Tag Archives: business

Stock market: Tethys and Olisol

FEB. 22 2016 (The Conway Bulletin) — Tethys shares have surged back from their historical low of 1.63p after the company announced a change in the agreement with Olisol, which will allow Tethys to raise cash via a loan in Kazakhstan.

John Bell, Tethys’ executive chairman said that “in entering into this agreement, Tethys has gained a strong in-country strategic partner which has committed to remaining a minority shareholder.”

Olisol has thus finally and concretely become Tethys’ partner. After months of sustained low oil prices and fickle exploration and production data, Tethys was looking for a cash injection to finance its operation and restore investors’ trust.

Now Olisol and, likely, Bank RBK will complete a loan transaction for $10m and the deal with Olisol will go ahead as agreed last November. The entire deal should be completed within the next two months, according to Tethys.

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(News report from Issue No. 269, published on  Feb. 26 2016)

Pegasus expoands to Azerbaijan

FEB. 23 2016 (The Conway Bulletin) — Turkish airline Pegasus said it will launch its new Istanbul-Gabala route to Azerbaijan on March 18. Pegasus will fly to the town of Gabala, in central Azerbaijan, three times a week.

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(News report from Issue No. 269, published on  Feb. 26 2016)

 

Finally, McDonald’s set to open in Kazakhstan

ALMATY, FEB. 25 2016 (The Conway Bulletin) — McDonald’s said it will open its first restaurant in Kazakhstan on March 8 in central Astana, concluding the US food giant’s lengthy process for entering the Kazakh market.

The company previously said it planned to open its first restaurant in the second half of 2015. After years of rumours as to when McDonald’s would come to Kazakhstan, its first restaurant is now ready to open its doors.

The company plans to open a total of 16 restaurants in the next five years across the country.

In Kazakhstan, McDonald’s will partner with Kairat Boranbayev, a former head of Russo-Kazakh energy joint venture KazRosGas. Mr Boranbayev is also close to Kazakh President Nursultan Nazarbayev. His daughter Alima married Mr Nazarbayev’s grandson Aisultan.

McDonald’s said Mr Boranbayev’s involvement is purely related to business.

“Kairat [Boranbayev] has a diverse business background and a proven track record of running successful business ventures in his home country as well as our restaurants in Belarus,” Khamzat Khasbulatov, McDonald’s director in Russia, said in a statement.

In Kazakhstan, McDonald’s will face competition from KFC, Burger King and Hardee’s.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 269, published on  Feb. 26 2016)

Kazakh Parliament to discuss neew subsoil law

FEB. 23 2016 (The Conway Bulletin) – A new subsoil law in Kazakhstan, which Western investors hope will reduce costs and improve access to geological information, will be presented to parliament within the next few months, Aset Magauov, the deputy energy minister said. Kazakhstan has been developing a new subsoil law for the past 18 months.

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(News report from Issue No. 269, published on Feb. 26 2016)

 

Editorial: Azerbaijan and potatoes

FEB. 26 2016 (The Conway Bulletin) – Azerbaijan,it could be said, is caught between a rock and a hard place.

Two of its allies are at loggerheads and now Russia has accused it of trying to help shift potatoes around sanctions it imposed on Turkey after a Turkish warplane shot down a Russian warplane over Syria.

Azerbaijani businesses are having a tough time. The economic downturn has been tough on them and the prospect of earning a percentage may have been too much for them to ignore. Of course, they may also have just wanted to help out their regional Big Brother, Turkey.

Whatever the reason, the accusation from Moscow has thrown a spotlight on Central Asia and the South Caucasus over their sanction-beating roles.

Last year, Baltic suppliers sent dairy products to Uzbekistan for re-export to Kazakhstan and then to Russia, circumventing Western sanctions against Russia. This year Aktau port said shipments from Turkey had increased by 10-times, although they didn’t say goods were being sent on to Russia.

The region, it appears, has become a transit hub for Russia-bound goods.

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(Editorial from Issue No. 269, published on Feb. 26 2016)

 

Russia accuses Azerbaijan of aiding Turkey

FEB. 23 2016 (The Conway Bulletin) – Russia’s agricultural watchdog accused Azerbaijan of re-exporting potatoes from Turkey to Russia to help their Turkish allies beat Russian sanctions.

This is the first time that Russia has accused a country from Central Asia and the South Caucasus, which have loyalties to both the Kremlin and Ankara, of helping Turkey dodge sanctions imposed last year after a Turkish fighter-jet shot down a Russian fighter-jet over Syria.

“After inspecting the food shipments coming from Azerbaijan and Iran to ensure their commitment to Russia’s decision to prevent the import of agricultural products from Turkey, we have noted that Azerbaijan has doubled its potato shipments to our country by five times since last January,” Sergei Dankvet, head of the agricultural watchdog, told media.

He also said Russia had complained to Azerbaijan and warned it of potential consequences. Companies in the Baltics have previously used Central Asia to skip EU sanctions to send their dairy goods to Russia.

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(News report from Issue No. 269, published on Jan. 26 2016)

 

Uzbekistan finishes railway

FEB. 25 2016 (The Conway Bulletin) – Uzbek officials said that work on a $1.63b railway section in the Fergana Valley had been completed, meaning that trains can now travel from Tashkent without having to pass through Tajikistan.

Although the cost of the 123km track is high, driven up by kilometres of tunnels and bridges that were needed to breach the mountainous terrain, for Uzbekistan cutting out the irritation of having to deal with Tajikistan makes it worth it.

Uzbekistan and Tajikistan have been at loggerheads since the breakup of the Soviet Union in 1991.

At its core, Uzbekistan worried about Tajik plans to build hydropower dams across rivers that feed Uzbekistan’s cotton crops. Tajikistan doesn’t like Uzbekistan’s unilateral stance.

This impacted rail traffic, which steadily dropped off.

The World Bank estimated the route will transport 600,000 people and 5 tonnes of freight every year. The project also underlines the financial might of China in the region. It paid $350m of the cost of the project, the World Bank paid $190m and the Uzbek government covered the rest.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 269, published on Feb. 26 2016)

Armenia receives arms loan

FEB. 19 2016 (The Conway Bulletin) – Russia has agreed to give Armenia a $200m loan to buy weapons from Russian arms manufacturers, media reported. Under the terms of the deal, Armenia will use the loan to pay for Smerch rocket launchers, Igla-S air-defense systems, radar-jamming systems, sniper rifles, and armoured vehicles. Armenia will pay for 10% of the weapons, while Russia’s credit would cover the rest. Armenia is still at war over the disputed region of Nagorno-Karabakh. The day after the deal was signed, Azerbaijan said that it had made a formal complaint to Russia that its arms deal with Armenia would upset the delicate military equilibrium in the region.

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(News report from Issue No. 269, published on Feb. 26 2016)

 

 

Azerbaijan cancels $16.5b petrochemical project

FEB. 19 2016 (The Conway Bulletin) — Azerbaijan’s state-owned energy company SOCAR said it had halted a multi-billion dollar project to develop the OGPC petrochemical complex at Sangachal, 40km south of Baku, because of sustained low oil prices, dealing a major blow to the country’s economic outlook.

SOCAR’s vice president Tofig Gahramanov said the company had stopped construction on the complex that was once valued at $16.5b and feted as the project that would transform Azerbaijan into the region’s biggest producer of refined products.

“We can say that active work on the OGPC project has been temporarily frozen,” Mr Gahramanov told Reuters in an interview.

Last month, in Kazakhstan, South Korea’s LG Chem cancelled a $4.2b project to build a petrochemical plant on the Caspian Sea coast.

Initially, the OGPC project near Baku, included an oil refinery which was later dropped, bringing the cost of construction down to $7b.

Japan’s Mitsui signed a preliminary memorandum to take part in the project last year. Last year, the Britain-based unit of US’ Fluor Group was selected as the lead contractor on the project. Fluor UK declined to comment when contacted by The Conway Bulletin.

The economic downturn has hit Azerbaijan hard. The manat currency has lost around 50% of its value and, with oil prices still low, the project was simply too costly for the state budget.

And the impact of SOCAR’s decision to freeze, or scrap, plans to build the petrochemical complex will be felt far and wide.

This was one of the biggest projects in the region and dozens of Western companies will have been lined up to work on it.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 269, published on  Feb. 26 2016)

 

Iranians welcome Georgia’s new visa rules

FEB. 25 2016, TBILISI (The Conway Bulletin) — Iranians already living in Tbilisi have welcomed Georgia’s decision to lift visa restrictions.

Over the last six years, Iranian restaurants, shops and travel agencies have sprung up along the streets of Georgia’s capital. Iranians had viewed Georgia as a soft way around sanctions and also as a place to taste a more Western lifestyle. And Georgia, in turn, had welcomed the tourists and businessmen from Iran, even dropping visa restrictions in 2011 before, under US pressure, re-imposing them two years later.

Like the rest of the South Caucasus region, Iran wants to expand and strengthen its relations with Georgia. Now, with sanctions on Iran being lifted earlier this year, Georgia’s government said this month that it had lifted visa rules.

Iranians, with their distinct hair- styles and tighter, more colourful clothes compared to the dowdy black favoured by Georgians, an increasingly frequent sight in Georgia.

Most welcomed improved ties between Georgia and Iran.

Sahar, a 40-year-old Iranian living in Tbilisi was working in a bar.

“The visa free regime is a first step in strengthening regional cooperation, and was initiated by president Rouhani. He thinks it’s important that life of its citizens living outside of Iran is not difficult. And he sees it as a first step in increased economic relations,” she said between pouring glasses of beer for her customers.

Sahar, who applied for refugee status a year ago, is happy about the developments said that she had been living in Georgia for three years and that relaxing the visa system would increase the amount if Iranians travelling to Georgia.

“Tbilisi is similar, architecturally, to Tehran, I feel at home. But at least here I can be myself, be free,” she said. “My friends feel the same, a lot of them are talking about visiting Georgia for a few months, to breath, to get some air.”

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 269, published on Feb. 26 2016)