Astana Calling
Ministry of Foreign Affairs Republic of Kazakhstan
Central Communications Service for the President of Kazakhstan
A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE No 324 / FRIDAY, OCT 04 2013
President Nazarbayev Completes Official Visit to Monaco Business talks and exchange of state awards
Building the “Green Bridge� Astana hosts international conference on the environment
Belarusian President visits Kazakhstan Spanish Prime Minister in Kazakhstan Strategic Partnership discussed, commercial contracts signed
News from the Government in Brief
Trade and Eurasian Economic Union on the agenda
Also in the News
President Nazarbayev Completes Official Visit to Monaco President Nazarbayev paid an official visit to Monaco on 27-28 September last week following an invitation by Prince Albert II. On the face of it, Kazakhstan and Monaco appear to be very different countries. Territorially, Kazakhstan is the ninth largest country in the world; Monaco is one of the smallest, with a territory of a little over two square kilometers and a population of fewer than 37,000 people. However, business relations have started to develop ever since Prince Albert made an official visit to Kazakhstan in November last year, and laid the foundations for bilateral cooperation. The President and the Prince agreed that much more needs to be done to raise the level of cooperation to its full potential. The creation of the Kazakhstan-Monaco Business Council should help to achieve this. Kazakhstan is interested in attracting to the country companies from Monaco which could participate in innovation projects. These would be companies that have shown themselves to be competitive on a global scale in areas including energy-efficient construction; renewable energy; tourism industry; service infrastructure; pharmaceuticals; and electronics.
Monaco’s emphasis on environmental protection is of great interest to Kazakhstan. This formed an important topic in the talks between President Nazarbayev and Prince Albert. Continuing this topic, they discussed, too, the two countries’ partnership in Kazakhstan’s “Green Bridge” program, and the role which Monaco could play in the preparation and the hosting of EXPO-2017 in Astana with its focus on “Future Energy”. From its side, Kazakhstan can use its membership of the Customs Union of Kazakhstan, Russia and Belarus to offer wide possibilities for businesses from Monaco.
Prince Albert II and President Nazarbayev in Monaco last week
The ceremonial side of President Nazarbayev’s visit to Monaco saw Prince Albert II award the President the Cross of the Order of St Charles, the highest state award of the Principality. This award was instigated by Prince Charles III in 1858. It would usually be granted for service to the state or the Prince, but at the discretion of the reigning prince it can be awarded to foreigners. During the visit, President Nazarbayev presented Prince Albert with the Order of “Dostik” First Class. The Order of “Dostik”, or “Friendship” is the highest state award of Kazakhstan and is given to individuals for the promotion of international and civil consensus in society and the promotion of peace, friendship and cooperation. Despite the size of the country, Monaco still serves as an excellent example for Kazakhstan of how an efficient economy can be run. There is virtually no inflation nor unemployment, and social services work effectively. Monaco’s experience in creating a favorable business climate also holds lessons for Kazakhstan; the country shows strong economic indicators, despite having very limited resources. And Monaco is one of the leading countries in the world for GDP per head of population. President Nazarbayev used his visit to meet the heads of a number of leading companies involved in infrastructure projects, notably from Swissport International and Flughafen Zürich. Swissport International is the world leader in providing services on the ground at airports. They service 192 airports in 38 countries worldwide. Flughafen Zürich not only runs the airports in Zürich, but also ten other airports around the world. President Nazarbayev was interested to learn about these companies’ experiences with Eurasian transport infrastructure, and also to discuss the possibility of cooperation to develop Kazakhstan’s airports and bring them up to international standards. An agreement was reached to sign memoranda creating joint ventures to run a network of airports in Kazakhstan.
“Kazakhstan sees Monaco as a realistic partner in southern Europe, and has everything in place for the expansion of mutual economic and investment relations.” President Nazarbayev
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Prime Minister of Spain Mariano Rajoy with Kazakhstan’s President Nazarbayev (L) and Prime Minister Akhmetov (R)
Spanish Prime Minister in Kazakhstan The Prime Minister of Spain, Mariano Rajoy, has become the latest in a long line of foreign dignitaries to visit Kazakhstan in recent months. The visit followed on from the official visit to Spain last year by President Nazarbayev and a very encouraging trip to Spain in May by Foreign Minister Idrissov. Discussions focused on the further development of the strategic partnership between Kazakhstan and Spain. Once again, there were positive talks on trade as well as discussions about the ways in which Spain can participate in Kazakhstan’s ecological “Green Bridge” initiative. Spain is also an enthusiastic supporter of EXPO-2017 that will take place in Astana. As a sign of the warm relationship between the two countries, the Prime Minister passed on a personal letter from King Juan Carlos I to President Nazarbayev. The King previously met both the President last year and the Foreign Minister this year. But, as President Nazarbayev pointed out, relations between Kazakhstan and Spain have developed to the level of a strategic partnership, covering investment, transportation, industry, renewable energy and culture, among other things. As President Nazarbayev emphasized, “The largest Spanish companies work in Kazakhstan, and there are more than 70 joint enterprises in operation”. Most notable among these large companies are “Talgo”, a manufacturer of high-speed passenger trains which are running on an increasing number of long-distance routes in Kazakhstan, and “Airbus Military”, which builds transport aircraft. Mr Rajoy noted the growth in trade between the two countries: “Spanish exports to Kazakhstan have grown sizeably in the past three years. In 2011 they doubled compared to the previous year; in 2012 they rose by a further 68%; and in just the first half of this year exports reached 209m Euros, which is already greater than the total for the whole of 2012.” The Spanish Prime Minister went on to say that the large business delegation which accompanied him was a clear sign of the improving economic situation in his country, as well as the enthusiasm among the Spanish business community for doing business with Kazakhstan. At the Kazakhstan-Spain business forum which ran parallel with Prime Minister Rajoy’s visit, ten specific contracts were signed, and agreement in principle was reached between Mr Rajoy and Prime Minister Akhmetov, on a number of others. If there is one area in particular where the business relationship between the two countries can be expected to develop, it is the environment and Kazakhstan’s “Green Bridge” initiative. As Mr Rajoy said during talks with Mr Akhmetov, “Kazakhstan is committed to sustainable development, and I am convinced that within the framework of our cooperation the question of the environment will play an increasingly important role.” Mr Rajoy underlined the fact that Spanish companies are encouraged by the prospect of cooperation with Kazakhstan on environmental issues. He said to Mr Akhmetov, “we are ready… to take part in the development of the “green” economy; we want to do this together with you. The countries of Central Asia and Kazakhstan in particular can always count on Spain’s support.” There was also a historical dimension to the visit. President Nazarbayev handed his Spanish visitors copies of material from the State Archive containing details about Spanish citizens interned at the Karaganda labor camp during the Second World War.
“We are aware of the huge potential of the “green” economy in Kazakhstan, we know about the great efforts which your country is making to modernize the economy and the role which renewable energy plays in the new plans of your government.” Mariano Rajoy, Prime Minister of Spain
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Minister of Environmental Protection Nurlan Kapparov signing a cooperation charter on green issues
Building the “Green Bridge” On September 30 this week, Astana saw a major one-day international conference dedicated to creating the “Green Bridge”, Kazakhstan’s plan to create an ecologically-friendly and sustainable economy. The two-day conference received wide international support, and included the participation of the Prime Minister of Spain, Mariano Rajoy, who was on an official visit to Kazakhstan (see above), and the Russian Minister of Natural Resources and the Environment, Sergey Donskoy. The “Green Bridge” initiative, which focuses on developing multilateral partnerships, is ambitious and far-reaching but achievable with the necessary dedication and support. Kazakhstan acknowledges that sustainable growth requires a new level of international cooperation and that it would be very difficult to succeed on its own. Kazakhstan is rich in oil and gas and other natural resources, but it is vital that these are extracted with consideration for the environment, something which is not always the case. Other priorities include investing in eco-systems; development of low-carbon technologies and making the necessary changes which affect climate change; sustainable, eco-friendly construction, including promoting “green” businesses and “green” technology; the promotion of sustainable lifestyles and the subsequent improvement in quality of life; the encouragement of ecologically-responsible agriculture; the use of energy-saving technology; recycling of waste; proper management of water resources; and encouraging similar developments throughout the Central Asian region. Of these, two burning issues for Kazakhstan are the sustainable use of water resources – an urgent topic throughout Central Asia – and developing ways of using energy more efficiently. It is no coincidence that the main topic of EXPO-2017 in Astana will be “Future Energy”. Notably, the Spanish Prime Minister, Mariano Rajoy, congratulated Kazakhstan on its plans for EXPO-2017. Prime Minister Rajoy stated that: “Spain has supported EXPO-2017 from the start… it is one further step from Kazakhstan in defense of the “green” economy.” Opening the conference, the Prime Minister, Serik Akhmetov, noted that Kazakhstan’s economy is growing in a stable manner, but this has been largely thanks to the oil and gas sectors, heavy industry, mining and metals. It is recognized that all these sectors have caused past damage to the environment. The country can now take stock and continue the management of these sectors in a reliable and ecologically-responsible way. The “Green Bridge” program is designed as an inclusive partnership program to aid the development of a truly “green” economy, not just in Kazakhstan but throughout the region. It is designed to bring together governments, international organizations, nongovernmental organizations and business groups from Asia, Europe and the Pacific Region. Kazakhstan has taken the initiative, but the program is most definitely about international cooperation. As Mr Akhmetov said, “We hope that this forum will become a tradition. It will help us all to assess any problems which arise and will strengthen our partnership in this crucial work.” The Prime Minister went on to say that a multilateral solution to environmental issues was essential, “because in the modern day just about any problem has a global significance, and cannot be solved without reference to the unified eco-system.” Agreeing with this point, the Spanish Prime Minister added that his country was prepared to work with Kazakhstan on the “green economy” because he can see that Kazakhstan is serious in its efforts to create a sustainable economy and because Spain has the know-how to help the program succeed. “The protection of the environment is a sector where Spanish companies have already made great progress. They started to use leading technology first of all in our country, and then abroad, including in Kazakhstan. I’m very pleased with our cooperation here, especially in the area of recycling,” Mr Rajoy added.
“The “Green Bridge” partnership program is open to everyone who is not indifferent to our vision of a sustainable future. And we are open to everyone who offers us new technology or is prepared to share with us their experience or concrete advice.” Serik Akhmetov, Prime Minister of Kazakhstan
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Belarusian President visits Kazakhstan The President of Belarus, Alexander Lukashenko, paid an official visit to Kazakhstan on October 3-4. The main purpose of the visit was to hold talks with President Nazarbayev on continuing bilateral cooperation in trade and industrial innovation, as well as the development of agricultural ties. Together with Russia, the two countries have formed the Eurasian Customs Union and Single Economic Space. These will be combined as of January 1, 2015 into the Eurasian Economic Union. President Lukashenko’s visit is the latest in a series of high-level contacts between the two countries. In May 2012, President Nazarbayev went to Belarus. The visit helped to strengthen the trust and goodwill between the two countries, underlining the fact that Belarus regards Kazakhstan as a key and reliable partner in Central Asia, and a steady base for the export of its goods to China and South-East Asia. For his part, President Nazarbayev emphasized that Kazakhstan continues to see Belarus as an extra “window” on Europe. Since then, the Prime Ministers of each country have made reciprocal visits. In November 2012, the Prime Minister of Belarus, Mikhail Myasnikovich, travelled to Kazakhstan, the principal aim being to continue the dialogue begun by the Presidents on economic agreements. He also discussed joint participation in logistical projects, including the inclusion of Belarus in the Western Europe-Western China transit corridor, which is one of the major infrastructure projects in Kazakhstan. In April of this year, the dialogue on all of these issues was taken still further, when Prime Minister Akhmetov, went to Minsk. He discussed, in particular, the expansion of Belarusian service centers to aid businesses in both countries. A major factor in the bilateral relationship is the Inter-Governmental KazakhstanBelarusian Commission on Trade Cooperation, which has been functioning since 1996. Regular sessions of the Commission are held in each country.
President of Belarus Alexander Lukashenko
The trade relationship between Kazakhstan and Belarus has shown strong recent growth. According to the Kazakhstan Statistics Agency, bilateral trade in 2012 increased by nearly 10% on 2011, and stood at nearly USD 770m. The Belarusian Statistics Agency put the figure higher, at USD 925m; however, the Agency also reported a year-on-year drop of 13% in imports to Belarus from Kazakhstan. In the first seven months of 2013, trade stood at USD 385m, which was a fall of 6.6% on 2012. Major exports from Kazakhstan to Belarus are wheat, conveyer belts, unrefined aluminum and non-alloy steel. Imports from Belarus to Kazakhstan include rubber goods, notably tires; agricultural products (especially milk products and sugar); tractors and other vehicles.
“Cooperation in trade lies at the basis of relations between Kazakhstan and Belarus. This trade is carried out in line with the Program of Economic Cooperation between the Republic of Kazakhstan and the Republic of Belarus, 2009-2016.” Ministry of Foreign Affairs of Kazakhstan
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News from the Government in Brief Foreign Minister completes tour of South America Foreign Minister Idrissov, completed a tour of three South American states this week visiting Argentina, Brazil and Chile. His tour began in the Chilean capital, Santiago, where he participated in a number of bilateral meetings before moving on to Argentina and then Brazil where he spent time in the country’s capital Brasilia, and the largest city, São Paulo. The focal point of Minister Idrissov’s visit to Chile was a meeting with the Acting Minister of Foreign Affairs, Alfonso Navarro. Minister Idrissov noted the symbolism of the visit, the first by a Kazakhstani Foreign Minister to the country since independence, and gave further details about the country’s long-term plan for strategic development, “Kazakhstan-2050”. Minister Idrissov described the government’s intention as part of this plan to widen the country’s international contacts and pay more attention to developing relations with the countries of Latin America and Africa. As part of the visit an agreement on political consultations was signed between the two countries aimed at formalizing the dialogue between them. Despite the official nature of the visit Minister Idrissov also conducted an informal discussion with the Chilean President, Sebastián Piñera. During the conversation, President Piñera extended an invitation to President Nazarbayev to visit Chile. In Argentina, Mr Idrissov met his Argentine counterpart, Héctor Timerman and noted the similarities in their plans for development, and on issues of an international nature. Minister Timerman is planning a visit to Astana in 2014. Mr Idrissov also met with the country’s leading business people and discussed cooperation in the oil and gas industry with the management of Argentina’s national energy company YPF. In Brazil, Mr Idrissov arrived in the capital Brasilia for a series of meetings with senior Brazilian politicians and business figures. He also officially opened the building of the Embassy of Kazakhstan in Brazil and signed a number of memoranda of understanding including one related to sport. (ortcom.kz).
Fight against Corruption and Crime continues President Nazarbayev this week met the chairman of the state agency responsible for combating against corruption and economic crime, Rashid Tusupbekov. Mr Tusupbekov reported on the results of this year’s activities by the police to counter corruption and the black economy. These results included increased detection of acts of corruption. In fact, 7% more acts of corruption were uncovered in 2013 than in the previous year. Chairman Tusupbekov further reported to the President that 8059 crimes were recorded in the first nine months of 2013 – this figure included 248 cases of bribery and resulted in the prosecution of more than 100 officials at both national and regional levels. As part of his report, Mr Tusupbekov informed President Nazarbayev about the detection of 4619 cases of economic crime and also reported on measures taken by the police to reduce the administrative burdens on business as well as crime prevention. Mr Tusupbekov reported on the operations of the “Situation Center” which allows citizens anonymously to identify officials and businesses suspected of involvement in corrupt and illegal practices. (akorda.kz)
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Traffic violations: a cause for concern The Deputy Minister of Internal Affairs of Kazakhstan, Erlan Turgumbayev, gave a briefing on 30 September this week about the situation on the roads in the country. He admitted that there is cause for concern and that the government is being forced to take serious measures to deal with the number of traffic violations, including accidents, which are occurring. In the last ten years, 32,000 people have died on the roads in Kazakhstan and a further 168,000 have suffered serious injury. Worryingly, the situation appears to be getting worse, not better. In the first eight months of this year, 13,000 traffic incidents have been recorded, an increase of 57% on the same period in 2012. These incidents have resulted in nearly 2,000 deaths and over 17,000 injuries, increases of 4% and 65% on last year. Mr Turgumbayev said that the government was taking radical steps to deal with the problems on the roads, bringing in amendments to the law. Previously drivers crossing the white line in the middle of the road received a fine, now, offenders who are caught doing this three times may lose their driving licence for six months. The government is cracking down on drink driving, too, after 32,000 arrests this year of drivers found to be over the legal alcohol limit. Offenders now risk a prison sentence of six months. (government.kz)
Higher qualifications for “A” team civil servants The first seminar took place this week for senior civil servants to improve their administrative skills. This is part of the recently-launched Code of Business Ethics (see Astana Calling issue 322). The three-day seminar was divided into three modules: “Leadership”, “Project Management” and “Audit of State Organs”. The aim was to develop the knowledge and skills of administrative civil servants at the level of executive secretaries and heads of departments (the so-called “A” team) in these three areas. Leading experts from abroad – including from Germany, France and the United Kingdom – conducted the seminars. Each day was devoted to an intensive study of one of the three areas identified, starting with internal audit; project management was examined on day two; and on the final day the civil servants learned about developing effective management techniques. (ortcom.kz)
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Also in The News… • First International Investment Forum held in Aktobe “AKTOBE INVEST-2013”, the first ever International Investment Forum to be held in the northern city of Aktobe, took place on October 1-2. The main topic of discussion focused on existing investment projects worth more than USD 2bn, notably an electric steel-refining plant and gas-turbine electricity generating station; a plant for container glass; a nickel plant; and a wind-park. The Forum was also designed to encourage potential new investors. Alongside the Forum an annual industry exhibition was held entitled, “Europe-Asia: Cooperation without Borders”, which featured more than 150 enterprises, from Belarus, Kazakhstan, Russia, Ukraine and, for the first time, Poland. (Strategy2050.kz) • Roundtable to discuss the Fight against Terrorism and Extremism On October 1, this week in Almaty, a Roundtable took place devoted to addressing issues related to the fight against terrorism and extremism. The Roundtable, organized by the Prosecutor’s office in Almaty and the Center for the Study of Terrorism and Extremism in Kazakhstan, focused on counteracting religious extremism and terrorism in society through inter-confessional and inter-ethnic initiatives. (kazinform) • Planning meeting held for Student Winter Games 2017 On September 27, a regular meeting was held of the Organizing Committee of the 2017 Student Winter Games, which will be held in Almaty. For the first time the logo, mascot and slogan for the Games were unveiled, and a report was presented on the progress of the construction of the sporting arenas. Almaty hopes that the holding of the Games and the building of all the necessary infrastructure, will give a major boost to the city’s bid to host the Winter Olympic Games in 2022. (ortcom.kz) • Zhandos Assanov named as Secretary General of TÜRKPA Former head of the Kazakhstan Senate’s Administration, Zhandos Assanov, has been appointed as Secretary General of the Parliamentary Assembly of Turkic-Speaking Countries (TÜRKPA). Assanov started his new role on October 1. (kazinform) • Wind-Power a realistic alternative in Atyrau Region The Head of the Union of Entrepreneurs in Atyrau Region, Larissa Zhumagaliyeva, said on September 30 this week that the Region was ideally suited to develop wind-power as an alternative energy source. Research, which was carried out back in 2008, showed that the strength of winds in the Region mean that this could become a reality. A memorandum has now been signed with a German company, and there is interest in the project also from Turkish investors. Such a project would fit well with the national government’s plans to build the “green economy”. (ortcom.kz) • Kazakhstan to mark 300th anniversary of Abylay Khan This year, on October 5, Kazakhstan will mark the 300th anniversary of the famous state figure and military leader, Abylay Khan. During his lifetime, Khan united the Kazakh tribes and attempted to centralize state power in Kazakhstan. Celebrations are taking place in his home territory of Kokshetau. In Kokshetau, an international academic conference is being held, on “Abylay Khan and his Historical Times”. Cultural events are also taking place. (kazinform.kz) • Barys set new KHL Ice Hockey Record Astana-based ice hockey club Barys has set a new scoring record in the prestigious Continental Hockey League (KHL). After ten games Barys has now scored 51 times beating the record previously set by Russian side Salavat Yulaev from Ufa who scored 46 times in the first ten games of the 2010/11 season. (kazinform)
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