Home » The situation in Kazakhstan has deteriorated, and China’s “One Belt, One Road” is in trouble (Picture) Natural Gas | Energy | Economy | Financial Observation | Wenlong

The situation in Kazakhstan has deteriorated, and China’s “One Belt, One Road” is in trouble (Picture) Natural Gas | Energy | Economy | Financial Observation | Wenlong

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The Beijing authorities implement the “One Belt, One Road” plan, and Kazakhstan has a pivotal role. (Image source: Adobe Stock)

[Look at the news from China on January 6, 2022](Look at the comprehensive report by Chinese reporter Wenlong)KazakhstanThe situation has deteriorated and the country has entered a state of emergency. There is news thatnatural gasWaitenergyPublic demonstrations triggered by problems. It is worth noting that the “One Belt One Road“In the plan, Kazakhstan has a pivotaleconomyRole.

According to local media reports in Kazakhstan, on January 5 local time, President Tokayev of Kazakhstan signed a presidential decree, and Kazakhstan entered a state of emergency, which ended at midnight on January 19.

At present, various media reports indicate that the Kazakhstan government’s increase in natural gas prices is an incentive for public demonstrations. From January 1, 2022, the government of Kazakhstan increased the price of LNG in Mangystau State from 60 tenge (Tenge) per liter to 120 tenge (100 tenge equivalent to 0.23 U.S. dollars), arousing public dissatisfaction. Subsequently, the government quickly cut prices, but it still failed to quell popular anger.

From the end of 2021 to the present, the price of natural gas in Europe has risen by as much as 800%, and the price of electricity has also soared. According to data from the European Natural Gas Infrastructure Association, the current European natural gas inventory is only 68% of the full load level, and the situation is not optimistic.

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Kazakhstan is rich in natural resources, especially solid mineral resources. There are more than 90 kinds of mineral deposits, more than 1,200 kinds of mineral raw materials, and more than 500 proven black, non-ferrous, rare and precious metal minerals. Many mineral reserves account for a high proportion of global reserves, such as tungsten more than 50%, chromium ore 23%, lead 19%, zinc 13%, copper and iron 10%, and many varieties rank among the best in the world by reserves. Especially as the world‘s largest uranium producer, Kazakhstan’s uranium production accounts for about 41% of the world‘s uranium production by 2020.

The latest data from the nuclear fuel market research and analysis company UxC shows that due to the continued protests in Kazakhstan, the price of uranium on the international trading platform has risen from US$42 per pound to US$45.25 per pound on January 5, an increase of nearly 8%.

In addition, Kazakhstan is very rich in oil reserves, with proven reserves ranking seventh in the world and second in the CIS countries. According to data released by the Kazakhstan Reserve Committee, Kazakhstan currently has 4 billion tons of recoverable oil reserves, and Kazakhstan has proven recoverable natural gas reserves of 3.8 trillion cubic meters.

Kazakhstan has such a huge amount of natural gas reserves, so it remains to be seen whether price increases are the main cause of public demonstrations.

However, it is worth noting that Kazakhstan has a pivotal economic role in the “Belt and Road” plan implemented by the Beijing authorities. How will this conflict affect China-Kazakhstan relations and the development of the “Belt and Road” initiative?

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On January 6, according to Radio Free Asia’s report, Sun Chaoqun, a researcher at the Hong Kong Institute of International Studies, pointed out that when demonstrations broke out in Central Asia, China was usually more worried about local “Belt and Road” investment projects and whether these demonstrations would in turn trigger local protests. Xenophobic emotions. “In 2019, there was also a demonstration in Kyrgyzstan… China also has a lot of resource investments in Kazakhstan, such as a lot of oil, natural gas, and uranium mines used to generate nuclear power, many of which are imported from Kazakhstan. China. China will also worry about whether the demonstrations will affect the supply of the resource chain in Central Asia and so on.”

China National Petroleum Corporation (CNPC) acquired Kazakhstan’s largest oil field Kashagan for US$5 billion a few years ago; in 2017, China reached a cooperation agreement with KazMunaiGas. Kazakhstan promises to export natural gas to China every year, and Kazakhstan’s total revenue from this is as high as 1 billion U.S. dollars.

According to statistics from the mainland media, China is Kazakhstan’s second largest trading partner. According to statistics from the Ministry of Commerce of China, as of the end of 2020, China has invested USD 21.4 billion in Kazakhstan in various fields, mainly in mining, transportation and other fields.

Serkejian, who has been concerned about the human rights situation in Xinjiang for a long time, said that Almaty, Kazakhstan is only more than 300 kilometers away from Xinjiang, which serves as a “window” for understanding the situation in Xinjiang. Of LPG and natural gas pipelines.”

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After the Beijing authorities launched the “One Belt One Road” plan in 2013, the official media compared this huge infrastructure development project with the ancient “Silk Road”.

The “One Belt One Road” plan provides loans to low-income developing countries for the construction of large-scale infrastructure from roads to ports. However, some low-income countries are in crisis due to their inability to repay their debts. Therefore, the “Belt and Road” plan is called a “debt trap” by the outside world.

Editor in charge: Xin He Source: Look at China

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