Author Archives: admin

Uzbekistan to modernise pipelines

MARCH 18 2016 (The Conway Bulletin) – Uzbekistan’s state-owned gas firm Uztransgaz will invest $506m modernising its pipeline system. Uztransgaz will spend around $266m building a new section of the 10b cubic metres pipeline from the Ferghana valley to Tashkent which was damaged last year after an explosion. Uztransgaz also said it will modernise one of its compressor stations at the Central Asia-Centre export pipeline and build a new one for a total cost of $215m.

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(News report from Issue No. 273, published on March 25 2016)

India snubs Turkmen TAPI pricing

MARCH 21 2016 (The Conway Bulletin) – India’s oil ministry said in a statement that it will not sign a contract with Turkmenistan that fixes gas prices for supplies coming through the prospective TAPI pipeline. The Indian government said it will not repeat the unprofitable relationship it had with Qatar, which exported liquefied natural gas at a fixed prices. This became costly when oil prices collapsed in 2014 driving down spot prices for gas.

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(News report from Issue No. 273, published on March 25 2016)

Georgia breakaway region to open ’embassy’ in Italy

MARCH 20 2016 (The Conway Bulletin) – The lobby group Italy-South Ossetia Friendship Society said it will open what it described an embassy for the Georgian breakaway region of South Ossetia in Rome in early April. After the Russian news agency Sputnik broke the news, the Georgian ministry of interior launched an investigation. Only a handful of countries, including Russia, have recognised South Ossetia as independent, after a brief war was fought in 2008. Italy has not recognised South Ossetia as an independent state.

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(News report from Issue No. 273, published on March 25 2016)

Canadian gold miner Alhambra takes Kazakhstan to court

ALMATY, MARCH 21 2016 (The Conway Bulletin) – Canadian gold miner Alhambra Resources said it was seeking damages against Kazakhstan’s government, via the World Bank’s International Centre for Settlement of Investment Disputes, for the bankruptcy of its Kazakh subsidiary.

This is the second major arbitration case against Kazakhstan in the past few months. In January, the Kazakh government had to pay $25m compensation to Estonian builder Windoor after a court in Stockholm ruled it had broken a contract in 2012 to build a conference centre for its foreign ministry.

A sharp economic downturn has hit Kazakhstan hard and forced the government to cut budgets and projects, undermining, to some extent, its credibility as a client.

The company accused the Kazakh government of acting in an “unfair and inequitable” way against both Alhambra and its subsidiary Saga Creek.

Alhambra said the Kazakh government had broken its terms of contract with Saga Creek, imposed excessive fines on it and withheld mining licences.

“This conduct by the Government has frustrated Alhambra’s investment activities in Kazakhstan, drained the Corporation’s resources and culminated in the bankruptcy of Saga Creek,” it said in a statement. Kazakhstan has not commented.

In 2011, a high court in the Akmola region of northwest Kazakhstan cancelled a $1.6m tax bill that local government had sent to Alhambra.

The new arbitration, the company said, had been initiated after a Kazakh court on March 3 upheld the a bankruptcy order imposed on Alhambra’s subsidiary in December.

Saga Creek and Alhambra own a 25-year licence to mine the Uzboy gold field in north Kazakhstan near the border with Russia.

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(News report from Issue No. 273, published on March 25 2016)

Tajik Air buys numbers of planes from Airbus

MARCH 19 2016 (The Conway Bulletin) — Looking to boost the status of state- owned Tajik Air, Tajikistan’s deputy PM Azim Ibrohim said that the government had bought a number of planes from Europe’s Airbus. State-owned Tajik Air and privately-owned Somon Air are the only two airlines in the country and both use Boeing-made aircrafts. Countries in Central Asia and the South Caucasus have been using airlines to promote their national brands.

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(News report from Issue No. 273, published on March 25 2016)

Kazakh company buys into Tethys

MARCH 21 2016 (The Conway Bulletin) – Kazakh energy company Olisol acquired control over additional shares of Guernsey-based Tethys Petroleum and is awaiting permission from the Toronto Stock Exchange to reach a 15.8% stake in the company. Under a facility agreement Olisol will also buy additional shares, bringing its ownership in Tethys to around 42%. Oilsol agreed a finance deal with Tethys earlier this year.

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(News report from Issue No. 273, published on March 25 2016)

Nur Otan wins Kazakh election with 82%

MARCH 20/21 2016 (The Conway Bulletin) – ALMATY — Kazakhstan’s ruling Nur Otan party won a parliamentary election with 82% of the vote, although Western monitors said that the vote was not fair.

The result is a near mirror image of a parliamentary election in 2012. Nur Otan scored 81% of the vote four years ago and the quasi-opposition parties Ak Zhol and the People’s Communist Party, which are both pro-President Nazarbayev, polled 7% in 2012 and 2016.

European vote monitors said that the election was broadly unfair although, importantly there had been some progress on previous elections.

Marietta Tidei, the head of the OSCE’s monitoring mission for the Kazakh election, said that Kazakhstan still had some way to go to meet what Europe would consider to be a free and democratic election.

“The ruling party had a clear advantage over others in these elections and, while the parties were generally able to campaign freely, genuine political choice remains insufficient,” she said.

Europe’s main vote monitoring watchdog, the OSCE’s ODHIR, has never judged an election in Kazakhstan to be free and fair.

For the Kazakh authorities, though, the election was important as it imposes more stability on the country just as the economy appears to worsen.

Still, a Conway Bulletin correspondent in Almaty said it was difficult finding people who voted for Nur Otan, President Nursultan Nazarbayev’s party. Turn out in Almaty was only 34%, the lowest in the country.

Nurbek didn’t vote. His comments on why he didn’t think it was worth voting in the election were broadly representative.

“I don’t think there is any point in voting because my vote is not really going to change anything,” he said.

“Elections are just a play to pretend we have some sort of democracy which we obviously don’t.”

Still, somedid vote and they chose Nur Otan.

“We voted for Nur Otan. There were many parties but with Nur Otan our future is certain,” said a couple who declined to be named as they strolled through Almaty.

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(News report from Issue No. 273, published on March 25 2016)

Turkish developer opens new hotel in Georgian capital

MARCH 22 2016 (The Conway Bulletin) — Turkish real estate developer Mehmet Surkit opened a new luxury boutique hotel in central Tbilisi. In a statement, Mr Surkit said the hotel had cost 12m lari ($5.3m). Hotel groups have been expanding rapidly in Tbilisi. The city is also promoting itself as a tourist and business destination.

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(News report from Issue No. 273, published on March 25 2016)

Silk Way West in Azerbaijan signs agreement with Malaysian Cargo

MARCH 18 2016 (The Conway Bulletin) — Silk Way West Airlines, a private freight air carrier based in Azerbaijan, signed an agreement with Malaysia Airlines Cargo that will allow them to mutually use their aircraft fleet. Earlier in January, Silk Way West Airlines signed an agreement with the Komatsu airport in Japan to open a new route. The Silk Way Group, a large industrial conglomerate, owns Silk Way West Airlines.

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(News report from Issue No. 273, published on March 25 2016)

Azerbaijan’s SOFAZ to spend big

MARCH 18 2016 (The Conway Bulletin) – Azerbaijan’s President Ilham Aliyev signed a decree to set SOFAZ’s spending at 10.7b manats ($6.5m) and revenues at 4.6b manats ($2.8b) for 2016, meaning that the fund will post a loss for the second consecutive year. Assets held by SOFAZ, Azerbaijan’s sovereign wealth fund, dropped by 9.5% in 2015 to $33.6b because it paid around 8b manats ($5.16b) into the state budget to help the country weather the economic downturn.

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(News report from Issue No. 273, published on March 25 2016)