Tag Archives: economy

Donald Trump to build tower in Georgia

MARCH 10 2011 (The Conway Bulletin) – At a glitzy ceremony in New York, US businessman Donald Trump finalised a deal to build the two tallest towers in Georgia. The deal, estimated to be worth about $300m, is important to Georgian President Mikheil Saakashvili who wants to attract more foreign investors to Georgia after a war in 2008 with Russia hit investment levels.

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(News report from Issue No. 31, published on March 14 2011)

Kazakhstan signs more deals with China

FEB. 22 2011 (The Conway Bulletin) – On a three-day trip to Beijing, Kazakh President Nursultan Nazarbayev agreed a series of deals with Chinese President Hu Jintao. The deals included Chinese funds for a new Astana-Almaty high speed rail link, a uranium supply deal and various oil and gas projects.

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(News report from Issue No. 29, published on Feb. 28 2011)

Kazakh Central Bank scraps tenge corridor

FEB. 28 2011 (The Conway Bulletin) – The Kazakh Central Bank scrapped a two-year valuation corridor for the tenge in favour of a managed float. Kazakhstan introduced a 145-155 tenge/$1 corridor in Feb. 2009 after it devalued the tenge by 18% during the global financial crisis. Rising oil, grain and metals prices have pushed up the value of the tenge.

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(News report from Issue No. 29, published on Feb. 28 2011)

Kazakhstan and China’s increasingly cosy economic relationship

FEB. 28 2011 (The Conway Bulletin) – Despite the rather turgid official photos, Chinese President Hu Jintao and Kazakh President Nursultan Nazarbayev left observers in no doubt how important they viewed relations between China and Kazakhstan when they met in Beijing on Feb. 22.

According to Xinhua, China’s state news agency, Mr Hu told Mr Nazarbayev that his trip to Beijing was the first by a head of state since the Chinese New Year on Feb. 3.

Mr Nazarbayev went one better. He told Mr Hu this was his first overseas trip of 2011.

Away from the platitudes, the deals the two leaders struck underlined how quickly the Sino-Kazakh economic relationship had developed. Mr Nazarbayev returned from Beijing with investment from China worth billions of dollars for a wide range of projects.

Perhaps the most important was for uranium sales. Kazakhstan is one of the world’s biggest uranium producers while China is energy hungry and has said it wants to boost its nuclear energy capacity. According to media reports Kazakhstan pledged to feed China with 40% of its uranium needs over the next few years.

Also agreed was a $1.7b loan from China to Kazakhstan’s sovereign wealth fund Samruk-Kazyna, Chinese investment for a 1,050km high-speed rail link between Astana and Almaty and a $1b plan to modernise the oil refinery in Atyrau on the Caspian Sea — one of three in Kazakhstan.

According to Mr Nazarbayev, Kazakhstan’s bilateral trade with China reached $20b in 2010, up 45% from 2009.

It looks set to continue to rise.

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(News report from Issue No. 29, published on Feb. 28 2011)

Kazakhstan allocates $1b to improve housing

FEB. 15 2011 (The Conway Bulletin) – Kazakhstan will spend $1b on its housing sector between 2011 and 2012, Serik Nokin, head of the state’s housing agency, told a cabinet meeting. Mr Nokin said about 1/4 of the cash will be spent on new housing, another 1/4 will be spent on social housing and the rest on providing mortgages for low-cost homes.

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(News report from Issue No. 28, published on Feb. 21 2011)

Kazakhstan boosts military spending in 2010

FEB. 18 2011 (The Conway Bulletin) – Kazakhstan will increase its defence budget by 17% to $1.4b in 2011, Kazakh President Nursultan Nazarbayev said. According to the World Bank’s latest data, in 2009 Kazakhstan spent 1.2% of its GDP on military spending.

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(News report from Issue No. 28, published on Feb. 21 2011)

Food inflation hits Central Asia and stirs unrest

FEB. 21 2011 (The Conway Bulletin) – Fires last year in Russia, floods in Australia and bulk buying by wealthy countries have pushed up wheat prices around the world, angering people and worrying governments. In Central Asia and the South Caucasus some are warning of growing unrest.

On Feb. 11 in his state-of-the-nation address, Georgian President Mikhail Saakashvili said his government would start handing out food vouchers to every family in the country and on Feb. 18 the Kazakh government promised to spend $87m building up its reserves of wheat.

But the most vulnerable countries are Kyrgyzstan and Tajikistan where people have had to endure the steepest spike in wheat prices in the world on top of soaring inflation and instability.

In comments which would have resonated in Bishkek and Dushanbe, the head of the World Bank, Robert Zoellick said on Feb. 15 of the food price rises: “There is a real stress point that could have social and political implications across Central Asia.”

The World Bank has estimated that in Kyrgyzstan wheat accounts for 40% of the average person’s calorie intake while in Tajikistan the figure is even higher at 54%.

And social tension may already have flared.

In Dushanbe, media quoted a government official reassuring people that the country had enough food supplies and denying that there would be any unrest linked to a lack of food.

Local media in Kyrgyzstan reported that the government is preparing to tap into their emergency wheat reserves to feed 340,000 low income families but a Conway Bulletin correspondent in Bishkek said teachers and other state employees plan a demonstration on Feb. 23 to protest against rising food prices.

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(News report from Issue No. 28, published on Feb. 21 2011)

Kyrgyzstan and Tajikistan show booming wheat prices

FEB. 15 2011 (The Conway Bulletin) – The price of wheat has jumped by 54% in Kyrgyzstan and 37% in Tajikistan since June 2010, the World Bank said. The Kyrgyzstan price rise is the largest in the world. Wheat makes up around 50% of people’s diets in both countries.

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(News report from Issue No. 28, published on Feb. 21 2011)

Georgia plans food and fuel coupons to battle inflation

FEB. 11 2011 (The Conway Bulletin) – Georgia plans to hand out fuel coupons worth 20 lari ($11.3) and food coupons worth 30 lari ($16.9) to every family to ease pressure over price increases, President Mikheil Saakashvili said in his annual state-of-the-nation address. Inflation in January measured 12.3% according to the Statistics Committee.

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(News report from Issue No. 27, published on Feb. 14 2011)

Iran to build $500m cement plant in Tajikistan

FEB. 12 2011 (The Conway Bulletin) – Iran will spend $500m building a cement plant in Tajikistan, its ambassador in Dushanbe told media (Feb. 9). Later Tajik foreign minister Hamrokhon Zarifi praised the growing cooperation between the two countries.

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(News report from Issue No. 27, published on Feb. 14 2011)