Tag Archives: Azerbaijan

Russia strengthens base in Armenia

FEB. 23 2016 (The Conway Bulletin) – Russia has reinforced its base in Armenia with four of its latest MiG fighter-jets and a new helicopter, media reported quoting the Russian military. The reinforcements come at a time of increased tension and militarisation between Azerbaijan and Armenia over the disputed region of Nagorno-Karabakh. Russia’s military base in Armenia is one of its largest over- seas bases. It considers it essential for maintaining the balance of power in the region.

ENDS

(News report from Issue No. 269, published on Feb. 26 2016)

Azerbaijan and Iran look to resolve Caspian oil field row

FEB. 23 2016 (The Conway Bulletin) — Iran and Azerbaijan have started negotiations on how to develop the disputed Araz-Alov-Sharg oil project in the Caspian Sea that has lain undeveloped for 18 years.

The talks, part of a visit by Azerbaijani president Ilham Aliyev to Tehran to boost relations, also high- light Iran’s potential to be an important partner in the region now that most international sanctions have been lifted.

The oil and gas website Natural Gas Europe (NGE), quoted two sources close to Azerbaijan-Iran negotiations on talks over the Araz-Alov- Sharg project, which Iran calls Alborz.

It quoted a source close to negotiations as saying that they had “already reached a primary agreement to develop the block jointly, but they had not finalised the details”.

For Western companies any deal between Azerbaijan and Iran to develop the site would create problems.

The SOCAR website still shows off a production sharing agreement for the field signed in 1998 by several Western oil and gas companies including BP, Statoil and Exxon.

That PSA may turn out to be worthless and, if Azerbaijan and Iran can agree on the field’s ownership, may be torn up in favour of a bilateral Azerbaijani-Iranian deal.

ENDS

(News report from Issue No. 269, published on Feb. 26 2016)

Azerbaijani economy to shrink

FEB. 23 2016 (The Conway Bulletin) – The Economist Intelligence Unit (EIU) said that it was likely Azerbaijan’s economy would contract in the first quarter of 2016. This would be the first time since the last quarter of 2011 that Azerbaijan’s economy has contracted. For an economy to be considered to be in recession, GDP needs to shrink for two consecutive quarters. The main factor in Azerbaijan’s poor economic outlook is the consistent low oil prices.

ENDS

(News report from Issue No. 269, published on Feb. 26 2016)

Azerbaijan’s AZAL to create low- cost carrier

FEB. 22 2016 (The Conway Bulletin) — Azerbaijan’s flagship airline AZAL will create a new low-cost company to service short-haul destinations in the South Caucasus and Central Asia. Azaljet, the new airline will start operations on March 28.

ENDS

(News report from Issue No. 269, published on Feb. 26 2016)

Azerbaijan upholds sentence

FEB. 24 2016 (The Conway Bulletin) – Azerbaijan’s Supreme Court upheld a conviction of tax evasion and abuse of authority against human rights lawyer Intiqam Aliyev who was arrested in August 2014 and sentenced in August 2015 to 7-1/2 years in prison. Critics of Azerbaijan have said that the authorities have been suppressing any form of opposition to President Ilham Aliyev and his cohort of elites.

ENDS

(News report from Issue No. 269, published on Feb. 26 2016)

Azerbaijan’s CBank increases rates

FEB. 15 2016 (The Conway Bulletin) – Azerbaijan’s Central Bank raised its key interest rate for the first time since 2011 to try to bolster its ailing currency. It raised its key interest rate to 5% from 3%. The manat has lost 50% of its value over the past year as oil prices fall. Oil is Azerbaijan’s key export.

ENDS

(News report from Issue No. 268, published on Feb. 19 2016)

Azerbaijan exports electricity

FEB. 7 2016 (The Conway Bulletin) – Azerbaijan sent its first consignment of electricity to Turkey, the start of what it hopes will become a significant export venture. The volume of electricity sent to Turkey measured 80MW and was transmitted through the Azerbaijan- Georgia-Turkey electricity network.

ENDS

(News report from Issue No. 267, published on Feb. 12 2016)

Inflation jumps in Azerbaijan

FEB. 10 2016 (The Conway Bulletin) – Prices in Azerbaijan jumped by 5.8% in January compared to December, according to the national statistics committee. The statistics committee said food prices rose 8.7% last month. In December the Central Bank allowed the manat currency to float free against the US dollar. This triggered a 35% devaluation in its value, putting prices under enormous pressure to rise.

ENDS

(News report from Issue No. 267, published on Feb. 12 2016)

Tecnimont to build plant in Azerbaijan

FEB. 5 2016 (The Conway Bulletin) – Italy’s Maire Tecnimont signed a $180m deal with Azerbaijan’s SOCAR Polymer to build a polyethylene plant near Baku, local media reported. The plant is part of SOCAR’s petrochemical complex in Sumgayit, 30km north of Baku. SOCAR Polymer is a subsidiary of SOCAR, Azerbaijan’s state-owned oil and gas company.

ENDS

(News report from Issue No. 267, published on Feb. 12 2016)

Azerbaijani bank declares bancruptcy

FEB. 8 2016 (The Conway Bulletin) – Texnikabank became the fourth commercial bank in Azerbaijan to declare bankruptcy since the Central Bank started to withdraw licences from those banks it considers to be too small or weak. The Central Bank has previously said that people with savings of up to 30,000 manat ($19,000) will be fully compensated if their savings bank goes bankrupt. In January, Azerbaijan withdrew the licence for at least eight banks to operate because they fell below the required minimum capitalisation limit. Those banks have been choosing whether to merge or to go bankrupt since then.

ENDS

(News report from Issue No. 267, published on Feb. 12 2016)