Carnelutti Russia

Newsletter Central Asia and the Caucasus March 2024

Armenia: Pressing ahead with a dry port concept. The government plan seeks to transform Armenia into a “transit, transport and export-focused manufacturing hub,” according to a readout from a meeting of the country’s investment committee published earlier this year. The dry port concept rests on establishing a free-trade zone featuring multi-modal air, rail and trucking facilities connected to warehouses and industrial parks.
Azerbaijan's SOCAR to consider geological exploration projects in Kazakhstan. The KazMunayGas (KMG) national oil and gas company invited SOCAR (State Oil Company of Azerbaijan) to consider projects related to geological exploration.

Georgia FDI drops by 24% in 2023. Foreign direct investment (FDI) in Georgia reached 1.59 Bln Usd in 2023, dropping by 24% following a year in which the country recorded more than 2 Bln Usd inflows.

AD Ports Group signed a purchase agreement with Inveco LLC to acquire 60% ownership in the Tbilisi Dry Port, a new custom-bonded and rail-connected intermodal logistics hub in Georgia. As part of the agreement, AD Ports Group will initially invest 61 Mln AED (16.6 Mln Usd) in the project, which is expected to be operational by Q4 2024.

Kazakhstan and Qatar are on the verge of implementing large-scale and strategically important investment projects worth an unprecedented amount of 17.6 Bln Usd.

Kazakhstan and Italy's ENI review collaboration in Energy sector. Prime Minister Olzhas Bektenov and Upstream Director of the Italian company ENI Luca Vignati reviewed ongoing joint work at the Karachaganak and Kashagan fields. They explored opportunities for launching new projects in renewable energy sources.

The German company W. Hass Future GmbH & Co is ready to invest more than 300 Mln Euro in constructing solar power plants in Kyrgyzstan, the press service of the Chamber of Commerce and Industry of the Kyrgyz Republic reported. In addition, the German side offered training in new approaches and technologies for specialists from Kyrgyzstan, who were later employed in planned joint ventures.

World Food Program (WFP) has released Tajikistan Annual Country Report 2023 and Country Strategic Plan 2023-2026. You may download by clicking here.

The Executive Board of the International Monetary Fund (IMF) approved a twenty-two-month Policy Coordination Instrument (PCI) for Tajikistan. Tajikistan's favourable post-pandemic economic performance continued in 2023, with robust, broad-based growth and low inflation. The fiscal deficit has remained within the authorities' medium-term deficit target, further reducing the public debt-to-GDP ratio. The outlook for 2024 appears favourable, although there remains considerable uncertainty over the external environment.

Petrofac extends contract to further develop "world's second-largest gas field" in Turkmenistan. The three-year agreement, valued at over 200 Mln Usd, includes provision of personnel to supervise and support operations and maintenance activity, the provision of technical support and procurement services, and the development and implementation of management systems to support efficient operations of the Galkynysh Gas Field Central Processing Facilities 1 and 1A.

Officials from Turkmenistan and Turkey signed two preliminary agreements for the Central Asian country to supply gas to Turkey and onward to Europe, deals that would aid Ankara's bid to become a regional energy hub. If finalized, Turkmenistan can reduce reliance on China as a dominant customer.

ACWA Power to build two more wind power plants in Uzbekistan. The total investment ACWA Power undertakes to attract to both projects will be 1.085 Bln Usd. Of this, 682 Mln Usd will be spent on constructing a wind farm in Gijduvan, and the rest in Kungrad.

Uzbekistan is planning to triple the volume of natural gas imports from Russia via transit through Kazakhstan in 2024. In the Uzbek government's investment program for the first quarter of 2024, there were plans to increase gas imports from Russia from 9 million to 32 million cubic meters per day. Further, by 2030, the state company Uztransgaz intends to invest 470 Mln Usd to modernize the gas transport system and double the capacity of the Gazli gas storage facility.