Tag Archives: Georgia

Stock market: KAZ Minerals, Georgia Healthcare

JULY 16 2017 (The Bulletin) — In a rocky fortnight for stocks in Central Asia and the South Caucasus, only KAZ Minerals and Georgia Healthcare bucked the trend and returned growth. Both have had stellar years and are hitting all-time highs.

For KAZ Minerals, the Kazakhstan-focused copper producer formerly called Kazakhmys, production costs at its sites in north Kazakhstan have been lower than previously expected giving it greater margins. Copper prices have been fairly stable, trading in the $250 – $270 per lb corridor this year after a jump at the end of 2016.

For Georgia Healthcare, analysts have simply underestimated the profitability of the product that it was offering. This profitability may have been a motivating factor for London-listed BGEO Group, which owns a 57% stake in Georgia Healthcare, to tell investors that it was going to split into two companies. BGEO Group plans to hold the Georgia Healthcare stake, along with other assets, but it will spin off Bank of Georgia into its own London-listed company.

On the downside Nostrum was the biggest faller, shedding more than 15% of its price. It is now trading at below 430p for the first time since the end of March.

On Toronto’s stock exchange, Centerra Gold was down 6.3% to C$6.63, its lowest since the March.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

 

Georgia court paves way to deport ‘Gulenist’ teacher

TBILISI, JULY 7 2017 (The Bulletin) — A court in the Georgian capital rejected an asylum application by detained Turkish school manager Mustafa Cabuk, paving the way for his extradition to Turkey where he is he is accused of supporting terrorism and being a member of the banned Gulen organisation.

The case has been controversial because it has appeared to confirm that Georgia has bowed to pressure from Turkey to detain and extradite Turks linked to the Gulen movement. Turkish President Recep Erdogan has accused exiled cleric Fethullah Gulen and his followers of organising a failed coup last year.

Turkey has been pressuring allies in the South Caucasus and Central Asia to hand over businessmen and education officials linked to Gulen but until recently only Azerbaijan, its arch-ally, and Turkmenistan have acquiesced.

Georgia, though, has been trying to boost relations with Turkey and Mr Cabuk’s supporters have said that he is just a pawn in a bigger geopolitical game and that he faces being tortured if he is sent back to Turkey where thousands of Gulenists have been arrested. Georgia has also revoked the licence of a school in Batumi linked to the Gulen network and detained a Turkish businessman.

To the frustration of his supporters, the court ruled Mr Cabuk didn’t meet the requirements needed to be given political asylum and that his life would not be in danger in Turkey.

Cabuk was detained in May. He has worked in Georgia since 2002. His most recent job was as a manager for Demirel College in Tbilisi.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

Georgia’s BGEO to spin off non- banking investments

TBILISI, JULY 3 2017 (The Bulletin) — BGEO, the London-listed Georgian investment company that owns most of Bank of Georgia and Georgia Healthcare Group, said it will split into two companies later this year in a move that surprised analysts but sent its share price up towards an all-time high.

The de-merger will give investors more opportunity to increase their exposure to Georgia with a new company focused on retail, healthcare, drinks and utilities.

Both Bank of Georgia and Georgia Healthcare have had strong years and have become two of the Central Asia and South Caucasus region’s favourite shares.

In a statement, BGEO said it would split into two London-listed companies — Bank of Georgia and BGEO Investments. BGEO will own a 10% stake in the bank; a 57% stake in Georgian Healthcare; M2, a real estate company; Aldagi, an insurance company; GGU, a utilities company; a 72% stake in Taliani Valley, a drinks company.

“The Board of BGEO Group believes a de-merger of the businesses will deliver additional long-term value to shareholders by creating two distinct entities, each of which will have enhanced growth opportunities

in the strongly growing Georgian economy,” the BGEO statement said. The news sent BGEO’s shares up and over the next couple of days they hit a peak of 3,721p, near a high of 3,744p in March. Shares in Georgia Healthcare were steady at 370p.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

 

Thief steals from US embassy in Georgia

JULY 3 2017 (The Bulletin) — A thief working at the US embassy in Tbilisi stole $160,000 from the embassy shop between 2010 and 2014, US media reported quoting the US State Department. State Department officials said that the thief simply took cash from the shop and deleted receipts to cover his or her tracks. They haven’t been able to name the thief and have instead given recommendations on how to prevent a similar issue in the future.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

 

Estonian president accuses West of failing Georgia in 2008

TBILISI, JULY 5 2017 (The Bulletin) — In almost her first act as President of the Council of the European Union, Kersti Kaljulaid, Estonia’s president, accused the West of failing to stand up to Russia during its war with Georgia in 2008.

In an interview with Euronews, Ms Kaljulaid said that the failure of the US and Europe to defend Georgia had sent a message to Russian President Vladimir Putin that he could use force to project Russia’s influence over its near abroad. She directly linked Russia’s annexation of the Crimea in 2014 and its support for rebels in east Ukraine with apparent Western indifference towards Georgia six years earlier.

“In Georgia, I believe that the Western world made an error because they didn’t see that they are teaching the wrong lesson,” she said. “In Georgia, Russia learned that if you act, the reaction is relatively mild. And so the avalanche arrived in Crimea.”

The comments will jar with Western leaders who blamed an overzealous Mikheil Saakashvili, then Georgia’s president, for triggering a war with Russia that focused on the rebel region of South Ossetia. Several hundred people died in the short war and thousands were forced to flee their homes when Russian forces pushed back the Georgian army. It was able to set up positions deep inside Georgia and destroy Georgian military equipment and bases before pulling back into Russia.

The upshot of the war was that Russia recognised both Georgia’s rebel states, South Ossetia and Abkhazia, as independent. Only a handful of other countries, and importantly none from the FSU, have followed this lead.

Like scraping off an old scab, Ms Kaljulaid’s comments are painful and important. They reveal the nervousness of ex-Soviet countries, now aligned with the West, towards Russia. These countries consider the Kremlin to be their greatest threat.

“Every country has the right to decide with whom they do business, with whom they associate themselves,” she said. “This does not suit him [Putin]. He is out to change it.”

Estonia holds the Presidency of the Council of the European Union for six months.

The war with Russia marked the beginning of the end for Mr Saakashvili. He had been something of a poster-boy in the West but in the run up to the war had been accused of overstepping his mandate.

By 2012 Mr Saakashvili’s United National Movement party had lost its majority in parliament to the Georgian Dream and by 2013 also the presidency. He is now living in exile, accused by the Georgian authorities of various financial crimes.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 336, published on July 16 2017)

Georgian parliamentary speaker sets up political party

JUNE 16 2017 (The Bulletin) — Piling more pressure onto United National Movement party (UNM), former Georgian parliamentary speaker Davit Usupashvili said he will set up a centrist political movement to contest local elections in October. Mr Usupashvili was Parliamentary Speaker between 2012 and 2016 under the ruling Georgian Dream coalition government but it is the UNM party of former president Mikheil Saakashvili who will be most concerned by the prospect of a new party.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 335, published on July 3 2017)

Kaladze to contest Georgian capital mayor for GD

TBILISI, JULY 1 2017 (The Bulletin) — The ruling Georgian Dream coalition chose energy minister Kakha Kaladze to be their candidate in an election for the mayor of Tbilisi set for October, a contest that is shaping up to be an early test of the government’s popularity.

Mr Kaladze is a former international football player who played for Georgia and Italian team AC Milan. His main opponent for the Tbilisi mayoral position also has a prominent public persona. Earlier in June, the United National Movement party (UNM) of former President Mikheil Saakasvhili said that it was going to put up Zaal Udumashvili, a well-known news reader for the opposition Rustavi-2 TV channel to be its candidate.

The UNM lost a parliamentary election heavily last year to the Georgian Dream. Analysts have said that without a victory, or at least a strong showing in the contest to win control of Tbilisi City Hall, the UNM could be slipping into irrelevance. Davit Narmania, a Georgian Dream candidate, won the Tbilisi mayoral election in 2014. The Tbilisi mayoral election is the most high-profile of several being held across Georgia’s municipalities in October.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 335, published on July 3 2017)

 

Pence to visit Georgia

JUNE 29 2017 (The Bulletin) — US Vice-President Mike Pence will visit Georgia in July, the White House said in a statement, a clear signal of support for Georgia. Mr Pence’s visit will be the most high-profile visit from a US politician since Joe Biden’s visit in 2009 when he was Vice-President. George W. Bush visited Tbilisi in 2005 when he was President.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 335, published on July 3 2017)

GDP grows in Georgia

JUNE 28 2017 (The Bulletin) — Government spending on infrastructure projects and private sector development have given the Georgian economy a boost and means that it could surpass expectations of GDP growth of 4% this year, economy minister Giorgi Gakharia said in an interview with Reuters. This is important because of all the economies of Central Asia and the South Caucasus, Georgia’s appears to be recovering the fastest from a downturn triggered by a drop in oil prices that hit Russia, the regional economic driver.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 335, published on July 3 2017)

 

Georgian prosecutors ask for access to abducted reporter

JUNE 26 2017 (The Bulletin) — Georgian prosecutors have opened a case described as “unlawful imprisonment” over the abduction of Azerbaijani journalist Afgan Mukhtarli from Tbilisi in May, media reported. It reported that investigators have asked Azerbaijan for access to Mr Mukhtarli who has resurfaced in Azerbaijani custody. Azerbaijani prosecutors have charged Mr Mukhtarli with crossing the border into Georgia illegally.

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Copyright ©Central Asia & South Caucasus Bulletin — all rights reserved

(News report from Issue No. 335, published on July 3 2017)