Tag Archives: Tajikistan

Currencies: Tajik somoni

APRIL 6 2017 (The Conway Bulletin) — Tajikistan’s somoni currency keeps on hitting all-time lows. The Central Bank has managed a fall in its value since 2014 that has seen its worth half to 8.23/$1. At the start of 2014, the somoni was valued at 4.77/$1.

But, the rate of the fall may actually be good news. In July last year the Central Bank published a gloomy assessment of the somoni’s outlook. It said that the somoni would fall by 21% in 2017 and by another 8% in 2018. Of course there is some way to go, but in the first three months of the year the Tajik somoni has fallen just over 4%. This means that if the current fate of depreciation is maintain, the somoni will come in slightly better than expected.

Like the rest of the region, Tajikistan’s economy has been hit hard by the recession in Russia, it is officially the most remittance- dependent country in the world and most of this comes from Russia. The EBRD and the ADB have offered to help Tajikistan but require reforms.

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(News report from Issue No. 323, published on April 6 2017)

Sweden’s Telia scraps deal to sell Tajik mobile network

DUSHANBE, MARCH 31 2017 (The Conway Bulletin) — Telia, the Swedish telecoms company, accused Tajikistan’s government of effectively blocking the $39m sale of mobile unit Tcell to the Aga Khan, an accusation that will undermine Western business confidence in the country.

The Tajik government’s anti- monopoly agency failed to respond to a request to approve the Tcell deal before a deadline set by Telia, forcing it to void the sale of its 60% stake in the company to the Aga Khan Fund for Economic Development (AKFED).

In a statement, Emil Nilsson, head of the Eurasia region for Telia, said that the company had now written off the value of Tcell’s assets, which it put at $13m, although it was still looking for an alternative buyer.

“We have taken all relevant actions in trying to close the deal. The proposed buyer of our interest in Tcell, AKFED, is an established investor in the region with multiple companies in its current portfolio and a long history in Tcell,” he said. “We are now assessing alternative ownership solutions for Tcell.”

Neither the Tajik government nor the Aga Khan have commented.

Telia has been looking to sell its units in Central Asia and the South Caucasus after a corruption probe in 2012/3 discovered it had paid a bribe of several hundred million dollars five years earlier to Gulnara Karimova, daughter of Uzbekistan’s then president Islam Karimov, in exchange for market access. Karimov died last year and Ms Karimova has been under house arrest in Tashkent since 2014.

The corruption scandal tarnished Telia’s reputation in the region. Netherlands-based MTS and Norway’s Telenor were also mired in the bribe-paying controversy.

Afterwards, in a damming indictment for companies operating in the region, Telia said the business environment in Central Asia was too riddled through with corruption that reputational damage was inevitable. It was better, the company had concluded, to sell its stakes in Tcell, Kcell (Kazakhstan), Ucell (Uzbekistan), Azercell (Azerbaijan) and Geocell (Georgia) than to risk more reputational damage.

The Aga Khan already owned a 40% stake in Tcell and had agreed to buy Telia’s stake in September last year.

In January, though, Telia accused the Tajik government of trying to pressure it into paying an unmerited tax bill and in February it said it had asked the anti-monopoly unit for a meeting to discuss why it hadn’t yet approved the deal with the Aga Khan.

A Conway Bulletin correspondent in Dushanbe confirmed that the Tcell network was operating as normal.

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(News report from Issue No. 323, published on April 6 2017)

Tajik government promotes traditional dresses

APRIL 4 2017 (The Conway Bulletin) — The Tajik government has been campaigning for women in Tajikistan to wear traditional brightly-coloured flowing dresses in an effort to dampen the rise in popularity of Islamic headscarves and hijabs, the AFP news agency reported. Tajikistan’s government is increasingly worried about the popularity of extremist Islamic ideology and the drift of many young men towards joining the radical IS group in Syria and Iraq.

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(News report from Issue No. 323, published on April 6 2017)

Russia slaps ban on Tajik flights

APRIL 2 2017 (The Conway Bulletin) — The Russian air authorities have once again banned Tajikistan’s privately-owned Somon Air from flying to Russia, an apparent resumption of the row between the two countries earlier this year which cut the number of air-links. Air-links between Russia and Tajikistan are especially important for Tajikistan’s migrant work force which relies on jobs in Russia.

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(News report from Issue No. 323, published on April 6 2017)

Remittances in Kyrgyzstan and Tajikistan fall, in general

MARCH 22 2017 (The Conway Bulletin) — Remittances to Central Asia from Russia, a vital engine for economies in the region, fell in 2016 compared to 2015, data from the Russian Central Bank showed. Uzbeks working in Russia sent back $2.74b in 2016, down from $3b in 2015 and Tajiks sent back $1.9b compared to $2.2b the year before. Kyrgyzstan actually increased its remittances from Russia to $1.7b in 2016 from $1.5b.

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(News report from Issue No. 322, published on March 27 2017)

Tajikistan holds war games with Russia

MARCH 27 2017 (The Conway Bulletin) — Tajikistan and Russia started a four day military exercise near the border with Afghanistan in a show of force designed to demonstrate the resolve of the two countries and the strength of their alliance. Media reports said that the military exercise involved 40,000 Tajik soldiers, 2,000 Russian soldiers and several hundred tanks and artillery pieces. Russia has said it is worried about the potential of Taliban encroachment into Tajikistan from Afghanistan.

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(News report from Issue No. 322, published on March 27 2017)

 

Small fire damages Tajik parliament

MARCH 18 2017 (The Conway Bulletin) — A small fire damaged the Tajik parliament building, media reported quoting interior ministry officials. They said that a computer overheating was to blame for the fire a parliamentary reception area. Photos from parliament showed two windows with black scorch marks. Nobody was injured in the fire.

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(News report from Issue No. 322, published on March 27 2017)

ABD demands reforms from Tajikistan

MARCH 20 2017 (The Conway Bulletin) — The Asian Development Bank (ADB) has linked another $50m loan to Tajikistan to reforms that it said the government needs to make to 14 areas to improve economic conditions, mainly focused on protecting businesses from tax inspections and official pressure, media reported. Tajikistan’s economy is under pressure from a recession in Russia and it has been looking for handouts from international lenders.

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(News report from Issue No. 322, published on March 27 2017)

Tajik court increases lawyers sentence

MARCH 26 2017 (The Conway Bulletin) — A court in Tajikistan extended by two years a jail sentence imposed on human rights lawyer Buzurgmehr Yorov who was imprisoned in October 2016 for 23 years for allegedly calling for a coup. At his trial, Yorov called the allegations against him politically motivated. He then read out a verse from a poem likening officials to fools, leading to a charge of contempt of court and the additional two year prison sentence which have now been passed down.

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(News report from Issue No. 321, published on March 20 2017)

Comment: SCO expansion should not threaten the West, says Pantucci

MARCH 20 2017 (The Conway Bulletin) — The Shanghai Cooperation Organization (SCO) has achieved remarkably little in its decade plus life.

Established formally in 2001, it grew out of a regional grouping aimed at seeking to define China’s borders with the former Soviet Union. Over time, it has expanded beyond its immediate neighbourhood to include countries as distant at Belarus and Sri Lanka as ‘dialogue partners’.

The current push to welcome both India and Pakistan is likely to further test the organisation’s already limited capability. The practical implications for Central Asia are unlikely to be dramatic, though in the longer term it may help bind Central and South Asia closer together and foster a greater sense of community across the Eurasian heartland.

In practical terms, the SCO has always been a fairly limited organisation. Seen initially by Russia as a way of controlling Chinese activity in Central Asia, for Beijing it has provided a useful umbrella under which to pursue their stealthy expansion in the region. For Central Asian powers, it provided another format in which to engage their larger neighbours. While the primary thrust of its activity has been in the security space, China has regularly sought to push it in an economic direction.

Yet, at the same time, all of the countries involved have largely pursued their own national interests through other pathways. The most recent demonstration was the establishment by Beijing of the Quadrilateral Cooperation and Coordination Mechanism (QCCM). Focused on managing the security threats from Afghanistan, the QCCM in many ways replicates a function which one would have expected the SCO to deliver.

The addition of Pakistan and India to the grouping is unlikely to change this dynamic.

All of the nations involved in the SCO will continue to function through their own bilateral and other multilateral engagements. But it will offer another forum in which India and Pakistan are obliged to interact and will also help further tie Central and South Asia together. These ties have been growing for some time. Kazakhstan has expressed an interest in participating in the China- Pakistan Economic Corridor (CPEC) and Indian President Narendra Modi visited Central Asia last year.

If India and Pakistan join the SCO, it will further help tie them together.

By Raffaello Pantucci, director of International Security Studies at the London-based Royal United Service Institute (RUSI).

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(News report from Issue No. 321, published on March 20 2017)