Category Archives: Uncategorised

Azerbaijan’s IBA signs promotional deal with Juventus football club

SEPT. 20 2016 (The Conway Bulletin) – The International Bank of Azerbaijan (IBA), majority owned by the government, signed a promotional deal with Italian football club Juventus, continuing Azerbaijan’s strategy of using sport to promote itself.

Juventus released a photo of its executives meeting IBA officials in Baku, posing with one of its famous black and white shirts.

Under the terms of the deal, the value of which has not been announced, IBA will be able to use Juventus logos and branding to promote its products. Juventus will also be committed to opening and running a football academy in Baku.

Juventus’ head of global partnerships and corporate revenues Giorgio Ricci said that the deal with IBA was the fifth regional sponsorship deal that the club had concluded in the last 16 months.

“We are proud to be working in a country of great potential such as Azerbaijan, and to collaborate with an organisation as prestigious as the International Bank of Azerbaijan,” he said.

For IBA, the timing is less auspicious. Azerbaijan’s economy has been under pressure because of a sharp fall in oil prices and analysts have said it will fall into a recession for the first time since 2009.

Banks have in particular come under pressure because of their previous loose lending arrangements which have now generated mountains of bad debt. This bad debt portfolio was exacerbated by a 50% fall in the value of the manat last year.

In July, a court in Azerbaijan also convicted IBA’s former CEO, Jahangir Hajiyev, of money laundering.

Sport, though, has become an important outlet for Azerbaijan to market itself. Azerbaijan had sponsored Spanish team Atletico Madrid and Baku is one of the 13 host cities for Euro 2020 football tournament.

The Azerbaijani government owns a 55% stake in IBA. IBA accounts for around 60% of all lending in Azerbaijan.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)

Kazakhstan’s Sunkar Air opens flight to Iran

SEPT. 20 2016 (The Conway Bulletin) – Kazakhstan’s Sunkar Air opened a new flight from the Caspian city of Aktau to Gorgan, in northern Iran. Sunkar is a small airline in Kazakhstan. Ties between Kazakhstan and Iran have improved since the lifting of international sanctions against Iran earlier this year.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)

Turkmenistan pays fine to Russia

SEPT. 16 2016 (The Conway Bulletin) – The Russian Air Transport Agency said that Turkmenistan Airlines had settled its debt of $220,000 and that it will lift the flight ban on the Central Asian carrier. Two days earlier, the Russian agency had banned Turkmenistan Airlines from flying over Russian airspace and landing at Russian airports until it settled its debt.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)

Kazakh authorities refuse protest

SEPT. 16 2016 (The Conway Bulletin) – The Atyrau city government denied a petition by Mothers in White Headscarves, a women’s protest group in Kazakhstan, which sought to hold a rally on Sept. 17. Public protests against worsening economic conditions in Kazakhstan have been becoming more frequent in Kazakhstan. Around 1,000 Atyrau citizens demonstrated against a proposed land reform in April, the largest protest in Kazakhstan for the past few years.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)

Kyrgyzstan receives tax back from Chinese refinery company

SEPT. 20 2016 (The Conway Bulletin) – Kyrgyz MP Yekmat Baibakpayev said that the state budget received just over 1b som ($15m) from the China-run Junda refinery, which faced closure this year for evading taxes. Mr Baibakpayev said that the oil refinery, located in the north of the country, owes the government five times as much. The Junda refinery was built by the China Petrol Company for $430m and opened in 2014.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)

Tethys accuses Kazakhstan’s Olisol of dragging on deal

ALMATY, SEPT. 16 2016 (The Conway Bulletin) — Guernsey-based oil company Tethys Petroleum is still waiting for its Kazakh partner, Olisol, to pay in its pledged investment, it said in a press release, a financial injection considered vital to keeping the company running.

Tethys, which has oil and gas assets in Kazakhstan, Tajikistan and Georgia, said it had only received a portion of the 9.8m Canadian dollars ($7.4m) that Kazakh oil company Olisol pledged to prop up the operations of the London and Toronto- listed company earlier this year.

“On Sept. 9, Olisol provided $2.94m working capital funds to (us) in addition to the previously announced $452,000,” Tethys said in a statement in a strong-armed tactic to force Olisol to pay more quickly.

Earlier in September, Tethys had used more belligerent language.

“[Tethys] considers Olisol to be in breach of the Investment Agreement,” it said in a note on Sept. 2.

Olisol has played down the late payment and said that it will finance the rest of the deal by pardoning part of a loan it previously gave out to Tethys.

Tethys itself said that Olisol currently owns just under 15% of the company and will own 42% once the full payment has been made.

Olisol emerged last year as a white knight for Tethys which has been in trouble since oil prices collapsed in 2014. The real beneficiaries of Olisol have not been made public but they are believed to be members of the Kazakh elite.

Tethys is also involved in legal cases that have hurt its reputation. Its stock price, though, on Thursday was up 20% at 1.5p for the week.

A court in Kazakhstan has restricted the company’s bank accounts in Kazakhstan over an unexplained case, until an appeal later this month.

In Tajikistan, where it jointly owns the Bokhtar oil field with France’s Total and China’s CNPC, Tethys is entangled in an arbitration with its partners over missed cash calls in 2015.

In August, CNPC and Total had submitted a claim for over $9m. Days later, Tethys submitted a counterclaim for $10m.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)

Stock market: Roxi Petrolium and Raditie

SEPT. 23 2016 (The Conway Bulletin) – Roxi Petroleum’s stock price has settled back at around 10p/share in September, after an unusual spike in early August. Roxi is a Kazakhstan focused British oil company. It operates the BNG Contract Area in Western Kazakhstan, not far from the massive Tengiz oilfield.

On Aug. 16, the company sent out an optimistic production update, saying it had drilled a new shallow well.

And on Sept. 2, Roxi announced an important shareholding change.

Dutch company Raditie, which owned 6.4% in the company sold off its entire stake. The largest portion of Raditie’s shares was bought by Bolatzhan Kerimbayev, a former deputy head of the National Security Committee.

Mr Kerimbayev is now the third-largest shareholder in the company with 4.2%. CEO Kuat Oraziman owns, directly and indirectly, 40% of Roxi. Kairat Satylganov, CFO and director, owns 24.5%.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)

Kyrgyz President falls ill in Istanbul with chest pains

BISHKEK, SEPT. 19 2016 (The Conway Bulletin) — Kyrgyz president Almazbek Atambayev cancelled a trip to the UN General Assembly meeting in New York because he was feeling unwell and was suffering from chest pains.

Instead, Mr Atambayev diverted his plane to Istanbul where he checked into a hotel and was examined by doctors. Only four hours later Mr Atambayev flew down to Izmir on the Mediterranean coast for a break and to convalesce. He would, his press team said, be back at work by next month.

On Friday, he was reported to have flown to Moscow for more treatment.

In Bishkek, speculation swirled across kitchen tables, bars and shops over the state of the President’s health, his no-show at the UN General Assembly and his unscheduled stopover in Izmir and Istanbul.

Rita Karasartova, an opposition activist, said “While Atambayev is in Turkey, there could be arrests (of opposition activists) here. After the arrests, Atambayev could say he did not know anything about it because he was out of country.”

Other, pro-Atambayev analysts, disagreed.

Mr Atambayev has cut a divisive figure. He has proposed constitutional amendments to hand the PM more power and quarrelled with his predecessor Roza Otunbayeva.

And his health has been the focus of speculation previously. Two years ago he took to walking with a stick. His press team said that he had a knee condition but they couldn’t stop the image of a frail-looking president.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)

Political tension builds in Kyrgyzstan

SEPT. 19 2016 (The Conway Bulletin) – Edil Baisalov, who previously served as chief of staff to ex-Kyrgyz President Roza Otunbayeva, said the country’s security services are targeting him and some of his former colleagues and could soon arrest him on trumped up charges. Mr Baisalov’s accusations fit with the worsening political tension between President Almazbek Atambayev and his predecessor.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)f

Uzbek GM ex-head awaits trial

SEPT. 21 2016 (The Conway Bulletin) – A court in Uzbekistan released on bail former GM Uzbekistan head Tokhirjon Jalilov, who was arrested in April in connection with a fraud scheme around car exports to Russia. Jalilov, who had served as chairman of GM Uzbekistan since 2010, will face trial for embezzlement. State-owned Uzavtoprom owns 75% of GM Uzbekistan, US- based GM owns the rest.

ENDS

(News report from Issue No. 297, published on Sept. 23 2016)