Economic Cooperation - The Times Of Central Asia

Viewing results 1 - 6 of 213

Air Transport

Vietnamese Company to Modernize Regional Airports in Kazakhstan

The Sovico Group, a leading investment conglomerate in Vietnam, is to modernize and further develop the infrastructure of Kazakhstan's Turkestan and Kyzylorda airports. As reported by Kazakh Invest, the deal was confirmed in a Memorandum of Cooperation, signed in Astana between Sovico Group Chairman Dr. Nguyen Thanh Hung and Deputy Governors of Turkestan and Kyzylorda regions. The Chairman of Sovico announced plans to increase the frequency of flights from Vietnam to Kazakhstan, as well as the group's potential development of Kazakhstan’s trade and logistics potential, particularly at the Khorgos hub on the Kazakh-Chinese border. The latter follows discussions with Kazakhstan President Kassym-Jomart Tokayev back in May, during which Nguyen Thanh Hung announced his company's interest in taking control of several airports and investing in logistics warehouses for the storage of goods produced in Vietnam and ASEAN countries for subsequent sale in Kazakhstan, Central Asian countries, the EAEU, and Europe. The Sovico Group has also announced plans to acquire Qazaq Air for the sum of approximately $4.2 million by the end of September 2024; a move described by President Tokayev in July, as a demonstration of the Vietnamese conglomerate's ambitious plans to develop civil aviation in Kazakhstan and the region. In a country where rail is the main means of transport, the development of regional airports and domestic flights will have a significant impact on the passage of both cargo and people.

Economic Cooperation

Rise in Trade Between Kyrgyzstan and Afghanistan

In January-August 2024, trade between Afghanistan and Kyrgyzstan reached $14 million, including $6 million worth of Afghan exports to Kyrgyzstan. According to a TOLOnews report, based on data from the Afghan Ministry of Industry and Commerce, most of Afghanistan's exports to Kyrgyzstan and Uzbekistan consist of mineral water, carpets, non-alcoholic beverages, dried fruits, fruit juices, apricots, and sesame seeds. The report was issued in the wake of an announcement on September 6, in which Kyrgyzstan's Ministry of Foreign Affairs stated, "A decision has been made to remove the Taliban from the list of prohibited organizations within the territory of the Kyrgyz Republic.” The Ministry emphasized that the removal of the Taliban, the unrecognized group that effectively controls Afghanistan, from the list of banned terrorist organizations, aims to enhance regional stability and support ongoing dialogue. Confirmation was also made of Kyrgyzstan's ongoing commitment to supporting the efforts of the international community to ensure a stable and peaceful environment in both Afghanistan and the surrounding region. Reporting on the meeting between Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov and the Chargé d'Affaires of Afghanistan in Kyrgyzstan, Nurullah Amin, on September 6, the Kyrgyz government’s press service outlined the parties' discussions on furthering bilateral cooperation between the two countries. On the Kyrgyz side, Japarov expressed interest in developing trade and economic relations, and transport links with Afghanistan, engaging in the joint development of Afghan mineral deposits, and cooperating in the energy, industry, and agriculture sectors.

EAEU

Kyrgyzstan’s Wages Lowest Among EAEU Countries

Kyrgyzstan has the lowest average monthly wage among its fellow Eurasian Economic Union (EAEU) members, an economic integration bloc that includes Armenia, Belarus, Kazakhstan, and Russia. According to the Eurasian Economic Commission, the EAEU’s governing body, in January–June 2024, the average monthly nominal wage in Kyrgyzstan was $398, in Belarus $666, in Armenia $704, in Kazakhstan $875, and in Russia $922. Compared to the same period in 2023, wages increased in all EAEU member states with the highest growth recorded in Belarus (113%) and Russia (109.4%). Lower wages in Kyrgyzstan are however, somewhat compensated by the cost of food. In a survey conducted by Kyrgyzstan’s Ministry of Water Resources, Agriculture and Processing Industry, it was found that the price of comparable food products in the country are 13.59% lower than in Kazakhstan and 16.17% lower than in Russia.

Energy

Kyrgyzstan and Japan Agree to Cooperate in Green Energy

In Japan on September 9, Kyrgyzstan’s Minister of Energy, Taalaibek Ibrayev, met with Ken Saito, Japan's Minister of Economy, Trade and Industry, who oversees the country's energy policy. The two ministries signed a memorandum of cooperation to implement joint projects in green energy. The aim of the new partnership is to expand energy cooperation between Japan and Kyrgyzstan, and developing sectors such as energy efficiency, renewable energy, hydrogen energy, ammonia, carbon recycling, and high-efficiency electricity generation. While visiting Japan last November, Kyrgyzstan's President Sadyr Japarov held talks with Japanese Prime Minister Fumio Kishida. Cooperation in the energy sector was one of the issues that they discussed. During the visit, Japarov invited Japanese companies to use the opportunities and potential for cooperation with Kyrgyzstan to develop renewable energy sources and construct hydropower plants.

Trans-Caspian Trade Route

U.S. Ambassador: America Supports Tajikistan’s Role in the Trans-Caspian Trade Route

The United States supports Tajikistan’s participation in the Trans-Caspian Trade Route project, connecting China with Europe through the Caspian Sea, Asia, and the Caucasus. U.S. Ambassador to Tajikistan Manuel Micaller spoke about this in an interview with Khovar.tj. “We continue to advocate for Tajikistan’s participation in the Trans-Caspian Trade Route, which will connect Central Asia with the Caucasus and European markets. Through the C5+1 diplomatic platform, which brings together the United States and our five Central Asian partners, we hope to facilitate closer cooperation with these partners and access to global markets,” Micaller noted. The Trans-Caspian Transport Route starts from Southeast Asia and China and runs through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and further to European countries. It aims to facilitate trade and economic cooperation by connecting major economic regions through railways, highways, and maritime routes. Transit time along the Trans-Caspian Route has been reduced from 38-53 days to 18-23 days. In 2024, this period is planned to be reduced to 14-18 days, and the journey through the territory of Kazakhstan from 6 to 5 days.

Oil

Tajikistan Proposes Launching Oil Refinery With Russian Tatneft

Tajikistan wants to establish cooperation with Russia's Tatneft to open an oil refinery in the Dangara free economic zone, in Tajikistan's Khatlon region. This was announced by the country’s Minister of Industry and New Technologies, Sherali Kabir, during a recent investment forum in Dushanbe between Tajik and Russian companies. “One of the most important issues that we see in the development between our countries is the improvement of our production capacities, including the production of fuel and lubricants, cooperation, and the creation of new mechanisms. If we launch this enterprise together with Tatneft, we can achieve great progress in this regard.” Kabir said. It is noted that this will help Tatneft enter the markets of Afghanistan and Pakistan. “As was said, up to 30% of Tatneft’s raw materials are exported. Bring them here (Tajikistan), process them — and imagine what a huge market the company could open up for itself. 40 million people in Afghanistan, and over 230 million in Pakistan,” Timur Yoribek, Head of the International Relations Department of the Ministry of Industry of Tajikistan, commented. According to him, Tajikistan has ideal logistics routes for this — seven bridges leading to Afghanistan, and the shortest links to the Pakistani seaports. Construction of the Dangara oil refinery began in 2014 and was completed in 2018. The plant's planned capacity is 1.2 million tons of oil per year, but the commissioning has been delayed due to a shortage of raw materials. Tajikistan produces a small amount of oil, which is not enough to supply the refineries.