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 329 / FRIDAY, NOV 8 2013
Economy Ministry Takes Note of President’s Criticism Minister outlines plan to address shortcomings
Prime Minister Makes Official Visit to Kyrgyzstan
Oil and Gas Minister Interviewed
High level talks and meeting of Inter-Governmental Council
Uzakbay Karabalin speaks to Oil & Gas of Kazakhstan magazine
Foreign Minister Outlines Policy Priorities Major speech at Academy of Public Administration
Ambassador Olzhas Suleimenov Visits Washington and New York A literary icon and diplomat in one
News from the Government in Brief
Also in the News
Things to Watch
Minister of Economy and Budget Planning, Yerbolat Dossayev
Economy Ministry Takes Note of President’s Criticism President Nazarbayev’s recent criticism of the government (see Astana Calling 326, President holds government to task) has been taken on board by a number of government departments in Kazakhstan. The Governor of Karaganda Region gave a briefing last week on measures which are being taken to deal with problems which were identified in his region. Now the Minister of Economy and Budget Planning, Yerbolat Dossayev, has outlined his Ministry’s plan to deal with what he described as, “justified criticism on a number of issues”, following the President’s recent criticism of his Ministry. Mr Dossayev was speaking at a briefing at the Central Communications Service held on November 4. The Minister said that the first point of the President’s criticism was that there is insufficient delineation of responsibilities between the Economy Ministry and the Ministry of Regional Development. This may be due to the fact that the latter was formed by Presidential Decree only at the start of this year. Mr Dossayev acknowledged that this has been the case and said that representatives of the two ministries have now sat down together to draw up clear lines of responsibility. These two ministries also need to work with a third ministry, the Ministry of Industry and New Technologies, on the question of where responsibility lies for the coordination of the industrial and innovative development of the country. Between them, the three ministries need to work within the Planning Directive for the Territorial Development of the Country to 2020. This strategic document sets out the distribution of manufacturing, transport, communication, social and other elements of infrastructure throughout the country, indicating also those areas in greater need of settlement of people. Beyond this, the Ministry of Regional Development has also laid out the main points of the General Scheme for the Organization of the Territory of the Republic of Kazakhstan up to 2030, which is soon to be reviewed by the government. Mr Dossayev agreed with the President’s assessment that there is an urgent need for an audit of the financing of a number of state and industry programs. This is due to take place in November, affecting five state and 41 industry programs. President Nazarbayev has long spoken out against the shadow economy, notably issues related to economic crime and corruption. The Economy Ministry, working alongside the relevant state organs, is to activate the Comprehensive Plan to Counteract the Shadow Economy in Kazakhstan, 2013-2015. The Plan covers 122 points in nine different areas. But in the first nine months of this year only 44 points have been put into place. Mr Dossayev said that from now on the Ministry would be concentrating on three main areas: raising the effectiveness of the handling of state finances; boosting foreign economic activity, including improving cooperation between the relevant bodies to prevent violations over the export or import of goods and services; and improving the monitoring of the legal economy to assess the level of the shadow economy. A further point which the Economy Ministry must address without delay is the question of budgetary policy. On October 31, the government approved cuts of almost KZT 166bn in this year’s budget. This should bring down the budget deficit by KZT 80bn, and re-direct KZT 100bn for major investment projects. This will see KZT 30bn go towards the construction of the railway line from Zhezkazgan to Beyneu; a KZT 30bn increase in the share capital of the “Bayterek” company; KZT 20bn will be set aside for preparations for the EXPO-2017 exhibition; and a further KZT 20bn will be allocated for construction of housing.
“I would like to confirm that the Ministry will do everything within its power to carry out the tasks which the Head of State has set us, and will take all necessary measures to ensure macro-economic stability and economic growth in the country.” Yerbolat Dossayev, Minister of Economy and Budget Planning
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Prime Minister Akhmetov meeting with his Kyrgyz counterpart, Zhantoro Satybaldiyev, on November 1 in Bishkek
Prime Minister Makes Official Visit to Kyrgyzstan Prime Minister Serik Akhmetov travelled to neighboring Kyrgyzstan on November 1. He held talks with President Almazbek Atambayev and his opposite number, the Prime Minister of Kyrgyzstan, Zhantoro Satybaldiyev. He also took part in the Fourth Session of the Kazakhstan-Kyrgyzstan Inter-Governmental Council. Upon his arrival, Mr Akhmetov was accorded due ceremony before going into talks with President Atambayev. Both men spoke positively about relations between the two countries, paving the way for the Inter-Governmental Council meeting to discuss the practical details of furthering the bilateral relationship. The leading items on the agenda were questions of cooperation in the water and energy sectors; finance and investment; agriculture; and transport. The water issue is one that has become of vital importance to all of the countries of Central Asia, and all agree that it is crucial that they reach agreements over water taken for industry and agriculture from rivers which cross national borders. Relations between Kazakhstan and Kyrgyzstan moved at a greater tempo in 2012. In May 2012, President Atambayev made his first official visit to Kazakhstan, which was followed in August by President Nazarbayev’s first state visit to Kyrgyzstan. As Kazakhstan is the much larger country, with abundant natural resources, it follows that in financial terms investment from Kazakhstan into Kyrgyzstan has been the greater. In all, since the two countries achieved their independence from the USSR at the end of 1991, Kazakhstan has invested more than USD 1.5bn into Kyrgyzstan. Some 60% of this investment has gone into the banking sector. Of the rest, significant amounts have been invested in Kyrgyzstan’s agriculture, water and energy sectors as well as in mining. Smaller amounts have gone into tourism, construction and trade infrastructure. There are around ten major enterprises and about 100 small and medium companies operating in Kyrgyzstan with the aid of capital from Kazakhstan. There are also some 90 Kyrgyz enterprises operating in Kazakhstan. Trade between the two Central Asian neighbors is important, and trade turnover in 2012 exceeded the USD 1bn mark for the first time. Kazakhstan’s exports – mainly wheat, flour, oil products, gas, coal and chemical products – came to almost USD 700m. Kazakhstan imported from Kyrgyzstan goods worth over USD 400m. On the whole, these imports included electricity, foodstuffs (especially fruit and vegetables, meat and dairy products), cattle and certain chemical products. At the Inter-Governmental meeting, Prime Minister Satybaldiyev outlined what he regarded as the priority areas for cooperation between the two countries. “We are interested in receiving natural gas from Kazakhstan, oil and oil products,” Mr Satybaldiyev explained. “Kyrgyzstan is interested in developing cooperation with Kazakhstan in the effective use of water resources, the export of electricity, and ensuring joint operation of the energy system.” For his part, Mr Akhmetov spoke favorably about the importance of the Inter-Governmental Council, saying that the Council gives, “an added dynamic to the bilateral relationship”. The meeting concluded with the signing of a Memorandum of Understanding on cooperation between the Finance Ministries of the two countries, and an agreement to hold the Fifth Session in Astana in 2014.
“The results of my official visit have shown the possibilities for our bilateral cooperation, which gives an excellent boost to our economies. Kazakhstan is one of the main investors into Kyrgyzstan, which was shown by our reaching a trade turnover of more than USD 1bn in 2012. I’m sure that 2013 will be no less successful.” Serik Akhmetov, Prime Minister of Kazakhstan ASTANA CALLING / ISSUE 329 / 3
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Foreign Minister Idrissov outlining Kazakhstan’s foreign policy priorities speaking on Wednesday at the Academy of Public Administration in Astana
Foreign Minister Outlines Policy Priorities Kazakhstan’s Foreign Minister, Erlan Idrissov, gave an important speech at the Academy of Public Administration in Astana on November 6, in which he presented a detailed overview of the country’s foreign policy priorities to the staff and post-graduate students of the Academy. In his address, Mr Idrissov covered every aspect of Kazakhstan’s foreign policy across the globe, relating it to the overall aim of Strategy “Kazakhstan-2050”, to bring Kazakhstan into the top 30 most developed countries of the world by the middle of the century. Kazakhstan sets great store by the role of the United Nations (UN) as a guarantor of international security. Because of this, Kazakhstan has put forward its candidature to serve as one of the non-permanent members of the UN Security Council for 2017-2018. Kazakhstan will be competing with Thailand for the opportunity to serve on the Security Council, with the vote to take place in the autumn of 2016. Kazakhstan is conducting an active election campaign around the world in order to receive the required number of votes from UN members. Kazakhstan has already become known at the UN as a leading proponent of nuclear disarmament and the non-proliferation of nuclear weapons. The UN has adopted Kazakhstan’s stance against nuclear testing by declaring August 29 as the International Day of Action Against Nuclear Testing. And the international “ATOM” project put forward by President Nursultan Nazarbayev to oppose all nuclear testing is gaining more and more support. The Foreign Minister turned to another issue of global significance – the protection of the planet’s environment and its ecology. Kazakhstan’s “Green Bridge” initiative, aimed at bringing together both governments and the private sector across the countries of Europe, Asia and the Pacific, is also seen as a move which will not only protect the environment but will also benefit the peoples of these regions. The EXPO-2017 event in Astana, with its theme of “Future Energy” will not only give this policy a major boost, but will also help Kazakhstan towards its goal of being among the top 30 developed countries of the world. Mr Idrissov spoke about the various international organizations in which Kazakhstan plays an active part, including the Collective Security Treaty Organization; the Shanghai Cooperation Organization; the Organization of Islamic Cooperation; and the Organization for Security and Cooperation in Europe, which Kazakhstan chaired in 2010. Of great importance, too, are the talks on creating the Eurasian Economic Union on the basis of the Customs Union and the Single Economic Space, which should come into existence in January 2015. The Foreign Minister made a virtual tour of the world, as he discussed Kazakhstan’s relations with each region of the globe and certain countries in particular. He began in Central Asia where, as well as discussing individual states, he focused on the issue of water security and the importance to the region of stability in Afghanistan in the years ahead. He went on to discuss what he described as “priority relationships” – meaning those with Russia, China, the US, Europe and Asia. He also talked about individual countries in South America. Mr Idrissov made an appeal for more countries to enter into a visa-free agreement with Kazakhstan. This has already been achieved with 23 countries in Europe for holders of diplomatic passports. The Foreign Minister expressed his and Kazakhstan’s wish that this be extended to ordinary citizens too.
“Underpinning Kazakhstan’s foreign policy, as always, are the country’s national interests. It is from this point of view that we assess the progress of the integration processes in the Eurasian space and our role within them.” Erlan Idrissov, Foreign Minister of Kazakhstan
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Minister of Oil and Gas, Uzukbay Karabalin
Oil and Gas Minister Interviewed Kazakhstan’s Oil and Gas Minister, Uzakbay Karabalin, has given his first full-length interview since he took up office at the start of July. Mr Karabalin spoke to the magazine, Oil & Gas of Kazakhstan about the most significant challenges facing Kazakhstan in the oil and gas sector. Mr Karabalin began by talking about the three largest projects currently in operation in Kazakhstan, operations which are large not only from Kazakhstan’s perspective but from a global energy perspective: Tengiz, Karachaganak and Kashagan. The first of these, at Tengiz, is run by the Tengizchevroil (TCO) joint venture, which was set up in 1993 by Kazakhstan together with the Chevron Corporation to conduct oil and gas exploration in the Atyrau Region. TCO is owned 50% by Chevron; 25% by ExxonMobil; 20% by KazMunaiGaz; and 5% by LukArco, a subsidiary of the Russian oil company, LUKOIL. TCO is currently developing a project at Tengiz which will raise the output of oil from the current 24m tonnes a year to 38m tonnes by 2019. This will mean that a further 20,000 jobs will be created during the construction phase, with 500 guaranteed permanent jobs once the additional production is brought on stream. What this also means for the national economy is increased orders for metalwork – 90,000 tons of finished metal. This is very good news for metal plants in the Mangistau Region which are currently working below capacity. Mr Karabalin was asked what other economic benefits TCO has brought to Kazakhstan. He pointed out that since the company was founded 20 years ago it has spent over USD 13bn on goods and services in Kazakhstan. The Minister also spoke about talks which are underway about providing gas from the Tengiz field to the chemical complex in Atyrau. Once this is completed it will be capable of producing 550,000 tonnes of propane a year; 380,000 tonnes of butane; and practically all of the ethanol the country needs. The second major project which Mr Karabalin talked about was Karachaganak, which has reached its second stage. The project is now producing 11m tonnes of liquid hydrocarbons per year and 14-15bn cubic meters of gas. The project represents an investment of over USD 17bn, and it has already brought close to USD 18bn into the national budget. The third project is Kashagan, which started producing oil on September 11 this year. Kashagan is considered to be one of the world’s leading oil-fields, and figures should reveal that by October this year it has already been producing 75,000 barrels a day. This is expected to rise to 370,000 barrels a day by 2016. A more worrying aspect of the oil business, which Mr Karabalin was asked about, was to do with the standard of gasoline which the country produces for automobiles. The Customs Union introduced a ban on low-grade gasoline which was supposed to come into force across the Union on January 1, 2014. But Kazakhstan’s refineries have not yet been modernized to cope with this. The Minister assured his audience that an agreement has been reached with the Russian and Belarusian authorities to postpone the deadline for Kazakhstan by two years until the start of 2016.
“The first oil was produced at Kashagan on September 11. We consider this to be an event of global significance because it marks the beginning of operations at one of the largest oil deposits in the world. The volume of oil being produced will be increased in a controlled fashion, and we expect to produce 75,000 barrels a day by October this year.” Uzakbay Karabalin, Oil and Gas Minister
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Ambassador Olzhas Suleimenov Visits Washington and New York The Embassy of Kazakhstan in Washington, DC, hosted Ambassador Olzhas Suleimenov for a visit to the United States from November 5-7. During his tour, the Ambassador had the opportunity to give a lecture at the Library of Congress, a keynote address at George Washington University and a book-party address at the National Arts Club in New York.
Olzhas Suleimenov
Ambassador Suleimenov serves as Kazakhstan’s Ambassador to UNESCO in Paris. A poet and author, the Ambassador is regarded as one of Kazakhstan’s and Central Asia’s most influential intellectuals.
In 1989, Mr Suleimenov founded the Nevada-Semipalatinsk Movement, which became one of the leading advocates for closing all nuclear-testing facilities in Kazakhstan. He also co-founded the Issyk Kul Forum, which has been recognized as an important organization of intellectuals from the former Soviet Union. From 1995 to 2001, he was Kazakhstan’s Ambassador to Italy. In December 2010, Ambassador Suleimenov published a book entitled “Green Desert: The Life and Poetry of Olzhas Suleimenov,” which is the first comprehensive translation of his works into the English language. It provides a concise overview of the Ambassador’s rich literary heritage and serves as an introduction to the contemporary literature of Kazakhstan and Eurasia. In short, Ambassador Suleimenov is a national treasure whose tour helped introduce him to the broader audience of the United States. He was recently featured in “22 Ideas to Fix the World: Conversations with the World’s Foremost Thinkers.” For this project, he was interviewed and provided his insights on the past and recent geopolitical events and possible solutions and predictions for the future. While in the United States, Ambassador Suleimenov gave lectures on his poetry to several audiences, exposing US audiences to the literature and poetic styles of Central Asia, a style of literature that is not frequently heard or read in North America. During his visit to the Library of Congress, Ambassador Suleimenov presented a copy of “Green Desert: The Life and Poetry of Olzhas Suleimenov” for its renowned collection. He praised the Library of Congress for its dedication to collecting books from all over the world, in every language, and encouraged its leaders to continue to expand its collection of books in the Kazakh language. During his remarks at the Library of Congress, Ambassador Suleimenov recited one of his favorite poems about his mother. He spoke in Russian and the many Russian speakers in the audience responded enthusiastically to his presentation. He also regaled the audience with a story about writing a poem about Yuri Gagarin, a Soviet pilot and cosmonaut, during his first visit to the United States in the 1960s. The Ambassador also spoke about the importance of nuclear non-proliferation. As the leader of the first popular movement of this kind in Kazakhstan, he is a strong advocate for discarding nuclear weapons around the world. He supported Kazakhstan’s decision to give up its nuclear arsenal and strongly believes that countries around the world should follow Kazakhstan’s example. Ambassador Suleimenov demonstrates the rare combination of being a diplomat and literary icon.
“When I first came to the United States in the 1960s, I was probably the first Kazakh ever to visit the United States. It is encouraging to see that today there are many Kazakhs living in the United States sharing our culture.” Ambassador Olzhas Suleimenov
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News from the Government in Brief Kazakhstan-Poland forum sees progress in first year The Kazakhstan-Polish Council for Cooperation and Development was formed only in December 2012, but both sides already see it as an important platform for developing bilateral relations. This was confirmed by the third session of the council, which was held in Warsaw this week. The Council supported the idea of setting up bilateral pilot projects in both the industrial and the agrarian sectors, and of using them as examples of possible cooperation by Kazakhstan with other countries of the European Union. Poland already has over 130 businesses operating in Kazakhstan, and the number is growing. Kazakhstan’s Deputy Foreign Minister, Rapil Zhoshybayev, who was in Warsaw for the meeting of the Kazakhstan-Poland Inter-Governmental Commission on Economic Cooperation, said, “The scale and the wide profile of these projects is an indicator of the interest in doing business with Kazakhstan. They send a clear signal to Polish business circles about the favorable investment climate and the excellent prospects for doing business in Kazakhstan.” (inform.kz)
New Head of Religious Affairs Agency appointed Prime Minister Serik Akhmetov, this week introduced to the staff of the Religious Affairs Agency the new Chairman, Marat Azilkhanov. Mr Akhmetov used the occasion to emphasize to the staff the importance of their work. “You have the important tasks of ensuring inter-confessional harmony and the rights of citizens to freedom of belief, and cooperation with all religious organizations. I wish you every success in this work ,” concluded the Prime Minister. Mr Akhmetov also praised Mr Azilkhanov’s predecessor, Kairat Lama Sharif, who had established the Agency. Mr Lama Sharif, who is a specialist on the Middle East, has been appointed Kazakhstan’s Ambassador to the United Arab Emirates (UAE). He previously served as Consul General in the UAE and as Ambassador in Saudi Arabia and Kuwait. (primeminster.kz)
Deputy PM gives wide-ranging briefing The Minister for Industry and New Technologies and Deputy Prime Minister, Asset Issekeshev, gave a wide-ranging briefing on November 6 at the Central Communications Service. Mr Issekeshev announced that a new center for geological exploration is to be created in conjunction with the Nazarbayev University and the Colorado School of Mines in the US. The plan is to create a world-class geological center, both for research and education purposes and for practical analysis. Construction should begin in the third quarter of 2014. Next, the Minister turned his attention to industrialization issues. He said that in the Industrialization Map, 75% of investment was coming from private investors. This mainly involves large-scale projects, such as the Western Europe-Western China highway. Overall, Mr Issekeshev added, the projects will account for KZT 1.5trln, and establish 13,000 new permanent jobs. And Mr Issekeshev had more good news on the job front, announcing that because the government is making a serious effort to improve tourism, there will be 100,000 new jobs created in this sector by 2020. National tourism clusters are being created around Astana, Almaty, Almaty Region, South Kazakhstan and East Kazakhstan, with beach tourism being developed in Kenderley. (primeminster.kz)
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Also in The News… • New Ministers appointed Three new Ministers have been appointed as a result of a government shake-up. Bakhyt Sultanov moves from the Presidential Administration to take over as Minister of Finance and Deputy Prime Minister; Bolat Zhamishev moves from the post of Minister of Finance to become Minister of Regional Development; and Bakytzhan Sagintayev moves from the post of Minister of Regional Development and First Deputy Prime Minister to be First Deputy Prime Minister. (akorda.kz) • New Ambassador to Norway On October 31, Askar Tazhiyev, Extraordinary and Plenipotentiary Ambassador of the Republic of Kazakhstan to the Kingdom of Norway, presented his credentials to King Harald V of Norway in Oslo. The King welcomed the strengthening of the Embassy of Kazakhstan in Norway. Ambassador Tazhiyev briefly informed the King on the socio-economic development of Kazakhstan. He also noted the opportunities for deeper bilateral cooperation, including science and technology, education and other spheres. (mfa.gov.kz) • Kazakhstan delegation in Strasbourg A delegation from Kazakhstan led by Alexei Volkov, the Deputy Foreign Minister, held talks in Strasbourg on October 29 with Zoltán Taubner, Head of the Directorate for External Relations of the Council of Europe in Strasbourg. The delegation also included representatives of Kazakhstan’s Supreme Court and the Office of the Prosecutor General. During the visit, Mr Volkov also met Thorbjørn Jagland, Secretary General of the European Council, to discuss the current and further development of bilateral cooperation, and Wolfgang Rau, Executive Secretary of the Group of States against corruption (GRECO). (mfa.gov.kz) • Conference on Religion and Women held in Shymkent The Agency for Religious Affairs and the National Commission for Women and Family and Demographic Policy, together with the Mayor’s Office for the South Kazakhstan Region, organized a forum on November 7 entitled, “Religion and Women”. The aim of the forum is to stimulate a discussion on various aspects of the attitude of religion to women, as well as giving young people accurate information about the basis of religion and the formation of religious consciousness. (ortcom.kz) • Golovkin defends World Boxing Title Gennady Golovkin of Kazakhstan confirmed his place as the world’s number one middleweight boxer, with a victory over the US’s Curtis Stevens in New York’s Madison Square Gardens. Golovkin has now won all 28 of his professional fights, 25 of them inside the distance. Each of his last 15 fights have been stopped early to spare his opponent further punishment. Despite the fact that Golovkin defeated the home fans’ man, the boxer from Kazakhstan was warmly applauded by the fans at the end of the bout. (inform.kz) • Kazakhstan virtuoso to play at Astana Opera House The world-famous violinist from Kazakhstan, Erzhan Kulibayev, is to perform at the new Astana Opera House on November 30. Mr Kulibayev has recently returned from a successful tour of Argentina. (inform.kz)
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Things to Watch • 10th Forum of Russia-Kazakhstan Inter-Regional Cooperation The Tenth Forum of Russia-Kazakhstan Inter-Regional Cooperation will take place in the Russian city of Yekaterinburg on November 10-11. Both President Nursultan Nazarbayev and President Vladimir Putin will attend. The subject of the Forum will be “Industrial Cooperation”. The Ninth Forum took place in Pavlodar in Kazakhstan in September 2012. • 6th Civil Forum in Kazakhstan The Sixth Civil Forum of Kazakhstan is to take place in Astana on November 14-15. The Forum will look at all aspects of civil society in today’s Kazakhstan.
ASTANA CALLING A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ Please send comments and questions to pressa@mfa.kz
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