Category Archives: Uncategorised

Azerbaijan’s will have to spend from oil fund

APRIL 22 2015 (The Conway Bulletin) – Azerbaijan’s government will have to dip into savings built up in its Oil Fund to prop up its ailing economy, economists have said.

They said the Azerbaijani government will not cut the state budget sufficiently despite a massive fall in the price of oil and gas.

“If the government does not cut budget spending the only real way to cover the deficit will be calling back State Oil Fund’s reserves abroad, or the government must have another big devaluation,” Samir Aliyev, an independent economist at the monthly Economic Forum magazine, told the Bulletin.

At Dec. 31 2014, the Oil Fund was worth around $37b.

The downturn in energy prices since last summer has hit Azerbaijan hard. It devalued its manat current by a third this year.

Rovshan Agayev, an independent economist, also told the Bulletin that even during the financial crisis of 2008 the government did not increase spending from the National Oil fund.

“This is a result of mismanagement of the state budget money for many years,” he said.

The independent MP Vahid Ahmedov told RFE/RL it was acceptable for the government to use cash from the fund, created in 1999, to prop up the economy.

“What was the Oil Fund is created for?” he said. “To save some money for the future generation and as well as to help the economy in crisis times.”

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(News report from Issue No. 228, published on April 22 2015)

Georgia legislation targets IS recruitment

APRIL 16 2015 (The Conway Bulletin) – In a move designed to stop young Muslims heading off to Syria to fight for the radical group IS, Georgia plans to outlaw membership of any foreign group considered to be a terrorist organisation.

Current legislation does not deal with this issue and the authorities want more power to arrest both those people heading off to Syria to join IS and people who have returned to Georgia.

The focus in Georgia of IS recruitment is the Pankisi Gorge, on the border of Russia’s North Caucasus region.

Pankisi, which lies 2-1/2 hours drive from Tbilisi to the northeast, on the border with Chechnya, has a population of 10,000 and the majority of them are Kists, an Islamic ethnic group similar to Chechens.

Media reports have said that 20 to 80 men have headed out of the Pankisi Gorge to fight for IS in Syria.

Tbilisi rules with a light touch in the Pankisi Gorge which has a history of producing radical Muslim fighters dating back to the Chechen wars of the 1990s and the early 2000s.

Khaso Khangoshvili a member of the the Council of Elders, the 35-people body that de facto governs Pankisi, believes that the stricter laws will help.

“The new law will improve the situation, but the government should care more about the economy of our region,” he told the Bulletin.

ENDS

(News report from Issue No. 228, published on April 22 2015)

Nazarbayev to travel to Iran in show of support

APRIL 15 2015 (The Conway Bulletin) – Kazakh President Nursultan Nazarbayev will visit Tehran later this year, signalling Kazakhstan’s eagerness to embrace Iran after the United States agreed to relax sanctions imposed on it.

Yerlan Idrissov, Kazakhstan’s foreign minister, made the announcement at a joint press conference with his Iranian counterpart, Mohammad Javad Zarif, in Astana.

“We expect the visit of President Nazarbayev to Iran and we hope that this visit will contribute to the development of our relations,” he said.

Mr Zarif was visiting Kazakhstan less than two weeks after agreeing a deal with the US in Lausanne, Switzerland, that could scrap sanctions on Iran in return for extra American oversight of the Iranian nuclear programme.

The US has said Iran wants to develop a nuclear weapon. Iran has insisted its nuclear programme is for civilian use only.

Mr Nazarbayev has visited Iran previously. He was one of the few international leaders to attend the inauguration of Iranian president Hassan Rouhani in 2013.

For Kazakhstan, Iran is an important consumer market, particularly for grain and steel products. Kazakhstan exports its products to Iran by ship across the Caspian Sea.

At the press conference in Astana, Mr Idrissov also said Kazakhstan supported Iran’s potential membership of the Russia and China-ed Shanghai Cooperation Organisation (SCO), an economic-security organisation focused on Central Asia.

Iran is already an observer member of the SCO. Russia has also said that it supports SCO membership for Tehran, a proposition that will alarm NATO and the US.
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