akorda.kz

Kazakhstan and Kyrgyzstan Enhance Allied Relations

On April 19 Astana hosted the sixth meeting of the Supreme Interstate Council of Kazakhstan and Kyrgyzstan. Chaired by Kazakh President Kassym-Jomart Tokayev and Kyrgyz President Sadyr Japarov, discussions focused on the development of bilateral cooperation in economy, trade, investment, and agriculture, in addition to joint projects regarding transport, water use and energy resources.

The two leaders then signed an Agreement on Deepening and Expanding Allied Relations, aimed at providing a new impetus to the development of Kazakh-Kyrgyz relations.

During the conference, Kyrgyz President Japarov stated, “Kazakhstan is our close neighbour, a fraternal country and one of our main trading partners. Kazakhstan is a priority in our foreign policy. There are no political or regional differences between our countries.”

In support, President Tokayev expressed his wish for there to be no unresolved issues between the two neighbouring countries and drew particular attention to the need to strengthen trade and economic ties.

Kazakhstan is currently one of Kyrgyzstan’s key partners in trade and investment. Last year, mutual trade turnover reached $1.5 billion and during their talks, the leaders confirmed their intention to increase that figure to $2 billion.

The parties also signed an Agreement on Mutual Protection of Investments.

Referencing measures to expand the volume of goods transported across the Kazakh-Kyrgyz border and improvements in customs clearance, Tokayev stated, “We have started modernizing the border checkpoints at Karasu, Besagash, Aukhatty, Sartob, Aisha Bibi, Sypatay Batyr, and Kegen. Each will be equipped with digital technologies, with work expected to be completed by 2028.”

President Japarov, in turn, announced that an agreement had been reached to resume the operation of the Kichi-Kapka and Kamyshanovka checkpoints to help increase bilateral trade and relieve congestion.

Turning to the importance of interaction in the water and energy sector, the Kazakh president said, “In recent years, the urgency of efficient and equitable use of transboundary water resources has increased. We shall continue our coordinated work and have agreed to soon give approval to a schedule for interstate water management structures and implement it in a timely manner. Kazakhstan is ready to fulfil all obligations and jointly implement important projects.”

primeminister.kz

Kazakh, Chinese and Russian Companies Unite on Polyethylene Production Plant

On April 19, a meeting was held between Magzum Mirzagaliyev, Chairman of the Board of KazMunayGas, Zhao Dong, President of the China Petrochemical Corporation (SINOPEC), and Mikhail Karisalov, Chairman of the Board of Russia’s SIBUR LLC.

In the presence of the Prime Minister of Kazakhstan Olzhas Bektenov, the parties signed a tripartite protocol officially finalizing SINOPEC’s entry into the joint construction of the first integrated gas chemical complex for polyethylene production in Kazakhstan’s Atyrau region.

Costing around $7.7 billion, comprising investments of 40%, from KazMunayGas, 30% from SINOPEC 30%, and 30% from SIBUR, the plant will have the capacity to manufacture 1.25 million tons of polyethylene per year, equivalent to 1% of that produced globally.

Speaking at the event, Bektenov emphasized the importance of the project due to its focus on the production of high value-added products.

According to a report issued by his press office, a gas separation complex (GSC) will be built in Tengiz to supply ethane via pipeline to Karabatan in the Atyrau region to enable the new plant to produce 22 grades of polyethylene using Chevron, Phillips and Univation’s. licensed technology.

The use of polyethylene is expansive ranging from medicines, prosthetics and syringes, to plastic wear-resistant pipes, construction materials, car parts, bulletproof vests and clothing for astronauts. It is also commonly employed in the food industry.

Scheduled for completion by 2029, the plant’s target markets include Kazakhstan, CIS countries, China, Turkey, and Europe.

@iStock

The Taliban and its Neighbors: An Outsider’s Perspective

This is part two of a piece of which part one was published here.

The topic of a regional approach to solving Afghanistan’s problems is increasingly being discussed in various expert and diplomatic circles. The International Crisis Group (ICG), a reputable think tank whose opinion is extremely interesting as part of an “insider vs outsider” set of viewpoints, writes about this in particular. A report from ICG entitled “Taliban’s Neighbors: Regional Diplomacy with Afghanistan” is one of the first works to summarize the role and place of the region as regards the situation around Afghanistan. In the voluminous work, the authors touch upon almost all aspects – issues of diplomatic recognition, security, terrorist activity, trade and economic relations within the region, water issues and others.

In their conclusions, ICG analysts point out that many steps towards regional cooperation aren’t related to Western donors, but European countries should nevertheless be interested. Europeans in particular would benefit from a stable, self-sufficient region that isn’t a major source of illegal drugs, migrants or terrorism. But sanctions and other Western measures designed to show disapproval of the Taliban are obstacles to a more functional relationship between Kabul and the countries of the region. Significant progress depends on Western support – or at least tacit acquiescence. While such practical steps need not lead to  recognition of the Taliban regime, they will contribute to regional peace and security.

However, experts are concerned that the emerging regional consensus is directly dependent on security and stability issues in Afghanistan – if regional neighbors feel that the government cannot restore order within Afghanistan’s borders and contain transnational threats, the consensus may well collapse. If that happens, regional countries may be tempted to choose sides in another intra-Afghan civil conflict, repeating the destructive pattern of past decades.

At the same time, experts believe that the first step toward improving regional security cooperation would be to cool down the rhetoric on all sides and get regional players to agree on security issues, even if they have different priorities. Security information sharing within the region also suffers because the Taliban have yet to build a trusted dialog. They lack credibility because of their complete denial of certain threats. Meanwhile, countries in the region and the world are guided by inflated estimates of militant numbers.

The ICG’s assessments of the security threats posed by Islamic State Khorasan Province (ISKP) are broadly in line with the consensus – in some ways, the growing concern about ISKP is paradoxical due to the fact that the overall level of violence associated with the group has declined over the past two years. The question of whether ISKP could become a more potent transnational threat in the future remains open. So far, its operations outside of its original territory near the Afghanistan-Pakistan border have been limited. On the other hand, ISKP continues to attract recruits from different parts of Central and South Asia and encourages attacks outside Afghanistan – arguably making it the most dangerous armed group in the region.

As the ICG summarizes, as Western influence in Afghanistan wanes, much of the responsibility for improving regional cooperation falls on the shoulders of the Taliban and its neighbors. They must clear the way for trade and work together to ensure each other’s security.

 

Aidar Borangaziyev is an Open World Foundation expert and a consultant for the Investment Group, ACME.

@SKlab

Chinese Investors Plan to Build Solar Power Plant in Tashkent Region

Chinese investors have agreed to implement more major projects in Uzbekistan, according to statements made following the visit of a trade delegation from China to Uzbekistan’s Tashkent region.

Chinese businesses intend to invest $2 billion in the construction of a solar power plant in Ahangaran, $25 million in providing food for employees of social facilities, and $20 million in the construction of a diagnostic center. Also, Chinese investors are ready to invest $90 million in projects focused on the production of pharmaceutical products, metal structures, artificial fiber and threads.

Earlier, Uzbekhydroenergo and China Southern Power Grid International agreed on joint construction of a 600 MW pumped storage hydropower (PSH) called Verkhny Pskem. The cost of the project is estimated at $1 billion.

The first solar power plant in Uzbekistan was established with the assistance of the World Bank Group, Abu Dhabi Future Energy Company (Masdar), the Asian Development Bank and the Government of Uzbekistan. The station, with a capacity of 100 megawatts, became the country’s first large-scale renewable energy facility.

According to Uzbekistan’s Ministry of Energy, the country plans to build about 25 large-scale solar power plants in the next 10 years.

@daryo.uz

Poor-Quality Gasoline Refused by Taliban Doesn’t Belong to Uzbekistan

The Customs Committee of Uzbekistan denied that gasoline returned by the Taliban due to its poor quality in fact belongs to Uzbekistan, according to a post on the committee’s Telegram channel. The Times of Central Asia has reported that the Taliban returned 120,000 liters of gasoline imported via the Hayraton border point to Uzbekistan due to its poor quality.

It has been reported that the returned oil products didn’t originate in Uzbekistan. On the contrary, 120 tons of gasoline loaded in two tanker trucks were sent to Afghanistan from Russia and moved through the territory of Uzbekistan only in transit mode.
On February 7, these tankers left for Afghanistan through the Ayritom station in Surkhandarya, Uzbekistan. These oil products returned by Afghanistan entered Uzbekistan on April 6 through the Ayritom station.

Also, the Customs Committee asked certain mass media operating in the country not to distribute unverified, one-sided, unconfirmed information. “At this point, we ask the mass media to study carefully before disseminating such information, taking into account the friendly relations between the two countries,” the Customs Committee report said.

@asal.media

Port of Turkmenbashi Begins Cargo Transport With Russian Port of Olya

Turkmenistan’s Caspian Sea port of Turkmenbashi has started shipping cargo to the Russian port of Olya on the Turkmenistan-flagged ferry Bagtyyar, according to a report from the Turkmen Sea and River Routes (Turkmendeñizderýaýollary) Agency. The agency calls this voyage an important step towards the development of trade relations between Turkmenistan and Russia — and an opportunity for the national merchant fleet to deliver perishable goods to their destination on time.

The Bagtyyar, which according to Marine Optima was built in 2015 and has a summer deadweight tonnage (DWT) of just over 3,300 tons, is equipped with modern safety and navigation systems which guarantee cargo safety.

Additionally, the Turkmen side says it’s ready to open a shipping route for grain crops to be transited from the southern regions of Russia through the Caspian Sea to the countries of the Persian Gulf and other markets. At the port of Turkmenbashi, goods can be transshipped through the free zone without customs fees for up to three years.

2018 saw the opening of the port of Turkmenbashi, which increased access to markets throughout the Middle East and Europe. The project, worth $1.5 billion, was carried out by Gap Inşaat, a company based in Turkey.

With the exception of oil products, the port can handle 17 million tons of different types of cargo annually. Four terminals (general cargo, container, bulk cargo and car ferries) are located on an area of more than 150 hectares.