Tag Archives: business

EU wants improved ties with Azerbaijan

FEB. 29 2016 (The Conway Bulletin) – On a trip to Baku, Federica Mogherini, a European Commission vice-president in charge of external affairs, said the European Union and Azerbaijan need to work hard to improve relations which have soured over the past few years.

Ms Mogherini made the comments during a two-day trip to Baku and to Armenia’s capital Yerevan.

“It is time for a new chapter in the relations between the EU and Azerbaijan. We need an all-round strategic partnership between us,” she said during a speech to the Southern Gas Corridor Advisory Council.

“We have not always seen eye to eye in all matters, and we know that differences will remain between us in some areas. This is normal in international relations and often in European and even national politics.”

Europe has been vocal over what it has said is a systematic crackdown by the Azerbaijani authorities against civil society and the media. The Azerbaijani government has responded by accusing Europe and the United States of meddling in affairs which aren’t theirs and of trying to stir a revolution.

The result has been a drift by Azerbaijan towards Russia.

Still, Europe and Azerbaijan have been working together on a pipeline network running from the Caspian Sea to central Europe.

Europe wants to reduce its reliance on Russia for gas and its sees Azerbaijan as the solution. The pipeline network is dubbed the Southern Gas Corridor.

Ms Mogherini was careful to avoid direct mention of human rights and media freedom in her speech but the underlying message would have been clear and her speech was an important step towards, tentatively, mending Azerbaijan-EU relations.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 270, published on March 4 2016)

 

Government sells Air Kyrgyzstan

FEB. 24 2016 (The Conway Bulletin) — The Kyrgyz government said it is ready to sell off a 49% stake in Air Kyrgyzstan, the national carrier, as part of the state privatisation programme. The government owns Air Kyrgyzstan through the state-owned Fund of State Property Management.

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

 

Striking Georgian miners storm office

FEB. 24 2016, TBILISI (The Conway Bulletin) — Part of a group of 1,500 striking Georgian miners stormed an office belonging to Georgian Industrial Group (GIG) who they accuse of paying salaries far below the market rate and of presiding over poor working conditions at its coal mine at Tkibuli.

The miners have now been on strike for 12 days. The scale of the strike, both its length and the number of strikers, makes it one of the most serious in recent Georgian history.

A video showed miners wearing heavy leather jackets climbing over a compound fence and then pushing in a gate to the GIG office in Tkibuli, central Georgia. Clearly angry and distressed, miners said that they earned $200 a month which, they said, was barely sufficient to survive on.

They want a 40% pay rise and an improvement in the mine’s health and safety record. Media said that 15 miners have died in separate accidents at the mine since 2009.

GIG has said that while it sympathises with some of the workers’ demands, it simply can’t afford to increase their salaries by as much as they want because of falling prices and demand for coal.

“Saknakhshiri GIG as a company of high responsibility will not issue unrealistic promises and will not make populist statements on the immediate increase of the salaries at this stage,” the company said in a statement after meeting the miners.

For the government, the strike piles more pressure on its various economic policies ahead of a parliamentary election later this year. A recession in Russia and a fall in its own currency has hit Georgia’s economy. Growth rates have been reduced, inflation is rising.

And the Tkibuli miners are not the only group of workers striking in Georgia. Media reported that workers at a glass factor in Ksani have also gone on strike.

Other companies, especially in the mining sector, have been laying off workers.

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

 

Stock market: Tethys and Olisol

FEB. 22 2016 (The Conway Bulletin) — Tethys shares have surged back from their historical low of 1.63p after the company announced a change in the agreement with Olisol, which will allow Tethys to raise cash via a loan in Kazakhstan.

John Bell, Tethys’ executive chairman said that “in entering into this agreement, Tethys has gained a strong in-country strategic partner which has committed to remaining a minority shareholder.”

Olisol has thus finally and concretely become Tethys’ partner. After months of sustained low oil prices and fickle exploration and production data, Tethys was looking for a cash injection to finance its operation and restore investors’ trust.

Now Olisol and, likely, Bank RBK will complete a loan transaction for $10m and the deal with Olisol will go ahead as agreed last November. The entire deal should be completed within the next two months, according to Tethys.

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

Pegasus expoands to Azerbaijan

FEB. 23 2016 (The Conway Bulletin) — Turkish airline Pegasus said it will launch its new Istanbul-Gabala route to Azerbaijan on March 18. Pegasus will fly to the town of Gabala, in central Azerbaijan, three times a week.

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

 

Finally, McDonald’s set to open in Kazakhstan

ALMATY, FEB. 25 2016 (The Conway Bulletin) — McDonald’s said it will open its first restaurant in Kazakhstan on March 8 in central Astana, concluding the US food giant’s lengthy process for entering the Kazakh market.

The company previously said it planned to open its first restaurant in the second half of 2015. After years of rumours as to when McDonald’s would come to Kazakhstan, its first restaurant is now ready to open its doors.

The company plans to open a total of 16 restaurants in the next five years across the country.

In Kazakhstan, McDonald’s will partner with Kairat Boranbayev, a former head of Russo-Kazakh energy joint venture KazRosGas. Mr Boranbayev is also close to Kazakh President Nursultan Nazarbayev. His daughter Alima married Mr Nazarbayev’s grandson Aisultan.

McDonald’s said Mr Boranbayev’s involvement is purely related to business.

“Kairat [Boranbayev] has a diverse business background and a proven track record of running successful business ventures in his home country as well as our restaurants in Belarus,” Khamzat Khasbulatov, McDonald’s director in Russia, said in a statement.

In Kazakhstan, McDonald’s will face competition from KFC, Burger King and Hardee’s.

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

Kazakh Parliament to discuss neew subsoil law

FEB. 23 2016 (The Conway Bulletin) – A new subsoil law in Kazakhstan, which Western investors hope will reduce costs and improve access to geological information, will be presented to parliament within the next few months, Aset Magauov, the deputy energy minister said. Kazakhstan has been developing a new subsoil law for the past 18 months.

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

 

Russia accuses Azerbaijan of aiding Turkey

FEB. 23 2016 (The Conway Bulletin) – Russia’s agricultural watchdog accused Azerbaijan of re-exporting potatoes from Turkey to Russia to help their Turkish allies beat Russian sanctions.

This is the first time that Russia has accused a country from Central Asia and the South Caucasus, which have loyalties to both the Kremlin and Ankara, of helping Turkey dodge sanctions imposed last year after a Turkish fighter-jet shot down a Russian fighter-jet over Syria.

“After inspecting the food shipments coming from Azerbaijan and Iran to ensure their commitment to Russia’s decision to prevent the import of agricultural products from Turkey, we have noted that Azerbaijan has doubled its potato shipments to our country by five times since last January,” Sergei Dankvet, head of the agricultural watchdog, told media.

He also said Russia had complained to Azerbaijan and warned it of potential consequences. Companies in the Baltics have previously used Central Asia to skip EU sanctions to send their dairy goods to Russia.

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

 

Editorial: Azerbaijan and potatoes

FEB. 26 2016 (The Conway Bulletin) – Azerbaijan,it could be said, is caught between a rock and a hard place.

Two of its allies are at loggerheads and now Russia has accused it of trying to help shift potatoes around sanctions it imposed on Turkey after a Turkish warplane shot down a Russian warplane over Syria.

Azerbaijani businesses are having a tough time. The economic downturn has been tough on them and the prospect of earning a percentage may have been too much for them to ignore. Of course, they may also have just wanted to help out their regional Big Brother, Turkey.

Whatever the reason, the accusation from Moscow has thrown a spotlight on Central Asia and the South Caucasus over their sanction-beating roles.

Last year, Baltic suppliers sent dairy products to Uzbekistan for re-export to Kazakhstan and then to Russia, circumventing Western sanctions against Russia. This year Aktau port said shipments from Turkey had increased by 10-times, although they didn’t say goods were being sent on to Russia.

The region, it appears, has become a transit hub for Russia-bound goods.

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

 

Uzbekistan finishes railway

FEB. 25 2016 (The Conway Bulletin) – Uzbek officials said that work on a $1.63b railway section in the Fergana Valley had been completed, meaning that trains can now travel from Tashkent without having to pass through Tajikistan.

Although the cost of the 123km track is high, driven up by kilometres of tunnels and bridges that were needed to breach the mountainous terrain, for Uzbekistan cutting out the irritation of having to deal with Tajikistan makes it worth it.

Uzbekistan and Tajikistan have been at loggerheads since the breakup of the Soviet Union in 1991.

At its core, Uzbekistan worried about Tajik plans to build hydropower dams across rivers that feed Uzbekistan’s cotton crops. Tajikistan doesn’t like Uzbekistan’s unilateral stance.

This impacted rail traffic, which steadily dropped off.

The World Bank estimated the route will transport 600,000 people and 5 tonnes of freight every year. The project also underlines the financial might of China in the region. It paid $350m of the cost of the project, the World Bank paid $190m and the Uzbek government covered the rest.

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Copyright ©The Conway Bulletin — all rights reserved

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