Carnelutti Russia

Newsletter Central Asia and the Caucasus March 2023

Armenia reports a 1 Bln Usd turnover in High-Tech Industry for the first time. In 2022, a turnover of more than 1 BLN Usd was recorded in the high-tech industry field, Deputy Speaker of Parliament Hakob Arshakyan said at the Investor's Day for the IT Sector event. The number of employees in the sector exceeded 40 thousand for the first time.
The Azerbaijani President Ilham Aliyev touched on several economic issues in his speech at the opening ceremony of the 10th Global Baku Forum themed "The World of Today: Challenges and Hopes." The President spoke about the positive effects of oil and gas projects on the European energy market and once again confirmed widening the energy policy by exporting green energy. International Finance Corporation has already approved the final assessment of our offshore wind potential in the Caspian Sea, which is 157 gigawatts, not to mention about 40 onshore. So, this is the future for world energy; this is the future for Azerbaijan. The energy transition here is developing very rapidly.
Georgia has more than tripled its exports of automobiles to Russia in the first months of 2023 amid claims that Tbilisi is helping Moscow skirt Western sanctions. The former Soviet republic in the South Caucasus delivered 978 passenger vehicles to Russia between January and February, worth 13.5 MLN Usd. During the same period last year, Georgia exported just 209 cars to its northern neighbor.
Chevron plans to increase oil production to one million barrels-per-day in Kazakhstan. Chevron CEO Mike Wirth announced at the CERAWeek conference in Houston, United States, on March 6, reported Kazinform. Chevron has been focusing on expanding its activities in Kazakhstan for nearly a decade.

The KazTransOil oil transportation company plans a test shipment of 7 thousand tons of oil from the Kashagan oil field through Aktau seaport to Baku port this month, reported the company's press service on March 10.

Uzbekistan will receive 25 thousand tons of Russian oil through Kazakhstan by the end of March. This year, the expected volume of Russian oil transit to Uzbekistan will be 250,000 tons.

Kazakhstan has created the G4 City special economic zone (SEZ) in the Almaty Region, seeking to attract nearly 3.7 trillion tenges (8.1 BLN Usd) of investments through 2048, reported the Prime Minister’s press service on March 17. According to the Kazakh government, the new SEZ will produce goods and services worth more than 17 trillion tenges (37.2 BLN Usd) and employ around 60,000 people.
Uzbekistan and Kyrgyzstan sign over 15 documents of cooperation. Major agreements included projects to organize SKD assembly of automotive and commercial vehicles and memorandums on establishing pharmaceutical production.
The Ministry of Transport of Tajikistan (MoT) and Chinese company China Road and Bridge Corporation (CRBC) have reached an agreement on the construction of roads and bridges in the Gorno-Badakhshan Autonomous Region (GBAO). The estimated budget for this project, designed for 30 months, is 31.2 MLN Usd, the source added.
GIZ provides support in the digitalization of customs procedures in Turkmenistan. The German development agency GIZ provides services in international cooperation and education.
Saudi ACWA Power will build two new PV plants in Uzbekistan. The investment agreements were signed on March 4, the Ministry of Energy and the Ministry of Investment, Industry and Trade said. ACWA Power will design, finance, build and operate the power plant for 25 years. ACWA Power's total investment in energy projects in Uzbekistan today is 7.5 Bln Usd.

By the end of 2026, 25 modern power plants with a total capacity of 11,954 MW will be put into operation in Uzbekistan. Over the past four years, to increase generating capacity in Uzbekistan, 25 agreements on the purchase of electricity and investment agreements with a total capacity of 11,954 MW for an unlimited amount of 10.15 Bln Usd have been signed with international companies.

Khududgaztaminot, together with Pietro Fiorentini S.p.A., will begin implementing a project to modernize and reconstruct the gas distribution system of Uzbekistan. The State Agency for Export-Import Financing SACE (Italy) will finance the project for 200 MLN Euros. In addition, it is planned to create a School for the training of gas sector engineers based on the HGT Training educational center.