Tag Archives: business

Mangistau soars in Kazakh wage earning table

>>Stats show increase in wages but illnesses also rise>>

JAN. 22 2015 (The Conway Bulletin) — It’s a double-edged sword living in the west Kazakh region of Mangistau, according to the Kazakh stats office at least.

Mangistau, the main oil producing region of the country, has been enjoying a salary boom that other regions of Kazakhstan can only dream of. Last year the average workers’ salary in Mangistau rose by 22% to over $1,000/month. This is around 50% more than average salaries in other rural areas of the country.

Of course Mangistau’s fortunes are closely linked to the fortunes of the energy industry which has been enjoying something of a boom over the past few years. With falling oil prices, though, that could be about to change.

The stats don’t all show good news, though. Various statistics said Mangistau has the highest rate of several diseases in the country. Some environmentalists have said that people breathe and drink the by-products of uranium mining projects and the decommissioning of the old nuclear power plant in Aktau.

Worker disputes in the region also affect the region. In 2011, the town of Zhanaozen was the centre of clashes between protesters and police. At least 15 people died.

It’s a trade-off then. The salaries may be higher in Mangistau but the work pressures and the health risks are too.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)

Don’t devalue again -leading Kazakh businessman

JAN. 23 2015 (The Conway Bulletin) — Nurlan Smagulov, head of the Astana Motors car dealer and an influential businessman, stepped into the debate over the Kazakh tenge. At a press conference, he said policymakers should not devalue the currency for the second time as this would undermine its credibility and knock consumer spending.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)

Weak rule of law hurting Kazakhstan -think tank

JAN. 27 2015 (The Conway Bulletin) — The Washington-based Heritage Foundation said that weak rule of law in Kazakhstan had supressed its position in its global rankings on economic freedom. In this year’s ranking, Kazakhstan dropped six places to 69th in the list of 178 countries.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)

Corruption alleged in Uzbek telecoms

JAN. 17 2015 (The Conway Bulletin) — An anonymous whistle-blower in Norway has alleged corruption at Vimpelcom, a telecoms company a third owned by Norwegian Telenor, media reported. Telenor and Vimpelcom deny the allegations. Uzbekistan’s telecoms sector is already mired in an alleged corruption case.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Air Astana faces a difficult year, says CEO

JAN. 19 2015 (The Conway Bulletin) — Air Astana CEO Peter Foster
said 2015 would be a tough year because of economic and political
turmoil across the region. His comments highlight the uncertainty
that businesses are facing. Last year, Air Astana increased its
passenger traffic by 3%. Profit rose by 35% from 2013, mainly
because of a drop in oil price.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Kazakh president summons econ chief for crisis talks

>>Nazarbayev summons his chief economic lieutenant for talks>>

JAN. 16 2015 (The Conway Bulletin) — Kazakh president Nursultan
Nazarbayev summoned the head of Samruk Kazyna, the country’s
sovereign wealth fund, for crisis talks over the falling price of
oil and the drop in the value of the Russian rouble.

The meeting highlights just how worried Mr Nazarbayev and his
senior ministers are about the recent economic downturn. Most major
financial institutions now expect the Kazakh economy to grow by
only 1.5% this year, a relatively small amount.

When Mr Nazarbayev announced last year a new economic policy, he
aimed to enter the New Year with a Keynesian industrial programme
that would have injected billions into construction projects and
subsidies.

Currency depreciations and oil markets, however, have shattered the
plan.

After his meeting with Mr Nazarbayev, Umirzak Shukeyev, the Samruk
Kazyna chief, said: “The goal is to reduce administrative costs by
20% and investment engagements by 18%.”

This, then, is the opposite of what had been promised.

The most feared buzzwords on the streets from Almaty to Atyrau are
devaluation and austerity. Several consulting and investment firms
have forecast a devaluation in the first quarter. The research
branch of Kazakhstan’s second largest lender, Halyk Bank, told
Bloomberg that they deem a depreciation of the tenge as inevitable.

The leader of the National Business Association, Rakhim Oshakbayev
publicly asked the government to protect private companies from the
risk of devaluation (Jan. 20).

In Kazakhstan, the government is expected to act to reverse the
economic downturn but with no significant increase in hydrocarbon
and commodity output, its only option is to dig into the reserves
of the sovereign fund and hope for the best, or so it often seems.

ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Oil output from Azerbaijan’s ACG falls

JAN. 16 2015 (The Conway Bulletin) — Oil production at the BP-led Azeri, Chirag and Guneshli oil fields (ACG) continued to fall last year despite pledges that the drop would drop, Reuters quoted a source at Azerbaijan’s national statistics office as saying. ACG is Azerbaijan’s largest oil field.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Tajik electricity exports rise

JAN. 20 2015 (The Conway Bulletin) — Tajikistan’s electricity exports to Afghanistan increased by 38% last year compared to 2013, the Tajik news agency Avesta reported. This is important because hydroelectric power has the potential to become one of Tajikistan’s biggest exports. It needs a stable Afghanistan and Pakistan to realise this potential.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Uzbek car sales to Russia drop

JAN. 19 2015 (The Conway Bulletin) — GM Uzbekistan sold 38% fewer cars in Russia in 2014 than it did in 2013, media reported quoting the European Businesses Association. The data highlights the impact that the falling rouble and the economic turmoil in Russia is having across the former Soviet Union. Russia is GM Uzbekistan’s biggest market.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Armenian economy to stagnate

JAN. 15 2015 (The Conway Bulletin) — The inter-government European Bank for Reconstruction and Development (EBRD) said the fall in the Russian rouble and a general economic downturn will knock Armenia’s economy into a recession this year. Armenia’s economy is particularly tied into Russia’s fortunes.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)