Carnelutti Russia

Newsletter Central Asia and the Caucasus October 2022

The volume of trade turnover between Armenia and Russia comprised around 2 billion dollars in the first half of 2022, with an increase of 50% compared to the same period of 2021.
The Turkmenistan-Azerbaijan trade volumes raised by 620%. The data is significant as it reflects growing destinations to Europe from Central Asian trade. The total trade volume between Turkmenistan and Azerbaijan reached 305,5 Mln Usd from January through September 2022.

Russia's total investment in Azerbaijan amounted to 6.3 Bln Usd at the beginning of 2022. More than 1,000 companies with Russian capital operate in hydrocarbon production and transportation, the chemical industry, energy, petrochemicals, pharmaceuticals, engineering, and cargo transportation in Azerbaijan.
EBRD PSD in Georgia. A sovereign loan of up to 50 MLN Euro to Georgia to be on-lent to the city of Tbilisi for the benefit of the municipal company operating buses, the metro system, and cable cars. The investment will improve public transport's reliability, safety, and efficiency by upgrading and rehabilitating ten metro stations. You can deepen the PSD by clicking here.

Kazakh and foreign companies signed 1.5 Bln Usd in agreements on Oct. 19 at the Kazakhstan Global Investment Roundtable that brought together over 500 participants, including government officials and top international executives, to explore investment prospects together. The country’s new investment policy concept until 2026 sets an ambitious target of attracting 25 Bln Usd by 2025.

Kazakhstan woos companies fleeing sanctions-hit Russia. As foreign companies are looking to relocate, hundreds are eyeing Kazakhstan as a destination. The government in Astana is touting the benefits of doing business in Kazakhstan to around 300 large foreign companies moving out of Russia.

With the European market non-energy cut off from Russian exporters, Russian manufacturers and traders are looking east to new markets. While Russia remains Kyrgyzstan’s most significant export market, China closely follows this. Kyrgyz international trade is up nearly 20% this year, and the country is rapidly developing an e-commerce industry, again with the assistance of China.

Kyrgyz banks shun Russia’s Mir cards to avoid sanctions contagion. Mir cards became the go-to payment method for Russians after Visa and Mastercard exited the country. Kompanion Bank, Bakai Bank, and Doscredobank have announced that they will no longer process transactions on Mir cards.

The Asian Development Bank (ADB) has approved additional grant financing of 38 Mln Euro for a project rehabilitating and expanding climate-resilient water supply and sanitation infrastructure in Dushanbe, Tajikistan; strengthening the institutional capacity of the state water and sewerage utility DushanbeVodokanal; and promoting women’s empowerment in the country.

President Serdar Berdimuhamedov has been persistent in inviting investors, diplomats, and NGOs to Turkmenistan, a resource-rich, strategically consequential country that borders such key regional players as Afghanistan, Iran, Kazakhstan, and Uzbekistan and has a long coastline on the Caspian Sea. The country serves as one of Eurasia's most important east-west and north-south transport and logistics hubs.

EBRD is facilitating a more reliable and sustainable electricity transmission network in Uzbekistan by providing fresh funds to the state power transmission company National Electric Grid of Uzbekistan (NEGU). The sovereign loan of up to 47.1 million Mln Usd will help NEGU, an existing Bank client, to finance the construction of a new transmission line between the settlements of Sarimay and Djankeldy in the Khoresm and Bukhara region. The new line will link two wind farms – currently under development, with a total installed capacity of up to 1GW – with the national grid.

SEG, the Uzbekistan-based oil and gas company, has announced that it plans to transfer the electricity provision of its oil and gas training site in Karshi to renewable energy sources – specifically solar power. The site currently has 44 solar panels, which the company expects to generate up to 8 kilowatts (KW).