Tag Archives: Kyrgyzstan

Atambayev sacks head of Kyrgyz- Russian Development Fund

MARCH 14 2016, BISHKEK (The Conway Bulletin) — Kyrgyzstan’s President Almazbek Atambayev fired Nursulu Akhmetova, one of the most prominent women in Kyrgyz finance, as head of the Kyrgyz-Russian Development Fund barely a year after she took the job.

The $500m Kyrgyz-Russian Development Fund was set up last February to smooth Kyrgyzstan’s entry into the Eurasian Economic Union.

It was supposed to hand out grants and cheap loans to businesses to help them make the transition. Instead, in the seven months since Kyrgyzstan became a Eurasian Economic Union member, the Kyrgyz- Russian Fund has become a source for frustration for Kyrgyz businesses.

News reports quoted Mr Atambayev saying at her sacking: “I’ve spoken about this a few times with the Prime Minister. The Fund has not developed well, and the Government did not make it to work well.”

Kyrgyz businesses have accused the fund of changing the rules and making cash available only to large companies rather than small businesses.

Under Ms Akhmetova, the Fund had insisted that to qualify for loans or grants, businesses had to take out a minimum loan of $3m, contributing 20% itself.

For Mr Atambayev, the sacking is a personal disappointment. Before getting the job, on a three year contract, Ms Akhmetova had been head of the analytical department of the Presidential Administration. She was also its deputy director. Mr Atambayev would have worked with Ms Akhemetova personally.

Her replacement was named as Kubanychbek Kulmatov, a former mayor of Bishkek.

Analyst Emil Juraev said that the Fund still had a role to play if it can regain credibility under new leadership.

“The Russian-Kyrgyz Development Fund, if used well, can certainly have a significant positive effect on economic development of Kyrgyzstan,” he said. “However, so far there have been many reasons for concern about the ability of Kyrgyzstan to effectively and freely manage the funds.”

ENDS

(News report from Issue No. 272, published on March 18 2016)

Kyrgyzstan to host SCO wargames

MARCH 17 2016 (The Conway Bulletin) – Kyrgyzstan will host the main military exercise for members of the Russia and China led Shanghai Cooperation Organisation (SCO) later this year. Media said that the military exercise, involving soldiers from all the SCO’s members will be the biggest held in Kyrgyzstan. Kazakhstan, Tajikistan and Uzbekistan are also members of the SCO which has an economic, social and military agenda.

ENDS

(News report from Issue No. 272, published on March 18 2016)

Editorial: British Airways and Azerbaijan

MARCH 18 2016 (The Conway Bulletin) -The economic downturn continues to hit Central Asia and the South Caucasus with British Airways now cancelling its London-Baku service.

But whether BA needs to quit the route altogether is questionable. Airlines keep a diversified portfolio of route because it is near impossible to second guess which routes will be profitable in a few year’s time.

The decision took many by surprise because of the strong presence of British business in Azerbaijan, most notably BP.

As oil prices fell dramatically in the past 20 months, airline companies have rallied on cheap fuel, but have also struggled to maintain links to countries negatively affected by the crisis.

In 2012, British Airways cut its route to Yerevan, the following year it cancelled regular flights to Bishkek and Tbilisi. Last October, the company quit its London-Almaty route.

The crisis, aside from hitting government budgets and people’s wallets, has contributed to cutting off further the region from the West.

ENDS

Editorial from Issue No. 272, published on March 18 2016)

Kyrgyzstan makes hydropower plan

MARCH 17 2016 (The Conway Bulletin) – Kyrgyz PM Temir Sariyev said that 16 new hydropower stations would be built for a total of $160m, adding 188MW of power to the national grid. This is important as Kyrgyzstan is committed to boosting its power output to hit domestic demand and also to feed the CASA-1000 project which will send electricity to Pakistan via Tajikistan and Afghanistan.

ENDS

(News report from Issue No. 272, published on March 18 2016)

Power consumption falls in Kyrgyzstan

MARCH 16 2016 (The Conway Bulletin) – Bakyt Torobayev, a Kyrgyz opposition MP, said that a drop in electricity consumption across the country proved that Kyrgyzstan’s economy was failing. He said that electricity consumption in Kyrgyzstan had halved in the past year. Reports from Kyrgyzstan have said that many industries are struggling to cope with the sharp downturn in the economy.

ENDS

(News report from Issue No. 272, published on March 18 2016)

Russia gives Kyrgyzstan grants

MARCH 6 2016 (The Conway Bulletin) – Russia gave Kyrgyzstan a $30m grant to help it cover holes in its finances that have appeared during the economic downturn. Specifically the grant was supposedly earmarked to finished building new accommodation for police and army recruits. The economic downturn has hit Kyrgyzstan hard, whipping millions off is budget. Russia curries favour with Central Asian states by handing out grants or cheap loans.

ENDS

(News report from Issue No. 271, published on March 11 2016)

Women march through Kyrgyz capital on March 8 to demand more rights

MARCH 8 2016, BISHKEK (The Conway Bulletin) — Dozens of women protested in Bishkek against what they said was the patronising message sent out by the traditional March 8 International Women’s Day celebrations.

The march was a rare challenge to what has become one of the former Soviet area’s most popular and enduring holidays.

“Don’t sell 8th of March for flowers,” the marchers chanted. “We don’t want flowers, we need rights.”

Civic demonstrations, especially by pro-women’s rights groups are rare, if not unheard of, in Central Asia, where governments retain strict control and generally mistrust the rise of women in society.

Kyrgyzstan is something of an exception. It has more political plurality than other countries and counts a woman, Roza Otunbayeva, as a former head of state. She was president of Kyrgyzstan in 2010 and 2011, after a revolution overthrew her successor Kurmanbek Bakiyev. None of the other Central Asian states have had any significant female political or business leadership other than daughters of presidents.

Saadat, one of the march participants, told the Bulletin’s Bishkek correspondent that March 8 was not a holiday to celebrate spring and woman but something much more important.

“Instead of buying flowers and making profit for local flower shops, people would better support women’s crisis centres or female entrepreneurs,” she said.

“I think, one of reason why we were not dispersed on the square (bpolice) is that two female MPs were also with us on the square,” she added.

There is supposedly a quota of women in the Kyrgyz parliament of 30% although activists said the proportion of women in parliament had dropped to 12.4% from 19% in 2004.

Arina Sinovskaya, a member of a Kazakh feminist group, said their rally had been banned in Kazakhstan.

“In Kazakhstan, unfortunately, we cannot hold a march, so we came here to express our solidarity,” she said.

ENDS

(News report from Issue No. 271, published on March 11 2016)

US sends military to Georgia, Tajikistan and Kyrgyzstan

MARCH 10 2016 (The Conway Bulletin) – Georgia, Tajikistan and Kyrgyzstan are among the three most dependent countries on US aid to pay for their military, the eurasianet.org website reported by quoting a Washington lobby group. In 2014, Georgia received $158m of US military aid, out of a total budget of $387m; Tajikistan received $29m of US aid out of $104m in total and Kyrgyzstan received $90m out of a total military budget of $252m.

ENDS

(News report from Issue No. 271, published on March 11 2016)

Kyrgyzstan asks Eurasian Bank for crisis cash

BISHKEK, MARCH 9 2016 (The Conway Bulletin) — Kyrgyzstan’s finance minister Adylbek Kasymaliyev asked the Eurasian Fund for Stabilisation and Development to double its aid to $427m to help the country weather both an economic downturn and the impact of joining the Kremlin-led Eurasian Economic Union.

Remittance inflows to Kyrgyzstan have fallen by 40%, the som currency has lost 25% of its value and major infrastructure projects have been cancelled over the past six months.

Mr Kasymaliyev said Kyrgyzstan had already spent more than the $255m of loans and grants that the Fund, managed by the Eurasian Development Bank had given it.

“We have already surpassed our limit of $255m by allocating $260m. For this reason, we have asked the Council to raise the limit to $427,” Mr Kasymaliyev told local media.

The funds will be used for a range of projects, including agriculture.

Importantly, though, analysts said that although Kyrgyzstan needed to protect itself against the regional economic crisis, it was under extra pressure from its entry last August into the Eurasian Economic Union. The government said the trade block, which includes Russia, Kazakhstan, Belarus and Armenia, would improve conditions for Kyrgyz business.

Instead, though, businesses have complained it has exposed them to unfair competition.

Ayilchy Sarybayev, an analyst based in Bishkek, said the cash would be used to subsidise Kyrgyz farmers.

“The fund is being raised because small and medium enterprises cannot compete with Kazakh and Russian ones now,” he said. “Kyrgyz entrepreneurs have started buying (more expensive) agricultural equipment from Kazakhstan and Russia (rather than from China).”

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(News report from Issue No. 271, published on March 11 2016)

Kyrgyzstan debates NGO law, again

FEB. 29 2016 (The Conway Bulletin) – Kyrgyz MPs have said that they are once again going to debate a controversial bill dubbed the “foreign agents’ law”. The bill was touted last year as being similar to one passed by Russia in 2012 that made it more difficult for NGOs to receive funding from overseas. The West has been increasingly concerned by what it has said is a trend by Kyrgyzstan to move towards Russia and away from the more liberal values that it had once appeared to embrace.

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(News report from Issue No. 270, published on March 4 2016)