Tag Archives: Uzbekistan

Uzbek president nears death after stroke

AUG. 29 2016 (The Conway Bulletin) — Uzbek President Islam Karimov suffered a stroke on Saturday which left him with a brain haemorrhage, his daughter Lola Karimova-Tillyaeva said, setting up a succession battle over Central Asia’s most populous country.

Uzbekistan is, effectively, a lynchpin for stability in Central Asia. Its population of 31.5m is nearly as much as Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan combined, it borders every other country in the region and had been the Soviet Union’s Central Asian administrative and logistical centre.

Under Mr Karimov’s rule, Tashkent lost out to Almaty as the commercial centre of Central Asia for Western multi-nationals but it still holds great sway at a more local level.

Mr Karimov has never publicly named a successor. His eldest daughter Gulnara Karimova, who had looked destined to succeed him fell from grace in 2014 over bribery allegations, leaving Uzbekistan set for a potentially messy succession battle.

Ms Karimova-Tillyaeva said her 78-year-old father had been hospitalised on Saturday after the stroke.

“At the moment it is too early to make any predictions about his future status,” she wrote on Instagram.

Uzbekistan is famed for its central role along the Silk Road, the fabled trade route several centuries ago that connected Europe and China.

Recently, though, Uzbekistan has earned a reputation for repression and for having a closed economy. Western companies have complained of state interference; accusations of slave labour have undermined Uzbekistan’s important cotton sector.

But the US, Russia and China — the major influences on Central Asia — will be hoping for a peaceful handover of power. The radical IS group has been growing in influence and the worry is that it may try to take advantage of any power vacuum.

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(News report from Issue No. 293, published on Aug. 29 2016)

Russia’s MTS sells Uzbek business

AUG. 5 2016 (The Conway Bulletin) — Russian mobile phone operator MTS, which is listed on the New York stock exchange, said it had sold its business in Uzbekistan to the Uzbek government. The US authorities have been investigating alleged corruption at MTS’s Uzbek operations. MTS owned a 50% stake in UMS, the country’s third largest mobile operator. Various governments have launched a series of investigations into corruption by mobile operators in Uzbekistan.

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(News report from Issue No. 292, published on Aug. 12 2016)

Central Asian FMs meet in the US

AUG. 3 2016 (The Conway Bulletin) — Looking to boost the US’ regional profile, US Secretary of State John Kerry hosted a summit with all five foreign secretaries from Central Asia. Dubbed C5 +1, the meeting was a follow-up from its inaugural session in Samarkand last year. It’s important because the US has been accused of losing interest in the region since pulling its military out of Afghanistan in 2014.

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(News report from Issue No. 292, published on Aug. 12 2016)

Road sweepers protest in Uzbekistan

AUG. 10 2016 (The Conway Bulletin) — Up to 50 street cleaners, mainly women, in the Uzbek city of Samarkand, protested against the local government because of unpaid wages. The Uzbek- language version of the US-funded RFE/RL news website said more protests were appearing in Uzbekistan over unpaid salaries.

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(News report from Issue No. 292, published on Aug. 12 2016)

Uzbekistan extends Beeline licence

JULY 25 2016 (The Conway Bulletin) — The Uzbek government extended the telecoms licence for Beeline Uzbekistan until 2031. Beeline Uzbekistan said the extension of the licence was a key step for one of the company’s most important markets. Beeline Uzbekistan is a subsidiary of Amsterdam-based Russian telecoms company VimpelCom. In the past few months, VimpelCom has been fined millions of dollars for paying bribes to enter the Uzbek mobile market.

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(News report from Issue No. 291, published on Aug. 1 2016)

 

GM Uzbekistan appoints new head

JULY 25 2016 (The Conway Bulletin) — Car manufacturer GM Uzbekistan appointed Rustam Razhabov as the new CEO, after months of uncertainty over the top position at the Uzbek-US joint venture. The government-linked Novosti Uzbekistana confirmed the appointment. In June, unofficial reports had said that Mr Razhabov had been detained in May in relation to a criminal scheme that brought down his predecessor, Tokhirzhon Zhalilov. State-owned Uzavtoprom owns 75% of GM Uzbekistan, US-based GM owns the rest.

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(News report from Issue No. 291, published on Aug. 1 2016)

Cement plant expands in Uzbekistan

JULY 28 2016 (The Conway Bulletin) — Turkish company DAL Teknik Makina completed the expansion of one of the largest Uzbek cement complexes, the ministry of economy said in a statement. State- owned Almalyk Mining-Metallurgical Complex commissioned the expansion of the cement plant in the Jizzakh region near Samarkand, southern Uzbekistan, for $35.8m. The plant should now increase production of cement to 650,000 tonnes in 2016 and to around 1m tonnes thereafter. Last year, China’s Shanfang Cement pledged a $130m investment to build a new cement plant in Uzbekistan.

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(News report from Issue No. 291, published on Aug. 1 2016)

Uzbek authorities fire prosecutor

JULY 27 2016 (The Conway Bulletin) — One Uzbek prosecutor was fired and the head of a local police station in Tashkent is also being questioned in an investigation over an alleged fraudulent pyramid scheme master- minded by businessman Akhmad Tursunbayev. Mr Tursunbayev was arrested in mid-June for having stolen money from people with the promise of a 100% return, Eurasianet reported. The investigators now claim that public officials may have been involved.

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(News report from Issue No. 291, published on Aug. 1 2016)

China to build piplene between Tajikistan, Turkmenistan and Uzbekistan

JULY 23 2016 (The Conway Bulletin) — China will go ahead with the construction of a fourth line of the Central Asia-China gas pipeline from Turkmenistan through Uzbekistan, Tajikistan and Kyrgyzstan, officials said. Luo Wei Dong, a deputy at China’s ministry of commerce told the Kremlin- funded Sputnik news agency that the pipeline will be built in the near future and will increase the overall capacity by 54% to 85b cubic metres/year.

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(News report from Issue No. 291, published on Aug. 1 2016)

Amsterdam court orders seizure of assets linked to Uzbek President’s daughter

JULY 20 2016 (The Conway Bulletin) — A court in Amsterdam ordered the seizure of €123m ($135m) of assets linked to Gulnara Karimova, the eldest daughter of Uzbek president Islam Karimov, as part of an ongoing global investigation into bribes paid by major telecoms firms looking to enter the Uzbek market.

Gibraltar-registered Takilant, the company linked to Ms Karimova that took bribes to award telecoms licences in Uzbekistan, had its assets frozen in Sweden in 2012/13 in a related court case but this is the first time a Western court has directly confiscated them.

The Dutch ruling targeted cash that Amsterdam-based Russian telecoms operator VimpelCom and Sweden’s Telia Company paid Takilant between 2004 and 2013.

In its decision, the court said that Takilant demonstrated “a way of doing business that is socially extremely destabilising.”

The latest ruling aggravates a corruption scandal that has sunk Uzbekistan’s already weak reputation as a place for Western businesses to operate.

It also deals another blow to Ms Karimova’s profile in Uzbekistan, where the self-styled fashion designer and diplomat was once touted as a potential president. She has been under house arrest in Tashkent for two years and her associates are in prison for various financial crimes.

With the confiscation of Takilant’s assets, the courts start to close in on reclaiming some of the millions of dollars paid to Ms Karimova. Previously, courts had only managed to fine European telecoms companies for their illegal practices.

In February, a US court ruled that VimpelCom, listed on the New York Stock Exchange, was guilty of bribing Takilant and fined it $795m. Another US prosecutor is currently trying to freeze $550m of Takilant’s assets.

Sweden’s Telia has also said at it has put aside millions of dollars to pay fines linked to bribery charges.

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(News report from Issue No. 290, published on July 22 2016)