@knews.kg

Kyrgyzstan Pays Russia $64 million for Stake in the Eurasian Development Bank

Kyrgyzstan has paid $64.7 million to Russia for a stake in the Eurasian Development Bank (EDB), according to Akchabar.

 Kyrgyzstan currently owns 4.23% of shares in the EDB. The country’s share increased from 0.01% in 2023 after the redistribution of part of Russia’s stake, which amounted to 321,151 shares in the bank’s paid-up authorized capital.

A decision to reallocate the shares was made by the EDB’s Board of Directors on December 30, 2022. Following the distribution of securities in 2023,  Kyrgyzstan’s share in monetary terms, increased from $700 thousand to $64.7 million.

In its report on the transaction, EDB stated: “On May 19, 2023, an agreement was made between the Government of Russia and the Cabinet of Ministers of Kyrgyzstan on the sale and purchase of part of Russia’s share in the paid-in authorized capital of EDB.  Signed on March 21, 2023, it came into force and Russia’s share of $64 million was transferred to Kyrgyzstan. EDB does not participate in settlements between Russia and Kyrgyzstan on the transferred share in the bank’s capital.”

It is important to note that today, Kyrgyzstan’s share in the authorized capital of the EDB is almost entirely paid up. The republic has only $600 thousand in liabilities, payable in case of a bank claim. A similar situation has also been observed in Armenia.

Tajikistan has paid 97% ($64.5 million) of its authorized capital to EDB, Belarus—just over 59%, and Russia and Kazakhstan, the largest shareholders of the international institution, about 16% ($678.8 million) and 24% ($565.2 million), respectively.

At the end of 2023, the authorized capital of the Eurasian Development Bank amounted to seven million common shares with a par value of $1 thousand each. Each paid-up share carries a right to vote.

Bishkek Unrest May 17th; image: TCA, Aleksandr Potolitsyn

Mass Brawl Between Citizens of Pakistan and Bangladesh Reported in Bishkek

Bishkek police have detained 36 foreigners after a mass brawl, as reported by the Ministry of Internal Affairs of the Kyrgyz Republic. According to law enforcement, on June 11th, a mass brawl was reported between Pakistani and Bangladeshi citizens after a verbal altercation, following which participants involved in the scuffle were taken to a police station to clarify the incident’s circumstances. Administrative protocols were drawn up for 16 foreigners who violated the rules of residence in Kyrgyzstan. One of the participants in the brawl was found guilty under the article “Petty Hooliganism.” The court fined him 5,500 KGS ($60). Two more people were arrested for three days for being in a state of alcoholic intoxication.

TCA previously reported that on May 17th, riots occurred in the capital of Kyrgyzstan, provoked by a conflict between residents and medical students from abroad. Since these tragic events, the authorities have been employing a dual approach of attempting to sooth relations abroad whilst conducting raids on places where foreigners reside.

@tmrl.gov.tm

Indian Companies Interested in Turkmenistan’s Seaport

Issues concerning the establishment of cooperation in the field of maritime transportation, as well as the possibility of cargo transit through Turkmenbashi International Sea Port, were recently discussed by representatives of the Agency Turkmendenizdaryaollary with the Ambassador of the Republic of India in Turkmenistan, according the Agency’s website reports

During the meeting, the excellent potential for cargo transit offered by the Turkmenbashi port, which occupies a crucial location in the North-South transport corridor, was noted and encouraged a proposal by  representatives of “Turkmendenizdaryaollarya” to assist the Indian side in establishing an exchange of expertise in port management.

In its summary of the meeting, the report stated,  “The Indian Ambassador said that more than 30 Indian companies are interested in visiting Turkmenistan and familiarizing themselves with the opportunities of Turkmenbashi port. Following the meeting, the parties agreed to make every effort to develop cooperation in maritime transportation.”

@TJL

Virtual Standstill in Tajikistan’s Baljuvan Oil Production

Production of oil and gas in the Baljuvan district in the southern mountains of Tajikistan, has virtually ceased.

It previously  provided natural gas to the neighbouring districts of Khovaling, Vosei, and Kulyab,

According to the authorities, oil reserves in the area of Khatlon Oblast have all but disappeared.  Baljuvan’s oil wells currently reach a depth of 2,400 meters and for production to continue, wells must now be drilled to a depth of up to 6,000 meters .

Referencing  the situation, district chairman Bakhtiyor Safarzoda said, “Unfortunately, the same volume of oil is not being produced today as it was under the Union. The equipment here is already physically obsolete and worn out.”

Attempts to attract foreign investment in oil production in Baljuvan have now been ongoing for several years and a visit by Chinese investors to the wells two years ago, came to nought.

According to the chairman of the Baljuwan district, foreign companies which initially agreed to develop new oil wells, reversed their decision after familiarizing themselves with the field, its characteristics, and forecasts.

It should be noted that Tajikistan’s proven reserves of oil raw materials are insignificant, amounting to 2.2 million tons, and the country’s registered oil fields amount to just 28.

@afk.kz

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.

Image: ice.gov

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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