Page 385 – The Times Of Central Asia

14 Feb 2025

Central Asia, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Kazakh Machine Builders Face Payment Hurdles in Russia Trade

February 14, 2025
By Dmitry Pokidaev

Azat Peruashev, head of the Ak Zhol party’s parliamentary faction, which represents Kazakhstani business interests, has appealed to Prime Minister Olzhas Bektenov and National Bank Chairman Timur Suleimenov to address payment difficulties faced by machine-building enterprises exporting to Russia.

According to the Majilis deputy, these challenges stem from within Kazakhstan itself. Peruashev explained that machine-building enterprises have approached his party, reporting that Kazakhstani banks are refusing them credit. Additionally, second-tier banks (BVUs) are declining to process payments for companies engaged in business with Russian partners.

“These actions by financial institutions are driven by concerns that exported products could be added to U.S. and EU sanctions lists, which, in turn, could expose the banks to secondary sanctions,” Peruashev said.

As a result, commercial banks in Kazakhstan have begun demanding that local factories provide guarantees that they will not export products to Russia – under threat of having their credit lines revoked. This is happening despite assurances from David O’Sullivan, the European Union’s sanctions envoy, who recently visited Kazakhstan. O’Sullivan stated that the European Commission would not impose sanctions on goods manufactured in Kazakhstan and exported to Russia.

“The EU’s only concern is to prevent the re-export of sanctioned European products through Kazakhstan,” Peruashev said. “However, representatives of Kazakhstan’s largest banks find these assurances unconvincing. In their view, the decisive factor is not whether a product is re-exported or locally manufactured, but whether it appears on a sanctions list. This creates the risk of secondary sanctions, not necessarily from the EU, but from the U.S., including the potential disconnection from the SWIFT international banking system.”

According to Ak Zhol, Kazakhstani exports of machine-building products and components to Russia fell by 15% last year. The banks’ refusal to process payments is not based on any official government restrictions.

Last summer, seven Kazakh companies faced U.S. secondary sanctions for cooperating with Russian partners. In October, the list expanded to include Kazstanex, a company involved in supplying machine tools and components. As The Times of Central Asia previously reported, during his visit to Astana in January, David O’Sullivan stated that the EU had sanctioned two Kazakh companies so far but did not rule out further additions to the list.

14 Feb 2025

Justice, Tajikistan Justice, Tajikistan Local Politics, Tajikistan

Tajikistan’s Supreme Court Breaks Silence on Alleged Coup Case

February 14, 2025
By Vagit Ismailov

For the first time, Tajikistan’s Supreme Court has publicly commented on a high-profile case involving leading politicians accused of high treason and attempting to seize power by force.

Shavkat Lutfullozoda, first deputy chairman of the Supreme Court, told a press conference on February 13 that “the case materials contain circumstances indicating that their actions were directly aimed at high treason and the violent seizure of power.” However, he declined to disclose further details, citing the closed nature of the trial.

The proceedings were held behind closed doors, but Lutfullozoda stated that they took place “with the participation of the judge and people’s assessors.”

The following individuals were convicted and sentenced on February 5, 2025, at the Dushanbe Detention Center. The verdicts take effect on February 15:

Hamrohon Zarifi, former foreign minister: 27 years in prison and a 10,000 somoni fine on five counts, including high treason and the forcible seizure of power.
Saidjafar Usmonzoda, former head of the Democratic Party: 27 years for high treason and inciting discord.
Jamshed Boboyev, retired GKNB colonel: 21 years for high treason and forcible seizure of power.
Akhmadshokh Komilzoda, former deputy chairman of the Democratic Party: 19 years for attempted violent seizure of power.
Akbarshokh Iskandarov, former head of the Supreme Soviet: 18 years on similar charges.
Shokirjon Khakimov, lawyer and first deputy chairman of the Social Democratic Party: 18 years for inciting discord and high treason.
Nurahmad Ganizoda, retired GKNB colonel: 18 years for violent seizure of power.
Abdulfayiz Atoi, former head of the Foreign Ministry’s press service: 17 years for forcible seizure of power and document forgery.
Rukhshona Khakimova, journalist: 8 years for complicity in state treason.

Mass arrests began in June 2024, following the detention of Saidjafar Usmonzoda. Authorities soon arrested Zarifi, Iskandarov, Komilzoda, Khakimov, Atoi, Ganizoda, and Boboyev. Prosecutor General Yusuf Rakhmon stated that most of the detainees were linked to Usmonzoda’s case.

Journalist Rukhshona Khakimova initially remained at large due to having a young child. However, she was arrested after the verdict was handed down.

The first court hearing took place on November 14, 2024, and the trial lasted more than six months, held behind closed doors at a pre-trial detention center.

13 Feb 2025

Environment, Features

Environmental Advocate Vadim Ni Warns of Impending Disaster for Caspian Sea and Calls for Global Action to Prevent Ecological Collapse

February 14, 2025
By Times of Central Asia

Vadim Ni is an environmental law attorney and climate expert. He has served on compliance committees for the Aarhus Convention and the Protocol of the Eurasian Economic Commission on Water and Health. Additionally, he was part of the Republic of Kazakhstan’s delegation in climate change negotiations.

He is also the founder of the Save the Caspian Sea movement, which seeks to raise public awareness of the environmental issues facing the Caspian Sea and promote sustainable solutions for its preservation.

TCA: Could you tell us why the Caspian Sea is so important and why it requires our urgent attention?

Vadim: The Caspian Sea is the world’s largest enclosed body of water, spanning five countries, including Azerbaijan and Kazakhstan. Its significance extends far beyond geographical borders. It is home to unique species, including the endangered Caspian seal and several sturgeon species, which play a crucial role in the ecosystem and local economy.

Unfortunately, the sea is on the brink of an environmental disaster due to climate change, pollution, and industrial exploitation. If action is not taken now, the world will face global consequences, from biodiversity loss to the destabilization of regional economies. Without immediate and decisive measures, this will lead to catastrophe not only in the region but globally.

TCA: What inspired you to create Save the Caspian Sea?

Vadim: I have been involved in environmental protection for a long time and have seen how fragmented efforts to save the Caspian have failed to yield significant results. The mass deaths of thousands of Caspian seals and the rapid shallowing of the coastline were alarming signals for me. It became clear that without a unified and coordinated initiative, we simply wouldn’t be able to save the sea in time. This led to the creation of Save the Caspian Sea, a movement that brings together the efforts of governments, businesses, environmentalists, and ordinary people. Its goal is to mobilize all possible resources to protect this vital body of water before it is too late.

TCA: What are the main threats currently facing the Caspian Sea?

Vadim: There are three major issues. The first is shrinking water levels. Due to climate change and the mismanagement of water resources, the sea level is rapidly declining. In Kazakhstan, some areas have already seen the shoreline retreat by dozens of kilometers. This is destroying ecosystems and causing severe damage to fisheries and tourism.

The second problem is pollution. Industrial waste and heavy metals, mainly from oil extraction and processing, are being discharged into the water. This not only worsens water quality but also devastates marine flora and fauna, putting many species at risk of extinction. Additionally, large oil fields release toxic substances into the air, poisoning the environment. In the village of Berezovka, 25 toxic compounds have been detected in the air, causing residents to suffer from migraines, dizziness, hair loss, and deteriorating vision.

The third threat is ecosystem destruction. The Caspian seal population has plummeted from one million in the early 20th century to just 70,000 today. Pollution weakens the animals’ immune systems, making them more vulnerable to disease. Additionally, in 2022, the International Union for Conservation of Nature (IUCN) classified four out of five Caspian sturgeon species as critically endangered.

TCA: What are the goals of Save the Caspian Sea?

Vadim: We focus on three key areas. First, we demand accountability from corporations. Companies operating in the region must adhere to strict environmental standards. Their profits should not come at the expense of the environment and people’s health.

Second, we engage the global community. Save the Caspian Sea actively collaborates with governments, international organizations, and NGOs. We run awareness campaigns and events to bring the Caspian Sea crisis to the global stage.

Third, we work on ecosystem restoration. It’s not enough to just reduce pollution. We need to invest in conservation and biodiversity protection. Our goal is not just to stop the destruction but to restore the sea to a stable state.

TCA: How does Save the Caspian Sea engage local communities?

Vadim: Community involvement is at the core of our strategy. We launched a global awareness campaign with the hashtag #SaveTheCaspianSea, which helps draw attention to the issue. People can share their stories, talk about the situation in their regions, and demand change.

We also organize educational seminars and develop programs that provide local residents with the knowledge and tools to protect the environment. Our website offers resources for anyone who wants to get involved, from signing petitions to supporting ecosystem restoration initiatives.

TCA: What roles do governments and businesses play in this process?

Vadim: Their role is critically important. Governments must tighten environmental regulations, invest in sustainable technologies, and collaborate internationally, as the Caspian Sea is a shared resource.

Corporations, especially those in the oil and gas sector, must operate transparently, adhere to strict environmental standards, and transition to safer technologies. Save the Caspian Sea also advocates for a shift toward renewable energy sources to reduce the region’s dependence on oil and gas, the primary drivers of environmental damage.

TCA: What message would you like to leave for our readers?

Vadim: The fate of the Caspian Sea depends on each of us. This is not just a regional crisis, it is a global issue, exacerbated by the activities of international corporations.

What happens here will impact ecosystems and economies worldwide. Everyone can make a difference by supporting environmental initiatives, spreading awareness, and demanding decisive action from governments and businesses.

Together, we can change the situation and preserve the Caspian Sea as a source of life for future generations.

13 Feb 2025

Central Asia, Local Politics, Kyrgyzstan, Kyrgyzstan Local Politics

Kyrgyzstan Proposes Salary Cuts for Underperforming Officials

February 13, 2025
By Vagit Ismailov

The Kyrgyz presidential administration is developing new mechanisms to penalize officials for repeated disciplinary offenses, including salary reductions and forfeiture of bonuses. The initiative, aimed at improving accountability in the civil service, was announced by Azamat Osmonov, Head of the Department of Control of Execution of Decisions of the President and Cabinet of Ministers.

According to Osmonov, 56 civil servants were disciplined in 2024 for misconduct. Among them:

7 officials, including akims (local governors), their deputies, and senior government officials, were dismissed.
27 officials, including one minister, received reprimands.
22 officials faced additional disciplinary actions.

The presidential administration and the Cabinet of Ministers are set to convene a board meeting to review the performance of state agency heads for 2024.

“Unfortunately, current regulations allow the same official to be reprimanded repeatedly without serious consequences. We intend to change this practice: if an official has already been disciplined, a repeated offense should lead to dismissal,” Osmonov stated.

In addition to stricter dismissal policies, the government is considering financial penalties as an alternative punishment.

“We are introducing the monetization of disciplinary measures: after receiving a reprimand, an official will be ineligible for bonuses, and their salary will be reduced. This should create additional motivation to comply with discipline,” Osmonov explained.

The proposed mechanism is currently under development and will be integrated into the Code of Administrative Violations.

Kyrgyzstan already enforces financial penalties for civil servants who fail to meet deadlines for addressing citizens’ appeals. The current fine stands at 100 calculation indices (a fixed monetary unit used for penalties and state fees).

“We will further refine this approach by drafting new legal regulations to enhance officials’ accountability and improve the quality of work within state institutions,” Osmonov added.

13 Feb 2025

Business & Economy, Tajikistan International Affairs, Tajikistan, Tajikistan Business Economy

Tajikistan Nears Full Transition to Ruble in Trade with Russia, As Bilateral Trade Surges

October 9, 2025
By Vagit Ismailov

Tajikistan has nearly completed its transition to ruble payments in trade with Russia, with over 90% of transactions now conducted in Russian currency, according to Firdavs Tolibzoda, head of the National Bank of Tajikistan. This marks a significant shift from 2021, when trade between the two countries was evenly split between the ruble and the U.S. dollar.

Tolibzoda highlighted that Tajik banks are working to minimize financial risks by primarily cooperating with Russian banks that are not subject to international sanctions.

The shift away from the dollar in Tajik-Russian trade began after Western sanctions were imposed on Russia following its invasion of Ukraine. Over the past three years, Tajik exchange offices have no longer faced periodic shortages of U.S. currency, a problem that was common before the transition to ruble payments.

In 2024, bilateral trade between Tajikistan and Russia is expected to reach $1.98 billion, reflecting a 15.6% increase from 2023. However, trade remains highly imbalanced. Russian imports account for 95.2% of total trade, with Tajikistan purchasing oil products and essential goods, while Tajikistan’s exports to Russia amounted to just $96 million, primarily consisting of vegetables, fruits, and mineral products such as ores and concentrates.

Despite Russia’s dominant role as Tajikistan’s largest trading partner, China is rapidly catching up. In 2024, Russia accounted for 22.1% of Tajikistan’s total foreign trade turnover, while China’s share reached 21.8%.

Trade with China grew by 30.1% over the past year, almost double the growth rate of trade with Russia, indicating a shifting dynamic in Tajikistan’s economic partnerships.

13 Feb 2025

Central Asia, Home, Kazakhstan Local Politics, Local Politics, Kazakhstan, Features, Kazakhstan Featurees, Kazakhstan Home

Kazakhstan Proposes Foreign Agents Law for NGOs and Media

February 25, 2025
By Dmitry Pokidaev

Members of Kazakhstan’s parliament have proposed adopting a law on foreign agents, requiring media outlets and non-governmental organizations (NGOs) that receive foreign funding to disclose their financial sources. The initiative, put forward by deputies from the People’s Party of Kazakhstan (PPK), has sparked debate within the country’s political and expert circles.

Push for Greater Transparency

Irina Smirnova, a deputy from the PPK, a party that won 10 of the 98 seats in the 2023 parliamentary elections, publicly announced the proposal. The PPK is currently the third-largest political force in Kazakhstan, following AMANAT and Ak Zhol.

Citing open-source data, Smirnova claimed that approximately 200 NGOs in Kazakhstan receive foreign funding, with around 70% of these organizations reportedly financed by sources from the United States. She added that, in an official capacity, Kazakhstan has received grants from 165 different foreign donors, including 53 international organizations, 31 foreign government entities, and 81 foreign NGOs.

“Financial and material-technical assistance to Kazakhstani NGOs is also provided by other foreign structures, including embassies that are not listed among these donors,” Smirnova stated.

According to her, much of this foreign support is directed toward projects related to media and freedom of speech, the protection of vulnerable groups, democracy promotion, civil society development, liberal reforms, and fostering civic engagement.

“And even specialists cannot always determine which resources are friendly and where we must be cautious to avoid exposure to ‘destructive soft power,’” she said. “This is a problem and a challenge for our entire society.”

As a solution, the PPK is calling for a reassessment of certain NGOs operating in what it describes as a “gray zone” and a revision of the regulations governing foreign donors in Kazakhstan.

Following Global Trends

Smirnova cited international examples of foreign agent laws, noting that similar regulations exist in Israel (since 2016), China (since 2017), Australia (since 2018), the United Kingdom (since 2023), and France (since 2024). She also pointed to the United States’ Foreign Agents Registration Act (FARA), enacted in 1938, as a model for regulating individuals and organizations acting in the interests of foreign entities.

She argued that Kazakhstan should adopt a similar law, mandating foreign-funded media and NGOs to disclose their financial sources. The proposed legislation would also outline penalties for failing to comply with registration requirements or deviating from declared activities.

At the same time, the PPK suggested introducing exemptions for humanitarian and scientific organizations that receive foreign funding.

Expert Skepticism

The proposal has received a lukewarm response from Kazakhstan’s political analysts. Analyst Islam Kurayev dismissed the idea, arguing that Kazakhstan’s existing legal framework already regulates foreign funding and foreign-affiliated entities.

“MP Irina Smirnova has been in the [parliament, the Mazhilis] for several years and should be aware that such a law is unnecessary,” Kurayev wrote on his Telegram channel.

“The reason is simple: Kazakhstan’s legislation already contains provisions regulating foreign financing and individuals connected to third countries. These regulations are embedded in various legal acts, meaning the necessary restrictions are already in place. There is no need to consolidate them into a separate law, effectively branding organizations with a ‘stigma.’ Given the current social tensions and ongoing public sector restructuring, such an anti-democratic law is unlikely to pass.”

Regional Context

As The Times of Central Asia previously reported, neighboring Kyrgyzstan adopted a law tightening control over foreign-funded NGOs in 2024, prompting concerns among civil society organizations and human rights activists.

Kazakhstan’s proposed legislation, if enacted, could have similar implications, raising questions about the balance between national security and civil liberties.