Category Archives: Uncategorised

Tajik President’s daughter becomes an author

JUNE 8 2017 (The Bulletin) — Rukhshona Rakhmonova, daughter of Tajik president Emomali Rakhmon, published her new book entitled ‘Basics of Diplomatic Service’. She is the deputy head of the international organisations department within Tajikistan foreign ministry, a position she has held since November 2016. Ms Rakhmonova’s public profile has been increasing. She stood as a parliamentary candidate last year, winning her seat, and has also been head of the presidential administration.

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(News report from Issue No. 332, published on June 12 2017)

India and Pakistan join Central Asia-focused SCO

ALMATY, JUNE 9 2017 (The Bulletin) — India and Pakistan joined the Russia and China led Shanghai Cooperation Organisation (SCO), pushing the military-economic group beyond Central Asia for the first time.

The SCO, set up in 2001 after Uzbekistan joined what had been called the Shanghai Five, now covers 3.1b people — nearly half the world’s population.

For Central Asia, the geographic focus of the SCO, the ascension of India and Pakistan confirms it as a fulcrum of world diplomacy and also pulls South Asia tighter into its economic sphere.

After its annual 2-day summit meeting in Astana, the SCO said: “The heads of state highlighted the historical significance of the SCO’s enlargement. They believe that granting full SCO membership to India and Pakistan at the current meeting of the SCO Heads of State Council will facilitate the further development and enhance the potential of the SCO.”

The success of the SCO has crept up on Western governments. It has largely been built on China’s drive into Central Asia.

Russia, through its Soviet legacy, has more access points into Central Asia than China and has largely used the SCO as a meeting place and for developing military ties. China, though, has used the SCO to dispense everything from cheap credit to infrastructure deals and military know- how and sees it as a vital cog in its ‘One Belt. One Road’ strategy focused on developing trade corridors to Europe.

Sheng Shiliang, a researcher at the Xinhua Center for World Affairs Studies, told Chinese media that SCO expansion was important to China.

“The SCO has never been just a security group from the beginning. The Belt and Road Initiative offers a timely and convenient framework for the SCO members to facilitate connectivity and ultimately, achieve free flows of goods, capital, service and technology,” he said.

For India and Pakistan, joining the SCO will increase their presence in Central Asia. Over the past five years, India has been trying to catch up with China’s progress in the region. It wants to develop markets and buy up energy projects.

Pakistan has developed links mainly through the TAPI gas pipeline, which will run from Turkmenistan and also through the CASA-1000 electricity scheme which will send power generated by hydropower stations in Tajikistan and Kyrgyzstan.

The only country in Central Asia that is not a member of the SCO is Turkmenistan, which has traditionally taken a more isolationist neutral stance to international organisations.

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(News report from Issue No. 332, published on June 12 2017)

 

Quitting EITI has not hurt, says Azerbaijan’s minister

JUNE 8 2017 (The Bulletin) — Quitting the Extractive Industries Transparency Initiative (EITI) has not dented Azerbaijan’s ability to attract international investments, Azerbaijan’s deputy economy minister, Sahil Babayev, said during a conference. Azerbaijan quit the EITI earlier this year after a row over media freedom and human rights. Analysts had said that quitting the transparency group would hit Azerbaijan’s ability to pull in major loans. The EBRD and other lenders, though, have signalled that they are still prepared to lend to Azerbaijan on certain projects.

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(News report from Issue No. 332, published on June 12 2017)

 

UN Sec-Gen visits

JUNE 7 2017 (The Bulletin) — UN Secretary-General Antonio Guterres started a tour of Central Asia by flying into Kazakhstan. He was due to attend a meeting of the Shanghai Cooperation Organsiation (SCO) in Astana before flying to Uzbekistan and Kyrgyzstan, Tajikistan and Turkmenistan. This is the first visit by a UN Secretary General to Central Asia since 2015.

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(News report from Issue No. 332, published on June 12 2017)

 

Azerbaijan’s plant to double Methanol

JUNE 11 2017 (The Bulletin) — Azerbaijan’s methanol plant aims to double sales from 2019, the CEO of SOCAR Methanol, Elnur Mustafayev, said in an interview with ‘Consulting and Business’ magazine. Methanol’s main use is in the refining process of natural gas. The plant was built by AzMeCo and started production in June 2014. Mr Mustafayev said that it was the only methanol plant in the region and that it aimed to increase production to 500,000 tonnes per year, still some way short of its 750,000 tonne limit.

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(News report from Issue No. 332, published on June 12 2017)

 

Uzbek Parliament approves new CB chief

JUNE 6 2017 (The Bulletin) — Uzbekistan’s parliament approved the relatively unknown Mamarizo Nurmuratov as the new Central Bank chairman. He had been chairman of the Senate’s budget and economic reforms committee. His appointment, as a replacement for Faizulla Mullajanov who died after 26 years in the post, highlights the relative junior nature of the Central Bank chief in Uzbekistan.

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(News report from Issue No. 332, published on June 12 2017)

 

Russia to reinforce military bases in Kyrgyzstan and Tajikistan

JUNE 7 2017 (The Bulletin) — Russia plan to reinforce its military bases in Kyrgyzstan and Tajikistan in response to the move north of the Taliban in Afghanistan, Russian defence minister Sergei Shoigu said during a visit to Kazakhstan for a summit meeting of the Shanghai Cooperation Organisation (SCO). Earlier this year, the Taliban moved to within a few miles of the Amu Darya river that acts as the border between Tajikistan and Afghanistan, its furthest north. Russia keeps one of its largest overseas military bases in Tajikistan. The Kyrgyzstan base, at Kant near Bishkek, is far smaller. It is mainly used as an air base.

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(News report from Issue No. 332, published on June 12 2017)

Kazakhstan discouts CPC crude at loss

JUNE 8 2017 (The Bulletin) — Light CPC crude oil is being sold at an increasingly heavy discount because the Kashagan project needs to increase output despite low oil prices, various traders told Reuters. In the article, the traders said that it was simply cheaper for Kazakhstan to discount CPC crude than cut back on Kashagan output which only came onstream last year after a series of setbacks. Traders said that CPC crude, considered high quality, had been sold at a premium of $0.15/barrel in 2013. In the 2014-16 downturn this dropped to a discount of $0.11-$0.18 but was now being sold at a discount of $1.23 because of the oversupply.

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(News report from Issue No. 332, published on June 12 2017)

China buys first bank in Kazakhstan with swoop for Altyn

ALMATY, JUNE 8 2017 (The Bulletin) — Chinese Citic Bank Corp completed the purchase of a 60% stake in Altyn Bank from Halyk Bank for an undisclosed amount, marking China’s first investment in the Kazakh banking sector.

The deal also lays down yet another marker of intent by China over its push to develop Central Asia, and in particular Kazakhstan, as the fulcrum of its ‘One Belt. One Road’ development policy. It envisions a new Silk Road, connecting China and Europe, which means developing infrastructure in Kazakhstan.

This is also China’s first bank deal in Kazakhstan and comes in the midst of a lack of confidence in the Kazakh banking sector, linked to a three year-long economic downturn. China’s CITIC bank has not commented but Umut Shayakhmetova, the Altyn Bank CEO, did.

“Within the ‘One Belt. One Road’ Chinese initiative we are seeing Kazakh companies expressing a clear desire to develop their business in China as we continue to follow the needs of our clients,” she said.

The deal was announced last year.

Altyn Bank is described as a medium-sized lender with assets of $930m. Halyk Bank said it would retain a 40% stake in the bank. Altyn Bank was formed in 2014 when Halyk bought HSBC Kazakhstan.

China’s ‘One Belt. One Road’ policy has lead to a rush of Chinese deals in Kazakhstan. COSCO Shipping Corporation and Jiangsu Lianyungang Port Co bought a 49% stake in the Khorgos dry port on the Kazakh-Chinese border last month and this month the Shanghai Stock Exchange said it would buy a 25.1% stake in the Astana Stock Exchange.

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(News report from Issue No. 332, published on June 12 2017)

 

 

 

Georgia, Azerbaijan, Turkey begin military exercises

JUNE 5 2017 (The Bulletin) — Soldiers from Georgia, Turkey and Azerbaijan started their annual military exercises, dubbed Caucasian Eagle 2017, highlighting improved ties between the three countries. This is the third military exercise between the triumvirate. Turkey has hosted the other two military exercises.

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

(News report from Issue No. 332, published on June 12 2017)