Following the announcement of its WTO accession in July, Kazakhstan is due to become an official WTO member in mid-December, a development that could significantly boost foreign investment and trade in the country. Within the energy sphere, Uzbekistan is set to invest $889 million in hydropower plants and Kazakhstan is planning to commission 106 energy facilities, both by 2020. In this week’s deals, East Kazakhstan and Chinese businesses sign agreements worth $1.7 billion and Putin travels to Tehran as Russia looks to secure $21 billion worth of export deals with Iran.

Kazakhstan to become WTO member in mid-December

The Kazakh Deputy Minister of Foreign Affairs, Alexei Volkov, has announced that Kazakhstan will be officially recognised as a member of the World Trade Organization (WTO) on 15 December.

In addition, Volkov said that Astana expects the European Union to recognise Kazakhstan as a country that has a market economy, and therefore hopes to be granted a permanent normal trade relations (PNTR) status from the US through the cancellation of the Jackson–Vanik amendment.

The Jackson–Vanik amendment to the Trade Act of 1974 is a 1974 provision within US federal law intended to affect US trade relations with countries with non-market economies that restrict the freedom of emigration and other human rights.

This amendment primarily affected the USSR and, as a consequence, the post-Soviet countries. The US repealed this amendment for Russia in 2012.

Uzbekistan plans to invest $889 million in hydropower by 2020

Uzbekistan looks set to invest $889 million in hydropower plants between 2016-2020, according to a recent government plan.

The plan includes restoration works on 15 older hydroelectric power plants, as well as the construction of 9 new plants in the country.

Through these investments the country is aiming to boost its electricity generation by 5.25 billion kilowatt-hours (KwH).

Uzbekistan generates 40 billion KwH of electricity per year through its 45 hydropower plants. The majority of this electricity is consumed domestically, whilst the rest is exported to neighbouring Afghanistan.

The government expects about $411 million to come from foreign investors and $478 million to come from domestic sources.

Kazakhstan to launch over 100 renewable energy facilities by 2020

Kazakhstan plans to commission 106 facilities that will generate energy from renewable energy sources by the end of 2020. The total capacity of these facilities will be 3054.55 megawatts.

The country will commission 28 solar power plants with a capacity of 713.5 megawatts in Almaty, Zhambyl, Atyrau, Karaganda, Kyzylorda, South Kazakhstan and Mangistau.

All of these renewable energy projects are financed through attracted funds rather than through the state budget.

Russia eyes $21 billion deals as Putin visits Iran

As Russian President Vladimir Putin arrives in Tehran, Russia looks to secure export deals worth $21 billion with Iran.

On the eve of Putin’s visit, Russian media broke the news of the unprecedented deal, saying the contracts had been signed at the MAKS-2015 air show near Moscow.

The contracts included the production and procurement of satellite-related equipment and a Sukhoi Superjet 100-passenger aircraft.

Russia’s Minister of Trade and Industry, Denis Manturov, will head a delegation of executives from several leading companies on a visit to Iran in mid-December. Gazprom, Russian Helicopters and the manufacturer of Sukhoi jets, United Aircraft Corporation, will also be sending representatives.

According to Russia’s biggest defence conglomerate, Rostec, the focus will be mainly on civil exports in areas such as aerospace, infrastructure and energy.

East Kazakhstan and Chinese businesses sign agreements worth $1.7 billion

Businesses from both East Kazakhstan and China have signed 7 business agreements worth $1.7 billion during a mid-November working trip by a delegation from the East Kazakhstan region to Xinjiang. Leaders of the two regions also signed agreements on trade, technical, humanitarian and cultural cooperation.

The working visit began with an official meeting between East Kazakhstan Governor, Danial Akhmetov, and the Chairman of the Xinjiang regional government, Shorat Zakir, during which the regional cooperation agreement was signed. During the meeting, Akhmetov emphasised the close relationship between East Kazakhstan and China.

The parties discussed the potential for business cooperation between the regions and the Kazakh delegates invited Chinese investors to participate in the construction of the $1.4 billion Maikapchagai-ball railway project that will connect China and Kazakhstan, along with other projects.

Kazakhstan and Australia to develop cooperation in mineral exploration

Kazakhstan and Australia have agreed to consider an opportunity to develop their cooperation on the exploration of hard mineral resources on the territory of Kazakhstan.

A Kazakh delegation held negotiations with a number of investment companies in Western Australia, including the largest mining company, Arete Capital Partners, which specialises in investments in natural resources and mining assets globally.

The Kazakhs presented innovations in their national subsoil use legislation that improve the attractiveness of investment, as well as examples of successful cooperation between Kazgeology JSC and the Australian mining company Rio Tinto and Iluka Resources Limited.

Following the meeting, the parties agreed to consider the possibility of developing cooperation between Arete Capital Partners and Kazgeology JSC on the exploration of hard minerals in Kazakhstan.

Kazakhstan eyeing terminal at Mundhra to boost bilateral trade

Kazakhstan is keen to build a terminal at the Mundhra port on India’s western coast, which would provide direct connectivity with Iran’s Bandar Abbas port and thereby help Indian goods get direct access to Central Asia and beyond via the Iran-Turkmenistan-Kazakhstan railway line.

“The due diligence report for the Mundhra terminal is being done, and after that they will take a decision on completing the contract,” said Kazakhstan’s Ambassador to India, Bulat Sarsenbayev. “The Mundhra project is very important. Once completed it will change the whole logistics of moving goods from India to Kazakhstan and through Kazakhstan to Central Asia, to Russia, China and Europe.”

The 930km Kazakhstan-Turkmenistan-Iran railroad link connecting Central Asia to the Persian Gulf was inaugurated in December 2014. The railway line is part of the ambitious International North South Transport Corridor (INSTC), which is a ship, rail, and road route for moving freight between India, Russia, Iran, Europe and Central Asia.