NOV. 6 2016 (The Conway Bulletin) — The directors of the National Iranian Gas Exports Company (NIGEC) and the Georgian International Energy Corporation (GIEC) met to define terms of a supply deal they made in July. NIGEC agreed to sell 40m cubic metres of gas to GIEC in the second half of 2016. GIEC is a subsidiary of Georgian Industrial Group.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 304, published on Nov. 11 2016)
TBILISI, NOV. 7 2016 (The Conway Bulletin) — Former Georgian President Mikheil Saakashvili quit as governor of the Odessa region in Ukraine after 17 months, blaming unbreakable links between politicians and corruption.
His resignation came less than a week after it was confirmed that his United National Movement (UNM) had been badly beaten in a parliamentary election in Georgia. Mr Saakashvili had been hoping to return to frontline politics in Georgia if the UNM had retaken parliament.
Instead, the UNM, and Mr Saakashvili were humiliated, winning 27 seats in the 150-seat parliament, down from 65 in 2012.
Mr Saakshvili had been given the job of heading the Odessa region by Ukraine President Petro Poroshenko on a pledge to combat corruption.
Analysts said that the bombastic Mr Saakashvili may now be preparing to set up a new political party in Ukraine or even be angling for a job under US President-elect Donald Trump.
In the aftermath of Mr Trump’s election victory on Nov. 8, Mr Saakashvili wrote on his Facebook site: “We’ve been friends for more than 20 years. I predicted this accurately.”
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 304, published on Nov. 11 2016)
NOV. 9 2016 (The Conway Bulletin) — The US embassy in Dushanbe issued a warning that Islamic militants were planning to attack large gatherings and kidnap people near the border with Afghanistan.
It said US citizens should avoid crowds and refrain from camping near the border.
“Terrorist groups may attempt to target large public gatherings and/or border crossings with Afghanistan,” it said in a statement.
The warnings comes a month after a similar warning was released in Kyrgyzstan. Governments in Central Asia have been worried both by a rise in the intensity of recruitment drives by the IS extremist group and by the encroachment north of the Taliban.
The US embassy did not give any more details of the threats or what had triggered the warning.
Media later quoted an official from the Tajik government as saying that the warning was overblown and that there was no threat to Tajiks or foreigners.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 304, published on Nov. 11 2016)
BISHKEK, NOV. 7 2016 (The Conway Bulletin) — Canadian mining company Centerra Gold, owner of the Kumtor mine in Kyrgyzstan, reported a profitable Q3 for the first time in five years because it had cut costs and processed higher grade, and more valuable, gold but said it is still unable to access cash held in the company’s bank account.
Also, in the first nine months of 2016 the company turned a profit of $87.9m, compared to $44.5m in the same period last year. Centerra also revised upwards by 7% its yearly production guidance to 520,000 – 560,000 ounces. This is important because Kumtor is the single biggest economic asset in Kyrgyzstan, delivering around 10% of its total GDP.
But Centerra, which is 32% owned by the Kyrgyz government, also said that Bishkek’s Supreme Court rejected its appeal in October against a freeze of Kumtor’s bank account. Importantly, the Supreme Court’s decision came just one day after Centerra finalised the buyout of Canada’s Thompson Creek, which Kyrgyz lawmakers had fiercely opposed.
A Bishkek Court has frozen Kumtor’s bank accounts since June because of an unpaid environmental fine. Centerra has said the fine is politically motivated. The two sides have been locked in a row over ownership of the Kumtor gold mine.
CEO Scott Perry said the ongoing spat meant Centerra could not pay a dividend this quarter and hinted it may have to raise external finance.
“Absent access to cash held by KGC (Kumtor), the Company expects that it will be required to raise financing in order to fund construction and development expenditures on its development properties or to defer such expenditures,” he said in Centerra’s statement. The Kyrgyz government has not commented.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 304, published on Nov. 11 2016)
NOV. 5 2016 (The Conway Bulletin) — Tajik President Emomali Rakhmon inaugurated a new steel plant in the city of Hisor, in western Tajikistan. The plant, which cost 250m somoni ($31.8m) to build, will produce between 100,000 and 200,000 tonnes of steel and other metals. Faroz, a construction company, will be the plant’s main customer.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 304, published on Nov. 11 2016)
NOV. 2 2016 (The Conway Bulletin) — Kazakhstan’s Parliament approved a law to establish an International Atomic Energy Agency-sponsored low-enriched uranium fuel bank in the country. For years, Kazakhstan lobbied the Agency to establish a nuclear fuel bank in its territory, as a testimony of the country’s efforts to combat nuclear proliferation. Kazakhstan is the world’s largest producer of uranium.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 303, published on Nov. 4 2016)
OCT. 27/28 2016 (The Conway Bulletin) — Under orders from Azerbaijani President Ilham Aliyev to seek out more economic opportunities, economic development minister, Shahin Mustafayev, travelled to Tbilisi to meet his counterparts and mull over various deals.
The meeting is important because it shows how Azerbaijan is looking to boost economic links with its immediate neighbours to help it through an economic downturn. As well as increasing trade with Georgia, Azerbaijan has reached out to Iran and Russia.
Official data showed that last year Azerbaijan invested a record $500m into Georgia’s economy. SOCAR, its state-owned energy company, is one of the most highly visible brands in Georgia with 120 fuel filling stations. Pipeline politics have also brought the two neighbours closer. Georgia is a host country for various oil and gas pipelines running from Azerbaijan’s Caspian Sea coast to Turkey and Europe.
And after their meeting in Tbilisi, Georgian officials said that they expected trade between the two countries to increase further.
“Businessmen of Azerbaijan and Georgia will soon start joint business projects to move forward the economy of the two countries,” media quoted Maya Mikeladze, a Georgian Presidential adviser, as saying.
Analysts were more cautious, though. Natig Jafarli, an Azerbaijani economist and opposition activist, said that in current economic conditions a boost in business deals was unlikely. Georgia was still important to Azerbaijan, though.
“Georgia is a window to Europe for Azerbaijan and a major transit corridor,” he said. “Baku will continue to play a vital role in the economy of Georgia.”
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 303, published on Nov. 4 2016)
NOV. 4 2016 (The Conway Bulletin) — Since the passing of late-President Islam Karimov, Uzbekistan has been striding towards improving relations with its neighbours and, perhaps most importantly, its business climate.
This week’s decision to comply with International Labour Organisation regulations on freedom of assembly will allow the country to climb up the rankings of transparency and ease of doing business, as both workers and companies will, at least on paper, will enjoy more freedoms.
In early October, acting President and PM Shavkat Mirziyoyev also said that the authorities will have to ease up on ordering police raids on businesses, which investors have condemned as a way for public officials to ask for bribes. From Jan. 2017, police checks will have to be scheduled, unless there is a clear breach of the law.
Besides integrating better policies in its closed and strict regulatory system, Uzbekistan also seems to be opening up to new trade routes, as it has re-kindled its air link to London. This will open up in December.
Regular flights from Uzbekistan to Europe’s financial capital have suffered hiccups over the past decade and they were finally recently suspended. Uzbekistan Airways’ proposal to re-open the route, even just for a short term, could be important to put Tashkent back on the investors’ map.
All the recent improvements in Uzbekistan’s business sector, however, cannot overshadow problems with political and human rights. In December, Mr Mirziyoyev will be elected president. If Uzbekistan wants to convince investors, he will have to make progress in relaxing its regime and grant more freedoms.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 303, published on Nov. 4 2016)
OCT. 28 2016 (The Conway Bulletin) — Kazakhstan-focused copper miner KAZ Minerals posted a strong Q3 operational report, more than tripling production compared to the same period last year, mainly due to the coming online of the Aktogay and Bozshakol projects.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 303, published on Nov. 4 2016)
OCT. 28 2016 (The Conway Bulletin) — Kazakhstan’s Central Bank aims to hire foreign managers to oversee spending of the foreign currency- denominated element of its pension fund, worth around $5b. The hiring process could kick-start next year, according to one source at the Central Bank. Foreign currency-denominated assets make up around 21% of the $20b pension fund. The Central Bank aims to increase the share to 23% this year.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 303, published on Nov. 4 2016)
