Tag Archives: Kyrgyzstan

Government sells Air Kyrgyzstan

FEB. 24 2016 (The Conway Bulletin) — The Kyrgyz government said it is ready to sell off a 49% stake in Air Kyrgyzstan, the national carrier, as part of the state privatisation programme. The government owns Air Kyrgyzstan through the state-owned Fund of State Property Management.

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(News report from Issue No. 269, published on  Feb. 26 2016)

 

Locals in Kyrgyzstan’s region complain on Jerooy

FEB. 22 2016 (The Conway Bulletin) — Local residents of the Talas region in Kyrgyzstan asked the government to halt the development of the Jerooy gold mine because of concerns it was damaging the environment. Last May, Russian miner Vostok-geolodobycha bought the licence to exploit the mine for $100m. Russian businessman Musa Bazhaev owns Vostok-geolodobycha. Analysts have previously said that local grievances over the environment have been exploited to leverage payment from companies developing mines.

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(News report from Issue No. 269, published on  Feb. 26 2016)

Group attacks editor in Kyrgyzstan

FEB. 21 2016 (The Conway Bulletin) – A group of men armed with metal bars beat up the editor of the Money and Power weekly business newspaper, Turat Akimov, an attack that has worried other journalists and political analysts. Media observers have been warning for the past year that Kyrgyzstan’s media scene was getting more and more pressured.

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(News report from Issue No. 269, published on Feb. 26 2016)

 

Kyrgyz businesses say the odds are stacked against them in the EEU

BISHKEK, FEB. 25 2016 (The Conway Bulletin) — Kyrgyz farmers and exporters of agricultural products have said that the Eurasian Economic Union (EEU), a group centred around the Kremlin that was supposed to boost its members’ economies, has undermined their businesses by exposing them to unfair competition.

The insight collected by The Conway Bulletin’s correspondent in Bishkek, undermines claims by President Almazbek Atambayev that joining the EEU in August was a positive move for Kyrgyzstan.

Sergey Ponomarev, head of the business lobby group AMTSS and a former PM adviser, said that cheaper Belarusian goods had hit Kyrgyzstan’s key export market in neighbouring Kazakhstan.

“In Belarus, prices for animal feed are largely subsidised by the state, which makes their products cheaper on the Kazakh market,” he said. Mr Ponomarev said that the Belarus government subsidises its farmers’ animal feed, something the Kyrgyz government doesn’t do.

Data released by Kyrgyzstan’s state statistics committee last month showed that in 2015 exports of clothes fell by 50%, fruit and vegetables exports fell by a third and tobacco exports by 28%.

This has partly to do with the worsening economic conditions in the region but also because of the more competitive export markets created by the EEU.

Tilek Toktogaziyev, the owner of a greenhouse in Bishkek. which sells various fruit, vegetables and berries, said: “Local farmers cannot trade their vegetables, and some of them have stopped farming altogether.”

Previously, business owners have complained of extra red tape after joining the EEU but they hadn’t complained of excessive competition.

One business owner, though, was more positive. Dastan Omuraliev, the manager of Organic, a company producing fruit juices, said: “With entering the Eurasian Economic Union, it became easier to pass our goods through the Kazakh border.”

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(News report from Issue No. 269, published on Feb. 26 2016)

 

Stans Energy files lawsuit against Kyrgyzstan

FEB. 16 2016 (The Conway Bulletin) – Canadian miner Stans Energy had filed a $220m law suit at the International Court of Arbitration for what it said was the illegal confiscation of rights it held to mine the Kutessay-2 rare earth elements (REE) field and Kalesay beryllium field in Kyrgyzstan. The Kyrgyz authorities have previously said that it confiscated Stans Energy’s rights over the fields in 2011 because it had broken its contract to develop the sites.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Tajikistan and Kyrgyzstan dispute over border

FEB. 6 2016 (The Conway Bulletin) -The foreign ministries of Tajikistan and Kyrgyzstan traded angry notes after Kyrgyz soldiers appeared to raise their national flag over a disputed border area. International monitors have said that the two neighbours had been making decent progress towards thrashing out a solution to their long-running border row. The recent dispute, though, may have endangered this progress. Analysts have said that the Tajik-Kyrgyz border dispute has the potential to destabilise the region.

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(News report from Issue No. 267, published on Feb. 12 2016)

 

Kyrgyzstan bans dollar mortgage

FEB. 10 2016 (The Conway Bulletin) – Kyrgyzstan’s Central Bank said that it had banned commercial banks from handing out US dollar mortgages to customers. The ban is designed to stop the economy from accruing more bad debt. Like its neighbours the Kyrgyz som has been under increased pressure to devalue. Over the past couple of months, the Central Bank has intervened heavily in the currency markets to protect its value but analysts have said that this policy is unsustainable and a devaluation is inevitable.

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(News report from Issue No. 267, published on Feb. 12 2016)

 

Kyrgyzstan imposes fines for USD

FEB. 3 2016 (The Conway Bulletin) – Kyrgyzstan’s anti-monopoly said it would start to impose fines against shops, companies and people selling products in US dollars rather than the local som currency. The new rules appear designed to boost the use and the strength of the Kyrgyz som. The som has lost around a third of its value.

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(News report from Issue No. 266, published on Feb. 5 2016)

 

Kyrgyzstan looks to cash in on expropriation of MegaCom

BISHKEK, FEB. 2 2016 (The Conway Bulletin) — Kyrgyzstan’s government said that it wanted to sell Alfa Telecom, which owns the mobile brand MegaCom, for around 19b som ($253m), cashing on its most lucrative asset grab from a revolution in 2010.

The sale of Alfa Telecom will mark the end of a battle for control over one of Kyrgyzstan’s most valuable companies.

Alfa Telecom had been controlled, directly and indirectly, by the son of former Kyrgyz president Kurmanbek Bakiyev. He was forced to flee the country in 2010 and one of the first moves by the new government was to start nationalising Alfa Telecom by taking control of a 49% stake in the company. It completed this process in 2014 when a court in Bishkek handed it the final 51% stake in the company from Alexey Yeliseyev, regarded as a frontman for the Bakiyev family.

Presenting plans to sell off, Alfa Telecom, Kyrgyz PM Temir Sariyev said: “We are presenting the auction to the international market, where competition is very high. The company is appealing for foreign investors and it needs a technological upgrade.”

Local audit firm All Star and the Kazakh branch of Ernst & Young assessed the total price of Alfa Telecom shares at $306m.

But with markets, especially Emerging Markets, subdued it will be a tough time to sell a telecoms company.

Last December, the government said companies from Russia, China, Turkey and Azerbaijan have expressed interest in buying Alfa Telecom.

A successful sale would be a boon for the Kyrgyz government which is struggling to fight off the impact of a worsening economic downturn.

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(News report from Issue No. 266, published on Feb. 5 2016)

Stand Energy files claims against Kyrgyzstan

FEB. 2 2016 (The Conway Bulletin) — Canadian mining company Stans Energy said it filed a claim for damages in the UN arbitration court against the Kyrgyz government. The company says Kyrgyzstan wrongfully terminated its licences to operate the Kutessay II and Kalesay mines in 2012. Stans claims to have invested $128m in the gold mines and will also seek a $91m compensation for interests. The UN court will deliberate in mid-March.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)