Joanna Lillis provides an in-depth look at Kazakhstan, highlighting its strategic position in Central Asia, its complex history, and its development into a monocracy under former President Nursultan Nazarbayev. The book covers events including Nazarbayev's fall from power, the Chinese government's actions against Kazakhs in Xinjiang, and the January 2022 events in Almaty.

Afghanistan has cleared its multimillion-dollar electricity debt to Uzbekistan for 2021 and is up-to-date with payments for 2022. The exact debt amount was not disclosed, but it was part of a $100 million total owed to Uzbekistan and Tajikistan. Tajikistan, however, has not received full payment and is still owed $28 million. Afghanistan imports over 80% of its electricity, primarily from Uzbekistan and Tajikistan, under long-term agreements. Both countries have continued supplying power despite the debts. Uzbekistan has also agreed to resume a stalled power supply line project with Afghanistan.

The U.S. has imposed secondary sanctions on Uzbekistan's Promcomplektlogistic Private Company for its involvement with the Russian firm Radioavtomatika, which is under U.S. sanctions for procuring items for Russia's defense industry. This action, marking the first time a Central Asian company has been sanctioned in this manner since the invasion of Ukraine, aims to prevent collusion in sanctions evasion and sends a warning to others against dealing with sanctioned Russian entities. The sanctions will exclude Promcomplektlogistic from the U.S. financial system and prohibit American companies from transacting with it.

At the St Petersburg International Economic Forum, tensions between Kazakhstan and Russia over the Ukraine war became public. Kazakh President Kassym-Jomart Tokayev rejected territorial claims made by Russian commentators and reaffirmed his country's stance of not recognizing Moscow-backed breakaway territories in Ukraine. Russian President Vladimir Putin's remarks about the former Soviet Union being 'historical Russia' raised concerns among former Soviet states. Russian MP Konstantin Zatulin responded to Tokayev's comments with threats to Kazakhstan's territorial integrity. Tokayev also addressed incorrect statements about Kazakhstan by Russian pundits and rejected the notion that Kazakhstan owes Russia for its assistance during civil unrest in January.

Bread prices in Uzbekistan have surged following the government's cessation of grain purchase subsidies amid the Ukraine war's impact on global food supplies. A standard loaf in Tashkent increased by 75%, causing public concern. President Shavkat Mirziyoyev's market reforms, including the end of state regulation of flour prices, aim to boost domestic flour output and incentivize private millers. Despite the Anti-Monopoly Committee's call for calm, the price hikes have potential for popular discontent. Mirziyoyev has warned against unjustified price increases, labeling them as sabotage.

Bread prices in Uzbekistan have surged following the government's cessation of grain purchase subsidies amid the Ukraine war's impact on global food supplies. A standard loaf in Tashkent increased by 75% overnight, and a flatbread by about 25%. The Anti-Monopoly Committee called for calm and offered hotlines for price gouging reports. President Shavkat Mirziyoyev's market reforms, including the end of state regulation of flour prices, aim to incentivize private production and increase domestic flour output. Despite the price hikes, the government expects liberalization to boost grain production and reduce imports. State-run grain producer Uzdonmahsulot, now competing with private millers, has been less efficient and accumulated significant debt. Mirziyoyev has warned against unjustified price increases, labeling them as sabotage.

Since Russia's invasion of Ukraine, nearly 12,000 bank accounts have been opened by Russians and Belarusians in Kazakhstan, an 8% increase, to circumvent financial sanctions. Kazakhstan's financial regulator reported this surge, emphasizing that due diligence and ID checks are conducted. Russians and Belarusians, as part of the Eurasian Economic Union, enjoy simplified residence and employment rules in Kazakhstan. Additionally, Russian travel agencies are attracting clients to Uzbekistan with special packages for opening bank accounts.

Since Russia's invasion of Ukraine, nearly 12,000 bank accounts have been opened by Russians and Belarusians in Kazakhstan, an 8 percent increase, to circumvent financial sanctions. The total number of accounts now stands at 162,000, with the majority being personal accounts. The influx is facilitated by the Eurasian Economic Union's simplified rules, although no special advantages are given for obtaining ID numbers or opening accounts. Due diligence and ID checks are conducted for new customers. Additionally, Russian travel agencies are offering tours to Uzbekistan for the purpose of opening bank accounts.

Kazakhstan is set to launch an online system in April to monitor goods entering and exiting the country, aiming to prevent the circumvention of Western sanctions against Russia. Despite not applying sanctions to Russia, Kazakhstan seeks to avoid secondary sanctions and maintain relations with both Russia and Western countries. The country faces challenges due to its membership in the Eurasian Economic Union with Russia and the increase in re-exported goods like advanced semiconductors. The European Bank for Reconstruction and Development has noted a rise in intermediated trade that may help Russia bypass sanctions. The US and Kazakhstan have been cooperating to prevent sanctions evasion, and no secondary sanctions have been imposed on Kazakhstan, though an Uzbek company has been penalized. Kazakh officials are advising businesses to be cautious in trading with Russia under the current conditions.

Over a year after President Kassym-Jomart Tokayev ordered a crackdown on smuggling at the Sino-Kazakh border, contraband remains prevalent. Ardak Tengebayev of Kazakhstan’s Supreme Audit Chamber reported significant underreporting of goods exported from China to Kazakhstan. Discrepancies in customs data have been attributed to different reporting methods and alleged incompetence in customs administration. Tokayev's anti-smuggling efforts were seen as a move against the economic influence of Nursultan Nazarbayev's family. Despite initial progress in reducing the disparity between Kazakh and Chinese customs statistics, the gap has widened again, with recent figures showing a 34-38% discrepancy.

Kazakhstan's state-owned nuclear company, Kazatomprom, has delivered a batch of uranium to Canada via the Middle Corridor, bypassing Russia due to sanctions. The Trans-Caspian International Transport Route (TITR) has been used by Kazatomprom since 2018 as an alternative to the primary route through St. Petersburg. The shipment, which included contributions from Inkai, a joint venture with Canadian firm Cameco, faced delays due to infrastructure bottlenecks in Azerbaijan and Georgia. Freight traffic along the Middle Corridor has increased significantly since Russia's invasion of Ukraine. Kazakhstan also plans to export oil via this route.

Chinese car manufacturers like Chery and BYD Auto are expanding in Central Asia, particularly in Uzbekistan and Kazakhstan, as Russian automotive firms face setbacks due to international sanctions. Chery has started selling four SUV models assembled at the ADM Jizzakh factory in Uzbekistan and plans to open 23 dealerships by 2024. The brand has seen significant sales growth in Kazakhstan, becoming one of the top-selling brands after entering a distribution agreement with Astana Motors. A new factory is planned to be built in the Almaty industrial zone by 2025 to produce cars for export to post-Soviet countries. Meanwhile, Kazakh car manufacturing has increased, with JAC becoming the fifth-most popular car in Kazakhstan. The sanctions on Russia have created an opportunity for Chinese manufacturers to fill the market gap, as many Japanese and European models were previously manufactured in Russia.

Chinese President Xi Jinping, during his visit to Kazakhstan, made a strong statement supporting Kazakhstan's territorial integrity and sovereignty, and opposed any interference in its internal affairs. This statement comes ahead of his meeting with Russian President Vladimir Putin at the Shanghai Cooperation Organisation summit in Uzbekistan. Xi's visit marks his first trip outside China since January 2020 and is seen as a sign of Beijing's support for Kazakhstan amidst regional tensions with Russia. Putin is perceived as weakened due to recent Russian military setbacks in Ukraine.

Kazakhstan has seen a significant increase in recorded bribery cases, with a 33% rise in the first half of 2022 compared to the previous year. The number of people caught giving bribes also increased by 13%. This uptick in arrests may reflect either a growth in corruption or a stronger political will to combat it, especially after the Bloody January protests fueled by anger over corruption. President Kassym-Jomart Tokayev has vowed to tackle corruption and oligopoly following the unrest. Efforts include recovering nearly half a billion dollars in assets linked to former President Nursultan Nazarbayev's relatives and associates. However, curbing corruption faces challenges due to resistance from within the system, as law enforcement and state officials constitute the majority of corruption suspects.

The Russian economy's downturn due to sanctions and the war in Ukraine is causing a decline in remittances from Central Asian labor migrants, impacting families in Kyrgyzstan, Tajikistan, and Uzbekistan. As Russia becomes less attractive for migrants, the UK is emerging as an alternative destination, recruiting Central Asians for farm labor to address Brexit-related shortages. Kyrgyzstan's government has already signed an agreement to send workers to the UK, with a high number of applications for the available positions. The World Bank predicts significant drops in remittances to Central Asia, underscoring the risks of reliance on this income. While the number of Central Asians migrating to the UK is currently small, it represents a welcome alternative as Russia's economic future remains uncertain.

Afghanistan owes Uzbekistan and Tajikistan $100 million for electricity supplies, but is unable to pay due to international sanctions against the Taliban government. The country imports over 80% of its electricity, primarily from Uzbekistan, followed by Tajikistan. Despite the debts, neither country has cut off power, which would affect over 10 million Afghans. The UNDP has linked the unpaid bills to the freeze on Afghanistan's assets and a decline in international aid since the Taliban's rise to power.

Uzbekistan's efforts to attract investors through a transparency mantra are being undermined by social media discussions and investigative reports suggesting cronyism among senior officials. The Pandora Papers implicated the wife of Deputy Prime Minister Sardor Umurzakov and the spouse of First Deputy Prime Minister Achilbay Ramatov, raising questions about conflicts of interest. The Orient Group, linked to President Mirziyoyev's family, was reported to have benefited from undervalued state asset transactions. Additionally, journalists faced intimidation when reporting on the opaque activities of a charitable foundation linked to another figure named in the Pandora Papers.