Tag Archives: business

Azerbaijan halts currency trades

SEPT. 2 2016 (The Conway Bulletin) — Banks in Azerbaijan’s capital have stopped selling foreign currency as demand soared after the Azerbaijani manat started to depreciate, triggering memories of the currency’s double devaluation last year.

The news will be disappointing to Central Banks across the Central Asia and South Caucasus region who had hoped to have moved away from the currency crises of 2014 and 2015.

According to sources in Baku, the manat traded at 1.68/$1, 5% lower than last month. They said that many Azerbaijanis now fear that another crisis is around the corner and have tried to hoard foreign currency. Bloomberg reported that 15 banks in Baku and the city’s international airport had stopped selling US dollars, a sign that demand had surpassed availability.

Azerbaijan’s economy is particularly vulnerable to the vagaries of oil prices, which have collapsed since 2014, and it is set to shrink this year for the first time since the mid-1990s.

ENDS

(News report from Issue No. 294, published on Sept. 2 2016)

Azerbaijan’s oil shipments to Russia fall

SEPT. 2 2016 (The Conway Bulletin) — Azerbaijan’s state-owned oil company SOCAR shipped 729,000 tonnes of oil through Russia’s pipeline network in Jan.-Aug. 2016, a 22% fall compared to the same period last year. The fall is mostly due to a halt in shipments via the Baku-Novorossyisk pipeline in the Jan.-Feb. 2016, while the countries were negotiating a new deal. Monthly shipments are now back at the same levels as last year.

ENDS

(News report from Issue No. 294, published on Sept. 2 2016)

ADB approves loan to Kazakhstan

SEPT. 1 2016 (The Conway Bulletin) — The Asian Development Bank (ADB) approved a $240m loan to help Kazakhstan improve a 185-km highway around its northern Caspian Sea shore to Russia. The road is important to link Kazakhstan to Russia and the South Caucasus via land, giving it further access to European markets. The ADB said the road improvements will open up new trade and investment opportunities.

ENDS

(News report from Issue No. 294, published on Sept. 2 2016)

Georgian PM visits Azerbaijan

SEPT. 1 2016 (The Conway Bulletin) — Georgian PM Giorgi Kvirikashvili paid an official visit to Azerbaijan to discuss partnership in joint infrastructure projects with President Ilham Aliyev. Mr Kvirikashvili was accompanied by energy minister Kakha Kaladze and deputy foreign minister Gigi Gigiadze. The parties discussed the latest developments in the construction of the Baku-Tbilisi-Kars railway and the Southern Gas Corridor pipeline network.

ENDS

(News report from Issue No. 294, published on Sept. 2 2016)

Beeline and Kcell join forces in Kazakhstan

AUG. 31 2016 (The Conway Bulletin) — Kcell and Beeline, two of the largest mobile operators in Kazakhstan, signed a network sharing agreement that will allow their users to access 4G/LTE services across the country. Kazakhstan liberalised access to the 4G network earlier this year. Swedish Telia Company controls Kcell, while Russia’s VimpelCom owns Beeline.

ENDS

(News report from Issue No. 294, published on Sept. 2 2016)

Turkmen president to fly to Berlin

AUG. 28 2016 (The Conway Bulletin) — Turkmen president Kurbanguly Berdymukhamedov was due to visit German Chancellor Angela Merkel in Berlin, a rare European trip for Turkmenistan’s leader. The visit is likely to focus on potential gas supplies to Europe from Turkmenistan but human rights groups have been piling pressure on Ms Merkel to bring up their various human rights grievances with Mr Berdymukhamedov.

ENDS

(News report from Issue No. 293, published on Aug. 29 2016)

Kazakhstan’s Halyk Bank sees profits rise

AUG. 19 2016 (The Conway Bulletin) — Halyk Bank, Kazakhstan’s second largest lender, posted a year-on-year net profit increase of over 20% at the end of Q2 because it had been able to charge higher interest fees on loans. Importantly, too, Halyk Bank also said that non-performing loans had dropped to 12% of their portfolio from 12.9% at the end of March.

ENDS

(News report from Issue No. 293, published on Aug. 29 2016)

Russia’s MTS sells Uzbek business

AUG. 5 2016 (The Conway Bulletin) — Russian mobile phone operator MTS, which is listed on the New York stock exchange, said it had sold its business in Uzbekistan to the Uzbek government. The US authorities have been investigating alleged corruption at MTS’s Uzbek operations. MTS owned a 50% stake in UMS, the country’s third largest mobile operator. Various governments have launched a series of investigations into corruption by mobile operators in Uzbekistan.

ENDS

(News report from Issue No. 292, published on Aug. 12 2016)

KMG EP minority shareholders defeat Kazakhstan’s oil and gas plans

AUG. 3 2016 (The Conway Bulletin) — After months of increasingly bitter rows, minority shareholders at London-traded KMG EP voted against selling their stakes in the company to its parent Kazakhstan’s state owned Kazmunaigas. Kazmunaigas had been looking to boost its 58% stake in the company, one of its few assets which have been doing relatively well during an increasingly tough oil-linked economic downturn. KMG EP mainly owns downstream operations which earn US dollars. These have been more profitable than many of KMG’s upstream operations.

ENDS

(News report from Issue No. 292, published on Aug. 12 2016)

KazTransOil revenues drop

JULY 28 2016 (The Conway Bulletin) — Kazakhstan’s state-owned oil pipeline operator KazTransOil said its revenues fell by 1.2% to 96b tenge ($273m) in H1 2016, compared to the same period last year. KazTransOil, part of the Kazmunaigas group of companies, also said that it transported 10% less oil in H1 2016.

ENDS

(News report from Issue No. 291, published on Aug. 1 2016)