Official Statements:

Foreign policy

September 12, 2007. President Nursultan Nazarbayev pay an official visit to Turkmenistan. After official meeting ceremony in the presidential palace, President Nursultan Nazarbayev and President of Turkmenistan Gurbanguly Berdimuhammedow held narrowed and enlarged negotiations.

Nursultan Nazarbayev reminded that during the state visit by Turkmenistan’s President to Astana on May 28, 2007 the Presidents agreed to broaden economic co-operation between Kazakhstan and Turkmenistan, particularly in the implementation of mutually beneficial projects in the area of transport infrastructure. Currently, the sides are actively working on projects of constructing railroad and motor roads connecting the two countries.

The sides paid a special attention to co-operation issues in the areas of energy, transport and communications, agriculture. Contacts in cultural humanitarian sphere had a special meaning to the two countries.

The Presidents noted that the volume of bilateral trade was more than USD 150 million in 2006. That is two times greater than in 2005, however, that figure does not correspond to the potential of Kazakhstan and Turkmenistan’s economies.

In order to determine promising interaction directions and to develop concrete joint projects, the Presidents instructed the governments of the two countries to hold the second session of the Kazakhstani-Turkmen intergovernmental commission for economic collaboration in the nearest future.

Both Kazakhstan and Turkmenistan are states possessing large reserves of oil and gas. Co-operation in the area of energy is mutually profitable and satisfies interests of the two countries’ peoples. In this connection, the sides discussed issues of transiting Turkmen gas through Kazakhstan’s territory to world markets, participation of Kazakhstani companies in the exploration and exploitation of carbohydrate fields in Turkmenistan and other issues of bilateral co-operation.

As concerns culture and humanitarian area, the sides agreed to hold Turkmenistan’s culture days in Kazakhstan and a Forum of culture workers and intelligentsia of the two countries in 2008, and also Kazakhstan’s year in Turkmenistan in 2009.

The Presidents noted that a large Turkmen Diaspora resides in Kazakhstan and a large Kazakh Diaspora resides in Turkmenistan. They form a “live bridge” of friendship. In this regard, the Presidents agreed to establish Kazakhstani-Turkmen friendship society in Turkmenistan and Kazakh cultural center in Ashgabat. Such Turkmen cultural centers of the Turkmen Diaspora already work in Kazakhstan.

Nursultan Nazarbayev and Gurbanguly Berdimuhammedow signed a joint communiqué in the framework of the visit. Besides, a number of agreements were signed between the two countries, namely agreement between Kazakhstan’s public health care ministry and Turkmenistan’s public health care and medical industry ministry on ensuring hygiene and disease prevention services and a memorandum on mutual understanding and cooperation between Astana and Ashgabat.

September 20, 2007. German Economics Minister Michael Glos is to visit Kazakhstan and Azerbaijan next month for talks with senior leaders in both countries. Glos would be accompanied by a high-level business delegation during the trip between October 16 and 19. The German minister is scheduled to meet Kazakh President Nursultan Nazarbayev in Astana on October 17. Glos is also to travel to Almaty, the largest city. Representatives of the energy sector in the German delegation are to join a discussion with Kazakh energy officials. Kazakhstan has become a major oil producer over the past decade.

September 20, 2007. Yohei Kono, speaker of the House of Representatives of the National Diet of Japan has accepted Akylbek A. Kamaldinov, Ambassador of the Republic of Kazakhstan to Japan.

Yohei Kono is one of the outstanding political figures, who have authority among different political trends, including opposition parties. Yohei Kono grow up a lot of well-known politics, as well as a play a key role in lurge of UN University to Japan, and made a significant contribution to the issues of non-proliferation, disarmament and protection of environment.

Kazakh diplomat has informed his interlocutor briefly about economic and political reforms, as well as stressed the importance of further deepening of bilateral relations, especially in the field of enhancement of legal base.

Particularly, parties discussed the intergovernmental agreement on co-operation in the peaceful uses of nuclear energy, convention on avoidance of double taxation and agreement on mutual protection of investments.

Yohei Kono agreed with Ambassador’s opinion, and noted the importance of further strengthening of interaction between legislative branches of both countries. “Political stability and the high level of economic development of Kazakhstan, achieved thanks to reforms in the all field s of state construction, aims our countries for long-term and fruitful co-operation” - stressed Yohei Kono.

During the meting, Yohei Kono expressed his sincere respect to the President Nursultan Nazarbayev and noted the growing authority of Nursultan Nazarbayev in the world community, especially in his historical mission in the creation of new state.

Economy

September 19, 2007.  Vice-minister of Industry and Trade of the Republic of Kazakhstan K.Bishimbayev made a speech on the “round table”: “10th Anniversary of the Strategy: Kazakhstan - 2030”. K.Bishimbayev stressed the leadership of Kazakhstan as leader among NIS countries on the level of investment attractiveness. The direct foreign flows exceed USD 50 billion after the adoption of the strategy. Kazakhstan achieved great success thanks to national legislation, which provide the full protection of rights and interests of investors in accordance with international treaties.

“Strategy: Kazakhstan - 2030” provides the creation of effective and technology-based transport complex. Kazakhstan plans to implement more than 80 investment projects to the amount of USD 30 billion. It’s planning to build 1600 kilometers of new motor roads and electrify about 2700 kilometers of railways, as well as reconstruct more than 50 thousand of new motor roads, modernize air port infrastructure, develop national trade fleet and seaports.

September 21, 2007. A new momentum has been given to the energy policy for Europe. The European Commission has adopted a third package of legislative proposals to liberalize its energy market. The package, which fills the gaps in existing rules, will provide European consumers with lower prices, more choice on energy market, and stimulate energy efficiency and security of supply. Guarantees of fair competition and access to energy market for non-EU companies are also strengthened. An effective competition on energy market is to be achieved by the new regulation approach of 'unbundling', i.e. separation between the operation of gas and electricity transmission networks from supply and generation activities. In other words, a single company can no longer both own the transmission and be occupied in energy production or supply activities.

Network ownership and operation should be unbundled. As an alternative, the possibility for existing vertically integrated EU companies is reserved, so that they may retain network ownership providing it is operated by an ‘independent system operator’. A part of proposals relates to strengthening national regulators of the EU Members States, which currently do not have sufficient independence to carry out their duties properly and deal with cross-border issues. The Commission proposes to guarantee their independence by ensuring that they are free from any political governance or market interest.

Opportunities for Kazakhstan's companies to invest in the EU energy sector remain open. The EU continues to apply an open policy towards foreign direct investment. For example, it continues to welcome future investments from Kazakhstan's companies in the EU energy sector in line with the international obligations of the European Union and, in particular, with WTO rules. Kazakhstan's companies still have ample opportunity to be active in the EU energy market as long as they comply with the internal competition requirements.

However, the EU would like that Kazakhstan's companies play by the same rules as all other companies. Therefore, the package contains safeguards to ensure that in the event that non-EU companies wish to acquire a significant interest or even control over an EU network, they will have to demonstrably and unequivocally comply with the same unbundling requirements as EU companies. The Commission can intervene where a purchaser cannot demonstrate both its direct and indirect independence from supply and generation activities.

The Commission also proposes a requirement that non-EU country individuals and countries cannot acquire control over a Community transmission system or transmission system operator unless this is permitted by an agreement between the EU and the third country. The aim is guarantee that companies from the third countries respect the same rules that apply to EU based undertakings in both letter and spirit.

The new proposals guarantees that companies from Kazakhstan entering European energy market will have better access and non-discriminatory treatment, as the big EU energy companies will have to allow them to use their established networks and distribution grids.

 September 20, 2007. Kazakhstan’s President Nursultan Nazarbayev received Deputy Prime Minister Umirzak Shukeyev. Vice Premier informed the President of the Government’s sitting that took place on September 18 and was devoted to the situation at the real estate market of Kazakhstan.

He also told about the process of the creation and provision of activity of socio-entrepreneurial corporations. In the whole 5 such corporations will be formed in the country.

September 20, 2007. Kazakhstan plans to open above 20 transport and logistics centers the countrywide to speed up goods traffic and their handling, improve the quality of goods storage during the period of 2008-1015.

September 20, 2007. An international exhibition “High technologies and science-intensive products of China and Kazakhstan – Astana 2007” initiated by the Kazakh Education and Science Ministry and China’s Science and Engineering Ministry was held.

The latest developments of Chinese and Kazakh scientists and engineers working at the implementation of 50 joint scientific projects are showcased there. Altai Industrial Park established under the Serikbayev East Kazakhstan State University represents Kazakhstan as well.

Altai Research Park is one of the first industrial estates created in Kazakhstan. We have brought there the latest and advanced projects, many of them are already known to be developed commercially. Science Park cooperates with the Chinese Association of Industrial Parks. In particular, Park has concluded long-term contracts with Chinese companies on mining and civil engineering, metallurgy and information systems.

It is noteworthy a high technologies area was set up by the oblast mayor under auspices of the interested ministries in the Technological Park.

Portfolio numbers about 60 projects, 15 of them are at the innovation production stage, i.e. they could be introduced into production. Park implements 3-4 projects in co-operation with China for the production of ceramics, cellular concrete, and information systems.

September 20, 2007. JSC "Kazkommertsbank" announced the launch of the American Express® Gold Card and The Platinum Card® from American Express in Kazakhstan. The new cards, available in Kazakhstani tenge or US dollar denominations, have been designed to meet the needs of a wide range of local consumers who seek a card product that can support their financial and lifestyle needs.

Kazkommertsbank is the exclusive issuer of American Express Cards in the market and is also responsible for signing new merchants in Kazakhstan to accept American Express Cards. The new American Express Cards provide a number of benefits and services that are new to the Kazakhstani market as well as several core benefits associated with the American Express brand and products around the world.

September 20, 2007. Kazakhstan will publish its first report within the Extractive Industries Transparency Initiative (EITI) next November.

Currently the Energy Ministry is looking for an audit company for the EITI program. The Audit Company awarded with the contract "will be mandated to collect information from extractive industry companies and request the Government to reveal tax payment data. Having examined all submitted information the mandated auditor will compile a report to submit it to the EITI national council for media distribution.”

This year the report will feature the tax audit for 2005. The EITI report will be published annually. Currently 92 Kazakh companies have joined the initiative, including 51 from the oil and gas sector and 41 mining businesses.

September 20, 2007. In 2007, 43 largest industrial enterprises of Kazakhstan will spend more than KZT 131 billion through modernization of waste disposal plants for decreasing of harmful impacts to atmosphere.