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Oil rig catches fire in Azerbaijan’s Caspian Sea

SEPT. 26 2016 (The Conway Bulletin) — A gas leak caused an explosion at an oil platform in the Guneshli oil field, off the coast of Baku.

Although nobody was injured or killed, the fire at Platform 19, will once again raise concerns about safety at oil platforms in Azerbaijan’s Caspian Sea, less than a year after at least 31 rig workers were killed at two other rigs in a storm.

SOCAR, Azerbaijan’s state-owned oil and gas company operated the platform.

It said that the fire had burned for a full day before it was brought under control by fire-fighters.

SOCAR said that all 49 workers were evacuated during the fire.

Azerbaijan’s oil industry is still trying to recover its credibility after the rig fire in December, the deadliest since the Piper Alpha fire in the North Sea killed at least 167 people in 1988.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh journalist Matayev accuses elite of stitch up

ALMATY, SEPT. 27 2016 (The Conway Bulletin) — During his trial for various financial crimes, Seitkazy Matayev, the former head of the journalists union of Kazakhstan, accused Parliamentary Speaker Nurlan Nigmatullin and media tycoon Alexander Klebanov of organising his arrest in February.

The accusation that members of the Kazakh elite were behind his arrest underscores Matayev’s defiance during his trial and shines a rare spotlight on the powers and influences of the Kazakh elite. It has also peaked interest in the case, already one of the most high-profile corruption cases in Kazakhstan.

Matayev, who had once been press secretary to Kazakh President Nursultan Nazarbayev, and his son Asset are accused of stealing government money and tax evasion. Matayev’s trial is due to end on Oct. 3. Prosecutors have asked for six years and eight months jail term.

“Nigmatullin and Klebanov are among those who want to limit my professional activity by incriminating me of financial crimes,” Matayev said. “Nigmatullin once told me bluntly: ‘Give me KazTAG and everything will stop’, referring to months of harassment against me and my family.”

Nigmatullin and Klebanov have not responded.

KazTAG is the news agency which Matayev owns. He also owned the National Press Club in Almaty, which has now been destroyed.

Denis Krivosheyev, a political analyst, said Matayev’s case is reflection of the poor media environment in Kazakhstan.

“Seitkazy’s press club provided a platform for opposition journalists, which would irritate authorities to some extent, but he had also given prominence in his news outlets to topics that upset some elite members,” he said.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Georgian Dream fights first election as party of government

TBILISI, SEPT. 21 2016 (The Conway Bulletin) — A party of protest four years ago, the Georgian Dream coalition is now the party of power bringing with it all the challenges of a track record in government.

Georgia’s parliamentary election in October is proving to be a very different experience for Georgian Dream, its billionaire backer Bidzina Ivanishvili and his supporters who ousted the government of former President Mikheil Saakashvili in 2012. Back then they just had to pull in the sizable anti-Saakashvili vote.

Now they have to defend their own record.

Cotne, 37, was drinking in a bar in the old town of Tbilisi. He summed up the prevailing mood of ordinary Georgians. It’s been a glum couple of years, with the value of the lari sliding and economic conditions worsening.

“Although I did not like the Georgian Dream party at the beginning, I voted for the them as we needed a change,” he said of how he voted in 2012. “Right now there is nobody out there that I respect and would vote for.”

The election on Oct. 8 is mainly between the Georgian Dream and the remnants of Mr Saakashvili’s United National Movement party (UNM). They are bitter enemies, an attitude reflected in a raucous campaign with its emphasis on personalities rather than policies. At its core, the Georgian Dream is more pro-Russia than the UNM.

And the difficulties of defending a governmental record in a campaign dominated by personalities is playing against the Georgian Dream, the Tbilisi-based think tank, the Georgian Institute of Politics said earlier this month.

“A weak socio-economic programme without results, a devalued currency following the Russian rouble crash, pessimism about employment and the perception of rising crime after the amnesty for prisoners in 2013,”it said in a note.

“This drowns out the improvements in health care, justice and media freedom which causes the majority of the population to conclude the country is heading in the wrong direction and turning its back on the government.”

The Georgian Dream, at least officially, has also changed its front- man. Mr Ivanishvili served as PM for a year after winning the 2012 election. Now, though, he prefers to play the role of kingmaker.

Instead, PM Giorgi Kvirikashvili, heads the party list. He has only been PM since the start of the year and has a far lower profile than Mr Ivanishvili, who the electorate believe is still driving the Georgian Dream agenda.

Still, Georgian Dream officials exude confidence.

Levan Koberidze, a Georgian

Dream parliamentary candidate, praised the government. “We were able to bring real freedom in the country. During our rule, we maintained stability and kept the country safe, avoiding armed conflicts,” he said.

“Our policy and governance bears the best interests of Georgia and everything we have done during past four years gives us an advantage over our competitors.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakhstan Airline to increase flights to China

SEPT. 28 2016 (The Conway Bulletin) – Kazakhstan’s flagship carrier Air Astana plans to increase air links to China and tap Kazakhstan’s potential as a transport hub. Peter Foster, the company’s CEO, said Air Astana aims to transport 1m Chinese tourists and businessmen within three years. To achieve this goal, the company aims to triple from 20 to 60 the flights it operates with China and to hire more Chinese-speaking staff.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh government appears confused over re-launching oil project

SEPT. 29 2016 (The Conway Bulletin) – Kazakhstan’s government appeared confused over when the giant Kashagan oil project in the Caspian Sea would re-start production after a three year hiatus to repairs leaky pipes. It first said that Kashagan would restart on Oct. 23, surprising analysts, before correcting themselves by announcing a year-end re-start date. Analysts have been expecting a year-end re-start.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyz President recovers

SEPT. 27 2016 (The Conway Bulletin) – Kyrgyz President Almazbek Atambayev’s health has improved after he underwent medical treatment in Moscow and he is likely to return home at the weekend, his staff said in a statement. Mr Atambayev cancelled a trip to attend a session of the UN General Assembly in New York last week after complaining of chest pains during a layover in Turkey.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Armenia to replace Mestamor

SEPT. 27 2016 (The Conway Bulletin) – Armenia will decide within the next two years what to replace the Metsamor Nuclear Power Plant with when they decommission it in 2026, media reported quoting government officials. Metsamor, which lies 30km from Yerevan is controversial. It supplies 40% of Armenia’s power but the EU and the US want it closed down because they say it is a safety risk.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Stock market: Central Asia Metals

SEPT. 30 2016 (The Conway Bulletin) – Kazakhstan-focused copper producer Central Asia Metals continued to gain this week, rallying on its positive half-year report it published in mid-September.

Its stock price in London was up 1.3% to 182.3 on Thursday compared to last week. It has averaged a growth of 1.2% over the past three weeks.

In its half-year report, published on Sept. 13, the company said it increased copper production by 27% to 6,908 tonnes, which helped its revenues to grow marginally to $30.9m despite a sharp fall in copper prices, which have fallen by 17.5% compared to last year.

Importantly too, the company managed to cut production costs by 40%.

“[H1 2016 was] another record period of copper production, resulting in a continued strong financial performance for the Group. The devaluation of the local currency has been a key factor in our reduced costs of production,” Nick Clarke, Central Asia Metals’ executive chairman said in a note.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Referendum season

SEPT. 30 2016 (The Conway Bulletin) – >> Azerbaijan held a referendum this week to tweak its constitution. Didn’t Tajikistan have one in May and hasn’t Kyrgyzstan said it will hold one in December. What’s with all these referendums?

>> The autocrat’s textbook says that every so often you need to call up a referendum to make changes, big or minor, to the constitution, and also to show off just how popular you are. They all have their peculiarities and differences, but leaders from Central Asia and the South Caucasus have all played the referendum card.

In May, 92% of Tajikistan’s voting population turned up to extend presidential powers.

This week, a referendum in Azerbaijan proposed 29 small-scale amendments to the Constitution, which were overwhelmingly adopted, of course.

In the coming months, Kyrgyzstan is likely to have a referendum to grant more powers to the PM.

In previous years, countries across the region have held several referendums. Essentially the aim has been to change the Constitution to allow the incumbent to remain in power by scraping limits on terms, age caps, the length of each term.

>> OK, but are these changes meaningful? Do they have a real impact on politics?

>>These kinds of referendums can be meaningful. From a legal point of view, they change the law. They scrap age requirements to become president — as was the case in Tajikistan and Azerbaijan — and transfer powers from the president to the PM — like Kyrgyzstan’s referendum proposes.

In practice, however, their main aim is for the presidents to retain power or to transfer it to their offspring. There have been notable, and honourable exceptions, of course but not many.

Tajikistan’s referendum this year scrapped limits on presidential terms and lowered the age that a person can run for president to 30 from 35, potentially allowing President Rakhmon’s son, Rustam Emomali, to run for office in 2020.

Azerbaijan had already scrapped limits on presidential term in a referendum in 2009. This time round it lowered the age requirement to 18 from 35 and gave the president the right to dissolve Parliament. President Aliyev’s son Heydar is 19 now. This may be a coincidence, of course.

>> And what about Kyrgyzstan?

>> Kyrgyzstan is a little different. President Almazbek Atambayev will have to leave office next year after his term expires. Some have speculated that, in an effort to avoid losing power he is trying to strengthen the office of PM where he would like to return once he steps down next year.

Certainly his reasons for supporting changes to the constitution are not entirely clear.

The key difference, once again, with other countries in Central Asia, is that Kyrgyzstan’s democracy has advanced further.

>> So, essentially, most of the more seriously autocratic leaders in the region, that’s Azerbaijan and Central Asia with the exception of Kyrgyzstan, have all used referendums to improve their chances of holding on to power? By contrast Georgia, Armenia and Kyrgyzstan have held referendums in the last few years to boost the power of Parliament over the presidency? Is that right?

>>More of less, although it is important to understand that the drivers of referendums in Georgia, Armenia and Kyrgyzstan can also lie in self-interest with incumbent presidents hoping to hold on to power by becoming PM.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh oil company revenue drops

SEPT. 28 2016 (The Conway Bulletin) – Kazakhstan-focused oil company Roxi Petroleum posted revenues of $896,000 in the first half of 2016, 7.6% lower than in the same period last year. After tax, the company posted a loss of $2.5m, compared to a profit of $13.2m last year when Roxi sold the Galaz oil field. In a statement, chairman Clive Carver stressed the importance of the company’s success in reducing operating costs.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)