Tag Archives: Kazakhstan

Kazakh beer king imprisoned for funding coup

ALMATY, NOV. 8 2016 (The Conway Bulletin) — A closed court in Astana sentenced Tokhtar Tuleshov, the self- styled beer king of southern Kazakhstan, to 21 years in prison for attempting to stage a coup against Kazakh leader Nursultan Nazarbayev.

Prosecutors had said that Tuleshov had financed a series of anti- government protests in April and May that focused on land ownership. The breadth of the protests and their leaderless nature unnerved Mr Nazarbayev. Police arrested the protest organisers and charged Tuleshov, detained in January for unrelated charges of illegally owning weapons and fraud, with financing the demonstrations.

Tuleshov made his millions through the Shymkentpivo brewery, one of the biggest in Kazakhstan, in the southern city of Shymkent.

His supporters say that he has been framed and point out that it is not possible for him to have paid for the protests from prison.

An ostentatious and dapper figure, Tuleshov used to drive through the scruffy streets of Shymkent in a chauffeured Rolls Royce. Birthday parties for his daughter were lavish affairs with pop stars flown in to sing and guests dressing up in outlandish fancy dress.

The trial was held behind closed doors with journalists only allowed into the courtroom for the final verdict. Human rights activists have said that the arbitrary and closed nature of the trial worried them and could set a precedent.

Analysts have also speculated that Mr Nazarbayev and other senior members of the government from the central and northern tribes in Kazakhstan used Tuleshov to send a warning to high-ranking members of the southern tribe not to challenge their dominance.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Kazakh government holding seeks Japan loan

NOV. 9 2016 (The Conway Bulletin) — Baiterek, a Kazakh government holding, said it secured a $300m loan from Japan’s SMBC, part of the Sumitomo group. The agreement, signed during President Nursultan Nazarbayev’s visit to Japan, will support the supply of high-tech equipment. The Kazakhstan Development Bank, a subsidiary of Baiterek, will receive the funds and finance joint projects with Japanese companies.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Comment: C.Asia and S.Caucasus eye up a Trump presidency, says Kilner

NOV. 11 2016 (The Conway Bulletin) — Donald Trump, the incoming US president, has a long list of issues that need tackling in Central Asia and the South Caucasus, not least the dominance of China and Russia.

Central Asia, in particular, has traditionally been an arena where the world’s great powers have shadow-boxed, testing each other’s strengths and weaknesses. This is just as true today as it was during the 19th century’s Great Game between Russia and Britain. Now, though, China has entered the fray and the West is led by the US and not Britain.

Since NATO withdrew most of its forces from Afghanistan in 2013/14, US interest in Central Asia has waned and it has ceded diplomatic, economic and cultural influence to Russia and China.

When she was Secretary of State between 2009 and 2013, Hillary Clinton promoted a new north-south Silk Road running from Central Asia to India. This was to be US soft power in action, a commercial push to rival influences exerted by China through its loans and by Russia through its diplomatic and energy levers. It hasn’t shaped up to much, and Clinton wont now be able to see it through, but Trump, a businessman and reality TV star, may be well-placed to invigorate this north-south Silk Road.

Governments in Central Asia and the South Caucasus will also be watching his policies on NATO, Russia and Iran.

Georgia has, perhaps, the most to be concerned about. It has struck out on a determinedly Western direction and needs a strong US and NATO as a counterpoint to Russia. If the US’ commitment to NATO wanes, Georgia will be more vulnerable to Russian aggression. Certainly its two breakaway states, Russia-backed Abkhazia and South Ossetia, will feel emboldened.

Barack Obama brought Iran back into the international community by partly lifting sanctions linked to the development of its nuclear sector. Its reemergence was heralded in Central Asia and the South Caucasus as an opportunity. They will be looking to a US led by Trump to boost, and not deflate, Iran’s place in the world. They want Iran to be an economic driver.

And the US’ relationship with Russia is important too. If US-Russia relations don’t improve, and the Russian economy continues to shrink, this filters through to Central Asia and the South Caucasus.

They will be looking for an improvement in US- Russia relations to generate a boost for the Russian economy.

By James Kilner, Editor, The Conway Bulletin

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(News report from Issue No. 304, published on Nov. 11 2016)

Reserves drop in Kazakhstan

NOV. 10 2016 (The Conway Bulletin) — Kazakhstan’s Central Bank said its international reserves fell by 2.9% in October to $30.5b, the first decline in four months. Since the beginning of the year, reserves have grown by 13.8%, the Central Bank said. Last year the Central Bank spent a large proportion of its reserves trying to prop up its currency. This year, though, under a new Central Bank chief, the strategy has changed and the Bank has stepped away from intervention.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Tethys says Kazakh police raided its offices

ALMATY, NOV. 6 2016 (The Conway Bulletin) — Guernsey-registered Tethys Petroleum accused Kazakh police of raiding the offices of its subsidiaries in Kazakhstan days after a financing deal with Kazakhstan- based Olisol collapsed.

Tethys also said it had sacked Alexander Abramov, a principal at Olisol and director at Tethys, the day after the police raids . It accused Mr Abramov and Olisol of triggering the raids.

“We understand that the case was initiated by Mr Abramov. On November 2, 2016 the investigation division of the Internal Affairs Department of Almaty conducted searches of the Company’s offices,” Tethys said. Mr Abramov and Olisol have not commented.

Tethys, which operates oil and gas fields near the Aral Sea, also accused Olisol of other underhand business tactics.

The company said that its two main gas supply contracts were terminated shortly before a deadline for Olisol to pay its proposed investment. This allowed Olisol to back out of the agreement.

Essentially Tethys accused Olisol of deliberately scuppering its finance plans. Tethys had been relying on investment of $10m from Olisol, in return for equity, to push through a tough period for the energy industry.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Kazakhstan’s flagship to put for auction

NOV. 3 2016 (The Conway Bulletin) — Kazakhstan’s sovereign wealth fund Samruk-Kazyna said it will put up for auction up to 25% of Air Astana, the country’s flagship carrier it co- owns with Britain’s BAE Systems. Samruk-Kazyna said that BAE Systems could also sell up to 25% of Air Astana, but that 51% of the shares should remain in the hands of Kazakh investors to comply with the law. Samruk-Kazyna owns 51% of Air Astana, BAE Systems owns the rest.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Female judges to deal with rape in Kazakhstan

NOV. 10 2016 (The Conway Bulletin) — Kazakhstan’s Prosecutor-General Zhakip Asanov said female attorneys should be in charge of all criminal trials involving sexual violence, such as rape and paedophilia. In a statement, Mr Asanov said women are better at understanding such cases. Rights groups have accused the Kazakh justice system of being soft on sexual violence.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Kazakh carmaker revives production

NOV. 4 2016 (The Conway Bulletin) — Despite a 29% fall in revenues, Kazakhstan-based carmaker AziaAvto turned a profit of 3b tenge ($8m) in the first nine months of 2016, compared to a loss of 13.4b tenge in the same period last year. In a statement, the company said that despite the slump in the market, AziaAvto has managed to contain costs and revive production. AziaAvto’s plant in eastern Kazakhstan produces cars for Lada, Skoda, Chevrolet and KIA.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Fire kills seven in Kazakh city

NOV. 6 2016 (The Conway Bulletin) — A fire in a residential building near the Almaty Towers complex killed seven people, mostly Kazakh university students. Investigators said that the likely causes of the fire were either a fault during ongoing construction works or an electrical short-circuit. One welder and six students died in the accident. The Almaty Towers complex is located near the circus in the western part of the city.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Georgia and regional governments welcome Trump election win

TBILISI, NOV. 5 2016 (The Conway Bulletin) — Governments across Central Asia and the South Caucasus welcomed Donald Trump’s win in the US presidential election on Nov. 4 and heralded it as an opportunity for the US to increase its engagement in the region.

Analysts have said that under President Barack Obama, the US’ interest in Central Asia and the South Caucasus has dropped. Both President Obama’s Secretary of States, Hillary Clinton and John Kerry, visited the South Caucasus and Central Asia but since the US and NATO pulled most of its forces out of neighbouring Afghanistan in 2013 and 2014, its interest has waned.

The only US president to have visited the region was George W. Bush in May 2005. He visited Tbilisi when Mikheil Saakashvili was president. Georgia is the US’ biggest ally in the region, sending its army to fight in both Iraq and Afghanistan and Georgian PM Giorgi Kvirikashvili welcomed Mr Trump’s win.

“I would like to extend my sincere congratulations to Donald J. Trump on his victory in the presidential elections,” he said. “American people voted for change, oriented on making US even stronger.”

His sentiments were echoed by other regional leaders but reaction on the street was less clear cut. In Almaty Aidana Omarova, a university lecturer, said she was appalled that Mr Trump had won the election.

“I cannot even imagine how such a sexist, racist and rude person can lead the US,” she said.

In Tbilisi Nana, a lawyer, was worried. “He wants to improve relations with Russia, that’s not very good for Georgia, in case we need support from the US,” she said. “Secondly he was extremely negative about immigrants and I know there are lots of Georgians who work in America and send money to their families.”

But in Dushanbe, Jakhongir, 29, a website developer, had a different viewpoint. He said the US election had been a great democratic exercise.

“I wish we could have such interesting elections debates here in Tajikistan, too,” he said. “Let’s see how Trump will behave, I think he will be more restrained in his words and actions now.”

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(News report from Issue No. 304, published on Nov. 11 2016)