Category Archives: Uncategorised

Merkel makes trip to Bishkek, praises Kyrgyz democracy

BISHKEK, JULY 13/14 2016 (The Conway Bulletin) — Angela Merkel became the first German leader to visit Kyrgyzstan when she landed in Bishkek on her way to a conference in Mongolia, handing Kyrgyz President Almazbek Atambayev a major PR coup and making him the envy of his neighbours.

Standing next to Mr Atambayev inside the Presidential Residence, Ms Merkel, who had never before visited Central Asia in her 11 years as Germany’s Chancellor, praised Kyrgyzstan’s democratic progress.

“I am very pleased that we’ve now met in Kyrgyzstan, you have twice visited Germany,” she said.

“We have great respect for the path chosen by Kyrgyzstan since 2010. Kyrgyzstan has chosen the path of parliamentary democracy, and needs, of course, to be supported.”

Kyrgyzstan shifted power to parliament from the president in 2010 after a revolution and has since held three national elections — two parliamentary and one presidential — that Western election observers praised as reasonably free and fair. No other country in Central Asia has ever held an election praised by Western observers and commentators suggested Ms Merkel’s stop-over in Kyrgyzstan was a reward of sorts.

But as well as praising Kyrgyzstan for its relative democracy, Ms Merkel also warned Kyrgyz officials to respect the rule of law and human rights.

The day before her arrival, Kyrgyzstan’s Supreme Court ordered a retrial of Azimzhan Askarov, a prominent human rights activist jailed in 2010.

Mr Atambayev said that the two leaders had discussed a variety of subjects, including international terrorism and improving relations between Kyrgyzstan and the EU.

Posters welcoming Ms Merkel adorned Bishkek and most residents were excited about her visit.

Tamara, 59, a Bishkek resident said: “It is such an honour for Kyrgyzstan to host Angela Merkel because she is a great woman-politician, who promoted the idea of hosting Muslim refugees in Europe.”

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(News report from Issue No. 289, published on July 15 2016)

Turkmen President sacks officials

JULY 8 2016 (The Conway Bulletin) — During a working visit to the north-eastern Lebap province, Turkmen President Kurbanguly Berdymukhamedov sacked 11 local government officials and reprimanded over a dozen others for failing to keep up with the government’s industrialisation and development plans. Mr Berdymukhamedov has already sacked dozens of public officials this year, in a major restructuring of the country’s regional powerhouses.

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(News report from Issue No. 289, published on July 15 2016)

Georgian IS commander gets killed

JULY 12 2016 (The Conway Bulletin) — Abu Omar Al-Shishani, a Georgian- born IS commander, was reported dead, according to IS-linked news outlets. Known as ‘Omar the Chechen’, Al-Shishani reportedly died in combat in Mosul, in northern Iraq. A native of Georgia’s Pankisi Gorge, Al-Shishani had served as the extremist group’s de facto minister of war.

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(News report from Issue No. 289, published on July 15 2016)

HM to open store in Kazakhstan

JULY 13 2016 (The Conway Bulletin) — Swedish fashion retailer H&M said it will open its first store in Kazakhstan in 2017, expanding its market into Central Asia. H&M follows other chains, such as French retailer Carrefour and food chain McDonald’s, which entered the Kazakh market in the past few months. Kazakh media said that the location for H&M’s new store is likely to be Almaty, Kazakhstan’s largest city.

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(News report from Issue No. 289, published on July 15 2016)

Boardroom battle for control of Kazakhstan’s KMG EP heats up

ALMATY, JULY 14 2016 (The Conway Bulletin) — Intensifying its fight for more control over its London-traded subsidiary KMG EP, Kazakhstan’s state-owned energy company Kazmunaigas increased by 14% its earlier buyout offer to minority shareholders and retracted demands to cut the company’s independence.

Under pressure to boost income from oil and gas sales, Kazmunaigas wants to increase its 58% stake in KMG EP. KMG EP’s assets are more profitable than the assets owned by Kazmunaigas.

The problem for Kazmunaigas, though, is that its initial buyout offer of $7.88/GDR met with strong resistance from independent shareholders at KMG EP last month. The increase to $9/GDR, which Kazmunaigas issued without an explicit explanation, also appeared to attract a withering response.

“An increase in the price of the Purchase Offer would not be consistent with the prior statements made by Kazmunaigas that it ‘is not seeking to acquire any significant additional holdings in KMG EP through this offer’,” the independent directors said in a note.

They accused Kazmunaigas of underhand tactics to try to force more control over KMG EP. Specifically, the minority shareholders rallied against a new corporate governance structure proposed by Kazmunaigas that would reduce independent control of KMG EP. Kazmunaigas wanted to impose a veto against the appointment of independent directors but has now dropped these demands.

The ongoing saga within the most powerful industrial structure in Kazakhstan acts as a rare window on Kazakhstan’s corporate governance culture after a series of high profile scandals ahead of planned new IPOs, including Kazakhtelecom, the state- owned telecoms company.

KMG EP’s GDRs have traded at between $6 to $9 in the past 12 months.

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(News report from Issue No. 289, published on July 15 2016)

Tajikistan publishes negative forecasts for Somoni currency

JULY 14 2016 (The Conway Bulletin) — Tajikistan’s finance ministry published a negative forecast for the somoni currency exchange rate over the next few years, saying that the economic crisis that has hit the region since mid-2014 could be far from over. According to the official forecast, the somoni will weaken against the US dollar by 21% next year and by a further 8% in 2018. This week the official exchange rate was 7.9/$1. Much like other currencies in the region, the Tajik somoni has lost a third of its value sine mid-2014, mainly because of a recession in Russia, weakness in oil and gas prices and a drop in confidence in Emerging Markets.

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(News report from Issue No. 289, published on July 15 2016)

Kyrgyz Supreme Court orders retrial for Askarov

BISHKEK, JULY 12 2016 (The Conway Bulletin) — Kyrgyzstan’s Supreme Court ordered a retrial into the sentencing of human rights activist Azimzhan Askarov in 2010 to life in prison for involvement in a murder and for inciting ethnic hatred.

The announcement disappointed human rights activists who have said that Askarov, an ethnic Uzbek, is a political prisoner who was made into a scapegoat after fighting between Uzbeks and Kyrgyz in Osh killed at least 400 people. They wanted the

Supreme Court to bow to pressure from the UN and US to release the 65-year-old Askarov.

Askarov’s case has strained relations between Kyrgyzstan and the US, which last year called him a political prisoner.

Analysts in Bishkek have told The Bulletin that the Supreme Court may give in to pressure to hold a retrial but that it would be, politically, very difficult for a court to come to a different outcome at a new trial.

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(News report from Issue No. 289, published on July 15 2016)

Kazakhstan to solve trade row with Ukraine

JULY 8 2016 (The Conway Bulletin) — Asset Asavbayev, director of transport at Kazakhstan’s ministry of industrial development, said Kazakhstan will step in to resolve a row between Russia and Ukraine that has stalled Ukrainian cargo in transit to Central Asia via Russian territory. On July 1, Russian border police enforced a transit ban for Ukrainian goods, citing a Eurasian Economic Union regulation.

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(News report from Issue No. 289, published on July 15 2016)

Tajik President appoints new FinMin

JULY 11 2016 (The Conway Bulletin) — Tajik President Emomali Rakhmon appointed former deputy Central Banker Umed Latifov to the post of finance minister, replacing Shavkat Sokhibov. Tajikistan’s economy has suffered from a regional economic downturn which has dried up worker remittances from abroad. US-educated Mr Latifov is much younger than his predecessor and has an international profile. His appointment at the Central Bank in May 2015 was his first job in Tajikistan.

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(News report from Issue No. 289, published on July 15 2016)

Kyrgyzstan’s GDP falls by 2.3%

JULY 12 2016 (The Conway Bulletin) — Kyrgyzstan’s GDP fell by 2.3% in the first six months of the year because of lower gold prices. The Statistics Committee said that without accounting for the performance of the Kumtor gold mine, the country’s non-gold GDP grew by 1.2% compared to the same period last year. Higher gold prices since mid-June could now push up the country’s GDP.

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(News report from Issue No. 289, published on July 15 2016)