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Home> Publications > The China and Eurasia Forum

The China and Eurasia Forum
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HEADLINES

 

 

Below are daily updated news from the China-Eurasia region. The news are arranged chronologically under the headlines below.

Headlines:     

Security Situation and Regional Cooperation
Economics, Trade, and Assistance
Energy and Natural Resources
Politics


Security Situation and Regional Cooperation  

KAZAKH POLICE SEIZE HIGHLY RADIOACTIVE CARGO IN SOUTH
On March 4, Interfax reported that policemen have seized a
truck carrying scrap metal with a high level of radiation in
Almaty. The truck with the cargo, which was stopped in the
early hours of March 3 in the city's Auez district on the
13th km of the Almaty-Bishkek main road, has been taken under
traffic police escort to the Nuclear Physics Institute in the
village of Alatau.
(Interfax, March 4)


RUSSIA’S DRUG CONTROL AGENCY TO OPEN OFFICES ABROAD

On February 27, it was announced that the Russian Federal
Drug Control Agency (FSKN) plans to open offices in several
foreign countries before July 2007. According to FSKN
director Viktor Cherkesov, "The agency is set to open
branches in countries such as the United States, Austria,
Tajikistan, Afghanistan and others."
(Interfax, February 27)

KAZAKH ARMED FORCES FACING REFORM
On February 22, Kazakh Defense Minister Danial Akhmetov announced that the Kazakh armed forces are on the threshold of substantial reform. According to Akhmetov, "The armed forces need a transformation. This includes the alteration of the structure of the armed forces and military culture. This is what the Defense Ministry has started to do." A day before, the secretary of the Kazakh Security Council, Berik Imashev, said Kazakhstan has approved a national security strategy for the next few years.
(Interfax and Russia & CIS Military Daily, February 21-22)


DETAILS ON NEXT CSTO EXERCISE ANNOUNCED

On February 21, details of the upcoming Rubezh 2007 (Border) exercises of the Collective Security Treaty Organization slated for this spring were announced. According to the First Deputy Chief of the Joint Staff of the organization Colonel General Ivan Babichev, the active phase of the exercise will be located to Tajikistan and involve combat aircrafts of the Collective Rapid Deployment Force, stationed at Kant Air base.
(Interfax-AVN, February 21)

KYRGYZ PARLIAMENTARIANS QUESTION US PRESENCE AT GANCI AIRBASE
On February 20, Kabar reported that Deputies of the Kyrgyz Parliament (Jogorku Kenesh) had discussed the terms of stay of the U.S. forces at Ganci airbase in Kyrgyzstan. Moreover, on January 12, Kyrgyz speaker Marat Sultanov told a press conference in Bishkek that "the situation in Afghanistan is stabilizing" while simultaneously questioning the need for keeping a large US contingent in Kyrgyzstan.
(Kabar, January 20 and Interfax, February 12)


OBSERVER STATES MAY JOIN SCO COUNTER-TERROR EXERCISES T
he Shanghai Cooperation Organization (China, Russia, Kyrgyzstan, Kazakhstan, Tajikistan, and Uzbekistan) is finishing formalities that will enable states enjoying observer status in the SCO to "take part on a practically equal basis in anti- terrorist projects in the organization," Russian Foreign Minister Sergei Lavrov said on February 16. Mongolia, Iran, India, and Pakistan are observers in the SCO and the Regional Anti-Terrorist Structure is currently finalizing the details of the agreement.
(Interfax, February 16)


SUSPECTED ETIM-MEMBER ARRESTED IN KYRGYSTAN
On February 15, Interfax reported that Tursun Talip, an alleged member of the East Turkestan Independence Movement (ETIM), had been arrested in the Osh region of southern Kyrgyzstan. According to a source at the Osh regional police department "Talip planned to perpetrate terrorist acts and other actions targeted for socio-political destabilization with the assistance with the group, which would unite members of outlawed radical groups such as Hizb-ut-Tahrir and the Turkistan Islamic Party."
(Interfax, February 15)


EU TO ANNOUNCE NEW CENTRAL ASIA STRATEGY IN LATE MARCH
The European Union's German presidency has said it will reveal a draft of the EU's new strategy for Central Asia at a meeting with the region's foreign ministers in late March. After meeting a Kazakh delegation in Brussels on February 13, German deputy foreign minister, Gernot Erler, said a draft of the new regional strategy will be presented to all five Central Asian foreign ministers in Kazakhstan on March 28. (RFE/RL, February 15)

AFGHAN DEFENSE MINISTER SAYS RECAPTURE OF MUSA QALA
DELAYED

On February 15, Afghan Defense Minister General Rahim Wardak said that Afghan National Army (ANA) and ISAF units are set to retake the town of Musa Qala from Taliban militants, but that they will give diplomacy a chance first.
(RFE/RL, February 15)


TAJIK SECURITY OFFICER HELD ON SUSPICION OF DRUG SMUGGLING
On February 13, a source at the Tajik Ministry of Internal Affairs told Asia- Plus that a major of the Tajik State Committee for National Security, Tohirjon Rahmatov, had been caught in a special operation on February 11 suspected of smuggling a large batch of heroin weighing about 53 kg and also over 144 kg of raw opium to the north of the country. (Asia-Plus, February 13)


CHINA EXECUTES UIGHUR ACTIVIST

On February 8, China executed an Uighur activist in Urumqi, Xinjiang on charges "to split the motherland" and possessing firearms and explosives. Semed, an ethnic Uighur, was deported from Pakistan in 2003 and convicted two years later. The charge of separatism stemmed from the allegation that he was a founding member of the East Turkestan Islamic Movement.
(Times, February 10)


TRIAL OF IMU MEMBERS OPENS IN TAJIKISTAN

On February 8, Interfax reported that seven alleged Islamic Movement of Uzbekistan (IMU) members currently are on trial in northern Tajikistan on charges of "organizing an illegal armed unit" and attempted terrorist attacks.
(Interfax, February 8)


CHINA STRENGTHENS SECURITY AT BORDERS WITH CENTRAL ASIAN STATES
On February 8, the Kyrgyz border service said that Chinese authorities have strengthened security at the borders with Kyrgyzstan and Tajikistan following the Chinese counter-
terrorist operation conducted between January 4-8 near the town of Tashkorgon in Xinjiang.
(Interfax, January 11)


8 KILLED IN BOMB BLASTS IN SOUTHERN AFGHANISTAN
On February 7, two bomb attacks in Afghanistan's Kandahar province killed eight policemen and guards.
(Times of Central Asia, February 8)

U.S. TAKES OVER NATO FORCE
On February 4, Britain handed over control of the NATO-led
International Security Assistance Force (ISAF) in Afghanistan
to the United States. At a ceremony in Kabul, Afghan
President Hamid Karzai thanked Commander General David
Richards for Britain's efforts in 2006. U.S. General Dan
McNeill will be in charge of the operation from now on.
During Richards' nine months in charge, the 37-nation ISAF
has increased from 9,000 to more than 33,000 troops.
(Stratfor, February 4)


AFGHAN GOVERNMENT ATTEMPTS TO RETAKE MUSA QALA
On February 4, Taliban fighters attacked Afghan National Army
(ANA) soldiers in Afghanistan's Farah province. The attack
came following the Afghan government's attempts to retake
Musa Qala in southern Afghanistan that has been taken by the
Taliban. It was also reported the same day that Taliban
commander Mullah Ghafour had been killed in an airstrike near
Musa Qala. Taliban fighters overtook southern Afghanistan's
Musa Qala district in Helmand province on February 1.
(Stratfor, February 3-4)


CHINA URGES REPATRIATION OF SUSPECTED TERRORISTS
On February 1, a Foreign Ministry spokesman of the PRC said
China wants the United States to repatriate the suspected
Chinese terrorists being held at Guantanamo Bay as soon as
possible. The spokesperson, Jiang Yu, stressed that the
alleged "East Turkistan" terrorists also "are part of
international terrorist forces."
(Xinhua, February 1)


UZBEK AUTHORITIES ACCUSE UMIDA NIYAZOVA FOR AKRAMIYA
AFFILIATIONS

On January 30, AP reported that Uzbek authorities have
brought new charges against Umida Niyazova, a known human
rights activist, who was arrested last week for alleged
illegal border crossing and smuggling. Uzbek investigators
allege that documents found in Niyazova's laptop link her to
Akramiya, the Islamic group involved in the Andijan uprising
in 2005.
(AP, January 30)

US TO GIVE TAJIK TROOPS COUNTER-TERROR TRAINING
From January 28-March 9, a joint Tajik-US military training
will be held at the training ground of the Fakhrobod military
training complex (35 km southwest of Dushanbe. According to,
the State Committee on National Security of Tajikistan [SCNS]
a group of US infantrymen will teach sub-units of the Tajik
special task force and the Tajik border troops tactics in the
fight against armed extremist groups.
(Asia-Plus, January 25)


SUICIDE BOMBER KILLS 10 AFGHAN LABORERS NEAR NATO BASE
On January 23, at least 10 Afghan laborers were killed and
more than 14 wounded when a suicide bomber blew himself up
outside the NATO-led Salerno base of the International
Security Assistance Force (ISAF) in the eastern city of
Khost. All the dead and injured were civilians.
(Times of Central Asia, January 24)


SCO'S NEW SECRETARY-GENERAL ASSUMES OFFICE
On January 22, the newly-elected Secretary-General of the
Shanghai Cooperation Organization (SCO) Bolat Nurgaliev
assumed office in Beijing. Bolat Nurgaliev had served as vice
foreign minister of Kazakhstan and Kazakhstan's ambassador to
the United States, the Republic of Korea and Japan.
(Xinhua, January 22)


TOP TALEBAN SPOKESMAN ARRESTED

On January 22, Afghan intelligence agents said that a leading
spokesman for the Taleban had been arrested near the Pakistan
border. Intelligence service spokesman Sayed Ansari named him
as Dr Muhammad Hanif, who has been Taleban spokesman since
October 2005. Mr Ansari said Dr Hanif was detained in the
border town of Towr Kham in Nangarhar province after crossing
the Afghan-Pakistan border.
(BBC, January 22)


KYRGYZ POLICE OFFICER KILLED IN GUNFIGHT

On January 19, a member of the Kyrgyz Interior Ministry's
special purpose detachment died in a special operation on
Bishkek's outskirts in the village of Prigorodnyy. According
to Kyrgyz 24 kg news-website, the special operation targeted
two criminals, who were notorious Rysbek Akmatbayev's [crime
boss shot dead by unknown gunmen in 2006] close accomplices.
(BBC via 24kg website, January 19)


THE DIRECTOR OF THE KYRGYZ KARA SUU MARKET KILLED
On January 19, the Kyrgyz Interior Ministry stated that the
director of one of the largest bazaars in Central Asia, the
Kara Suu Market in the Kyrgyz south, had been gunned down in
his home. The killing of Yrysbek Jooshbekov follows a pattern
of similar murders in the past few years. The Kara Suu
market's previous director, Abdalim Junusov was shot dead
along with his driver in September 2005. Weeks after
the murder of Junusov, unknown assailants killed the market's
previous owner, controversial lawmaker Bayaman Erkinbayev.
(AP, January 19)


KYRGYZ CAPITAL TIGHTENS SECURITY FOLLOWING TIP-OFF

On January 17, a member of the National Security Service
revealed that the Kyrgyz law-enforcement agencies had
carried out preventive measures in Bishkek following
information on a possible terrorist attack. According to the
source, who requested anonymity, the National Security Service
checked crowded areas, including pedestrian subways near the
Central Department Store, the Philharmonic Society, the Osh
market, and the area around the Vefa Centre.
(BBC, January 17)


RUSSIAN COUNTER-NARCOTICS SERVICE TO OPEN OFFICE IN
UZBEKISTAN

On January 15, it was reported that the Federal Service for
Control over Drugs of the Russian Federation (FSCD RF) is
planning to open an office in Uzbekistan in 2007. The service
will also open offices in USA, Austria, Iran, Afghanistan,
Kyrgyz Republic and Kazakhstan. The first office will open in
Tajikistan in early 2007.
(UzReport, January 15)

SCO MEMBERS DISCUSS JOINT ANTI-TERROR DRILLS
On January 10-12, the Military Expert Group of the member
countries of the Shanghai Cooperation Organization (SCO) held
its second round of consultations in Shanghai to discuss the
joint anti-terror military exercise to be staged by their
armed forces.
(Kabar, January 15)


150 TALIBAN MILITANTS KILLED IN CLASH WITH NATO FORCES
On January 11, NATO forces killed as many as 150 Taliban
militants in a clash in Afghanistan's eastern Paktika
province. The militants were likely in the process of
preparing an attack according to U.S. military spokesman Lt.
Col. Paul Fitzpatrick. The battle was the largest so far this
winter.
(Stratfor, January 11)


RAID ON ALLEGED ETIM CAMP IN XINJIANG
On January 8, Chinese authorities announced that 18 people
had been killed and 17 arrested during a raid on a terrorist
camp run by the East Turkestan Islamic Movement in Xinjiang.
The raid itself was reportedly carried out on January 5. A
firearm, 22 grenades, and about 1,500 hand-made explosives
were seized according to Kabar news-agency.
(Kabar, January 10)


15 SUSPECTED TALIBAN REPORTEDLY KILLED IN SOUTHERN
AFGHANISTAN

On January 6, Voice of America reported that NATO and Afghan
forces have killed at least 15 suspected Taleban militants in
a battle in Afghanistan's southern Helmand province. NATO and Afghan
troops did not suffer any casualties in the fighting.
(VOA, January 6)


WEAPONS CACHE RECOVERED IN BAGHLAN
On January 6, Afghan Police claimed recovering a huge depot
of weapons and ammunition in Baghlan district of the Afghan
central Baghlan province. Brig Gen Habib Rahman Fazli,
provincial chief of the criminal branch, said the ammunition
contained 39 boxes of ZK-1 and anti-aircraft bullets, 12
artillery shells and 7 RPG-7 bullets.
(Pajhwok Afghan News, January 6)


TAJIK BORDERGUARDS SEIZE OVER TWO TONNES OF NARCOTICS IN 2006
On January 4, Itar-Tass reported that borderguards on the
Tajik- Afghan border, acting in conjunction with the law
enforcement agencies of Tajikistan, busted over two tonnes of
narcotics in 2006, with heroin accounting for almost a half
of the amount. There were 18 clashes on the border over the
same period. Three Afghan and Tajik drug couriers were
killed, three wounded, and 215 detained.
(Itar-Tass, January 4)

CHINA, PAKISTAN STAGE ANTI-TERRORISM EXERCISE
On December 18, Chinese and Pakistani troops concluded an
eight-day anti- terrorism drill in the mountainous area of
northern Pakistan's Abbottabad. The exercise, code-named
"Friendship-2006," included command post exercises, and troop
exercises involving raids, ambushes, searches and
annihilation, according to People's Daily.
(People's Daily, December 19)


CLASHES IN KANDAHAR
On December 17, NATO-led ISAF forces claimed killing 30
Taliban fighters in a joint operation with the Afghan
National Army (ANA) in Afghanistan's southern Kandahar
province. Two Taliban commanders Mullah Sher and Mullah
Mohammad were reportedly killed in the shootout.
(Pajhwok Afghan News, December 17)


EU-DELEGATION MAKES ASSESSMENT IN ANDIJAN
On December 14, RFE/RL reported that a delegation of European
Union experts led by Finnish diplomat Pekka Oinonen had arrived to the eastern Uzbek city of Andijon to assess the
violent events that unfolded there in May 2005. Oinonen said
the delegation met with city officials, but had no time left
to talk to residents.
(RFE/RL, December 14)

CHINA, PAKISTAN TO LAUNCH JOINT ANTI-TERROR EXERCISE
On December 10, military sources in Beijing announced that
China and Pakistan will launch a joint "anti-terror military
exercise" from December 11 to December 18 in Pakistan. The
military exercise, code-named "Friendship-2006", is carried
out under an agreement between the defense ministries of
China and Pakistan.
(People's Daily, December 11)


CHINESE AND RUSSIAN POLICE BUST DRUG RING
On December 8, police sources in northeast China's
Heilongjiang Province announced that Chinese and Russian
anti-narcotics police had jointly broken up a transnational
drug trafficking ring and arrested 27 people, including three
Russians. The police seized 1,112 grams of metamphetamine, or
"ice", as well as narcotics equipment and weapons. The
Chinese and Russian police signed an agreement last year to
crack down on drug-related crimes in the border areas.
(Xinhua, December 8)


KYRGYZ CITIZEN SHOT AT MANAS AIR BASE

On December 6, a citizen of Kyrgyzstan was killed at the U.S.'
Manas air-base in Kyrgyzstan. An American sentry fired two
shots in the chest of a fuel truck driver, killing him on the
spot. The truck-driver tried, according to reports, to ram the
gates and make it past the defense perimeter.
(RIA Novosti, December 7)


CHINA THREATENS INDIA'S MARITIME INTERESTS
On December 2, Indian navy Chief Adm. Sureesh Mehta stated
that China is creating a maritime area around India that
could threaten India's interests. Particular emphasis was
placed on China's growing ties with Myanmar, Sri Lanka,
Pakistan and countries on the African coast.
(Stratfor, December 2)


UZBEKISTAN RESTORES MEMBERSHIP IN CSTO
On December 1, the Uzbek parliament approved a law restoring
Uzbekistan's membership in the the Collective Security Treaty
Organization following its suspension in 1998.
(Interfax, November 22)


CHINESE NUCLEAR EXPORT CONTROL REGULATIONS PUBLISHED
On December 1, China's State Council published the country's
revised regulations on nuclear export controls. The new
regulations, signed by Chinese Premier Wen Jiabao on November
9, will take immediate effect.
(Xinhua, December 1)


CHINESE LAND PROTESTERS TAKE HOSTAGES

On November 30, around 1000 villagers in the Chinese village
of Xichong in Guangdong province took two hostages and
surrounded a village committee in protests against land
seizures.
(Radio Free Asia, November 30)


TRAILER TORCHED IN GHAZNI
On November 30, Taliban fighters torched a trailer supplying
logistics to the NATO-led ISAF forces in Andar district of
the southern Ghazni province, as reported by Pajhwok Afghan
News. A local Taliban commander claimed they had also taken a
trucker along with them to an "unknown location."
(Pajhwok Afghan News, December 1)


NATO SEEKS CLOSER COOPERATION WITH CHINA
On November 28, the secretary-general of NATO Jaap de Hoop
Scheffer stated that the appearance of global challenges
brings closer together the interests of NATO and China in
joint efforts to ensure international security. In this
connection, the NATO leadership intends to boost relations
with China and hopes for Beijing's reciprocal steps.
(Kazinform, November 28)


OVER 50 TAJIKS DETAINED ON KAZAKH-UZBEK BORDER

On November 27, Interfax-Kazakhstan reported that Kazakh
border guards have detained 51 Tajik citizens who were trying
to cross the Kazakh-Uzbek border illegally on their way to
their homeland. Last week, "the Arlan assault-combat group of
the Kaplanbek border post (in South Kazakhstan Region, SKR)
detained 51 Tajik citizens at a guarded section [of the
border]", says a press release circulated on November 27 by
the Kazakh National Security Committee's border service.
(Interfax-Kazakhstan, November 27)


SUICIDE BOMBING IN URGUN

On November 26, a suicide bomber in the eastern Afghan town
of Urgun killed 15 people and wounded another 25. Most of the
casualties were personnel from a militia hired by U.S. forces
to help with search and patrol missions.
(Stratfor, November 26)


STATISTICS SHOW HIV, AIDS SPREADING IN KAZAKHSTAN

On November 14, Interfax reported that a total of 1,285 new
cases of HIV-infection had been registered in Kazakhstan in
January- September, compared with 666 in the same period in
2005.
(Interfax, November 14)


27 FOREIGN DRUG TRAFFICKERS HELD IN XINJIANG

On November 13, Xinhua reported that 27 foreign drug
traffickers have been arrested this year in Xinjiang. The 27
people came from Pakistan, Afghanistan and Africa. On
November 6, a two-week class also began in the cities and
prefectures of Urumqi, Kashi and Ili to educate policemen,
custom officers, train staff and postmen about drug
smuggling.
(Xinhua, November 13)


KAZAKH CUSTOMS OFFICERS DETAIN CHINESE MAN WITH RADIOACTIVE MATERIAL
On November 13, Kazakh customs officers foiled an attempt to
smuggle 0.5 kg of radioactive caesium into China. The seizure
was made on a bus from Kazakhstan to China at the
Maykapchagay customs checkpoint in East Kazakhstan.
(Itar-tass, November 14)


COUNTERNARCOTIC TECHNOLOGIES SOUGHT FOR AFGHANISTAN

On November 13, the US Defense Department's Counter
Narcoterrorism Technology Program Office announced that it is
looking for contractors that can quickly develop and
implement critical counternarcotic technologies and training
in Afghanistan. This will primarily involve intelligence,
surveillance and reconnaissance technologies for counterdrug
and counter- narcoterrorism missions.
(Inside the Army, November 13)


KYRGYZ GRENADE ATTACK AGAINST MP

On November 11, two grenades were thrown into the house of
Kyrgyz First Deputy Interior Minister Sherkazy Mirzakarimov.
Mirzakarimov took part in the recent rallies by the Kyrgyz
opposition.
(AkiPress, November 12)


POPPY-2006 UNCOVERS CANNABIS FARMS IN TAJIK NORTH

On November 11, Avesta reported that the counter-narcotics
operation Poppy 2006 had discovered major cannabis
plantations in the high mountain villages in the north of
Tajikistan, primarily in the Mastchoh-i Kuhi, Istaravshan,
and Bobojon Ghafurov districts. The poppy operation is
carried out from late spring to late autumn every year.
(Avesta, November 11)


BLAST KILLS 35 AT PAK ARMY BASE
On November 8, a suicide attacker detonated a bomb at a
Pakistan army training base killing at least 35 soldiers and
wounding several others. It was the deadliest attack so far
on the Pakistani military, which has been waging a campaign
to clear pro-Taliban militants from the northwestern border
region.
(AP, November 8)


15 SUSPECTED INSURGENTS KILLED BY NATO TROOPS IN AFGHANISTAN
On November 7, NATO-led troops killed 15 suspected insurgents
in eastern Afghanistan. The troops came under attack in
Barmal district of Paktika province bordering Pakistan.
(AP, November 8)


SIX PEOPLE INJURED IN BISHKEK PROTESTS
On November 7, at least six people were injured in the
main square of Kyrgyzstan's capital, Bishkek, after riot
police were dispatched. The police were sent to avoid a clash
between the estimated 2,000 pro-government protesters and the
estimated 2,000 opposition protesters.
(Stratfor, November 7)


ARMENIA INCREASES MILITARY SPENDING

On November 6, the Armenian Defense Minister Serzh Sarkisian
announced Armenian military spending will increase by 39
percent in the 2007 draft budget.
(Stratfor, November 6)


RIOT POLICE DETAIN NATIONALIST PROTESTERS IN MOSCOW

On November 4, hundreds of ultra-nationalists and far-right
demonstrators rallied in Moscow and dozens of protesters were
arrested. Although organizers predicted a much higher
turnout, a presence of some 6,500 police officers seems to
have deterred many from participating.
(Voice of America, November 4)


CLASHES BETWEEN NATO FORCES AND TALIBAN
In the last week clashes between NATO Forces and Taliban
occurred in 5 provinces of eastern and southern Afghanistan.
The clashes claimed 4 NATO soldiers lives and about 67
Taliban casualties. Since NATO took over responsibility for
the region from American troops at the beginning of August,
56 of its soldiers have been killed in fighting.
(Times of Central Asia, November 1)


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Economics, Trade, and Assistance
 

US$60 BLN NEEDED TO RESTORE DESTROYED INFRASTRUCTURE IN NAGORNO-KARABAKH
On March 5, Azeri Prime Minister Artur Rasi-zade said that
US$60 billion will have to be spent on the restoration of the
destroyed infrastructure in Nagorno- Karabakh.
(Interfax, March 5)

TAJIK LEADER, CHINESE BANK CHIEF DISCUSS ROAD, ENERGY
PROJECTS

Prospects for developing cooperation between Tajikistan and
the Exim Bank of China have been discussed during a meeting
between Tajik President Emomali Rahmonov and the bank's vice-
president, Li Jun, Tajik Avesta's website reported on March
5. During the meeting the sides were positive about the
implementation of projects to build and reconstruct the
Dushanbe-Chanak road [in northern Tajikistan], construct the
South-North and Lolazor-Khatlon high-voltage power
transmission lines, which are being financed by the Chinese
bank.
(Tajik Avestam March 5)

RUSSIA, TAJIKISTAN AGREE ON FINANCING FOR SANGTUDIN POWER PLANT’S COMPLETION
Russia and Tajikistan have coordinated the terms for
financing needed to complete the jointly-built Sangtudin
hydroelectric plant, Interfax reported on March 5. The
plant's construction is financed by the Russian United Energy
Systems (RTS: EESR) and from the Russian federal budget. In
2005, Tajikistan and Russia agreed to complete the 670-
megawatt Sangtudin-1 hydropower plant with average output
capacity of 2.7 billion kilowatt-hours per year.
(Interfax, March 5)


KYRGYZSTAN LIFTS RESTRICTIONS ON QUOTAS FOR CHINESE
RETAILERS

On March 3, it was reported that theKyrgyz government has
almost cancelled a decision banning foreign nationals from
working at local markets. The Cabinet thinks that strict
measures against foreign retailers may especially have a
negative effect on trade relations with China.
(24 Kg Website via BBC, March 3)


WORLD BANK TO TAKE PART IN KAZAKH SECTION OF EURASIAN TRANSPORT PROJECT
The World Bank will take part in the implementation of the
Europe-East Asia transport corridor, the bank's permanent
representative in Kazakhstan, Sergey Shatalov, said on March
2. If the transport corridor project is "carried out through
Kazakh territory, this will shorten the distance by 3,000 km
[and] be the main artery for developing Eurasian trade flows.
Transport arteries linking Europe with East Asia are now
about 11,500 km long."
(Interfax-Kazakhstan, March 2)


UN INCREASES FINANCING OF CENTRAL ASIAN CENTER TO COUNTER DRUG TRAFFICKING
On March 1, it was announced that the budget of the project to
establish the Central Asian Regional Information and
Coordination Center (CARICC) to counter drag trafficking will
be increased 1.5 - 2 times. As of now, the budget is about $6.5 million
for 4-5 years.
(Interfax, March 19


CHINA TO INVEST US$6.7 BLN INTO AIRPORT CONSTRUCTION IN WEST
On March 5, Asia in Focus reported that China will invest
US$6.7 billion in airport construction in its western regions
from 2006 to 2010. Xinjiang Uygur Autonomous Region will
increase the number of its airports from the current 16 to 20
in 2010. Beginning from February 27 China Southern Airlines
will also add two flights a week from Urumqi to Almaty,
Kazakhstan.
(Asia in Focus & Xinhua, March 6 & February 27)

TURKMENISTAN CANCELS AFGHANISTAN’S ELECTRICITY DEBT On February 21, Turkmenistan’s newly elected President Gurbanguly Berdymukhammedov announced the cancellation of nearly $4 million in debt owed by neighboring Afghanistan for electricity. Berdymukhammedov said the debt has been accumulating since 2002 and was eliminated as a "goodwill gesture" to help Afghanistan recover from decades of war.
(Times of CEntral Asia, February 22)


U.S. SENATORS CALL FOR NATO TO SET UP COMPENSATION FUND FOR AFGHAN CIVILIANS
On February 15, U.S. Senators Joseph Biden and Patrick Leahy sent a letter to NATO Secretary-General Jaap de Hoop Scheffer in which they urged NATO to create a trust fund for Afghan civilians injured by NATO-led operations. Biden currently chairs the U.S. Senate's Foreign Relations Committee and Leahy heads the Foreign Operations Subcommittee of the Senate's Committee on Appropriations.
(Times of Central Asia, February 22)


CHINA DEVELOPMENT BANK TO INVEST IN UZBEKTELECOM

On February 19, it was announced that China Development Bank will invest about US$20 million in Uzbektelecom for reconstruction projects and improvement of the telecommunication network.
(Uzreport, February 19)


VISA-FREE TRAVEL BEGINS BETWEEN KYRGYZSTAN AND UZBEKISTAN
On February 15, Visa- free travel for a period of up to 60 days was implemented along the Kyrgyz-Uzbek border.
(RFE/RL, February 15)


KAZAKHSTAN, CHINA PLAN ADDITIONAL BORDER RAILROAD-LINK IN 2009
On February 12, Interfax reported that Kazakhstan and China are planning to link their railways at the Korgaz - Horgos border crossing in 2009. Transportation by rail between the two countries is currently conducted via the Dostyk -
Alashankou terminal.
(Interfax, February 12)

CHINA INDECISIVE ON POWER PLANT CONSTRUCTION IN KAZAKHSTAN
On February 9, Kazakh Energy and Mineral Resources Minister Baktykozha Izmukhambetov stated that China has not yet decided on the economical feasibility of building a planned coal-fired power plant in Kazakhstan's Pavlodar region. According to him, China is viewing the possible construction of a power plant using a coalfield in Mongolia as an alternative.
(Interfax, February 10)

KYRGYZSTAN PLANS TO ATTRACT CHINESE INVESTMENT IN RAILROAD PROJECT
On February 9, the Kyrgyz government said that they would offer China access to the development of the Tereksai tin and tungsten bloc and the Taldy-Bulak Levoberezhny gold deposit if China invests in the planned China, Kyrgyzstan, Uzbekistan railroad link.
(Times of Central Asia, February 9)


PSA INT'L SIGNS ACCORD TO RUN GWADAR PORT IN PAKISTAN

On February 6, PSA International announced the signing of a 40-year concession agreement to run Pakistan's China- built port at Gwadar. PSA teamed up with Pakistan's Aqeel Karim Dhedhi Group in the port investment, for an undisclosed amount. The terminal, located in Pakistan's volatile Balochistan province, is expected to be operational by mid-
2007.
(Shipping Times, February 7)

TURKISH PREMIER TO SIGN AZERI, GEORGIAN RAILWAY PROJECT
On February 7, Turkish Prime Minister Recep Tayyip Erdogan
will leave for Georgia to attend the signing ceremony for the
Kars-Tbilisi-Baku (KTB) railway project. President Ilham
Aliyev of Azerbaijan and President Mikheil Saakashvili of
Georgia will also attend the signing ceremony. When connected
with Chinese and Kazakh railway lines in the east and
European railway lines in the west the railway project will
provide a speedy cargo and passenger transportation between
Asia and Europe.
(BBC, February 3)


KAZAKH-GERMAN MILITARY TRANSIT ACCORD SIGNED
On February 1, Kazakh Foreign Minister Marat Tazhin and
German Foreign Minister Frank-Walter Steinmeier signed an
agreement on transit of military equipment and personnel
through Kazakh territory. The agreement will facilitate
Germany's stabilization and reconstruction effort in
Afghanistan. The document was signed as part of Kazakh
President Nursultan Nazarbayev's official visit to Germany
which recently has been completed.
(Interfax-Kazakhstan, February 1


RAILWAY TO CONNECT JINZHOU PORT WITH MONGOLIA, EASTERN EUROPE
On January 31, it was reported that a new railway will be
built during 2007 connecting Cojbalsan in Mongolia and the
Port of Jinzhou, Liaoning, in Northeastern China. The railway
will create the third link between Asia and Europe, and
create an additional outlet for Mongolia's export.
(COMTEX, January 31)


EU DETERMINES AID PACKAGE TO AFGHANISTAN
On January 31, Times of Central Asia reported that EU has
announced an aid package to Afghanistan worth 600 million
euros ($775 million) over the next four years. The 600
million euros will go to healthcare, reform of Afghanistan's
justice sector, and rural development, including alternatives
to opium poppy production, and health. Meanwhile, on January
25, U.S. Secretary of State Condoleezza Rice said that
President George W. Bush will ask Congress to provide an
extra $10.6 billion to fund security and development in
Afghanistan. She said all but $2 billion of the funds are for
security.
(Times of Central Asia, January 31)


GERMAN OFFICIAL CALLS FOR RENEWED DIALOGUE BETWEEN EU AND UZBEKISTAN
On January 31, German diplomat Matthias Meyer called for
renewed dialogue between the European Union and Uzbekistan
and said it was important not to dwell on "negatives." At a
news conference on Germany's EU presidency he stated that,
"There is no use talking only about negatives. We should
concentrate on the results [and] learn to listen."
(AP, January 31)


CHINA-EUROPE ROAD PROJECT INTERESTS CHINESE FIRM
On January 24, Kazakhstan's Transport Ministry announced that
China Road and Bridge Corporation has expressed its interest
in participating in the 2nd Euro-Asia Landbridge-project
linking China and Europe via Central Asia. Officials from
China Road and Bridge Corporation said on January 23 during
talks with Kazakh government officials that they were ready
to join the East-West transport project.
(AFX, January 24)


ADB FUND FOR PAKISTAN, AFGHANISTAN TO BUY ELECTRICITY FROM CENTRAL ASIA TO BE ESTABLISHED
On January 24, Hindustan Times reported that the Asian
Development Bank (ADB) will provide a $3m technical
assistance grant to Pakistan and Afghanistan for facilitating
the export of 1,000 megawatts of electricity from Kyrgyzstan
and Tajikistan. The fund will be utilised for conducting a
feasibility study on the project.
(Hindustan Times, January 24)


GERMAN FM SKETCHES NEW EU POLICY FOR CENTRAL ASIA
On January 23, German FM Frank-Walter Steinmeier outlined
Germany's priorities towards Central Asia during its
presidency of the EU. He said the top priority will be to
counter security threats, most notably "radical Islam".
Energy interests will appear high on the agenda as well. He
also criticized past policies of the EU saying that: "It's a
kind of gap in our European consciousness. As far as our
common European past is concerned I can't see any stage where
people were strongly interested in this region."
(Uzreport, January 24)


CHINA AND TAJIKISTAN SIGN FRIENDSHIP TREATY
On January 15, China and Tajikistan signed a bilateral treaty
on friendship and cooperation.
(RIA Novosti, January 15)


AZERBAIJAN TO CONTRIBUTE $200 MLN FOR KATB RAILWAY
CONSTRUCTION

On January 12, Azerbaijani Transport Minister Ziya Mamedov
announced that Azerbaijan will allocate $200 million to build
the Kars-Akhalkalaki- Tbilisi-Baku railway linking
Azerbaijan, Georgia and Turkey. Turkey will contribute the
remaining $222 million to lay a 75-kilometer railway in its
territory. Georgian Economic Development Minister Georgy
Arveladze was quoted saying that: "We are in active talks on
the KATB railway construction and will complete them
successfully by the end of the day. It is a very strategic
project for us."
(Itar-Tass,January 12)


KYRGYZSTAN TO GET MILITARY AID FROM TURKEY
On January 10, AkiPress reported that the Kyrgyz government
has endorsed a draft protocol signed between the Kyrgyz
Defence Ministry and the Turkish General Staff to provide
logistical aid to the Kyrgyz armed forces. An order to this
effect has been signed by acting Prime Minister Feliks Kulov.
In accordance with the agreement, Turkey is planning
to give Kyrgyzstan military and technical assistance worth
1.190m Turkish lira (over $800,000).
(AkiPress, January 10)


UZBEKISTAN TO CONSTRUCT FIFTH BRIDGE OVER AMU DARYA
On January 5, it was reported that the government of
Uzbekistan has adopted a decision to construct a new bridge
over Amudarya river. The bridge will connect the southern
regions of Karakalpakstan and Khorezm. It is expected that
the new bridge will be built in 2010.
(UzReport, January 5)


ADB-FUNDED RAILWAY MODERNIZATION PROJECT COMPLETED IN UZBEKISTAN
On January 3, Uzreport reported that an ADB-funded railway
modernization project recently has been completed in
Uzbekistan. The US$70 million project was approved in October
2000 to rehabilitate 341 kilometers of railway track between
Jizzakh and Khodjadavalet, which carries the highest volume
of traffic in Uzbekistan's railway network.
(Uzreport, January 3)


CHINA TO PROVIDE TURKMENISTAN WITH SOFT CREDIT FOR RAILROAD PASSENGER CARS
A framework agreement on providing Turkmenistan with a 300
mln Yuan soft credit for the purchase of railroad passenger
cars was signed by the governments of Turkmenistan and China
in the Turkmen capital on January 2.
(Times of Central Asia, January 2)


SINO-KAZAKH DECLARATION TO BE SIGNED DURING NAZARBAYEV'S VISIT TO CHINA
On December 20, the Kazakh Head of State Nursultan Nazarbayev
will hold talks with Chinese President Hu Jintao in Beijing.
A Sino-Kazakh Joint Declaration and a "Concept of Economic
Cooperation" will be signed during the summit. Other
agreements expected to be signed include an agreement on the
State border regime, two agreements on the Atasu-Alashankou
oil pipeline, protection of trans-boundary water resources,
and the opening of a railway line in the area of the Horgos
border-crossing station.
(ITAR-TASS, December 19)


WORK STARTS ON KABUL AIRPORT-TERMINAL
On December 17, Afghan officials announced that construction
work on a terminal at the Kabul Airport had been initiated.
The Government Developing Budget has granted over $2 million
to fund the project. A new terminal, installation of
surveillance machines and establishment of a cafeteria for
passengers are among the projects planned to raise Kabul
International Airport to international standards.
(Pajhwok Afghan News, December 17)


RUSSIA GRANTED TU-154 PASSENGER PLANE TO KYRGYZSTAN

On December 15, Russia granted a TU-154 passenger plane to
Kyrgyzstan during the Head of Atomic Federal Agency of the
Russian Federation Sergei Kirienko's meeting with Kyrgyz
Prime Minister Felix Kulov at the Ala-Archa residence. The
Prime Minister said the plane was delivered to Kyrgyzstan to
compensate the loss of TU-154M, which is under repair after a
collision with a US tanker plane at the Manas airport.
(KABAR, December 15)


NEW CROSSING POINT ON UZBEK-KYRGYZ BORDER TO BE CREATED WITH EU FUNDS
On December 14, the European Union (EU) Ambassador to
Kyrgyzstan, Kazakhstan and Tajikistan, Adrian van der Meer,
announced that the European Commission (EC) will finance and
build a border-crossing point near Osh on the Kyrgyz-Uzbek
border. The border-crossing will have both automobile and
railway crossing departments, and will cost the EU 500,000
euro. The construction of the border-crossing is part of the
EU Border Management Programme in Central Asia (BOMCA).
(Kabar, December 14)


CHINA, U.S. TO HOLD FIRST STRATEGIC ECONOMIC DIALOGUE
On December 14-15, China and the United States will hold
their first strategic economic dialogue in Beijing. Chinese
Vice Premier Wu Yi and US Secretary of Treasury Henry
Paulson, both special envoys of the two heads of states, will
co-chair the dialogue.
(Xinhua, November 30)


NAZARBAEV SIGNS A LAW ON UZBEK-KAZAKH TRANSPORT FACILITATION
On December 11, Kazakh president Nursultan Nazarbayev signed
a law "On Ratification of Agreement between the Government
of Kazakhstan and the Government of Uzbekistan on
International Transportation of Passengers and Freights by
Road." The agreement regulates the passenger and cargo
traffic in the international road communication between
Kazakhstan and Uzbekistan.
(Kazakhstan Today, December 11)


WATER PROJECT LAUNCHED IN HERAT

On December 9, the Italian-led Provincial Reconstruction Team
(PRT) in Afghanistan launched a water project worth $53,000
in the southern Herat province. The project will be completed
in a month and will provide potable water to the locals.
(Pajhwok Afghan News, December 9)


KYRGYZSTAN TO RECEIVE MILITARY AID FROM TURKEY

On December 8, Kyrgyz News Agency Kabar reported that
Kyrgyzstan will receive automotive engineering,
mountaineering equipment, and sports apparatus from Turkey
worth more than $230 ooo for military use.
(KABAR, December 8)


TALIBAN ATTACKS RAISE COST OF ZARANJ-DELARAM ROAD PROJECT
On December 7, the Times of India reported that the worsening
security situation in Afghanistan, has increased costs for
India's Zaranj- Delaram road construction project. The
execution of this 218-km road project in south-western
Afghanistan will now cost Rs 682o million (approx $152
million), instead of the Rs 3774.7 million ($84 million]
sanctioned for it by the Cabinet committee on security. The
Taliban attacks on the personnel as well as equipment has
already pushed the project completion date from December 2007
to December 2008.
(Times of India, December 7)

EU PLEDGES 80 MILLION EUROS TO TAJIKISTAN
On December 6, it was announced that the European Union
has pledged some 80 million euros to Tajikistan to fight
poverty and further economic development over the next four
years. This was stated by the head of the Southern Caucasus and Central Asia unit of the European Commission, Victor
Andres Maldonado, at the sixth session of a Tajik-EU joint
committee.
(IRNA, December 8)

CITIGROUP INCORPORATE LOCAL CHINESE BANKING OPERATIONS
On November 29, Citigroup Inc. announced plans to
incorporate local Chinese banking operations into its system.
The move follows new Chinese regulations that require
foreign banks to incorporate local banks in order to conduct
retail banking in the yuan.
(Stratfor, November 29)


UZBEKISTAN OPENS "MODERN" CUSTOMS POST IN EAST

On November 24, the Uzbek National News Agency reported that
the opening ceremony of the Qorasuv customs and border
checkpoint had been held. It was opened in the town of
Qorasuv of [the eastern] Andijon Region's Qorgontepa
District. This section of the Uzbek-Kyrgyz border runs along
the River Shahrixonsoy.
(Uzbek National News Agency, November 24)


CSTO READY TO COOPERATE WITH SCO

On November 24, Uzreport reported that the Collective
Security Treaty Organisation (CSTO) member states had
completed internal voting procedures on the ratification of a
draft Memorandum on mutual understanding between the
secretariats of CSTO and SCO. The draft Memorandum was
prepared and approved at the SCO Council of Foreign
Ministers (CFAM) summit in May this year. The parties plan to
provide consultancy and exchange of information on issues of
joint concern.
(Uzreport, November 24)


TAJIKISTAN GETS NEARLY 28M DOLLARS TO FIGHT AIDS, TB
On November 21, the Tajik Avesta website reported that the
Global Fund to fight AIDS, Tuberculosis and Malaria has
backed Tajikistan's application for the allocation of five-
year grants for combating HIV/AIDS and TB in the country.
The sum of the grant for combating TB is $15.8 million while
the grant devoted to HIV/AIDS totalled $12 million.
(Avesta, November 21)


KAZAKHSTAN TO BUY 152 CARRIAGES FROM CHINESE COMPANY
On November 21, it was revealed that the Chinese Tian Shan
plant has won the tender to deliver 152 railway carriages
to the Kazakhstan Temir Zholy (Kazakhstan Railways) joint-
stock company. The deal is worth around $60 million.
(Interfax-Kazakhstan, November 21)


-RUSSIA, CHINA, GERMANY INK RAILWAYS COOPERATION MEMORANDUM
On November 21, Itar-Tass reported that a memorandum of
understanding had been signed between the Chinese Ministry of
Railways, German Railways and (Russian) RZD on increased
cooperation in Eurasian railway transportation. They agreed
to set up a tripartite committee to increase railway freight
volumes between China, Russia and Europe. The three parties
plan to sign a cooperation agreement in April-May 2007, and
in the course of the meeting they also discussed the
importancy with guaranteeing cargo security on the route (see
also last week's newsletter on this).
(Itar-tass, November 21)


INDIA-AFGHAN HIGHWAY LINK DISRUPTED DUE TO MILITANCY
On November 15, Indian Express reported that the Indian
project of connecting Afghanistan with the Iranian deep-sea
port of Chah Bahar has been disrupted due to the security
situation in Afghanistan. The 218 km stretch from Delaram in
Afghanistan to Zaranj town on the Iranian border, part of the
link, was scheduled to be completed by December 2007.
However, the beheading of a driver by the Taliban in November
last year has slowed down the implementation of project.
(Indian Express, November 15)


UZBEKISTAN DEVELOPMENT FUND AND CHINA DEVELOPMENT BANK SIGN AGREEMENT
On November 14, the Fund for Reconstruction and Development
of Uzbekistan and the China Development Bank signed a
cooperation agreement. The agreement envisages the bank's co-
financing of investment projects in Uzbekistan's basic
industries , and exchange of market-information, companies,
and banks of both countries.
(Uzreport, November 15)


EU TO SIGN 'NEIGHBORHOOD' ACCORDS WITH 3 SOUTH CAUCASUS
NATIONS

On November 14, the EU signed accords with Georgia,
Azerbaijan and Armenia offering the three nations extensive
economic help and easy access to EU markets in return for a
pledge to commit to across-the-board reforms in the years
ahead.
(AP, November 14)


EU SANCTIONS AGAINST UZBEKISTAN EXTENDED

On November 13, European Union Foreign Ministers agreed to
start human rights discussions with Uzbekistan and decided on
a three-monthly review of sanctions imposed on the country.
The Ministers decided however to continue and extend the
current ban on weapons exports to Uzbekistan for another
year, and keep visa restrictions on top officials for another
six months.
(Dpa, November 13)


ADB TO LEND $60 MILLION FOR UZBEK RECLAMATION PROJECT
On November 11, it was announced that the Asian Development
Bank (ADB) will provide a loan worth over $60 million to
Uzbekistan for a project on reconstruction of drainage and
irrigation systems.
(regnum, November 11)


CHINA AND RUSSIA INK COOPERATION AGREEMENTS TO FACILITATE BILATERAL INVESTMENT
On November 9, China and Russia inked eight cooperation
agreements in Beijing on boosting bilateral investment, trade
and technical cooperation. The agreements were signed at the
beginning of the Sino-Russian Investment Promotion Week.
(Xinhua, November 9)


SEVENTH EU-UZBEKISTAN COUNCIL HELD

On November 8, the seventh EU-Uzbekistan Council was held. It
was the first major meeting between the EU and Uzbekistan
since the EU imposed sanctions against the country in
November 2005. The EU sanctions on Uzbekistan are due to
expire November 14. The EU's foreign ministers will meet in
Brussels next week to decide whether to ease sanctions or
extend them for another year.
(Voice of America, November 8)


CONSTRUCTION OF KHAF-HERAT RAILWAY TO START IN 2 WEEKS

On November 8, ISNA reported that the construction of a
railway that is to connect Khaf and Sangan in Khorasan Razavi
Province, northeastern Iran, to the Afghan city of Herat is
to begin in the next two weeks. The project will be funded by
the Afghanistan Reconstruction Trust Fund.
(ISNA, November 8)


RUSSIA DONATES FOUR HELICOPTERS TO TAJIKISTAN

On November 3, four Russian combat helicopters (two Mi-8 and
two Mi-24) were handed over to Tajikistan at the military
airfield Aini. The helicopters were delivered in the
framework of a program on military technological cooperation
between the countries.
(RIA Novosti, November 3)


CHINA-GERMANY CONTAINER TRAIN BEGINS FORMAL OPERATION

On November 2, it was announced that the first
transcontinental container train running between north China
to Germany has begun formal operation after a 20-month test
run. The train, which can carry 100 international standard
containers, will travel 9,814 km over 15 days through six
countries from Hohhot, capital of north China's Inner
Mongolia Autonomous Region, to Frankfurt in Germany.
(Xinhua, November 2)


XINJIANG'S COTTON OUTPUT RAISED WITH 11 PERCENT

On November 2, Asia Pulse reported that Xinjiang will raise
its cotton output 11 per cent year-on-year to reach a record
of 2.18 million tons in 2006.
(Asia Pulse, November 2)


EU GIVES 9 MILLION EURO GRANT TO HELP KYRGYZ ECONOMIC
REFORMS
On November 1, Kabar reported that the European Commission
(EC) has given a 9 million euro grant to Kyrgyzstan under the
[EC] Food Security Programme for 2006 (FSP-2006). The grant
money will be spent on rationalizing the country's social
security system.
(Kabar via World News Connection, October 31)


< back to top>



Energy and Natural Resources

SCO DISCUSSING PROSPECTS FOR ‘ENERGY CLUB’ IN TASHKENT
On February 27, an energy roundtable of the Shanghai
Cooperation Organization (SCO) was held in Tashkent.
Representatives of Russia, China, Kazakhstan, Tajikistan,
Kyrgyzstan and Uzbekistan, heads of leading energy companies
and members of the SCO Secretariat are "discussing the
participation of SCO experts in the development of a model
and a concept for the SCO Energy Club."
(Interfax, February 27)

TNK-BP TO START EXPLORING NEAR CASPIAN IN 2007
Russian-British oil company TNK-- BP is to start exploration work at three sections in the Astrakhan gas condensate field in 2007 - the Svetlosharinsky, Vatazhniy North and Karalatsky sections, which border on the Caspian Sea. At the moment Gazprom, Lukoil, Rosneft, RussNeft and Tatneft are working in Astrakhan region. (Russia & CIS Business and Financial Daily, February 22)


KAZAKHSTAN THREATENS TO SUSPEND CHEVRON'S PRODUCTION AT TENGIZ
On February 21, Kazakhstan threatened to suspend Chevron Corp.'s license for operations at the giant Tengiz field by the Caspian and gave the U.S. energy giant a month to come up with a plan to remove hazardous waste.
(AP, February 21)

KAZAKH PARLIAMENT BACKS PLAN TO TIGHTEN CONTROL OF FOREIGN OIL COMPANIES
On February 9, Kazakhstan's Parliament backed a government plan to tighten control over foreign oil companies, increase state and domestic companies' assets in the energy sector, and limit foreign borrowing by Kazakh banks, according to AP writer Bukharbayeva.
(AP, February 9)


TURKEY'S BTC-PIPELINE REVENUES DISCLOSED
On February 7, Turkish officials announced that Turkey has earned nearly $220 million in oil shipments from the Mediterranean port of Ceyhan, the end terminal of the Baku-
Tbilisi-Ceyhan (BTC) oil pipeline, since it went operational in June 2006. (Anatolia News Agency, February 7)

CNPC CONSORTIUM SECURES UZBEK OFFSHORE OILFIELD PROJECT
On February 1, Russia's Lukoil announced that the company had
signed a final production sharing agreement on January 30
with a consortium comprising local oil company Uzbekneftegaz,
China's CNPC, Malaysia's Petronas, and Korea's KNOC for co-
exploration of an Uzbek offshore oilfield. The five companies
will hold a 20 percent stake each in the project worth a
total of US$2 billion.
(Xinhua, February 1)


BP GROUP STOPS PRODUCTION OF SHAH DENIZ FIELD AGAIN

On January 23, BP stated that it has once again halted
production of natural gas at the Shah Deniz field off the
coast of Azerbaijan. The operators had already stopped output
at the field a week after starting commercial production in
December, and only brought it back onstream a month later on
Jan. 14. No reason was given for the interruption.
(AFX, January 23)

OIL PRODUCT TRANSPORT VIA AZERBAIJAN UP 70.6% IN 2006
On January 22, Prime-Tass reported that the transportation of
oil and oil products through Azerbaijan's pipelines rose
70.6% on the year to 20 million tonnes in 2006 according to
figures by Azerbaijan's State Statistics Committee. Natural
gas transportation through Azerbaijan's pipelines increased
9.5% on the year to 10.4 billion cubic meters last year.
(Prime-Tass, January 22)


TURKMENISTAN REAFFIRMS CHINA PIPELINE

On January 18, Turkmenistan's acting president, Gurbanguli
Berdymukhamedov, pledged that Turkmenistan would stick to its
gas pipeline deal with China as agreed during former Turkmen
President Niyazov's rule. At a meeting with voters in the
eastern city of Turkmenabat, Berdymukhamedov stated that the
pipeline contract would be completed as planned by 2009.
(AFX, January 18)


CHINA WILL BUILD THE ZERAVSHAN (YAVA) HYDROELECTRIC POWER-PLANT IN NORTHERN TAJIKISTAN
On January 17, an accord on Chinese construction of the
Zeravshan (Yava) Hydroelectric Power Plant in northern
Tajikistan was signed in Beijing. China offered Tajikistan a
loan exceeding $200 million (for 25 years, 1% interest) for
the construction. Manufacturing capacity of the future
hydroelectric power plant is expected at the level of 150
megawatt, annual output at about 600 million kwh.
(Asia-Plus, January 19)


GAS FROM AZERBAIJAN'S SHAH-DENIZ FIELD TO GEORGIA COMES ON-STREAM
On January 17, Georgian Prime Minister Zurab Nogaideli said
that Georgia has begun receiving gas from the Shah-Deniz
field offshore Azerbaijan. The start-up of Shah-Deniz has
been delayed due to a gas leak. While the Baku-Tbilisi-
Erzurum pipeline is not yet in operation, Georgia has
received Azeri gas through another pipeline.
(European Spot Gas Markets, January 17)


CHINA'S CNPC UNIT TO SELL $200 MLN OF DRILLING RIGS TO
UZBEKNEFTEGAZ

On January 16, it was announced that China National Petroleum
Corp's (CNPC) unit China Petroleum Technology Development
Corp has signed a $200 mln contract to supply drilling rigs
and other oil exploration equipment to Uzbekistan's state-run
oil company, Uzbekneftegaz. Under the deal, China Petroleum
Technology will sell 23 drilling rigs and other equipment to
Uzbekneftegaz, reportedly to be used in developing fields in
the Uzbek part of the Aral Sea.
(AFX, January 16)


ONGC CONFIRMS BID FOR CASPIAN SEA BLOCKS
On January 12, Indian Oil and Natural Gas Corp (ONGC) said it
was invited by Maersk Oil to participate in the bidding for
buying a 30 percent stake in two Caspian Sea blocks. The
blocks (blocks 11-12) are located in offshore Turkmenistan at
the north- eastern margin of the South Caspian Basin and 35
Km north east of the giant Azeri-Chirag-Gunashli field,
operated by BP.
(Press Trust of India, January 12)


CNOOC'S DEAL WITH IRAN TO BE FINALIZED DESPITE U.S. PRESSURES
On January 11, it was announced that Chinese and Iranian
representatives will meet in February to finalize a $16
billion natural gas agreement, despite U.S. threats of
imposing sanctions on China's state-owned China National
Offshore Oil Corp (CNOOC). The deal specifies a total
investment of $16 billion from CNOOC in Iran's Pars naturas
gas field, in exchange for 50 percent of the field's
liquefied natural gas production.
(Stratfor, January 11)


AZERI OIL-EXPORTS THROUGH BAKU-NOVOROSSIYSK PIPELINE TO COME ON-STREAM IN APRIL
On January 8, it was revealed that the State Oil Company of
the Azerbaijani Republic (SOCAR) will not deliver oil through
the Baku-Novorossiysk pipeline during the first quarter of
2007, due to increased demand in the domestic Azeri market.
The SOCAR spokesman said however that increased extraction of
natural gas should result in an ability to meet the higher
demand by April and that oil-delivery through the Baku-
Novorossiysk pipeline could be reumed by then.
(Interfax, January 8)


CITIC COMPLETES KAZAKH OIL ASSETS DEAL
On January 2, China's state investment arm, CITIC Group,
finalized a deal to acquire $1.9 billion in Kazakh oil assets
from Canadian-based Nations Energy. The deal specifies
Chinese rights to the Karazhanbas field which is believed to
have reserves of approximately 340 million barrels of oil.
(Stratfor, January 2)

TURKEY TO SHARE CASPIAN GAS QUOTA WITH GEORGIA, AZERBAIJAN
On December 7, Turkey agreed to transfer part of its quota
for natural gas produced in Azerbaijan's section of the
Caspian to Georgia and Azerbaijan. The energy ministers of
Georgia, Azerbaijan and Turkey met in Tbilisi to discuss a
possible increase in gas supplies to Georgia through the
South Caucasus Pipeline, passing from the Shah-Deniz gas and
condensate field to Turkey via Georgia.
(RIA Novosti, December 8)


EU, KAZAKHSTAN SIGN MOU ON ENERGY COOPERATION

On December 4, EU and Kazakhstan signed a Memorandum of
Understanding on energy cooperation. The MOU was inked by
Energy and Mineral Resources Minister of Kazakhstan
Baktykozha Izmukhambetov and Benita Ferrero-Waldner, European
Commissioner for External Relations and European
Neighbourhood Policy.
(Kazinform, December 4)


BAKU REDUCES OIL SHIPMENTS TO RUSSIA
On December 1, Azerbaijani President Ilham Aliyev stated that
Baku will reduce its oil shipments to Russia along the Baku-
Novorossiisk route. He also said that Azerbaijan considers
suspending them entirely, in response to the Kremlin's
announcement that it will reduce its natural gas exports to
Azerbaijan. Currently, Azerbaijan exports 50,000 barrels of
oil a day through the Russian Black Sea port of Novorossiisk.
(Stratfor, December 1)


RISING KASHAGAN OIL COSTS AUDITED

On November 30, Reuters reported that Kazakhstan plans to
call in external auditors to assess rapidly rising
development costs at the Eni-led (ENI.MI: Quote, Profile ,
Research) Kashagan oilfield. The oilfield is located in the
north of the Caspian and is the world's biggest oil discovery
in 30 years. Kazakhstan's Energy and Mineral Resources
Minister Baktykozha Izmukhambetov also confirmed the Eni-led
consortium, AGIP KCO, would face a fine for delaying
production to 2009 from 2008, as announced in October.
(Reuters, November 30)


KAZAKHSTAN SEEKS HIGHER GAS TRANSIT PRICE FOR RUSSIA

On November 30, Kazakh energy minister Izmukhambetov also
stated that Kazakhstan is in talks with Russian energy giant
Gazprom [RTS: GAZP] on raising its transit charge for Central
Asian gas pumped via its territory to Russia by 45 percent.
Kazakhstan currently charges $1.1 per 1,000 cubic meters per
100 kilometers for natural gas flowing through its pipelines
to Russia from gas-rich Uzbekistan and Turkmenistan, a price
that it wants to raise by 50 cents.
(KazInform, November 30)


UZBEKISTAN ALLEGEDLY BLOCKING ELECTRICITY TO TAJIKISTAN

On November 30, RFE/RL reported that a Kyrgyz Foreign
Ministry official had accused Uzbekistan of blocking
electricity exports to Tajikistan. Jyldyz Sarybaeva, the
deputy head of the ministry's international economic
relations department said that Kyrgyzstan is due to export
electricity to Tajikistan under an agreement reached earlier
this year. However, so far Tashkent has denied Kyrgyzstan
permission to deliver the electricity through its territory.
(RFE/RL, November 30)


CNPC TO DEVELOP TURKMEN GAS FIELD
On November 22, the Turkmen government announced the
invitation of China National Petroleum Corp. to participate
in the exploration of the southeastern Iolotan field.
Niyazov claimed the field contained an estimated 7 trillion
cubic meters of natural gas. Within the next three years,
CNPC would reportedly drill 12 wells up to 5,000 meters
(16,400 feet) deep for gas worth a total of US$152 million.
(AFX, November 22)


TNK-BP HOPES TO START EXPORTING OIL TO CHINA ALONG ATASU-ALASHANKOU
On November 21, TNK-BP's vice president for trading stated
that TNK-BP has signed a contract to supply Russian oil to
China along the Atasu-Alashankou oil pipeline. There has not
been any Russian oil in the oil pipeline yet, but TNK-BP
plans to send 400,000 tonnes of oil in the beginning of 2007.
Russian oil enters the Atasu-Alashankou oil pipeline through
the Omsk-Pavlodar oil pipeline.
(Interfax, November 21)


RUSSIA'S ROSNEFT OFFERS TO BOOST OIL SALES TO CHINA, BUT NO WORD ON PIPELINE
On November 11, the president of OAO Rosneft, Sergey
Bogdanchikov, said it is ready to boost supplies to China by
up to 65 percent next year, but there was no word of progress
on the planned pipeline to deliver Siberian crude.
Bogdanchikov did not mention the pipeline and neither
government gave any sign that Russian PM Fradkov and Chinese
officials made any progress on the issue during meetings this
week.
(AP, November 11)


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Politics

EU MINISTERS TO SEEK WAYS TO PROMOTE RELATIONS WITH
UZBEKISTAN

On March 5, the foreign ministers of the EU will discuss the
possibility of promoting EU relations with Uzbekistan at a
meeting of the EU Council. In their final document on
Uzbekistan the ministers are expected to offer an "active and
thorough dialogue" on the human rights problem within the
framework, fixed by the already existing Agreement on
Partnership and Cooperation.
(Itar-Tass, March 5)

UZBEK AUTHORITIES ACCUSE U.S. AID GROUP OF HELPING ISLAMISTS IN ANDIJAN
On February 26, Uzbekistan's Justice Ministry accused a U.S.-based aid group of providing medical assistance to alleged organizers of the 2005 unrest in Andijan. The ministry claimed that Islamic militants whose trial triggered the Andijan violence were among the recipients of aid from "Project HOPE."
(AP, February 26)


SECURITY, JUSTICE OFFICIALS APPOINTED IN TURKMENISTAN

On February 24, Turkmenistan's President Gurbanguly Berdymukhammedov appointed Agageldy Mammetgeldiyev to Defense Minister, Geldymukhammet Ashirmukhammedov National Security Minister, and Bairam Alovov as Chief of the Border Service.
(Interfax, February 24)


UZBEK OPPOSITION POLITICIAN JAILED FOR SIX YEARS

On February 19, Isroil Kholdorov, the 57-year-old leader of the banned Uzbek opposition party Erk (Freedom), received a six-year prison sentence for alleged involvement in the Andijan uprising. Kholdorov has been heading Erk’s branch in the Andijan region since 2003.
(Times of Central Asia, February 21)

AFGHAN UPPER HOUSE APPROVES AMNESTY FOR WAR CRIMINALS
On February 20, the upper house of Afghanistan's parliament approved a bill that rules out legal proceedings for war crimes committed by Afghans during the last 25 years of war. The upper house approved the bill by a reported vote of 41 to 16 which follows the lower house's approval last month. However, the bill still needs to be approved by Afghan President Hamid Karzai who has indicated that he will reject it. But according to Afghanistan's Constitution, the lower house of parliament can override a presidential veto if a bill is supported by two-thirds of the legislators.
(RFE/RL, February 20)


CHINA TO SET UP 3 CONFUCIUS INSTITUTES IN CENTRAL ASIA AND RUSSIA
On February 16, it was reported that China will set up three Confucius Institutes in Central Asia and Russia this year. Preparations for three institutes in Russia, Kazakhstan and Kyrgyzstan are already underway according to Wang Lili, director of the Foreign Affairs office of the Education Department in Xinjiang Uygur Autonomous Region.
(Business Daily Update, February 16)


AKAEV PREDICTS NEW POLITICAL UPHEAVALS

On February 14, Former Kyrgyz President Askar Akaev told a news conference that a political crisis in Kyrgyzstan is imminent now that former Prime Minister Feliks Kulov has joined the opposition.
(RFE/RL, February 14)

TURKMENISTAN VOTES FOR NEW PRESIDENT
On February 11, acting Turkmen president Gurbanguli Berdymukhamedov was elected new president of Turkmenistan following former president Niyazov's death. Officials claimed turnout was 98.65 percent after polls closed at 6 p.m.
(Turkish Daily News, February 11)


NAZARBAEV DISMISSES DEPUTY FOREIGN MINISTER

On February 9, Kazakh President Nursultan Nazarbayev appointed his son-in-law Rakhat Aliyev as the Kazakh ambassador to Austria, thereby removing him from his post as deputy foreign minister. The reappointment comes four days after the wives of two former senior managers of Aliyev-owned Nurbank accused Aliyev of being involved in the disappearance of their husbands.
(Stratfor, February 9)


BAKIYEV APPOINTS NEW FM

On February 8, Kyrgyz President Kurmanbek Bakiyev appointed Ednan Karabayev as foreign minister, Igor Chudinov as minister of industry, energy and fuel resources, and Sabyrbek Moldokulov as economic development and trade minister.
(Stratfor, February 8)


TAJIK SPEAKER URGES CLOSER PARLIAMENTARY TIES WITH TURKEY
On February 7, the Speaker of the Assembly of Representatives [lower chamber] of the Tajik Supreme Assembly, Saydullo Khayrulloyev, met the Turkish ambassador to Tajikistan, Akif Ayhan. The Tajik Speaker urged closer parliamentary ties with Turkey and positively noted the setting up of the Tajik-Turkish interparliamentary working group. Although he also stated that "the present work of the working group does not satisfy us."
(Khovar website via BBC, February 7)


EU TO EXPAND PRESENCE IN CENTRAL ASIA
In early february, EU Observer reported that the EU will expand its missions in Central Asia and increase the number of people appointed to the region. The idea was put to member states in a 15-page document on February 2 by EU officials and the German EU presidency.
(Times of Central Asia, February 9)

OSCE WILL NOT MONITOR TURKMEN ELECTIONS
On February 1, the Organization for Security and Cooperation
in Europe (OSCE) said that it will not send observers to the
presidential election in Turkmenistan slated for February 11
due to time constraints. Turkmenistan's foreign minister said
recently that international observers would be allowed to
monitor the election process.
(Stratfor, February 1)


AFGHAN PARLIAMENT GRANTS IMMUNITY TO WARLORDS
On February 1, Afghan lawmakers said the Afghan parliament
has granted immunity to all Afghans involved in the country's
quarter century of conflict. The immunity, which was granted
and passed on January 31 in the lower house, also covers
Taliban leader Mullah Mohammad Omar as well as former Prime
Minister Gulbuddin Hekmatyar.
(Stratfor February 1)


KYRGYZ PM NOMINEE TO FACE PARLIAMENT VOTE
On January 29, Kyrgyzstan's parliament was to hold a
confirmation vote on President Kurmanbek Bakiyev's latest
nominee for the post of prime minister, following three
months of political paralysis. On January 26, Bakiyev
nominated Agriculture Minister Azim Isabekov after parliament
had twice rejected his first choice, Felix Kulov, who served
as prime minister until December and had hoped to be
reappointed.
(AFP, January 29)


WORLD BANK APPOINTS NEW COUNTRY MANAGER IN UZBEKISTAN
On January 22, the World Bank Country Office announced the
appointment of Loup Brefort as the new Country Manager for
Uzbekistan. His most recent assignment was as the Country
Manager for Kazakhstan.
(Uzreport, January 22)


TURKMENISTAN TO LET WESTERN OBSERVERS ATTEND VOTE
On January 22, Turkmen state media revealed that Turkmenistan
will allow Western observers to monitor next months's
presidential elections. The Turkmen government had reportedly
reached an agreement with several international delegations
on sending monitors to attend the February 11 polls. The
Organisation for Security and Cooperation in Europe (OSCE)
has declined to provide details of the observation mission,
according to AFP.
(AFP, January 22)


FORMER KAZAKH AMBASSADOR TO THE U.S. APPOINTED SECURITY COUNCIL SECRETARY
On January 11, Interfax-Kazakhstan reported that Kanat
Saudabayev, the former Kazakh ambassador to the U.S., has
been appointed secretary of the Kazakh Security Council. The
former secretary of the Security Council, Marat Tazhin, was
appointed foreign minister.
(Interfax-Kazakhstan, January 11)


KASIMOV NEW KAZAKH PM
On January 10, the Kazakh parliament approved Karim Masimov
as prime minister during a joint session. Kazakh President
Nursultan Nazarbayev selected Masimov following Prime
Minister Danial Akhmetov's resignation on January 8.
(Stratfor, January 10)


KAZAKH PM AKHMETOV RESIGNS
President of Kazakhstan Nursultan Nazarbayev has accepted
resignation tendered by the country's Prime Minister Daniel
Akhmetov on January 8. Under the Kazakh legislation, the
country's Cabinet of Ministers should resign if the
government head resigns. The country's new prime minister
will be appointed by the Kazakh president on January 10 with
the consent of both houses of parliament.
(Itar-Tass, January 8)


TURKMENISTAN'S ACTING PRESIDENT PROMISES REFORMS
Turkmenistan's acting president, Gurbanguli Berdymukhamedov,
has said he will lift restrictions on internet use in
Turkmenistan if he is elected president in elections next
month. Saparmurat Niyazov, the former president, died
unexpectedly in December. In a campaign speech on January 3
he also promised to liberalise the economy, reform pensions
"to help those in need" and tackle problems in the education
system.
(AP, January 4)

YEAR OF KAZAKHSTAN TO BE HELD IN UKRAINE IN 2007
Kazakh President Nursultan Nazarbayev has signed a decree on
holding Year of Kazakhstan in Ukraine in 2007, Interfax
Kazakhstan reported on January 2.
(Interfax, January 2)


NEW SECRETARY OF THE SECURITY COUNCIL IN KYRGYZSTAN
On December 18, President Bakiyev appointed Osmonali Guronov
as new Secretary of the Security Council of Kyrgyzstan. The
presidential decree on his appointment will be signed on
December 19.
(Kabar, December 18)


UZBEK REGIONAL LEADER IN SAMARKAND RELIEVED OF HIS DUTIES
On December 13, Ferghana.ru reported that the Hokim
(governor) of Samarkand Mamarizo Nurmuratov has handed in his
resignation to President Islam Karimov. Nurmuratov has been
the regional hokim for just under two years. The new hokim is
to be appointed at the next meeting of the Samarkand regional
Kengash (council) of People's Deputies scheduled for December
28. Nurmuratov has served as senior assistant chairman of the
Central Bank between 1993 and 2000, and became Minister of
Finance in 2000 and Samarkand hokim in July 2004. Nurmuratov
was elected into the senate of the Oly Majlis in 2005.
(Ferghana.ru, December 13)


EU-AZERBAIJAN PARLIAMENTARY COOPERATION MEETING HELD
On December 13-14, the 7th meeting of the European Union-
Azerbaijan Parliament Cooperation Committee was held in
Strasbourg. The Azeri parliamentary delegation comprised
MPs Rovshen Rzayev, Azer Amiraslanov, Guler Ahmadova, Zhala
Aliyeva, Chingiz Asadullayev, Rauf Aliyev, Ulvi Guliyev and
Fuad Muradov.
(Azertaj, December 12)

KYRGYZ CONSTITUION PUBLISHED IN RUSSIAN AND KYRGYZ LANGUAGES
On December 6, the text of the new version of the
Constitution of the Kyrgyz Republic was published in both the
Kyrgyz and Russian languages in Erkin-Too newspaper.
The new Constitution was adopted on November 8 and signed by
the President Kurmanbek Bakiyev on November 9.
(KABAR, December 6)


UZBEK SENATORS VISIT FRANCE TO BOOST PARLIAMENTARY TIES
On November 27, UzReport reported that a delegation of the
Uzbek Oliy Majlis' (parliament's) Senate had visited Paris,
France, at the invitation of the French Senate's
administration. The delegation became acquainted with the
activities of the French parliament.
(UzReport, November 27)


WAGE HIKE AS ANTI-CORRUPTION MOVE IN AFGHANISTAN
On November 17, IPS reported that Hamid Karzai's government
has decided to raise the salaries of government employees in
an attempt to rein in widespread corruption in Afghanistan.
Salaries at the lowest end of the civil service ladder will
now be US$80 per month while top bureaucrats could
earn a monthly salary of US$800.
(IPS, November 17)


TAJIK GOVERNMENT RESIGNS BEFORE RE-ELECTED PRESIDENT
On November 22, the Tajik government handed in its
resignation to the re-elected head of state Rakhmonov. A
decision to this effect was adopted at a government session
the same day. All the Cabinet members will continue to carry
out their duties until new members of the government are
appointed.
(BBC. Avesta, November 22)


UZBEK OPPOSITION PARTY FILES ANOTHER APPEAL FOR
REGISTRATION
On November 16, the Uzbek Harakat opposition news agency
website reported that a letter written on behalf of the
Birlik opposition-party had been sent to the Uzbek Justice
Ministry by the party's secretary-general Vasila Inoyat. The
letter contained a request on completing the registration
process of the party which stopped after the Andijon events
last year.
(Harakat via BBC, November 18)


KYRGYZ PRESIDENT APPOINTS NEW CHUI REGION GOVERNOR
On November 13, Kyrgyz President Kurmanbek Bakiyev appointed
Kubanychbek Syidanov the new governor of the Chui region. His
predecessor, Turgunbek Kalmurzayev, was dismissed on November
7 after he had publicly joined the opposition during recent
mass protests in Bishkek.
(Itar-Tass, November 13)


KYRGYZ LEADER TO SIGN NEW CONSTITUTION
On November 9, Kyrgyz President Kurmanbek Bakiyev will sign a
new constitution in the Kaminnyy Zal at the White House in
Bishkek. This was announced by the Kyrgyz presidential press
service. The new constitution is a compromise between the
incumbent government and opposition forces and will reduce
the President's powers. The deal was struck after one week of
protests in Kyrgyzstan.
(World News Connection, November 9)


KYRGYZSTAN’S TRADE REPRESENTATIVE TO AFGHANISTAN APPOINTED
On November 9, Kyrgyz PM Felix Kulov signed a governmental
decree appointing Almaz Usuvaliev as trade representative of
Kyrgyzstan to Afghanistan.
(Kabar, November 9)


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