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Kazakh capital hosts fifth round of Syria talks

JULY 6 2017 (The Bulletin) — Kazakhstan hosted the fifth round of Syria peace talks in Astana aimed at ending the violence in the civil war that has ravaged the country in the last six years. Russia, Iran and Turkey were the key drivers around the talks which diplomats said ended with an agreement to set up so-called de-escalation zones although analysts also said that there had been no major break through. No specific details of the deals agreed were released. Importantly, both the Syrian government and the Syrian rebels attended the talks.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

 

CASA-1000 is on schedule, leaders say in Tajik capital

DUSHANBE, JULY 6 2017 (The Bulletin) — The CASA-1000 electricity generation and supply project, considered an essential Western-based link between Central Asia and South Asia, will be finished this year, as scheduled, leaders of the four nations working on its construction said at a meeting in the Tajik capital.

This is important because CASA- 1000, which will generate electricity through hydropower stations in Kyrgyzstan and Tajikistan and distribute it to Afghanistan and Pakistan, is the main transnational Central Asia project backed by the West and its financial institutions. The US government has even described it as an important part of a new north-south Silk Road.

The West has lost influence in Central Asia over the last few years to Russia’s military expansionist strategy and China’s trade-orientated ‘Belt and Road’ policy.

Looking to allay fears that timings had slipped, Pakistan’s PM Nawaz Sharif, Afghan President Ashraf Ghani, Kyrgyz PM Sooronbay Jeenbekov and host Tajik President Emommali Rakhmon lined up to talk up progress.

Pakistani news agencies quoted Mr Sharif as saying: “We must make efforts to ensure that the project is completed well in time.”

There are still major security and operational concerns over CASA-1000, though, which need to be solved.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

Thief steals from US embassy in Georgia

JULY 3 2017 (The Bulletin) — A thief working at the US embassy in Tbilisi stole $160,000 from the embassy shop between 2010 and 2014, US media reported quoting the US State Department. State Department officials said that the thief simply took cash from the shop and deleted receipts to cover his or her tracks. They haven’t been able to name the thief and have instead given recommendations on how to prevent a similar issue in the future.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

 

Georgia’s BGEO to spin off non- banking investments

TBILISI, JULY 3 2017 (The Bulletin) — BGEO, the London-listed Georgian investment company that owns most of Bank of Georgia and Georgia Healthcare Group, said it will split into two companies later this year in a move that surprised analysts but sent its share price up towards an all-time high.

The de-merger will give investors more opportunity to increase their exposure to Georgia with a new company focused on retail, healthcare, drinks and utilities.

Both Bank of Georgia and Georgia Healthcare have had strong years and have become two of the Central Asia and South Caucasus region’s favourite shares.

In a statement, BGEO said it would split into two London-listed companies — Bank of Georgia and BGEO Investments. BGEO will own a 10% stake in the bank; a 57% stake in Georgian Healthcare; M2, a real estate company; Aldagi, an insurance company; GGU, a utilities company; a 72% stake in Taliani Valley, a drinks company.

“The Board of BGEO Group believes a de-merger of the businesses will deliver additional long-term value to shareholders by creating two distinct entities, each of which will have enhanced growth opportunities

in the strongly growing Georgian economy,” the BGEO statement said. The news sent BGEO’s shares up and over the next couple of days they hit a peak of 3,721p, near a high of 3,744p in March. Shares in Georgia Healthcare were steady at 370p.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

 

Uzbekistan allows currency liberalisation

JULY 7 2017 (The Bulletin) — Uzbekistan has allowed a handful of banks to trade its soum currency at its market rate, Reuters quoted two officials as saying, part of a plan promoted since the death last year of Islam Karimov to liberalise its currency. Currently, investors have to buy soum at an official rate of around 4,000/$1 compared to an unofficial rate of around 8,500/$1. Foreign investors have said that Uzbekistan’s dual currency scheme is a major drawback for its investment climate.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

 

HRW may return to Uzbekistan

TASHKENT, JULY 5 2017 (The Bulletin) — Taking its era of openness to new heights, the Uzbek government said it may allow Human Rights Watch to re-open its office in Tashkent, six years after it was effectively expelled.

The BBC has also posted an advert for an Uzbek language journalist to be based in Tashkent, suggesting that it too was also preparing the ground for a return to Uzbekistan.

In comments reported by official media, Uzbek foreign minister Abdulaziz Kamilov said: “Our cooperation with Human Rights Watch underwent something of a pause, some time in 2010. But this does not mean that we have definitively suspended relations or that we do not want to cooperate.”

The human rights lobby was told to leave Uzbekistan in 2011. The BBC and other media had been thrown out of the country six years earlier after reporting on the deaths of hundreds of people in the town of Adijan after government soldiers opened fire.

Uzbek President Shavkat Mirziyoyev has looked to open up the country since taking over as president in September 2016, promising to give ordinary Uzbeks more freedom.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

Estonian president accuses West of failing Georgia in 2008

TBILISI, JULY 5 2017 (The Bulletin) — In almost her first act as President of the Council of the European Union, Kersti Kaljulaid, Estonia’s president, accused the West of failing to stand up to Russia during its war with Georgia in 2008.

In an interview with Euronews, Ms Kaljulaid said that the failure of the US and Europe to defend Georgia had sent a message to Russian President Vladimir Putin that he could use force to project Russia’s influence over its near abroad. She directly linked Russia’s annexation of the Crimea in 2014 and its support for rebels in east Ukraine with apparent Western indifference towards Georgia six years earlier.

“In Georgia, I believe that the Western world made an error because they didn’t see that they are teaching the wrong lesson,” she said. “In Georgia, Russia learned that if you act, the reaction is relatively mild. And so the avalanche arrived in Crimea.”

The comments will jar with Western leaders who blamed an overzealous Mikheil Saakashvili, then Georgia’s president, for triggering a war with Russia that focused on the rebel region of South Ossetia. Several hundred people died in the short war and thousands were forced to flee their homes when Russian forces pushed back the Georgian army. It was able to set up positions deep inside Georgia and destroy Georgian military equipment and bases before pulling back into Russia.

The upshot of the war was that Russia recognised both Georgia’s rebel states, South Ossetia and Abkhazia, as independent. Only a handful of other countries, and importantly none from the FSU, have followed this lead.

Like scraping off an old scab, Ms Kaljulaid’s comments are painful and important. They reveal the nervousness of ex-Soviet countries, now aligned with the West, towards Russia. These countries consider the Kremlin to be their greatest threat.

“Every country has the right to decide with whom they do business, with whom they associate themselves,” she said. “This does not suit him [Putin]. He is out to change it.”

Estonia holds the Presidency of the Council of the European Union for six months.

The war with Russia marked the beginning of the end for Mr Saakashvili. He had been something of a poster-boy in the West but in the run up to the war had been accused of overstepping his mandate.

By 2012 Mr Saakashvili’s United National Movement party had lost its majority in parliament to the Georgian Dream and by 2013 also the presidency. He is now living in exile, accused by the Georgian authorities of various financial crimes.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

Tajikistan confirms death of former police relatives

JULY 5 2017 (The Bulletin) — The authorities in Tajikistan said that police had fought and killed four relatives of former Tajik police commander Gulmurod Halimov who joined IS in Syria in 2015. They said that the four relatives, two of Halimov’s brothers and two cousins, were involved in a gunfight with police on July 4 in the Vosa district, 25km from Dushanbe. Reports do not clarify what triggered the gunfire.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

 

GE signs software deal with Kazakhstan’s Temir Zholy

JUNE 26 2017 (The Bulletin) — GE, the US engineering company, has signed a deal with Kazakh railway operator Temir Zholy to deploy its software to reduce fuel consumption and improve safety, media reported. It’s unclear how much the contract is worth. GE has agreed a handful of deals with the Kazakh government over the past few months.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 335, published on July 3 2017)

 

Booking.com responds to Azerbaijan’s complaint

JUNE 29 2017 (The Bulletin) — Booking.com, the Netherlands- based hotel booking website, has stopped making bookings for hotels in Nagorno-Karabakh, the region disputed between Azerbaijan and Armenia, after complaints from the Azerbaijani government, Baku- based media reported. It said that the Azerbaijani government had complained that Booking.com was breaking international law by making hotel bookings in the disputed region. Since a 1994 ceasefire, forces-backed by the Armenian government have controlled Nagorno-Karabakh.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 335, published on July 3 2017)