Tag Archives: Uzbekistan

Lukoil to invest $1b in its Uzbekistan projects

JUNE 27 2016 (The Conway Bulletin) – Russian oil and gas company Lukoil said it will invest around $1b in its Uzbekistan projects and is looking to find South Korean banks that want to back its plans. Lukoil wants to build a gas processing plant in the country and treble its output at the Gissar gas field to 4.8b cubic metres/year by 2017. Lukoil is looking to strengthen its position in Uzbekistan, one of its core markets, ahead of a possible Eurobond issue.

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

MTS wants to sell Uzbek stakes

JUNE 27 2016 (The Conway Bulletin) – Russian telecoms operator MTS wants to sell its Uzbek assets, two anonymous sources from the company and the ministry of information told Interfax. The move follows other competitors, like Telia Company and VimpelCom, who are looking to divest from the country, after a corruption scandal hit the telecoms sector. MTS owns 50.01% of UMS, the Uzbek government owns the rest.

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

China agrees to loan Uzbekistan

JUNE 30 2016 (The Conway Bulletin) — China has agreed to loan Uzbekistan $2.6b to implement various joint projects, Uzbek President Islam Karimov said. The deal highlights Chinese strategy in Central Asia where it is prepared to hand out cheap loans in exchange for infrastructure projects developed by Chinese companies. The loans also give it political influence.

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

Pakistan and India signed pledges to join SCO in Uzbekistan

JUNE 26 2016 (The Conway Bulletin) — Pakistan and India signed pledges to join the Russia and China-led Shanghai Cooperation Organisation (SCO) in 2017 at the group’s annual summit meeting, held this year in Tashkent. This would be the first time since its inception in 15 years ago that the SCO has expanded beyond its core focusof Central Asia. China, in particular, has used the SCO to expand its influence across Central Asia.

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

Azerbaijani and Uzbek weightlifters face ban

JUNE 27 2016 (The Conway Bulletin) — The Azerbaijani and Uzbek weightlifting teams are both facing a ban from competing in the Olympic Games in Rio de Janeiro this summer after their athletes failed a series of drugs test, media reported. Weightlifters from Russia and Kazakhstan have already received a ban.

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

Editorial: The SCO

JULY 1 2016 (The Conway Bulletin) — The Shanghai Cooperation Organisation (SCO) will expand next year to include Pakistan and India. Since its inception in Shanghai in 2001, the SCO has been led by China and Russia. It was formed to extend their influence over their shared near-abroad — Central Asia. SCO members include all the Central Asian states other than Turkmenistan.

Western analysts have previously referred to it as Russia and China’s version of NATO, mainly because of the very visible war games that it stages each year. But this is only one component of the SCO. More important, but less visible are the various social and economic projects conducted through the SCO apparatus. These have mainly involved China. Indeed it has given China a major footprint in the region and helped to extend its influence.

By opening up the SCO to Pakistan and India, the SCO is potentially changing its remit from a regional, Central Asia focused group to a far wider organisation that takes in the two most populous countries in the world. It may become less useful as an organisation to develop Central Asia and more useful as group for larger countries to discuss their problems.

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(Editorial 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)

Chinese payments system expands in Uzbekistan

JUNE 21 2016 (The Conway Bulletin) – UnionPay International, the global branch of Chinese bank organisation UnionPay, said it will expand its operations in Uzbekistan, through an agreement with UzCard, an interbank payment system. The company, which operates in all Central Asian countries except Turkmenistan, is looking to expand its coverage at ATMs and card payments across the region.

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

Business comment: BREXIT, Oil & Crisis

JUNE 24 2016 (The Conway Bulletin) – As the results of the referendum on Britain’s EU membership came in early on Friday, the decision to leave the EU has shaken the global market.

The Leave vote has hit the London stock market, where most of the companies focusing on Central Asia and the South Caucasus are listed. Economists now expect more volatility in the short term for the London Stock Exchange.

The so-called Brexit also negatively affected oil prices, sending both Brent and WTI down by 6% in just a few hours. Analysts have said that the period of uncertainty regarding oil prices will now last longer.

Currency markets were also hit, as the British pound lost value against the US dollar, effectively strengthening the greenback.

This had an immediate domino effect on currencies across Central Asia and the South Caucasus, where local currencies weakened against the US dollar.

The increasing uncertainty and volatility is now poised to harm, at least in the short term, local markets in the region, prompting elites in from Tbilisi to Astana to brace for more tough times. It will also hit global markets in general, forcing investors to flee to safety and this means missing out Central Asia and the South Caucasus.

Now both the Fed in the US and the Bank of England will have to revise their economic policies and this is likely to insulate further their economies and pull investment back from Emerging Markets.

In these uncertain times, countries in Central Asia and the South Caucasus cannot but hope that Western investors will go against the tide and continue investing in the region.

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

Uzbekistan to launch tunnel

JUNE 20 2016 (The Conway Bulletin) – The Uzbek government said it will launch the Angren-Pap railway service from July, opening the longest tunnel in Central Asia. The project, completed in the past few months, cost $1.6b and was partly funded by Chinese and World Bank loans. Uzbek President Islam Karimov and his Chinese counterpart Xi Jinping inaugurated the new tunnel during a ceremony in Tashkent.

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