Category Archives: Uncategorised

Georgian CBank intervenes, again

MAY 5 2016 (The Conway Bulletin) – Georgia’s Central Bank intervened in the currency market for the sixth time in two months, in an effort to dampen the appreciation of its lari currency. The Central Bank bought $20m, injecting lari into the market. The intervention came as the lari reached 2.21/$1, its strongest rate since July 2015.

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan plans mining auction

MAY 3 2016 (The Conway Bulletin) – A Kazakh mining government agency said it will auction 101 gold, copper, manganese and other precious metals mines on June 16. The auction, Kazakhstan’s second, will be conducted within the framework of the International Mining and Metallurgical Congress. Last year’s auction earned the state budget around 1.5b tenge ($4.5m).

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan’s CBank cuts interest rate as inflation begins to slow

MAY 5 2016, ALMATY (The Conway Bulletin) — Kazakhstan’s Central Bank cut its key interest rate by two percentage points to 15% because it said that inflation was slowing and the overall economic outlook was improving.

The consumer price index grew in April to an annualised rate of 16.3%, its highest since 2009, but the Central Bank said that the pace of inflation had slowed.

“Seasonally adjusted, annualised month-on-month inflation for each of the last three months was within the target range for the annual inflation set between 6% and 8%,” the Central Bank said in a statement linked to its rate change.

“A survey of households also showed that expectations of inflation have subsided as well.”

After months of poor economic data and a 50% devaluation of the tenge currency, any prognosis on Kazakhstan’s economy which is even vaguely positive will be seized upon and lauded. This is the first time in months that Kazakhstan’s Central Bank has shown confidence in its ability to control the money market, a sign that the worst period of a regional economic downturn might be over.

Still, the Central Bank did add a large dash of caution to its outlook.

It said that a potential downside risk to the economy was the “increased tenge-denominated high interest rate liabilities” held by commercial banks, which could put pressure on the financial sector. This is, essentially, a reference to bad loans.

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(News report from Issue No. 279, published on May 6 2016)

 

Kyrgyz-Tajik CASA-1000, a ‘mad plan’ now nearing its launch

MAY 5 2016, DUSHANBE (The Conway Bulletin) — CASA-1000 is the power transmission project that most analysts dismissed as too madcap to work.

Conceived by US diplomats and regional officials sometime around 2010 when Hillary Clinton, then the US Secretary of State, was promoting her vision of a north-south Silk Road stretching from Central Asia to India, this was the project that was meant to fail.

Instead, Tajikistan, Kyrgyzstan, Pakistan and Afghanistan will officially launch its construction next week.

If all goes to plan, and security in areas of Afghanistan where the Taliban are active is a major concern, CASA-1000 should foster improved relations in the region and boost economies.

The World Bank is the project’s biggest backer, pledging more than half the estimated $1b cost to build the 1,222km transmission line and support systems.

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(News report from Issue No. 279, published on May 6 2016)

 

ADB expects Turkmenistan’s TAPI to be completed by 2021

MAY 5 2016 (The Conway Bulletin) – The Asian Development Bank (ADB) said it expects the TAPI pipeline project to be completed by 2021. TAPI will pump Turkmen gas to India through Afghanistan and Pakistan. The Turkmen government insists the pipeline would be ready by 2019. For Turkmenistan TAPI has become a race against time. It wants to diversify its client base. The ADB, which is an adviser on the project, has offered a potential $600m loan.

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan-based Olisol makes Tethys deal

APRIL 29 2016 (The Conway Bulletin) – Kazakhstan-based Olisol will inject 9.8m Canadian dollars ($7.6m) into Tethys Petroleum, a Guernsey based oil and gas company, triggering a new share issue. The long-negotiated agreement will bring Olisol’s ownership in Tethys to 42%. Shareholders will vote on the deal at the annual meeting at the end of May. Tethys operates in Kazakhstan, Tajikistan and Georgia.

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(News report from Issue No. 279, published on  May 6 2016)

 

Editorial: Armenia and Nagorno-Karabakh

MAY 6 2016 (The Conway Bulletin) – Armenia’s parliament has started to debate whether to recognise Nagorno-Karabakh as an independent state. This is an unnecessary and inflammatory move at a tense time for the disputed region.

Last month the worst fighting in two decades broke out around Nagorno-Karabakh between Armenia-backed separatists and Azerbaijani forces.

Now Armenia, apparently keen to make a point, appears to be goading Azerbaijan by threatening to recognise the region as independent. It may have been controlled by Armenia-backed rebels since a ceasefire was agreed in 1994 but, officially at least, Nagorno-Karabakh is part of Azerbaijan.

If parliament goes all the way and recognises the independence of Nagorno-Karabakh, it will set Armenia apart in the international community. Armenia has sympathisers but few will back it.

It’ll also put its neighbour, Georgia, in a particularly difficult position. Georgia has to contend with two self-declared independent states on its territory — South Ossetia and Abkhazia. By discussing formalising Nagorno- Karabakh as an independent state, Armenia is stirring things up.

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(Editorial from Issue No. 279, published on May 6 2016)

Georgia criticises UEFA

MAY 3 2016 (The Conway Bulletin) – Georgia’s football association said it was disappointed that UEFA, Europe’s football governing body, voted to allow Kosovo, a Balkan country that broke away from Serbia in 2008, to become its 55th member. For Georgia, the issue of breakaway states being given any recognition is a sensitive one. It has two breakaway states — South Ossetia and Abkhazia — which are supported by Russia.

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakh President scraps land reforms after protests spread

MAY 5 2016, ALMATY (The Conway Bulletin) — Kazakh President Nursultan Nazarbayev bowed to public pressure and agreed to scrap unpopular land reforms which had sparked protests across the country.

Four days earlier, in a speech broadcast on national television, Mr Nazarbayev appeared determined to see off protests which had spread from Atyrau in west Kazakhstan, to Semey in the east and Kyzylorda in the south. He described the protesters as saboteurs who risked wrecking the country.

But with more protests planned, a clearly shaken Mr Nazarbayev told his government on Thursday that the plans would be delayed from their initial introduction on July 1 until the start of next year and, even then, only if the public agreed with the plans.

“The mechanisms and rules of the adopted law were not widely discussed with the public. The anxiety and concerns of the people are justified in many ways,” he said, according to a video posted on Facebook by his press office.

Analysts will either interpret this climb down as a humiliation for the 75-year-old leader who some say is increasingly out of touch with ordinary Kazakhs as they grapple with the frustrations of an economic downturn, or they will describe it as a masterstroke by an experienced leader able to paint himself as The- Father-of-the-People.

Certainly, Mr Nazarbayev was quick to blame others for the debacle.

He specifically said that economy minister Yerbolat Dossayev and agriculture minister Asylzhan Mamytbekov had failed to fulfil their brief.

“It should have been explained to the population that didn’t understand that there was no talk of any sale of our agricultural lands,” he said. “This means we failed to explain this point and to target those parts of the population which were concerned.”

Mr Dossayev resigned immediately and Mr Mamytbekov, the following day.

On the streets of Almaty it was easy to find people who were against the prospect of land reforms. “Renting land is wrong. Just wrong. It is the blood and sweat of our ancestors,” said Daniyar, a student.

By contrast, it wasn’t possible to find anybody who supported the proposed land reforms.

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(News report from Issue No. 279, published on May 6 2016)

 

Sweden drops Telia bribery case in Azerbaijan

MAY 3 2016 (The Conway Bulletin) – Prosecutors in Sweden dropped an investigation into alleged bribe paying by TeliaSonera, now called Telia Company, in Azerbaijan, relieving the pressure on the Nordic region’s biggest telecoms company but disappointing corporate governance campaigners.

Scrapping the investigation also ditches a potentially embarrassing public hearing for Azerbaijani President Ilham Aliyev and his family into their personal affairs. TeliaSonera was alleged to have paid millions of dollars indirectly to Mr Aliyev and his family for access to Azerbaijan in 2008.

Prosecutors said they could neither prove the bribery allegations nor Telia’s intent.

Allegations of the payment emerged in mid-2014, nearly two years after TeliaSonera was accused of paying a $375 million bribe to Gulnara Karimova, the eldest daughter of Uzbek President Islam Karimov, for access to Uzbekistan.

“With the tools we have at our disposal, we can’t prove bribery,” Gunnar Stetler, Sweden’s prosecutor, told Reuters in an interview.

Telia said the ruling marked another departure from the company’s more murky past.

“After today’s decision, there are no ongoing Swedish investigations that relate to Telia Company, except for the investigation regarding Uzbekistan,” Telia said in a statement.

Telia is linked to investigations in Sweden, the Netherlands, the US, Switzerland and Norway into alleged corruption linked to Ucell, its subsidiary in Uzbekistan.

Last September, Telia said it wanted to sell off its assets in the South Caucasus and Central Asia. Turkish telecoms company Turkcell, in which Telia owns a stake, said it was interested in buying some of these companies.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on  May 6 2016)