BUSINESS/FINANCE

Obligatory marking of products will be introduced in autumn

ALMATY, July 3

(THE GLOBE)

�From October 1, we undertake a very important step to provide additional protection for the local market. We will introduce obligatory marking for all products,� the Minister of Energy, Industry and Trade announced at a press conference in Almaty.

According to Mukhtar Ablyazov, this measure is required to protect the domestic market from the poor quality imported goods that evade the customs posts.

Mr. Ablyazov stated that all information about a product will now be printed in two languages (Kazakh and Russian). This will allow local producers to both strengthen their position in the local market and �capture� new sales markets for Kazakhstan products. Illegal importers will be gradually forced out of the Kazakhstan market.

Beginning on October 1, only official importers who directly mark products intended for sale in the country will be able work in Kazakhstan. Products imported into the republic�s territory will be certified by the local organisations. These measures will lead to a significant reduction of illegally imported products, which in its own turn is supposed to improve the situation regarding tax revenues to the budget.

If marking is absent, the product will be forbidden to be sold in the internal market. The Minister emphasised that importers would have definite time to prepare for these innovations.

�It is a long-term program. We do not exclude that there will be various falsifications of products marking, but we will struggle against it,� Mr. Ablyazov said.


�Radio Liberty� in Kazakh

From the editorial staff: in the last week there were two big events: the discussion of the oil proposed pipeline by the �Kaztransoil� and Chinese Oil Corporation, and the participation of the President of Kazakhstan in the economic forum where he gave an interview to journalists. In the today�s issue THE GLOBE presents materials from the Kazakh Service �Radio Liberty� (KSRL). These materials were devoted to these two events and KSRL has its own opinion on these events. It seems to us that both materials will be interesting to the Reader.

Whose oil will flow through the new pipeline?

In the last week the National Oil Transportation Company �Kaztransoil� and the Chinese State Oil Company discussed the proposed �Western Kazakhstan-Western China� pipeline which is supposed to be built from western Kazakhstan to the town of Karamai (Eastern Turkistan), Radio �Liberty� announces. Having considered the economic and technical feasibility, as well as the appropriateness of the pipeline, the parties approved the project and submitted it to the governments of the two countries for further consideration.

The length of the pipeline is 2900 km. The pipeline will go through Atyrau-Aktobe-Kumkol-Karaganda-Balkhash-Jungarian Gates. The annual capacity of the pipeline will be 20 million tons of oil. At present the total volume of the oil output in the republic is approximately equal to the above-mentioned figure. In this case, the correspondent states, there is a question: is the pipeline to construct US$ 3 to 3.5 billion necessary?

In 1997, Kazakhstan and China signed an agreement on the transportation of oil according to two projects: from Western Kazakhstan to Sintsyan and from Mangistau to the Iranian border through Turkmenistan. According to the calculations of the former heads of the republic, these projects were to bring a great profit. The journalist emphasises that 2 years have passed since that time, but no significant changes are observable in the Kazakhstan oil industry.

Chinese companies purchased 60% of the stocks of the JSC �AktobeMunaiGas� for US$ 325 million. They undertook the responsibility to invest US$ 4 billion in the development of the enterprise within 20 years. At the same time, the Chinese people have not hurried to fulfil their promise, explaining that they will contribute money after the pipeline is built, the KSRL journalist says.

The settlement of the issue regarding the disputable bordering sites in favour of China deprived Kazakhstan of a means required to protect its interest. Now Kazakhstan do can nothing but agree to the Peking conditions.

�The worsening economic situation in the republic forces Kazakhstan to hope for foreign investments, including Chinese ones. If after the approval of the two governments the pipeline is built, then we should ask another question: whose oil will flow through the pipeline?

Kazakhstan party believes that it will be ours, but China seems to have another opinion, as oil is planned to be pumped from the Kenkiyak and Uzen oil-fields privatised by this country.

It occurred so that China will transport its own oil to their country. Kazakhstan will gain profit only from 40% of stocks of �AktobeMunaiGas�. Bitter fruits of the agreement signed in 1997 the republic will gather in the 21st century, during first 20 years of the next century when according to the responsibility, Chinese men will invest to the western Kazakhstan, they will have time to take all oil from the country* .�

According to specialists, oil reserves in Kazakhstan will end in 2030, when �Kazakhstan 2030� strategy is to be realised. Consequently, if Kazakhstan does not take corresponding measures, it may become a poor agricultural country after the natural resources are exhausted.

The problem of the bordering rivers and issues regarding oil are one of the most important components of Kazakhstan-Chinese relations. The correspondent thinks that the 21st century may become the beginning of the contradictions of the countries� interests and distrust between the countries. Kazakhstan and the republics of Central Asia are in the difficult economic situation, and China is going to influence them with the help of its emperor power, the journalist emphasises.

President Nazarbaev�s interview to journalists in Austria

In the last week Nursultan Nazarbaev met journalists at the international economic forum in the Austrian town of Zaltsburg, the Kazakh Service of Radio �Liberty� (KSRL) announces. The President also answered the questions of the correspondent of the Austrian Radio.

Speaking about the confrontation of the Kazakhstan government and the Parliament (the latter was against of the sequestration of the budget), Nazarbaev said: �The society never applauded when we had to reduce the budget, especially when it touched the social articles. Naturally, the Parliament was not too glad with it.�

It is known that on June 30, Almaty pensioners came to the square demanding timely payment of their pensions and restoration of their privileges. One of the pensioners telling about his life accused the President of Kazakhstan that it was him who doomed the pensioners to poverty. According to the pensioner, the President and people surrounding him are not properly spending the foreign loans, but distribute money between each other. �How can it be interpreted otherwise, if pensioners lost their last privileges, and now controllers and drivers literally throw them out from the transport referring to the President�s decree.�

On the next day, on July 1, the actions of protest were held in Ust-Kamenogorsk. Pensioners, who did not receive pensions for the last three months, demanded the dismissal of the regional Akim and the Minister Korzhova.

The correspondent of KSRL emphasises, that at the time when such events happen in the republic, Nazarbaev announces at the meeting with journalists: �The rigid economy and sequestration of the budget did not touch social payments to pensioners and budget organisations.�

Once speaking before deputies, Nazarbaev supported the initiative of the Akim of Almaty region �Gold contributions � to the gold fund�, that according to the journalist, provoke an opinion that this idea belongs to the head of the state. According to the data of foreign informational agencies, this action is held all over the republic, and in regions Akims make people give gold by force. Rejecting these statements, the President announced that it was not the policy of the government and not the order of the high ranks, but the voluntary action. �Of course, if people who have gold helped to settle social problems contributing gold, we would be only glad,� the President stated.

Completing his speech before the journalists, Nursultan Nazarbaev touched the next Parliamentary election: �In this year for the first time deputies will be elected according to the parties� lists. Naturally, in the pre-election period there will be significant tension of political forces. As the head of the state I should lead the people to democracy, which we never had before.� Despite the serious economic crisis, the President stated that moments which were the most difficult for the economy had passed, and soon the life in t he republic would improve, the correspondent says.

THE GLOBE basing on materials of the Kazakh service �Radio Liberty� June 28 to July 4

* � � is quoted from Radio �Liberty�


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