The Russia-led Customs Union has never hid its protectionist mandate. It’s been called Vladimir Putin’s Soviet Union-lite for a reason: Formerly Soviet states that don’t sign up will be isolated or pushed around until they do. Just look at Ukraine.
Now, new regulations on car imports that came into effect last month will protect the car manufacturing industries in all three members – Belarus, Kazakhstan and Russia. But they will specifically hurt one of Uzbekistan’s few successful joint ventures, a GM plant in the Fergana Valley that has thrived off exports to Russia and Kazakhstan.
Uzbekistan has previously expressed only the most tepid interest in the Customs Union. For Tashkent, the new rules show that staying out can hurt.
Kazakhstan's Kolesa.kz online car-sales platform reported on February 20 that Customs Union technical regulations have banned imports of some of the bestselling cars in Kazakhstan, including the Uzbek-made Chevrolet Nexia and Matiz.
The regulations, which came into force on January 5, require imported cars to have at least one air bag, an anti-lock braking system, specific attachment points for child-safety seats, and daytime headlights, among other things. GM Uzbekistan’s Nexia and Matiz have none of these features, Kolesa.kz said.
Cars produced by Customs Union members are exempt from the regulations until 2015.
"We are now selling leftovers in warehouses,” Kolesa.kz quoted an unnamed Kazakh dealer of Uzbek cars as saying. “The [Uzbek] plant will hardly be able to reequip these models [to meet] these technical requirements."
Amid the cut and thrust of the sporting competition in Sochi, Kazakhstan's Olympic officials have been busy schmoozing to build support for Almaty’s bid to host the 2022 Winter Olympic Games.
The Kazakh Olympic Committee has opened a hospitality center in the heart of Sochi’s Olympic Park, offering visitors the chance to try delicacies such as kazy (dried horsemeat sausage), karta (made from the animal’s large intestine) and kurt (a dried curd snack), and watch some video presentations detailing Almaty's bid.
One notable visitor was Thomas Bach, president of the International Olympic Committee, who told Kazinform he is confident Almaty is a strong contender and praised Kazakhstan's athletes—although they have not performed as well as some expected, with figure skater Denis Ten's bronze thus far Kazakhstan's only medal.
Kazakhs officials played down fears of excessive costs after spending on Sochi 2014 broke record after record. “It will not be a big budget,” Andrey Kryukov, an executive board member of the Kazakh Olympic Committee told reporters in Sochi on February 20, eager to demonstrate Kazakhstan’s frugality, which Sochi has made fashionable.
Early estimates from Kazakhstan's Olympic Committee put the costs of hosting the 2022 Games at around $5 billion, a modest sum compared with Sochi 2014, which President Vladimir Putin pitched at $12 billion but ended up costing an embarrassing $51 billion—the most expensive Olympics in history and more expensive than all previous Winter Games combined.
Carlo Catani, an activist with the Slow Food movement, was at a wine show in Italy two years ago tasting some bottles from Georgia when an idea struck him: what if he were able to convince Italian winemakers to make wine using the traditional Georgian method of fermenting it in large clay vessels known as kvevri?
The initial idea was something of a joke, says Catani, who works on promoting wine culture in his native region of Romagna. But the more he thought about it, the more intrigued he was about the idea. “We talked to some producers in our region, and 15 of them agreed to try doing it. Our goal was to help spread Georgian wine culture, but another goal was to get the producers to collaborate among themselves, which was something they usually didn’t do. This was the only way they could make this kind of wine in a good way,” Catani says.
And so was born what is still an ongoing experiment – to make Italian wine with a Georgian accent (or is it Georgian wine with an Italian accent)?
The experiment is not so far fetched, Catani says. Turns out making wine in clay vessels was once done in Italy – in Roman times, that is. “The Romans stopped using this method more or less after the Barbarian invasion. After that they started using wooden barrels,” he explains. “So we more or less have some 1,500 years of a gap in using kvevris. The Georgians have been using kvevris from the beginning, from when wine grapes were domesticated until now. So they have good knowledge in how to use this.”
Back in 2011, during the height of what was then still optimistically being called the "Arab Spring," the Turkish press was in the habit of crowing that Prime Minister Recep Tayyip Erdogan was "one of the five" world leaders American President Barack Obama spoke to the most. Certainly, with Turkey's foreign policy at the time still showing promise and Ankara positioning itself to become a key and constructive regional powerbroker, speaking frequently with Erdogan made a lot of sense.
Things have changed a bit since that time, perhaps best reflected by the fact that Obama and Erdogan have not spoken on the phone since August of last year, following a turbulent summer that saw the Turkish government crack down hard on the large protests that rocked Istanbul and other cities for several weeks. But, after a long lull, the two leaders did reconnect, speaking on the phone yesterday about, as a White House readout put it, "a range of bilateral and regional issues."
The Kremlin wheeled out its soft power machine this week to make the pitch for Kyrgyzstan to join its Customs Union trade bloc. But if a recent talk by Kremlin evangelists at the American University of Central Asia in Bishkek was anything to go by, the machine could use some grease.
The main speaker at the February 19 event was Semyon Uralov, editor of a website close to United Russia, Vladimir Putin’s political party. While Putin has tried to assure potential members that the Customs Union – Belarus, Kazakhstan and Russia – is not a Soviet Union redux, Uralov seemed to do the opposite. Quoting Engels, Marx and Lenin during a forthright speech in which he extolled the virtues of state-sponsored industry, Uralov responded to a complaint about his tone: “I don’t hide it. I am an imperialist.”
And like Customs Union officials, he did little to address economic questions.
Moral and social degradation was a key theme in Uralov’s presentation. He described seeing people bribe a customs official at Bishkek’s airport for the privilege of flouting the building’s non-smoking policy. “Now tell me,” Uralov asked, “would it be possible to reach that kind of an agreement with a Belarusian customs official? A Russian customs official?” The assembled students murmured that it probably would be. “Well, clearly not for 20-30 soms [40 to 60 cents],” Uralov retorted. (Curiously, Belarus, with its highly inefficient command economy centered on manufacturing stood as something of a role model for the Russia-born, Ukraine-educated Uralov. In Transparency International’s latest Corruption Perceptions Index, Belarus ranks 123th, Russia 127th and Kyrgyzstan 150th out of 177 countries.)
EurasiaNet.org spoke with Zeynallov in the Azerbaijani capital, Baku, where he is now living.
What stands behind your deportation? Is it the next step by [Turkish Prime Minister Recep Tayyip] Erdoğan’s government to silence the media?
This is the first time in Turkish history since World War II that an elected government has that much influence on the Turkish media and putting [a] tremendous amount of pressure on media bosses to fire critical journalists while co-opting others. My deportation is part of this troubling trend, no doubt about that. It has resonated around the world because the deportation came over a pair of tweets, which the government of Erdoğan claimed to be portraying his administration as . . .one protecting al-Qaeda. My English account is followed by foreign journalists, activists, academics, politicians and other public figures. Erdoğan was disturbed to see I was spreading a news report that he didn't want to be displayed.
A global survey of 223 cities ranks some of the capitals in Central Asia and the South Caucasus the world’s worst places for foreigners to live. Tajikistan’s capital, Dushanbe, for example – where officials build themselves multi-million-dollar palaces and ignore basic property rights, education, and a failing healthcare system – now ranks the worst city in Asia for expatriates to make a home.
The annual ranking, released February 19 by Mercer, a New York-based human resources consultancy, measures cities based on quality of living for foreigners, not locals. The company takes into consideration 39 factors including political stability, the effectiveness of law enforcement, censorship, pollution and healthcare, electricity supplies, the quality of schools and public services, availability of consumer goods and climate. The scores are “weighted to reflect their importance to expatriates.” The ranking has been published since 1994.
A decade ago, Asia would probably have offered more competition at the lower end of the rankings. But with stunning economic growth across much of the continent, today it is post-Soviet Central Asia that sweeps the bottom of the table. Dushanbe (ranked 209 globally) was one-upped in Asia by the capital of Bangladesh, Dhaka (208), and fell two places in two years. Ashgabat came third from the bottom in Asia at 206, falling seven places since 2012. Fourth- and fifth-worst, respectively, Bishkek ranked 204 and Tashkent 202. (Almaty ranked 169 in 2012; Astana wasn’t surveyed. If you want to know where they rank this year, you’ll have to shell out $499 for the report.)
Ukraine's defense minister on Wednesday said that he had transferred a unit of paratroopers to Kiev, a day after the situation there dramatically deteriorated and more than two dozen were killed. Meanwhile, the Ministry of Defense announced late Wednesday that the military has the right to detain people as part of an "anti-terror" operation underway.
Thus far, the military has stayed out of the protests. The government instead has relied on its special police units, the now-notorious Berkut, to fight the protests. But with violence escalating and spreading the government may deem it necessary to send in reinforcements.
Defense Minister Pavel Lebedev said that he had ordered the deployment of the 25th Paratrooper Brigade to Kiev from its base in Dnepropetrovsk in order to protect military arsenals in the capital. Asked if the units could be used against protesters, Lebedev answered: "Read the Constitution and laws of Ukraine." Later, the Defense Ministry clarified: "The information on troops being sent to disperse the Maidan is untrue."
Kyrgyzstan’s government has suspended work at a brand new Chinese-built oil refinery, the prime minister has announced, after local protestors demanded the polluting plant clean up its act. A lack of coordination with the community, and suspicion about Chinese intentions, are likely to turn the dispute into another cautionary tale about doing business in the protest-prone Central Asian country.
Residents in the northern town of Kara-Balta have rallied several times in the past month, complaining of fetid smoke from the $300 million Junda facility, which opened on January 17. Initial work stopped on January 27 after a trial run, the company says, promising that future activity at the refinery will be cleaner.
The Junda refinery (sometimes written Zhongda) is designed to process crude oil imported by rail from nearby Kazakhstan. Bishkek has eagerly embraced the project, set to employ over 2,000 locals, making it one of impoverished Kyrgyzstan’s largest employers. No less significantly, it would help Kyrgyzstan break Russia’s fuel-supply monopoly by producing an estimated 600,000 tons of fuel annually, about half domestic need, thus lowering petrol prices at the pump.
But what’s happening in the once-industrial town two hours west of Bishkek seems to be following a familiar pattern.
Kazakhstan’s central bank is appealing for calm as rumors that some financial institutions are in trouble following last week’s currency devaluation have provoked a run on three banks.
On February 19 the National Bank sent text messages to the public urging people to disregard the “false information” and not succumb to panic.
“All Kazakhstani banks have sufficient funds in national and foreign currency,” the messages read; people should not submit to “provocations” and “keep calm.”
Large queues formed at some banks in the financial capital, Almaty, for a second day on February 19 as customers rush to withdraw funds, fearing a bank collapse.
A EurasiaNet.org correspondent witnessed a line spilling out onto the street at a downtown branch of Kaspi Bank, where around 30 people were waiting to enter and more were lining up inside – underlining that, as rumors circulate fast on social networks, they risk becoming self-fulfilling.
Kaspi Bank – which has offered a 100 million tenge ($540,000) reward for information on the origin of the rumors – issued a statement around lunchtime on February 19 saying that sums five times greater than usual had been withdrawn in cash on that day alone, but that the bank was meeting all its obligations.