Tag Archives: Kazakhstan

Kyrgyz econ minister slams Eurasian Economic Union

BISHKEK, OCT. 4 2016 (The Conway Bulletin) — Joining the Eurasian Economic Union (EEU) has made conditions worse for Kyrgyz businesses, economy minister Arzybek Kozhoshev said in some of the harshest criticism so far levelled at the Kremlin-focused project.

Kyrgyzstan joined the EEU last August but has always been a reluctant partner — the other partners are Russia, Kazakhstan, Armenia and Belarus — with businesses speaking out about the extra red tape and the risk of damaging important trade relations with China.

Now Mr Kozhoshev said that data showed extent of the damage.

“The first year in the EEU has not shown any positive results yet. Some economic indexes have worsened and export volumes have dropped,” Mr Kozhoshev said at a business forum.

“Textile exports dropped by 21.5% in the first half of the year compared to last year. Dairy products exports also fell by 24% in the same period. Our trade partners have created artificial barriers for our manufacturers.”

Kyrgyzstan’s economy has been under pressure, much like the rest of the region, but Mr Kozhoshev’s message was clear. Much of the problem, he said, was down to the EEU.

Coincidentally the two main architects of the EEU, Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev, were meeting in Astana for a Kazakhstan- Russia Business Forum. They had a very different take on the EEU.

During the session, Mr Nazarbayev lauded the EEU and encouraged all ministers to recount a positive story about the bloc.

“The Eurasian Economic Union is a key element in the revival of the Great Silk Road,” he was quoted by media as saying.

Some analysts in the West have said the driving force, and the Kremlin’s main aim, behind the EEU was political rather than economic.

ENDS

(News report from Issue No. 299, published on Oct. 7 2016)

Kazakh telecom profits grow

SEPT. 27 2016 (The Conway Bulletin) – Kazakhstan’s national telecoms operator Kazakhtelecom said in a financial statement that its operating profit grew 13.2% in H1 2016, compared to the same period last year. Revenues increased by 4.9%, mainly due to higher prices for its telecoms networks that it rents out to other companies. The merger of Altel, part of Kazakhtelecom, and Tele2 helped overall profits, which more than doubled in the first six months of the year.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh ministry requires solution from ArcelorMittal

SEPT. 27 2016 (The Conway Bulletin) – Kazakhstan’s ministry of investments and development said that steelmaker ArcelorMittal Temirtau needs to present a viable timetable to fix its financial problems or it could face legal prosecution. Albert Rau, the minister, told official media that the company could be using seasonal stoppages at its plant in central Kazakhstan to avoid finishing the year with a profit.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh journalist Matayev accuses elite of stitch up

ALMATY, SEPT. 27 2016 (The Conway Bulletin) — During his trial for various financial crimes, Seitkazy Matayev, the former head of the journalists union of Kazakhstan, accused Parliamentary Speaker Nurlan Nigmatullin and media tycoon Alexander Klebanov of organising his arrest in February.

The accusation that members of the Kazakh elite were behind his arrest underscores Matayev’s defiance during his trial and shines a rare spotlight on the powers and influences of the Kazakh elite. It has also peaked interest in the case, already one of the most high-profile corruption cases in Kazakhstan.

Matayev, who had once been press secretary to Kazakh President Nursultan Nazarbayev, and his son Asset are accused of stealing government money and tax evasion. Matayev’s trial is due to end on Oct. 3. Prosecutors have asked for six years and eight months jail term.

“Nigmatullin and Klebanov are among those who want to limit my professional activity by incriminating me of financial crimes,” Matayev said. “Nigmatullin once told me bluntly: ‘Give me KazTAG and everything will stop’, referring to months of harassment against me and my family.”

Nigmatullin and Klebanov have not responded.

KazTAG is the news agency which Matayev owns. He also owned the National Press Club in Almaty, which has now been destroyed.

Denis Krivosheyev, a political analyst, said Matayev’s case is reflection of the poor media environment in Kazakhstan.

“Seitkazy’s press club provided a platform for opposition journalists, which would irritate authorities to some extent, but he had also given prominence in his news outlets to topics that upset some elite members,” he said.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakhstan Airline to increase flights to China

SEPT. 28 2016 (The Conway Bulletin) – Kazakhstan’s flagship carrier Air Astana plans to increase air links to China and tap Kazakhstan’s potential as a transport hub. Peter Foster, the company’s CEO, said Air Astana aims to transport 1m Chinese tourists and businessmen within three years. To achieve this goal, the company aims to triple from 20 to 60 the flights it operates with China and to hire more Chinese-speaking staff.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh government appears confused over re-launching oil project

SEPT. 29 2016 (The Conway Bulletin) – Kazakhstan’s government appeared confused over when the giant Kashagan oil project in the Caspian Sea would re-start production after a three year hiatus to repairs leaky pipes. It first said that Kashagan would restart on Oct. 23, surprising analysts, before correcting themselves by announcing a year-end re-start date. Analysts have been expecting a year-end re-start.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Stock market: Central Asia Metals

SEPT. 30 2016 (The Conway Bulletin) – Kazakhstan-focused copper producer Central Asia Metals continued to gain this week, rallying on its positive half-year report it published in mid-September.

Its stock price in London was up 1.3% to 182.3 on Thursday compared to last week. It has averaged a growth of 1.2% over the past three weeks.

In its half-year report, published on Sept. 13, the company said it increased copper production by 27% to 6,908 tonnes, which helped its revenues to grow marginally to $30.9m despite a sharp fall in copper prices, which have fallen by 17.5% compared to last year.

Importantly too, the company managed to cut production costs by 40%.

“[H1 2016 was] another record period of copper production, resulting in a continued strong financial performance for the Group. The devaluation of the local currency has been a key factor in our reduced costs of production,” Nick Clarke, Central Asia Metals’ executive chairman said in a note.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh oil company revenue drops

SEPT. 28 2016 (The Conway Bulletin) – Kazakhstan-focused oil company Roxi Petroleum posted revenues of $896,000 in the first half of 2016, 7.6% lower than in the same period last year. After tax, the company posted a loss of $2.5m, compared to a profit of $13.2m last year when Roxi sold the Galaz oil field. In a statement, chairman Clive Carver stressed the importance of the company’s success in reducing operating costs.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Mosque staff in Kazakhstan file lawsuit

SEPT. 26 2016 (The Conway Bulletin) – Staff at the Nur-Gasyr mosque in Aktobe, the largest in the city, filed a lawsuit against their employer to claim salaries which they say have not been paid. The mosque has not commented. The unpaid salaries is a reflection of the tight economic conditions in Kazakhstan and how problems are filtering through Kazakh society. The Nur-Gasyr mosque is one of 13 Islamic worship buildings in Aktobe. It was built in 2008 and cost $16.6m to build.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)

Kazakh economy looking stronger

ALMATY, SEPT. 28 2016 (The Conway Bulletin) — Higher oil prices, cost cuts and the anticipated start-up of the Kashagan oil project will allow the Kazakh government to reduce transfers from the sovereign wealth fund into the budget for the next three years, the ministry of economy said.

For Kazakhs, who have endured two years of economic woe, a heavy devaluation of the tenge and cost cutting, the assessment by the economy ministry that things are finally looking up will come as a relief.

Kuandyk Bishimbayev, minister of economy, appeared before parliament to propose amendments to the 206-2018 budget.

“We had planned the budget with an average oil price of $30/barrel in mind. Now, given the increase over the past few months and the apparent stability at $40/barrel, we should revise the forecast to $35/barrel,” he told parliament. “Every five additional dollars in oil prices give us additional revenue in the form of export customs duties.”

Mr Bishimbayev also highlighted the restart of the Kashagan oil project in the Caspian Sea. Kashagan, the Great White Hope of the Kazakh energy sector, is due to restart oil production at the end of the year after a three year hiatus while leaks to pipes were repaired.

Kazakhstan’s oil production, and therefore income, is due to ramp up as soon as Kashagan comes on- stream.

The original budget plan called for 2,880b tenge ($8.5b) to be shifted from the sovereign wealth fund into the government’s budget. The amended budget cut the transfers by 401b tenge ($1.2b) or 14%.

Unsurprisingly, parliament approved the amendments.

ENDS

(News report from Issue No. 298, published on Sept. 30 2016)