Official Statements:

President Nursultan Nazarbayev Receives Official Delegation of the U.S. Congress Headed by Nick Rahall, the Chair of the Committee on Natural Resources of the House of Representatives

At the meeting, the sides discussed issues of Kazakhstani-American trade economic partnership and also interaction on issues of global policy.

The President noted that there was an informal group of Kazakhstan’s friends in the U.S. Congress. The group includes arrived in Astana congressmen Darrel Issa, Charles Melancon, Ray LaHood, John Linder and Jack Kingston.

“I am thankful to you for your participation in this group. We know about your constant support of the development of cooperation between Kazakhstan and the USA,” Nursultan Nazarbayev said.

Member of the U.S. Congress Nick Rahall expressed his astonishment at the progress that Kazakhstan had made over the years of independence in economy and building democratic society.

President of the Russian Federation Dmitry Medvedev visited Astana on a state visit at the invitation of the President of the Republic of Kazakhstan Nursultan Nazarbayev.

From the airport Russian President went to the square and laid a wreath at the Monument to Motherland’ Defenders.

After official welcome ceremony in the Akorda Palace Nursultan Nazarbayev held a meeting with Dmitry Medvedev.

We highly appreciate the fact that you are paying you first visit abroad to Kazakhstan after your inauguration as President of Russia, Nursultan Nazarbayev said as he opened the meeting.

This start indeed is a kind continuation of all that had been done by you and President Vladimir Putin over the previous years. I would like to thank you for this warm meeting. It is also very important and nice for me as a person who is paying his first official visit. All that I have seen today proves special trusting relations between our countries, Russian President said.

Then the expanded talks with members of the official delegations where the sides discussed the state and prospects for bilateral cooperation in political, trade, economical, cultural, and humanitarian spheres took place.

The parties expressed satisfaction with dynamic development of trade and economic cooperation. In 2007 the turnover accounted for $16.3 billion dollars and increased up to 27% compared to 2006. The positive tendency is being kept this year as well.

Kazakhstani-Russian cooperation in the energy sector is of strategic importance. Through Russian pipelines system more than 60 million tones of Kazakhstani oil haven been piped to the foreign countries in 2007. At the same time it is scheduled to export through Atasu-Alashankou pipeline up to 5 million tones of Russian oil to China in 2008.

Kazakhstan and Russia in bilateral formats have agreed on the issue on division of Caspian shelf, are the major shareholders of the Caspian Pipeline Consortium, and are developing “Kurmangazy”, “Zhentralnaya” and “Khvanynskoye” oilfields. Due to the increase of output and export of Kazakhstani gas cooperation in gas processing in Russia and use of Russian transport infrastructure for its export is actively developing.

In October 2006 it had been agreed on gas processing from Karachaganak oilfield in Russia by the way of establishing and expansion of a joint venture at the Orenburg gas processing plant. Joint ventures in the field of peaceful use of nuclear power have been established. The parties discussed issues on joint cooperation in exploration and transportation of oil and gas and establishment of petrochemical ventures. At the talks importance was given to the issues on the use of the Baikonur cosmodrome and the joint development of space.

In 2006 the first Kazakhstan’s communications and broadcast satellite, KAZSAT, had been launched. Production of a series of satellites, KAZSAT, new modern space rocket complex, Baiterek, elaboration of the project for Global Satellite Navigation (GLONASS), training of domestic cosmonauts are being also carrying out.

Cooperation between Kazakhstan and Russia in transport and transit sphere is developing well. In particular, work on the route that will unite Western Europe and Western China via the territory of Kazakhstan and Russia is being done by the experts. The implementation of this project will allow integrating our countries to the global transportation system and increasing benefits from transit.

Cooperation in water transport has good prospects. Aktau-Astrakhan, Aktau-Makhachkala ferry line has been launched. The transportation turnover of goods and passengers by the Kazakhstani and Russian boats has been increased in the Irtysh River Basin.

The parties also discussed issues on cooperation with neighboring countries. It was noted that regular forum of the leaders of the border regions is scheduled to hold in autumn, in Kostanai.

In order to deepen economic cooperation President Nursultan Nazarbayev suggested drawing up a long-term agreement on economic cooperation and integration between the two counties.

Nursultan Nazarbayev invited Dmitry Medvedev to take part in the celebrations devoted to the 10th anniversary of Astana. The invitation has been accepted.

The parties exchanged views on global and regional issues which are of mutual interest. It was emphasized the need of further interaction within the framework of CIS (Commonwealth of Independent States), EurAsEC (Eurasian Economic Community) and CSTO (Collective Security Treaty Organization). The parties underscored sharing close positions on key international issues and aspiration to develop cooperation in foreign policy within the framework of the UN, OSCE, SCO (Shanghai Cooperation Organization), CICA (Conference on Interaction and Confidence Building Measures in Asia) and other such international organizations and forums.

Following the talks Nursultan Nazarbayev and Dmitry Medvedev signed a Joint Statement which outcomes results of the visit. Among the documents signed within the framework of the state visit of the Russian President were intergovernmental agreement on cooperation in space exploration and the use of Russian Global Navigation Satellite System (GLONASS) and intergovernmental agreement on cooperation in space exploration in peace.

Intergovernmental agreements on transferring the building to the address: 3 Chistoprudnyi Boulevard, Moscow city to the possession of the Republic of Kazakhstan; on cooperation between “The National Innovation Fund” Joint Stock Company and “The Russian Corporation of Nanotechnology” State Corporation, on intention on granting a long-term credit line between “Kazakhstan Development Bank” Joint Stock Company and “Bank for Development and Foreign Activities” State Corporation were also signed in the presence of heads of state.

After the talks heads of the state gave a joint press conference.

I consider current Kazakhstani-Russian relations as the most successful and efficient model of bilateral cooperation in the entire post-Soviet space. Vladimir Putin and I had meetings regularly and we were quick to settle any issues that arose. There were no problems that could not be resolved through frank and open dialogue and consideration for our countries’ and peoples’ mutual interests. The talks with Dmitry Anatoliyevich showed that this positive spirit is being remained today and the tradition of close and trusting relations between leaders of Kazakhstan and Russia will continue. This continuity of such policy will benefit both our countries and peoples, Nursultan Nazarbayev said at a press-conference.

President of the Republic of Kazakhstan Nursultan Nazarbayev attended the World Economic Forum on the Middle East which is being held in Sharm El Sheikh, Egypt

15 heads of state and government including US President George Bush, President of Kazakhstan Nursultan Nazarbayev, President of Afghanistan Khamid Karzai, King of Jordan, Abdullah II ben Hussein ben Talal took part in the World Economic Forum on the Middle East.

Among 1, 500 participants, there are more than 80 ministers, leading business figures, leaders from civil society from over 60 countries, including Quartet Representative (UN, EU, US and RF) in the Middle East Tony Blair, Director General of the International Atomic Energy Agency (IAEA) Mohamed El-Baradei, and President of the World Bank Robert Zoellick.

The theme of the forum is very actual, Learning From the Future. The participants of the forum discussed trends on economic development of one of the most sensitive in political aspect regions of the world. An exchange of opinions focused on a series of futuristic scenarios that explore how long-term world trends impact on the Middle East region took place at the forum. Its objective is to determine measures necessary for adequate opposition to negative challenges, to assist in finding potential vectors of development of the region in the nearest 20 years.

The topic of discussion concerned political (Israeli-Palestinian conflict) and economic issues on overcoming the world financial crisis, effective use of oil resources, development of social entrepreneurship, global food crisis.

The special Kazakhstan evening with the guests of the World Economic Forum on the Middle East has become one of the key events of the forum.

Before beginning of the Kazakhstan evening Nursultan Nazarbayev held a meeting with Chairman of the World Economic Forum (WEF) Claus Schwab.

Hosts of the Forum emphasized that Kazakhstan became an economic leader of the Central Asia. GDP per capita has increased tenfold over the last years of independence. The country is also being successfully pressing forward with political reforms.

Addressing the guests of the forum, President Nursultan Nazarbayev said that the forum’s value is that it attracted immense political, business, and intellectual potential of the region for getting adequate solutions to complicated modern challenges.

Talking about economic cooperation between Kazakhstan and the Middle East countries, Nursultan Nazarbayev emphasized that Arabian businessmen were one the first who estimated investment attraction of non-oil sectors of country’s economy.

Kazakhstan’s partners from the United Arab Emirates, Bahrain, Qatar, and Jordan are starting implementation of several economic projects for total sum more than 30 $ billion. Among the projects to be realized in Kazakhstan there is a new satellite-city Aktau-City, the first Energy Hub in the Caspian region, development of Kenderli, zone for tourists on the Caspian Sea.

Kazakhstan launches two large Direct Investments Funds, one of them with partners from the United Arab Emirates; the second one is being created with the partners from Bahrain.

My participation in the forum and today’s evening witness truly friendly relations of Kazakhstan with the Middle East countries and show our shared aspiration to the closest cooperation, Nursultan Nazarbayev said.

Kazakhstan considers the Middle East countries as prospective partners in economic, political and cultural aspects. Republic established good relations of mutual understanding and cooperation that have to be filled with active economic partnership.

We will achieve the desired results only by joint efforts. For this we have all necessary prerequisites and conditions, and the main thing – good will, Head of the state underscored.

The Government ensures economic growth

“I bindingly confirm that the Government takes strenuous efforts to nail down economic growth”, Kazakhstan’s Prime Minister Karim Massimov said when speaking in the Majilis on adjustment of the 2008 state budget.

“I bindingly confirm that the Government takes strenuous efforts to nail down economic growth”, Kazakhstan’s Prime Minister Karim Massimov said when speaking in the Majilis on adjustment of the 2008 state budget.

According to him, due to a package of measures taken by the government to stabilize macroeconomic environment, the economy is expected to grow by around 5% in 2008. “This is somewhat lower than the estimated growth rate that we took into consideration when deciding on the 2008 state budget. But it would be fair to note that the draft budget had been planned and submitted to the parliament in a period of external economic wellbeing”, the Prime Minister said.

The Government has taken right prompt decisions within the changed economic environment; “hadn’t the government taken those decisions, we could put economic growth on ice altogether”, K. Massimov concedes. Besides, the PM emphasized that the government had succeeded in shutting out the unemployment growth. “This is a tangible result of our efforts and air-tight validation of economic growth”, he said.

On the 6th of June, the city of Atyrau will host a regular plenary sitting of the Council of Foreign Investors under the direction of President Nursultan Nazarbayev, announced the Prime Minister, adding that “the major issue on the agenda will be development of the electric power industry in Kazakhstan”.

“At the present moment there are no prerequisites for a systematic financial crisis, the things have been flattened out and we expect them to look up”, Head of the Kazakh Government said.

Majilis of the Kazakh Parliament has passed a bill on adjustment of the 2008 state budget. Thus, budget revenues will make up KZT 2 722 210 114000, KZT 34.9 billion up from the originally planned level. Expenditures will total KZT 3 064 014 386000 (KZT 158.8 billion up). Expenditures of 13 public bodies have been cut down by KZT 34.9 billion. The new budget envisages rise of basic pensions, social allowances and student allowances.

“I am confident that the proposed package of amendments into the 2008 state budget will enable us to attend to temporal problems and ensure sustainable economic growth in the foreseeable future”, K. Massimov said, expressing his gratitude to the Majilismen for the decision.

Astana hosts 5th sitting of the Kazakh-Swiss intergovernmental committee on trade-and-economic cooperation

May 27, 2008, Rixsos Hotel in Astana hosted the 5th sitting of the Kazakh-Swiss Committee on Trade-and-economic Cooperation.

“According to the Kazakhstan’s Agency for Customs Statistics, Switzerland accounts for 9.6% of the total Kazakhstan’s trade turnover. Foreign trade turnover between Kazakhstan and Switzerland in 2007 made up USD 7 billion 723.9 million, with exports standing at USD 7 billion 475.9 million, and imports of USD 248 million. Switzerland ranks 4th among Kazakhstan’s foreign trade partners in 2007”, said Ms. Zagipa Balieva, co-chairperson of the Committee on the Kazakhstan’s side.

The sides are interested in developing bilateral cooperation and augmenting investments. In the course of the sitting, the sides decided to consider a finalized protocol on inserting amendments to the double taxation convention signed between the Kazakh Government and the Swiss Federal Council in relation to income tax and capital levy.

The sides agreed to hold the 6th sitting of the Committee in 2009 in Bern. The dates and agenda are to be further agreed on.

Astana hosting Kazakhstan-South Korea business forum

“In the economic realm relations between our two nations have been dynamic. This year we need a new impulse enabling us to take a step forward in economic development. This business forum will be a true lever to encourage further development of the economy and bring our cooperation to new heights”, said Kazakhstan’s Prime Minister Karim Massimov when opening the forum.

According to Prime Minister Han Seung-soo of South Korea, Kazakhstan is the most important trade partner of South Korea in Central Asia and the business forum will be a starting point for strategic cooperation in energy, communications and other sectors. South Korea is ready to share its experience and contribute to Kazakhstan’s economy development through expanding investments.

South Korea is a major trade-and-economic partner of Kazakhstan. According to Kazakhstan’s Agency for Statistics, bilateral trade turnover in 2007 totaled USD 843.3 million (exports stood at USD 217.4 million and imports USD 625.9 million). Korean companies are interested in finding partners in such sectors as energy, oil and gas, petrochemistry, construction, financial services, logistics, etc.

In Kazakhstan there are over 300 joint ventures operating with Korean capital. According to the Kazakh National bank, Korean businesses invested USD 780.7 million into the Kazakh economy in 2007 alone (the total South Korean investment into the Kazakh economy stands at USD 2.5 billion). Kazakh investments into the Korean economy made up USD 66.7 million.

The forum was attended by over 120 Korean businessmen and about 200 Kazakhstan’s entrepreneurs.