JUNE 13 2016 (The Conway Bulletin) – Kazakhstan’s oil output fell by 7% to 1.5m barrels/day in April compared to the same period in 2015, the Organisation of Petroleum Exporting Countries (OPEC) said in a monthly report. Kazakhstan’s Statistics Committee said total oil production shrank by 2.8% in Jan.-May 2016, to 27.7m tonnes, compared to the same period in 2015.
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(News report from Issue No. 285, published on June 17 2016)
ALMATY, JUNE 10 2016 (The Conway Bulletin) — To much excitement, and a little controversy, McDonald’s opened its first restaurant in Almaty, Kazakhstan’s biggest city.
This is the second McDonald’s in Kazakhstan after a restaurant it opened in Astana in March.
At the opening on the site of an old cinema which heritage activists had campaigned to try and protect, Kairat Boranbayev, owner of the McDonald’s franchise in Kazakhstan and Belarus, said that the company aimed to build a total of 15 stores in Almaty and 10 in Astana.
The long-awaited opening of the McDonald’s restaurants has been one of the few positives for President Nursultan Nazarbayev this year, marked by a sharp drop in Kazakhstan’s economic outlook because of a recession in Russia and a fall in oil prices. Ordinary Kazakhs have seen inflation rise, jobs disappear and tenge savings wiped out.
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(News report from Issue No. 285, published on June 17 2016)
JUNE 16 2016 (The Conway Bulletin) – Pasha Bank, one of the largest banks in Azerbaijan, said it will launch a $200m Eurobond issue in the second half of the year. The bank expects yields of around 5%, Ivan Uglyanitsa, head of investment banking, told Reuters. Azerbaijan’s sovereign debt gives a yield of around 3.5% currently.
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(News report from Issue No. 285, published on June 17 2016)
JUNE 15 2016 (The Conway Bulletin) – Russian miner Polymetal said it reached an agreement with Sberbank for a $350m loan to finance the start-up of its Kyzyl project in north-eastern Kazakhstan. In 2015, it bought the Kyzyl project for $620m from Sumeru, a private group owned by Timur Kulibayev, son-in-law of Kazakh President Nursultan Nazarbayev.
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(News report from Issue No. 285, published on June 17 2016)
JUNE 10 2016 (The Conway Bulletin) – The World Bank approved a $978m loan to finance the construction of a road link across Kazakhstan, which will complete the transit corridor between Astana and the west of the country. The project will cost a total of $1b and will be partly funded by the government. The World Bank is also funding part of the Kazakh section of the Western Europe – Western China highway.
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(News report from Issue No. 285, published on June 17 2016)
JUNE 15 2016 (The Conway Bulletin) – Azerbaijan’s state-owned Baku Non-Ferrous Metals & Ferroalloys Company said it will launch in 2017 a new plant for the production of ferrosilicon and ferrosilicon manganese, two ferroalloys used in the heavy industry. The plant will be located at the Sumgayit Chemical Industrial Park outside of Baku.
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(News report from Issue No. 285, published on June 17 2016)
JUNE 12 2016 (The Conway Bulletin) – International Bank of Azerbaijan, the country’s largest lender, will issue a $500m loan to Iran for the construction of the Rasht-Astara railway section, part of a rail link from Qazvin to Astara, around the southern shore of the Caspian Sea. The total cost of the Rasht-Astara segment is projected to be $1.1b. The countries of the South Caucasus have been quick to engage Iran in business since sanctions were lifted earlier this year.
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(News report from Issue No. 285, published on June 17 2016)
BISHKEK, JUNE 14 2016 (The Conway Bulletin) — Kyrgyz President Almazbek Atambayev instructed state prosecutors to investigate agreements signed by Canadian miner Centerra Gold in 2003-04, after corruption charges emerged against both Centerra and former officials at the state-owned Kyrgyzaltyn.
Earlier this week, the country’s security service said that Dastan Sarygulov, the 69-year-old former head of Kyrgyzaltyn from 1992 to 1999, had been charged with plotting a coup earlier this year and taking bribes in the 1990s.
The charges appear to be based on accusations made last week by Len Homeniuk, former head of Centerra and Kumtor Gold, who sent a letter to Kyrgyz prosecutors alleging corrupt practices that had involved the miner over its entire lifetime, explicitly naming Mr Sarygulov.
In the letter, Mr Homeniuk said that the companies he headed were regularly asked for bribes by Kyrgyzaltyn, which owns a 32% stake in Centerra.
“[Their requests] were sometimes very significant, more than $200,000 in a given month,” Mr Homeniuk wrote. “Dustan Sarygulov and Kamchybek Kudaibergenov always explained such requests that they were under pressure by the office of the President.”
Centerra, Kumtor Gold and Kyrgyzaltyn have not commented on the allegations.
The revelations seem to be well- timed for Kyrgyzstan.
Sarygulov was already under house arrest, accused of having participated in the coup plot.
Now, analysts say, the Homeniuk letter could be a powerful tool for Mr Atambayev to both discredit his predecessors and taint Centerra’s record in Kyrgyzstan, just as it prepares an arbitration case in Stockholm against the government for blocking its business development.
“Timing is important. Homeniuk’s revelations seem a gift to Mr Atambayev now,” Mars Sariyev of the Institute of Public Policy, a Bishkek-based think tank, told The Bulletin.
Centerra owns the Kumtor Gold Company, which operates the country’s largest gold mine, which accounts for around 7% of Kyrgyzstan’s GDP.
In March security forces raided the office of Kumtor in Bishkek looking for evidence of financial wrongdoing. Centerra has said that Kyrgyzstan is using heavy-handed tactics to try and claim more direct ownership of Kumtor.
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(News report from Issue No. 285, published on June 17 2016)
JUNE 15 2016 (The Conway Bulletin) – China Southern Airlines, a Chinese carrier, said it will begin regular flights from Beijing and Urumqi to Tbilisi from September 22. The company said the move responds to increasing interest in Georgia as a tourist destination. China Southern Airlines launched pilot flights from Tbilisi to Urumqi last November. Chinese tourism has become big business for Georgia which is increasingly promoting itself as a holiday destination.
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(News report from Issue No. 285, published on June 17 2016)
JUNE 15 2016 (The Conway Bulletin) – Kazakh officials said production of oil and gas makes up around 17% of the country’s GDP, a proportion eight percentage points lower than in 2015. The fall in oil prices has impacted both feasibility and profitability at Kazakhstan’s oil and gas fields. This is an important measure of the impact of the drop in oil price on Kazakhstan’s economy.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 285, published on June 17 2016)
