Page 828 – The Times Of Central Asia

18 Mar 2024

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

Astana Projects Attract Qatari, Turkish, Russian Interest

June 27, 2024
By Times of Central Asia

This month foreign investment projects in Astana’s real estate sector have been high on the agenda at meetings at the Investment Headquarters in Kazakhstan’s capital.

One such project is a new medical center to be constructed in collaboration with a Qatari holding company, and with the participation of American cosmetic skin care provider Cynosure. The first stage is set to comprise a medical center for 50 patients with a planned investment of 88 billion tenge (~$196million), and in the second, the Qatari partners intend to invest around 160 billion tenge (~$360 million) in a larger extension.

According to reports, Qatari investors have also committed funds for the construction of branded international schools in Astana. The first, a Sabis school for almost 3,000 pupils and 530 children of preschool age, is scheduled to open in April this year. The second, to be constructed by International Community Schools Ltd, will accommodate 1,225 pupils and 100 pre-school children, involve private investment of 9 billion tenge (~$20 million), and create over 100 jobs.

The Turkish Tiryaki Company discussed investment of up to $200 million in the construction of a wheat processing plant with a capacity of 240,000 tons per year, and Russian e-commerce giants Wildberries and Ozon expressed their readiness to invest up to 90 billion tenge (~$200 million) in constructing large logistics centers in Astana. The Austrian Lasselsberger Group’s plans for investment of over 25 billion tenge (~$55 million) in a plant at Astana’s Industrial Park Number One will produce 100,000 tons of dry construction mixtures per year and create some 200 jobs.

18 Mar 2024

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

Kazakhstan Bans LPG Export and Wheat Import

June 28, 2024
By Times of Central Asia

To prevent shortages in the domestic market, the government of Kazakhstan has extended the ban on export of liquefied petroleum gas (LPG) for six months.

The ban on import of wheat by road, rail, and water has also been extended for another six months in a move to prevent ‘gray schemes’ for the import of wheat into Kazakhstan from Russia and its further re-export. The sole exceptions are rail deliveries to Kazakh flour mills and to poultry enterprises for fodder. In both cases, imported wheat can neither be sold on the domestic market nor re-exported.

The Kazakh government has also announced a five-year extension of anti-dumping measures against manufacturers of bearings from China and electrodes from India to protect its country’s manufacture of similar goods.

18 Mar 2024

Central Asia, Local Politics, Kyrgyzstan, Kyrgyzstan Local Politics, Kyrgyzstan Home

US Helps Kyrgyzstan Prepare for Future Pandemics

June 28, 2024
By Times of Central Asia

A Global Health Security and Pandemic Preparedness Program was launched last week. The joint initiative between the United States, the Kyrgyz Republic, the Food and Agriculture Organization, the World Health Organization, and a consortium of other organizations, aims to improve Kyrgyzstan’s resilience against public health emergencies and coordinates with the United Nation’s ‘One Health’ policy linking human, animal, and environmental health.

As reported by the U.S. Embassy in Bishkek, the program will target seven key areas in Kyrgyzstan: tracking and reducing antimicrobial resistance; monitoring zoonotic diseases transmissible between animals and humans; strengthening national laboratory systems; disease surveillance; building capacity within the healthcare workforce; developing risk communication and community engagement strategies; and bolstering health emergency management.

U.S. Ambassador to the Kyrgyz Republic Lesslie Viguerie stated, “The United States Government ranks global health security among its top five priorities. Today’s event marks the next chapter in our long collaboration for improving Kyrgyz health care. We worked side-by-side during the COVID-19 pandemic and continued to do so in the pandemic recovery phase. We have made tremendous advancements in detecting and treating tuberculosis and HIV/AIDS. Many lives have been saved thanks to the collaborative efforts between our governments. With the timely launch of the National Action Plan for Health Security last year, the Kyrgyz Republic is taking a lead role to prepare its health systems for any future pandemics.”

The Deputy Minister of Health of the Kyrgyz Republic Bubuzhan Arykbaeva further endorsed the initiative saying, “We are confident that with USAID funding this program will play a critical role in supporting key technical areas of the National Action Plan for Health Security. The implementation of the Global Health Security program in the Kyrgyz Republic will allow our country to create a more stable foundation for future response to threats in the field of public health.”

18 Mar 2024

Central Asia, Kazakhstan, Business & Economy, Kazakhstan Business & Economy

EBRD Supports Expansion of Kazakhstan’s Salt Production

June 28, 2024
By Times of Central Asia

The European Bank for Reconstruction and Development (EBRD) has provided a convertible loan of up to KZT 5.5 billion (€11 million) to Araltuz, a leading Kazakhstan-based producer of table and low-grade industrial salt in Central Asia.

The funds will be lodged with Salt Industry Ltd., a joint-stock company operating under the jurisdiction of the Astana International Financial Centre and a holding company of Araltuz.

The loan will enhance the company’s investment program and support construction of new manufacturing facilities for Kazakhstan’s production of vacuum salt, also known as evaporated or culinary salt.

It will also help Araltuz diversify and expand exportation to Europe, the Middle East and China, and implement a corporate governance action plan.

With more than €10.1 billion invested in the country to date through 320 projects, Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.

16 Mar 2024

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

Potential Impact of EU Carbon Tax on Kazakhstan’s Industries

October 8, 2024
By Times of Central Asia

From 2026, transboundary carbon regulations will be imposed on European Union countries. The introduction of a new EU carbon tax will also affect export of products from Kazakhstan .

After the transition period, which began on January 1st 2024 and will run until the end of 2026, payment will be increased on emissions.

Following discussions at a seminar for Kazakhstan’s industrial exporters on March 15th, the Kazakh Ministry of Trade and Integration reported that the new legislation will affect six industrial sectors including the production of ferrous metals and aluminum, cement, fertilizers, hydrogen, and electricity.

Nurlan Kulbatyrov, Deputy Director General of QazTrade JSC stated that since Kazakhstan has an Enhanced Partnership and Cooperation Agreement with the EU, the country will be impacted by both the EU Green Deal and carbon border adjustment tax. To prepare for the changes, he reported that since last year, QazTrade, in collaboration with the Ministry of Trade and Integration, has been conducting awareness-raising activities on carbon taxation for export-oriented companies.

An expert from the European Commission explained that cross-border regulation will mainly affect sectors associated with iron, steel and aluminum, which accounted for between 0.8 – 0.9% of Kazakhstan’s total exports to the EU in 2022. EU countries currently account for 39% of Kazakhstan’s exports, including oil, petroleum products, ferroalloys, coal, uranium and wheat. In 2023, Kazakhstan exported goods valued at $41.4 billion to the EU, including $388 million worth of carbon-intensive products.

In the first phase, industrial enterprises will be required to submit quarterly reports to the European Commission comprising data on export volumes, greenhouse gas emissions connected to production and quotas used. After 2025, carbon regulation will come into force, and free quotas gradually levelled out. Charges will initially target direct emissions, but could later be extended to other sectors with risks of carbon leakage, such as oil refineries and chemical plants.

Ainur Amirbekova, Director of the International Integration Department of QazTrade JSC, added that the introduction of a carbon tax by EU countries will inevitably affect the cost of Kazakhstan’s exports, and thus heighten competition. Since rising prices could potentially close markets for particular goods, Kazakh enterprises have been forewarned to address both decarbonization and the transition to alternative technologies as soon as possible.

16 Mar 2024

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

Kazakhstan and Uzbekistan Set to Increase Trade

June 28, 2024
By Times of Central Asia

On March 15th, Kazakh Prime Minister Olzhas Bektenov and Uzbek President Shavkat Mirziyoyev and Prime Minister Abdulla Aripov met in Uzbekistan to discuss the expansion of Uzbek-Kazakh cooperation to increase the volume of mutual trade.

The key sectors in the strategic partnership include industry, transport, and logistics and last year, trade turnover between Kazakhstan and Uzbekistan amounted to $4.5 billion.

Negotiations with the Prime Minister of Uzbekistan Abdulla Aripov focused on measures to increase trade, investment, water, energy, transit, transport, and cultural cooperation, as well as strengthening interaction in the field of agriculture.

The Kazakh prime minister placed emphasis on the need to increase the region’s potential regarding transit and transport as well as the use of water. He also announced Kazakhstan’s readiness to expand export to Uzbekistan through the addition of 255 commodities in the amount of almost $500 million.

Both parties noted significant progress in the industrial sector which has led to the implementation of 60 projects worth $2.6 billion and the creation of over 13,000 jobs.