Category Archives: Uncategorised

Uzbekistan and Kyrgyzstan sign bilateral deals

OCT. 19 2016 (The Conway Bulletin) – At a meeting in Tashkent, the foreign ministers of Uzbekistan and Kyrgyzstan signed a deal to extend bilateral relations. Although vague in detail, the agreement is important because it underlines the improving ties between the two neighbours. For most of the year tension along the Uzbek-Kyrgyz border has been rising. Since the death of Uzbek president Islam Karimov in September, though, dialogue between the two sides has improved markedly.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Georgia’s election committee sets run-offs

OCT. 19 2016 (The Conway Bulletin) — Georgia’s Central Election Commission set Oct. 30 as the date for run- offs in at least 48 single mandate seats which failed to return a majority winner in a parliamentary election on Oct. 8. The vote is important because, although the Georgian Dream is all-but certain to win a majority in the 150-seat parliament, if it wins a total of 113 seats it will be able to make constitutional changes.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Georgia’s trade with Russia rises

OCT. 16 2016 (The Conway Bulletin) — Georgia’s trade turnover with Russia continued to rise as relations between the two neighbours improves. Geostat, the state statistics agency, said that exports to Russia increased by nearly 18% to $612m in the first nine months of the year and imports from Russia were up nearly 15% at $480m.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

CSTO agree on crises centre in Armenian capital

OCT. 14 2016 (The Conway Bulletin) – At a meeting in Yerevan, leaders of the Collective Security Treaty Organisation (CSTO) agreed to set up a new crisis response centre. The thinking behind the centre is to improve the exchange of information between CSTO members on terrorism. The CSTO includes Russia, Belarus, Armenia, Kyrgyzstan, Tajikistan and Kazakhstan.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Kazakh President’s grandson says he bought 49% stake in Transtelecom in 2015

ALMATY, OCT. 17 2016 (The Conway Bulletin) — After 18 months of rumours, Nurali Aliyev, grandson of Kazakh President Nursultan Nazarbayev, revealed himself to be the mystery buyer of a 49% stake in Kazakhstan’s telecoms network, Transtelecom.

The 8.9b tenge ($48m at the time) sale was agreed in May 2015, but the identity of the buyer was shielded from the public. At the time of the deal, Mr Aliyev was the deputy mayor of Astana. Kazakhstan’s state-owned railway company, Temir Zholy still holds a 51% stake in Transtelecom.

In an interview with the pro-government Tengrinews website, Mr Aliyev confirmed rumours on opposition websites that he had bought the stake.

“One of the reasons for my departure from the government service was the acquisition of a 49% stake in Transtelecom as part of the privatisation programme,” he said.

Mr Aliyev, 31, quit as deputy mayor of Astana in March this year, saying that he wanted to concentrate on his business commitments. He had held the position since Dec. 2013.

In Kazakhstan, it is fairly com- monplace for senior government members to own stakes in businesses.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Iran and Turkmenistan agree deal to send oil swaps to Azerbaijan

OCT. 18 2016 (The Conway Bulletin) — Iran and Turkmenistan signed a swap deal to, essentially, send 1b cubic metres of Turkmen gas to Azerbaijan every year.

The deal means that Iran will become a land bridge between Turkmenistan and Azerbaijan, potentially giving gas supplies to Europe a boost.

Under the deal, Turkmenistan will send 1b cubic metres of gas to Iran’s northern border and Iran will then deliver the equivalent to its border with Azerbaijan.

The swap deal is both an improvement for regional gas transport and an advantageous arrangement for Iran. Iran suffers from gas shortages in its north-east and supplies from Turkmenistan, besides generating transit revenues, will also help reduce this deficit.

For Turkmenistan the deal is an essential part of its diversification strategy. Turkmenistan and Azerbaijan have long touted a pipeline running across the Caspian Sea that could pump Turkmen gas westwards to Europe, as part of the wider Southern Gas Corridor network. This would secure valuable supplies from the region to Europe by giving Azerbaijan’s gas sector, which needs extra gas to fill the prospective TAN- AP-TAP pipeline network, a boost and also allow Turkmenistan to reduce its dependence on China.

The sticking point for a Caspian Sea pipeline has been Russia, though.

Russia has repeatedly said that a trans-Caspian pipeline would have to be approved by all littoral states and has, at times, threatened the use of force against unilateral decisions.

This swap deal, potentially, creates a way to send oil shipments from Turkmenistan to Azerbaijan, and then on to Europe, using Iran as a land bridge.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

S&P upgrades ratings of Kazakhs lenders

OCT. 20 2016 (The Conway Bulletin) – Ratings agency S&P increased the long term credit rating of Kazkommertsbank, one of Kazakhstan’s largest lenders, by one notch to B- from CCC+. S&P said the reason for the upgrade were the positive results in the first half of 2016 and the increased capitalisation of the bank. S&P also said the outlook remained negative, reflect- ing low confidence in Kazakhstan’s banking sector.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Condor starts production in western Kazakhstan

OCT. 17 2016 (The Conway Bulletin) – Canadian oil company Condor Petroleum said it started commercial production at its Taskuduk field, 50km west of Uralsk in north- western Kazakhstan. Condor said that, together with Shoba, another Kazakh oil field that started operations in September, its total output has reached 600 barrels/day. The company said its production cost remained low, at $28/barrel, allowing a $29/barrel profit in the first sales contract.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

ArcelorMittal resumes in central Kazakhstan

OCT. 17 2016 (The Conway Bulletin) – ArcelorMittal Temirtau, the subsidiary of the Luxembourg-based steel- maker, said it resumed operations at its plant in central Kazakhstan. The company had to cut production for three days, due to administrative issues which blocked train transport. In a separate note, the company said that Mojtaba Damirchilu, Iran’s ambassador to Kazakhstan, visited the plant and pledged to increase Iranian imports of ArcelorMittal Temirtau’s steel by 1/3 to 1.5m tonnes next year. Iran is ArcelorMittal’s biggest client. The international sanctions on Iran had hit its demand for steel, hurting the Kazakh steelmaker.

ENDS

(News report from Issue No. 301, published on Oct. 21 2016)

Turkmen President calls a presidential election

OCT. 16 2016 (The Conway Bulletin) — Turkmenistan’s President Kurbanguly Berdymukhamedov called an election for Feb. 12, barely a month after he tweaked the country’s constitution to allow him to rule for life.

Mr Berdymukhamedov, who won a presidential election in 2012 with 97% of the vote, is expected to easily win next year’s vote, his third election since winning power in 2007.

But like the rest of the region, Turkmenistan’s economy has been creaking under a slump in global energy prices. This could make the election more complicated than previous votes.

Last month the 59-year-old Mr Berdymukhamedov removed an age cap of 70-years from the Turkmen constitution and also extended presidential terms to seven from five years, inline with many of his Central Asian peers.

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(News report from Issue No. 301, published on Oct. 21 2016)