Tag Archives: Kazakhstan

Kazakhstan increases arbitration claim against international oil companies

ALMATY/APRIL 17 2024 (The Bulletin) — Kazakhstan has increased an arbitration claim initially lodged last year against international energy companies to more than $150b, sources told Reuters. 

The claims, focused on the Kashagan and Karachaganak oil and gas fields, are based on alleged lost income by Kazakhstan. The increase from $16.5b makes the arbitration claim one of the world’s biggest.

Reuters quoted a “source with knowledge” of the case as saying that the new litigation claim “reflected the calculation of the value of oil production that was promised to the government but not delivered by the field developers”.

Kazakh officials and Western oil companies have not commented on the new figure, although they confirmed that they are involved with unspecified attribution proceedings.

Kashagan and Karachaganak are two of Kazakhstan’s biggest oil and gas fields. Both have been the focus of legal disputes with the Kazakh government previously. Kazakh officials have said they were unfairly dealt with in the 1990s when oil companies were making deals to exploit fields in newly independent former Soviet states.

In 2020, the Karachaganak partners paid out $1.9b to settle an arbitration dispute with Kazakhstan. Kazmunaigas, the Kazakh state oil and gas company, is now a shareholder in both projects.

Analysts have said that arbitration claims are part of the risk of doing business in Kazakhstan and that international companies factor this risk into their costs.

The specifics of the current dispute have not been disclosed, although Kazakh officials have said that it is a purely commercial dispute that will be settled through the courts.

“The sides are going to resolve it within the arbitration framework,” the Kazakh energy ministry said.

Italy’s Eni is the main developer at Kashagan and also at Karachaganak, alongside Shell.

ENDS

— This story was published in issue 565 of the Central Asia & South Caucasus Bulletin, on April 23 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Tokayev wants stronger Kazakhstan-Armenia trade links

APRIL 16 2024 (The Bulletin) — On a trip to Yerevan, Kassym Jomart Tokayev, Kazakhstan’s president, said that he wanted to boost Kazakh exports to Armenia to $350m/year. This was Mr Tokayev’s first official visit to Armenia. It came as Yerevan tries to weaken links with Russia and boost ties with the West.

ENDS

— This story was published in issue 565 of the Central Asia & South Caucasus Bulletin, on April 23 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Trial of former economy minsiter for murder is an opportunity for Kazakhstan

>> The trial of a former economy minister in Kazakhstan for murdering his wife is a chance to improve the country’s shaming domestic abuse record, says James Kilner

APRIL 15 2024 (The Bulletin) –It’s not just the law’s view of domestic violence in Kazakhstan that has stained the country’s reputation. Attitudes need to change too.

It has taken the heinous murder by Kuandyk Bishimbayev of his wife last year to force Kazakh lawmakers to toughen punishment around domestic violence, but these laws will be no good if they are undermined by a system that doesn’t want women to speak out.

The UN has  demanded change. It said that 62,000 women in Kazakhstan reported abuse last year, although it has also said that the real number of victims is much higher.

Women are not encouraged to speak out in Kazakhstan’s strongly patriarchal society. 

They are expected to accept their beatings and to remain quiet and this means that progress on improving women’s rights is stunted. It’s one thing toughening punishment for men who abuse their wives or children, it is quite another to create a culture where women feel safe enough to speak out.

The case of Bishimbayev is a case in point. 

He is an ugly, corrupt and pathetic man who took his frustrations out on the women in his life by beating them. He hasn’t been convicted yet of the murder of his wife, Saltanat Nukenova, in November at a restaurant owned by a family member – but evidence is mounting. 

CCTV film shows him hitting Nukenova that evening. Her lifeless body lay on the floor of the restaurant for hours while Bishimbayev callously schemed over how to shift blame. 

He ordered the CCTV film to be wiped clean and for a chauffeur to drive Nukenova’s smartphone around Astana in the hope that it would fool people into thinking that she had been alive.

None of it appears to have worked. Bishimbayev’s only hope of avoiding years in prison appears to be pressuring the judge and using his privileged position as a member of the Kazakh elite to push for a light sentence. 

He’s pulled the trick before. In 2027, shortly after resigning as Kazakhstan’s economy minister, he was sent to prison for a decade for corruption but managed to walk free after only three years. 

Now, Kazakhstan has a chance to right these wrongs. It needs to sort out its terrible domestic abuse record, setting an example for the rest of the region, and it needs to imprison Bishimbayev for a long time.

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Comment: Trial of economy minister for murder is an opportunity to improve women’s rights

>> The trial of a former economy minister in Kazakhstan for murdering his wife is a chance to improve the country’s shaming domestic abuse record, says James Kilner

APRIL 15 2024 (The Bulletin) –It’s not just the law’s view of domestic violence in Kazakhstan that has stained the country’s reputation. Attitudes need to change too.

It has taken the heinous murder by Kuandyk Bishimbayev of his wife last year to force Kazakh lawmakers to toughen punishment around domestic violence, but these laws will be no good if they are undermined by a system that doesn’t want women to speak out.

The UN has  demanded change. It said that 62,000 women in Kazakhstan reported abuse last year, although it has also said that the real number of victims is much higher.

Women are not encouraged to speak out in Kazakhstan’s strongly patriarchal society. 

They are expected to accept their beatings and to remain quiet and this means that progress on improving women’s rights is stunted. It’s one thing toughening punishment for men who abuse their wives or children, it is quite another to create a culture where women feel safe enough to speak out.

The case of Bishimbayev is a case in point. 

He is an ugly, corrupt and pathetic man who took his frustrations out on the women in his life by beating them. He hasn’t been convicted yet of the murder of his wife, Saltanat Nukenova, in November at a restaurant owned by a family member – but evidence is mounting. 

CCTV film shows him hitting Nukenova that evening. Her lifeless body lay on the floor of the restaurant for hours while Bishimbayev callously schemed over how to shift blame. 

He ordered the CCTV film to be wiped clean and for a chauffeur to drive Nukenova’s smartphone around Astana in the hope that it would fool people into thinking that she had been alive.

None of it appears to have worked. Bishimbayev’s only hope of avoiding years in prison appears to be pressuring the judge and using his privileged position as a member of the Kazakh elite to push for a light sentence. 

He’s pulled the trick before. In 2027, shortly after resigning as Kazakhstan’s economy minister, he was sent to prison for a decade for corruption but managed to walk free after only three years. 

Now, Kazakhstan has a chance to right these wrongs. It needs to sort out its terrible domestic abuse record, setting an example for the rest of the region, and it needs to imprison Bishimbayev for a long time.

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Markets: Kazakh Central Bank decides against interest rate cut

APRIL 16  2024 (The Bulletin) — The Kazakh tenge shifted up by 0.6% after the Kazakh Central Bank decided not to cut interest rates against market expectation. It is now trading at 448.4/$1, recovering from around 476/$1 six months ago.

The Central Bank said that inflation in March measured an annualised 9.1% which was slightly above expectations and that although global grain prices were recovering from the shock of the war in Ukraine, domestic pressures were keeping prices high.

“The domestic economy is still under inflationary pressure due to strong domestic demand and unanchored inflation expectations,” it said. Kazakhstan’s Central Bank targets inflation of 5%.

In equities, analysts said that heavy flooding in north and west Kazakhstan had spooked investors who had sold off stock in Kaspi.kz, the Kazakhstan fintech company which owns a super-app that most Kazakhs use to pay bills, pay taxes and buy consumer products.

It traded down as low as $103 in the past week, having hit a high of $123 after listing on the New York Stock Exchange in January. 

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Tokayev due to fly to Yerevan for talks

APRIL 15 2024 (The Bulletin) — Kassym Jomart Tokayev, Kazakhstan’s president, was due to fly to Yerevan for talks with Nikol Pashinyan, Armenia’s PM, in a potential swipe at the Kremlin. Armenia wants to reduce its links to Russia and by flying to Yerevan for talks Mr Tokayev may appear to be giving his support to this diplomatic shift.

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Floods in north Kazakhstan worsen

ALAMTY/APRIL 14 2024 (The Bulletin) — The Yesil River which runs through Petropavlovsk burst its banks as the worst flooding in generations continued to ravage north and west Kazakhstan.

Kazakhstan’s emergencies ministry said that more than 111,000 people and 106,000 animals have now been evacuated since the flooding started in March. Several people have died.

Kassym Jomart Tokayev, the Kazakh president, has also warned of a potential second wave of flooding, caused mainly by a sharp rise in temperatures which melted tonnes of snow in the mountains and on the steppe faster than usual.

“The government and akimats should quickly solve the problems of accommodating the affected people and providing them with the necessary assistance,” he said. “The situation at the evacuation points should be constantly monitored.”

Rivers across north and west Kazakhstan, as well as in southern Russia, that drain huge areas have swollen and burst their banks. Dams have been breached. 

Mr Tokayev has been quick to blame regional leaders for failing to prepare for the floods and for not handing out aid and preparing accommodation speedily.

And reports from the west of the country have said that local anger is rising.  In the town of Qulsary, near Atyrau, Radio Free Europe/Radio Liberty reported that people were demonstrating outside a local government building demanding compensation for the floods.

Demonstrators also said that they were worried about the spread of disease because floodwaters had churned up the decomposed bodies of people buried in shallow graves during Covid. 

Analysts have also warned that climate change may make mass flooding in Kazakhstan seasonal.

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Kazakhstan strengthens domestic violence punishments

ALMATY/APRIL 11 2024 (The Bulletin) — Kazakhstan’s Senate approved a bill to toughen punishment for domestic violence as the trial of a former economy minister for murdering his wife grips and horrifies the nation.

Kassym Jomart Tokayev, the Kazakh president, is expected to sign the bill into law this week.

Lawmakers in Kazakhstan have been motivated to toughen domestic abuse laws because of the public outrage triggered by the trial of Kuandyk Bishmbayev for beating to death his wife, Saltanat Nukenova, in a restaurant in Astana in November.

Activists have said that attitudes of men and officials towards women’s rights also need to change to cut domestic abuse rates.

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

CPC pipeline reopens after shut down

APRIL 11  2024 (The Bulletin) — The 1,511km CPC oil pipeline resumed exports after a scheduled two-day shutdown at its export harbour at the Russian port of Novorossiysk in the Black Sea. CPC is vital for Western oil supplies and is exempt from international sanctions even though it travels across Russia from West Kazakhstan. CPC plans to export 70m tonnes of oil this year, up from 63m tonnes last year.

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Electricity prices in Kazakhstan rise by 26%

APRIL 10 2024 (The Bulletin) — Electricity prices in Kazakhstan have risen by 26% this year compared to 2023, Kazakh media reported. Electricity prices are sensitive and can trigger protests but governments have said that massive investment is needed in power generation capacity to meet increased demand. Several power stations in Kazakhstan broke down this year because of increased demand triggered by a cold winter.

ENDS

— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024