KazTransOil boost oil transit from Aktau port to Baku

Kazakhstan's KazMunayGas JSC (KMG) is investigating the potential for producing sustainable aviation fuel (SAF), recognizing it as a key to the future of air transport, Trend.az reports.

The development was revealed following a meeting between KMG Chairman of the Board Askhat Kassenov and IATA Vice President Rafael Schwartzman.

KMG has conducted a comprehensive market analysis and concluded that the development of the aviation sector is directly linked to the adoption of SAF.

This initiative aligns with the global trend to reduce carbon emissions, a commitment Kazakhstan has actively joined through the CORSIA framework aimed at offsetting and reducing emissions in international aviation.

Additionally, Hasenov noted that since 2020, three Kazakh oil refineries have been prepared to produce traditional Jet A-1 aviation fuel. However, a full transition to the new fuel type will require the modernization of the entire infrastructure, from oil depots to airports.

Earlier, Deputy Transport Minister Maksat Kaliakparov and the Chair of the Civil Aviation Committee of Kazakhstan, Saltanat Tompiyeva, also met with the IATA representative. The central topic of discussion was the transition of Kazakhstan's civil aviation to Jet A-1 fuel.

 

A frozen French fries enterprise in Bishkek plans to export its products to Kazakhstan’s Almaty in the near future, Kabar reports.

The current capacity is 300 kilograms per hour, in the near future it is planned to double the capacity of the enterprise, the Ministry of Agriculture of Kyrgyzstan said.

Deputy Chairman of the Cabinet of Ministers - Minister of Water Resources, Agriculture and Processing Industry Bakyt Torobayev familiarized with the activities and problems of the enterprise during the field meeting.

Since 2022, the company has launched a line for the production of frozen French fries. Potatoes are mainly purchased from farmers in Naryn and Issyk-Kul Oblasts.

The equipment to start production was imported from abroad. However, the company is also facing difficulties due to obtaining commercial loans with high interest rates to purchase additional production equipment.

During the field meeting, the relevant departments of the ministry were given instructions to work out mechanisms for extending the loan repayment period and reducing its interest rate.

 

Kazakhstan plans to build a sugar factory with the capacity to process 1 million tons of cane a year in Zhambyl region. K-Agro Holding and Baiterek Holding are expected to develop the project presented at the Government’s meeting chaired by Deputy Prime Minister Serik Zhumangarin, Kazinform News Agency learnt from the Government’s press service.

The factory is projected to process some 8-10,000 tons a day to crush 1 million tons of sugar beets and produce 130,000 tons of sugar a year.

In addition, modernization is underway at the existing sugar mills to increase processing capabilities. All this will help Kazakhstan gradually reduce sugar import dependency and start sugar beets processed goods production. Currently, Kazakhstan has four sugar factories with a total capacity to process 8,700 tons of sugar beets and 2,400 tons of raw cane sugar.

Last year domestic sugar consumption made 507,000 tons. The country's bulk needs are covered by refined sugar imports from the EAEU countries and raw cane sugar processing.

 

Under the chairmanship of Deputy Prime Minister Serik Zhumangarin, the Government held a meeting on production and stabilisation of prices for basic foodstuffs. During the discussion, decisions were made to provide sugar factories with working capital and payment of subsidies to beet growers, primeminister.kz reports.

This year's gross beet harvest is expected to amount to 1.1 million tonnes, which will yield about 120 thousand tonnes of sugar. With the beginning of the harvest, beet growers have repeatedly raised the issue of subsidies and payment by factories for the delivery of beet for processing. According to the regulations, farmers receive subsidies of 25 tenge for each kg of beet, and the purchase price at the factories is 15 tenge/kg. In total, the farmer is entitled to 40 tenge per 1 kg of the crop submitted for processing.

By the decision of the Government at the end of September, the list of activities of socio-entrepreneurial corporations in Zhetysu, Zhambyl and Almaty regions, where beetroot is grown, was expanded, which will allow these corporations to finance sugar factories to replenish working capital at a favourable interest rate. The total amount of preferential lending to sugar factories from Agrarian Credit Corporation JSC is 25.8 billion tenge. The credit line has already been opened for the plant "Aksu Kant" in the amount of 15 billion tenge and allocated through SPK "Zhetisu" 1.6 billion tenge. Merken sugar factory has been granted a credit line for 10.8 billion tenge. This will allow sugar mills to pay sugar beet growers for the new crop in the near future.

To subsidise farmers for the delivery of sugar beet for processing (25 tenge/kg), the necessary funds will be allocated from the Government reserve in the near future. Payments to farmers will be made in stages in accordance with the established procedure. To reimburse the transport costs of farmers in Zhambyl region, who have to transport 100 thousand tonnes of sugar beet to Aksu sugar factory in Zhetysu region, the subsidy norm was increased from 25 thousand tenge to 45 thousand tenge per tonne.

At the meeting, Deputy Minister of Agriculture Yermek Kenzhekhanuly informed about the results of the audit of food stocks in the regional stockpiles. A working group was set up for the audit, which included representatives of the Committee of Trade of MIT, Committee of State Inspection in the agro-industrial complex of the Ministry of Agriculture, Ministry of Agriculture, AZRC. According to the results of the audit, the declared state of stocks was confirmed. However, the audit in Aktobe region showed that not all forward contracts were concluded exactly with agricultural producers. Serik Zhumangarin gave the Akimat of the region a one-week deadline to renegotiate contracts with existing farmers. Trade Committee was instructed to assist in finding vegetable producers from other regions, ready to supply products to Aktobe region.

The meeting also noted the continuing deflation of basic food products: from the beginning of the year to 1 October the dynamics of price growth was -0.3%. Over the past week, the average price index remained unchanged, with zero growth rate.

 

For the past eight months capital investments in the tourism sector in Kazakhstan grew by 69% compared to the last year to reach 527.6 billion tenge, Kazinform News Agency learnt from the Tourism and Sports Ministry.

148 investment projects generating 2,500 new jobs in the regions will be developed by the yearend. The projects are called to improve the country's tourist infrastructure and to attract tourists.

The growth of tourism investments demonstrates high interest in boosting this strategically important sector. Providing destinations with the necessary infrastructure will make Kazakhstan more attractive for international and domestic tourists, head of the tourism industry committee Nurtas Karipbayev said.

64 infrastructure projects are being implemented in Kazakhstan to bolster the tourism sector of Kazakhstan and make travel more comfortable.

 

The Asian Development Bank (ADB) has marginally revised downwards its economic growth outlook for Kazakhstan in 2024, following weaker expansion in services in the first half of the year coupled with lower oil outputs, massive floods, and a slowdown in investment, ADB reports.

The Asian Development Outlook (ADO) September 2024, the latest edition of ADB’s flagship publication, projects 3.6% growth of Kazakhstan’s gross domestic product (GDP) this year, slightly lower than the bank’s previous forecast of 3.8% in April 2024. The Central Asian nation’s economic growth is expected to accelerate to 5.1% in 2025.

In the first half of 2024, tax revenue collection declined as receipts from oil duty and value added tax were lower compared to the same period in 2023. The decline in tax collection was offset by higher transfers from the sovereign wealth fund, the National Fund of the Republic of Kazakhstan (NFRK), with the government utilizing three-quarters of planned annual transfers in the period. This partially led to the national currency appreciating as the central bank converted the NFRK foreign currency receipts to tenge to meet the government transfer requests.

Average inflation slowed to 8.9% in the first 7 months of 2024 down from 17.2% last year. Inflation is projected to slow further to 6.1% in 2025, reflecting tight monetary policy and a stable exchange rate enabled by substantial foreign reserves and commodity export earnings. The combined reserves in the NFRK and the central bank surpassed $100 billion as of June 2024.

Kazakhstan joined ADB in 1994. ADB has since committed about $7 billion in loans to the government and private sector, grants, and technical assistance.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.

 

Prime Minister of Kazakhstan Olzhas Bektenov met with First Deputy Minister - Minister of Economy and Sustainable Development of Georgia Levan Davitashvili, who arrived in Astana to participate in the 12th meeting of the Kazakhstan-Georgia Intergovernmental Commission on Trade and Economic Cooperation, primeminister.kz reports.

The issues of interaction in the spheres of transport and logistics, agro-industrial complex, energy, tourism, aviation industry, as well as strengthening cultural and humanitarian ties were considered.

Georgia is an important and reliable partner in the South Caucasus. In the first quarter of this year, Georgian investors invested $88.5 million in Kazakhstan's economy, while the total investment volume has exceeded $500 million over 10 years.

The parties emphasised the prospects in the transit and transport sphere. Major transcontinental transport corridors pass through the territories of the two countries as the shortest routes from Europe to China and South-East Asia.

The Head of State pays great attention to the development of the Middle Corridor, and we aim to increase the volume of traffic along this route to 10 million tonnes of cargo. For this purpose, the Government is taking consistent measures to improve transit conditions," Olzhas Bektenov stressed.

Head of the Government of the Republic of Kazakhstan noted the importance of continuing joint work on establishing competitive tariff conditions, reducing delivery time and increasing the volume of transportations along the TMTM route, including the line Baku - Tbilisi - Kars. Along with this, the need for active digitalisation of the transport corridor, which will increase its attractiveness for international carriers.

In turn, Levan Davitashvili expressed interest in strengthening cooperation with Kazakhstan and noted the special role of the Intergovernmental Commission, which is called to give a new impetus to the development of bilateral relations.

The participants of the meeting confirmed the intention to continue multidimensional work to ensure the dynamic development of trade and economic partnership.

 

The Prime Minister of Kazakhstan Olzhas Bektenov met with the Deputy Managing Director of the International Monetary Fund Bo Li, primeminister.kz reports.

The meeting focused on cooperating in the financial and economic areas.

Kazakhstan has been a member of the IMF since 1992. Long-term partnership with the Fund is important to ensure economic stability of the country and quality sustainable growth of the national economy.

The participants of the meeting emphasized the strategic nature of cooperation between Kazakhstan and the IMF.

Positive results of joint work on structural reforms, development of fiscal policy and financial market of Kazakhstan testify to the high importance of cooperation.

The opening of the IMF's Regional Capacity Development Center for the Caucasus, Central Asia, and Mongolia in Almaty last year gave new impetus to bilateral and regional dialogue on maintaining international financial stability.

It was noted that as a result of the systematic policy of the head of state on comprehensive modernization of the economy on September 9 this year Moody's rating agency upgraded Kazakhstan's sovereign rating to Baa1 with stable outlook.

The assigned rating is the highest for all years of the country's independence, and confirms the continued improvement of the institutional environment and the sustainability of the pace of economic diversification.

Olzhas Bektenov emphasized that the Government of Kazakhstan, together with the National Bank and the Agency for Development and Regulation of the Financial Market, intends to pursue a consistent policy aimed at achieving high-quality economic growth.

Ongoing reforms aim to further improve the effectiveness of fiscal policy, financial accountability and tax administration.

In turn, IMF Deputy Managing Director Bo Li noted that the Fund is committed to continuing the strong and constructive partnership with Kazakhstan aimed at growing Kazakhstan's economy and enhancing the welfare of its people.

To this end, regular policy advice on priority reforms and technical assistance provided by the IMF to the government agencies contribute to strengthening the institutional frameworks and private sector development.

At the end of the meeting, the parties confirmed their intention to strengthen the partnership across the entire spectrum of cooperation.