Page 458 – The Times Of Central Asia

10 Dec 2024

Central Asia, Uzbekistan, Uzbekistan Business & Economy, Business & Economy

Young Uzbek Men Dominate Russia’s Migrant Workforce in 2024

December 19, 2024
By Sadokat Jalolova

A recent analysis by the “Migrant Service” platform has outlined the profile of the average migrant worker in Russia for 2024. According to the study, the typical migrant is a 28-year-old married man from Uzbekistan, residing in or near Moscow.

The survey, which included approximately 63,000 participants, revealed key demographic trends among migrant workers in Russia. Most respondents identified as Muslim men aged 28, though the age range spanned from 18 to 37 years.

Uzbekistan Leads Migration Statistics

The majority of migrant workers in Russia come from Uzbekistan, accounting for 55.4% of the total. Tajikistan follows with 39.89%, while Armenia, Kyrgyzstan, Belarus, and Kazakhstan collectively contribute 4.82% of the migrant population.

“For migrants, family and children are the highest priorities,” the analysts noted. This focus is reflected in remittance patterns: 67% of respondents send money to their families once a quarter, and 41% remit more than 50% of their income.

Growing Demand for Migrant Labor

The survey also highlights the increasing reliance on Central Asian migrants to address labor shortages in Russia. This trend, as previously reported by the Times of Central Asia, has been exacerbated by Russia’s ongoing war in Ukraine, which has intensified the demand for additional workers.

10 Dec 2024

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

Kazakhstan Building Five Cross-Border Trade Hubs

December 10, 2024
By Sergey Kwan

Kazakhstan is advancing plans to establish five cross-border trade and economic hubs, aiming to position the country as a key global transport and logistics center. The initiative was reviewed at a government meeting on December 10.

Strategic Hub Development

Minister of Trade and Integration Arman Shakkaliyev reported that significant progress has been made on the hubs, with rail and road links already in place. The planned hubs are:

The Khorgos Hub: Located on the border with China.
The Caspian Hub: Situated along the Trans-Caspian International Transport Route (TITR).
The Eurasia Center for Cross-Border Trade: Positioned at the border with Russia.
The “Central Asia” International Center for Industrial Cooperation: At the border with Uzbekistan.
The Industrial Trade and Logistics Complex: At the border with Kyrgyzstan.

Additionally, container hubs are planned for the ports of Aktau and Kuryk in the Mangistau region. Multimodal air hubs are also under development at airports in the cities of Astana, Almaty, Shymkent, and Aktobe.

Broader Economic Goals

Prime Minister Olzhas Bektenov underscored the strategic importance of these projects, emphasizing their potential to reduce transit times, boost industrial production, increase tax revenues, and create new jobs.

Bektenov highlighted that the network of hubs will form a unified trade and transport space with Kazakhstan’s key trading partners. “This will significantly increase trade turnover between the countries and strengthen strategic relations with neighboring states,” he said.

The prime minister also stressed the importance of leveraging major transport corridors such as the East-West, North-South, and Trans-Caspian International Transport Route corridors to enhance access to the markets of China, the Persian Gulf, the Caucasus, and Europe.

10 Dec 2024

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

National Bank of Kazakhstan Predicts Higher 2025 Oil Prices Than Bank of America

February 4, 2025
By Dmitry Pokidaev

The National Bank of Kazakhstan (NBK) has revised its forecast for 2025 oil prices, lowering the projected cost from $82.5 to $70 per barrel. Despite this adjustment, the NBK remains more optimistic than Bank of America, which recently reduced its 2025 oil price forecast to $65 per barrel.

Bank of America’s Forecast

Initially, Bank of America analysts projected Brent oil prices at $80 per barrel for 2025, aligning closely with the NBK’s earlier forecast of $82.5. However, last week, Francisco Blanch, head of global commodities and derivatives research at Bank of America, announced a significant revision, citing oversupply and reduced demand driven by the global shift toward cleaner energy sources and transportation. The new forecast sets oil prices at $65 per barrel.

NBK’s Adjusted Outlook

In its updated Monetary Policy Report, the NBK revised its oil price forecast for 2025 to $70 per barrel, compared to an average of $80.3 in 2024. The adjustment reflects weaker anticipated demand from China and OECD countries, coupled with slower global economic growth.

The NBK noted that “the relaxation of production restrictions by OPEC+ countries starting in 2025, alongside increased output from North and South America, will likely create a supply surplus in the oil market.”

External Influences

The U.S. presidential election results could also impact global oil dynamics. President-elect Donald Trump and his administration have pledged to sharply increase domestic oil production beginning in January 2025, aiming to reduce petroleum prices. Additionally, Trump has suggested a potential withdrawal from the Paris Climate Agreement, which could further incentivize support for U.S. oil companies.

For Kazakhstan, declining oil prices present significant fiscal challenges. According to the Ministry of Finance, the country collected 655.2 billion KZT ($1.2 billion) in mineral extraction tax (MET) from oil companies during the first 11 months of 2024. Oil export revenues contributed approximately 2 trillion KZT ($3.8 billion), bringing total budget revenues from the oil sector to over 2.3 trillion KZT ($4.4 billion) this year.

The potential reduction in oil prices could, therefore, have a substantial impact on Kazakhstan’s economy, particularly on its budgetary revenues derived from the oil industry.

10 Dec 2024

Central Asia, Uzbekistan, Turkmenistan, Life & Culture, Tajikistan, Kyrgyzstan, Kazakhstan

Kazakhstan Tops Central Asia with Region’s Highest Pensions

December 10, 2024
By Vagit Ismailov

Kazakhstan leads Central Asia in pension payments, with the highest average pension in the region, according to Kaktus.media. Kazakh citizens receive an average of approximately 89,275 KZT ($175.30) per month, as reported by the region’s statistical agencies.

Kyrgyzstan holds second place, with an average pension of 9,379 KGS ($108) at the end of 2023. Uzbekistan follows with an average of 1.2 million UZS ($93.40), while Turkmenistan ranks fourth, offering an average of 300 TMT ($85.60). Tajikistan reports the lowest pension payments in the region, where pensioners receive just an average of 370 TJS ($33.80) per month.

Kazakhstan has also announced measures to further support its pensioners. Beginning January 1, 2025, the country will implement an annual indexation of solidarity pensions by 8.5%. Additionally, basic pensions and social benefits will increase by 6.5% annually, a move designed to improve the welfare of retirees.

10 Dec 2024

Central Asia, Environment, Kyrgyzstan Environment, Local Politics, Kyrgyzstan, Kyrgyzstan Local Politics

Solid Waste Recycling Plant Under Construction in Bishkek

December 10, 2024
By Sergey Kwan

Bishkek municipality has announced progress on the construction of a solid waste recycling plant at the city’s sanitary landfill, supported by a Chinese investor. Concrete foundations are being poured, and equipment and components for the facility have begun arriving from China. Currently, over 180 Chinese workers and engineers are active at the site.

On March 29, Kyrgyzstan’s Cabinet of Ministers and the Chinese investor signed an agreement for the plant’s construction. The facility will generate electricity by incinerating municipal solid waste. In its initial phase, the plant is expected to process 1,000 tons of waste daily, with plans to increase capacity to 3,000 tons per day. The project’s total investment amounts to approximately $95 million, with construction slated for completion in December 2025.

Addressing a Growing Problem

Solid waste disposal has long been a critical issue in Kyrgyzstan, particularly in Bishkek, the nation’s largest city. According to the 24.kg news agency, the per capita production of waste is rising. Almaz Oskonbaev, an official from the Ministry of Natural Resources, Ecology, and Technical Supervision, reported that 1.792 million tons of solid waste were collected nationwide in 2023, a significant increase from 1.177 million tons in 2019. This equates to approximately 279 kilograms of garbage per person annually.

Bishkek’s sanitary landfill currently receives around 200 tons of waste daily from the city and its suburbs, according to landfill director Nurlan Jumaliev.

A New Landfill to Complement Recycling Efforts

In a bid to improve waste management, Bishkek inaugurated a new sanitary landfill on October 31, 2023. Supported by the European Bank for Reconstruction and Development (EBRD) and the European Union (EU), this facility complies with both national and EU environmental standards. With a storage capacity of 1.9 million cubic meters, it is expected to accommodate the city’s waste disposal needs for at least a decade.

The construction of the recycling plant represents a significant step forward in addressing Bishkek’s mounting waste challenges while contributing to sustainable energy production.

10 Dec 2024

Education, Central Asia, Tajikistan Life & Culture, Life & Culture, Tajikistan, Business & Economy

Tajik Migrants Embrace Free English Courses to Pursue Jobs in Europe

December 10, 2024
By Vagit Ismailov

Tajikistan has launched a free English online course for migrant workers aiming for employment in Europe and the Commonwealth of Independent States (CIS). The course, developed in partnership with the International Organization for Migration (IOM) and the Smarthub educational platform, is part of the UK Seasonal Worker Program. This initiative provides participants with an opportunity to enhance their language skills at no cost.

According to the IOM, over 200 participants have already completed the program. The curriculum covers essential communication skills, ranging from basic phrases and personal introductions to professional vocabulary necessary for workplace interactions.

This initiative comes as Tajikistan explores alternative destinations for labor migration, prompted by stricter migration rules in Russia and Western sanctions limiting access to its labor market. Increasing numbers of Tajik workers are finding employment in Germany, Poland, the Baltic States, Romania, and the United Kingdom. In 2023, approximately 1,000 Tajik citizens traveled to the UK for seasonal agricultural work, including fruit and vegetable harvesting.