Tag Archives: Kyrgyzstan

Comment: Remittance drop

JULY 23 2015 (The Conway Bulletin) — For Kyrgyzstan, gold is its most important commodity, the Kumtor gold mine in the east of the country is its most important mine and Switzerland is its most important export market.

Last week, the government released data on trade turnover, which showed a marginal downturn, due mostly to the regional crisis triggered by the downfall of the rouble. A strong dollar and low oil prices have damaged the economic outlook for the whole region, especially for countries, like Kyrgyzstan, which rely heavily on foreign remittances. It was not a surprise to see trade shrink by 12% in January-May 2015, as compared to the same period last year.

An accurate data analysis, however, also told of another underlying story. Out of the eight major markets for Kyrgyz exports, the only two to grow were Switzerland (2.2 times larger than in 2014) and the British Virgin Islands (almost 4 times larger).

Centerra Gold, owners of the Kumtor gold mine, had a much better start in 2015 than it had in 2014 and trade with Switzerland, the main importer of Kyrgyz gold, was automatically boosted. Switzerland now accounts for 48% of Kyrgyz exports.

Kyrgyzstan is heavily betting on Switzerland to keep its cash flow steady. The one warning sign on the horizon is that gold has dipped to a 5-year low.

By Paolo Sorbello, Deputy Editor, The Conway Bulletin

ENDS

(News report from Issue No. 241, published on July 23 2015)

Kyrgyzstan downgrades relations with the US

JULY 21 2015 (The Conway Bulletin) – BISHKEK – Kyrgyzstan downgraded bilateral relations with the US because of an award the State Department gave to an imprisoned ethnic Uzbek human rights defender last week, media reported.

Relations between the US and Kyrgyzstan have been worsening since the US military withdrew from an air base outside Bishkek last year. Since then, Kyrgyzstan has drifted towards Russia, joining its Eurasian Economic Union and adopting laws on foreign-funded NGOs and homosexuals which the US has said infringes civil liberties.

The award was given by the US State Department to Azimzhan Askarov. He was imprisoned in the south of Kyrgyzstan in 2010 after ethnic fighting killed nearly 400 people in the city of Osh. His supporters said that the charges, inciting violence, had been fabricated.

After Askarov’s son travelled to Washington to pick up the award, Kyrgyz PM Temir Sariyev signed a decree denouncing relations, which will come into effect on Aug. 20. The move will mean tax breaks awarded to US companies will be cancelled.

On the streets of Bishkek, reaction was mixed. Some people welcomed the tough stance by Mr Sariyev, others were cautious.

“In a couple of years, we will become a colony of Russia,” said a 30-year-old resident of Bishkek. “It is indeed bad that we are losing such assistance because Kyrgyzstan is a poor country.”

ENDS

(News report from Issue No. 241, published on July 23 2015)

Kyrgyz forces foil attacks

JULY 17 2015 (The Conway Bulletin) – The Kyrgyz National Security Committee said it had prevented two attacks planned by the extremist group IS. Kyrgyz special forces said it killed six men during two gunfights in Bishkek. Allegedly, their targets were a square in Bishkek and the nearby Kant airbase, leased to Russia’s military.

ENDS

(News report from Issue No. 241, published on July 23 2015)

Protesters challenge Kyrgyz labour law changes

JULY 14 2015 (The Conway Bulletin) – BISHKEK — Dozens of people protested in central Bishkek against proposed changes to labour laws which they say will reduce the rights of temporary workers.

The main proposed changes focus on making it easier for foreign companies to hire and fire workers.

The government has argued that it needs to update labour laws to crackdown on the “shadow economy” where employers hire people for short periods but do not pay tax.

Protesters said the amendments would help foreign companies dodge paying social security and over-time.

The mood at the protest, which wound its way through central Bishkek under a cloudless blue sky, was angry but calm.

“We are against slavery,” one of the protesters’ banners said.

Many of the protesters were representatives of workers’ unions attached to mines, including the Kumtor mine in the east of the country owned by Toronto-based Centerra Gold. Kumtor is Kyrgyzstan’s single biggest industrial asset.

After the protest, the government said they would set up a working group to look at the demonstrators’ concerns.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Kyrgyz-Russia trade falls

JULY 14 2015 (The Conway Bulletin) – Trade turnover between Kyrgyzstan and Russia fell by 17.3% in January-May 2015 as compared to the same period in 2014, according to the Russian Customs Service. This is more evidence of the knock on effect on Central Asia of Russia’s economic downturn.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Kyrgyz foreign ministry complains US over award

JULY 14 2015 (The Conway Bulletin) – The US State Department gave a human rights award to Azimzhan Askarov, an ethnic Uzbek sent to prison in 2010 for inciting ethnic fighting earlier that year. At the time, in 2010, Askarov’s supporters said the charges had been fabricated. The Kyrgyz foreign ministry lodged a complaint to the US State department.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Kyrgyz police detains MP over corruption

JULY 15 2015 (The Conway Bulletin) – Kyrgyz police detained MP Hajimurat Korkmazov for extorting a bribe of $100,000 from the brother of Nariman Tuleyev, a jailed MP, the AKIpress agency reported. The case highlights corruption among officials in Kyrgyzstan.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Kyrgyzstan starts campaign to buy local products

JULY 9 2015 (The Conway Bulletin) – Ahead of its accession to the Eurasian Economic Union later this year, domestic producers in Kyrgyzstan have started a campaign to try and persuade more people to buy locally made products, the 24.kg news agency reported.

ENDS

(News report from Issue No. 239, published on July 9 2015)

30% of Kyrgyz people live in poverty

JULY 9 2015 (The Conway Bulletin) – Around 30% of the Kyrgyz population live in poverty, media quoted the National Statistics agency as saying. People are considered living in poverty if they survive on less than $45/day. Kyrgyzstan is one of the poorest countries in the world.

ENDS

(News report from Issue No. 239, published on July 9 2015)

Kyrgyz som amount falls in bank accounts

JULY 3 2015 (The Conway Bulletin) – The amount of som held in Kyrgyz bank accounts has fallen by 11% since the beginning of the year, the Central Bank said, a reflection of the reduced confidence that people in Kyrgyzstan have of their national currency. The som, like other Central Asian currencies, has lost around a third of its value since November 2014.

ENDS

(News report from Issue No. 239, published on July 9 2015)