Carnelutti Russia

Newsletter Central Asia and the Caucasus July 2022

Cryptomining firm ECOS has launched a new crypto mine data center at a power plant in Armenia. The company said a 60MW mining center had been launched at the Hrazdan Power Plant across a 22,000 sqm (236,800 sq ft) site. According to ECOS’ website, the mining facility consists of 12 containers alongside the main ECOS building.
Turkey is looking to transit Turkmen gas via Azerbaijan. The announcement by Turkey appears to be a response to increased interest from Europe in non-Russian sources of energy. TANAP pipeline is the sole pipeline carrying Azerbaijani gas through Turkey to Greece. It connects to the TAP pipeline carrying gas to Albania, Bulgaria, Italy, and central European markets. The TANAP pipeline has nearly 15 billion cubic meters a year of spare capacity, while the TAP pipeline has around 10 billion cubic meters yearly. Brussels would like to see that capacity used to transit more gas to Europe.
Companies registered in Georgia are enabled to participate in European tenders. Any business registered in Georgia will now be able to participate in tenders announced by central authorities of the 27 member states of the European Union for the purchase of goods, the State Procurement Agency of Georgia announced on Monday. The Agency said that every year, about 250,000 purchasing organizations in Europe buy goods and services for a total amount of about €2 trillion.
Kazakhstan has another go at KazMunaiGaz float. Officials want as many people as possible to get involved in buying shares. A state-run holding in Kazakhstan is poised to make a fresh attempt at floating shares in the national oil and gas company later this year as part of the revived so-called People’s IPO.

Kazakhstan extends wheat and flour export restrictions. Wheat and wheat flour export restrictions have been extended until Sept. 30 by the government of Kazakhstan, which also added to the available export quota under the decree, according to a June 22 Global Agricultural Information Network report from the Foreign Agricultural Service of the US Department of Agriculture (USDA).
Kyrgyzstan owes over $1,794 billion to Eximbank of China. The State external debt of Kyrgyzstan to the Export-Import Bank of China is $1,794.12 billion. The Ministry of Finance reported. According to the forecast, an increase in servicing the external state debt to Eximbank will begin in 2025 and reach its peak in 2027, followed by a decrease.

Uzbekistan and Kyrgyzstan have decided on the place for a new automobile plant, which will produce Uzbek cars. The media of the Republic of Uzbekistan report, citing the Minister of Economy and Commerce of the Kyrgyz Republic Daniyar Amangeldiev. According to the official, the enterprise will be located in the Sokuluk district of the Chui region.

Tajikistan banks on GBAO construction boom to soothe tempers. Projects include a new tunnel, stadiums, parks, and a university building. As Tajikistan's government consolidates its control over the restive Gorno-Badakhshan Autonomous Region following the forceful suppression of recent unrest, it is now seeking to soothe anger with investments into large infrastructure projects that it says will generate jobs and prosperity.

EU plans investment in the world's tallest dam to dent Russia's energy clout. The European Investment Bank (EIB) will become 'the largest investor' in Tajikistan's giant hydropower Rogun plant. Rogun is expected to cost around $8 billion, of which $3 billion have already been spent, Tajik Energy Minister Dalyor Juma told Reuters in June. The bank has invested in Central Asia about 182 million euros ($186.8 million) between 2014 and 2020, a fraction of its multibillion-euro investments outside the EU's 27-nation bloc.

The visit of President Serdar Berdimuhamedov is the continuation of the course toward the development of a strategic partnership between Uzbekistan and Turkmenistan. The contractual and legal base, which consisted of 270 documents, during the current visit increased by another 19, including agreements on the development of transport and transit cooperation; on cooperation in the field of tourism; on the management, protection, and rational use of the water resources of the Amudarya River; Program of trade and economic cooperation and development of industrial cooperation for 2022-2025; Program of cooperation between the Ministries of Foreign Affairs for 2023-2024.

Uzbekistan: sanctions against Russia scotch bank buyout. It is yet another blow to the Uzbek government as it tries to slash its presence in the banking sector. Sanctions against the Russian financial industry have foiled a multimillion-dollar agreement on purchasing an Uzbek bank. This blows Tashkent’s bid to reduce the state’s massive footprint in Uzbekistan’s banking sector as part of a privatization drive under which many flagship companies are up for sale. Russia’s Sovkombank is no longer in a position to buy UzAgroExportBank because of Western sanctions against the Russian financial sector as retribution for the country’s invasion of Ukraine.

Uzbekistan is creating a gas processing industry to feed soaring domestic demand. Rather than exporting natural gas as raw material, Uzbekistan invests in the deep processing capacity to enable domestic production of fuels, plastics, and other products. The first synthetic diesel was produced at the newly built Uzbekistan GTL (UzGTL) gas-to-liquids (GTL) plant in July, an essential step in Uzbekistan’s quest to move away from natural gas exports to the production of higher-value products domestically.