Page 381 – The Times Of Central Asia

13 Feb 2025

Justice, Kazakhstan Local Politics, Kazakhstan Justice, Kazakhstan

Kazakhstan to Crack Down on “Gray” Smartphones

February 13, 2025
By Dmitry Pokidaev

Starting March 24, 2025, Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry will require telecom operators to verify the IMEI codes of smartphones and disconnect illegally purchased devices. According to ministry officials, the new regulation will apply only to phones purchased after March 24, 2025.

Under the new system, all smartphones in Kazakhstan will be categorized into three lists based on their IMEI codes:

White List: Legally purchased smartphones.
Gray List: Devices with suspicious IMEI codes, such as duplicates. Owners will have 30 days to confirm their device’s legitimacy.
Black List: Stolen or counterfeit phones, which will be blocked from network access.

“The goal of these new regulations is to combat the circulation of illegal devices,” said Dias Tolegenov, head of the Monitoring and Development of Wireless Projects Department at the ministry’s Telecommunications Committee.

Phones imported before March 24, 2025, will not be affected by the new rules. Buyers can already check a device’s IMEI code on a dedicated government portal to avoid purchasing illegal or counterfeit smartphones.

Azamat Seriktaev, another ministry representative, noted that blocking stolen phones through IMEI registration will help reduce mobile device theft. Meanwhile, the regulations are expected to curb the flow of illegally imported or fraudulently registered devices.

According to Mazhilis deputy Ekaterina Smyshlyaeva, 64% of mobile devices in Kazakhstan’s market are imported through illegal or “gray” schemes: “In 2024, the state lost nearly 100 billion tenge (approximately $196 million) in unpaid value-added tax (VAT) due to these illegal imports.”

She outlined several common fraudulent practices, including:

Customs Evasion: Phones are imported without proper customs clearance.
Mislabeling: High-end smartphones are registered as budget models to reduce tax liabilities.
IMEI Duplication: Fraudsters copy the IMEI numbers of legally imported devices and assign them to multiple smuggled phones – sometimes up to five or six per code.

“Often, people check a new phone’s IMEI and find out that, according to the system, it was manufactured 10 years ago,” Smyshlyaeva noted.

To further tighten control, Smyshlyaeva suggested:

Integrating IMEI registration with customs data to detect fraudulent imports.
Automatically cross-checking IMEI numbers with the Customs Register of Intellectual Property Objects.
Limiting personal imports to two smartphones per year per individual to prevent bulk smuggling.

Separately, Mazhilis deputy and former Education Minister Askhat Aimagambetov have proposed restrictions on children’s use of smartphones in schools. As The Times of Central Asia previously reported, Kyrgyzstan is considering similar measures in schools and universities.

13 Feb 2025

International Affairs, Home, Kazakhstan International Affairs, Kazakhstan, Kazakhstan Business & Economy, Features, Kazakhstan Featurees

U.S. Suspends Enforcement of Foreign Bribery Law: Should Kazakhstan Be Worried?

February 14, 2025
By Aliya Haidar

U.S. President Donald Trump has issued an executive order suspending enforcement of the Foreign Corrupt Practices Act (FCPA), effectively allowing U.S. companies to offer bribes to foreign officials and politicians. This decision is expected to prompt tighter scrutiny of potential corruption among officials in Kazakhstan.

On February 12, 2025, Trump signed an executive order pausing enforcement of the FCPA, a landmark anti-bribery law that has regulated U.S. business practices abroad since 1977.

The order directs the U.S. Department of Justice to suspend enforcement of the law, which previously criminalized bribery of foreign officials by American companies. Trump argued that the FCPA puts U.S. businesses at a competitive disadvantage internationally.

“The law looks good on paper, but in practice, it’s a disaster,” Trump stated, emphasizing that excessive regulatory oversight harms U.S. economic and national security interests.

Under the FCPA, companies and individuals could face up to 15 years in prison and fines of up to $250,000 for offering or coordinating bribes. The law was enforced in 24 cases in 2024 and 17 cases in 2023. Trump’s executive order tasks the attorney general with reviewing the law’s provisions.

U.S. companies have previously been linked to corruption scandals involving high-ranking Kazakhstani officials. The most infamous case, known as Kazakhgate, dates back to the late 1990s. American businessman James Giffen was accused of funneling tens of millions of dollars in bribes, along with luxury gifts, to secure access to Kazakhstan’s vast oil reserves. The investigation implicated former President Nursultan Nazarbayev and ex-Prime Minister Nurlan Balgimbayev, who allegedly received payments through offshore accounts in exchange for favorable investment conditions. However, Kazakhstani officials were never formally charged, and Giffen ultimately received a minor fine.

In December 2024, Mazhilis deputy Yermurat Bapi warned that a similar scandal — dubbed Kazakhgate-2 — could soon unfold.

“According to my information, a new grandiose scandal is brewing in the United States,” Bapi stated in an interview with Elmedia. “The U.S. Department of Justice is preparing a new criminal case against global kleptocrats who previously relied on American companies, insurers, and consultants. If they used these services, they will face prosecution.”

Speculation surrounding Kazakhgate-2 intensified after Nazarbayev’s December 2024 trip to Moscow to meet with Russian President Vladimir Putin. However, Trump’s decree has now cast doubt on whether the case will proceed.

Another major corruption-related dispute involving Kazakhstan is the Stati case. Since 2010, the Kazakhstani government has been embroiled in legal battles with Moldovan oligarchs Anatol and Gabriel Stati over the early termination of their subsoil use contracts. The dispute has led to litigation across multiple jurisdictions, including the U.S., U.K., and EU countries, with Kazakhstan’s National Fund assets being temporarily frozen. Some sources suggest that Timur Kulibayev, Nazarbayev’s son-in-law, played a role in the case.

Corruption concerns are not limited to Kazakhstan. In late January 2025, Russian Prime Minister Mikhail Mishustin publicly criticized Kyrgyz authorities for allegedly extorting Russian businesses operating in Kyrgyzstan.

“We urge the Kyrgyz leadership to cease administrative pressure on our companies and ensure the protection of Russian investors’ rights,” Mishustin said during a meeting with the then Kyrgyz First Deputy Prime Minister Adylbek Kasymaliev. He added that the Russian Foreign Ministry had submitted a diplomatic note detailing instances of extortion.

Despite Trump’s decree, Kazakhstani political analyst Marat Shibutov told The Times of Central Asia that he does not expect a surge in corruption involving American firms.

“Trump wants U.S. businesses to expand globally, but corruption is not America’s problem… it’s a problem for the countries involved,” Shibutov said. “Kazakhstan’s Anti-Corruption Service must recognize that if American companies are now permitted to offer bribes, the risk of abuse increases. Law enforcement will need to monitor these companies more closely than those from countries where bribery remains prohibited.”

Shibutov highlighted that Kazakhstani law still bans bribery, regardless of changes in U.S. policy. While Kazakhstan previously considered adopting a lobbying law to regulate corporate influence, the legislation was never passed, and Trump’s order is unlikely to revive discussions on the matter.

Additionally, Shibutov noted that few new American businesses enter the Kazakhstani market, making a significant increase in bribery unlikely. “The probability that this will lead to widespread corruption here is extremely low,” he concluded.

12 Feb 2025

Local Politics, Uzbekistan, Uzbekistan Home, Uzbekistan Local Politics

Uzbekistan Advances Draft Law on Religious Policy

February 12, 2025
By Sadokat Jalolova

Uzbekistan’s Legislative Chamber has approved the draft law On State Policy in the Religious Sphere and sent it to the Senate for further consideration. The law, formally titled On Ensuring Freedom of Conscience of Citizens in the Republic of Uzbekistan and Approving the Concept of State Policy in the Religious Sphere, was first discussed in the lower chamber on January 31 and was open for public consultation until February 10.

The draft law consists of seven chapters and 41 articles, outlining the goals of state policy in religious affairs and detailing 10 key tasks to support these objectives.

The proposed legislation focuses on:

Ensuring freedom and equality for all citizens, regardless of gender, nationality, language, or religion, while preventing discrimination
Strengthening national unity and respecting traditions while ensuring equal opportunities for all communities
Establishing equal legal conditions for citizens’ participation in social life
Protecting the right to freedom of conscience without forced religious indoctrination
Maintaining secularism in state policies and governance
Ensuring public institutions and law enforcement operate based on secular principles
Promoting religious tolerance and civic engagement
Preventing civil servants from favoring or discriminating against any religion in their professional duties
Advancing science, culture, and the arts while benefiting from global achievements
Combating radicalization, extremism, and terrorism to protect public safety and social order

During the public consultation period, citizens submitted more than 480 comments, suggestions, and recommendations. Lawmakers also held meetings with religious representatives and journalists to gather feedback. On February 6, officials met with representatives from 16 religious groups, all of whom expressed support for the proposed law, emphasizing that it would help maintain religious harmony and stability in Uzbekistan.

Authorities stated that most citizens backed the initiative, recognizing its timely development and potential benefits for the country. A working group and the responsible committee reviewed all proposals and incorporated necessary adjustments before finalizing the draft.

12 Feb 2025

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

Kasymaliyev: Kyrgyzstan to Focus on Hydropower and Economic Growth

February 12, 2025
By Sergey Kwan

As a small, landlocked country in the heart of Central Asia, Kyrgyzstan is prioritizing the expansion of its hydropower potential, enhancing transit opportunities, and digitalizing public administration, Chairman of the Cabinet of Ministers Adylbek Kasymaliyev said at the World Governments Summit in Dubai, United Arab Emirates, on February 11.

According to Kasymaliyev, Kyrgyzstan’s position as an “upstream country” in the region largely shapes its water policy. The country’s total hydropower potential is estimated to exceed 140 billion kilowatt-hours per year. While Kyrgyzstan’s abundant water resources meet domestic needs, they also supply irrigation water to large farmland areas in downstream Central Asian countries such as Kazakhstan and Uzbekistan.

Hydropower and Regional Energy Cooperation

Kyrgyzstan’s flagship project in the water and energy sector is the construction of the Kambarata-1 hydroelectric power plant on the Naryn River, in partnership with Kazakhstan and Uzbekistan. Once completed, the plant is expected to generate 5.6 billion kilowatt-hours of electricity annually, meeting domestic demand while also enabling the export of surplus clean energy to neighboring countries.

Transport and Trade: China-Kyrgyzstan-Uzbekistan Railway

Another major infrastructure initiative highlighted by Kasymaliyev is the China-Kyrgyzstan-Uzbekistan railway, which broke ground in December 2024. More than just a transport corridor, the railway is seen as a strategic link connecting East and West. The route will facilitate the movement of goods from China to Kyrgyzstan and onward to Central Asia, the Middle East – including Turkey – and the European Union.

“The project will strengthen interregional ties, help diversify transport routes, and enhance the region’s competitiveness as an international transport and transit hub, benefiting all Central Asian countries,” Kasymaliyev said.

Digital Transformation and AI in Governance

Kyrgyzstan’s third priority is digital transformation, aimed at reducing bureaucracy and lowering the cost of public services for citizens and businesses.

“We are on the threshold of a new era of public administration, where digital transformation, artificial intelligence, and big data are not just tools but the foundation for making balanced and strategically sound decisions,” Kasymaliyev stated.

He emphasized that AI offers unprecedented opportunities to improve governance efficiency. “Today, decisions worldwide are based on objective analysis of vast amounts of data. If we can assess the impact of fiscal reforms, energy tariff changes, or investment programs in advance, we can minimize risks, enhance economic resilience, and make truly well-informed decisions,” he said, adding that Kyrgyzstan is eager to adopt best practices from international partners.

12 Feb 2025

International Affairs, Defense, Tajikistan Justice, Home, Tajikistan International Affairs, Tajikistan Business Economy, Tajikistan, Tajikistan Features, Tajikistan Home, Features

U.S. Urges Tajikistan to Enforce Sanctions on Russian Firms Amid Ongoing Compliance Review

February 12, 2025
By Vagit Ismailov

The Tajik government has received an official letter from the United States requesting compliance with sanctions against several Russian companies operating in the country, Chairman of the State Committee on Investment and State Property Management Sulton Rakhimzoda announced at a press conference on February 11.

According to Rakhimzoda, the U.S. has requested clarification on what measures Tajik authorities plan to take regarding the sanctions. “This is a sensitive topic, and it is currently under consideration,” he stated.

He added that sanctions against Russian companies are not a new phenomenon and that businesses affected by the restrictions should already have mechanisms in place to adapt. “It is clear that sanctions impact companies to varying degrees. However, as far as I know, they have already developed strategies to operate under these conditions. These issues are also being discussed in negotiations with the government,” Rakhimzoda said.

He noted that the Investment Committee does not oversee this sector directly, but that the relevant government agencies are handling the matter.

Following the start of the conflict in Ukraine, the U.S. and the European Union imposed strict sanctions on several Russian enterprises. In January 2025, the U.S. Department of the Treasury sanctioned Gazpromneft Tajikistan along with its parent company, Gazprom Neft.

Tajik authorities have stated that the sanctions will not affect oil product imports into the country. However, experts warn that the restrictions could eventually impact other companies cooperating with Gazpromneft Tajikistan.

12 Feb 2025

Central Asia, Uzbekistan, Uzbekistan Business & Economy

Uzbekistan Seeks International Collaboration for Nuclear Energy Project

February 27, 2025
By Sadokat Jalolova

President Shavkat Mirziyoyev held a meeting on February 10 to review progress in Uzbekistan’s nuclear energy sector and outline future goals. Officials reported that 25 gigawatts of renewable energy capacity will be added over the next five years, generating 64 billion kilowatt-hours of green energy annually. By 2030, the country aims to increase the share of renewable energy to more than 50% of total electricity production.

Azim Ahmadkhodjayev, director of Uzatom, discussed the sector’s prospects in an interview with Uzbekiston 24 TV following the meeting. He noted that by 2040, the share of nuclear energy in global electricity production could rise from 9% to 25%. He also recalled that Uzbekistan signed an agreement last year with Rosatom to build a 330 MW small-scale nuclear power plant in Jizzakh.

“Our president emphasized that this project should have an international character, with the involvement of various international organizations,” he said. In addition to Russian technologies, the project will integrate Chinese non-nuclear technologies and European software and hardware.

“To implement this project, we will create an international consortium using the most advanced technologies,” Ahmadkhodjayev added.

To reduce water consumption, the project may incorporate dry coolers from Hungarian or Chinese manufacturers.

Uzatom has also developed a cooperation program with the International Atomic Energy Agency (IAEA) to train specialists and ensure safety in nuclear energy projects. Ahmadkhodjayev noted that the president has instructed officials to explore alternative approaches for similar projects in the future.