Tag Archives: economy

Petrol prices soar in Uzbekistan

JAN. 14 2014 (The Conway Bulletin) — The Uzbek government has quietly increased the price of fuel by 20%, media reported. The new prices came into effect from Jan. 10.

The main cause of the petrol shortages in Uzbekistan are problems at the country’s largest oil refinery in Ferghana.

It’s still unclear what impact this price rise will have on Uzbek society. Tension is already rising because of price increases for basic utilities and food. Last year in Samarkand a group of women held a rare anti-government protest. Still, in Uzbekistan’s tightly controlled society there has so far been few signs of dissent.

And Uzbeks have already been adapting to steadily rising fuel prices.

The main problem for drivers is a deficit of oil in Uzbekistan. This means that state-owned UzGazOil has had to import and refine oil at more or less commercial rates, pushing up the price of petrol.

Reports from Uzbekistan have said that many drivers have already modified their vehicles to run on gas, which is cheaper, rather than petrol. This can be a dangerous practice as these gas fired wagons are prone to exploding.

The Uzbek authorities announced the petrol price rise quietly and official media didn’t cover the event.

But there was more bad news for drivers. From April, the government is introducing a 3% so-called road maintenance tax on new cars.

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 167, published on Jan. 15 2014)

Uzbekistan approves use of foreign currencies in Navoi

DEC. 25 2013 (The Conway Bulletin) — The Uzbek government said foreign currencies could be used legally inside the Navoi industrial free zone, media reported. The decision is aimed at increasing interest in one of Uzbekistan’s major business drives. Uzbekistan wants the Navoi industrial free zone to become a transport and industrial hub for Asia.

ENDS

(News report from Issue No. 166, published on Jan. 8 2014)

Uzbekistan signs free trade deal with the CIS

DEC. 27 2013 (The Conway Bulletin) — More usually described as unilateral, Uzbekistan has taken a step towards being more collegiate towards its neighbours.

Uzbek President Islam Karimov signed a law on joining a free trade agreement among nine members of the Commonwealth of Independent States (CIS).

Uzbekistan originally signed a protocol on the free trade deal at a session of heads of CIS governments in Minsk, Belarus, on May 31 2013 and had been waiting for Mr Karimov’s signature to ratify it.

By joining the agreement Uzbekistan will drop import and export fees on goods to and from other member states. Of the eight other countries that signed the free trade deal in 2013 Armenia, Belarus, Kazakhstan, Moldova, Russia and Ukraine have already put it into operation. Kyrgyzstan and Tajikistan are still waiting to ratify it.

President Karimov has been keen to distance himself from the CIS in general and Moscow in particular but signing the agreement does bring Tashkent closer to the Kremlin.

Uzbekistan is expected to benefit from the agreement. What this move doesn’t mean, and this is important, is that relations with the West have weakened in any way. The free trade deal is important mainly for Uzbekistan’s exports and not for its geo-political trajectory.

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(News report from Issue No. 166, published on Jan. 8 2014)

Kazakhstan invests in industrial SMEs

DEC. 23 2013 (The Conway Bulletin) — The state-owned Development Bank of Kazakhstan plans to inject $800m into the economy through loans to small and medium sized industrial projects, said Kuandyk Bishimbayev, CEO of NUH Bayterek, the state holding company that owns the bank. Mr Bishimbayev said lending to small businesses has drop by 25% in the past year.

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(News report from Issue No. 166, published on Jan. 8 2014)

Uzbekistan cuts interest rate

JAN. 1 2014 (The Conway Bulletin) — Uzbekistan’s Central Bank cut its key interest rate to 10% from 12% to try and combat falling inflation, media reported. Uzbekistan’s interest rate had been 12% since January 2011. Analysts expect official inflation in Uzbekistan to fall in 2014 to around 6% from 7% in 2013.

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(News report from Issue No. 166, published on Jan. 8 2014)

Inflation slows in Kazakhstan

DEC. 31 2013 (The Conway Bulletin) — Overall inflation in Kazakhstan in 2013 slowed to 4.8% compared to 6% in 2012, the national statistics agency said. This is below the Central Bank’s forecast of between 6-8%. In 2012, the Kazakh Central Bank cut its key interest rate to a historic low of 5.5% to try and bolster falling prices.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 166, published on Jan. 8 2014)

Azerbaijan invests abroad

DEC. 17 2013 (The Conway Bulletin) — Azerbaijan has continued to invest its energy revenues aboard, media reported. It quoted the Central Bank’s website as saying that in the first three quarters of 2013, Azerbaijan had spent $8.8b abroad. Over the past couple of years Azerbaijan has invested in overseas property and currencies as a long-term investment strategy.

(News report from Issue No. 165, published on Dec. 18 2013)

ADB invests in Azerbaijan

DEC. 16 2013 (The Conway Bulletin) — The Asian Development Bank (ADB) plans to invest $500m into projects run by the Azerbaijani state over the next three years, media quoted the organisation’s representative in Baku, Olly Norojono, as saying. Mr Norojono also said that the ADB’s investment portfolio in Azerbaijan was currently $1.2b up from $500m in 2010.

(News report from Issue No. 165, published on Dec. 18 2013)

Georgia doubles wine exports

DEC. 16 2013 (The Conway Bulletin) — Demand from Russia has doubled Georgia’s wine exports, media reported quoting the Georgian agriculture ministry. Russia lifted a ban on importing Georgian wine this year. Relations between the neighbours had dipped to breaking point under Georgia’ former President Mikheil Saakashvili but have since recovered.

(News report from Issue No. 165, published on Dec. 18 2013)

Azerbaijan buys Asian securities

DEC. 3 2013 (The Conway Bulletin) — Azerbaijan’s Central Bank plans to buy $500m-$600m of Asian securities as part of its investment portfolio, local media quoted the Bank’s deputy chairman Avtandil Babayev as saying. Azerbaijan has developed a reputation as a big spender on foreign markets over the past few years with property, equity and debt purchases.

(News report from Issue No. 163, published on Dec. 4 2013)