07.10.2019-13.10.2019 • No: 228

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TRANSPORT AND LOGISTICS POTENTIAL OF TURKISTAN REGION Transport and logistics infrastructure re- Tashkent-Turkistan-Taraz-Almaty-Khorgos near the Atameken customs post in the Mak- mains a priority on the agenda of Kazakh- highway. This shows that the Turkistan re- taaral district. It is planned to build markets, stan’s economic development. Currently, gion acts as a transit corridor between coun- warehouses, hotels and parking spaces at the there are several projects and programs for tries like Russia and China. It should also be center. Obviously, these investments will the development of transport infrastructure noted that the transit trade between Uzbeki- strengthen the trade relations between Ka- in Kazakhstan, which are being imple- stan and Russia has a positive impact on the zakhstan and Uzbekistan. In addition, Ka- mented in the border regions of the country. export capacity of the Turkistan region. zakhstan has created some new structures to According to the speech by President of Ka- The Western Europe-Western China inter- enable Kazakh export companies to trade zakhstan Kassym-Zhomart Tokayev during national transit corridor, which passes more easily with Uzbekistan. For instance, the meeting of the Valdai International Dis- through the Turkistan region, connects it within the scope of the National Export cussion Club held on October 3, 2019, in So- with the Kyzylorda, Zhambyl, Aktobe and Strategy program, the KazakhExport JSC chi, the country plans to invest an additional Almaty regions. Along with the Turkistan opened its representative office in Uzbeki- $20 billion in transport and logistics projects region, this enhances the potential of stan in 2019. by 2025. The amount of investment men- Shymkent as a transport hub. On the other The growing interest of tourists in the medi- tioned in the statement demonstrates that hand, the region’s industrial production is eval architectural and sacred monuments of transport and logistics infrastructure is directly linked to international transit Turkistan shows that one of the potential di- among the top priorities of Kazakhstan’s transport. For example, the Kentau Trans- rections of the region’s economy is tourism. economy. Moreover, it will strengthen Ka- former Plant’s products are exported to Rus- Hence, the expansion of transport networks zakhstan’s position as a strategic transit cor- sia, Tajikistan and Kyrgyzstan. The mining is a prerequisite for the development of cul- ridor in trade and economic relations with sites located along the Western Europe- the Eurasian countries. With transportation Western China international transit corridor tural tourism in the region. In this regard, on and logistics investments, Kazakhstan aims and the Almaty-Tashkent-Termez interna- May 17, 2019, during the annual Kazakh- to increase both its exports and transit trade tional highway have also been positively af- stan Global Investment Roundtable chaired volumes, especially in the border regions. fected by the construction of these transport by Prime Minister of Kazakhstan Askar Ma- The fact that the country’s geographical po- lines. Moreover, exports of agricultural min, the Turkish construction company sition provides the most effective route for products to Uzbekistan is carried out YDA Holding signed an agreement with the transit and transport communications for through these road links. administration of the Turkistan region to neighboring states is fully compatible with The railway line, which passes through the construct an international airport in Turki- these objectives. The advantageous position Turkistan region, is of great importance for stan. The airport that is under construction of Kazakhstan also allows it to reach the Kazakhstan. The Moscow-Turkistan-Tash- now, will allow direct flights to the region. markets of neighboring countries without kent international route linking Russia and In addition, it is expected to develop air any barriers. In this regard, the country’s po- Uzbekistan is crucial for further progress in travel in the southern regions of Kazakhstan tential is directly related to the economic de- deepening economic ties between the three and promote international flights. velopment of the Turkistan region that bor- countries. At the regional level, the Ky- To conclude, the Turkistan region has sig- ders the Kyzylorda, Zhambyl and Kara- zylorda-Turkistan-Taraz railway route con- nificant potential for transport and logistics, gandy regions, and the Republic of Uzbeki- tributes to the development of trade and eco- stan, as well as to the development of nomic relations within Kazakhstan. The as international transport corridors pass transport and logistics infrastructure. Thus, transport potential and logistics capacity of through the territory of the region. At the Turkistan’s location on the way of major in- the Turkistan region makes transportation of same time, the adaptation of the industrial ternational transport corridors and the avail- cargoes from other parts of Kazakhstan to sector in the Turkistan region to the regional ability of large settlements along these Uzbekistan and the transit of Russian goods market will help to create industries that will routes increase the region’s role in transport more attractive. Moreover, this encourages be competitive with those of the Central and logistics. Kazakhstan’s cargo and transit transporta- Asian countries. Being a city with a special Currently, there are 7,198 km highway and tion infrastructure to be equipped with inno- status, Shymkent plays an essential role in 915.6 km railway transportation networks in vative technologies. The government providing opportunities for products manu- the Turkistan region. The railway network launched a large number of projects and pro- factured in the region to reach larger mar- of the region extends to the cities of Uzbek- grams after Turkistan had become the re- kets. As a whole, it is clear that the upgrade istan, Kyrgyzstan, Russia, and Ukraine with gional center, and some of them are in the of the region’s transportation infrastructure various connections. In addition to road and process of being implemented. As a result, will ensure the development of the tourism rail transport, the international airport in there has already been an increase in cargo sector. The improvement of transport infra- Shymkent is an additional advantage of Tur- transport and trade volume at the customs structure and the establishment of logistics kistan’s air passenger and cargo transporta- checkpoints between the Turkistan region centers, such as the Silk Road multimodal tion potential. There are direct flights from and Uzbekistan. Overall, in January-June center, in Turkistan will accelerate the inte- the Shymkent International Airport to Nur- 2019, the foreign trade turnover of the Tur- gration of the city into international Sultan, Almaty, Aktau, Aktobe, Atyrau, as kistan region amounted to $164 million, or transport and trade corridors, contributing to well as to the cities of Russia, Tajikistan, 33.7% more than in the same period of 2018. and Turkey. These transport connections are The development of transport and logistics the development of modern warehouses and among the key transportation routes of Ka- infrastructure in the Turkistan region also wholesale trade, the establishment of logis- zakhstan. generates economic interest on the part of tics companies, and the coordination of Transport links that pass through the terri- the regional countries. To further increase shipping and handling centers. This will cer- tory of the region help to improve its eco- this interest, Kazakhstan established the tainly boost the economy of Turkistan, nomic and social well-being, as well as its TURKISTAN special economic zone which will turn into a major hub for cargo production and service industries. Routes to (SEZ). The TURKISTAN SEZ aims to in- transportation between all transport and lo- the neighboring Uzbek market have also crease trade with the Eurasian Economic gistics complexes in the region. Finally, it been established through Kazakhstan’s Union countries, as well as develop the re- can be noted that the development of Atakent and Uzbekistan’s Gagarin customs gion’s tourism capacity, and production of transport infrastructure and logistics capac- checkpoints. In addition, there are two main non-mineral products, finished metal prod- ity of the Turkistan region plays an im- roads of international significance on the ucts, and construction materials. In order to portant role in trade and economic relations territory of the region: the M-32 road lead- develop the region’s economy, work is un- at the regional, national and international ing to the Russian city of Samara and the derway to establish a trade logistics center levels. Written by Daulet Zhailybayev, Eurasian Research Institute, Kazakhstan

Politics, Foreign Affairs, and Security Economy, Finance, and Energy Society and Culture  A meeting of the Council of Heads of  The government of Kazakhstan issued a  Ukrainian President Volodymyr Zelen- State of the Commonwealth of Inde- decree on the creation of the Qyzyljar sky broke a world record by holding the pendent States (CIS) was held in Ash- special economic zone (SEZ) in the longest press conference in history. gabat to conclude Turkmenistan’s North Kazakhstan region. The SEZ that During the event, Zelensky responded chairmanship in the organization. The will operate for 25 years will focus on to questions of nearly 300 journalists parties signed a number of documents, the production of export-oriented goods from 10:00 until midnight. The topics including the declaration on strategic and is expected to create 3,000 new included the Normandy format, the dis- economic cooperation of the CIS mem- engagement of troops in Donbass, the ber states and the program of coopera- jobs. At the first stage, the amount of in- vestments will reach 160 billion tenge future of Crimea, the Steinmeier for- tion in the fight against terrorism and mula, the Trump-Ukraine scandal, the other violent manifestations of extrem- (Tengrinews, 07.10.2019). During his visit to Kazakhstan, Prime situation around PrivatBank and other ism for 2020-2022 (Kabar, 11.10.2019).  problematic domestic issues (Ukrin-  President of Tajikistan Emomali Rah- Minister of Mongolia Ukhnaagiin form, 11.10.19). mon met with his Kyrgyz counterpart Khurelsukh held talks with his Kazakh counterpart Askar Mamin. The parties  The government of Azerbaijan allowed Sooronbay Jeenbekov in Ashgabat on the reopening of the Georgian church in the sidelines of the CIS summit. The agreed to reinforce cooperation in vari- parties discussed issues related to the ous areas, including trade, agriculture, the village of Kotoklo, which was once signing of a bilateral border agreement infrastructure, transportation, logistics, the part of Georgia’s historic Hereti re- and agreed to strengthen the legal man- and light industry. In particular, the gion and was handed to Azerbaijan back date of the joint commission on delimi- in 1921. The church has not been func- Mongolian side proposed to establish a tional for 120 years, and the local Or- tation and demarcation of the disputable joint farm in western Mongolia to ex- stretches of the Tajik-Kyrgyz border thodox population was asking for it to port meat products to Middle Eastern be reopened (Agenda.ge, 09.10.19). (Asia-Plus, 11.10.19). countries (Montsame, 11.10.19).  During the visit to Kazakhstan, Russian th  In Budapest, TURKSOY and the Minis-  The 16 meeting of the Azerbaijan-Ka- try of Human Resources of Hungary Foreign Minister Sergey Lavrov held zakhstan joint intergovernmental com- talks with his Kazakh counterpart signed a memorandum of understanding mission on trade and economic cooper- aimed at strengthening mutual coopera- Mukhtar Tileuberdi and President ation was held in Baku. As stated at the Kassym-Zhomart Tokaev. The parties tion in various fields of culture and art, discussed ways to strengthen bilateral meeting, in 2018, the volume of trade including literature, museums, music strategic partnership and exchanged between the two countries grew by and theater. According to TURKSOY opinions on the situation in Syria and 55.4%, amounting to about $221 mil- Secretary General Dusen Kasseinov, the Afghanistan, as well as other regional lion, and increased further by 11% in the institutionalization of cooperation with and international issues (MFA of Ka- first eight months of 2019 Hungary will promote the voice of the zakhstan, 09.10.2019). (CIS.minsk.by, 09.10.2019). Turkic World in Europe (TURKSOY,  Foreign Minister of Kyrgyzstan Chingiz  At the third meeting of the joint com- 10.10.2019). Aidarbekov spoke at the Geneva Center mittee on customs affairs in Ankara,  According to the study made by the for Security Policy on cooperation be- Azerbaijan’s State Customs Committee Plekhanov Russian University of Eco- tween the Central Asian states on vari- and Turkey’s Ministry of Trade signed nomics, among the former USSR coun- ous issues, including water and energy, a memorandum of understanding on a tries, Kazakhstan has the highest share as well as on the existing level of inter- simplified customs corridor. In addi- of migrants in the population (20%) fol- action in maintaining regional security. tion, the parties finalized an agreement lowed by Estonia (14.7%) and Latvia Representatives of the Geneva diplo- on preferential trade and agreed to begin (13%). In Russia, the proportion of mi- matic corps, civil society and academic discussions on customs and border pro- grants is 8%, whereas Georgia and community attended the event (Kabar, cedures under the Baku-Tbilisi-Kars Azerbaijan have the smallest share of 08.10.2019). project (Trend, 13.10.2019). migrants – slightly above 2% (Tengrin-  Uzbekistan brought 64 children, 39  Uzbekistan plans to reduce the number ews, 10.10.2019). boys and 25 girls, from Baghdad to of labor migrants by 16.6% from 2.35  Mayor of Bishkek Aziz Surakmatov Tashkent on a special flight as part of million to 1.96 million by 2030, despite took part in the Tbilisoba 2019 annual the humanitarian operation Mehr-2. Uz- the expected increase of economically public festival in Tbilisi at the invitation bek authorities received the consent for of his Georgian counterpart Kakhaber the return of children from their moth- active population by 17%. To achieve this, the government will take measures Kaladze. The two mayors discussed is- ers, citizens of Uzbekistan, who serve sues of cooperation between the two long sentences in Iraqi prisons for par- such as reducing the tax burden and re- vising the labor code to encourage pri- capitals and exchanged experience in ticipating in terrorist activities (Uz- developing urban infrastructure and im- Daily, 10.10.19). vate business to create new jobs (Sput- nik, 08.10.2019). proving public transportation (Kabar,  Georgian Defense Minister Irakli Gari- 07.10.2019). bashvili met with Georgian soldiers in  In January-June 2019, the total size of Germany, where they are undergoing remittances from Russia to Tajikistan  The Tourism Business Forum of Kyr- mandatory training before joining the amounted to $649 million, almost gyzstan and Tajikistan was held for the NATO Resolute Support mission in Af- reaching the value of Tajik exports first time in the Tajik city of Khujand. ghanistan. Before leaving for Germany, ($700.2 million) in the first eight Officials and business representatives the soldiers underwent a four-month of the two countries attended the event months of 2019. Moreover, in the first to present tourism opportunities and dis- training in Georgia, which is the largest half of 2019, remittances of Tajik mi- non-NATO member contributor to the cussed ways to cooperate in this sector. grant workers exceeded the exports of As a result of the negotiations held in mission with 870 soldiers (Agenda.ge, Tajikistan to Russia ($25.4 million) by 11.10.2019). the B2B format, the Kyrgyz and Tajik 25 times (Regnum, 12.10.2019). companies signed 15 agreements and  The Second Minsk Dialog forum held  According to the Kazakh Tourism na- under the theme “European Security: memorandums (Kabar, 07.10.2019). Stepping Back from the Brink” brought tional company, inbound tourism in Ka-  The celebration of representatives of together about 500 politicians and ex- zakhstan grows annually by 10% on av- creative professions was held in Minsk perts to discuss ways of jointly address- erage, while domestic tourism also at a new cultural institution – the Center ing new challenges and threats in the shows good dynamics increasing by 10- for Spiritual Revival. About 150 librar- European continent. The Minsk Dia- 15% over the past five-six years. The ians, museum workers, artists and musi- logue launched in 2015 offers an open national tourism strategy is currently cians from all regions of Belarus repre- platform for research and discussion based on the 4E concept consisting of senting the country’s 65,000 cultural about international relations and secu- ecotourism, ethno-tourism, entertain- workers gathered at the center to mark rity in Eastern Europe (Belarus.by, ment and events (Government.kz, their professional holiday (Bela- 07.10.2019). 08.10.2019). rus24.by, 11.10.19).

Prepared by Dauren Aben and Kanat Makhanov