KAZAKHSTAN

KAZAKHSTAN-IN-BRIEF

KAZAKH PRESIDENT MADE A STATEMENT SAYING THAT HE HAD NEITHER ACCOUNTS IN SWISS BANKS NOR PROPERTY ABROAD.

Kazakh president told journalists of Khabar News Agency, led by his own daughter Darigha, that he had no accounts in any of banks in Switzerland. He also said that he had no property in the West. New York Times published an article last month saying that it was more likely that President Nazarbayev had an account in one of the Swiss banks with millions of dollars on it received from that belonging to the Kazakh government. President Nazarbayev told Khabar News Agency journalists on November 2, that he was not going comment the case again in future.

BELARUSSIAN PRESIDENT IN ASTANA. President of Belarus - Alexander Lukashenko started his official visit to Astana today, November 4. He arrived to the Kazakh capital last night and gave a short briefing at the airport. President Lukashenko told correspondents of RFE/RL that he was going to sign a big number of documents on bilateral cooperation with his Kazakh counterpart Nursultan Nazarbayev. But today, November 4, the sides signed only two agreements, which were Kazakh-Belarussian Agreement on the long termed bilateral economic cooperation for 1999-2008, and agreement on cultural exchange. Belarussian President expressed his country�s interest in getting Kazakh oil and other mineral resources. Kazakh leader Nursultan Nazarbayev told journalists after the talks that Kazakhstan was ready to export wheat to Belarus and buy tractors in exchange. President Lukashenko is scheduled to meet students of Astana�s Eurasian University later today. His official visit will end tonight.

DEFENSE MINISTER OF KAZAKHSTAN, KYRGYZSTAN, RUSSIA, TAJIKISTAN, AND UZBEKISTAN MEET IN FERGHANA. Correspondents of RFE/RL quote local mass media as reporting that Defense Ministers of Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan started talks in Ferghana City of Uzbekistan on November 3. Results of the joint Russian - Central Asian military maneuvers held in the area between October 27 -November 2 are being discussed at the negotiations reportedly. The military exercises called �Southern Shield� were held in order to polish joint efforts �against possible common enemies�. The issue of the religious militants threatening the stability in the region is one of the main focuses of the local politicians currently. After the bloody events in South Kazakhstan in August this year, when a group of religious extremists managed to enter the Kyrgyz territory from the neighboring Tajikistan and took hundreds of hostages in Batken region, Kazakh authorities started strengthening south borders with Uzbekistan.

CHIEF OF THE KAZAKH CENTRAL NATIONAL BANK HOLD PRESS CONFERENCE. Grigoriy Marchenko - Chief of the Kazakh Central National Bank told journalists yesterday, November 3, that 1,3,5,10,20, and 50 Tenges bills would be replaces by coins starting next year. Kazakh national currency - Tenge is reported as getting more stable this week. The current rate is 140 Tenges for $1. Last week the rate was 143 Tenges to $1.

PRO-GOVERNMENT PARTIES HELD GATHERING IN ALMATY.

Correspondents of RFE/RL report from Almaty that new members of the Kazakh Parliament elected from such pro-government parties as Otan, Civic Party and Agrarian Party, held a gathering in Dostyq (Friendship) House of the former Capital yesterday, November 3. The gathered politicians harshly criticized those ex-candidates to the Parliament who failed to be elected and who kept accusing local and Central Election Commissions, as well as local administrations of numerous violations of the Kazakh laws and international standards during the elections. According to activists of Otan and Civic party the opposition�s demands were �illegal� themselves.

Nov 4 (Radio �Liberty�)


Inform-site on the Kazakhstan tax legislation opened

Aia MYRZABEKOVA

ALMATY, Nov 4

(THE GLOBE)

The site opened by Deloitte&Touche in Internet presents a new type of services. The site contains not only the complete information on the tax legislation, but also comments and explanations by leading experts. This Internet section touches aspects of the total national economic system. Not only investors to Kazakhstan will be interested in this site, but also investors to all Central Asian region.

The new site was designed by ACTIS company, which has already gained the authority in the Kazakhstan market.

On behalf of the editorial staff I would like to add that the site is a kind of informational bureau, which will be interesting for both specialists and journalists, as it will significantly simplify their search for business and financial news of the republic.


Exhibition

�Interfood` 99�

Peter NOVIKOV

ALMATY, Nov 3

(THE GLOBE)

 

�Interfood is another way to attract investments and to widen business contacts. And it is an additional chance to exchange information and new technologies, which is as important as finances,� the vice-Minister of Agriculture Myrzakhmetov said.

According to organisers of the exhibition, 75% of participants consider Kazakhstan as a promising direction to widen their operations and penetrate to a new market.

At the press conference devoted to the opening of the international exhibition Interfood�99, the company-organiser said, that of 100 companies represented at the exhibition 50% were foreign companies, a bit less � local producers, the rest � joint ventures.

This exhibition is the second one. It is devoted to foodstuff, as well as to the latest processing technologies. Producers also pay a lot of attention to packaging, as it is not just an integral part of products, but an important factor of sanitary.

The exhibition is marked with a wide assortment of different drinks: juices, wines, beer, etc. This year Interfood focused on equipment for bars, restaurants, hotels, as well as on agricultural inventory.

Mr. James Napier, the director of Interfood ITE group project said, �For six years we held similar exhibitions in Russia, Ukraine and Azerbaijan. This is the second exhibition in Kazakhstan.�

According to the organisers, this year the exhibition has strengthened its positions and authority: more than 100 companies from 15 countries of the world came to the exhibition.

During the exhibition the Agency on Standardisation, Metrology and Certification, the investment agency Kazinvest, the Food Institute and the Ministry of Agriculture will hold a number of workshops on development of the food market and the world experience.

The society on protection of consumers� rights �Adilet� is going to hold the event �People�s trademark� devoted to Kazakhstani producers.


Scheme of purchase of grain simplified

Prodcorporation will purchase all grain

Erkanat ABENI

ASTANA, Nov 2

(THE GLOBE)

�The scheme of grain purchases simplified according to supplementation to the governmental decree on purchase of the harvest,� the President of Prodcorporation announced on Tuesday in Astana.

According to Nurlan Smagulov, the Competition Commission abandoned. People do not need to bring documents to Astana. Corresponding permission given within 24 hours from the moment of receipt of the required documents. Before this took 40 to 50 days. The structure of regional commissions has changed. Now they established by regional Akims. Commissions consist of a director of local agriculture department, representative of tax inspection, and person from local Akimat. Regional commissions (working groups) will determine volumes of purchased grain and prepare the list of grain sellers.

�Working groups are closely co-operate with the National Farmers� Federation. Representatives of the Federation are to be included into working groups as consultants,� Mr. Smagulov said.

Before no regional representatives of Prodcorporation included into the purchase scheme. �We were satisfied with this, but in the last year the corporation failed to purchase necessary volumes of grain. As of October 20, 1998 we had no order,� the former businessman says. In this year the situation changed under support of the President. Now Prodcorporation will purchase all grain.

Grain will be bought at the state price US$ 75 and 70 per ton depending the quality of wheat (THE GLOBE, 02.11.99). In this regard Nurlan Smagulov said: �For the first time we use different prices. Before peasants had no stimulus to produce highly quality wheat. Now the situation is different.�

According to Mr. Smagulov, in this year they will purchase grain only from basic grain elevators approved by the Ministry of Agriculture, because in the last year many elevators compromised themselves by numerous thefts.

As far as the further sale of grain is concerned, the President of Prodcorporation said at present the world grain market is stagnant: China almost does not import, India began to export grain. There are a few big grain purchasers: Iran (the corporation plans to supply 200,000 tons of grain to this country), Morocco, and countries of the Persian Gulf. �But on the other hand, a small harvest in Russia gives us a chance to increase export to Russia up to 300,000 tons. Moreover, Azerbaijan, which previously purchased grain from Russia, will buy our grain. Uzbekistan also returned to our market. We are going to supply grain to Saudi Arabia and highly-quality wheat � to Europe,� Mr. Smagulov stated. The first contract with Iran for 25,000 tons has been signed.

The head of the corporation said presently the price of Kazakhstan grain was about US$ 104 to 110. �In CIS we have the unique situation: we are far from the sea, that is why we have to trade at world prices, but not supplying grain to the world market.�

Boris Kusanov, the chairman of the National Farmers� Federation of Kazakhstan thinks the purchase scheme still has some defects: the list of grain elevators is limited. Besides, they are unevenly distributed in regions. There is also transport problem.

Mr. Kusanov said in this year with unique climate conditions, farmers had produced more than 3 million tons of grain. �At present there are about 90 thousand farms in Kazakhstan, and the problem of sales is especially urgent,� he emphasized.


Russia and China: Technology Meets the Politics of Space

`Nov 4 (Stratfor)

Summary

The explosion of a second Russian rocket in Kazakstan, while only a short-term obstacle to Russian space projects, may have important side effects. It creates an opportunity for Russia to turn to China for increased cooperation in space, with important technological ramifications. Strategically, this affords Russia the opportunity to strengthen a budding alliance with China � while simultaneously keeping a foothold in Kazakstan.

Analysis

Russia announced Nov. 3 that it would not demand Kazakstan lift the ban imposed on launches at the Baikonur launch pad, after the recent explosion of a Russian rocket there. Russia�s decision could be an indication that it will seek support for its space program elsewhere.

The loss of the rocket is yet another phase in the continuing decay of Moscow�s space program. Beyond the business of satellite launches, this incident will help warm broader technological and political ties between Russia and China. Russia is likely to use the accident to accelerate bilateral space agreements with China.

The Oct. 27 explosion at Baikonur was the second in less than four months. Both were caused by a Russian Proton rocket malfunction shortly after takeoff. In the most recent accident, a Russian communications satellite was atop the booster; the booster�s explosion scattered fragments across the unpopulated region of northeast Kazakstan. Local worries have arisen over the potential spill of toxic chemicals before these crashes, triggering concerns over health and the environment.

The government of Kazakstan has responded forcefully � and threatened the Russian satellite launch program. In both instances, local authorities banned any further launches until investigations are completed. After the first crash, the ban lasted two months and Russia was forced to pay over $400,000 in compensation, including the cost of health testing for residents.

Kazakstan will ask for at least as much this time, but Russia has much lower estimates for appropriate compensation. After initially refusing financial responsibility, Russian officials decided Nov. 3 that damages were approximately $28,000. It is not clear when Russia will be able to use this facility again; Russia has not yet announced how it will accommodate Baikonur launches scheduled for November and December.

The temporary loss of the launch is likely to motivate Russia to speed into a new space partnership with China. In September, Russia and China signed a space cooperation protocol in the areas of applied space research, long-term programs for piloted research, fundamental research and elements connected with the creation of spacecraft, according to the U.S. National Aeronautics and Space Administration.

Russian Deputy Prime Minister Ilya Klebanov has also hinted that Russia and China could engage in a joint space station project. This was followed by an Oct. 18 announcement that Russia would help China carry out its first manned space flight, scheduled for early 2000. On Oct. 27, the two countries struck a deal on specific plans for scientific cooperation.

Long-term cooperation between Russia and China could lead to an important shift in technology between the two nations. Russia�s space program has been experiencing a steady decline in funds and advancement � while a better-funded Chinese effort ranks as a top national priority. Russia has 30 years worth of knowledge to share with China, which has the resources at its disposal. Each also possesses differing technologies and expertise that can be shared for mutual advantage.

This is likely to become a concern to the West. Specifically, Russia is involved in the International Space Station (ISS) project with the United States and other nations. The United States, in particular, will likely be wary of cooperation with the Russians for fear they will share technology with China. If this leads to an actual dispute, Russia may even break off from the ISS and pursue its project with China. Alternately, China may have the resources to revive the Mir station before it�s too late.

Russia and China also share an overriding interest in Central Asia, particularly Kazakstan. Both countries realize the economic and strategic value of maintaining influence over their mutual neighbor. Central Asia is rife with Islamic terrorism and its internal conflicts threaten to brim over into both Russia and China. Also, Kazakstan contains energy resources, and the pipelines to transport them, needed by both its large neighbors.

This situation creates both a need and an opportunity for cooperation between Russia and China. Both nations continue to seek comfort in cooperation, binding their two weaker powers in an attempt to balance out the stronger United States.

Increasingly linked space programs will yield benefits at little or no cost to either nation. In light of the recent impediment caused by the accidents at Baikonur, the timing is perfect for Russia and China to accelerate their joint efforts in space.


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