Tag Archives: Kazakhstan

Kazakhstan fines ArcelorMittal

JUNE 17 2016 (The Conway Bulletin) – Steel producer ArcelorMittal Temirtau received a fine of 3.4m tenge (around $10,000) from the Kazakh government for failing to comply with its 2014 investment plan. The company, a subsidiary of Indian giant ArcelorMittal, operates the biggest steel producing plant in Central Asia. Slower demand for steel had forced the company to cut back investment and lay off workers in 2014. It had hoped that the reemergence of Iran into the international economy would boost sales.

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

Kazakh city administration rolls parking meters

JUNE 21 2016 (The Conway Bulletin) – The Almaty city administration is rolling out parking meters across the city, the first in Kazakhstan. Almaty SpetsTekhParking, the company that will manage the service, said that the fee will beof100tenge/hour ($0.30). Almaty citizens reacted in online forums. Some highlighted a possible waste of public funds, but some hailed the measure as a potential life-saver for the city, which suffers from a chronic pollution problem.

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

Kazakh president shuffles key government roles

ALMATY, JUNE 21 2016 (The Conway Bulletin) — Kazakh President Nursultan Nazarbayev reshuffled several government positions, naming a new mayor for Astana and a new chief of the presidential administration, perhaps giving an indication of how he sees his succession playing out.

Former Astana mayor Adilbek Dzhaksybekov was named chief of the presidential administration, taking the place of Nurlan Nigmatullin, who was quickly made Speaker of parliament.

Mr Nazarbayev thanked and lauded both for their services.

“Mr Nigmatullin worked with me for many years with skill and professionalism, proving himself during hard times,” Mr Nazarbayev said. “Mr Dzhaksybekov has previously worked in this position, for which we need a person with experience and equilibrium.”

The head of the presidential administration is one of the most powerful positions in the Kazakh political system, marking a major promotion for the 61-year-old Mr Dzhaksybekov.

For Mr Nigmatullin, known as the “Grey Cardinal” for his deal making abilities and loyalty to Mr Nazarbayev, the position of Speaker of parliament is an important one. According to the Kazakh constitution, if Mr Nazarbayev resigns or dies in office, he will take over as president.

Importantly, too, Asset Issekeshev, former minister of innovation and development was named mayor of Astana, replacing Mr Dzhaksybekov.

Mr Issekeshev, 44, is seen as a rising star. As mayor of Astana, he will be the face of the capital city, when it hosts the EXPO next year.

Mr Nazarbayev is 75-year-old but has yet to lay out a coherent succession plan. He has ruled over Kazakhstan since independence from the Soviet Union in 1991.

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

Kazakh MPs approve moratorium on land code changes

ALMATY, JUNE 23 2016 (The Conway Bulletin) — In a surprise move, Kazakhstan’s parliament voted to approve a moratorium laid down by President Nursultan Nazarbayev earlier this year on reforms to the country’s land code.

Although the vote doesn’t change the process, it does confirm that Mr Nazarbayev and the Kazakh elite have delayed controversial changes to the land code until at least January.

The changes to the land code, that would have made it easier for foreigners to own and rent land, triggered a wave of protests across the country in April and May. These were the largest popular protests against Mr Nazarbayev since he took office in 1991, forcing him to announce the moratorium.

He also heaped blame on government officials for the mishandling of the land code reform that had been designed to attract much-needed foreign investment.

Like the rest of the region, Kazakhstan has been dealing with a sharp economic downturn that has hit its finances. It is heavily reliant on sales of oil and gas for its income, both of which has plummeted in value since mid-2014.

There were some suspicions that the land reform proposal were being used by opponents of Mr Nazarbayev to whip up a popular revolt against him.

The authorities accused the boss of a brewery in Shymkent for attempting a coup.

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

EU bans Kazakh and Kyrgyz airlines

JUNE 17 2016 (The Conway Bulletin) – The European Union published an updated list of banned airline companies, which included 19 Kazakh and 13 Kyrgyz companies. Airline safety is still below international safety standards in Central Asia and the South Caucasus, according to most aviation agencies. Air Astana, part-owned by British BAE Systems, is the only airline allowed to fly to the EU.

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

Business comment: BREXIT, Oil & Crisis

JUNE 24 2016 (The Conway Bulletin) – As the results of the referendum on Britain’s EU membership came in early on Friday, the decision to leave the EU has shaken the global market.

The Leave vote has hit the London stock market, where most of the companies focusing on Central Asia and the South Caucasus are listed. Economists now expect more volatility in the short term for the London Stock Exchange.

The so-called Brexit also negatively affected oil prices, sending both Brent and WTI down by 6% in just a few hours. Analysts have said that the period of uncertainty regarding oil prices will now last longer.

Currency markets were also hit, as the British pound lost value against the US dollar, effectively strengthening the greenback.

This had an immediate domino effect on currencies across Central Asia and the South Caucasus, where local currencies weakened against the US dollar.

The increasing uncertainty and volatility is now poised to harm, at least in the short term, local markets in the region, prompting elites in from Tbilisi to Astana to brace for more tough times. It will also hit global markets in general, forcing investors to flee to safety and this means missing out Central Asia and the South Caucasus.

Now both the Fed in the US and the Bank of England will have to revise their economic policies and this is likely to insulate further their economies and pull investment back from Emerging Markets.

In these uncertain times, countries in Central Asia and the South Caucasus cannot but hope that Western investors will go against the tide and continue investing in the region.

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

Mine brawl leaves injured people in Kazakhstan

JUNE 17 2016 (The Conway Bulletin) – A brawl between private security guards and miners in Bestobe, a village 200km north-east of Astana, left as many as 16 people injured, highlighting a worsening labour dispute at the mine. Private security guards working for Kazakhaltyn, owned by Netherlands-based Institute Project, forcefully broke up a short-lived demonstration. Many of the miners said the incident echoed Zhanaozen, scene of violent clashes between police and oil workers that left at least 17 dead in 2011.

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

Kazakh government fines Kazzinc

JUNE 20 2016 (The Conway Bulletin) – The Kazakh government slapped a 4.1b tenge ($12m) environmental fine on Kazzinc, a zinc producer, for damages caused by a leak of contaminated water into a river outside of Ridder, a town in eastern Kazakhstan.The leak was contained on May 25, three days after the spill. The prosecutor also opened a criminal case against the company for polluting water basins.

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

Kazakh champion weightlifter banned from Rio Games after failing drugs test

ALMATY, JUNE 21 2016 (The Conway Bulletin) — Ilya Ilin, a sporting hero in Kazakhstan after winning a weightlifting gold medal at the London Olympics in 2012, has been banned from the Olympics in Rio later this year after more evidence emerged that he had taked performance enhancing drugs.

The new evidence apparently showed that he took the drugs for the Beijing Olympics in 2008. This comes on top of other evidence that showed he took drugs at the London Olympics in 2012.

Three other Kazakh weightlifters — Svetlana Podobedova, Maia Maneza, Zulfiya Chinshanlo — have also been found guilty of doping at the London 2012 Olympics.

Kazakhstan won seven gold medals at the London Olympics, its best ever haul. Four of these medals were in weightlifting.

Mr Ilin has denied the drug-taking charges and instead said a change in how the samples are taken and tested was to blame for an incorrect positive test.

News of his suspension spread across Kazakhstan, shocking and angering people. Kazakh politicians lined up to give him their support.

“Whatever the decision taken on the athlete Ilya Ilin, he has earned our support as a leading sportsman and patriot of Kazakhstan,” said Kassym Jomart-Tokayev, chairman of Kazakhstan’s Senate.

And it was a similar story from ordinary Kazakhs.

Aizhan, a resident of Almaty, said that he had uploaded Ilin’s picture on to his Facebook site as a show of support. He said: “Honestly, I am very upset with this scandal and even more with how it is covered by foreign media. I believe his words.”

Bolat Mukashev, who works in the public sector, said: “I am very upset and support Ilya. The whole country believed in him and now this. Of course there is no smoke without fire but nobody denies that this is a trap.”

For Kazakhstan, the seven gold medals won at the London Olympics were a huge boost to their national pride and self-image. It had been part of the government’s policy to promote Kazakhstan through sport. It recruited weightlifters from China and tennis players and athletes from Russia to boost its cause.

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

Editorial: Nazarbayev’s reshuffle

JUNE 24 2016 (The Conway Bulletin) – When Kazakh president Nursultan Nazarbayev reshuffles his top government officials, it’s time to start thinking about the politics of succession.

The latest reshuffle is an important one. Apart from the PM post, held by Karim Massimov, one of Mr Nazarbayev’s most trusted aides, the head of the presidential administration, the speaker of parliament and mayor of Astana are some of the most important and high-profile posts that he can hand out.

Mr Nazarbayev has promoted the slick, media-savvy Asset Issekeshev to be major of Astana, Adilbek Dzhaksybekov was shifted from that position to head of the presidential administration and Nurlan Nigmatullin, was moved to be speaker of parliament.

All are now guaranteed to play a role inMr Nazarbayev’s plans but perhaps the most eye-catching is the promotion ofMr Issekeshev. He will now be the face of EXPO-2017 in Astana, one ofMr Nazarbayev’s pet project. If that goes smoothly, there could be even more important roles forMr Issekeshev.

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