Energy and Economy

IMF Uncovers Major Error in Uzbek GDP Calculation

An International Monetary Fund Technical Assistance Report into Uzbekistan's gross domestic product (GDP) found errors in GDP calculation of 10% - 12% over several years that led to under-reporting. The initial calculation for Uzbekistan’s GDP for 2023 (in trillions of Uzbek som) was 1066.6. After the IMF revision, it is believed to be 1192.2, an error of 11.8%. After the revision, the growth in GPD for 2023 was switched from 6% to 6.3%.

Source: International Monetary Fund

Kyrgyz Bank Suspends Transactions Involving Russia

MBank, the fourth largest bank in Kyrgyzstan, has suspended all money transfers through Russian banks. In its statement, MBank cited increased concern about sanctions against Russia as the reason for the shift. The MBank decision is part of a trend of several Kyrgyz banks suspending Russian transactions following a June 12 announcement by the U.S. Treasury Department's Office of Foreign Assets Control of new sanctions against Russia.

Source: Daryo

Azerbaijani and Uzbek State-Owned Energy Companies Sign an Agreement on Exploration in Uzbekistan

On August 22, at the Uzbek-Azerbaijani business forum held during President Aliyev of Azerbaijan’s visit to Uzbekistan, an agreement on exploration was signed between the state-owned energy companies of the two countries. SOCAR and Uzbekneftegaz signed an agreement on “geological exploration at investment blocks in Uzbekistan.” The two companies signed an agreement in August 2023 on participation in oil and gas projects in both countries. 

Source: Interfax

Tender Announced for Roads Connecting Georgia, Armenia, and Azerbaijan

On August 21, the Roads Department of Georgia announced an international tender for the construction of new roads connecting Georgia with Armenia and Azerbaijan. The project, expected to be financed with a €250 million loan from the European Investment Bank, involves the construction of the Rustavi-Red Bridge road section connecting to the Azerbaijan border and the Algeti-Sadakhlo road to the Armenia border. 

Source: Agenda Georgia

KazMunayGas and Shell Discuss Karachaganak Gas Production Plant Construction 

During a meeting between the chairman of the board of Kazakhstan’s state-owned energy company KazMunayGas, Askhat Khassenov, the Executive Vice President of Exploration and Production of the Oil and Gas Division of Shell, Peter Costello, and the Chairperson of Shell in Kazakhstan, Ali Al Janabi, the sides discussed the implementation of the Karachaganak gas processing plant construction project for processing 4.5 bcm of gas per year. They also discussed further development of the Kashagan field, issues of further development of new directions for oil export, and joint geological research.

Source: Trend News Agency

Politics and Security

 

Azerbaijan Formally Applies to Join BRICS

On August 20, Azerbaijan formerly requested membership to BRICS, the inter-governmental grouping formally made up of Brazil, Russia, India, China, and South Africa. Azerbaijan announced its initial interest in BRICS membership in July. BRICS expanded earlier this year to include, Saudi Arabia, Iran, Egypt, the United Arab Emirates, and Ethiopia. 

Source: RFE, BBC

Azerbaijan and Uzbekistan Forge Alliance

On August 22, Azerbaijan’s President Ilham Aliyev conducted a two-day state visit to Uzbekistan. In Tashkent, President Aliyev and his counterpart, Uzbekistan President  Shavkat Mirziyoyev, attended a meeting with representatives from the business communities of both countries. The two leaders also held meetings in limited format, in addition to holding the first meeting of the High Intergovernmental Council. Aliyev and Mirziyoyev signed the Treaty on Allied Relations. The delegations of the two countries signed agreements in the areas of tourism, trade, education, science, and labor rights. 

Source: President of Azerbaijan 

United States and Uzbekistan Reach Agreement on Jets

On August 23, U.S. Ambassador to Uzbekistan Jonathan Henick stated to Uzbek news outlet Kun.uz that the final status of the U.S. aircraft evacuated to Uzbekistan from Afghanistan in 2021 had been decided. Reportedly, the aircraft, which include the Embraer EMB 314 Super Tucano, UH-60 Black Hawk, MD-530 and Mi-17, will remain in Uzbekistan and will be operated by the Uzbek forces likely in order to conduct anti-terrorism monitoring, especially concerning Islamic State Khorasan Province that is active in neighboring Afghanistan.

Source: Kun.uz