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How Sanctions Against the Moscow Exchange Will Affect Kazakhstan

The introduction of U.S. sanctions against the Moscow Exchange (MOEX) will not have legal consequences for the Kazakhstan Stock Exchange (KASE), because the Russian platform’s share in Kazakhstan’s capital is not large enough, KASE’s press service has reported. On June 12th, the Office of Foreign Assets Control (OFAC) of the United States put the Moscow Exchange on the SDN list, which means blocking its accounts in U.S. banks and depositories and banning cooperation for U.S. citizens and residents. The exchange has already announced that it will stop trading in dollars and euros in the foreign exchange section.

At the same time, contrary to popular belief, the entry of a company into the SDN list does not automatically lead to the introduction of secondary sanctions against all its partners, including those from third countries. Restrictions may be imposed on the subsidiaries of sub-sanctioned companies if they own at least 50% of their authorized capital. MOEX owns 13.1% of KASE shares, which means the latter is not considered a company under the control of the SDN-list participant.

“In this regard, Kazakhstan Stock Exchange and KASE Clearing Center continue to operate normally. Standard regulations will conduct trades, clearing, and settlements. KASE will consider the continuation of business relations with MOEX considering the sanctions restrictions,” noted the release from the Kazakhstan Stock Exchange.

In November last year, KASE head Alina Aldambergen said that the platform carefully analyzes the risks of sanctions. At the same time, she said that cooperation with the Moscow Exchange has been reduced to providing IT services.

Economist Rasul Rysmambetov previously wrote for The Times of Central Asia that he believes sanctions against several financial structures in Russia will not directly affect Kazakhstan. However, there are bound to be consequences for Kazakhstan from the actions of the Russian authorities.

“At some point, the Russian financial authorities will see that the pressure of sanctions is aimed not at complicating their operations, but at destroying their financial structure, and they may start taking symmetrical actions,” Rysmambetov wrote on social networks.

Rysmambetov believes the ruble’s depreciation will affect Kazakhstani entrepreneurs producing sugar, milk, and grain.

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Times of Central Asia

Askar Alimzhanov graduated from the journalism department of the Kazakh State University named after S. Kirov, then worked as a correspondent for the daily republican newspaper Leninskaya Smen. He then moved to the United States to be a reporter for the daily newspaper "Cape Cod Times" in Hayanis, Massachusetts, (USA) under the journalist exchange program between the Union of Journalists of the USSR and the New England Society of News Editors. Since then, he has helped build transparency and understanding of Central Asia region in various executive level positions at esteemed media organizations including "Akbar"(Alma-Ata) international center for journalism, the Khabar News agency, the Television and Radio Corporation "Kazakhstan" JSC, and MIR- Kazakhstan.

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Arrests of People from Tajikistan Who Crossed Border into U.S. Fuel Terrorism Worries

The reported arrests in the United States of eight people from Tajikistan with possible ties to a terror group has renewed concerns about extremism in the Central Asian country, which faced a backlash after the alleged involvement of some of its nationals in a terror attack in Russia in March.

U.S. officials have provided little detail on the arrests of the men who had crossed into the United States from Mexico last year, though the development added to tension over the surge in illegal crossings at the southern border. Immigration and border security are a major campaign issue ahead of the U.S. presidential election in November.

Patrick Lechleitner, the acting director of U.S. Immigration and Customs Enforcement, also known as ICE, was asked on Wednesday about reports that background checks on the Tajik men failed to turn up any cause for concern. In an interview with the NewsNation network, Lechleitner said another agency, the U.S. Customs and Border Protection, had first contact with the men as they crossed the border.

“Sometimes there is just no information on individuals. I mean, it’s quite common…  There is nothing,” he said. “There´s no criminal convictions, there’s no threat information or whatever on these individuals, or maybe these individuals are from an area that is particularly of concern, but that pops up later.”

ICE was collaborating with the FBI and “we went out and got” the suspects after becoming aware of concerns about them, Lechleitner said.

American law enforcement previously warned of the growing threat of terrorism on U.S. soil after the killing of about 145 people in an attack on the Crocus City Hall, an entertainment venue on the outskirts of Moscow, on March 22. The Islamic State group said it carried out the attack, and several people from Tajikistan were among suspects arrested by Russian authorities.

“Now increasingly concerning is the potential for a coordinated attack here in the homeland, akin to the ISIS-K attack we saw at the Russia concert hall a couple weeks ago,” FBI Director Christopher Wray told U.S. lawmakers on April 11.

ISIS-K is an acronym used for an affiliate of the Islamic State branch that operates in Afghanistan and has sought recruits from Central Asia, particularly Tajikistan and Uzbekistan.

The Crocus City Hall killings led to a backlash of suspicion against many Tajik migrants in Russia and difficult conditions for those trying to enter Russia in order to work, generating diplomatic tension between Moscow and Dushanbe and worries about the flow of remittances that are a vital part of Tajikistan’s economy.

Tajikistan has not commented publicly on the arrests of the Tajik men in the United States. The Tajik government has previously said it is doing what it can to combat terrorism, downplaying questions about whether some of its internal restrictions, including on religious expression, might be contributing to radicalization.

U.S. media reports, including from NBC News and ABC News, said the arrests occurred in New York, Philadelphia and Los Angeles this past weekend. The reports relied on anonymous sources, some of them identified as “officials.”

The men were arrested on immigration charges and face deportation, some reports said, suggesting there is not enough evidence to charge them with terror-related offenses.

The United States has worked with Tajikistan to counter the threat of terrorist infiltration, providing technical help and equipment to secure its 1,350-kilometer border with Afghanistan. Tajikistan has collaborated on the same issue with Russia.

In May, Tajik President Emomali Rahmon suggested to Russian President Vladimir Putin that his country was fated to be on the front lines of anti-terror efforts because of geography.

“You know where Tajikistan is located, and that it is a global problem,” Rahmon said.

Times of Central Asia

Times of Central Asia

 Stephen M. Bland is a journalist, author, editor, commentator and researcher specialising in Central Asia and the Caucasus. Prior to joining The Times of Central Asia, he has worked for NGOs, think tanks, as the Central Asia expert on a forthcoming documentary series, for the BBC, The Diplomat, EurasiaNet, and numerous other publications.
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Published in 2016, his book on Central Asia was the winner of the Golden Laureate of Eurasian Literature. He is currently putting the finishing touches to a book about the Caucasus.
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www.stephenmbland.com

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Cargo Transport from Uzbekistan to EU Countries via Latvia

According to the Ministry of Transport of Uzbekistan’s press service reports, Uzbekistan and Latvia have agreed to develop road freight transportation through Latvian ports.

The decision followed discussions by the Uzbek-Latvian Joint Commission on International Road Transportation on issues related to trade development, economic relations, and increasing the volume of international cargo transportation.

In a statement welcoming the move, the Ministry of Transport of Uzbekistan announced, “Today, the importance of the route passing through Latvian ports is growing and expanding trade relations between Uzbekistan and EU countries. In this regard, the meeting focused on the effective utilization of  Latvia’s port infrastructure potential. Head of the Public Transport Department of the Latvian Ministry of Transport Annija Novikova has expressed readiness to provide comprehensive assistance in creating favorable conditions for national carriers of Uzbekistan within the framework of cooperation,”

During the meeting, the parties agreed to provide special permits for organizing cargo transportation by road through Latvian ports and established a quota of permits for 2024.

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Times of Central Asia

Askar Alimzhanov graduated from the journalism department of the Kazakh State University named after S. Kirov, then worked as a correspondent for the daily republican newspaper Leninskaya Smen. He then moved to the United States to be a reporter for the daily newspaper "Cape Cod Times" in Hayanis, Massachusetts, (USA) under the journalist exchange program between the Union of Journalists of the USSR and the New England Society of News Editors. Since then, he has helped build transparency and understanding of Central Asia region in various executive level positions at esteemed media organizations including "Akbar"(Alma-Ata) international center for journalism, the Khabar News agency, the Television and Radio Corporation "Kazakhstan" JSC, and MIR- Kazakhstan.

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South Korean Corporation Bank to Open in Kazakhstan

Microfinance organization BNK Finance Kazakhstan, part of the Korean corporation BNK Financial Group Inc., has been granted  permission to transform into a second-tier bank.

The news was reported by the Agency of the Republic of Kazakhstan on Regulation and Development of Financial Market’s press service (ARFM).

BNK Financial Group Inc. is the largest South Korean financial group with assets of $129 billion and a national rating of “AAA.” The group has two banks with over 300 branches and “A2” international ratings.

In 2021, BNK MFI received a license to carry out microfinance activities. Since then, the company has significantly increased its performance and capabilities and now ranks 13th in terms of assets in Kazakhstan’s microfinance organizations sector.

The decision by the Agency for Regulation and Development of the Financial Market of Kazakhstan (ARDFM) to issue a permit for BNK’s voluntary reorganization into a second-tier bank was approved by a resolution on June 7.

As noted by the press service, the appearance of a new foreign bank in Kazakhstan’s financial market will strengthen competition in the banking sector and provide clients in Kazakhstan with financial services that adhere to international groups’ advanced corporate standards.

Earlier this month, during talks with the head of South Korea, Yoon Suk Yeol, Kazakhstan’s president  Kassym-Jomart Tokayev, cited Seoul as one of Astana’s most important strategic partners in the Asia-Pacific region. Korea ranks fourth in foreign trade turnover and is among Kazakhstan’s top ten largest foreign investors.

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Times of Central Asia

Askar Alimzhanov graduated from the journalism department of the Kazakh State University named after S. Kirov, then worked as a correspondent for the daily republican newspaper Leninskaya Smen. He then moved to the United States to be a reporter for the daily newspaper "Cape Cod Times" in Hayanis, Massachusetts, (USA) under the journalist exchange program between the Union of Journalists of the USSR and the New England Society of News Editors. Since then, he has helped build transparency and understanding of Central Asia region in various executive level positions at esteemed media organizations including "Akbar"(Alma-Ata) international center for journalism, the Khabar News agency, the Television and Radio Corporation "Kazakhstan" JSC, and MIR- Kazakhstan.

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International cargo transport

First Cargo Transported from Pakistan to Azerbaijan via Kazakhstan

A Pakistani transport and logistics company, TCS, has now completed a pilot delivery of goods from Karachi (Pakistan) to Baku (Azerbaijan) through the Caspian seaport of Aktau in Kazakhstan.

The shipment was organized with the assistance of the Embassy of Kazakhstan in Islamabad, in an effort to expand Kazakhstan’s transit transport potential.

Kazakhstan’s Foreign Ministry announced that the transportation of Pakistani pharmaceutical products under TIR, along the 4,820 km long route through Afghanistan and Uzbekistan to Aktau and then by sea to Baku, took 21 days.

According to Pakistani logistics experts, the Trans-Afghan corridor in tandem with the Karakoram Highway, can provide significant impetus to expanding the transit and transport potential of Kazakhstan and Pakistan, with reference to the Trans-Caspian International Transport Route.

 

Times of Central Asia

Times of Central Asia

Laura Hamilton MA, is the former Director of the Collins Gallery at the University of Strathclyde. She first visited Kyrgyzstan in 2011 to research and curate a major exhibition of contemporary textiles and fashion. Since 2012, she has worked as an editor on over thirty translations of Central Asian novels and collections of short stories. In more recent years, her work has focused on editing translations of Kyrgyzstan's great epics -'Ak Moor', Saiykal', Janysh Baiysh', 'Oljobai and Kishimjan', 'Dariyka', 'Semetey' and 'Er Toshtuk' for The Institute of Kyrgyz Language and Literature, and the Kyrgyz-Turkish Manas University.

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photo: US Embassy Kyrgyzstan

U.S. Program Improves Lives of Over 300,000 Kyrgyz Citizens

On June 12, Bishkek hosted a conference themed  “Active Communities – Foundation for Development”  to review the success of the five-year Jigerduu Jarandar project.

The event was attended by Member of the Jogorku Kenesh (Kyrgyz parliament) Elvira Surabaldieva, Kyrgyz Minister of Justice Ayaz Baetov, Deputy Minister of Labor, Social Development, and Migration Chyngyzbek Mamat uulu, USAID/Kyrgyz Republic Acting Mission Director James Lykos, and representatives of civil society organizations and local self-governments.

As reported by the U.S. Embassy in Kyrgyzstan, since 2019, the U.S. government’s Jigerduu Jarandar project – through the U.S. Agency for International Development (USAID) – has positively impacted communities across 19 municipalities in Kyrgyzstan.

Committed to fostering active citizenship, the project has benefited over 62,000 residents through the creation of parks, safer sidewalks, improved street lighting, and inclusive playgrounds. The project has also provided free legal aid to 38,000 individuals, supported some 11,000 survivors of gender-based violence, and improved solid waste management systems to the benefit of over 200,000 residents.

In praise of the initiative, James Lykos, Acting Mission Director of USAID/Kyrgyz Republic, commented: “The United States is proud to have supported the Kyrgyz government and local communities through the USAID Jigerduu Jarandar project. It has been a joint effort to help citizens make their communities a better and safer place, and better understand and claim their rights.”

Minister of Justice Baetov expressed gratitude to the USAID Jigerduu Jarandar project for promoting initiatives in the field of legal assistance and notary services for citizens of Kyrgyzstan.

 

 

Times of Central Asia

Times of Central Asia

Laura Hamilton MA, is the former Director of the Collins Gallery at the University of Strathclyde. She first visited Kyrgyzstan in 2011 to research and curate a major exhibition of contemporary textiles and fashion. Since 2012, she has worked as an editor on over thirty translations of Central Asian novels and collections of short stories. In more recent years, her work has focused on editing translations of Kyrgyzstan's great epics -'Ak Moor', Saiykal', Janysh Baiysh', 'Oljobai and Kishimjan', 'Dariyka', 'Semetey' and 'Er Toshtuk' for The Institute of Kyrgyz Language and Literature, and the Kyrgyz-Turkish Manas University.

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