Page 927 – The Times Of Central Asia

22 Dec 2023

Home, Kazakhstan, Business & Economy, Kazakhstan Business & Economy, Features

How Will Free Trade Zone Between EAEU and Iran Affect Kazakhstan?

June 27, 2024
By Times of Central Asia

The free trade Agreement between the Eurasian Economic Union (EAEU) and Iran will ensure an increase in annual mutual trade to U$18-20 billion in the near future, Andrey Slepnev, a member of the Board for Trade of the Eurasian Economic Commission said during a briefing. The free trade agreement between the EAEU and Iran is scheduled to be adopted on December 25^th 2023.

“Iran is a large market, our neighbor, and a key country in the international North-South transport corridor,” said Slepnev. “We consider this new agreement as one of the elements of this corridor.”

Slepnev stated that currently trade between EAEU countries with Iran is carried out, among other things, within the framework of the interim agreement adopted in 2019, which covers about 360 commodity items. But even this has made it possible to double mutual trade in three years, from $2.5 billion to more than $5 billion, and in 2022 to bring it to $6.2 billion.

“The conclusion of a full-scale agreement will allow us to double trade in a short time. The first target we are focusing on is $18-20 billion, which is quite realistic to achieve in the foreseeable future,” said Slepnev, adding that implementation of the agreement will be carried out on the basis of the WTO. For this purpose, work will be carried out on the harmonization of regulations, since Iran is not a WTO member. In addition, the parties will strive to increase the volume and channels for making payments in their national currencies.

“In Kazakhstan, we see prospects for the supply of traditional Kazakh products to Iran; first of all, wheat, barley, agri-food products, metals, and chemical products. This agreement will allow Kazakhstan to increase its presence in the Iranian market,” he added.

Slepnev stressed that the expansion of the EAEU trade partnership with third countries will make it possible to use and actively develop the transit and transport potential of EAEU countries. Trade with Iran naturally involves the use of the North-South corridor, and will also contribute to the communications in the East-West corridor, which runs through the countries of Central Asia and Russia.

“The demand for these intercontinental transport corridors is constantly increasing in the context of international tension. Economically, we live in a time when the one who is faster wins, so our advantage is speed and convenience,” Slepnev concluded.

22 Dec 2023

Environment, Kyrgyzstan Environment, Kyrgyzstan

Kyrgyzstan to Create a Ministry of Water Management

June 17, 2024
By Times of Central Asia

Kyrgyzstan’s Agriculture Minister, Askarbek Janybekov, addressed journalists at a press conference, indicating plans to potentially establish a Ministry of Water Management in the country by the conclusion of 2024.

“Now, there is a need to create a separate department for water issues. We must take our time. It will be a big organization. Therefore, we will consider it in stages, and we think at the end of next year we will create such a ministry,” he said.

Janybekov highlighted that discussions on this matter had surfaced in the Jogorku Kenesh and the recent National Kurultai. Previously, MP Emil Toktoshev had advocated for such an initiative.

22 Dec 2023

Environment, Kazakhstan Environment, Kazakhstan Life & Culture, Kazakhstan, Features, Kazakhstan Featurees

Kazakhstan to Build New Reservoirs to Reduce Dependence on Neighboring Countries

June 27, 2024
By Times of Central Asia

The Ministry of Water Resources and Irrigation of Kazakhstan on December 22^nd said it is beginning work on the construction of nine new reservoirs out of a planned twenty to reduce Kazakhstan’s dependence on the water flow from neighboring countries by 25%. The commissioning of new reservoirs will also increase the area of irrigated land by 250,000 hectares and reduce the threat of flooding in 70 rural settlements with a population of 137,000 people.

Currently, design documentation is being developed for the nine facilities, and negotiations are underway to attract investors to the construction of new reservoirs.

The Ministry of Water Resources and Irrigation has developed a Comprehensive Water Development Plan for 2024-2030. The document includes measures for the construction and reconstruction of reservoirs, reconstruction of hydraulic structures and irrigation systems.

“The plan will be implemented in several stages,” said the Minister of Water Resources and Irrigation of Kazakhstan, Nurzhan Nurzhigitov. “In 2024-2026, it is planned to begin construction of twenty new reservoirs with a volume of 2.4 km³ in eleven regions. The implementation of the Comprehensive Plan will increase the volume of available water resources by 3.7 km³, expand the area of irrigated land to 2.2 million hectares, reduce annual losses of irrigation water by 3 km³, and also provide water supply to 41 settlements with a population of more than 55,000 people.”

Kazakhstan, especially its southern regions, is highly dependent on irrigation water flow from upstream Kyrgyzstan. This past summer, Kyrgyzstan experienced a shortage of irrigation water and was forced to reduce the water flow to Kazakhstan’s southern Zhambyl region, which negatively impacted the region’s agriculture.

22 Dec 2023

Kazakhstan, Kazakhstan Business & Economy, Kazakhstan Home

Large Gas Condensate Field Put into Operation in West Kazakhstan

June 27, 2024
By Times of Central Asia

On December 21^st, the Rozhkovskoye gas condensate field was put into commercial operation in the West Kazakhstan region.

The Rozhkovskoye field was discovered in 2008. By 2040, the field is expected to produce 14.2 billion cubic meters of natural gas and 7.1 million tons of condensate. The field is operated by a joint venture which includes Kazakhstan’s national oil and gas company, KazMunayGas (50%), the Hungarian company, MOL Group (27.5%), and the Chinese Sinopec (22.5%). To date, about $534 million has already been invested in the field’s development.

The Prime Minister of Kazakhstan, Alikhan Smailov, who took part in the launch ceremony via teleconference, emphasized the strategic importance of the project, initiated upon the instructions of the Head of State to attract investment in the exploration and development of new gas fields. Smailov added that in the medium term, the launch of several more gas projects is expected in Kazakhstan, including Urikhtau Central (Aktobe region), Western Prorva (Atyrau region), and Kalamkas (Mangistau region).

“Combined, they will provide an increase in production of over 2 billion cubic meters per year. Together with international companies, 12 more promising geological exploration projects are being developed, as well as projects for the additional exploration of existing fields,” the Prime Minister said.

In his words, the growing needs of the population and industry require not only an increase in gas resources, but also the capacity for its processing.

“The head of state has set the task of increasing commercial gas production to 30 billion cubic meters by 2030. In this regard, new gas processing plants will be built at the Kashagan and Karachaganak fields, as well as in the city of Zhanaozen,” Smailov said.

21 Dec 2023

Kazakhstan, Business & Economy, Kazakhstan Business & Economy, Features

Kazakhstan Launches Construction of New Railroad to China

June 27, 2024
By Times of Central Asia

The Prime Minister of Kazakhstan, Alikhan Smailov, via a teleconference on December 20^th officially inaugurated the construction of a new railway line, Bakhty-Ayagoz, with a total length of 272 km in the Abay Region of southern Kazakhstan.

The project is being implemented upon the instruction of President Kassym-Jomart Tokayev to increase the transport and transit potential of Kazakhstan. The project also involves the opening of a third border crossing with China, Bakhty-Chuguchak.

The railway line will increase the throughput capacity between Kazakhstan and China from 28 million to around 48 million tons, lessen the burden on the southern checkpoints, and attract additional volumes of transit. It is planned that the double-track line will begin operating in 2027. The large-scale project will be realized with the participation of a private investor on PPP principles.

During the ceremony, the Prime Minister stated that last year Kazakhstan’s railroads transported the largest volume of cargo since the country’s independence, which amounted to 245 billion tons/kilometer. These rates have been maintained in the current year, despite the geopolitical situation and infrastructure constraints.

“Over the past five years, the volume of transit container transportation has grown 3.2-fold. Existing transit corridors are being expanded, and new ones are being opened. The Trans-Caspian International Transport Route, North-South and Southern corridors have become particularly relevant,” Smailov said.

At the same time, the throughput and infrastructure capacities have reached their peak. To address this strategic issue, a decision was made to implement a number of infrastructure projects in the rail industry. The new line is expected to help increase Kazakhstan’s exports and the transit of goods from Russia to China and back.

21 Dec 2023

Uzbekistan Environment, Uzbekistan, Uzbekistan Business & Economy

Chinese Company to Produce, Install Charging Stations for Electric Vehicles in Uzbekistan

June 27, 2024
By Times of Central Asia

Uzbekistan and China will jointly produce charging stations for electric vehicles, said the Uzbek Ministry of Energy. During its visit to China last week, a delegation of the Uzbek Research Institute of Renewable Energy Sources and the Henan Suda company discussed the implementation of a project for the production of electric charging stations and the exchange of the necessary technologies. As a result, they signed an agreement on cooperation in the field of infrastructure for electric transport.

Henan Suda is a Chinese electric vehicle manufacturer based in the Henan Province.

According to the agreement, by 2033 it is planned to install more than 70 centralized and 50,000 non-centralized charging stations throughout Uzbekistan. They will provide energy to over 700,000 electric vehicles.

According to a presidential decree issued a year ago, Uzbekistan plans to install 2,500 charging stations for electric vehicles across the country by the end of 2024. Their presence will become mandatory for all new gas stations, business centers, hotels, shopping and entertainment centers.