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Uzbekistan Completes Key Step in WTO Accession with China Agreement

Uzbekistan has successfully concluded bilateral negotiations with China regarding its accession to the World Trade Organization (WTO). Azizbek Urunov, Special Representative of the President for the WTO, announced this milestone in a LinkedIn post. “[It was a] very short but productive visit to Beijing! Yesterday, we completed bilateral negotiations on Uzbekistan’s accession to the WTO with the People’s Republic of China,” Urunov wrote. He expressed gratitude to China’s Ministry of Commerce, Deputy Minister Li Fei, Director Li Defeng, and their teams for their cooperation. “[It is] very important at [the] year-end to finish negotiations with the two biggest global trade players – the United States and China. Twenty-two countries are there, a few left!” The Times of Central Asia reported that this achievement follows Uzbekistan’s recent finalization of WTO accession negotiations with the United States, Uzbekistan’s WTO accession is a cornerstone of the country’s ongoing economic reforms, which aim to integrate its economy into the global trade system. Johanna Hill, WTO Deputy Director-General, praised Uzbekistan’s progress: “Uzbekistan has been one of the most active acceding governments of late. It has pushed ahead with economic reform in the strategic region of Central Asia, with WTO accession very high on the government’s agenda.” Hill referenced a WTO report indicating that countries implementing market reforms during WTO accession experience growth rates 1.5% higher than those without such reforms. With negotiations with major economies like the United States and China now complete, Uzbekistan is edging closer to its goal of WTO membership, a move poised to boost its global trade prospects and economic development.

European Union Transport Air Transport negotiations International Relations Civil Aviation economic

Kyrgyzstan’s Airlines Could Be Removed from EU Blacklist in 2024

Kyrgyzstan’s airlines may soon achieve a significant milestone by being removed from the European Union’s Air Safety List, which currently bans them from operating flights to Europe. Kyrgyz President Sadyr Japarov made this announcement on November 27 during a meeting in Berlin with Johan Pelissier, the head of Airbus Europe, where they discussed the future of Kyrgyzstan’s aviation sector. Japarov emphasized the government’s concerted efforts to enhance aviation safety, implement international standards, and modernize infrastructure. He expressed optimism that these measures have significantly improved the likelihood of lifting restrictions on Kyrgyz airlines. As part of these developments, Japarov highlighted the government’s support for the national carrier, Asman Airlines. Under an initial agreement with Airbus, the airline plans to lease two A320 or A321 aircraft to establish direct routes to Europe, including destinations such as Paris, Berlin, and London. This initiative marks a critical step toward integrating Kyrgyzstan into the global aviation network. Looking ahead, Kyrgyzstan aims to expand its fleet and deepen cooperation with Airbus, fostering stronger connections with the international aviation community. At the conclusion of the meeting, Japarov extended an invitation to Pelissier to visit Kyrgyzstan for further discussions with local aviation representatives. Background: A Longstanding Ban Kyrgyz airlines was added to the EU’s Air Safety List in 2006 after failing to meet international safety standards. This decision, based on assessments that the country’s legal framework did not adequately ensure flight safety, has prohibited Kyrgyz airlines from flying to EU destinations for over 18 years. The ban has had a profound impact on the aviation sector, limiting its operational scope and market reach. Efforts to address these shortcomings represent a turning point, with the potential removal from the blacklist signaling a new chapter for Kyrgyz aviation. If successful, this move could open up significant opportunities for growth and international collaboration.

China Agriculture Fertilizer Agricultural Produce economic

China Constructs Vital Fertilizer Plant to Boost Agriculture in Kyrgyzstan

Construction has started on a Kyrgyz-Chinese mineral fertilizer plant in the Nookat district of southern Kyrgyzstan's Osh region. On November 25, equipment worth $15 million arrived from China to advance the project. The $260 million investment agreement for the plant was signed in May 2023 between Kyrgyzstan's Ministry of Agriculture and China’s Hebei Bai Dou Jia LLC during President Sadyr Japarov’s visit to China. The project will be executed in phases, with the first phase set for completion by 2025. This initial phase aims to produce 100,000 tons of fertilizer annually. Future phases include plans for an agricultural machinery assembly plant and expanding production capacity to 500,000 tons per year. Once fully operational, the facility is expected to generate around 2,000 jobs. The plant is a strategic move to reduce Kyrgyzstan’s dependency on imported mineral fertilizers. Currently, the country imports most of its 286,000-ton annual demand from Uzbekistan and Russia. The new facility is poised to meet and exceed domestic needs, boosting agricultural productivity and supporting the country’s economy.

Finance Energy Export/Import Rogun HPP hydroelectric economic

Kazakhstan to Begin Purchasing Electricity from Rogun HPP

Kazakhstan has announced plans to purchase electricity from Tajikistan’s Rogun hydropower plant (HPP), a major facility currently under construction. According to a draft agreement published on Tajikistan's official legal information portal, the cooperation between the two countries is set to last for 20 years, with an option to extend for an additional 10 years. The price for the electricity is set at $0.034 per kilowatt-hour (excluding VAT), plus a transit surcharge determined by the seller’s costs. Payments are to be made within 35 days for each supply period. The supply will only occur during scheduled shortages and will be integrated into KEGOC’s national grid. Rogun HPP will handle transportation to the border, while the Settlement and Financial Center for Renewable Energy Support LLP will oversee control on the Kazakh side. Any disputes arising from the agreement will be resolved through the Singapore International Arbitration Center. Electricity agreements with Kazakhstan and Uzbekistan are a critical component for securing international financing for the Rogun HPP’s construction. Project costs have risen to $6.4 billion, according to recent estimates. To cover these costs, the Tajik government is negotiating semi-concessional loans worth $1.73 billion, $850 million in grants, and $390 million in concessional loans. The remainder will come from the government budget and revenues generated by the plant. This year, the Tajik government allocated 5 billion somoni (approximately $460 million) for the Rogun project, with 2.8 billion somoni coming from the state budget and 2.2 billion somoni from investment projects. By the end of September 2024, 4.3 billion somoni (about $395 million) had already been spent on construction. Once completed, Rogun HPP will become the largest hydropower facility in Central Asia, boasting a capacity of 3,600 MW and capable of producing up to 17 billion kWh of electricity annually. This output represents 65–85% of Tajikistan’s total electricity production. The plant will house six units of 600 MW each, with full commissioning expected by 2029. Currently, two units are operating at low capacity, having been commissioned in 2018 and 2019. The project serves as a landmark achievement for Tajikistan’s energy sector and a key driver of regional energy cooperation, promoting economic stability and resource-sharing throughout Central Asia.

Migration Human rights Work Migrant Workers Migrant Rights economic

Solidarity Center: Central Asian Migrant Workers Face Low Pay and Unsafe Workplaces

Central Asian migrant workers face new challenges as they look for well-paying jobs, with economic shifts and political instability adding to the uncertainty. More women and young people also choose to migrate, often facing unique risks. Panelists at a recent Solidarity Center webinar highlighted that protecting these workers’ rights is more effective when countries in the region work together on safe migration plans. A Solidarity Center study involving over 1,000 migrant workers from Kazakhstan, Kyrgyzstan, and Uzbekistan found that Kyrgyzstan and Uzbekistan are the primary countries of origin, while Kazakhstan is becoming a growing destination. Most participants (58%) left due to low wages in their home countries, and 31% cited a lack of jobs as their main reason for migrating. Russia, once a top destination for Central Asian workers, has seen a drop in migrant numbers since its economy took a hit following Russia's invasion of Ukraine. A migrant worker from Uzbekistan shared that overtime hours weren’t paid, and medical expenses had to come out of his pocket if he got sick. According to Lola Abdukadyrova, Solidarity Center's regional director in Kyrgyzstan, this story reflects the harsh conditions many migrant workers face—no overtime pay, no sick leave, and frequent discrimination or harassment. Abdukadyrova noted that for nearly 30% of Kyrgyz migrant households, money for food is often a struggle. In Uzbekistan, this rate rises to 45%, as shared by Nodira Karimova, director of the Republican Social Information Center Istiqbolli Avlod. Abdukadyrova added that many migrants earn only enough for basic food, and they face delayed payments, heavier workloads without extra pay, and unsafe working conditions. “Kazakhstan has endorsed the Global Compact for Safe, Orderly and Regular Migration (GCM) and participates in various regional migration dialogues,” said Aleksandr Mukha, director of the Mangistau Regional Branch of the Kazakhstan International Bureau for Human Rights and Rule of Law. In another significant win for migrant worker rights organizations, Kyrgyzstan issued the GCM in August to improve conditions for Kyrgyz citizens who travel abroad to earn their livelihoods. The Times of Central Asia has previously written about how that Russia's ongoing war in Ukraine has increased pressure on Central Asian migrants.

Finance Government Digitalization Cryptocurrency Regulation National Bank economic

Kyrgyz Authorities Unhappy With The Dollar

The Kyrgyz Finance Ministry plans to set aside 20 billion KGS ($230m) to issue digital bonds and treasury bills. Kyrgyz Cabinet Chief Akylbek Japarov has said at a meeting with journalists that according to him, the central bank's monopoly on issuing money is ending. Japarov discussed the role of the U.S. dollar in the country's economy and emphasized that it has become a tool of political pressure. “We send payments, but they are delayed without explanation. Sometimes, the delays last up to three months. This hurts trade. If there is no money, there is no trade. I think a new toolkit will soon appear,” he stated. He said the BRICS organization is already working on alternative payment systems to support trade. Cryptocurrency, and any currency backed by the gold reserves of the countries that use it, can replace the dollar in international trade. “Now everyone who has a gadget can emit cryptocurrency into various cryptocurrencies. In Kyrgyzstan, we will work on this issue and have a crypto exchange,” Japarov noted. He noted that digital bonds and promissory notes issued by the Kyrgyz Finance Ministry will be backed by gold. Corresponding amendments to the legislation are already being submitted to Parliament for consideration. Earlier, the National Bank of Kyrgyzstan also announced the launch of a pilot project for the national digital currency, “digital som,” and the creation of a legal framework for it. The Ministry of Economy and Commerce of Kyrgyzstan also announced the creation of crypto banks that will work with virtual assets. “Given the rapid development of digital technologies and cryptocurrencies, creating a crypto bank represents an urgent need to integrate crypto assets into the country's traditional financial system. Cryptobank will ensure safe, regulated, and convenient interaction of citizens and businesses with cryptocurrencies”, noted the Ministry of Economy.