December 19, 2008. The signing of the Convention between Japan and the Republic of Kazakhstan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income took place between Mr. Hirofumi Nakasone, Minister for Foreign Affairs of Japan, and H.E. Mr. Akylbek A. Kamaldinov, Ambassador Extraordinary and Plenipotentiary of the Republic of Kazakhstan to Japan, in Tokyo on December 19, 2008.

As with the Conventions already concluded between Japan and other countries, this Convention adjusts the taxation rights between Japan and the Republic of Kazakhstan to avoid international double taxation arising from economic and human exchanges.  Reflecting the strengthened economic relations between Japan and the Republic of Kazakhstan, the Convention clarifies the limit of withholding tax rates imposed on dividends, interest and royalties (copyrights, patents and others), to promote mutual investments. It is expected that the Convention will further strengthen the economic relations between the two countries.

Kazakhstan’s Government holds special sitting on anti-crisis program

November 25, 2008. At a special sitting, the Kazakhstan’s Government approved a long-awaited stabilization plan to inject into the national economy a total of KZT 2.2 trillion (20% of the nation’s GDP).

“The plan of concerted efforts to be taken by the Government, the National Bank and the Agency for Financial Supervision (financial market regulator) is very specific and relies on available resources… To implement the plan, USD 10 billion will be allocated out of the National [Oil] Fund, out of the 2009-2010 state budget funds, as well as out of pension accumulation funds. It is very important to ensure transparent use of the resources”, Kazakhstan’s Prime Minister Karim Massimov said.

The Prime Minister has commissioned the national Ministry of Economy and Budget Planning to elaborate within the following two weeks step-by-step guidelines of implementing the plan.

The stabilization plan will focus on five vectors defined by President N. Nazarbayev. This will be financial sector stability (USD 4 billion will be earmarked), real estate market stabilization (USD 3 billion), support to S&MBs (USD 1 billion), accelerated development of the national agriculture sector (USD 1 billion) and innovation-driven industrial projects (USD 1 billion).

The current developments at the Kazakhstan’s consumer market show that the inflation is slowing, and inflationary pressure is slackening, said Anvar Saidenov, Head of the National Bank of Kazakhstan. According to him, the trend will proceed into 2009.

“The National Bank will be able to confine inflation to 10%, and keep the indicator within 7.5-9.5% in 2009, and within 7-9% in 2010”, A. Saidenov said. Up to the end of this year and into 2009, the National Bank will be further pursuing its mild monetary policy, A. Saidenov said.

He noted that the Bank will take into account economic developments in 2009. Tightening of the policy is not ruled out. “This will depend on inflation trends. At the moment we forecast further inflation abatement. Under such conditions, we can focus on financial stability”, he summed up.

Kazakhstan’s Foreign Ministry Collegium

holds extended sitting presided over by President N. Nazarbayev

November 19, 2008. At an extended sitting of the Foreign Ministry Collegium, President N. Nazarbayev commissioned to work out in the first half of 2009 a new concept of the nation’s foreign policy.

”The new concept is to highlight the growing role of Kazakhstan in the international arena. It will incorporate analysis of the current global developments. The document should clearly reflect our stance on the most acute international issues and our foreign policy interests”.

Besides, President Nazarbayev has set a number of tasks to be addressed by the country’s Foreign Ministry for the immediate future. ”In the immediate future, Kazakhstan’s Foreign Ministry in close cooperation with all the other public bodies should focus on the following important vectors: consolidation of the belt of safety and good neighbourliness all along the national borders, every possible assistance to the national economy development amid the global financial crisis, strengthening of intra-eurasian and intra-Central-Asian integration, and preparatory work to ensure success of Kazakhstan’s OSCE presidency in 2010”.

Among the other tasks to be addressed by the Foreign Ministry he named wide-scaled implementation of the Path to Europe State Program, preparatory work for the OIC (Organisation of the Islamic Conference) ministerial summit in 2011, and preparatory work for the third Congress of World Religions to be held in Astana in 2009 and for CICA (Conference on Interaction and Confidence Building Measures in Asia) summit of 2010.

”We need a new content to ensure effective mutually beneficial partnership along the priority vectors of our foreign policy…”.

“Russia has been and is a reliable ally, economic partner and a good neighbor of Kazakhstan… We are fully confident that our partnership will continue in the same vein”. ”China, a strategic partner of Kazakhstan, is becoming a center of global significance. Kazakhstan will be further expanding and deepening mutually beneficial cooperation [with this nation] and maintaining intensive dialogue in all realms”. “Interaction with nations of Central Asia will also be among the top priorities”.

“Relying on brotherly relations with neighboring countries, we will be taking further efforts to promote true pragmatic integration within the region. It is through concerted efforts that we will be able to meet challenges and ensure sustainable development of the region”.

“The EU is among our largest trade partners. Most European countries regard Kazakhstan as their major strategic partner in Central Asia…”.

“Path to Europe Program will facilitate economic cooperation with EU nations. This Program outlines our cooperation with Europe as a whole. Currently bilateral trade turnover stands at USD 25 billion, and this figure is bound to grow. We welcome European S&MBs offering innovations and technologies in exchange for our resources”.

“Being a part of the Muslim World, we are attaching great importance to cooperation with Muslim states, notably Gulf countries. We have been maintaining warm relations with the UAE, Saudi Arabia, Egypt and Jordan. We need to keep on working with them in economic and political realms».

“Besides, special attention will be focused on development of partnerships with Japan, India, leading nations of South and East Asia, Middle East and Latin America… Some agreements were reached between Kazakhstan and Japan in the course of my visit to Japan last year… In January 2009 I will be paying an official visit to India. There is much to be done prior to the visit to give a boost to cooperation of Kazakhstan with India”.

“Due to the active diplomatic efforts, our nation has become a full-fledged player of many global processes … and is acknowledged by geopolitical centers of the world… The role played by the nation in a number of respected international organizations is certifying [such recognition]. I am talking of our presidency in the Asia Cooperation Dialogue (ACD) in 2008-2009, in the OSCE in 2010, in the Organisation of the Islamic Conference in 2011, and of our management role in executive bodies of the Eurasian Economic Community, Shanghai Cooperation Organisation, CICA, Organization for Joint Promotion of Turk Culture and Arts”.

”Currently, we see natural evolution of the global economy development model and its regulation… We see the most drastic changes of the global geopolitical and economic architecture for the recent decades. The international community faces a serious test - a global financial crisis developing into a systemic economic recession”.

“At the moment, the Kazakhstan’s Government is developing a plan of measures to support stable economic development. To this end, USD 10 billion has been allocated out of the National [Oil] Fund. These funds are being channeled to stabilize the national financial sector amid the global crisis, support housing construction and S&MBs, and to further implement the Program of Innovation-based Industrial Development”.

Kazakhstan’s Foreign Ministry is working to define specific priorities of the Kazakhstan’s OSCE chairmanship in 2010. A detailed action plan for the following three years will be submitted for the Government’s consideration shortly after the Collegium’s sitting, said Foreign Minister Marat Tazhin.

Besides, M. Tazhin emphasized importance of developing cooperation with UN bodies and put forward an idea of “establishing a regional hub of multilateral cooperation and diplomacy in Almaty”.