Tag Archives: Uzbekistan

Swedish court upholds acquittal of former TeliaSonera execs for corruption

FEB. 4 2021 (The Bulletin) — A court in Stockholm upheld the acquittal of three former executives of telecoms company TeliaSonera, now called Telia, who had been charged with paying bribes to Gulnara Karimova, the daughter of former Uzbek leader Islam Karimov. The three men, including former TeliaSonera CEO Lars Nyberg, went on trial in 2018 and were acquitted in 2019 because it could not be proved that Ms Karimova held any official position in the Uzbek telecoms sector.  Ms Karimova has been under house arrest or in prison in Tashkent since 2014. In 2017, Telia paid more than $1b in fines for the bribes, the largest ever corporate corruption fine.

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbekistan is making progress on eradicating forced labour, says ILO

FEB. 2 2021 (The Bulletin) — The International Labour Organisation (ILO), part of the UN, said that Uzbekistan was continuing to make good progress in eradicating forced labour in its cotton sector. The statement is important for Uzbekistan as its government has tried to persuade Western companies to lift a ban on products made using Uzbek cotton, a key export. The ban was imposed during Islam Karimov’s time as president. He died in 2016.

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— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

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

Coronavirus pandemic supresses inflation in Uzbekistan

JAN. 21 2021 (The Bulletin) — The annual rate of inflation in Uzbekistan slowed to 11.1% in 2020 from 15.2% in 2019 because of a drop in demand linked to the coronavirus pandemic, Uzbekistan’s Central Bank said in a statement explaining why it kept interest rates steady at 14%. The exception to this drop in inflation was food prices which continued to rise. The Central Bank said, for example, that eggs rose in price by 42%. 

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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

Uzbek refinery workers protest over job threat

JAN. 19 2021 (The Bulletin) — Workers at the Altyaryk oil refining plant in Uzbekistan’s Ferghana Valley have been striking and staging sit-ins since Jan. 10 because of what they say are planned job cuts, media reported. The refinery management has said that it is modernising the plant to upgrade it to Euro-5 standard fuel production and that jobs will be preserved. Workers, though, told the Eurasianet website that there hasn’t been any fuel production since July and that 2,000 jobs will be lost.

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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

Uzbekistan says wants to reform power sector; three workers killed

TASHKENT/JAN. 18 2021 (The Bulletin) — Uzbekistan’s government announced a raft of reforms to its under-pressure power production sector that it hopes will fix outages that have caused shortages and disrupted supplies this winter.

But, a couple of days after publishing its plans to build nine new power plants and to tear down a government monopoly that has run the power generation system in Uzbekistan since it was set up in the Soviet Union, news filtered through that a blast at a thermal power plant had killed three workers.

Media reports said that the three workers were part of a team that were renovating and upgrading the Angren thermal power plant, renovated in 2016 by a Chinese company, near the Uzbek capital.

The blast was triggered by a mixture of coal and dust and air, the Uzbek emergencies ministry said, and immediately highlighted what campaigners have said is the cavalier attitude of Uzbek officials to health and safety issues.

Demand for power in Uzbekistan has soared this year, driven up by rising living standards and also an exceptionally cold winter. The shortages have triggered protest across the country and blackouts that have hit industry and dented confidence in the government which has resorted to buying extra supplies from neighbouring countries. 

As well as commissioning nine new thermal power stations across the country, the most populous in Central Asia, the Uzbek government also said that it would issue permits to private companies to import electricity and to set up an internal market system. 

Analysts said that this was an important step towards the market reform needed to strip away a central Soviet system. They have said that the centralised system is cumbersome and not nimble enough to respond to large increases in demand, both seasonal and systemic.

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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

Fiji beats Uzbekistan to UN human rights chair

JAN. 15 2021 (The Bulletin) — Uzbekistan was beaten to the chair of the UN’s Human Rights Council by Fiji, the favoured candidate of Western nations. It was the turn of the Asia-Pacific region to head the council but regional members couldn’t agree on which country to put forward, triggering a vote between Uzbekistan, Fiji and Bahrain. Analysts said that the Uzbek and Bahrain candidates had been encouraged by Russia and China. 

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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

Hackers attack Uzbek regional websites

JAN. 6 2021 (The Bulletin) — Hackers attacked the websites of regional government agencies in Uzbekistan’s Surkandarya region. The attacks highlighted lax cyber security in Uzbekistan. Media said that the attacks may also be retaliation against the regional head of the southern Surkandarya region who allegedly mistreated IT staff. Surkandarya regional government has not commented.

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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

Tashkent-Dushanbe flight starts up again

JAN. 5 2021 (The Bulletin) — Uzbekistan Airways flew the first charter flight between Tashkent and Dushanbe since March when flights were suspended because of the intensifying coronavirus pandemic. The return of the Tashkent – Dushanbe route is an important signifier that internal routes in Central Asia are beginning to return to normal.

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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