OCT. 1 2015 (The Conway Bulletin) – Looking to boost the popular appeal of picking cotton, the authorities in Uzbekistan pulled in an actor and a singer for a photo op of them working in fields, the US-funded Radio Free Europe/Radio Liberty reported. Uzbekistan’s cotton picking programme has drawn criticism from human rights groups.
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(News report from Issue No. 250, published on Oct. 2 2015)
OCT. 1 2015, ALMATY (The Conway Bulletin) — The collapse in the value of the Kazakh tenge over the past 18 months has not only hurt businesses and consumers in Kazakhstan. Charities that collect cash in tenge but accrue costs in US dollars and other foreign currencies are also having to cut services — often life-saving ones.
In an interview with The Conway Bulletin, Ilyas Kubriyanov, head of the UnityKZ charity, said that the cost of sending ill children abroad for treatment had spiralled.
“We are having problems, of course, as foreign hospitals invoice in dollars but we collect 90% of our donations in tenge,” he said. “Consequently, the cost of treatments is increasing.”
UnityKZ helps pay for children who have cancer or other serious illnesses to travel abroad for treatment. Mr Kubriyanov, who set up the charity in 2009, said that there are currently 10 children waiting for treatment.
“Because of the currency situation, the money we collect loses its impact,” he said. “Everything has become much more expensive.”
The Kazakh Central Bank released the tenge from its US dollar peg in August, triggering a sharp devaluation. It is trading at around 272/$1 compared to 188/$1 on Aug. 19.
It also devalued its currency in February 2014. The tenge is now worth nearly half its Feb. 2014 value.
A sharp drop in oil prices and a recession in Russia has battered economies in Central Asia and the South Caucasus. Statistics show unemployment and inflation rising but the impact is felt across Kazakh society.
“Recently, we asked parents of sick children to think about another type of treatment to have or another country to aim for,” Mr Kubriyanov said. “One child was transferred to China recently, but they also have some difficulties with their currency there.”
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(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 30 2015 (The Conway Bulletin) — Veolia, the French utilities company, is looking to extend its control of Armenia’s water and sewage systems, Gor Grigoryan, CEO of Yerevan Jur which is already managed by a Veolia subsidiary, said. Armenia is re-organising its water and sewage companies. Next year, Yerevan Jur will merge with the Armenian Water and Sewage Company. There are three other similar companies in Armenia.
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(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 26 2015 (The Conway Bulletin) – Kazakhstan’s Olympic Committee reportedly appointed Timur Kulibayev, son-in-law of President Nursultan Nazarbayev and a potential successor, as its head. Earlier this year Almaty lost to Beijing in its bid to host the 2022 Winter Olympics. The bid boosted both the profile of Kazakhstan and also of its Olympic Committee.
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(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 30 2015 (The Conway Bulletin) – Turkmenistan introduced new labelling rules for alcoholic drinks and cigarettes, media reported. The labels are described by media as part of a drive by the authorities in Turkmenistan to protect its citizens from alcohol abuse and cigarette smoke but, in reality, it is probably more closely linked to a new tax to be imposed from next April.
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(News report from Issue No. 250, published on Oct. 2 2015)
SEPT. 19 2015, ALMATY (The Conway Bulletin) — City planners in Almaty confirmed that McDonald’s would open its first restaurant in the former Alatau cinema in the centre of the city next year, sparking debate over the US fast food chain’s entry into Kazakhstan.
The old Alatau cinema has been derelict for years but is loved by many people living in Almaty as an iconic part of the city’s architecture.
Karim Toktabayev, a businessman, is part of the campaign team trying to stop McDonald’s from moving into the cinema building.
“I am neutral towards opening of McDonald’s. I cannot say I am against it but I am very much against the demolition of the (former cinema) building,” he said. “Why do we need to demolish this building? Why can’t we save it? If we demolish all the old buildings we will not have any history left.”
Others, though, are more excited about McDonald’s opening. For many Kazakhs it has been a source of irritation that McDonalds, one of the most famous brands in the world never operated a restaurant in the country. Now that wrong can be put right.
“No matter where it opens, I am happy that it will open. We have plenty of cinemas in the city, why should it matter if we open it in one of these cinemas?” said Sholpan Alibekova, a student.
McDonalds has said it will probably open in the first quarter of 2016.
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(News report from Issue No. 249, published on Sept. 25 2015)
SEPT. 19 2015 (The Conway Bulletin) – Causing something of an upset, the Georgian rugby team beat Tonga 17-10 in their opening match of the Rugby World Cup in England. Georgia has the best national rugby team in the former Soviet Union and is ranked 13th in the world.
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(News report from Issue No. 249, published on Sept. 25 2015)
SEPT. 21 2015 (The Conway Bulletin) – A taxi driver from Sumqayit, in western Azerbaijan, has died after setting himself on fire, media reported, an apparent final desperate protest against bully by officials and corruption.
Radio Free Europe/Radio Liberty said this was the seventh immolation in Azerbaijan since 2014.
Immolations in the region are a particularly sensitive issue because of the political connotations. The so-called Arab Spring erupted after an immolation by a frustrated and brow- beaten market seller set himself alight in front of a local government building in a provincial town in Tunisia in 2010.
The Arab Spring spread across North Africa, fuelling popular protests which eventually toppled governments in Tunisia, Libya and Egypt.
It also worried Azerbaijani president Ilham Aliyev and some analysts have said that he started cracking down on opposition figures and media outlets after the Arab Spring undermined some of his allies.
The dead taxi driver was named as 27-year-old Maqsad Suleymanov. The authorities in Sumqayit did not specify how he died but a mass of social media comments and eyewitness reports said he had set himself on fire.
SEPT. 23 2015, ALMATY (The Conway Bulletin) — The Kazakh Central Bank presented a bill to parliament that will force people to take loans in tenge, a tactic it says is necessary to wean the economy off its addiction to US dollars.
Shaken by a 40% drop in the value of the tenge over the past 18 months, the Central Bank wants to ensure that commercial banks do not accrue a large amount of bad loans in US dollars as they did during the 2008/9 Global Financial crisis.
“This is an effort to protect customer’s rights and to decrease the rate of non-performing loans for second-tier banks,” Kuat Kozhakhmetov, deputy chairman of the Central Bank, said when he presented the bill to the parliament.
If the bill becomes law, people who have not earned their salary in a foreign currency for the 6 months before asking for a loan will will only be able to apply for a tenge loan.
According to a recent IMF study, almost 60% of the total loans issued by financial institutions in Kazakhstan are denominated in a foreign currency. The Central Bank also said that 14% of mortgages are currently denominated in foreign currencies.
People in Kazakhstan have used foreign currency loans to buy goods indexed to the US dollar or the Russian rouble, such as houses or cars. Salaries are often paid in tenge but are indexed to the US dollar.
A fall it the value of oil and a slump in the Russian economy has pressured the tenge and other regional currencies. Loans taken out in US dollars have become much more expensive to service.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 249, published on Sept. 25 2015)
SEPT. 25 2015, ALMATY (The Conway Bulletin) — Ukraine’s embassy in Astana sent an official protest note to the Kazakh foreign ministry after a school text book published a map of Russia showing the annexed region of Crimea to be firmly within its borders.
The map touched off a row that not only threatens to derail relations between Ukraine and Kazakhstan but also highlights the sensitive diplomatic tightrope that former Soviet states have to walk. Russia is the main economic driver of growth in Central Asia but Kazakhstan, and others, also need to maintain good relations with the West which firmly backs the Ukrainian government against the Kremlin.
“The Ukrainian Embassy has sent a note of protest to Kazakhstan’s foreign ministry because school books issued by the Mektep publishing house say the Autonomous Republic of Crimea is a federal subject of the Russian Federation,” Ukraine’s statement said.
“The distribution of this information contradicts the position of the international community and Kazakhstan that has repeatedly stated its support to Ukraine’s territorial integrity.”
Mektep is one of the biggest publishers of school textbooks in Kazakhstan. Its textbooks are used across the country and are based on the school curriculum.
The map, published in a geography textbook aimed at 16-year-olds earlier this year, showed Crimea as part of Russia.
Crimea quit Ukraine last year after a referendum overwhelmingly supported joining Russia. The referendum, though, has not been recognised by Kiev or its Western allies. Since then a civil war in the east of Ukraine has pushed relations between the West and Russia to a post-Cold War low.
Only a few countries, such as Syria, North Korea and Venezuela recognise Crimea as part of Russia. Kazakhstan, officially, has been careful not to recognise it as part of Russia.
When contacted by a Bulletin correspondent in Kazakhstan, the Mektep publishing house declined to comment. A couple of the book’s authors had previously spoken to RFE/RL, though.
They defended the map by saying that it wasn’t meant to be a political statement but instead to reflect the results of last year’s referendum.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 249, published on Sept. 25 2015)
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