Page 902 – The Times Of Central Asia

16 Jan 2024

Kazakhstan, Kazakhstan Business & Economy, Kazakhstan Featurees

Dodo Brands joins growing list of companies moving HQs to Kazakhstan

September 25, 2024
By Times of Central Asia

The head office of Dodo Brands Pizzerias will move from the British Virgin Islands to Astana, Kazakhstan. The CFO of the large chain recently announced the decision in a telegram channel.

“Today we would like to share with you the news that the Board of Directors has approved the redomiciliation of the holding company from the BVI to the International Financial Center Astana (Republic of Kazakhstan) on December 15, 2023. For the purpose of approval of this decision, an absentee vote of shareholders will be held from January 10 to January 26, 2024”, said Lina Naumova, the CFO of Dodo Brands. She added that they will hold an online meeting with the company’s shareholders at the end of this month and will announce the details later.

Naumova took office as CFO on January 1, 2024.

Dodo Brands is one in a growing list of companies that in the past few years have decided to change their legal address to Kazakhstan. Several companies that closed their offices in Russia have already relocated to Kazakhstan, for instance.

In fact, in the summer of 2022, the President of Kazakhstan, Kassym-Jomart Tokayev, instructed the government to create all the necessary conditions for the relocation of companies that have left Russia. Tokayev has also said that 1,400 large foreign companies left the Russian market, emphasizing that this presented a good opportunity for Kazakhstan.

More than 20 companies have moved their regional offices and relocated their teams of specialists to Kazakhstan in 2022. Among them there are large global giants such as InDriver (USA), Honeywell (USA), Weir Minerals (UK), Marubeni (Japan), and Koppert (Netherlands), among others.

Furthermore, popular Chinese company TikTok opened its the regional office for Central Asia and the Caucasus in Almaty in October 2022 after freezing activities in Moscow and deciding to expand cooperation with Kazakhstan.

In 2022, Kazakhstan also localized production of Ural Motorcycles (Russia/USA); car seat covers, interior and trunk mats from RIVAL (Russia); breathing circuits for ventilators R-Vent Medical (Turkey), and United Concrete Canvas (UK). Also in 2022, agreements were reached with German companies to begin construction of plants in Kazakhstan for the production of gypsum board (with Knauff) and trailed agricultural machinery (with Reimann).

On November 16, 2022, President Tokayev gave the start of construction of another plant — this one to produce Chery, Changan and Great Wall brand cars. In May 2023, Kazakhstani company Astana Motors received permission to produce the cars. Production is planned to start next year and the company intends to make about 90,000 cars a year.

The chairman of the National Company “Kazakh Invest”, Zhandos Temirgali, noted that 2023 results include 80 companies, 41 of which have already completed the move to Kazakhstan in 2022-2023, and the rest are in active negotiations.

Temirgali said, “The total value of the projects amounted to about $1.5 billion. For example, Wabtec not only relocated a regional office, but also started a project to produce locomotives and components for them. Microsoft Corporation opened a multi-regional hub in Kazakhstan. Wika launched the production of equipment for the oil and gas industry.”

According to Kazakhstan’s law, any such enterprise registered in the country and is a tax resident will have equal rights with other local companies, including in terms of access to state support and financing.

16 Jan 2024

Uzbekistan, Uzbekistan Business & Economy, Uzbekistan Local Politics

Uzbekistan to launch an entrepreneurship sustainability rating

June 28, 2024
By Times of Central Asia

As reported by the press service of the President of the Republic of Uzbekistan on its website, Uzbekistan plans to launch a rating of entrepreneurs’ sustainability by March 1, 2024, which will constitute a new incentive for entrepreneurial activity in the country.

The rating list is planned to have four main categories, which in turn will be based on 23 criteria, including such areas as the duration of activity, level of profitability, payment discipline, participation in providing employment and the level of wages.

The list will be compiled on the basis of data from fundamental state services, such as tax, justice and judicial authorities, among others.

The aim of the project is to motivate entrepreneurs to join the ranks of disciplined businessmen. Accordingly, benefits of securing a top spot on the list will include:

Exemption from all types of tax audits;
Value Added Tax will be returned to these entrepreneurs in full amount within 24 hours, and overpayment of other types of taxes in three days;
Customs and tax authorities will be able to offset VAT on import and sale of goods;
The term of payment for acquired state property or land plots purchased at auction will be extended from three to five years;
Annual interest will not be charged on the remaining amount if the initial installment is not less than 15%.

The press service also notes in regards to this rating that entrepreneurs will be evaluated not by the tax service, but by an electronic system, which in turn will increase the level of fairness of accrual of subsidies, benefits and preferences.

In addition, the rating will give entrepreneurs reliable information about competitors as well as provide warnings about possible risks, dubious transactions and unfair competition. This is expected to reduce the level of “shadow economy”, according to the report.

16 Jan 2024

Uzbekistan, Uzbekistan Business & Economy, Uzbekistan International Affairs

Increased Cooperation Between Uzbekistan and Singapore

June 28, 2024
By Times of Central Asia

On January 15, an online meeting was held with the participation of the Minister of Agriculture of the Republic of Uzbekistan, Ibrahim Abdurahmanov; the governor of the Tashkent region, Zoir Mirzayev, and the representative of Wilmar International Company of Singapore, Charles Cheau.

During the meeting, the parties discussed issues of expanding areas of cooperation between the two countries in the field of agriculture, including possibilities of further acceleration of previously implemented projects and cooperation agreements. While many achievements have been made in bilateral relations, it was noted that there remain opportunities for expanding practical cooperation.

Uzbekistan’s Minister of Agriculture noted that a donation system was established with Singapore several years ago in the field of agriculture, and that the focus of the current cooperation meeting was on active reforms to be implemented in the future, development of the value chain in agriculture, and the importance of the agro-food system.

Wilmar Company was founded on April 1, 1991 in Singapore and is the leading agro-industrial corporation in Asia. The company has a high market capitalization on the Singapore Stock Exchange. From an operational perspective, the company has a strong position as an integrated agribusiness model covering the entire agricultural value chain.

An agreement was signed as a result of the meeting by Uzbekistan’s Ministry of Agriculture, the administration of its Tashkent region and the Wilmar International Company.

16 Jan 2024

Kyrgyzstan Environment, Kyrgyzstan Business & Economy, Kyrgyzstan Features

Development of Kyrgyzstan’s largest iron deposit begins

September 26, 2024
By Times of Central Asia

Kyrgyzstan’s state enterprise Kyrgyzgeologiya will begin exploration work at the iron deposit “Zhetim Too” in the Naryn region. The country’s Cabinet of Ministers granted the entity the right to use subsurface resources for geological exploration at the deposit.

The development of the iron deposit was one of the election promises of the current President of the Kyrgyz Republic, Sadyr Japarov. In 2020, Japarov said he was considering paying off the state debt to China with raw materials from the deposit.

“This is a project that will pull our economy out of the swamp,” the future head of state had declared while campaigning before the presidential election.

Geologists predict that the “Zhetim-Too” deposit could earn $200 million a year. But it’s not only about earning and selling raw materials abroad. At the “People’s Kurultay” (i.e., people’s parliament), the President noted that at the moment, the Kyrgyz Republic spends millions of dollars a year to buy iron to build railroads, hydroelectric power plants and other structures in the country.

“In the future, we intend to use our own iron ore deposits and build modern plants to process iron ore and manufacture products from it instead of buying iron from outside,” Japarov said.

It should be noted that earlier attempts to start work at the “Zhetim Too” deposit ended in a political scandal and high-profile dismissals of officials. At one time, various foreign mining companies worked at the deposit, which caused discontent among local residents. Rallies were repeatedly held in nearby villages. In 2012, the Kyrgyz authorities sued the Chinese company Mylin Resources for the license of the deposit. Since 2016, the license for exploration and development of the subsoil of “Zhetim Too” has belonged to the state.

Kyrgyzstan’s geologists have previously stated that the exploration of the deposit will take at least five years. After all, it is necessary to assess the reserves of the deposit and the depth of their occurrence, as well as to study the composition of the soil and what percentage of it contains metals. There are also issues of ecology, environmental protection and construction of necessary infrastructure. Additionally, relic forests of the Naryn Reserve are located near the deposit.

“Zhetim Too” was discovered in 1956 at the junction of Naryn and Issyk-Kul oblasts of Kyrgyzstan. Iron reserves at the deposit were estimated from 3 to 10 billion tons. The Association of Mining Industries of Kyrgyzstan calls the site one of the largest iron ore deposits in the world. However, the deposit has been explored only superficially so far and requires additional exploration. The approximate cost of exploration is estimated at more than 20 million U.S. dollars.

16 Jan 2024

Tajikistan International Affairs, Tajikistan, Kyrgyzstan, Kyrgyzstan International Affairs, Tajikistan Features, Kyrgyzstan Features

Kyrgyzstan and Tajikistan continue to work on harmonizing state border

July 9, 2024
By Times of Central Asia

Topographic working groups of the two countries gathered in the city of Batken in the Batken region of Kyrgyzstan between January 10 and January 16, and agreed on another major 38.35-kilometer section their state borders, the press service of the Kyrgyzstan Cabinet of Ministers reports.

“In accordance with the agreement reached in the period from January 10 to 16, 2024 in the city of Batken of Batken oblast of the Kyrgyz Republic held a meeting of topographic working groups and working groups on legal issues of the government delegations of the Kyrgyz Republic and the Republic of Tajikistan on delimitation and demarcation of the Kyrgyz-Tajik state border,” reported Cabinet of Kyrgyzstan on its website.

The Kyrgyz authorities note that the meeting was held in an atmosphere of friendship and mutual understanding, and a protocol was signed following the meeting. The parties will continue work on the description of the remaining areas at the next meeting, which will be held in Tajikistan.

The previous meeting was also held on the territory of Tajikistan from December 17 to 23, 2023. At that time, almost 12 kilometers of the state border were agreed upon.

It should be noted that as of today, Kyrgyzstan and Tajikistan have agreed on 90 percent of the territories of the state border, the total of which is 975 kilometers. Next year, the authorities of both countries plan to finalize the delimitation.

Issues related to delineating a common border between the two countries arose after the collapse of the USSR, particularly with regards to lands rich in water resources, given that irrigation of agricultural lands and private plots is critical in this arid region.

More than 30 years have passed since the collapse of USSR, and the parties still have not agreed on the disputed territories. This has caused periodic conflicts between the citizens of border villages and residents of enclaves and border guards of Kyrgyzstan and Tajikistan, including the use of heavy weapons. The last such conflict took place on the territory of Batken oblast of Kyrgyzstan and Sughd oblast of Tajikistan in September 2022, where hundreds died deaths on both sides and civilian infrastructure was destroyed. Since May 2021, land and air communication between the countries remains closed.

The presidents of the Kyrgyz Republic and Tajikistan have repeatedly discussed the delimitation and demarcation of the state border, and have decided to put an end to this ongoing issue after the above-mentioned most recent conflict. Since then, meetings of topographic groups have been held on a regular basis. The situation on the disputed territories is also monitored by the Collective Security Treaty Organization (CSTO). Both countries are members of the CSTO.

16 Jan 2024

Justice, Kazakhstan Justice, Kazakhstan, Features, Kazakhstan Featurees

Nephew of ex-President Nazarbayev to be Tried

June 17, 2024
By Times of Central Asia

The criminal case against Samat Abish, nephew of the former President of Kazakhstan, Nursultan Nazarbayev, is set to proceed to trial in Astana. The investigation conducted by the General Prosecutor’s Office has concluded, and the case has been transferred to the courts. This will be the first time a relative of Nazarbayev has been tried on charges related to the violent events of January 2022. Details of the pre-trial investigation will not be made available to the public, as the case involves state secrets.

Abish is being charged under Article 362 (Part 4) of the Criminal Code, “Exceeding official powers,” which could result in up to five years imprisonment and the confiscation of property if he is convicted. Abish, aged 45, is the son of Satybaldy Abishevich Nazarbayev, the younger brother of the former president who died in a car accident in 1981. Abish took his surname in honor of his grandfather.

Abish lost his position as the First Deputy Chairman of the National Security Committee of Kazakhstan on January 5^th 2022, amidst riots across the country. Alongside him, the head of the KNB, Karim Massimov, and the Prime Minister, Askar Mamin, were also dismissed. Two days later, Abish was detained in Almaty and charged in connection with the January events. Investigators attributed primary responsibility for the tumultuous events of early 2022 to Karim Massimov, Abish’s direct supervisor, and his three deputies.

President Tokayev stated during an extraordinary session of the CSTO Collective Security Council on January 10^th 2023, that the events were an attempt to seize power by high-ranking officials. Abish’s sibling, Kairat Satybaldy, was convicted on corruption charges last year for embezzling tens of millions of U.S. dollars.