Tag Archives: economy

Gazprom extends control over Kyrgyzstan’s gas

>>Russia pledges new gas infrastructure system>>

JAN. 30 2015 (The Conway Bulletin) — On a trip to Bishkek, Alexei Miller, the CEO of Gazprom, said the Russian state-owned gas company would invest $500m into Kyrgyzstan’s gas network system over the next three years.

This is a massive investment by Russia into what is essentially its backyard, especially during these times of economic turbulence. Gas has become a form of diplomacy and control for the Kremlin and it wants to bring Kyrgyzstan closer into its hegemony.

“This is 1.7 times larger than originally planned,” media quoted Mr Miller as saying of the proposed investment plan. “All the planned works will be financed in full.”

Gazprom bought Kyrgyzstan’s gas monopoly for a symbolic $1 in 2013. This year the Kremlin has already earned credit for negotiating a deal between the Uzbek and the Kyrgyz authorities to supply gas to the south of Kyrgyzstan.

And influence over Bishkek is important for Russia. Over the past decade Kyrgyzstan has swung between supporting the West to looking towards the Kremlin. Now that the US military base outside Bishkek has been dismantled (it went last year) the Kremlin has upped its drive to pull Bishkek closer towards it.

Later this year, Kyrgyzstan plans to join the Kremlin-controlled Eurasian Economic Union. It has sold its gas system to Gazprom and has introduced various legislation that apes Russian laws and, many analysts say, curtails personal freedoms.
Russian dominance over Kyrgyzstan is growing.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

GDP grows in Georgia

JAN. 30 2015 (The Conway Bulletin) — Georgia’s GDP grew by nearly 5% in 2014, media reported, a healthy spurt despite pressures from a faltering Russian economy and a drop in global oil prices (Jan. 30).
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Armenia plans Eurobond issue

FEB. 2 2015 (The Conway Bulletin) — Armenia’s finance ministry said it planned to issue Eurobonds later this year to help it through a tough economic period. A sharp fall in the Russian rouble has hit Armenia with analysts warning of a recession. The finance ministry did not specify the type of Eurobond it was considering issuing.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Gazprom is Armenia’s highest taxpayer

FEB. 2 2015 (The Conway Bulletin) — Gazprom Armenia was the largest taxpayer in Armenia in 2014, media reported, highlighting just how important Russia is to the Armenian economy. Gazprom Armenia owns Armenia’s gas pipeline system. In 2014 it paid taxes of nearly 43b dram ($90m). This was almost double the second highest taxpayer.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

Georgia to tighten monetary policy

JAN. 30 2015 (The Conway Bulletin) — Georgia’s Central Bank chief, Georgy Kadagidze, said he would tighten monetary policy next week after another drop in the value of its lari currency. Mr Kadagidze has said that he would not spend the bank’s reserves heavily to prop up the lari which has lost around 15% of its value since November.
ENDS

(News report from Issue No. 217, published on Feb. 4 2015)

What prices rise in Kyrgyzstan

JAN. 27 2015 (The Conway Bulletin) — The price of wheat in Kyrgyzstan has reached a record high because of a poor crop last year, high energy prices and the falling value of the Kyrgyz som, media quoted media reported. Kyrgyz households are sensitive to food price fluctuations as they spend around 60% of their income on food.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015

Georgian lari hits 10-year lows

>>Pressure building on the C.Bank as lari hits 10-year lows>>

JAN. 27 2015 (The Conway Bulletin) — Georgia’s economic policymakers have said that they will not intervene to halt the fall in the value of the lari currency.

Pressure has been building on the Central Bank as the lari has lost 7% of its value against the US dollar this year, adding to a 12% loss at the end of 2014.

But economy minister, Giorgi Kadagidze, said that the Central Bank would not start spending its reserves to prop up the currency.

The lari is now trading at over 2 to the US dollar. This is the cheapest that the lari has been for over a decade.

The big worry for Georgian economic decision makers is that inflation will start creeping up.

At its last meeting on interest rates in December, the Central Bank elected to keep the key rate unchanged. The Central Bank chief, Giorgi Kadagidze, said that if there was any hint of inflationary pressure appearing he would raise interest rates.

Georgia had been less affected by the turmoil in Russia’s economy and the drop in oil prices over the past six months. Clearly the poor economic data is beginning to catch up with it.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)

Turkmen-orientated oil company cuts spending

JAN. 21 2015 (The Conway Bulletin) — London-based energy company Dragon Oil said it would reduce its capital expenditure in Turkmenistan by 26% this year because of the decrease in oil global price, media reported. Dragon Oil’s slashing of its capital expenditure budget in Turkmenistan highlights the pressures that energy-focused economies are under.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)

Armenia’s construction sector drops

JAN. 26 2015 (The Conway Bulletin) — Building work in Armenia fell by 4.3% last year compared to 2013, data released by the national statistics agency showed. The construction sector is an important part of the Armenian economy and its decline highlights the problems faced by business as it deals with the fallout from Russia’s economic downturn.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)

Armenia looks to cut tax on export profits

JAN. 23 2015 (The Conway Bulletin) — Looking to boost exports, lawmakers in Armenia have drafted a bill to cut export profit tax to 2% from 20% for large exporters. The government says the tax cut will create jobs. Its opponents say that the tax cut will dent competition and simply help large companies retain their dominant market positions.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)