Page 507 – The Times Of Central Asia

06 Nov 2024

Central Asia, International Affairs, Kazakhstan International Affairs, Kazakhstan, Business & Economy, Kazakhstan Business & Economy, Features

Kazakhstan and France – Key Take-Aways From Tokayev’s Trip to Paris

November 7, 2024
By Aliya Haidar

As The Times of Central Asia has reported, President Kassym-Jomart Tokayev paid a state visit to Paris, during which he met with his French counterpart and held fruitful talks with representatives of major European companies.

After the bilateral talks, Tokayev and French President Emmanuel Macron issued a joint statement.

“This visit is significant for us. France is a close and reliable partner of Kazakhstan in the European Union. For 34 years, our relations have acquired a strategic character. Astana and Paris have established a political dialog based on mutual understanding at all levels. Ties in trade and economic, investment, cultural, and humanitarian spheres have been strengthened; a clear legal framework has been formed. Interaction within the framework of international organizations has expanded. I am confident that our partnership, based on unshakable friendship and mutual support, will be successful in the future,” Tokayev said.

Both parties stated that they consider it necessary to develop trade and economic cooperation.

“Last year, the two countries’ trade turnover amounted to $4.2 billion. And this year, we reached this figure in 9 months. France ranks sixth in terms of investment in our country. French companies, including Alstom, Total Energies, Air Liquide, Orano, Vicat, Danone, and Lactalis, have invested heavily in Kazakhstan, reaching about $19.5 billion. Cooperation in the oil and gas, mining, industrial, construction, aviation, engineering, and health care sectors is being strengthened,” the Kazakh president said.

In addition, Tokayev met in Paris with a potential supplier of nuclear technology for the construction of nuclear power plants, the CEO of Électricité de France (EDF), Luc Remona.

According to the official website of the President of Kazakhstan, Akorda, “The French company is on the short list of potential suppliers of nuclear technology for constructing nuclear power plants. The country is considering the establishment of an international consortium as one of the potential models for the realization of this crucial project.”

President Tokayev also participated in an investment roundtable attended by the heads of France’s largest companies. “We are pleased to be one of France’s main trade, economic, and investment partners in Central Asia. Kazakhstan now accounts for more than 80% of France’s trade with the region. This year, bilateral trade volume has increased by 45%,” Tokayev said.

The President also outlined promising areas of economic ties for the two countries.

“Energy has always been a key sector of our cooperation. Astana is a major supplier of oil and uranium to the European Union and is ready to support France’s energy sovereignty further. We expect an intensified presence of French industry in Kazakhstan, with which we associate the introduction of advanced technologies in our production sphere. Given that our country is the largest uranium producer in the world, and France has extensive experience in the nuclear industry, we could cooperate in civilian nuclear energy,” Tokayev stated.

Tokayev emphasized that massive international companies are interested in implementing large-scale wind, solar, and hydropower projects in Kazakhstan. For example, Total Energies plans to invest $1.1 billion in a one-gigawatt wind farm.

According to the Kazakh president, cooperation between the republic and EU countries is gaining momentum. “As global demand for critical raw materials will quadruple by 2040, Kazakhstan can become a reliable supplier for French and European industry. We currently mine 19 of the 34 critical raw materials vital to the EU economy, including titanium, copper, magnesium, and scandium. According to forecasts, Kazakhstan’s subsoil also contains rich deposits of such rare-earth minerals as lithium, beryllium, and tantalum, which are in demand in virtually all high-tech and environmentally friendly industries,” Tokayev said.

The president also believes that developing the agro-industrial complex and cooperation in this area is extremely important in ensuring global food security.

Kazakhstan is among the ten largest grain exporters, supplying more than 80 countries with eight million tons of wheat and two million tons of flour. Thanks to a rich harvest this year, its grain export potential has increased to 12 million tons. Tokayev invited French partners to realize joint investment and technological projects in livestock breeding and seeds of grain crops. He also invited Macron to pay a state visit to Kazakhstan next year, and invited French entrepreneurs to participate in the International Forum in Astana, which will be held in May 2025. Following the meeting, the two countries’ leaders adopted a joint declaration on a strategic partnership.

Other documents were also signed, including a partnership agreement on strategic cooperation between Samruk-Kazyna JSC and Société Generale S.A. and an agreement on strategic cooperation on 6-axle electric locomotives between the Kazakhstan’s Temir Zholy JSC and Alstom Transport SA. In Paris, delegation representatives signed 36 documents, including 14 commercial ventures worth $2.2 billion.

On the eve of his visit to Paris, Tokayev published an article for the French newspaper Le Figaro, in which he explained the country’s position on global challenges and prospects for cooperation with France and the EU. In Tokayev’s opinion, one of the critical aspects of the new reality is recognition of the growing role of the group of middle powers, which includes Kazakhstan.

In the article, Tokayev recalled that Kazakhstan has long had an active foreign policy, promoting initiatives worldwide. In particular, the republic has promoted interstate negotiations, providing a platform for peaceful dialogue between Azerbaijan and Armenia and discussing the Syrian crisis and the Iranian nuclear program. Kazakhstan regularly organizes congresses of leaders of world religions, supporting interfaith dialogue. These initiatives, Tokayev said, unite the values of peace and solidarity that Kazakhstan shares with France.

The president also highlighted the Middle Corridor project, which links Europe and Asia through Kazakhstan and the Caspian Sea. This transportation route will strengthen economic ties between the regions and increase the energy security of Europe, including France.

06 Nov 2024

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

New Guzor to Beinau Highway Brings Uzbekistan Closer to Europe

November 6, 2024
By Sadokat Jalolova

Uzbekistan has completed a new 240-kilometer section of the A380 highway connecting the cities of Guzor, Bukhara, Nukus, and Beineu, passing through the Kungirot district of Karakalpakstan. The road, built with a cement-concrete coating, is a strategic road connecting Uzbekistan with Europe.

The Asian Development Bank allocated $274.9 million to the construction, while Uzbekistan contributed $108.5 million. Turkish and Azerbaijani companies managed the first 120 kilometers of the road, with Chinese companies managing the rest.

The highway aims to boost the capacity and quality of international and national highways, cutting road maintenance costs by 2.5 times. This new road will reduce travel time by 2.2 times, double transit traffic, cut fatal accidents by half, and contribute to regional GDP growth. It will also reduce Uzbekistan’s international transport distance to 1,000 kilometers, lowering shipping costs by 25%.

New trade and service centers are planned alongside the highway, initially creating 2,000 jobs and an additional 5,000 expected. This development is projected to boost Karakalpakstan’s annual transit and service revenue by $200 million and exports by at least $300 million.

06 Nov 2024

Home, International Affairs, Kazakhstan, Kazakhstan International Affairs, Features, Kazakhstan Featurees

Kazakhstan’s Tokayev in France: It’s All About Nuclear Energy

November 7, 2024
By Nikola Mikovic

For France – a country that gets around 70% of its electricity from nuclear energy – Kazakhstan’s decision to build its first nuclear power plant presents an ideal opportunity to strengthen economic ties with the Central Asian state. For Astana, potential cooperation with French nuclear corporations could help reduce dependence on Russia and its State Nuclear Energy Corporation, Rosatom. But will things really go that smoothly?

In November 2023, following the meeting between Kazakh President Kassym-Jomart Tokayev and his French counterpart Emmanuel Macron, in Astana, it became clear that, for Paris, establishing a strong nuclear partnership with the largest Central Asian nation was the top priority with regard to Kazakhstan. The following year, Tokayev flew to Paris for another round of talks with Macron. Reports suggest that nuclear cooperation was once again one of the key topics the two leaders discussed.

On November 4, a day prior to the Macron-Tokayev summit, French and Kazakh officials signed 24 documents on cooperation worth $2 billion. Unsurprisingly, energy was a central focus. Kazakhstan agreed to establish closer ties with two French nuclear giants: Orano and Électricité de France (EDF).

According to Gabidulla Osspankulov, Chairman of the Investment Committee of the Kazakh Foreign Ministry, Orano’s great experience in uranium extraction makes it a key partner for Astana. That is why the former Soviet republic aims to use the company’s technologies and experience in uranium production in Kazakhstan. Ospankulov also expects both Orano and EDF to be part of a consortium that will build the nuclear power plant in the Central Asian country.

Paris, on the other hand, is likely seeks to not only be involved in the construction of the nuclear facility, but also to get Kazakhstan’s spent nuclear fuel for reprocessing. In exchange, Astana – possibly the world’s largest uranium producer – can increase its uranium exports to France. From the French perspective, such an arrangement would be very beneficial, especially after Niger’s military government revoked Orano’s permit to operate at its Imouraren uranium mine – one of the biggest in the world. The problem, however, lies in geography and logistics.

On the eve of the Macron-Tokayev summit, the French train manufacturer Alotom and the Kazakhstan Temir Zholy Electric Locomotive Assembly Plant signed a deal on the supply of 117 French-made freight electric locomotives, weighing up to 9,000 tons, to the former Soviet republic. Will they be used for the transport of Kazakh uranium to France?

Russia and China, as the Central Asian nation’s giant neighbors, could easily, under any pretext, block the transport of Kazakh nuclear materials through their territories to Europe. Rail remains the dominant mode of transport for Kazakhstan’s uranium exports, but its reliance on Russian and Chinese routes poses a strategic challenge for Astana.

To avoid using the two nations’ railways, Astana would have to boost uranium and potentially also spent nuclear fuel exports via the Caspian Sea Route, primarily through the Middle Corridor. It is, therefore, no surprise that modernization of this network remains Kazakhstan’s primary objective. But without reaching a “nuclear deal” with Russia and China, this route could also become problematic, as Kazakhstan risks worsening relations with Moscow and Beijing.

Quite aware of that, Tokayev stated before his trip to France that the first Kazakh nuclear power plant “must be built by an international consortium.” In other words, he likely aims to apply his well-known “multi-vector” foreign policy to the construction of the nuclear facility in Kazakhstan. That, however, does not mean that Astana will hesitate from strengthening economic and energy cooperation with Paris.

As Tokayev wrote in his article for the French Le Figaro newspaper, “after it decided to build the first nuclear power plant, Kazakhstan can support the French nuclear industry while retaining its status as a reliable partner.” That is exactly what France, which recently reached similar arrangements with Serbia – another country Tokayev is expected to visit in the near future – hopes to achieve.

While in Kazakhstan France eyes uranium, in the Balkan nation it aims to get lithium and other raw materials, and potentially to build small modular nuclear reactors. More importantly, Belgrade has recently signed a deal with Paris for the purchase of twelve French-made Rafale jets, although without the Meteor missiles. Interestingly enough, in November 2023, following the summit between Macron and Tokayev in Astana, French media reported that Kazakhstan also eyed Rafale jets.

Indeed, there are similarities between the deals France reached with Serbia and those it hopes to sign with Kazakhstan. But there are significant differences, too. Serbia, unlike Kazakhstan, is not Russia’s ally in the Collective Security Treaty Organization (CSTO), and it does not share a border with the Russian Federation. Also, the Southeast European nation is firmly in the Western geopolitical orbit, which gives Moscow very little room for maneuver there.

Kazakhstan’s proximity to both Russia and China forces the authorities in Astana to maintain a delicate balance, avoiding confrontation with its neighbors while developing closer economic and energy ties with the West. But will Moscow and Beijing view Astana’s nuclear ambitions favorably?

06 Nov 2024

Tajikistan Justice, Central Asia, Home, Tajikistan International Affairs, Tajikistan Local Politics, Tajikistan, Tajikistan Features, Tajikistan Home, Features

Germany Deports Tajik Political Activist Dilmurod Ergashev

November 15, 2024
By Vagit Ismailov

Germany has decided to deport Dilmurod Ergashev, a political activist and member of the Movement for Reforms and Development of Tajikistan, who had applied for asylum in Germany. This is despite requests from international human rights organizations such as Human Rights Watch and the Helsinki Committee not to deport Ergashev because of the risk of him being tortured in Tajikistan.

Friends of the activist said Ergashev was told to report to the deportation center and prepare to leave. The activist, who has lived in Germany for the past 13 years, was detained in the town of Kleve on October 28 and taken to the administrative court, where his deportation was ordered.

According to associates, the court should have considered that another administrative court was still considering Ergashev’s application for political asylum. Sharofiddin Gadoev, leader of the Movement for Reforms and Development, confirmed that the deportation process has already begun. Ergashev is likely to be sent back to Tajikistan on November 6.

“The decision to deport Ergashev strengthens the authoritarian system in Tajikistan and increases fear among political activists,” Gadoev said.

He said there may be an agreement between Germany and Tajikistan to deport activists forcibly. Ergashev’s lawyer has filed an appeal with the Supreme Court but is unavailable for comment.

Dozens of Tajik citizens have moved to Europe in recent years, many of whom disagree with their country’s policies. Germany has previously deported activists such as Abdullo Shamsiddin and Bilol Kurbonaliev, who were sentenced to long prison terms upon their return home. Also extradited from Austria to Tajikistan in 2020 was Hizbullo Shovalizoda, a member of the banned Islamic Renaissance Party of Tajikistan. He has been sentenced to 20 years in prison.

06 Nov 2024

Central Asia, International Affairs, Kyrgyzstan, Kyrgyzstan International Affairs, Business & Economy, Kyrgyzstan Business & Economy, Kyrgyzstan Features

Turkey Writes Off All Foreign Debt to Kyrgyzstan

November 6, 2024
By Vagit Ismailov

Turkish President Recep Tayyip Erdogan has held talks with Kyrgyz President Sadyr Japarov during his state visit to Bishkek. It has became known that Turkey has decided to write off Kyrgyzstan’s remaining debt, which amounted to $58.9 million.

“I express my sincere gratitude to President Erdogan for the decision to write off the debt,” Japarov said at a joint press conference. He also asked the Turkish side to consider customs privileges for Kyrgyz suppliers and to involve Turkish companies in constructing small—and medium-sized hydroelectric power plants in Kyrgyzstan.

Erdogan said the talks resulted in the signing of 19 documents on cooperation, including in trade.

“We discussed steps to increase trade turnover between our countries from $2 billion to $5 billion. Turkish construction companies have implemented more than 90 projects here with a total value of about $1 billion,” he said.

This is not the first time Turkey has forgiven Kyrgyzstan’s debt. In 2011 Ankara wrote off $51m of the country’s foreign debt, accrued over the previous 15 years. According to the Kyrgyz Finance Ministry, by August 2024, the country’s total foreign debt amounted to $4.6 billion.

Erdogan is on a state visit to Kyrgyzstan from November 4-6.

05 Nov 2024

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

Alstom to Supply 117 Locomotives to Kazakhstan

November 5, 2024
By Sergey Kwan

Kazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), Electric Locomotive Assembly Plant, and France’s Alstom have agreed to supply 117 freight electric locomotives by 2028 and establish service centers for them. The document was signed at Paris’s November 4 Kazakhstan-France Business Council meeting.

These powerful electric locomotives, capable of hauling freight trains weighing up to 9,000 tons, will replace the outdated VL-80 locomotives of the 1980 model. The new locomotives’ advantages include lower cost, more economical power consumption, high reliability, and lower maintenance costs.

The French bank Société Générale will provide preferential financing for the purchase of the locomotives.

Kazakhstan’s railways play a strategic role in its economy. The country is a key transit hub for rail cargo transportation along the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, which connects China and Europe.

Today, more than 50% of freight in Kazakhstan is transported by rail.

Kazakhstan Temir Zholy, the country’s national railway company, reported transporting more than 122 million tons of cargo from January to June 2024.