Kazakhstan signs a rare earths and mining deal with South Korea; Tajikistan to receive US$ 100 million from the Asian Development Bank in order to rebuild roads leading to Uzbekistan; Uzbekistan begins regular gas shipments to China; World Bank approves a
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    • According to reports, Kazakhstan has signed a number of economic deals as part of South Korean President Lee Myung-Bak’s state visit to Astana. Amongst the major deals include the one on rare earth minerals and the decision to build a petrochemical complex in the Caspian city of Atyrau and exploration of mineral resources in Kazakhstan. Bilateral trade stood at US$ 900 million in 2011. 1

    Reports noted that the Asian Development Bank (ADB) has allotted US$100 million to Tajikistan to rebuild roads leading to neighbouring Uzbekistan. The road is part of the CAREC (Central Asian Regional Economic Cooperation) project to strengthen transportation networks in the area. With the funds, road safety will be improved, drainage structures will be fixed, and community development will grow. Uzbek-Tajik relations have been tense for the past few months, as Uzbekistan has intensified its opposition to Tajikistan’s construction of the controversial Rogun Dam by holding up trains heading to Tajikistan. As a result, Tajikistan says valuable food supplies have been delayed, threatening to create famine in its vulnerable south. 2

    According to reports, Uzbekistan has begun shipping gas to China on a regular basis. During the meeting between Uzbek President Islam Karimov and Chinese Vice Premier Hui Liangyu close to 30 deals worth more than $5.3 billion were signed. Trade turnover between the two countries grew over 44 percent to reach $1.5 billion. 3

    The World Bank has approved a US$40 million loan to the Uzbek government to assist farmers in increasing productivity in the country's agricultural sector. Agriculture accounts for over 40 percent of the country’s gross domestic product (GDP) and the loan is part of the Second Rural Enterprise Support Project of International Development Association (IDA) funds. 4

    The Asian Development Bank (ADB) has agreed to finance Kyrgyzstan’s Toktogul reservoir modernization project with $55 million in grants and loans. The hydropower plant provides a critical amount of power to the country’s grids, as it provides 1200 MW of electricity and the project is expected to be complete by 2017. 5

    In other developments, according to reports, Russian Deputy Defence Minister Anatoly Antonov was in Dushanbe on September 12 for talks with Tajik officials on the future of Russia's military bases in Tajikistan. Dushanbe and Moscow have been conducting negotiations over a possible prolongation of Russia's 201st Motorized Rifle Division's deployment in Tajikistan beyond 2014. With approximately 7,500 troops, Russia's 201st Division uses three Tajik bases, located near Dushanbe and in the southern cities of Kulob and Qurghon-Teppa. There are close to 7,500 Russian troops in the country. 6

    Vietnam’s Head of state as part of his state visit to Kazakhstan has declared that Vietnam remains committed to joining the tripartite Customs Union comprising of Kazakhstan, Belarus and Russia. 7

    China has agreed to assist Kyrgyzstan’s agricultural sector with a grant of 10 million Yuan (US$1.6 million) in order to develop its agriculture sector. 8

    The Turkmen government has cancelled a contract with an Iranian construction firm to build the Turkmen leg of 550 mile (US$696 million) Kazakh-Turkmen-Iranian railway on the basis of ‘economic reasons’. Turkmenistan firms are expected to take over the construction. 9

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