Category Archives: Uncategorised

Kazakhstan’s trade turnover with Eurasian Union states drops

NOV. 13 2015 (The Conway Bulletin) – Kazakhstan’s trade turnover with member states of the Eurasian Economic Union – that’s Russia, Belarus, Armenia and Kyrgyzstan – has dropped by nearly 26% to $12.1b in the first nine months of this year compared to the same period in 2014, its statistics agency said.

The data is more evidence of the sharp downturn in the region’s economy. It is particularly jarring for Kazakh president Nursultan Nazarbayev who has been one of the main architects and biggest supporters of the Eurasian Economic Union. It was hoped that the trade bloc would stimulate trade but instead, by anchoring outlying economies to Russia, it has hampered it.

A sharp drop in oil prices and Western-imposed sanctions have tipped Russia into a recession and forced its rouble currency to drop in value.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Pakistani PM visits Tajikistan

NOV. 12 2015 (The Conway Bulletin) – On a trip that also took in neighbouring Uzbekistan, Pakistani PM Nawaz Sharif visited Dushanbe for a meeting with Tajik president Emomali Rakhmon that would have focused on the CASA-1000 energy project. CASA-1000 aims to turn Tajikistan and Kyrgyzstan into power exporters, sending electricity to Pakistan and Afghanistan.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

TeliaSonera says Tajikistan ordered Facebook block

NOV. 16 2015 (The Conway Bulletin) — Swedish mobile operator TeliaSonera said that the authorities in Tajikistan had ordered it to block access to a series of social media sites, including Facebook, because of alleged security threats.

In an unusually candid note, TeliaSonera, which operates in Tajikistan under the Tcell brand, said it had complied with the order, given on Nov. 2, although it did cast some doubt on the motives behind it.

“Government’s requests or demands often serve legitimate purposes such as the protection of certain human rights, but they may also be problematic in that they could conflict with other human rights,” it said in a statement on its website. “TeliaSonera’s commitment is to respect freedom of expression in telecommunications.”

The authorities in Tajikistan often ban access to social media because they say radical Islamists have infiltrated it. Human rights groups, though, have accused the government of cracking down on free speech.

As well as blocking Facebook, the authorities also blocked the Russian websites odnoklassniki.ru and vk.ru.

TeliaSonera, which is looking to sell its businesses in Central Asia and the South Caucasus after a corruption scandal in Uzbekistan, said it doesn’t comment on domestic politics.

“However, TeliaSonera does engage in dialogue regarding requests from authorities that affect our business and customers of companies in which we have ownership interests,” it said.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Stock market: KAZ Minerals, Centerra Gold

NOV. 20 2015 (The Conway Bulletin) — On the stock markets, KAZ Minerals, formerly called Kazakhmys, was one of the biggest movers.

Its share price rose from 80p to 92p — a two-week high, apparently off the back of news that it will restructure some of its costs.

On the Canada stock market, shares in Centerra Gold recovered from a six-month low of 6.95 Canadian dollars after its core asset, the Kumtor gold mine in Kyrgyzstan announced better-than-expected results.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Business comment: The outlook for oil

NOV. 18 2015 (The Conway Bulletin) — Azerbaijan and Kazakhstan are having to brace themselves for a tough 2016. Oil prices are expected to stay low and output is likely to drop too.

Oil exports from Azerbaijan were down by 0.4% in Jan.-Oct. 2015 compared to last year, due to a decline in oil production, according to a source quoted by Reuters, a continuation of steady trend at its major oil field ACG.

BP is under pressure to stem the drop, and has said that it is on target to achieve this. Now an estimate from the US-based Energy

Information Administration appears to back this up. It said Azerbaijan is likely to maintain this year’s average of 870,000 barrels/day, or even more, in the first half of 2016.

But OPEC, a club of oil exporting countries that does not include Azerbaijan, disagrees.

It predicted oil output of 820,000 barrels/day for 2016, a 6% drop compared to 2015.

“Lower prices are likely to accelerate declines in Azerbaijan’s production in 2016 compared to 2015,” OPEC said in a report.

And Kazakhstan is also sending worrying signals.

Yerbolat Dossayev, minister of economy, said the government cut Kazakhstan’s oil output projection for 2015 by 1.5m tonnes to 79m tonnes, a 2.3% fall. OPEC agreed.

“With no new project startups lined up for next year, declining rates are likely to step up in 2016,” it said in its monthly report.

Analysts expect Azerbaijan and Kazakhstan, which cannot influence oil prices, to produce and export at maximum capacity, while cutting down on investment. Earning hard currency from exports is top of the agenda for Central Asia and South Caucasus countries.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Kazakhstan cuts back envoys

NOV. 18 2015 (The Conway Bulletin) – In what would amount to a major change of Kazakh government policy, President Nursultan Nazarbayev said that he was considering cutting the number of diplomatic missions to save cash to soften the blow of the current economic downturn. Previously, Kazakhstan’s foreign ministry has been opening outposts in South America, Africa and south-east Asia.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Turkmenistan begins expanding giant gas field

NOV. 18 2015 (The Conway Bulletin) – Turkmenistan will expand its giant Galkynysh gas field by around 50% over the next few years, media reported quoting Ashirguly Begliyev, head of Turkmengas, giving gas projects to India and the EU a major boost.

Galkynysh forms the core of Turkmenistan’s gas production. Its main client is China although it wants to diversify its client base. The EU has been negotiating with Turkmenistan to try and organise for gas supplies to be sent west across the Caspian Sea, through the South Caucasus, Turkey and onto Europe.

India, likewise, has been working on a project that could see gas pumped from Turkmenistan across Afghanistan to Pakistan and finally to Indian consumers.

First, though, Turkmenistan needs to boost output at Galkynysh. Almost all of its current 60bcm of gas goes to China. A proportion of the next phase of Galkynysh’s development will also travel to China, but spare capacity is being built in.

“We are in talks with a consortium of Japanese companies and have also received proposals from Korean firms and from Petrofac company,” Reuters quoted Mr Begliyev as saying on which companies may be involved with the third phase development of Galkynysh.

Importantly, too, Galkynysh is vital for Turkmenistan’s own self image. It sees itself as an increasingly important regional energy player and has been looking to pull in more clients.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Kazakh court jails blogger for separatist web chat

NOV. 19 2015 (The Conway Bulletin) – A court in the town of Ridder, north- east Kazakhstan, imprisoned an internet blogger for five years for asking users on a popular social media website if they thought the east of the country should split and join Russia.

This is the first time that a new law banning separatist incitement has been used. The law was introduced in 2014 after the civil war in Ukraine broke out.

According to media reports, 26- year-old Igor Sychev, the blogger, has denied allegations that he was fomenting separatist feelings.

But this is an issue that the Kazakh authorities, up to President Nursultan Nazarbayev, are touchy about.

The north and east of Kazakhstan are populated mainly by ethnic Russians.

This population skew was one of the main reasons Mr Nazarbayev relocated his capital to Astana, in the centre of the country, from Almaty in the south in 1997 and he has spent much time re-working the history of the Kazakh state to be as inclusive as possible — without stretching the realms of possibility too much.

Nationalists in Russia have also increased tension by floating the idea of bringing north Kazakhstan into a Greater Russia.

On a trip to Pavlodar in the north of the country last year, though, it was clear to a Bulletin correspondent that for most ethnic Russians living in Kazakhstan, although their cultural centre of gravity may lie to the north in Russia, they still have faith in the Kazakh state.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Tajikistan discusses foreign bank accounts

NOV. 18 2015 (The Conway Bulletin) – Possibly aimed at either cracking down on corruption or giving the under-pressure somoni currency a boost, Tajikistan’s parliament discussed a bill that would ban Tajik official from holding bank accounts or property overseas. Corruption is a major issue in Tajikistan.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Journo trial begins in Azerbaijan

NOV. 20 2015 (The Conway Bulletin) – Rauf Mirkadyrov, a high-profile journalist in Azerbaijan has gone on trial for high treason. He was extradited in April 2014 to Azerbaijan from Turkey. The West has been highly critical of Azerbaijan’s crackdown on media.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)