Tag Archives: business

Ex-president returns to Kyrgyzstan to answer questions on Kumtor

AUG. 3 2021 (The Bulletin) — The Kyrgyz authorities said that Askar Akayev, the country’s first post-Soviet president, had flown to Bishkek for the first time since fleeing into exile in Moscow after a revolution in 2005 to answer questions over the privatisation of the Kumtor gold mine. It was unclear whether Mr Akayev faced the threat of arrest and had been forced to return to Bishkek. The Kyrgyz government expropriated the Kumtor gold mine this year from its Canadian owners, Centerra Gold.

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— This story was published in issue 495 of the Central Asia & South Caucasus Bulletin, on Aug. 9 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyz government wants emergency powers

BISHKEK/JULY 28 2021 (The Bulletin) — — Citing Kyrgyzstan’s worsening economic outlook, economy minister Akylbek Japarov said that he wanted emergency powers for three months that would bypass Parliament and allow the government to raise extra cash for its budget by giving it more rights to fine companies and more oversight over customs and licensing regulations.

Observers, though, said that the proposals would damage Kyrgyzstan’s already tarnished repuation as a place to do business, – dented by rising unemployment linked to the pandemic, a coup last year and the expropriation of the Kumtor gold mine from its Canadian owners.

Mr Japarov, who led an investigation into environmental damage at Kumtor in May that triggered a $3.1b fine and the expropriation of the mine, said that the emergency powers were needed to give the government more flexibility.

“We will be able to take preventive measures to improve the economic situation before people become discontent and start to protest,” he said.

“We suggest that in special cases decisions can be made with subsequent changes and additions and that 10% additions can be added to the revenue and expenditure side of the
budget.”

Commenting on the proposed emergency budget laws, Robin Ord Smith, Kyrgyzstan’s Business
Ombudsman, said that the laws were being rushed through without proper scrutiny.

“Our initial assessment of this draft legislation identifies some potential issues that could have a
negative impact on business entities and economic recovery,” he said.

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— This story was published in issue 494 of the Central Asia & South Caucasus Bulletin, on July 29 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Charaat’s Kyrgyz gold project funding going to plan

JULY 27 2021 (The Bulletin) — Charaart Gold CEO Artem Volynets said that despite the expropriation of the Kumtor gold mine by the Kyrgyz government from Toronto-registered Centerra Gold, funding for its own project in Kyrgyzstan was moving along swiftly. In June, Chaarat Gold said that media publicity over the expropriation of Kumtor had damaged fundraising for its Tulkubash gold deposit. Charaat Gold said that it expected first gold to be produced in H2 2023, as planned.

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— This story was published in issue 494 of the Central Asia & South Caucasus Bulletin, on Jul7 29 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Armenia’s new medical tourism

>> Armenia is cashing in on a medical tourism industry focused on the pandemic, writes James Kilner

YEREVAN/JULY 22 2021 (The Bulletin) — Finding a hotel room or an apartment to rent in Yerevan has become a challenge but, in the second year of the global coronavirus pandemic, it is not Armenia’s relaxed attitude towards facemasks and social distancing that is attracting tourists. Instead, Armenia’s offer to vaccinate anybody against the coronavirus has created a new “medical tourism” industry.

The vast majority of these so-called medical tourists are from Iran, as data from Armenia’s tourism ministry showed. It said that the number of people arriving from Iran over the past month has doubled.

And the epicentre of this coronavirus-motivated migration lies at the top of Yerevan’s North Avenue. 

Across the road from the hulking grey Soviet-built opera house, an ambulance parks up every day. From 10am, anybody is invited to have a coronavirus vaccination. Priority is given to Armenians but the take up has been poor. The Armenian doctor instead talks to the crowd in English. Standing next to her, a Farsi translator repeats her instructions.

“We did about 100 vaccinations today,” she said later. “A few at the start were Armenian but most, by a long way, are from Iran.”

One of these was Makhmoud from Tehran. He had been waiting for his vaccination standing a few metres back from the crowd, pulling on a slim cigarette, his facemask pushed down under his chin. His wife sat on a bollard next to him.

“What choice do we have?” he said. “The vaccination programme in Iran is falling over and we may have to wait another three or four months for our turn. I’m 57-years-old.”

According to Makhmoud, a retired gas complex worker, the Iranian authorities have only offered the vaccine to people over the age of 60. He had flown to Yerevan but he said that thousands of people were making the overland crossing via Tabriz in the northwest of Iran.

“The problem now, though, is that it is expensive. Now everybody who enters has to wait 10 days to have a vaccine,” he said.

The new rules, that people have to stay in Armenia for at least 10 days before they can have the vaccine were imposed on July 15 and it is clear from ministers’ comments that they were introduced to generate extra income. “Tourism indicators show growth,” media has quoted economy minister Vahan Kerobyan as saying. “Now is a good time to think about medical tourism.”

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Uzbek data shows industrial growth

JULY 22 2021 (The Bulletin) — Data published by Uzbekistan’s State Statistics Committee said that output at Uzbek industries was 8.5% higher in the first six months of the year compared to the same period in 2020. Most metrics in the Statistic Committee’s twice-a-year data release showed that Uzbek the economy was growing. The one sector that didn’t show much of an increase was construction, a key driver of the economy, which showed growth compared to the same period in 2020 of just 0.1%.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Georgian banks record record profits

JULY 21 2021 (The Bulletin) — Georgia’s banks registered a record total profit in June, the Central Bank reported, more evidence that the country is recovering quickly from the impact of the pandemic. The Central Bank said that banks’ profit in June totalled 295m lari ($92m). Georgia’s banking system is considered robust. Since the pandemic has subsided, requests for loans have boomed.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyzstan needs to update power infrastructure, says World Bank

JULY 21 2021 (The Bulletin) — Kyrgyzstan needs major investment in its aging electricity transmission infrastructure, the World Bank said in a report. Media quoted the World Bank as saying that Soviet-era infrastructure meant that transmission cables and towers were losing a significant proportion of their electricity.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

US court says Kyrgyzstan was in contempt of court over Kumtor

JULY 21 2021 (The Bulletin) — A court in the US has ruled that the Kyrgyz government was in contempt of court for continuing to prosecute the Toronto-based company Centerra Gold for environmental damage at the Kumtor gold mine in Kyrgyzstan, Centerra Gold said. The Kyrgyz government has expropriated the mine, although Centerra Gold said it will challenge this expropriation in US courts.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

US court rules against Kyrgyz government over Kumtor

JULY 21 2021 (The Bulletin) — A court in the US has ruled that the Kyrgyz government was in contempt of court for continuing to prosecute the Toronto-based company Centerra Gold for environmental damage at the Kumtor gold mine in Kyrgyzstan, Centerra Gold said. The Kyrgyz government has expropriated the mine, although Centerra Gold said it will challenge this expropriation in US courts.

ENDS

— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 21 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Power cut strikes Yerevan

JULY 21 2021 (The Bulletin) — A power cut hit a large part of Yerevan, a blackout that analysts linked to a heatwave that has triggered heavy use of air conditioning units and fans. Analysts have said that Armenia needs to do more to increase its electricity production to meet a surge in demand linked to a rise in living standards. It is over-reliant on the Soviet-era Metsamor nuclear power station to generate power. The 45-year-old power plant was supposed to be decommissioned in 2017/18. Instead, its lifespan has now been extended until 2027.

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— This story was published in issue 493 of the Central Asia & South Caucasus Bulletin, on July 22 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021