Tag Archives: Kazakhstan

Arcelormittal’s troubles in Kazakhstan

OCT. 17 2016 (The Conway Bulletin) – ArcelorMittal, the world’s largest steelmaker, has shown signs of trouble in its operations in Kazakhstan due to the fall in commodity prices.

In early 2014, it laid off around 1,000 workers. The subsequent devaluation of the tenge currency seemed to have fixed its cost problems but as the US dollar strengthened against all commodities, effectively pushing prices down, the company felt the bite of lower revenues.

In 2015, it cut worker salaries by 25% only to later face a court order that deemed the move illegal. Later in 2015, when the tenge sank after the Central Bank ditched the peg to the US dollar in August, ArcelorMittal Temirtau’s former boss Vijay Mahadevan said that the tenge value needed to be even lower for the company to effectively cut costs.

But exchange rate fixes are only one-off solutions that cannot ensure long-term stability.

Earlier this year, the company predicted a 13% drop in net income and cancelled a promised pay raise to its employees, lowering their benefits instead. And in September, the government lodged a veiled accusation against ArcelorMittal Temirtau for allegedly slowing production to keep revenues low and avoid a higher tax bill. The company said this week it had resumed full production, to avoid further problems.

But the headaches are still there, despite the potential growth of the Iranian market, vital for ArcelorMittal, after most sanctions were lifted this year.

Besides the thousands that it currently employs, the plant in Temirtau holds symbolic value, as President Nursultan Nazarbayev worked there in his youth.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Kazakhstan looks to ban Salafism

ALMATY, OCT. 14 2016 (The Conway Bulletin) — Kazakhstan appeared to signal that it would ban Salafism, a form of Islam, after its new minister for religious affairs, Nurlan Yermekbayev, described it as “unacceptable”.

Mr Yermekbayev’s comments, at his first press conference as minister for religious freedom, will strengthen analysts’ views that the ministry, created last month, was designed to clamp down on religious freedom.

“We consider that for Kazakhstan, Salafism is an unacceptable and destructive religious movement. In

general, Kazakhstan’s society has a negative attitude to this alien understanding of faith, leading to radicalism,” the official Astana Times newspaper quoted him as saying.

“Our future work will focus on preventing the spread of literature and the work of the websites promoting the ideology of Salafism.”

Salafism is an ultra-conservative form of Islam that has its roots in Egypt. It has been blamed for the spread of radical Islam.

Previously, Wahhabism, has been blamed for encouraging a series of terrorist attacks in Kazakhstan and banned by the government.

But Kazakh officials have now blamed a series of gun attacks in Aktobe, in the west of the country, in June on a group of Salafists.

Kazakhstan, like its neighbours, has been clamping down on pious Muslims, increasingly worried that they are destabilising the country and acting as a possible fifth column.

Human rights groups have described the clamp-downs as attacks on human rights and free speech.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Kazakh energy company drills wells

OCT. 19 2016 (The Conway Bulletin) – Roxi Petroleum, a Kazakhstan-based oil and gas company, said it had successfully drilled new wells at its BNG Contract Area, a group of oil fields in western Kazakhstan. Roxi said the drilling of the A6 deep well had been challenging, but that the expansion of the field was continuing as planned. On the day of the announcement, its stock price increased by 18% to 10.5p in London.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Alleged coup-plotter in Kazakhstan rejects accusations

OCT. 17 2016 (The Conway Bulletin) – In his trial for allegedly funding an attempted coup earlier this year in Kazakhstan, Shymkent-based businessman Tokhtar Tuleshov said that although he had given protesters demonstrating against land reforms $100,000, he had not intended to organise an overthrow of the government. A screenshot of Mr Tuleshov, once one of the richest men in Kazakhstan whose wealth was built on brewing beer, showed him in handcuffs looking gaunt while he gave evidence to the court in Astana via a video-link.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Kazakhstan retiriertes Hijab ban

OCT. 19 2016 (The Conway Bulletin) – Kazakhstan said that it had reiterated a ban on hijabs at school despite a number of complaints from parents since the ban was introduced in January. Kazakhstan is officially a secular states although the vast majority of people are Muslim. Headscarves have also become a more common sight on the streets of Kazakh cities over the past few years.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Kazakh oil pipeline operator to allocate its route

OCT. 18 2016 (The Conway Bulletin) – KazTransOil, Kazakhstan’s state owned oil pipeline operator, said that the first shipments of oil from Kashagan will be allocated to the Atyrau-Samara pipeline and sold at the Russian port of Ust-Luga, near St. Petersburg. Production at Kashagan re-started last week after years of delay. In October, the consortium plans to pump at 90,000 barrels/day. The Kazakh government is banking on Kashagan to propel it into the Premier League of oil producers.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Trump marred in property scandal with Kazakhs

OCT. 19 2016 (The Conway Bulletin) – The Financial Times published a story connecting US Republican presidential candidate Donald Trump, through a series of property deals, to a Kazakh family accused of money laundering.

In the story, the FT said Mr Trump was involved in a a 2006 property deal with Trump Towers Soho in New York and a company called Bayrock, linked to Viktor Khrapunov.

Mr Khrapunov is a former mayor of Almaty, who is now exiled in Switzerland. Earlier this year, prosecutors in Kazakhstan said they wanted Mr Khrapunov sent back to Kazakhstan to face charges of money laundering. Mr Kharpunov has said he is being hounded because of his opposition to President Nurtulan Nazarbayev.

Neither Mr Trump nor Mr Khrapunov have commented on the FT story.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

High-profile trial takes place in Kazakhstan

OCT. 18 2016 (The Conway Bulletin) – The trial of a group of 29 men who attacked various targets including a police outpost and killed eight people in June started in Aktobe, in the western Mangistau region, under intense security. The men are accused of having links to radical Islam. The authorities in Kazakhstan have grown increasingly wary of radical Islam.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Kazakh President returns back to work

OCT. 14 2016 (The Conway Bulletin) — Kazakh president returned to work after three days off because he had apparently caught a cold, his press office said. Part of Mr Nazarbayev’s image is his fitness and virility and it is rare for him to admit to taking any time off work. The cold apparently caused Mr Nazarbayev to skip a meeting of the FSU-focused CSTO group in Yerevan.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Kazakhstan renames Gulen-led schools

OCT. 18 2016 (The Conway Bulletin) — Kazakhstan is renaming a series of schools linked to the Gulenist Movement, blamed by Turkish president being behind a coup attempt earlier in the year, media reported. The movement is headed by the exiled cleric Fethullah Gulen. He has denied any link to the July coup attempt. Gulen schools in Kazakhstan and Kyrgyzstan are considered some of the best and both the Kazakh and Kyrgyz governments have been resistant to closing them despite pressure fromTurkey.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)