Economic Cooperation - The Times Of Central Asia

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eBay Officially Registers for Tax Purposes in Uzbekistan

The American e-commerce giant eBay has officially registered for tax purposes in Uzbekistan, according to UzDaily. As a result, eBay will now pay value-added tax (VAT) on its services in the country. Other global companies, including Netflix, Amazon, Google, Apple, and Zoom, are also registered with Uzbekistan’s special tax office for foreign digital companies. In total, 64 foreign companies are currently complying with the country’s VAT requirements. The Tax Committee of Uzbekistan reported that 61 foreign companies providing electronic services contributed 101.9 billion UZS (approximately $7.89 million USD) in taxes to the national budget between January and September 2024. This represents a 2.1-fold increase compared to the same period in 2023, highlighting the growing importance of foreign digital service providers in Uzbekistan's economy. In December 2024, Uzbekistan introduced new regulations requiring all companies providing e-commerce services to register as legal entities in the country. Despite their tax registrations, major platforms like eBay and Amazon have not yet established physical offices in Uzbekistan, raising questions about their long-term plans for expanding operations in the local market. In related news, The Times of Central Asia previously reported that Binance, one of the world’s largest cryptocurrency exchanges, will officially begin offering services to users in Uzbekistan. This move underscores the country’s growing focus on integrating global digital platforms into its economy. eBay’s registration for VAT in Uzbekistan marks another step in the country’s efforts to regulate and tax the growing digital economy. As more global companies comply with Uzbekistan’s tax requirements, questions remain about whether these platforms will deepen their presence in the country by establishing local offices.

Agriculture Bilateral Relations Hungary International Cooperation Economic Cooperation

Kyrgyzstan Explores Hungarian Agricultural Technologies

The 3rd Kyrgyz-Hungarian Agricultural Forum was held on January 17 in Budapest, Hungary, with the goal of strengthening ties between agricultural companies from Kyrgyzstan and Hungary. According to the Kyrgyz government’s official website, the forum showcased Hungary’s innovative agricultural technologies and solutions to address challenges in the sector. Focus on Innovation and Sustainability At the forum, leading Hungarian agricultural companies presented modern technologies aimed at increasing crop yields, improving irrigation systems, processing agricultural products, and promoting environmentally sustainable farming practices. These innovations align with Kyrgyzstan’s growing need to modernize its agricultural sector and improve productivity. Kyrgyzstan Seeks Hungarian Expertise Speaking at the forum, Kyrgyzstan’s Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture, and Processing Industry, Bakyt Torobayev, emphasized Kyrgyzstan’s interest in Hungary’s expertise. "Hungary is a reliable partner with extensive experience in agricultural technologies, including processing agricultural products, improving plant varieties, and supporting the development of small and medium-sized farms," Torobayev said. He invited Hungarian entrepreneurs to expand their operations in Kyrgyzstan, noting that the country’s new economic policy focuses on three key sectors: agriculture, energy, and transport and transit. Torobayev highlighted Kyrgyzstan’s strategic location at the crossroads of the ancient Silk Road, which offers unique advantages for international trade. He pointed to the ongoing construction of the China-Kyrgyzstan-Uzbekistan railway as a critical infrastructure project to connect Central Asia with China, South Asia, Europe, and beyond. Meeting Between Kyrgyz and Hungarian Officials On the same day, Torobayev held discussions with Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó. The meeting centered on implementing the Declaration of Enhanced Strategic Partnership, signed in November 2023 during Hungarian Prime Minister Viktor Orbán’s visit to Bishkek. One key topic of discussion was the preparation of a comprehensive long-term development plan for Lake Issyk-Kul, Kyrgyzstan’s largest lake and a vital tourist destination. The plan aims to address environmentalconcerns such as climate change, ecosystem degradation, and overuse of natural resources. Hungarian specialists, drawing on their experience with Lake Balaton, will collaborate with Kyrgyz counterparts to develop and regulate the Issyk-Kul region. Enhancing Bilateral Cooperation Another significant outcome of the meeting was the agreement to increase the authorized capital of the Kyrgyz-Hungarian Development Fund by an additional $34 million. This fund plays a crucial role in fostering economic collaboration between the two countries. The ministers also discussed: Increasing exports of Kyrgyz agricultural products to Europe, focusing on environmentally friendly produce. Establishing logistics centers that adhere to European quality and safety standards. Hungary’s Growing Interest in Central Asia Hungary has consistently sought to deepen its engagement with Turkic-speaking countries in Central Asia. As an observer state of the Organization of Turkic States (OTS), which includes Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan, Hungary has prioritized economic and cultural ties with the region. Turkmenistan also holds observer status within the OTS.

China Investment Projects Drones Economic Cooperation

Chinese Company to Manufacture Drones in Kazakhstan

Yesil Technology Company, a subsidiary of China’s Shaanxi Kaizhuo Electronic Technology Co., Ltd., is set to establish an industrial drone production facility in Kazakhstan. The project, valued at approximately $12 million, marks a significant step in advancing high-tech manufacturing in the country. Construction of the production and research zone, spanning 50,000 square meters, will begin in March 2025 in the Almaty region. The facility will include a workshop for manufacturing drone batteries, a research center for innovative technologies, a full-cycle machine storage, and a test site for drones. Supported by the national company Kazakh Invest, the initiative is projected to create 500 new jobs. The drones manufactured in Kazakhstan will serve both the domestic market and be exported to neighboring Central Asian countries. Yesil Technology aims to integrate advanced UAV (unmanned aerial vehicle) technologies into various sectors, including agricultural monitoring, environmental protection, securing sensitive facilities, emergency rescue operations, and counter-drone measures. Yongning Hui, the head of Yesil Technology, highlighted the company's commitment to solving critical challenges in the drone industry, including extending UAV flight ranges, enhancing intelligent obstacle avoidance, and improving navigation precision and stability. “Yesil Technology actively attracts outstanding scientists and researchers from around the world, focusing on solving key problems such as the limitation of unmanned aerial vehicles’ flight range, the accuracy of intelligent obstacle avoidance, and the precision and stability of navigation, which hinder industry development," Hui stated. "Today, our products already have the ability to operate stably in the most challenging conditions and accurately perform tasks, providing users with calm and reliable aviation services. Yesil Technology also takes on an important mission to train local personnel in unmanned aerial vehicle technology.” The company’s efforts come at a time of rapid global growth in the low-altitude economy. According to the World Federation of Unmanned Aerial Vehicles, the market for low-altitude drones and related technologies reached $318.64 billion in 2024. By 2050, this figure is expected to surpass $8.8 trillion. China has emerged as a leader in this sector, with its low-altitude economy market valued at $68.65 billion in 2023. Projections for 2024 estimate growth to $79 billion, with an average annual growth rate of over 16% anticipated over the next five years. The establishment of the drone production facility in Kazakhstan aligns with the country’s broader goals of fostering technological innovation and regional economic integration.

Business production Economic Cooperation South Korea Industry

Samsung TVs to Be Produced in Kazakhstan

Silk Road Electronics and Samsung Electronics have signed an agreement to launch TV manufacturing in Kazakhstan. The partnership will manufacture Samsung's latest range of televisions, including premium models, to cater to demand in Kazakhstan and Central Asia. The new production line will be established at Silk Road Electronics' facility in Sarani, located in the Karaganda region. “Samsung Electronics, as a long-standing technology leader, is committed to being closer to its consumers. The launch of production in Kazakhstan will increase the availability of our products for the local market,” said Jong Yujin, President of Samsung Electronics Central Eurasia. The localization of production is expected to deliver significant benefits, including developing industrial infrastructure and creating new jobs. “We will provide world-class products at affordable prices for Kazakhstani consumers,” added Alexander Kritsky, Director of Silk Road Electronics, emphasizing the importance of the collaboration. The project, supported by the Industry Development Fund, is set to commence operations in the second quarter of 2025, with Kazakhstani-made TVs expected to hit the market in the latter half of the year. Silk Road Electronics operates on the premises of the former Karagandarezinotechnika plant, which spans over 61,000 square meters. Approximately 25 billion tenge was invested in modernizing the facility. The plant’s primary owner is the Uzbek company Artel, known for producing various household appliances under its brand, including TVs, washing machines, and stoves. Artel partners with Meridian Company and SPK Saryarka. Meridian Company is owned by Andrei Lavrentiev, who also leads Qarmet. Previously, Samsung Electronics announced its plans to establish the production of washing machines at the Saran plant.

Agriculture International Cooperation Economic Cooperation Agricultural Produce

The Netherlands Strengthens Its Position in Turkmenistan’s Agricultural Sector

Dutch companies are expanding their presence in Turkmenistan's agricultural sector, exploring new business opportunities to modernize and enhance local farming practices. A delegation led by former Dutch Ambassador to Kyrgyzstan Peter van Leeuwen visited Ashgabat in early December to assess potential collaborations. The delegation included representatives from prominent Dutch firms such as Agrotech Didam, Dalsem, Geerlofs, HZPC, and Kubo. Discussions focused on key areas for joint efforts, including the construction of modern greenhouses, the implementation of drip irrigation systems, and advancements in seed production. Turkmen officials expressed a keen interest in adopting Dutch technologies to boost agricultural yields and efficiency. As part of their visit, the Dutch representatives toured greenhouse complexes near Ashgabat, where crops like tomatoes, strawberries, and bananas are cultivated. They also inspected potato farms and storage systems. The delegation highlighted the significant potential of Turkmenistan’s agriculture and affirmed their willingness to tailor Dutch innovations to suit the country’s specific conditions. This visit followed a Turkmen delegation's trip to the Netherlands in the summer of 2024. During that visit, representatives from Turkmenistan's private sector and the Ministry of Agriculture participated in the international Green Tech Amsterdam exhibition. The event allowed Turkmen officials to explore cutting-edge agricultural technologies and establish connections with global industry leaders. The exchange of delegations underscores growing cooperation between the two nations, with Dutch expertise poised to play a pivotal role in the modernization of Turkmenistan’s agricultural industry.

Agriculture Bilateral Trade UAE Agricultural Export Economic Cooperation

Kazakhstan’s Lamb Gaining Ground in Arab Markets

Demand for Kazakh food products is on the rise in the United Arab Emirates (UAE), which imports over $23 billion worth of agricultural goods annually. Kazakhstan’s agricultural exports to the UAE were a key focus during a meeting in Dubai between Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, and UAE Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi. Shakkaliyev reaffirmed Kazakhstan’s readiness to supply organic agricultural products, with chilled lamb emerging as a standout item in the UAE market. During the first ten months of 2024, Kazakhstan exported 13,300 tons of lamb to the UAE, valued at $45.3 million. This marks a twofold increase in export volume and a 64% rise in revenue compared to the same period in 2023. In addition to lamb, Shakkaliyev highlighted Kazakhstan’s capacity to export high-quality flour, sunflower oil, confectionery, and dairy products to the UAE. The minister also emphasized Kazakhstan’s commitment to developing halal certification for its agricultural products. “Since 2014, more than 1,800 domestic and foreign companies have been certified, demonstrating the high quality and compliance of Kazakhstani products with international standards,” he noted. As part of the meeting, a tasting session showcased Kazakhstani lamb, confectionery, and apples, further promoting the country's agricultural offerings. Kazakhstan’s lamb exports have also seen significant growth in other Arab markets. According to the Kazakh Ministry of Trade and Integration, lamb exports to Qatar have increased by 75% since the beginning of 2024.