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Armenia’s power production drops

JULY 4 2016 (The Conway Bulletin) — Armenia’s Statistics Committee said that electricity production shrank by 1.9% in Jan.-May 2016 compared to the same period last year. Overall, the Metsamor nuclear power plant produced more than a third of Armenia’s 3.2b kWh output. Importantly, hydropower stations surpassed thermal power plants in their share of total electricity output for the first time.

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(News report from Issue No. 288, published on July 8 2016)

Noricum funds new gold project in Georgia

JULY 1 2016 (The Conway Bulletin) — Noricum Gold, a London-based miner, said it has raised over £1.1m ($1.4m) to fund a new project at the DavidGaredji gold and copper mine. Noricum partners with Georgia’s Caucasian Mining Group at the Bolnisi copper/gold project in the south of Georgia. Discovered during the Soviet periods, the David Garedji underground basin is located near the Bolnisi project.

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(News report from Issue No. 288, published on July 8 2016)

Kazakhstan is ready to supply gas to China, president says

JULY 4 2016 (The Conway Bulletin) – President Nursultan Nazarbayev said Kazakhstan is ready to supply gas to China, a move that would further improve the two countries’ energy ties. Mr Nazarbayev met with Wang Yilin, chairman of China’s state-owned energy company CNPC, in Astana. Mr Nazarbayev hailed CNPC’s role in boosting Kazakhstan’s energy sector with its multi-billion dollar investments over the past two decades. Kazakhstan currently hosts a gas pipeline that pumps Turkmen gas to China.

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(News report from Issue No. 288, published on July 8 2016)

Kazakh city government refuses land protest

JULY 1 2016 (The Conway Bulletin) — The city government of Shymkent, south Kazakhstan, said it rejected an application filed by civic activists to hold a rally against the land reform on July 6. The local government said that the activists had failed to apply on time. Although it has formally been scrapped from parliamentary debate, the proposed land reform is still a contentious issue in Kazakhstan.

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(News report from Issue No. 288, published on July 8 2016)

Kyrgyz government strips interior ministry of control over powerful units

BISHKEK, JULY 4 2016 (The Conway Bulletin) — Looking to subvert its growing influence ahead of a presidential election next year, the Kyrgyz government stripped the ministry of interior of some control over its most powerful units.

The reform reshuffled government units, awarding more independence to departments responsible for combating terrorism, drug trafficking and cracking down on economic crimes. The Prosecutor-General has also been stripped of its power to launch independent investigations.

Pres. Almazbek Atambayev said the reforms will strengthen the law.

“Today’s decision can be called historic. The law enforcement system reform should strengthen law and order, so that ordinary citizens, business, and investments are protected by the law,” media quoted him as saying at a government meeting.

Analysts were more circumspect. Bishkek-based political analyst Mars Sariyev said that changes looked designed to subvert an increasingly difficult-to-control security system.

“The security authorities had tried to undermine the power of some interest groups and their political ambitions,” he said.

And another, anonymous, analyst said the changes were probably linked to the departure last month of Melis Turganbayev as Kyrgyzstan’s interior minister who was considered by government ministers as manoeuvring to position himself as a potential next president.

“There is no doubt that he was a very big political figure and that he was probably forced to leave to help bring the ministry of internal affairs more under the control of the government,” he said.

Kyrgyzstan is due to hold a presidential election in 2017.

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(News report from Issue No. 288, published on July 8 2016)

BP-Exxon row slows development at Azerbaijani field

JULY 1 2016 (The Conway Bulletin) — A row between BP and Exxon Mobil risks delaying an agreement between members of a consortium developing Azerbaijan’s largest oil field, Azeri-Chirag-Guneshli (ACG), sources told Reuters news agency.

Any delay in developing the field will be a major embarrassment for BP, the lead operator of the project, and a disappointment to Azerbaijan which is looking to boost oil production.

“BP and Azerbaijan agree to the new terms but Exxon keeps rejecting them time and time again,” Reuters reported quoting an anonymous source with knowledge of the sector and the companies.

“It has been going on for almost two years, with Exxon insisting on better terms.”

In May, the Azerbaijani government said it had submitted its proposal for a new contract to all consortium members. No details of the contract, or its sticking points, have been released.

ACG was dubbed the “contract of the century” when it was first signed in September 1994.

The consortium shareholders are BP (35.8%), Exxon (8%), SOCAR (11.6%), Chevron (11.3%), Japan’s INPEX (11%), Statoil (8.6%), Turkey’s TPAO (6.8%), Japan’s ITOCHU (4.3%) and India’s ONGC (2.7%).

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(News report from Issue No. 288, published on July 8 2016)

China to invest into Kazakh Glencore

JULY 6 2016 (The Conway Bulletin) – State-owned China National Gold Group and Silk Road Fund will partner to invest $2b to buy the Vasilkovskoye mine in Kazakhstan, owned by Glencore. China’s Shandong Gold Mining and Zijin Mining Group have also expressed interest in the mine. Glencore owns 70% of Kazzinc, the company that operates Vasilkovskoye, which is located 300km north-west of Astana.

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(News report from Issue No. 288, published on July 8 2016)

Tajikistan hands out $3.9b contract to build Rogun

DUSHANBE, JULY 7 2016 (The Conway Bulletin) — Tajikistan awarded a $3.9b contract to Italian construction company Salini Impregilo to build the controversial Rogun dam in the Pamir mountains.

The Soviet-era plan has been on hold for several years because of worries over its funding and opposition from Uzbekistan that it will siphon off water needed to irrigate its cotton fields.

The timing of the $3.9b deal for Salini Impregilo was unexpected and appears to suggest that the Rogun dam project is up and running once again.

Tajikistan needs the dam to boost electricity production. It suffers countless blackouts in winter, when there is less water generating hydropower, and has also committed itself to supplying both Pakistan and Afghanistan with power from 2018.

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(News report from Issue No. 288, published on July 8 2016)

Uzbek CBank orders foreign cash limit

JULY 5 2016 (The Conway Bulletin) — Uzbekistan’s Central Bank ordered banks to impose a $300 monthly limit on card withdrawals abroad, possibly an effort to limit exchange rate speculation. The previous limit was set at $100/day. Uzbeks typically withdraw cash in US dollars and local currencies when travelling abroad to hoard and hedge against the sum currency, which has steadily weakened against the US dollar in recent months.

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(News report from Issue No. 288, published on July 8 2016)

Kazakhtelecom improves corporate governance ahead of a potential IPO

ALMATY, JULY 4 2016 (The Conway Bulletin) — Aleksander Klebanov, one of Kazakhstan’s richest men, bought a 24.47% stake in Kazakhtelecom, the state-owned telecoms company, in a move to improve corporate governance ahead of a planned IPO in London.

Mr Klebanov’s Sobrio Ltd, a London-registered shelf company, bought shares from two companies officially owned by Aigul Nuriyeva, the 8th richest Kazakh according to Forbes. She was widely perceived as holding these companies on behalf of Mr Klebanov.

Wary of past corporate governance flops, Kazakhtelecom said the transfer of shares would improve transparency ahead of an IPO.

“The deal was conducted for Kazakhtelecom ownership structure optimisation and transparency purposes in preparation for a possible IPO,” the company said in a press release.

For two years, Kazakhtelecom has mulled over an IPO in London.

Samruk-Kazyna, Kazakhstan’s sovereign wealth fund, owns 52% of Kazakhtelecom. Earlier this year, Kazakhtelecom’s subsidiaryAltel merged with Tele2, a Swedish telecoms company, in an effort to boost its mobile profile.

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(News report from Issue No. 288, published on July 8 2016)