Tag Archives: Kazakhstan

Fluor wins Kazakh oil field contract

JAN. 24 2017 (The Conway Bulletin) — The Britain-based subsidiary of the US’ Fluor said that it had won a two-year engineering services deal with the North Caspian Operating Company (NCOC), the consortium of companies exploiting the giant Kashagan oil field in the Kazakh sector of the Caspian Sea. No value was put on the contract but it will be a boost to Fluor which has developed a strong regional strand of work.

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(News report from Issue No. 314, published on Jan. 27 2017)

Kazakh ministry confirms bird flu

JAN. 20 2017 (The Conway Bulletin) — Kazakhstan’s agriculture ministry confirmed that the H5 flu virus had been found in wild swans in the west of the country. A few days earlier two dead swans had been found in Atyrau. The H5 strain of bird flu can be passed onto people although it is not as infectious or as deadly as the more well-known H5N1 virus.

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(News report from Issue No. 314, published on Jan. 27 2017)

Malaysia to invest in Kazakh oil fields

JAN. 20 2017 (The Conway Bulletin) — Nakamichi Corporation Berhad, a Malaysian independent oil company, signed a deal with Aktau Transit to invest $146m in two oil fields in west Kazakhstan. The deal commits the two companies to explore the oil fields.

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(News report from Issue No. 314, published on Jan. 27 2017)f

 

Stock market: KAZ Minerals

JAN. 27 2017 (The Conway Bulletin) — Shares in Kazakhstan-based copper producer KAZ Minerals pushed up to near a four-year high of 449p on Jan. 25 just before bullish 2016 results.

In the results, CEO Oleg Novachuk also said that output growth will continue in 2017.

“I am pleased that we have achieved our copper and byproduct guidance for 2016, a 73% increase in copper output on the prior year, as we successfully ramped up Bozshakol and the Aktogay oxide plant,” he said. “Our growth will continue in 2017 as Bozshakol reaches capacity and we commence production from sulphide ore at Aktogay.”

Mr Novachuk also said that KAZ Minerals’ results had been pushed up by lower-than-expected costs.

The share price of KAZ Mineral, which used to be called Kazakhmys and has been linked closely to the Kazakh elite, has nearly quadrupled in a year far out-stripping a 30% increase in copper prices. For comparison – at the end of 2015 KAZ Minerals’ share price bottomed out at under 100p.

Stock analysts put the increase down to KAZ Minerals’ new plants coming online. Some also indicated that they thought there more value in the stock in 2017 with a buy rating.

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(News report from Issue No. 314, published on Jan. 27 2017)

Comment: Nazarbayev announces constitutional changes, writes Hagelund

JAN. 27 2017 (The Conway Bulletin) — In an unusual step, Kazakh President Nursultan Nazarbayev took to the airwaves to announce constitutional changes, suggesting the septuagenarian has fired the starting gun for his succession. Proposed amendments to Kazakhstan’s constitution were received with scepticism by the Kazakh people; yet they include changes that will prove significant.

Planned limits on presidential power have little immediate impact as Nazarbayev’s personal, informal influence determines the rules of the game. However, in the post-Nazarbayev era, formal institutions are likely to play an increasingly influential role.

Nazarbayev is setting the scene for his successor to be less powerful. This likely reflects recognition on his part that no individual has the authority or legitimacy to succeed him as a strongman (or –woman) ruler. While the proposed strengthening of parliament will not result in a multi-party democracy, a form of pluralism already exists with elite factions supporting differing policies.

Verisk Maplecroft considers intra-elite differences the only plausible source of a more competitive political environment in the immediate post- Nazarbayev era, but they equally raise the potential for instability. Elite factionalism is currently mediated by the president, but with a less powerful successor facing a potentially more vocal and influential government and parliament, the scene is set for more overt elite clashes.

In the absence of strong state institutions, clashes over policy – or of personalities – risk undermining government stability. A particular cause for concern is therefore Kazakhstan’s weak rule of law, specifically the little emphasis Nazarbayev put on the importance of the judiciary in refereeing the balance of power between different branches of government.

A more complex collective system of government would be a step-change in the political landscape for businesses after a quarter of a century of

relative stability. Collective government implies less clarity around who the power brokers are, particularly as the system is established and elite jostle for power.

When the time comes, navigating Kazakh politics will, in all probability, prove challenging. Policy and political volatility is bound to increase without a single power broker to mediate between different factions of the ruling elite.

By Camilla Hagelund, senior Europe analyst at risk consultancy Verisk Maplecroft

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(News report from Issue No. 314, published on Jan. 27 2017)

US court sentences Kazakh IS supporter

JAN. 20 2017 (The Conway Bulletin) — A Kazakh national arrested at New York’s JFK Airport in 2015 admitted in court to being a sympathiser of the radical IS group, US media reported. Ahror Saidahmetov, 21, who was living in New York at the time of his arrest, faces 15 years in jail. Kazakhstan and other countries in the region have been fighting IS recruitment.

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(News report from Issue No. 314, published on Jan. 27 2017)

Kazakh court gives editor suspended sentence

JAN. 25 2017 (The Conway Bulletin) — A court in Astana gave Bigeldi Gabdullin, the 61-year-old editor of the Central Asia Monitor newspaper, a five year suspended jail sentence after he pleaded guilty to trying to extort bribes from officials. Media freedom activists said Gabdullin had only avoided a jail sentence because he had been pressured into admitting guilt.

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(News report from Issue No. 314, published on Jan. 27 2017)

Kazakhstan scraps helicopter manufacturing

ALMATY, JAN. 24 2017 (The Conway Bulletin) — Eurocopter Kazakhstan Engineering, a headline joint-venture set up in 2011 between Kazakhstan Engineering National Company and France’s Airbus Helicopters, has stopped manufacturing helicopters because of the economic slowdown, its CEO, Timur Tilinin, said in an interview with the pro-government Astana Times newspaper.

The company was licensed to manufacture the Eurocopter 145, a twin engine utility helicopter that can be used as passenger transport or for search and rescue missions. It can carry up to nine passengers and two crew.

Mr Tilinin said that Eurocopter Kazakhstan Engineering was the backbone of the Kazakh aviation industry and that it had manufactured 26 Eurocopter 145s since 2011, eight for the ministry of defence and 18 for the ministry of interior’s emergency service.

“Unfortunately, due to the (economic) crisis we halted the project,” he said. “In mid-2015, ECKE launched a transformation plan to move from pure manufacturing to, first, becoming the distributor of Airbus helicopters in all Central Asia and, second, performing maintenance of the aircraft. We do the maintenance of all the helicopters we have produced.”

Moving from manufacturing helicopters to being a distributor service centre will dent the prestige of the project. It also underlines just how heavily Kazakhstan has been hit by the economic downturn.

Government agencies, Eurocopter Kazakhstan Engineering’s only clients, have been hard hit.

Part of the distribution process involves reassembling helicopters which are manufactured in Germany and then dismantled for export.

Kazakhstan is striving to broaden out its industrial base away from oil and gas.

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(News report from Issue No. 314, published on Jan. 27 2017)

Kazakhstan discovers new oil field

JAN. 24 2017 (The Conway Bulletin) — Kazakhstan’s energy ministry said that it had found a new oil and gas field in the west of the country. The field, known as Ansagan, is located Zhylyoi region near Atyrau. Officials didn’t give any indication of the scale of the find but said instead that exploration was continuing. Kazakhstan’s economy is reliant on oil and gas.

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(News report from Issue No. 314, published on Jan. 27 2017)f

 

 

Kazakh President promises to empower Kazakh parliament

ALMATY, JAN. 25 2017 (The Conway Bulletin) — In a televised address to the nation lasting 9-1/2 minutes, Kazakh President Nursultan Nazarbayev described how he wanted to bring in a series of reforms that would shift power from the president to parliament.

The main proposals focused on how the government was formed. Currently,Mr Nazarbayev appoints all the key positions in government and the state’s main agencies. This was a task that he said he wanted to hand over to the PM. He also said that he wanted parliament to have more say over social and economic issues.

“The point of the proposed reform isina serious redistribution of powers and democratisation of the political system as a whole,” he said during this address in both Kazakh and Russian with his trademark formal and deadpan delivery.

The speech, though, was short on detail and lacked a timeframe for the proposed changes. Although the aim of the speech appears to be to burnish Mr Nazarbayev’s credentials as a democrat and to ease concerns that he doesn’t have a succession plan, the main reaction was derision.

In Almaty, Mikhail, 29, said: “This is another imitation and an attempt to shift the responsibility for worsening living conditions.”

And analysts said Mr Nazarbayev appeared eager to disengage from difficult social and employment policies but retain control of duties linked to foreign policy and security. “It’s almost like he wants to pass off responsibility for the really hard stuff,” said Bruce Pannier, a Central Asia analyst at RFE/RL.

Not everybody was downbeat.

“That sounds great, nonetheless these reforms require strengthening of mass media and freedom of speech,” said Galym, 26.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 314, published on Jan. 27 2017)