Page 903 – The Times Of Central Asia

17 Jan 2024

Ambitious Program to Plant 65 Million Trees and Shrubs Launched

June 27, 2024
By Times of Central Asia

As part of the National Program, “Green Country,” Tajikistan intends to plant 65 million trees and shrubs on an area spanning over 4,000 hectares by 2025. Special attention will be paid to the planting of fruit trees, rosehip and pine. This ambitious initiative is designed to improve the state of the environment, which has been suffering in recent years due to both natural and human impacts. The program is also aimed at combating global climate change and developing green energy, which will improve the quality of the environment and public health.

It is reported that financing in the amount of 129,875,000, somoni ($11.8 million) is to be provided for the implementation of the Green Country program, which will comprise two stages: the first will executed from 2023 to 2025, and the second from 2026 to 2027.

17 Jan 2024

Kazakhstan Local Politics, Kazakhstan, Kyrgyzstan Home

Mazhilis Expanding Network of Charging Stations for Electric Vehicles

June 27, 2024
By Times of Central Asia

A draft law aimed at creating the necessary infrastructure for electric vehicles in Kazakhstan was presented at the meeting of the Mazhilis. Deputy Samat Musabayev noted that in 2022 a new world record for electric vehicles was set, with sales reaching over 7.8 million units. Forecasts also point to significant growth in sales of electric cars and hybrid vehicles worldwide in 2023, with about 17 million units expected to be sold. In the context of this trend, 7,793 electric vehicles were registered in Kazakhstan by the end of last year.

The deputy noted that the increase in demand for environmentally friendly cars requires the development of appropriate infrastructure and improvement of the current legislation, which the proposed bill is aiming to rectify.

The draft law aims to introduce new rules to ensure the installation of electric charging stations on roads, in residential and public areas. It also defines the competence of the authorities to locate electric charging stations, reserve the territory for them, and facilitates the parking and movement of electric vehicles. In addition, the bill provides for the exemption of electric car owners from parking charges.

In addition, the deputies of the Mazhilis approved in its first reading a bill that provides for administrative liability for violating the rules of stopping or parking vehicles in places intended for recharging electric vehicles. The draft law “On amendments and additions to some legislative acts of the Republic of Kazakhstan on the popularization of environmentally friendly transport and the development of infrastructure for electric vehicles” was approved.

17 Jan 2024

Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Kazatomprom Changes Work Plan for 2024

June 27, 2024
By Times of Central Asia

The National Atomic Company of Kazakhstan, Kazatomprom has announced that it was forced to make changes to its production plan for the current year. The main reason for the changes was a reduction in the supply of substances needed for uranium mining in Kazakhstan. In addition, it is reported that the heads of the nuclear company recognized the impossibility of implementing the approved plans to create the infrastructure necessary for new mines. The news was published by the official press service of the National Atomic Company.

In 2022, the management of Kazatomprom announced the successful conclusion of a number of contracts and laid out a plan to increase uranium production over the next 2-3 years. In figures, it was set to produce 80% of the subsoil use contracts in 2023, and 90% in 2024.

However, it became clear that these plans were not feasible due to concerns about increasing production. They were also rendered impossible due to changes in global imports, meaning Kazakhstan was unable to establish a supply chain of key materials and reagents for the plant, and alternative sources of necessary materials are yet to be found.

Kazatomprom’s press service also reported that a shortage of sulfuric acid is expected in 2024.

The management of the National Atomic Company reports that it hopes to fulfill all its obligations to customers and will make every effort to do so. However, the 2025 development plan may also be revised if the supply problem persists.

Changes to the current year’s plan will be submitted by February 1^st.

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.