Tag Archives: business

Georgia sees no threat to bumper exports from EEU

TBILISI, APRIL 8 2017 (The Conway Bulletin) — The Russia-led Eurasian Economic Union (EEU) trade bloc has not damaged Georgia’s exports, Mariam Gabunia, head of the department for foreign policy at the Georgian economy ministry, told The Conway Bulletin in an interview.

Instead she said that Georgia was on course for a bumper year with exports rising strongly after a dip last year linked to tough economic conditions in Russia, Central Asia and the South Caucasus.

Some analysts have said that the EEU, which is essentially a trade bloc including Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan, would hurt those who didn’t sign up — including Georgia. Ms Gabunia, though, waived aside this notion.

“In general, we do not see any negative impact on Georgia’s trade with regard to the EEU,” she said. “We are part of the CIS free trade agreement and Belarus and Kyrgyzstan are part of it. On top of that we have bilateral FTA (free trade agreements) with Russia, Armenia and Kazakhstan.”

Ms Gabunia’s comments are important because it is one of the first times that a senior official from a government outside the EEU has commented on whether the bloc has hit regional trade. Many businesses within the bloc have been complaining that the extra bureaucracy and the bias towards the larger members have created problems.

Georgia is, to a large extent, still reliant on trade with its former Soviet neighbours. One of the biggest boosts to its economy over the past few years was repairing relations with Russia. Last year it was Georgia’s biggest export market with $200m of sales.

And Ms Gabunia said that bilateral agreements made in the 1990s underpinned Georgia’s trade within the former Soviet Union, taking precedence over EEU rules.

“According to the legislation of the EEU the FTA that were concluded before the creation of the EEU will stay in force. and we had FTA with all these countries before the EEU was created,” she said.

This year has started strongly, mainly because of much improved macroeconomic conditions in Georgia and the rest of the region. Ms Gabunia said that trade relations with Russia had improved along with political relations.

“As far as concerns the other EEU members, the situation is improving,” she said.

“Exports to Belarus increased by 61% in the first two months of 2017, for example.”

According to Geostat, Georgia’s biggest exports are copper ore, ferroalloys, wine, medicines and cars.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 324, published on April 13 2017)

New airport terminal and train station to open in Kazakhstan

APRIL 10 2017 (The Conway Bulletin) — Kazakhstan’s investment minister Zhenis Kasymbek said that a new airport terminal and a new railway station will open in mid-May, less than a month before Astana opens its EXPO-2017 exhibition. Media quoted Mr Kasymbek as saying that after it has been complete, Astana airport will be able to process 7.5m passengers every year. The EXPO-2017 exhibition is being touted as the biggest international festival held by Kazakhstan since independence from the Soviet Union in 1991. President Nursultan Nazarbayev has said that he wants to use it to showcase modern day Kazakhstan.

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(News report from Issue No. 324, published on April 13 2017)f

 

Bridge-banks set up to help ailing banking sector in Azerbaijan

APRIL 7 2017 (The Conway Bulletin) — Azerbaijani MPs have passed a law allowing banks weighed down by debt to transfer their good assets to so-called bridge-banks, media reported. The concept, which inadvertently suggests that the Azerbaijani banking crisis is deepening, suggests that these bridge-banks are then able to re- package the sound assets into new banks which can then be sold on. Several small banks have been closed down in Azerbaijan over the past few years and the government this year bought a controlling state in International Bank of Azerbaijan, the country’s largest bank.

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(News report from Issue No. 324, published on April 13 2017)

Azerbaijan BTC throughput falls

APRIL 5 2017 (The Conway Bulletin) — Azerbaijan’s state oil and gas company Socar said that the amount of oil pumped through the Baku-Tbilisi-Ceyhan pipeline (BTC) had fallen by more than 11% in the first three months of the year, media reported. The fall is linked to a drop in oil being produced by fields in the region, a drop triggered by the collapse in oil prices from $110/barrel in mid-2014 to under $30/barrel in Jan. 2016 and around $50/barrel now. Azearbaijan has exported less oil via BTC and Kazakh producers have turned to the cheaper CPC pipeline that runs around the Caspian Sea to Novorossiya on Russia’s Black Sea coast.

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(News report from Issue No. 324, published on April 13 2017)f

 

Gazprom pays knockdown price for Uzbek gas

APRIL 12 2017 (The Conway Bulletin) — Russian media reported that Gazprom will pay only $125/1,000 cubic metres of gas from Uzbekistan, a relatively low amount. The supply deal between Uzbekistan and Gazprom had been struck at the beginning of April when Uzbek President Shavkat Mirziyoyev visited Moscow and was hailed as a groundbreaking agreement. Analysts, though, have said that a price of $125/1,000 cubic metres is low and represents only $2.5b/year for the five year contract.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 324, published on April 13 2017)

 

Markets: Central Asia Metals

APRIL 13 2017 (The Conway Bulletin) — Central Asia Metals, which is focused on Kazakhstan, posted turnover up 3% at $69.3m for 2016, helping to push up its share price to a five-week high of 242p by April 10.

This has since come off slightly but Central Asia Metals is still threatening to push past an all-time high of 246p set in mid-February. That’s certainly what analysts think. Most of them reiterated a ‘buy’ rating with Peel Hunt targeting 255p and FinnCap targeting 264p.

One of the main attractions for shareholders is the strong dividend that Central Asia Metals pays out. The Motley Fool, a stock analysis blog, explained.

“Shareholders will reap the benefit of this strong performance.

As much as 31% of last year’s revenue will be returned to shareholders by way of a total dividend of 15.5p. This gives a yield of 6.7% at the current share price of 229p,” the Motley Fool wrote before the share price started rising.

“This isn’t a one-off performance. The company’s dividend policy is to return at least 20% of revenue from Kounrad to shareholders each year.”

Kounrad is Central Asia Metal’s low-cost copper producing site in Balkhash, central Kazakhstan.

To underline the Motley Fool’s point, take a look at previous dividends. In 2015 and 2014, Central Asia Metals paid out 12.5p, in 2013 9p and in 2012 10.7p.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 324, published on April 13 2017)f

 

Trail route from Azerbaijan and Georgia to Turkey to open in June

MARCH 29 2017 (The Conway Bulletin) — The Baku-Tbilisi-Kars rail route, considered a vital piece of infrastructure linking the Caspian Sea to Europe, will officially opened in June, media reported by quoting Turkey’s minister of transport, Ahmet Arslan. The route has been severely delayed. It is primarily designed for goods transport but will also carry passenger sleeper trains.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 323, published on April 6 2017)

Food prices rise in Turkmenistan

MARCH 31 2017 (The Conway Bulletin) — The Turkmen government has ordered shopkeepers to raise their prices by 20%, as a kind of unofficial tax to help the state pay for the Asian Indoor and Martial Art Games which it is hosting later this year, the Radio Free Europe/Radio Liberty website reported. It quoted an opposition website and also ordinary people from Ashgabat as saying prices had risen by between 20% and 50% this year on various foodstuffs.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 323, published on April 6 2017)

Azerbaijani president approves tourism plan

MARCH 31 2017 (The Conway Bulletin) — Azerbaijan’s President Ilham Aliyev approved an action plan that is designed to boost beach tourism in the country, media reported. The plan will run to 2020 and is designed to improve infrastructure for tourists wanting beach holidays along Azerbaijan’s Caspian Sea coast. A sharp fall in the price of oil has forced Azerbaijan to try to diversify its revenue streams.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 323, published on April 6 2017)

Hungary’s Wizz Air to fly budget flights to Kazakhstan

ALMATY, APRIL 3 2017 (The Conway Bulletin) — Hungarian low-cost airline Wizz Air said it would open a route from Budapest to Astana, making it the first European budget airline to fly to Kazakhstan.

The first flight will take off from Budapest on June 8, the Wizz Air website said, and the starting price of a one-way ticket will be 40 euros.

The accouchement of the new route, which has been the subject of negotiations since last year, was greeted with excitement by young Kazakhs who want easier access to Europe.

“I think it is a very good news because due to our geographical location it is not that easy to reach Europe and tickets are quite expensive, especially after devaluation (of the tenge in 2015),” said Sabina Serikova, 29, communication specialist. “And now, I think, every working person and even student can afford to go to Europe.”

In a statement, Wizz Air said it would fly twice a week to Astana. It also referenced Astana’s EXPO-2017 exhibition, also opening in June, as a reason to visit the Kazakh capital.

“Connecting the capitals of Hungary and Kazakhstan, we expect this service to significantly contribute to the development of economic and business relations between the two countries and we also believe that our low fares will attract a large number of visitors to both cities stimulating tourism and hospitality industries,” the statement quoted Wizz Air CEO Jozsef Varadi.

Wizz Air, which sees itself as a pan-Central Europe airline, is fast establishing itself as the European airline that best serves the region. It already flies to Kutaisi and Baku.

By comparison, British Airways has cut all its routes to the region over the past few years although other European airlines, Lufthansa and KLM, have retained theirs.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 323, published on April 6 2017)