Page 430 – The Times Of Central Asia

08 Jan 2025

Kazakhstan, Kazakhstan Environment, Kazakhstan International Affairs, Business & Economy, Kazakhstan Business & Economy

Kazakhstan Revises 2025 Oil Production Target Amid OPEC+ Commitments

March 12, 2025
By Dmitry Pokidaev

Kazakhstan’s Ministry of Energy has lowered its 2025 oil production target by one million tons as part of the country’s commitment to meeting its obligations under the Organization of the Petroleum Exporting Countries (OPEC+) agreements. In 2024, Kazakhstan had already reduced oil production by 2.5 million tons compared to its original plan.

The revised target for 2025 now stands at 96.2 million tons, down from the 97.2 million tons announced in December 2024. Despite the reduction, Prime Minister Olzhas Bektenov has instructed the Energy Ministry to implement stronger measures to increase natural gas and oil production to meet planned output levels. Frequent revisions to production forecasts in 2024 highlighted the ongoing challenges in achieving production stability.

The lowered forecast is attributed to several factors, including extended maintenance shutdowns at major oilfields. The Tengiz oilfield experienced shutdowns in May and August, totaling 50 days, while the Kashagan oilfield underwent maintenance for 21 days. Additionally, an unscheduled shutdown occurred at the Karachaganak field.

Production was further impacted by limitations on gas intake at the Orenburg gas processing plant, which affected operations at Karachaganak. Planned maintenance at the Caspian Pipeline Consortium (CPC)—the primary route for Kazakh oil exports—also constrained transportation capacity. Compliance with OPEC+ agreements added to the reductions in production.

In mid-2024, Kazakhstan, alongside Russia and Iraq, submitted compensation schedules to OPEC to fulfill their obligations to cut oil production after exceeding quotas under the OPEC+ agreement. Under this plan, Kazakhstan began reducing production by 18,000 barrels per day in July and further cut output by 265,000 barrels per day in October 2024. These reductions will continue until September 2025.

Oil export revenues in 2024 amounted to approximately 2 trillion KZT ($3.8 billion), while total budget revenues from the oil sector exceeded 2.3 trillion KZT ($4.4 billion).

As previously reported by The Times of Central Asia, the National Bank of Kazakhstan recently lowered its forecast for oil prices in 2025, reducing the projected cost from $82.5 to $70 per barrel. This, combined with the revised production volumes, is expected to further impact revenues from the oil sector.

08 Jan 2025

Home, Environment, Turkmenistan, Turkmenistan Features, Turkmenistan Environment

Turkmenistan Develops Innovative Grapevine-Based Products

January 8, 2025
By Times of Central Asia

The International Science and Technology Park of the Academy of Sciences of Turkmenistan is conducting groundbreaking research on the use of local grape varieties in biotechnology, focusing on waste-free production. The biotechnology laboratory is studying grape varieties such as “Garauzyum,” “Gelinbarmak,” “Terbash,” “Khalili,” and “Dagtokga,” analyzing the properties of grapes, including their leaves, seeds, and vines, to develop innovative technologies.

Altyn Rakhmanova, head of the laboratory, highlighted the versatility of grapes, noting their significance beyond traditional wine-making. She emphasized their potential to produce biologically active substances, compound feed, and environmentally friendly fuel.

“Our research is aimed at identifying the potential of this crop for use in various industries,” Rakhmanova explained.

The laboratory has already developed several grapevine-based products, including the antioxidant resveratrol, animal feed, and fuel briquettes. These briquettes, made from grapevine combined with other wood-based materials, are particularly noteworthy for their environmental benefits. When burned, they emit no toxic resins, making them suitable for both domestic and industrial use. This innovative approach not only reduces waste but also diversifies the product range. The project’s uniqueness lies in its combination of environmental sustainability and broad applications.

In addition to product development, the biotechnology laboratory is exploring opportunities for international collaboration. Scientists believe that partnerships with foreign companies and research organizations will facilitate the exchange of knowledge and foster the creation of advanced environmentally friendly technologies.

08 Jan 2025

Central Asia, Environment, Tajikistan International Affairs, Tajikistan, Tajikistan Business Economy, International Affairs, Business & Economy, Tajikistan Environment

AIIB Commits $500 Million to Tajikistan’s Rogun Hydropower Project

January 8, 2025
By Sergey Kwan

The Beijing-based Asian Infrastructure Investment Bank (AIIB) has approved a multiphase program totaling $500 million, including an initial Phase 1 loan of $270 million, to support Tajikistan’s flagship Rogun Hydropower Plant (HPP) project. The announcement was made on January 6, following the financing approval on December 19, 2024.

The Rogun HPP, located on the Vakhsh River — a tributary of the Amu Darya River — lies 110 kilometers from Dushanbe, Tajikistan’s capital. With a designed generation capacity of 3,780 MW, a 335-meter-high dam, and a reservoir spanning 170 square kilometers, the Rogun HPP is expected to deliver improved electricity access to around 10 million people. It aims to address Tajikistan’s chronic winter power shortages and position the country as a key regional energy supplier.

The project is co-financed with the World Bank, with potential contributions from a global consortium of donors. It seeks to enhance the supply of clean, affordable, and climate-resilient hydropower, with the potential to export electricity to neighboring Central Asian countries.

As Central Asia’s energy demand is projected to grow by 40% by 2030 and triple by 2050, the Rogun HPP will play a pivotal role in increasing reliability and reducing the cost of electricity supply across the region.

Konstantin Limitovskiy, AIIB Chief Investment Officer, commented on the significance of the project, stating: “This project will significantly contribute to the green energy transition and energy security of Central Asia. Investing in sustainable energy infrastructure is not merely about meeting today’s demands, but about empowering future generations with clean, reliable power that drives transformative growth, strengthens resilience, and unlocks the full potential of the region.”

Tajikistan ranks eighth globally in hydropower potential, yet only about 4% of this capacity is currently utilized. The Rogun HPP is set to play a critical role in decarbonizing electricity grids across Central Asia, supporting the region’s ambitious Nationally Determined Contributions (NDCs) under the Paris Agreement.

08 Jan 2025

Central Asia, International Affairs, Kazakhstan, Kazakhstan International Affairs

Kazakhstan Leads Central Asia in Global Passport Power Ranking 2025

January 8, 2025
By Sadokat Jalolova

Kazakhstan has secured the top spot among Central Asian countries, ranking 52nd globally in the latest Passport Index by Canadian consulting firm Arton Capital. The ranking evaluates passports based on the number of destinations their holders can access visa-free or with a visa on arrival.

Kazakhstan’s passport allows visa-free travel to 46 countries and visa-on-arrival access to 50 more, totaling 96 destinations. However, Kazakh citizens still require visas for 102 destinations.

Uzbekistan ranks 68th, climbing two places from 2024. Uzbek passport holders enjoy visa-free access to 32 countries and can obtain visas on arrival for 46 more. Visas are required for 120 destinations.

Kyrgyzstan stands at 78th in the global ranking. Its citizens can travel visa-free to 30 countries and obtain visas on arrival in 48. Like Uzbekistan, Kyrgyz nationals need visas for 120 destinations.

Tajikistan ranks 80th, with its citizens able to visit 27 countries visa-free and 46 with a visa on arrival. Tajik nationals require visas for 125 destinations.

Turkmenistan is 85th globally, the lowest among Central Asian nations. Turkmen passport holders have visa-free access to 18 countries and visa-on-arrival privileges for 50 destinations but need visas for 130 countries.

Globally, the United Arab Emirates retains its position as the most powerful passport, followed by Spain, France, Germany, and Belgium. Several countries share the same rank; for instance, German, Belgian, and Italian citizens can visit 133 countries visa-free and obtain visas on arrival in 45 countries.

08 Jan 2025

Central Asia, Uzbekistan Environment, Environment, Kazakhstan Environment, Uzbekistan, Kazakhstan Local Politics, International Affairs, Kazakhstan International Affairs, Business & Economy, Kazakhstan, Uzbekistan Business & Economy, Kazakhstan Business & Economy, Uzbekistan International Affairs, Uzbekistan Local Politics

Kazakhstan and Uzbekistan Collaborate on Syr Darya River Automation to Improve Water Management

January 8, 2025
By Sadokat Jalolova

Kazakhstan and Uzbekistan are moving forward with plans to install ten automated measuring stations along the Syr Darya River, a project aimed at improving water resource management. As previously reported by The Times of Central Asia in September 2024, this initiative was first discussed during meetings between Uzbek Minister of Water Resources Shavkat Khamroyev and Kazakh Minister of Water Resources Nurzhan Nurzhigitov. The discussions focused on automating and digitizing water accounting in the river basin.

On January 7, the two countries announced that they had agreed to develop technical specifications for the project. Five stations will be installed in each country, with the German Agency for International Cooperation (GIZ) assisting in the development of draft technical specifications. Meanwhile, negotiations are ongoing with international financial institutions to secure funding for the project.

“This is just the beginning,” stated Kazakhstan’s Vice Minister of Water Resources and Irrigation, Nurlan Aldamjarov. “Only the first ten sections have been identified so far, but we aim to automate all major hydro posts and ensure complete transparency in water accounting. We are also actively addressing this issue in talks with our Kyrgyz and Tajik counterparts.”

The automation of water management systems is a critical step for both Kazakhstan and Uzbekistan, as the Syr Darya River plays a vital role in supporting agriculture and ensuring water security in the region.

08 Jan 2025

Home, Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy, Kyrgyzstan Features

Kyrgyzstan Reports Decrease in Shadow Economy

January 8, 2025
By Sergey Kwan

Kyrgyzstan’s non-observed (shadow) economy, excluding the agricultural sector, accounted for 19.2% of GDP in 2023, marking a 1% decrease from 2022’s 20.2%, according to the latest data from the National Statistical Committee. The Committee attributes this improvement primarily to reductions in shadow activities within key sectors: wholesale and retail trade and motor vehicle repair by 0.5%, construction by 0.4%, and transportation and cargo storage by 0.2%.

Historical data reveals a steady decline in the shadow economy’s share of GDP over recent years, estimated at 20.4% in 2021, 20.1% in 2020, and 22.8% in 2019. Shadow economic activities in Kyrgyzstan are concentrated in sectors such as trade, car repair, transportation, construction, processing industries, hospitality, and various services.

Discrepancies persist, however, in shadow economy estimates. In January 2024, Minister of Economy and Commerce Daniyar Amangeldiev noted that international financial institutions assessed Kyrgyzstan’s shadow economy as comprising 60% to 70% of GDP. He explained this divergence by citing differences in methodologies used by the National Statistical Committee and international organizations to calculate the informal economy’s size.

Although the National Statistical Committee has yet to publish its shadow economy assessment for 2024, Minister Amangeldiyev recently highlighted the positive impacts of a shrinking shadow economy. He credited it, alongside growing trade volumes, with contributing to Kyrgyzstan’s GDP growth last year.

For context, the U.S. Department of Commerce’s International Trade Administration estimates Kyrgyzstan’s informal economy at 25% to 72% of GDP, underscoring the challenge of accurately quantifying this sector.