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Russia Remains Tajikistan’s Largest Trade Partner

Russian news agency TASS is reporting that, according to the Statistics Agency under the President of Tajikistan, trade between Tajikistan and Russia has exceeded $1.1 billion in 2024 so far. During the first seven months of 2024, the trade volume between the two countries was 12.1% more than in the same period of 2023. Russia continues to be Tajikistan’s largest trade partner, and also accounted for 26.7% of all imports entering the country during this period. In terms of bilateral trade, China remains in second place, with turnover to and from Tajikistan of almost $1 billion. Rather surprisingly, Switzerland has now became Tajikistan's leading export partner. In the first seven months of 2024, Tajikistan sent 26.6% of its products to Switzerland. In January-July of this year, the trade volume between the two countries amounted to more than $641 million, and compared to the same period in 2023, it increased almost 110 times.

Uzbekistan Targets Economic Growth and Poverty Eradication

According to a report newly published by the US Department of State, titled “2024 Investment Climate Statements: Uzbekistan”, the country aims to develop its economy, work towards eliminating poverty and  achieve above-average income status by 2030. The government regards foreign direct investment as key to attaining its goals, and increasing interest has been expressed by American investors. Although challenges remain, Uzbekistan has the potential to become a regional economic leader thanks to its large and growing population, rich natural resources, and developed infrastructure. Bilaterally landlocked, the economy largely depends on trade with regional neighbors and thus, Uzbekistan cannot provide stable employment for its rapidly growing population of 37 million. State policy aims to ensure social stability and stabilize growth rates by directing public and private investments to areas that will create new jobs and strengthen the country’s economic sovereignty. The Government of Uzbekistan (GOU) manages investment flows through annual and mid-term investment programs, mainly concerning developments in infrastructure, industrialization, and natural resource projects. The current National Investment Program for 2023-2025 comprises nearly 800 projects worth $55.4 billion. Medium-term targets for 2030 are eradicating poverty and becoming a high-middle-income country. Foreign ownership and the control of airlines, railways, long-distance telecommunication networks, and other sectors related to national security require special GOU permission. By law, because foreign nationals cannot obtain a license or tax permit for individual entrepreneurship in Uzbekistan, they cannot be self-employed and must be employed by a legally recognized entity. The law in Uzbekistan states that local companies with at least 15% foreign ownership can qualify as having a foreign investment. The minimum fixed charter-funding requirement for a company with foreign investment is 400 million UZS (USD 1 equals 12,500 UZS as of March 2024). Minimum charter funding requirements can differ for business activities subject to licensing. For example, that for banking activities is 100 billion UZS; for microcredit organizations, 2 billion UZS; for pawnshops, 500 million UZS; for production of ethyl alcohol and alcoholic beverages,10,000; for lotteries, 200 million UZS; and for tourism operators, 400 BCRs; Base Calculation Rates (BCR) (one BCR equals 340,000 UZS or about $27, as of March 2024). Foreign investment in media enterprises is limited to 30%. The government closely monitors foreign investment in strategic sectors such as mining, energy, transport, banking, and telecommunications. There is no straightforward screening process, and some laws are designed to protect domestic industry and limit foreign competition, such as banning 529 imported goods in 2021. The ban applies when there are at least two domestic suppliers but no restrictions are imposed on US investors. Uzbekistan has laws to protect entrepreneurs and investors, including “On Competition” and “On Investments.” However, the rules can be complex and sometimes contradictory. In some cases, businesses must comply with government decisions that are unavailable to the public. Foreign investors often seek benefits through Presidential Decrees to avoid such issues, though these can be easily revoked. The regulatory system reform is still in progress. The government’s “Uzbekistan 2030” development strategy includes a range of...

Kyrgyzstan’s President Apologizes Over Niece’s Use of State Helicopter

It was a fairytale setting for a marriage proposal. The fiancée of the niece of Kyrgyzstan’s president asked her to marry him after the pair traveled by helicopter to the mountains near Bishkek. The problem? The helicopter belonged to the Ministry of Emergency Situations, a revelation that prompted scorn on social networks and drew an apology from President Sadyr Japarov, who has campaigned against corruption. The ministry said the aircraft was “legally leased” and Japarov said the government sometimes rents its helicopters for the benefit of the state's coffers. But the ostentatious use of the government asset, flaunted in a slick video showing Japarov’s niece, Lazat Nurkozhoeva, in the helicopter, was too much for some commentators who fumed about alleged government hypocrisy. “Relatives of the country's leadership should be an example to others. I am trying to stop waste,” Japarov said in an interview with the official Kabar news agency on Wednesday. He said his niece, Lazat Nurkozhoeva and her fiancée loved each other and the proposal would have gone off without a hitch if it had been handled in a simpler way. “If an ordinary citizen, a businessman, a tourist, or an investor wants to rent helicopters, the state will gladly provide them. Because every penny received from the lease goes to the state and is concentrated on the purchase of new helicopters. Thus, the aircraft fleet is continuously updated,” Japarov said. The Kyrgyz government has a total of about 20 helicopters, he said. “I used to criticize others. Now it’s come back to me,” Japarov said in his apology. In a statement, the Ministry of Emergency Situations said the “rental of the helicopter discussed in social networks” was arranged with a legal contract and that it received the equivalent of about $1,800 for the flight that lasted 56 minutes and occurred on Monday. Lazat Nurkozhoeva has a high profile on social media. She has created her own clothing brand and won the Miss Kyrgyzstan beauty pageant in 2020.

Uzbekistan’s Budget Deficit Expands Over First Three Months of 2024

According to information provided by the Ministry of Economy and Finance of Uzbekistan for January of this year, federal budget revenues amounted to 16.160 trillion som ($ 1.275 billion), and expenses amounted to 21.927 trillion sum ($1.728 billion), leaving the negative difference between revenues and expenditure at 5.767 trillion sum ($454.5 million). In February, state budget revenues were 16.909 trillion sum ($1.333 billion), and expenses were 24.137 trillion sum ($1.902 billion), a negative balance of 7.228 trillion sum ($569.7 million). In March, state budget revenues were 17.457 trillion sum  ($1.376 billion), and expenses were 24.307 trillion sum ($1.916 billion), with a monthly deficit of 6.850 trillion sum ($539.9 million). In total, the state budget deficit for the past three months amounted to 19.885 trillion sum ($1.567 billion).

President Writes-Off Debts of Tajiktransgaz

The Tax Service of Tajikistan has found that firms and enterprises have debts to the state amounting to over 900 million somoni ($82.5 million). But this notwithstanding, the government has written-off more than 202 million somoni of debts and fines owed by the company, Tajiktransgaz, cancelling debts of 144 million somoni, and fines of 58 million. Tajiktransgaz is currently an open joint stock company, which was founded in 1959 for the mass supply of liquefied natural gas to the population of Tajikistan. According to the company, Tajiktransgaz does not have the resources to pay.