Tag Archives: Kazakhstan

Two people dies of anthrax in Kazakhstan

JUNE 21 2016 (The Conway Bulletin) – Two people died in Karaganda, central Kazakhstan, after an out- break of anthrax poisoning. Local hospitals reported as many as 73 people were being monitored for exposure. Two days after the out- break, Kazakh PM Karim Massimov said the situation is under control. Medical research says Kazakhstan has some of the highest reported human anthrax incidence and mortality rates in the world.

ENDS

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

Kazakhstan’s Kazmunaigas wants to gain more control of KMG EP

ALMATY, JUNE 17 2016 (The Conway Bulletin) — Kazmunaigas, Kazakhstan’s state-owned energy company, said it wants to change the shareholder’s agreement at its London-listed subsidiary KMG EP, a move that independent directors said would weaken the company.

Kazmunaigas, which owns 57.9% of KMG EP, released a note that called for an extraordinary general meeting in August, that would change the terms in the so-called relationship agreement, a document that was prepared in 2006, when KMG EP listed its global depository receipts in London.

Analysts have said that Kazmunaigas, which has been hit by low oil prices, may be looking to gain more control of KMG EP, which has performed better than its state-owned parent. By securing more shares and improved terms, Kazmunaigas would also strengthen its position ahead of a prospective IPO in the next few years.

But independent directors at KMG EP immediately lined up to voice their concerns about Kazmunaigas’ plans. They also said that they would resign if they were passed.

“[We] strongly recommend that all Independent Shareholders vote against the Resolutions proposed by NC KMG,” three of the four independent directors on the board of KMG EP said in a joint statement.

The directors also said the new document will “significantly weaken” independent voices in the company’s decision-making processes and the Kazmunaigas offer of $7.88/GDR to minority shareholders “significantly undervalues” KMG EP.

Kazmunaigas said a new deal would improve efficiencies at KMG EP.

And the row looks to be getting more bitter. Kazmunaigas chairman Sauat Mynbayev also said the KMG EP share price could fall by one-third to around $5/GDR if investors didn’t go along with the plan.

“I don’t think the stock price will jump, in fact, if the shareholders decide to go against our plan, it could fall to, say $5/share,” he said.

In effect, the government sent a strong signal to shareholders that it wants to increase control over KMG EP.

If shareholders choose to go against the plan, a bitter battle for control looms.

ENDS

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

Stock market: KMG EP

JUNE 23 2016 (The Conway Bulletin) – The price of KMG EP’s global depository receipts (GDRs) in London has not moved much in the past week, despite the dispute between its owner, Kazakhstan’s Kazmunaigas, and its independent directors.

KMG EP is the upstream branch of the Kazakh state-owned oil and gas company. It listed its GDRs in London after an IPO in 2006. The closing price on Thursday was $7.24/GDR, which follows a trend that since mid- May has pushed KMG EP’s GDRs above the $7 benchmark.

Despite low oil prices and decreasing export volumes, KMG EP has managed to perform well in the first quarter of the year, due to the sharp depreciation of the tenge against the US dollar. A weaker tenge helped KMG EP offset domestic costs and increase the value of its exports, denominated in US dollars, despite the plunge in global prices.

ENDS

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

Kazakhstan’s oil output falls

JUNE 13 2016 (The Conway Bulletin) – Kazakhstan’s oil output fell by 7% to 1.5m barrels/day in April compared to the same period in 2015, the Organisation of Petroleum Exporting Countries (OPEC) said in a monthly report. Kazakhstan’s Statistics Committee said total oil production shrank by 2.8% in Jan.-May 2016, to 27.7m tonnes, compared to the same period in 2015.

ENDS

(News report from Issue No. 285, published on June 17 2016)

McDonald’s finally opens in Kazakh city

ALMATY, JUNE 10 2016 (The Conway Bulletin) — To much excitement, and a little controversy, McDonald’s opened its first restaurant in Almaty, Kazakhstan’s biggest city.

This is the second McDonald’s in Kazakhstan after a restaurant it opened in Astana in March.

At the opening on the site of an old cinema which heritage activists had campaigned to try and protect, Kairat Boranbayev, owner of the McDonald’s franchise in Kazakhstan and Belarus, said that the company aimed to build a total of 15 stores in Almaty and 10 in Astana.

The long-awaited opening of the McDonald’s restaurants has been one of the few positives for President Nursultan Nazarbayev this year, marked by a sharp drop in Kazakhstan’s economic outlook because of a recession in Russia and a fall in oil prices. Ordinary Kazakhs have seen inflation rise, jobs disappear and tenge savings wiped out.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Polymetal gets loan for its Kazakh project

JUNE 15 2016 (The Conway Bulletin) – Russian miner Polymetal said it reached an agreement with Sberbank for a $350m loan to finance the start-up of its Kyzyl project in north-eastern Kazakhstan. In 2015, it bought the Kyzyl project for $620m from Sumeru, a private group owned by Timur Kulibayev, son-in-law of Kazakh President Nursultan Nazarbayev.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Violence towards Kazakh TV star sparks debate on violence against women

ALMATY, JUNE 10 2016 (The Conway Bulletin) — Bayan Yessentayeva, a high profile TV celebrity and a role- model for thousands of Kazakh women, was beaten unconscious by her husband during a row at a petrol station, sparking a rare public debate about domestic violence in Kazakhstan.

Eyewitnesses said that Bakhytbek Yessentayev was drunk when he stabbed, punched and kicked Ms Yessentayeva, 42. Mr Yessentayev has a reputation for violence. Earlier this year, a video was posted on Youtube which allegedly showed him punch- ing staff at a casino after he lost thousands of dollars in one evening.

A spokesman for the Talgar hospital near Almaty said that Ms Yessentayeva was unconscious but in a stable condition.

“She’s a very strong woman to be able to survive, especially with such injuries. She has a strong spirit,” said Erbol Sarsenbayev, deputy director of the hospital.

For Kazakhs the beating has generated a rare, and uncomfortable, debate about domestic abuse.

According to the United Nations, 500 women are killed each year by their husbands or boyfriends in Kazakhstan, one of the highest rates per capita in the world.

Campaigners have said that in Kazakhstan a mix of heavy drinking, a distrust of the authorities and Islamic practices which can subjugate women in the home combine to create conditions which heighten scenarios where domestic abuse can occur.

The beating of Ms Yessentayeva, though, triggered a rare protest against domestic violence with women posting photos of their faces on Twitter with painted-on bruises.

Zulfiya Baisakova, chairperson of the activist group Union of Crisis Centers in Kazakhstan, said they receive between 15,000 to 20,000 reports of domestic violence each year.

“Official statistics show that everything is improving but unofficially statistics show an increase in the number of incidences,” she said.

And women in Kazakhstan are frustrated by the lack of attention that domestic abuse receives.

Diana Burkit, a student from south Kazakhstan, told the Conway Bulletin that although she was not a victim of abuse her relatives had been.

“I resent that only after Yessentayeva was abused has anybody paid attention to this. How about what goes on in Shymkent?” she said.

She described domestic violence in southern Kazakhstan as rampant.

ENDS

(News report from Issue No. 285, published on June 17 2016)

WB approves Kazakhstan road loan

JUNE 10 2016 (The Conway Bulletin) – The World Bank approved a $978m loan to finance the construction of a road link across Kazakhstan, which will complete the transit corridor between Astana and the west of the country. The project will cost a total of $1b and will be partly funded by the government. The World Bank is also funding part of the Kazakh section of the Western Europe – Western China highway.

ENDS

(News report from Issue No. 285, published on June 17 2016)

EEU plans single electricity market, say energy ministers after meeting in Tajikistan

JUNE 14 2016 (The Conway Bulletin) – The Eurasian Economic Union, a trade bloc led by Russia but also involving Belarus, Kazakhstan, Kyrgyzstan and Armenia plans to set up a unified electricity market by 2019, EEU members’ energy ministers said after a meeting in Dushanbe. Tajikistan aspires to be part of the EEU, which critics have said is a Kremlin project to extend its control.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Kazakh oil revenues fall

JUNE 15 2016 (The Conway Bulletin) – Kazakh officials said production of oil and gas makes up around 17% of the country’s GDP, a proportion eight percentage points lower than in 2015. The fall in oil prices has impacted both feasibility and profitability at Kazakhstan’s oil and gas fields. This is an important measure of the impact of the drop in oil price on Kazakhstan’s economy.

ENDS

(News report from Issue No. 285, published on June 17 2016)