Astana is slashing growth expectations and cutting its budget revenue forecasts as Kazakhstan eyes its gloomiest economic outlook for years, sources in parliament report.
The government intends to cut this year’s GDP growth forecast to 1.5 percent (against its previous forecast of 4.8 percent) and reduce budget spending by a whopping $7 billion, sources in the ruling Nur Otan party told Vlast.kz following a presentation to parliament by National Economy Minister Yerbolat Dosayev on January 16.
Such growth would represent a significant slowdown on last year’s 4.3 percent, and would be Kazakhstan’s lowest since 2009, the height of the global credit crunch.
As President Nursultan Nazarbayev acknowledged last week, Kazakhstan is facing a litany of economic problems, from low prices for oil and metallurgical output to the knock-on effect of Western sanctions against Russia and pressures on the tenge as a result of the ruble’s precipitous fall.
The government is cutting the oil price on which its budget is based from $80 to $50 in its revised budget (which will have to be approved by parliament), Dosayev confirmed, after global prices dipped below $50 this month.
Shortly after an Islamic State propaganda video featuring Kazakh-speaking children called for the slaughter of infidels, a new clip has emerged in which one of those children appears to execute two “spies” with possible Kazakhstan links.
The latest video sparked a denial from Kazakhstan’s intelligence service that the two men are Kazakhstani citizens—even as reporters unearthed possible links.
The video shows the men, speaking in Russian, supposedly confessing to being spies for Russian intelligence. The video then seems to show them being shot by a young boy closely resembling a child who appeared in the previous video. One of the men claimed to hail from Kazakhstan.
There is no independent confirmation that the events took place as depicted in the video, which analysts say could be a montage designed and acted out for propaganda purposes.
It has been “authoritatively established” that two alleged spies are not Kazakhstani citizens, the National Security Committee (known as the KNB) said in a statement. The KNB did not rule out the possibility that they could have roots in the country.
One of the men in the video identifies himself as Zhanbolat Mamayev and states his place of birth as Kazakhstan’s southern Zhambyl Region, where RFE/RL tracked down two people who remembered a boy by that name studying at a school in a village called Oytal (the school’s deputy principal and a former pupil). RFE/RL also located social networking sites that could belong to the same man, linking him to Kazakhstan’s Zhambyl Region.
Four of the five Central Asian states have failed to meet basic fiscal transparency standards, according to the U.S. State Department’s latest Annual Fiscal Transparency report. The study does not appear to affect whether a country receives U.S. government funding, however.
In addition to ascertaining whether countries meet State’s minimum standards (such as publishing receipts and expenditures in publicly available national budget documentation and bidding and contract information for natural resource extraction), the study assesses progress—or lack thereof.
Published by the Office of Monetary Affairs since 2008, the report only includes “those governments it anticipated would receive bilateral allocations of assistance” in fiscal year 2014. The latest version of the report was released January 14.
This year, Kazakhstan, Tajikistan, Turkmenistan and Uzbekistan were all judged to have made “no significant progress” toward meeting minimum fiscal transparency standards, joining 35 other countries in that category. Overall, 50 fell below the minimum-standards threshold.
Kyrgyzstan, which has harnessed international assistance from USAID and other donors to improve public access to state budgets was judged to have met minimum transparency standards for the second year running.
In 2012, Tajikistan made significant progress toward the benchmark. It has slipped over the last two years, however.
Turkmenistan and Uzbekistan, which routinely rank at the bottom of Transparency International’s Corruption Perception Index, have never glittered in this report.
Tajikistan has sent an award-winning human rights lawyer to prison on charges his supporters say are meant as a warning to critics of the authoritarian regime.
A court in Dushanbe sentenced Shukhrat Kudratov to nine years in a penal colony for bribery and fraud on January 13, Asia-Plus reported.
Kudratov’s real crime, it appears, was defending opposition activist Zaid Saidov in 2013. That year, Saidov, a local businessman and former official, was swiftly arrested after starting a political party and charged with, among other things, polygamy. He received 26 years in prison. The politician’s supporters said they had received death threats.
Last year, another one of Saidov’s lawyers, Fakhriddin Zokirov, was arrested on forgery charges. He was released after eight months and promised he would no longer defend Saidov.
The cases against the lawyers are widely seen as politically motivated. Steve Swerdlow of Human Rights Watch called Kudratov's jailing "a serious setback for the freedom of expression and the independent legal profession in Tajikistan."
Tajikistan has cast doubt over its willingness to continue hosting a network of leading charter schools inspired by U.S.-based cleric Fethullah Gülen.
This week Education Minister Nuriddin Saidov suggested that the Tajik government is planning to review the schools’ licenses, which are currently held by a company called Shalola. The schools – often known as “Gülen schools” or “Turkish schools” – adhere to the educational principles of Gülen’s transnational religious movement, which has been praised for its modern interpretation of Islam but also accused of bearing resemblance to a cult.
“The activities of Turkish schools in Tajikistan should be transformed; they need to work on a charitable basis. This is my position. Now we are working on this issue,” Saidov told journalists January 5.
While the schools (numbering 10, according to one count) in Tajikistan were initially free to attend, they now cost $1,000 dollars per year, according to RFE/RL’s Tajik service.
RFE/RL says the schools’ domestic critics tend to associate them with “Pan-Turkism,” while supporters argue that they offer an education far superior to that at Tajikistan’s impoverished state schools, which are among the worst in the former Soviet Union. Instruction is in English, Russian and Turkish. Tajik social media users claim that many officials place their children in the secular Gülen schools.
It is not clear what precisely Shalola and its schools have done to offend Tajikistan’s aid-dependent and graft-prone government.
Whether or not Vladimir Putin bribed Uzbekistan, as a Bishkek newspaper claims, it is welcome news all around that Uzbek gas is once again flowing into southern Kyrgyzstan.
Kyrgyzstan is happy because 60,000 customers in a potentially restive part of the country aren’t relying on dung to heat their homes; Uzbekistan again has revenue from the cross-border gas trade; and Russia, whose energy giant Gazprom promised a constant supply of gas when it bought Kyrgyzstan’s gas distribution network last year, gets to save face.
But the sudden resumption of gas deliveries from Uzbekistan to Kyrgyzstan on December 30 begs two related questions: Why wasn’t a deal reached earlier, after Uzbekistan abruptly cut supplies last April? And what made the recalcitrant Uzbeks change their mind?
Kyrgyz newspaper Vechernii Bishkek, citing an unidentified Kyrgyz government source, claims it knows the answer to the second question.
The source told Vechernii Bishkek today that no less a figure than Russian President Vladimir Putin negotiated the gas deal during a December 10 meeting with his counterpart Islam Karimov in Tashkent. Karimov, according to this account, pushed Moscow to forgive $3 billion of Uzbek debt (oddly, that’s much more than the $890 million other media reported Uzbekistan as owing). In the end the Kremlin agreed to write off $865 million.
Five former prisoners from the notorious US-run Guantanamo prison camp who arrived in Kazakhstan at the end of last year have lodged asylum claims in the Central Asian state, the government says.
The five arrived in Kazakhstan on December 31, the Foreign Ministry said in a January 5 statement, after being freed from Guantanamo owing to “the absence of sufficient grounds to present them with charges of committing a crime.”
The ministry did not name the five, but press reports had previously provided their names and identified them as three men from Yemen and two from Tunisia. They had been in detention for over a decade, Reuters reported, but “were identified as low-risk detainees cleared long ago for transfer.”
The five have been granted the status of asylum seekers pending the hearing of their claims, the Foreign Ministry said. By law, a ruling should be made within three months.
These are the first asylum claims Kazakhstan has received from former Guantanamo prisoners, Foreign Ministry spokesman Nurzhan Aytmakhanov added in remarks quoted by Tengri News on January 5. Coming to Kazakhstan was their “personal choice,” he said.
After three years of negotiations, Kyrgyzstan has signed up to join the Moscow-led Eurasian Union, a protectionist post-Soviet economic club that some fear will allow the Kremlin to reassert political influence in its former backyard. But in what has become a tradition, Kyrgyzstan’s actual accession will be delayed yet again.
Kyrgyz President Almazbek Atambayev signed on the dotted line at a Moscow meeting of the Eurasian Economic Council December 23 along with his counterparts from Armenia, Belarus, Kazakhstan and Russia.
Atambayev was in high spirits after signing, waxing lyrical about the benefits of regional integration.
“I’d like to emphasize that today is December 23. I am a person that sometimes lends a lot of credence to things, dates, signs of destiny, lets say. Yesterday, December 22, was the shortest day and the longest night [of the year] and today, December 23 is the day when light starts to defeat night. It seems very significant. I am confident that even in these difficult times, things will be a lot easier for all of us if we are friendly with one another and help one another,” Atambayev said, to what looked, on camera, like sniggers from Russian President Vladimir Putin and Belarus’s Alexander Lukashenko.
More importantly, Atambayev confirmed that Kyrgyzstan would not be ready for full membership in the Eurasian Economic Union – which fellow aspirant Armenia will join on January 1 – until the anniversary of the Soviet Union’s 1945 victory over Germany on May 9. All year officials have said Kyrgyzstan will join on January 1, when the Customs Union becomes the Eurasian Economic Union (EEU).
President Nursultan Nazarbayev has paid a visit to Kiev to meet his Ukrainian counterpart Petro Poroshenko – Vladimir Putin’s sworn enemy – the day before heading to Moscow for an important meeting of the fledgling Eurasian Economic Union.
Poroshenko used Nazarbayev’s surprise visit to Kiev on December 22 (announced with just three days’ notice) to thank him for Kazakhstan’s “firm and consistent position of support to the independence and territorial integrity of Ukraine.” The remarks are guaranteed to arouse the ire of Putin, whose annexation of the Ukrainian territory of Crimea in March sparked international condemnation and Western sanctions against Russia.
Nazarbayev took a conciliatory line, calling on Moscow and Kiev to move from confrontation to compromise. But his very presence in Ukraine is likely to irritate Putin, coming the day before leaders of member states of the Eurasian Economic Union, a new regional integration effort to be launched on January 1, meet in Moscow.
At that meeting, Kyrgyzstan is expected to join the union – alongside Russia, Kazakhstan, Belarus, and Armenia – which Putin has sought to expand to boost the Kremlin’s regional clout in the face of Moscow’s geopolitical setbacks in Ukraine.
An exiled Tajik opposition leader who heads a group Dushanbe classifies as “extremist” has reportedly been detained in Turkey.
Umarali Quvvatov’s wife told RFE/RL’s Tajik service December 20 of a raid on the family’s Istanbul home the day before. She said his passport and computers were confiscated and a group of guests was also detained. Turkish officials have not commented.
Quvvatov is a former oil trader and business partner of Tajik President Emomali Rakhmon’s son-in-law. He now heads the anti-government and social media-savvy Gruppa 24. Though it appears to have little popular following at home in Tajikistan, the group of exiles has made authorities edgy in recent months.
This is the second time Quvvatov has been nabbed by a foreign government, likely at Dushanbe’s request. In December 2012 he was arrested in Dubai on accusations of mass fraud raised by the Rakhmon regime before being released without explanation in September 2013. Quvvatov calls the charges politically motivated.
Quvvatov has applied for asylum in Turkey. Nadejda Atayeva, France-based leader of the Association for Human Rights in Central Asia, has called on Ankara to respect the Convention Relating to the Status of Refugees (CRSR). Steve Swerdlow of Human Rights Watch told EurasiaNet.org that HRW “is closely following the situation.”