Tag Archives: business

EBRD considers stake rise in Azerbaijan

JULY 22 2016 (The Conway Bulletin) — The European Bank for Reconstruction and Development (EBRD) said it will postpone its decision to increase its stake in Holcim Azerbaijan, a cement company. The EBRD already owns a 10% stake in the company. Switzerland-based LafargeHolcim (66%), Germany’s Holcim (10%) and other private investors (14%) own the rest of the company. The EBRD said it will wait until September to take a decision.

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Copyright ©The Conway Bulletin — all rights reserved

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

 

Kazakh miner’s production grows

JULY 22-28 1 2016 (The Conway Bulletin) — Kazakhstan miner KAZ Minerals posted a 43% growth in output in H1 2016, compared to the same period last year, to 52,600 tonnes of copper cathode. KAZ Minerals also said it cut costs for the development of its Aktogay project by 4.4% to $2.2b. Together with Bozshakol in northern Kazakhstan, the Aktogay project, located in eastern Kazakhstan, is KAZ Mineral’s main copper asset.

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

Kyrgyzstan to challenge Centerra share issue

BISHKEK, JULY 26 2016 (The Conway Bulletin) — The board of Kyrgyz miner Kyrgyzaltyn will dispute Centerra Gold’s issue of new shares to buy US-based Thompson Creek because it reduces its own overall stake in the company, which owns its biggest gold mine – Kumtor.

This month, the Canadian miner, 32% owned by Kyrgyzaltyn, said that it would buy Thompson Creek for the equivalent of $1.1b, in cash and new shares.

Kyrgyzaltyn had already said it disagreed with the transaction and that it voted against it during the Centerra board meeting.

As part of the financing for the acquisition of Thompson Creek, Centerra Gold issued new shares which analysts said will reduce Kyrgyzaltyn’s 32% stake in Centerra to approximately 28.8%.

Now the local language service of US-funded Radio Free Europe/Radio Liberty has reported that senior Kyrgyz government officials are considering how to dispute the move, setting the scene for more disagreements between the Toronto-based company and Kyrgyzstan.

The two have been locked in a protracted row for years.

Kyrgyzsan wants to increase its direct ownership of the Kumtor mine, the country’s largest economic asset.

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Copyright ©The Conway Bulletin — all rights reserved

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

Georgia sign gas deal with Iran

JULY 26 2016 (The Conway Bulletin) — Iran signed an agreement with Georgia to export gas via Armenia, Iranian official media reported. In February, Georgia had said that gas supplies from Iran would only be considered in the long term, as Azerbaijan was able to export enough gas to meet Georgia’s growing demands. With Azerbaijan’s production declining and Iran’s export to Armenia due to increase, Georgia could now find another supplier in Iran.

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Copyright ©The Conway Bulletin — all rights reserved

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

Yandex taxi to expand in Georgia and Kazakhstan

JULY 27 2016 (The Conway Bulletin) — Internet taxi service Yandex Taxi said it plans to enter the Georgian market and expand its presence across Kazakhstan from its base in Almaty. Yandex Taxi entered the Armenian market in July, triggering complaints of price dumping from the traditional taxi association in Yerevan. In June, mobile-based Uber started operations in Astana.

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

Uzbekistan extends Beeline licence

JULY 25 2016 (The Conway Bulletin) — The Uzbek government extended the telecoms licence for Beeline Uzbekistan until 2031. Beeline Uzbekistan said the extension of the licence was a key step for one of the company’s most important markets. Beeline Uzbekistan is a subsidiary of Amsterdam-based Russian telecoms company VimpelCom. In the past few months, VimpelCom has been fined millions of dollars for paying bribes to enter the Uzbek mobile market.

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Copyright ©The Conway Bulletin — all rights reserved

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

 

Turkish police arrests CEO of Azerbaijan’s state energy company for links to Gulen movement

AUG 1 2016 (The Conway Bulletin) — Turkish authorities have arrested Sadettin Korkut, former CEO of Petkim, an Azerbaijan-owned refinery on Turkey’s Mediterranean coast, in what media said was part of a purge of people linked to exiled cleric Fethullah Gulen (July 28).

Azerbaijan’s state-owned energy company SOCAR dismissed the claim, saying that the arrest was linked to a spat with another employee of SOCAR Turkey Enerji, its Turkish subsidiary.

Mr Korkut had resigned as CEO, a position he had held for four years, the day before he was arrested. Twenty-seven other employees of SOCAR’s Turkish subsidiary, which operates the Petkim refinery, were also sacked at the same time.

Turkish media immediately linked the arrest and the sackings to the Gulenist movement, which they dub a terrorist network.

“Around 200 workers from Petkim and related companies were sacked due to their alleged ties to the Gulenist Terror Organisation (FETO),” the Turkish state-run Anadolu Agency reported.

Around 60,000 public sector employees and dozens of journalists and businessmen were arrested in Turkey in the aftermath of an attempted military coup on July 15. Turkish President Recep Tayyip Erdogan accused Mr Gulen of masterminding the coup from his exile in the US.

Azerbaijan is one of Turkey’s strongest allies. It backed the arrest.

“SOCAR’s management believes that Turkey will become stronger after these difficult days. We will continue to operate and invest in Turkey with all of our energy,” Vagif Aliyev, CEO of SOCAR Turkey Enerji said in a statement.

SOCAR Turkey Enerji and SOCAR Turkey Petrokimiya own a majority stake in Petkim.

Anar Mammadov, head of SOCAR’s Greek subsidiary, has been appointed new CEO of Petkim.

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Copyright ©The Conway Bulletin — all rights reserved

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

 

GM Uzbekistan appoints new head

JULY 25 2016 (The Conway Bulletin) — Car manufacturer GM Uzbekistan appointed Rustam Razhabov as the new CEO, after months of uncertainty over the top position at the Uzbek-US joint venture. The government-linked Novosti Uzbekistana confirmed the appointment. In June, unofficial reports had said that Mr Razhabov had been detained in May in relation to a criminal scheme that brought down his predecessor, Tokhirzhon Zhalilov. State-owned Uzavtoprom owns 75% of GM Uzbekistan, US-based GM owns the rest.

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Copyright ©The Conway Bulletin — all rights reserved

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

Briefing: Gulenist links in Central Asia & S.Caucasus

AUG 1 2016 (The Conway Bulletin) — >>So, we know that the Gulen movement was big in Turkey but in Central Asia? Really? How deep is it and what does it do?

>> The movement, created by cleric Fethullah Gulen, is a social and religious group that has said it wants to integrate moderate Islam into the secular Turkish state and to replicate the model in other Muslim countries. The movement counts millions of followers. As it puts great emphasis on education and upward social mobility, the movement established a network of schools around the world, including in Central Asia and the South Caucasus.

>>OK, but who is Gulen? Wasn’t he an ally of Erdogan?

>> Turkish President Recep Tayyip Erdogan found in Gulen a strong ally when he came to power in 2003, a bulwark against a possible military backlash, something that had dogged Turkish leaders for half a century. Gulen and Erdogan, though, fell out in 2013, when a corruption scandal targeting members of Mr Erdogan’s ruling AKP party emerged. Mr Erdogan and others in his party alleged that the Gulenist members of the judiciary had orchestrated the scandal. Since then the government has cracked down on Gulenists in Turkey. Mr Gulen has lived in the United States since 1999 in a self-imposed exile. Now, after a failed coup in Turkey last month blamed on Gulen, Turkey has said it could ask the US government for the extradition of Gulen. Since the coup, Turkish police have detained over 60,000 state employees and dozens of journalists and businessmen allegedly linked to the Gulen movement.

>>Quiete a full-on assault. Will Turkey now force a crackdown on Gulen- linked institutions in Central Asia and South Caucasus?

>> In short, this bureau and the analysts we contacted all agree that Turkey will not go as far as to sever relations with countries that don’t respond to the request to shut down Gulen-linked schools. Apart from Azerbaijan, all other countries are loosely linked with Turkey. Plus, as shown in our story on page 3, these schools are a relative island of quality and reliability in the South Caucasus and Central Asia’s messy educational system. Both Kyrgyzstan and Kazakhstan have shrugged off Turkey’s requests to shut down Gulen- linked schools. Georgia appears also to have pretty much ignored Turkey’s request. Only Azerbaijan, Turkey’s super-tight ally, has gone along with Turkey’s request and closed down a TV station that had planned to run an interview with Gulen and brought under government control a university linked to the Gulen movement.

>>OK, but what about the businesses linked to Gulen?

>> The closest business link between Gulenists and the South Caucasus seems to have been uprooted immediately, with the sacking of Sadettin Korkut, chief of Petkim, a petrochemical complex in Izmir, owned by Azerbaijan’s state-owned SOCAR (See the front page of the Business News). It appears that SOCAR was also keeping a list of Gulen-linked people among its ranks. Together with Korkut, who was later arrested, around 200 other employees of SOCAR-linked companies were sacked. This, however, appears to be a one-off act of loyalty from Azerbaijan’s government to Ankara.

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Copyright ©The Conway Bulletin — all rights reserved

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

Kazakhstan-focused Nostrum drops in H1

JULY 27 2016 (The Conway Bulletin) — Kazakhstan-focused Nostrum Oil & Gas posted a 41% drop in revenues in H1 2016, compared to last year because of continued low oil prices. Production in H1 fell by 12% to an average of 38,993 barrels of oil equivalent per day. The company said that the full-year production forecast remained at an average of 40,000 barrels of oil equivalent per day.

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Copyright ©The Conway Bulletin — all rights reserved

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