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Uzbek government set up to attract investments

APRIL 13 2017 (The Conway Bulletin) — Uzbek president Shavkat Mirziyoyev has signed a law on setting up a government unit specifically to attract foreign investment, media reported. The State Committee for Investments will also be tasked with ensuring that the foreign investment is directed properly. President Shavkat Mirziyoyev, in power since September last year, has said that he wants to attract more foreign investors.

ENDS

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(News report from Issue No. 324, published on April 13 2017)

Bridge-banks set up to help ailing banking sector in Azerbaijan

APRIL 7 2017 (The Conway Bulletin) — Azerbaijani MPs have passed a law allowing banks weighed down by debt to transfer their good assets to so-called bridge-banks, media reported. The concept, which inadvertently suggests that the Azerbaijani banking crisis is deepening, suggests that these bridge-banks are then able to re- package the sound assets into new banks which can then be sold on. Several small banks have been closed down in Azerbaijan over the past few years and the government this year bought a controlling state in International Bank of Azerbaijan, the country’s largest bank.

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(News report from Issue No. 324, published on April 13 2017)

Azerbaijan BTC throughput falls

APRIL 5 2017 (The Conway Bulletin) — Azerbaijan’s state oil and gas company Socar said that the amount of oil pumped through the Baku-Tbilisi-Ceyhan pipeline (BTC) had fallen by more than 11% in the first three months of the year, media reported. The fall is linked to a drop in oil being produced by fields in the region, a drop triggered by the collapse in oil prices from $110/barrel in mid-2014 to under $30/barrel in Jan. 2016 and around $50/barrel now. Azearbaijan has exported less oil via BTC and Kazakh producers have turned to the cheaper CPC pipeline that runs around the Caspian Sea to Novorossiya on Russia’s Black Sea coast.

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(News report from Issue No. 324, published on April 13 2017)f

 

Georgian president rows with ex-GD colleagues

TBILISI, APRIL 7 2017 (The Conway Bulletin) — In his annual address to Parliament, Georgian President Giorgi Margvelashvili accused the ruling Georgian Dream party of hampering the democratic development of the country, reflecting the growing rift between the head of state and his former parliamentary colleagues.

Mr Margvelashvili main frustrations were the concentration of power in the hands of the ruling party, the lack of dialogue with the opposition and constitutional reforms which will turn the presidency into a token position.

Last year the Georgian Dream crushed its main rival, the United National Movement party of former president Mikheil Saakashvili in a parliamentary election. It won an outright majority but Mr Margvelashvili said that it had failed to achieve any lasting good despite its dominance.

“Last November, I addressed the newly elected parliament and said the formation of a constitutional majority raised the threat of concentration of power, but at the same time raised the prospect of bold reforms and initiatives,” he said. “What do we actually have five months later? The potential threat has become a serious problem, and the dynamics of reforms are not impressive.”

Mr Margvelashvili was elected president in 2013 as Georgian Dream’s candidate. However, his relationship with the ruling party has collapsed.

Ghia Nodia, professor of politics and director of the International School of Caucasus Studies in Ilia Chavchavadze State University in Tbilisi, said that the row between Mr Margvelashvili and Bidzina Ivanishvili, Georgia’s richest man and the power behind the Georgian Dream, had become a personal matter.

“The President is considered to be a traitor,” he said. “I don’t think the President wanted a conflict but to be loyal to Ivanishvili is a condition of the Georgian Dream coalition but Margvelashvili decided to be independent and to be a protector of the constitution.”

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(News report from Issue No. 324, published on April 13 2017)

Gazprom pays knockdown price for Uzbek gas

APRIL 12 2017 (The Conway Bulletin) — Russian media reported that Gazprom will pay only $125/1,000 cubic metres of gas from Uzbekistan, a relatively low amount. The supply deal between Uzbekistan and Gazprom had been struck at the beginning of April when Uzbek President Shavkat Mirziyoyev visited Moscow and was hailed as a groundbreaking agreement. Analysts, though, have said that a price of $125/1,000 cubic metres is low and represents only $2.5b/year for the five year contract.

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(News report from Issue No. 324, published on April 13 2017)

 

Swedish police arrest Uzbek for terror attack

APRIL 9 2017 (The Conway Bulletin) — Swedish police arrested a 39-year-old Uzbek man and accused him of hijacking a truck which he then drove into a department store in central Stockholm, killing four people.

The unnamed man was the second Central Asian to be accused of attacking and killing civilians in a week. On April 3 an Uzbek man from Kyrgyzstan blew himself up on the St Petersburg metro, killing 15 people.

The attack in Sweden has again turned the international spotlight onto Central Asia as a fertile recruitment ground for the radical IS group.

Analysts and experts have said much of the IS recruitment occurs in Russia where young men from Central Asia move to find work.

Central Asia’s leaders have been talking up the difficulties of stopping recruitment drives by the IS extremist group. Last year, on a visit by German Chancellor Angela Merkel to Bishkek, Kyrgyz president Almazbek Atambayev said that the recruitment system was proving more robust than anticipated.

Last week, in the aftermath of the St Petersburg attack, Uzbek President Shavkat Mirziyoyev pledged to crackdown on terrorist recruitment.

“What happened in St. Petersburg is a terrorist attack and terrorism does not have any borders, nationality or faith. This is our common pain, and this signals that we need to join forces here,” he was quoted as saying.

Details of the Swedish attacker are still emerging but media has reported that he was a failed asylum seeker who had been marked down for deportation. He avoided police, though, by giving them a false address and moving to a suburb of Stockholm known for its migrant communities.

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(News report from Issue No. 324, published on April 13 2017)

Priest accuses Georgia of unfair trial

APRIL 13 2017 (The Conway Bulletin) — Archpriest Giorgi Mamaladze, the priest waiting for his trial on charges of attempting to poison a senior member of Patriach Ilia II’s inner circle, has said that he is going to apply to the European Court for Human Rights against what he has said is an unfair process. Archpriest Mamaladze was arrested this year trying to board a flight to Germany with cyanide, a case that has captivated the Georgian public.

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(News report from Issue No. 324, published on April 13 2017)

Armenia’s Republican party wins the election

YEREVAN, APRIL 8 2017 (The Conway Bulletin) — The Republican Party of President Serzh Sargsyan was confirmed as the winner of a parliamentary election in Armenia on April 2.

Armenia’s Central Election Commission said the Republican party had won just under 50% of the vote (55 seats), the generally pro-government Tsarukyan Alliance won 27% of the vote (30 seats), the opposition Way Out Alliance nearly 8% (9 seats) and the pro-government Armenian Revolutionary Federation 6.6% (7 seats).

No other political bloc passed the 7% threshold to win seats or the 5% threshold needed to be breached by an individual political party in an election that was marked by alleged vote buying. There were no reports of the protests that had been expected.

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(News report from Issue No. 324, published on April 13 2017)

Markets: Central Asia Metals

APRIL 13 2017 (The Conway Bulletin) — Central Asia Metals, which is focused on Kazakhstan, posted turnover up 3% at $69.3m for 2016, helping to push up its share price to a five-week high of 242p by April 10.

This has since come off slightly but Central Asia Metals is still threatening to push past an all-time high of 246p set in mid-February. That’s certainly what analysts think. Most of them reiterated a ‘buy’ rating with Peel Hunt targeting 255p and FinnCap targeting 264p.

One of the main attractions for shareholders is the strong dividend that Central Asia Metals pays out. The Motley Fool, a stock analysis blog, explained.

“Shareholders will reap the benefit of this strong performance.

As much as 31% of last year’s revenue will be returned to shareholders by way of a total dividend of 15.5p. This gives a yield of 6.7% at the current share price of 229p,” the Motley Fool wrote before the share price started rising.

“This isn’t a one-off performance. The company’s dividend policy is to return at least 20% of revenue from Kounrad to shareholders each year.”

Kounrad is Central Asia Metal’s low-cost copper producing site in Balkhash, central Kazakhstan.

To underline the Motley Fool’s point, take a look at previous dividends. In 2015 and 2014, Central Asia Metals paid out 12.5p, in 2013 9p and in 2012 10.7p.

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(News report from Issue No. 324, published on April 13 2017)f

 

Kyrgyz Supreme court backs Tekebaev detention

MARCH 29 2017 (The Conway Bulletin) — Kyrgyzstan’s Supreme Court upheld the detention of opposition leader Omurbek Tekebaev who was arrested when he tried to enter the country in February. The authorities have accused Mr Tekebaev, who is a leader in the Ata Meken party, of bribe-taking and fraud. His detention sparked off anti-government street demonstrations in Bishkek and in the south of the country. Also in Kyrgyzstan, the security services confirmed that it had charged another senior member of the Ata Meken party, acting chairman Almambet Shykmamatov, with fraud while he was an auditor at the State Accounting Chamber in 2011.

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(News report from Issue No. 323, published on April 6 2017)