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Georgian security arrests men with radioactive substance

JAN. 13 2016 (The Conway Bulletin) – Georgian security forces arrested three men for stealing Cesium-137, media reported, a highly radioactive substance that can be used to create a so-called dirty bomb. Reports gave little information on the arrests other than appearing to confirm that all three men were Georgian nationals. Security forces have previously arrested people in Tbilisi for stealing and trying to sell Cesium-137.

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(News report from Issue No. 263, published on Jan. 15 2016)

Investment in Kazakhstan drops

JAN. 12 2016, ALMATY (The Conway Bulletin) — Data from the Kazakh Central Bank showed that Foreign Direct Investment (FDI) into the country has collapsed to its lowest level for a decade.

In the first nine months of 2015, FDI into Kazakhstan measured $2.1b. Total FDI in 2014 was $8.3 and in 2010 was 10.4b.

The new data is yet more evidence of the sharp slowdown in the Kazakh economy, as well as the impact of the 50% fall in the value of the tenge.

Economists have forecast a slowdown in economic growth in Kazakhstan, expected to last into 2017 and 2018, linked to low oil prices and a recession in Russia.

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(News report from Issue No. 263, published on Jan. 15 2016)

Tajikistan says it’s unhappy with progress on oil and gas field

DUSHANBE, JAN. 12 2016, (The Conway Bulletin) — The Tajik government said it was dissatisfied with the progress of the Bokhtar Operating Company, a joint venture between Tethys Petroleum, Total and CNPC which is exploring the country’s most promising oil field.

Murod Jumazoda, head of the government’s Geology Department, said the consortium was developing the site too slowly and that this could result in the government seizing 25% of the licensed area.

“They [the companies forming the joint venture] will have to return 25% of the oil and gas exploration area to the government this year,” Mr Jumazoda said at a press conference.

According to Tajik law, the government has the right to take back up to 25% of a licensed oil and gas area that has failed to produce within seven years of the license being granted. But Tethys, which is listed on the London stock exchange, disagreed with the government’s interpretation of the law.

“The first relinquishment is not due until 2020,” a PR agency speaking on behalf of Tethys told The Conway Bulletin.

This may become controversial as it was in 2008 that the Tajik government awarded Tethys an exploration licence to explore a 36,000 square km area around 100km south of Dushanbe for oil and gas.

But, and this is probably what Tethys’ PR agency was alluding to, the present composition of the Bokhtar Operating Company, owned by Tethys Petroleum, CNPC and Total, was finalised in 2013.

According to Tethys’ calculations, the field holds around 27.5b barrels of oil equivalent of recoverable resources. For Tajikistan, which is resource poor, this is a tantalising prospect.

Tethys is the lead operator of the Bokhtar Operating Company.

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(News report from Issue No. 263, published on Jan. 15 2016)

Czech company boosts deliveries to Uzbekistan

JAN. 13 2016 (The Conway Bulletin) — Czech engineering company Armatury Group delivered valves worth €3m ($3.3m) to Eriell, a service company operating in Uzbekistan’s oil fields, according to the group’s press release. Eriell, a Russian drilling company, is a supplier to another Russian company, Lukoil, which operates several oil and gas projects in Uzbekistan. The valves will be installed at a compressor station in the South Kemachi oil and gas condensate field, near Uzbekistan’s border with Turkmenistan.

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(News report from Issue No. 263, published on Jan. 15 2016)

Teliasonera writes off $622m of value from its Uzbek operations

JAN. 14 2016 (The Conway Bulletin) — Swedish telecoms company TeliaSonera effectively slashed the value of its assets in Uzbekistan by 5.3b Swedish kronor ($622m) to speed up a fire sale of its unit which it considers toxic after it was heavily implicated in a major corruption scandal.

Since last September, TeliaSonera has sought to sell off its businesses in Central Asia and the South Caucasus so that it can concentrate on its core mobile and data services in Europe.

TeliaSonera is under investigation in the Netherlands, Sweden and the US over its acquisition of mobile licenses in Uzbekistan in 2007. Prosecutors say the deal involved paying large bribes to the Uzbek president’s eldest daughter, Gulnara Karimova. Rival Norwegian telecoms company Telenor has also been accused of bribing Uzbek officials.

The cut in value of Teliasonera’s Uzbek assets, which will be booked on its Q4 2015 operations, is part of a 7.2b Swedish kronor ($845m) cut in the company’s global assets.

“We are well on track shaping the new TeliaSonera and the process to reduce our presence in Eurasia continues,” Teliasonera CEO, Johan Dennelind, said in a statement.

“As a consequence of this progress and current status in the overall divestment process, Region Eurasia will be reported as discontinued operations. When doing this we are obliged to change valuation method for these operations. This has resulted in an impairment charge relating to our operations in Uzbekistan.”

In its forthcoming 2015 annual report, due later this month, TeliaSonera will block out results from the Eurasia region and tag it “held for sale”.

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(News report from Issue No. 263, published on Jan. 15 2016)

Georgian President approves redistricting

JAN. 8 2016 (The Conway Bulletin) – Georgian president Giorgi Margvelashvili signed into law a redistricting of constitutional boundaries, part of a move in Georgia to do away with so-called majoritarian seats in parliament. Of Georgia’s 150-seat parliament, 103 are made up of majoritarian, although the size of these seats varies from 9,000 to 150,000 people. The redistricting is the first step in a process designed to even out this imbalance.

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(News report from Issue No. 263, published on Jan. 15 2016)

Kazakhstan signals early parliamentary election

JAN. 13 2016, ALMATY (The Conway Bulletin) — Kazakhstan will likely hold a parliamentary election this year after MPs officially asked President Nursultan Nazarbayev to dissolve the current parliament.

They said that parliament had achieved the mandate it was given at the start of the current parliamentary cycle, although with the Kazakh economy in a perilous state, they may also have decided that it would be far better to deal with an election now rather than wait until 2017.

Kazakhstan’s 107-seat Lower Chamber voted unanimously to approve the dissolution of parliament in what was likely a choreographed decision. All 107 seats are held by pro-Nazarbayev MPs with his Nur Otan party dominating the chamber.

Last year, Kazakhstan also brought forward its presidential election by two years, officially to avoid a clash with the parliamentary election set for 2017.

Election monitors said that by bringing forward the presidential election, Mr Nazarbyaev was able to wrong foot opponents and secure an easy re-election.

Since independence from the Soviet Union in 1991, Kazakhstan has never held an election judged free and fair by Western election monitors.

Under Kazakh law, after officially consulting with the Speakers of the Lower and Upper Chambers of Parliament as well as with Prime Minister, President Nazarbayev can call an early parliamentary election.

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(News report from Issue No. 263, published on Jan. 15 2016)

Car sales drop in Kazakhstan

JAN. 11 2016 (The Conway Bulletin) — The Association the Kazakh Auto- mobile Business said authorised dealers in the country sold cars worth $1.9b in Jan.-Nov. 2015, about 43% less than than the same period last year. The Association also said that sales of cars produced in Kazakhstan fell by 50% to around $355m.

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(News report from Issue No. 263, published on Jan. 15 2016)

UK’s Alpha and Uzbekistan’s Fayz Farm sign deal

JAN. 14 2016 (The Conway Bulletin) — UK-based Alpha Pharm Trading and Uzbekistan’s Fayz Farm signed a deal to create a joint venture to produce medicines in the Navoi free industrial economic zone. The joint venture, called Novo Farm Komplekt, will invest $3.7m in a factory and distribution centre for pharmaceutical products.

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(News report from Issue No. 263, published on Jan. 15 2016)

Kyrgyz directors at Centerra Gold argued against shares

BISHKEK, JAN. 13 2016, (The Conway Bulletin) — In an interview with local media, senior Kyrgyz government officials said they had pushed hard against the issue of an extra 4.6m shares in Centerra Gold, the Canadian mining company in which Kyrgyzstan owns a 32.7% stake.

Centerra Gold owns the Kumtor gold mine, Kyrgyzstan’s most important economic asset. The interview with local media again shows how far apart Kyrgyzstan and Centerra Gold are on their various strategies.

Kylychbek Shakirov, a government-appointed board member at Centerra Gold, told media that he and his two Kyrgyz colleagues voted against issuing the shares, as this measure would dilute the total stake that Kyrgyzstan owns in the company.

“The Board of Directors of the company at the extraordinary session on December 17, 2015, made the decision to issue 4.6m additional shares,” Mr Shakirov said.

“We failed to achieve cancellation of the previous decision because three members of the board voted against issuance of new stocks and 8 members voted for it.”

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(News report from Issue No. 263, published on Jan. 15 2016)