Tag Archives: business

Coronavirus forces closure of Kazatomprom mines

JAN. 20 2021 (The Bulletin) — Kazatomprom, Kazakhstan’s majority state-owned uranium miner, suspended operations at two of its mines in the south of the country after workers tested positive for the coronavirus. Kazatomprom didn’t say how many workers had contracted the coronavirus at its sites in the Turkestan region, nor for how long they will be closed for. Kazatomprom also didn’t say what effect the closures would have on output.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Gazprom increases gas purchases from Turkmenistan

JAN. 20 2021 (The Bulletin) — Russia’s Gazprom increased gas imports from Turkmenistan in 2020, although these exports still only measure around a tenth of the value of China’s gas purchases from Turkmenistan, but cut purchases from Kazakhstan and Uzbekistan, media reported. Demand for gas in Russia has dropped because of the coronavirus pandemic.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbek refinery workers protest over job threat

JAN. 19 2021 (The Bulletin) — Workers at the Altyaryk oil refining plant in Uzbekistan’s Ferghana Valley have been striking and staging sit-ins since Jan. 10 because of what they say are planned job cuts, media reported. The refinery management has said that it is modernising the plant to upgrade it to Euro-5 standard fuel production and that jobs will be preserved. Workers, though, told the Eurasianet website that there hasn’t been any fuel production since July and that 2,000 jobs will be lost.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Turkey ratifies free trade deal with Azerbaijan

BAKU/JAN. 19 2021 (The Bulletin) —  — Turkey’s parliament ratified a free trade agreement with Azerbaijan, part of a plan to boost bilateral trade by five or six times over the next couple of years.

The free trade deal was originally signed by Azerbaijani President Ilham Aliyev and Turkish President Recep Tayyip Erdogan in February last year. Since then the coronavirus has slowed global trade but Azerbaijan’s victory, supported by Turkey, in a war against Armenia has accelerated increasingly close relations.

Turkish media reported that the free trade deal will allow quotas and customs to be lifted on certain goods. Turkey’s main exports to Azerbaijan are machinery, construction materials and mechanical appliances.

And media in Azerbaijan has reported that Azerbaijani President Ilham Aliyev said that he would prioritise handing contracts to rebuilding Nagorno-Karabakh to Turkish companies in what appears to be a clear statement of gratitude for Turkish support in Azerbaijan’s war with Armenia in 2020. 

One of the first deals to be announced was a $50m investment by Turkey into a textile factory in Nagorno-Karabakh.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Azeraijan and Iran extend railway cooperation

JAN. 19 2021 (The Bulletin) — Azerbaijan and Iran signed a deal to extend their cooperation in the railway sector, media reported. Iran has increasingly tried to engage its neighbours in the South Caucasus. Azerbaijan-Iran relations have improved over the past five years or so and the heads of their railway companies emphasised the importance of the Rasht-Astara cross border railway link. 

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Fuel prices rising in Tajikistan

JAN. 18 2021 (The Bulletin) — Fuel prices are rising in Tajikistan, media reported by quoting local taxi drivers who said that there had been a 10% increase in the past week. Analysts said that the fuel price increase is linked to a drop in imports of fuel from Russia and Kazakhstan. Tajikistan does not have its own oil refinery and is reliant on imports.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Power outages dent Kazakh oil exports

JAN. 18 2021 (The Bulletin) — Power outages in Kazakhstan have caused Kazakh oil exports to fall by around 130,000 barrels per day, Reuters reported by quoting a source. The source said that power outage problems were impacting production at the country’s two main fields, Tengiz and Kashagan, in the west of the country. From Jan. 17, the source said, Kazakhstan had been pumping 1.62m barrels of oil per day, down from its target of 1.75m.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbekistan says wants to reform power sector; three workers killed

TASHKENT/JAN. 18 2021 (The Bulletin) — Uzbekistan’s government announced a raft of reforms to its under-pressure power production sector that it hopes will fix outages that have caused shortages and disrupted supplies this winter.

But, a couple of days after publishing its plans to build nine new power plants and to tear down a government monopoly that has run the power generation system in Uzbekistan since it was set up in the Soviet Union, news filtered through that a blast at a thermal power plant had killed three workers.

Media reports said that the three workers were part of a team that were renovating and upgrading the Angren thermal power plant, renovated in 2016 by a Chinese company, near the Uzbek capital.

The blast was triggered by a mixture of coal and dust and air, the Uzbek emergencies ministry said, and immediately highlighted what campaigners have said is the cavalier attitude of Uzbek officials to health and safety issues.

Demand for power in Uzbekistan has soared this year, driven up by rising living standards and also an exceptionally cold winter. The shortages have triggered protest across the country and blackouts that have hit industry and dented confidence in the government which has resorted to buying extra supplies from neighbouring countries. 

As well as commissioning nine new thermal power stations across the country, the most populous in Central Asia, the Uzbek government also said that it would issue permits to private companies to import electricity and to set up an internal market system. 

Analysts said that this was an important step towards the market reform needed to strip away a central Soviet system. They have said that the centralised system is cumbersome and not nimble enough to respond to large increases in demand, both seasonal and systemic.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Turkmenistan opens new gas compressor station

JAN. 16 2021 (The Bulletin) — Turkmenistan opened a new compressor station that it said would double the volume of gas pumped to China. Gas is the cornerstone of Turkmenistan’s economy and China is, by a wide margin, its largest client. The coronavirus, and the various measures taken to counter it, have forced a slump in demand for gas from China, hurting the Turkmen economy. Turkmen president Kurbanguly Berdymukhamedov said that the compressor station would double the volume of gas that could be pumped to China.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021

Azerbaijan commissions new Central Bank HQ

JAN. 15 2021 (The Bulletin) — In a show of confidence in its Central Bank which was derided by ordinary Azerbaijanis six years ago for allowing the manat to devalue twice in 12 months, Azerbaijan’s government commissioned the construction of a new $265m and 37-storey headquarters for it. Building work, by Turkish construction company Tekfen, is expected to take three years.

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— This story was first published in issue 469 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2021