Tag Archives: Uzbekistan

Kerry stops over in Uzbekistan and Turkmenistan on CAsia tour

NOV. 2/3 2015 (The Conway Bulletin) – On stopovers in Turkmenistan and Uzbekistan during his whirlwind tour of Central Asia, US Secretary of State John Kerry said that he had “robustly” raised human rights issues with the countries’ leaders privately despite shying away from criticising his hosts in public.

Human rights groups had urged Mr Kerry to make a major statement on the state of human rights in both Turkmenistan and Uzbekistan, countries they regard as among the most oppressive in the world.

Instead, Mr Kerry, in public at least, spoke about joint security concerns and about the need to keep democracy at the forefront of the region’s governance.

“In Central Asia and elsewhere people have a deep hunger for governments that are accountable and effective,” he was quoted as saying.

“We should have no doubt that progress in democratic governance does lead to gains in every other field.”

Perhaps Mr Kerry’s most important objective on his trip of the region was to reassure the leaders’ of the various countries that the United States was still interested in Central Asia despite quitting an air base outside Bishkek and appearing to cede influence to Russia and China.

Mr Kerry met Uzbek President Islam Karimov in Samarkand and later Turkmen president Kurbanguly Berdymukhamedov in Ashgabat. Mr Kerry was the first US Secretary of State to visit Ashgabat since James Baker in 1992, shortly after the collapse of the Soviet Union.

Media quoted Kerry at the end of his tour of Central Asia, summing up his most important aims.

“What we want to see is not a struggle between China and Russia and the United States in a zero-sum game,” he said. “What we want to see is a Central Asia that claims its place as an engine of growth at the heart of a modern and dynamic Asia.”

 ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 255, published on Nov. 6 2015)

Currencies: Kazakhstan’s tenge, Kyrgyzstan’s som

NOV. 5 2015 (The Conway Bulletin) — The tenge finally broke through the 300/$1 level this week. People in Kazakhstan watched their currency lose ground against the US dollar on Thursday and Friday, while the Central Bank, under a new leadership, refrained from any intervention. The official exchange rate reached the record-breaking level of 310/$1 late on Friday, an 11% fall in one week.

The Kyrgyz som lost 1% of its value in one week, hitting 70/$1 on Friday.

Other currencies in the region remained stable throughout the week.

In a rare statement, the Uzbek Central Bank said it would let the sum devalue faster in 2015, compared to 2014. The official exchange rate, currently at 2,692/$1, showed a 10% fall in the first 10 months of the year. But this is about half the unofficial rate. On the black market, $1 can be purchased for as much as 5,900sum, according to the dollaruz.com website.

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(News report from Issue No. 255, published on Nov. 6 2015)

 

US blocks Korea- Uzbekistan fight jet deal

OCT. 26 2015 (The Conway Bulletin) – The US government has blocked Korea Aerospace Industries (KAI) , a South Korean firm, from selling a dozen T-50 Golden Eagle training fighter jets to Uzbekistan for $400m, the Korea Times newspaper reported.

Washington was reportedly concerned that technology used in T50s, which was co-developed by KAI and the US’ Lockheed Martin a decade ago, could be handed over to Russia.

“KAI has been in negotiations with the Uzbek government to export the supersonic trainers, but the US government is opposing the deal, citing possible technology leakage and diplomatic policy,” the Korea Times source said.

Uzbekistan is a member of the Shanghai Cooperation Organisation but not the Collective Security Treaty Organisation, a Russia-dominated military bloc of former Soviet countries.

Russian military analyst Pavel Felgenhauer told the US-funded Radio Free Europe/Radio Liberty that the US’ worries were understandable.

“The decision has nothing to do with Uzbekistan. But Uzbekistan is a country in the Russian sphere of influence,” he was quoted as saying.

If confirmed, the ban on the sale of the T-50s to Tashkent could overshadow a planned visit by US Secretary of State John Kerry to Samarkand on Nov. 1.

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(News report from Issue No. 254, published on Oct. 30 2015)

 

Kazakhstan and Uzbekistan move up ‘Doing Business’ survey

ALMATY, OCT. 28 2015 (The Conway Bulletin) — Central Asian countries fared strikingly well in the latest Doing Business report published by the World Bank, possibly reflecting a drive to attract investment to fight off worsening economic conditions across the region.

The World Bank report singled out Kazakhstan and Uzbekistan as among the ten most improved countries in the world. Georgia fell from 15th to 24th place but its overall score was deemed an improvement over last year’s. All other countries in Central Asia and the South Caucasus improved their ranking.

According to the World Bank’s assessments. Kazakhstan, 41st in the rankings, made registering a property transfer faster and easier, and Uzbekistan made it easier to start a new business and access credit. It was ranked at 87th, up 54 positions from last year.

In an interview with the Bulletin, Valentina Saltane, Private Sector Development Specialist at the World Bank said Kazakhstan had reformed seven key areas.

“The only area that needs real improvement is cross-border trade,” she said. “Uzbekistan adopted three major reforms, one of which , starting a business, dates back to 2013, but became accessible to private businesses only at the end of 2014.”

Other analysts also said that Kazakhstan had been working hard to speed up various technical reforms.

Alex Nice, Eastern Europe editor at the EIU, said: “Kazakhstan has announced a range of technical reforms, to try to improve the investment climate, in response to the economic slowdown. So it’s not surprising it has moved up the rankings.”

But Mr Nice also sounded a note of caution. He said that developing countries, Kazakhstan included, hire consultants just to advise them on how to move up the World Bank’s ‘Doing Business’ survey.

“Kazakhstan invests a lot in promoting its image abroad, and may well have hired consultants to advise it on how to achieve a move up the rankings,” Mr Nice continued. “That doesn’t mean that the challenges to doing business in Kazakhstan have fundamentally changed.”

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 254, published on Oct. 30 2015)

Uzbekistan raises coal imports

OCT. 27 2015 (The Conway Bulletin) – The Uzbek government has ordered more coal imports to match growing demand, media said. According to the website fergananews.com Uzbekistan will import around 330,000 tonnes of coal this winter. Regionally, Uzbekistan is a major gas producer, but it prefers to export most of the gas to earn foreign currency.

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(News report from Issue No. 254, published on Oct. 30 2015)

 

Uzbekistan integrates cotton

OCT. 29 2015 (The Conway Bulletin) – Uzbekistan established a new state company for processing and export- ing cotton, one of its most important commodities. The main mission of Uzpakhtasanoatexport is to integrate the cotton sector.

ENDS

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(News report from Issue No. 254, published on Oct. 30 2015)

 

Problems at Kazakhstan’s Kcell weigh down TeliaSonera profit

OCT. 20 2015 (The Conway Bulletin) — Swedish telecoms company Telia- Sonera said 2015 profit will be lower than expected due to price competition in Kazakhstan and that it is also struggling to sell its assets in Uzbekistan.

The profit warning will play badly for TeliaSonera which said last month that it wanted to sell its subsidiaries in Eurasia, of which Kcell and Ucell are the biggest.

In Jan.-Sept. 2015, Kcell’s profits fell 13% compared to the same period last year, a drop that Johan Dennelind, TeliaSonera’s CEO, blamed on competition and the government’s decision to let the tenge float free against the US dollar in August.

But Kazakhstan is not TeliaSon- era’s only problem in Central Asia. Marred by corruption allegations, TeliaSonera’s operations in

Uzbekistan have become a dead- weight, dragging the sale of the company’s assets.

“Selling Uzbekistan isn’t an easy task,” Mr Dennelind was quoted as saying in an interview with The Wall Street Journal.

US and Dutch prosecutors are investigating whether TeliaSonera paid bribes to secure mobile licences in Uzbekistan in 2007 and 2008.

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(News report from Issue No. 253, published on Oct. 23 2015)

 

Korea-Uzbekistan JV complete giant gas processing plant

OCT. 16 2015 (The Conway Bulletin) — Uz-Kor Gas, a joint venture between South Korean and Uzbek companies, has finished building a $3.9b natural gas processing plant in Uzbekistan, a project that will improve commercial and diplomatic ties between the two countries.

Located in the Karakalpakstan region of north-western Uzbekistan, the Ustyurt Gas Chemical Complex will become the biggest petrochemical complex in Europe and Asia. Ustyurt includes a new gas field and a petrochemical plant. Its production will be mostly earmarked for the export market.

Companies from South Korea and Uzbekistan have been working on the project since 2006 through a joint- venture that includes Lotte Chemical, part of the Lotte Group, state-owned Korea Gas and Uzbekistan’s energy company Uzbekneftegaz.

Huh Soo-young, CEO of Lotte Chemical, said production would begin in 2016.

“From extracting liquefied natural gas in the upstream, to cracking and processing LNG into petrochemical products in the downstream, we have successfully built up a vertical integration system,” Mr Huh told the Korea Herald.

The plant will receive around 3.6mn tonnes of liquefied natural gas each year from a field in Surgil, around 100km away from the complex.

Lotte Chemical has predicted it will earn around 1tn won ($890mn) each year from the new project. Mr Huh said the complex would only be profitable as long as energy prices stay at current levels.

“As long as crude oil prices remain above $40, our petrochemical products based on low-cost ethane will remain competitive in the global market,” he said.

Uzbekistan and South Korea have been improving their commercial ties. In May, Uzbek president Islam Karimov used his visit foreign trip after winning re-election to travel to South Korea to close deals worth $7.7b.

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(News report from Issue No. 253, published on Oct. 23 2015)

Germany quits military base in Uzbekistan

OCT. 16 2015 (The Conway Bulletin) – Germany will close its base in Termez, south Uzbekistan, later this year, marking the final withdrawal of Western military forces from Central Asia, media reported quoting official sources.

With operations in neighbouring Afghanistan winding down, it had only ever been a matter of time before the German base at Termez was closed, although the announcement did come just nine months after Germany said it wanted to extend the lifespan of the base.

The US-funded Radio Free Europe/Radio Liberty quoted German military spokesman Dominik Wullers: “Termez right now is just a backup. We are not effectively using it right now, that’s the reason why we are closing it. Some [personnel] will be transferred to Mazar-e Sharif in Afghanistan where we have our base, while others will relocate to Germany.”

The US closed its airbase at Manas outside Bishkek last year and the French military has wound down operations in Dushanbe.

Some Uzbek analysts, though, said the withdrawal of Germany may be linked with Uzbekistan’s demand for a higher fee to rent the base. The Uzbek government had said the rental fee would double to 70m euro in 2016. In 2005, Germany had been paying Uzbekistan only 12.5 euro.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 253, published on Oct. 23 2015)

 

Uzbekistan-China inaugurate rail link

OCT. 12 2015 (The Conway Bulletin) – Uzbekistan and China inaugurated a cargo train service between Binzhou, east China, and Tashkent, an initiative aimed at boosting trade between the two countries. The 5,630km railway also passes through Kazakhstan.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 253, published on Oct. 23 2015)