Tag Archives: Kazakhstan

Comment — Vaccine programmes show geo-political bent

JAN. 22 2021 (The Bulletin) — Governments in the region are taking different approaches to vaccinating their populations against Covid-19, the disease caused by the coronavirus. And it makes for instructive analysis.

In Georgia, the most pro-Western country in the region, the government has said it intends to start inoculating its population next month with the Pfizer vaccine. Sputnik-V, the Russian Covid-19 vaccine, doesn’t even feature in the thinking of the EU-dreaming, NATO-aiming Georgian government. 

In Armenia, though, Sputnik-V is at the top of the list, although its inoculation ambitions are more limited. Economically, Armenia has been hit the hardest by the coronavirus pandemic and it plans to inoculate just the 10% of the population that it considers to be most at risk.

You may have expected Azerbaijan to also prioritise using Sputnik-V to get on top of the coronavirus but, instead, it has placed its cornerstone order with China and its vaccine Sinovac. This reflects growing tension, and possibly even rivalry, between Azerbaijan and Russia. Azerbaijan heavily leaned on Turkey to defeat Armenia in a six-week war for control of the disputed region of Nagorno-Karabakh and in the process appears to have secured Turkey a foothold in the South Caucasus, irritating the Kremlin. Azerbaijan has also completed construction of a gas pipeline running from the Caspian Sea to Europe and will come into direct competition with Russia.

Azerbaijan hasn’t ignored Sputnik-V altogether and has put in an order, spreading its bets, a tactic it uses, some would say, in its foreign policy.

On the other side of the Caspian Sea, it’s a more opaque, or should that be confused, outlook for vaccine orders. Turkmenistan, which officially denies that it has ever had a case of Covid-19 within its borders was the first country in the region to approve the use of Sputnik-V. Why? 

In Kazakhstan, the authorities have said that they will use the Sputnik-V vaccine to inoculate a third of the population by the end of the year and in Uzbekistan, one of the test centres for Sinovac, the government there has said it will deploy a mix of the Russian and Chinese vaccines to inoculate its population. Uzbekistan, with a population double the size of Kazakhstan’s, has the biggest inoculation logistics challenge.

Bottom of the list are Kyrgyzstan and Tajikistan. Reflecting their far poorer status, both countries are relying on donations from Russia and China as well as the UN’s COVAX scheme for their inoculation cover. Officials in Kyrgyzstan and Tajikistan have said that the coronavirus pandemic has largely passed. This is, like their vaccine rollout plans, largely wishful thinking.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Exports from Central Asia to China fall

JAN. 22 2021 (The Bulletin) — Exports from Central Asia to China plummeted in 2020, Chinese data showed, because of a drop in demand for products and the closure of borders as countries tried to stall the spread of the coronavirus pandemic. The data showed that exports from Tajikistan and Kyrgyzstan dropped by around 47% and from Turkmenistan and Uzbekistan by around 30%. 

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kazakhstan to set up monetary policy committee in Central Bank

ALMATY/JAN. 21 2021 (The Bulletin) — In an attempt to both modernise the Central Bank’s decision-making process and to inject some confidence into its currency, Kazakhstan set up a Monetary Policy Committee that will oversee interest rate setting decisions and inflation targets.

When it comes into operation later this year the committee will be the first focused on monetary policy in Central Asia and will, eventually, include independent economists.

“The establishment of the Monetary Policy Committee is in line with the best practices of inflation–oriented countries and will increase the efficiency and transparency of monetary policy decisions,” the Central Bank said in a statement.

Like other currencies in the Central Asia and South Caucasus regions, the impact of the coronavirus pandemic has buffeted Kazakhstan’s tenge, forcing it down to below 450/$1 in March last year from around 380/$1 in January. It is now trading at 420.4/$1.

Confidence in the tenge was already weak before the coronavirus pandemic as the Central Bank was blamed for its collapse in 2014 after a sharp fall in oil prices.

And it was perhaps with this in mind that Kazakh President Kassym-Jomart Tokayev ordered, in September last year, a Monetary Policy Committee to be set up. The order also came during a more general modernisation of the Kazakh Central Bank. It has dusted off plans to shift its headquarters to Nur Sultan from Almaty. The original plan was scrapped in 2015 after the economy went into recession.

On its new Monetary Policy Committee, analysts said that the Central Bank needs to move quickly to bring in independent economists. And the Central Bank agreed.

“In the medium term, the Committee will include independent members who specialise in macroeconomics and monetary policy and have extensive experience,” it said.

In its last interest rate setting decision, in December last year, the Kazakh Central Bank kept its core interest rate at 9%, saying that inflation was stable.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Coronavirus forces closure of Kazatomprom mines

JAN. 20 2021 (The Bulletin) — Kazatomprom, Kazakhstan’s majority state-owned uranium miner, suspended operations at two of its mines in the south of the country after workers tested positive for the coronavirus. Kazatomprom didn’t say how many workers had contracted the coronavirus at its sites in the Turkestan region, nor for how long they will be closed for. Kazatomprom also didn’t say what effect the closures would have on output.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Remittance flows to Kazakhstan fall

JAN. 20 2021 (The Bulletin) — Remittance flows to Kazakhstan, an important indicator of the economic health of the entire Central Asia region, dropped by 18.5% in 2020, the ranking.kz economic website reported. It said that the flow of cash from Russia dropped by nearly 50%, highlighting the impact of the coronavirus pandemic on the Russian economy. Remittances are a vital source of income for people in Central Asia. After Russia, the second most important origin of remittances to Kazakhstan last year was South Korea.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Power outages dent Kazakh oil exports

JAN. 18 2021 (The Bulletin) — Power outages in Kazakhstan have caused Kazakh oil exports to fall by around 130,000 barrels per day, Reuters reported by quoting a source. The source said that power outage problems were impacting production at the country’s two main fields, Tengiz and Kashagan, in the west of the country. From Jan. 17, the source said, Kazakhstan had been pumping 1.62m barrels of oil per day, down from its target of 1.75m.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Comment: New year starts off with new elections in Kyrgyzstan and Kazakhstan

JAN. 8 2021 (The Bulletin) —  So, the New Year is set to start in Central Asia with two political stability tests. A parliamentary election in Kazakhstan and a presidential election in Kyrgyzstan, both scheduled for Jan. 10, will provide early litmus tests on the stability of both countries and also the popularity of their current governments.

In both countries the incumbents will win. Parties supporting Pres. Kassym-Jomart Tokayev will win a majority in the Kazakh parliament, as they always do, and Kyrgyzstan’s Acting-President Sadyr Japrov will win a contest to be sworn in as full president for a single seven-year term.

Neither elections are good adverts for democracy in the region. Opposition groups have effectively been banned from standing in the Kazakh election, and there is a chance that protests will occur in an increasingly restless Almaty.

In Kyrgyzstan, Japarov will be elected on a popular ticket but he is also using his popularity to bend Kyrgyzstan’s constitution to his will. People in Kyrgyzstan will be asked to vote on two issues on Jan. 10. As well as who they want to become president, voters will have to vote on whether they want to change the country’s constitution, as pushed for by Japarov, to boost the power of the president at the expense of parliament.

This is where the controversy lies. By pushing for these tweaks, Japarov, who was freed from jail during a coup in October and quickly installed as Acting-President, is essentially tearing up a constitution sponsored by the West and adopted after a revolution in 2010. It was supposed to safeguard democracy in Kyrgyzstan and turn it into a beacon for the rights of ordinary people in a region dominated by autocrats. Instead it looks to be heading to the scrap heap.

Western influence in Kyrgyzstan has diminished and shrivelled since the US withdrew its airbase from outside Bishkek in 2014. During the coup in October, Western diplomats had to look on, warning of the threat to democracy by the ascent of Japarov through street-level politics. Now they are looking on as he manipulates the constitution to strengthen his position.

Japarov has argued that the parliamentary democracy system was imposed on Kyrgyzstan by well-meaning but misguided intelligentsia types who lived in central Bishkek and didn’t understand the country. He said that Kyrgyzstan was too young to adopt parliamentary democracy. There may be some truth in this but more accurate may be that the country is just too corrupt and the West didn’t put in the effort to ensure the survival of the political system that it advocated.

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— This story was first published in issue 467 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Thousands of railway wagons stuck on Kazakhstan-China border

JAN. 6 2021 (The Bulletin) — China has tightened import criteria for goods entering from Central Asia, a move linked to the coronavirus pandemic, causing queues miles long at its border with Kazakhstan. Media reported that there are 8,400 railway wagons queuing on the border with China. Kazakhstan’s minister of trade, Bakhyt Sultanov, said that China was allowing through only a tenth of the traffic it allowed before the pandemic.

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— This story was first published in issue 467 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Power failure causes blockouts and fuel shortages in Central Asia

ALMATY/JAN. 5 2021 (The Bulletin) — A failure in the system that transmits electricity around Central Asia triggered the shut down of several power stations, causing blackouts across the region and fuel shortages in Uzbekistan (Jan. 5).

The breakdown of transmission lines also highlighted the fragility of the electricity transmission network, dubbed the United Energy System

Analysts said that a surge in power use in Uzbekistan was probably to blame for the breakdown of transmission lines. This triggered blackouts in Almaty, Bishkek and several regions in Uzbekistan because emergency systems automatically shut down several power stations.

Uzbek officials also said the blackouts caused a production drop at the Mubarek Gas Processing plant, in the south of the country. Drivers in Uzbekistan use gas to fuel their cars and restrictions were announced.

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— This story was first published in issue 467 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kazakhstan abolishes death penalty after 18-year moratorium

JAN. 2 2021 (The Bulletin) — Kazakhstan formally abolished the death penalty, 18-years after it was suspended. The last person to be sentenced to death in Kazakhstan was Ruslan Kulekbayev, who shot dead eight policemen in 2016. He has been given a life sentence in prison instead.

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— This story was first published in issue 467 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021