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Oil and Gas

Opinion: Tengiz, Karachaganak, and Kashagan: Kazakhstan Asserts Contract Stability Amid Lawsuits Exceeding $170 Billion

Following statements by President Kassym-Jomart Tokayev, the intrigue surrounding the PSA agreements for Kashagan and Karachaganak and the stabilized contract for Tengiz have taken on new dimensions. Previously, in the articles, Breaking Down Kazakhstan’s Claims Against International Oil Consortiums and Is Kazakhstan Preparing to Take on the Oil Consortium “Whales?, TCA examined the ongoing lawsuits filed by the government and the authorized body, PSA LLC, against the North Caspian Operating Company N.V. (NCOC) and Karachaganak Petroleum Operating B.V. (KPO), noting that the Ministry of Energy and KazMunayGas have not raised any claims against the joint venture Tengizchevroil LLP (TCO). While shares in NCOC and KPO are managed by PSA LLC, those in TCO are controlled by the national company, KazMunayGas. What did President Tokayev say? On January 28, President Tokayev held an expanded government meeting addressing the public and political debate surrounding PSA agreements. "Reforms in the subsoil use sector must continue, no matter what," Tokayev stated. "This is a fundamental position that the government should firmly adhere to. The implementation of production-sharing agreements (PSAs) for major oil fields has allowed Kazakhstan to become a reliable supplier of energy resources to the global market. These projects make a significant contribution to the country’s socioeconomic development. However, large investments require a long-term planning horizon. Therefore, the government must intensify negotiations on extending PSA contracts, possibly on updated and more favorable terms for our country." This statement sparked discussions among experts; who exactly was the president referring to? The major PSAs in Kazakhstan are the Karachaganak and Kashagan projects, with contracts expiring in 2038 and 2041, respectively. In contrast, Tengiz does not operate under a PSA but rather a stabilized contract, which is set to expire much sooner, in 2033. I have repeatedly emphasized the need for an audit of Tengiz before the contract expires and have proposed that it should not be extended. Kazakhstan can independently, or with the involvement of foreign oil service companies, develop this highly profitable field under more advantageous conditions. On January 29, Kazakhstan's Minister of Energy, Almassadam Satkaliyev, provided clarification, confirming that the president's directive was specifically about Tengiz. "The directive was given quite openly within the framework of international agreements and international law to conduct consultations with consortium participants. Given the development timelines, the most relevant project for us is Tengizchevroil, which operates the Tengiz field in partnership with Chevron, ExxonMobil, and Lukoil. We plan to start certain preliminary consultations with them, and once we are ready for negotiations, we will proceed with them. The government will first develop an agenda and a list of its demands. One possible demand is an increase in Kazakhstan’s stake in these projects." So, is Tengiz the primary target? Or is Kazakhstan preparing for a broader offensive on all three fronts? “There are Hardliners in the Government” On February 16, the international industry portal Upstream Online published an extensive article titled Kazakhstan Seeks Shake-Up at Crucial Foreign-Led Oil Projects. The article primarily focuses on the production-sharing agreements (PSAs) for Karachaganak...

Mass Media

Japarov Backs Elon Musk’s Call to Shut Down Radio Liberty

Kyrgyz President Sadyr Japarov has expressed support for Elon Musk’s initiative to close U.S.-funded media outlets Voice of America and Radio Liberty. In an interview with the state news agency Kabar, Japarov suggested that Azattyk, the Kyrgyz branch of Radio Liberty, was no longer relevant in the digital age. “Twenty or thirty years ago, everyone waited for Azattyk, listened to it, believed it - because there was no internet or smartphones. Now, people do not need information from Azattyk. Everyone gets their news online. Besides, our people have learned to analyze information and not believe everything,” Japarov said. Azattyk’s Legal Battles in Kyrgyzstan Japarov accused Radio Liberty’s Kyrgyz service of frequently spreading unverified and harmful information. He noted that when state authorities took legal action, Azattyk journalists often removed the disputed material. In 2022, a Kyrgyz court suspended Azattyk’s license over its coverage of border clashes between Kyrgyzstan and Tajikistan. “If you sue them, they start shouting to the whole world: ‘Freedom of speech is dead in our country.’ Is this normal? Is spreading misleading information or manipulating the news freedom of speech? We should not confuse permissiveness with free speech or human rights. That’s why Trump and Musk’s decision should be supported,” Japarov said. At a national assembly in Bishkek last December, Japarov suggested that the U.S. State Department should provide funding directly to the Kyrgyz government, promising that Kyrgyzstan would then ensure democracy and human rights at the highest level. Political Analysts Weigh In Political analyst Bakyt Baketaev told The Times of Central Asia that while Radio Liberty – Azattyk is widely listened to in Kyrgyzstan, this does not necessarily mean broad public support for its narratives. “They mix solid journalism with unverified reports. They frequently take negative stories from the opposition - sometimes deliberately disrupting stability. Naturally, this affects the authorities’ perception of the outlet,” Baketaev said. He added that Azattyk’s closure would have a significant impact on pro-Western perspectives in Kyrgyzstan. “Modern geopolitics has shown that democracy, free speech, and human rights cannot be introduced overnight in other countries. Afghanistan is a clear example of this. Democratic values should be developed in coordination with the state,” Baketaev said. Despite the criticism, Baketaev acknowledged that Radio Liberty had successfully collaborated with the Kyrgyz government on ecology, public health, and women's rights issues.

Legislation

Kyrgyzstan Proposes Salary Cuts for Underperforming Officials

The Kyrgyz presidential administration is developing new mechanisms to penalize officials for repeated disciplinary offenses, including salary reductions and forfeiture of bonuses. The initiative, aimed at improving accountability in the civil service, was announced by Azamat Osmonov, Head of the Department of Control of Execution of Decisions of the President and Cabinet of Ministers. According to Osmonov, 56 civil servants were disciplined in 2024 for misconduct. Among them: 7 officials, including akims (local governors), their deputies, and senior government officials, were dismissed. 27 officials, including one minister, received reprimands. 22 officials faced additional disciplinary actions. The presidential administration and the Cabinet of Ministers are set to convene a board meeting to review the performance of state agency heads for 2024. “Unfortunately, current regulations allow the same official to be reprimanded repeatedly without serious consequences. We intend to change this practice: if an official has already been disciplined, a repeated offense should lead to dismissal,” Osmonov stated. In addition to stricter dismissal policies, the government is considering financial penalties as an alternative punishment. “We are introducing the monetization of disciplinary measures: after receiving a reprimand, an official will be ineligible for bonuses, and their salary will be reduced. This should create additional motivation to comply with discipline,” Osmonov explained. The proposed mechanism is currently under development and will be integrated into the Code of Administrative Violations. Kyrgyzstan already enforces financial penalties for civil servants who fail to meet deadlines for addressing citizens' appeals. The current fine stands at 100 calculation indices (a fixed monetary unit used for penalties and state fees). “We will further refine this approach by drafting new legal regulations to enhance officials' accountability and improve the quality of work within state institutions,” Osmonov added.

NGO

Kazakhstan Proposes Foreign Agents Law for NGOs and Media

Members of Kazakhstan’s parliament have proposed adopting a law on foreign agents, requiring media outlets and non-governmental organizations (NGOs) that receive foreign funding to disclose their financial sources. The initiative, put forward by deputies from the People's Party of Kazakhstan (PPK), has sparked debate within the country’s political and expert circles. Push for Greater Transparency Irina Smirnova, a deputy from the PPK, a party that won 10 of the 98 seats in the 2023 parliamentary elections, publicly announced the proposal. The PPK is currently the third-largest political force in Kazakhstan, following AMANAT and Ak Zhol. Citing open-source data, Smirnova claimed that approximately 200 NGOs in Kazakhstan receive foreign funding, with around 70% of these organizations reportedly financed by sources from the United States. She added that, in an official capacity, Kazakhstan has received grants from 165 different foreign donors, including 53 international organizations, 31 foreign government entities, and 81 foreign NGOs. “Financial and material-technical assistance to Kazakhstani NGOs is also provided by other foreign structures, including embassies that are not listed among these donors,” Smirnova stated. According to her, much of this foreign support is directed toward projects related to media and freedom of speech, the protection of vulnerable groups, democracy promotion, civil society development, liberal reforms, and fostering civic engagement. “And even specialists cannot always determine which resources are friendly and where we must be cautious to avoid exposure to ‘destructive soft power,’” she said. “This is a problem and a challenge for our entire society.” As a solution, the PPK is calling for a reassessment of certain NGOs operating in what it describes as a “gray zone” and a revision of the regulations governing foreign donors in Kazakhstan. Following Global Trends Smirnova cited international examples of foreign agent laws, noting that similar regulations exist in Israel (since 2016), China (since 2017), Australia (since 2018), the United Kingdom (since 2023), and France (since 2024). She also pointed to the United States’ Foreign Agents Registration Act (FARA), enacted in 1938, as a model for regulating individuals and organizations acting in the interests of foreign entities. She argued that Kazakhstan should adopt a similar law, mandating foreign-funded media and NGOs to disclose their financial sources. The proposed legislation would also outline penalties for failing to comply with registration requirements or deviating from declared activities. At the same time, the PPK suggested introducing exemptions for humanitarian and scientific organizations that receive foreign funding. Expert Skepticism The proposal has received a lukewarm response from Kazakhstan’s political analysts. Analyst Islam Kurayev dismissed the idea, arguing that Kazakhstan’s existing legal framework already regulates foreign funding and foreign-affiliated entities. “MP Irina Smirnova has been in the [parliament, the Mazhilis] for several years and should be aware that such a law is unnecessary,” Kurayev wrote on his Telegram channel. “The reason is simple: Kazakhstan’s legislation already contains provisions regulating foreign financing and individuals connected to third countries. These regulations are embedded in various legal acts, meaning the necessary restrictions are already in place. There is no need...

Corruption

U.S. Suspends Enforcement of Foreign Bribery Law: Should Kazakhstan Be Worried?

U.S. President Donald Trump has issued an executive order suspending enforcement of the Foreign Corrupt Practices Act (FCPA), effectively allowing U.S. companies to offer bribes to foreign officials and politicians. This decision is expected to prompt tighter scrutiny of potential corruption among officials in Kazakhstan. On February 12, 2025, Trump signed an executive order pausing enforcement of the FCPA, a landmark anti-bribery law that has regulated U.S. business practices abroad since 1977. The order directs the U.S. Department of Justice to suspend enforcement of the law, which previously criminalized bribery of foreign officials by American companies. Trump argued that the FCPA puts U.S. businesses at a competitive disadvantage internationally. “The law looks good on paper, but in practice, it's a disaster,” Trump stated, emphasizing that excessive regulatory oversight harms U.S. economic and national security interests. Under the FCPA, companies and individuals could face up to 15 years in prison and fines of up to $250,000 for offering or coordinating bribes. The law was enforced in 24 cases in 2024 and 17 cases in 2023. Trump’s executive order tasks the attorney general with reviewing the law’s provisions. U.S. companies have previously been linked to corruption scandals involving high-ranking Kazakhstani officials. The most infamous case, known as Kazakhgate, dates back to the late 1990s. American businessman James Giffen was accused of funneling tens of millions of dollars in bribes, along with luxury gifts, to secure access to Kazakhstan’s vast oil reserves. The investigation implicated former President Nursultan Nazarbayev and ex-Prime Minister Nurlan Balgimbayev, who allegedly received payments through offshore accounts in exchange for favorable investment conditions. However, Kazakhstani officials were never formally charged, and Giffen ultimately received a minor fine. In December 2024, Mazhilis deputy Yermurat Bapi warned that a similar scandal — dubbed Kazakhgate-2 — could soon unfold. “According to my information, a new grandiose scandal is brewing in the United States,” Bapi stated in an interview with Elmedia. “The U.S. Department of Justice is preparing a new criminal case against global kleptocrats who previously relied on American companies, insurers, and consultants. If they used these services, they will face prosecution.” Speculation surrounding Kazakhgate-2 intensified after Nazarbayev’s December 2024 trip to Moscow to meet with Russian President Vladimir Putin. However, Trump’s decree has now cast doubt on whether the case will proceed. Another major corruption-related dispute involving Kazakhstan is the Stati case. Since 2010, the Kazakhstani government has been embroiled in legal battles with Moldovan oligarchs Anatol and Gabriel Stati over the early termination of their subsoil use contracts. The dispute has led to litigation across multiple jurisdictions, including the U.S., U.K., and EU countries, with Kazakhstan's National Fund assets being temporarily frozen. Some sources suggest that Timur Kulibayev, Nazarbayev’s son-in-law, played a role in the case. Corruption concerns are not limited to Kazakhstan. In late January 2025, Russian Prime Minister Mikhail Mishustin publicly criticized Kyrgyz authorities for allegedly extorting Russian businesses operating in Kyrgyzstan. “We urge the Kyrgyz leadership to cease administrative pressure on our companies and ensure the protection...

Legislation

Uzbekistan Advances Draft Law on Religious Policy

Uzbekistan’s Legislative Chamber has approved the draft law On State Policy in the Religious Sphere and sent it to the Senate for further consideration. The law, formally titled On Ensuring Freedom of Conscience of Citizens in the Republic of Uzbekistan and Approving the Concept of State Policy in the Religious Sphere, was first discussed in the lower chamber on January 31 and was open for public consultation until February 10. The draft law consists of seven chapters and 41 articles, outlining the goals of state policy in religious affairs and detailing 10 key tasks to support these objectives. The proposed legislation focuses on: Ensuring freedom and equality for all citizens, regardless of gender, nationality, language, or religion, while preventing discrimination Strengthening national unity and respecting traditions while ensuring equal opportunities for all communities Establishing equal legal conditions for citizens’ participation in social life Protecting the right to freedom of conscience without forced religious indoctrination Maintaining secularism in state policies and governance Ensuring public institutions and law enforcement operate based on secular principles Promoting religious tolerance and civic engagement Preventing civil servants from favoring or discriminating against any religion in their professional duties Advancing science, culture, and the arts while benefiting from global achievements Combating radicalization, extremism, and terrorism to protect public safety and social order During the public consultation period, citizens submitted more than 480 comments, suggestions, and recommendations. Lawmakers also held meetings with religious representatives and journalists to gather feedback. On February 6, officials met with representatives from 16 religious groups, all of whom expressed support for the proposed law, emphasizing that it would help maintain religious harmony and stability in Uzbekistan. Authorities stated that most citizens backed the initiative, recognizing its timely development and potential benefits for the country. A working group and the responsible committee reviewed all proposals and incorporated necessary adjustments before finalizing the draft.