Tag Archives: Kazakhstan

Litigation case will not affect sale, says Kazakh energy company

MAY 30 2016 (The Conway Bulletin) — Kazmunaigas, Kazakhstan’s state- owned energy company, said that a litigation case in Romania involving one of its subsidiaries will not affect the sale of the unit to China’s CEFC. Last December, CEFC agreed to buy a 51% stake in KMG International, formerly Rompetrol. Romanian prosecutors seized KMG International’s refinery earlier in May during an investigation into its privatisation and subsequent sale to to Kazmunaigas.

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(News report from Issue No. 283, published on June 3 2016)

Exchange rate stabilises in Kazakhstan

MAY 30 2016 (The Conway Bulletin) — Kazakhstan’s Central Bank said tenge-denominated deposits had grown steadily in Q1 2016, due to the stabilisation of the exchange rate with the US-dollar after five months of high volatility. Commercial banks increased interest rates on deposits in an effort to attract customers. The C.Bank’s decision to lower interest rates earlier in May could now depress deposits and increase spending.

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(News report from Issue No. 283, published on June 3 2016)

Kazakhstan lifts ban on potato import from Kyrgyzstan

JUNE 1 2016 (The Conway Bulletin) — Kazakh President Nursultan Nazarbayev lifted a ban on the import of potatoes from Kyrgyzstan after meeting with his Kyrgyz counterpart Almazbek Atambayev in Astana. Kazakh authorities had banned Kyrgyz potatoes in early May due to an outbreak of Globod- era rostochiensis, a pest. The Kazakh regulatory agency said it will continue to monitor the presence of the pest in the following months.

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(News report from Issue No. 283, published on June 3 2016)

Kyrgyzstan to pay high price for electricity

JUNE 1 2016 (The Conway Bulletin) — The Kyrgyz government is under pressure to justify paying relatively high prices to Kazakhstan for electricity. Dastan Dzhumabekov, an MP in the ruling government coalition, asked Alibek Kaliyev, head of the National Energy Holding, to clarify why Kyrgyzstan accepted paying 9 tenge ($0.026) per kWh to Kazakhstan, while Kazakhstan charges Russia only 5 tenge ($0.014) per kWh. Mr Kaliyev was unable to give a clear answer which MPs said was illogical given Kyrgyzstan’s membership of the Eurasian Economic Union.

ENDS

(News report from Issue No. 283, published on June 3 2016)

Pro-government protesters target US consulate in Kazakh city

ALMATY, MAY 31 2016 (The Conway Bulletin) — Roughly two dozen people protested in front of the US consulate in Almaty against what they said was the influence of foreign governments in demonstrations across Kazakhstan since April.

Most of the people at the protest were the same protagonists who had staged demonstrations against banks earlier in the year. The impression was that a group with close links to the authorities had organised the protest to show support for the government. And in contrast to anti- government protests on May 21, police didn’t intervene.

Zhanna Sadykova, a leader of the so-called Give People Housing movement, said one of the demonstrators’ targets were protests against the Kazakh government in the US last week.

“Those who protested in US cities are not citizens of our country and therefore have no right to interfere with our internal policies,” she said.

The protests that have swept Kazakhstan since April have been unprecedented. What started as an isolated protest against land reforms has morphed into a general gripe against the government and the country’s stagnating economy.

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(News report from Issue No. 283, published on June 3 2016)

Kazakhstan cycling team wins the race

MAY 29 2016 (The Conway Bulletin) — Vincenzo Nibali, captain of the Kazakhstan-sponsored Astana Cycling Team, won the Giro d’Italia, one of the classic cycling races. Mr Nibali won after the race leader Giacomo Nizzolo was disqualified for irregular conduct. Kazakhstan’s sovereign wealth fund Samruk-Kazyna sponsors and funds the Astana Team. Wearing the country’s light blue colours, Mr Nibali has also won the Tour de France in 2014 and another Giro in 2013.

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(News report from Issue No. 283, published on June 3 2016)

Editorial: Pro-government demonstrations in Kazakhstan

JUNE 3 2016 (The Conway Bulletin) — A pro-government protest demonstrating against anti-government protests is not a new practice in Central Asia.

This was the scenario in Kazakhstan this week and even if it might not be a new issue but it is still an insightful one. The authorities are getting increasingly worried that their opponents are gaining in strength.

The main targets of the pro-government protest this week were the US consulate in Almaty and expatriate Kazakhs in San Francisco and New York.

The pro-government protesters, well organised and clearly linked to the authorities, accused the US of stirring anti-government feelings, a standard complaint by former Soviet governments facing popular discontent. They also denounced the protesters in the US as traitors who didn’t understand how loved President Nursultan Nazarbayev was in Kazakhstan.

But rather than criticise the protesters in the US and the US consulate in Almaty, perhaps it would be more effective for the authorities in Kazakhstan to listen to their critics.

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(Editorial from Issue No. 283, published on June 3 2016)

Subsistence level rises in Kazakhstan

JUNE 1 2016 (The Conway Bulletin) — The minimum subsistence level in Kazakhstan increased by 0.5% in May, indicating that inflation and slower economic growth have hit people’s livelihoods. The Statistics Committee said Kazakhs need a minimum of 20,630 tenge ($61) to survive. This is 8.5% higher than in May last year but is still slower than annualised inflation of 16.7%.

ENDS

(News report from Issue No. 283, published on June 3 2016)

Kazakhstan’s stock lists Magnum’s bond

MAY 27 2016 (The Conway Bulletin) — KASE, Kazakhstan’s stock exchange, said it listed 10-year bonds issued by Magnum Cash & Carry, a chain of discount stores in Kazakhstan. The total issue amounted to 33b tenge (around $100m), one-third of the amount that Magnum plans to issue in the short term to finance its expansion in the country. In May 2014, Kenes Rakishev, son-in-law of Kazakhstan’s defence minister and closely-linked to the elite, bought a minority share in the company.

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(News report from Issue No. 283, published on June 3 2016)

KazKom buys back bonds

JUNE 2 2016 (The Conway Bulletin) — Kazkommertsbank, Kazakhstan’s largest lender, said it had bought back part of its outstanding bonds, spending around $35m in total. In May, CEO Kenes Rakishev had said the bank was ready to repurchase as much as $500m in outstanding bonds. After the latest transaction, KazKom has to pay back around $522m from two bond issues due later this year and €392m ($437m) due in February 2017.

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(News report from Issue No. 283, published on June 3 2016)