Tag Archives: business

Kaspi.kz posts record profit

OCT. 25 2021 (The Bulletin) — Kaspi.kz, the Kazakh technology company that owns Kaspi Bank and its super-app that is dominating the Kazakh mobile payments sector, said that its Q3 net income nearly doubled compared to the same period in 2020. Its share price on the London Stock Exchange was up 25% at $117. Kaspi.kz also said that it had bought BTA Bank Ukraine in order to secure a banking licence. 

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Britain reduces tariffs on Uzbek goods

OCT. 25 2021 (The Bulletin) — Britain agreed to admit Uzbekistan into its Enhanced Framework system which will reduce tariffs. Starting from Nov. 1, British importers and Uzbek exporters will pay less tax. Britain’s Enhanced Framework system is part of its post-Brexit global trade negotiations.

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Azerbaijani mineral water wants to export to Europe

OCT. 22 2021 (The Bulletin) — Azerbaijani mineral water producer Badamly said that it plans to start exporting to Europe and that it has applied for an export licence. Badamly Mineral Water is currently only exporting to FSU countries. The plant used to produce around 350m bottles per year until the late 1990s but now produces around half that at its plant in the Azerbaijani exclave of Nakhchivan. The most famous mineral water export from the South Caucasus is Georgia’s Borjomi.

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kumtor Gold takes $10m loan

OCT. 21 2021 (The Bulletin) — Kumtor Gold, a subsidiary of Toronto-based Centerra Gold, won approval from a New York court to borrow $10m despite objections from Kyrgyzstan which expropriated the company’s Kumtor gold mine in May.  Centerra Gold has promised to fight the Kyrgyz government for control of Kumtor which it took control of after alleging environmental damage.

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

CEVA Logistics sets up office in Tashkent

OCT. 21 2021 (The Bulletin) — Highlighting Uzbekistan’s growing attraction as a place for Western logistics companies to base themselves in the Central Asia region, CEVA Logistics said that it would set up an office in Tashkent. CEVA Logistics is owned by France’s CMA CGM, one of the world’s largest container shipping companies.

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyz Pres. Japarov promotes ally

OCT. 12 2021 (The Bulletin) — Looking to consolidate his power, Kyrgyz Pres. Sadyr Japarov promoted his loyal lieutenant Akylbek Japarov (no relation) to the newly created position of cabinet chairman. In June, Adlybek Japarov had been promoted to economy minister and deputy minister after he successfully brought environmental charges against Canada’s Centerra Gold for its management of the Kumtor gold mine. The cabinet chairman is an amalgamation of the head of the presidential administration and the head of the cabinet of ministers.

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— This story was published in issue 503 of the Central Asia & South Caucasus Bulletin, on Oct. 12 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

London gold body suspends Kyrgyzaltyn after review

BISHKEK/SEPT. 17 2021 (The Bulletin) — — The London Bullion Market Association, effectively the world’s gold market ombudsman, suspended the membership of Kyrgyzstan’s Kyrgyzaltyn after it failed a fraud review of its business.

Kyrgyzaltyn is Kyrgyzstan’s state-run gold dealer and its suspension will irritate the Kyrgyz government which relies on gold exports to generate around 9% of its GDP. In May it expropriated the country’s biggest gold mine, Kumtor, from its Canadian owners, Centerra Gold.

In a short statement, the London Bullion Market Association said: “Kyrgyzaltyn JSC has been suspended from the LBMA Good Delivery List for failing to meet the requirements of the Responsible Sourcing Programme. All production from the refinery will no longer be accepted as Good Delivery from this date.”

In June, the London Bullion Market Association said that it had begun a review into Kyrgyzaltyn “in response to issues concerning delivery and the potential for fraud.”

Exclusion from the London Bullion Market Association’s Good Delivery list means that Kyrgyzaltyn will be shunned by the world’s main banks and gold dealers.

Neither the details of London Bullion Market Association’s investigation into Kyrgyzaltyn nor why it had been suspended have been disclosed, although media said that US financial company StoneX Group had accused it of failing to deliver half a tonne of gold. Kyrgyz officials have been quick to blame Centerra Gold, which owned Kumtor from 1997, for their problems.

The Kyrgyz security services have accused Centerra Gold officials and former PMs of corruption.
Responding to the suspension of Kyrgyzaltyn by the London Bullion Market Association, Kyrgyz economy minister Akylbek Japarov said that it would still be able to sell gold to China, India and the Middle East.

“I would like to note that the cancellation is temporary, that is, it can be restored soon,” he said. “Noone expected the Canadians to apologise for all the harm they caused the people of Kyrgyzstan, reimbursing all losses.”

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— This story was published in issue 501 of the Central Asia & South Caucasus Bulletin, on Sept. 23 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Centerra fails in $1m/day fine for Kumtor expropriation

SEPT. 15 2021 (The Bulletin) — The New York bankruptcy court turned down a case by the Toronto-based Centerra Gold that the Kyrgyz government should pay $1m sanctions for every day since it expropriated the Kumtor gold mine. The judge said that Kyrgyzstan hadn’t yet broken the rules of Kumtor’s Chapter 11 case. The Kyrgyz government expropriated the mine in May.

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— This story was published in issue 500 of the Central Asia & South Caucasus Bulletin, on Sept. 16 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Centerra files damages claim over Kumtor

AUG. 26 2021 (The Bulletin) — Canada’s Centerra Gold filed a bankruptcy motion in the US demanding a fee of $1m per day since the Kyrgyz government expropriated the Kumtor gold mine at the end of May. The Kyrgyz government has said that it has gathered enough evidence against Centerra Gold to prosecute it for corruption and environmental damage. Centerra Gold denies any wrongdoing.

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— This story was published in issue 498 of the Central Asia & South Caucasus Bulletin, on AUG. 31 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyz build Kumtor case

AUG. 11 2021 (The Bulletin) — Kyrgyzstan’s security service said that it had pulled together enough evidence to push ahead with a corruption prosecution against the privatisation of the Kumtor gold mine in 1993. The Kyrgyz government expropriated the mine in May because of what it described as environmental failings. Centerra Gold, which owns the Kumtor gold mine, has disputed the expropriation and said it is launching arbitration.

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— This story was published in issue 496 of the Central Asia & South Caucasus Bulletin, on AUG. 17  2021

— Copyright the Central Asia & South Caucasus Bulletin 2021