All Over the Globe

�Kazakhoil� upholds the quotes

Rashid DYUSEMBAEV

ALMATY, June 2 (THE GLOBE)

�As a result of the visit of the President of NOC �Kazakhoil� to Moscow, it was decided that the quotes for transportation of 7 million tons of oil through the Russian pipelines, agreed in December 1998, will remain the same until the end of this year,� the head of the press-service of the Kazakhstan National Oil Company told THE GLOBE in Almaty on June 2.

Sergei Kuzovnikov also confirmed, that during the meeting of Nurlan Kaparov and the Russian Ministry of Fuel and Energy Victor Kalyuzhny, it was stated that these quotes might remain the same in the next year.

According to information from Russian and Kazakhstan sources, Russia was orignally going to reduce the quotes for Kazakhstan oil owing to fall of prices in the international markets.

The representative of �Kazakhoil� announced, that the possibility of participation of the National Oil Company of Kazakhstan in Russian projects was also discussed at

Investments were used ineffectively, we will not allow not to pay the external debts, � Nursultan Nazarbaev

Gulbanu ABENOVA

ALMATY

June 2

(THE GLOBE)

�This year and 2000 is the peak repayment period for the credits received in 1994 to 1995. Frankly speaking, these investments were not used as effectively as we wanted,� the President of Kazakhstan announced in Almaty on June 2.

As far as the repayments of the external debt in this and the next years in the amount of US$ 900 million, Mr. Nazarbaev said �the external debt has been provided for in the budget and we will repay Kazakhstan�s external debts.�

Despite the world crisis and the difficult economic situation in the Republic, according to the President, our country should achieve the economic growth in the next years. The President said that the European Bank of Reconstruction and Development invested US$ 1.3 billion. �Ispat-Karmet� is to receive US$ 160 million. Other spending plans include about US$ 69 million for the reorganization of Kazakhstan�s legal system and the development of small and middle-size business. The President thinks that the privatisation of �Kazakhtelecom� and the fact that according to the Memorandum on mutual understanding signed on that day between the President of EBRD and the Prime Minister Nurlan Balgimbaev, that the EBRD will manage this telecommunication company, are a significant help to Kazakhstan in this difficult time.

�Social stability, agreement, and economic stability are the key points which will attract investors to our country,� the President stated.

The second meeting of the Council of Foreign investors was held on June 2. New members including the EBRD president Horst Kohler, were accepted to the Council. It was decided that the meetings of the Council are to be held twice in a year.

EBRD will manage �Kazakhtelecom�

Gulbanu ABENOVA

ALMATY, June 2 (THE GLOBE)

�Apart from US$ 450 million, we are going to further increase the volume of our investments to Kazakhstan,� the President of the European Bank of Reconstruction and Development announced on June 2 in Almaty.

Horst Kohler said, after the Memorandum on mutual understanding with the Prime Minister was signed, the EBRD would further co-operate in the privatisation of �Kazakhtelecom�. The bank undertook the responsibility to invest US$ 160 million to this project using the Share Capital and so-called direct loans. Another priority direction will be the joint work with Kazakhstan banking sector to make it more competitive.

Mr. Kohler did not mention all of the details of their work with �TuranAlemBank�, �Kazcommertsbank�, and People�s Bank. Kohler emphasised that the EBRD team is preparing a mixed portfolio investment consisting of the stocks in the amount of US$ 60 to 70 million, which would be used to speed up the privatisation of �Kazakhtelecom� and to prepare the company for a strategic investor. According to Mr. Kohler, �Kazakhtelecom� received a loan for US$ 80 million to cover the capital expenses of the company. The project has passed the internal analysis and is at the discussion stage.

Recommendations to the investor based on our sad 3-years experience

No. 1 Get professional help immediately upon arrival
No. 2: Avoid mistakes, they can be costly
No. 3 The Central Asian culture is different from the West, Western logic doesn�t apply
No. 4 The budget supercedes everything
No. 5 Taxes are due regardless if you are paid
No. 6 Payments abroad may be considered pure profit for taxing purposes
No. 7 Get all permits and licenses or forfeit everything that you have earned
No. 8 Contract only for the period required
No. 9 Corruption �it�s everywhere, be careful
No.10 Be aware of your custom�s obligations

KITEL awards winners

Erkanat ABENI

ALMATY, June 2 (THE GLOBE)

In the evening of the first day of the international exhibition KITEL�99, an awards ceremony of was held at �Regent Ankara� hotel, one of the organisers of the exhibition announced on June 2 in Almaty.

According to the representative of the �Iteca� company, from the very beginning of the event, the judges determined three nominations for the prizes.

In �the best design of stand� nomination �Ericsson�, �Simence� and �Instaphone� won.

Prizes for the original design of the stand were received by �Altel�, �K-cell�, and �K-mobile�.

In the category �For six years of participation in KITEL� prizes were given to �Sanmikrosystem�, �Alsi� and �UBS Apses�.

In addition, the organizers of the exhibition prepared a special prize for support of innovations. This prize was received by �Alsi�, �Kaztelecom� and �NS Rec�.