Author Archives: Editor

Kazatomprom says will reduce output in 2021

FEB. 1 2021 (The Bulletin) — In production guidance for 2021, Kazakh uranium producer Kazatomprom said that it would continue to reduce output in line with a plan put forward in 2018 to boost uranium prices. It also said that its output had been hit by the coronavirus pandemic and that it had been forced to suspend production at two sites in Turkestan, south Kazakhstan. Kazatomprom has a listing on the London Stock Exchange and is the world’s biggest uranium miner.

— ENDS

— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Russia and Turkey open joint military facility in Azerbaijan

BAKU/JAN. 30 2021 (The Bulletin) — Russia and Turkey opened a joint military facility in Azerbaijan to monitor the Russia-negotiated peace deal that ended a war in nearby Nagorno-Karabakh last year.

But the opening of the centre in the village of  Giyameddinli in  Aghdam province hides growing tension between the two regional rivals over Turkish plans to station military units permanently in Azerbaijan, which Russia sees as part of its sphere of influence. 

The day after the 120 soldiers stationed at the Turkish-Russian Joint Monitoring Center ate cake together to mark its opening, Turkish media reported that its military wanted to station fighter-jets in the Azerbaijani cities of Ganja, Gabala and Lankaran. 

It said that this was part of a deepening alliance with Azerbaijan since November when, with Turkish military advice and drones, Azerbaijani forces defeated Armenia in a war for the disputed region of Nagorno-Karabakh.

Since then, Turkey has made it clear that it wants to play a more permanent role in former Soviet South Caucasus. Russia has said that it will resist the establishment of a more permanent Turkish presence in Azerbaijan but senior government officials have said that Turkey was now a force in the region that needed to be built into policy decisions.

Dmitry Medvedev, chairman of Russia’s Security Council, was quoted in the media as saying: “Turkey is our neighbour and a very important partner. And a very close country for Azerbaijan. This factor cannot be ignored.”

As for the Joint Monitoring Center, with 2,000 Russian soldiers patrolling Nagorno-Karabakh, analysts said that its role may be more of a symbolic act between Russia and Turkey than any real soldiering or information-gathering initiative.

— ENDS

— This story was first published in issue 471 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Iran ramps up charm offensive in the South Caucasus

JAN. 24/26 2021 (The Bulletin) — On a tour to woo leaders in the South Caucasus, Iranian foreign minister Mohammad Javad Zarif visited Baku, Yerevan and Tbilisi before flying to Moscow for more talks. Iran has been ramping up its charm offensive in the South Caucasus, looking to cut military and trade deals with its neighbours.

— ENDS

— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Comment — Vaccine programmes show geo-political bent

JAN. 22 2021 (The Bulletin) — Governments in the region are taking different approaches to vaccinating their populations against Covid-19, the disease caused by the coronavirus. And it makes for instructive analysis.

In Georgia, the most pro-Western country in the region, the government has said it intends to start inoculating its population next month with the Pfizer vaccine. Sputnik-V, the Russian Covid-19 vaccine, doesn’t even feature in the thinking of the EU-dreaming, NATO-aiming Georgian government. 

In Armenia, though, Sputnik-V is at the top of the list, although its inoculation ambitions are more limited. Economically, Armenia has been hit the hardest by the coronavirus pandemic and it plans to inoculate just the 10% of the population that it considers to be most at risk.

You may have expected Azerbaijan to also prioritise using Sputnik-V to get on top of the coronavirus but, instead, it has placed its cornerstone order with China and its vaccine Sinovac. This reflects growing tension, and possibly even rivalry, between Azerbaijan and Russia. Azerbaijan heavily leaned on Turkey to defeat Armenia in a six-week war for control of the disputed region of Nagorno-Karabakh and in the process appears to have secured Turkey a foothold in the South Caucasus, irritating the Kremlin. Azerbaijan has also completed construction of a gas pipeline running from the Caspian Sea to Europe and will come into direct competition with Russia.

Azerbaijan hasn’t ignored Sputnik-V altogether and has put in an order, spreading its bets, a tactic it uses, some would say, in its foreign policy.

On the other side of the Caspian Sea, it’s a more opaque, or should that be confused, outlook for vaccine orders. Turkmenistan, which officially denies that it has ever had a case of Covid-19 within its borders was the first country in the region to approve the use of Sputnik-V. Why? 

In Kazakhstan, the authorities have said that they will use the Sputnik-V vaccine to inoculate a third of the population by the end of the year and in Uzbekistan, one of the test centres for Sinovac, the government there has said it will deploy a mix of the Russian and Chinese vaccines to inoculate its population. Uzbekistan, with a population double the size of Kazakhstan’s, has the biggest inoculation logistics challenge.

Bottom of the list are Kyrgyzstan and Tajikistan. Reflecting their far poorer status, both countries are relying on donations from Russia and China as well as the UN’s COVAX scheme for their inoculation cover. Officials in Kyrgyzstan and Tajikistan have said that the coronavirus pandemic has largely passed. This is, like their vaccine rollout plans, largely wishful thinking.

— ENDS

— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Georgia to lift ban on international flights from Feb. 1

JAN. 22 2021 (The Bulletin) — Georgia will lift a ban on international flights, imposed to try to reduce the impact of the coronavirus pandemic, from Feb. 1, media quoted Georgian economy minister Natia Turnava as saying. Tourism has become a major part of the Georgian economy over the decade and the banning of flights into Georgia for a year has hit it hard. Georgia has started to slowly lift its strict coronavirus restrictions.

— ENDS

— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Fire destroys top Georgian restaurant in Central Asia

BISHKEK/JAN. 22 2021 (The Bulletin)  — A late-night fire destroyed the Pur Pur Georgian restaurant in central Bishkek, considered by many to be the best Georgian restaurant in Central Asia. 

Nobody was hurt in the blaze at the site just off Bishkek’s Philharmomic Square. Police have said that they are investigating the cause of the fire and have declined to comment on speculation of arson.

Pur Pur became a favourite venue for Bishkek-based diplomats wanting to wine and dine contacts and also a favoured hang-out for Central Asia’s small and thirsty foreign press corps. The Lonely Plant guidebook described the shabby-chic Pur Pur as serving “perhaps the best Georgian food this side of the Caspian” with tables groaning under “gigantic khachipuri and flowing decanters of house wine”. 

— ENDS

— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Exports from Central Asia to China fall

JAN. 22 2021 (The Bulletin) — Exports from Central Asia to China plummeted in 2020, Chinese data showed, because of a drop in demand for products and the closure of borders as countries tried to stall the spread of the coronavirus pandemic. The data showed that exports from Tajikistan and Kyrgyzstan dropped by around 47% and from Turkmenistan and Uzbekistan by around 30%. 

— ENDS

— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Anglo Asian Mining takes control of mines in Nagorno-Karabakh

JAN. 22 2021 (The Bulletin) — Anglo Asian Mining, the gold mining company part-owned by the Azerbaijani government, said that its ownership of three potential mines in Nagorno-Karabakh had been “restored” to it. Azerbaijan defeated Armenia in a six-week war for control of the disputed region last year. 

— ENDS

— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Markets — Armenian dram recovers post-war losses

JAN. 22 2021 (The Bulletin) — Currencies in the region traded broadly flat over the past week, reflecting a slow domestic week while most attention was focused on the swearing-in of Joe Biden as the United States’ 46th  president.

Specifically, the Armenian dram rose by 1.2%, reversing some of the steep loses it has suffered since a war broke out with Azerbaijan over the disputed region of Nagorno-Karabakh. Across the Caspian Sea, The Kazakh som inched up and the Uzbek soum moved down slightly.

Most Central Banks have been selling US dollar reserves to keep their currencies propped. up. In two press releases on Jan. 19 and Jan. 21, the Azerbaijani Central Bank said that it sold $66.4m and $67.4m. Azerbaijan maintains one of the tightest US dollar currency pegs in the region. In 2015, it devalued the manat twice, leaving psychological scars and weakening the reputation of the government. Commentators said that the authorities wanted to avoid a repeat of this.

— ENDS

— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Markets — Georgian banks wobble on coronavirus impact assessment

JAN. 22 2021 (The Bulletin) — Anglo Asian Mining’s share price continues to surge with better-than-expected results and news of new finds. The company, which is part owned by the Azerbaijani government is also one of the winners of a war between Armenia and Azerbaijan over the disputed region of Nagorno-Karabakh as it has been promised new gold mine concessions.

Far less buoyant are banking stocks in Georgia with both Bank of Georgia and TBC Bank trading down. This follows a downgrade by the Fitch ratings agency of the Georgian banking sector because of the impact of the coronavirus.

Another stock that has traded down recently is Kaspi, the Kazakh company that owns Kaspi bank. Analysts said that another 5% fall in its share price was a reflection of concern over the durability of the company’s app, on which much of its share price is built. It has been hit by a handful of glitches.

— ENDS

— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021