Page 375 – The Times Of Central Asia

19 Jun 2025

Home, Uzbekistan, Uzbekistan Features, Business & Economy, Uzbekistan Business & Economy, Features

Uzbekistan Joins BRICS Bank, Strengthening Global Ties

June 20, 2025
By Stephen M. Bland

Uzbekistan’s bid to join the New Development Bank (NDB), commonly known as the BRICS Bank, has been officially approved, marking a notable step for the country as it seeks to enhance its engagement within the global financial and economic framework. Established by Brazil, Russia, India, China, and South Africa, the NDB aims to finance sustainable development projects and offer alternatives to traditional Western-led financial institutions such as the IMF and the World Bank.

Membership was also approved for Colombia, with applications from Ethiopia and Indonesia currently under review.

A New Opportunity for Uzbekistan

Uzbekistan’s membership in the BRICS Bank provides a potential avenue to strengthening economic ties with major emerging markets. The country’s strategic position in Central Asia and its natural resources present opportunities for investments in infrastructure, renewable energy, and agriculture, aligning with the bank’s priorities on sustainable development.

Uzbekistan’s recent economic reforms aimed at liberalization and improved governance make the BRICS Bank a practical partner for securing diversified funding sources for large-scale initiatives.

Role of the BRICS Bank and Implications

The NDB focuses on funding projects in emerging economies to promote growth while reducing dependence on traditional Western lenders. Since its inception in 2014, the bank has supported initiatives in renewable energy, infrastructure, and technology. The inclusion of Uzbekistan indicates the NDB’s interest in expanding its reach beyond its founding members.

Uzbekistan’s entry into the BRICS Bank takes place in the context of shifts in the global economic landscape, as countries seek new financial partnerships. For Uzbekistan, this step aligns with its foreign policy approach of maintaining balanced ties with global powers while engaging with the West, the Middle East, and neighboring countries.

China, a driving force within the NDB and the Belt and Road Initiative (BRI), sees Uzbekistan’s strategic location as beneficial for advancing regional trade and connectivity, while Russia could view the membership as a positive development for maintaining close regional ties while navigating geopolitical challenges.

Shared Priorities

For the NDB, Uzbekistan offers a gateway to further investments in Central Asia, aligning with its mission to support emerging markets.

For Uzbekistan, meanwhile, membership represents a significant development in its integration into international financial networks, potentially opening up opportunities for sustainable development projects that could contribute to the country’s economic growth and strengthen its global standing.

The BRICS summit in 2025 will be held in Rio de Janeiro on July 6 and 7.

19 Jun 2025

Business & Economy, Uzbekistan, Uzbekistan Business & Economy

Moody’s Upgrades Outlook on Uzbekistan’s Credit Rating to Positive

June 19, 2025
By Sadokat Jalolova

Moody’s Ratings has revised Uzbekistan’s credit outlook from stable to positive, while affirming its long-term issuer rating at Ba3, a level that denotes speculative or non-investment grade status. The improved outlook reflects increased confidence in the country’s ongoing structural reforms and governance improvements.

According to Moody’s, Uzbekistan’s efforts to strengthen public sector governance and liberalize key sectors such as energy could enhance policy effectiveness and lay the foundation for sustainable economic growth. Recent steps include restructuring the supervisory boards of all state-owned enterprises (SOEs) and banks, with an increased presence of independent members. The government is also advancing legislation on conflict of interest, asset declaration, and whistleblower protections, measures that signal a broader commitment to transparency.

The energy sector reforms highlight the government’s readiness to undertake challenging but necessary changes. Tariffs have risen sharply as part of a phased plan to achieve full cost recovery by 2027-2028. While inflationary pressures persist, the government has sought to mitigate their impact through targeted increases in public sector wages and pensions and by scaling back subsidies.

Privatization remains central to Uzbekistan’s reform strategy. The government plans to reduce the state’s share in the banking sector from 65% to 46%, following the successful privatization of Ipoteka Bank. The recently established National Investment Fund, managed by Franklin Templeton, will oversee holdings in 18 major enterprises. Initial public offerings are planned for several large firms, including Navoi, Uzbekistan’s largest taxpayer.

Moody’s forecasts GDP growth of 5.8% in 2025 and 5.7% in 2026, supported by increased investment in energy and transport infrastructure under the Uzbekistan 2030 Strategy and rising levels of foreign direct investment. The fiscal deficit declined to 3.3% of GDP in 2024 and is projected to remain below 3% in the coming years.

Although Uzbekistan’s public debt remains moderate, liabilities linked to SOE borrowing and public-private partnership (PPP) projects are increasing. To manage these risks, the government has imposed caps on new PPPs and now requires official approval for external borrowing by state-owned entities.

Moody’s also pointed to persistent institutional weaknesses, low per capita income, and governance concerns, as well as regional geopolitical risks. However, the agency noted that if current reform momentum continues and economic indicators improve further, an upgrade to the country’s credit rating is possible.

Uzbekistan’s credit profile is bolstered by its diversified economy, strong growth outlook, and prudent fiscal management. With continued reforms and growing investor confidence, the country appears increasingly well-positioned for long-term economic stability.

19 Jun 2025

Home, Environment, Kazakhstan Environment, Kazakhstan, Features, Kazakhstan Featurees

Saiga Conservation Clash: Kazakhstan Aids China, Russia Struggles

June 19, 2025
By Vagit Ismailov

Kazakhstan will transfer 1,500 saigas to China to help restore the species’ population in the western regions of the People’s Republic of China. The announcement came during a bilateral meeting between President Kassym-Jomart Tokayev and Chinese President Xi Jinping. President Xi expressed gratitude for the initiative, reaffirming China’s commitment to restoring the population of this antelope species.

Returning to Their Historical Habitat

On June 18, Minister of Ecology Yerlan Nysanbayev elaborated on the decision, explaining that the move is part of an effort to support the long-term sustainability of the species by reintroducing it to its historical range.

“Kazakhstan is currently home to 99% of the world’s saiga population. Since 2003, when only 2,500 individuals remained, we have grown the population to more than five million,” Nysanbayev said.

The minister emphasized that the transfer will proceed only after a joint scientific assessment by Kazakh and Chinese experts, who will evaluate potential resettlement zones, available food sources, and optimal transport methods.

When asked whether the move aimed to reduce saiga numbers in response to farmers’ complaints, Nysanbayev dismissed the idea.

“Can 1,500 animals really affect the overall population or solve issues like agricultural damage? This is absolutely irrelevant,” he stated.

Nysanbayev also underscored the importance of international cooperation in biodiversity conservation.

“The saiga population has historically extended beyond Kazakhstan, into Mongolia, China, Russia, and Turkmenistan,” he added.

Ongoing Tensions Between Wildlife and Agriculture

Despite conservation successes, conflicts between saigas and agricultural interests remain a serious concern.

In 2022, farmers in the West Kazakhstan and Akmola regions reported significant crop losses and property damage caused by saigas, with some even calling for a state of emergency to be declared in the West Kazakhstan Region.

In response to growing tensions, the government included saigas in the list of species subject to regulation in late 2023. Authorities initially planned to capture up to 200,000 animals, but logistical challenges led to the approval of a limited culling. This shift enabled meat-processing plants to begin producing canned saiga meat.

However, in February 2024, the Ministry of Ecology suspended population control measures following President Tokayev’s public call to protect this iconic symbol of the Kazakh steppe.

Nevertheless, in March 2025, during a meeting of the National Kurultai, President Tokayev acknowledged the strain on agriculture and raised concerns about potential epizootic risks and broader ecological pressures.

“Agriculture is suffering. There are risks of a worsening epizootic situation. Overall, the burden on the ecosystem has increased,” Tokayev said.

Minister Nysanbayev later confirmed that discussions about potential future regulation are ongoing. “It will take time for science to thoroughly study the situation again,” he said.

Options under consideration include culling through corrals or selective shooting, with final decisions to be guided by scientific recommendations.

Saiga Migration Threatens Saratov Farmers’ Livelihoods

In Russia, meanwhile, farmers and agricultural leaders in the Novouzensky district of the Saratov region have appealed to President Putin for help, citing a severe threat to their livelihoods from saigas migrating from the Kazakh steppes. They claim the influx of these animals has made farming, livestock raising, and forage harvesting almost impossible, putting their enterprises at risk. Novaya Gazeta reports that while only about 100 saigas typically reside in the region, this spring saw an unprecedented migration of around a million saigas, according to the local authorities.

19 Jun 2025

Environment, Uzbekistan Environment, Uzbekistan

UNDP and Japan Launch Initiative in Uzbekistan to Reduce Emissions and Boost Energy Efficiency

June 19, 2025
By Sadokat Jalolova

Uzbekistan has launched a new international initiative aimed at cutting greenhouse gas emissions and improving energy efficiency in public infrastructure. Spearheaded by the United Nations Development Programme (UNDP) in partnership with the Government of Japan and Uzbekistan’s Ministry of Economy and Finance, the project targets key sectors including schools, hospitals, kindergartens, and public transportation.z

According to UNDP Uzbekistan, the initiative seeks to bolster the country’s resilience to energy-related challenges driven by increasingly extreme weather conditions. Many public buildings in Uzbekistan suffer from outdated infrastructure and significant energy loss, resulting in elevated emissions and burdensome utility expenses. The project will focus on upgrading facilities with thermal insulation, energy-efficient windows, heat pumps, and solar panels to address these inefficiencies.

A central objective is to enhance indoor comfort throughout the year, particularly in regions experiencing extreme seasonal temperatures. The installation of modern heating and cooling systems is expected to make classrooms and hospital wards more sustainable and livable. The initiative will also extend to green mobility, supporting the introduction of electric buses, the development of charging infrastructure, and the deployment of air pollution monitoring systems along urban transport routes.

A distinctive feature of the program is its use of the Joint Credit Mechanism (JCM), which provides Uzbekistan with access to advanced Japanese technology and investment. This mechanism facilitates international collaboration on carbon reduction and supports the country’s transition toward cleaner technologies.

The initiative aligns with Uzbekistan’s climate commitments under the Paris Agreement. The government has pledged to cut greenhouse gas emissions by 35 percent and raise the share of clean energy to 25 percent by 2030. According to UNDP representatives and officials from the National Agency for Energy Efficiency, the project is not only designed to meet environmental targets but also to improve public health and alleviate the financial strain caused by inefficient energy systems.

This latest endeavor builds on previous sustainable development projects in Uzbekistan. Notably, a European Union and UNDP-backed program has supported the country’s fish farming industry by providing eco-friendly equipment to enhance water quality and reduce energy consumption.

19 Jun 2025

Kazakhstan, Home, Life & Culture, Kazakhstan Life & Culture

Kazakhstan Launches 2025 Year of China Tourism

June 19, 2025
By Sergey Kwan

On June 16, Astana hosted the official launch of the Year of China Tourism in Kazakhstan. The opening ceremony was attended by Kazakh Minister of Tourism and Sports Yerbol Myrzabosynov and Chinese Minister of Culture and Tourism Sun Yeli, underscoring the growing cultural and economic ties between the two countries.

Minister Myrzabosynov emphasized that tourism has become a vital bridge in strengthening people-to-people connections between Kazakhstan and China. The 2025 initiative follows the success of the Year of Kazakhstan Tourism in China in 2024, declared by Presidents Kassym-Jomart Tokayev and Xi Jinping as part of ongoing bilateral cooperation.

A centerpiece of this year’s initiative is the implementation of the Welcome Chinese program, which aims to tailor Kazakhstan’s hospitality and tourism services to meet the needs of Chinese visitors. The program includes efforts to improve language accessibility, offer Chinese-style amenities in hotels, and develop guided tours designed specifically for Chinese tourists.

According to the Kazakh Ministry of Tourism and Sports, the Year of Kazakhstan Tourism in China yielded significant results. In 2024, Kazakhstan welcomed 655,000 tourists from China, a 78% increase compared to 367,000 in 2023. The surge in travel was further supported by the mutual visa-free regime introduced in November 2023. Under this agreement, citizens of both countries can travel visa-free for up to 30 days per visit, with a maximum of 90 days within a 180-day period. The visa exemption applies to tourism, medical visits, business travel, and transit.

Officials expect that the Year of China Tourism in Kazakhstan will not only boost inbound travel from China but also deepen economic, cultural, and diplomatic cooperation between the two nations.

19 Jun 2025

Home, Uzbekistan, Turkmenistan, Tajikistan, Tajikistan Business Economy, Uzbekistan Features, Local Politics, Kyrgyzstan, Turkmenistan Business & Economy, Uzbekistan Business & Economy, Kazakhstan, Tajikistan Features, Kazakhstan Business & Economy, Kyrgyzstan Business & Economy, Turkmenistan Features, Features, Kazakhstan Featurees, Kyrgyzstan Features

From Reform to Roadblocks: The Uneven Evolution of Motor Insurance in Central Asia

June 19, 2025
By Vagit Ismailov

Motor insurance markets across Central Asia exhibit contrasting levels of development, from Kazakhstan’s expanding, digitized sector to Kyrgyzstan and Turkmenistan, where the system remains largely ineffective. Beyond compensating for damages, motor insurance is increasingly viewed as a tool for strengthening financial markets, promoting road safety, and easing the fiscal burden during emergencies.

Kazakhstan

Kazakhstan leads the region in insurance market volume. According to the Agency for Regulation and Development of the Financial Market (ARDFM), compulsory third-party motor insurance (OSGPO) premiums totaled more than KZT 106 billion ($205 million) in 2023, an 18% increase from the previous year.

Since 2019, Kazakhstan has operated an electronic OSGPO registration system, streamlining policy purchases and reducing fraud. Integration with the Ministry of Internal Affairs databases now enables more effective monitoring of compliance.

In April 2025, the country introduced a revised bonus-malus system with 18 risk classes, ranging from M2 (highest risk, coefficient 3.5) to Class 13 (lowest risk, coefficient 0.5). New drivers are assigned Class A with a coefficient of 1.8. The updated system accounts for accident history, traffic violations, and the duration of accident-free driving.

Despite this progress, voluntary comprehensive insurance (CASCO) remains underutilized; fewer than 5% of car owners hold such policies. Barriers include high costs, limited public understanding, and the persistent mistrust of insurers. Nevertheless, demand for CASCO is growing amid rising accident rates and vehicle costs. Once considered a luxury for owners of new cars, CASCO is increasingly popular among middle-income drivers, particularly those buying vehicles on credit or lease.

According to Ranking.kz, CASCO premiums reached KZT 13.4 billion ($26 million) in January-February 2025, slightly below the same period in 2024 ($29 million) but still well above pre-pandemic levels. CASCO now covers a broad range of risks, including accidents, theft, vandalism, fire, and natural disasters. For many Kazakhstani drivers, comprehensive coverage is becoming a central part of their financial strategy rather than a discretionary purchase.

Kyrgyzstan

In Kyrgyzstan, however, the motor insurance system is largely dormant. Although a compulsory insurance law was passed in 2015, only 8-10% of the vehicle fleet is insured. The absence of a unified digital platform, weak interagency coordination, and low public confidence hinder progress.

The authorities intend to relaunch reforms in 2025, focusing on digital integration between the Ministry of Internal Affairs and the National Bank. Beginning July 1, 2025, fines will be imposed on uninsured drivers: 3,000 KGS (around $35) for individuals and 13,000 KGS (about $150) for foreign nationals and legal entities. The new penalties are expected to promote compliance and foster a stronger insurance culture.

Uzbekistan

Uzbekistan, in contrast, has made substantial strides since 2019. Restrictions on foreign insurers have been lifted, and the Insurance Market Development Agency has spearheaded a digital transformation of the sector. In 2023, motor insurance premiums surpassed 250 billion som, largely from OSGPO policies.

The government has expanded policy coverage and supports online issuance to increase accessibility and competition. As of September 1, 2024, all compulsory motor insurance policies will be digitized and issued through a centralized system. Reforms will introduce risk-adjusted pricing based on driver behavior, accident severity, and violations. The insurance payout ceiling has also been raised to 40 million som, aligning Uzbekistan’s approach more closely with that of Kazakhstan.

Tajikistan

Tajikistan’s compulsory motor insurance system, introduced in 2021, remains in its infancy. Coverage is still below 10%, hindered by low awareness, underdeveloped infrastructure, and weak regulatory oversight.

The National Bank of Tajikistan is working with international partners, including the IMF and IFC, to craft a roadmap aimed at expanding digital access and boosting financial inclusion through improved insurance services.

Turkmenistan

Turkmenistan presents the region’s most restrictive market. All insurance is provided through the state-owned Türkmenistanyn Döwlet Ätiýaçlandyryş Şereketi, with virtually no private or foreign sector participation.

Although compulsory motor insurance has been mandated since 2009, public data on market penetration is unavailable. External estimates suggest coverage is under 20%. Voluntary policies are rare, and low levels of digitization further inhibit development.

Overall challenges and prospects

Across the region, countries face a set of shared obstacles: low public trust, inadequate enforcement of compulsory coverage, insufficient digital infrastructure, and a limited insurance culture. Yet there are signs of positive momentum. Governments are investing in digital platforms, integrating insurance systems with internal affairs databases, and encouraging online and mobile policy access.

Experts anticipate that over the next three to five years, Central Asia will witness meaningful growth in motor insurance, driven by policy reform, technology adoption, and improving public awareness.