JUNE 27 2017 (The Bulletin) — Hungary opened a new embassy in Tashkent, highlighting, perhaps, Uzbekistan’s new openness under President Shavkat Mirziyoyev. Hungarian foreign minister Peter Szijjarto, who is on a short tour of Central Asia, officially opened the new embassy, highlighting its importance for boosting trade links.
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(News report from Issue No. 335, published on July 3 2017)
JUNE 29 2017 (The Bulletin) — A court in Ukraine refused to approve the extradition of Akbar Abdullaev, the nephew of former Uzbek President Islam Karimov, to face various corruption and money laundering charges because it did not think he would receive a fair trial. Instead, Mr Abdullaev was given refugee status. He was arrested in Kiev in mid-January.
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(News report from Issue No. 335, published on July 3 2017)
JUNE 28 2017 (The Bulletin) — A delegation of senior officials from Jehovah Witness chapters in Europe and the United States travelled to Tashkent for a meeting with the Uzbek government. Very little detail on what was discussed was released by the Uzbek government but the Jehovah Witness officials may have been complaining about an ongoing crackdown against its members.
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(News report from Issue No. 335, published on July 3 2017)
JUNE 30 2017 (The Bulletin) — Uzbek President Shavkat Mirziyoyev has ordered officials in Tashkent to build a new airport from scratch, apparently dropping plans to build a new terminal for international flights at the current airport. The decree, did not say when the new airport would be completed or how much it would cost.
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(News report from Issue No. 335, published on July 3 2017)
JUNE 21 2017 (The Bulletin) — Perhaps embracing the country’s new era of openness, Uzbekistan’s state-owned oil and gas company Uzbekneftegas plans to throw off its Soviet-style branding. The company, which runs the Uzbek energy sector, has said that it wants a new logo and a new slogan that can be translated into Uzbek, Russian and English.
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(News report from Issue No. 334, published on June 26 2017)
JUNE 22 2017 (The Bulletin) — Uzbek human rights activist Nuraddin Jumaniyazov has died in prison of tuberculosis, the New York based Human Rights Watch reported by quoting his wife. Jumaniyazov had been arrested in 2014 for human trafficking, charges that his supporters said were politically motivated. Access to Jumaniyazov was limited and his wife said that he died at the end of 2016.
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(News report from Issue No. 334, published on June 26 2017)
TASHKENT, JUNE 24 2017 (The Bulletin) — Inflation in Uzbekistan is accelerating fast, the country’s Central Bank said in a rare statement giving economic guidance.
Uzbekistan is Central Asia’s most populous country and the admission will alarm other neighbouring governments who have been hinting at inflationary pressures built into their economies.
As well as warning of inflationary pressures, Uzbekistan’s Central Bank also said that it was pushing up its key interest rate to 14% from 9%, although it was unclear how much impact this rise would have on an economy underpinned by government support and the Black Market.
“This decision is due to an acceleration of inflation over the past period and the need to limit the increased inflationary risks,” the Uzbek Central Bank said in a statement.
“Along with the seasonal fluctuations and supply factors, inflation has been influenced by monetary factors such as the acceleration in lending of the national currency into the economy and its devaluation compared to previous years.”
The unusually frank guidance from the Central Bank may also be linked to both a change in Central Bank chief and a shift in the Uzbek government’s mindset.
Fayzulla Mullajanov, Central Bank chief since independence from the Soviet Union in 1991 and a relic from a Soviet-tinged bygone era, died in May. Parliament has approved Mamarizo Nurmuratov as his replacement.
Mr Nurmuratov is another long- serving Central Bank insider and had been Mr Mullajanov’s adviser but he may have been told to open up the reclusive institution by President Shavkat Mirziyoyev. Mr Mirziyoyev has appeared determined to open up Uzbekistan since taking over from Islam Karimov in September last year.
The Uzbek Central Bank’s statement also referenced the depreciation of its currency. It has steadily managed a drop in value of the Uzbek soum of around 0.7% per week over the past year. In the last 12 months it has dropped by around a third to trade, officially, at 3,930/$1. On the Black Market, the soum is trading at 8,300/$1, according to uzdollar.com.
Uzbekistan’s economic woes are mirrored across the region. A drop in oil prices in 2014, reduced the value of its gas exports and triggered a recession in Russia. Uzbekistan, like its Central Asian neighbours, relies on Russia as an economic driver, creating jobs and markets. Remittances from Russia have picked up but are still at a third of the level of 2014.
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(News report from Issue No. 334, published on June 26 2017)
JUNE 19 2017 (The Bulletin) — Falling oil prices have dented the Kazakh tenge, pushing it down to 320/$1, its lowest level since mid- February. This is a fall of 1.5% for the week, matching the fall of Brent oil. Brent oil was down at $47.37/barrel, down 1.6% for the week.
Overall, though, the Kazakh tenge is still trading up around 4% from where it started the year, although it has fallen back from highs hit in May. In May, the tenge traded at 310.6/$1 and had looked at one point as if it was going to push through the barrier.
There was little other currency moves this week, with the Azerbaijani manat staying unaffected by the fall in oil prices, and the Uzbek soum continuing its steady weekly 0.7% tick down.
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(News report from Issue No. 333, published on June 19 2017)
JUNE 11 2017 (The Bulletin) — Uzbekistan has started construction of a $90m lead producing plant near Tashkent. The plant will have a production capacity of 30,000 tonnes of lead per year. Importantly it will provide jobs, something that Pres. Shavkat Mirziyoyev has said is a priority. The lead plant, though, was actually commissioned in May 2016, under the presidency of Islam Karimov.
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(News report from Issue No. 333, published on June 19 2017)
TASHKENT, JUNE 14 2017 (The Bulletin) — Dashing hopes of any major infrastructure development for domestic gas supplies, Uzbekneftegas chairman Alisher Sultanov said that Uzbekistan’s regions should get used to only having sporadic access to gas.
Speaking at a press conference in Tashkent, Mr Sultanov said that “there was no hope for this” when asked by a journalist if he expected an improvement in domestic gas supplies. Instead he blamed ordinary Uzbeks of disrupting the gas system by stealing from it.
His comments are important as they fly in the face of an ambitious development and investment programme promoted by President Shavkat Mirziyoyev, who took over as leader in September last year.
Irregular gas supplies outside Tashkent have become a persistent complaint since the early 2000s. Local residents rely on firewood and coal to cook and keep warm or on canisters of liquefied natural gas.
Mr Sultanov was blunt and said people should save energy rather than rely on the government.
“The gas supply systems in the regions have been abused by the people for 25 years,” he said. “There will be no gas.”
Previously, Uzbeks have accused the government of putting profits ahead of domestic supplies and also of being prepared to risk people’s lives by not providing proper gas supplies during Uzbekistan’s often freezing winters.
And ordinary Uzbeks met Mr Sultanov’s comments with derision.
“Can Uzbekneftegaz still not decide on its main task as a national company? What is more important for the company? Increasing natural gas supplies to the population or increasing exports to China?” said one man who asked to remain anonymous.
The reaction on Facebook, which ordinary Uzbeks use to discuss their affairs, was also incredulous.
“Let Alisher Sultanov spend a week in the regions where there are no gas and electricity in the winter and then he will think over whether giving gas is worth it or not,” another man said.
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(News report from Issue No. 333, published on June 19 2017)
