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Carrefour to open second Armenia store

YEREVAN/SEPT. 28 (The Conway Bulletin) — — French hypermarket brand Carrefour is likely to open its second store in Yerevan in October, France’s ambassador to Armenia, Jonathan Lacote, told media.

The opening of another Carrefour store in Yerevan is another sign that Armenia is recovering efficiently from a 2014-17 regional economic downturn. Carrefour opened its first store in Armenia in 2015.

Nikol Pashinyan, Armenian PM since a revolution in April and May, was also quick to hold up the promise of a second Carrefour store as evidence that the country’s fortunes had improved under his careful leadership.

He said that Carrefour had been considering downsizing when he took over as PM.

“One of my first actions was to visit the Carrefour supermarket, because at the time I took office Carrefour was the only supermarket operating lawfully,” he said. “I can now say that this process (of downsizing) is suspended and the process of expansion is guaranteed.”

Carrefour store openings and closings have become important economic barometers in the region. In May 2017, Carrefour closed its only store in Kazakhstan, just 15 months after Kazakh President Nursultan Nazarbayev had opened it, because of weak economic conditions.

By contrast in Georgia, which has had a strong economic resurgence, Carrefour has said it wants to open a third hypermarket.

Dubai-based Majid Al Futtaim operates the Carrefour franchises in Central Asia and the South Caucasus. There are currently 10 Carrefour supermarkets and two hypermarkets in Georgia, one hypermarket in Armenia and one in Tajikistan.
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>>This story was published in issue 387 of The Conway Bulletin on Oct. 1 2018

Corruption allegations made against Georgian officials

SEPT. 26 (The Conway Bulletin) – Eleven civil society groups in Georgia released a statement expressing concern about potential corruption by public officials. The trigger for their statement was several leaked audio conversations featuring businessmen and officials. The authenticity of the leaked phone conversations has not been validated and the ruling Georgian Dream coalition has denied the accusations.
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>>This story was published in issue 387 of The Conway Bulletin on Oct. 1 2018

Armenia keeps interest rate at 4%

SEPT. 25 (The Conway Bulletin) – Armenia’s Central Bank said annualised inflation by end-August was 3.3%, roughly in-line with its predictions. It kept interest rates at 4% as it expected inflation to drop slightly over the next year. This bucks a trend as other Central Banks have warned inflation is creeping up once again.
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>>This story was published in issue 387 of The Conway Bulletin on Oct. 1 2018

Subsidy cuts in Turkmenistan will hurt

–Turkmen subsidy cuts will irritate ordinary people but are unlikely to trigger massive anti-government protests, writes James Kilner

OCT. 1 — Successive former Soviet states have had to bite the bullet on reforming their various subsidy systems. This year, the most high-profile reforms have been to Russian and Kazakh pensions. The age of retirement has slowly been increased with the realisation that the state just can’t afford to pay for so many people in their 60s not to work.

Now news has broken that Turkmenistan has finally decided to do away with its previously excessively generous subsidies. The Turkmen government has been chipping away at subsidy levels for a few years but from January there won’t be any at all.

This is a big leap and there is genuine concern among analysts that Turkmen officials may face the ire of ordinary people. Some analysts have even talked up the possibility of anti-government protests.

Anti-government protests over subsidy cut-backs have happened before in the region. In 2015, protests across Yerevan forced the government to climb down over proposed electricity price rises.

Of course, Armenia is different from most other countries in the Central Asia and South Caucasus region. Street-level politics is an accepted part of the power spectrum in Armenia, as shown by a revolution in April and May that propelled Nikol Pashinyan into the premiership. Georgia too has a reputation for protests as a part of its political spectrum. The Rose revolution of 2003 turned Mikheil Saakashvili into a president. In Tbilisi, the full range of protests — pro-government, anti-government; pro-gay rights, anti-gay rights; pro-drug use, anti-drug use and so on — are relatively common. This year a march by workers of a mothballed regional sugar factory forced the government to reopen it.

In Central Asia, protests are treated with much less tolerance by the authorities and are a rare form of political expression. The main exception, of course, being Kyrgyzstan which has been through two revolutions since 2005.
News from Turkmenistan shows that its economy is doing poorly and points to a population having to deal with various deprivations. There is a lack of basic foodstuffs, money transfers out of the country are limited and people leaving the country are heavily monitored.

Subsidy cuts on basic utilities will hurt and there will be pockets of protests in Turkmenistan. There have been previously when cuts were announced and there will be now. But this is one of the most controlled police states in the world. Small-scale protests are one thing but what is more difficult to envisage are wide-scale protests that genuinely threaten the government.
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>>This story was first published in issue 387 of The Conway Bulletin on Oct. 1 2018

Azerbaijan is building a warship with Turkey

SEPT. 29 (The Conway Bulletin) – Turkish and Azerbaijani shipyards are teaming up to jointly build four warships, the Trend newspaper reported. The deal is yet another indication of the strength of Azerbaijan-Turkey relations. From pictures, the naval ships appeared to be a new class of patrol boats.
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>>This story was published in issue 387 of The Conway Bulletin on Oct. 1 2018

CPC oil flows will grow

SEPT. 26 (The Conway Bulletin) – The Caspian Sea Pipeline Consortium which runs a pipeline that pumps oil from northern Kazakhstan around the Caspian Sea to the Russian Black Sea port of Novorossiysk said that it was likely that volumes would rise to 65m tonnes next year from this year’s expected volume of 60-61m tonnes. Oil prices have risen to their highest level since November 2014, increasing transport volumes.
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>>This story was published in issue 387 of The Conway Bulletin on Oct. 1 2018

Turkmenistan will cut all utility subsidies from 2019

SEPT. 26 (The Conway Bulletin) – Turkmen President Kurbanguly Berdymukhamedov signed into a law a decree that cancels the last of Turkmenistan’s once-generous subsidies system, another admission that the country’s economy is struggling to recover from a 2014-17 downturn.

Analysts immediately said that the rollback in subsidies may trigger protests. Previous subsidy cuts have sparked off small rare anti-government demonstrations in Turkmenistan, regarded as one of the world’s most authoritarian and reclusive countries.

Like other countries in the region, the Turkmen government has cut its Soviet-era subsidy system over the past few years but from the start of next year households will have to pay near-market prices for gas, electricity and water. Previously petrol and food had also been heavily subsidised. Media reported that there has been a vague promise that people will pay “preferential prices”, although it is unclear what exactly this means.

Turkmenistan has been slow to recover from a regional economic downturn. Its main revenue generator is gas which is locked into inflexible long-term export contracts with China.

The Turkmen government is trying to broaden its export base. It has opened a new fertiliser plant and a new power plant, both focused on exports, in the past month but analysts have said that revenues from these projects will take time to trickle down to the population.
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>>This story was first published in issue 387 of The Conway Bulletin on Oct. 1 2018

Kyrgyzstan holds interest rates steady

SEPT. 25 (The Conway Bulletin) – Kyrgyzstan’s Central Bank kept its key interest rate at 4.75% because it also said that inflation had slowed. Specifically, the Kyrgyz Central Bank said that food prices had stagnated. It said that it expected overall inflation to measure 4% by the end of 2018.
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>>This story was published in issue 387 of The Conway Bulletin on Oct. 1 2018

Kyrgyzstan kicks off counter terrorism drills kick off

SEPT. 25/28 (The Conway Bulletin) – Russia and Kyrgyzstan held joint counter-terrorism drills in eastern Kyrgyzstan, part of large series of wargames by CIS member states. Ahead of the exercise, which involved 400 pieces of military hardware, 30 Russian aircraft and a missile defence system, Russian officials said that they were important because of the increased terrorist threat from Afghanistan.
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>>This story was published in issue 387 of The Conway Bulletin on Oct. 1 2018

Putin visits Azerbaijan

SEPT. 27 (The Conway Bulletin) – On a flying visit to Baku on the eve of the CIS leaders’ summit in Dushanbe, Russian President Vladimir Putin praised relations with Azerbaijan and talked up their joint investments. He said that Russian companies had created 700 joint ventures in Azerbaijan and had invested $1.5b. Mr Putin has appeared to step up his attention to Azerbaijan over the past few months, just as Azerbaijan readies to start sending gas supplies to Europe through a new pipeline network. Azerbaijani President Ilham Aliyev is also a regular visitor to Russia.
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>>This story was published in issue 387 of The Conway Bulletin on Oct. 1 2018