The governor of Kyrgyzstan’s Issyk-Kul Province was taken hostage for several hours on October 7 in the latest bout of unrest related to a controversial, Canadian-owned gold mine. Hundreds of protestors, including some on horseback, continued to clash with police late in the evening.
Protestors grabbed Emil Kaptagaev, who has been governor only since a summer shakeup that followed violent riots outside the nearby mine in May, and stuffed him into a car. Some reports said the rioters wanted to nationalize the mine, Kumtor; others said they wanted the government’s stake in any future deal to be no less than 70 percent.
Kaptagaev was released around 7 p.m. local time amid unconfirmed reports he had been drenched in gasoline and threatened with matches.
Several hours later, protests flared up again, with police reportedly employing stun grenades and tear gas in failed attempts to disperse rioters throwing rocks and pouring petrol on the road, according to Kloop.kg.
A press officer for the local police told Kloop.kg earlier in the day that the protestors were supporters of Bakhtiar Kurmanov and Ermek Dzhunushbaev, who were arrested last month for allegedly trying to extort $3 million from Kumtor.
Few in Bishkek believe protests like this happen spontaneously. Instead, they are often attributed to criminal gangs or politicians trying to extort money from the mine, the largest legitimate business in Kyrgyzstan. In a good year Kumtor accounts for 12 percent of GDP and half of industrial output.
One of the biggest businessmen operating in Tajikistan’s capital has admitted he’s been laundering Iranian oil money for years.
In August, EurasiaNet.org highlighted the Tajik wing of Iranian businessman Babak Zanjani’s transcontinental financial empire. The US Treasury had frozen Zanjani’s accounts earlier this year for allegedly helping Iran sell its oil, despite international sanctions. The EU has blacklisted him for the same. Now, under pressure at home, he says that’s exactly what he’s been doing all along, the New York Times reports, referencing an interview with the weekly Aseman magazine.
Beginning in 2010, Mr. Zanjani, who declined to be interviewed for this article, told the magazine and, in a separate meeting, the semiofficial Iranian Students’ News Agency that he used a spider web of 64 companies in Dubai, Turkey and Malaysia to sell millions of barrels of oil, earning $17.5 billion in desperately needed foreign exchange for Iran’s Oil Ministry, Revolutionary Guards and central bank.
“The central bank was running out of money,” he said in the Aseman interview, published last week. In 2010, “they asked me to bring their oil money into Iran so the system could use it,” Mr. Zanjani said of Iran’s political establishment. “So that is what I did.” […]
“This is what I do — antisanctions operations,” Mr. Zanjani said. “I am a businessman who has done his job well. Since I was placed under sanctions they haven’t managed to sell even three million barrels of oil.”
The World Bank released summaries of the first two studies in a series of long-awaited reports on Tajikistan’s controversial Rogun hydropower dam this week. Prepared by French consultancy Coyne et Bellier, the technical assessments are designed to help Tajikistan make informed engineering decisions about the complicated project.
Depending on how you read the carefully worded reports, which have been reviewed by Tajik officials, they could be seen as a victory for either Tajikistan or downstream Uzbekistan. Uzbekistan is vehemently opposed to the project, arguing that it is not safe and that it will give Tajikistan unfair control over water resources. President Islam Karimov has even said that such a project could lead to war.
Yet the reports also allow Tajik officials to argue that everything is under control, that the consultants outlined necessary, but manageable repairs.
For certain, the reports recommend what sounds like a lot of repairs to previously built structures, and expensive-sounding mitigation efforts to address an underground threat.
Kyrgyzstan’s government is working overtime to convince legislators and the public that a preliminary restructuring deal involving the country’s largest foreign investor is in the state’s best interests. But parliament’s governing coalition is balking at signing off on the deal.
Georgian soldiers disembark at the Manas Transit Center, in Kyrgyzstan, after a charter flight from Tbilisi. They will spend about two days at the airbase before deploying to Afghanistan on a US Air Force jet. With over 1,500 soldiers on the ground, Georgia is the largest non-NATO contributor to the International Security Assistance Force (ISAF).
David Trilling is EurasiaNet's Central Asia editor.
A new exhibit in Moscow offers a colorful way to trace early Soviet history in Central Asia and the Caucasus. “Posters of the Soviet East: 1918-1940,” which opened this month, features 241 original propaganda placards that targeted the Muslim lands of the former Soviet Union with exhortations on public health, industrialization and class consciousness.
Chinese President Xi Jinping, who has opened his wallet to the tune of tens of billions of dollars on his four-nation tour of Central Asia this month, didn’t run out of money before he arrived in Kyrgyzstan. Beijing has offered Bishkek a much-needed cash infusion reportedly totaling about $3 billion.
During his trip, Xi helped inaugurate the world’s second-biggest natural gas field, in Turkmenistan, which will help triple China’s imports from what is already its largest foreign supplier. In Kazakhstan, he reportedly signed energy deals worth $30 billion. In Uzbekistan, AFP reported $15 billion in vague energy and mining deals.
In resource-poor Kyrgyzstan, Economics Minister Temir Sariev said Beijing’s credits and investments would total $3 billion. About half will be used to build a 225-kilometer pipeline across the country for the Turkmen gas, from which Kyrgyzstan will eventually receive transit fees.
The package announced on September 11 includes a loan to build a new highway connecting Kyrgyzstan’s north and south, KyrTAG reports, citing Sariev, a $400 million loan to modernize the ailing Bishkek heating plant, and $400 million toward a long-delayed Chinese-built oil refinery. There’s even a promise to open a hospital specializing in Chinese medicine.
Kyrgyzstan’s largest investor has announced a tentative deal that would end months of gridlock over one of the country’s most valuable assets.
In a statement posted on its website September 9, Toronto-based Centerra Gold said
it had entered a “non-binding memorandum of understanding” with Bishkek that would see the Kyrgyz government trade its 32.7 percent interest in Centerra, plus $100 million in future profits, for a 50 percent stake in a joint venture that would own and operate the Kumtor gold mine. Kumtor, which has yielded about 270 tons of gold since 1997, is Centerra’s most productive mine.
In February, Kyrgyzstan’s parliament passed a resolution that required the government to negotiate a more lucrative deal with Centerra or unilaterally revoke the 2009 operating agreement. That resolution came on the back of efforts by some opposition figures to nationalize the mine.
For years industry observers have asserted that environmental protests outside the Canadian-run Kumtor Gold Mine in Kyrgyzstan’s eastern mountains were part of an elaborate shakedown scheme. Now a video has emerged that appears to substantiate this view.