The Week in Kazakhstan: Stranger Things

Azerbaijan’s government sources told Euronews on December 26 that the crash was likely caused by a Russian surface-to-air missile, which was fired during “drone activity” over Grozny. Kazakhstan’s government, which established an investigative commission, said it would not comment on any theories on the causes of the plane crash until the investigation is complete. Maulen Ashimbayev, the Speaker of the Senate, said the theory around a Russian missile attack was “speculation” and shamed journalists who published articles about it.

Qazaq Air said on December 27 it would temporarily halt flights from Astana to Yekaterinburg “for the safety of passengers and crew members.” The airline operates several flights to the Russian territory, but it only halted one destination, Yekaterinburg, for one month. The company, which is poised to be sold to Vietnamese investors in the upcoming weeks, cited an internal risk assessment report in the aftermath of the plane crash in Aktau.

Almasadam Satkaliyev, the minister of energy, said on December 24 that Kazakhstan’s oil production shrank this year also due to scheduled maintenance at the Caspian Pipeline Consortium. The CPC replied in a note that it complied in full with the volumes contracted with its customers and pumped the planned volume of oil. Around 80% of Kazakhstan’s oil exports flow through the CPC.

Workers at the Northern Buzachi field protested safety conditions on December 26 after one of their colleagues was found dead while on the job two days earlier. The oil field, located in the western Mangistau region, is operated by Buzachi Operating, a consortium of China’s state owned companies Sinopec, CNPC, and PetroChina.

The Turkestan regional prosecutor’s office reported on December 26 that it uncovered an oil products smuggling operation that illegally sent between 5-7 tons of fuel to Uzbekistan. A criminal group had built a 450-meter tunnel across the border with Uzbekistan to transfer the fuel. The prosecutor said that all members of the group were identified and are being investigated, without disclosing further details.

The transfer of import customs duties between Kazakhstan, Russia, and Belarus will be carried out in rubles for the next two years, the Parliament ruled on December 25. Kazakhstan is a member of the Eurasian Economic Union (which also includes Armenia, Belarus, Kyrgyzstan, and Russia) and faces difficulty paying customs duties in US dollars, given western sanctions against Russia and Belarus.

The merger of Kazakhstan’s two time zones into one in March did not lead to increased imports of electricity, Satkaliyev told the press in Almaty on December 25. Kazakhstan’s northern and eastern regions import electricity from Russia. The minister said “Consumption volumes grew only due to the repair of energy facilities.” A government grant worth 54 million tenge ($104,000) will be allocated next year to study the consequences of the time change on people’s health.

After Kazakhstan’s President Kassym-Jomart Tokayev ordered to speed up the process of the construction of the country’s first nuclear power plant, energy minister Satkaliyev said on December 25 that a government commission will make a final decision in the first half of next year. Companies from France, China, and Russia have expressed interest in working with the local authorities on the project.

Transport minister Marat Karabayev said on December 23 that a new shipyard in the Mangistau region will cost the budget 130 billion tenge ($251 million). Karabayev also said that construction will start next year and end in 2026. State-owned Industrial Development Fund will finance the project. For years, the government has said it wants to beef up its fleet to increase trans-Caspian shipments.

A weaker tenge will translate into slightly higher budget revenues, Yerzhan Birzhanov, the vice minister of finance told Vlast on December 23. Birzhanov said the tenge’s falling against the US dollar had a beneficial effect for the budget, but that was offset by increased import prices. Birzhanov forecast a windfall of an additional 10-15 billion tenge ($19-29 million) until the end of the fiscal year.

A court in Kyzylorda sentenced on December 24, 25, and 27 three people accused of exploitation of prostitution in a landmark case that uncovered a sexual slavery ring this summer. The two defendants were sentenced to 4.5, 4, and 8 years in prison respectively. There are 11 suspects in the case, which involved months of abuse against a 16-year-old girl.

Aidarbek Khodzhanazarov, the leader of the Respublica party and an MP, proposed on December 23 to reduce state aid to banks. Khodzhanazarov said banks receive more than 2 trillion tenge ($3.9 billion) in state support annually. The MP also proposed to increase corporate taxes on bank income to 30%.

Nurlan Baibazarov was fired on December 21 from his post as the head of the ministry of economy. Tokayev selected deputy Prime Minister Serik Zhumagarin to take Baibazarov’s place. Between 2022-2023 Zhumagarin served as minister of trade.

Wishing you a happy New Year! The weekly will resume in January 2025.