Kazakhstan - The Times Of Central Asia

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Sport

Kazakhstan Senate Approves Ban on Budget Funding for Foreign Athletes

The Senate, Kazakhstan’s upper house of parliament, has passed amendments to the Law on Physical Culture and Sports that ban the use of state funds to finance foreign athletes, commonly known as "legionnaires." The bill is now awaiting President Kassym-Jomart Tokayev’s signature to become law. Ending State Support and Introducing Salary Caps Kazakhstan’s efforts to reduce foreign dominance in national sports date back to 2020. Initial measures included capping the number of foreign players allowed on the field in football and hockey, as well as restricting their funding through state budgets. However, according to Vice-Minister of Tourism and Sports Serik Zharasbayev, these regulations, embedded in competition rules and government resolutions, have not been consistently enforced at the regional level. The new legislation aims to enshrine these restrictions in law. “Regarding the financing of legionnaires: the bill prescribes a prohibition on funding these individuals from the state budget and quasi-governmental sector. However, funding from extra-budgetary sources, such as sponsorships, remains permissible,” Zharasbayev explained. The law will also empower the Ministry of Tourism and Sports to set financial limits for clubs in football, hockey, and other team sports. “This legislation will allow us to define how much each club is eligible to receive from the budget and to cap salaries of football and hockey players accordingly,” the Vice-Minister said. He added that the savings would be redirected to support grassroots youth sports, although he could not specify the projected amount. Budget Caps for Sports Clubs While specific funding limits have yet to be determined, Zharasbayev noted that the combined annual allocation from national and regional budgets is about 400 billion KZT (approximately $797 million). Currently, football and hockey clubs may receive up to 1.2 billion KZT (around $2.4 million) annually, while other sports, such as basketball and volleyball, are capped at 450 million KZT ($897,000). “For the 14 clubs in the Kazakhstan Premier League, a cumulative 30 billion KZT was allocated in 2024. It’s within this sum that we aim to identify potential savings,” Zharasbayev said. He reported that 325 foreign players competed in Kazakhstan’s three professional football divisions last year. Some have since obtained Kazakhstani citizenship, making them eligible for state funding. The new law, however, will apply only to future contracts. “Existing contracts will remain in effect until their expiration, as the law is not retroactive. Still, we have advised clubs not to sign new contracts with foreign players starting in 2025,” Zharasbayev stated. He also emphasized the need to regulate domestic athletes’ salaries, citing “unreasonably high payments” as a growing concern. A separate legal act is in development to address the issue. Scandals Within the Football Federation The legislation comes amid ongoing investigations into financial misconduct under the previous leadership of the Kazakhstan Football Federation. The Prosecutor General’s Office reported violations amounting to 3 billion KZT (nearly $6 million), including unjustified bonuses, misused funds for infrastructure, questionable player transactions, and embezzlement related to athlete meals. Specifically, over 300 million KZT ($597,000) in unwarranted bonuses were issued, and more than...

Economy

Kazakhstan Aims to Nearly Triple Investment in the Economy by 2029

Kazakhstan plans to significantly increase investment in its economy over the next five years, aiming to nearly triple current levels. However, officials from the Ministry of National Economy acknowledge that the primary challenge lies not in securing additional funds but in the shortage of high-quality investment projects. Shortage of Viable Projects At a recent meeting of the Expert Council under the Ministry of National Economy, Deputy Minister Arman Kasenov stated that the ratio of domestic investment to GDP currently stands at a modest 14-15%, a figure he described as objectively low. “To achieve higher rates of economic growth, investments need to increase 2.75 times, from $40 billion in 2024 to $103 billion by 2029,” Kasenov stated. To help reach this target, the government plans to allocate KZT 1 trillion (approximately $2 billion) through the state holding company Baiterek to stimulate business lending. This amount is expected to catalyze additional credit lines totaling KZT 8 trillion (around $15.9 billion). Still, Kasenov stressed that financing alone is not enough. “The real issue is the lack of quality projects,” Kasenov said. “This problem has been flagged by international development finance institutions. When we talk about increasing investment from $40 billion to $103 billion, it’s not just about capital, it's about where and how that capital is deployed.” Targeting High-Return Sectors To ensure impactful investment, the Kazakh government is prioritizing support for highly productive and export-oriented projects. These are concentrated in key sectors such as metallurgy, oil and gas, petrochemicals, and agriculture. Rustam Karagoyshin, the head of Baiterek Holding, outlined the financing model for investment projects, which consists of 60% market funding and 40% state-backed lending. In 2025, Baiterek plans to disburse a total of KZT 8 trillion in project financing, with KZT 3.75 trillion (around $7.4 billion) provided in the national currency. “Our main objective is to unify lending rates at 12.6% for end consumers. Standardizing rates will enable second-tier banks to participate across nearly all sectors where Baiterek operates today,” Karagoyshin said. Foreign Investment Outlook As The Times of Central Asia previously reported, Kazakhstan is looking to attract more foreign direct investment following a notable decline in 2023. Amid growing concerns about resource nationalism, the government is eager to position itself as a stable and attractive destination for international capital.

Critical Minerals

Kazakhstan Strengthens Position in Global Critical Minerals Market

Kazakhstan has the potential to ensure a stable supply of critical minerals essential for the global energy transition and the expansion of the electric vehicle market, according to analysts at the Astana International Financial Center (AIFC). An AIFC study highlights Kazakhstan’s competitive advantages in exporting copper, zinc, aluminum, silver, and lead. Additionally, nickel, gold, lithium, and rare earth metals are seen as promising sectors for export expansion. Kazakhstan holds a 5% share of the global zinc market, ranking seventh in reserves with 6.7 million tons. In 2022, Turkey, Russia, and China accounted for 70% of Kazakhstani zinc exports. The country also controls about 4% of the global copper market, with 20 million tons in reserves, placing it 11th worldwide. Its main copper buyers in 2022 were China, Turkey, and the UAE. Kazakhstan ranks eighth globally in lead reserves (2 million tons) and 12th in production, with 40,000 tons mined in 2021. Global lead demand is projected to rise from 11.6 million tons in 2022 to 13.4 million tons by 2031. In the silver market, Kazakhstan holds the third-largest reserves, accounting for 2.7% of global supply. In 2023, Kazakhstan ranked 11th in global bauxite reserves (160 million tons) and 10th in production (4.3 million tons), though its aluminum market share remains below 1%. The primary destinations for aluminum exports are Turkey, Italy, and Greece. Meanwhile, Kazakhstan is among the world’s top 20 nickel-producing countries, holding reserves of approximately 1.5 million tons, or 2% of global reserves, though its market share remains small. The country is also actively exploring lithium deposits in collaboration with companies from Germany, the UK, and South Korea. In March 2024, South Korean specialists discovered a lithium deposit in East Kazakhstan with a content of 5.3%, valued at an estimated $15.7 billion. Kazakhstan has also strengthened its position in the critical minerals market through international agreements. It recently signed a contract with the European Union worth €3 million for the supply of essential raw materials.

Migration

Kazakhstan’s Migration Trends: Growth in Skilled Labor, No Signs of Chinese Influx

A positive migration trend is emerging in Kazakhstan, with new data indicating a significant increase in net migration. In 2024, the country recorded a migration balance of 17,200 people, an 85% increase from the previous year. The gap between arrivals and departures expanded 2.3 times, with 30,000 people moving to Kazakhstan compared to 12,800 leaving the country. Experts from the Institute of Public Policy highlighted that Kazakhstan’s emigration rate has reached a historic low in contrast to outflows observed in other countries. In 2024, net migration losses were significantly higher in Georgia (-39,200), Israel (-18,200), Uzbekistan (-14,300), and Bulgaria (-9,200). Kazakhstan has seen a significant reduction in emigration. In the early 2000s, the annual outflow was around 289,000 people, but by 2024, this number had dropped to the aforementioned 12,800. Meanwhile, the inflow of migrants continues to rise. Last year, 12,200 people arrived from Uzbekistan, 8,100 from Russia, 2,000 from China, 1,400 from Mongolia, and 1,100 from Turkmenistan. Additionally, several hundred people from Turkey, Germany, Georgia, the United States, and South Korea also relocated to Kazakhstan. Currently, 13,000 foreign specialists are employed in Kazakhstan’s economy, including 5,300 in construction, 2,600 in industry, and 700 in agriculture. The country is also attracting international students, some of whom choose to stay after graduation, suggesting that Kazakhstan is on track to become a leading destination for skilled professionals in Central Asia and the CIS. In November 2023, Kazakhstan and China implemented a visa-free regime, allowing short-term travel between the two countries. However, this agreement does not grant Chinese citizens the right to work, study, or engage in missionary activities in Kazakhstan. Despite this, social media was flooded with concerns that millions of Chinese citizens would move to Kazakhstan, take jobs, and even claim territory. Experts dismissed these fears as unfounded, arguing that the visa-free regime was primarily designed to boost trade and tourism rather than encourage large-scale migration. More than a year and a half has passed since the agreement came into effect, and no such wave of migration has occurred. Political scientist Marat Shibutov criticized the initial panic, stating: “Those who spread fear about mass Chinese migration should look in the mirror because nothing has happened. The Chinese do not need to come here.” According to Shibutov, young and ambitious Chinese migrants prefer destinations such as Singapore, the United States, Europe, Canada, and Australia. Official data further debunks fears of Chinese migration. According to the Bureau of National Statistics, the number of Chinese citizens moving to Kazakhstan permanently has been steadily decreasing since 2017. Most of those who do relocate are ethnic Kazakhs returning to their ancestral homeland, a process actively encouraged by the Kazakh government through state programs for repatriates, known as Kandas. The figures speak for themselves. In 2017, 3,000 Chinese citizens moved to Kazakhstan. By 2023, this number had dropped to just 416, of whom 398 were ethnic Kazakhs and only four were ethnic Chinese. Additionally, the vast majority of repatriated ethnic Kazakhs, 63.5%, came from Uzbekistan, while fewer than...

Time Zone

Time Zone Turmoil: Kazakhstan’s Shift Sparks Backlash and Political Action

Kazakhstan is preparing to put an end to a year-long debate over its transition to a single time zone (UTC+5). However, opposition to the change has evolved beyond public discontent. Critics, including well-known public figures, are now considering the creation of a political party with the goal of overturning what they argue is one of the most unpopular government decisions in the country’s history. Even a year later, many citizens remain unconvinced of the benefits of the time zone shift, while the government continues to defend it with unwavering determination. Origins of the Controversy Discussions about adopting a single time zone in Kazakhstan have surfaced multiple times over the years. In 2021, the proposal failed to gain widespread approval. However, in the fall of 2023, a clutch of parliamentary deputies once again pushed for unifying the country’s time zones, citing public requests and scientific studies. Supporters of the transition argued that a single time zone would eliminate time barriers between regions, improve transport coordination and business operations, and enhance government and emergency service interactions. Advocates also referred to the Barcelona Declaration on Time Policy (adopted in October 2022), which suggests that maintaining permanent time zones aligned with solar time is beneficial for health, the economy, and safety. Additionally, they pointed out that 175 countries operate within a single time zone, whereas only 22 nations use multiple zones. Despite earlier resistance, the government proceeded with the change. At midnight on March 1, 2024, Kazakhstan moved its clocks one hour back, effectively adopting UTC+5, barring a few regions. Public Backlash and the Petition Movement The reaction was swift. On April 22, 2024, an online petition titled "Return the Time Back" appeared, addressed to President Kassym-Jomart Tokayev and key ministers, including those responsible for energy, health, and labor. The petition was also directed to the head of KazNII Oncology and Radiology, though the reason for this remains unclear. Petition organizers listed several negative effects of the time change: Increased darkness during morning and evening hours, impacting public safety and economic activity. Disruptions to biological rhythms leading to fatigue, reduced productivity, and poorer sleep quality. Economic losses, as changes in daylight hours affected certain industries. The petition quickly gathered over 50,000 signatures, compelling the government and parliament to formally consider the issue. On June 21, 2024, an initial public hearing took place, where opponents of the time zone shift voiced their concerns. However, after three rounds of discussions, no changes were made, and Kazakhstan remained in UTC+5. Renewed Opposition in Parliament Despite the government's firm stance, opposition to the change resurfaced in September 2024 when deputies returning from summer recess reported that the time zone issue was the most frequently raised concern among voters. Prime Minister Olzhas Bektenov reaffirmed that the decision was final but instructed the Ministry of Health to conduct a three-year study on the impact of UTC+5 on public health. This announcement only fueled opposition claims that the transition was an unwarranted experiment affecting 15 million citizens, the number of people...

Business

A Taste of Kazakhstan: Interview with Almaty’s Apple City Cider

Englishman Alexander Thomas is the passionate founder of Apple City Cider, an Almaty-based craft cidery dedicated to producing high-quality, locally sourced ciders that celebrate tradition with a modern twist. With a deep-rooted love for orchards and fermentation, Thomas blends innovation with time-honored techniques to create crisp, flavorful ciders. TCA: What first brought you to Almaty, and what kept you here? AT: I used to work for the world’s largest publishing group, where I reported on different market sectors. When I covered aviation, I used to fly around the world to speak to different airline CEOs to discuss their route strategies and fleets. I first came to Kazakhstan to interview Air Astana’s CEO, Peter Foster. I was supposed to fly to Paris to speak with KLM and Air France, but that meeting was canceled, so I flew back to London. Sitting next to me, little did I know, was my future wife. In the same company, I very much enjoyed the coverage of the drinks industry. I had originally wanted to make wine in the south of France, but after marrying a Kazakh girl, we decided to start our business in Kazakhstan. Instead of pressing grapes in the South of France, we began pressing apples in Almaty. TCA: Can you tell us the inspiration for Apple City Cider? AT: We started the business because no one was making cider in the birthplace of the apple, around that time, cider was not even available to purchase in Kazakhstan. Around the same time we went on sale, another alcohol manufacturer began to produce cider as well, but we are the only cider specialists; the main business of the others is spirits and other alcoholic drinks. [caption id="attachment_28689" align="aligncenter" width="1706"] Image: TCA, Henry Kuvin[/caption] TCA: How did Almaty respond to your business idea, and what were the main challenges when establishing your company? AT: Consumers are very happy with the product and happy that we started our business here. Like other local companies, Almaty Cider has received a lot of positive support from the city; they love how it’s called “Almaty Cider.” The concept of eating locally and supporting local businesses is a global phenomenon, and Almaty is no exception. The fact that Almaty is the birthplace of the apple, proven by science, made it the ideal location to start such a business. The Malus Sieversii apple, native to the Almaty region, is perfect for cider. The levels of tannins, fruit sugar, and acidity, while not ideal for eating, make a great-tasting cider. TCA: Almaty, the place of abundant apples, does not have a huge cider culture – how has this changed since you established the business, and where do you see it going? AT: Cider was not available even as an imported product until about three to four years ago. Since then, we have seen imported brands come to the market, and people have developed a taste for it. In Russia, for example, there are now over 100 independent cideries. The first person...