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Millions Without Power After Blackouts Hit Kazakhstan, Uzbekistan, Kyrgyzstan

A massive power outage was reported on Tuesday across several Eurasia countries that left millions in the dark.

Reuters reports Kazakhstan, Uzbekistan, and Kyrgyzstan found themselves without power today. All three ex-Soviet republics have interconnected power grids connected to Russia.

The source of the disruption could be due to Kazakhstan’s North-South power line, which links its two neighbors to power stations in northern Kazakhstan and the Russian power grid. On Tuesday morning, Kazakhstan Electricity Grid Operating Company (KEGOC) said “emergency imbalances” resulted in disruptions.

…click on the above link to read the rest of the article…

The Three Types of US ‘Regime Change’

The Three Types of US ‘Regime Change’

When the U.S. overthrows a foreign government it either works from the top down, the bottom up, or through military invasion, writes Joe Lauria.

Chilean presidential palace during U.S.-backed coup, Sept. 11, 1973. (Library of the Chilean National Congress/Wikipedia)

Throughout the long, documented history of the United States illegally overthrowing governments of foreign lands to build a global empire there has emerged three ways Washington broadly carries out “regime change.”

From Above. If the targeted leader has been democratically elected and enjoys popular support, the C.I.A. has worked with elite groups, such as the military, to overthrow him (sometimes through assassination).  Among several examples is the first C.I.A-backed coup d’état, on March 30, 1949,  just 18 months after the agency’s founding, when Syrian Army Colonel Husni al-Za’im overthrew the elected president, Shukri al-Quwatli.

The C.I.A. in 1954 toppled the elected President Jacobo Árbenz  of Guatemala, who was replaced with a military dictator. In 1961, just three days before the inauguration of President John F. Kennedy, who favored his release, Congolese President Patrice Lumumba was assassinated with C.I.A. assistance, bringing military strongman Mobutu Sese Seko to power.  In 1973, the U.S. backed Chilean General Augusto Pinochet to overthrow and kill the democratically-elected, socialist President Salvador Allende, setting up a military dictatorship, one of many U.S.-installed military dictatorships of that era in Latin America under Operation Condor.

From Below. If the targeted government faces genuine popular unrest, the U.S. will foment and organize it to topple the leader, elected or otherwise.  1958-59 anti-communist protests in Kerala, India, locally supported by the Congress Party and the Catholic Church, were funded by the C.I.A., leading to the removal of the elected communist government…

…click on the above link to read the rest of the article…

The Hunter Connection? Kazakh Security Chief Arrested For Treason Was “Close Friends” With Bidens

The Hunter Connection? Kazakh Security Chief Arrested For Treason Was “Close Friends” With Bidens

Among the boldest and eye-brow raising political moves by embattled Kazakh President Kassym-Jomart Tokayev within the past days that grabbed international headlines was his ordering the arrest of Kazakhstan’s powerful former intelligence chief, Karim Massimov, on the charge of high treason.

Indicating that amid widespread fuel price unrest which quickly became aimed squarely at toppling Tokayav’s rule there’s a simultaneous power struggle within the government, Massimov had headed the National Security Committee (KNB) up until his Thursday sudden removal and detention. Massimov had served as the prior longtime strongman ruler Nursultan Nazarbayev’s prime minister and has long been considered his “right hand man”. Shortly after, a photo has resurfaced, currently subject of widespread speculation which shows Joe Biden and Hunter Biden posing with the now detained Kazakh security chief Karim Massimov, along with well-connected oligarch Kenes Rakishev.

Hunter and Joe Biden with Kenes Rakishev (left) and Kazakhstan’s former prime minister and just arrested security chief, Karim Massimov (right). Source: Kazakhstani Initiative on Asset Recovery

Further an email and communications have surfaced, previously subject of extensive reporting in The Daily Mail, and related to prior extensive commentary and questions concerning Hunter’s ‘laptop from hell’ – that appears to confirm that Hunter Biden and Massimov were “close friends”.  Reporting at the time indicated that “when Biden was vice president, Hunter worked as a go-between between for Rakishev from 2012 until 2014. And further the emails were from “anti-corruption campaigners” in Kazakhstan showing that Hunter made contact with Rakishev. And more: “Per the report, Hunter successfully got a $1million investment from Rakishev to a politically-connected filmmaker.”

…click on the above link to read the rest of the article…

Why The Kazakhstan Crisis Is A Much Bigger Deal Than Western Media Is Letting On

Why The Kazakhstan Crisis Is A Much Bigger Deal Than Western Media Is Letting On

Geopolitical commentator Clint Ehrlich has reported while on the ground in Moscow that “the situation in Kazakhstan is a much bigger deal than Western media is letting on.” He further argues that the mayhem unleashed this past week and ongoing violent destabilization significantly increases the risk of NATO-Russia conflict.

He asks the key question: what really is happening in Kazakhstan? After all, he writes  “In America, the situation in Kazakhstan is a small news item” but it remains that “in Moscow, it is currently receiving 24/7 news coverage, like it’s an apocalyptic threat to Russia’s security. I’ve had the TV on here while writing this thread, and Kazakhstan has been on the entire time.” Below is Ehrlich’s mega-thread from Twitter exploring the crisis and connecting the dots in terms of why this is a bigger deal than many believe…

Mass protests and anti-government violence have left dozens dead. Russia is deploying 3,000 paratroopers after Kazakh security forces were overrun. The largest city, Almaty, looks like a warzone. To appreciate why Russia is willing to deploy troops to Kazakhstan, it’s critical to understand the depth of Russia’s vital national interests inside the country. This isn’t just any former Soviet republic. It’s almost as important to Russia as Belarus or Ukraine. 

First, Russia and Kazakhstan have the largest continuous land border on planet earth. If Kazakhstan destabilizes, a significant fraction of the country’s 19 million residents could become refugees streaming across the border. Russia is not willing to let that happen.

Second, roughly one-quarter of the population of Kazakhstan is ethnic Russians. Kazakh nationalists are overwhelmingly Muslims, who resent the Orthodox-Christian Russian minority. Russia believes that civil war would entail a non-trivial risk of anti-Russian ethnic cleansing.

…click on the above link to read the rest of the article…

Steppe on Fire: Kazakhstan’s Color Revolution

Steppe on Fire: Kazakhstan’s Color Revolution

Maidan in Almaty? Oh yeah. But it’s complicated.

So is that much fear and loathing all about gas? Not really.

Kazakhstan was rocked into chaos virtually overnight, in principle, because of the doubling of prices for liquefied gas, which reached the (Russian) equivalent of 20 rubles per liter (compare it to an average of 30 rubles in Russia itself).

That was the spark for nationwide protests spanning every latitude from top business hub Almaty to the Caspian Sea ports of Aktau and Atyrau and even the capital Nur-Sultan, formerly Astana.

The central government was forced to roll back the gas price to the equivalent of 8 rubles a liter. Yet that only prompted the next stage of the protests, demanding lower food prices, an end of the vaccination campaign, a lower retirement age for mothers with many children and – last but not least – regime change, complete with its own slogan: Shal, ket! (“Down with the old man.”)

The “old man” is none other than national leader Nursultan Nazarbayev, 81, who even as he stepped down from the presidency after 29 years in power, in 2019, for all practical purposes remains the Kazakh gray eminence as head of the Security Council and the arbiter of domestic and foreign policy.

The prospect of yet another color revolution inevitably comes to mind: perhaps Turquoise-Yellow – reflecting the colors of the Kazakh national flag. Especially because right on cue, sharp observers found out that the usual suspects – the American embassy – was already “warning” about mass protests as early as in December 16, 2021.

Maidan in Almaty? Oh yeah. But it’s complicated.

Almaty in chaos

For the outside world, it’s hard to understand why a major energy exporting power such as Kazakhstan needs to increase gas prices for its own population.

…click on the above link to read the rest of the article…

As coronavirus surges in Hong Kong, mysterious pneumonia hits Kazakhstan – is this a new pandemic?

As coronavirus surges in Hong Kong, mysterious pneumonia hits Kazakhstan – is this a new pandemic?

Image: As coronavirus surges in Hong Kong, mysterious pneumonia hits Kazakhstan – is this a new pandemic?

(Natural News) Even as one of Asia’s major financial hubs braces for a resurgence of Wuhan coronavirus (COVID-19) cases, a potential new threat looms as a deadly new pneumonia has broken out in the center of the continent.

In Hong Kong, authorities have closed schools and tightened social distancing requirements after a new surge of coronavirus cases struck the territory. According to education secretary Kevin Yeung, the decision was taken due to “the exponential growth of confirmed COVID-19 local cases over the past two days.”

While Hong Kong is grappling with its new surge, Chinese officials have also warned that a new, “unknown pneumonia,” has broken out in Kazakhstan – one that apparently has a higher death rate than COVID-19).

Hong Kong experiences its largest outbreak yet

Hong Kong’s latest outbreak of 147 new COVID-19 cases is small compared to outbreaks in the U.S. or Europe. For a territory that has largely kept its infection rate low, however, it represents one of the largest spikes since the pandemic began. (Related: Air travelers hiding coronavirus infections to get into Hong Kong highlight reopening risks.)

In response, Hong Kong’s Education Bureau has ordered the closure of secondary and primary schools as well as kindergartens, starting on Monday. Meanwhile, the Food and Health Bureau announced new social distancing measures for bars and restaurants. The new measures included limiting customers per table to eight and four, respectively.

“As society needs to resume some economic and social activities to a limited extent, it is inevitable that new local cases will appear,” Sophia Chan, secretary for food and health, said.

…click on the above link to read the rest of the article…

“I Know Of No One Who Predicted This”: Russian Oil Production Hits Record As Saudi Gambit Fails

“I Know Of No One Who Predicted This”: Russian Oil Production Hits Record As Saudi Gambit Fails

Russia also took the top spot in May, marking the first time in history that Moscow beat out Riyadh when it comes to crude exports to Beijing. “Moscow is wrestling with crippling Western economic sanctions and building closer ties with Beijing is key to mitigating the pain,” we said in October, on the way to explaining that closer ties between Russia and China as it relates to energy are part and parcel of a burgeoning relationship between the two countries who have voted together on the Security Council on matters of geopolitical significance. Here’s a look at the longer-term trend:

You may also recall that Gazprom Neft (which is the number three oil producer in Russia) began settling all sales to China in yuan starting in January. This, we said, is yet another sign of the petrodollar’s imminent demise.

On Monday, we learn that for the third time in 2015, Russia has once again bested the Saudis for the top spot on China’s crude suppliers list. “Russia overtook Saudi Arabia for the third time this year in November as China’s largest crude oil supplier,” Reuters writes, adding that “China brought in about 949,925 barrels per day (bpd) of Russian crude in November, compared with 886,950 bpd from Saudi Arabia.”

This is an annoyance for Riyadh. China was the world’s second-largest oil consumer in 2014 and closer ties between Moscow and Beijing not only represent a threat in terms of crude revenue, but also in terms of geopolitics as the last thing the Saudis need is for Xi to begin poking around militarily in the Arabian Peninsula on behalf of Moscow and Tehran.

…click on the above link to read the rest of the article…

Azerbaijan Currency Crashes 50% As Crude Contagion Spreads

Azerbaijan Currency Crashes 50% As Crude Contagion Spreads

OPEC blowback continues to ripple around the world. With Russia’s Ruble pushing back towards record lows against the USD, and Kazakhstan’s Tenge having tumbled to record lows, the writing was on the wall for Azerbaijan. As Bloomberg reports, the third-biggest oil producer in the former Soviet Union moved to a free float on Monday and the manat crashed almost 50% instantly to its weakest on record with the second devaluation this year.

First the Russian Ruble…

Then Kazakhstan’s Tenge…

While Azerbaijan’s former Soviet allies Russia and Kazakhstan have moved to floating currency regimes in the past year,the Azeri central bank has questioned whether the country was prepared for a similar shift. Governor Elman Rustamov said there was no need for another devaluation of the manat, according to a televised interview broadcast on Sept. 25.

And now Azerbaijan’s Manat crashes 50%…

As Bloomberg reports, “It looks like Azerbaijan’s authorities are following Kazakhstan’s devaluation path,” said Oleg Kouzmin, a former Russian central bank adviser who works as an economist at Renaissance Capital in Moscow. “After devaluing the currency once, some time ago, they concluded that the first move was not enough to tackle all the challenges of a weaker oil price environment.”

Azerbaijan relies on hydrocarbons for more than 90 percent of its exports and the manat has lost almost half its value against the dollar this year, the worst performance of currencies globally.

The Azeri central bank’s reserves were at $6.2 billion at the end of November, down from more than $15 billion a year earlier.

The Russian ruble’s collapse and a 70 percent plunge in the crude price since June last year have ushered in a new era of volatility for Azerbaijan, which is also beset by challenges ranging from declining oil output to a festering conflict with neighboring Armenia.

…click on the above link to read the rest of the article…

Saudis Poke The Russian Bear, Start Oil War In Eastern Europe

Saudis Poke The Russian Bear, Start Oil War In Eastern Europe

Any weakening of Russian support for Mr. Assad could be one of the first signs that the recent tumult in the oil market is having an impact on global statecraft. Saudi officials have said publicly that the price of oil reflects only global supply and demand, and they have insisted that Saudi Arabia will not let geopolitics drive its economic agenda. But they believe that there could be ancillary diplomatic benefits to the country’s current strategy of allowing oil prices to stay low — including a chance to negotiate an exit for Mr. Assad.

That’s a quote from a New York Times article that ran in February of this year.

At the time, we pointed to the piece as evidence that yet another conspiracy “theory” has become conspiracy “fact” as it effectively served to validate (to the extent The New York Times is validation) the thesis that at the end of the day, this is all about energy.

If the Saudis could use oil prices to force Moscow into ceding support for Bashar al-Assad in Syria, then the West and its regional allies could get on with facilitating his ouster by way of arming and training rebels. Once Assad was gone, a puppet government could be installed (after some farce of an election that would invariably pit two Western-backed candidates against each other) then Riyadh, Doha, and Ankara could work with the new government in Damascus to craft energy deals that would not only be extremely lucrative for all involved, but would also help to break Gazprom’s iron grip on energy supplies to Europe. 

Those are the “ancillary diplomatic benefits” mentioned in The Times piece.

Only it didn’t work out that way.

…click on the above link to read the rest of the article…

Russia Is Going To Pass A Law Formally Dumping The U.S. Dollar

Russia Is Going To Pass A Law Formally Dumping The U.S. Dollar

Vladimir Putin 2015 - Public DomainRussian President Vladimir Putin has introduced legislation that would deal a tremendous blow to the U.S. dollar.  If Putin gets his way, and he almost certainly will, the U.S. dollar will be eliminated from trade between nations that belong to the Commonwealth of Independent States.  In addition to Russia, that list of countries includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan.  Obviously this would not mean “the death of the dollar”, but it would be a very significant step toward the end of the era of the absolute dominance of the U.S. dollar.  Most people don’t realize this, but more U.S. dollars are actually used outside of the United States than are used inside this country.  If the rest of the planet decides to stop accumulating dollars, using them to trade with one another, and loaning them back to us at ultra-low interest rates, we are going to be in for a world of hurt.  Unfortunately for us, it is only a matter of time until that happens.

When I first read the following excerpt from a recent RT article, I was absolutely stunned…

Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the euro from trade between CIS countries.

This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.

“This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin.

For a long time, tensions have been building between the United States and Russia over Syria, Ukraine, the price of oil and a whole host of other issues.  But I didn’t anticipate that things would get to this level quite yet.  It is expected that Putin’s new bill will become law, and this is only one element of a much larger trend that is now developing.

…click on the above link to read the rest of the article…

 

 

Saudi Arabia Faces Another “Very Scary Moment” As Economy, FX Regime Face Crude Reality

Saudi Arabia Faces Another “Very Scary Moment” As Economy, FX Regime Face Crude Reality

“They are working for their market share, not for the price,” Kazakh Prime Minister Karim Massimov told Bloomberg on Saturday, during the same interview in which he predicted that sooner or later, dollar pegs in Saudi Arabia and the UAE would have to be abandoned.

The Saudis are essentially betting that their FX reserves all large enough to allow the Kingdom to ride out the self inflicted pain from persistently low crude prices on the way to bankrupting the US shale space. But the battle for market share comes at a cost, especially when ultra easy monetary policy in the US has served to kept capital markets open to heavily indebted drillers, allowing otherwise insolvent producers to remain in business longer than they otherwise would. It is, as we’ve noted before, afight between the Saudis and the Fed.

In the midst of it all, the petrodollar has died a rather swift if quiet death and as we documented on Saturday, the demise of the system that has served to underwrite decades of dollar dominance has left emerging markets in no position to defend themselves in the face of China’s move to devalue the yuan. With Kazakhstan’s decision to float the tenge, we are beginning to see the post-petrodollar world (or, the “new era” as Karim Massimov calls it) take shape.

Over the weeks, months, and years ahead we’ll begin to understand more about the fallout and nowhere is it likely to be more apparent than in Saudi Arabia where widening fiscal and current account deficits have forced the Saudis to tap the bond market to mitigate the FX drawdown that’s fueling speculation about the viability of the dollar peg. Here’s Bloomberg on why the current situation mirrors a “very scary moment” in Saudi Arabia’s history.

…click on the above link to read the rest of the article…

 

 

 

Why It Really All Comes Down To The Death Of The Petrodollar

Why It Really All Comes Down To The Death Of The Petrodollar

Last week, in the global currency war’s latest escalation, Kazakhstan instituted a free float for the tenge. The currency immediately plunged by some 25%.

The rationale behind the move was clear enough. The plunge in crude prices along with the relative weakness of the Russian ruble had severely strained Kazakhstan, which is central Asia’s largest crude exporter. As a quick look at a chart of the tenge’s effective exchange rate makes clear, the pressure had been mounting for quite a while and when China devalued the yuan earlier this month, the outlook for trade competitiveness worsened.

What might not be as clear (on the surface anyway) is how recent events in developing economy FX markets following the devaluation of the yuan stem from a seismic shift we began discussing late last year – namely, the death of the petrodollar system which has served to underwrite decades of dollar dominance and was, until recently, a fixture of the post-war global economic order. 

In short, the world seems to have underestimated how structurally important collapsing crude prices are to global finance. For years, producers funnelled their dollar proceeds into USD assets providing a perpetual source of liquidity, boosting the financial strength of the reserve currency, leading to even higher asset prices and even more USD-denominated purchases, and so forth, in a virtuous (especially if one held US-denominated assets and printed US currency) loop. That all came to an abrupt, if quiet end last year when a confluence of economic (e.g. shale production) and geopolitical (e.g. squeeze the Russians) factors led the Saudis to, as we put it, Plaxico’d themselves and the US.

The ensuing plunge in crude meant that suddenly, the flow of petrodollars was set to dry up and FX reserves across commodity producing countries were poised to come under increased pressure. For the first time in decades, exported petrodollar capital turned negative.

 

…click on the above link to read the rest of the article…

Currency Wars Continue As Kazakh Currency Crashes 25% After Peg Abandoned

Currency Wars Continue As Kazakh Currency Crashes 25% After Peg Abandoned

On Tuesday we remarked on the increasingly perilous plight of yet another country whose economy has come under increased pressure from plunging oil prices and China’s move to devalue the yuan: Kazakhstan.

Just one day after allowing the tenge to fall sharply in the interbank market and no longer able to take the pain from falling crude prices, the country moved to a free float for the tenge overnight, causing the currency to plunge by a quarter.


 The move is clearly a desperate attempt to preserve export competitiveness in the face of a falling rouble and a devalued yuan. This is the third time the country’s central bank has devalued the currency since 1999 – the last time was in February of 2014.

Although central bank governor Kairat Kelimbetov put on a brave face and very rationally explained that “this is not a devaluation, this is a transition to a freely floating rate when the market itself determines a balanced exchange rate on the basis of demand and offer,” it’s quite clear that the situation for the country’s exporters had become dire and bringing the tenge more inline with moves seen in the currencies of China and Russia (Kazakhstan’s top trading partners) was probably long overdue. Here’s Bloomberg:

The central Asian nation, which counts Russia and China as its top trading partners, said it was switching to a free float, triggering a 23 percent slide in the tenge to a record 257.21 per dollar. Following the shock yuan devaluation last week, a gauge of 20 developing-nation exchange rates capped its longest slump since 2000, and losses continued this week as Vietnam devalued the dong and currencies from Russia to Turkey fell at least 3 percent.

…click on the above link to read the rest of the article…

Kazakhstan Prepares For $40 Oil, Gary Schilling Says “Oil Going To $20” | Zero Hedge

Kazakhstan Prepares For $40 Oil, Gary Schilling Says “Oil Going To $20” | Zero Hedge.

“People should not be worried,” explained Kazakhstan President Nursultan Nazarbayev in a TV address over the weekend“we have a plan in place if oil prices are $40 per barrel.” Kazakhstan, the second largest ex-Soviet oil producer after Russia, explains “there are reserves which could support people, preventing living conditions from worsening.” However, if A. Gary Schilling’s reality check of $20 oil being possible comes to fruition, as he explains, what matters are marginal costs – the expense of retrieving oil once the holes have been drilled and pipelines laid. That number is more like $10 to $20 a barrel in the Persian Gulf… We wonder who has a plan for that?

The Kazakh President says “don’t worry”, as Reuters reports…

Kazakhstan, the second largest ex-Soviet oil producer after Russia, has plans in place should global oil prices fall as low as $40 per barrel, President Nursultan Nazarbayev told local TV channels.

“Kazakh people should not be worried. We have a plan if oil price are $70, $60, $50, $40 per barrel,” he said, according to a transcript published on his website www.akorda.kz.

“There are reserves which could support people, preventing living conditions from worsening,” he said, without providing any details.

Kazakhstan’s National Fund, which collects oil revenues, stood at $76.8 billion at the end of November. Separately, the central bank’s net gold and foreign exchange reserves stood at $27.9 billion.

Nazarbayev has also urged the Kazakh people not to worry about the slide in Russia’s rouble currency, which has lost some 45 percent of its value versus the dollar this year.

But A Gary Schilling is less sure… (via Bloomberg View)

…click on the above link to read the rest of the article…

The Russian Empire – Is Kazakhstan Next?

The Russian Empire – Is Kazakhstan Next?.

Astana’s language and nationality policies have put Kazakhstan at risk of becoming a second Ukraine in 2015, according to Ilya Namovir, a Russian linguist who edits the “Russians in Kazakhstan” portal. The next twelve months are likely to be critical because, as a result of changes in laws and treaties, ethnic Russians in Kazakhstan will find it easier to move back to the Russian Federation and ethnic Kazakhs to move back to Kazakhstan. Moreover, the opening of a presidential election campaign in Kazakhstan will provoke the kinds of political declarations that will trigger concerns about the future among those ethnic Russians and Russian speakers who remain (Stoletie.ru, December 11).

In a commentary for Stoletie.ru, a Russian nationalist site based in Moscow, Namovir argues that “the Russian question” has never disappeared from political discussions in Kazakhstan but that in the wake of the situation in Ukraine, it has “again become more important.” This trend, he notes, shows no sign of changing given both the absence of any positive answer to it from Astana and the lack of either an organized Russian opposition or clear backing from Moscow. Either factor, according to the Russian linguist, might force Kazakhstani officials to change course.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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