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SCO Opens Foreign Exchange Alliance for Yuan, Tenge, and Ruble

The Shanghai Cooperation Organization (SCO) has instigated an Alliance of Currency Transactions to increase the share of settlements in national currencies—the Kazakh tenge, the Russian ruble, and the Chinese yuan—in mutual trade between SCO member states. The main goal of the initiative, launched in Qingdao based on the Demonstration Zone of Regional Trade and Economic Cooperation within the framework of the SCO Capital Park, is to reduce dependence on the US dollar and the euro in international settlements and in turn, strengthen the economic independence of the organization's member countries and increase the stability of their financial systems. In addition, the Alliance will help simplify currency transactions, accelerate cross-border payments, and create a more transparent and efficient financial infrastructure between the SCO member countries. The initiative reflects the general move towards  strengthening economic cooperation within the organization, including China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, Uzbekistan, India, Pakistan, Iran, and Belarus. As previously reported, the SCO states are increasing the use of national currencies in mutual settlements. The creation of the Alliance was a step in the development of regional financial integration, and its launch underscores the growing interest of SCO countries in using their currencies in foreign economic activity.

Kyrgyzstan and Tajikistan to Test Facilities Prior to Launch of CASA-1000

On August 9, Ministers of Energy of Kyrgyzstan and Tajikistan agreed to a plan to test overhead lines, transformers, and substations prior to launching the Central Asia-South Asia (CASA-1000) electricity transmission project, scheduled for completion by the end of 2024. The construction of a 500 kV transmission line with a length of 456 kilometers is now nearing completion in Kyrgyzstan. All of the supports have been installed and 428 km of the 456 km of the transmission line have been strung. The remaining section will be finished before the end of August 2024. The CASA-1000 project aims to connect the energy systems Kyrgyzstan and Tajikistan with those of Afghanistan and Pakistan and through the new infrastructure, transport 1,300 megawatts of surplus electricity from Central Asia to high-demand electricity markets in South Asia. With spring and summer rainfall and significant water flow from the mountains, hydropower-rich Kyrgyzstan and Tajikistan produce surplus electricity during the summer. At the same time, neighboring South Asia, Afghanistan and Pakistan experience chronic electricity shortages, especially during the summer months. By connecting the four countries through a shared electricity transmission system, Kyrgyzstan and Tajikistan can sell clean hydropower-produced surplus electricity in the summer months to Afghanistan and Pakistan.

Kyrgyzstan Strengthens Protection From Family, Sexual, and Gender Violence

The President of the Kyrgyz Republic, Sadyr Japarov has signed a law aimed at strengthening the protection of its citizens from family, sexual, and gender violence. The law provides for amendments to several legislative acts and aims to provide comprehensive assistance to victims of various forms of violence. A key objective is to ensure victims' access to justice and protect their rights and interests. The law is being adopted due to the alarming situation with the level of family and gender violence in Kyrgyzstan. In 2021, more than 10,000 cases were registered, but only 2.5% of them proceeded to court. In 2023, the number of cases increased to 11,000, and 95% of the victims were women. The increasing number of such incidents and the lack of protection for victims necessitated a review of the relevant legislation. The new law is designed to address gaps in legal protection for victims and create stricter measures to punish perpetrators.

Uranium Lawsuit Against Kyrgyz Government To Be Considered in Washington, D.C.

A case against the Kyrgyz authorities will be heard in Washington, D.C. in November 2024. At the end of 2022, International Mining Company Invest Inc. - which is headquartered in the U.S. - filed a lawsuit in international arbitration, accusing the Kyrgyz authorities of illegally expropriating investments. The company estimated its losses at $63 million. In 2009, International Mining Company Invest Inc. received the right to use subsoil for geological exploration. In 2013, the country's authorities issued a license to the foreign company to search for uranium and other metals at one more site. International Mining Company Invest Inc. carried out work in three regions of the republic; however, in 2019, a moratorium on exploration and development of uranium and thorium deposits was introduced. The company lost its license and initiated arbitration proceedings at the International Center for Settlement of Investment Disputes. Speaking at a press conference in Bishkek, Kyrgyz Justice Minister Ayaz Baetov said the case will be heard in international arbitration in Washington in November 2024. "The so-called uranium moratorium was the reason for this case's emergence. The case is now being considered. We have our arguments; they have theirs," the official stated. The previous authorities imposed a moratorium on the mining and exploration of uranium and thorium deposits; the new administration lifted the ban, but announced that Kyrgyz companies would develop the deposits.

Drones, Armored Vehicles, and Planes: Kazakhstan Announces Large-Scale Rearmament

The Defense Department of Kazakhstan has provided a report on its work for the first half of this year, documenting that the Kazakh army intends to update its weaponry. The geography of supplies is extensive, from Chinese quadcopters to European heavy transport aircraft. In 2024, the delivery of the armored wheeled vehicles Arlan (produced by Kazakhstan Paramount Engineering) and COBRA II (Turkish Otocar) is expected. By the end of the year, the department plans to purchase complex tactical unmanned systems (SUNQAR) and mini unmanned systems (EVOMax). Experts believe that the decision to buy drones was dictated by the mass use of such systems in the Russian-Ukrainian conflict. These hostilities have convincingly proved that quadcopters are an effective type of weaponry. The Defense Ministry reports that the "Armed Forces continue rearming with modern equipment models, including domestically produced ones. More than equipment was received this year, 50 units were overhauled." Five hundred units of new fighter jets and anti-aircraft missile systems formed of high-precision weapons classes are being purchased for the Air Defense Forces. According to Orda.kz, the choice was made to favor the Russian Su-30SM aircraft. Earlier, there was information about the possible purchase of French Rafale fighters. "In December last year, the Defense Ministry noted that given the high cost of French Rafale aircraft, the purchase of Russian planes is being considered. The Su-30SM is a multi-role fighter, and, logically, the Defense Ministry does not advertise that it will buy planes, and possibly SAMs, from a 'sub-sanctioned ally,'" the publication noted. In addition, the ANKA heavy-class unmanned aerial vehicle system is undergoing experimental military operations. The Turkish strike UAV entered service with four countries in 2023. This year, production of the ANKA will begin in Kazakhstan. The report indicates that the European Union is expected to deliver the first A400M heavy-lift military transport aircraft and an anti-diversion boat for the Navy. The department stated, "Shops have been launched to repair armored and automotive equipment, troop air defense, anti-tank systems, artillery, and small arms. So far, more than 1.5 thousand military equipment units have been repaired." In the annual rating of countries based on their level of military power Global Firepower-2024, Kazakhstan was placed 58th out of 145. Kazakhstan's armed forces are recognized as being the strongest in Central Asia.

Central Asia to Forecast Energy Risks

On August 6, Astana hosted the first meeting of energy ministers of Central Asian states, chaired by Kazakhstan’s Minister of Energy Almasadam Satkaliyev. Noting the considerable potential for developing energy cooperation between the five Central Asian countries, Minister Satkaliyev stated that today, the challenges faced by the Central Asian countries include global disruptions of the stability of energy supplies and fluctuations in oil and gas prices. "To ensure the reliability of energy supplies, it is necessary to develop mechanisms for forecasting and managing these challenges and to strengthen cooperation between our countries," ventured Satkaliyev. Calling on his colleagues to strengthen cooperation in energy trade, speed up low-carbon development, and move towards achieving carbon neutrality, the minister stressed, "An important factor in the development of regional cooperation is the comprehensive attraction of investments and the implementation of large joint technological projects in the energy sector to stimulate the development of modern energy infrastructure in Central Asian countries." Satkaliyev added that Kazakhstan is currently progressing the implementation of a large-scale project in the development and transmission of green energy with Azerbaijan and Uzbekistan, as well as continuing discussions on the planned construction of a central hydroelectric power plant, Kambarata HPP-1, with Kyrgyzstan and Uzbekistan. Following the meeting, the Central Asian energy ministers signed a communiqué, laying the foundation for further cooperation in all key energy areas between the countries.