Category Archives: Uncategorised

Kyrgyzstan-bound FDI dries up

MARCH 6 2015 (The Bulletin) – According to a recent publication by the Kazakhstan/Russia-funded Eurasian Development Bank (EDB), foreign investment in Kyrgyzstan in 2014 measured only $187m, down by 70% from 2013.

In 2013, the Central Asian country received over $623m in foreign direct investment (FDI), mainly from China, Russia, Britain, and Canada.

The EBD said the macroeconomic downturn which began in early 2014 was the main reason for the reduction of foreign activity. The recurring threat of nationalising the gold mine at Kumtor, together with monetary issues and galloping inflation, are also all factors.

The Kyrgyz government has tried to remedy the situation by increasing interest rates above 10% and protecting the national currency, the som, from the financial strains common throughout the region. Although it has performed better than the rouble, the som has lost over 20% against the dollar in the past six months.

FDI is a lifeline for countries like Kyrgyzstan, which rely on remittances from migrant workers abroad and capital injections from foreign investors.
ENDS

(News report from Issue No. 222, published on March 11 2015)

Russia gives top awards to Azerbaijani officials

MARCH 8 2015 (The Bulletin) – Russian President Vladimir Putin awarded the Speaker of the Azerbaijani parliament, Oqtay Asadov, and presidential adviser Ali Hasanov the Friendship Order, one of Russia’s highest civic awards.

Opposition groups in Azerbaijan immediately denounced the award as a crude attempt by Russia to curry favour with Azerbaijan.

Despite rows over energy policy, Azerbaijan has seemingly been shifting its political stance towards Russia over the past few years. The West has accused Azerbaijani president Ilham Aliyev of cracking down on dissent and free media.

In a comment on Facebook, Natig Jafarli, a senior figure in Azerbaijan’s opposition ReAL movement, said the government was getting closer to Russia.

“Imagine what would have happened if Barack Obama gave an award to opposition leaders. They would have been called betrayers and fifth columnists,” he wrote.
There was no official reaction from Azerbaijan’s government on the awards to Mr Hasanov and Mr Asadov.

The pro-government news website APA reported that they had been “Ogtay Asadov and A. Hasanov is (sic) awarded the order for greatly contributing to the strengthening of friendship and cooperation with the Russia Federation.”
ENDS

(News report from Issue No. 222, published on March 11 2015)

Kazakhstan speaks up against off-shoring

MARCH 6 2015 (The Bulletin) – At a Senate hearing in Astana, chairman of the ministry of finance’s revenue committee, Daulet Yergozhin, said the country was going to impose new measures against off-shoring cash.

This is important — if new legislation actually appears — as the issue of Kazakhstan’s wealthy getting their cash out of the country while poorer sections of the population suffer during an economic downturn could turn political.

A study published last month by Alexander Cooley and Jason Sharman, two academics, analysed the channels through which the Kazakh elite amassed “spectacular fortunes” in Western financial centres.

Mr Yergozhin wasn’t responding to these accusations. Instead he said Kazakhstan was working with Switzerland and Liechtenstein to reduce the flow of capital out of the country.

“Already this year, we are planning to put barriers against the movement of capital [to offshore locations] and we will start seeing the results of this policy early next year,” media quoted him as saying.

Kazakhstan has been looking was to bring capital back into the country. Last year it introduced an amnesty for people which repatriated cash. It has said that this amnesty has so far attracted $1b back into Kazakhstan.
ENDS

(News report from Issue No. 222, published on March 11 2015)

Western election monitors say Tajik election was unfair

MARCH 2 2015 (The Conway Bulletin) – A parliamentary election in Tajikistan has wiped out all opposition representation, delivering a chamber that 100% supports President Emomali Rakhmon.

Western observers said that the election had neither been free nor fair.

“Some contestants provided political alternatives, yet the March 1 parliamentary elections in Tajikistan took place in a restricted political space and failed to provide a level playing field for candidates,” the OSCE, Europe’s main democracy watchdog, said in a statement.
Some media quoted observers saying they had witnessed blatant ballot stuffing too.

Importantly, this is the first time that the opposition Islamic Revival Party has failed to win any seats in parliament. It failed to pass the 5% threshold needed to hold a seat in the 63-person chamber.

According to local media, Mr Rakhmon’s ruling People’s Democratic Party won 57 seats in the election with the Agrarian Party, the Party of Economic Reforms and the Socialist Party splitting the other six seats. All three of the minor parties are linked to Mr Rakhmon.
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