When Zeinulla Kakimzhanov took over a dilapidated vineyard in the foothills of the Tian Shan Mountains in south-eastern Kazakhstan in 2006, he had ample reason to wonder whether the property would ever be productive again.
Hard-drinking Kazakhstan is moving to curb alcohol abuse by extending a ban on late-night alcohol sales.
The new bill banning retail sales between 9 p.m. and noon was signed into law by President Nursultan Nazarbayev on June 18. The rules extend an existing late-night ban on alcohol sales (including beer) and will hit retail outlets which do a roaring trade in late-night booze sales. Restaurants, bars, and nightclubs will not be affected.
The law also bans alcohol sales altogether at filling stations as well as education and health institutions, but moves by parliamentarians to ban sales at markets and stadiums as well failed.
Kazakhstan raised the legal drinking age from 18 to 21 in 2009. The new bill doubles fines for selling liquor to under 21s to a maximum of $1,200 (with the revocation of an offender’s license to sell alcohol).
The government says the bill is aimed at curbing excessive alcohol consumption, for which Kazakhstan rates 34th worldwide, according to a World Health Organization survey of 188 countries released in May.
Each person in Kazakhstan aged over 15 imbibes on average 11.3 liters of alcohol a year, almost double the global average of 6.2 liters, the report said—although the government has questioned the WHO’s methodology.
The report found the prevalence of “heavy episodic drinking” (defined as consuming at least 60 grams or more of pure alcohol on at least one occasion in the past 30 days) to be 7.8 percent in Kazakhstan. Among drinking males the prevalence stood at 30 percent. Some 8.9 percent of males and 1.9 percent of females have drinking disorders in Kazakhstan, according to the report.
The WHO singles out Kazakhstan as one of 11 countries with the “most risky patterns” of drinking.
South Korean President Park Geun-hye kicked off a six-day tour of Central Asia on June 16 in Uzbekistan.
Park was reportedly pushing for new joint gas-sector projects in Uzbekistan, and offering investment in a $300-million solar energy plant that is to be built in Samarkand as part of Uzbekistan’s fledgling renewable energy industry.
Two deals worth $350 million were signed on June 17, Uzbek media reported. Under the first, the Korea International Cooperation Agency will provide $250 million for investment in unspecified projects; the second involves a $100 loan agreement between the National Bank of Uzbekistan and South Korea’s Exim Bank to invest in joint projects.
Park and her Uzbek host, President Islam Karimov, issued a joint statement vowing to boost trade and investment, especially in the IT sphere, as well as road and rail construction, South Korea’s Yonhap news agency reported.
South Korea’s INHA University is to open a university in Tashkent specializing in IT courses in the coming academic year, it was reported in March.
With an estimated $8 billion worth of joint projects, South Korea is now one of Uzbekistan’s largest investors, along with Russia, China, and Kazakhstan. One of South Korea’s top investment spheres is energy; South Korean companies are building a gas processing plant at the Kandym gas field and a gas and chemical plant at the Surgil field. Textiles have also attracted South Korean interest, with three factories owned by Daewoo International corporation operating in Uzbekistan.
Isabel Santos, chair of the OSCE Parliamentary Assembly's Committee on Democracy, Human Rights and Humanitarian Questions, wrapped up a short visit to Kazakhstan on June 11. In talks with officials, Santos raised concerns about Astana’s track record on democracy and civil society.
The Canadian company operating Kyrgyzstan’s troubled Kumtor gold mine has announced that a shutdown will not happen. A last-minute agreement appears to end a period of brinksmanship between Kyrgyz officials and company representatives that could have pushed the country’s shaky economy over the edge.
Toronto-listed Centerra Gold threatened on June 2 to start implementing a shutdown plan at close of business on June 13, if it did not receive government approval for its annual work plan. Centerra executives said they had been seeking approval since late last year.
The company – Kyrgyzstan’s largest investor – said that “despite repeated submissions and discussions with senior officials,” the company remained in limbo, unable to receive the necessary permits to operate until Bishkek signed off on the work plan.
Environmental concerns were one reason for the hold-up: the State Agency for Environmental Protection had voiced misgivings that the company’s plans could damage the Davydov Glacier high up in the Tian Shan Mountains, where the mine is located.
Centerra Gold warned that “an extended shutdown […] would likely have a material adverse impact on the Kumtor mine and the Company’s operations, future cash flows, earnings, results of operations and financial condition.”
Astana is abolishing visa requirements for citizens of 10 countries with a strong track record of investing in Kazakhstan, President Nursultan Nazarbayev has announced.
The visa-free countries are France, Germany, Italy, Japan, Malaysia, the Netherlands, South Korea, the United Arab Emirates, the United Kingdom, and the United States, Nazarbayev told a June 12 gathering of the Foreign Investors Council at the lake resort of Burabay, to the north of Astana.
The visa-free system is expected to go into effect on July 15 and initially be in force for a pilot period of one year, Rapil Zhoshibayev, the deputy foreign minister, later explained. Citizens of 10 designated countries can stay in Kazakhstan without visas for 15 days; anyone needing to stay longer would be required to apply for business or investor visas.
Astana is also mulling simplifying the visa process with the introduction of online applications for tourists from China, India and Middle Eastern states, Aset Ishekeshev, the minister of industry and new technologies, announced on June 16.
The visa-free regime is part of a package of investment perks that Nazarbayev signed into law on June 12, which also includes tax breaks.
The perks are part of a push by Astana to attract investment, especially outside the extractive sectors. They are part of the government’s strategy to diversify the economy away from oil and gas, upon which it is heavily reliant at present.
Four months after the precipitous downfall of Gulnara Karimova, the eldest daughter of Uzbekistan’s strongman leader Islam Karimov, the most visible arms of her former business empire still stand shuttered in Tashkent – although some enterprises are slowly coming back to life under different management.
Karimova has reportedly been under house arrest in Tashkent since February, after coming off worst in a power struggle with the influential head of Uzbekistan’s domestic intelligence service, Rustam Inoyatov, and her own mother Tatyana Karimova and younger sister Lola Karimova-Tillyaeva.
Nothing has been heard from the once powerful president’s daughter for three months, when she apparently smuggled a letter out to media complaining of ill treatment at the hands of her captors.
When the authorities isolated Karimova in February, businesses associated with her in Tashkent, where she had fingers in many pies (from telecoms to retail and entertainment), were abruptly shuttered.
Karimova’s face still stares down from the window of one outlet on Sadyk Azimov Street in downtown Tashkent, a once bustling DVD, CD, and computer game store that was part of a chain called Nirvana. The poster advertising the president’s daughter in her pop diva persona, Googoosha, remains, although the store stands closed and Googoosha’s songs have disappeared from the airwaves.
This poster is one of the few public signs left of the business empire presided over by Karimova, who once had such an appetite for swallowing up rivals’ interests that American diplomats dubbed her a “robber baron.”
Rakhat Aliyev, the former son-in-law of President Nursultan Nazarbayev, has been arrested in Vienna seven years after fleeing Kazakhstan following a spectacular fall-out with his father-in-law.
The arrest of Aliyev, who has been convictedin absentia in Kazakhstan on charges ranging from kidnapping and embezzlement to plotting a coup d’etat against Nazarbayev, was reported by Austria’s APA news agency on June 6.
The report did not specify on what charges Aliyev – the former husband of Nazarbayev’s eldest daughter, Dariga Nazarbayeva – had been detained, but noted that Austria opened a murder investigation against him in July 2011.
That came a month after Kazakhstan announced that Aliyev was facing a murder rap in absentia after evidence emerged “irrefutably proving” he had killed two bankers who disappeared in 2007.
Prosecutors said after finding the bodies of Zholdas Timraliyev and Aybar Khasenov four years after their disappearance that the men had been tortured, suffocated, put in barrels and hidden in a gorge outside Almaty, Kazakhstan’s commercial capital.
Aliyev – who held a string of high-powered posts in Nazarbayev’s administration and controlled a vast business empire – was serving as ambassador to Austria when the scandal over the bankers’ disappearance broke. He never returned to Kazakhstan.
He was later convicted in absentia of kidnapping the bankers, among other charges, and sentenced to 40 years in jail.
The leaders of Russia, Kazakhstan, and Belarus signed a potentially game-changing treaty in Astana on May 29, establishing a Eurasian Economic Union (EEU). If the union develops as envisioned, it could transform the geopolitical architecture of the post-Soviet region. But lots of hurdles still need to be cleared for that to happen.