The Canadian company operating Kyrgyzstan’s troubled Kumtor gold mine has announced that a shutdown will not happen. A last-minute agreement appears to end a period of brinksmanship between Kyrgyz officials and company representatives that could have pushed the country’s shaky economy over the edge.
Toronto-listed Centerra Gold threatened on June 2 to start implementing a shutdown plan at close of business on June 13, if it did not receive government approval for its annual work plan. Centerra executives said they had been seeking approval since late last year.
The company – Kyrgyzstan’s largest investor – said that “despite repeated submissions and discussions with senior officials,” the company remained in limbo, unable to receive the necessary permits to operate until Bishkek signed off on the work plan.
Environmental concerns were one reason for the hold-up: the State Agency for Environmental Protection had voiced misgivings that the company’s plans could damage the Davydov Glacier high up in the Tian Shan Mountains, where the mine is located.
Centerra Gold warned that “an extended shutdown […] would likely have a material adverse impact on the Kumtor mine and the Company’s operations, future cash flows, earnings, results of operations and financial condition.”
Astana is abolishing visa requirements for citizens of 10 countries with a strong track record of investing in Kazakhstan, President Nursultan Nazarbayev has announced.
The visa-free countries are France, Germany, Italy, Japan, Malaysia, the Netherlands, South Korea, the United Arab Emirates, the United Kingdom, and the United States, Nazarbayev told a June 12 gathering of the Foreign Investors Council at the lake resort of Burabay, to the north of Astana.
The visa-free system is expected to go into effect on July 15 and initially be in force for a pilot period of one year, Rapil Zhoshibayev, the deputy foreign minister, later explained. Citizens of 10 designated countries can stay in Kazakhstan without visas for 15 days; anyone needing to stay longer would be required to apply for business or investor visas.
Astana is also mulling simplifying the visa process with the introduction of online applications for tourists from China, India and Middle Eastern states, Aset Ishekeshev, the minister of industry and new technologies, announced on June 16.
The visa-free regime is part of a package of investment perks that Nazarbayev signed into law on June 12, which also includes tax breaks.
The perks are part of a push by Astana to attract investment, especially outside the extractive sectors. They are part of the government’s strategy to diversify the economy away from oil and gas, upon which it is heavily reliant at present.
Four months after the precipitous downfall of Gulnara Karimova, the eldest daughter of Uzbekistan’s strongman leader Islam Karimov, the most visible arms of her former business empire still stand shuttered in Tashkent – although some enterprises are slowly coming back to life under different management.
Karimova has reportedly been under house arrest in Tashkent since February, after coming off worst in a power struggle with the influential head of Uzbekistan’s domestic intelligence service, Rustam Inoyatov, and her own mother Tatyana Karimova and younger sister Lola Karimova-Tillyaeva.
Nothing has been heard from the once powerful president’s daughter for three months, when she apparently smuggled a letter out to media complaining of ill treatment at the hands of her captors.
When the authorities isolated Karimova in February, businesses associated with her in Tashkent, where she had fingers in many pies (from telecoms to retail and entertainment), were abruptly shuttered.
Karimova’s face still stares down from the window of one outlet on Sadyk Azimov Street in downtown Tashkent, a once bustling DVD, CD, and computer game store that was part of a chain called Nirvana. The poster advertising the president’s daughter in her pop diva persona, Googoosha, remains, although the store stands closed and Googoosha’s songs have disappeared from the airwaves.
This poster is one of the few public signs left of the business empire presided over by Karimova, who once had such an appetite for swallowing up rivals’ interests that American diplomats dubbed her a “robber baron.”
Rakhat Aliyev, the former son-in-law of President Nursultan Nazarbayev, has been arrested in Vienna seven years after fleeing Kazakhstan following a spectacular fall-out with his father-in-law.
The arrest of Aliyev, who has been convictedin absentia in Kazakhstan on charges ranging from kidnapping and embezzlement to plotting a coup d’etat against Nazarbayev, was reported by Austria’s APA news agency on June 6.
The report did not specify on what charges Aliyev – the former husband of Nazarbayev’s eldest daughter, Dariga Nazarbayeva – had been detained, but noted that Austria opened a murder investigation against him in July 2011.
That came a month after Kazakhstan announced that Aliyev was facing a murder rap in absentia after evidence emerged “irrefutably proving” he had killed two bankers who disappeared in 2007.
Prosecutors said after finding the bodies of Zholdas Timraliyev and Aybar Khasenov four years after their disappearance that the men had been tortured, suffocated, put in barrels and hidden in a gorge outside Almaty, Kazakhstan’s commercial capital.
Aliyev – who held a string of high-powered posts in Nazarbayev’s administration and controlled a vast business empire – was serving as ambassador to Austria when the scandal over the bankers’ disappearance broke. He never returned to Kazakhstan.
He was later convicted in absentia of kidnapping the bankers, among other charges, and sentenced to 40 years in jail.
The leaders of Russia, Kazakhstan, and Belarus signed a potentially game-changing treaty in Astana on May 29, establishing a Eurasian Economic Union (EEU). If the union develops as envisioned, it could transform the geopolitical architecture of the post-Soviet region. But lots of hurdles still need to be cleared for that to happen.
Two prominent activists lobbying against Kazakhstan’s membership in the Russia-led Eurasian Economic Union (EEU) – due to be created next week – have been hauled in for interrogation by Kazakhstan’s domestic intelligence service over an alleged plot by Russian nationalists to destabilize the country.
Zhanbolat Mamay and Inga Imanbay were questioned for six hours by National Security Committee agents on May 21 as they were finalizing preparations to hold public hearings into Kazakhstan’s EEU membership.
The spooks questioned Mamay and Imanbay over their links to Russian far-right nationalist Aleksandr Potkin, who – according to unattributed material leaked to Kazakhstani media – went to Kazakhstan in 2012 and trained ethnic Kazakh nationalists to “provoke a confrontation” with “the Slavic community.”
In view of Moscow’s intervention in Ukraine on the pretext of protecting Russian speakers, Astana currently has an eye on its own ethnic Russians, who make up about 22 percent of the population. But it is not clear why Kazakhstan’s intelligence service took two years to launch the Potkin probe.
“This is a total lie and utter nonsense,” Mamay told EurasiaNet.org on the sidelines of the Almaty public hearings, describing the accusations as “a provocation carried out with the aim of discrediting me and those who speak out against joining the EEU.”
As Russia reasserts itself in its former Soviet backyard, the summit of an obscure Asian bloc in China offered a timely reminder that Beijing also has regional leadership aspirations—and, unlike sanctions-hit Moscow, can boast deep pockets too.
The summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA) gathered a motley crew of Asian leaders in Shanghai on May 21st, including Russian President Vladimir Putin and presidents from post-Soviet Central Asia and the Caucasus as well as leaders from diverse countries such as Afghanistan, Iran, Pakistan, Sri Lanka, and Mongolia.
Central Asia was well represented, with four of its five leaders attending. Neutral Turkmenistan stayed away: It is not a member of CICA, a talking shop set up in 1999 at the initiative of Kazakhstan’s president, Nursultan Nazarbayev—who used this summit to propose rebranding CICA into the Organization for Security and Development in Asia.
The summit took place against a backdrop of heightened Russo-US tensions over the Ukraine crisis and Sino-US sparring over a military-hacking affair and, more broadly, over China’s geopolitical aspirations in Southeast Asia. All that fueled expectations that mutual antagonism with Washington would cement closer Sino-Russian ties.
“For Russia, China is today a natural geopolitical ally in the formation of a world order in line with China’s interests,” Aydar Amrebayev of the Almaty-based Institute of World Economy and Politics told EurasiaNet.org.
The municipality of Almaty is suing Viktor Khrapunov, a former mayor and a foe of President Nursultan Nazarbayev, in the United States, accusing him of having “systematically looted” millions from city coffers over a decade ago.
Raising questions about why it took the municipality so long to notice the missing millions, the case was lodged in a Los Angeles federal court on May 14, a decade after Khrapunov left the post of mayor and six years after he moved out of Kazakhstan to base himself in a luxury Swiss mansion.
Adding piquancy to the scandal, Khrapunov’s daughter Madina is related by marriage to embattled oligarch Mukhtar Ablyazov, Astana’s public enemy number one.
Discredited former banker Ablyazov is in jail in France battling extradition to Russia on fraud charges, and fighting moves to strip him of political asylum in the United Kingdom.
Madina Ablyazova is named as a defendant in the Khrapunov case along with Khrapunov’s wife Leila and son Ilyas, reports The Courthouse News, a Pasadena-based legal wire service.
Khrapunov – a former Nazarbayev administration insider who held a string of top posts including mayor of Almaty from 1997 to 2004 – “abused his position of trust as a public official in order to convert and sell numerous assets belonging to the City of Almaty for his own benefit and the benefit of his co-conspirators,” the report quotes the lawsuit as saying.