Category Archives: Uncategorised

Air cargo starts to Turkmenistan

JUNE 28 2015 (The Conway Bulletin) – Cargolux, one of Europe’s largest air freight carriers, started flights to Turkmenbashi on Turkmenistan’s Caspian Sea coast, the company said. Cargolux said it would fly four times a week to Turkmenbashi. Turkmenbashi can be used as a hub for Central Asia’s Caspian Sea region.

ENDS

(News report from Issue No. 238, published on July 2 2015)

Kazakh oil and gas company wants to sell Kashagan stake

JUNE 30 2015 (The Conway Bulletin) – Kazmunaigaz, Kazakhstan’s state-owned oil and gas company, said it would sell half its stake in the Caspian Sea Kashagan oil field to Samruk-Kazyna, the Kazakh sovereign wealth fund.

This is a curious arrangement as Samruk-Kazyna actually owns Kazmunaigas. It may be a way for Kazmunaigas, which has been badly hit by the sharp drop in energy prices, to borrow cash cheaply.

According to a press release from the London Stock Exchange, Kazmunaigas is seeking the consent of the shareholders in the North Caspian Operating Company (NCOC) , the consortium which operates the Kashagan, to sell half of its 16.88% share to Samruk-Kazyna for approximately $4.7b.

“Samruk-Kazyna’s agreement to purchase the Kashagan Shares reflects the State’s strong support of KMG (Kazmunaigas), as a strategic national asset,” the statement said.

Part of the cash raised by the sale would be used to pay $2.2b Kazmunaigas owes in fees relating to its 2013 purchase of the Kashagan stake from US company ConocoPhillips.

Kazmunaigas said that the sale would come with an option to buy back the stake in Kashagan for the same price between 2016 and 2020.

NCOC declined to comment.

Kazmaunaigas had run up large debts, partly because of the oil price slump. Halyk Bank analyst Sabina Amangeldi said in a note last month that the company already has seven Eurobond issues outstanding worth a total of $8.8b.

She also noted that lower oil prices had knocked Kazmunaigas’ revenues by around a third and that profit had been wiped out.

ENDS

(News report from Issue No. 238, published on July 2 2015)

Azerbaijani Defence Minister visits Lithuania

JULY 1 2015 (The Conway Bulletin) – Azerbaijan’s defence minister, Colonel-General Zakir Hasanov, visited Lithuania for meetings with his Lithuanian counterpart Juozas Olekas and PM Algirdas Butkevicius. This is important because it shows how Azerbaijan is trying to boost its connections in Europe and with NATO members.

ENDS

(News report from Issue No. 238, published on July 2 2015)

Georgia PM says no to gay marriages

JUNE 29 2015 (The Conway Bulletin) – TBILISI — In the wake of the decision by the US Supreme Court last week to legalise same sex marriages, Georgian PM Iralkli Garbashvili promised a constitutional ban on homosexual marriages in Georgia.

His decision plays well to Georgia’s conservative society and highlights the divide between the country and the far more liberal West, whose groups Georgia aspires to join.

“As a prime minister and a citizen, I will do everything to include a clause in the constitution that defines marriage and the family as the union of a man and a woman,” Mr Garibashvili said in an interview with a conservative newspaper Asaval-Dasavali.

It is not the first time he has suggested changing the constitution to include the definition of marriage. Last time was in 2014, when parliament discussed an anti-discrimination bill required by the EU for further integration. The Georgian Orthodox Church heavily criticised the bill in 2014 as it forbade discrimination on the basis of sexual orientation.

According to the Caucasus Research Resource Centre opinion polls, the majority of Georgians support EU and NATO membership, and the US is seen as Georgia’s main ally but 88% of Georgians also said that homosexuality can never be justified.

These views are easy to find on the streets of Tbilisi.

“Sure, the US is a friend to our politicians. But gay marriages just don’t look pretty, do they? Here, in Georgia, we don’t like such kind of people,” said Giorgi, a hairdresser.

ENDS

(News report from Issue No. 238, published on July 2 2015)

Georgia raises interest rates

JULY 1 2015 (The Conway Bulletin) – Georgia’s Central Bank raised its interest rate to 5.5%, its highest since Nov. 2012, to combat accelerating inflation. Georgia’s Lari currency has fallen sharply in value over the past few months, mainly because of the downturn in Russia’s economy.

ENDS

(News report from Issue No. 238, published on July 2 2015)

Newspaper faces closure in Azerbaijan

JUNE 25 2015 (The Conway Bulletin) – Azerbaijani newspaper Azadliq, one of the only independent newspapers in the country, is on the brink of closing because of its worsening financial situation, media lobby groups said. The authorities in Azerbaijan have been clamping down on opposition media. Lobby groups said Azadliq has received arbitrary fines.

ENDS

(News report from Issue No. 238, published on July 2 2015)

Moodys cuts Azerbaijani bank ratings to negative

JUNE 30 2015 (The Conway Bulletin) – Moodys, the ratings agency, downgraded Azerbaijan’s banking sector to negative from stable, reflecting the country’s tough economic outlook.

Azerbaijan devalued its currency by a third earlier this year, undermining the
banks, Moodys said.

“We believe that banks’ asset quality will deteriorate following the local-currency devaluation, as most foreign-currency loans in Azerbaijan are to borrowers that do not have foreign-currency revenues,” Moodys said in a report.

Stubbornly high consumer spending and inflation is also pressuring Azerbaijan’s econ- omy.

Based on an average price of a barrel of oil of around $55, Moodys said that Azerbaijan’s economy would grow by 1% this year, one of the slowest growth rates in the developing world.

Oil production dominates Azerbaijan’s economy. Moodys estimated that the hydrocarbon sector contributed around 37% of Azerbaijan’s GDP last years.

Azerbaijan said that is is trying to boost gas sales to Europe but this is not due to come on-stream for several years.

ENDS

(News report from Issue No. 238, published on July 2 2015)

US goes after Uzbek President’s daughter

JULY 2 2015 (The Conway Bulletin) – US prosecutors have opened a case against an unnamed relative of Uzbek president Islam Karimov to regain around $300m paid out in apparent bribes by two Russian telecoms companies, media reported. The unnamed relative is widely thought to be Gulnara Karimova, Mr Karimov’s eldest daughter.

ENDS

(News report from Issue No. 238, published on July 2 2015)

Electricity protests continue in Armenia

JULY 2 2015 (The Conway Bulletin) – YEREVAN — Several hundred protesters continued to occupy a main street in central Yerevan, demonstrating against an electricity price increase.

The number of demonstrators has fallen and a Bulletin correspondent said there were now no more than about 1,000 people protesting on July 2, a drop from an estimated 10,000 protesters last week.

But the stand-off with riot police is still one of the most widely supported street demonstrations in Armenia for years.

Russia’s foreign minister, Sergei Lavrov, also warned the West against interfering, a sign of the Kremlin’s concern.

The protesters, who are mainly young, have defied police warnings to quit and the atmosphere has veered from tense to party-like over the past week. Last week police used water cannons and detained over 200 protesters when they tried to clear the square.

In a bid to appease the protesters, Armenia’s president Serzh Sargsyan suggested inves- tigating further a request by the Russia-owned electricity monopoly to find out just why the price increases are needed.

“I strongly believe that cancelling the tariff increase is extremely dangerous. Hence, until the given company pro- vides its opinion, the govern- ment will incur the entire burden of the tariff increase,” Mr Sargsyan said.

Most activists, though, dismissed Mr Sargsyan’s offer as a distraction.

“Increasing electricity tariffs will increase nearly all prices. Bread, butter, oil,” one activist at the protest said.

The electricity price rise is the third in two years.

ENDS

(News report from Issue No. 238, published on July 2 2015)

Tajikistan’s Central Bank cuts jobs

JULY 1 2015 (The Conway Bulletin) – Tajikistan’s Central Bank is cutting nearly 200 jobs as it restructures and streamlines its operations, media reported. It’s unclear exactly what the restructuring entails but media said that most jobs would be lost at the Central Bank’s offices in Dushanbe.

ENDS

(News report from Issue No. 238, published on July 2 2015)