OCT. 2 2015 (The Conway Bulletin) – Kazakhstan is on target to produce 17.3m tonnes of grain this year, up from the 17.1m tonnes produced last year, media reported quoting the agriculture ministry. Grain has become an important export commodity for Kazakhstan. The ministry also said it is trying to find more clients for its grain in SE Asia.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 29 2015 (The Conway Bulletin) – Russian utilities company Inter RAO sold Armenia’s electricity network for an undisclosed amount to the Moscow-based Armenian billionaire Samvel Karapetyan. The deal has come as a surprise.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 30 2015, TBILISI (The Conway Bulletin) — Real estate prices in the Georgian capital have fallen by 15% this year, a drop that industry insiders blame on the collapse in the value of the lari currency.
In an interview with The Conway Bulletin, Anna Jalagonia, president of the Georgian Association of Realtors, said a 40% fall in the lari since last summer had spooked foreign investors.
“Investors prefer to wait because of the unstable situation in the country,” she said.
This bodes badly for Georgia, whose economy is to a large extent dependent on foreign investment.
Like the rest of the region, a slump in oil prices and the sluggish economic performance of Russia, the region’s main driver, has undermined Georgia’s economy. The Central Bank has spent millions of dollars trying to protect the value of the lari, inflation is rising and GDP growth rates are being revised down.
Neli Goguadze, director of the real estate agency Kibe, said that the situation in Georgia’s real estate sector had reached a tipping point.
“The problems began a few months ago due to the devaluation of the national currency,” she said. “For there to be a revival, the market needs a serious boost.”
Last month, the Central Bank increased its key interest rate to 7%, it’s highest rate since December 2011, as it tried to support the lari.
But some real estate analysts said that this interest rate increase may actually cause more problems.
“Real estate transactions are usually made in US Dollars,” said Papuna Kokhtashvili, owner of the Georgian franchise of US-based RE/MAX Property Advisors. “The increase in interest rate for loans results in a reduction of demand for property.”
And is could get worse, as Ms Jalagonia of the Association of Realtors explained during her interview.
“At the end of the year the situation will be worse as the national currency rate will continue to influence the market and winter and the fall are usually slow times for real estate acquisition. That combined will be a problem,” she said. “Prices for residential real estate have already fallen by about 15% and will continue to decline.”
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 29 2015 (The Conway Bulletin) — Shangfeng Cement, a Chinese cement producer, aims to raise 1.5b yuan ($235m) to fuel its expansion into Tajikistan and Uzbekistan. The two projects Shangfeng plans in Central Asia both have a capacity to produce 3,200 tonnes of cement per day and will cost around $130m. Shangfeng plans to sell its cement in Tajikistan, Uzbekistan and northern Afghanistan.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 25 2015 (The Conway Bulletin) — Finnish-based Wärtsilä won a tender to build a 40MW combined heat and power (CHP) plant near the Caspian port of Aktau, in west Kazakhstan. The Kazakh company KazAzot will manage the plant, which Wärtsilä plans to complete in late 2016. The plant will power the city of Aktau and its industrial hub.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 28 2015 (The Conway Bulletin) — Iran Khodro Industrial Group (IKCO) will export 500 cars to Tajikistan later this year as a test run ahead of potentially investing in a production site, Iranian media reported. The private company based in Tehran manufactures the Samand brand of family cars. Saeed Tafazzoli, the company’s deputy CEO, said he wants to take the brand into Central Asia.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
BISHKEK, SEPT. 25 2015 (The Conway Bulletin) — Alluding to concerns about the impact of the Kremlin-lead Eurasian Economic Union, Kyrgyzstan’s deputy PM Vladimir Dil said cheap products from Russia and Kazakhstan have been flooding the market.
Many politicians and government officials in Kyrgyzstan were sceptical in August about the benefits of joining the trade block that includes Russia, Kazakhstan, Belarus and Armenia. Some said that the Kremlin views the Eurasian Economic Union as a political project and that it pressured Kyrgyzstan, which has become increasingly reliant on Russia for economic and military support, into joining.
Now Mr Dil has stepped out and seemingly openly criticised the Eurasian Economic Union.
“We are seeing a very large flow of goods from Kazakhstan and Russia to our side. The changes in the exchange rates of the rouble and the tenge has turned goods in markets of our allies far cheaper than ours,” Mr Dil said. He didn’t explicitly mention the Eurasian Economic Union but the inference was clear. Kazakhstan cut its peg to a US dollar towards the end of August. The Kazakh tenge immediately lost around a quarter of its value.
A large drop in the value of the tenge and entry to the Eurasian Economic Union, it appears, has exposed Kyrgyzstan to cheap imports.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 29 2015 (The Conway Bulletin) — Kazakh lender BTA Bank completed the buyout of its shares from Samruk- Kazyna by buying the final 4.26% stake that Kazakhstan’s sovereign wealth fund owned in it. Samruk-Kazyna bought BTA to save it from collapse during the Global Financial Crisis of 2008/9. Over the past year, Kazkommertsbank, another Kazakh bank, has merged with BTA Bank.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 29 2015 (The Conway Bulletin) – Georgia energy minister Kakhaber Kaladze met up with Gazprom chairman Alexei Miller in Brussels to discuss Georgia’s role as a client and transit country for Russian gas. Media didn’t give details of the meeting but it did speculate that Georgia may be looking for help from the Kremlin to fill its energy deficit.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 29 2015 (The Conway Bulletin) — Russian state-owned company Gazprom started supplying natural gas to Azerbaijan. Initial volumes stand at 6m cubic metres per day, the contract between the two parties envisages a maximum yearly supply of 2b cubic metres. Azerbaijan said the contract was struck because of economic growth and an increase in domestic consumption.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 250, published on Oct. 2 2015)
