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Russia Transport Kazakhstan Central Asia Export/import Industry Germany Oil and Gas

Russian Comments Put Kazakhstan’s Oil Transit to Germany Under Threat

Russia has warned Kazakhstan about the possible suspension of Kazakh crude oil transshipment to Germany through the Druzhba oil pipeline system. The stated reason is the debt of Polish pipeline operator PERN, according to a report by Reuters. Reuters, citing people familiar with the matter, claims that Russia's Transneft has warned its Kazakh partner KazTransOil about the suspension of oil deliveries to the Schwedt refinery. The reason for this demarche is the outstanding debts of Polish state pipeline operator PERN. If the Polish company doesn't pay for the services of oil acceptance and transfer at the Polish transit point Adamova Zastava on the border with Belarus by June, the transit will be stopped. The amount of the debt is unknown. PERN explained its version of the situation by citing western sanctions against Russia. Payment of money to the Russian side can lead to violations of the sanctions regime. According to comments made by the Kazakh Ministry of Energy, the Kazakh government itself looks at the possibility of transit suspension very negatively. KazTransOil said that the plan of deliveries to Germany remains unchanged, and that negotiations with all participants of the process are underway. Curiously, the Ministry of Energy denied the Reuters report, claiming that "the information does not correspond to reality." In early April it was reported that the Kazakh side intends to supply 1.2 million tons of oil to the Schwedt refinery by the end of the year. This would not be the first case involving a cessation of Kazakh oil transiting Russian territory. Earlier, there were repeated problems with the Caspian Pipeline Consortium (CPC) terminal in Novorossiysk, Russia, on the Black Sea. Some analysts believe that Russia uses oil transportation as an instrument to apply pressure to the Kazakh government.

UK Irrigation Industry Kyrgyzstan

U.K. Company to Manufacture Innovative Material to Improve Irrigation in Kyrgyzstan

Back in November 2023, Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov met head of Concrete Canvas, Will Crawford in Cardiff to discuss the establishment of a plant in Kyrgyzstan. On 23 April representatives of the company travelled to the Chui region of northern Kyrgyzstan for further negotiations attended by Kyrgyzstan’s Deputy Chairman of the Cabinet of Ministers - Minister of Water Resources, Agriculture and Processing Industry, Bakyt Torobayev and British Foreign Secretary David Cameron. Concrete Canvas, produces waterproof flexible concrete filled geosynthetic composite mats used for lining irrigation canals to prevent erosion and reduce seepage losses. Hailing the benefits of the product, Torobayev stated, “Across Kyrgyzstan, the length of canals is 30 thousand kilometres, including 11 thousand kilometres of -unsurfaced- canals. By laying concrete material on these canals, we will avoid seepage of water and ensure its efficient use. Kyrgyzstan is an agricultural country with a lot of arable land, so we really need such materials. The plan is to build the company’s plant in the Osh region in south Kyrgyzstan in the near future.” Material produced by the Kyrgyzstan plant will meet domestic demand and could also be exported to Russia and Uzbekistan.

Industry Uzbekistan Economy Export/import China Central Asia Investments

Chinese Investors Plan to Build Solar Power Plant in Tashkent Region

Chinese investors have agreed to implement more major projects in Uzbekistan, according to statements made following the visit of a trade delegation from China to Uzbekistan's Tashkent region. Chinese businesses intend to invest $2 billion in the construction of a solar power plant in Ahangaran, $25 million in providing food for employees of social facilities, and $20 million in the construction of a diagnostic center. Also, Chinese investors are ready to invest $90 million in projects focused on the production of pharmaceutical products, metal structures, artificial fiber and threads. Earlier, Uzbekhydroenergo and China Southern Power Grid International agreed on joint construction of a 600 MW pumped storage hydropower (PSH) called Verkhny Pskem. The cost of the project is estimated at $1 billion. The first solar power plant in Uzbekistan was established with the assistance of the World Bank Group, Abu Dhabi Future Energy Company (Masdar), the Asian Development Bank and the Government of Uzbekistan. The station, with a capacity of 100 megawatts, became the country's first large-scale renewable energy facility. According to Uzbekistan's Ministry of Energy, the country plans to build about 25 large-scale solar power plants in the next 10 years.

Lithium Industry China Kazakhstan

Chinese Company Poised to Develop Lithium Industry in Kazakhstan

Zhicun Lithium Group, one of China’s largest companies specializing in the full-cycle production of lithium batteries, is engaged in talks with Kazakh Invest on lithium exploration, production, and processing projects in Kazakhstan. The initiative was discussed on April 12 at a meeting between the company's Vice President, Hong Wei, and Kazakh Invest’s project director, Bauyrzhan Aitkulov. With reference to Kazakhstan’s significant geological potential for the mineral, Aitkulov advised Chinese investors of the strategic importance of developing the lithium industry. He also emphasized the potential offered by the Zhicun Lithium Group’s knowledge and experience in furthering exploration and the creation of a production plant for lithium products in Kazakhstan. As reported by Kazakh Invest, both parties are poised to engage in long-term cooperation and technology transfer to create sustainable lithium production chains necessary for the development of processing industries, including green energy.

Kazakhstan Central Asia Industry Uzbekistan Economy

Economist Marat Kairlenov: Kazakhstan Must Keep Up With Uzbekistan

In 2023, crude oil remained Kazakhstan's main export commodity, accounting for $42.3 billion, or 53.8%, of the republic's total gross domestic product (GDP). According to a proprietary forecast, Uzbekistan may overtake its neighbor in terms of GDP by 2037. This is due to the continuing technological lag in the raw materials-based economy of Kazakhstan, according to economist Marat Kairlenov, who recently discussed ways to diversify Kazakhstan's economy and create jobs. "We remain predominantly a raw material country; however, in the GDP structure, agriculture accounts for only 4%, industry -- 36%, and services -- 56%," Kairlenov told kapital.kz. He emphasized that changing the economic orientation requires time, and active use of raw materials sector opportunities, as other countries have done during reforms. The key issue is the equal distribution of national wealth. It's important to revise agreements with large subsoil producers to increase the wages of citizens. "In 2023, Kazakhstan's GDP reached 119 trillion tenge ($266.2 billion) with only 31% going to wages. This shows the need for policy correction," Kairlenov added. Speaking about economic diversification, the economist mentioned new technologies in mining rare metals, such as high-grade nickel. "Our country is rich in various minerals and we should actively develop their extraction," he believes. However, oil dependence remains an issue. "The price of oil is crucial, and the war in Ukraine incentivizes countries to give up oil". He assumes that at an average oil price of $30 per barrel, production will become unprofitable. In this regard, Kairlenov calls for the active development of other sectors of the economy, such as the extraction of rare metals and the information technology (IT) sector. "We need to get rid of misconceptions, for example, about the contribution of [cryptocurrency] mining farms to the economy," he stressed. Kairlenov draws attention to fading investment activity -- and the growing number of seized accounts, which indicates negative trends in the economy. "Policies must change to incentivize job creation and improve the welfare of citizens," he concludes. How can Kazakhstan create new jobs and stimulate economic growth? Kairlenov suggests a number of concrete steps to create jobs in the country. "Very simple -- we need to reduce customs duties on imported cars and machinery to the level of 2010. The same applies to scrappage duty." Reducing the cost of cars stimulates tourism and the development of agriculture, which needs modern equipment. In addition, Kairlenov notes the need for infrastructure renewal. "Costs are inevitable for new power lines, pipes and other engineering systems. The whole country needs renewal, which will create demand for machinery and many jobs," he explains. It's also important to create a favorable environment for business development. "Liberalizing the economy is the key to progress. Less regulation is required from the state and more freedom for entrepreneurs." he added. Kairlenov also calls for attracting foreign investment in promising industries. "Why don't we launch the production of [railroad] carriages or other goods in which we have advantages?" Asked about Uzbekistan's future as a regional economic leader, Kairlenov...

Industry Green Energy Power generation Uzbekistan

Major Industrial and Energy Projects for Uzbekistan

On April 8th, Uzbekistan President Shavkat Mirziyoyev attended a launch ceremony for the construction of two major industry and energy projects in the Jizzakh region. The first, in the Gallyaaral district, comprises an industrial zone specializing in metallurgy. Encompassing a customs warehouse and 7 projects worth $500 million, the new zone will manufacture various fittings, steel balls, pipes, automobile bodies, and provide 5,000 jobs. The second project to be established in the Farish district in collaboration with China Poly Group and China Electric, is a large 500-megawatt solar power plant. With investment of $350 million, the plant will generate 1.1 billion kilowatt-hours of electricity per annum and improve the supply of energy to 450,000 households. The first 200 megawatts will be put into operation later this year. It was announced at the ceremony that in the coming years, additional thermal, wind and solar power plants with a total capacity of 1,660 megawatts will be built in the Jizzakh region. The new facilities will improve the standard of living of the local population and provide a new impetus to the region’s economic development.