Author Archives: Editor

Kazakhstan agrees deal with OPEC to increase oil production

JULY 19 2021 (The Bulletin) — Kazakhstan said that it had agreed a deal with OPEC to allow it to increase its oil production quota from August. Although not part of OPEC, Kazakhstan, with Russia and Azerbaijan, had agreed to go along with oil output cuts that OPEC set early in 2020 to try to push up depressed oil prices. From August, Kazakhstan will produce 1.491m barrels of oil per day, up by 16,000 barrels. This is still below its benchmark November 2018 levels.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kazakhstan bans grain exports as drought worsens

ALMATY/JULY 19 2021 (The Bulletin) — With a drought that has destroyed crops and wiped out livestock in much of Western Kazakhstan continuing, the Kazakh government said that it was limiting the export of barley and wheat which are used for animal feed (July 19). The initial ban on the export of barley and wheat is for six months although analysts have said it could last longer.

Activists have criticised the government for not doing enough to help farmers deal with the drought and have been posting pictures of dead and heavily emaciated horses in the arid west of the country.

Earlier this month, Kazakhstan declared the drought an emergency and Kazakh President Kassym Jomart Tokayev then fired Saparkhan Omarov, the agriculture minister, for failing to help farmers.

Kazakhstan is the largest grain producer in the Central Asia region.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Georgian Dream opponents say government tries to smear reporter

JULY 19 2021 (The Bulletin) — Opponents of the Georgian Dream government accused it of trying to smear Alexander Lasharava, a TV cameraman killed this month by anti-gay rights protesters, by accusing him of being a heroin user after traces of an opiate were found in his blood. Lasharava’s supporters said that he was given morphine by a hospital before he was discharged. He died at home. His death sparked several days of anti-government protests.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Tokyo police arrest Uzbek Olympic official for alledged rape

JULY 18 2021 (The Bulletin) — Police in Tokyo arrested a part-time Olympic Games staff member from Uzbekistan for rape, media reported. Police said that the Uzbek staff member has denied the rape allegations. The Olympic Games officially begin on July 23.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Pegasus spyware targets Azerbaijani and Kazakh opposition

BAKU/ALMATY/JULY 18 2021 (The Bulletin) –Officials in Kazakhstan and Azerbaijan have been using the Pegasus Israeli spyware to eavesdrop on opposition journalists and politicians, as well as senior members of the Kazakh elite including President Kassym Jomart Tokayev.

The Berlin-based Organized Crime and Corruption Reporting Project (OCCRP) said in its dossier, entitled “A World of Surveillance”, that Azerbaijan had targeted 1,000 people and Kazakhstan had targeted 2,000 people. 

The accusations were based on information from a whistleblower at Israeli company NSO Group which manufactured Pegasus for clients across the world. Most of the targets in Azerbaijan were journalists and politicians, including investigative reporter Khadija Ismayilov, who works for OCCRP.

“Secretive government surveillance doesn’t only affect the target,” she said. “My sources, my family, and my friends have also been swept up in the state’s campaign against me.”

The OCCRP said that the Pegasus spyware could read messages, eavesdrop on phone calls and act as a microphone to record conversations. 

Pegasus’ targets in Kazakhstan included journalists, as well as Pres. Tokayev, successor to Nursultan Nazarbayev, PM Askar Mamin and businessman Bulat Utemuratov. 

“The dozens of numbers suggest that the entire Nazarbayev regime, practically from top to bottom, was being spied on — most likely by its own security services,” the OCCRP said. It is not clear when the surveillance was ordered or by whom.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbekistan starts building first cricket ground

JULY 18 2021 (The Bulletin) — Uzbekistan began the construction of the first cricket ground in Tashkent, media reported. The International Cricket Council (ICC), cricket’s governing body, wants to broaden the reach of the sport and on the same day that work on a permanent cricket pitch began in Tashkent, it said that Tajikistan, alongside Mongolia and Switzerland, had been made members.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Azerbaijani banks say C.Bank imposes currency controls

BAKU/JULY 17 2021 (The Bulletin) — Commercial banks in Azerbaijan are limiting foreign currency sales to try to prevent a fall in the value of the manat currency, the Bloomberg news agency reported. 

It quoted several residents of Baku who said that they had tried to change manat into US dollars at commercial banks but had been told that the Central Bank had banned it. Azerbaijani media has been reporting on currency exchange limits for much of the year.

In an emailed response to Bloomberg’s questions on the blocking of foreign currency sales, the Central Bank was quoted as denying that this was a formal policy and that it instead promoted a “liberal” currency exchange. 

But the Central Bank has maintained a tight peg on the value of the manat for the past five years, ever since it was bounced into two consecutive devaluations in 2015, linked to the oil price collapse of 2014, which damaged its reputation for competence.

Both the Georgian lari and the Armenian lari lost around 15% of their value at the start of the global coronavirus pandemic, and its associated lockdowns, last year. By contrast the Azerbaijani Central Bank maintained the value of the manat at 1.6995/$1. Analysts have said, though, that the pressure to devalue has been growing. 

In January 2016, shortly after devaluing the manat for the second time, the Central Bank also brought in rules which temporarily stopped currency traders from buying or selling currencies.

>>See P.8 for currency market news

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

US talks up new Afghanistan group with Uzbekistan and Pakistan

TASHKENT/JULY 16 2021 (The Bulletin) –The US heralded a new “quad regional support” group for Afghanistan after a meeting in Tashkent with officials from Uzbekistan and Pakistan.

Since the US began to withdraw its forces from Afghanistan in May, the Taliban has expanded across the country, leaving the US struggling to project a different narrative.

It has previously said that Central Asia should play an important role in the rehabilitation of Afghanistan and with successful trials of a trade route between Pakistan and Uzbekistan, which crossed Afghanistan before the advance of the Taliban, US diplomats are now promoting this axis.

“Recognising the historic opportunity to open flourishing interregional trade routes, the parties intend to cooperate to expand trade, build transit links, and strengthen business-to-business ties,” a US spokesman said.

Despite the upbeat rhetoric, though, the reality on the ground may dash any real hopes of increased trade between Pakistan and Uzbekistan, via Afghanistan.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbekistan moves towards mandatory coronavirus vaccinations

JULY 16 2021 (The Bulletin) — Uzbekistan moved a step closer to following its neighbours in Central Asia towards mandatory coronavirus vaccinations by imposing restrictions on people who have not had the jab. The deputy chairman of the Uzbek parliament, Alisher Kadyrov, said that employees should make it mandatory for workers to be vaccinated.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Georgia’s housing market is booming, says Colliers

JULY 16 2021 (The Bulletin) — Propelled by pent-up pandemic demand, Georgia’s housing market is picking up and is pushing sales to new highs, the Toronto-headquartered Colliers International said in a report. It said that in June this year, 3,378 apartments were sold in Tbilisi, an increase of 10% on the same period in 2019. Analysts have said that Georgia’s economy has recovered well from the pandemic.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021