Tag Archives: business

Georgian PM visits Azerbaijan

SEPT. 1 2016 (The Conway Bulletin) — Georgian PM Giorgi Kvirikashvili paid an official visit to Azerbaijan to discuss partnership in joint infrastructure projects with President Ilham Aliyev. Mr Kvirikashvili was accompanied by energy minister Kakha Kaladze and deputy foreign minister Gigi Gigiadze. The parties discussed the latest developments in the construction of the Baku-Tbilisi-Kars railway and the Southern Gas Corridor pipeline network.

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(News report from Issue No. 294, published on Sept. 2 2016)

Beeline and Kcell join forces in Kazakhstan

AUG. 31 2016 (The Conway Bulletin) — Kcell and Beeline, two of the largest mobile operators in Kazakhstan, signed a network sharing agreement that will allow their users to access 4G/LTE services across the country. Kazakhstan liberalised access to the 4G network earlier this year. Swedish Telia Company controls Kcell, while Russia’s VimpelCom owns Beeline.

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(News report from Issue No. 294, published on Sept. 2 2016)

Turkmen president to fly to Berlin

AUG. 28 2016 (The Conway Bulletin) — Turkmen president Kurbanguly Berdymukhamedov was due to visit German Chancellor Angela Merkel in Berlin, a rare European trip for Turkmenistan’s leader. The visit is likely to focus on potential gas supplies to Europe from Turkmenistan but human rights groups have been piling pressure on Ms Merkel to bring up their various human rights grievances with Mr Berdymukhamedov.

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(News report from Issue No. 293, published on Aug. 29 2016)

Kazakhstan’s Halyk Bank sees profits rise

AUG. 19 2016 (The Conway Bulletin) — Halyk Bank, Kazakhstan’s second largest lender, posted a year-on-year net profit increase of over 20% at the end of Q2 because it had been able to charge higher interest fees on loans. Importantly, too, Halyk Bank also said that non-performing loans had dropped to 12% of their portfolio from 12.9% at the end of March.

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(News report from Issue No. 293, published on Aug. 29 2016)

Russia’s MTS sells Uzbek business

AUG. 5 2016 (The Conway Bulletin) — Russian mobile phone operator MTS, which is listed on the New York stock exchange, said it had sold its business in Uzbekistan to the Uzbek government. The US authorities have been investigating alleged corruption at MTS’s Uzbek operations. MTS owned a 50% stake in UMS, the country’s third largest mobile operator. Various governments have launched a series of investigations into corruption by mobile operators in Uzbekistan.

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(News report from Issue No. 292, published on Aug. 12 2016)

KMG EP minority shareholders defeat Kazakhstan’s oil and gas plans

AUG. 3 2016 (The Conway Bulletin) — After months of increasingly bitter rows, minority shareholders at London-traded KMG EP voted against selling their stakes in the company to its parent Kazakhstan’s state owned Kazmunaigas. Kazmunaigas had been looking to boost its 58% stake in the company, one of its few assets which have been doing relatively well during an increasingly tough oil-linked economic downturn. KMG EP mainly owns downstream operations which earn US dollars. These have been more profitable than many of KMG’s upstream operations.

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(News report from Issue No. 292, published on Aug. 12 2016)

Greece says Azerbaijan’s SOCAR deal to buy gas pipelines will happen in September

JULY 22 2016 (The Conway Bulletin) — Italy’s Snam could make an offer to buy 17% of Greek gas distributor DESFA by the end of September, salvaging plans by Azerbaijan’s SOCAR to buy Greece’s pipeline network.

Earlier this month, SOCAR officials had suggested the deal, which is considered vital for Azerbaijani aspirations to supply gas to Europe, was off because a lower-than-expected

price rise by the Greece government for consumers had undermined its value.

But Stergios Pitsiorlas, chairman of the state Hellenic Republic Asset Development Fund, told Bloomberg that the Snam-SOCAR tandem will buy a 66% share in DESFA.

Snam declined to comment.

SOCAR officials flew into Athens this week to discuss the deal. News reports from both Greece and Azerbaijan have called the negotiations ‘tense’.

In 2013, SOCAR won a bid to buy 66% of DESFA, Greece’s gas distributor.

The deal was later frozen by the European Commission, citing 2009 regulation which stops integration between gas suppliers and distributors.

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(News report from Issue No. 291, published on Aug. 1 2016)

KazTransOil revenues drop

JULY 28 2016 (The Conway Bulletin) — Kazakhstan’s state-owned oil pipeline operator KazTransOil said its revenues fell by 1.2% to 96b tenge ($273m) in H1 2016, compared to the same period last year. KazTransOil, part of the Kazmunaigas group of companies, also said that it transported 10% less oil in H1 2016.

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(News report from Issue No. 291, published on Aug. 1 2016)

Dispute threatens Kazakh refinery company’s sale of Romanian refinery

JULY 27 2016 (The Conway Bulletin) — A legal battle between Kazakhstan’s KMG International and the Roma- nian government risks stalling a $680m deal to sell a majority stake in the Kazakh company’s refinery to China’s CEFC.

KMG International, formerly known as Rompetrol, is preparing to lodge a lawsuit against the Romanian government over the seizure in May of its assets, according to the FT.

The Romanian government has said the Petromidia refinery, the largest in the country, was illegally privatised in the early 2000s before Kazmunaigas bought Rompetrol.

KMG International has now submitted a legal note to the Romanian government that will escalate the dispute.

“Romania is using its governmental power to undermine that transaction and re-nationalise the assets,” the FT quoted KMG International as saying in a letter to the government.

KMG International had to delay finalising the deal with CEFC, which in December agreed a $680m fee to buy 51% of the refinery.

Robert Cutler, Senior Researcher at the Institute of European Studies at Carleton University, Montreal, said that Romania was looking to block the sale.

“Kazakhstan is about to find out what it is like to be on the receiving end of ‘resource nationalism’, which it [Kazakhstan] has successfully used against foreign investors over the last decade,” he told The Conway Bulletin.

This delay and the asset freeze has angered officials at both KMG International and Kazmunaigas, its parent company.

Senior company officials have said that they will take legal action if the refinery sale is delayed.

Romanian investigators have focused on recovering cash from an allegedly illegal privatisation of the refinery in 2003, when the late Dinu Patriciu bought Petromidia for $760m. In 2007, Patriciu sold Rompetrol, which controlled Petromidia, to Kazmunaigas for $1.6b.

In the following years, the government acquired an 18% stake in the refinery.

Now, analysts say, the government might be looking to renationalise the refinery, an important and lucrative asset for Romania.

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(News report from Issue No. 291, published on Aug. 1 2016)

PetroKazakhstan’s production shrinks in H1

JULY 28 2016 (The Conway Bulletin) — London-traded upstream oil company KMG EP said its H1 2016 production shrank by 0.7% to 6.1m tonnes of oil. In particular, the company said that production slowed significantly at PetroKazakhstan’s operations in central Kazakhstan. KMG EP owns a 33% stake in PetroKazakhstan, while China’s CNPC owns the rest. KMG EP is a subsidiary of state-owned energy company Kazmunaigas.

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(News report from Issue No. 291, published on Aug. 1 2016)