Tag Archives: Uzbekistan

VimpelCom says that price inflation boosts profit in Uzbekistan

TASHKENT, NOV. 3 2016 (The Conway Bulletin) — Russian telecoms operator VimpelCom said revenues in Uzbekistan grew 5% in Q3 2016, compared to the same period in 2015 because of a new pricing mechanism and underlying inflation.

In Uzbekistan, VimpelCom started to link its mobile charges to the US dollar, after volatility in the Uzbek sum hit the company’s revenue stream. This pushed up mobile and data prices plans across the country. It said that average user revenue had risen by 14%.

Tougher competition, however, shrank the customer base of Vimpel- Com’s Beeline brand in the country.

“The Uzbek market continues to experience intense competition, however Beeline remains the leader.

The overall customer base decreased 6% to 9.6m, due to the launch of two new mobile operators in 2015,” the company said in a statement.

Subscribers numbers had fallen below 10m at end-2015, a 3-year low. Earlier this year, VimpelCom paid a fine of $795m after it admitted paying bribes in 2007/8 to access the Uzbek mobile market.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 303, published on Nov. 4 2016)

Uzbekistan Airways to start flights to London

NOV. 1 2016 (The Conway Bulletin) — State-owned Uzbekistan Airways said it will start a short term direct connection to London Heathrow in December. The twice weekly flights will run from Dec. 9 to Dec. 20. This seems to be an attempt to test the feasibility of a renewed and stable connection to Europe’s financial capital, after direct flights became inconstant over the past decade.

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(News report from Issue No. 303, published on Nov. 4 2016)

Improving Kyrgyz-Uzbek relations

OCT. 28 2016 (The Conway Bulletin) — >> I hear that the Uzbek government sent high-level delegation to neighbouring Kyrgyzstan. Why is this news? Surely this is standard practise?

>> It’s certainly not standard practice for Kyrgyzstan and Uzbekistan. Their bilateral relations have been worse than poor over the past few years. This has been most obvious along their shared borders where soldiers and villagers from each side have squared up. At times it has threatened to develop into conflict, a conflict that the rest of the region has always worried would drag in neighbours. Part of the problem was that Uzbekistan blamed Kyrgyzstan for building a network of hydro projects across its rivers, depriving it of the water that it needs to irrigate its important cotton fields. There are also a series of rows over sovereignty around parts of their shared border in and around the Ferghana Valley. Osh, for example, is in Kyrgyzstan but is home to thousands of Uzbeks.

>> That does sound serious. How was this conflict avoided?

>> Essentially it appears that the death in September of Uzbek president Islam Karimov has been the key to improving bilateral Kyrgyz-Uzbek relations. He had a reputation for being a cantankerous, intransigent man who preferred to keep relations with his neighbours cool. Karimov had been in power since the 1991 breakup of the Soviet Union and Uzbekistan’s interna- tional relations have been notably cool during this period. The new guy, Shavkat Mirziyoyev, appears to be taking a different tack. Since he was installed as acting president, relations with Kyrgyzstan have improved markedly.

>> So, what specifically has improved?

>> There have been platitudes and visits from either side, handshakes and warm words. This may not sound like a great deal but it is. Impression is every- thing in this instance. The image of Kyrgyz and Uzbek government officials shaking hands and standing together for photo-ops in the Ferghana valley is invaluable for maintaining the peace and reducing tension. The deals and finer details will come later. It’s also important that these get-togethers have been happening around Osh and other towns and cities in the Ferghana Valley. This is the most tense and most ethnically diverse part of Central Asia. Using the Ferghana Valley as the backdrop adds extra weight to these gestures of friendship.

>> Got it. So this is the beginning of something good. What happens next?

>> It’s likely that Mirziyoyev will be confirmed as Uzbekistan’s permanent president at an election in December. If he is committed to improving relations with Kyrgyzstan, this will be a good thing for stability. Central Asia needs Uzbekistan and Kyrgyzstan to be on good terms. We’re also due a meeting between Mirziy- oyev and Almazbek Atambayev, the Kyrgyz president. When this does happen, and it’ll probably be next year as both hold votes in December – Uzbekistan a presi- dential election and Kyrgyzstan a referendum on changing the constitution – we’ll get a better idea of just how far Kyrgyz-Uzbek relations have come.

>> And what is motivating this thaw in relations?

>> It’s not 100% clear. Mirziyoyev may have decided, along with the other Uzbek power brokers, that post- Karimov Uzbekistan needs to set out on a different foreign policy course and that making allies with neighbours and opening up to investors is the right tactics. Of course, the charm offensive may also just be a short-term gimmick ahead of the December election.

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(News report from Issue No. 302, published on Oct. 28 2016)

Uzbek mayor talks on anti-divorce measures

OCT. 22 2016 (The Conway Bulletin) — Rakhmonbek Usmanov, the mayor of Tashkent, has said that he will name and shame couples who are seeking a divorce, Voice of America reported on its website. Quoting local media, VOA said that Mr Usmanov had become so exasperated with the growing number of divorces in Tashkent that he has drawn up a plan to name divorcing couples on a popular radio station and also in a local evening newspaper.

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(News report from Issue No. 302, published on Oct. 28 2016)

 

Acting Uzbek President wants court strengthened

OCT. 23 2016 (The Conway Bulletin) — Continuing his apparent charm offensive ahead of a presidential election on Dec. 4, acting Uzbek president Shavkat Mirziyoyev signed a decree to improve and strengthen the country’s judicial system. Media reported that the decree should strengthen the rights of the defendants and the independence of the courts. Human rights groups have said that the Uzbek state uses the courts to impose its political will.

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(News report from Issue No. 302, published on Oct. 28 2016)

Petrol prices rise by 35% in Uzbekistan

OCT. 24 2016 (The Conway Bulletin) — Uzbekistan increased the price of petrol by nearly 35%, underscoring the inflationary pressure built into its economy. State energy company Uzbekneftegaz said it was rising the price of a litre of AI-80 petrol to 2,800 soum from 2,075 soum. Other grades of petrol were given a similar price rise. Uzbekistan has been steadily increasingly the price of key items such as gas, electricity and petrol as the value of its soum currency falls, angering and frustrating ordinary people.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 302, published on Oct. 28 2016)

Japan’s Mitsubishi to build new thermal power station in Uzbekistan

OCT. 24 2016 (The Conway Bulletin) — Japan’s Mitsubishi Corporation signed a contract with state-owned Uzbekenergo for the construction of a second co-generation station at the Navoi thermal power plant which will significantly increase the plant’s capacity.

Navoi, in central Uzbekistan, is one of the country’s main industrial hubs.

Mitsubishi had participated in the construction of a 478 megawatt co- generation station that the Uzbek government commissioned in 2009.

Electricity generation is a major issue in the region with governments scrambling to replace aging Soviet- era technology.

Mitsubishi will work together with Turkey’s Calik Enerji. The two companies said construction of the new, 450 megawatt station will be completed by 2019.

Mitsubishi and Uzbekenergo had agreed on the feasibility of the new station in 2014. Like several other major infrastructure projects, the expansion of Navoi had been questioned due to the regional economic slump.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 302, published on Oct. 28 2016)

Uzbek government sends delegation to Osh

BISHKEK, OCT. 26 2016 (The Conway Bulletin) — A high-ranking Uzbek government delegation visited Osh in Kyrgyzstan for a groundbreaking meeting which highlighted both improving relations between the two neighbours and the charm offensive that Uzbekistan’s president-in-waiting, Shavkat Mirziyoyev, has laid on since Islam Karimov died in September.

Uzbek delegations have also travelled to Tajikistan and China since Mr Mirziyoyev was appointed acting president. His press office has also said that he has spent time talking to Turkmen president Kurbangly Berdymukhamedov.

This friendly foreign policy approach is in marked contrast to the stance that Karimov took when he was president. He preferred to keep a distance from his neighbours, often souring relations.

The most remarkable change has been towards Kyrgyzstan where border rows had threatened to tip into war.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 302, published on Oct. 28 2016)

Uzbekistan to export cars to Tajikistan

OCT. 26 2016 (The Conway Bulletin) — Shokasym Shoislamov, the Uzbek ambassador to Tajikistan, said the countries are negotiating an agreement to open the Tajik market to Uzbek car exports. Uzbekistan’s largest carmaker, GM Uzbekistan, a JV between US-based GM and the Uzbek government, exports most of its cars to Russia.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 302, published on Oct. 28 2016)

Telia’s losses in Uzbekistan grow

OCT. 21 2016 (The Conway Bulletin) — Sweden’s Telia Company posted a net loss of $908m in Q3 2016 due to the settlement of court cases involving corrupt practices in Uzbekistan. Telia, which paid $1.4b to settle claims by US and Dutch courts in September, said that the court case is not yet closed, hinting of possible further claims. The company was accused of bribing Gulnara Karimova, daughter of late- Uzbek President Islam Karimov, to win telecoms licences.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 302, published on Oct. 28 2016)