Category: Kazakhstan

Kazakhstan Defies Russia over Eurasian Economic Union

By Sarah Lain

Kazakh president Nursultan Nazarbaev and Russian president Vladimir Putin shake hands after signing the treaty on the Eurasian Economic Union Photo: kremlin.ru
Kazakh president Nursultan Nazarbaev and Russian president Vladimir Putin shake hands after signing the treaty on the Eurasian Economic Union Photo: kremlin.ru

On May 29 Kazakhstan, Belarus and Russia signed into existence the Eurasian Economic Union (“EEU”), set to come into force in January 2015. The EEU’s aim is the economic integration of ex-Soviet countries, based on a European Union-style collective model. It builds on the Customs Union, signed in 2010, which implemented a common customs territory and removed internal border controls between the three states. Against the backdrop of a shifting geopolitical landscape sparked by events in Ukraine, and strengthening Russian and Kazakh bi-lateral relations with China, the original vision of the EEU may no longer be viable. Although they wish to show they have a diversified partner base, Kazakhstan and Russia also want to avoid perceptions of any overt economic threat to its shared Chinese partner. This is particularly relevant to Kazakhstan, which has in fact suffered economically from the initial implementation of the Customs Union, as laid out below.

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Kazakhstan

by Sue Anne Tay

Central square of Al-Farabi Kazakh National University

Students stroll through the central square of the Al-Farabi Kazakh National University in Alamaty. A large poster featuring President Nursultan Nazarbayev and university students hang against the side of a key administrative building.

Kazakh steppes

Typical Central Asian steppe landscape along the highway from Almaty to Khorgas, the border town with China.

Central Mosque Almaty

The Central Mosque in downtown Almaty is built in the Timurid style of architecture and accommodates up to 7,000 worshippers.

Kazakh bride outside Central Mosque

A Kazakh bride in traditional dressing poses with her family outside the Central Mosque in Almaty.

Almaty street scene

A mother and her children walk by shops in Almaty.

Play at the Theatre of Young Spectator

A play based on local Kazakh folk lore concludes at the Kazakh Theatre of the Young Spectator in Alamaty.

Kazakh waitress in cafe

A Kazakh waitress takes orders in a buffet-style cafe in downtown Almaty.

Sale of Kazakh dolls

Kazakh dolls dressed in traditional costumes on sale at Barakholka Bazaar, Almaty’s largest and busiest wholesale trade bazaar.

IMG_4751

A trendy school girl in the streets of Almaty.

Central Asia’s New Energy Giant: China

By Alexandros Petersen

First published in The Atlantic on June 28, 2013

Turkmenistan’s southeastern desert, not far from the border with Afghanistan, is a forbidding place. Its bleak, dusty vistas are punctuated by the ruins of ancient caravansaries: once rest stops on the old Silk Road. But, the silence of that long lost East-West artery is now regularly broken by the rumble of Chinese truck convoys. These are not ordinary tractor-trailers, either: they move slowly carrying massive loads of natural gas extraction equipment, and according to Turkmen officials, the shepherds’ bridges and village roads have had to be reinforced from the impact of their weight. The equipment is headed to one of the top five natural gas fields in the world; Formerly known as South Yolotan-Osman, in 2011 the field was renamed “Galkynysh” or “revival” in Turkmen. The name is apt because this gargantuan reserve of natural gas is the prize motivating CNPC, China’s largest oil company, to revive the old Silk Road — only this time by pipeline. Continue reading

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Inadvertent Empire

Alexandros Petersen is interviewed by The Gadfly on April 16, 2013

The Gadfly: You have referred to China’s growing influence in Central Asia as an “Inadvertent Empire.” Could you explain what you mean?

Alexandros Petersen: It’s an inadvertent empire in the sense that China is already the most consequential actor in the region and will soon be the dominant actor in a number of different areas. It already is the dominant actor in the economic sphere and definitely so in the energy sector, which is actually quite a significant accomplishment given Russia’s traditional role in that area. China has also become the go to place for loans and investments. One of the key needs in Central Asia is investment in infrastructure, and that requires funds. Russia doesn’t have the money; the United States doesn’t have the money in some cases and simply doesn’t care in others; the European Union is not comfortable giving money because of the nature of some of the regimes in the region, so China is really the only option to provide funding as well as institutional capacity building. So, it’s an empire in the sense that China is the player to watch and will be the dominate player in the future, but it’s inadvertent, in the sense that China doesn’t really have a strategy for the region. China doesn’t want an empire. As Seeley would say, it has an empire “in a fit of absence of mind.” Continue reading

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Chinese Refinery in Kyrgyzstan to Reduce Russian Leverage

On April 2, 2013 Alexandros Petersen conducted an interview with Chris Rickleton, a Bishkek-based analyst and Instructor at the American University of Central Asia.

Chinese refinery in Kyrgyzstan to reduce Russian influence

You have conducted in-depth research into Chinese plans for a refinery at Kara Balta in Kyrgyzstan. What exactly are these plans and on what sort of timetable are they to be carried out?

The refinery is already behind schedule, but is expected to be built by July of this year, and operating at full capacity by September. Local media reported some tough talk in January between Chu Chan, the director of Zhongda, the Chinese state-owned firm that will run the refinery, and Kyrgyz Prime Minister Jantoro Saptybaldiyev. Saptybaldiyev was clearly very keen to see the refinery working as soon as possible and asked Chu why the facility still hadn’t been built. Chu referred to “misunderstandings” having led to the wrong equipment being delivered to the site. Chu also wanted the “sanitary zone”, which governs the distance residential homes can be from the refinery, reduced from 500 metres to 300 metres, which would have helped the company out in some of its compensation battles with local residents. When Saptybaldiyev rebuffed this offer, Chu reminded him that the company have already paid something like $4,000,000 in taxes and that they will have invested $250 million into the project by the time it is up and running.

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A Hungry China Sets Its Sights on Central Asia

By Alexandros Petersen

First published by The Atlantic on March 5, 2013

In the gravelly, uncertain road coursing through Kyrgyzstan’s picturesque Alay Valley, it does not take long to stumble across the Chinese road workers’ camp. Though just a dusty collection of prefab dormitories, the camps nevertheless proudly display the company’s name, logo and various slogans in large red Chinese characters. A Kyrgyz security guard is fast asleep on his cot, and the camp is deserted except for a young engineer from Sichuan. He explains that they work six months out of the year, when snow doesn’t block the passes. Next year, the road will be finished. He says his friends that work on Chinese-built roads in Africa get a better deal.

Further down the road, amid bulldozers and trucks full of dirt, are the road workers. They’re slowly reshaping the mountains, molding them into smooth inclines and regulation grades. Then there are the trucks; hundreds of them, crowding at the Chinese/Kyrgyz border, all engaged in the increasingly active trade between the two countries. One of the truckers, a member of China’s Muslim Uighur minority, is eager to chat. The roof of the world is his workplace. It takes three days to drive a 30 ton load from Kashgar, in China’s Xinjiang province, through Kyrgyzstan to Uzbekistan. He and his colleagues bring 100 such loads across every week. Continue reading

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…or Central Asia’s China Problem

By Alexandros Petersen

The International Crisis Group’s (ICG) latest report, “China’s Central Asia Problem” is a sweeping and masterful work in many ways. As we traveled through and conducted research in eastern China, Xinjiang, post-Soviet Central Asia and Afghanistan, Raffaello and I came across ICG researchers and bounced our ideas off of ICG’s seasoned Eurasia hand Paul Quinn-Judge. The report kindly quotes a couple of our articles that appeared here on chinaincentralasia.com.

But, does the ICG report get it right? Yes and no. The overall point that China is on the brink of becoming the pre-eminent external power in the region, not just in the economic sphere, is correct. We have argued that China is already the most consequential actor in Central Asia, as well as the most forward-looking external power. In the context of a U.S., and more broadly Western, exit from the region, the engagement of multifarious Chinese actors – from diplomats to state-owned enterprises (SOEs) to shuttle traders to manual laborers and Chinese language teachers – combines to create a momentum that has no clear counterweight. Continue reading

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China and Central Asia in 2013

By Raffaello Pantucci and Alexandros Petersen

First published in China Brief January 18, 2013.

In the last two years, China has emerged as the most consequential outside actor in Central Asia. As we have described in other writings, China’s ascension to this role has been largely inadvertent [1]. It has more to do with the region’s contemporary circumstances and China’s overall economic momentum than a concerted effort emanating from the Zhongnanhai. The implications for United States and NATO policy are nevertheless profound. Not only have the geopolitics of Eurasia shifted in ways little understood in Washington and Brussels, but the socio-political and physical undergirding of the post-Soviet space from Aktobe to Kandahar is being transformed.

Official Chinese policy in Central Asia is quiet and cautious, focused on developing the region as an economic partner with its western province Xinjiang whilst also looking beyond at what China characterizes as the “Eurasian Land Bridge…connecting east Asia and west Europe” (Xinhua, September 4, 2012). Chinese state-owned enterprises (SOEs) are active throughout the region on major infrastructure projects, but it is not clear how much they are being directed as part of some grand strategy as opposed to focusing on obvious profitable opportunities. The Shanghai Cooperation Organization (SCO), the main multilateral vehicle for Chinese regional efforts and reassuring engagement is a powerfully symbolic, but institutionally empty actor. Many smaller Chinese actors—ranging from shuttle traders to small-time entrepreneurs to schoolteachers and students posted to Confucius Institutes throughout the region—are the gradual vanguard of possible long-term Chinese investment and influence. Continue reading

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China’s Latest Piece of the New Silk Road

By Alexandros Petersen

First published in Eurasia Daily Monitor January 10, 2013.

While the concept of a “New Silk Road” of trade, transport and telecommunications connections across Eurasia was formally endorsed by the US State Department, it is Beijing and Chinese companies that have taken the lead in realizing the immense infrastructure projects that will tie the mega-continent together. The latest is the completion of a second railway link between China and Kazakhstan at the burgeoning Khorgos crossing point and Special Economic Zone. This nearly 600-kilometer section is part of a larger project that connects China’s eastern port of Lianyungang with Kazakhstan’s rail system and points west toward Russia and the Caspian region. Chinese officials refer to it as part of the New Eurasian Land Bridge from China’s ports to Western European ports such as Rotterdam (Global Times, December 22, 2012).

Plans call for the railway to handle 20 million tons of freight by 2020, increasing to 30 million by 2030. The 292-km Chinese portion of the project was built for less than $1 billion—relatively inexpensive by global standards. Khorgos is already the key border crossing for the Central Asia–China natural gas pipeline from Turkmenistan and a new highway network under construction. According to Kazakhstan’s Minister for Transport and Communications Askar Zhumagaliyev, 800 km of this Western Europe–Western China highway will be completed in 2013, with much of the route running alongside the just-completed railway (Tengrinews, December 20, 2012). Continue reading

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Central Asia: What is China’s Policy Driver?

Alexandros Petersen is quoted by Joshua Kucera on EurasiaNet.

Part of the reason is that Central Asia remains a low priority for the government in Beijing, and so policy is shaped on an ad hoc basic via deals made by various companies and government organs, said Alexandros Petersen, an analyst and fellow at the Woodrow Wilson Center who studies Chinese policy in Central Asia. “There is no grand strategy for Central Asia on the part of Beijing,” Petersen said. “What there is, however, is a confluence of all the activities of these multifarious actors which, regardless of what Beijing wants or doesn’t want, means that China is nonetheless the most consequential actor in the region.”

Nevertheless, China’s strategy towards Central Asia may be a function of its need to pacify Xinjiang, Petersen said: “The engagement in Central Asia … has to do with security concerns about Xinjiang, number one, and only secondly, after that, is it about resources and economic development.”

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China’s Inadvertent Empire

By Raffaello Pantucci and Alexandros Petersen

First published in the November/December hardcopy of The National Interest

PRESIDENT OBAMA’S late 2011 announcement of his administration’s pivot to Asia marked a sea change in America’s geopolitical posture away from Europe and the Middle East to Asia and the Pacific Rim. Reflecting the growing strategic repercussions of China’s rise, the move presages a new era of great-power politics as the United States and China compete in Pacific waters. But is the United States looking in the right place?

A number of American strategists, Robert D. Kaplan among them, have written that a potential U.S.-Chinese cold war will be less onerous than the struggle with the Soviet Union because it will require only a naval element instead of permanent land forces stationed in allied countries to rein in a continental menace. This may be true with regard to the South China Sea, for example, or the Malacca Strait. But it misses the significance of the vast landmass of Central Asia, where China is consolidating its position into what appears to be an inadvertent empire. As General Liu Yazhou of China’s People’s Liberation Army once put it, Central Asia is “the thickest piece of cake given to the modern Chinese by the heavens.” Continue reading

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Kazakhstan Cabinet Reshuffle Promotes Massimov

By Alexandros Petersen

First published in Eurasia Daily Monitor September 25, 2012

The first autumn winds in Kazakhstan’s capital brought with them a major cabinet reshuffle that promoted popular, effective Prime Minister Karim Massimov to head the preeminent presidential administration and moved First Deputy Prime Minister Serik Akhmetov to the premier spot. President Nursultan Nazarbayev confirmed both appointments on September 24, after one of his advisors spoke to the press two days earlier about the possible shift (Tengrinews, September 22). The musical chairs at the top of Kazakhstan’s government structures come amid widespread speculation and reported wrangling over who will succeed Nazarbayev to become the country’s second president. Continue reading

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Chinatown, Kazakhstan?

By Raffaello Pantucci and Alexandros Petersen

Is there a Chinese restaurant in town? The front desk clerk at our hotel answered that he knew of none in the city and could only direct us to a Japanese-Korean establishment, complete with waitresses in kimonos and chopsticks sanitized in Seoul. While the food was good, it wasn’t what we were looking for.

Aktobe is our latest stop through the region tracking China’s influence in Central Asia. We had heard this was the oil town where China National Petroleum Corporation runs the show and we wanted to try to get a sense of China’s role on the steppe. Local Kazakhstani’s have nicknamed the city ‘Chinatown’ – a reflection of the size of the Chinese population. But, how could there be no Chinese restaurants in Chinatown? Continue reading

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Xinjiang: struggle to revive Silk Road

By Raffaello Pantucci

First published in the Financial Times Beyond Brics September 4, 2012

Picture courtesy here

What do you do about attracting investment if you are a remote corner of China, best-known internationally for your ethnic tensions?

If you are Xinjiang, you invest heavily in a blockbuster economic exhibition. Urumqi is this week hosting its second annual China-Eurasia Expo, opened this year by premier Wen Jiabao, a clear upgrade from last year’s star host, vice premier Li Keqiang.

Leaders and/or ministers from seven countries flew in, giving credence to Wen’s claim that the Expo aimed ‘to build a new bridge of friendship and cooperation across the Eurasian continent…and make Xinjiang a gateway.’ But it’s along way from prime ministerial declarations to the investment that Xinjiang badly needs.

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Kazakhstan Puts Components in Place for Caspian Shipping

By Alexandros Petersen

First published in Eurasia Daily Monitor July 31, 2012.

On July 25, Kazakhstan’s coastal city of Aktau hosted an expert-level conference on implementing global standards for maritime shipping at Caspian ports (News.az, July 25). Organized by TRACECA’s Logistics Processes and Motorways of the Sea (LOGMOS) project, the conference signals the inauguration of an important stage in the development of “New Silk Road” corridors from East and South Asia to Europe. As the European Union’s trans-Eurasian transport coordinating mechanism, TRACECA provides a regional forum and technical assistance for countless projects across the continent. However, while TRACECA can help on the margins, for a project to go forward, it requires political and financial commitment from host governments. For this reason, a number of LOGMOS projects have stalled, most notably the planned Turkmenbashi-Baku connection. But, the Aktau-Baku link seems to be moving ahead, with key managerial, logistical and technical issues addressed, to tackle one of the New Silk Road’s most vexing obstacles: the Caspian Sea Continue reading

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