A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO. 443 / FRIDAY, FEBRUARY 12, 2016

Turkish PM Brings Message of Economic Cooperation to Astana

Election Commission Prepares for Upcoming Vote and Beyond

Also In The News

Kazakhstan Improves Position on the Index of Economic Freedom

In Focus:Foreign Policy Priorities

Kazakh-Iran Hold First Post-Sanctions Business

Forum in Iran

Turkish PM Brings Message of Economic Cooperation to Astana

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Developing closer bilateral cooperation in transport, energy, tourism and infrastructure and strengthening political dialogue and cultural exchanges were major topics of discussion during the official visit of Prime Minister of Turkey Ahmet Davutoglu to Kazakhstan Feb. 5–6, but wider international issues, including tensions between Turkey and Russia, could not be left off the agenda.

During their meeting, President of Kazakhstan Nursultan Nazarbayev commented that the prime minister’s visit illustrated the significance of Turkey, a fellow Turkic nation, in the Central Asian state’s multivector foreign policy. He also noted trust and cooperation between Turkey and an Kazakhstan that formed over 25 years of developing bilateral relations.

“This year Kazakhstan is celebrating its 25th anniversary of Independence. Since the first days of our sovereignty we have been making every effort to bring together our brotherly nations. Working closely with the leadership of Turkey we have managed to restore the relations between Kazakhstan and Turkey. We initiated the establishment of the Turkic Council. At the moment, the International Turkic Academy has opened its doors in Astana where scientists study our shared history and culture. Turkey is very important for Kazakhstan, and we will never stop our cooperation policy,” he said.

However, conflicts in Turkey’s neighbourhood and strained relations between Turkey and Kazakhstan’s major trade partner, Russia, are having an impact on Kazakhstan, the President said.

“ Today we need to look for the ways out of the situation. The reasons for everything that is happening today are still unclear. The conflicts in Syria and Iraq have demonstrated the lack of unity between the Muslims. The moment has come when a conflict between the Sunnis and the Shiites is becoming more real as it had been predicted in the West. The tension between Turkey and Russia is a great challenge for us as well. Both countries are our important allies and partners,” Nazarbayev stressed

Davutoglu emphasised the cultural closeness of the two countries, saying that he always regards trips to Kazakhstan as coming to another home. He congratulated Kazakhstan on the anniversary of its independence and praised Nazarbayev for his work in building a solid relationship between Kazakhstan and Turkey.

“Relations between Kazakhstan and Turkey are intensively developing in all directions,” the prime minister said. “We have implemented joint projects in transport, energy and other fields, and trade relations have been strengthening. If Turkey is a gateway for Kazakhstan to Europe, Kazakhstan for Turkey is the way to Eurasia,” Davutoglu said during talks with Nazarbayev.

Prime Minister of Kazakhstan Karim Massimov commented that Davutoglu’s first visit to Kazakhstan at the level of prime minister showed the progress in the two countries’ relations in his meeting with Davutoglu Feb. 6, Kazinform reported. Davutoglu had visited Kazakhstan multiple times as Turkey’s foreign minister.

Nazarbayev and President of Russia Vladimir Putin discussed the deterioration of Russian-Turkish relations in a phone call two days after Davutoglu’s visit, with the Russian leader repeating his position that the current difficulties in bilateral relations were instigated by the Turkish side, therefore he expected Ankara to take steps to normalise the relations. Nazarbayev and Putin affirmed that bilateral cooperation between Kazakhstan and Russia during this complex period will continue to be based on confidence and the traditional friendship between their nations.

Relations between Moscow and Ankara have been strained since Turkis air force shot down a Russian military plane near the Syrian-Turkish border in late November, saying it violated Turkish airspace. Nazarbayev has repeatedly stated that the standoff is becoming a problem for the region and called upon both sides to restore the earlier level of contacts and cooperation.

“Relations between Kazakhstan and Turkey are intensively developing in all directions. We have implemented joint projects in transport, energy and other fields, and trade relations have been strengthening. If Turkey is a gateway for Kazakhstan to Europe, Kazakhstan for Turkey is the way to Eurasia.”

- Prime Minister of Turkey Ahmet Davutoglu

President Nazarbayev (right) and Prime Minister Davutoglu (l) during recent talks in Astana Photo credit: akorda.kz

Kazakh-Iran Hold First Post-Sanctions Business Forum in Iran

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Expanding bilateral trade and economic relations were among the topics on the table Feb. 6-8 during the Kazakh-Iranian business forum. The symposium, held in Tehran, was the first major business event between the two nations after the lifting of the economic sanctions which have been imposed against Iran since 2005.

Organized by Baiterek National Holding, the forum was supported by the Iranian Ministry of Industry, Trade and Mines and the Kazakh Embassy in Iran. The event was attended by approximately 270 Kazakh business people representing more than 100 companies, including 40 Baiterek partner companies, four of the nation’s main corporations (Alageum Electric, Caspian Beverage Holding, Eurasian Food Corporation and Zhigermunayservis) and nearly 40 companies operating in sectors such as manufacturing, food processing, machine building, petrochemical and agriculture. Representatives of the akimats (governors’ offices) of Aktobe, Kyzylorda, Mangystau, and North and South Kazakhstan regions and management of the National Chamber of Entrepreneurs of Kazakhstan were also present. More than 500 individuals represented Iranian public and private firms, as reported by The Astana Times.

The Kazakh delegation was led by Minister for Investment and Development Asset Issekeshev. He and Baiterek Holding CEO Kuandik Bishimbayev met with the Iranian Ministers of agriculture, oil, industry, trade and mines and roads and urban development and Vice President for Science and Technology Soren Sattar. Their talks centered on “the opening of the Euro-Asian market” for both, where “Kazakhstan can be one step whereby the Iranians may enter that market and vice versa,” said Kazakh Agency for Foreign Direct Investment Vice President Almas Aidarov in an interview with EFE, the Spanish multimedia news agency.

Issekeshev noted 900 Iranian companies are active in different fields, most notably the chemical industries. Kazakhstan imports certain fruits, vegetables and other goods from the Middle Eastern country.“We will provide Iranian companies with any permit they need to start business in Kazakhstan,” he added.

Plenary and individual meetings in the B2B format were held within the framework of the forum. The Kazakh and Iranian business communities considered issues to strengthen cooperation in priority portions of the economy and offer measures to eliminate barriers for implementing joint commercial projects.

Minister of Investments and Development Asset Issekeshev led the Kazakh delegation at a recent Kazakh-Iranian business forum in Tehran. Photo credit: 24.kz

The Kazakh entrepreneurs displayed interest in the chemical and petrochemical production, construction, agriculture, textiles, electronics and transport fields, as well as finance and banking. Alageum Electric, Eurasian Foods, Oil Affairs, Oxy Textile and other domestic companies discussed expanding export deliveries to the Iranian market. Special attention was paid regarding shipments of steel, building materials, pellets, grains and other products.

“We’re here because we want to take advantage of opportunities for our companies. During the visit, we’ve spoken about how we’re all open and interested in expanding our capacities. We’re two relatively-large economies in which there is still much room to develop,” said Aidarov.

A memorandum of understanding between Baiterek Holding and the National Development Fund of Iran defining the priorities of the companies’ joint work was among the documents signed to conclude the forum. In particular, the parties will cooperate in industrial and innovative development, informational technology and other industries. The partnership aims to support investment and achieve its impact in accordance with the economic development plans of the two countries.

“We’re here because we want to take advantage of opportunities for our companies. During the visit, we’ve spoken about how we’re all open and interested in expanding our capacities. We’re two relatively-large economies in which there is still much room to develop.”

- Kazakh Agency for Foreign Direct Investment Vice President Almas Aidarov

Election Commission Prepares for Upcoming Vote and Beyond

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In the midst of preparing for the early elections to the Mazhilis, Kazakhstan’s Central Election Commission (CEC) Chairman Kuandyk Turgankulov sat down with The Astana Times to discuss the progress to date and plans for the near future. The following is a summary of his remarks.What work has the CEC undertaken since the head of state signed the decree to hold early elections?

The commission approved the priority regulations necessary to organise the electoral process, sent invitations to CEC heads in 18 foreign countries and adopted documents governing the activities of international observers.

We held a national seminar on organising and holding elections, discussing all the nuances in depth and providing detailed explanations on election legislation. Extensive work was also initiated to inform the public about the upcoming elections, focusing specifically on civic engagement to encourage voters to head to the polls on Election Day.

How many people will be able to exercise their right? What is the number of voters in the country?

In accordance with the election law, local executive bodies provide information about voters annually by Jan. 1 and July 1. According to the register, there are 9.792 million voters.

The main task is to ensure preparation of reliable voters’ lists for each polling station, so every citizen can exercise his or her constitutional right. Voters will be able to access the lists by Feb. 28 and the registers will be continuously updated.

An appeal was made to the people of Kazakhstan to demonstrate their civic engagement. Starting March 4, voters can come to their polling station and verify their name on the list.

In light of the current economic situation, financing is one of the most widely-discussed issues. What is the cost of the elections?

In order to hold elections of Mazhilis and maslikhats (local consultative bodies) deputies at all levels, we will need 7 billion 985.3 million tenge (US$22.2 million).

Approximately 53 percent will be spent on salaries for election commission members. In accordance with the legislation, commission members who are public officials will not be paid.

About 17.4 percent is allocated for pre-election campaigning for maslikhat deputies. The state legislation guarantees equal allocation for mass media programmes. Each candidate shall receive funds for a 15-minute TV speech, 10-minute radio broadcast and two newspaper articles.

The remaining expenditures are for printing ballots, making audio and video clips for TV and radio and billboard placement.

Election preparations have just started. Where will the CEC’s work focus in the coming period?

There are three priority areas, beginning with the political parties. All parties participating in the election must hold pre-election congresses, approve their lists and present them to us. We will then verify each person on the list using the procedure regulated by our constitution and election legislation.

Mazhilis deputies must be at least 25 and have been a citizen of the country and permanent resident for the last 10 years. They are also subject to verification by tax and other state authorities.

Setting candidate requirements and their subsequent verification is a generally-recognised international practice used in all democratic countries.

After completing the verifications, we will register the political party’s list and admit it to the pre-election campaign.

Secondly, we will organise the election commissions’ activities. Local periodicals published the member lists of the precinct commissions and we coordinated with the maslikhats to fill any vacant seats. The same work will be completed by the district and territorial commissions.

We will soon announce electoral boundaries in all regions, so voters will know the location of their polling station in advance.

The third area is procedural guidelines. We plan to organise workshops in all regions for election commission members and heads of the national media. Campaign training will be conducted for representatives of political parties involved in the elections.

We are also working with international organisations regarding electoral observation. Particular attention is being paid to publishing manuals for all participants.

Kazakhstan’s Central Election Commission recently opened a press centre ahead of the forthcoming parliamentary elections. Photo credit: election.gov.kz

Kazakhstan Improves Position on the Index of Economic Freedom

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Kazakhstan was ranked 68th out of 178 countries, one place better than last year, in the annual Index of Economic Freedom compiled by the Washington-based Heritage Foundation.

Central Asia’s largest economy was assessed as “moderately free,” with an overall score of 63.6 out of a possible 100, and ranked in 12th place in the Asia-Pacific region of 42 countries. The country is ranked within one or two points of the Philippines, Samoa, Thailand and Panama and has surpassed many nations including France (75th), Saudi Arabia (78th), Italy (86th), Brazil (122nd), China (144th), Russia (153th), Belarus (157th) and Ukraine (162nd), The Astana Times highlighted.

The Index of Economic Freedom is calculated using 10 qualitative and quantitative factors grouped in four categories and ranked on a numeric scale from zero to 100. The four factors are rule of law (containing the principles of property rights and freedom from corruption), limited government (comprising fiscal freedom and government spending), regulatory efficiency (business freedom, labour freedom, monetary freedom) and open markets (trade freedom, investment freedom, financial freedom).

According to the index, Kazakhstan earned better scores this year in handling property rights (earning 30 points out of 100), freedom from corruption (29 points) and government spending (87.7 points). Kazakhstan’s highest scores came in government spending, fiscal freedom and labour freedom.

Among Kazakhstan’s major achievements were trade freedom and the management of public finance. The index also praised regulatory reforms aimed at streamlining business startup processes (which now take six steps and require no capital, according to the report) and the country’s large-scale privatisation concept, even as it commented that implementation processes on the latter were lagging. Procedures made property transfer and registration easier were also praised.

The need for economic diversification and the reduction of the country’s dependence on exports remain significant challenges.

Concerning the rule of law, the study noted large-scale corruption at all levels of government, including throughout the judicial system.

New legislation providing for stiffer penalties for giving and taking bribes was noted as a positive step, the report said.

More efficient work of government agencies is needed to improve the public debt, which now comprises about 15 percent of gross domestic product, the Astana Times wrote. This is especially vital in today’s climate of low commodities prices.

The leaders in economic freedom as ranked by the Heritage Foundation remain the same this year as in 2015: Hong Kong, Singapore, New Zealand and Australia. The top 10 free economies also included Switzerland, Canada, Chile, Ireland, Estonia and the U.K.

The Index of Economic Freedom is an annual measure of economic freedom around the world and is published jointly by The Heritage Foundation and The Wall Street Journal. The ranking has been around for 22 years now. Kazakhstan has participated in the ranking since 1997.

As expressed by Ryan Olson, a researcher in The Heritage Foundation’s Centre for International Trade and Economics, the ranking can be a vital tool for a large constituency, from investors to students to policymakers and beyond. With its help, individuals can “improve their businesses, advocate good public policies and help build a society where freedom and prosperity flourish”.

Kazakhstan was ranked 68 out of 178 countries, one place better than last year, in the annual Index of Economic Freedom compiled by the Washington-based Heritage Foundation.

Kazakhstan scores above world and regional averages in the Heritage Foundation’s Economic Freedom Index. Graph taken from heritage.org

In Focus: Foreign Policy Priorities

Strengthening UN & Int’l Security

Cooperation between Kazakhstan and ESCAP has intensified significantly in recent years

Kazakh FM Erlan Idrissov met with UN Undersecretary-General and Executive Secretary of the UN Economic and Social Commission for Asia and the Pacific (ESCAP) Shamshad Akhtar Feb. 8 for a discussion centred on the intensification of cooperation between Kazakhstan and the ESCAP.

To strengthen the regional sustainable development efforts of small island developing countries, in 2014, Kazakhstan, with the assistance of the ESCAP, extended support to 12 countries in the Pacific region to promote biogas-based renewable energy. In addition, last year, the Kazakh Ministry of Energy and the ESCAP signed a memorandum on the joint implementation of sustainable development priorities within the Green Bridge Partnership Programme.

The parties discussed the implementation of the President Nazarbayev’s initiative to establish an international UN centre for the development of green technologies and investment projects in Astana to be housed in infrastructure for EXPO 2017.

Akhtar visited Kazakhstan to prepare for the 72nd session of the ESCAP, which will be held May 15–19 in Bangkok and devoted to the development of Central Asia and landlocked countries. The event will be held as part of the implementation of the Sustainable Development Goals until 2030.

Discussion of current challenges in trafficking of human beings raised by representative from Kazakhstan

The Permanent Mission of Kazakhstan to the United Nations held an interactive discussion entitled “Responding to Current Challenges in Trafficking in Human Beings” Feb. 8, with Special Representative and Coordinator for Combating Trafficking in Human Beings of the Organisation for Security and Cooperation in Europe (OSCE) Ambassador Madina Jarbussynova addressing participants as the keynote speaker.

The event gathered a wide range of representatives of the diplomatic community of OSCE participating states and OSCE partner-countries for cooperation from the Mediterranean and Asian region based in New York. Members of the UN Group of Friends United against Human Trafficking were also present. The delegates exchanged views on the challenges of reducing the incidence of human trafficking by strengthening and coordinating the efforts of OSCE and the UN.

This week Jarbussynova and the Permanent Mission of Kazakhstan to the UN will participate in the High Level Meeting organised by the UN Group of Friends United Against Human Trafficking and UNODC, entitled “In Stronger Partnership and Better Coordination to End Human Trafficking: Eradicating Modern Day Slavery through Sustainable Development.”

Hosting Astana Expo 2017

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EXPO 2017 to select best achievements in energy

The selection of best practices in the field of energy for the Energy Best Practices Area pavilion (eBPa) has launched on www.ebpa2017.org/ebpa.The pavilion aims to provide a showcase for the best technologies and proposals under thematic areas such as renewable and alternative energy, energy efficiency and traditional energy, energy storage and distribution, and the use of energy of natural resources.Corporations and businesses, international and public organisations, educational and research organisations, individuals and inventors can participate in the eBPa. Each application is evaluated by at least three experts, who are selected based on their experience and competence. Members of the International Selection Committee are Nobel Laureate in Physics George Smoot, Director General of the ITER (International Thermonuclear Experimental Reactor) Bernard Bigot, Director of Energy and Extractives Global Practice Charles Feinstein, Director General of TERI University Rajendra Pachauri and other eminent adjudicators. (expo2017astana.com)

Samsung Becomes official partner of EXPO 2017

The Astana EXPO 2017 national company and Samsung Electronics Central Eurasia have signed a memorandum of cooperation under which Samsung Electronics has become an official partner of EXPO 2017.

In the nearest future, the Astana EXPO 2017 company and Samsung Electronics Central Eurasia intend to carry out joint activities to promote the expo.

In the form of sponsorship, Samsung Electronics Central Eurasia is ready to provide Astana EXPO 2017 favourable conditions for the supply of goods and services for the needs of the expo.

To date, 10 large companies have already become official sponsors of EXPO 2017 event, including NCOC, Shell, Air Astana, Cisco Systems, Kazkommertsbank, Samruk Energy, Kazpochta and more. (expo2017astana.com)

Welcoming Investment

Carrefour opens its first supermarket in Kazakhstan

Carrefour, the French chain of supermarkets, has opened its first store in Kazakhstan on Feb.11. The store is located in the new Grand Park Almaty, forbes.kz reported. It was earlier announced to be 12,500 square metres large.

Moreover, Almaty Akim (Mayor) Bauyrzhan Baibek signed an order Jan. 22 creating an investment council as part of a comprehensive plan to attract investment. The body consists of major domestic and foreign investors, international consulting companies, financial organisations and others.

The council’s main tasks are to develop recommendations and suggestions on improving Almaty’s investment climate, devise strategies to attract foreign investment to the city’s economy and implement investment projects.

Also In The News...

• Ministers, governors and public university rectors to report to the populationPresident Nazarbayev signed a decree on the conduct of reporting meetings with the population by the heads of central executive bodies, akims (governors and mayors) of all levels and public university rectors. Akims will hold reporting meetings with the population during the first quarter of every year to inform their constituents about the socioeconomic development of the administrative-territorial unit in question over the past year, the objectives and main directions of further development and the formation of local budgets. Heads of central executive bodies, including government ministers, will hold their reporting meetings with the population in the second quarter of each year to report on the work of their agencies during the previous year. Rectors of public universities will hold reporting meetings with the public, including parents, students, employers, faculties and the media, during the third quarter of every year and cover issues in education, research and educational activities. The decree became effective January 1, 2016. (akorda.kz)

• All promising energy projects must be implemented, President saysMinister of Energy of Kazakhstan Vladimir Shkolnik reported on current developments in the oil and gas sector, power generation and transmission, environmental protection, the nuclear industry and other areas his agency oversees during a working meeting with President of Kazakhstan Nursultan Nazarbayev Feb. 8. Nazarbayev pointed to the need to implement all promising projects in the energy sector, including the launch of production at Kashagan, the Tengiz expansion project and the second phase of the Karachaganak expansion project. Shkolnik said that the envisaged decline in oil production in 2016 to 77 million tons would be compensated in the future with the long-delayed launch of production at the Kashagan field. (akorda.kz)

• Working Group on legal status of Caspian Sea convenesThe 43rd session of the Special Working Group (SWG) on the development of the Convention on the Legal Status of the Caspian Sea took place Jan. 27–29 in Ashgabat at the level of deputy ministers of foreign affairs of the Caspian littoral states. During the session, delegations discussed provisions of the draft Convention on the Legal Status of the Caspian Sea with regard to the water and aquatic biological resources of the Caspian Sea, marine scientific research and other issues. Following the negotiations, a number of provisions of the draft Convention were agreed upon.

• National Bank to remain in Almaty, plans for relocation to Astana cancelledPresident Nazarbayev recently halted plans to relocate the country’s National Bank from Almaty to Astana. The government had planned to move the bank in 2017. The National Bank is accountable to the President of the country and represents the interests of the state in relations with central banks, banks of other states, international banks and other financial organisations, and coordinates its activity with the government of Kazakhstan. It remains the only central state body in Kazakhstan to be located outside of Astana. (kazpravda.kz)

• Innovative business ideas contest to be held in AlmatyEmerging entrepreneurs, women, disabled people and people over 50 years old will be provided an opportunity to win grants to develop their business within the Business Road Map 2020 programme at a competition in Almaty. Winners will receive grants in the amount of up to 3 million tenge (US$8,326). The grant money cannot be used for purchasing real estate, land or as payments for rent. More detailed information is available on the website of the city administration. (www.inform.kz)

• UNESCO festival of children’s art timed to Almaty anniversaryKazakhstan’s National Federation of UNESCO Clubs announced the launch of the international festival “Children are painting the world” and invites young artists from 3–17 to take part in the competition. The jury will select five winners from 14 regions of Kazakhstan, plus Almaty and Astana, who will be invited to the final part of the festival along with children from other Asian countries.

The main purpose of the competition is to support young talents, promote intercultural dialogue and understanding and strengthen friendly ties between the rising generations of Asian countries. The celebration of the 1,000th anniversary of Almaty is included on the list of commemorative dates of UNESCO and in the framework of the festival, a special children’s art album “Children are painting the world: Asia,” containing work by the young artists, will be presented, timed to this date. (kazpravda.kz)

• National Universiade checks readiness for Winter Universiade 2017 Kazakhstan’s National Universiade, a nationwide university sport competition taking place Feb. 6–13 in Almaty, is helping test out preparations for the 2017 World Winter Universiade. More than 1,000 students from 35 universities in Kazakhstan are taking part in the National Universiade. The competition includes 10 events: cross-country skiing, presidential combined competition, alpine skiing and skating, ski jumping, biathlon, orienteering, snowboarding, short-track skating and ice hockey. The closing ceremony of the National Universiade will be held at the Baluan Sholak Sports Palace on Feb. 17. Accreditation of delegations from countries participating in the 2017 Winter Universiade began Jan. 29, and online accreditation to participate in the event has been launched on the event’s official website. (almaty2017.kz)

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