Tag Archives: Kazakhstan

S&P downgrades Kazakhstan’s sovereign debt

FEB. 17 2016 (The Conway Bulletin) – Ratings agency Standard & Poor’s downgraded Kazakhstan’s sovereign debt ratings to BBB- from BBB because of the long-term low cost of oil. Standard & Poor’s also downgraded Saudi Arabia, Brazil, Bahrain and Oman at the same time. It said that oil accounted for 20% of Kazakhstan’s GDP.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

EBRD finances Kazakh road

FEB. 18 2016 (The Conway Bulletin) – The European Bank for Reconstruction and Development (EBRD) said it is giving Kazavtozhol a $103m loan to widen an 80km stretch of road in southern Kazakhstan on the main south-north highway. The EBRD has been an important driver of infrastructure projects in former Soviet Central Asia since the collapse of the USSR in 1991.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Kazakhstan lowers export duty

FEB. 15 2016 (The Conway Bulletin) – Kazakhstan will lower its oil export duty in March, Yerbolat Dossayev, minister of economy, said. He said the export duty will now be lowered to $30/tonne from $40/tonne. Mr Dossayev also said that the export tax would be scrapped altogether if the price of oil falls below $25/barrel. Oil producers in Kazakhstan have stopped producing oil because of high export taxes and low prices.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Dozens protest for jailed Kazakh PM

FEB. 17 2016 (The Conway Bulletin) – Around a dozen protesters in Astana demanded the release from prison of Kazakhstan’s former PM Serik Akhmetov, who is serving a 10-year sentence for corruption. Protests in Kazakhstan, especially supporting former high-ranking officials who have been imprisoned for corruption, are rare.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Kazakh Riot police steps in

FEB. 15/16 2016 (The Conway Bulletin) – Riot police in the southern Kazakh region of Zhambyl broke up a potential race riot after ethnic Kazakhs accused Turks of murdering a 16-year-old boy. Video from the confrontation showed police in full body armour with dogs trying to separate a group of people who had gathered around a house in the village of Burylov. The incident highlights the fragile social spectrum in regional Kazakhstan just as the economy worsens.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Carrefour opens first store in Kazakhstan

FEB. 16 2016 (The Conway Bulletin) – Kazakhstan’s President Nursultan Nazarbayev toured a newly-opened Carrefour supermarket in Almaty in a publicity stunt aimed at showing that despite a collapse in both oil prices and the tenge, Kazakhstan’s economy was still prospering.

Instead, though, the video of the Mr Nazarbayev’s walk-about appeared to betray how out-of-touch he was with ordinary people.

“Why are these called dirty,” Mr Nazarbayev said pointing at a pile of unwashed root vegetables – possibly carrots, possibly potatoes. “These are normal.”

Carrefour’s Kazakhstan director, Stephane Maurier, who was walking around the supermarket with Nazarbayev, explained. “We have clean and dirty,” he said.

Mr Nazarbayev, though, wasn’t impressed. “These are better than the clean ones,” he said and again pointed at the unwashed vegetables. “You don’t know what they are washed with.”

Things didn’t improve when Mr Nazarbayev, looking stiff in his tailored suit but smiling and apparently enjoying his trip to the supermarket, visited other sections.

He said the bananas were not ripe enough, told Mr Maurier croissants were unhealthy and dangerous and had to clarify with an elderly woman shopping for bread that 70 tenge ($0.2) was an average price for a loaf.

This particular Carrefour was located in the Grand Park shopping centre in Almaty. The franchise holder is Dubai-based Majid Al Futtaim Group which operates other Carrefour shops around the world.

It was the first of nine planned stores that Carrefour wants to open in Kazakhstan. Five of the stores will be located in Almaty; four in Astana.

The opening of the Carrefour stores will give Kazakhstan’s battered economy a boost, create hundreds of jobs and hand Mr Nazarbayev more photo-ops in supermarkets.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Alstom partners with Kazakh railway

FEB. 12 2016 (The Conway Bulletin) – French train-maker Alstom has bought another 25% stake in EKZ, its joint-venture in Kazakhstan with Kazakh state railway company Temir Zholy and Russia’s Transmashholding, media reported. The deal means that Alstom is now the majority partner in EKZ. It may also show Kazakhstan’s willingness to sell off part of its most cherished companies to foreigners so that it can raise cash during the worsening economic downturn.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Kazakh GDP rises by 1.2%

FEB. 18 2016 (The Conway Bulletin) – Kazakhstan’s statistic committee said the country’s GDP grew by 1.2% in 2015, its lowest rate for six years. The official figure is in line with what analysts expected. Both Halyk Finance, part of one of Kazakhstan’s biggest banks, and the Economist Intelligence Unit expect Kazakhstan’s GDP to shrink in 2016 if oil prices stay at $35/barrel.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Tele2 merges with Kazakhstan’s Altel

FEB. 10 2016 (The Conway Bulletin) – Swedish telecoms company Tele2 said a deal to merge its operations in Kazakhstan with Altel, owned by KazakhTelecom, was close to completion. The deal was announced last November. The new company will be 51% owned by Altel and 49% by Tele2, although the voting rights will be reversed. It will have a market share of around 22%, behind Kcell and Beeline, the brand name of Russia’s Vimpelcom.

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(News report from Issue No. 267, published on Feb. 12 2016)

 

Volume of Turkish goods entering Kazakhstan rises tenfold

FEB. 10 2016 (The Conway Bulletin) – The volume of Turkish products entering Kazakhstan through Aktau, its main Caspian Sea port, has increased by 10 times since Russia imposed sanctions on Turkey in December, media reported quoting the Kazakh Chamber of Entrepreneurs .

Turkish producers appear to have targeted Central Asia as a decent market since Russia imposed sanctions after a Turkish warplane shot down a Russian warplane over Syria.

Products are sent to Azerbaijan, a strong Turkish ally, and then shipped over the Caspian to Aktau.

The row has put countries in Central Asia and the South Caucasus in a difficult position as they need to maintain good ties with both neighbours. Russia has said it is monitoring Central Asia to make sure it is not used as a backdoor way for Turkish goods to enter the country.

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(News report from Issue No. 267, published on Feb. 12 2016)