Category Archives: Uncategorised

Georgia signs deal with Iran to build new oil refinery

TBILISI, SEPT. 29 2016 (The Conway Bulletin) — Georgian-Iranian company GEOPARS signed a deal with the Georgian government to build an oil refinery in Supsa on the Black Sea coast, the first to be built in Georgia for 80 years.

According to local media, the government licensed the land to GEOPARS for free. GEOPARS said it would need to make an investment of $1.5b to build the refinery, a petro- chemical plant and a logistical centre.

PM Giorgi Kvirikashvili attended the signing ceremony and hailed its impact on Georgia’s industrial sector.

“We will see a project that once again accentuates and reinforces Georgia’s regional role as the shortest route to Europe for Near East and Asian countries. This is a project that puts Georgia on a map by highlighting not only its transit function, but its industrial role as well,” local media quoted him as saying.

Caution is needed, though. Georgia has negotiated building an oil refinery in Supsa or Poti several times previously with Azerbaijani, Kazakh and Russian investors but the deals eventually fell through.

SOCAR Georgia Investments, a subsidiary of Azerbaijan’s state owned energy company SOCAR, had proposed building a refinery in Supsa in May, but failed to commit funds.

This is the first refinery deal in Georgia made with Iran, which has played an increasingly active role in the South Caucasus over the past few years. If the project does go ahead, it will give Iran an important foothold in Georgia, a close US ally.

The only major oil refinery previously built in Georgia was at Batumi in the 1930s. The Batumi refinery was downgraded in the 1990s and sold to Kazakh investors. It later became an oil terminal.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Azerbaijan’s SOCAR postbones DESFA deal

SEPT. 27 2016 (The Conway Bulletin) – SOCAR, Azerbaijan’s state-owned energy company, postponed by one month the deadline for its purchase of a 66% stake in Greek gas distributor DESFA. The purchase guarantee, by which SOCAR would have to buy 49% of DESFA if it finds a partner to buy a 17% stake, was due to expire at the end of September. The EU froze the €400m ($446m) deal, signed in 2013, due to regulations on market competition.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyzstan’s reservoir water level increases

SEPT. 26 2016 (The Conway Bulletin) – Water levels at Toktogul, a key reservoir in Kyrgyzstan, have increased to a four year-high, prompting the government to reassure people about winter electricity supplies. Tagzhana Aidaraliyeva, a spokesperson for the company managing Toktogul said water levels have reached 17.4b cubic metres in mid-September. In 2014, water levels had fallen to 11.9b cubic metres, forcing Kyrgyzstan to increase electricity imports and ration its distribution.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyzstan approves constitutional referendum

BISHKEK, SEPT. 29 2016 (The Conway Bulletin) — Kyrgyzstan’s parliament approved President Almazbek Atambayev’s plans to hold a referendum at on Dec. 4 on altering the constitution to give the PM more power.

The planned constitutional reforms are controversial.

Kyrgyzstan’s current constitution was organised in 2010 after a revolution. To many, it feels that changing it now would be an insult to those people who died in that revolution.

Opposition groups also accuse Mr Atambayev of wanting to move into the PM’s position once he leaves the presidency next year and it has also triggered a fall out with his highly regarded predecessor, Roza Otunbayeva.

In Bishkek opinion was split.

“I think the changes are needed because everyone talks about them in the media,” said Elnur, a 32-year-old driver. Samat, 24, disagreed.

“We do not need changes,” he said. “The whole process reminds me of former presidents of Kyrgyzstan.”

Two former presidents were overthrown after trying to change the constitution.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh ministry requires solution from ArcelorMittal

SEPT. 27 2016 (The Conway Bulletin) – Kazakhstan’s ministry of investments and development said that steelmaker ArcelorMittal Temirtau needs to present a viable timetable to fix its financial problems or it could face legal prosecution. Albert Rau, the minister, told official media that the company could be using seasonal stoppages at its plant in central Kazakhstan to avoid finishing the year with a profit.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

ADB forecasts Azerbaijan’s GDP

SEPT. 27 2016 (The Conway Bulletin) – The Asian Development Bank (ADB) said that Azerbaijan’s economy will contract by 2.5% this year. Earlier this year, the ADB had forecast a 1% contraction. The Bank said Azerbaijan’s GDP will resume growth in 2017, when it will increase by 1%.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

HeidelbergCement to invest in Georgia

SEPT. 28 2016 (The Conway Bulletin) – Germany’s HeidelbergCement said it will invest $100m into expanding its cement and concrete plant in Kaspi, a small town 50km outside of Tbilisi in northern Georgia. HeidelbergCement has operated in Georgia for 10 years.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyzstan’s ex-PM to run?

SEPT. 23 2016 (The Conway Bulletin) – Temir Sariyev, Kyrgyzstan’s ex-PM, hinted at his possible participation in next year’s presidential election. Mr Sariyev, 53, who resigned in April to face corruption allegations, continues to be a powerful figure in Kyrgyzstan. In an interview with RFE/RL, Mr Sariyev said that he had major plans for the future.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyz court sentences islamists

SEPT. 29 2016 (The Conway Bulletin) – Kyrgyzstan’s National Security Committee said a court in Osh jailed four alleged members of the extremist IS group. The two Kyrgyz and two Uzbek citizens, whose names were kept secret, received sentences of between 10 and 18 years in prison for planning terrorist attacks in the country. In August, a suicide bomber drove a car through the Chinese embassy gates in Bishkek injuring several people.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kyrgyz Central Bank keeps rate unchanged

SEPT. 26 2016 (The Conway Bulletin) – Citing falling prices and signs that the economy is beginning to grow again, Kyrgyzstan’s Central Bank kept interest rates unchanged at 6%. The Central Bank said that only by keeping rates at 6% will it be able to let prices increase gently, within a 5-7% corridor. This year, the Central Bank has reduced interest rates twice from a level of 10% in January.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)