Kyrgyzstan's massive loss at an arbitration court this month has encouraged speculation that the country's only significant foreign asset – its stake in a Canadian gold mining company – is up for grabs.
On July 2, a tribunal in Moscow awarded Toronto-listed Stans Energy Corp $118.2 million in damages in a dispute over the Kutessay-II heavy rare earth elements mine in Kyrgyzstan’s Talas Province. Stans acquired a 20-year license to the mine in 2009, which the Kyrgyz parliament recommended the government annul in 2012. (Stans has alleged that powerful Chinese interests in Kyrgyzstan bribed parliamentarians to revoke the license in order to help Beijing maintain control over the lucrative rare earths market.)
Canada’s National Post reports that Stans has few options because Kyrgyzstan, one of the poorest countries in Asia, does not have that kind of cash lying about. So Stans could seek to seize Kyrgyzstan’s shares in Toronto-listed Centerra Gold, which, in turn, owns Kyrgyzstan’s largest industrial asset, the Kumtor Gold Mine. From the National Post’s financial pages:
It is highly unlikely that Kyrgyzstan will respect the ruling and pay out any cash. That leaves Stans the option of securing verdicts against one or more of the state’s foreign assets. And a logical one to go after would be Kyrgyzstan’s 32.7% stake in Centerra, currently worth almost $500 million.
Some media outlets in Ukraine have charged that Central Asians are fighting among pro-Russian separatists in the country’s east.
The most recent fodder for the rumor mill is a video interview, posted July 8 on YouTube, where a man describing himself as a native of Ashgabat, Turkmenistan’s capital, explains why he is fighting with the separatists.
The man in camouflage, whose identity cannot be independently verified, is standing before a military vehicle and appears to be holding a weapon. "I decided that the weak should be defended," he explains. He says he is not paid but is fighting because of what his interlocutor described as his "sense of injustice.” He vows to fight "until the end of the war.”
In recent months, several Uzbeks have also reportedly appeared among the separatists.
On June 22, Reuters published a picture of a man carrying a Kalashnikov assault rifle who was identified as "Bakhtiyor” from Uzbekistan. A few days later, RFE/RL said recruiters in Moscow told their undercover correspondent that he and an Uzbek friend could join the separatist fighters in the rebel stronghold of Donetsk "in principle."
One Uzbek citizen with pro-Kiev sympathies told RFE/RL he had been offered $50-$100 a day to fight with separatists in Luhansk.
Authorities in Uzbekistan and Turkmenistan have not commented on the allegations.
An American sailor monitors the Breeze 2014 exercises from the USS Vella Gulf. (photo: U.S. Navy)
Competing Black Sea naval exercises by NATO and Russia have again raised tensions in the region as the once sleepy sea has become a venue for geopolitical competition.
Russia's exercise started July 4 and involves 20 ships and 20 aircraft. Its scenario was the "destruction of enemy ships in the sea and organization of air defense of naval groups and coastal infrastructure."
NATO's exercises, called "Breeze" and formally hosted by Bulgaria, also started July 4 and continue until July 13, with ships from Greece, Italy, Romania, Turkey, the U.K. and the U.S. also taking part, along with naval patrol planes from Turkey and the U.S. The exercises are "aimed at improving the tactical compatibility and collaboration among naval forces of the alliance's member states."
And the U.S. participation, with the guided missile cruiser USS Vella Gulf is intended to "reassure" allies in the region, a thinly veiled reference to Russia: "It is important to support and reassure our partners, we hope our presence in the Black Sea continues to strengthen those bonds," the USS Vella Gulf's commander said.
An exchange of fire between troops on a disputed section of the Kyrgyzstan-Tajikistan border reportedly left at least one dead and several injured on July 10. Tensions have risen sharply again in this volatile part of the Fergana Valley after negotiations over a controversial road construction project fell apart earlier this week.
According to the Kyrgyz Border Service, about 30 Tajik citizens were trying to build a water pipeline from Kyrgyz territory to the Vorukh exclave, a parcel of Tajik territory surrounded entirely by Kyrgyzstan. Kyrgyz border guards demanded they stop, the Tajiks threw stones and eventually troops from the two sides exchanged fire.
According to the Tajik-language service of Radio Liberty, citing a local doctor in Vorukh, one Tajik national (apparently a civilian) died and five were injured in the exchange of fire. Dushanbe’s Asia-Plus news agency reports seven wounded. Tajikistan's Foreign Ministry says the Kyrgyz border guards picked a fight, shot without warning, and that the Tajik border guards did not fire a single shot.
Later in the day, the Kyrgyz Border Service said Tajik border guards had opened fire on another Kyrgyz checkpoint, this time with mortars and grenades.
Taking its Eurasian-Union dreams into the Western Hemisphere, Armenia has offered itself to Argentina as a conduit for trade with the Russia-led economic club, even though Yerevan is still knocking on the Union’s door for entry.
At a July 7 lunch-reception in Buenos Aires, Armenian President Serzh Sargsyan raised a glass to the Argentine city, “the world capital of tango, [a city] filled with the melody and spirit of that dance,” and thanked Argentina, home to one of the world’s largest Armenian Diasporas, for supporting the pan-Armenian cause of international recognition of Ottoman Turkey’s World-War-I-era massacre of ethnic Armenians as genocide. A day later, he attended the opening of an Armenian Genocide Museum in Buenos Aires.
Sargsyan, though, had more than 1915 and tangos on his mind. In a pointed nod to Argentina’s status as Armenia’s fifth-largest foreign direct investor, Armenia encouraged this “football superpower” to pass some trade via Armenia into the Eurasian-Union-market of Russia, Belarus and Kazakhstan. Argentina’s official response could not be found.
But President Sargsyan could be getting ahead of himself here. Armenia’s own entrance into the Eurasian Union has been repeatedly delayed, with the latest prospective join-date now “by the end of the year,” according to Prime Minister Hovik Abrahamian.
The ghost of sectarian violence appears to be stalking authoritarian but boastfully secular Azerbaijan, with local clashes and the resurgence of jihadism in Iraq and Syria casting a long shadow.
Several Shi’a Muslims, adherents to this Caucasus country’s dominant religion, recently forcibly shaved the beard of a Sunni man from an alleged Wahhabi group in the town of Sabirabad, 170 kilometers southwest of the Azerbaijani capital, Baku. A mobile video of the attack was posted on YouTube on July 4, but promptly removed.
The police launched a probe into the incident and religious officials have condemned it, but, apparently, not fast enough for some people. Local news reports claim that, in an apparent retaliatory attack on July 5, Wahhabi men beat several Shi’a believers in a village on the outskirts of Baku during an iftar, the evening meal at the end of the daily Ramadan fast.
“This is the tragedy of a man, who, after the Soviet period, is not allowed to live his faith and to proselytize,” Ilgar Ibrahimoglu, a prominent religious-rights scholar and imam, commented to SalamNews.org about the beard-shaving incident. “This is the tragedy of an Azerbaijani man who goes from one extreme to another.”
Ibragimoglu blamed the confrontations on the Islamic State of Iraq and Syria (ISIS), a jihadist group that allegedly has recruited many followers in Azerbaijan. “But this gives absolutely no right to anyone to shave the beard of every bearded man who comes along,” he underlined.
That’s the lesson after a Chinese company appears to have bested a Russian one for the right to turn Kyrgyzstan’s main civilian airport into a strategic aviation “hub” for freight and passenger flights connecting Europe and Asia.
The Chinese maneuver would not have surprised anyone in a country where China is building almost everything, except that Kremlin-controlled energy giant Rosneft appeared to have had the deal to remodel Bishkek’s Manas International Airport in the bag. On February 19, Putin ally Igor Sechin, Rosneft’s chairman, and Kyrgyz First Deputy Prime Minister Djoomart Otorbaev (now prime minister), signed a memorandum on Rosneft’s interest in the airport and its lucrative fuel-distribution contracts.
Fast forward five months and both Russian and Taiwanese media are reporting that Beijing Urban Construction Group will invest $1 billion in the makeover, a figure similar to the Rosneft deal. China Machinery Engineering Corporation will sign a $300 million deal for the country’s second airport, in the southern city of Osh—another asset that had interested Rosneft.
"So far these are memorandums of intention, but in the near future the fully planned projects will be ready," Kommersant quoted Kyrgyz Economics Minister Temir Sariyev as saying on July 4. The reports do not mention what share in the airports the Chinese will get.
U.S., Mongolian, and other militaries take part in Khaan Quest 2014 exercises in Mongolia. From top: U.S. Marines hold back simulated protesters in riot control training; Mongolian and U.S. troops practice riverine training; traditional Mongolian wrestling; soldiers from Tajikistan take part in riot-control exercises. (photos: U.S. military public affairs)
Over 1,000 soldiers, including about 300 Americans, took part in joint military exercises in Mongolia aimed at preparing for international peacekeeping missions. The annual exercise, known as Khaan Quest, is the biggest event in the U.S.-Mongolia military relationship, which has been gaining importance as Mongolia tries to diversify its foreign relations beyond its two immediate neighbors, China and Russia, and as the U.S. is happy to help.
In addition to Americans and Mongolians the participants in this year's version of Khaan Quest include troops from South Korea, India, Canada, New Zealand, Australia, Japan, France, United Kingdom and Germany. Several more countries sent observers, including Belarus, China, India, Kazakhstan, Russia, and Tajikistan. The exercises were held from June 20-July 1.
The military scenarios drilled include riot control, response to an improvised explosive device, and community outreach programs like renovating a school and operating health clinics.
Russia's turn will come in a few weeks; its annual joint military exercises with Mongolia, called Selenga, will this year take place in mid-August and will involve about 500 Russian soldiers.
In the corner of a small pizzeria in central Bishkek, an experiment is unfolding. Central Asia’s first and only bitcoin ATM converts dollars into the world’s most popular cryptocurrency. The machine – which looks like one of the city’s ubiquitous electronic pay terminals – offers a way to convert hard currency into a digital medium that is increasingly used in online transactions.
That could impact how Kyrgyzstan’s estimated one million migrant workers transfer their earnings home, says the machine’s owner, Emanuele Costa, an Italian financial analyst. The World Bank estimates that last year migrant remittances totaled the equivalent of 31 percent of Kyrgyzstan’s GDP. Most of that money, several billion dollars, was transferred through expensive, fee-based services like Western Union and Zolotaya Korona. Costa, a former analyst with Goldman Sachs, sees bitcoin as a low-cost, secure and confidential alternative.
Bitcoin, invented by a group of anonymous Internet users in 2009, is the first and most prominent digital cryptocurrency to gain wide circulation. Not controlled by national governments or banks, bitcoin offers a peer-to-peer encrypted payment system that can be readily converted into cash or, increasingly, used in exchange for products or services. Fees, when they exist, are agreed upon by users and are usually nominal. Bitcoin’s value fluctuates based on supply and demand; one bitcoin is currently worth about $642.
Though Costa is a staunch believer in bitcoin’s potential, he admits that it faces some hurdles. Foremost is a lack of understanding.
Georgia filed a complaint against Russia in Europe’s senior human-rights court in 2007, but it took nearly seven years for the EHCR to pass a verdict . “The Russian authorities had implemented a coordinated policy of arresting, detaining and expelling Georgians nationals” violating international law that bars the “collective expulsion of aliens” and “inhuman and degrading treatment,” the ECHR said in a press release on the July 3 verdict.
The long-awaited verdict put Tbilisi in a celebratory mood. “I would like to congratulate with this victory all those Georgians, who were subjected to degrading treatment, and to tell them that the European Court has stood up for their rights,” Justice Minister Tea Tsulukiani, a former ECHR employee, said in a statement.