Category Archives: Uncategorised

IMF raises Armenia’s 2015 GDP growth rate

SEPT. 26 2015, YEREVAN (The Conway Bulletin) — The International Monetary Fund (IMF) raised its economic growth forecast for Armenia in 2015 to 2.5% from an earlier 1% projection, Mark Horton, the IMF mission chief to Armenia, told a news conference.

Although the upward revision of Armenia’s growth forecast will be welcomed by officials and will give the government some breathing space as it tries to navigate its way through an increasingly deep regional economic crisis, Mr Horton emphasised that the revision was due to a handful of one-off factors.

“Among the non-recurrent factors which will not happen next year are the launching of a copper factory, unprecedented favourable climate conditions and the good results from the agriculture sector,” he told journalists at a press conference.

Armenia’s agriculture ministry said earlier this month that the sector had grown by nearly 15% in the first seven months of the year compared to the same period in 2014. Also, a new copper mine that started operations at the end of 2014 has contributed to a 35% increase in overall metals and mining output.

ENDS

(News report from Issue No. 250, published on Oct. 2 2015)

Uzbek corruption probe undermines TeliaSonera

SEPT. 25 2015 (The Conway Bulletin) – TeliaSonera last week sounded its retreat from Central Asia after trying to fight back against allegations of corruption and bribery made against its companies in the region over the past three years.

It’s a humbling moment for Telia- Sonera, the Stockholm-based mobile operator, that once had ambitions to dominate the South Caucasus and Central Asia region.

The company which has most undermined TeliaSonera’s reputation and made its position untenable was Ucell, its Uzbek subsidiary.

Prosecutors across Europe and in the US have launched investigations into alleged bribes of up to $325m that TeliaSoneria may have paid a Gibraltar-based company in 2007 and 2008

to access the Uzbek mobile phone market. The Gibraltar company was called Takilant and was closely linked to Gulnara Karimova, the eldest daughter of Uzbek President Islam Karimov.

And if the allegations have been TeliaSonera’s undoing, they have also undermined Ms Karimova,

Once touted as a near-certain to replace her father, she is now under house arrest in Tashkent. Most of her allies are in jail and her assets in Europe have been seized.

When TeliaSonera does finally offload its Uzbek subsidiary it will have left an indelible mark on Uzbekistan’s history — in the mobile phone market, in corporate governance and in politics.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)

Work progresses on Uzbek rail

SEPT. 24 2015 (The Conway Bulletin) – Work has nearly finished on an electric train line linking Tashkent with the Ferghana Valley in eastern Uzbekistan, media reported. The importance of the railway line is that it will cut out Tajikistan through which the previous Soviet-era line had to cross.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)

McDonalds location starts row in Kazakhstan

SEPT. 19 2015, ALMATY (The Conway Bulletin) — City planners in Almaty confirmed that McDonald’s would open its first restaurant in the former Alatau cinema in the centre of the city next year, sparking debate over the US fast food chain’s entry into Kazakhstan.

The old Alatau cinema has been derelict for years but is loved by many people living in Almaty as an iconic part of the city’s architecture.

Karim Toktabayev, a businessman, is part of the campaign team trying to stop McDonald’s from moving into the cinema building.

“I am neutral towards opening of McDonald’s. I cannot say I am against it but I am very much against the demolition of the (former cinema) building,” he said. “Why do we need to demolish this building? Why can’t we save it? If we demolish all the old buildings we will not have any history left.”

Others, though, are more excited about McDonald’s opening. For many Kazakhs it has been a source of irritation that McDonalds, one of the most famous brands in the world never operated a restaurant in the country. Now that wrong can be put right.

“No matter where it opens, I am happy that it will open. We have plenty of cinemas in the city, why should it matter if we open it in one of these cinemas?” said Sholpan Alibekova, a student.

McDonalds has said it will probably open in the first quarter of 2016.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)

Uzbek President meets Korea bank

SEPT. 23 2015 (The Conway Bulletin) – Uzbek president Islam Karimov met with Lee Duk-hoon, President of the Korean state-owned Eximbank in Tashkent to discuss Korean investments in the country. After the negotiations, Mr Lee brokered the signing of an inter-banking agreement with Asaka Bank, opening a credit line of $160m for Uzbekistan. Korean Eximbank is a key partner for Uzbekistan’s infrastructure and banking projects.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)

Azerbaijan’s steel to invest in Iran

SEPT. 18 2015 (The Conway Bulletin) — Azerbaijan’s Baku Steel Company (BSC) will invest in Iran, Mehdi Karbasian, the Iranian deputy minister of industry told the Trend news agency. Last week, Mr Karbasian visited Azerbaijan’s capital Baku and said BSC, a privately owned company, is particularly interested in two Iranian projects.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)

Georgia jails former mayor

SEPT. 18 2015 (The Conway Bulletin) – The day after winning a case against the Georgian government for keeping him in pre-trial detention for 14 months, Gigi Ugulava was found guilty of misspending public funds when he was the mayor of Tbilisi. He was jailed for 4-1⁄2 years. Separately, a judge acquitted Ugulava of money laundering.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)

Seagal flies into Azerbaijan to give President Aliyev a pep talk

SEPT. 21 2015 (The Conway Bulletin) – Steven Seagal, the Hollywood actor best known for his 1980s and 1990s martial arts movies, pitched up in Azerbaijan to meet President Ilham Aliyev for a chat and photo op.

His acting commitments have waned but the 63-year-old appears to have created a decent business giving pep talks to leaders of ex-Soviet states. His clients include President Vladimir Putin in Russia.

Now Mr Aliyev’ clearly felt he needed Mr Seagal’s help. Relations with Europe and the US have worsened over human rights and vote monitoring.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)

Georgia picks banking board

SEPT. 21 2015 (The Conway Bulletin) – The members of Georgia’s new Banking Supervisory Board are all close allies of former PM Bidzina Ivanishvili, drawing immediate allegations of cronyism. The Banking Supervisory Board replaces the Central Bank as the authority over commercial banks. The head of the board is Konstantine Sulamanidze, former CEO of Progress Bank in which Mr Ivanishvili owns a stake.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)

BP and Azerbaijan start renegotiating ‘deal of the century’

SEPT. 18 2015 (The Conway Bulletin) — SOCAR, Azerbaijan’s state-owned oil and gas company, said it is negotiating the renewal of the so called ‘contract of the century’ it signed with BP over 20 years ago.

The contract concerns the most important set of oil fields in Azerbaijan, Azeri-Chirag-Guneshli — also known as ACG — which is managed through a consortium in which BP has the largest share (35.8%) and SOCAR owns 11.6%.

“We are in talks,” said Rovnag Abdullayev, SOCAR’s chairman, when reporters asked him about the negotiations over the licence.

“Until 2024, BP is the operator at ACG. BP is likely to remain the operation in the future as well.”

BP has not commented but its management of the project is important both for the company and Azerbaijan, which is reliant on oil exports for its earnings.

It may be early to start negotiating an extension to the 30-year Production Sharing Agreement signed in 1994 but BP and Azerbaijan need to cement their fickle relationship.

An economic crisis, triggered by a steep fall in the value of oil over the past year, has hit Azerbaijan, forcing its manat currency to devalue by a third in February.

It has also cut its government budget and spent millions of dollars propping up its ailing currency.

Data from the oil rigs also makes for a dispiriting read. In the first eight months of 2015 oil production decreased by 2.5% compared to the same period in 2014.

ACG is the primary oilfield for Azerbaijan and in 2012 Azerbaijan’s president Ilham Aliyev accused BP of having committing “grave mistakes” in its management of the project. In Jan.-Aug. 2015, production at ACG was down by 2.2%, compared to 2014. BP has tried to maintain production by replacing staff and increasing investment in the fields but it has been unable to stop ACG’s decline.

Last week, BP suspended operations at Chirag for 20 days due to maintenance work which will hit output again.

ENDS

(News report from Issue No. 249, published on Sept. 25 2015)