Category Archives: Uncategorised

Armenian oligarch Tsarukyan plots political comeback for parliamentary election

YEREVAN, JAN. 17 2017 (The Conway Bulletin) — Three months before a parliamentary election in Armenia, Gagik Tsarukyan, a millionaire arm-wrestler, said he was going to return to politics and head the country’s second largest political party — the Prosperous Armenia party.

Mr Tsarukyan’s political come- back is important because changes to the constitution, due to come into force in 2018 when President Serzh Sargsyan steps down, mean power is shifting from the presidential office to the parliament. Parliament, and its composition, after April’s election will govern the country.

In a broadcast on his Kentron TV channel, Mr Tsarukyan, 60, said he was returning to Prosperous Armenia, the party he set up, because of the poor state of the economy.

“Since my decision to leave the political arena, there has been no political figure that has been able to fill my role,” he said. “I would have refrained from returning to politics if I were certain that our country was headed in the right direction.”

In a parliamentary election in 2012, the Republican party won 69 of the 131 seats and Prosperous Armenia won 37. The rest were split between four other parties.

Two years ago Mr Tsarukyan, who owns businesses spanning alcohol production to diamond cutting and dealing, quit politics after arguing with Mr Sargsyan over the constitutional changes.

But analysts now say his return may be designed to bolster the ruling party’s power in parliament rather than to present any real opposition.

Richard Giragosian, director at the Regional Studies Center in Yerevan, said politics in Armenia is personality driven and that Mr Tsarukyan was able to appeal to a constituent that would not vote for the Republicans.

“Tsarukyan’s role in the coming elections will be very much to capture votes from people who would ordinarily vote for the opposition,” he said.

Styopa Safaryan, head of the Armenian Institute of the International and Security Affairs, agreed.

“Tsarukyan’s return is more a challenge for Armenia’s opposition party’s rather than current leadership and the Republican party,” he said.

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(News report from Issue No. 313, published on Jan. 20 2017)

Kazakh capital hosts Syrian talks

JAN. 16 2017 (The Conway Bulletin) — Some Syrian rebel groups have agreed to attend so-called peace talks backed by Russia and Turkey set for Astana on Jan. 23, giving the them a vital boost. It’s considered vital for rebel groups to attend the talks if issues of any great matter can be decided. Syrian peace talks were also held in Kazakhstan in 2015 but without any government representatives.

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(News report from Issue No. 313, published on Jan. 20 2017)

Armenia creates economic zone with Iran

JAN. 19 2017 (The Conway Bulletin) — Armenia has created a so-called special economic zone on the border with Iran to try and boost trade with its neighbour. Announcing the deal, deputy economy minister Hovhannes Azizyan said that it was important to keep on building ties with Iran and that he hoped the SEZ would become a regional hub. Armenia and Iran have built up close trade links over the past few years.

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(News report from Issue No. 313, published on Jan. 20 2017)

Rolls-Royce admits bribing Azeri and Kazakh officials

ALMATY, JAN. 17 2017 (The Conway Bulletin) — British engineering company Rolls-Royce, famed for its powerful industrial engines, admitted to prosecutors in the US, Britain and Brazil that it had bribed officials for years to win contracts, including in Kazakhstan and Azerbaijan.

The revelations that one of Britain’s most famous companies bribed their way into contracts will not only damage British industry’s reputation but will also reinforce the reputations of both Kazakhstan and Azerbaijan as countries where corruption is rife.

The focus of the corrupt payments was a firm called Unaoil which acted as an intermediary for Rolls-Royce, and other companies, for winning contracts. The prosecution said Rolls-Royce knew that some of the fees they paid to Unaoil and other advisers would be used to bribe officials.

Last year, as reported by The Conway Bulletin, the Monaco-based Unaoil was exposed as acting as an intermediary for a number of Western companies.

In a video statement, Rolls-Royce CEO Warren East said corruption at the company was linked to a handful of rogue employees.

“It is apparent that the standards of our business conduct have not lived up to the high standards of our engineering,” he said.

Rolls-Royce has agreed to pay an $800m fine for a so-called Deferred Prosecution Agreement which means that, in return for paying the fine and admitting guilt, criminal proceedings are dropped.

In Kazakhstan the prosecution said Roll-Royce paid out $5.4m to advisers between 2009-12, knowing that some of these fees would be converted into bribes for officials handing out contracts for elements of a gas pipeline between Kazakhstan and China. Rolls-Royce also hired a local distributor in 2012 who they knew was linked to a government official able to influence tenders.

In Azerbaijan Rolls-Royce paid intermediaries who bribed officials on their behalf between 2000-9.

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(News report from Issue No. 313, published on Jan. 20 2017)

Tajikistan cancels electricity rationing

JAN. 14 2017 (The Conway Bulletin) — Tajikistan cancelled electricity rationing because a new thermal power station has come online and the water levels in its reservoirs, vital for turning the hydropower stations, are high. This is important because power rationing had become a staple of Tajik life every winter. Tajikistan wants to turn itself into something of a regional electricity hub.

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(News report from Issue No. 313, published on Jan. 20 2017)

Candidates register for Pres. election in Turkmenistan

JAN. 18 2017 (The Conway Bulletin) — Turkmenistan’s Central Election Commission said that nine candidates, including incumbent Kurbanguly Berdymukhamedov, had registered to stand in a presidential election set for Feb. 12. Mr Berdymukhamedov, standing for his third term, is expected to win. Western observers have never judged a Turkmen election to be free or fair.

ENDS

(News report from Issue No. 313, published on Jan. 20 2017)

Remittance flows rise in Kyrgyzstan

JAN. 11 2017 (The Conway Bulletin) — Kyrgyz workers abroad sent back $1.83b to Kyrgyzstan in the first 11 months of 2016, an 18.6% rise on 2015, media reported quoting the Kyrgyz Central Bank. Remittance flows are vital for Kyrgyzstan and a recession in Russia has severely dented its economy. The Central Bank also said that remittances from Russia in November 2016 were a third higher than in November 2015.

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(News report from Issue No. 312, published on Jan. 13 2017)

Kazakh police arrest pension fund chiefs on corruption allegations

ALMATY, JAN. 6 2017 (The Conway Bulletin) — A Kazakh court ordered the arrest of the state pension fund’s top managers on corruption allegations, severely denting the public’s trust in one of the state’s flagship financial organisations.

The arrest of the pension fund’s chairman, Ruslan Erdenaev, the director of financial risk management, Musa Bakhtov, as well as two directors from two different mining companies, is just the latest in a series of high profile corruption cases in Kazakhstan which have even included a former economy minister.

And ordinary Kazakhs, who are already struggling to deal with the impact of a sharp economic downturn that has wiped 50% off the value of the tenge, destroyed jobs and savings, are voicing their frustrations increasingly vocally.

In Almaty, Inna Kisilenko, a mother of a six-year-old boy, shrugged her shoulders.

“Time will tell,” she said. “But honestly I feel doubtful. They [the government] increases the pension age and makes up other things.”

The pension fund arrests were ordered after the Central Bank asked the security services to investigate a deal between the fund and two mining companies worth 5b tenge ($15m) in November.

And the $20b pension fund is a particularly sensitive issue in Kazakhstan. It was created in 2014, when the government forced banks to merge their pension funds into one single state-controlled unit. Kazakhs questioned the motive of such a move. This grumbling turned to outrage when news emerged in the summer that the fund had lent members of the elite cash to finance construction of a shopping centre.

Natalya, 50, summed up people’s feelings.

“I just don’t trust it [pension fund],” she said. “I think it is not right because times are hard. I think about how elderly people survive with their pension money. Everything is getting more expensive, rent, groceries.”

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(News report from Issue No. 312, published on Jan. 13 2017)

Designing a yurt-shaped greenhouse for Kyrgyzstan

BISHKEK, JAN. 13 2017 (The Conway Bulletin) — Tilek Toktogaziev has a vision. The 27-year-old Kyrgyz businessman wants to make farming more efficient and he wants to do it by turning the yurt, Kyrgyzstan’s national icon, into a greenhouse.

Or at least construct greenhouses in the shape of a yurt.

“We often copy models of greenhouses from the Koreans or the Dutch,” he told The Conway Bulletin (Jan. 6). “But they have their own climatic conditions. Even in cold times Kyrgyz people have survived in yurts.”

He has set about designing a greenhouse that will look and function like a yurt – the circular, heavy felt tent-like structure used by nomads to live in during the summer when their horses graze in lush valleys under snow-capped mountains.

Mr Toktogaziev has been building greenhouses since 2012, but it was only in 2016 that he thought of the yurt-shaped greenhouse.

“Out of season, local greenhouses cover 10% of market demand in Kyrgyzstan, whereas 90% of vegetables come from China and Uzbekistan,” he said, indicating market potential.

For now, though, Mr Toktogaziev wants to find foreign investors to help propel his concept onto the world market and also to educate Kyrgyz on the benefits of the greenhouse. He already has local investors and says the first greenhouse will be built in 2017.

It’s an uncertain road. What he is certain about, though, is keeping the national identity of the greenhouses.

“Local thermofelt (produced in a village near Bishkek) will be used to cover yurt-shaped greenhouse roof in nighttime to keep warmth,” he said.

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(News report from Issue No. 312, published on Jan. 13 2017)

Kerry stopes over in Georgia

JAN. 12 2017 (The Conway Bulletin) — John Kerry, the outgoing US Secretary of State, landed briefly in Tbilisi for what was described as a technical stopover. He was en route to Vietnam, the focus of his farewell tour after four years as the US’ top diplomat. Mr Kerry met Georgia’s deputy foreign minister David Zalkaliani at the airport. For Georgia, even a short stop by Mr Kerry is a positive endorsement of its pro-Western agenda.

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(News report from Issue No. 312, published on Jan. 13 2017)