Author Archives: admin

Telia asks Tajikistan for clarification

FEB. 28 2017 (The Conway Bulletin) — Swedish telecoms company Telia has asked the Tajik government for a face-to-face meeting to explain a tax investigation against its local subsidiary, Tcell, which has slowed its previously agreed sale to the Aga Khan Fund for Economic Development. Telia wants to sell its Central Asian subsidiaries after a corruption scandal in Uzbekistan damaged its reputation.

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(News report from Issue No. 319, published on March 3 2017)

Oil price gives Kazakh GDP boost

MARCH 2 2017 (The Conway Bulletin) —  Strong oil prices may boost GDP growth in Kazakhstan to 2.8% this year, economy minister Timur Suleimenov told Reuters in an interview. The previous government GDP growth estimate for 2017 had been 2.5%. Last month, Kazakhstan increased its expected oil price this year for its government budget to $50/barrel up from $35/barrel.

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(News report from Issue No. 319, published on March 3 2017)

Kazakh president’s grandson becomes football vice-president

FEB. 28 2017 (The Conway Bulletin) —  Kazakhstan’s Football Federation appointed 26-year-old Aysultan Nazarbayev, President Nursultan Nazarbayev’s grandson, as its vice- president. Nazarbayev junior is keen on football and trained for six months with the English football club Portsmouth. He is the eldest son of Pres. Nazarbayev’s daughter Dariga Nazarbayeva and has even been spoken of as a future president.

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(News report from Issue No. 319, published on March 3 2017)

Uzbek authorities detain rights campaigner

MARCH 3 2017 (The Conway Bulletin) — The authorities in Uzbekistan detained human rights campaigner Elena Urlaeva, Reuters reported quoting a video message she posted on the internet. In her video message, Ms Urlaeva said that she had been detained, beaten and taken to a psychiatric unit in Tashkent. She is best known for campaigning against forced labour in the cotton industry. She had been due to meet with the World Bank to discuss forced labour violations.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 319, published on March 3 2017)

Deflation slows in Armenia

MARCH 3 2017 (The Conway Bulletin) — Deflation in Armenia continued to slow in January, just as the Central Bank said it would earlier in the year. The National Statistics Service said that prices dropped by an average of 0.2% in February compared to the same period in 2016. In January, year-on-year deflation had measured -0.6% and in February 2016 it had measured -1.7%.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 319, published on March 3 2017)

Inflation starts to climb in Georgia

MARCH 3 2017 (The Conway Bulletin) — Prices in Georgia were 5.5% higher in February 2017 compared to the same month in 2016, the State Statistics Service said, confirming Central Bank predictions of inflation pressure when it raised interest rates last month (March 2). It had set an inflation target of 4% in 2017.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 319, published on March 3 2017)

IMF agrees to fund Georgia

MARCH 1 2017 (The Conway Bulletin) —  At the end of a two-week mission to Georgia, the IMF agreed a three year $285m funding programme aimed at encouraging economic reform and Western investors. The deal replaces an earlier one that had expired. It should give the Georgian govern- ment an extra level of support as it pulls out of an economic malaise.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 319, published on March 3 2017)

 

 

Kyrgyz protesters gather after arrest of opposition leader

BISHKEK, FEB 27/28 2017 (The Conway Bulletin) — Hundreds of people in Kyrgyzstan protested against the arrest of opposition leader Omurbek Tekebayev, sparking worries of pro-tracted anti-government street demonstrations.

By the end of the week, the crowds had dissipated from a peak of 300 in Bishkek and 200 in Bazar Korgon, the town in southern region of Jalal-abad where Mr Tekebayev was born.

Even so, the sight of angry protesters, mainly young men, marching through the streets of Bishkek to the White House, the presidential office, noisily airing their grievances brought back memories of 2005 and 2010 when violent revolutions over- threw two governments.

Mr Tekebayev has been charged with corruption linked to the telecoms company Megacom in 2010. His supporters have said that the charges are politically motivated, designed to scupper any chances that Mr Tekebayev has of winning a presidential election set for November.

Addressing the crowd, Rosa Otunbayeva, a former Kyrgyz president and one of Mr Tekebayev’s most high-profile supporters, described his arrest as political persecution.

Kyrgyzstan’s society is increasingly polarised and November’s election is likely to be a tense affair. President Almazbek Atambayev is stepping down after one term in power, as stipulated by the constitution. He has not yet named a preferred successor.

Murat Borombai, a resident of Bishkek, said he went to the demonstration to support the opposition and not Mr Tekebayev in particular.

“These people are opposed to the state authorities who have started to repeat the way of authoritarianism, violations of civil rights the move to lawlessness and arbitrariness,” he said.

The authorities have denied that there was any political motivation behind the arrest of Mr Tekebayev or any of his colleagues.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 319, published on March 3 2017)

Kazakh elite are winners from bank merger

MARCH 3 2017 (The Conway Bulletin) — By merging Kazkommertsbank with Halyk Bank, the Kazakh elite have completed their drive to control the country’s banking sector.

It’s been a long campaign but, for the Kazakh elite, one worth fighting and winning. If previously, the country’s banking sector had been troublesome, creating billionaires such as Mukhtar Ablyazov and Nurlan Subkhanberdin who didn’t necessarily want to go along with President Nursultan Nazarbayev’s vision for Kazakhstan, now they have full control.

The process to subjugate the banking sector started with the government’s purchase of BTA Bank in 2008/9 when it was on the brink of collapse. Next came the not-so-subtle takeover of Kazkommertsbank in 2014/15 and then its absorption of BTA Bank, and its mountain of bad debt.

And now we have the denouement.

Kazkommertsbank has apparently agreed to merge with, or perhaps more accurately – be taken over by, Halyk Bank. The first and second biggest banks in the country will create a mega-bank that will dominate the sector.

Halyk Bank is owned by Dinara Kulibayeva, President Nursultan Nazarbayev’s daughter, and her husband, Timur Kulibayev. Since 2015, the 37-year-old Kenes Rakishev, one of the Kazakh elite’s favourite businessmen has been the majority owner of Kazkommertsbank. Last year he also became its chairman.

And, as if to underline the elite/insider nature of the deal, the Kazakh Central Bank has given the deal its blessing, saying that it will provide the necessary funds to see it through, including buying up the bad debt that Kazkommertzbank inherited when it took over BTA Bank. In other words, expect the new bank to be in excellent health and to be fully compliant to the whims of the Kazakh elite.

This cements the elite’s control of Kazakh business and banking. Opposition forces will never have as much leverage, good or bad, as when Ablyazov controlled BTA Bank and Subkhanberdin controlled Kazkommertsbank.

The business acumen of the Kazkommertsbank-Halyk merger may not be obvious, but the political reasons are crystal clear.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 319, published on March 3 2017)

Azerbaijan’s Socar fails to buy Turkish petrol stations

MARCH 3 2017 (The Conway Bulletin) — Azerbaijan’s state-owned oil and gas company Socar failed in its high-pro- file bid to buy up the chain of petrol stations in Turkey owned by Austria’s OMV.

Instead, OMV said it had sold the group of 1,785 petrol stations, called Petrol Ofisi, to Vitol Investment Partnership, a subsidiary of commodities company Vitol for $1.45b. Petrol Ofisi is the biggest petrol retailer in Turkey with a 23% market share.

The failure to secure a petrol station group will be a disappointment to Socar, Last month, in an interview with a Turkish newspaper, the general director of Socar Turkey Energy, Zaur Gahramanov, said that if its bid to buy the OMV petrol stations in Turkey failed, it would pursue alternative options.

Socar owns the Star oil refinery in Turkey and has said that it wants to expand its downstream operations.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 319, published on March 3 2017)