Category Archives: Uncategorised

Housing scheme kicks off boom in Kazakhstan

MARCH 28 2017 (The Conway Bulletin) — In the first two months of the year, 18,000 new apartments were built in Kazakhstan, a 23% increase on the same period in 2016, media reported quoting official statistics. The increase is driven by the government housing building scheme unveiled last year called Nurly Zher. The scheme is part- political, part-economic in its aims which are to build homes for 1.5m families over the next 15 years and also to lift the country’s flatlining economy.

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(News report from Issue No. 323, published on April 6 2017)

Uzbek government spies on exiles

MARCH 31 2017 (The Conway Bulletin) — Uzbekistan’s security forces are spying on exiled Uzbeks across Europe in order to intimidate and create a climate of fear, the London- based human rights organisation Amnesty International said in a new report. It accused the Uzbek government of creating a Soviet-like atmosphere of fear and repression inside and outside Uzbekistan.

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(News report from Issue No. 323, published on April 6 2017)

Armenian investors set up IT projects

MARCH 29 2017 (The Conway Bulletin) — A group of Armenian investors have set up a fund to help kick-start IT projects, media reported, boosting Armenia’s reputation as the IT hub of the South Caucasus/Central Asia region. Reports said that the fund was looking to sponsor 10 start-ups with $200,000 each. Armenia’s government has been encouraging the development of an IT sector. It has made deals with Microsoft and an Armenian-US company produces smartphones and tablets in the country.

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(News report from Issue No. 323, published on April 6 2017)

China wants to invest in cement production in Uzbekistan

MARCH 28 2017 (The Conway Bulletin) — China’s Anhui Conch Cement Co. said that it wanted to invest in a 2m tonne/year cement plant in Uzbekistan because of the improve economic conditions in the country. Cement production has become big business in Uzbekistan with Chinese, Turkish and Russian companies all setting up production there, but if Anhui Conch did build a 2m tonne capacity plant it would be one of the biggest, if not the biggest, in the country.

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(News report from Issue No. 323, published on April 6 2017)

Condor restarts oil wells in Kazakhstan

MARCH 22 2017 (The Conway Bulletin) — Canada-based Condor Petroleum resumed production at its oil wells in Kazakhstan in the second half of last year, it said in a full-year trading update, around 15 months after it cut production because oil prices had dropped too low to make it economical. Combined output from these two fields, Shoba and Taskuduk, is tiny at 588 barrels per day but it does indicate a renewed confidence in the Kazakh oil sector. Also in Kazakhstan, Condor has applied to extend its exploration licence over the Zharkamys exploration area which officially expired at the end of last year.

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(News report from Issue No. 322, published on March 27 2017)

Stock Market: Nostrum

MARCH 27 2017 (The Conway Bulletin) — Nostrum, the London-listed oil company with assets in Kazakhstan, saw its share price fall 11% to 416p, its lowest price since the start of the year, after full year results for 2016 showed a sharp fall in revenues.

It said that revenue was down by $100m to $348m because of sustained low oil prices. Its chairman, Frank Monstrey, said that 2016 had been one of the most difficult years on record although cost cutting had reduced losses.

“Nostrum has not wavered during one of the most challenging years for the oil and gas industry in over a decade,” he was quoted as saying by media. “We have navigated 2016 with caution and great care to ensure our vision remains intact.”

Nostrum has been one of the best performing Central Asia/South Caucasus stocks this year, surging to an 18-month high of 518p at the start of March.

A drop in oil prices and the tough trading figures from 2016 put a dampener on this buy analysts are still backing it.

Brokerage Credit Suisse gave the Nostrum stock an ‘outperform’ rating with a target price of 535p for this year.

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(News report from Issue No. 322, published on March 27 2017)

Georgian parliament overrides presidential veto

MARCH 23 2017 (The Conway Bulletin) — Georgia’s president overrode a veto by President Giorgi Margvelashvili over a bill that will give the government far reaching surveillance powers. Mr Margvelashvili had objected to the bill because he said it was too expensive to create an agency solely to increase surveillance of people suspected of aiding and abetting terrorism and also of criminals. He also said, and this was possibly his main point, that it was unclear if the new agency would be independent. Relations between Mr Margvelashvili and the Georgian Dream government are strained.

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(News report from Issue No. 322, published on March 27 2017)

Economic activity picks up in Armenia but deflation lingers

YEREVAN, MARCH 27 2017 (The Conway Bulletin) — Armenia’s economic activity barometer, considered to be a key indicator of future growth, increased by 6.2% in the first two months of the year compared to the same period in 2016, the National Statistics Agency said (March 20).

The data comes at just the right time for the ruling Republican Party which is looking to increase it support among voters ahead of a parliamentary election on April 2.

The growth in economic activity, though, was uneven. The growth came in industry and services. Agri- culture was stagnant and the important construction sector fell by 13.8%.

Armenia’s economy has been limping along since 2015 and deflationary pressure has become a major concern for policy makers. Over January and February, the statistics agency said that deflation had measured 0.4%.

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(News report from Issue No. 322, published on March 27 2017)

Comment: Armenia is facing its most important election, says Bagdasaryan

MARCH 27 2017 (The Conway Bulletin) — The April 2 parliamentary elections will define Armenia’s politics for the next five years, starting with the transformation from semi-presidential government to parliamentary republic even though this shift is not fully understood by the majority of society.

Armenia’s ruling Republican party is playing on society’s lack of understanding of the changes to try to retain a majority in parliament. But this is not a promising election for Republicans and for party leader, President Serzh Sargsyan.

The ruling party’s rating reached a historical low after years of economic stagnation, and accusations that corrupt officials were to blame for losses in a breakdown of a ceasefire with Azerbaijan around the disputed region of Nagorno-Karabakh in April last year. When 20 gunmen stormed a police station in Yerevan a few months later and took nine policemen hostage for two weeks, the violent action was not condemned by the public. Instead they were welcomed.

This seizure of the police station was used by the government as a trigger for reforms. The government changed some of the less-liked faces and Sargsyan invited former Yerevan mayor and Gazprom official Karen Karapetyan back from Moscow to become prime minister. Karapetyan promised to improve the government, root out corruption, improve the business environment and invest into the economy. His style of management was widely supported by the media and was positively greeted.

Karapetyan and his small team now lead Republicans’ election campaign, while the President, and party chairman, Serzh Sargsyan keeps himself in the shadows. Karapetyan’s popularity endures but there is still a job to do to win the election and that is where the Republican Party’s strategy comes into play. The Republican Party list of candidates is dominated by business and administrative heavyweights who’ll bring votes to the party.

The opposition fall short in this category. Almost all of them, with the exception of the pseudo-opposition Tsarukyan party, are fighting to enter parliament not through majoritan wins, but by passing the proportional representation threshold (5% for a party or 7% for a bloc).

The new parliament will take part in a power reshape between the president and the prime minister. A smooth election would legitimatise the new Constitution and parliamentary system.

By Eric Bagdasaryan is an independent analyst and executive secretary of Armenian Centre for Social Development and Public Policy

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(News report from Issue No. 322, published on March 27 2017)

Turkmen president changes Ashgabat Games logo

MARCH 26 2017 (The Conway Bulletin) — Turkmenistan’s President Kurbanguly Berdymukhamedov apparently ordered a redesign of the official mascot of the Asian Indoor and Martial Arts Games, a shepherd’s dog named Wepaly, that Ashgabat is hosting in September after deciding that it gave out the wrong image.

Only two weeks after his official introduction as the mascot of the Games, the green dog with the face tattoo and the slightly confused, baffled look has been replaced by a white eager-looking dog wearing a traditional sheepskin hat.

In a long explanation of the new Wepaly’s attributes released on a state-run website, an official wrote that the alabai dog had been chosen as the Games’ mascot because it had always been man’s best friend, standing guard over flocks of sheep and homes.

“Wepaly is sincere, fair, acts decisively and always overcomes the enemy. He is a brave, strong-willed, fearless character and will be an inspiring example for the triumphs of Turkmen athletes,” the state-run news agency wrote. Wepaly means true in Turkmen. Wepaly is then shown playing a series of sports from chess to Thai boxing to football.

The Asian Indoor and Martial Arts Games is the opportunity that President Berdymukhamedov has been looking for to showcase Turkmenistan. Sports events are increasingly used by leaders in Central Asia and the South Caucasus. Azerbaijan has hosted the inaugural European Games, will stage its second F1 Grand Prix later this year and has been chosen to hold matches for the 2020 European football championships.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 322, published on March 27 2017)