Tag Archives: Kazakhstan

Workers complain in Kazakhstan

MAY 5 2016 (The Conway Bulletin) – A union of metal workers at the ArcelorMittal Temirtau factory in central Kazakhstan said it would appeal to the Prosecutor General against the company’s plans to cut benefits and, ultimately, lay off workers. According to Zhaktau, the union, several workers have had their full-time contract changed into freelance project work. The union also said the company plans to sack 700 workers by the end of the year. ArcelorMittal Temirtau did not comment.

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan plans mining auction

MAY 3 2016 (The Conway Bulletin) – A Kazakh mining government agency said it will auction 101 gold, copper, manganese and other precious metals mines on June 16. The auction, Kazakhstan’s second, will be conducted within the framework of the International Mining and Metallurgical Congress. Last year’s auction earned the state budget around 1.5b tenge ($4.5m).

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan’s CBank cuts interest rate as inflation begins to slow

MAY 5 2016, ALMATY (The Conway Bulletin) — Kazakhstan’s Central Bank cut its key interest rate by two percentage points to 15% because it said that inflation was slowing and the overall economic outlook was improving.

The consumer price index grew in April to an annualised rate of 16.3%, its highest since 2009, but the Central Bank said that the pace of inflation had slowed.

“Seasonally adjusted, annualised month-on-month inflation for each of the last three months was within the target range for the annual inflation set between 6% and 8%,” the Central Bank said in a statement linked to its rate change.

“A survey of households also showed that expectations of inflation have subsided as well.”

After months of poor economic data and a 50% devaluation of the tenge currency, any prognosis on Kazakhstan’s economy which is even vaguely positive will be seized upon and lauded. This is the first time in months that Kazakhstan’s Central Bank has shown confidence in its ability to control the money market, a sign that the worst period of a regional economic downturn might be over.

Still, the Central Bank did add a large dash of caution to its outlook.

It said that a potential downside risk to the economy was the “increased tenge-denominated high interest rate liabilities” held by commercial banks, which could put pressure on the financial sector. This is, essentially, a reference to bad loans.

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan-based Olisol makes Tethys deal

APRIL 29 2016 (The Conway Bulletin) – Kazakhstan-based Olisol will inject 9.8m Canadian dollars ($7.6m) into Tethys Petroleum, a Guernsey based oil and gas company, triggering a new share issue. The long-negotiated agreement will bring Olisol’s ownership in Tethys to 42%. Shareholders will vote on the deal at the annual meeting at the end of May. Tethys operates in Kazakhstan, Tajikistan and Georgia.

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(News report from Issue No. 279, published on  May 6 2016)

 

Kazakh President scraps land reforms after protests spread

MAY 5 2016, ALMATY (The Conway Bulletin) — Kazakh President Nursultan Nazarbayev bowed to public pressure and agreed to scrap unpopular land reforms which had sparked protests across the country.

Four days earlier, in a speech broadcast on national television, Mr Nazarbayev appeared determined to see off protests which had spread from Atyrau in west Kazakhstan, to Semey in the east and Kyzylorda in the south. He described the protesters as saboteurs who risked wrecking the country.

But with more protests planned, a clearly shaken Mr Nazarbayev told his government on Thursday that the plans would be delayed from their initial introduction on July 1 until the start of next year and, even then, only if the public agreed with the plans.

“The mechanisms and rules of the adopted law were not widely discussed with the public. The anxiety and concerns of the people are justified in many ways,” he said, according to a video posted on Facebook by his press office.

Analysts will either interpret this climb down as a humiliation for the 75-year-old leader who some say is increasingly out of touch with ordinary Kazakhs as they grapple with the frustrations of an economic downturn, or they will describe it as a masterstroke by an experienced leader able to paint himself as The- Father-of-the-People.

Certainly, Mr Nazarbayev was quick to blame others for the debacle.

He specifically said that economy minister Yerbolat Dossayev and agriculture minister Asylzhan Mamytbekov had failed to fulfil their brief.

“It should have been explained to the population that didn’t understand that there was no talk of any sale of our agricultural lands,” he said. “This means we failed to explain this point and to target those parts of the population which were concerned.”

Mr Dossayev resigned immediately and Mr Mamytbekov, the following day.

On the streets of Almaty it was easy to find people who were against the prospect of land reforms. “Renting land is wrong. Just wrong. It is the blood and sweat of our ancestors,” said Daniyar, a student.

By contrast, it wasn’t possible to find anybody who supported the proposed land reforms.

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan’s PVC imports fall

APRIL 29 2016 (The Conway Bulletin) – Kazakhstan’s net import of unmixed polyvinyl chloride (PVC), a type of plastic, decreased by 21% in the first quarter of 2016, compared to the previous year. With a 99% market share, China is Kazakhstan’s main supplier of PVC. Declining imports are linked to Kazakhstan’s struggling petroleum-dependent economy.

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(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan’s KMG EP and CEFC finalise JV

APRIL 30 2016 (The Conway Bulletin) – State-owned KMG EP and China’s CEFC energy company finalised their earlier agreement to form a joint venture that will take over the business of KMG International, formerly Rompetrol. In December, CEFC bought a 51% stake in KMG International for $680m, KMG EP revealed this week.

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(News report from Issue No. 279, published on  May 6 2016)

 

Ex-Kazakh CBank chief buys bank stake

APRIL 29 2016 (The Conway Bulletin) – Grigory Marchenko, former chief of Kazakhstan’s Central Bank, bought an 8.3% stake in AGBank, a private bank in Azerbaijan. Chingiz Asadullayev, the bank’s chairman, increased his stake to 31.7%, up from 23.3%. The World Bank’s International Financial Corporation decreased its stake from 17.5% to 4.3%. Mr Marchenko left his post at Kazakhstan’s Central Bank in October 2013. Since leaving the role, Mr Marchenko has kept a low profile.

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(News report from Issue No. 279, published on  May 6 2016)

 

Kazakhstan not to hold victory parade

APRIL 29 2016 (The Conway Bulletin) – Kazakhstan’s ministry of defence said it will not hold its usual military parade in Astana to celebrate Victory Day on May 9, the anniversary of the defeat of Nazi Germany in 1945. The ministry said parades should only be organised for round anniversaries. Last year, Kazakhstan held its largest-ever parade for the 70th anniversary of the Soviet Union’s victory in World War II. Observers said the decision not to hold a parade is linked to budget constraints.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on May 6 2016)

 

Kazakhstan’s KEGOC not to pay dividents

MAY 3 2016 (The Conway Bulletin) – KEGOC, a mainly state-owned electricity distributor in Kazakhstan, said it will not pay out dividends for 2015, due to the company’s poor financial performance last year. In 2015, KEGOC posted a loss of 7.8b tenge ($23.4m). KEGOC was one of the best performers in the Kazakh Stock Exchange last year, with its shares gaining 47%. The government sold a chunk of KEGOC at the end of 2014, as part of its so-called People’s IPO.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 279, published on  May 6 2016)