Category Archives: Uncategorised

Technopark costs in Kazakhstan rise

JUNE 8 2016 (The Conway Bulletin) — The Kazakh government said it will have to recalculate costs for the construction of a petrochemical technopark in a Special Economic Zone near Atyrau, due to the depreciation of the local currency. Nurlan Rakhmetov, managing director at Samruk-Kazyna, the country’s sovereign wealth fund, said costs will rise. As of June 1, the local consortium building the technopark has received 40.7b tenge ($120m) from the state budget.

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(News report from Issue No. 284, published on June 10 2016)

Russia’s Gazprom to invest in Kyrgyzstan

JUNE 6 2016 (The Conway Bulletin) — Russian PM Dmitri Medvedev said that state-owned gas company Gazprom will invest around $1.5b in Kyrgyzstan’s energy infrastructure and that it will cancel export duty on oil and oil products. Mr Medvedev made the statement while in Bishkek on an official visit. Oil and petroleum products make up 51.9% of Kyrgyz imports from Russia.

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(News report from Issue No. 284, published on June 10 2016)

Central Banks in Kazakhstan and Georgia fight deflationary pressures

ALMATY, JUNE 10 2016 (The Conway Bulletin) — Currencies across the Central Asia and South Caucasus region have stabilised this year after losing 30% to 50% of their value in 2015 thanks, in part, to record high interest rates but governments are now having to deal with deflation.

As well as raising interest rates to their highest level since the Global Economic Crisis of 2008/9, Central Banks bought heavily to defend their currencies. The Kazakh Central Bank said it bought $3.7b in Jan.-May 2016 and in Georgia, the Central Bank intervened twelve times in just two months, although on a smaller scale.

And both Central Banks have now started unwinding high interest rates, hoping to spark economic activity.

Earlier this year the Kazakh Central Bank cut its key interest rate to 15% from 17%. Georgia’s Central Bank cut its interest rate to 7.5% from 8% and promised further cuts. New data from Georgia’s statistics agency highlighted the challenge. It said that prices in May dropped by 0.4%, the third consecutive month of falling prices. Year-on-year inflation in May measured 2.1%, down from a high of 6.3% in November.

And this scenario is playing out across the region.

Last month Armenia’s Central Bank said that year-on-year inflation measured minus 1.9% and immediately cut interest rates by 0.5% to 7.75%.

But Alex Nice, an analyst at the Economist Intelligence Unit, said that the region’s weak banking systems and high levels of dollarisation means that there is little Central Banks can do to impact economic activity.

“The exchange rate is a more powerful lever for managing prices in the economy [than the official interest rate],” he said.

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(News report from Issue No. 284, published on June 10 2016)

Hyundai sells buses to Turkmenistan

JUNE 7 2016 (The Conway Bulletin) — South Korean automaker Hyundai said it has sold 500 Aero City buses to Turkmenistan, for $66m. Hyundai has already sold 700 buses to Turkmenistan over the past seven years. The new buses will mostly service the capital, Ashgabat, during the Asian Indoors Games in 2017.

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(News report from Issue No. 284, published on June 10 2016)

Azerbaijan’s energy company profits in Romania

JUNE 6 2016 (The Conway Bulletin) — Azerbaijan’s state-owned energy company SOCAR said its Romanian subsidiary SOCAR Petroleum made a profit in 2015 for the first time since 2011 despite a fall in revenues. SOCAR Petroleum owns several filling stations across Romania. Low oil prices reduced total revenue at SOCAR Petroleum but also gave it a higher profit margin on sales.

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(News report from Issue No. 284, published on June 10 2016)

EU and UN condemn Tajikistan on opposition crackdown

JUNE 3/7 2016 (The Conway Bulletin) — The European Union and the United Nations both condemned the harsh sentencing of former top members of the Islamic Renaissance Party of Tajikistan last week. “The court proceedings were not transparent and violated the rights of the accused to a fair trial,” the EU statement said. “The harsh sentencing reflects the steady increase of restrictions on freedom of expression in Tajikistan,” said David Kaye, UN Special Rapporteur on the right to freedom of opinion and expression.

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(News report from Issue No. 284, published on June 10 2016)

Azerbaijan’s energy company to boost production

JUNE 6 2016 (The Conway Bulletin) — Azerbaijan’s state-owned energy company SOCAR said it aims to increase oil and gas production at several offshore fields in the Caspian Sea. The company said it will build nine new platforms to drill 81 wells. CEO Rovnag Abdullayev said a new gas platform in the Guneshli block will be the first to be entirely designed and built by SOCAR.

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(News report from Issue No. 284, published on June 10 2016)f

New Hyatt hotel to open in Uzbekistan

JUNE 7 2016 (The Conway Bulletin) — A new Hyatt hotel will open in mid- June in Uzbekistan’s capital, Tashkent, sources told local media. The US-based company had planned to open the new hotel in 2013. The original plan was a $113m investment and completion by early 2015. According to reports, costs have now grown to around $205 and include an investment from the government. The hotel will open just days before a meeting of the Shanghai Cooperation Organisation in Tashkent.

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(News report from Issue No. 284, published on June 10 2016)

Editorial: Turkmen human rights

JUNE 10 2016 (The Conway Bulletin) — It’s taken 13 years but human rights groups scored a significant victory in Turkmenistan when the authorities finally allowed Ayjemal Rejepova and her two young daughters to leave the country to rejoin their family in Europe.

Ms Rejepova’s father is Pirkuli Tanrykuliev, a former Turkmen doctor and opposition leader. He was imprisoned in 1999, released shortly afterwards and then allowed to leave the country for exile in Norway. His wife followed but his daughter was banned from joining him.

As well as being banned from travelling abroad, Ms Rejepova and her husband lost their jobs and were subject to searches and intimidation by the Turkmen security forces.

With the help of Western human rights groups, she has now succeeded in pressuring the Turkmen authorities in scrapping the travel ban. She has been brave but, as Human Rights Watch pointed out, there are thousands of other Turkmen also subject to a travel ban from Turkmenistan because of alleged offences linked to relatives. The pressure needs to be maintained.

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(Editorial from Issue No. 284, published on June 10 2016)

Kazakh sportsmen fail in drug test

JUNE 6 2016 (The Conway Bulletin) — Five Kazakh weightlifters have tested positive for taking banned drugs, Kazakhstan’s weightlifting association said. The names of the athletes who failed the tests have not been released although weightlifting websites speculated it could be Olympic champions Ilya Ilyin and Zulfiya Chinshanlo. The drug test failures and any subsequent bans would be a major blow to Kazakhstan’s hopes of winning medals at the Olympics in Brazil.

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(News report from Issue No. 284, published on June 10 2016)