Tag Archives: Kazakhstan

Dispute threatens Kazakh refinery company’s sale of Romanian refinery

JULY 27 2016 (The Conway Bulletin) — A legal battle between Kazakhstan’s KMG International and the Roma- nian government risks stalling a $680m deal to sell a majority stake in the Kazakh company’s refinery to China’s CEFC.

KMG International, formerly known as Rompetrol, is preparing to lodge a lawsuit against the Romanian government over the seizure in May of its assets, according to the FT.

The Romanian government has said the Petromidia refinery, the largest in the country, was illegally privatised in the early 2000s before Kazmunaigas bought Rompetrol.

KMG International has now submitted a legal note to the Romanian government that will escalate the dispute.

“Romania is using its governmental power to undermine that transaction and re-nationalise the assets,” the FT quoted KMG International as saying in a letter to the government.

KMG International had to delay finalising the deal with CEFC, which in December agreed a $680m fee to buy 51% of the refinery.

Robert Cutler, Senior Researcher at the Institute of European Studies at Carleton University, Montreal, said that Romania was looking to block the sale.

“Kazakhstan is about to find out what it is like to be on the receiving end of ‘resource nationalism’, which it [Kazakhstan] has successfully used against foreign investors over the last decade,” he told The Conway Bulletin.

This delay and the asset freeze has angered officials at both KMG International and Kazmunaigas, its parent company.

Senior company officials have said that they will take legal action if the refinery sale is delayed.

Romanian investigators have focused on recovering cash from an allegedly illegal privatisation of the refinery in 2003, when the late Dinu Patriciu bought Petromidia for $760m. In 2007, Patriciu sold Rompetrol, which controlled Petromidia, to Kazmunaigas for $1.6b.

In the following years, the government acquired an 18% stake in the refinery.

Now, analysts say, the government might be looking to renationalise the refinery, an important and lucrative asset for Romania.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

PetroKazakhstan’s production shrinks in H1

JULY 28 2016 (The Conway Bulletin) — London-traded upstream oil company KMG EP said its H1 2016 production shrank by 0.7% to 6.1m tonnes of oil. In particular, the company said that production slowed significantly at PetroKazakhstan’s operations in central Kazakhstan. KMG EP owns a 33% stake in PetroKazakhstan, while China’s CNPC owns the rest. KMG EP is a subsidiary of state-owned energy company Kazmunaigas.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Kazakh miner’s production grows

JULY 22-28 1 2016 (The Conway Bulletin) — Kazakhstan miner KAZ Minerals posted a 43% growth in output in H1 2016, compared to the same period last year, to 52,600 tonnes of copper cathode. KAZ Minerals also said it cut costs for the development of its Aktogay project by 4.4% to $2.2b. Together with Bozshakol in northern Kazakhstan, the Aktogay project, located in eastern Kazakhstan, is KAZ Mineral’s main copper asset.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Yandex taxi to expand in Georgia and Kazakhstan

JULY 27 2016 (The Conway Bulletin) — Internet taxi service Yandex Taxi said it plans to enter the Georgian market and expand its presence across Kazakhstan from its base in Almaty. Yandex Taxi entered the Armenian market in July, triggering complaints of price dumping from the traditional taxi association in Yerevan. In June, mobile-based Uber started operations in Astana.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Gas tariff rise in Kazakhstan

JULY 26 2016 (The Conway Bulletin) — The Kazakh anti-monopoly agency approved a 39% increase in the top rate it can charge for pumping gas through its pipeline network to 1,769 tenge/1,000 cubic metres ($5), in a move that will impact domestic and industrial gas prices. The new tariff ceiling will come into effect on Sept. 1 and will be valid until 2020. Gas price rises are a sensitive issue. Governments across the region have been raising prices slowly, moving away from Soviet subsidies. This, though, has frustrated people and triggered anti government protests.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Two Kazakhs arrested for spreading rumours

ALMATY, JULY 27 2016 (The Conway Bulletin) — Kazakh police arrested two people for spreading false information of a major terrorist attack in Almaty via Whatsapp after a lone gunman killed five people earlier this month.

The authorities have said they will take a tough attitude against people who spread rumours. Many Kazakhs are signed up to a series of Whatsapp news groups through which they share information.

On July 18, after a gunman killed eight people in Almaty, security forces ordered people to stay inside. A series of Whatsapp messages about the deteriorating scenario filled the news vacuum.

Ruslan, a 23-year-old Almaty resident, explained.

“I received many pictures and voice messages on my chat groups on Whatsapp,” he told The Conway Bulletin. “But in the end most of that information from voice messages turned out to be fake.”

An interior ministry spokesperson said a 20-year old woman was arrested for spreading false information about hostages being taken at a shopping mall and another man was arrested for spreading rumours that hundreds of armed men were marching through an Almaty suburb.

In February 2014, rumours spread about the bankruptcy of three of Kazakhstan’s biggest banks, triggering a run on the banks and a shortage of cash. In response, a new law came into force making the spread of false information punishable by 10 years inprison.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Kazakh court extends journalists detention

JULY 28 2016 (The Conway Bulletin) — A court in Almaty extended the pre- trial house arrest by two months of Seitkazy Matayev, one of Kazakhstan’s most prominent journalists, and his son Asset. The Matayevs are accused of embezzlement and abuse of trust. In May, the prosecutor reduced his charges against Seitkazy Matayev, who continues to deny the accusations. Human rights groups have accused Kazakhstan of a systematic crackdown on its media.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Poverty increases in Kazakhstan

JULY 22 2016 (The Conway Bulletin) — In a new country report, the World Bank said that Kazakhstan has been unable to reduce poverty in the past few years, as the percentage of the population living off under $5/day continues to measure around 14%. In absolute numbers, poverty has increased and the number of people living under the World Bank threshold is nearing 3m. The World Bank said that the depreciation of the tenge since August 2015 and a stagnant job market have impacted living standards.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Briefing: Gulenist links in Central Asia & S.Caucasus

AUG 1 2016 (The Conway Bulletin) — >>So, we know that the Gulen movement was big in Turkey but in Central Asia? Really? How deep is it and what does it do?

>> The movement, created by cleric Fethullah Gulen, is a social and religious group that has said it wants to integrate moderate Islam into the secular Turkish state and to replicate the model in other Muslim countries. The movement counts millions of followers. As it puts great emphasis on education and upward social mobility, the movement established a network of schools around the world, including in Central Asia and the South Caucasus.

>>OK, but who is Gulen? Wasn’t he an ally of Erdogan?

>> Turkish President Recep Tayyip Erdogan found in Gulen a strong ally when he came to power in 2003, a bulwark against a possible military backlash, something that had dogged Turkish leaders for half a century. Gulen and Erdogan, though, fell out in 2013, when a corruption scandal targeting members of Mr Erdogan’s ruling AKP party emerged. Mr Erdogan and others in his party alleged that the Gulenist members of the judiciary had orchestrated the scandal. Since then the government has cracked down on Gulenists in Turkey. Mr Gulen has lived in the United States since 1999 in a self-imposed exile. Now, after a failed coup in Turkey last month blamed on Gulen, Turkey has said it could ask the US government for the extradition of Gulen. Since the coup, Turkish police have detained over 60,000 state employees and dozens of journalists and businessmen allegedly linked to the Gulen movement.

>>Quiete a full-on assault. Will Turkey now force a crackdown on Gulen- linked institutions in Central Asia and South Caucasus?

>> In short, this bureau and the analysts we contacted all agree that Turkey will not go as far as to sever relations with countries that don’t respond to the request to shut down Gulen-linked schools. Apart from Azerbaijan, all other countries are loosely linked with Turkey. Plus, as shown in our story on page 3, these schools are a relative island of quality and reliability in the South Caucasus and Central Asia’s messy educational system. Both Kyrgyzstan and Kazakhstan have shrugged off Turkey’s requests to shut down Gulen- linked schools. Georgia appears also to have pretty much ignored Turkey’s request. Only Azerbaijan, Turkey’s super-tight ally, has gone along with Turkey’s request and closed down a TV station that had planned to run an interview with Gulen and brought under government control a university linked to the Gulen movement.

>>OK, but what about the businesses linked to Gulen?

>> The closest business link between Gulenists and the South Caucasus seems to have been uprooted immediately, with the sacking of Sadettin Korkut, chief of Petkim, a petrochemical complex in Izmir, owned by Azerbaijan’s state-owned SOCAR (See the front page of the Business News). It appears that SOCAR was also keeping a list of Gulen-linked people among its ranks. Together with Korkut, who was later arrested, around 200 other employees of SOCAR-linked companies were sacked. This, however, appears to be a one-off act of loyalty from Azerbaijan’s government to Ankara.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)

Kazakhstan-focused Nostrum drops in H1

JULY 27 2016 (The Conway Bulletin) — Kazakhstan-focused Nostrum Oil & Gas posted a 41% drop in revenues in H1 2016, compared to last year because of continued low oil prices. Production in H1 fell by 12% to an average of 38,993 barrels of oil equivalent per day. The company said that the full-year production forecast remained at an average of 40,000 barrels of oil equivalent per day.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 291, published on Aug. 1 2016)