Category Archives: Uncategorised

E-space plans to develop electric car market in Georgia

TBILISI, NOV. 4 2016 (The Conway Bulletin) — Two charging points for electric cars have been installed in Tbilisi, media reported, the first move in a push to promote the sector.

E-space, a Georgian company, plans to install 25 more chargers across the city by the end of the year, then 70 more by the end of 2017, followed by chargers along motorways.

Sulkhan Gvalia, former deputy CEO of Bank of Georgia and now E-space CEO, said the sector was ripe for development in Georgia.

“The problem in Georgia is that there is no infrastructure. So that is why we started with that,” he told The Conway Bulletin.

Recharging an electric car will be free until the end of 2017. The Tbilisi city government has said it will pay for the power supply bills at the first two charging points. For the next charging points, E-space wants to sign agreements with shops to host and pay for the power. The shops will benefit from the extra trade generated by drivers stopping to re-charge.

So far, there are 50 electric cars registered in Tbilisi but Nata Kasradze, E-space’s chief product development officer, said sales will rise.

“The visibility of the chargers will change the mentality of people,” she said. “We haven’t imported a single car yet but we already have about 30 requests from people who want to buy a car.”

E-space has five founders and is self-funded. The founders said they had developed a three-point plan for its business. To develop the infrastructure, then open a showroom to sell cars, scooters and motorcycles and finally develop a service centre.

On the streets of Tbilisi not everybody was convinced, though.

Dato, 32, said Georgians with money want to flaunt their wealth by buying a BMW or Mercedes .

“Electric cars are still very expensive,” he said. “Georgians who can afford to spend this amount of money will not spend it on an electric cars which still do not represent wealth.” Gocha, a businessman, agreed.

“This market is for the middle class, but it has to be well marketed so that people can see the benefit coming from it. I do not think that Georgians are ready for that”

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Comment: C.Asia and S.Caucasus eye up a Trump presidency, says Kilner

NOV. 11 2016 (The Conway Bulletin) — Donald Trump, the incoming US president, has a long list of issues that need tackling in Central Asia and the South Caucasus, not least the dominance of China and Russia.

Central Asia, in particular, has traditionally been an arena where the world’s great powers have shadow-boxed, testing each other’s strengths and weaknesses. This is just as true today as it was during the 19th century’s Great Game between Russia and Britain. Now, though, China has entered the fray and the West is led by the US and not Britain.

Since NATO withdrew most of its forces from Afghanistan in 2013/14, US interest in Central Asia has waned and it has ceded diplomatic, economic and cultural influence to Russia and China.

When she was Secretary of State between 2009 and 2013, Hillary Clinton promoted a new north-south Silk Road running from Central Asia to India. This was to be US soft power in action, a commercial push to rival influences exerted by China through its loans and by Russia through its diplomatic and energy levers. It hasn’t shaped up to much, and Clinton wont now be able to see it through, but Trump, a businessman and reality TV star, may be well-placed to invigorate this north-south Silk Road.

Governments in Central Asia and the South Caucasus will also be watching his policies on NATO, Russia and Iran.

Georgia has, perhaps, the most to be concerned about. It has struck out on a determinedly Western direction and needs a strong US and NATO as a counterpoint to Russia. If the US’ commitment to NATO wanes, Georgia will be more vulnerable to Russian aggression. Certainly its two breakaway states, Russia-backed Abkhazia and South Ossetia, will feel emboldened.

Barack Obama brought Iran back into the international community by partly lifting sanctions linked to the development of its nuclear sector. Its reemergence was heralded in Central Asia and the South Caucasus as an opportunity. They will be looking to a US led by Trump to boost, and not deflate, Iran’s place in the world. They want Iran to be an economic driver.

And the US’ relationship with Russia is important too. If US-Russia relations don’t improve, and the Russian economy continues to shrink, this filters through to Central Asia and the South Caucasus.

They will be looking for an improvement in US- Russia relations to generate a boost for the Russian economy.

By James Kilner, Editor, The Conway Bulletin

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Former Georgian President wife quits

NOV. 8 2016 (The Conway Bulletin) — Sandra Roelofs, the Netherlands born wife of former Georgian president Mikheil Saakashvili, has pulled out of taking a seat in Georgia’s parliament, media reported. The United National Movement party performed below expectations at a parliamentary election last month but Ms Roelofs had been second on the party list and could have claimed one of the 27 seats it won through proportional representation.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Deflation continues in Armenia

NOV. 9 2016 (The Conway Bulletin) — In the first ten months of 2016, consumer prices in Armenia decreased by 3.1%, the country’s Statistics Committee said. Importantly, food prices decreased by 6%. Deflation in the country has continued throughout the year, although October registered inflation of 0.5% compared to September. Low economic activity has depressed prices in Armenia and could hinder growth.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Turkmenistan postpones air link with Georgia

NOV. 4 2016 (The Conway Bulletin) — Just weeks after announcing the new connection between Turkmenistan and Georgia, Turkmenistan Airlines suspended direct flights from Ashgabat to Tbilisi because of commercial concerns, Agenda.ge reported. The state-owned company had planned to start flights in September and later delayed the start date to November.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

EBRD gives loan to Armenia

NOV. 9 2016 (The Conway Bulletin) — The EBRD gave a $50m loan to Armenia to modernise a section of the Vanadzor-Bagratashen highway, which connects central Armenia to the border with Georgia. Repair and construction work will be carried out along a 51km section of the road. The European Investment Bank will support the modernisation of another section of the road with a $51m loan. Vanadzor is Armenia’s third-largest city. Armenia-Georgia ties have improved in recent years.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Tajiks and Russian resolve aviation row

NOV. 7 2016 (The Conway Bulletin) — The Tajik aviation authority agreed to give Russia’s Ural Air a licence to fly from Moscow’s Zhukovsky airport to Dushanbe and Khujand, dampening a row that had been intensifying. Last week, after Tajikistan’s initial refusal to allow flights from Zhukovsky, Russia’s aviation committee threatened to cut air links with Tajikistan. Under the new agreement, Tajikistan also won permission to open new routes to Ufa, Chelyabinsk and Barnaul.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Tethys says Kazakh police raided its offices

ALMATY, NOV. 6 2016 (The Conway Bulletin) — Guernsey-registered Tethys Petroleum accused Kazakh police of raiding the offices of its subsidiaries in Kazakhstan days after a financing deal with Kazakhstan- based Olisol collapsed.

Tethys also said it had sacked Alexander Abramov, a principal at Olisol and director at Tethys, the day after the police raids . It accused Mr Abramov and Olisol of triggering the raids.

“We understand that the case was initiated by Mr Abramov. On November 2, 2016 the investigation division of the Internal Affairs Department of Almaty conducted searches of the Company’s offices,” Tethys said. Mr Abramov and Olisol have not commented.

Tethys, which operates oil and gas fields near the Aral Sea, also accused Olisol of other underhand business tactics.

The company said that its two main gas supply contracts were terminated shortly before a deadline for Olisol to pay its proposed investment. This allowed Olisol to back out of the agreement.

Essentially Tethys accused Olisol of deliberately scuppering its finance plans. Tethys had been relying on investment of $10m from Olisol, in return for equity, to push through a tough period for the energy industry.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Reserves drop in Kazakhstan

NOV. 10 2016 (The Conway Bulletin) — Kazakhstan’s Central Bank said its international reserves fell by 2.9% in October to $30.5b, the first decline in four months. Since the beginning of the year, reserves have grown by 13.8%, the Central Bank said. Last year the Central Bank spent a large proportion of its reserves trying to prop up its currency. This year, though, under a new Central Bank chief, the strategy has changed and the Bank has stepped away from intervention.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Georgian Orthodox Church head to visit Moscow

NOV. 7 2016 (The Conway Bulletin) — The head of the Georgian Orthodox Church Patriarch Ilia II will visit Moscow from Nov. 18 until Nov. 25 to, officially, celebrate the 70th birthday of the head of the Russian Orthodox Church Patriarch Kirill, media reported. Ilia II is an important figure in Georgian politics and is often used to as a conduit with Russia. In the immediate aftermath of a war between Georgia and Russia in August 2008, Ilia II was able to travel to Moscow to start talks on repairing relations. He usually meets Vladimir Putin, now Russia’s president, when he visits Moscow. His trip later this month will be his fifth since the Georgia- Russia war.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)