Tag Archives: Kazakhstan

Kazakhstan’s trade turnover with Eurasian Union states drops

NOV. 13 2015 (The Conway Bulletin) – Kazakhstan’s trade turnover with member states of the Eurasian Economic Union – that’s Russia, Belarus, Armenia and Kyrgyzstan – has dropped by nearly 26% to $12.1b in the first nine months of this year compared to the same period in 2014, its statistics agency said.

The data is more evidence of the sharp downturn in the region’s economy. It is particularly jarring for Kazakh president Nursultan Nazarbayev who has been one of the main architects and biggest supporters of the Eurasian Economic Union. It was hoped that the trade bloc would stimulate trade but instead, by anchoring outlying economies to Russia, it has hampered it.

A sharp drop in oil prices and Western-imposed sanctions have tipped Russia into a recession and forced its rouble currency to drop in value.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Kazakhstan cuts back envoys

NOV. 18 2015 (The Conway Bulletin) – In what would amount to a major change of Kazakh government policy, President Nursultan Nazarbayev said that he was considering cutting the number of diplomatic missions to save cash to soften the blow of the current economic downturn. Previously, Kazakhstan’s foreign ministry has been opening outposts in South America, Africa and south-east Asia.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Kazakh court jails blogger for separatist web chat

NOV. 19 2015 (The Conway Bulletin) – A court in the town of Ridder, north- east Kazakhstan, imprisoned an internet blogger for five years for asking users on a popular social media website if they thought the east of the country should split and join Russia.

This is the first time that a new law banning separatist incitement has been used. The law was introduced in 2014 after the civil war in Ukraine broke out.

According to media reports, 26- year-old Igor Sychev, the blogger, has denied allegations that he was fomenting separatist feelings.

But this is an issue that the Kazakh authorities, up to President Nursultan Nazarbayev, are touchy about.

The north and east of Kazakhstan are populated mainly by ethnic Russians.

This population skew was one of the main reasons Mr Nazarbayev relocated his capital to Astana, in the centre of the country, from Almaty in the south in 1997 and he has spent much time re-working the history of the Kazakh state to be as inclusive as possible — without stretching the realms of possibility too much.

Nationalists in Russia have also increased tension by floating the idea of bringing north Kazakhstan into a Greater Russia.

On a trip to Pavlodar in the north of the country last year, though, it was clear to a Bulletin correspondent that for most ethnic Russians living in Kazakhstan, although their cultural centre of gravity may lie to the north in Russia, they still have faith in the Kazakh state.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Tenge could fall says Kazakh CBank

NOV. 18 2015 (The Conway Bulletin) – Kazakhstan’s new Central Bank chief Daniyar Akishev said the tenge could fall further if oil drops below $40/barrel. The tenge has lost half its value this year. The price of Brent oil is around $44/barrel.

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Polymetal raises Kazakh gold reserves and buys in Armenia

NOV. 13/16 2015 (The Conway Bulletin) — The Russian miner Polymetal upgraded gold reserve estimates at its Kyzyl mine in eastern Kazakhstan and said it had bought a 75% stake in Armenian diamond mine Lichkvaz that it didn’t already own.

Both the reserve upgrade at Kyzyl and the buyout of Lichkvaz will give the mining industries in Armenia and Kazakhstan a major boost.

At the Bakyrchik mine at its Kyzyl project, Polymetal said that a feasibility study had upgraded the size of gold reserves there by 8% to 29.2m tonnes.

Polymetal will run further exploration works until the end of 2016 and expects to reach full output capacity at the mine in 2019. Polymetal said it is ready to invest $328m for the next phase of the project.

Polymetal CEO Vitaly Nesis said in a statement: “With significantly reduced capital expenditure, compelling high-grade reserves and straight- forward execution plan, Kyzyl is set to become a significant free cash flow contributor for Polymetal.”

ENDS

(News report from Issue No. 257, published on Nov. 20 2015)

Currencies: Kyrgyzstan’s som, Kazakhstan’s tenge

NOV. 13 2015 (The Conway Bulletin) — The Kyrgyz Central Bank intervened in the currency market, selling around $14m on Friday to halt the fall of the som. It still fell 3% over the week finishing at 72.1/$1.

In Kazakhstan, the tenge was stable at 307/$1, although it reached a record low of 312/$1 on Monday.

The Georgian lari was stable at 240/$1 throughout the week.

In Armenia and Uzbekistan, currencies fell faster than previously. The Armenian dram lost 1% to 480.9/$1 and the Uzbek sum fell by 0.5% to just above 2,700/$1 on the official market. On the Black Market, the US dollar is reportedly selling at 6,200sum.

ENDS

(News report from Issue No. 256, published on Nov. 13 2015)

Kazakh Team Astana receives cycling licence

NOV. 9 2015 (The Conway Bulletin) – After a four-month-long review linked to a drug doping scandal, Astana Pro cycling team received its World Tour licence. Astana Pro, which is funded by the Kazakh sovereign wealth fund Samruk-Kazyna and races in the national colours, has been involved in several doping cases since it was set up in 2007.

ENDS

(News report from Issue No. 256, published on Nov. 13 2015)

Kazakhstan cuts food subsidies

NOV. 10 2015 (The Conway Bulletin) – In what it described as a push to promote competition, the Kazakh government said it will cut subsidies for bread, petrol, and animal husbandry. In particular, the government will cut subsidies for wheat producers from 2,500 tenge/tonne ($8) to zero. The government may be looking to save money.

ENDS

(News report from Issue No. 256, published on Nov. 13 2015)

Kazakhstan to sign EU deal

NOV. 11 2015 (The Conway Bulletin) – Kazakhstan will sign an expanded partnership agreement with the EU next month, according to PM Karim Massimov. Speaking at a forum on Eurasian economic integration, Mr Massimov said Kazakhstan wanted to build on the Enhanced Partnership and Cooperation Agreement it signed last year.

ENDS

(News report from Issue No. 256, published on Nov. 13 2015)

Kazakh CBank approves Kaspi Bank ownership

NOV. 10 2015 (The Conway Bulletin) — The Kazakh Central Bank approved a request to modify the shareholder composition of Kaspi Bank. President Nursultan Nazarbayev’s nephew Kairat Satybaldy and Mikhail Lomtadze, chairman of Kaspi Bank, transferred their shares and joined the holding company JSC Kaspi, headed by Kaspi Bank director Vyacheslav Kim. Kaspi Bank is the 6th largest bank in Kazakhstan by assets.

ENDS

(News report from Issue No. 256, published on Nov. 13 2015)