KAZAKHSTAN

Kazakhstan In Brief

LEADER OF COMMUNISTS, MEMBER OF THE KAZAKH PARLIAMENT COMPLAINS

Serikbolsyn Abdildin - leader of the Kazakh Communists and member of the Kazakh Parliament�s Lower Chamber told correspondents of RFE/RL today, December 2 that elections of Mazhilis� Chairman had been held by scenario. Yesterday, December 1, Zharmakhan Tuyaqbayev was elected as new speaker of Mazhilis. His main rival , Communist Party leader Serikbolsyn Abdildin lost the vote. But Mr. Abdildin says that members of the pro-Nazarbayev OTAN party in the Parliament had been instructed by President Nazarbayev prior the polls and Mr. Tuyaqbayev had been elected as Mazhilis speaker due to Nazarbayev�s scenario. Communist leader is going to express that opinion of him at press conference tomorrow, December 3.

RESULTS OF THE KAZAKH PREMIER�S VISIT TO KIEV, UKRAINE

Correspondents of RFE/RL quote Kazakh cabinet�s press office as reporting that Kazakh Premier Qasymzhomart Toqayev returned from his working trip to Kiev, Ukraine yesterday, December 1. PM Toqayev took part in the ceremony of the Ukrainian President�s inauguration. He also held separate meetings with his Ukrainian counterpart Valeri Pustovoytenko, Georgian Premier Vaja Lordkipanidze and Russian Prime Minister Vladimir Putin. Bilateral economic cooperation between the mentioned countries and Kazakhstan was discussed reportedly


Bazaars Dispute Tax Regulations

Kuanysh ZHUMANGAZINOV

ALMATY, Nov 30

(THE GLOBE)

�In the beginning of the new year, it may be that Almaty bazaars will have no vendors,� the President of the Kazakhstani Markets and Businessmen Association Nursadyk Abishev declared on Tuesday, November 30 in Almaty. Since April 1, 1999 the land tax for bazaars has increased ten-fold, causing 20 bazaars in Almaty to announce bankruptcy. Nine of these have been closed after they were unable to pay taxes.

In April 1999, the national government issued two decrees, �On supplementation to the Governmental Decree dated 4 Sept 98� and �On measures to prevent import of non-qualitative products to Kazakhstan�. These decrees have impeded trade in bazaars across the country.

Today, the Kazakhstani Markets and Businessmen Association met with the Tax Committee of the Ministry of State Revenues, to dispute whose responsibility it is to collect the duties charged to vendors for the right to sell products. The conflict arose after an intial Governmental Decree had been issued in September 1998. According to this decree, Akims of Almaty and Astana were entitled to collect sales taxes in bazaars of any type, either through organizations authorized by the local government or through market administrations. The Tax Committee then made market administrations responsible for the bills, charging them for every square meter of market area.

According to Abishev, the Kazakhstani Markets and Businessmen Association and markets� administrations should neither pay the taxes themselves, nor be responsible for collecting duties from vendors. He argued that the Tax Committee should not collect duties from administrators, but directly from vendors. �The Akims of Almaty and Astana can authorize bazaars� administrations to collect vendors� duties, but ought not force them. In this case, the administrations� expenses for maintaining comptrollers, cashiers and accountants must be compensated.�

To date, Victor Khrapunov, the Akim of Almaty, has not established any organizations to collect taxes from bazaars. Officially, market administrations are not entitled to collect the taxes themselves, even though local tax organizations have made them do so. �I officially announce that no bazaar is able to fulfil the decree dated April 22nd, 1999, as it does not stipulate tax rates to be paid by individual merchants,� stated Abishev. He supposed that supermarkets in Almaty might become an alternative to bazaars, but that the general population had no money to buy products there at high prices.

The Almaty Markets Association plans to institute two cases against the Tax Committees of Auezov and Zhetysu districts in local courts. The Almaty Tax Committee and the city Akimat will be defendants as well.


Nomads Novel Republished in English

Aia MURZABEKOVA

ALMATY, Dec 2

(THE GLOBE)

An English edition of the historical novel Nomads by Ilyas Yesenberlin has been published. The American oil company Exxon Ventures (CIS) Inc. sponsored the edition, with support of the Ilyas Yesenberlin Foundation.

Nomads describes a five-century heroic struggle of Kazakhs for their freedom and nation. Ilyas Yesenberlin wrote the trilogy more than thirty years ago. At the time, the book became famous world-wide. It was published more than fifty times in thirty languages, with the total circulation of 2.5 million copies. 1.5 million copies of Nomads were published in Russian, in 12 editions.

The first illustrated edition of the book in English consists of 5,000 copies, with an introduction by President Nursultan Nazarbaev. Kazakhstani celebrities, including Kozykorpesh Yesenberlin, Kabdesh Zhumadilov, representatives of the society and foreign guests were present at the book release ceremony, held at the Ministry of Foreign Affairs. The purpose of publishing the edition is to help acquaint English-speakers with the rich cultural heritage of the Kazakh people.


ITECA to Hold 40

Exhibitions in 2000

Aid AKHMETOV

ALMATY, Nov 30

(THE GLOBE)

The Iteca company, Kazakhstan partner to the international exhibition company ITE Group based in London, announced their future exhibition plans at an Almaty press conference. According to Elena Peredelskaya, deputy to the General Director, in 2000, the company will continue to host exhibitions in Almaty and Astana, plus will add locations in other Central Asian countries. Peredelskaya said that in 2000 the company planned to hold 40 international exhibitions.

Alyona Kadatskaya, Iteca Sales Director, reported that from January to December 1999, the company had held over 20 international exhibitions in Kazakhstan. 2280 corporate exhibitors and more than 100,000 visitors participated in the exhibitions.

During the press conference, representatives of Iteca gave awards to publications, editors and journalists who had reported on the exhibitions. Iteca spokesmen emphasized that their company was not a monopoly and cooperated with many firms in organizing exhibitions.


Telephone Satellites Fill Kazakh Skies

Askar DARIMBET

ALMATY, Nov 30 (THE GLOBE)

�Today there are 52 DAMA satellite communication points in Kazakhstan. By the end of the year Kazakhtelecom plans to establish another 48 points,�deputy of Kazakhtelecom chief technical director Bulat Yerkeshev said on Tuesday, November 30th at a workshop devoted to establishment of the National Satellite Communication Network. The project will allow installation of telephone lines in 120 distant settlements currently without telephone service.

In July 1999, Kazakhtelecom signed a contract with the Israel company Gilat Satellite Network to supply and assemble the DAMA small-channel satellite equipment. Under the main project for creation of satellite communication, the business network Kulan has been designed and is being introduced. Kulan is based on DAMA technology that allows it to connect with the common telecommunication network. This will guarantee easy connections of local phone users to satellite communication subscribers.

According to Yerkeshev, the Kulan network which currently serves over 30 locations will monitor and serve the gas pipelines of the Intergas Central Asia company and telephone networks of some mining enterprises. Another project to construct a data transmission network for Kazairnavigation is underway.

�According to our company�s demand, the first phase of the satellite communication project has been coordinated and realized by Gilat. Kazakhstelecom is independently developing satellite communication, but with continuous support of the Israel company,� acting director of the Marketing and Sales department of Kazakhtelecom Arman Suleimenov said.

Kazakhtelecom has invested US$ 6 million borrowed from Israeli financial institutions. In 2000 and later, the company plans to widen the present network. Further cooperation with Gilat is also possible, Suleimenov said.

�According to preliminary estimations, the satellite communication network will cover 250 stations. The accurate number will be known after corresponding analysis. According to the business project, this many or even more stations will be created,� he added.

�We should not expect the project�s break-even point soon,� Suleimanov emphasized Obsolete technologies are replaced by new ones, and the difficult situation in rural districts, where often there is no communication and people are insolvent, must be taken into consideration. The project will be completed in the first half of 2000.

�On the basis of the business network Kulan and taking into consideration sales of the last six months, we concluded that there is a demand for data transmission services. We have taken a preliminary decision to develop the existing FaraWay system and to increase capacities by means of SkyStarAdvantage technology of the Gilat company,� Arman Suleimanov concluded.


Kazakhstan in November: A Chronicle of Events

ALMATY, Nov 30

(THE GLOBE)

November 1st

The Karakuduk-Munai company (KKM), Chaparral Resources Inc. and Shell Capital Ltd. signed an agreement for a loan of US$ 24 million, which will allow Chaparral Resources Inc. and KKM to exploit the 17,000 acre Karakuduk oilfield located near Mangystau.

November 2nd

Kazakhstani President Nursultan Nazarbaev announced to journalists that he had neither banking accounts in Switzerland nor any real estate in the West. In October, the New York Times had reported that President Nazarbaev possibly had an account in a Swiss bank in which million of dollars gained from Kazakhstani government property were deposited. The President had refused to comment on that story.

November 3rd

National Bank chairman Grigory Marchenko announced that the obligatory sale of exporters� hard currency revenues would soon be banned. In addition, he reported that the NB had agreed with the Finance Ministry to abandon a one percent duty on natural persons buying foreign currency.

November 4th

President of Belorussia Alexander Lukashenko arrived in Astana for an official visit. He said to journalists that he planned to sign a lot of documents on bilateral cooperation with his Kazakhstani colleague Nursultan Nazarbaev. The parties, however, signed only two agreements: the Kazakh-Belorussian treaty for long-term bilateral economic cooperation from 1999 to 2008 and an agreement for cultural exchange.

November 5th

The Mazhilis Speaker of the former Kazakhstani Parliament Marat Ospanov was hospitalized in the Presidential Affairs Department clinic due to symptoms of hypertension. Sarybai Kalmurzaev, the head of the President�s Administration said Ospanov�s condition was very dangerous. At present, the deputy of the Mazhilis Speaker Vasily Osipov fulfills Ospanov�s responsibilities.

November 9th

Eight active Islamic preachers were arrested and then deported to Islamabad. At the recently completed Almaty mosque, the preachers had called followers to accept the light of �true belief� and distribute it further.

November 10th

In Astana, new members of the government were sworn in by the Kazakhstani President. The President placed several concrete tasks before the government. First, he said, it is necessary to overcome imbalances in the economy, second, to make the economy stable, and third, to settle a number of serious social problems of the population.

November 11th

British Airways celebrated the 2nd anniversary of regular Almaty-London flights. In honor of this anniversary, British Airways granted special discounts to all clients.

November 12th

The opening of the Kazakhstani-German University (KGU) was held in Almaty. The university was established by the initiative of the Kazakhstani-German Cooperation on Education Foundation. In the future, KGU is meant to be a center for exchange of scientific knowledge, and a coordinator of scientific research activity among Kazakhstani, Central Asian and European scientists.

November 13th

In Kyzyl Kugin district (Mangystau oblast) at the site of the former nuclear polygon Taisoigan, a large oilfield was discovered. Workers of the service company drilling wells near the village of Kondybai hit first oil at a depth of 476 to 480 m. Specialists then found a second stratum of oil 530 m. These two strata contain enough oil to give 10 to 45 tons daily. The estimated find is 210 million tons.

November 15th

The second Financiers� Congress was held in Almaty. It was timed to coincide with the professional holiday for financiers, celebrated on the day when the national currency was introduced. Also on this anniversary, the National Bank issued a new 5000 tenge banknote.

November 16th

The international informational agency Reuters celebrated its 5th anniversary of work in the Kazakhstani informational market. The Almaty Reuters bureau is a regional one and collects news from the five Central Asian republics.

November 17th

Negotiations for a three-year cooperation program were finalized by Kazakhstan and the IMF. A former cooperative program with the IMF had expired in July 1999. The Deputy to the PM Yerzhan Utembaev said the national government hoped that the program would be approved by the IMF Board of Directors on December 15, 1999. He said that the Kazakhstani government �optimistically looked forward to the three-years agreement with IMF.�

November 18th

Kazakhstani President Nursultan Nazarbaev participated in the OSCE summit. In his official speech, the President announced that �in this year for the first time in the 20th century, two truly democratic Presidential and Parliamentary elections have been held in Kazakhstan.� He also expressed his gratitude to OSCE for �its assistance and consultations regarding the elections.� OSCE had criticized both Parliamentary and Presidential elections for numerous violations of international standards and laws.

November 19th

In Ust-Kamenogorsk, police arrested 22 people, including 12 Russian citizens, in the office of the insurance company Aviatreck. The group was charged with plotting terrorist activity. According to KNB spokesmen, the group of Russian separatists intended to capture the regional administration building and the regional KNB offices, then rise in rebellion and declare a �Russkaya zemlya� republic in Eastern Kazakhstan oblast.

November 20th

The former Prime Minister, chairman of the Republican People�s Party of Kazakhstan (RPPK) Akezhan Kazhegeldin appealed to President Nursultan Nazarbaev to initiate a national dialogue. Kazhegeldin proposed discussing constitutional reform, legislation on elections and on referendums. The appeal was in response to the interview with President Nursultan Nazarbaev on the state TV channel Khabar (November 4th), when he had announced that he treated Kazhegeldin �in a friendly manner,� wanted him to return to Kazakhstan and was ready to cooperate with the opposition.

November 22nd

Prime Minister Kasymzhomart Tokaev presented the nation�s economic program for the next three years. The government, working with the National Bank, plan to cease inflation, liquidate imbalances in foreign trade and reduce the national budget deficit. By 2002, the Kazakhstani government expects to limit inflation to 4 or 5%, to reduce the budget deficit to 1.2%, and to decrease unemployment from 13 to 8%.

November 23rd

The US instituted sanctions to companies in Kazakhstan and the Czech republic for the sale of MIG fighters to North Korea. Forty fighters made in 1960s were delivered to Pyongyang in late summer. The Kazakhstani Ural metallurgical plant and the Czech company Argoplast are forbidden to export their products to the US. Washington also prohibited these companies from supplying weapons and military equipment to America. According to BBC, the US State Department means this to serve as a warning to other companies that plan to supply weapons to North Korea.

November 24th

On Wednesday the Halykh Bank of Kazakhstan (HB) opened a representative office in Peking, with support of Kazakhstani President Nursultan Nazarbaev. According to HB, the office is necessary to further widen and strengthen economic ties between Kazakhstan, China and other countries of South-East Asia.

November 25th

The Kazakhstani Parliament Mazhilis considered a law on labor supplemented by the Senate and approved it. According to the Mazhilis, the approved law has been changed according to market conditions, and contains methods for regulation of labor relations. The law also standardizes provisions against forced labor.

November 26th

Kazakhstan again issued Eurobonds for US$ 50 million, raising the total value of Eurobonds issued for Kazakhstan to US$ 275 million. This was the second tranche, following issuance of the main part of the debt on September 27th in London. ABN AMRO Bank NV (London) and Deutsche Bank AG (London) were leading managers of the project, which attracted 10 international financial institutions as co-managers.

November 27th

In Kazakhstan, the Pavlodar refinery in northern Kazakhstan started to work after a month-and-a-half stoppage. Three days later the plant received 100 tons of oil from the Kumkol oilfield in Kzylorda oblast, in southern Kazakhstan.

November 29th

Pokolenye, the pensiors� movement, gained new legal status by registering as the Association of the Public Movement Protecting Pensioners. The Association�s objectives remain unchanged. One of their main tasks is to continue fighting for repayment of the government�s debts to pensioners. Leader Irina Savostina said that the Association hoped to realize its goals with the help of the government.

November 30th

In Astana, new parliamentarians were solemnly handed mandates, in advance of their December 1st elections of chairmen of the Senate and Mazhilis. Marat Ospanov had been expected to be the Speaker of the Lower House, but he remained in a coma following an apoplectic stroke. Unofficially, several individuals were considered able to head the Mazhilis: the first Kazakhstani PM Uzakbai Karamanov, elected in Kzylorda election district 38, and the former deputy of the Chairman of the Supreme Soviet of the Kazakh SSR, Kairala Yerezhetov.


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