APRIL 2 2015 (The Conway Bulletin) – Chinese company CITIC has agreed to build a vital fourth Kazakh oil refinery in Aktau, Forbes Kazakhstan reported. The deal was arranged during a trip last month to China by Kazakh PM Karim Massimov. The project should cost around $6b and will be completed within 5 years.
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(News report from Issue No. 226, published on April 8 2015)
APRIL 5 2015 (The Conway Bulletin) – Kazakhstan will give car-makers 35b tenge ($188m) to help them survive the economic downturn, media reported quoting First Vice Minister for the Economy, Marat Kussainov. Kazakhstan’s car-makers have been hit hard by the sharp drop in the rouble because Russia was one of its biggest markets.
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(News report from Issue No. 226, published on April 8 2015)
APRIL 6 2015 (The Conway Bulletin) – People in Kazakhstan, it appears, are still rushing to buy cheap Russian goods.
Official data showed that in February Kazakhs across the country bought 3.5 times more roubles than they did a year earlier.
In some areas, the rise was even bigger. In Mangistau, western Kazakhstan, the increase between February 2014 and February 2015 was nearly 19 times, Almaty the increase was 18 times and in Kyzylorda region of southern Kazakhstan the increase was nearly 35 times.
Russian goods have become far cheaper over the last few months because of the near 50% devaluation of the Russian rouble. Most Central Asian states have also devalued their own currencies but Kazakhstan has said that it will resist a sudden cut.
It knocked 20% off the value of its tenge currency last year and sees defending it as the best way to retain credibility.
Still, analysts have said that it is only a matter of time before Kazakhstan relents and cuts the tenge by up to 40%.
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(News report from Issue No. 226, published on April 8 2015)
MARCH 27 2015 (The Conway Bulletin) – During a briefing, Senator Yertargyn Astayev, a member of parliament’s budget committee, said ministries might not have enough cash to fulfil projects unveiled by Mr Nazarbayev’s Nurly Zhol party.
According to Mr Astayev, the interior ministry, which deals mainly with law enforcement and migration issues, will soak up the largest budget cut of $225m.
But, importantly, Mr Astayev also said finances earmarked for large infrastructure projects were going to be “placed under strict control”.
The hint was clear. The investments envisaged by Mr Nazarbayev are under threat.
Economic turmoil in the region has forced Kazakhstan into cutting the budget.
Mr Nazarbayev said that various departments had to save a combined $3.3b.
And the cutbacks have caught the public’s attention too.
Rauan, a 43-year-old engineer from Almaty said the government should ditch various high-profile but less useful projects such as EXPO-2017.
“Now we are funding these projects, designed only to feed our pride, at our own expense,” he said. “Perhaps our ambitions are too high.”
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(News report from Issue No. 225, published on April 12015)
MARCH 27 2015 (The Conway Bulletin) – On a trip to Beijing, Kazakh PM Karim Massimov signed deals with his Chinese counterpart, Li Keqiang, worth $23.6b. The deals covered a range of industries from steel and glass production to oil refining and hydropower. China and Kazakhstan have increased cooperation in the past few years.
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(News report from Issue No. 225, published on April 12015)
MARCH 25 2015, ALMATY (The Conway Bulletin) — Nurlan Kapparov, a key member of Kazakh President Nursultan Nazarbayev’s inner cortege and head of the Kazakh nuclear agency Kazatomprom, died of a suspected heart attack while on a business trip to Beijing. He was 44-years-old.
Slick and Western-educated, Kapparov was part of the post-Soviet wave of loyal bureaucrats who helped Nazarbayev retain his grip on power. Having headed state energy company KazakhOil, been Kazakhstan’s environment minister and, most recently, head of the state nuclear agency KazAtomProm, sources said that Kapparov had the potential to be a senior government minister.
While he never openly showed such lofty ambition, his presence in and around the government was keenly felt. He acted in the shadows, influencing Kazakhstan’s transition to a more nationalist energy policy. In 2000, as a young vice-minister of energy he was able to negotiate an increase in Kazakhstan’s share of the Tengiz oil field, to the detriment of the US’s Chevron.
Kapparov was also a powerful businessman. The Lancaster Group — which can be traced back to him — is the conduit through which several joint ventures with oil and mining multinationals accessed the Kazakh market. With strong ties to ENI and Saipem, Kapparov had been president of the Kazakhstan-Italy Business Council.
Kapparov had been in China together with Kazakh PM Karim Massimov to strike a handful of multi-billion dollars deals. Ahead of the main deal-making day, he was discovered on the floor of a lavatory in a Beijing restaurant. He had died of a suspected heart attack.
Hundreds gathered in Almaty to mourn his death at the Academy of Sciences although, importantly, veterans and state officials were bussed in to increase attendance. The divide between the government and ordinary people in Kazakhstan is such that enough the sudden death of senior officials is greeted with indifference.
Ambition and acumen brought Kapparov to power and his loss will be felt by the government.
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(News report from Issue No. 225, published on April 12015)
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APRIL 1 2015 (The Conway Bulletin) – Kazkommertzbank, one of Kazakhstan’s largest banks, named American Marc Holtzman as its new chairman, replacing Nurzhan Subkhanberdin. Mr Subkhanberdin remains a major shareholder in Kazkommertzbank. He lives mainly in London and has backed opponents of Kazakh president Nursultan Nazarbayev.
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(News report from Issue No. 225, published on April 12015)
MARCH 26 2015, Almaty (The Conway Bulletin) – Cyan coloured labels proudly proclaiming “Made in Kazakhstan” have appeared in supermarkets across Kazakhstan, part of a government drive to promote local products.
Data collected by a Bulletin correspondent, though, suggested some labels may be misleading, perhaps even farcical.
At three supermarkets in central Almaty, basic agriculture goods — milk, cheese, yogurt — carrying the label did appear to be genuinely made in Kazakhstan but Italian chocolates and Belgian and French beer, all imported from Europe, also carried the label.
The Kazakh news magazine Vlast also looked into the veracity of the “Made in Kazakhstan” labels.
In its investigation, Vlast said that some ice cream and sweets sold as Kazakh had actually been made in Russia, part of the flood of Russian goods imported into Kazakhstan since the devaluation of the Russian rouble.
When Kazakh president Nursultan Nazarbayev announced the “Made in Kazakhstan” drive earlier this year he wanted the label to stimulate the local economy. It currently needs more oversight or risks becoming meaningless.
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(News report from Issue No. 225, published on April 12015)
MARCH 26 2015 (The Conway Bulletin) – Geo-Jade Petroleum, a Chinese energy company, said it will buy KoZhan, a Kazakh energy company, for around $350m, media reported. KoZhan is owned by the so-called Eurasian Trio of Kazakh oligarchs.
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(News report from Issue No. 225, published on April 12015)
APRIL 1 2015 (The Conway Bulletin) – Apparently not content with bidding to host the 2022 Winter Olympics, Kazakh officials have said they are considering a bid to host the 2026 Football World Cup. The Football World Cup is perhaps the world’s biggest sports tournament.
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(News report from Issue No. 225, published on April 12015)