Category Archives: Uncategorised

Frustrations build ahead of Kyrgyzstan’s election

OCT. 2 2015, BISHKEK (The Conway Bulletin) — By the standards of Kyrgyzstan’s febrile politics, the build up to its Oct. 4 parliamentary election has been calm but an often disinterested public and frustration over biometric data requirements have tarnished the vote.

Five years ago, in the aftermath of a revolution that ousted the unpopular Kurmanbek Bakiyev and the switch to a parliamentary democracy, it was a very different story. The mood was positive.

Now, ordinary Kyrgyz say that the political elite have gripped the political process making it less transparent and more self-serving.

“I am disappointed in representativeness of political parties, there are no parties for which I can vote,” said 23-year old Atabek, a student.

His friend, Temirlan, agreed.

“I wont go as there is no party in which I could be confident,” he said. As well as the usual complaints over the quality of the candidates, controversy has focused on requirements set out by the Kyrgyz Central Election Committee which insisted that people had to submit various personal data to the authorities before they could vote. Roughly a third of the population failed to register for the vote.

Still, some voters are upbeat.

Jenish, a 45-year-old taxi driver waiting for clients in a main Bishkek street said: “I will go to elections to fulfil my civic duty.”

Another Bishkek resident, 32-year old Mira, was excited about voting.

“I will vote for a party where a leader is a young and successful businessman,” she said.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Turkmen President writes new book on plants

SEPT. 25 2015 (The Conway Bulletin) – Turkmen president Kuyrbanguly Berdymukhamedov is a man of many achievements. Not only is he a self- styled father figure for the Turkmen people but he is also a champion jockey and a leading intellectual.

Now, is appears, that he can add to this list the status of feted international botanist.

Official Turkmen media reported that at a book fair in Ashgabat, South Korean diplomats praised Mr Berdymukhamedov, a dentist by training, for producing a third volume of his book ‘Medical plants of Turkmenistan’.

Like the first two volumes of ‘Medical plants of Turkmenistan’ this book has already been translated into Korean and distributed to libraries around the country, South Korean diplomats were quoted as saying.

And the Turkmen media had more.

“Speakers at the presentation emphasised the importance of research work by the head of the Turkmen State into healing properties of plants,” it reported, adding that Mr Berdymukhamedov’s research had been translated dozens of times.

As well as the research, there may, of course be another reason for the South Korean interest in Mr Berdymukhamedov’s books. South Korean is an important investor in Turkmenistan’s economy.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Rout on commodities-based companies hits KAZ Minerals

ALMATY, SEPT. 30 2015 (The Conway Bulletin) — KAZ Minerals’ shares in London lost a fifth of their value over the past week as concerns about future commodities prices continued to stalk the market and copper prices fell to near 6-year lows.

Globally, Switzerland-based Glencore was the biggest loser in September with around $14b wiped off its market cap. The market pushed down Glencore shares mainly because of worries over its large debt pile but the sell-off still pressured other commodities-orientated companies including miners in the South Caucasus and Central Asia.

And the drop in commodities prices it also a sovereign issue in Central Asia and the South Caucasus with national budgets partially reliant on income from sales. This will hurt Kazakhstan in particular, although it will reverberate across the region.

Analysts were quick to point the finger at weak Chinese demand for commodities, especially copper, for the drop in prices. Copper is regarded as a good conductor of electricity and heat and used widely in manufacturing.

“With China slowing down and a lot of uncertainty, fears in the market have intensified, and the reduction in the pace of demand growth for all commodities has seemed to send everybody off the cliff,” Ed Hirs, professor of energy economics at the University of Houston told Bloomberg.

China uses more than half of world’s copper production and any fluctuation in its demand curve has significant effects in the markets. A strong US dollar and uncertainty over Fed interest rate decisions has also hit commodities prices.

London-listed KAZ Minerals, formerly known as Kazakhmys, is particularly exposed to Chinese copper demand whims. Its main product is copper and China is one of its main clients.

Shares in KAZ Minerals were down 20.5% in one week closing at 84.65p, its lowest ever price. It later rebounded above 90p, due to a wave of short-term rebounds across the sector.

KAZ Minerals/Kazakhmys has been portrayed as a company closely interlinked with the elite in Kazakhstan.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Kyrgyz and Tajik CASA-1000 worries

SEPT. 25 2015 (The Conway Bulletin) – In an interview with a local newspaper, an official from Pakistan’s ministry of water and power said it was $142m short of its promised $297m investment for the so called CASA- 1000 power transit project. This is a serious concern for the project which is set to cost a total of $1.2b. If completed it will boost Tajikistan and Kyrgyzstan power exports to Pakistan and Afghanistan.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Kazakh Central Bank raises interest rates

ALMATY, OCT. 2 2015 (The Conway Bulletin) — Kazakhstan’s Central Bank raised its new key interest rate to 16% from 12% in an attempt to contain rising inflation.

The increase in the overnight repo rate, made the key interest rate in September, highlights how heavily the Central Bank underestimated the rate that inflation would rise after a devaluation of its tenge currency in August. The tenge is now trading at 272/$1 compared to 188/$1 before it was cut from its US dollar peg on Aug, 20.

“Considering the economic data and prospects for growth the National Bank decided to raise its key interest rate to 16% to keep inflation in the medium-term target range of 6-8%,” the Central Bank said in a statement.

But bolstering the strength of the tenge may have been the Kazakh Central Bank’s main objective for the interest rate rise. Despite promising not to intervene in the currency markets after ditching the US dollar peg, the Kazakh Central Bank has spent $1b propping up its currency and keeping it away from the 300/$1 floor that it has threatened to fall through.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Despite promises, oil output falls in Azerbaijan

SEPT. 30 2015 (The Conway Bulletin) – Azerbaijan’s oil production fell by 3.1% between January and August this year compared to the same period in 2014, a source at the state’s Statistics Committee told Reuters, more bad news for the government as it tries to work out a strategy to deal with a regional economic downturn.

Oil exports are the mainstay of the Azerbaijan economy, and a collapse in oil prices over the past year has hit it hard.

It has cut government projects, slashed the value of its currency by a third and warned of low growth rates for the next couple of years.

Alongside the decline in revenue earned from exports, Azerbaijan is also dealing with a drop in production. This drop is mainly linked to a slowdown in production at the Azeri-Chirag-Guneshli (ACG) fields which are operated by BP.

The source told Reuters that Azerbaijan had produced 22.1m tonnes of oil in the first eight months of the year compared to 22.8m tonnes in 2014.

BP has tried to increase outflows from ACG over the past couple of years but without success, drawing criticism from Azerbaijani President Ilham Aliyev.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Hotel prices in Azerbaijan’s capital slash

SEPT. 28 2015 (The Conway Bulletin) — In an effort to prop up the tourism industry, Abulfas Garayev, Azerbaijan’s minister of culture and tourism forced a number of hotels to reduce prices, local media reported. Baku invested heavily in new hotels ahead of hosting the European Games earlier this year. “Artificially inflated prices were reduced after a ministerial inspection. Prices have been reduced by about 10-15%,” media quoted Mr Garayev as saying.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Cell repays loan to Kazakh banks

SEPT. 28 2015 (The Conway Bulletin) — Kcell, one of the biggest players in Kazakhstan’s telecoms market, appears to re-organising its debt. It repaid a syndicated loan worth 14.8b tenge ($55m) to Citibank Kazakhstan and RBS Kazakhstan, days after opening a 17b credit line with Kazkommertsbank. Sweden- based TeliaSonera owns 62% of Kcell. It said last month that it wants to quit Eurasian markets.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Georgia joins Nato force

SEPT. 29 2015 (The Conway Bulletin) – Keen to further burnish its Western orientated credentials, Georgia said it would sign up to the NATO Response Force (NRF). Georgian PM Iraki Garibashvili said that Georgia would create a unit of 100 soldiers for the force which is designed to deploy rapidly to protect NATO members. Finland, Sweden and Ukraine are other non-NATO NRF members.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

GDP growth slows for Georgia

SEPT. 30 2015 (The Conway Bulletin) – Preliminary GDP data for August showed that growth in Georgia measured 2.3% compared to the same month in 2014, the Georgia statistics agency said. This was the slowest year-on-year GDP growth since May.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)