Tag Archives: Kazakhstan

Kazakhstan’s Halyk Bank to debate dividend payout

JUNE 23 (The Bulletin) — Shareholders of Halyk Bank, the largest bank in Kazakhstan, will vote on July 23 on whether to pay out the second of two planned dividend payments in 2020 because of the impact of the coronavirus on business. In May, Halyk Bank, which is majority-owned by Dinara Nazarbayeva and her husband Timur Kulibayev, voted to scrap its dividend. Ms Nazabayeva is the daughter of former president Nursultan Nazarbayev.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin, published on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020

Kazakh court imprisons activist for insulting ruling party

JUNE 22 (The Bulletin) — A court in Almaty sentenced an opposition activist to “three years of limited freedom” for insulting the governing Nur Otan party. Alnur Ilyashev’s crime was to describe on various Facebook posts Nur Otan as a bunch of “crooks and thieves”. The judge declined to give him the prison sentence that government prosecutors had asked for but he will have to serve 300 hours of community service and is banned from political activity for five years.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin, published on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020

Invest in our agriculture, Kazakh officials say

JUNE 22 (The Bulletin) — Kazakhstan wants foreign investors to buy into its vision for its agricultural sector, the government said through the state-linked newspaper Astana Times. Kazakh officials have been trying to promote its agricultural sector for the past decade and to expand its exports away from grain.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin, published on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020

Nazarbayec tests positive for the coronavirus

JUNE 20 (The Bulletin) — Nursultan Nazarbayev, Kazakhstan’s 79-year-old former president, tested positive for the coronavirus but officials said he was asymptomatic. The Kazakh authorities have announced weekend lockdowns in major cities to try to suppress a rise in infections since lockdown measures were relaxed.

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— This story was first published in issue 451 of the Central Asia & South Caucasus Bulletin, published on June 23 2020

— Copyright the Central Asia & South Caucasus Bulletin 2020

Coronavirus spreads throughout Kazakhstan

APRIL 5 (The Bulletin) — Officials in Kazakhstan said that there were now 569 confirmed cases of the coronavirus in the country and that five people had died with the COVID-19 disease. The government has called up thousands of reservists to help fight the spread of the COVID-19 disease, caused by the coronavirus, by enforcing lockdowns across the country and manning roadblocks.

 Previously only Nur-Sultan and Almaty had been placed under a lockdown but now all businesses in all towns and cities have been ordered to close. The lockdown only allows people out of their homes every other day.  In a televised address to the nation, Kazakh President Kassym Jomart Tokayev described medical workers as “life-saving heroes” and promised to give them salary rises. Critics of the government have said that the underfunded Kazakh health system will struggle to cope with an influx of patients with COVID-19.

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— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Coronavirus undermines region’s projected growth

ALMATY/April 5 (The Bulletin) — The coronavirus will undermine what had looked like a strong year of economic growth in 2020 and instead knock the Central Asia and South Caucasus region into a recession.

Of the six countries in the region that have declared states-of-emergencies and infections of the coronavirus, only Kazakhstan has officially said that its economy will shrink in 2020 but analysts expect others to follow.

Kazakh economy minister Ruslan Dalenov said on April 2 that the combined impact of the coronavirus and a fall in oil prices mean that Kazakhstan’s economy will shrink by 0.9% in 2020.

Oil is Kazakhstan’s main export and with prices dropping by 40% to around $35/barrel because of a price war and a drop in demand triggered by the spread of COVID-19, the disease caused by the coronavirus, Mr Dalenov said oil exports would fall.

“A decrease is also expected compared to previously approved growth rates in the manufacturing industry, agriculture, construction and the services sector, including trade,” he said. 

Kazakhstan had previously predicted GDP growth of 4.5% for 2020. It last went into a recession in 2016 after a previous oil price collapse.

In Armenia, the Central Bank is still predicting GDP growth this year but only of 0.7%, down from an earlier prediction of 7.6%.

Other countries have held off giving predictions on the economic cost of the spread of the coronavirus although they have all said that their original growth estimates are likely to be heavily reduced.

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— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Central Asia and the South Caucasus tighten coronavirus lockdowns

YEREVAN/April 5 (The Bulletin) — Battling to stop the spread of the coronavirus, governments in Central Asia and the South Caucasus intensified lockdowns that ban people from leaving their homes.

At least 17 people have died across the region with the COVID-19 disease caused by the coronavirus, although analysts think the real figure could be many more. Health ministries and international donors are now worried that the region’s underfunded and under-resourced hospitals and health systems will buckle if there is a surge in infections.

On March 26, Armenian deputy PM Mher Grigoryan appeared to betray his nervousness about whether Armenia’s health service could cope with rising infections.

“We have an obvious problem, which is outstanding everywhere else in the world and it is important to solve here in Armenia,” he was quoted as saying. “It is the modernisation and re-equipment of the healthcare system. Here, too, we must take measures.”

In the region, only Tajikistan and Turkmenistan have not reported any infections, to the derision of observers who think it is unlikely that either country has escaped the coronavirus that has been ripping across the world since it appeared in central China in December. 

Armenia and Kazakhstan have been worst hit by the coronavirus, with 822 and 569 people infected by April 5, but Kyrgyzstan appears to be most vulnerable economically. Kyrgyz President Sooronbai Jeenbekov has already asked for emergency financial support from the IMF.

As for the intensified lockdowns, the Kazakh authorities have told people that they can only leave their homes every other day and in Azerbaijan people have to notify the police via an app or an SMS if they are going out onto the street.

In Armenia, where PM Nikol Pashinyan had only a few weeks ago said that the coronavirus could easily be beaten, the government has ordered all businesses, restaurants and cafes to close until at least April 10.

He has been criticised for holding referendum campaign rallies in March that may have contributed to the spread of the coronavirus.

“Compared to Azerbaijan and Georgia, our corona infection stats are higher. Am I the first to say that the reason for this is the referendum campaign?” said Samvel Grigoryan, a public health analyst. 

A referendum on the status of the country’s top judges had been set for April 5. This has now been postponed.

Armenia’s government has said that the rate of infection is slowing, but people told The Bulletin’s correspondent that they are worried.

“We need to obey,” said Margarita Aghayan, 56, who is confined to her two-room apartment in a Yerevan suburb with her husband, her daughter and granddaughter.

“I feel very scared. I feel horror. I am scared of the people who don’t take this seriously.”

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— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Kazakhstan cuts its interest rate to help business deal with the coronavirus

APRIL 3 (The Bulletin) — Having increased its key interest rate to 12% from 9.5% last month to try to prop up its ailing currency against the dual impact of a collapse in oil prices and the spread of the coronavirus, Kazakhstan’s  Central Bank slashed it back down to 9.5%.

It said that the interest rate cut was needed to help businesses emerge intact from the economic fallout of the coronavirus pandemic. 

Kazakhstan has also been one of the first countries in the region to admit that its economy may contract after the shock of the pandemic.

Kazakhstan’s deputy finance minister Berik Sholpankulov said that the government would borrow $3b on foreign capital markets to fund economic recovery projects which include a massive state-sponsored construction spree that will employ thousands of people.

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— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Kazakh car factory to start producing Chevrolets

APRIL 1 (The Bulletin) — Kazakh car factory SaryarkaAutoProm in Kostanay launched the start of production of Chevrolet cars under licence from Uzbekistan’s state-owned UzAuto. Company officials said that it wanted to produce 26,000 cars in the first year, rising to 100,000 in later years. The expansion into Kazakhstan was planned by UzAuto before the spread of the coronavirus.

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— This story was first published in issue 441 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020

Kazakhstan raises interest rates to protect currency against the coronavirus

MARCH 26 (The Bulletin) — Faced with a collapse in the value of its tenge currency, the Kazakh Central Bank raised interest rates by 2.75 percentage points to 12% on March 9. It confirmed on March 16 that it was going to maintain this rate. 

On March 24, Kazakhstan also banned the export of all foodstuffs. Officials said that food was needed in Kazakhstan for now and that it could not afford to be exported. The government has also cut its economic outlook for 2020 partly, it needs to be stressed, because of the collapse of oil prices.

On March 17, the government also announced a series of tax cuts and cheap credit initiatives which it said would help business recover from the shock of the coronavirus. Retailers, restaurants, cinemas and other business forced to close because of lockdowns linked to curtailing the spread of the coronavirus will be exempt from property tax for a year. Banks have been told to defer loan repayments and the government will spend $750 million on infrastructure projects which will create 120,000 jobs.

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— This story was first published in issue 440 of the Central Asia & South Caucasus Bulletin

— Copyright the Central Asia & South Caucasus Bulletin 2020