Page 387 – The Times Of Central Asia

13 Feb 2025

Justice, Uzbekistan Features, Uzbekistan Justice, Features

Uzbek Court Sentences Ten in Attempted Assassination of Allamjonov

February 16, 2025
By Sadokat Jalolova

On February 12, Uzbekistan’s Military Court announced the verdict in the attempted assassination of Komil Allamjonov, sentencing ten individuals to prison. The convicted are Shukhrat Rasulov, Shokhrukh Akhmedov, and Ismail Jahongirov, who received 23-year sentences; Javlan Yunusov – sentenced to 18 years and 6 months; Doniyor Tashkhodjayev received a 7-year sentence; the remaining five defendants were given undisclosed prison terms.

Following the verdict, Allamjonov took to Facebook to reflect on the challenges of the past five months and express gratitude that the case had been resolved.

“The truth can be twisted or hidden, but it will always find its way to the surface. It is destined to be revealed. A thousand thanks to Allah. Those who flee from people cannot escape the Almighty. There is still much to accomplish and many trials yet to come. May Allah grant us the strength to face them with dignity and a clear conscience. May Allah bless us all with success!”

Allamjonov, a former senior official in Uzbekistan’s Presidential Administration, was attacked near his home in Qibray on October 26, 2024. Gunmen opened fire on his car, but he was unharmed. Authorities launched an immediate criminal investigation.

By October 27, the first suspect had been detained. A month later, on November 25, the Prosecutor General’s Office announced the arrests of seven people, including Javlan Yunusov, who was extradited from South Korea. Another suspect was later detained in Kazakhstan.

In December, Uzbekistan placed two Russian citizens, Bislan Rasayev and Shamil Temirkhanov, on an Interpol international wanted list. Authorities accuse them of involvement in the attack, as well as illegal border crossing, failure to report a crime, and illegal possession of firearms.

Reports suggest that Rasayev and Temirkhanov were hired for $1.5 million to assassinate both Allamjonov and Dmitry Li, the director of Uzbekistan’s Agency for Promising Projects.

On December 26, Chechen leader Ramzan Kadyrov publicly denied any Chechen involvement in the attack. However, he also made remarks targeting Allamjonov and Li, warning that they would be held accountable for their “aspersions.” Some Uzbek politicians condemned Kadyrov’s statement, viewing it as interference in Uzbekistan’s internal affairs or even as an act of terrorist intimidation.

13 Feb 2025

Central Asia, Home, Uzbekistan, Kazakhstan, Business & Economy, Uzbekistan Business & Economy, Kazakhstan Business & Economy

New Freight Train Route Links China to Afghanistan via Central Asia

February 13, 2025
By Sadokat Jalolova

A freight train carrying communication equipment and other goods departed from Chongqing, China, on Monday and is expected to arrive in Afghanistan within 12 to 15 days, Xinhua has reported.

This marks the launch of a new direct freight route between Chongqing and Afghanistan, passing through Kazakhstan and Uzbekistan.

The train is transporting telecommunications equipment produced by Chinese tech company ZTE, which will be used to expand Afghanistan’s communication infrastructure.

According to Liu Jianfeng, a representative from ZTE, the new rail route reduces transit time by three to five days compared to road transport, and lowers logistics costs by 15% to 20%.

Xu Runqiu, an executive at Yuxin’ou (Chongqing) Supply Chain Management Company, emphasized that the route’s launch strengthens economic and trade ties between China and Central Asian countries.

Chongqing has been positioning itself as a key inland logistics hub, with freight traffic to Central Asia and Europe expanding significantly in recent years. To date, the city has dispatched more than 18,000 freight trains across 50 routes, reaching over 100 cities in Asia and Europe.

13 Feb 2025

Central Asia, Home, Business & Economy, Kazakhstan, Kazakhstan Business & Economy, Features, Kazakhstan Opinions, Kazakhstan Featurees, Kazakhstan Home

Kazakhstan is Striving for Investment Amid “Resource Nationalism”

February 13, 2025
By Nikola Mikovic

Amid the war in Ukraine, as well as various geopolitical turbulences that threaten to fundamentally change the current global order, Kazakhstan is aiming to attract more foreign investment. The war in Ukraine has so far had a relatively positive impact on the economies of most Central Asian nations, giving Astana room to achieve its ambitious goal of attracting $150 billion in foreign direct investment by 2029.

Kazakhstan, along with other neighboring actors, used the Russian invasion of Ukraine to develop closer economic ties with the West, namely with the European Union. It is therefore no surprise that, in 2022 and 2023, the EU member Netherlands invested over $12 billion in the Kazakh economy, making it the leading foreign investor.

The United States, according to the official statistics, is the second-largest investor, with Switzerland rounding out the top three. Although between 2005 and its total foreign direct investment (FDI) reached $402 billion, Kazakhstan’s innovation agenda aims to attract $150 billion of FDI in the next five years while doubling the country’s GDP.

The problem is that in 2023 the inflow of foreign direct investment into Kazakhstan decreased by 32.3%, which suggests that Astana may have a hard time finding ways to attract more capital into the Kazakh economy. Experts claim that there is no comprehensive development strategy for both industries and regions in Kazakhstan, which limits investments in its economy. But the creation of platforms with tax preferences, an independent regulator, and a regulatory environment based on the principles of British law are believed to contribute to the active development of entrepreneurship.

In other words, the authorities in Kazakhstan are using a model based on practices in Britain and the United Arab Emirates to attract investment, drawing inspiration from the British Common Law system, as well as the Dubai International Financial Center, which served as a reference for the Astana International Financial Center. Given that both Kazakhstan and the UAE are economies based on fossil fuel exports, it is unlikely to be a coincidence that Astana aims to use Abu Dhabi’s experiences to improve its existing arrangements with foreign corporations operating in Kazakhstan.

“Large investments require a long-term planning horizon. Therefore, the government will have to intensify negotiations regarding the extension of production sharing agreements contracts on the updated terms, favorable to the country,” Kazakhstan’s President Kassym-Jomart Tokayev said on January 28, as foreign companies reportedly claim that Astana is seeking to increase its shares in key oil and gas projects in what amounts to “resource nationalism”.

At the same time, the Kazakh government seeks to create a favorable investment climate for foreign companies by reducing bureaucratic obstacles, introducing tax breaks, eliminating financial audits, and ensuring the protection of the legal rights of investors. Kazakhstan has also recently introduced a Digital Nomad visa (also called a ‘Neo Nomad’ visa), which grants foreign nationals the right to reside in the country while working for a foreign employer. Such a move can be interpreted as another attempt to attract foreign investment in Kazakhstan.

As a result of various government policies, Astana now ranks among the world’s top 50 recipients of foreign direct investments and leads in Central Asia. As Roman Sklyar, Kazakhstan’s First Deputy Prime Minister, stressed on February 7 at the investment forum held in the Kazakh capital, over 60% of the region’s attracted investments are directed to Kazakhstan.

There is no doubt that the Russian actions in Ukraine, along with Western sanctions on Moscow, are impacting Kazakhstan’s investment climate. The largest Central Asia nation has attracted 41 foreign companies, with a total value exceeding $1.5 billion, to relocate their businesses from Russia to Kazakhstan. Moreover, Chinese companies Xiaomi and TCL are considering moving their production facilities from Russia to Kazakhstan due to the threat of secondary sanctions from the United States and the European Union.

Given that, as a result of anti-Russian sanctions, most trade has simply been rerouted through Central Asia, it has brought significant revenues not only to Kazakhstan, but also to other neighboring actors. That is why Astana attaches particular importance to projects aimed at developing the infrastructure and logistics of the Trans-Caspian International Transport Route (also known as the Middle Corridor), beginning in Southeast Asia and China, running through Kazakhstan, the Caspian Sea, Azerbaijan and Georgia, and on into Europe.

Russian officials, on the other hand, reportedly claim that the West has “successfully threatened” Central Asia into complying with sanctions, while offering access to global markets, transport corridors and supply chains that bypass Russia. If true, Kazakhstan has undoubtedly benefited from such a position.

According to the International Institute for Management Development, the largest Central Asian nation has entered the top 35 most competitive countries in the world, while the Asian Development Bank expects Kazakhstan’s economic growth to accelerate to 5.1% in 2025. In spite of that, the Kazakh government is now struggling to control inflation and ensure economic stability.

Thus, even though Kazakhstan has made significant strides in attracting foreign investment, continued adaptation to geopolitical shifts could be crucial for sustaining progress. By leveraging its strategic position – being a member of the Eurasian Economic Union, and having free trade agreements not only with the Commonwealth of Independent States (CIS) members, but also with countries such as Iran, Vietnam, Serbia, and Singapore – and continuing reforms, Kazakhstan has a high chance of securing its place as a regional economic leader.

13 Feb 2025

Environment, Kazakhstan Environment, Kazakhstan, Kazakhstan Business & Economy

Kazakhstan to Establish Healthy Seed Center to Boost Crop Yields

February 13, 2025
By Sergey Kwan

Kazakhstan’s Ministry of Agriculture has announced plans to establish a Healthy Seed Center aimed at reducing plant diseases and increasing crop productivity.

The center will be created in 2026 at the Zhiembaev Kazakh Research Institute of Plant Protection and Quarantine and will be equipped with state-of-the-art technology and staffed by highly qualified specialists. Its primary goal is to combat pathogens that threaten crop yields and environmental safety.

The new center will collaborate with seed farms across Kazakhstan, analyzing seed samples from various crops. A key objective of the project is to increase the share of domestically produced seeds to 80% by 2030.

Experts emphasize that improving seed quality is crucial in preventing plant diseases, as up to 70% of crop infections are transmitted through seeds. The center is expected to boost crop yields by at least 40%.

As Central Asia’s leading agricultural producer and exporter, Kazakhstan plays a key role in the regional supply of grain, wheat, and oilseeds.

In 2025, the country plans to cultivate 23.8 million hectares, an increase of 518,000 hectares compared to 2024, reflecting ongoing efforts to expand agricultural production.

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.