Tag Archives: business

Kyrgyzstan sells national gas company

DEC. 20 2012 (The Conway Bulletin) – Russia’s energy monopoly, Gazprom, bought Kyrgyzstan’s national gas company for $1 in what appeared at a first glance to be a simple bargain buy.

Strategically, though, Gazprom’s buyout of Kyrgyzgaz is far more than just a drive to increase its customer base. The buyout has also strengthened the Kremlin’s leverage over Kyrgyzstan where Russia is battling with the US and China for influence.

Russia and the US have airbases in Kyrgyzstan while China has won favour by funding infrastructure projects. Influence over Kyrgyzstan is considered key to influence over Central Asia.

Kyrgyzstan is one of the poorest countries in the former Soviet Union, relying on remittances and a handful of mines to prop up its economy. Its, mainly Soviet-built, infrastructure is crumbling, including the gas system.

Thousands of Bishkek residents have had to shiver through this winter after neighbouring Kazakhstan cut gas supplies over Kyrgyzstan’s unpaid debt. This is dangerous for Kyrgyzstan’s leaders as energy shortages tend to bring people out on to the streets and even trigger revolutions. They needed a solution and turned to Moscow.

In return, Russia’s control over Kyrgyz gas potentially gives it enormous power.

ENDS

(News report from Issue No. 118, published on Dec. 28 2012)

Turkmenistan to increase gas exports to Iran

DEC. 19 2012 (The Conway Bulletin) – Iran’s official Fars news agency reported that senior energy officials had visited their Turkmen counterparts in Ashgabat to discuss increasing gas imports from Turkmenistan. Despite occasional rows over payments, Turkmenistan has steadily increased gas exports to Iran over the past few years. The Fars report may be a sign that more is to come.

ENDS

(News report from Issue No. 118, published on Dec. 28 2012)

Incestigations continue on TeliaSonera’s 3G license in Uzbekistan

DEC. 12 2012 (The Conway Bulletin) – Prosecutors investigating a deal in 2007 by Swedish telecoms company TeliaSonera to buy a 3G licence in Uzbekistan through a Gibraltar- registered company linked to the daughter of Uzbek president Islam Karimov have interviewed two of the company’s employees, media reported. TeliaSonera has denied any wrong-doing.

ENDS

(News report from Issue No. 117, published on Dec. 14 2012)

Kazakh and Uzbek culture of corruption emerges, again

DEC. 12 2012 (The Conway Bulletin) – German steelmaker ThyssenKrupp sacked three executives for their role in alleged bribe paying in Kazakhstan and Uzbekistan to win contracts, media reported. The news once again highlights a culture of corruption that still exists in Central Asia.

ENDS

(News report from Issue No. 117, published on Dec. 14 2012)

Kyrgyzstan hosts SCO meeting

DEC. 4 2012 (The Conway Bulletin) – PMs of members of the Russia, China lead Shanghai Cooperation Organisation (SCO), which focuses on Central Asia, met in Bishkek. China’s Wen Jiabao also met privately with Kyrgyz PM, Zhantoro Satybaldiyev. They discussed China’s future investment in Kyrgyzstan, and a potential trans Central Asia pipeline.

ENDS

(News report from Issue No. 116, published on Dec. 7 2012)

TeliaSonera sells stake in Kazakhstan’s Kcell on the LSE

DEC. 11 2012 (The Conway Bulletin) – Swedish telecoms company TeliaSonera earned $525m from the sale of its 25% stake in Kcell, Kazakhstan’s largest mobile operator, in an IPO in London. This is slightly lower than some analysts had anticipated when TeliaSonera announced the sale last month.

ENDS

(News report from Issue No. 117, published on Dec. 14 2012)

Kazakhstan’s Kazmunaigas stands aside India’s oil deal

NOV. 26 2012 (The Conway Bulletin) – Touted as an emerging superpower, India has still appeared sluggish in exerting its influence over Central Asia.

India’s moves in the region had been either incremental, such as talks with Kyrgyzstan and Tajikistan on military cooperation, or long term, such as the TAPI pipeline which will, if everything goes to plan, pump gas from Turkmenistan across Afghanistan and Pakistan to India.

This week, though, India took a giant leap forward in cementing real influence in the region. US energy company ConocoPhillips said it intended to sell its 8.4% stake in the Kashagan oil field development project not to Kazakh state energy company KazMunaiGas but to India’s state-run ONGC.

This is significant as KazMunaiGas would have had the first option to buy the stake. Instead, KazMunaiGas appears to have stood aside to allow ONGC in, although this could still change. It’s going to cost ONGC a reported $5b but with it comes significant influence. Kashagan is Kazakhstan’s most high-profile and prestigious energy project.

Websites have also reported that India wants to invest directly into Turkmenistan’s gas fields. If confirmed, this would be more evidence of India’s stirring ambition in the region.

ENDS

(News report from Issue No. 115, published on Nov. 30 2012)

Oil flows drop in Azerbaijan

NOV. 28 2012 (The Conway Bulletin) – Azerbaijan produced 2.2% less oil in the first 10 months of the year compared to the same period in 2011, official data showed. Gas production also dropped. Azerbaijani officials have heaped most of the blame onto BP which is managing the under-performing Azeri-Chirag- Guneshli Caspian Sea field.

ENDS

(News report from Issue No. 115, published on Nov. 30 2012)

Kyrgyz villagers attack foreign mine

NOV. 29 2012 (The Conway Bulletin) – Villagers in south Kyrgyzstan have attacked and set fire to a camp used by geologists working for a Russian gold mining company, Reuters reported, dealing another blow to foreign investor confidence. Local people have previously attacked foreign mining operations, blaming them for environmental damage.

ENDS

(News report from Issue No. 115, published on Nov. 30 2012)

Petrol shortage creates long queues in Uzbekistan

NOV. 23 2012 (The Conway Bulletin) – Fuel shortages are creating frustration and long queues outside petrol stations in Uzbekistan, local media reported. The scenario is a repeat of last year. The actual trigger for the shortages is unclear although most people blame a combination of poor infrastructure and official corruption.

ENDS

(News report from Issue No. 115, published on Nov. 30 2012)