Tag Archives: government

Editorial: Kumtor and Kyrgyzstan

APRIL 29 2016 (The Conway Bulletin) – The Kyrgyz government and Centerra Gold appear hell-bent on another major row over ownership of the Kumtor gold mine.

Last year, Djoomart Otorbayev resigned as PM after barely a year in office having failed to reach an agreement with Centerra on swapping Kyrgyzstan’s share in the Canadian company for a 50% share in Kumtor.

In December, the authorities sentenced Dilger Zhaparov, former head of state-owned gold miner Kyrgyzaltyn, to three years in prison for authorising an allegedly illegal dividend payment to Centerra.

Now, the Kyrgyz authorities have stormed the offices of Centerra-owned Kumtor Gold Company, in what could be the beginning of a legal dispute.

Centerra replied with a detailed letter, written in unusual legalese lingo. The company argues that the dividend payment was legitimate.

Kumtor is vital for Kyrgyzstan. It is its largest industrial asset and seizing ownership would boost government revenues. All this, though, at the expense of its once-welcoming-now-worsening business environment.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(Editorial from Issue No. 278, published on April 29 2016)

Kyrgyz police raid Kumtor’s Bishkek office

BISHKEK, APRIL 28 2016, (The Conway Bulletin) — Toronto-listed miner Centerra Gold said that police in Bishkek have raided the offices of its wholly-owned Kumtor Gold Company, reigniting a vicious row between the Canadian company and the Kyrgyz government.

According to Kyrgyz officials, police were looking to collect documents related to allegations of financial misconduct by Kumtor.

Centerra said that the government had previously complained about a financial transaction it carried out in 2013. It once again refuted any allegations of criminal activities.

“The company reiterates that such inter-corporate dividend complied with the 2009 agreements governing the Kumtor Project and all applicable Kyrgyz Republic laws. Any claims to the contrary are without merit,” Centerra said in a statement.

On news of the raid, the Toronto stock market briefly suspended Centerra Gold’s shares.

Centerra said mine operations at Kumtor, which is located in the mountainous east of the country, were unaffected.

The Kyrgyz government owns a 32.7% stake in Centerra.

It has been trying to turn this stake in Centerra into a direct stake in Kumtor, the country’s single biggest asset, triggering a major row.

Kumtor represents around 7% of Kyrgyzstan’s GDP and is the country’s most valuable asset.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 278, published on  April 29 2016)

 

Kyrgyz Parliament elects speaker

APRIL 27 2016 (The Conway Bulletin) – Kyrgyzstan’s parliament elected Chynybai Tursunbekov from President Almazbek Atambayev’s Social Democrat party as their new Speaker, ending a week-long deadlock. Mr Tursunbekov received 88 of 120 votes. A previous vote, a week earlier, had failed to elect a Speaker.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 278, published on April 29 2016)

 

Top Armenian official resigns over offshore links

APRIL 18 2016 (The Conway Bulletin) – Mihran Poghosyan, formerly Armenia’s Chief Compulsory Enforcement Officer, resigned after his name appeared linked to offshore accounts that Armenian media said created a conflict of interest with government tenders.

Mr Poghosyan’s name emerged in leaked documents from the Panama- registered Mossack Fonseca law firm, linking him and his relatives to real estate, brokerage and import firms which have won government tenders. He had previously said he had dropped his businesses before joining the public service.

His resignation is unique in the region. Officials previously targeted by investigative dossiers generally managed to keep their positions.

ENDS

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(News report from Issue No. 277, published on April 22 2016)

Turkmen President reprimand officials

APRIL 15 2016 (The Conway Bulletin) – Turkmenistan’s President Kurbanguly Berdymukhamedov reprimanded Shamukhamet Durdyliyev, deputy PM and a member of the Presidential Administration, for the lack of progress made in a programme to beautify Ashgabat.

This is an apparent continuation of his penchant for publicly humiliating officials he feels have been underperforming. Ashgabat’s city administration has felt Mr Berdymukhamedov’s wrath before. Last August, he sacked Ashgabat’s mayor, Redzhepgeldi Nurmammedov, also for failing to improve his much loved capital city.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 277, published on April 22 2016)

Azerbaijan to cut funds for overseas study

APRIL 15 2016 (The Conway Bulletin) – Azerbaijan is phasing out a programme that funded overseas study for undergraduates in order to save money during an increasing vicious economic downturn.

Mikhail Jabbarov, Azerbaijan’s minister of education, said funding for bachelor level programmes has dried up.

“The ministry is developing a new format of the program, which envisages education at foreign higher educational institutions only for PhD and Master’s Degrees,” Mr Jabbarov told media.

The government’s stated objective is to attract more foreign professors to Azerbaijan to allow undergraduates to receive high-level tuition without having to study abroad.

What the government cannot openly say is that the programme has become unsustainable because of a sharp drop in oil prices that has dragged down its economy.

The ministry of education’s overseas undergraduate programme is one of two channels that Azerbaijani youth can use to access scholarships to study abroad.

SOFAZ, the country’s oil fund, had also established an eight-year programme in 2007 to fund education abroad. But that programme is now being wound up and is unlikely to be extended.

In the first quarter of 2016, SOFAZ said it spent 5m manat ($3.3m) paying fees for Azerbaijanis studying abroad.

Analysts have said that if both programmes were cut, Azerbaijan would, effectively, be isolating itself from the West.

The government has already cut several domestic social projects, including updating broadband internet across the country and investments in care homes, roads and railways, to cut costs.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 277, published on April 22 2016)

Uzbek authorities release Karimov critic

APRIL 18 2016 (The Conway Bulletin) – Uzbek authorities released from prison Shukhrat Nusratov, a former MP who criticised President Islam Karimov in the first few years of Uzbekistan’s independence from the Soviet Union in 1991. Mr Nusratov had been jailed for seven years in 2012 for various economic crimes that his supporters said were fabricated.

ENDS

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(News report from Issue No. 277, published on April 22 2016)

Azerbaijan’s SOFAZ invests abroad

APRIL 13 2016 (The Conway Bulletin) – SOFAZ, Azerbaijan’s state oil fund, said it wants to diversify its investment portfolio and increase its investment in equities. According to the latest investment policy, it plans to raise to 15% from 10% the share of the Fund it invests in equities. According to the Fund’s report, it allocated just 6.5% of its portfolio into equity investments in 2014. Equities are considered riskier than fixed-income securities, real estate and gold, SOFAZ’s preferred investment destinations.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 276, published on  April 15 2016)

Kazakh President appoints new personal advisor

APRIL 14 2016 (The Conway Bulletin) – Kazakh President Nursultan Nazarbayev nominated former energy minister and Kazakh government veteran Vladimir Shkolnik as his personal adviser. Mr Shkolnik was sacked from the post of energy minister in March. Mr Shkolnik will also hold the role of adviser to state-owned oil and gas company Kazmunaigas.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 276, published on April 15 2016)

 

Berdy says time to stop Turkmen government subsidies for utilities

APRIL 11 2016 (The Conway Bulletin) – At a government meeting, Turkmen President Kurbanguly Berdymukhamedov appeared to suggest the unimaginable. He said he wanted to scrap state subsidies for gas, electricity, water and salt.

And, unscoring the growing economic pressure in Turkmenistan, Mr Berdymukhamedov also sacked the ministers for economic development and foreign economic relations as well as the head of the tax administration.

Mr Berdymukahmedov has now sacked six top government officials this year.

With little accurate economic data coming out of Turkmenistan, the quick succession of sackings and the musing over cutting government subsidies suggest that the Turkmen economy, which is so heavily reliant on gas sales, is listing heavily.

Government subsidies of utilities is one of its cornerstone policies. They have been in place since 1993, although Mr Berdymukhamedov floated the idea of cutting the subsidies through the Council of Elders last year. The Council of Elders is a traditional Turkmen advisory body although it has been co-opted over the past two decades to test the opinions of the president with the public.

Now, though, according to press reports, Mr Berdymukhamedov has openly discussed cutting the subsidies for the first time.

“This is no longer justifiable from an economic point of view. It is hindering our transition to a market economy and imposing an additional burden on the budget,” he said.

There is no publicly available data which shows just how much the government spends each year on subsidises for gas, electricity, salt and water for the 5.5m people who live in Turkmenistan.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 276, published on April 15 2016)