Tag Archives: Kazakhstan

inApril makes deal with Kazakhstan-based Geo Energy

JUNE 30 2016 (The Conway Bulletin) – inApril, a Norwegian oil and gas service company, said it had reached a deal with Kazakhstan-based Geo Energy Group to supply it with a seismic acquisition system. The deal, worth up to $30m, according to inApril, will improve the technological footprint of Geo Energy Group, which provides seismic assessments of oil and gas basins in offshore sections of the Caspian Sea.

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(News report from Issue No. 287, published on July 1 2016)

Kazakhstan and Iran to build refinery

JUNE 27 2016 (The Conway Bulletin) — Kazakhstan and Iran will build a new refinery in the Iranian Caspian Sea port of Amirabad, Golestan,specifically to process Kazakh oil for export. It is unclear how much the refinery is going to cost to build and when it will be operational but it is probably the biggest single joint venture between the two countries since many Western sanctions on Iran were lifted in January.

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(News report from Issue No. 287, published on July 1 2016)

Brexit knocks economies in Kazakhstan & Georgia

JUNE 30 2016 (The Conway Bulletin) — Brexit, Britain’s vote to leave the EU in a referendum on June 23, pushed down stock markets, commodities and currencies worldwide, including in South Caucasus and Central Asia where politicians and business leaders warned of problems ahead.

Kazakhstan was hit by both currency instability and the sudden drop in oil prices, which fell below the $50/barrel threshold it had recovered to earlier this year after the rout of 2014 and 2015.

Uzakbai Karabalin, Kazakhstan’s former oil minister and now deputy chairman of the oil and gas lobby group KAZENERGY, said the government will have to revise down the baseline for oil prices in the national budget this year.

“[Brexit] has already affected oil prices,” he said. “The first response was a decline. Now the economic base price is $50/barrel.”

Previously, the government had said the baseline for this year could have grown to $60/barrel, so a drop to $50/barrel is a pessimistic assessment of the impact of Brexit.

Georgia, less impacted by low oil prices, felt the Brexit effect on its currency, the lari. The lari has fallen by 4.5% since June 23 and Dimitry Kumsishvili, the economy minister, blamed the Brexit result.

“This is most likely a one-off that is directly connected to the UK’s decision to quit the European Union. Of course, this immediately affects our currency,” Mr Kumsishvili said.

He warned that the impact of Brexit had only just started to feed through into the world’s economy and that more economic shocks in the region were likely.

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(News report from Issue No. 287, published on July 1 2016)

Kazakhstan wins UN Security Council seat

ALMATY, JUNE 28 2016 (The Conway Bulletin) — The UN General Assembly elected Kazakhstan to hold a non- permanent seat at the UN Security Council, with 138 votes in favour out of 193, a major PR coup for President Nursultan Nazarbayev who coveted the position and ordered a sustained campaign to win it.

And Mr Nazarbayev quickly hailed the news as a success.

“Kazakhstan’s election as a non- permanent member of the UN Security Council is a historic achievement. This is not only our country’s success but that of the entire sub-region of Central Asia,” he said.

Kazakhstan will hold the seat at the 15-member Security Council for two years, from Jan. 1 2017. It is the first country in Central Asia to hold the position. Azerbaijan held anon- permanent seat at the UN Security Council in 2012/13.

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(News report from Issue No. 287, published on July 1 2016)

Lithuania refuses Shalabaev extradition for Kazakhstan

JUNE 28 2016 (The Conway Bulletin) – In a snub to the Kazakh government, a court in Lithuania said that it won’t order the government to detain and extradite the brother-in- law of Mukhtar Ablyazov, the billionaire former opposition leader. Syrym Shalabayev is the brother of Ablyazov’s wife. He was given asylum in Lithuania. Ablyazov is in French custody fighting extradition charges to Kazakhstan for allegedly stealing $5b when he was chairman of BTA Bank.

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(News report from Issue No. 287, published on July 1 2016)

Kazakh Air Astana starts flights to Iran

JUNE 30 2016 (The Conway Bulletin) – Kazakhstan’s flagship carrier Air Astana said it started direct flights to Iran, after it had delayed starting the route in May. From June 30, Air Astana will fly three times a week between Almaty and Tehran. Kazakhstan and Iran have tried to boost business ties since western countries lifted sanctions on Iran in January.

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(News report from Issue No. 287, published on July 1 2016)

Currencies: Kazakhstan’s tenge, Azerbaijan’s manat

JULY 1 2016 (The Conway Bulletin) – Since mid-2014, a strong US dollar and downward pressures on oil prices have hit economies across Central Asia and the South Caucasus.

Currencies in the region suffered and, despite all the efforts from Central Banks to keep the exchange rate steady by intervening in the market, the fall was inevitable.

Compared to two years ago, all currencies have lost between 15% to 50% of their value. Oil exporting countries (in green in the graph) have fared worse than oil importing countries (pictured in red).

The Kazakh and Azerbaijani Central Banks decided to abandon the currency peg to the US dollar in 2015, causing a plunge in the value of the tenge and the manat. In 2015, these two were among the worst-performing cur- rencies in the world, not just the region.

Oil importers have acted in the opposite direction. In Georgia and Kyrgyzstan, currencies stabilised in the second half of 2015 and Central Banks have tightly controlled exchange rates since.

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(News report from Issue No. 287, published on July 1 2016)

SCO leaders gather in Uzbekistan for summit

JUNE 23 2016 (The Conway Bulletin) – The presidents of Kazakhstan, Kyrgyzstan and Tajikistan gathered in Tashkent to kick-start the summit of the Shanghai Cooperation Organisation (SCO), together with their colleagues from Russia and China and Uzbek host, President Islam Karimov. The members are set to vote on June 24 to begin the membership process for India and Pakistan, currently observer countries.

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(News report from Issue No. 286, published on June 24 2016)

Kazakh oil producer restarts output

ALMATY, JUNE 21 2016 (The Conway Bulletin) — Aral Petroleum Capital, a small oil company owned by Canada’s Caspian Energy, said it had restarted oil production at the East Zhagabulak field in Kazakhstan after cutting output to zero because of the sharp fall in oil prices.

This is good news for the Kazakh oil sector, which has seen production fall from some of its least economical fields and may also indicate that other oil companies who have cut production would follow with price rises.

Aral said it welcomed the Kazakh government’s decision to cut customs duty on oil to $30/tonne from $40/tonne in February.

Michael Nobbs, chairman of Caspian Energy, said its subsidiary will now generate cash flow to boost investment as well as pay back creditors. Mr Nobbs, however, warned that creditors could hinder progress. “If a creditor were to take action to seize or block access to Aral’s bank accounts, Aral’s ability to continue producing would be seriously jeopardized,” Mr Nobbs said in a statement.

Aral operates the Zhagabulak oil field, located in the north-western Aktobe region, near Kenkiyak.

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(News report from Issue No. 286, published on June 24 2016)

Person in the news: Asset Issekeshev, the new mayor of Astana

JUNE 20 2016 (The Conway Bulletin) – An urbane, English-speaking former civil servant who has quickly climbed up through the ranks, Asset Issekeshev, 44, is the prototype of Kazakhstan’s new generation. One of his most high-profile colleagues is Baurzhan Baibek, 42, mayor of Almaty since August 2015, forming a duopoly of power in the country’s most important civic positions.

But while Mr Baibek received a government grant to study in Germany, Mr Issekeshev’s education was completed in Kazakhstan, at the Al-Farabi University in Almaty, with a Law degree.

A Karaganda native, Mr Issekeshev then graduated from the Higher School of Public Administration, an aspiring model school for politicians.

Since the late 1990s, Mr Issekeshev has worked his way through government bodies, reaching the post of minister of industry and trade in 2009. Under him, the ministry underwent two successive reorganisations, first it changed name to the ministry of industry and new technologies and in 2014 to the ministry for investment and development.

Now the ever loyal Mr Issekeshev has claimed a top job as the mayor of Astana. Adilbek Dzhaksybekov, named chief of the presidential administration this week, was the incumbent before Mr Issekeshev took over on June 21.

Other notable mayors include Umirzak Shukeyev, currently chief of Kazakhstan’s sovereign wealth fund Samruk-Kazyna, and Imangali Tasmagambetov, currently minister of defence and formerly Kazakh PM.

Throughout the history of independent Kazakhstan, the post of Astana mayor has proved to be a powerful springboard. When President Nursultan Nazarbayev wants to

raise the profile of a career-bureaucrat, the mayoral position in Astana is a perfect position.

Next year, the much awaited and heralded EXPO will take place in Astana, and Mr Issekeshev will be the young face of the shiny Kazakh capital.

The public likes him and local political observers highly regard him. He ranked as the most popular minister in the country last year, in a poll organised by KIPR, a local think-tank. In June 2013, he was named among the top ten of Kazakhstan’s most powerful elite people, according to the Strategiya think-tank.

This, perhaps, puts him in a strong position to play a role inMr Nazarbayev’s succession plans.

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(News report from Issue No. 286, published on June 24 2016)