Update, July 18: A trusty source close to Washington tells EurasiaNet.org that Economics Minister Temir Sariev's allegations are "way off" and characterized him as a "populist" with an unclear agenda. But someone is going to be very unpopular when that money doesn't come home. Stay tuned.
The son of Kyrgyzstan’s deposed dictator might be living a cushy life in the United Kingdom, but money he stashed in the United States is reportedly now sitting behind bars.
Russia’s Kommersant daily, citing Kyrgyzstan’s Economics Minister, reported on July 17 that Washington has frozen three of Maxim Bakiyev’s American bank accounts, which held $74.4 million.
Bakiyev is the son of former President Kurmanbek Bakiyev, who was ousted amid street violence in April 2010. The younger Bakiyev, who fled to the UK, was known in Kyrgyzstan as the “prince” for parlaying his father’s influence into lucrative and opaque business deals. To this day, in Kyrgyzstan he might be more reviled than his father. In March, a Bishkek court found the younger Bakiyev guilty in absentia of embezzling over $100 million in state funds. He received a 25-year prison sentence.
Late last year, the Department of Justice tried to extradite the younger Bakiyev from London to the United States to face charges of conspiracy to commit securities fraud and obstruction of justice. An affidavit, filed last April in the US District Court for the Eastern District of New York, appeared to finger Maxim as “co-conspirator #1” in an insider trading case involving US securities. (The affidavit did not name Maxim Bakiyev.)
The United Nation’s Office on Drugs and Crime (UNODC) released its annual World Drug Report today. There are not a lot of surprises for Central Asia watchers, but the study is a good reminder of just how entrenched Afghan narcotics are in the region.
Afghanistan remains the world’s largest producer of illicit opiates, accounting for 74 percent of global production in 2012. Those narcotics continue to pass relatively unhindered from Afghanistan through Central Asia for markets in Russia and Eastern Europe. On the way, they wreck havoc, as increasing numbers of Central Asians succumb to heroin addiction and HIV.
What’s being done? The striking chart to the right shows how, over the past ten years, interdiction in the region has actually fallen, especially in Tajikistan (shown in pink).
Over the same period, Afghan drug production generally increased (with the exception of 2012, when, due to adverse weather and disease, production fell by 36 percent). “A preliminary assessment of opium poppy cultivation trends in Afghanistan in 2013 revealed that such cultivation is likely to increase in the main opium growing regions, which would be the third consecutive increase since 2010,” the report says.
Why, then, the dramatic decline in seizures in Central Asia? The UNODC sort of sidesteps issue:
Five shepherds and at least a thousand head of sheep seem to have become the latest victims in the ongoing border dispute between Tajikistan and Uzbekistan.
Uzbek border guards seized the wandering ruminants earlier this month, Fergananews reported on June 24, citing the Tajik service of Radio Liberty, which in turn cited Tajik border guards in the northern province of Sughd. A father of one of the disappeared shepherds said the number of abducted animals was 2,200 sheep plus 41 cows.
No comment was immediately available from the Uzbek side, which has reportedly not responded to Tajik requests for negotiations.
The two countries have long been at odds over their 1,200-kilometer border, much of which remains undefined.
The troublesome boundary is not the main source of friction, however. Dushanbe and Tashkent barely speak with one another. The Uzbeks are furious over Tajik plans to build the world’s tallest hydropower dam, Rogun, upstream, claiming it will give Tajikistan unfair control over regional water resources and could harm the environment. Tajikistan, for its part, cites Uzbekistan’s constant gas cuts as a reason it needs the giant project. The antagonism is often described as deeply personal between the two countries’ autocratic rulers.
Uzbekistan has mined much of the border since it became an international frontier in 1991 at the collapse of the Soviet Union, splitting families who once lived in the same country. Shootings are common, often of stray shepherds chasing their livestock and of smugglers who have failed to pay off the right border guards at night.
Never known for compassion, the strongman president of Uzbekistan, Islam Karimov, has lashed out at Uzbek migrant workers in Russia, calling them “lazy people” who “disgrace all of us” by looking for work abroad.
"I call lazy people those who go to Moscow and sweep its streets and squares. One feels disgusted with the fact that Uzbeks have to travel there for a piece of bread. Nobody is starving to death in Uzbekistan,” state-run television quoted Karimov as saying on June 20.
“The Uzbek nation's honor makes us different from others. Is not it better to die [than scrounge]? Therefore, I call lazy those people who disgrace all of us by wanting to make a lot of money faster there,” Karimov added (transcript from BBC Monitoring).
Easy for him to say. In Karimov’s breathtakingly corrupt dictatorship, major industries are allegedly controlled by a coterie of senior government officials and their families. Unemployment and underemployment are rife and Karimov has done little to foster a more transparent system that might attract investors and create jobs.
A Bishkek court has acquitted and released three opposition leaders previously convicted for attempting to seize power violently. In March, Kamchybek Tashiev and two other lawmakers from the nationalist Ata-Jurt party received sentences of between six months and one year for leading unrest outside parliament last autumn.
But the end to this saga did not come without more violence. Tashiev, Sadyr Japarov and Talant Mamytov were released on June 17 after their supporters threw shoes and bottles at the judge and a prosecutor who was demanding an even longer sentence, AKIpress reports.
The Prosecutor General’s office told 24.kg that the court caved to public pressure and said it intends to pursue charges at the Supreme Court.
The case of Tashiev et al. is linked to regular protests over the fate of the lucrative Kumtor gold mine in Issyk-Kul Province. At the October rally, where Tashiev led protestors over the fence surrounding parliament and vowed to “replace this government,” the three Ata-Jurt deputies demanded the nationalization of Kumtor, the largest foreign-run gold mine in Central Asia, which accounts for over 50 percent of Kyrgyzstan’s exports.
Almost 24 hours after the vote, and after a widespread public outcry in Bishkek, parliament has published the text of the controversial resolution it passed last night. It turns out, though MP Irgal Kadyralieva is still insisting to the press that she wishes to protect the Kyrgyz "gene pool,” the final resolution does not limit travel for women based on their age.
In the confusion -- fueled by multiple press appearances where Kadyralieva insisted women under age 22 or 23 must be forbidden from traveling abroad without a parent's consent -- early on June 13 activists in Bishkek lashed out at the resolution.
“This legal act is absurd,” Vechernii Bishkek quoted Aikanysh Jeenbaeva, co-founder of the Bishkek Feminist Collective SQ as saying. “It's not going to protect anyone. It will only increase corruption. Now girls will have to pay bribes at the border.”
“Deputies acted ignorantly by passing the resolution,” human rights Ombudsman Tursunbek Akun was quoted as saying. “Don't they know that they're violating the Constitution, civil rights, and freedom of movement?”
Glance at the parking lot outside parliament, at the fleet of Lexus SUVs kitted out with chrome, and you might think Bishkek is the capital of a wealthy country. A block down Chui Avenue, a shiny new Range Rover is parked on the sidewalk. Police drive their own BMWs.
Look a little closer, though, and the real Kyrgyzstan comes into focus.
A small, Kyrgyzstan-based airline is helping Tehran “move suspected illicit cargo” to support Bashar al-Assad’s bloody crackdown in Syria, the US Treasury Department says.
Treasury has sanctioned Kyrgyz Trans Avia (KTA) for leasing and selling aircraft to Iran’s Mahan Air. Washington blacklisted Mahan Air in October 2011 “for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and has transported personnel, weapons and goods on behalf of Lebanese Hizballah,” a May 31 Treasury statement says.
KTA was designated pursuant to E.O. 13224 for providing financial, material, or technological support for, or financial or other services to Mahan Air, by leasing aircraft to Mahan Air. KTA has been publicly identified as an umbrella company purposely established for importing aircraft to Iran. In this regard, between 2009 and 2010, KTA acted as an intermediary for Mahan Air's acquisition of eight aircraft, all of which are now identified by Treasury as blocked property operated by Mahan Air. Some of the aircraft supplied by KTA to Mahan Air are used, interchangeably, to move suspected illicit cargo to the Syrian regime and provide civilian passenger flights to Europe and Asia.
The designation prohibits US citizens, permanent residents, and American companies from dealing with KTA or its director, 58-year-old Lidia Kim, who Treasury designated “for acting for or on behalf of KTA by serving as the director of the company. Kim has received funds from a Mahan Air front company for equipment provided to the airline.” KTC is listed as headquartered at Erkindik 35 in Bishkek.
In the same announcement, Treasury sanctioned Ukraine’s Ukrainian-Mediterranean Airlines (Um Air) for similar activity.
Protests outside the Kumtor gold mine in northern Kyrgyzstan have ended and the mine has resumed operations. But related unrest shifted south over the weekend.
Outside Jalal-Abad, Kyrgyzstan’s third-largest city, demonstrators are blocking the country’s only north-south highway, creating a traffic jam several kilometers long, local media report. Since Friday, protestors also have occupied parts of the main government building in the city.
They are demanding the release of three nationalist lawmakers serving short jail terms for stoking unrest last October amid calls to nationalize the profitable mine, which, in a good year, produces 12 percent of Kyrgyzstan’s GDP.
Jalal-Abad is the stronghold of Kamchybek Tashiev. In that October incident, he led supporters over the fence surrounding parliament, vowing to “replace this government.” A Bishkek court this March found Tashiev, Sadyr Japarov and Talant Mamytov – all lawmakers with the Ata-Jurt party, which draws its support largely from the south – guilty of trying to overthrow the government. The sentences were seen as light, but deprived the three of their parliamentary seats. Tashiev, who announced a hunger strike today, is due to be released this autumn.
Authorities in Kyrgyzstan have declared a state of emergency and curfew after police clashed with protestors who have forced the country’s largest enterprise, the Kumtor gold mine, to shut down.
Since Tuesday, hundreds of protestors have blocked the road to the high-altitude mine (or thousands, depending on the source). They are demanding Kumtor pay for new schools, hospitals and roads in the region, and calling on the government to tear up the existing operating agreement. On May 30, protestors seized an electrical substation and cut power to the mine.
Officials said 92 people had been arrested and 55 wounded, including security forces, in the May 31 clashes around Barskoon on the southern shore of Lake Issyk-Kul. Police used stun grenades and rubber bullets, according to Kloop.kg. Some local news sites reported that protestors took the head of the district hostage, later exchanging him for detained protestors.
In an open letter to the prime minister, Kumtor outlined how it has fulfilled many of the protestors’ demands through the tens of millions of dollars it pays into a development fund for Issyk-Kul province and other contributions.