JAN. 23 2014 (The Conway Bulletin) — Russian telecoms firm MTS is negotiating with Uzbekistan on possibly re-entering the country after quitting in 2012 over tax disputes, the chairman of its parent company Sistema, Vladimir Yevtushenko, told Russian media. At the same time reports say that MTS is challenging Uzbekistan in the international courts for its assets.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 22 2014 (The Conway Bulletin) — Uzbekistan will hand out visas more easily to foreign investors, media reported. Under the new rules, signed by Uzbek President Islam Karimov on Jan. 20, foreign investors will be able to obtain a multiple entry visa for their entire investment period rather than three-month-long single entry visas. This is, potentially, good news for foreign investors.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 23 2014 (The Conway Bulletin) — Azerbaijan’s Central Bank issued a stern warning to its domestic banks to tighten up checks they carry out on consumers before issuing loans. The Azerbaijani economy is booming but increasingly unsecured loans could derail this growth.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 27 2014 (The Conway Bulletin) — Output from the Chevron-led oil project Tengizchevroil rose to 27.1m tonnes in 2013 from 24.2m tonnes in 2012, media reported. The Tengiz oil field is one of the biggest in Kazakhstan and, with the giant Caspian Sea Kashagan oil project stalling, the figures are good news for the Kazakh economy.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 24 2014 (The Conway Bulletin) — Azerbaijan’s Central Bank ordered domestic banks to stop giving out loans to consumers so easily.
In a strongly worded statement, Azerbaijan’s Central Bank said lenders had not been doing enough due diligence on the financial security of consumers they were lending cash to.
“The Central Bank has assigned banks to intensify activities on issue of loans and enhance control over the field in line with responsible lending principles with an eye to further amplify banking sector’s financial sustainability,” the Azerbaijani Central Bank said.
The Central Bank appears to be reacting to a number of warnings from analysts who said that poorly secured loans and rising consumer debt are major risks to Azerbaijan’s economy.
Azerbaijan’s fuel-powered economy has picked up pace again since stumbling during the global economic crisis of 2008/9. In 2014, the economy is expected to grow by around 5%.
But overconfidence and slack controls threatens this economic growth. The Central Bank’s own figures showed that lending to consumers increased by nearly a third last year.
The Central Bank also appears to accuse commercial banks of aggressively selling loans to consumers and also warned them not to give out misleading information over the financial responsibilities of taking out loans.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 27 2014 (The Conway Bulletin) — Canadian train and plane manufacturer Bombardier plans to open an office in Astana, local media reported. By moving into Kazakhstan Bombardier highlights potential as a client. Bombardier makes passenger planes and Kazakhstan wants to bolster its air transport sector.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 23 2014 (The Conway Bulletin) — Quoting a source at the Tashkent Prosecutor’s office, the AFP news agency said that in December police arrested two managers at the Coca-Cola joint venture in Uzbekistan for stealing millions of dollars. The story has not been confirmed by Coca-Cola. Coca-Cola owns 42.9% of the joint venture.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 23 2014 (The Conway Bulletin) — Alliance Bank asked its creditors to accept a so-called haircut to keep the bank solvent. In financial terms a haircut is when creditors agree to reduce repayments. Kazakhstan’s sovereign wealth fund Samruk-Kazyna and billionaire Bulat Utemuratov are Alliance Bank’s biggest stakeholders.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 22 2014 (The Conway Bulletin) — The European Bank for Reconstruction and Development approved a $200m loan to Russian energy company Lukoil for the development of the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea. Lukoil holds a 10% stake in Shah Deniz. The shareholders in Shah Deniz want to extend the lifespan of the field.
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(News report from Issue No. 169, published on Jan. 29 2014)
JAN. 17 2014 (The Conway Bulletin) — Armenia’s government ratified a deal to sell its 20% stake in Armenian gas supplier ArmRusGazprom. The deal gives Russian gas monopoly Gazprom 100% ownership of ArmRusGazprom and, therefore, control over Armenia’s gas supply. Last year, Armenia surprised the EU by deciding to join the Russia-led Customs Union.
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(News report from Issue No. 168, published on Jan. 22 2014)