The Week in Kazakhstan: Redacted

Oil, Gas, and Diplomacy

A drone attack against a pumping station in Russia on February 17 forced a reduction in throughput for the Caspian Pipeline Consortium, the main outlet for Kazakhstan’s oil exports. Ukrainian authorities took responsibility for the attack, which they said was aimed to hit “strategic objects that support Russia’s armed aggression.” Russian authorities said the Western partners in the CPC should pay and supply equipment for the repairs. Officials expect the pipeline flow to be reduced by around 30% for weeks, or even months.

An Orlan-10, a Russian reconnaissance drone, was found in Kazakhstan’s north-west near a CPC facility on February 19. Local authorities said to have initiated an investigation for a potential security breach.

During an official visit to Astana on February 17, Péter Szijjártó, the Hungarian foreign minister, met with President Kassym-Jomart Tokayev and discussed potential economic cooperation. Among the topics, the two sides discussed Kazakhstan’s oil supplies to Hungary via the Druzhba pipeline. The southern section of the massive pipeline going westwards across Russia has yet to be utilized, after the flow of Russian oil to Europe was halted due to Western sanctions.

Russia’s government ordered on February 18 to build a gas pipeline connecting the Siberian city of Tyumen with the north of Kazakhstan. The pipeline’s capacity is planned at 10 billion cubic meters. Kazakhstan’s energy ministry had said that, besides the development of the local gas network, the government was looking to Russia as a potential supplier of gas to the energy-poor northern regions.

Politics, Reshuffle, and Censorship

Former presidential assistant Ruslan Zheldibay was re-appointed as Tokayev’s press secretary on February 17. His predecessor, Berik Uali, was appointed governor of the Abay region.

Kazakhstan’s government submitted on February 20 its final proposal on amendments to the Tax Code to Parliament. The main change will affect VAT, which will increase by four percentage points to 16%.

Irina Smirnova, a deputy for the People’s Party, said on February 19 that she is ready to sue anyone who allegedly harassed her after her proposal to adopt a law on “foreign agents.” Smirnova accused her critics of being “bullies.” On February 21, the National Security Committee said it “would not investigate attacks against MPs” regarding their statements towards the LGBT+ community, despite an earlier call to action by ruling party MP Yedil Zhanbyrshin.

Mediazona’s Central Asia newsroom said on February 17 it would temporarily cease operations. Mediazona, a news outlet in open opposition to the Russian government, was founded in 2014 by Pussy Riot’s Maria Alyokhina and Nadezhda Tolokonnikova, who have since left the project.

Mining and Logistics

A rock collapse killed seven workers at a copper mine in the Ulytau region on February 17. Kazakhmys, the large corporation operating the Zhomart mine, said a natural gas leak caused the explosion. Accidents at coal mines have killed dozens of workers in recent years.

Axpo, the Swiss nuclear operating utility, said on February 17 that it signed new uranium supply contracts with Kazakhstan’s Kazatomprom. Axpo needs uranium to fuel its Beoznau and Leibstadt nuclear power stations and is no longer buying uranium from Russia. Axpo also said it agreed on uranium supplies from Canada.

Glencore, one of the world’s largest commodity traders, has resumed talks with potential buyers to sell its assets in Kazakhstan, the FT reported on February 14. Last year, the company was reportedly close to a deal to sell its 70% stake in Kazzinc, a zinc, lead, and gold producer in the country. In January, Prime Minister Olzhas Bektenov revealed that Kazzinc would be investigated for environmental violations.

Kazakhstan’s authorities announced on February 18 that the marine terminal in Poti, Georgia will be operational in April. This is Kazakhstan’s first sea terminal abroad. An outlet into the Black Sea, the Poti terminal will handle up to 120,000 containers annually. The project cost Kazakhstan’s PTC Holding $30 million.

Fresh Air, Bad Air, Buyback Air

Akylbek Muratov, a Karakalpak human rights activist, was released from custody on February 16 after a year in detention. He had been under pressure from both Kazakhstan and Uzbekistan’s law enforcement for having reported on the repression of public protests in Karakalpakstan in 2022. He was detained in Almaty in February 2024 and his request for political asylum in Kazakhstan was denied.

Clarity, an air quality monitoring service, published on February 18 data that showed enduring significant air pollution in Almaty. According to Clarity data, the concentration of PM 2.5 particles was 24.1 μg/cubic meter, which is almost five times higher than the WHO safety ceiling. "There were 202 dirty days in Almaty in 2024, meaning that Almaty residents breathe polluted air most of the time,” Ravkat Mukhtarov, an air quality activist, said at a conference.

Air Astana, the flagship carrier, bought back around 4.6 million shares (around 1.3% of the total) for a total of $8.2 million on February 17. The company had gone public in February last year. Sovereign fund Samruk-Kazyna (41%) and BAE Systems (16.95%) are the largest single shareholders in the company.