Tag Archives: business

Georgian PM flies to Ashgabat for talks

AUG. 30 2017 (The Conway Bulletin) — Georgian PM Giorgi Kvirikashvili flew to Ashgabat for talks with Turkmen president Kurbanguly Berdymukhamedov that focused on transit cooperation and various energy projects. Turkmenistan has become increasingly vocal about using the Caspian Sea transit route to export gas. Georgia is key stage-post on this route as it hosts pipelines running from Baku and the Black Sea port of Batumi is a major entrance into, and exit from, the region.

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(News report from Issue No. 342, published on Sept. 7 2017)

China considers building $300m smelter in Armenia

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AUG. 31 2017 (The Conway Bulletin) — Armenia is discussing a potential $300m investment with China to build a copper smelting plant, media quoted Armenian economic development minister Suren Karayan as saying. China has been increasingly busy in pushing its investment portfolio in Armenia. It wants to boost its presence across Central Asia and the South Caucasus as part of its “Belt and Road” trade strategy.

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(News report from Issue No. 342, published on Sept. 7 2017)

BP says operations resume at Azerbaijan’s Shah Deniz

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AUG. 14 2017 (The Conway Bulletin) — BP said that it had resumed pumping gas out of the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea after a two week planned maintenance period closed the operation. The Shah Deniz gas field is Azerbaijan’s main gas field and is being expanded to send gas to Europe. Its second phase expansion is seen as critical to future European gas supplies,

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(News report from Issue No. 342, published on Sept. 7 2017)

Senior Central Bank official named head of Kazakhstan’s Kazatomprom

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AUG. 31 2017 (The Conway Bulletin) — Galymzhan Pirmatov, formerly deputy chairman of the Kazakh Central Bank, was named head of Kazatompron, Kazakhstan’s atomic energy agency, replacing Askar Zhumagaliyev who was made a deputy PM earlier in August (Aug. 31). Kazatomprom is a high profile company in Kazakhstan, with Pres. Nursultan Nazarbayev pushing nuclear power and uranium mining. Mr Pirmatov has previously been a VP at Kazatomprom.

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(News report from Issue No. 342, published on Sept. 7 2017)

Gazprom opens new gas pipeline in Kyrgyzstan

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BISHKEK, AUG. 30 2017 (The Conway Bulletin) — Gazprom CEO Alexey Miller officially unveiled a renovated section of the gas pipeline that pumps gas from Bukhara in Uzbekistan to Kyrgyzstan and on to Kazakhstan.

The pipeline renovation is seen as a major piece of regional infrastructure that should improve access to heat and electricity for residents of Bishkek and other Kyrgyz cities. It also highlights the power of Gazprom in the region. It bought the Kyrgyz gas distribution business in Kyrgyzstan in 2013 for a symbolic $1, promising to improve its performance.

The opening of the new pipeline will go along way to making good on this promise and also towards strengthening Russia’s soft power impact in the region.

“The reconstruction of the Kyrgyz section of the Bukhara Gas-Bearing Province – Tashkent – Bishkek – Almaty gas pipeline has taken us to the next level in terms of reliability of gas supplies not only to the north of the Kyrgyz Republic, but also to the south of Kazakhstan,” media quoted Mr Miller as saying.

Gazprom officials said that the capacity of the pipeline had been doubled and that nearly 2,000 extra homes in Kyrgyzstan had been added to the mains gas network.
Kyrgyz president Almazbek Atambayev was also at the opening ceremony of the pipeline. His presence underscored the pipeline’s significance and also how it connects neighbours with often fractious relations. Previously, under Islam Karimov, Uzbekistan had withheld gas deliveries to Kyrgyzstan as a weapon.

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(News report from Issue No. 342, published on Sept. 7 2017)

Israeli drone-maker may have attacked Armenian soldiers

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AUG. 29 2017 (The Conway Bulletin) –The Israeli government has suspended the licence of weapons manufacturer Aeronautics Defense Systems for allegedly showing off a new drone weapon to Azerbaijani clients by attacking Armenian forces in the disputed region of Nagorno-Karabakh.

The case shows both the growing military partnership between Israel and Azerbaijan and also the lengths that Israeli defence companies will go to win contracts with their Azerbaijani counterparts.

Aeronautics Defense Systems made the disclosure to the Israeli stock market.
“The Defense Ministry’s Defense Export Controls Agency informed the company that it was suspending the marketing and export permit for the company’s Orbiter 1K model UAV to a significant customer,” it said in a statement.

A couple of weeks earlier, Israeli newspaper had reported on a leaked complaint made to the Israeli defence ministry. It said that officials from Aeronautics Defense Systems had travelled to Azerbaijan in July to show off their Orbiter 1K suicide drone that is packed with explosives and deliberately flown into an enemy position.

During the demonstration, the reports said, Azerbaijani officials asked Aeronautics Defense Systems to attack an Armenian position in the disputed region of Nagorno-Karabakh. The two controllers of the drone refused but two other members of the Aeronautics Defense Systems team took the controls and attacked the Armenian position.

The alliance between Azerbaijan and Israel has been growing. Azerbaijan is one of the biggest importers of Israeli military kit and in 2012 Israel also reportedly made a deal with Azerbaijan to use its airbases in a preemptive attack on neighbouring Iran.
Armenia-backed forces currently control the disputed region of Nagorno-Karabakh which hey fought over in the 1990s.

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(News report from Issue No. 342, published on Sept. 7 2017)

Bomdardier-Azerbaijan corruption trial begins

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SEPT. 5 2017 (The Conway Bulletin) — The trial started in Stockholm of Evegny Pavlov, a 37-year-old Russian national, who is accused of bribing Azerbaijani officials in 2013 to win a $340m contract for Canadian train maker Bombardier.

Mr Pavlov was head of the Baku office of Bombardier, reporting to the company’s Europe office in Stockholm when it won a contract to replace and install train signals across Azerbaijan.

It had partnered with an unknown Azerbaijani company called Trans-Signal-Rabita to win the contract. Trans-Signal-Rabita was owned by employees of the Azerbaijani ministry of transport awarding the contract.

His lawyers have argued that he was too junior to influence the process and that any corruption issues lie higher up. Bombardier has denied any wrongdoing.

Five other Bombardier employees have been described as suspects, including Peter Cedervall, a senior official in the Stockholm office.

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(News report from Issue No. 342, published on Sept. 7 2017)

THE BRIEFING: Kazakhstan opens nuclear fuel bank

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SEPT. 7 2017 (The Conway Bulletin) — >> Kazakh President Nazarbayev opened a nuclear fuel bank this week. What is this and what does it mean?

>> A nuclear fuel bank is a secure building that holds low-enriched uranium that can be used to make power. The nuclear fuel bank that has just been opened by Nazarbayev is run by the International Atomic Energy Agency (IAEA). This means that it is different from others around the world as it is supposedly run by a neutral agency and not by single country.

>> Okay. But why is this important?

>> Nuclear power is a highly politicised form of energy. Nation states have their own agendas and the IAEA-controlled nuclear fuel bank is an attempt to reassure smaller nations that there is an independent supply of low–enriched uranium that they can access if they need to. The IAEA wants to promote nuclear power but it also wants to limit the number of countries that have the capability to enrich uranium. Low-enriched uranium can be used to produce electricity but high-enriched uranium can be used to produce weapons.

>> So what has Kazakhstan got to do with all this?

>> Nazarbayev wants to place Kazakhstan at the vanguard of a drive to make nuclear power around the world safer. He gave up an arsenal of nuclear weapons left over by the Soviet Union when it collapsed in 1991. Since then he has also encouraged Kazakhstan to become the world’s biggest producer of raw uranium. Offering Kazakhstan as a location for an IAEA-controlled nuclear fuel bank was a logical step for him. The fuel bank is located in the east of the country near to the USSR’s former nuclear test site.

>> Who paid for this and should we expect a queue of countries looking to access the low-enriched uranium held in the IAEA’s fuel bank?

>> US billionaire Warren Buffett put in $50 million, the US put up nearly $50 million, the EU around $29 million, Kuwait and the UAE $10m and Norway $5m. Kazakhstan paid in $400,000. It’ll take a year to fill with low-enriched uranium, there is nothing in it at the moment, but even when it is operating don’t expect a queue of countries looking to access it. It is considered a reserve of last resort if a country can’t buy low-enriched uranium on the market. It still has to pass various safety protocols, though. Other nuclear fuel banks, including one next door in Russia that opened in 2010 with IAEA backing, have never been used.
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(News report from Issue No. 342, published on Sept. 7 2017)

Oil shipments through Georgia’s Batumi port fall

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SEPT. 1 2017 (The Conway Bulletin) — Oil shipments through the Georgian Black Sea port of Batumi have fallen by a third this year, a port official told Reuters. The port is a major hub for the region’s economy and a large drop in oil shipments, most arrive on trains from Baku, could suggest a slowdown. The port is operated by Kazakh oil and gas company Kazmunaigas. In total, Batumi port processed 1.472m tonnes of crude and refined oil in the first eight months of the year, down from 2.227m tonnes.

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(News report from Issue No. 342, published on Sept. 7 2017)

Explosion kills three Kazakh coal miners

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ALMATY, AUG. 31 2017 (The Conway Bulletin) — — A methane gas leak triggered an explosion at a mine in central Kazakhstan, killing three coal miners in the worst Kazakh mining accident since 2008 when 30 people died in a blast.

The Kazakhstanstkaya mine is located near the city of Karaganda and is reportedly owned by the steel works at nearby Timirtau. The steel factory is owned by Luxembourg-based ArcelorMittal.

The reputation of ArcelorMittal’s factory has fallen over the last few years as it cut jobs. This was partly linked to a global economic downturn and partly a result of international sanctions on Iran, a core client.

The factory now employs around 12,000 workers, down from 15,000 only a few years ago. It had also tried to cut staff salaries, although this effort was rebuked.

Kazakhstan has a patchy record for coal mining safety. As well as the 2008 accident, a monorail accident last year also killed three miners at another coal mine owned by ArcelorMittal. In 2006, 41 miners in Kazakhstan died in a methane blast.

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(News report from Issue No. 342, published on Sept. 7 2017)