Category Archives: Uncategorised

Azerbaijan oil exports via BTC fall 11.8%

JULY 5 2017 (The Bulletin) — Azerbaijan’s oil exports through the Baku-Tbilisi-Ceyhan pipeline (BTC) fell by 11.8% in the first half of 2017 compared to the same period last year to 13.174m tonnes, state-owned SOCAR said. This is significant as the BTC export route is Azerbaijan’s main thoroughfare for its oil, its most important commodity. No reason was given for the drop in oil exports.

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(News report from Issue No. 336, published on July 16 2017)

 

Lender targets Kazakhstan

JULY 6 2017 (The Bulletin) — TWINO, the peer-to-peer loans company, said that it was going to start lending to Kazakh clients, a PR boost for Kazakhstan which has been trying to deflect from negative headlines about the rise of non- performing loans in its banking sector. TWINO, based in London, said that it was the first European peer-to-peer loans provider to lend to Kazakhstan. It already lends to Latvia. Poland, the Czech Republic, Russia, Georgia, Denmark, Mexico and Spain.

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(News report from Issue No. 336, published on July 16 2017)

Comment: Kazakhstan’s two- pronged foreign policy

JULY 16 2017 (The Bulletin) — For Kazakhstan, July 2 marked both the Day of Diplomatic Service and also the 25th anniversary of the establishment of the country’s diplomatic corps. In 1992 Kazakh President Nursultan Nazarbayev signed a decree setting up the service and another that enshrined a ‘multi-vector’ foreign policy.

Since then, Kazakhstan has built up diplomatic relations with 182 countries, including 57 embassies and 27 consulates abroad. It also hosts 69 embassies, 19 consulates and 27 international organisations representations.

Kazakhstan’s foreign policy can be roughly broken down into two.

Firstly, Astana has been quite successful in setting up multi-vector diplomacy, roughly defined as seeking to keep “friendly and mutually- beneficial relations with all states” while also pushing the country towards playing an “important role in world affairs”.

This is a pragmatic approach to international affairs, evidenced by the balancing between Russia and China, strong ties with the EU and the US, as well as with non-traditional partners such as South Korea, Singapore, Malaysia and Japan.

On the other hand, and somewhat less successfully, Kazakhstan has been actively engaging the international community for the past few years in order to boost its image as a modern and mature diplomatic player in world affairs. In January, Kazakhstan took a non-permanent seat at the UN Security Council for two years. Nuclear non-proliferation, the fight against terrorism, and Sino- Russian relations were erected as key priorities.

Kazakhstan also confirmed its intention to play an active role in the peace talks in Syria after hosting five rounds of negotiations since early 2017, although no breakthroughs have been reached yet. Furthermore, Astana is increasingly seeking international prestige and acknowledgment, as evidenced by Astana’s 2017 Expo and its bid to host the 2022 Winter Olympic Games.

Kazakhstan is actively seeking to boost its regional leadership and increasingly move away from its image of a post-Soviet country and that of a “Stan”. In 2014 it was even proposed to change the name of the country to “Kazakh Eli”, which means country of the Kazakhs in Kazakh. This idea has been abandoned, for now.

By Mathieu Boulegue, analyst specialising in the former Soviet Union for AESMA Group

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(News report from Issue No. 336, published on July 16 2017)

 

Comment: Turkey’s coup and its impact

ISTANBUL, JULY 16 2017 (The Bulletin) — Finally we’ve made it to this finest of cities. It’s taken us a week since leaving Edinburgh to get here – via Yorkshire, Hampshire, Lord’s cricket ground, Warsaw, Prague (the airport only) and lovely, louche Odessa.

But at turns brooding and majestic; playful and frustrating, Istanbul is a place that commands love and loyalty. My wife and I are heading east on book research duty, hers not mine, and there was no reason to linger. Still, I insisted. It’s good for the temper, if not the waistline, to spend days here eating, drinking and strolling.

Coincidentally we are in Istanbul for the first anniversary of a failed coup attempt against Turkish President Recep Erdogan. A rebel army unit captured the bridge over the Bosphorus and tried to arrest Erdogan. They failed and the ramifications have been great.

Erdogan blamed the exiled cleric Fethullah Gulen for organising the coup and police have arrested at least 50,000 people for being ‘Gulenists’. This purge hasn’t been confined to Turkey. Pressure has been applied to Turkey’s allies in Central Asia and the South Caucasus too. Azerbaijan and Turkmenistan have been happy to comply, others less so, although Georgia has started to acquiesce.

With a resurgent Russia and a powerful China, Turkey’s influence in the region has waned since the 1990s but the coup anniversary is a reminder that events in Istanbul reverberate across the Anatolian plateau, over the Caspian Sea and on to the Tien Shan mountains.

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(News report from Issue No. 336, published on July 16 2017)

 

Uzbekistan banns foreign songs

JULY 4 2017 (The Bulletin) — The authorities in Uzbekistan have banned local singers from covering foreign songs, the US-funded RFE/RL report by quoting government officials, possibly an attempt to exert more control over Uzbek culture. Last month, the Uzbek authorities also ruled that musicians needed to ask for permission before posting their music videos online. The apparent need to exert more control and authority over Uzbek culture contrasts with a more relaxed stance towards business under President Shavkat Mirziyoyev.

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(News report from Issue No. 336, published on July 16 2017)

 

Armenian Lydian secures more support

JULY 4 2017 (The Bulletin) — Armenian gold miner Lydian said that it had secured another $25m loan from the Orion and Resource Capital funds, specialist mining creditors, to help pay for the construction of its operations at its Amsular site in the south of the country. Earlier this year it also secured a $50m loan for funding on the same project from ING Bank. Armenia has been looking to boost mining projects.

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(News report from Issue No. 336, published on July 16 2017)

 

Currencies: Kazakhstan’s tenge

JULY 16 2017 (The Bulletin) — The Kazakh tenge has now fallen to its lowest level since January, giving up most gains it had made this year.

By July 14 it was trading at $327.91/$1, down 2.3% since July 3. At its year peak on May 25, the tenge had traded at 310.65/$1. This means that it has fallen by 5.5% in around seven weeks.

A fluctuating oil price is likely to have had little impact on the value of the tenge. It has been hovering between $50 and $45 per barrel for some time. Instead, commentators have pointed to weak Kazakh fundamentals which suggest that the economy is still in poor shape.

Most worryingly amongst this economic data is the bad debt ratio that banks have built up. It just seems to be getting bigger and the government is preparing a bailout.

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(News report from Issue No. 336, published on July 16 2017)

 

Uranium bank to open in August, says Kazakh President

JULY 3 2017 (The Bulletin) — Kazakh president Nursultan Nazarbayev said that a low-enriched Uranium bank will open in eastern Kazakhstan on Aug. 29. The project is being administered by the International Atomic Energy Agency (IAEA) and is being promoted by Kazakh officials and Mr Nazarbayev as yet another contribution by Kazakhstan to world peace. On the day the uranium bank opens, Mr Nazarbayev intends to give out his first international award for nuclear disarmament. He already has his own peace award.

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(News report from Issue No. 336, published on July 16 2017)

 

New hydro power plant opens in Georgia

JULY 3 2017 (The Bulletin) — Adjaristsqali Georgia, a subsidiary of India’s Tata Power, said that it had completed the construction of the 186MW Shuakhevi Hydro Power Station in Georgia, one of the largest to be built in the last 50 years. Its finance partners for the project were the IFC (part of the World Bank) and Norway’s Clean Energy Invest. The project cost $420m to build and has been under construction since 2013. Speaking at the opening of the plant, Georgian PM Giorgi Kvirikashvili said that power produced by the plant would be sold during winter, when there is traditionally a deficit. Georgia has been heavily investing in its hydropower capacity.

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(News report from Issue No. 336, published on July 16 2017)

 

State salaries and pensions to rise by 10% in Turkmenistan

JULY 8 2017 (The Bulletin) — Apparently looking to bolster his support from ordinary Turkmen during a sustained economic downturn, President Kurbanguly Berdymukhamedov ordered state pensions and salaries to be increased from Jan. 1 2018. Analysts have said that the Turkmen economy is under increasing pressure and that inflation is rising fast.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)