Tag Archives: Kazakhstan

Lithuania refuses Shalabaev extradition for Kazakhstan

JUNE 28 2016 (The Conway Bulletin) – In a snub to the Kazakh government, a court in Lithuania said that it won’t order the government to detain and extradite the brother-in- law of Mukhtar Ablyazov, the billionaire former opposition leader. Syrym Shalabayev is the brother of Ablyazov’s wife. He was given asylum in Lithuania. Ablyazov is in French custody fighting extradition charges to Kazakhstan for allegedly stealing $5b when he was chairman of BTA Bank.

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(News report from Issue No. 287, published on July 1 2016)

Kazakh Air Astana starts flights to Iran

JUNE 30 2016 (The Conway Bulletin) – Kazakhstan’s flagship carrier Air Astana said it started direct flights to Iran, after it had delayed starting the route in May. From June 30, Air Astana will fly three times a week between Almaty and Tehran. Kazakhstan and Iran have tried to boost business ties since western countries lifted sanctions on Iran in January.

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(News report from Issue No. 287, published on July 1 2016)

Currencies: Kazakhstan’s tenge, Azerbaijan’s manat

JULY 1 2016 (The Conway Bulletin) – Since mid-2014, a strong US dollar and downward pressures on oil prices have hit economies across Central Asia and the South Caucasus.

Currencies in the region suffered and, despite all the efforts from Central Banks to keep the exchange rate steady by intervening in the market, the fall was inevitable.

Compared to two years ago, all currencies have lost between 15% to 50% of their value. Oil exporting countries (in green in the graph) have fared worse than oil importing countries (pictured in red).

The Kazakh and Azerbaijani Central Banks decided to abandon the currency peg to the US dollar in 2015, causing a plunge in the value of the tenge and the manat. In 2015, these two were among the worst-performing cur- rencies in the world, not just the region.

Oil importers have acted in the opposite direction. In Georgia and Kyrgyzstan, currencies stabilised in the second half of 2015 and Central Banks have tightly controlled exchange rates since.

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(News report from Issue No. 287, published on July 1 2016)

SCO leaders gather in Uzbekistan for summit

JUNE 23 2016 (The Conway Bulletin) – The presidents of Kazakhstan, Kyrgyzstan and Tajikistan gathered in Tashkent to kick-start the summit of the Shanghai Cooperation Organisation (SCO), together with their colleagues from Russia and China and Uzbek host, President Islam Karimov. The members are set to vote on June 24 to begin the membership process for India and Pakistan, currently observer countries.

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(News report from Issue No. 286, published on June 24 2016)

Kazakh oil producer restarts output

ALMATY, JUNE 21 2016 (The Conway Bulletin) — Aral Petroleum Capital, a small oil company owned by Canada’s Caspian Energy, said it had restarted oil production at the East Zhagabulak field in Kazakhstan after cutting output to zero because of the sharp fall in oil prices.

This is good news for the Kazakh oil sector, which has seen production fall from some of its least economical fields and may also indicate that other oil companies who have cut production would follow with price rises.

Aral said it welcomed the Kazakh government’s decision to cut customs duty on oil to $30/tonne from $40/tonne in February.

Michael Nobbs, chairman of Caspian Energy, said its subsidiary will now generate cash flow to boost investment as well as pay back creditors. Mr Nobbs, however, warned that creditors could hinder progress. “If a creditor were to take action to seize or block access to Aral’s bank accounts, Aral’s ability to continue producing would be seriously jeopardized,” Mr Nobbs said in a statement.

Aral operates the Zhagabulak oil field, located in the north-western Aktobe region, near Kenkiyak.

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(News report from Issue No. 286, published on June 24 2016)

Person in the news: Asset Issekeshev, the new mayor of Astana

JUNE 20 2016 (The Conway Bulletin) – An urbane, English-speaking former civil servant who has quickly climbed up through the ranks, Asset Issekeshev, 44, is the prototype of Kazakhstan’s new generation. One of his most high-profile colleagues is Baurzhan Baibek, 42, mayor of Almaty since August 2015, forming a duopoly of power in the country’s most important civic positions.

But while Mr Baibek received a government grant to study in Germany, Mr Issekeshev’s education was completed in Kazakhstan, at the Al-Farabi University in Almaty, with a Law degree.

A Karaganda native, Mr Issekeshev then graduated from the Higher School of Public Administration, an aspiring model school for politicians.

Since the late 1990s, Mr Issekeshev has worked his way through government bodies, reaching the post of minister of industry and trade in 2009. Under him, the ministry underwent two successive reorganisations, first it changed name to the ministry of industry and new technologies and in 2014 to the ministry for investment and development.

Now the ever loyal Mr Issekeshev has claimed a top job as the mayor of Astana. Adilbek Dzhaksybekov, named chief of the presidential administration this week, was the incumbent before Mr Issekeshev took over on June 21.

Other notable mayors include Umirzak Shukeyev, currently chief of Kazakhstan’s sovereign wealth fund Samruk-Kazyna, and Imangali Tasmagambetov, currently minister of defence and formerly Kazakh PM.

Throughout the history of independent Kazakhstan, the post of Astana mayor has proved to be a powerful springboard. When President Nursultan Nazarbayev wants to

raise the profile of a career-bureaucrat, the mayoral position in Astana is a perfect position.

Next year, the much awaited and heralded EXPO will take place in Astana, and Mr Issekeshev will be the young face of the shiny Kazakh capital.

The public likes him and local political observers highly regard him. He ranked as the most popular minister in the country last year, in a poll organised by KIPR, a local think-tank. In June 2013, he was named among the top ten of Kazakhstan’s most powerful elite people, according to the Strategiya think-tank.

This, perhaps, puts him in a strong position to play a role inMr Nazarbayev’s succession plans.

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(News report from Issue No. 286, published on June 24 2016)

Kazakhstan fines ArcelorMittal

JUNE 17 2016 (The Conway Bulletin) – Steel producer ArcelorMittal Temirtau received a fine of 3.4m tenge (around $10,000) from the Kazakh government for failing to comply with its 2014 investment plan. The company, a subsidiary of Indian giant ArcelorMittal, operates the biggest steel producing plant in Central Asia. Slower demand for steel had forced the company to cut back investment and lay off workers in 2014. It had hoped that the reemergence of Iran into the international economy would boost sales.

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(News report from Issue No. 286, published on June 24 2016)

Kazakh city administration rolls parking meters

JUNE 21 2016 (The Conway Bulletin) – The Almaty city administration is rolling out parking meters across the city, the first in Kazakhstan. Almaty SpetsTekhParking, the company that will manage the service, said that the fee will beof100tenge/hour ($0.30). Almaty citizens reacted in online forums. Some highlighted a possible waste of public funds, but some hailed the measure as a potential life-saver for the city, which suffers from a chronic pollution problem.

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(News report from Issue No. 286, published on June 24 2016)

Kazakh president shuffles key government roles

ALMATY, JUNE 21 2016 (The Conway Bulletin) — Kazakh President Nursultan Nazarbayev reshuffled several government positions, naming a new mayor for Astana and a new chief of the presidential administration, perhaps giving an indication of how he sees his succession playing out.

Former Astana mayor Adilbek Dzhaksybekov was named chief of the presidential administration, taking the place of Nurlan Nigmatullin, who was quickly made Speaker of parliament.

Mr Nazarbayev thanked and lauded both for their services.

“Mr Nigmatullin worked with me for many years with skill and professionalism, proving himself during hard times,” Mr Nazarbayev said. “Mr Dzhaksybekov has previously worked in this position, for which we need a person with experience and equilibrium.”

The head of the presidential administration is one of the most powerful positions in the Kazakh political system, marking a major promotion for the 61-year-old Mr Dzhaksybekov.

For Mr Nigmatullin, known as the “Grey Cardinal” for his deal making abilities and loyalty to Mr Nazarbayev, the position of Speaker of parliament is an important one. According to the Kazakh constitution, if Mr Nazarbayev resigns or dies in office, he will take over as president.

Importantly, too, Asset Issekeshev, former minister of innovation and development was named mayor of Astana, replacing Mr Dzhaksybekov.

Mr Issekeshev, 44, is seen as a rising star. As mayor of Astana, he will be the face of the capital city, when it hosts the EXPO next year.

Mr Nazarbayev is 75-year-old but has yet to lay out a coherent succession plan. He has ruled over Kazakhstan since independence from the Soviet Union in 1991.

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(News report from Issue No. 286, published on June 24 2016)

Kazakh MPs approve moratorium on land code changes

ALMATY, JUNE 23 2016 (The Conway Bulletin) — In a surprise move, Kazakhstan’s parliament voted to approve a moratorium laid down by President Nursultan Nazarbayev earlier this year on reforms to the country’s land code.

Although the vote doesn’t change the process, it does confirm that Mr Nazarbayev and the Kazakh elite have delayed controversial changes to the land code until at least January.

The changes to the land code, that would have made it easier for foreigners to own and rent land, triggered a wave of protests across the country in April and May. These were the largest popular protests against Mr Nazarbayev since he took office in 1991, forcing him to announce the moratorium.

He also heaped blame on government officials for the mishandling of the land code reform that had been designed to attract much-needed foreign investment.

Like the rest of the region, Kazakhstan has been dealing with a sharp economic downturn that has hit its finances. It is heavily reliant on sales of oil and gas for its income, both of which has plummeted in value since mid-2014.

There were some suspicions that the land reform proposal were being used by opponents of Mr Nazarbayev to whip up a popular revolt against him.

The authorities accused the boss of a brewery in Shymkent for attempting a coup.

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(News report from Issue No. 286, published on June 24 2016)