Kazakhstan’s national wealth fund announced the sale of a 10% stake in state energy company KazMunaiGas (KMG). The move is being described as an unusual yet necessary action given the downturn in the Kazakh economy engendered by persistently low oil prices. The transaction was seemingly made in order to increase liquidity in the state-run oil company and reduce the company’s debt portfolio which currently stands at $20 billion.

Apart from being adversely affected by the drop in global oil prices, KMG has failed to make progress on its much-heralded Kashagan project, which has been bridled by continuous delays over the last two years. As a result of the sale to the central bank, KMG will obtain funds which it is expected to use in a planned bailout involving Kazakhstan’s sovereign wealth fund to pay down its debt portfolio.

Follow us on Twitter: @SteppeDispatch

News Briefs:

• Russia will incinerate or otherwise destroy all food that has been illegally smuggled into the country over the last year or so. Three Russian agencies have already burned hundreds of tons of dairy products, produce and meat that were smuggled into the country in violation of existing restrictions on foodstuffs originating in the European markets.

• Azerbaijan’s State Agency for Alternative and Renewable Energy confirmed that two state renewable energy projects are ongoing and that feasibility studies are being conducted. The projects, conducted with the KfW development bank and the Asian Development Bank, concern two wind farms and a power plant expected to run on biomass in the Azeri regions of Oguz and Agjabedi.

• Interfax Ukraine reports that five Ukrainian soldiers have been killed this week by rebel forces. The statement, initially released by a spokesman for the Ukrainian military, gave few other details and it is unclear if this report has been confirmed elsewhere.

• The Russian Oblast of Magadan is currently the host of an international investment fair being held in the eponymously named capital city. More than 70 investment projects were presented at the fair by firms interested in the region’s deposits of precious metals, among them vast amounts of gold.

• EurasiaNet posted an interesting piece on the Uzbek fashion industry. The industry, once dominated by infamous first lady Gulnara Karimova, has diversified since her public downfall, and a burgeoning class of Uzbek fashion entrepreneurs has emerged as a result.