The man convicted of ordering the murder of an opposition leader eight years ago is to be released on parole, a court in Astana has ruled. The decision raises, yet again, questions about the judiciary’s independence.
Yerzhan Utembayev will be released after serving eight years of his sentence over the brutal killing of Altynbek Sarsenbayev, an opposition leader and former government minister, in 2006, Tengri News reports.
Sarsenbayev’s brother, Rysbek Sarsenbay, had asked the court not to release Utembayev, claiming that he is concealing the names of those really responsible for the murder. “We want those who are really guilty to be exposed and convicted,” Sarsenbay said. But his arguments fell on deaf ears.
At his trial in 2006, Utembayev – who originally confessed to contracting the murder, but later recanted – was jailed for 20 years after being found guilty of hiring a hitman to kill Sarsenbayev for $60,000 in revenge for a newspaper article making unflattering revelations about him.
The trial found that Utembayev (who was at the time was head of the Senate secretariat) contracted Rustam Ibragimov, a former Interior Ministry officer, who set up a death squad comprising rogue members of elite Kazakhstani anti-terrorism units, which kidnapped Sarsenbayev and two aides and delivered them to Ibragimov, who killed the three men.
In terms of statistics, unless they are the rosy government sort, Tajikistan often appears to be on the edge of an abyss. But somehow the poorest country to emerge from the Soviet Union chugs on.
So a grim World Bank report out this week probably does not indicate imminent collapse. But it is unnerving to see that almost every macroeconomic indicator suggests trouble ahead. And Tajikistan’s latest predicament coincides with a push from Moscow to join Russia’s new Eurasian Economic Union.
Tajikistan’s economic dependence on Russia is, as economists have long warned, a liability—and not only because it gives Moscow enormous influence. “The possible spillover effect from the Russian slowdown onto the Tajikistan economy is estimated to be one of the largest in the [Europe and Central Asia] region: a 1 percentage point reduction in the growth of Russia’s GDP would reduce growth in Tajikistan by the same amount,” says the October 27 report, “Tajikistan: Moderated Growth, Heightened Risk.”
For starters, over a million Tajiks, or about one-half of working-age Tajik men, labor in Russia, usually in menial jobs. Their transfers are worth about half of Tajikistan’s GNP, making it the most remittance-dependent country in the world.
But as the Kremlin sacrifices Russia’s economy for its Ukraine policy, which has caused a new low in relations with the West, the resulting downturn is hurting the ruble and Tajikistan’s economy at large. An ailing ruble buys fewer dollars to send home.
The 19th-century Kazakh and Russian cultural icons depicted enjoying a kiss on a poster may be long dead. But that has not stopped a court in Kazakhstan awarding massive damages to a group of living people who claim the image of two men kissing has hurt their feelings.
On October 28, a court in Almaty ordered the advertising agency that designed the poster – which shows Kazakh composer Kurmangazy Sagyrbayuly and Russian poet Alexander Pushkin kissing – to pay 34 million tenge ($188,000) to a group of 34 music students and teachers whose only tenuous connection to the image is that they study and work at the Kurmangazy Kazakh National Conservatory, Tengri News reports.
The ruling awarding each plantiff a million tenge is “unfair,” said Dariya Khamitzhanova, director of the Havas Worldwide Kazakhstan agency, which designed the poster. “This 34 million will ruin our company.” She pledged to appeal, but meanwhile the court has frozen the agency’s assets.
The controversial poster – advertising an Almaty gay club at the intersection of Kurmangazy and Pushkin streets and inspired by a famous image of the leaders of East Germany and the Soviet Union kissing in 1979 – was designed for an advertising competition in August and was never intended for showing in the public domain.
However, after the picture started doing the rounds on social media a public outcry ensued and three separate lawsuits were launched against the agency, which has repeatedly apologized for any offense caused.
In going back to the drawing board to work on fresh ways to foster democratization in Central Asia, civil society advocates need to pay more attention to property rights, a leading rights activist contends.
Yevgeniy Zhovtis, a prominent human rights advocate in Kazakhstan, gave the keynote address at the annual Central Eurasian Studies Society conference, held at Columbia University in New York on October 24-26. He painted a bleak picture of the existing social and political landscape in Central Asia. Outside of Kyrgyzstan, Zhovtis noted, authoritarianism has taken deep root in Central Asia, with governments implementing extensive measures to squash basic freedoms.
“Single-party parliaments, … special forces exercising total surveillance, law-enforcement [bodies] protecting the interests of the ruling elite at all times – this is reality in Central Asia,” Zhovtis said.
Hopes for reversing the current trend rest mainly on solving dilemmas relating to property rights in Central Asia, Zhovtis suggested. He noted that 70-plus years of communism in the former Soviet Union completely skewed the way citizens in the region understand the concept of private property, adding that the sanctity of property rights is the fundamental building bloc of any civil society.
“In modern societies, the evolution of economic and legal foundations for private property facilitated ideas of individual rights and freedoms. In post-Soviet countries, this process never took root,” he said.
What to get the oligarch who has everything? How about a caviar spa experience on the shores of the Caspian Sea?
Billed as a “black caviar spa for real gourmands,” this is one of the leisure experiences that will be available at the upmarket Kenderli resort in Kazakhstan when it opens its doors in a few years. If immersing your body in a bath of fish eggs is not to your taste, how about “dances with seals?”
These and other once-in-a-lifetime experiences are being touted to lure tourists to a part of Kazakhstan not known for bringing in the holiday hordes: the eastern shores of the Caspian Sea, where, if developers get their way, a high-class resort will soon spring up out of the desert, reports Tengri News.
The development blueprint expects that by 2020 over half a million tourists will be flocking to Kenderli every year, with foreigners making up over half of the projected 642,000 visitors. Russia is considered the most promising market, but the resort will also target holidaymakers from other parts of Central Asia and the former Soviet Union, and visitors from Turkey and the Middle East.
Developers have an ambitious vision for Kenderli as “a superb 21st century tourist coastal resort” that will become the “best” on the Caspian, “the perfect destination for domestic and international tourists, generating wealth for the region and wellbeing for our people.”
With a cold, dark winter inching closer each day in Kyrgyzstan, the government is desperately trying to strike bilateral energy-import agreements with anyone and everyone. But as policymakers go hunting around Central Asia to plug an estimated deficit of over 2 billion kilowatt-hours, prices and political differences are potent sticking points.
Any bilateral deal would require the differential in electricity costs be borne either by the insolvent government, or by ordinary Kyrgyzstanis, who are accustomed to paying $0.015 per kilowatt-hour. That’s far below the cost of production and substantially less than citizens pay in any other Central Asian country.
So Kazakh electricity, which costs around four times as much for Kazakhs, is expensive to most Kyrgyz, although that didn’t stop Astana and Bishkek agreeing to an import deal in principle last week. Tajik electricity is over one-and-a-half times as expensive as the Kyrgyz version and it is doubtful whether a country whose own rural residents spend a lot of time in the dark has any power to spare.
The perfect cure to a Kyrgyz winter of misery, then, could come from gas-rich Turkmenistan.
A BMW 7 Series sedan. Will Kazakhstan's Olympic officials be using official money to buy themselves any of these? It's happened before. (BMW.ru)
The question on some minds in Almaty is not if Kazakhstan’s financial hub will win the right to host the 2022 Winter Olympics, but rather, if Almaty does, who will steal the public funds designated for the Games. After all, few in Almaty were shocked to learn this week that the last time they hosted a big sporting bash, millions of dollars disappeared.
A judge in Almaty has sentenced Aidar Musin, a member of the 2011 Asian Winter Games organizing committee, to over five years in jail for embezzling more than $3 million from the state’s budget for those games, reports TengriNews.
Kazakhstan's financial police had alleged that a company with connections to Musin won a 1.4 billion tenge ($7.3 million) contract to provide a telecommunications system and equipment for a ski-jumping complex in Almaty. More than 600 million tenge ($3.3 million) from that contract disappeared, with Musin using some of this money to buy himself a 2009 model BMW 750 sedan and a 2011 model Mercedes Benz E-250 sedan, the Almaty City Court ruled.
Almaty is one of two finalists in the competition to host the 2022 Winter Olympics. Only Beijing is also still in the running after a gaggle of European cities pulled out, citing low public support for the billions necessary to host the spectacle.
Kazakh officials say they are keen to keep costs for the 2022 Winter Olympics under control by attracting sponsors and advertisers to cover most expenses. The budget is currently around $3.7 billion. But as with any major project in Kazakhstan, it is hard to avoid questions about corruption.
The ruble vs the tenge over the last 12 months. The sharp change in February indicates the first tenge devaluation. Since then, the ruble has continued to slide, again putting pressure on the tenge. xe.com.
As the price of oil falls, and as Russia’s Central Bank struggles to keep the ruble from hitting a new record low each day, Kazakhstan’s currency is facing pressure on two fronts. The major oil producer, whose economy is tightly linked to Russia’s, already sharply devalued the tenge once this year. But facing these new challenges, can the Kazakh National Bank hold its currency stable? And can Kazakhstan keep its books balanced?
Higher output and weaker global demand have pushed the price for benchmark Brent crude to $83 per barrel, its lowest in four years, down 27 percent since June. Oil, Kazakhstan’s chief export, is still above the government’s fiscal breakeven point of $65.5 per barrel, as calculated by the IMF. But it is below $90.6, where Kazakhstan faces a balance of payments deficit that puts further downward pressure on the currency. Moreover, trade with Russia is down 22 percent this year.
Kazakhstan’s “tenge weakened in forward markets last week, responding to a drop in the price of oil and sliding ruble,” Halyk Finance, an Almaty-based investment bank, said in an October 13 note. “The weakening of the Russian ruble and falling oil prices are the main fundamental reasons of the tenge weakening in forward markets.”
Russia is Kazakhstan’s main trading partner. And because of the falling price of oil, and the effect of sanctions the West has imposed on Moscow for meddling in Ukraine, the Russian currency has fallen nearly 20 percent this year. That has put the ruble-tenge exchange rate back where it was just before the tenge devaluation (see chart).
Lawmakers in Kyrgyzstan have voted overwhelmingly to adopt a tougher version of Russia’s so-called “gay propaganda” law. The Kyrgyz version mandates jail terms for gay-rights activists and others, including journalists, who create “a positive attitude toward non-traditional sexual relations.”
The vaguely worded bill passed its first reading on October 15 with a vote of 79 to 7, AKIpress reported (the 120-seat legislature is rarely full). During a meeting last week to discuss the bill, one lawmaker said the draft is not tough enough and proposed to increase sentences from up to one year to three. If it passes two more readings, the bill will go to President Almazbek Atambayev – a staunch Russia ally – for his signature.
One of the bill’s authors, Kurmanbek Dyikanbayev, often sounds as if he is repeating Kremlin talking points. Dyikanbayev told Radio Azattyk last week that he sponsored the bill to protect Kyrgyzstan’s “traditional families.” He also blames Western democracy for moral degeneracy and for encouraging homosexuality.
Bishkek-based LGBT-rights organization Labrys, whose advocacy would be outlawed by the bill, notes that the legislation contradicts numerous human-rights provisions in Kyrgyzstan’s constitution. Nika Yuryeva of Labrys said she fears the bill will encourage more violence against the LGBT community.
An Ontario court has frozen much of Kyrgyzstan’s share in its largest industrial asset, the Kumtor Gold Mine, adding an awkward new twist to the epic saga over the mine’s future.
Kumtor is fully owned by Toronto-listed Centerra Gold, which is one-third owned by Kyrgyzstan’s state-run Kyrgyzaltyn gold company. Since early 2012, Kyrgyzstan has been trying to increase its share in the high-altitude mine, which accounts for over 50 percent of the impoverished country’s industrial output and 10 percent of GDP in a good year. Early this year, the government and Centerra were moving toward an agreement that would increase Kyrgyzstan’s share in Kumtor to 50 percent, but negotiations have stalled as some lawmakers continue to demand the mine be nationalized.
The Ontario Superior Court of Justice ruling favors another investor with no role in the Kumtor dispute: Stans Energy, which says Kyrgyzstan has failed to pay the $118 million in damages awarded in Moscow this summer related to a different mine site, Kutessay II. In July, the Arbitration Court at the Moscow Chamber of Commerce and Industry ordered the Kyrgyz government to pay Stans in compensation for seizing the company’s license to Kutessay II, a heavy rare earths deposit.
Stans Energy announced on October 14 that the court order “prohibits the Kyrgyz Republic and Kyrgyzaltyn JSC ("KJSC") from selling, disposing, exchanging, assigning, transferring, pledging or encumbering 47,000,000 shares in the capital of Centerra Gold Inc. registered in the name of KJSC.”