Page 565 – The Times Of Central Asia

13 Jan 2025

Central Asia, Home, Kyrgyzstan, Business & Economy, Kyrgyzstan Business & Economy, Features, Kyrgyzstan Features

The National Bank of Kyrgyzstan Seeks Greater Control Over Commercial Banks

January 13, 2025
By Anton Chipegin

The National Bank of the Kyrgyz Republic (NBKR) has proposed a draft law aimed at regulating tariffs and commissions for banking and payment services provided by commercial banks. The proposal has been published for public discussion on the official government portal Koomtalkuu.

The NBKR argues that the regulation is necessary to improve the accessibility of banking services for Kyrgyz citizens. While the current system of free pricing for banking services fosters competition, encourages better customer service and allows for economic flexibility, the regulator is concerned that it also creates barriers for certain segments of the population.

“Under competition, some financial organizations may use hidden fees or complex tariff structures, which make it difficult for customers to understand the true cost of services. This also complicates the ability to compare offers and select the most favorable option,” the bill’s background brief states.

The National Bank told The Times of Central Asia that interest rates on loans from banks and microfinance institutions in Kyrgyzstan can reach 33–34% per annum. Such high rates significantly increase the financial strain on citizens, reducing the availability of credit.

“High tariffs also increase financial burdens on businesses, driving up operational costs. This can lead to higher prices for goods and services, dampened business activity, and reduced consumer demand. In turn, this creates additional risks for banks and the economy as a whole,” the NBKR explained.

The central bank also expressed concerns about the potential for market abuse by large financial players. It noted that dominant institutions could inflate fees to suppress competition, discouraging innovation and slowing the development of more affordable financial products.

The NBKR argues that Kyrgyzstan needs fair, transparent, and economically justified tariffs for banking services to mitigate these issues. The regulator believes such measures would reduce financial strain on consumers and businesses while fostering a more competitive and innovative banking sector.

As of October 1, 2024, Kyrgyzstan’s financial sector comprised:

21 banks;
194 non-bank financial and credit institutions;
3 credit bureaus;
1 guarantee fund;
41 payment organizations; and
40 payment system operators.

This diverse and growing financial ecosystem underscores the importance of effective regulation to ensure broad accessibility and equitable practices in the banking sector.

13 Jan 2025

Central Asia, Home, Life & Culture, Kazakhstan Life & Culture, Kazakhstan

NASA Discovers ‘Ghost’ Island in the Caspian Sea

January 13, 2025
By Times of Central Asia

NASA satellites have detected a fascinating phenomenon in the Caspian Sea: the temporary formation of an island following the eruption of the Kumani mud volcano. According to data from NASA’s Earth Observatory, the island emerged in early 2023 but had almost completely disappeared by the end of 2024, earning it the nickname “ghost island.”

The island was first observed using Landsat 8 and 9 satellite imagery in January 2023, shortly after the volcano erupted. It measured up to 400 meters wide and was accompanied by a visible sedimentary plume extending from its surface. However, by late 2024, the island had diminished significantly, leaving only faint traces of its existence.

The Kumani mud volcano, located 25 kilometers off the eastern coast of Azerbaijan, is no stranger to such occurrences. Since its first recorded eruption in 1861, the volcano has periodically created temporary islands, which vanish after short periods. Mud volcanoes like Kumani are common in regions with active tectonic activity. They eject high-pressure mixtures of water, gas, and sediment, forming landmasses that are often unstable and short-lived.

The Caspian region is notable for its high concentration of mud volcanoes, with more than 300 such formations in Azerbaijan and on the Caspian Sea shelf. Many of these volcanoes emit combustible gases, particularly methane, which has drawn the interest of scientists and geologists. The connection between these mud volcanoes and the hydrocarbon systems of the South Caspian Basin makes them critical subjects for research.

The emergence and disappearance of this “ghost” island in the Caspian Sea highlight how much remains to be understood about mud volcanoes. These transient landforms demonstrate the dynamic forces of nature and underscore the need for further exploration of geological processes occurring on the seafloor.

13 Jan 2025

Kyrgyzstan Justice, Home, Justice, Kyrgyzstan, Features, Kyrgyzstan Features

Former Kyrgyz Presidential Aide Detained in Moldova

January 14, 2025
By Vagit Ismailov

Aidar Khalikov, a former public aide to the president of Kyrgyzstan, has been detained in Moldova under an Interpol warrant on charges of large-scale fraud.

Investigative journalist Bolot Temirov was the first to report Khalikov’s detention, raising the possibility of his extradition to Kyrgyzstan. The report was later confirmed by the General Inspectorate for Migration under Moldova’s Ministry of Internal Affairs. According to their statement, the detention was carried out as part of efforts to locate individuals wanted internationally for evading criminal responsibility.

Charges Against Khalikov

The Kyrgyz Ministry of Internal Affairs stated that Khalikov, born in 1965, is being prosecuted under Article 209 of the Kyrgyz Criminal Code, which pertains to fraud. He is accused of stealing a significant sum of money from a Kyrgyz citizen identified solely as S.D. Investigators suspect Khalikov may also be involved in other similar crimes. The General Prosecutor’s Office of Kyrgyzstan is now working on his extradition.

Background

Khalikov was a prominent member of the “Mekenchil” party and played an active role in Kyrgyzstan’s political landscape, particularly during the political upheavals of 2020. Following those events, he was appointed as an aide to President Sadyr Japarov. However, in 2024, Khalikov left Kyrgyzstan and began publicly criticizing Japarov and his inner circle.

Khalikov’s arrest in Moldova underscores ongoing efforts by the Kyrgyz authorities to track and prosecute high-profile individuals facing criminal charges. His extradition process will likely attract significant attention in both Kyrgyzstan and Moldova in the coming weeks.

13 Jan 2025

Home, Environment, Kazakhstan Environment, Kazakhstan

Differentiated Tariffs Lead to Significant Drop in Water Consumption Across Kazakhstan

February 4, 2025
By Dmitry Pokidaev

Water consumption has significantly decreased in eleven regions of Kazakhstan following the implementation of differentiated tariffs for water supply in 2024.

The new tariff system, introduced at the start of last year, applies an increasing coefficient based on the principle of “the more you consume, the more you pay.” The system features four levels of tariffs for individuals:

Up to 3 cubic meters per month: Consumers continue to pay the original tariff, which varies by region but averaged 82.66 KZT ($0.16) per cubic meter nationwide when the system was introduced. This group accounts for 49% of the population in the eleven regions.
3 to 5 cubic meters per month: A 20% increase in the tariff applies, covering 20% of the population.
5 to 10 cubic meters per month: The tariff rises by 50%, affecting another 20% of the population.
Over 10 cubic meters per month: The tariff doubles, impacting 11% of the population.

The introduction of these “social norms of consumption” has led to an average water savings of 1.65 million cubic meters per month in six regions — Akmola, Aktobe, Turkestan, Ulytau oblasts, and the cities of Almaty and Shymkent.

According to official data, the average monthly water consumption in these regions dropped from 21.1 million cubic meters to 19.5 million cubic meters after the implementation of the new tariff system. As of December 1, 2024, the “social consumption norms” were extended to the Zhambyl region, with plans to roll out the system in Mangistau, East Kazakhstan, West Kazakhstan, and North Kazakhstan regions in 2025.

“Additional funds generated from increased tariffs for high-consumption users will be directed toward the modernization and reconstruction of water supply and wastewater infrastructure,” stated the press service of the anti-monopoly committee. These investments aim to improve service quality and enhance the sustainability of the water supply system. The Ministry of the National Economy estimates the additional revenue from the tariff increases at approximately 13 billion KZT (around $25 million) annually.

Previously, The Times of Central Asia reported that nearly 10 million people, or 14% of Central Asia’s population, lack reliable access to safe drinking water. The Eurasian Development Bank (EDB) has estimated that addressing this issue will require over $12 billion between 2025 and 2030, or roughly $2 billion per year.

13 Jan 2025

Home, Environment, Uzbekistan Environment, Uzbekistan

Uzbekistan to Launch “Eco-Active Citizen” Project for a Greener Future

January 13, 2025
By Sadokat Jalolova

The Ministry of Ecology, Environmental Protection, and Climate Change of Uzbekistan, in collaboration with the Ministry of Digital Technologies, has announced plans to launch the “Eco-Active Citizen” project by June 1, 2025.

This initiative is part of the nationwide “One Million Green Families” movement and integrates with the “Healthy Lifestyle” platform. It is outlined in the draft Presidential Decree “On the State Program for the Implementation of the Strategy ‘Uzbekistan – 2030,’” which places significant emphasis on environmental protection and fostering a “green economy.”

The project seeks to promote an ecological lifestyle and enhance environmental awareness among the population. Citizens will be encouraged to take actions such as planting trees, using public transportation, walking 10,000 steps daily, reducing waste, and transitioning to electric vehicles. Additional recommended measures include installing solar panels, utilizing energy-saving materials, and conserving electricity, gas, and water. Active participation in public environmental activities will also be key.

Participants in the “Eco-Active Citizen” program will qualify for public service discounts, lower interest rates on consumer loans, and may even receive environmentally friendly vehicles such as bicycles or scooters. Families in which all members achieve “eco-active” status will be recognized as “Green Families” and will have the opportunity to participate in an annual lottery to win an electric car.

Neighborhoods (mahallas) with over 50% of households classified as “Green Families” will earn the title of “Green Neighborhoods” and will receive additional environmental benefits, such as designated waste collection sites, tree planting initiatives, and green public parks. Cities or villages with more than 50% “Green Neighborhoods” will be officially recognized as “Green Cities,” “Green Villages,” or “Green Auls” (fortified villages).

The Ministry of Ecology underscored the environmental impact of individual actions. For instance, one car emits an estimated 4.6 tons of carbon dioxide annually, whilst walking 10,000 steps per day can prevent up to 1.5 tons of waste. Additionally, conserving 100 cubic meters of natural gas can prevent 2 tons of carbon dioxide emissions. These efforts aim to establish sustainable “green cities” while promoting environmentally responsible tourism.

In a related development, The Times of Central Asia previously reported that Uzbekistan is preparing a draft national program to reduce plastic pollution for 2025-2027.

13 Jan 2025

Central Asia, Uzbekistan, Justice, Uzbekistan Justice

Uzbek Businessman Salim Abduvaliyev Released from Prison Due to Illness

January 13, 2025
By Sadokat Jalolova

Salim Abduvaliyev, a well-known Uzbek businessman commonly referred to as “Salimboy,” was released from prison on January 12 due to health complications. According to Kun.uz, Abduvaliyev has been battling a serious illness for an extended period.

Born in Tashkent in 1950, Abduvaliyev was previously active in Uzbekistan’s sports administration, serving as deputy chairman of the National Olympic Committee and chairman of the Uzbekistan Sports Wrestling Association.

Abduvaliyev was detained in early December 2023 on charges of illegal possession of firearms. On March 19, 2024, the Mirabad District Court of Tashkent City found him guilty under Article 248, Paragraph 2 of Uzbekistan’s Criminal Code, which pertains to the illegal possession of firearms, ammunition, and explosives. He was sentenced to six years in prison.

His release this week was granted under Article 75 of the Criminal Code, which allows for the early release of prisoners suffering from severe illnesses that make it impossible for them to serve their sentences.

While serving his sentence in August 2024, the State Committee for National Security of Kyrgyzstan issued an arrest warrant against Abduvaliyev. Reports alleged that he had financed an organized criminal group led by Kamchybek Kolbaev. Kolbaev, a notorious figure linked to heroin trafficking and a member of the international criminal network known as the “Brothers’ Circle” (Bratva), was a wanted individual by the U.S. Department of State. Kolbaev was killed during a security operation in Bishkek in October 2023 at the age of 49.