Author Archives: Editor

Markets: Stock push down

JUNE 8 2021 (The Bulletin) — Most stocks pushed down after investors looked to bank profits after a general rise in stock markets across the globe. 

The biggest loser was Anglo Asian, the Azerbaijan-focused gold producer, which lost 7.8% of its value. Anglo Asian is notoriously volatile and has pinged up and down over the past few weeks. 

Other metal and mining companies on stock markets also fell, with Central Asia Metals, the Kazakhstan-focused copper producer, slipping by 3.25% and Centerra Gold, which is listed in Toronto, dropping by 2%. 

Centerra Gold is trying to stop the Kyrgyz government from expropriating its biggest asset, the Kumtor gold mine in eastern Kyrgyzstan.

On the upside, Kaspi.kz, which listed in London last year and has seen its share price more than double because of the success of its banking and marketplace app, rose by another 2.3%.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Armenia’s renainssance man

>> Robert Kocharyan, Armenia’s former president, has emerged as the main rival to PM Nikol Pashinyan in a parliamentary election on June 20, writes James Kilner

Even for Armenia’s chaotic political landscape, Robert Kocharyan has had an extraordinary six months. 

JUNE 8 2021 (The Bulletin) — At the beginning of the year he was on trial, accused of corruption and the unlawful killings of 10 protesters in 2008 when he was Armenia’s outgoing president. Now, on the eve of a parliamentary election, he has emerged as the main rival to PM Nikol Pashinyan.

The June 20 election is an important one for Armenia as it will shape how the country recovers from losing a war to Azerbaijan for the disputed region of Nagorno-Karabakh last year. There is a plethora of candidates but analysts say that only two really matter. 

Pashinyan is a former journalist who seized power in a popular revolution in 2018 but is now blamed for the disastrous six-week war that ended in November. His My Step Alliance holds 88 seats in Armenia’s current 132-seat parliament, the maximum two-thirds majority that the biggest party is allowed, and he is likely to win the most seats again but, importantly, possibly fall short of a majority. 

This is where Kocharyan could come through, as he is regarded as the likely leader of a potential coalition that could form an alternative government.

It’s a remarkable turnaround for Armenia’s second post-Soviet leader. He was president between 1998 and 2008, overseeing an economic boom but also, according to his rivals, a rise in corruption. He handed over power to Serzh Sargsyan in 2008 who was then overthrown by Pashinyan. In 2019, prosecutors charged Kocharyan with corruption and the unlawful killing of anti-government demonstrators 11 years earlier, accusations which he said were politically motivated. In March this year, Armenia’s Constitutional Court agreed and threw them out. 

As they say, politics in Armenia is personal.

Kocharyan has rebuilt his appeal by presenting himself as a no-nonsense hero from Armenia’s first war in the 1990s for Nagorno-Karabakh, where he was born, a competent alternative to the firebrand Pashinyan. 

Pashinyan, in his election posters, styles himself as the suited establishment incumbent. He stares placidly away from onlookers, as if avoiding their gaze. 

Kocharyan’s posters, by contrast, show him tieless, sleeves rolled-up, staring straight ahead. A man on a mission.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Markets: Georgian lari rises on strong econ data

JUNE 8 2021 (The Bulletin) — The Georgian lari continued to appreciate against the US because, currency traders said, stronger-than-expected economic data had restored confidence in the once-battered currency.

Specifically, traders pointed to year-on-year GDP growth in April nearly 45% higher than the same period in 2020, at the start of the coronavirus pandemic. The lifting of various restrictions and the start of the summer tourist season have also given the lari a boost. By the end of the week, it was trading at 3.1469/$1, a rise of 3.4%, to its highest level since September last year. Overall, the lari has risen by 7.5% since the start of April.

As for other currencies, they were broadly trading level with the Armenian dram nudging up slightly and the Kyrgyz som and Uzbek soum falling slightly.

The Kazakh tenge was trading flat.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kashagan to start work on building gas processing plant

JUNE 8 2021 (The Bulletin) — Kazakh PM Askar Mamin inaugurated the construction of a gas processing plant at an onshore plant linked to the Kashagan oil project. The Kashagan oil field is in the Caspian Sea but it pumps oil and gas to an onshore processing site. The gas processing plant will start production from the end of 2023 and will have a capacity of 1m cubic metres of gas per year.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

China to build Belt and Road terminal in Kyrgyzstan

BISHKEK/JUNE 7 2021 (The Bulletin) — China signed a deal to finance the development of a $100m industrial sector in Kyrgyzstan a few days after Pres. Xi Jinping telephoned Kazakh Pres. Kassym-Jomart Tokayev to talk up the prospect of deeper relations.

The industrial sector deal highlights China’s status as Kyrgyzstan’s biggest financial backer and cements the importance of its Belt and Road Initiative (BRI) for Central Asia.

According to press reports, “investors” from China will pay $20m initially to develop the Silk Way Industrial Park with subsequent payments pushing up total investment to $100m.

The 70 hectare site on the border with Kazakhstan, 30km from Manas International Airport, is considered by China to be a key part of its BRI project to boost East-West trade. The BRI hinges on building infrastructure across the region which has allowed China to increase its influence. In May, China said that it would boost aid to Kyrgyzstan and this week media reported that, in a phone call, Chinese Pres. Xi told Kazakh Pres. Tokayev that relations needed to “advance in the right direction”.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Japarov gears up for fight with judicary in Kyrgyzstan

JUNE 7 2021 (The Bulletin) — Kyrgyz President Sadyr Japarov appeared to be gearing up to replace much of the senior judiciary in the country after he issued a statement criticising their work. He said that the unprofessionalism of judges was holding back the development of society. Mr Japarov, who took power in a coup in October, has earned a reputation as a single-minded populist who has consolidated his power through an election, tweaks to the constitution and the expropriation of a gold mine.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Russian airport operator eyes up Central Asia

JUNE 7 2021 (The Bulletin) — Russian regional airport operator Novaport is still interested in signing deals with airports in Kazakhstan and Uzbekistan despite the drop in footfall caused by the pandemic, billionaire owner Roman Trotsenko told Russian media. He said that he expects auctions to run airports, including the airport at Nur Sultan, to come up in 2020. Turkey’s TAV signed a deal in May to buy Almaty airport and has also said it will invest in Uzbek airports.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

BP agrees to build wind farm in Nagorno-Karabakh

BAKU/JUNE 7 2021 (The Bulletin) — BP has signed a deal to build a 240MW wind farm in Nagorno-Karabakh, the disputed region that Azerbaijan captured from Armenia last year, Azerbaijan’s energy ministry said.

BP declined to comment when contacted by The Bulletin but Gary Jones, the BP regional head, was quoted in the Azerbaijani energy ministry’s press release.

“We believe the collaborative work we are commencing on this solar opportunity can lead to a new area of partnership through which BP can make an important contribution to Azerbaijan’s energy transition,” he said.

For Azerbaijan signing a deal with BP to develop an energy project in Nagorno-Karabakh is something of a PR coup. It has rushed to invest in the region since a peace deal was agreed with Armenia in November, ending a six-week war that killed 6,000 people, but, although Turkish companies have signed deals, BP is the first Western company to invest.

And Azerbaijani energy minister Parviz Shahbazov appeared to recognise the importance of the deal.

“I do hope that our active cooperation with BP on the 240MW solar energy project will pave the way for foreign investments in Karabakh,” he was quoted as saying.

BP is a major investor in Azerbaijan. It runs the country’s biggest oil and gas projects including the Shah Deniz project and pipeline infrastructure which pumps gas to Europe. 

BP’s deal to invest in Nagorno-Karabakh also comes after a visit to Baku last month by Britain’s export minister, Graham Stuart.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbek journalists accuse official of beating them up

TASHKENT/JUNE 7 2021 (The Bulletin) — Concerns over the Uzbek authorities’ commitment to media freedom have once again been raised after journalists covering the trial in Andijan of three reporters accused of libel said that they had been beaten up by the son of a local official.

This year, the Uzbek government passed a law that bans criticism of Pres. Shavkat Mirziyoyev ahead of an election in October. This preceded the arrest of several journalists and bloggers, considered to be anti-government.

Western media freedom groups have become increasingly sceptical of statements by Pres. Mirziyoyev, who took over from the reclusive Islam Karimov in 2016, that he wants a more free society and open society in Uzbekistan.

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbek tax service to stop issuing INNs

JUNE 7 2021 (The Bulletin) — Uzbekistan’s tax service said that it would stop issuing INNs, or tax registration numbers, to Uzbek nationals. Instead, the agency said, the only way of identifying Uzbek nationals through official records will be with their personal identification numbers (PINFL). INNs have been a mainstay of former Soviet states. 

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— This story was published in issue 487 of the Central Asia & South Caucasus Bulletin, on June 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021