Tag Archives: business

Kazakhstan’s TCO reveals finance plan

JUNE 15 2017 (The Bulletin) — Tengizchevroil (TCO), Kazakhstan’s biggest oil producer, has cut its dividend payment this year to part- fund an expansion project, the CEO of Kazakhstan’s state-owned oil and gas company Kazmuniagas, Sauat Mynbayev, said. Mr Mynbayev also said that TCO would also borrow $20b to fund the $37b expansion project. The TCO expansion is considered a vital step in extending Kazakhstan’s oil production. It will increase production to 39m tonnes per year from 27m tonnes per year by 2022.

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(News report from Issue No. 333, published on June 19 2017)

 

Uzbekistan constructs lead plant

JUNE 11 2017 (The Bulletin) — Uzbekistan has started construction of a $90m lead producing plant near Tashkent. The plant will have a production capacity of 30,000 tonnes of lead per year. Importantly it will provide jobs, something that Pres. Shavkat Mirziyoyev has said is a priority. The lead plant, though, was actually commissioned in May 2016, under the presidency of Islam Karimov.

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(News report from Issue No. 333, published on June 19 2017)

 

EBRD to find solar park in Kazakhstan

JUNE 15 2017 (The Bulletin) — The EBRD is set to finance the construction of a second solar power park in southern Kazakhstan, media reported. The EBRD will give a loan of $45m for the solar power park, the Clean Technology Fund will give $10m and the owners of the field, not named by media, will stump up another $80m. After the construction of Burnoye Solar 2, it will constitute one of the biggest solar power fields in Europe or Central Asia.

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(News report from Issue No. 333, published on June 19 2017)

 

US investors criticise Azerbaijan’s IBA restructuring

JUNE 14 2017 (The Bulletin) — The Wall Street Journal quoted US holders of International Bank of Azerbaijan (IBA) debt as saying that the proposed restructuring deal was unfair and designed to benefit the bank’s Azerbaijani owners. IBA has asked debt holders to write off 20% of their investments in a deal to restructure $3.3b worth of debt. Part of the restructuring process would also mean that the debt is reissued as sovereign bonds.

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(News report from Issue No. 333, published on June 19 2017)

Kazakhstan halves Karachaganak cost expansion

JUNE 16 2017 (The Bulletin) — Kazakh officials said that the cost of extending production at the Karachagank gas condensate field had halved. Murat Zhurebekov, chief executive of PSA LLC, a unit of state energy firm Kazmunaigas, said that the cost of boosting production at Karachagank had halved from an earlier estimate of $9b. He didn’t explain why this estimate had been reduced, although he did say that it was linked to low oil prices. Eni and Royal Dutch Shell each own 29.25% of Karachaganak. Kazmunaigas owns 10%, Chevron 18% and Lukoil 13.5%.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 333, published on June 19 2017)

 

Uzbek President approves French investment

JUNE 14 2017 (The Bulletin) — Uzbek president Shavkat Mirziyoyev signed a decree that formalises an investment by French carmaker PSA, owner of the Peugeot and Citron brands. PSA plans to produce around 16,000 vans every year in Uzbekistan. The Uzbek car-making sector is important domestically as it is one of the few outside the oil and gas sector with foreign investors. US’ GM is a 25% stake holder in a joint-venture with Uzbekistan’s Uzavtosanoat.

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(News report from Issue No. 333, published on June 19 2017)

 

Kazakhstan does not receive special treatment over IBA debt

JUNE 13 2017 (The Bulletin) — Kazakhstan’s Central Bank will not receive preferential treatment from Azerbaijan’s majority state-owned IBA bank when it restructures its debt, a source close to the negotiations told Reuters. Kazakhstan’s state pension fund bought $250m worth of IBA debt in 2014 just as the oil price started to fall. Earlier this year it said that it was having to restructure debt totaling $3.3b. Most creditors face losing 20% of their investments.

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(News report from Issue No. 333, published on June 19 2017)

 

Kazakhstan signs deal with DP World

JUNE 16 2017 (The Bulletin) — Dubai’s DP World signed a deal with the Kazakh government to help develop a communication system between, and within, its various ports, a plan aimed at improving efficiency, media reported. No value was put on the deal and its exact specifics are not known but reports said the system is tried and tested and should help free up time and procedures at customs points. Kazakhstan is upgrading its trade infrastructure ahead of an expected increase in trade linked to China’s “One Belt, One Road” strategy.

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(News report from Issue No. 333, published on June 19 2017)

 

Tajikistan cancels licences for international courier agencies

DUSHANBE, JUNE 19 2017 (The Bulletin) — International courier companies DHL, TNT, UPS and Pony Express are still waiting to be granted operating licences, nearly two weeks after the government suddenly ordered them to stop work.

The authorities told four of the world’s biggest courier companies that they needed to apply for a new licence to continue operations on June 7, but despite consultations and attempts to talk to the authorities none of the companies have yet been able to re-start work.

“We have no idea why this happened so suddenly. We have been working in the country since 1995, and never faced such an issue,” said an employee of UPS in Dushanbe. “We still have not heard anything from the communication services. Most probably the government is trying to popularise Pochtai Tojik [the Tajik Post Office], and remove competition.”

The row is a reminder of the fragile nature of doing business in Tajikistan. At the beginning of the year the government slapped a back-tax fine on mobile operator Tcell just as Sweden’s Telia was trying to sell its 60% stake in the company. Telia accused it of trying to interfere and profit from the sales process.

On the courier companies, the state-run news agency Khovar said that the companies would be able to apply for a new licence if they wanted to return to work.

“The law must be respected. If the above-named companies appeal to the Liaison Service for registration of their license, after a positive decision they will be reopened,” Khovar quoted an unnamed government source as saying.

But an employee of TNT said that getting a new licence wasn’t quite as simple as the Tajik authorities appeared to make out.

“Work in our office has stopped since June 7 and no comments are even made at these days,” she said.

“We applied for the license but there has been no result on that.”

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(News report from Issue No. 333, published on June 19 2017)

 

China’s AIIB lends to Tajikistan

JUNE 17 2017 (The Bulletin) — The Beijing-based Asian Infrastructure Bank (AIIB) approved a $60m loan to Tajikistan to part finance the refurbishment of the Nurek Hydropower station and a $114m loan to part-finance a road bypass around Batumi. The AIIB is a new institutional bank that its critics have said is designed to spread Chinese influence. The United States has declined to become a member.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 333, published on June 19 2017)