Tag Archives: business

Akishev was groomed for Kazakh Central Bank top job

NOV. 2 2015 (The Conway Bulletin) – Daniyar Akishev’s promotion to head the Kazakh Central Bank may have taken observers by surprise but to those who know the 39-year-old, it is a job he has been groomed for.

Mr Akishev is a veteran of the Central Bank, where he worked in various positions from 1996 to 2014 before moving to the Akorda as economic adviser to President Nursultan Nazarbayev.

In 2007 Mr Akishev was rumoured to be in pole-position for taking on the role of new chief of the financial regulator.

Instead has was named deputy head of the Central Bank, a position he held for seven years, under three different bosses.

In particular, Central Bank insiders said he achieved professional maturity under Grigori Marchenko, a respected liberal economist, who often clashed with Mr Nazarbayev on economic policies.

There have been wobbles, though, in Mr Akishev’s rise to the top. In December 2008, ominously, he said the economic situation was ideal for Kazakhstan.

“The Central Bank has no problems with the exchange rate of the tenge, quite the contrary,” he told RIA Novosti in an interview.

Two months later, the Bank devalued the tenge by 19%.

Media quoted some local analysts as saying that Mr Akishev lacks independence because of his young age and his lack of political authority. But Mr Akishev is the same age as Mr Marchenko was when he was named head of the Central Bank for the first time in 1999 and is five years older than Oraz Dzhandosov was, when he became Central Bank chief in 1996.

Mr Akishev’s predecessor, Kairat Kelimbetov, who held the job for two years during which the tenge lost half its value, had a different profile and no background at the Central Bank.

Mr Akishev might have accepted possibly the toughest job in Kazakhstan, but he is also one of the few people in the country with the experience and background to take it on.

ENDS

(News report from Issue No. 255, published on Nov. 6 2015)

Tele2 and Kazakhstan’s Altel team up to establish new mobile company

NOV. 4 2015 (The Conway Bulletin) — Swedish telecoms company Tele2 said it will create a joint venture with Kazakhstan’s Altel to grab market share and monopolise access to 4G technology, a bold move in a region where corruption scandals have scarred rival Nordic companies.

Tele2 Kazakhstan is the third-largest operator in the country, after TeliaSonera’s Kcell and VimpelCom’s Beeline (Norwegian Telenor owns a 33% stake in VimpelCom). Altel is a subsidiary of Kazakhstan’s state-owned Kazakhtelecom and the only operator with a 4G licence in the country.

Tele2’s CEO, Alison Kirkby, said that the deal will give the company a major lift and position it to attract more customers.

“This transaction will enable our customers to gain access to Altel’s 4G network and to benefit from its accelerated rollout across Kazakhstan,” Ms Kirkby said of the joint venture.

In the past two months, TeliaSonera and Telenor have said they want to sell off their assets in Central Asia and the South Caucasus after US and Dutch authorities started investigations into corruption allegations in Uzbekistan. Tele2 have, possibly, spotted an opportunity and decided to push to form a joint venture with Altel.

But it will be tough, as price battles have pushed down profit margins in the telecoms sector in the past two years. In July, former Tele2 CEO Mats Granryd said: “Kazakhstan is turning into a real bloodbath when it comes to pricing.”

When the joint venture is formalised in 2016, Tele2 will own a 49% stake and will also be the company’s operator. Pietari Kivikko, Tele2 Kazakhstan’s chairman, will serve as the top manager in the new joint venture.

The depreciation of the tenge in August, after the Central Bank cut its US dollar peg, has hit profits at telecoms companies which earn tenge but accrue costs in foreign currencies.

This year, Tele2 Kazakhstan has fared better than the competition. In Q3, it increased its revenue by 34% compared to last year and in the first nine months of 2015, it increased its customer base by 33% to over 4m users.

ENDS

(News report from Issue No. 255, published on Nov. 6 2015)

Petronas shows interest in pumping Azerbaijani gas

NOV. 4 2015 (The Conway Bulletin) — Malaysia’s energy company Petronas said it is interested in buying stakes in the TANAP and TAP pipelines pumping gas from Azerbaijan to Europe. In April, Petronas bought Statoil’s 15.5% stake inAzerbaijan’s main gas field, Shah Deniz.

ENDS

(News report from Issue No. 255, published on Nov. 6 2015)

Tajik-Japanese joint venture to build factory

OCT. 29 2015 (The Conway Bulletin) — Avvalin, a joint-venture between Japan’s Cokey Systems and the Tajik government, wants to build a factory to produce liquorice root-based medicines. Tajikistan produces liquorice in the south-west of the country. The Tajik government owns 51% of Avvalin. Cokey owns 49%.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Kazakh car imports halve

OCT. 29 2015 (The Conway Bulletin) – In Jan.-Aug. 2015, Kazakhstan imported 54,000 cars, roughly half the amount of cars imported during the same period last year. Russia accounted for 85% of the car import market. Between January and August, the Kazakh tenge was overvalued against the rouble, making imports from Russia cheap. The Kazakh Central Bank effectively devalued the tenge in August.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

US blocks Korea- Uzbekistan fight jet deal

OCT. 26 2015 (The Conway Bulletin) – The US government has blocked Korea Aerospace Industries (KAI) , a South Korean firm, from selling a dozen T-50 Golden Eagle training fighter jets to Uzbekistan for $400m, the Korea Times newspaper reported.

Washington was reportedly concerned that technology used in T50s, which was co-developed by KAI and the US’ Lockheed Martin a decade ago, could be handed over to Russia.

“KAI has been in negotiations with the Uzbek government to export the supersonic trainers, but the US government is opposing the deal, citing possible technology leakage and diplomatic policy,” the Korea Times source said.

Uzbekistan is a member of the Shanghai Cooperation Organisation but not the Collective Security Treaty Organisation, a Russia-dominated military bloc of former Soviet countries.

Russian military analyst Pavel Felgenhauer told the US-funded Radio Free Europe/Radio Liberty that the US’ worries were understandable.

“The decision has nothing to do with Uzbekistan. But Uzbekistan is a country in the Russian sphere of influence,” he was quoted as saying.

If confirmed, the ban on the sale of the T-50s to Tashkent could overshadow a planned visit by US Secretary of State John Kerry to Samarkand on Nov. 1.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Azerbaijan’s SOCAR signs contract with France’s Axens

OCT. 28 2015 (The Conway Bulletin) — Azerbaijan’s state-owned energy company SOCAR signed a contract with French industrial group Axens to build new units at the Heydar Aliyev refinery near Baku. This is part of a $16.5b project to modernise the Baku refinery and boost production of petroleum products. Axens will build new diesel fuel and gas hydro-treating units at the refinery.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Smuggled petroleum flows into Kyrgyzstan

OCT. 28 2015 (The Conway Bulletin) – The amount of smuggled petroleum products flowing into Kyrgyzstan from Kazakhstan has increased enormously since the country joined the Kremlin-led Eurasian Economic Union in August, Melis Turgunbayev, director of state-owned energy company Kyrgyzneftegaz, said. He said the flood of smuggled goods had halved the trade in legally imported petroleum products.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Kazakh miner to hit target

OCT. 29 2015 (The Conway Bulletin) — London-listed miner KAZ Minerals, formerly known as Kazakhmys, said it is on track to meet its production targets for 2015, despite a slight fall in production during the first nine months of the year. KAZ Minerals also said that it had increased its net debt by 18.8% to $1.9b in Q3. The company may be bullish on output at its copper and zinc mines in Kazakhstan but it has been hit by a fall in commodity prices.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)

Apple opens in Georgia

OCT. 23 2015 (The Conway Bulletin) — US-based Apple will open an official rep office in Georgia in November, ending a decade-long absence in Tbilisi. Company representatives said the rep store will solve warranty issues for customers, who were previously forced to go to neighbouring countries to buy Apple products with a valid warranty. The new Tbilisi office is not one of Apple’s iconic spacious, gleaming shops.

ENDS

(News report from Issue No. 254, published on Oct. 30 2015)