Tag Archives: Kazakhstan

Journalists in Kazakhstan go on strike

MAY 20 2016 (The Conway Bulletin) — Journalists at Kazinform, the Kazakh government’s media outlet, said they would go on a strike on May 21 because of wage arrears, but later called it off. Importantly, strikes at Kazinform are rare. The last recorded strike was in 2010. May 21 was a sensitive date as a popular protest against changes to the land code was planned on the same day. The government stepped in and met the demands of Kazinform journalists.

ENDS

(News report from Issue No. 282, published on May 27 2016)

Kazakhstan receives loan from EBRD

MAY 26 2016 (The Conway Bulletin) — The EBRD has loaned around €294m ($328m) to KazTransGas, Kazakhstan’s state-owned gas distributor, to finance the modernisation of a gas storage facility and a distribution network. This is the first time that the EBRD has invested into KazTransGas projects. Modernisation at the Bozoi gas storage facility, near the Aral Sea, will increase its capacity by 1.5 times to 4b cubic metres.

ENDS

(News report from Issue No. 282, published on May 27 2016)

Court in Kazakhstan imprisons critical journalist

ALMATY, MAY 23 2016 (The Conway Bulletin) — A court in Almaty sentenced Guzyal Baidalinova, owner and editor of the Nakanune.kz website which is critical of the Kazakh government, to 1-1⁄2 years in jail for libel against Kazkommertsbank.

Baidalinova’s supporters said that the charges against her are politically motivated and show that the authorities in Kazakhstan have little regard for freedom of the press. In a separate case, charges against Seitkazy Matayev, head of the Journalists Union and a former press chief for President Nursultan Nazarbayev were reduced from embezzlement and tax evasion to abuse of trust. He has denied the charges.

The authorities in Kazakhstan have been cracking down on journalists as an economic downturn worsens and ordinary Kazakhs start become increasingly frustrated with their plight.

ENDS

(News report from Issue No. 282, published on May 27 2016)

Ex-Kazakh minister to head Baiterek

MAY 17 2016 (The Conway Bulletin) – Former Kazakh minister of economy Yerbolat Dossayev took the post of chairman of Baiterek, a state-owned holding that manages several financial vehicles. This is effectively a job swap. Mr Dossayev replaces Kuandyk Bishimbayev at Baiterek. Earlier this month Mr Bishimbayev was made the minister of economy. Mr Dossayev resigned as economy minister after protests over planned changes to the land code spread across the country earlier this month.

ENDS

(News report from Issue No. 281, published on May 20 2016)

Kazakhstan’s GDP shrinks

MAY 19 2016 (The Conway Bulletin) – Kazakhstan’s GDP shrank by 0.2% in the first quarter of 2016, the first dip in seven years, according to the Statistics Committee. Trade, telecoms, and industrial production slowed significantly. Analysts at Halyk Finance forecast that Kazakhstan’s GDP will grow by just 0.2% this year, the lowest growth since the 2008 Global Financial Crisis. Kazakhstan, like the rest of the region, is struggling to deal with the knock on effects of a recession in Russia and collapse in oil prices.

ENDS

(News report from Issue No. 281, published on May 20 2016)

Kazakh company fails to pay salaries

MAY 17 2016 (The Conway Bulletin) – A Kazakh court ordered the seizure of assets at Munai Service Aktobe, a small oil service company in north- western Kazakhstan, after it failed to pay 17.3m tenge ($52,000) in wage arrears. The Aktobe administration said that there are several companies in the oil and gas sector whose wage arrears are “chronic”. In 2011, protests by oil workers in Western Kazakhstan triggered clashes that killed at least a dozen people. With increasing frequency, reports are emerging from Kazakhstan that companies are failing to pay their workers on time.

ENDS

(News report from Issue No. 281, published on May 20 2016)

Mongolia withdraws direct flights to Kazakhstan

MAY 19 2016 (The Conway Bulletin) — Kazakhstan’s flagship carrier Air Astana said Mongolia’s aviation authority had withdrawn permission to open a direct flight from Astana to Ulaanbaatar in June. The company said that the Mongolian aviation authority did not give a reason for unilaterally withdrawing permission to fly. A spat with the Russian aviation authority over the use of airspace had previously delayed the launch of the link. Officially, Air Astana denied that the two incidents were related.

ENDS

(News report from Issue No. 281, published on May 20 2016)

Kazakh Pension Fund loans cash

MAY 17 2016 (The Conway Bulletin) – Kazakhstan’s Central Bank said it had given 62b tenge ($186m) in loans from the state’s Pension Fund to around 30 commercial banks, in an effort to boost their liquidity. Kazakhstan’s Pension Fund, previously held at commercial banks, was nationalised between 2013 and 2014. It held up to $20b. Last month, the Central Bank opened a credit line from the Fund for commercial banks.

ENDS

(News report from Issue No. 281, published on May 20 2016)

Gelncore to sell futures in Kazakhstan

MAY 17 2016 (The Conway Bulletin) — Switzerland-based trader Glencore is considering selling gold futures, not its whole gold mining operation at Vasilkovskoye, a source close to the deal told the business website atameken.info. Glencore owns 70% of Kazzinc, the company that operates Vasilkovskoye which is located 300 km north-west of Astana. Reports had previously stated that Glencore was looking to sell its stake in the mine.

ENDS

(News report from Issue No. 281, published on May 20 2016)

Rakishev dismisses latest KazKom downgrade

ALMATY, MAY 18 2016 (The Conway Bulletin) — Kazkommertsbank, Kazakhstan’s largest lender, said it wants to buy back up to $500m in Eurobonds due this year, a bullish response to a recent double downgrade it received from international ratings agencies.

In a wide-ranging press conference, KazKom’s new chairman Kenes Rakishev said the bank has enough liquidity to pay for its debt, which will reach maturity later in 2016 and in early 2017.

“While our consultants advise us to buy back $300m, we are ready to buy back $500m,” Mr Rakishev told media and investors. “It’s a business decision as it is now cheaper to deal in the domestic market than it was when the bonds were issued.”

Mr Rakishev was appointed chairman of KazKom earlier this month after effectively completing a buyout of the country’s largest bank. He is the son-in-law of Kazakh defence minister, Imangali Tasmagambetov. He owns large stakes in several major

Kazakh companies and is often considered to be working on behalf of more senior members of the Kazakh elite.

Earlier in the week, the ratings agency Standard & Poor’s had cut KazKom’s debt rating to CCC+ because it said that via its merger with BTA Bank, the indebted bank that the government had owned, KazKom had inherited a swathe of bad debt in foreign currencies.

Some analysts have said that the KazKom/BTA merger and Mr Rakishev’s takeover were driven by politics and not business.

Mr Rakishev, though, brushed the downgrade aside and pointed out that other ratings agencies had already factored this into their calculations and issued earlier downgrades.

“I think we’ve passed the darkest zone and that we will move on to a completely new zone and concentrate on how to eliminate negative things that have occurred,” he said.

And Mr Rakishev also said that he wanted KazKom to shift its emphasis into the SME sector.

“We have an opportunity here to grow,” he said. “And not only in Almaty and Astana but also in the regions.”

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(News report from Issue No. 281, published on May 20 2016)