Category Archives: Central Asia & South Caucasus News

Kazakh state energy producer to boost investments

APRIL 12 2017 (The Conway Bulletin) — In a clear sign of renewed confidence that oil prices will stay at around $50-55/barrel, KMG EP, the London-listed division of the Kazakh state energy producer Kazmunaigas said that it was going to raise its capital expenditure by 12% to 133b tenge ($369m). The company said that the extra investment would be used to improve the efficiency of existing projects.

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(News report from Issue No. 325, published on April 17 2017)

Iran foreign minister visits Kyrgyzstan and Turkmenistan

BISHKEK, APRIL 16 2017 (The Conway Bulletin) — Iranian foreign minister Mohammad Javad Zarif visited Tbilisi, Ashgabat and Bishkek in a three day charm offensive designed to bolster support and trade across a pliant Central Asia and South Caucasus region.

In Ashgabat Mr Zarif met with President Kurbanguly Berdymukhamedov, in Tbilisi he met PM Giorgi Kvirikashvili and President Giorgi Margvelashvili, and in Bishkek he met with Pres. Almazbek Atambayev.

Of all the meetings, perhaps talks with Mr Berdymukhamedov in Ashgabat were the most important. Turkmenistan and Iran had been developing trade intensively until Turkmen officials accused their Iranian counterparts of not paying a $1.8b gas bill. They have said that they will take the case to an international arbitration court unless it is resolved.

Although no mention of the disputed gas bill was made after the meeting in Ashgabat, media did quote Turkmen foreign minister Rasit Meredow as saying that Mr Zarif’s trip was a “big step in political and diplomaticrelations”.

Since some Western sanctions were lifted on Iran last year, the Iranian government has been working to promote its interests in its near abroad. Major inroads have been made in promoting relations in Central Asia/South Caucasus, such as easing visa rules and bilateral investment deals.

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(News report from Issue No. 325, published on April 17 2017)

Kookmin sells 42% stake in Kazakhstan’s CenterCredit

ALMATY, APRIL 20 2017 (The Conway Bulletin) — South Korea’s Kookmin Bank sold its remaining 41.93% stake in Bank CenterCredit to Bakhytbek Baiseitov’s Tsenabank, bringing to an end its unhappy nine year foray into the Kazakh banking sector.

Kookmin’s retreat from Kazakhstan also highlights just how foreign banks have struggled in the Kazakh banking sector. The 2008/9 Global Financial Crisis inflated Kazakh banks’ bad debt portfolios turning what had looked like an attractive market to foreign investors into a headache virtually overnight.

A short note released on the Kazakh Stock Exchange by Center- Credit didn’t give much way accept to confirm the sale. Earlier this year, Tsenabank said it would buy up all of Kookmin Bank’s stake. In March it also confirmed that Mr Baiseitov, one of Kazakhstan’s richest people, had bought a 10% stake from the IFC, part of the World Bank. The IFC had always intended to sell its stake, bought in 2010, by 2017.

There was no statement from Kookmin which has been looking to sell its stake in CenterCredit almost as soon as it bought it.

Kookmin’s timing was initially poor. It bought a 30% stake in CenterCredit from Mr Baiseitov, who set up the bank, in March 2008 for $500m. By August 2008 the Global Financial Crisis had virtually wiped out its investment. The devaluation of the Kazakh tenge in 2015 also hit the bank, forcing Kookmin to write- down its value again. The 2008 deal to buy into CenterCredit had been part of a now globalisation push by Kookmin. It forced the resignation in 2010 of then-CEO Kang Chung-won.

Other foreign banks which have invested in Kazakhstan only to pull out a few years later include Britain’s HSBC and Italy’s Unicredit.

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(News report from Issue No. 325, published on April 17 2017)

Corruption unfolds in Georgian football

APRIL 19 2017 (The Conway Bulletin) — Georgia’s domestic football is often plagued by illegal betting, media reported quoting European gambling watchdog officials. The oocrp.org website, a part-US funded anti-corruption website, quoted the head of FederBet, Francesko Baranca, as saying Georgia’s second division matches were often targeted for illegal bets.

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(News report from Issue No. 325, published on April 17 2017)

 

Kazakh court cuts journalist’s sentence

APRIL 18 2017 (The Conway Bulletin) — The former head of Kazakhstan’s journalist union, Seitqazy Mataev, has had his sentence for embezzlement and tax evasion cut to 2 years and 8 months from the 6 years he was given in October. Media reports said that the sentence cut was granted to Mataev in December in a presidential amnesty.

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(News report from Issue No. 325, published on April 17 2017)

Tajik ex-police chief reportedly dies in Mosul

APRIL 14 2017 (The Conway Bulletin) — A US air strike on Mosul in Iraq has killed Gulmurod Halimov, the Tajik former special police unit chief who defected to the extremist group IS in 2015, Western media said. The death of Halimov has not been confirmed by IS. He had allegedly been promoted to be the IS military commander. Halimov was one of the most high-profile recruits to join IS and had been in propaganda.

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(News report from Issue No. 325, published on April 17 2017)f

 

Azerbaijan’s Silk Way buys 10 Boeings

APRIL 18 2017 (The Conway Bulletin) — Azerbaijan’s Silk Way Airlines bought 10 Boeing 737 passenger air- planes in a deal which some media reports said could be worth as much as $1.1b. The deal also marks a change of strategy for the Baku-based airline, which is part of the Silk Way conglomerate. Up until now, the airline had focused on cargo transport. It now says that it has drawn up plans to lease the passenger airplanes out.

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(News report from Issue No. 325, published on April 17 2017)

Kazakhstan to persuade Syrian rebels at peace talks

APRIL 17 2017 (The Conway Bulletin) — Kazakhstan’s foreign ministry said that it is working with Iran, Russia and Turkey to persuade Syrian rebels to attend peace talks scheduled for next month in Astana. Talks last month were stunted because the rebel faction pulled out at the last minute. The fourth round of Syria peace talks in Astana comes as tension between the opposing sides hits new highs. Rebels have accused the Syrian government of dropping chemical bombs on a town, killing dozens of civilians. The Syrian government and its Russian allies deny the charges.

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(News report from Issue No. 325, published on April 17 2017)f

 

French foreign minister visits Uzbekistan

APRIL 17 2017 (The Conway Bulletin) — On a trip to Tashkent, French foreign minister Jean-Marc Ayrault discussed improving security relations with Uzbekistan. Mr Ayrault is the most senior Western government official to visit Uzbekistan since Shavkat Mirziyoyev took over as president in September 2016. He has opened up the country to the West, including persuading the EBRD to start investing in Uzbekistan once again.

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(News report from Issue No. 325, published on April 17 2017)

Uzbek president sacks privatisation head

APRIL 14 2017 (The Conway Bulletin) — Uzbek president Shavkat Mirziyoyev fired the head of the government’s privatisation committee, Davron Hidoyatov, shortly after criticising him for not attracting enough foreign investment. The sacking of Mr Hidoyatov is part of Mr Mirziyoyev’s drive to freshen up his government’s approach to pulling in foreign investment. Mr Hidoyatov had been given the job in December 2014 by former president Islam Karimov.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 325, published on April 17 2017)