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Head of Uzbek Central Bank dies

MAY 24 2017 (The Conway Bulletin) — The head of Uzbekistan’s Central Bank, Fayzulla Mullajanov died aged 67 from complications linked to kidney disease, media reported. Mullajanov had been head of the Central Bank for 14 years and retained his position when Shavkat Mirziyoyev took over as president after Islam Karimov died in September 2016. In reality, the Uzbek Central Bank has little independence from central government.

ENDS

(News report from Issue No. 330, published on May 28 2017)

Stock market: Georgia’s TBC, Kaz Minerals

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MAY 28 2017 (The Conway Bulletin) — Profit at Georgia’s London-listed TBC Bank rose by two-thirds to nearly 100m lari ($40m) highlighting the increasingly upbeat assessment of the Georgian banking sector.

The bumper results also pushed up TBC’s share price to an all-time high of 1,695p. This is nearly an 18% increase from the start of the year and is an increase of roughly 65% from when TBC listed in August.

The main driver of this improvement has been an overall strengthening of Georgia’s economy. The region has been hit hard by a downturn in economic conditions, linked to a collapse in oil prices and also a recession in Russia.

TBC’s main rival, the London- listed Bank of Georgia, has also been hitting similar all-time highs. As well as boosting its stock price, Bank of Georgia also gain a PR boost when it issued 500m lari debt, the first corporate issue in lari.

Elsewhere, KAZ Minerals has been performing well. It’s been yoyo-ing around and has regained much of the ground lost in March. KAZ Minerals is a major copper producer and its share price follows copper prices to a large extent.

It is now trading at 506p, up from 430p at the beginning of the month but down from highs of 589p hit in mid-February.

KAZ Minerals used to by known as Kazakmys, which was linked by transparency campaigners to Kazakh Pres. Nursultan Nazarbayev.Stock market: Georgia’s TBC, Kaz minerals

Georgia and China sign free trade deal

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TBILISI, MAY 19 2017 (The Conway Bulletin) — A new free trade deal with China will allow Georgia to position itself at the centre of global commerce, Georgian PM Giorgi Kvirikashvili said .

He was commenting on a deal signed by officials with their Chinese counterparts a few days earlier, the first Free Trade Agreement (FTA) with China by any former Soviet State.

Both the Georgian and the Chinese parliaments still have to ratify the agreement which is expected to enter into force by the end of the year.

“Georgia is gradually reclaiming its geostrategic function, which the country has enjoyed historically,” Mr Kvirikashvili was quoted as saying.

China has become an increasingly important trading partner for Georgia. According to Geostat, between 2009 and 2016 the value of exports to China tripled.

Nikoloz Khundzakishvili, head of the Georgian branch of the International Chamber of Commerce, told the Bulletin that the free trade deal with China will also be important for the wider region.

“This is a huge market with more than 1b customers. This will be a tremendous opportunity for Georgian products,” he said.

“Georgia will be like a link between China and our neighbourhood.”

Agricultural products, wine and mineral water are the main items exported from Georgia to China. The agreement will scrap custom duties for about 94% of Georgian products exported to China.

And it works both ways. Maya Grigolia, senior researcher, at the ISET Policy Institute in Tbilisi, said Georgia was also hoping for an increase in Chinese investment once the free trade deal comes into law, as China’s companies look to take advantage of Georgia’s liberal trade laws and deals with the European Union.

“Because of its unique geographical location, Georgia has been a hub for transport and international trade since ancient times,” she said.

China has already become a major investor in Georgia’s telecoms, tourism, financial and construction sectors.

ENDS

(News report from Issue No. 330, published on May 28 2017)

New rules increase telecoms cost in Kazakhstan

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MAY 23 2017 (The Conway Bulletin) — Under new rules brought in to crack down on potential terrorism, telecoms companies operating in Kazakhstan will have to store details of all calls and other communications for up to two years, media reported. Rights campaigners said that the new rules were designed to crackdown on civil liberties. Telecoms analysts said that the new rules would increase prices for consumers.

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(News report from Issue No. 330, published on May 28 2017)

WHO and Tajikistan start measles programme

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MAY 23 2017 (The Conway Bulletin) — The World Heath Organisation (WHO) and the Tajik authorities started a mass measles vaccination drive that will cover 2m children to combat a epidemic that they say has already infected 400 people. The measles outbreak has spread from the countryside to Dushanbe, forcing the authorities to launch the drive.

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(News report from Issue No. 330, published on May 28 2017)

Comment: A quick week in Kazakhstan

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ASTANA/ALMATY, MAY 28 2017 (The Conway Bulletin) — Gripes about the economy dominated my week in Astana and Almaty. Not gripes from officials but gripes from ordinary Kazakhs who are feeling the pinch.

Still, Astana and Almaty felt upbeat.

Astana was busy putting the final touches on EXPO-2017, an event it has been building towards for several years. It’s with brash civic pride that people living in Astana tell you that the world is going to visit their city this summer. We shall see.

Not that I could have a look around EXPO-2017 when I was there. They weren’t ready yet for visitors, including journalists, despite advertising that the media centre and accreditation desks were open for business.

If Astana was full of brash pride about the multi-billion-dollar government-funded EXPO-2017, Almaty’s pride lies in its more sanguine nature. I arrived off the overnight train from Astana. After a few days of interviews in Astana I was ready to see friends and the Bulletin’s correspondent in Almaty.

And May is a perfect time to visit Kazakhstan’s former capital. It’s warm, but not too hot, and the trees and flowers are blooming. The warmer air has also lifted the smog, giving visitors’ glimpses of Almaty’s regal snow-capped mountains.

Almaty oozes a breezy, louche confidence whereas Astana seems to crave attention and praise.

Astana grabs the headlines and improves with every visit I make. Almaty, though, has always had it and always will. And it knows this too.

By James Kilner, Editor, The Conway Bulletin

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(News report from Issue No. 330, published on May 28 2017)

Armenian police arrests checkpoint chief

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MAY 26 2017 (The Conway Bulletin) — Police in Armenia arrested the head of a border checkpoint for taking bribes, media reported. The arrest is a reminder that corruption is still an issue at border checkpoints in Armenia. Reports did not name the arrested man or which border post he worked at. They did say that he was taking bribes in exchange for a dropping import tax.

ENDS

(News report from Issue No. 330, published on May 28 2017)

Azerbaijan spends to prop up banking sector

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MAY 25 2017 (The Conway Bulletin) — Azerbaijan has spent the equivalent of 18% of its GDP propping up its banking sector in 2015/16, Peter Paklin, assistant vice president at Moody’s Investors Service, told a press conference. Despite the state support, Azerbaijan’s banking sector has been faltering, with its biggest bank — the International Bank of Azerbaijan — restructuring its debt and smaller banks going bankrupt.

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(News report from Issue No. 330, published on May 28 2017)

Economic activity rises in Armenia

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MAY 22 2017 (The Conway Bulletin) — Economic activity in Armenia between January and April was 5.7% higher than in the same period in 2016, media reported quoting the national statistics agency. It said that the biggest driver of this economic upturn was the construction sector which saw an increase of 13.4%. Agricultural production declined, though, by 2.9%, a reflection of the weaker Armenian dram.

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(News report from Issue No. 330, published on May 28 2017)

French car makers sign deal with Uzbekistan

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MAY 16 2017 (The Conway Bulletin) — French car producer PSA, the maker of Peugeot and Citroen cars, signed a deal with Uzbekistan’s state-owned Uzavtosanoat to set up a factory in the Free Industrial Zone of Jizzakh, media reported. The plan is to produce light commercial vehicles for the Uzbek and wider Central Asia markets. For Uzbekistan, attracting investment from PSA is a major success. It already operates a JV with the US’ GM. The car market, though, has slumped over the last few years as the economies in Central Asia and Russia, a major market, have dipped.

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(News report from Issue No. 329, published on May 20 2017)