Gulbanu ABENOVA
ALMATY, Dec 2
(THE GLOBE)
�For 9 months of this year the dynamics of the development of the Kazakhstani economy indicated a small growth mainly due to export depending on foreign investments,� the Kazakhstani Investment Agency chairman Dulat Kuanyshev said.
On Friday, December 3rd, the third meeting of the Foreign Investors� Council (FIC) subordinate to the Kazakhstani President was to be held. Most important problems affecting the investment climate in Kazakhstan will be discussed.
Gross foreign investments came to US$ 8.5 billion, including 45% of them � to the oil sector. For the first six month 1999 the investment inflow to Kazakhstan was US$ 486 million out of US$ 960 million of direct investments expected in this year, Kuanyshev said.
Most contracts concluded with local investors, but foreign investments are more significant. Local investors� projects are to create more jobs in comparison with foreign projects, but the country is short of local investors.
Kuanyshev said that after the previous FIC meeting the President�s decree �On measures to realize recommendations and proposals of the FIC second meeting� issued. In accordance with the decree, both central and local executive organizations were instructed to appoint a person responsible for cooperation with FIC and its working groups before December 8. Some laws on taxation have been changed and supplemented. In particular, VAT on losses abandoned, VAT postponed for companies dealing with municipal services as well as with some branches of the economy, Tom Thomson, The PBN Company Senior Vice President and Managing Director said.
At the FIC third meeting participants will openly exchange their opinions how to increase further investment attractiveness of Kazakhstan, the Kazakhstani Investment Agency chairman emphasized.
President Nursultan Nazarbaev established FIC in June 1998. The council consists of the Prime Minister, some members of the government, as well as heads of biggest European, American and Asian companies representing main investors to the national economy.
ALMATY, Dec 2
(THE GLOBE)
Due to an ongoing shortage of jet fuel in Kazakhstan, all international airlines operating in Almaty were instructed to have a sufficient stock of fuel on their aircraft for a return trip during the period of November 25 to 30. A representative of one foreign airlines, who asked to remain anonymous, reported that this period has been extended until December 15 or 17.
THE GLOBE asked the International Airport Almaty President Alexander Gordeev to comment on the facts.
�The situation with fuel will be difficult until December 10 to 12. That is why we will request all foreign air companies to have maximum stock of fuel until we settle the problem. Not just Kazakhstan, but many CIS countries face this problem. Today almost nobody produces kerosene in the country, except the Shymkent refinery, due to the unavailability of raw materials. However, jet fuel TS-1 produced by the refinery requires a definite procedure to test it, after which it will be widely used,� he said.
The airlines spokesman said that foreign airlines were losing trust in the Almaty airport. Many of them consider this airport the worst in CIS as far as service is concerned, since the airport�s work is subject to continuous changes, in particular:
- in airports around the world, the standard landing fee is US$ 9 per ton, but beginning October 24th, the Almaty airport raised charges to US$ 17;
- the airport demands US$ 141 per ton as a Cargo Duty, although recently this duty has not been charged, as companies unload at their own expense;
- Passenger service tax has been increased from US$ 11 (which matches international standards) to US$ 17.
Apart from that, the cost of 1 ton of kerosene grew from US$ 180 (international standards) to US$ 250.
At one time, all airlines were required to make an �extraordinary� deposit in Air Kazakhstan�s account in the amount of US$ 70,000 to 80,000. Nevertheless, the company did not provide them with fuel when it was necessary, according to the representative.
Due to the problem with fuel shortage beginning three weeks ago, airlines had to change over one of its aircraft. Of 176 seats only 130 can be occupied, as the aircraft has to take fuel for the return way instead of cargo.
Regarding charges of the increased prices, Gordeev responded that �all rates of duties and tariffs are approved by the Antimonopoly Committee.�
�Landing fee is a normal practice: we unload planes and take money for that. As far as the account in which as if all companies deposited money is concerned, I�ve never heard about it,� he emphasized.
Austrian Airlines is considering plans to cease operations in Kazakhstan by mid-February due to the current situation. Austrian Airlines manager Christian Wimmer refused to comment until negotiations were finalized. Look for an exclusive interview with Austrian Airlines in next issue of THE GLOBE.
Correspondents of RFE/RL in Astana quote Kazakh Presidential Office as reporting that Kazakh leader Nursultan Nazarbayev meets foreign Diplomats in the former capital - Almaty today, December 2. The meeting had been scheduled to be held in Astana on November 30. But due to the lack of gasoline the meeting was moved to December 2, and is held in Almaty, not in Astana. Kazakh Premier Qasymzhomart Toqayev participates in the meeting with ambassadors and attaches of foreign countries.
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