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Kyrgyzstan Transport Central Asia Oil & Gas Export/import Economy Legislation

Kyrgyz Fuel Rules Set to Raise Prices Amid Fight With Black Market

As part of the fight against the shadow gasoline market, the Kyrgyz authorities plan to introduce a rule that all gas stations in the country must label fuel from June 1 this year. The plan meant is to tighten control over the production, movement, storage, shipment and sale of motor fuels, and the initiator of the innovation is the tax service. The draft law was approved by the Ministry of Economy of Kyrgyzstan; the document is undergoing public hearings. According to the bill, from June 1, all gas stations in the country will be required to sell only labeled fuel. There will be an exception only for fuels and lubricants produced in Kyrgyzstan and exported. The requirement will be for vendors to add a small amount of a special molecular marker to each batch of fuel. The tax service said that such a marker cannot be faked and cannot be washed off or altered in any way. Once the law comes into force, tax officials plan to create a mobile laboratory that will travel around the country and check gasoline at gas stations. "Tax officials in any corner of the country will be able to check the legality of movement and sale of fuel and lubricants, and apply sanctions measures if necessary," the Kyrgyz tax service stated. Fuel markers will make it possible to determine the origin of gasoline and prevent the mixing of different brands of fuel. Tax officials said some gas stations currently mix various additives to gasoline to artificially increase its octane number or dilute the fuel to increase its volume. This isn't the first time the authorities have tried to introduce fuel-labeling in Kyrgyzstan, Kanat Eshatov, president of the republic's Association of Oil Traders commented, explaining that gas station owners include the cost of these substances in their pricing. This means that for the average consumer, gasoline will become more expensive. "So far we do not know how much such labeling will cost. We count gasoline by tons. So we will have to buy a certain amount of this substance per ton, and this amount will fall on the shoulders of the consumer," Eshatov explained to the Times of Central Asia. In their justification for the bill, Kyrgyz Economy Ministry officials said the country's fuel and lubricants trade has a high shadow, or unregulated market component. The shadow market of gasoline continues to grow. For example, on the bypass road near Bishkek, which runs along the border with Kazakhstan, one can find a dozen illegal sellers of gasoline, which they sell in plastic bottles. Gasoline is smuggled into Kyrgyzstan from neighboring republics. According to the Kyrgyz Tax Service, in 2023 the agency seized almost six times as much illegal fuel as in 2022 - 19,600 liters versus 3,400 liters in 2022. Legal gas stations sometimes also sell smuggled gasoline. With the introduction of labeling, this practice will stop, the tax service said.

Legislation Central Asia Economy Uzbekistan Social

Uzbekistan’s Gold Mining Aims to Replace Labour Migration

Most of the country's gold, located in the regions of Navoi, Samarkand and Bukhara, cannot be extracted industrially due to low concentration and difficulties in accessing the mountainous terrain. Uzbekistan's gold reserves for artisanal mining exceed 3 tons per 590 hectares. Gold mining by artisanal miners began to gain momentum after 2019 when the authorities issued permits for excavation in specified areas and since then, year on year, the Ministry of Geology has added new sites which are available through electronic auctions. Any Uzbek resident acquiring a plot, can mine for a period of three years and sell the extracted gold to mining and metallurgical plants and licensed jewellery companies. Mining has existed in Uzbekistan for many years, but prior to 2019, much of it was illegal. The gold was often smuggled out of the country, and as a result of makeshift mines collapsing, fatalities and serious injuries were common. The legalisation of mining activity aims to help safeguard the miners and reduce the illegal export of gold from the country. Moreover, by providing jobs for residents, it will help curb labour migration. "My job consists of digging ore and taking it to the washing plant. On average, I earn $240-$315 a month; enough to feed myself," excavator driver Sardor Mardiyev told Agence France Press. Mardiyev currently works at a gold-mining site in the village of Soikechar, Nurata, in Uzbekistan's Navoi region and according to owner, Zakhid Khudaiberdiyev, the site produces an average of 12 to 15 grams of gold per day. However, while providing an economic lifeline for workers who might otherwise work abroad, independent mining is damaging the soil and holes dug by miners pose a serious risk to farmers' livestock. In addition, even small-scale mining consumes large amounts of fresh water, which is scarce in the region. Uzbekistan ranks 15th in the world in terms of gold reserves, which experts estimate to total 362 tons. Since the beginning of 2024, revenue from the gold trade has accounted for a third of Uzbekistan's total exports and in accordance to a call by President Shavkat Mirziyoyev, production is set to increase by 50 percent by 2030.

Culture Central Asia Uzbekistan Rule of law Legislation Social

Uzbek Cultural Agency Seeks to Prevent Damage to Archaeological Relics

Uzbekistan’s Prosecutor’s Office in collaboration with the Cultural Heritage Agency, is currently implementing regulations aimed at protecting and preserving the country's vast wealth of historical monuments. During a recent investigation related to the new regulations, the Prosecutor's office discovered the destruction of the Kattatepa monument in the Denov district of Surkhondarya by locals wishing to build a barn. The monument, constructed between the 5th-7th centuries, was of significant historical importance and the cost of damage to the archaeological zone has been estimated at 23.3 billion (~$1.85 million). Sadly, this is not an isolated case. Three Uzbeks were previously found guilty of causing damage worth 2.6 billion ($ 206,289) to the Oktepa-1 monument in the Navoi region by arbitrarily excavating 193 cubic meters of soil. The conversion of 164 cubic meters of the archaeological site of Badakhshontepa to arable land, is estimated to have resulted in damage valued at 2.3 billion sum ($182,486), and damage sustained by unlawful excavation of 12 cubic meters at site of the Yamonkiyottepa monument, estimated at 163 million ($12,933). Reports of an Uzbek citizen's commandeer of 0.48 hectares of land around the medieval Tolmozortepa archaeological monument in the Namangan region, resulted in damages of 871 million ($69,107). Damage to the nation's archaeological relics is considered a serious crime and under Uzbek law, carries punishment of up to 7 years imprisonment.

Legislation Uzbekistan Central Asia Tourism

Demolitions in Bukhara Continue Despite UNESCO Demands for a Halt

Demolitions in Bukhara's buffer zone continue despite Uzbekistan's promises to harmonize its plans with the United Nations Educational, Scientific and Cultural Organization (UNESCO). On February 26, demolition began on the 23,000-seat Bukhara Arena stadium near Bukhara's historic centre. Ignoring the fact that construction of the Bokii Bukhoro tourist centre is under review by ICOMOS, the advisory body of UNESCO's World Heritage Committee, local authorities are activating their plans. UNESCO claims that on February 8, a letter was sent to the Uzbek government requesting clarification of plans for the project, but have received no response to date. On March 2, Sara Noshadi, head UNESCO in Uzbekistan, issued the statement: "UNESCO is closely monitoring the state of conservation of the Bukhara World Heritage Site, including concerns expressed by civil society about potential construction plans in the buffer zone of the site. The World Heritage Centre has contacted the Uzbek authorities on this matter to request additional information and clarify the situation. The World Heritage Centre hopes that the authorities will fulfil their obligations under the World Heritage Convention and will not undertake any demolition/construction projects without prior notification and assessment by the World Heritage Committee, whose next session is in July 2024. UNESCO stands ready to provide expertise and assistance to safeguard the Outstanding Universal Value of the site." Alerte Héritage is a non-governmental organization for the protection of Central Asian architectural and cultural heritage headed by Boris Chukhovich. A specialist in architecture and the protection of cultural heritage, Chukhovich actively advocates the protection of Bukhara's historic centre. He strongly criticized the plan for the tourist centre, as "disastrous" and a "sham" and stated, "We appeal to UNESCO, which is responsible for World Heritage sites, and to the Uzbek government, which is responsible for the preservation of the country's cultural heritage, as well as to all concerned institutions and individuals: the demolition must be stopped and further plans discussed and made available to the public as soon as possible!" Bukhara joined UNESCO's list of World Heritage Sites in 1993 and reflects the urban planning and architecture of the period of Uzbek rule by the Shibanid dynasty. The territory of the historical centre of Bukhara is 216 hectares, and its protected area, 339 hectares. The total area of the planned tourist centre is 32.6 hectares, all within the protected area of Bukhara's historical centre which contains two objects of cultural heritage included in the National Register: the Sallakhkhana gate, restored in 2012, and the bust of Abu Ali ibn Sina, installed in 1980. However, according to local officials, Bukhara's infrastructure -- much of which was built during the Soviet era -- needs improvement to attract tourists. According to the requirements of the Convention for the Protection of the World Cultural and Natural Heritage of UNESCO, any major facilities planned for construction in Bukhara's historical centre and its buffer zone must be pre-approved by UNESCO and, according to local legislation, by the Cultural Heritage Agency of Uzbekistan.

Legislation

Kazakhstan Refuses to Ban Kyrgyz-Licensed Products Despite Threat

The Ministry of Trade and Integration of Kazakhstan had drawn up a document which would have introduced a ban on the import of products licensed in Kyrgyzstan from July 2024. The ministry explained that Bishkek issues licenses for goods without proper testing, instead using "gray schemes" from the shadow or informal economy. Kazakhstani authorities estimated that by the end of 2023 the country had 413 laboratories that could issue quality certificates for products, while Kyrgyzstan had only 43. At the same time, Kyrgyz certification laboratories have issued an exponentially higher number of permits than laboratories in Kazakhstan over the past few years. Moreover, Kyrgyzstan issued half of all permits to Kazakhstani business owners. According to Kazakhstani authorities, they have repeatedly received complaints about the unfair work of Kyrgyz licensing and product-conformity verification bodies. After talks with the Kyrgyz Ministry of Economy and Commerce, Kazakh deputy prime minister Serik Zhumangarin said the decision to completely ban Kyrgyz certification laboratories is premature. "First of all, the problem is not only in Kyrgyzstan, there is a problem in every Eurasian Economic Union country. It's just that in some countries, of course, it's all off the scale. The point here is that I consider the Trade Ministry's decision to be premature. The draft decree is not a government decision. It was not properly approved, so we stopped it," Zhumangarin told Kazakhstani media. According to the him, this is an issue that needs to be negotiated, and the process is already underway. In turn, the Kyrgyz Ministry of Economy said it had consulted with its Kazakh counterparts to strengthen control over laboratories in the area of product-conformity assessment. As a result, it was decided to develop a joint plan to combat gray -- meaning falsely obtained -- certificates without imposing restrictions and bans on the circulation of products. As a result of negotiations, the parties agreed to unite information systems in this area, as well as to exclude from a single register of unscrupulous laboratories those who previously issued certificates for products without quality-verification assessments. From now on, Bishkek and Astana will also exchange information on identified violations and fully digitize the process of issuing permits -- from application to issuance of certificates for products. The Kazakhstani side is satisfied with this. Earlier this month, the Times of Central Asia reported that hundreds of trucks have become backed up on the Kyrgyz-Kazakh border and are unable to cross into Kazakhstan. Last week, hundreds of trucks were queued up on the Kyrgyz side, waiting in line. This situation has happened many times in the past, and merchants and transporters have suffered financial losses. Each time it occurs, one side blames the other. The Kyrgyz side believes that Kazakhs create artificial administrative obstacles at the border to weaken competition from Kyrgyz imported goods -- and Kazakh authorities accuse Kyrgyz truckers of unwillingness to comply with Astana's requirements, using fraudulent documents for transported cargo. Coincidence or not, after the parties agreed that they would not ban Kyrgyz laboratory...

Central Asia Kazakhstan Legislation Social

Kazakhs Owe Almost Quarter Million Dollars in Alimony and Child Support

Authorities in Kazakhstan registered 172 criminal offenses for non-payment of alimony in favour of children, incapacitated parents and former spouses in the first two months of 2024. The figure represents a fall of 1.1 percent compared to 2023. The most frequent evaders were residents of the regions of Almaty (38 cases), Kostanay (19 cases), East Kazakhstan (17 cases), Karaganda (13 cases) and Pavlodar (11 cases). The least culpable locales in non-payment of family support were Turkestan, Aktobe, and Almaty city, with one case in each. In 2023, 166 people nationwide, did not receive support payments. This year, the recorded number of adult victims is 158; a decrease of 4.8 percent. Among them are 151 women, nine minor children and two students. The largest sector of adults not receiving alimony comprises 82 Kazakh women aged 30 to 39; 38 women aged 18-30; 24 women aged 40-49; one citizen aged 50-59, and four senior citizens aged over 60. It's worth noting that the number of offenders for non-payment of family support in Kazakhstan increased by 29.6 percent to 70 people over the past year. According to official data, most are unemployed. Similar to the age demographics of those denied court-ordered payments, the culprits were often young or middle-aged adults. In the 30-39 age bracket, 39 Kazakhs were in arrears on alimony; in that of 40-49, 17, and in the 21-29 bracket, 11. In addition, two violators were under 20 and one was aged 50-59. The total outstanding amount owed by persistent child support defaulters to children, as well as disabled parents and spouses, currently stands at $222,500; 43.6 percent more than in 2023. As a result of pre-trial proceedings, authorities managed to recover $40,600 owed to individuals. Last year, more than 6,000 Kazakhstanis were subject to administrative proceedings for evasion of alimony and 300 more were sent to court on criminal charges. The most common reasons for non-payment are a lack of stable income or property that can be seized. According to the latest data, almost 15,000 citizens of Kazakhstan are forbidden to leave the country because of liens against them for non-payment of alimony and other incurred debts.