Category Archives: Central Asia & South Caucasus News

Russia slaps ban on Tajik flights

APRIL 2 2017 (The Conway Bulletin) — The Russian air authorities have once again banned Tajikistan’s privately-owned Somon Air from flying to Russia, an apparent resumption of the row between the two countries earlier this year which cut the number of air-links. Air-links between Russia and Tajikistan are especially important for Tajikistan’s migrant work force which relies on jobs in Russia.

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Copyright ©The Conway Bulletin — all rights reserved

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

Uzbek president enjoys upbeat meeting with Putin

APRIL 5 2017 (The Conway Bulletin) — On his first trip to Moscow as Uzbekistan’s president, Shavkat Mirziyoyev signed investment pledges worth $12b and trade deals worth $3.8b with Russian president Vladimir Putin.

The main thrust of the deals was in gas. Mr Mirziyoyev said that Russia had agreed to increase the amount of gas it buys from Uzbekistan, a vital revenue earner for the Uzbek economy.

“The case in point is significant expansion of deliveries of natural gas to Russia on the basis of the five-year contract to be concluded for the first time,” the TASS news agency quoted Mr Mirziyoyev as saying.

The deals bode well for Mr Mirziyoyev who cuts a very different figure on the international scene than his predecessor, Islam Karimov, who died in September after ruling for 25 years. Where Karimov was cagey, aloof and unilateral, Mr Mirziyoyev has shown that he is able to charm regional heads of states and get bilateral deals signed.

Mr Putin, who always had a difficult working relationship with Mr Karimov, appeared happy to see Uzbek-Russian relations blossom.

“We are witnessing our trade and economic ties intensifying, and we have always paid special attention to it,” he was quoted as saying. “It should be noted that in general we keep the trade turnover at a high level. In some positions it grows in a remarkable manner.”

The meeting in Moscow, though, came just two days after an alleged suicide bomber from Central Asia killed at least 14 people on a metro in St Petersburg. Security, cracking down on terrorist recruitment drives in Central Asia and stopping the spread north of the Taliban from Afghanistan, was also high on the agenda.

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

US Senators want Trump Azerbaijan deal probe

MARCH 30 2017 (The Conway Bulletin) — US Senators asked for an official investigation into a hotel deal US President Donald Trump made in Azerbaijan which they suspect may have exposed him, indirectly, to illegal contact with the Iranian Revolutionary Guard.

The deal, made before Mr Trump became US President earlier this year, involved Anar Mammadov, son of Ziya Mammadov. Ziya Mammadov used to be Azerbaijan’s transport minister and one of the most powerful people in the country. He had a reputation, though, for corruption and also for being linked to the Iranian Revolutionary Guard.

As well as possibly being tarnished by association with corruption allegations linked to the Mammadovs, Mr Trump may also have indirectly exposed himself to dealing with the Iran Revolutionary Guard, an organisation still covered by US sanctions. The Senators requested the investigation via the Senate’s Foreign Relations, Banking, and Judiciary committees which then sent on the request to the Attorney General, Jeff Sessions, the Treasury Secretary, Steven Mnuchin, and FBI director, James Comey. They have yet to respond.

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

Housing scheme kicks off boom in Kazakhstan

MARCH 28 2017 (The Conway Bulletin) — In the first two months of the year, 18,000 new apartments were built in Kazakhstan, a 23% increase on the same period in 2016, media reported quoting official statistics. The increase is driven by the government housing building scheme unveiled last year called Nurly Zher. The scheme is part- political, part-economic in its aims which are to build homes for 1.5m families over the next 15 years and also to lift the country’s flatlining economy.

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

Uzbek government spies on exiles

MARCH 31 2017 (The Conway Bulletin) — Uzbekistan’s security forces are spying on exiled Uzbeks across Europe in order to intimidate and create a climate of fear, the London- based human rights organisation Amnesty International said in a new report. It accused the Uzbek government of creating a Soviet-like atmosphere of fear and repression inside and outside Uzbekistan.

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

Armenian investors set up IT projects

MARCH 29 2017 (The Conway Bulletin) — A group of Armenian investors have set up a fund to help kick-start IT projects, media reported, boosting Armenia’s reputation as the IT hub of the South Caucasus/Central Asia region. Reports said that the fund was looking to sponsor 10 start-ups with $200,000 each. Armenia’s government has been encouraging the development of an IT sector. It has made deals with Microsoft and an Armenian-US company produces smartphones and tablets in the country.

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

China wants to invest in cement production in Uzbekistan

MARCH 28 2017 (The Conway Bulletin) — China’s Anhui Conch Cement Co. said that it wanted to invest in a 2m tonne/year cement plant in Uzbekistan because of the improve economic conditions in the country. Cement production has become big business in Uzbekistan with Chinese, Turkish and Russian companies all setting up production there, but if Anhui Conch did build a 2m tonne capacity plant it would be one of the biggest, if not the biggest, in the country.

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

Condor restarts oil wells in Kazakhstan

MARCH 22 2017 (The Conway Bulletin) — Canada-based Condor Petroleum resumed production at its oil wells in Kazakhstan in the second half of last year, it said in a full-year trading update, around 15 months after it cut production because oil prices had dropped too low to make it economical. Combined output from these two fields, Shoba and Taskuduk, is tiny at 588 barrels per day but it does indicate a renewed confidence in the Kazakh oil sector. Also in Kazakhstan, Condor has applied to extend its exploration licence over the Zharkamys exploration area which officially expired at the end of last year.

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(News report from Issue No. 322, published on March 27 2017)

Stock Market: Nostrum

MARCH 27 2017 (The Conway Bulletin) — Nostrum, the London-listed oil company with assets in Kazakhstan, saw its share price fall 11% to 416p, its lowest price since the start of the year, after full year results for 2016 showed a sharp fall in revenues.

It said that revenue was down by $100m to $348m because of sustained low oil prices. Its chairman, Frank Monstrey, said that 2016 had been one of the most difficult years on record although cost cutting had reduced losses.

“Nostrum has not wavered during one of the most challenging years for the oil and gas industry in over a decade,” he was quoted as saying by media. “We have navigated 2016 with caution and great care to ensure our vision remains intact.”

Nostrum has been one of the best performing Central Asia/South Caucasus stocks this year, surging to an 18-month high of 518p at the start of March.

A drop in oil prices and the tough trading figures from 2016 put a dampener on this buy analysts are still backing it.

Brokerage Credit Suisse gave the Nostrum stock an ‘outperform’ rating with a target price of 535p for this year.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 322, published on March 27 2017)

Georgian parliament overrides presidential veto

MARCH 23 2017 (The Conway Bulletin) — Georgia’s president overrode a veto by President Giorgi Margvelashvili over a bill that will give the government far reaching surveillance powers. Mr Margvelashvili had objected to the bill because he said it was too expensive to create an agency solely to increase surveillance of people suspected of aiding and abetting terrorism and also of criminals. He also said, and this was possibly his main point, that it was unclear if the new agency would be independent. Relations between Mr Margvelashvili and the Georgian Dream government are strained.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 322, published on March 27 2017)