Tag Archives: Kyrgyzstan

Uzbekistan and Kyrgyzstan mend relations

BISHKEK, OCT. 1 2016 (The Conway Bulletin) — Uzbekistan and Kyrgyzstan reopened previously closed border crossings and pledged to improve relations after a friendly meeting in the Uzbek city of Andijan in the Ferghana Valley.

The sudden improvement in Uzbekistan-Kyrgyzstan relations comes just a month after the death of Islam Karimov, Uzbek president since independence from the Soviet Union in 1991. He was regarded as a belligerent leader who preferred to keep relations with his neighbours cool.

By contrast acting President and PM Shavkat Mirziyoyev has appeared eager to improve Uzbekistan’s relations and one of his first acts, at least according to many analysts, was to mend relations with Kyrgyzstan.

This year, both countries have strengthened their forces in a stand- off that has threatened to escalate into conflict. In August, Uzbekistan suspended rail links with Kyrgyzstan.

Relations between Kyrgyzstan and Uzbekistan have been tense for years due to border disputes, rows over gas

prices and interethnic violence in Kyrgyzstan after a revolution in 2010. The Uzbek-Kyrgyz meeting on Oct. 1 culminated in a photo-op at the Uzbek-Kyrgyz border where Uzbek deputy PM, Adkham Ikramov, and his Kyrgyz counterpart, Mukhammetkalyi Abulgaziyev, exchanged kind words.

“Today, we understand just how much Kyrgyzstan and Uzbekistan need such meetings,” Mr Ikramov said.

The unprompted thawing of relations caught many by surprise.

Ruziali, an Uzbek student living in Bishkek, said that economic gains were behind the move.

“If acting President Shavkat Mirziyoyev wins the election, relations with Russia could improve and it is quite possible that we will enter the Eurasian Economic Union, of which Kyrgyzstan is already a member,” he said.

Uzbekistan holds a presidential election in December which is expected to confirm Mr Mirziyoyev as president.

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

Stock market: Centerra Gold, Thompson Creek

OCT. 7 2016 (The Conway Bulletin) – Centerra Gold’s stock price has been on a rollercoaster this summer, closely following the ups and downs of the price of gold.

This week, both fell. Centerra contracted by 9% to 6.49 Canadian dollars and gold registered an unusual 5% fall to $1,254.38/troy ounce on Thursday. After a tense spring, when the Kyrgyz government and Centerra were at loggerheads over permits and court cases, calm now appears to reign. Importantly, though, this year Centerra has actively tried to diversify its portfolio away from Kyrgyzstan, investing in Turkey and in the US.

As part of the financing for the acquisition of Colorado-based Thompson Creek, Centerra issued new shares which analysts said will dilute the share that Kyrgyzaltyn, the government-owned gold miner, owns in Centerra from 32% to approximately 28.8%.

The deal, inked in July, put relations between the company and the government under strain once again.

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

Pakistan anticipates power supply from Kyrgyzstan

OCT. 6 2016 (The Conway Bulletin) – Pakistani media hinted that it was anticipating potential supply-side problems with CASA-1000 electricity project by saying that it had invited Russia to make up any short- fall over winter when Kyrgyzstan and Tajikistan’s hydropower stations are less productive. The World Bank-backed $1.2b project aims to send electricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan by 2019. This year, shortages in Kyrgyzstan have cast doubts over the country’s export capacity and Pakistan has explored other suppliers, including Turkmenistan.

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

Kyrgyz Parliament bans underage marriage

OCT. 5 2016 (The Conway Bulletin) – Parliament approved a ban on underage marriage, five months after MPs had controversially voted against it. Kyrgyz law only allows people over 18 to marry, but under special religious conditions, minors could get married. The bill, which passed by a narrow margin, now needs President Almazbek Atambayev’s signature to enter into force. Around 15% of women marry before turning 18 in Kyrgyzstan, the Kyrgyz statistics committee said.

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

Kyrgyz police releases wife of Tajik opposition figure

OCT. 3 2016 (The Conway Bulletin) – Kyrgyz police released the wife of Sobir Valiev, a Tajik opposition figure, 22 hours after her arrest. Kyrgyzstan’s Security Service said the woman, Zhannat Khamzayeva, was questioned regarding the alleged illegal activities of her husband. Mr Valiyev, a member of the opposition movement Group-24 who currently lives in Poland, is accused of illegal border crossing and forging documents. The Security Service ordered Ms Khamzayeva to remain in the country.

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

Korea to invest in food programme of Kyrgyzstan

OCT. 4 2016 (The Conway Bulletin) – Korea International Cooperation Agency will send $4m to the United Nations World Food Programme to implement a three-year programme aimed at improving food security in four regions of Kyrgyzstan. The project will target the poorest areas of the Batken, Jalal-Abad, Osh and Naryn provinces in central and south Kyrgyzstan.

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

Comment: Regional economies begin to steady, writes Sorbello

OCT. 7 2016 (The Conway Bulletin) — Central Banks across Central Asia and the South Caucasus seem to have switched off their crisis mode, as inflation slows, oil prices pick up and remittances begin to regenerate.

Excited about the imminent re-start of the Kashagan offshore oil project, Kazakhstan is looking stronger, after months of uncertainty regarding its currency and its budget stability.

An important sign of the country’s recovering health was the rate cut by Kazakhstan’s Central Bank this week, which said that with inflation back into the 6 – 8% band that it was targeting and that monetary policy could be eased.

This decision has been in the Central Banker’s thinking over the past few weeks. That much is clear. Daniyar Akishev has been showing, for the first time, a more confident and determined tone.

And countries less impacted by oil prices, from Armenia to Kyrgyzstan, have also tried to boost their rather slow economic activity by lowering or keeping low interest rates in the past weeks.

All currencies from the region have been hit by a stronger US dollar over the past two years, and their depreciation led inevitably to a sharp increase in consumer prices.

Some — such as Azerbaijan, Kazakhstan, Kyrgyzstan and Georgia — needed strong monetary interventions. Others, such as Tajikistan, Armenia and Uzbekistan stabilised at a comparatively faster pace.

Last month, Russia’s Central Bank said migrant worker remittances to Kyrgyzstan had increased by 21%, reflecting a higher migration rate. On the other hand remittances to Tajikistan and Uzbekistan fell because of a drop in the number of migrants. Perhaps this is the Eurasian Economic Union effect?

Kyrgyzstan and Tajikistan are among the top remittance-dependent countries in the world.

As the ship seems steadier, however, countries across the region will have to cope with more domestic problems, chiefly in the banking sector and other private sectors hit hard by the economic downturn.

As shown this week with the bankruptcy of Bank Standard, Azerbaijan’s financial sector doesn’t seem to have fully recovered from the crisis. And in western Kazakhstan, where oil is the job creator, a month-long strike just ended with the workers obtaining higher salaries and the company winning state tenders. There is still work to do.

By Paolo Sorbello, Deputy editor, The Conway Bulletin

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

Gazprom to apply discount to Kyrgyzstan

OCT. 1 2016 (The Conway Bulletin) – Gazprom Kyrgyzstan representatives said they would apply a 1% discount on gas supplies to households and industries to reflect the strengthening of the som currency. Gazprom Kyrgyzstan, a subsidiary of Russia’s gas giant Gazprom which owns Kyrgyzstan’s gas distribution network, can revise gas tariffs on a monthly basis. Gas prices have become a political issue in the region, often sparking protests against proposed price rises.

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

Kyrgyz President says he had heart attack

OCT. 3 2016 (The Conway Bulletin) – Kyrgyz President Almazbek Atambayev said that he had had a heart attack while en route to New York for a UN meeting and that he was back at work after undergoing medical care. On Sept. 19, Mr Atambayev cancelled the trip to the UN Annual Assembly after suffering chest pains during a layover in Turkey. He later flew to Russia for medical care before returning to Bishkek at the weekend.

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

Kyrgyz court starts re-trial for Askarov

OCT. 4 2016 (The Conway Bulletin) – A Kyrgyz court started a re-trial of Azimzhan Askarov, a human rights activist jailed for life after being accused of stirring ethnic hatred during the 2010 revolution that toppled former President Kurmanbek Bakiyev. Under pressure from international human rights lobby groups, Kyrgyzstan’s Supreme Court ordered a re-trial in July. At the first hearing, Askarov pleaded not guilty.

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