Tag Archives: Kazakhstan

Kazakh bank sells shares

FEB. 5 2016 (The Conway Bulletin) — Kazkommertsbank, one of Kaza- khstan’s largest lenders, said it sold the 99.4% stake it owned in BTA Bank to Kenes Rakishev, Nurzhan Subkhanberdin and other minority shareholders. The total cost of the transaction amounted to around 6.1m tenge ($16,200). Mr Rakishev and Mr Subkhanberdin now each own 49.18% in BTA. Both are also major shareholders in Kazkommertsbank.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

Kazakh mortgage holders protest

FEB. 2 2016 (The Conway Bulletin) – Around 50 mortgage holders protested in Almaty because they said it was not possible to repay their debt after a devaluation of the tenge. This was the third protest by mortgage holders against banks this year, a rare sustained level of public discontent in Kazakhstan. The tenge has lost around 50% of its value. Last year, the Kazakh government gave banks $130m to refinance mortgages but protesters have said that more needs to be done. Analysts have said that one of the biggest issues the Kazakh government faces is growing consumer debt.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Kazakhstan’s Nur Otan packs celebrities onto election list

JAN. 29 2016, ALMATY (The Conway Bulletin) — Nur Otan, the political party of President Nursultan Nazarbayev, has packed its list of candidates for next month’s parliamentary election with sportsmen, singers and other household names — reflecting both its status as the establishment party and also its drive to boost its popular appeal.

Candidates for the 127-seat lower house of parliament include champion boxer Gennady Golovkin, Olympic weighlifting gold medal winner Ilya Ilin, and pop stars Zhanar Dugalova and Kairat Nurtas as well as Dariga Nazarbayeva, Mr Nazarbayev’s daughter, and the ex- mayor of Almaty Akhmetzhan Yesimov.

Kazakh political analyst, Adil Nurmakov, said that although Nur Otan had used this strategy previously, they were employing it particularly heavily for this election.

“It is an attempt by the ruling party to position itself as a popular force among celebrities truly loved by the people. I see it as a primitive electoral technique. It has been used numerous times in the past,” he said.

Last month, Mr Nazarbayev called a parliamentary election for March 20, a year earlier than it had been scheduled for, officially because the current parliament had fulfilled its remit.

Analysts, though, said it was called early to head off civil strife as the economic climate worsens. On the streets of Almaty, reaction to the celebratory packed party list was mixed.

“Sportsmen are also people. If the Parliament has sportsmen there will be more discipline,” said Maksat, a sales distributor.

Others were less impressed.

“A deputy should be a person with special education not just a regular boxer or a singer,” said Zinaida Trinojenko, a PR specialist. “It is a delusion.”

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

Editorial: Iranian oil for Tajikistan

FEB. 5 2016 (The Conway Bulletin) – Iran is emerging from its economic exile with force and its impact is being felt across Central Asia and the South Caucasus.

The new petrol export deal with Tajikistan, together with recent deals with Kazakhstan’s Air Astana and the negotiations with Armenia and Georgia over gas supplies, is a testimony of the importance that countries in the region give to Iran as a trade partner.

Iran is still a net importer of gasoline but it is now close to opening a new 18m tonnes refinery on the Persian Gulf coast, which officials say “will change the gasoline balance in Iran” and could possibly turn the country into a net exporter.

For countries like Tajikistan this is good news as it means that Iran could become a supplier of oil for both Central Asia and the South Caucasus.

Tajikistan has previously bought all its refined petrol from Russia. With Iran’s re-emergence onto the scene this over-reliance on its former colonial master is reduced, giving Tajikistan a genuine choice on where to buys its petrol.

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(Editorial from Issue No. 266, published on Feb. 5 2016)

 

Exchange booth volumes in Kazakhstan

JAN. 29 2016 (The Conway Bulletin) – The volume of sales of US dollars at kiosks in Kazakhstan rose by $600m in December to $1.7b, media quoted government data as showing. The data underlines the lack of confidence that Kazakhs have in the tenge. It has lost half its value in the past 12 months, a drop linked to a fall in oil prices. The 52% rise in US dollar sales in December was likely due to a sudden rise in tenge’s value.

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(News report from Issue No. 266, published on Feb. 5 2016)

 

ArcelorMittal cancels second pay rise for Kazakh workers

ALMATY, FEB. 1 2016 (The Conway Bulletin) — ArcelorMittal’s steel factory in Kazakhstan scrapped plans to raise workers’ salaries in June because of worries about continued weak market conditions for its products.

In January, ArcelorMittal increased salaries for its 14,000 workers at its steel plant in Temirtau, central Kazakhstan, by 6.8% and had promised another pay rise of 6.8% six months later, but in a letter to employees Vijay Mahadevan, the factory’s CEO, said that this was not now going to happen.

“Unfortunately, we have not fulfilled our plans for 2015, and therefore will not be able to pay the remainder of the wage increase this year,” he said.

“I know that this news will disappoint you, but no-one would benefit from a salary increase which will only put additional pressure on our company.”

A 50% drop in the value of the tenge and rise in inflation has hit workers’ real wages in Kazakhstan and forced many employers to raise salaries.

ArcelorMittal Temirtau is one of the biggest employers in Kazakhstan. It has had, though, tempestuous relations with its workers over salaries in the past few years and had to make thousands of staff redundant. The factory has added symbolic importance as President Nursultan Nazarbayev worked there before moving into politics.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

China expresses interest in Kazakh Mangistau

FEB. 2 2016 (The Conway Bulletin) – Alik Aidarbayev, head of the Mangistau region of western Kazakhstan, said that only China has expressed serious interest in paying for the construction of a new oil refinery. The Mangistau region has been working on plans to build Kazakhstan’s fourth refinery for years. Mr Aidarbayev’s comments are important because they show both the financial power of China and the relative weakness of Russia. Kazakhstan has been looking to boost its refinery capacity for some time. It currently has three refineries.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Kazakhstan raises interest rate

FEB. 1 2016 (The Conway Bulletin) – Kazakhstan’s Central Bank raised interest rates by 1 percentage point to 17%, its first monetary policy move for three months. The Kazakh tenge has been sliding in value and the Central Bank has at times appeared powerless to stop this. It has slowly increased interest rates but to limited effect.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Kazakhstan releases activist

FEB. 1 2016 (The Conway Bulletin) – Serikzhan Mambetalin, a Kazakh opposition activist, was freed from prison after issuing an apology for inciting ethnic hatred. Mambetalin and his colleague, Ermek Narymbayev, were jailed at the end of January. Mambetalin’s lawyer told RFE/RL that his appeal process was still ongoing. The Kazakh authorities have clamped down on the country’s beleaguered opposition as the economy has worsened.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Food prices inflate in Kazakhstan

FEB. 1 2016 (The Conway Bulletin) – Annualised food price inflation in Kazakhstan measured 11.6% for the 12-months to the end of January, the country’s statistics service said. The data highlights just how fast prices have risen in Kazakhstan. It devalued its currency last year, forcing up prices and salaries.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)