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House prices fall in Kazakhstan

JAN. 9 2017 (The Conway Bulletin) — The price of new housing in Kazakhstan, considered a key economic indicator, was 3.6% lower in December 2016 than 12 months earlier, media reported quoting the economy ministry. This is still slower than the fall in older houses which analysts said was down by up to 15% in 2016. Kazakhstan’s economy has been hit by a collapse in oil prices and the fall in the value of the tenge.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Kapparova quits KazInvestBank

JAN. 11 2017 (The Conway Bulletin) — Gahaur Kapparova, the widow of the former head of Kazatomprom, the Kazakh nuclear agency, has quit her 10% stake in KazInvestBank, less than two weeks after the Central Bank pulled its banking licence. According to data filed at the Kazakh Stock Exchange, the biggest shareholder in KazInvestBank is now Nurzhan Dzhanabekov, the bank’s CEO, with 15.3%. Ms Kapparova’s husband, Nurlan Kapparov, died from a heart attack during a business trip to China in 2015.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Fruit exports rise in Azerbaijan

JAN. 12 2017 (The Conway Bulletin) — Azerbaijan’s agricultural exports in the first 11 months of 2016 totalled $381m, a rise of 21.6% from 2015, the fruit-inform.com website reported. Most of the export increase was in fruit and vegetables. Azerbaijan is a major regional fruit and vegetable exporter although its value pales in comparison to oil and gas export volumes. Still, although the volume is small, it is also important. Azerbaijan’s government has said that it wants to diversify the country’s economy.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Kazakh President hints at changing constitution

ALMATY, JAN. 11 2017 (The Conway Bulletin) — Kazakh president Nursultan Nazarbayev hinted that he would change the country’s constitution to redistribute power from the presidential office to parliament and other executives bodies.

No details were given of Mr Nazarbayev’s plans but it does appear to be an attempt to smooth the transition of power. Mr Nazarbayev has not named a successor and analysts have been left wondering just how he is going to manage the transition.

Since independence from the Soviet Union in 1991, Mr Nazarbayev has amassed great power, tinkering with the constitution several times.

He may be aiming to reduce the power of the president to set up a system which distributes influence between roles more evenly.

This is a pattern set by some of Kazakhstan’s regional neighbours. Kyrgyzstan has boosted the power of the PM’s office, as has Georgia in the South Caucasus.

One of the favourites to succeed Mr Nazarbayev is his eldest daughter Dariga.

Other high-ranking Kazakhs touted as potential future leaders include Imangali Tasmagambetov, a deputy prime minister and Timur Kulibayev, Mr Nazarbayev’s son-in- law and the husband of Dinara Nazarbayeva.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Israeli President visits Georgia

JAN. 9/10 2017 (The Conway Bulletin) — Israeli President Reuven Rivlin flew to Georgia for a 2-day state visit and for meetings with Georgian President Giorgi Margvelashvili and PM Giorgi Kvirikashvili. The trip was being hailed as an advert for the close relations between the two countries. Last year a subsidiary of Israel’s Elbit Systems said it would set up a factory in Georgia to produce parts for passenger planes.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Azerbaijan starts Israeli drone production

JAN. 10 2017 (The Conway Bulletin) — Azerbaijan’s Azad Systems started manufacturing a version of an Israeli drone, media reported. Azerbaijan-Israel ties have improved over the past half a decade. Israel buys oil from Azerbaijan. Azerbaijan buys military equipment from Israel. Azerbaijan has spent heavily on improving its military and military-industrial base over the past few years.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Uranium traders see better prices in 2017 after Kazatomprom signals move

JAN. 13 2017 (The Conway Bulletin) — It’s been a rough sort of five years for the uranium traders and for the globe’s biggest producers.

At the top of this pile is Kazakhstan which has relentlessly pursued a market-grabbing agenda. It now controls over 40% of the world’s uranium production. Now, though, as reported on page 9, it appears to have signalled that it wants a higher price for its unprocessed uranium product, more often called yellowcake.

By holding back 3% of the world’s production, Kazakhstan’s pushed prices for uranium up by 10%.

And traders are cheering. Ever since a tsunami crashed into the Fukushima nuclear power plant in Japan in 2011, the market has been supply-side heavy. The tsunami wiped out a major buyer of yellowcake. Since then prices had dropped 75% before picking up slightly at the end of this year.

The problem for the industry is that stocks of yellowcake are so high that it will take Kazatomprom showing restraint for years to allow their production cuts to really take hold on the market.

Until then, uranium traders and producers are hoping, for demand to pick up and for this they are looking to incoming US president Donald Trump.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Kazakhstan’s Mangistaumunaigas to keep output steady

JAN. 6 2017 (The Conway Bulletin) — Mangistaumunaigas, the troubled state-owned oil producer near Zhanaozen in the west of Kazakhstan, will maintain its oil output at around 6.3m tonnes in 2017, media reported quoting CEO Bakyt Imanbaev. Mangistaumunaigas runs at a loss but the government has committed to keeping it open and maintaining jobs to avoid a repeat of the strikes in 2011 that triggered riots and the shooting dead of at least 15 protesters by police sent into quell the violence.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Kazakh police arrest ex-economy minister

ALMATY, JAN. 10 2017 (The Conway Bulletin) — Police in Kazakhstan arrested the former economy minister, Kuandyk Bishimbayev, for alleged links to a corruption scheme at the country’s state-owned Baiterek holding company.

Kazakh president Nursultan Nazarbayev sacked Mr Bishimbayev, 36, as economy minister on Dec. 28.

He had only been in the job since May. for the previous three years he had been chairman of Baiterek holding company which administers the state’s shareholdings in various companies.

Several senior executives at Baiterek have been arrested over the past few weeks on bribe-taking allegations. The main focus is Baiterek Development, the holding company’s real estate unit.

Kazakhstan has been hit by several high-profile corruption scandals in the past year.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Tax pushes up inflation in Georgia

JAN. 3 2016 (The Conway Bulletin) — Georgia’s state statistics committee said that annualised inflation in Georgia measured 1.8% in December, a sharp increase from 0.2% measured in November. This increase was expected because of a rise in excise duty imposed on alcohol and cigarettes. Deflation has been stalking Georgia’s economy, a reflection of the tough economic times hitting the region.

ENDS

(News report from Issue No. 311, published on Jan. 6 2017)