Page 786 – The Times Of Central Asia

10 Apr 2024

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

Tokayev Signs Off on New Business Rules for Kazakhstan

June 28, 2024
By Times of Central Asia

Kazakhstan’s president Kassym-Jomart Tokayev has signed a law on the creation of new rules for the country’s business sectors.

The move is designed not only to streamline forms of state control and supervision over business, but also to improve the general conditions for entrepreneurship in the country. “Our goal is to create more favorable conditions for the development of business in the country,” the Akorda press service said, outlining some key points of the new law. At the sectoral level, the amendments lay out mechanisms that will facilitate rapid response, investigations and preventive control procedures without any physical presence at inspection sites.

The changes apply to various business areas:

– Fisheries: it will now be possible to open aquaculture facilities on promising land plots intended for agriculture;

– Plant quarantine: the administrative burden on the movement of regulated products is significantly reduced with the cancellation of quarantine certificates;

– Industry: manufacturing enterprises will receive support in the form of supply of domestic raw materials;

– Oil & gas industry: requirements have been clarified regarding documents confirming the origin of refined oil products;

– Financial markets: procedures for business interaction with banks will become more simplified; and,

– Registration of legal entities: the processes of registration and re-registration of legal entities and their branches are being converted to electronic format, which will make the receipt of state services more accessible and transparent.

The purpose of these changes is not only to facilitate the process of doing business, but also to balance the interests of consumers, entrepreneurs and the state. This direction is part of a strategy to promote entrepreneurship in Kazakhstan — which confirms the desire to improve the business environment and stimulate economic growth outside of the extractive industries.

10 Apr 2024

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

Russia Reportedly Asks Kazakhstan for Extra Gasoline Amid Shortage From Drone Strikes

June 28, 2024
By Times of Central Asia

According to Reuters, Russia has asked Kazakhstan for 100,000 tons of gasoline, as Russian gasoline wholesalers hedge against possible fuel shortages due to Ukrainian drone attacks on Russian oil refineries. Reuters cited three people familiar with the matter.

“Sources say Moscow has asked Kazakhstan to stockpile an emergency reserve of 100,000 tonnes of petrol for deliveries to Russia. Arrangements have already been made to provide Kazakh petrol to Russia. Belarus is also ready to help the neighbouring country with fuel,” it reports.

However, Kazakhstan’s Ministry of Energy, through energy minister Shyngys Ilyasov, has not confirmed this information.

Due to Ukrainian drone attacks on Russian refineries in early 2024, output of oil products in Russia fell by almost 14%. The drone strikes hit notable refineries such as Rosneft’s Ryazan and Novokuibyshevsk complexes and Tatneft’s Taneko refinery. The authorities claim that there is no fuel shortage on the Russian domestic market and that there is enough gasoline in stock. Nevertheless, Russia has introduced a temporary restriction on the export of fuel outside the country — except to countries of the Eurasian Economic Union (EAEU).

According to Reuters estimates, as of April 5, Russia’s AI-92 gasoline reserves amount to 307,700 tons, AI-95 reserves were 58,000 tons, and diesel reserves were 435,300 tons.

Meanwhile, since the beginning of this year, in Kazakhstan has stopped 171 cases of illegal export of oil products, as reported by the State Revenue Committee. Thousands of liters of Kazakhstan’s subsidized gasoline were intended to be exported outside the country. Most of the shadow-economy exports were found at the Kazakh-Russian border. Currently, Kazakhstan has a ban on the export of certain types of petroleum products.

10 Apr 2024

Central Asia, Life & Culture, Kyrgyzstan, Kyrgyzstan Local Politics

Kyrgyzstan Continues to Combat Drug Shortages

June 28, 2024
By Times of Central Asia

Health Minister of the Kyrgyz Republic, Alymkadyr Beishenaliyev has told local media that hospitals are 70-80% stocked with medicines, with hospitals in the Issyk-Kul region suffering the worst from short supplies.
“There is a list of vital medicines, which we provide 100%. But doctors prescribe drugs which I, a medic, have never heard of; these are scarce drugs. Doctors used to get bonuses from private pharmacies [for prescribing them] – we are fighting this and it is impossible to change it in a short time,” Beishenaliyev said.

Kyrgyzstan’s medical trade union reported that the country’s hospitals lacked basic medicines and basic drugs. As of today, 290 medical organizations have applied for the necessary drugs, but are yet to receive them. Earlier this week, the Times of Central Asia reported about the difficult situation concerning the availability of drugs.

Minister Beishenaliyev emphasized that the government is working to ensure hospitals have all the necessary drugs for the second quarter of 2024, promising that the problem would be resolved by 15 April.

However, the head of Kyrgyzstan’s medical trade union, Bermet Baryktabasova, criticized the statement made by the minister, saying that antibiotics, hormones, diuretics, anti-epileptic, psychotropic, cardiac and anti-asthma drugs are needed every day. It’s medically advisable to have a three-month supply on hand, she said, adding that intensive care units need these drugs every minute, not next quarter.

This year, to ensure timely and quality medical care, the Compulsory Medical Insurance Fund (CMIF) allocated 443.7 million sum ($5 million) for the purchase of medicines and medical devices.

10 Apr 2024

Central Asia, Environment, Home, Kazakhstan Environment, Uzbekistan, Turkmenistan, Tajikistan, Kyrgyzstan, Kazakhstan, Features, Kazakhstan Featurees

No Central Asian Country Can Cope With Floods, Droughts On Its Own, Expert Tells TCA

June 28, 2024
By Times of Central Asia

Lack of funds, the predominantly commodity-based nature of their economies, and the inability to reach agreement at a national level make the Central Asian republics vulnerable to natural disasters, Dr. Petr Svoik, Ph.D, a Kazakhstani economist and former head of the Anti=monopoly Policy Committee has told the Times of Central Asia.

Between Low Water and Flood

Last year was marked by a drought in Kazakhstan, and at a critical moment for farmers, neighboring Kyrgyzstan stopped supplying water from the Kirov reservoir to the Zhambyl region, with the Kyrgyz authorities explaining that they were forced to cut off the water supply because of a severe shortage of water resources in the Chu and Talas Rivers for their own agricultural producers.

Additionally in 2023, experts stated that the entire Eurasian region is entering a period of low water levels, which means agricultural and livestock sectors are threatened with permanent damage from drought. For Kazakhstan, the water problem is particularly acute, as many of the main water arteries are trans-boundary. This is true not only of the southern regions, but also along the Caspian Sea, which is supplied by Russia’s Volga River, and the regions dependent on the Ural River in northwest Kazakhstan, which are at risk of drying up.

However, the spring of 2024 has been marked by historic flooding. As of today, according to Kazakhstan’s Ministry of Emergency Situations, ten regions of Kazakhstan are subject to flooding, with even multi-story buildings flooded in the regional centers of Kostanay, Aktobe and Atyrau. In a few days, according to the Ministry of Emergency Situations, a “wave” from Russia, where the major cities of Orsk and Orenburg are in danger, will come to Kazakhstan. Such a natural disaster hasn’t happened in about 80 years, President Tokayev said.

Drought and floods carry extraordinary costs, not to mention social damage. Every year, Kazakhstani villagers claim they are on the brink of ruin, and the state budget allocates significant funds to support them. As for floods, according to the World Bank, more than 1.1 million people have been affected in the five Central Asian states alone since the collapse of the Soviet Union. Each year, natural disasters in the region cause more than $10 billion in losses and affect the lives of nearly 3 million people.

In Kazakhstan alone, 1.5 million people are at risk from river overflows, according to the Ministry of Emergency Situations. The country has allocated 7 billion tenge ($15.653 billion) for flood control in 2024 – but these funds are inadequate.

Political and Economic Losses

According to Petr Svoik, floods represent reputational losses for the authorities. The population loses property and faith in the authorities’ ability to do something. Moreover, floods by definition have a high degree of predictability because of meteorological forecasts. “What is the problem of predicting the volume of water discharge in a couple of weeks, taking into account which reservoirs will overflow, and which ones need to be strengthened? For some reason, the authorities do not use elementary meteorological data,” Svoik told TCA.

According to Svoik, flood control measures require serious costs, which the republic is unable to bear. “We need strong hydraulic structures, and dams at least 1.5 meters above the limit level. And not just earthen dams, but at least partially reinforced ones. Unfortunately, the post-Soviet economies are not able to provide the necessary level of financing, as too many resources are transferred abroad. The government realistically does not have the required funds. The plundering of money is the second reason,” Svoik emphasized. Similar problems exist in the sphere of industrialization in general, he believes.

A Regulator Is Needed

The situation is complicated by the fact that almost all of the major rivers in Central Asia are over-dammed and under collective use. Thus, no single country can provide full protection against droughts and floods, with each country dependent on its neighbors in the region – which for Kazakhstan includes Russia.

“Collective action in a supranational format is possible only through a formal association, in which there is a defined executive body with the competence to make decisions approved by all participants. In Soviet times, the hydro-technical sector was managed in a centralized manner, and issues of water, electricity, gas supply, and transport were likewise solved in this manner. This allowed for situations where one republic cuts off water to another or floods territories to be avoided. Now, it’s practically impossible for Kazakhstan and Kyrgyzstan to come to an agreement; each has its own truth. When an acute issue arises, two deputy prime ministers meet and resolve it in fire-fighting mode. But strategically it’s impossible to resolve anything, although the presidents of the Central Asian countries regularly communicate and try to cooperate,” Svoik told TCA.

According to Svoik, there are actually no supranational structures capable of regulating water problems. “There is only one interstate structure – the Supreme Eurasian Economic Council – where ministers of the Eurasian Economic Union (EAEU) countries can, among other things, make decisions regarding water resources, but these decisions are made by consensus. There is no center that adopts arbitration and final order. That is, this body cannot resolve a water dispute between, say, Kazakhstan and Kyrgyzstan, and there is no economic effect,” the expert emphasized.

Under the current circumstances, Dr. Svoik pointed out, when Russia is unable to cope with its own terrible floods, it cannot serve as an authority in water regulation issues; besides, its main resources are spent on [its vision of the] new world order. Therefore, taking into account the forthcoming climatic crises, in particular the increase in the average air temperature in the Central Asian region, in the future we are expecting more financial and social shocks associated with rampant natural disasters.

“The higher the deterioration of hydraulic structures, the greater the threat. It is important to understand that there cannot be a separate Kyrgyz, Kazakh, Uzbek or Russian solution to the current situation. There must be a center to which the participants will delegate the authority to ensure water and energy security,” Svoik concluded.

10 Apr 2024

Central Asia, Kyrgyzstan Justice, Home, Justice, Kyrgyzstan, Features, Kyrgyzstan Features

Kyrgyzstan Court Moves Four Journalists from Prison to House Arrest

June 27, 2024
By Times of Central Asia

BISHKEK, Kyrgyzstan – Four journalists in Kyrgyzstan who were jailed in January on suspicion of inciting mass unrest have been moved to house arrest, while four others accused in the same case remain in pretrial detention.

A district court in Bishkek ordered the release on Tuesday of the former employees of Temirov Live, which supporters say is being targeted by the government because of its reports – some on YouTube – on alleged corruption involving senior officials. Police concluded that Temirov Live reports “contain signs of calls for mass chaos,” according to media outlet Politklinika.

The four journalists transferred from jail to house arrest are Tynystan Asypbekov, Saipidin Sultanaliev, Joodar Buzumov, and Maksat Tajibek uulu.

Those still in jail are Temirov Live director Makhabat Tajibek kyzy; two other journalists with the outlet, Aike Beishekeyeva and Azamat Ishenbekov, and a former Temirov Live journalist, Aktilek Kaparov.

A total of 11 former and current Temirov Live workers face charges in the case that could send them to jail for years if they are convicted. Free speech advocates say the prosecution is part of an increasingly restrictive rollback from a time when media enjoyed relative freedom in Kyrgyzstan.

The conditions of the journalists still in prison came under further scrutiny this past weekend when Makhabat Tajibek kyzy, the Temirov Live director, alleged that she and other detainees not involved in her case were beaten. Authorities deny the allegation.

10 Apr 2024

Central Asia, Opinion Head, Home

The New Silk Road

June 27, 2024
By Times of Central Asia

In light of the current geopolitical situation in the world, many countries are puzzled by the search for new alternative transport routes. One of these is the Trans-Caspian International Transport Route (TITR), which runs through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and further to Turkey and European countries.

New transport corridors through which goods and raw materials can be exported by all modes of transport are a vital task for many countries, today. Such routes must first of all be safe, beneficial to all partners, and economically feasible. The TITR, or the “Middle Corridor”, as it is also called, falls into these criteria. It was conceived more than ten years ago and began operating in 2017. In recent years, this route has been experiencing a new round of development, and this is not surprising since it connects East and West whilst bypassing Russia.

Today, this is a flagship cooperation project for many states. This transport artery, connecting China, Central Asia and Europe, can become a continental bridge of the Belt and Road, halving the time of cargo transportation and significantly reducing transport costs.

The route encompasses 11,000 km of rail, and includes ten seaports. It originates in China at the port of Lianyungang, passing through Xi’an to Urumqi, through Kazakhstan – from the dry ports of Khorgos and Dostyk – to the ports of Aktau and Kuryk, the Azerbaijan (port of Alyat), Georgia (Tbilisi), and then through the Black Sea it continues onto Europe.

It is noteworthy that this route is multimodal, that is, rail, sea and road transport can be used. The current capacity of the Trans-Caspian international transport route is 6 million tons per year. By 2025, it is planned to reach a level of 10 million tons per year. So, the potential is great.

Assessing all possibilities, interested states intend to invest financial resources in the further development of this corridor and the expansion of its port and railway infrastructure, which will have a positive impact on the quality of services provided and reduce transportation times. Each side – China, Turkey, Azerbaijan and Kazakhstan – has its own benefit, and these countries have something to offer each other in much larger volumes than the current supplies. China intends to develop its western provinces, providing them with access to regional markets. Azerbaijan sees an opportunity to strengthen its transit role and become the largest transport hub. Türkiye, in turn, continues to extend its influence in Azerbaijan and Central Asia.

As for Kazakhstan, there are fears that attacks by the Ukrainian Army on Russian oil refineries could lead to a blockage of the Caspian Pipeline Consortium (CPC), which supplies Kazakh oil to international markets. In this regard, a huge amount of work is being done to diversify, and the Trans-Caspian International Transport Route comes in handy here. The Kazakh company, KazMunaiGas has already purchased tankers, and there are agreements with Azerbaijan on access to the Baku-Supsa and Baku-Tbilisi-Ceyhan pipelines, through which Kazakhstan can transport about 2 million tons of oil.

But the fundamental purpose of transit along the TITR is an opportunity for all participants to enhance their advantageous geostrategic location. EU countries are extremely interested in the development of this corridor, since it can facilitate the delivery of goods from China, bypassing Russia, and transportation time will be halved.

During the recent March meeting of the Business Council as part of the state visit of Kazakh President Tokayev to Baku, it was noted that in January 2024, the volume of cargo transportation along the Trans-Caspian route increased 2.5 times compared to the previous year. At the same time, the transit of Chinese containers has tripled.

The geography of the route is constantly expanding; the membership of the Association has increased to 25 companies and is already represented by 11 countries.

In their recent study, “Medium Trade and Transport Corridor,” World Bank specialists came to the conclusion that from a trade and economic point of view, the TITR primarily allows diversifying trade routes and improving transport accessibility for Azerbaijan, Georgia and Kazakhstan. World Bank analysts predict that in a scenario that involves increasing the operational efficiency of the Middle Corridor, it is expected that by 2030 the volume of transportation through the Caspian Sea will triple compared to 2021 and amount to 11 million tons. According to them, about 4 million tons will be driven by the projected demand for container shipping.

According to the European Bank for Reconstruction and Development, the potential of the corridor could be increased to 26 million tons by 2040, but this will require investment by Central Asian countries in the infrastructure around the route in the amount of 18.5 billion euros.

Following negotiations with the Asian Development Bank, agreements were reached on the allocation of a grant for the development of a strategy for the further development of the TITR route in 2024.

In essence, the Trans-Caspian International Transport Route is a revival of the Great Silk Road in modern realities, including such a relevant component as the “Digital Silk Road.” This large-scale project of laying a fiber-optic communication line along the bottom of the Caspian Sea will provide for the creation of a new digital telecommunications corridor between Europe and Asia.

Raza Syed is journalist of Pakistani-descent based in the U.K. with over three decades of international experience; his expertise span several countries, with a particular focus on Central and South Asia.