Category Archives: Uncategorised

KMG EP minority shareholders defeat Kazakhstan’s oil and gas plans

AUG. 3 2016 (The Conway Bulletin) — After months of increasingly bitter rows, minority shareholders at London-traded KMG EP voted against selling their stakes in the company to its parent Kazakhstan’s state owned Kazmunaigas. Kazmunaigas had been looking to boost its 58% stake in the company, one of its few assets which have been doing relatively well during an increasingly tough oil-linked economic downturn. KMG EP mainly owns downstream operations which earn US dollars. These have been more profitable than many of KMG’s upstream operations.

ENDS

(News report from Issue No. 292, published on Aug. 12 2016)

Kazakh court frees opposition leader

AUG. 4 2016 (The Conway Bulletin) — A judge in Kazakhstan ordered opposition leader Vladimir Kozlov to be released on parole, five years into a 7-1/2 sentence for trying to overthrow the government. Kozlov was the highest profile opposition figure to be imprisoned for trying to overthrow the government after clashes between oil workers and police in the west of the country in December 2011 that killed at least 16 people. The government has 15 days to act on the judge’s decision to free Kozlov.

ENDS

(News report from Issue No. 292, published on Aug. 12 2016)

Road sweepers protest in Uzbekistan

AUG. 10 2016 (The Conway Bulletin) — Up to 50 street cleaners, mainly women, in the Uzbek city of Samarkand, protested against the local government because of unpaid wages. The Uzbek- language version of the US-funded RFE/RL news website said more protests were appearing in Uzbekistan over unpaid salaries.

ENDS

(News report from Issue No. 292, published on Aug. 12 2016)

Armenia’s president sacks security chiefs

AUG. 3 2016 (The Conway Bulletin) — Armenian president Serzh Sargsyan sacked Hrant Yepiskoposyan, first deputy director of the National Security Service, after partly blaming him for a two week stand-off with gunmen linked to an imprisoned opposition leader who had captured a police station in Yerevan.

The standoff ended after the gunmen gave themselves up but not before it had triggered street battles between supporters of Zhirayr Sefilyan, the imprisoned leader of the radical opposition group Founding Parliament and a hero veteran of the war in the 1990s with Azerbaijan over the disputed region of Nagorno-Karabakh.

Dozens of people were arrested during the clashes, the worst in Yerevan for more than eight years.

Three policemen were also killed during the standoff which ended on July 31. Police have said that they were shot dead by the gunmen who captured the police station.

The authorities refused to release Mr Sefilyan, a key demand of the gunmen, but the standoff did trigger a serious constitutional crisis for Mr Sargsyan and has damaged his standing.

Analysts said that the capture of the police station and the support that the hostage-takers appeared to garner from ordinary people showed the level of frustration at Mr Sargsyan and his supporters.

“Many of them were almost certainly taking an opportunity to protest against the status quo, rather than endorsing an act of violence,” analyst Thomas de Waal wrote on the Open Democracy website.

“But even that is an indication of how desperate many mainstream Armenians feel in the face of a political system which they feel has no place for them — and which, due to recent constitutional changes, is likely to see Sargsyan and his team retain their grip on power for many years.”

Since the stand-off ended, Mr Sargsyan has sacked senior security officials. Kevork Kostanyan also resigned as the country’s prosecutor-general.

ENDS

(News report from Issue No. 292, published on Aug. 12 2016)

Kyrgyz president supports constitutional changes

AUG. 1 2016 (The Conway Bulletin) — Kyrgyz President Almazbek Atambayev said that he supported a referendum that would tweak the constitution and shift more power from the president to the PM. In the aftermath of a revolution in 2010, Kyrgyzstan voted to give parliament and the PM more power, a shift to what Western analysts have often dubbed as Central Asia’s first parliamentary democracy. Mr Atambayev said changes were needed to stop a new president taking too much power.

ENDS

(News report from Issue No. 292, published on Aug. 12 2016)

Azerbaijan’s CBank raises interest rates to 9.5%

AUG. 8 2016 (The Conway Bulletin) — Azerbaijan’s Central Bank raised its key interest rate to 9.5% from 7%, its highest level since 2008, in an effort to bolster its currency.

Azerbaijan’s economy is based on oil, meaning that a fall in prices has hit its economy hard. Analysts have predicted a recession this year, the first since the 1990s.

The manat currency was devalued twice last year. It had been strengthening throughout 2016 but has lost around 10% of its value since June and is, according to Bloomberg, now one of the five worst performing currencies. The Central Bank increased its key interest rate to 5% from 3% in February.

ENDS

(News report from Issue No. 292, published on Aug. 12 2016)

KazTransOil revenues drop

JULY 28 2016 (The Conway Bulletin) — Kazakhstan’s state-owned oil pipeline operator KazTransOil said its revenues fell by 1.2% to 96b tenge ($273m) in H1 2016, compared to the same period last year. KazTransOil, part of the Kazmunaigas group of companies, also said that it transported 10% less oil in H1 2016.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Greece says Azerbaijan’s SOCAR deal to buy gas pipelines will happen in September

JULY 22 2016 (The Conway Bulletin) — Italy’s Snam could make an offer to buy 17% of Greek gas distributor DESFA by the end of September, salvaging plans by Azerbaijan’s SOCAR to buy Greece’s pipeline network.

Earlier this month, SOCAR officials had suggested the deal, which is considered vital for Azerbaijani aspirations to supply gas to Europe, was off because a lower-than-expected

price rise by the Greece government for consumers had undermined its value.

But Stergios Pitsiorlas, chairman of the state Hellenic Republic Asset Development Fund, told Bloomberg that the Snam-SOCAR tandem will buy a 66% share in DESFA.

Snam declined to comment.

SOCAR officials flew into Athens this week to discuss the deal. News reports from both Greece and Azerbaijan have called the negotiations ‘tense’.

In 2013, SOCAR won a bid to buy 66% of DESFA, Greece’s gas distributor.

The deal was later frozen by the European Commission, citing 2009 regulation which stops integration between gas suppliers and distributors.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

Dispute threatens Kazakh refinery company’s sale of Romanian refinery

JULY 27 2016 (The Conway Bulletin) — A legal battle between Kazakhstan’s KMG International and the Roma- nian government risks stalling a $680m deal to sell a majority stake in the Kazakh company’s refinery to China’s CEFC.

KMG International, formerly known as Rompetrol, is preparing to lodge a lawsuit against the Romanian government over the seizure in May of its assets, according to the FT.

The Romanian government has said the Petromidia refinery, the largest in the country, was illegally privatised in the early 2000s before Kazmunaigas bought Rompetrol.

KMG International has now submitted a legal note to the Romanian government that will escalate the dispute.

“Romania is using its governmental power to undermine that transaction and re-nationalise the assets,” the FT quoted KMG International as saying in a letter to the government.

KMG International had to delay finalising the deal with CEFC, which in December agreed a $680m fee to buy 51% of the refinery.

Robert Cutler, Senior Researcher at the Institute of European Studies at Carleton University, Montreal, said that Romania was looking to block the sale.

“Kazakhstan is about to find out what it is like to be on the receiving end of ‘resource nationalism’, which it [Kazakhstan] has successfully used against foreign investors over the last decade,” he told The Conway Bulletin.

This delay and the asset freeze has angered officials at both KMG International and Kazmunaigas, its parent company.

Senior company officials have said that they will take legal action if the refinery sale is delayed.

Romanian investigators have focused on recovering cash from an allegedly illegal privatisation of the refinery in 2003, when the late Dinu Patriciu bought Petromidia for $760m. In 2007, Patriciu sold Rompetrol, which controlled Petromidia, to Kazmunaigas for $1.6b.

In the following years, the government acquired an 18% stake in the refinery.

Now, analysts say, the government might be looking to renationalise the refinery, an important and lucrative asset for Romania.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)

People in Kyrgyz city burn posters

JULY 25 2016 (The Conway Bulletin) — People in Batken, south-western Kyrgyzstan, burned a government poster aimed at countering the growth of radical Islam which showed Kyrgyz women in traditional clothes transitioning into women wearing a full, black burqa. Kyrgyz President Almazbek Atambayev unveiled the poster this month as part of the fight against a recruitment drive in Central Asia by the radical IS group. The poster has proved controversial in Kyrgyzstan because of accusations that it is stigmatising conservative Muslims.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)