Category Archives: Central Asia & South Caucasus News

OSCE reveals final report on elections in Uzbekistan

MARCH 22 2017 (The Conway Bulletin) — In its final report on the Uzbek presidential elections in December, the OSCE’s ODHIR laid out 24 points where Uzbekistan could improve its electoral system. It said these were aimed at improving the system’s transparency and strengthening the confidence ordinary people have in the process, as well as stopping fraud and ensuring there is genuine competition. The election was the first that ODHIR, the OSCE’s election monitoring unit, had observed in Uzbekistan. Its broad assessment was that the process had been flawed.

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

Roxi wants merger in Kazakhstan

MARCH 23 2017 (The Conway Bulletin) — London-listed Roxi Petroleum said that it was trying to merge with Switzerland-based Baverstock to create a new company called Caspian Sunrise. Under the offered deal, Baverstock which already owns 10.45% of Roxi, would take control of an additional 41% stake in the new company. The new company’s main asset is the BNG contract area in Kazakhstan.

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

Azerbaijani economy will grow, says Fitch

MARCH 16 2017 (The Conway Bulletin) — Fitch, the ratings agency, said that the Azerbaijani economy was likely to pick up this year after contracting by 3.8% in 2016. In an interview with Reuters, Paul Gamble, head of Fitch’s emerging Europe department said that the economy would grow by 0.2% this year and 1.7% in 2018. Earlier this month, the Asian Development Bank said that Azerbaijan’s economy would shrink again this year.

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

 

Uzbek president’s first 100 days in power

MARCH 27 2017 (The Conway Bulletin) — >> What is the International Crises Group and why is it important to discuss its report on the first 100 days of Shavkat Mirziyoyev’s rule in Uzbekistan?

>> The International Crisis Group, or ICG, is a think tank based in Brussels. It draws most of its funding from Western governments and reports on some of the world’s long-running problem areas. It is influential. One of the areas it reports on is Central Asia and this report, on Mirziyoyev’s first 100 days as Uzbek president, is one of the first major efforts to evaluate his influence over the region’s most populous country.

>>How does the ICG view Mirziyoyev?

>>Essentially, positive with a strong dose of  caution. Like others, the ICG welcomed moves by Mirziyoyev to improve relations with neighbours and has also said there are signs he wants to change the economy which has operated under a pseudo-Soviet centrally controlled system since the 1992 break up of the USSR. But the report’s authors also sounded a serious, and wise, note of caution. They pointed out that Mirziyoyev had been PM under Islam Karimov when the current system, designed to protect the elite, was devised.

>> Got it. What, according to ICG, are the most serious issues facing Mirziyoyev?

>> To start with, the ICG said that Mirziyoyev needs to shore up support within the ranks of the Uzbek elite. Without this support he will fail to update the system. It pointed to a government reshuffle at the start of the year which had improved things but said that he still needed to patch up his differences with Rustam Azimov, an ex-finance minister, and Rustam Inoyatov, the head of the National Security Service.

>> What about ordinary Uzbeks? Does ICG have any insight on how they view their new president?

>> Only a smattering of anecdotal evidence that suggests that Mirziyoyev is going about things the right way and that he has started out with a degree of popularity. ICG quoted a 55-year-old teacher in the Fergana Valley saying: “Mirziyoyev is a person who knows Uzbekistan’s real picture, he can make things better.”

>> And to sum up?

>> The ICG broadly welcomed Mirziyoyev’s first 100 days in office, although it also said that more is needed. It did urge foreign powers to work more closely with Uzbekistan under Mirziyoyev to ensure reforms that have been hinted at come through and don’t become early-day regime hubris.

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Copyright ©The Conway Bulletin — all rights reserved

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

Fertiliser plant to open in Turkmenistan

MARCH 22 2017 (The Conway Bulletin) — Turkmenistan will finally start operations at the Garlyk Mining and Processing plant in its north-eastern Lebap province, Turkmen media reported by quoting senior officials at Belgorkhimprom, the Belarusian constructor who has been building the site since 2009. Garlyk is a major potassium salt field and the plant is designed to produce fertilisers. Turkmen president Kurbanguly Berdymukhamedov has said that he wants to diversify the country’s economy away from gas exports.

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

EIU ranks Kazakh city as the cheapest

MARCH 21 2017 (The Conway Bulletin) — The Economist Intelligence Unit (EIU) ranked Almaty, Kazakhstan’s financial centre, as the cheapest major city in the world to work in as an expat in its annual cost of living survey. It said that although inflation was rising, prices hadn’t yet caught up with a 50% devaluation in the tenge in 2015. The EIU said that a packet of 20 cigarettes cost $1.02 and a loaf of bread cost 90 cents. In Singapore, which the EIU said was the most expensive major city in the world, a packet of cigarettes costs $9.63 and a loaf of bread costs $3.55.

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

Georgian government to move ministries out of town

MARCH 23 2017 (The Conway Bulletin) — Georgia’s government announced plans to build a so-called Government City on the outskirts of Tbilisi to house ministries. Announcing the plan at a government meeting, PM Giorgi Kvirikashvili said that it would bring all the government’s offices together around the civil service, which has already moved out of town, give the construction sector a boost and free up space in the centre of Tbilisi for new hotels and offices.

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

Uzbek president travels to Astana to meet Nazarbayev

ALMATY, MARCH 23 2017 (The Conway Bulletin) — In a high-spirited and carefully choreographed meeting in Astana, Kazakh President Nursultan Nazarbayev and Uzbek President Shavkat Mirziyoyev lauded what they said would be a fruitful and fulfilling partnership between the two neighbours.

The meeting was important as it marks another genuine shift in diplomatic relations for Uzbekistan. Under Mr Mirziyoyev, Uzbek diplomats have been working hard to shake off their difficult image and to repair damage inflicted during the cantankerous 25 year rule of Islam Karimov.

“Kazakhstan wishes our strategic partner, neighbour and brotherly people of Uzbekistan, prosperity and well-being,” the Kazakh presidential website quoted Mr Nazarbayev as saying. “In the future, we look forward to a fruitful relationship in the framework of bilateral contacts.”

The diplomatic and economic relationship between Kazakhstan and Uzbekistan, the most populous and wealthy countries in the region, is vital for Central Asia. If they work in harmony, then the other three coun- tries of the region will also prosper. If they squabble, as has been the case, then economic development will be slow.

This was the two leaders first meeting since September 2016 when Mr Nazarbayev travelled to see Karimov’s grave in Samarkand. Mr Mirziyoyev had then been acting president. He was officially sworn in as Uzbekistan’s second post-Soviet president in December.

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Copyright ©The Conway Bulletin — all rights reserved

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

IMF says needs to develop private sector in Turkmenistan

MARCH 21 2017 (The Conway Bulletin) — The IMF concluded a working visit to Turkmenistan by calling on the government to do more to develop the private sector. It also said that Turkmenistan needed to reduce the size of its external debt and that the economy was still struggling to deal with the fall in gas prices. Accurate economic data on Turkmenistan is tough to source but anecdotal evidence suggests the economy is struggling.

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Copyright ©The Conway Bulletin — all rights reserved

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

Prosecutors look at ING role in Uzbekistan telecom bribes

MARCH 22 2017 (The Conway Bulletin) — ING, one of the Netherlands’ biggest bank, became the second international bank to be placed under investigation over alleged links to money laundering by the Uzbek government.

Earlier this year prosecutors in Switzerland said that they had started an investigation into the role played by Lombard Odier, a Geneva-based private bank, in a series of bribes paid by European telecoms firms for access to Uzbekistan’s potentially lucrative mobile market.

In a statement, the Dutch prosecution service said: “The bank [ING] is suspected of having failed to report, or report in a timely fashion, irregular transactions. It is suspected of having enabled international corruption and money laundering.”

A spokesman for ING said that the company couldn’t make specific comments about an ongoing investigation other than to say that it was cooperating with the authorities.

Media reports said that the investigation will focus on a $184m payment made in 2007/8 by Netherlands-based Vimpelcom via ING to a Gibraltar-registered company owned by an associate of Gulnara Karimova, the eldest daughter of former Uzbek president Islam Karimov. This was allegedly part of a larger bribe that Vimpelcom has already admitted paying to the Karimovs, then the unrivalled First Family of Uzbekistan, for access to the 35m-person market. Last year Vimpelcom paid a $795m fine for the bribe, the second largest fine for corruption in Western corporate history.

The discovery in 2012 by Western media of the bribes has already destroyed the careers of high-flying telecoms executives and persuaded both Sweden’s Telia and Norway’s Telenor to sell out of the Central Asia/South Caucasus market, which they have said they believe is riddled through with corruption.

It was also part of the undoing of the Karimovs’ grip on power in Uzbekistan.

Ms Karimova, had appeared set on succeeding her father as Uzbekistan’s president. She had styled herself as a glamorous multi-talented pop-singer, fashion-designer, captain-of-industry and Uzbek ambassador to the UN but her enemies swooped when the scale of her corruption became apparent.

Already unpopular in Uzbekistan, she was placed under house arrest in 2014 when she return to Tashkent and has barely been seen or heard of since. Her associates were arrested and convicted of various financial crimes.

When her father died in September, Ms Karimova was even prevented from attending his funeral in Samarkand.

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Copyright ©The Conway Bulletin — all rights reserved

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