthermore, Cameron commented on British mining companies’ interest in Kazakhstan. “I think we can still do a lot more in the sphere of small business. We talked about how to remove bureaucracy and barriers for small- and medium-sized businesses to settle and work here. And I think in all areas, whether it’s education, whether it’s the economy, whether it’s energy, whether it’s climate change, there’s a whole range of things that we can do in partnership. And I want that to happen next year, in the coming years,” he said.

For his part, Kazakh Foreign Minister Murat Nurtleu noted the special role of the UK in Air Astana’s recent IPO and the creation of the Astana International Financial Center. “Given the recently adopted in London roadmap on fossil minerals, we considered the possibility of implementing advanced projects in the field of important raw materials, development of the Trans-Caspian International Transport Corridor and green energy. We agreed to work together to overcome global challenges, including the fight against climate change, environmental protection and effective management of water resources. We reaffirmed our interest in expanding trade and investment ties with London,” Nurtleu explained.

As for the visit to Tashkent, Cameron and Uzbek Foreign Minister Bakhtiyor Saidov signed a memorandum of understanding on regional and international ties and infrastructure, as well as a joint declaration on comprehensive cooperation — including joining forces to combat terrorism, climate change and expanding human rights.

Officials in Bishkek noted that Cameron believes it’s necessary to support environmental projects in the context of climate change. In this regard, Britain will create an investment fund to support small- and medium-sized businesses. Britain is also cooperating with Kyrgyzstan on private investment and even building sports facilities. Statements from Turkmenistan and Tajikistan were less informative, and concerned “prospects for bilateral cooperation, including in the political, trade and economic, investment, energy and transportation spheres.”

In addition to geopolitics, in Kazakhstan Cameron could discuss the Kashagan problem. Bloomberg recently reported that the amount of international arbitration claims by Astana against the international consortium of oil companies developing the Kashagan field exceeded $150 billion. The consortium includes the British-domiciled integrated oil & gas producer Shell.

As part of the growing interest of Western diplomacy in Central Asia, in September 2023, the heads of state of the region met with U.S. President Joe Biden within the framework of a six-party conversation. The leaders also met in Berlin with German Chancellor Olaf Scholz, and in November, French President Emmanuel Macron visited Kazakhstan and Uzbekistan.

Before Cameron’s tour, Britain’s Foreign Office announced a commitment to provide £50 million ($62 million) in aid to Central Asia, which “could help Britain increase its soft power and influence in the region.” As analysts note, these funds don’t amount to too much for a big country with energy and metals wealth like Kazakhstan.

According Kusainov, no revolutionary statements were made during Cameron’s visit. Kusainov, besides his work as an economist, is a former adviser to the chairman of the National Bank of Kazakhstan, and author of the book, Kazakhstan’s Economy: Myths and Reality. New Economic Policy. Information Space. National Idea.

“It is clear that the UK is trying, at the very least, not to lose influence in Central Asia, and at the most, to expand it. This is an important element of today’s geopolitics, as the region is sandwiched between China and Russia, as some believe. There is interest from Britain’s side; Biden has also held meetings. On the part of Kazakhstan and Uzbekistan, it is this: as long as it does not interfere with anything and does not get involved in any conflicts, why not? From this point of view, general agreements were signed, as I suspect, not binding on anything,” Kusainov told TCA.

Regarding the expected tranches of aid to the region, he noted that “to promise does not mean to marry. Why not add to what has already been invested?” he said.

“I do not think that Cameron’s visit was specifically timed to the problems at Kashagan, but these issues are on the agenda anyway — Kashagan, CPC [Caspian Pipeline Consortium], TCO [Tengizchevroil]. In general, the visit shows that there is influence, there are joint projects, investments in the countries. However, I do not consider the visit as a landmark. No decisive documents were signed, no loud statements were made. Perhaps there were behind-the-scenes agreements, but in general the tour was undertaken [as a reminder of] the influence, about large investments, and in between to threaten sanctions. To say that we want to cooperate, to which the Central Asian countries responded: ‘do we care?’,” concluded the economist.

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