Tag Archives: Kazakhstan

Kazakhstan cuts interest rates

ALMATY, OCT. 3 2016 (The Conway Bulletin) — Kazakhstan’s Central Bank cut interest rates by 50 basis points to 12.5%, its third rate cut this year, saying that slower inflation and a renewed confidence in the local currency were signs of economic recovery.

Most analysts were taken by surprise by the Central Bank’s decision, although Daniyar Akishev, the Bank’s chief, had hinted at possible rate reductions in recent weeks.

And the Central Bank said that another rate cut was likely at the next policy meeting in November .

“If the slowdown in inflation continues and stable growth in tenge deposits is confirmed, a reduction in the base rate before year-end isn’t excluded,” the Bank said its statement on the rate cut.

Inflation, which had reached 17% in annualised terms, has slowed to 5.6% in the first nine months of 2016, prompting the rate cut.

In the past nine months, the tenge/US dollar exchange rate improved by 14%, contributing to increased stability.

The tenge had lost half of its value overnight in August 2015, when the Central Bank ditched the peg to the US dollar. Months of uncertainty followed, sending the tenge further down and prompting successive rate increases.

Since the appointment of Mr Akishev in November last year and the stabilisation in oil prices at around $50, up from $27 at the start of the year, confidence in the country’s economy has slowly strengthened and recovered.

Oil is the cornerstone of Kazakhstan’s economy. The collapse in oil prices from around $110 per barrel in 2014 to $40 had undermined its prospects.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Average income drops in Kazakhstan

SEPT. 30 2016 (The Conway Bulletin) – High inflation over the past year has brought down average income for Kazakhs, according to the Statistics Committee. Average revenues per person in Kazakhstan for the first six months of the year grew by 12% compared to the same period in 2015, but a 16.8% growth in consumer good prices meant that average purchasing power decreased.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Russia returns the skull to Kazakhstan

OCT. 6 2016 (The Conway Bulletin) – Russia returned to Kazakhstan the skull of Keiki Batyr, one of the leaders of the 1916 Kazakh revolt against Russia. In 1923, Keiki Batyr was captured and killed by the Red Army. Kazakhstan had asked Russia to return Keiki Batyr’s skull for burial. In August, Russian PM Dmitri Medvedev agreed to return the relic to Kazakhstan.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Kashagan to increase Kazakhstan’s oil shipments

OCT. 6 2016 (The Conway Bulletin) – Natig Aliyev, Azerbaijan’s energy minister, said that, once operational, the Kashagan offshore will increase Kazakhstan’s oil shipments to Baku to 150,000 barrels of oil/day, feeding into the Baku-Tbilisi-Ceyhan pipeline. Mr Aliyev’s statement relied on the assumption that the Caspian Pipeline Consortium, which pumps oil around the Caspian Sea to the Russian port of Novorossiysk, and the Kazakhstan-China pipeline will not be able to absorb the additional 370,000 barrels of oil/day that Kashagan will produce at its peak. Kazakhstan has slashed oil shipments from Aktau to Baku this year.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Putin deals with Kazakh President

OCT. 4 2016 (The Conway Bulletin) – Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev met in Astana at the Kazakhstan-Russia Business Forum and signed several bilateral agreements worth $4b. Both parties said they want to boost trade ties. No specific details of the deals were released.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Kazakhstan focused Central Asia Metals boosts output by 38%, pushing shares to 6-month high

ALMATY, OCT. 5 2016 (The Conway Bulletin) — Kazakhstan-focused copper producer Central Asia Metals reported a 38% growth in production in Q3 2016 compared to the same period last year, because of the expansion of its Kounrad project near Lake Balkhash.

The company, listed in London, said it could potentially surpass its goal of producing 14,000 tonnes of copper this year. In the first nine months of the year, it produced 11,010 tonnes of copper cathode, up 31% compared to last year.

The news sent its shares up 3.6% to 181.75p, its highest level since April. The depreciation of the Kazakh tenge after the Central Bank ditched the peg to the US dollar in August 2015 also helped the company cut production costs which should help its full-year results.

“As a result of the devaluation of the tenge as well as some engineering cost savings, we remain confident that we can complete this capex programme approximately 25% below our initial budget of $19.5m,” chairman Nick Clarke said.

Central Asia Metals mainly exports its copper products to Turkey. Its exposure to other markets is limited.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Kyrgyz econ minister slams Eurasian Economic Union

BISHKEK, OCT. 4 2016 (The Conway Bulletin) — Joining the Eurasian Economic Union (EEU) has made conditions worse for Kyrgyz businesses, economy minister Arzybek Kozhoshev said in some of the harshest criticism so far levelled at the Kremlin-focused project.

Kyrgyzstan joined the EEU last August but has always been a reluctant partner — the other partners are Russia, Kazakhstan, Armenia and Belarus — with businesses speaking out about the extra red tape and the risk of damaging important trade relations with China.

Now Mr Kozhoshev said that data showed extent of the damage.

“The first year in the EEU has not shown any positive results yet. Some economic indexes have worsened and export volumes have dropped,” Mr Kozhoshev said at a business forum.

“Textile exports dropped by 21.5% in the first half of the year compared to last year. Dairy products exports also fell by 24% in the same period. Our trade partners have created artificial barriers for our manufacturers.”

Kyrgyzstan’s economy has been under pressure, much like the rest of the region, but Mr Kozhoshev’s message was clear. Much of the problem, he said, was down to the EEU.

Coincidentally the two main architects of the EEU, Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev, were meeting in Astana for a Kazakhstan- Russia Business Forum. They had a very different take on the EEU.

During the session, Mr Nazarbayev lauded the EEU and encouraged all ministers to recount a positive story about the bloc.

“The Eurasian Economic Union is a key element in the revival of the Great Silk Road,” he was quoted by media as saying.

Some analysts in the West have said the driving force, and the Kremlin’s main aim, behind the EEU was political rather than economic.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Kazakh telecom profits grow

SEPT. 27 2016 (The Conway Bulletin) – Kazakhstan’s national telecoms operator Kazakhtelecom said in a financial statement that its operating profit grew 13.2% in H1 2016, compared to the same period last year. Revenues increased by 4.9%, mainly due to higher prices for its telecoms networks that it rents out to other companies. The merger of Altel, part of Kazakhtelecom, and Tele2 helped overall profits, which more than doubled in the first six months of the year.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh ministry requires solution from ArcelorMittal

SEPT. 27 2016 (The Conway Bulletin) – Kazakhstan’s ministry of investments and development said that steelmaker ArcelorMittal Temirtau needs to present a viable timetable to fix its financial problems or it could face legal prosecution. Albert Rau, the minister, told official media that the company could be using seasonal stoppages at its plant in central Kazakhstan to avoid finishing the year with a profit.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh journalist Matayev accuses elite of stitch up

ALMATY, SEPT. 27 2016 (The Conway Bulletin) — During his trial for various financial crimes, Seitkazy Matayev, the former head of the journalists union of Kazakhstan, accused Parliamentary Speaker Nurlan Nigmatullin and media tycoon Alexander Klebanov of organising his arrest in February.

The accusation that members of the Kazakh elite were behind his arrest underscores Matayev’s defiance during his trial and shines a rare spotlight on the powers and influences of the Kazakh elite. It has also peaked interest in the case, already one of the most high-profile corruption cases in Kazakhstan.

Matayev, who had once been press secretary to Kazakh President Nursultan Nazarbayev, and his son Asset are accused of stealing government money and tax evasion. Matayev’s trial is due to end on Oct. 3. Prosecutors have asked for six years and eight months jail term.

“Nigmatullin and Klebanov are among those who want to limit my professional activity by incriminating me of financial crimes,” Matayev said. “Nigmatullin once told me bluntly: ‘Give me KazTAG and everything will stop’, referring to months of harassment against me and my family.”

Nigmatullin and Klebanov have not responded.

KazTAG is the news agency which Matayev owns. He also owned the National Press Club in Almaty, which has now been destroyed.

Denis Krivosheyev, a political analyst, said Matayev’s case is reflection of the poor media environment in Kazakhstan.

“Seitkazy’s press club provided a platform for opposition journalists, which would irritate authorities to some extent, but he had also given prominence in his news outlets to topics that upset some elite members,” he said.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)