• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00211 0%
  • TJS/USD = 0.10460 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00211 0%
  • TJS/USD = 0.10460 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00211 0%
  • TJS/USD = 0.10460 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00211 0%
  • TJS/USD = 0.10460 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00211 0%
  • TJS/USD = 0.10460 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00211 0%
  • TJS/USD = 0.10460 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00211 0%
  • TJS/USD = 0.10460 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00211 0%
  • TJS/USD = 0.10460 0.19%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%

Kyrgyzstan’s New Tariff Policy Aim to Solve Problems in Energy Sector

Kyrgyzstan’s minister of economy Daniyar Amangeldiev has told a press conference in Bishkek about his vision for the country’s energy sector. A new tariff pricing policy has been presented to the Kyrgyz parliament, and will be adopted in May this year.

According to Amangeldiev, the new electricity tariff policy will allow for new capacity to be introduced, and for the country to reduce the country’s electricity deficit year by year until the country’s power-demand needs are met. Electricity prices will rise by 10.8% as early as May 2024, and taking into account inflation, this increase will be permanent.

Amangeldiev said that it will now be much easier to obtain permission from the authorities to build energy facilities in the country. Measures have also been taken to make it easier for investors to invest in Kyrgyzstan’s energy sector. “With its adoption (the new law on tariff policy), those capacities that are planned will be introduced, and accordingly, every year we will reduce the shortage of electricity to fully meet the needs of the country, and possibly [lead to] electricity export,” he commented, adding that this year in Kyrgyzstan developers have started 10 small hydropower plants (HPPs).

Earlier, Kyrgyz president Sadyr Japarov said that in addition to the construction of large energy facilities, it’s necessary to build small HPPs.

In 2022, the World Bank allocated $50 million to Kyrgyzstan to modernize its energy infrastructure — upgrading transformers, power lines and installing smart meters. A year later, the bank provided another $80 million in concessional loans (at below-market lending rates) to improve the power grid and support small-scale power generation. Last fall, the World Bank allocated $5 million to the republic for a feasibility study of the project of a new large HPP called Kambarata-1.

Central Asian and Gulf Cooperation Council Countries Engage in Strategic Dialogue

The 2nd Ministerial Meeting of Strategic Dialogue ‘Central Asia – Gulf Cooperation Council (GCC)’, hosted by Tashkent on April 15, was attended by top diplomats from Central Asia and six member states of the Gulf Cooperation Council: Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, the Sultanate of Oman, and Bahrain.

Aimed at strengthening comprehensive cooperation between Central Asia and Gulf Cooperation Council states, discussions focused on political, security, trade, economic, investment, transport and logistics, environmental protection, green energy, cultural and humanitarian issues.

In his address, Alibek Bakayev, Deputy Minister of Foreign Affairs of Kazakhstan, emphasized the importance of strengthening trade relations between the two regions and encouraged the Gulf States to actively participate in the implementation of joint investment projects in both Kazakhstan and other Central Asian countries.

In addition, he outlined various initiatives currently in operation in Kazakhstan including expanding the activities of the Islamic Organization for Food Security and exploiting the potential of the International Technopark of IT start-ups, ‘Astana Hub’.

Reporting on the outcome of the Ministerial Meeting, Uzbekistan’s First Deputy Foreign Minister Bakhromjon Aloyev stated that participants had unanimously agreed to a further summit of the Central Asia – Gulf Arab States Strategic Dialogue, to be held in Samarkand in 2025.

The ‘Central Asia – GCC’ dialogue platform was launched in 2022 and the first Ministerial Meeting took place that September in Riyadh, Saudi Arabia.

World Bank Forecasts Slowdown for Economic Growth in Kyrgyzstan

The World Bank is forecasting a slowdown in economic growth this year for the countries of Central Asia, with Kyrgyzstan a cause for particular caution.

The disappointing forecast, published in a new report, stems from the general weakening of the global economy. Additional negative factors cited were the five governments’ tight credit policies, lower commodity prices, and slowing economic growth in China. The World Bank’s Vice President for Europe and Central Asia Antonella Basani commented: “The states of Europe and Central Asia continue to confront multiple crises, exacerbated by unfavorable dynamics of global economic growth. Restoring productivity growth by fostering business dynamism and building resilience to climate change risks can help protect the region’s [local] population and boost economic growth.”

The World Bank’s outlook for Kyrgyzstan’s economy is particularly muted. The bank said in its report: “GDP growth is expected to slow down to 4.5 percent in 2024 as growth in the services sector slows down. On the demand side, consumption growth will slow despite a slight increase in remittance inflows, while investment and net exports are expected to support growth.”

World Bank analysts say that due to the lack of structural reforms in Kyrgyzstan, the the economy’s growth rate will slow down from year to year. However, with a reasonable monetary policy from the National Bank and stable prices for fuels and lubricants, inflation may fall to 5-7% annually.  The budget surplus, which the Kyrgyz authorities have boasted about, will turn into a deficit by the end of the year due to a decrease in tax revenues. Furthermore, due to increased expenditures on capital investments, the budget deficit may grow to 2.4% by 2026.

“There are external risks to growth, mainly driven by the geopolitical situation and the state of trade flows with Russia. There could be a marked deterioration in the Russian economy and, due to this, a reduction in remittances and exports. Possible spikes in global food and fuel prices may reverse the downward trend and push inflation to double digits,” the World Bank report says.

At the same time, the negative economic trends can be avoided. To do so, the Kyrgyz government needs to undertake radical reforms to improve governance and reduce corruption. The authorities need to help the private sector develop by removing administrative barriers, World Bank analysts have said.

Kazakhstan Exceeds Oil Production Quota Under OPEC+ Agreement

Last month Kazakhstan exceeded its oil production quota under its agreement with the Organization of Petroleum Exporting Countries (OPEC+). According to Times of Central Asia research into oil data, Kazakhstan exceeded its March 2024 limits by 131,000 barrels per day (bpd). However, Kazakhstan’s Energy Ministry emphasized that this was a one-off occurrence, brought about by climatic factors in the country.

“Despite this, Kazakhstan will continue efforts to comply with its obligations and compensate for overproduction in the first quarter [of 2024],” said the ministry’s press service. In addition, based on the results of the 53rd meeting of OPEC’s Joint Ministerial Monitoring Committee, Kazakhstan committed to submit a detailed compensation plan to the OPEC Secretariat by April 30.

In early March, Kazakhstan agreed to extend its voluntary crude production cut of 82,000bpd until the end of June 2024, reaffirming its commitment to comply with international agreements and maintain stability in oil markets.

Tajikistan Denounces “Torture” of Tajik Suspects in Moscow Attack, Urges Fair Trial

Tajikistan’s foreign minister has described the beating and abuse of several Tajik suspects in the mass killing of more than 140 people at a Russian concert hall as “torture” that is at odds with the need for a thorough investigation and a fair trial.

Foreign Minister, Sirojiddin Muhriddin also said that Tajik people had faced an “information campaign” of racism and xenophobia since the attack at the Crocus City Hall in Moscow on March 22. His comments were some of the strongest yet by Tajikistan’s Government, reflecting increased worry over the national image and the plight of many poor Tajik migrants in Russia who were already living in precarious conditions.

Muhriddin urged the Russian authorities to conduct an investigation into the Crocus City Hall attack according to international norms, including the right to a fair trial, reported Asia-Plus, a media group in Tajikistan. He spoke at a meeting of regional foreign ministers in Minsk, Belarus.

“The demonstration in the open information space of footage of the detention of suspected perpetrators of a terrorist act with the use of torture against them in the form of bodily mutilation is unacceptable,” Muhriddin said. “The price of confessions obtained in this way is well known to everyone.”

Several migrant laborers from Tajikistan were among suspects charged with terrorism in the wake of the attack, and they appeared in court with visible injuries. At the time, videos and photographs circulating on social media showed the men being beaten and abused while in detention. In one video, a man in camouflage cuts off part of the ear of a suspect and forces it into his mouth.

The Islamic State group claimed responsibility for the Crocus City Hall attack, which focused attention on the group’s efforts to recruit people from Central Asia into its ranks. Muhriddin alluded to widespread reports of harassment and hostility toward Tajik migrants, particularly in Russia.

“As a result of an ill-conceived information campaign, a negative perception of citizens of Tajikistan and Tajiks is being formed,” the Tajik foreign minister said. As for the attack, he said: “All criminals must be punished: the organizers, the perpetrators, the accomplices, and the masterminds of this monstrous crime.”

In the face of overwhelming evidence to the contrary, despite ongoing Russian attempts to pin the blame for the atrocity on Ukraine, Russia has pressed ahead with new laws targeting migrants.

Focusing on Russia’s “unreliable narrative” regarding the attack, Noah Tucker, a Senior Research Consultant at the Oxus Society and Program Associate of the Central Asia Program at George Washington University stated that the “last major attack inside Russia was the 2017 metro bombing. [In a] strategy of authoritarian cooperation… that was also blamed on Central Asian migrants, and the security services arrested two Uzbek brothers and sent them to jail as the direct orchestrators of the attack – only the facts never added up… One of the brothers, who was charged as being the mastermind, was lying in a hospital in Osh during the attack, and was allegedly extradited to Russia only to be arrested in a made for TV event a few weeks later.

“ISIS K have not really made any particular effort to recruit Central Asians other than to come and join their civil war inside Afghanistan, [because none of their goals] has any relevance for Central Asians migrants.”

Prior to the attack, the U.S specifically warned the Russian authorities that the Crocus City Hall was a potential target, leading Edward Lemon, President and CEO of the Oxus Society, to characterize the event as “extreme negligence in not preventing this attack or willful neglect in allowing it to happen.”

Uzbekistan Proposes Ban on E-Cigarettes

Uzbekistan is drafting a law banning the import, sale and production of electronic cigarettes and tobacco heating systems. The bill has been published on the regulation.gov.uz portal and its discussion will last until April 18, The Times of Central Asia has learned.

The draft law mentions that over the past seven years, “modern” or “innovative” types of nicotine and tobacco products have appeared in Uzbekistan. The result is a dramatic increase in the number of smokers — especially among children and young adults.

According to an explanatory addendum to the bill, interest in e-cigarettes is skyrocketing among high school students. The number of devices seized from students during raids in schools and public places has increased every year since the government has been keeping track. There were six cases in 2019, 27 in 2020, 31 in 2021, 856 in 2022, and 1,040 in 2023.

Among the 18-29 year old population, the use of tobacco heating systems is more than 2.5 times higher than in the 30-69 year old population. Unless action is taken, the bill states that one in five young people will suffer from nicotine addiction in the future.

“This law prohibits the circulation of electronic nicotine delivery systems, liquids for them, and electronic cigarettes on the territory of the republic,” the bill says. Once passed, Uzbek e-cigarette smokers will face heavy fines and criminal liability for breaking the new law.