Author Archives: admin

Business comment: IMF’s reforming zeal

OCT. 23 2015 (The Conway Bulletin) — The South Caucasus and Central Asia might be looking at a long term economic crisis, the IMF said, sending a chill down the spines of the region’s investors.

After the shock of the 2008/9 financial crisis, countries across the region picked up pace and restored the steady growth pattern they had witnessed in the early 2000s.

But the current crisis, which Kazakhstan’s President Nursultan Nazarbayev called worse than the 2008/9 financial crunch, could linger on for longer than expected because of its ripple effects on the Russian economy, the IMF said.

Lower oil prices have affected hydrocarbon exporters from the region – big and small, private and state. Several exploration and production projects have become unprofitable and revenues have lost value. The IMF forecast a break- even price of around $60/barrel or higher for both Azerbaijan and Kazakhstan. If oil prices are lower, debt will grow and reserves will shrink.

Tajikistan, Kyrgyzstan and Armenia, had been forecasted to be better off due to lower oil prices, but the fall in the rouble has reduced the value of their remittances and pressured currencies.

And the IMF had a message. Reform is the only option, it said.

“The long-lasting nature of the shocks means that deeper and more durable policy changes will be needed,” Juha Kähkönen, deputy director of the IMF in Almaty said.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Kazakhstan can impose Karachaganak fine

OCT. 27 2015 (The Conway Bulletin) – The Kazakh government could impose a $2b penalty on the consortium operating the Karachaganak gas field, Bloomberg News quoted sources as saying.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Nostrum cuts expectations in Kazakhstan

OCT. 27 2015 (The Conway Bulletin) — Hit by delays in infrastructure maintenance, London-listed Nostrum Oil & Gas reduced its production target for 2015 by 9% to 41,000 barrels of oil equivalent per day. In its Q3 statement, Nostrum said repair work at a Kazakh state-owned gas export pipeline was now complete and production was back to normal.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Microsoft launches programme in Armenia

OCT. 23 2015 (The Conway Bulletin) — US’ Microsoft launched a new so- called acceleration programme for start-up companies at its Innovation Centre in Armenia. People working on 14 new projects selected for the programme will receive in- depth training in California, Australia and Russia. Armenia has been looking to attract increased investment from tech start-ups over the past few years and has brokered various deals with Microsoft.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Azerbaijan could join EEU, says minister

OCT. 26 2015 (The Conway Bulletin) – Azerbaijan said for the first time that it could join the Kremlin-led Eurasian Economic Union. At a press conference in Baku, deputy economy minister Sevinj Hasanova said: “We are analysing how our participation in the World Trade Organisation is useful. Therefore, Azerbaijan’s joining the EEU or other organisations should be analysed.”

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

SPA nominates Azerbaijan’s first lady for a rights prize

OCT. 23 2015 (The Conway Bulletin) – The Swedish Peace Agency, an obscure human rights group based in Gothenburg, has nominated Mehriban Aliyeva, wife of Azerbaijani president Ilham Aliyev, for a human rights prize for promoting women’s rights. Human rights groups have criticised Azerbaijan this year for clamping down on human rights.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Georgia’s court relaxes marijuana laws

OCT. 25 2015, TBILISI (The Conway Bulletin) — Georgia moved a step closer to decriminalising the recreational use of marijuana after its Constitutional Court ruled that possessing 70g of the drug should not lead to a prison sentence.

The ruling means that Georgia now has some of the most lax laws on marijuana possession in the former Soviet Union.

The Constitutional Court was called to rule on the case of Beka Tsikarishvili who was arrested in 2013 and faced a prison sentence for carrying 69g of marijuana. His supporters have stage rallies which have attracted hundreds of people.

“The purchase and possession of marijuana for personal use does not qualify for a prison sentence,” the court said in a note on its website.

Previously, carrying 50-500g of marijuana could lead to a prison sentence of up to 14 years.

Supporters of decriminalising marijuana cheered the court’s decision, calling it a “huge step forward”.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Kazakhstan’s Samruk-Kazyna gets Kashagan loan

OCT. 27 2015 (The Conway Bulletin) – Samruk-Kazyna, Kazakhstan’s sovereign wealth fund, signed a five-year loan agreement for up to $1.5b to help fund its purchase of a 8.4% stake in the Kashagan oil field. Kazmunaigas, Kazakhstan’s state-owned energy company, agreed earlier this year to sell half its 16.81% stake in Kashagan to Samruk–Kazyna. The manoeuvre is considered a mechanism to help Kazmunaigas raise funds during this period of depressed oil prices.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Kyrgyzstan-Tajikistan attempt to resolve border dispute

OCT. 27 2015 (The Conway Bulletin) – Senior officials from Kyrgyzstan and Tajikistan agreed to meet on Nov. 5 in Bishkek to try and resolve the long running issue of border demarcation. Border disputes have strained relations between the two countries since independence.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

TAPI shareholders sign deal in Turkmen capital

OCT. 24 2015 (The Conway Bulletin) — TAPI consortium members signed a deal described by the Asian Development Bank as a milestone shareholders’ agreement at a meeting in Ashgabat, an important step towards turning TAPI from a paper project into a real project. The TAPI project aims to build a pipeline to pump Turkmen gas to India, across Afghanistan and Pakistan.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)