Kazakhstan: Country Profile
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“Kazakhstan aims to strengthen the strategic partnership with the United States and the countries of the
European Union.”
Nursultan Nazarbayev
President of the Republic of Kazakhstan
at the inauguration ceremony
April 8, 2011, Astana
“The United States highly values its bilateral relationship with Kazakhstan. Our countries’ strong
relations demonstrate our shared and enduring commitment to expand and deepen our cooperation across
a wide range of activities from international peace and security to non-proliferation. I look forward to
continued cooperation and friendship between our countries. I wish you and the people of Kazakhstan
success and prosperity as you celebrate this important day.”
Barack Obama
President of the United States of America
on the Independence Day of Kazakhstan
December 13, 2010, Washington, D.C.
“I am grateful to you for your outstanding contribution to the partnership between the U.S. and
Kazakhstan, especially with respect to continued contacts between President Nazarbayev and President
Obama.”
Secretary of State and Foreign Minister Kanat Saudabayev
to Secretary of State Hillary Rodham Clinton
January 25, 2011, Washington D.C.
“Recently, I witnessed the great progress Kazakhstan has made during my visit to Astana for the first
summit of the Organization for Security and Co-Operation in Europe in 11 years. Chairing the OSCE and
hosting this summit are important milestones in Kazakhstan's ongoing development as a regional and
world leader.”
Secretary of State Hillary Rodham Clinton's
on the Independence Day of Kazakhstan
December 14, 2010, Washington, D.C.
“I think Kazakhstan deserves the warmest credit for removing the nuclear material that you inherited on
your territory. And the United States has been your partner in doing this. I think nonproliferation is a
human rights issue. I think the effort to go after the nuclear material that can fall in the wrong hands, that
can be used to terrorize, maim, kill people, contaminate large areas is a fundamental human rights issue.
And in this area, Kazakhstan has been a world leader, and I want to publicly express my appreciation for
that.”
Secretary of State Hillary Rodham Clinton
Town Hall on Empowering Civil Society for Central Asia’s Future
November 30, 2010, Eurasian University, Astana
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C O N T E N T S
KAZAKHSTAN AT A GLANCE.......................................................................……........…………………………………...4
Country brief overview
Kazakhstan in 10
Economic overview
Political structure
Political Progress
Presidential Elections 2011
Political Parties
Civil society
Middle Class
Court System
Media in Kazakhstan
Ethnic Composition
Religious Composition
Myths in the West about Kazakhstan
KAZAKHSTAN FOCUSES ON ECONOMIC DEVELOMENT AND SOICIAL SECURITY........................................37
President Nazarbayev Outlines Major Development Priorities in His State of the Republic Address
KAZAKHSTAN – ECONOMIC OVERVIEW………………………………………...........…………… … ….……..........43
General background
Key economic indicators
Outcomes of the Government‟s Anti-Crisis Package
Kazakhstan‟s Energy Sector: Global Impact
Mining and smelting industry in Kazakhstan
Transport and Communications
Agriculture
Banking and Financing
National Fund of Kazakhstan
The State Program of Accelerated Industrial-Innovative Development of Kazakhstan for 2010-2014
National Welfare Fund “Samruk-Kazyna”, JSC
People‟s IPO
Development Institutions
Taxation
Trade Regulation
Status Report on Kazakhstan‟s WTO Accession Process
Kazakhstan‟s Position on the WTO after Creation of the Customs Union
Astana Economic Forum
Expectiations about Kazakhstan‟s Economy: Outlook by Independent Experts
KAZAKHSTAN'S FOREIGN POLICY:
MAIN ACHIEVEMENTS AND NEW GOALS………………………………........………………………………….........116
Brief overview
Kazakhstan-US Strategic Partnership
2010 President Nazarbayev‟s Visit to the US
Kazakhstan and Non-Proliferatoin
Kazakhstan‟s OSCE Chairmanship in 2010
Conference on interaction and confidence-building measures in Asia (CICA)
Kazakhstan and the Organization of the Islamic Conference (OIC)
Kazakhstan‟s international interreligious initiatives
Congress of Leaders of World and Traditional Religions
Afghanistan
Iraq
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KAZAKHSTAN-THE HEART OF EURASIA ……………………………..……………………….……………...............143
Useful Information
Nature and Geography
Environment Protection
Milestones of History
CULTURE AND TRADITIONS...............................................................................................................................................155
Literature
Lifestyle
Traditions
Museums
Sports
Cinema
Architecture
Cuisine
Music
Education
“Bolashak” Scholarships
Nazarbayev University
TOURISM ......................................................................................................... ...........................................................................176
Exciting Outdoor Activities in Kazakhstan
Sample Routes Offered to Tourists in Kazakhstan
Air Astana
MAJOR CITIES ............................................................................................ .............................................................................182
Astana – New Capital for the New Millennium
New Horizons in Kazakhstan
Almaty – Financial and Cultural Hub
RECOMMENDED PUBLICATIONS ON KAZAKHSTAN................................................................................................. 184
DID YOU KNOW THAT ................................................................. .........................………………….…………………....... 193
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KAZAKHSTAN AT A GLANCE
COUNTRY BRIEF OVERVEW
A huge country covering a territory equivalent to the whole of Western Europe,
Kazakhstan has vast mineral resources, enormous economic potential and rich traditions, culture
and history. The topography varies from the mountainous, heavily populated regions in the east
to the sparsely populated, energy-rich lowlands in the west, and from the industrialised north,
with its Siberian climate and terrain, to the arid, empty steppes of the centre and fertile south.
Descendants of ancient nomadic tribes and Turkic people of
greater Eurasia that later joined the Gengiz Khan Empire, the Kazakhs
created one of the world's last great nomadic empires in the late 15th
and 16th centuries. Russia annexed their lands in the 18th
and 19th
centuries, moving settlers into the area. The Kazakh Republic was
formed as an autonomous Republic within the Russian Federation in
August 1920 and became a full Republic of the Soviet Union in
December 1936. On December 16, 1991, Kazakhstan declared its
independence.
As the result of Soviet Union‘s sudden collapse, Kazakhstan
shared with its fellow former Soviet republics a fiscal chaos that
included hyperinflation (in 1992 about 2,960 percent), plummeting
industrial production and the exodus of many of its most highly trained
ethnic Russians. Between 1992 and 1999, the country lost two million
of its six million Russian Soviet inhabitants. A huge number of
Kazakhs lost their livelihoods in the aftermath of the Soviet economic
implosion.
In order to stop the economic downward spiral Kazakhstan
launched major reforms and subsequently used its rising oil revenues
to remake the economy in accordance with Western standards. It also
restructured its Soviet- educational system. This helped to save
Kazakhstan from the financial shock that inflicted Russia. As a result,
the European Union recognized Kazakhstan as a market-based
economy in October 2000. The U.S. did the same in March 2002.
Kazakhstan also was the first among its CIS neighbours to pay off its
debt to the International Monetary Fund -- in 2000 -- seven years
ahead of schedule. This allowed Kazakhstan to obtain a favourable
credit rating, to implement financial institutions approaching Western
standards of efficiency and reliability and to develop a fully-funded
nationwide pension program.
Foreigners have invested heavily in Kazakhstan since its
independence, particularly in Caspian oil. Such investments are among
of the key elements in Kazakhstan‘s economic success. In 2001-2003,
investment inflow surged to 13 percent of GDP and is currently
running at almost ten times the rate of Kazakhstan‘s neighbours. The
country has enjoyed significant economic growth since 2000,
averaging 10 percent annually until the global crisis of 2008. Although
reduced in 2009, the growth still remains positive and strong.
Independence: December 16,
1991
Population: 16,5 million (as of
February, 2011)
Location: North of Central
Asia, on the Caspian Sea
Capital: Astana (population
684,018 as of April, 2010)
Largest city: Almaty
(population 1,404,329 as of
April, 2010)
Area: 2.7 million sq km
Neighbours: Russia,
Turkmenistan, Uzbekistan,
Kyrgyzstan, China as well as
Azerbaijan and Iran through
Caspian Sea.
Boundaries: Total 7,459 miles
(12,012 km (without Caspian
shoreline). The Republic of
Kazakhstan shares its longest
borders with Russia, 4,251
miles (6,846 km) and China,
951 miles (1,533 km). It also
borders 1,183 miles (1,894 km)
on the Caspian Sea.
Comparative area: ninth
largest in the world, equivalent
to the size of Western Europe;
Four times the size of Texas;
Five times the size France.
Claims: fledgling democracy
Constitution: Secular
democracy. The Constitution
was approved by referendum on
August 30, 1995 and amended
in 2007. It established secular
democracy that values
individual ―life, rights and
freedoms‖, divided the
Government between executive,
legislative and judicial branches
with a system of checks and
balances. The amendments
enlarged the powers of the
Parliament, raised the role of
political parties, thus
transforming Kazakhstan from
presidential into presidential-
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The country is ethnically diverse, with native Kazakhs making
up more than half of the population. Russians comprise just over a
quarter. The remainder are Ukrainians, Germans, Chechens, Kurds,
Koreans and Central Asian ethnic groups. All in all, more than 100
ethnic groups live in Kazakhstan. They live in harmony. In order to
ensure inter-ethnic peace, the Assembly of the People of Kazakhstan
was established, a unique body in the post-Soviet area representing the
interests of all ethnic groups.
Kazakhstan is pursuing a staged democratization in all fields of
social and political life. Kazakhstan has made notable Constitutional
reforms including bolstering the rule of law, establishing free and fair
elections, empowering parliament and spreading civil liberties. These
were acknowledged when Kazakhstan was unanimously selected by
OSCE member nations to chair the Organization in 2010. Kazakhstan
is also chairing the Organization of Islamic Conference in 2011.
In 2009, Kazakhstan adopted two major roadmaps for
democracy – the ―2009-2012 National Human Rights Action Plan‖
and the ―2010-2020 Legal Concept.‖
Kazakhstan is also a leader in nuclear nonproliferations.
President Nursultan Nazarbayev closed the infamous Semipalatinsk
nuclear testing ground obtained nuclear-free state status for
Kazakhstan.
parliamentary republic.
Head of state:
President Nursultan Nazarbayev
Head of government:
Prime minister Karim Masimov
Chairman of Senate:
Kairat Mami
Chairman of Majilis:
Ural Muhamedzhanov
Secretary of State:
Kanat Saudabayev
Foreign Minister:
Mr. Yerzhan Kazykhanov
Major languages: Kazakh,
Russian; English is promoted as
the language of international
communication
Major religions: Islam,
Christianity
Life expectancy: 62 years
(men), 72 years (women) (UN)
Monetary unit: 1 Kazakh tenge
=100tiyn ($1=147,4 KZT as of
April, 2011)
Main exports: Oil, uranium,
ferrous and nonferrous metals,
machinery, chemicals, grain,
wool, meat, coal
GDP per capita: US $11,500
Internet domain: .kz
KAZAKHSTAN IN 10
Modern Kazakhstan is built on 3000 years of extraordinary history. The country has
experienced epic moments and has been influenced by such legends as Alexander the Great and
Genghis Khan. For centuries, the Silk Road provided a route through Kazakhstan for international
traders and merchants carrying exotic merchandise. All this has contributed to the richness of
Kazakh culture and its capacity to adapt and develop.
Kazakhstan‘s economy is the largest and the fastest evolving of the Central Asian region.
Since 2001, economic growth rate has been among the highest in the world and GDP will grow by
6-7% in 2011, aided by the increasing value of Kazakhstan‘s leading exports (oil, metal and grain).
Since 1993, Kazakhstan has attracted over US $120 billion of foreign direct investment – the highest
foreign direct investment per capita in the CIS.
Kazakhstan holds 30 billion barrels (4 billion tonnes) of proven recoverable oil reserves and
potential reserves of 100-110 billion barrels. Development of new oil fields such as Kashagan
(recoverable reserves: 13 billion barrels, peak projected output: 1.5 million barrels/day in 2019) will
make Kazakhstan one of the world's top ten oil-producing nations.
Kazakhstan ranks first in the world in reserves of barite and tungsten, second in reserves of
chromite, phosphate rock, and uranium, third in reserves of copper, lead, and zinc, fourth in reserves
of molybdenum; sixth in reserves of gold, and eighth in reserves of iron ore. The country contains
almost a quarter of the world‘s uranium – with production reaching 15,000 tons per year in 2010
making it the first in the world.
Kazakhstan has reinforced its global reputation as a democratic country through a series of
major constitutional reforms, including the abolition of the death penalty and increased
parliamentary representation.
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Kazakhstan is diversifying its economy away from natural resources. Agriculture makes up
10% of GDP; wheat is a leading commodity in export trade – as is metal processing, chemicals,
textiles and food processing. New information technology projects - like the Alatau IT Park – are
growing. Ambitious education initiatives make the latest generation of Kazakhs among the most
highly skilled in the world. Every year, 3000 young Kazakhs are sponsored to study at the world‘s
most prestigious education institutions, before returning home.
Political stability, religious tolerance and a unique location at the crossroads of China, Russia
and Europe gives Kazakhstan a stabilising role for the whole region - as well as making it the
perfect host for the Congress of World Religions (held in Astana every three years).
Kazakhstan is a forward-thinking country. President Nazarbayev is behind many ambitious
projects such as the Aral Sea dam, which will save the disappearance of the world‘s fourth largest
inland sea. The country has launched its own ambitious space programme at Baikonour and plans
for a pan-Asian canal to further open up trade routes between central Asia and Europe.
Astana, Kazakhstan‘s capital (moved from Almaty in 1997), is situated at the very heart of
the country. An incredible US$12 billion has been invested in the city‘s construction and
development. Internationally renowned architechts like Norman Foster and Kisho Kurokawa have
left their mark on a city that is set to outshine many of the world‘s more established capitals.
Eco-tourism is particularly strong in Kazakhstan, a land of vast unspoiled, open spaces,
majestic mountains (with world class ski stations), horseback trails and increasingly vibrant, modern
cities.
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ECONOMIC OVERVIEW
Prime Minister: Mr. Karim Massimov
First Deputy Prime Minister: Mr. Umirzak Shukeev
(oversees economic, regional, trade and investment policy, sectors of agriculture, construction,
natural resources and infrastructure, cooperation with WTO, Customs Union and Eurasia economic
community)
Deputy Prime Minister: Mr. Erbol Orynbayev
(oversees administrative reforms and macroeconomic policy, sectors of employment, demographics,
education, science, culture, health-care, business environment, Business Road Map-2020, PPP and
SME development, cooperation with World Bank, European Commission, Kazakhstan-United
States initiative on public-private economic partnership)
Deputy Prime Minister - Minister of Industry and New Technologies: Mr. Asset Isekeshev
(oversees the State program of accelerated industrial-innovation development 2010-2014 and local
content development, sectors of industry, innovations, foreign investments, electricity and technical
regulation, cooperation with OECD)
Head of the Prime Minister‟s Office: Mr. Gabidolla Abdrakhimov
(coordination of central and regional state bodies, human resources management, interaction with
the Administration of the President, Parliament, NWF ‗Samruk-Kazyna‘.)
Minister of Economic Development and Trade: Mr. Kairat Kelimbetov
Minister of Economic Integration Affairs: Ms.Zhanar Aitzhanova
Minister of Oil and Gas: Mr. Sauat Mynbayev
Minister of Finance: Mr. Bolat Zhamishev
Minister of Transport and Communications: Mr. Berik Kamaliev
Minister of Environment Protection: Mr. Nurgali Ashimov
Minister of Agriculture: Mr. Assylzhan Mamytbekov
Minister of Tourism and Sports: Mr. Talgat Yermegiyaev
Minister of Education and Science: Mr. Bakytzhan Zhumagulov
Chairman of National Bank: Mr. Grigoriy Marchenko
Chairman of National Welfare Fund „Samruk-Kazyna‟: Mr. Timur Kulibayev
The future of the Kazakhstan economy is closely connected with further integration into
international economic relations, efficient use of reserves of hydrocarbon and mineral resources,
export of industrial and agricultural products and the optimum deployment of country's transit
potential and highly qualified human resources.
Kazakhstan is important to world energy markets
because it has significant oil and natural gas reserves.
Within the next decade, Kazakhstan is expected to
become one of the world's largest oil producers and
exporters.
Kazakhstan’s strategic aspiration is to become a modern,
diversified economy with a high value-added and high-
tech component, well integrated into the global economy.
A strong energy sector is viewed as a good start to
achieve this goal.
Economic development in 2010
Real GDP growth: 7.0%.
Index of consumer prices: 7.8%
Investments in fixed capital stock:
$33 bln. (-0.5%).
Total international reserves (including
reserves of the National Fund): $62,6 bln. or
42.5% of GDP
Government and government guaranteed
debt: 3.1% of GDP
Budget deficit: 2.4% of GDP.
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During the Soviet period, Kazakhstan was an agrarian country and raw-materials supplier.
The military played a dominant role. During 20 years since independence, Kazakhstan has moved
from a centrally planned economy to a market economy. Kazakhstan has made considerable
progress in implementing complex political, economic and social reforms to establish a politically
stable environment.
The first 10 years of Kazakhstan‘s independence were characterized by numerous economic,
social and environmental challenges. Due to the disintegration of the Soviet Union, real GDP had
dropped to 61.4% of its 1990 level by 1995. This economic deterioration was worse than the Great
Depression of the 1930s.The wide-ranging inflation peaked at annual rate of 3000 percent in mid-
1990s.
Since 1992, Kazakhstan has actively pursued a program of economic reforms designed to
establish a free market economy through privatization of state enterprises and economic
decentralization. Successful implementation of reforms resulted in general recognition of
Kazakhstan in 2001 as the most market-oriented country in the CIS. Western countries have
applauded Kazakhstan‘s reforms in the areas of currency convertibility, inflation targeting, foreign
investment policy, demonopolization and reallocation of resources.
Being the most successful reformer in CIS Central Asia – and based on its strong
macroeconomic performance and financial health -- Kazakhstan became the first former Soviet
republic to repay all of its debt to the International Monetary Fund (IMF) in 2000 (7 years ahead of
schedule). This helped the nation receive an investment-grade credit rating from major international
credit rating agencies. Today, Kazakhstan is rated as follows: BBB/Stable from Standard&Poor's,
Baa2/Stable from Moody's Investors Service and BBB-/Positive from Fitch Ratings. The global
financial crisis which started at the end of 2007 had multiple implications on Kazakhstan‘s economy
and exposed underlying vulnerabilities. With lower oil and commodity prices and adverse
conditions in international capital markets, new challenges for emerging economy surfaced –
declining public revenue, liquidity shortages, dependence of financial institutions on external
funding, negatively affected investors‘ confidence and capital outflows.
In these circumstances the Government quickly stepped in to regulate and stabilize the
situation. A set of policies were introduced under the Anti-Crisis Program to help mitigate economic
vulnerabilities and establish a basis for the resumption of strong growth. As a part of the policy,
Kazakhstan has devalued its currency and vastly expanded its role in the financial sector.
With significant reserves of oil and gas, coal and uranium, Kazakhstan is an important
energy provider to the world. In January 2011, Kazakhstan produced 5.9 mln. metric tons of oil
(+5.5 in comparison with January 2010), 1.2 mln. metric tons of gas-condensates (+15.8%), 11.1
mln. metric tons of coal (+20.9%) and 3.6 bln. cubic meters of natural gas (+11.6%).
However, bearing in mind recent fluctuations in the world commodities market, the
Government‘s energy policy focuses on further diversification of energy resources, efficient
Geologic exploration; 53%
Mining and extraction;
24%
Manufacturing industry; 11% Financial sector;
2%Trade; 7%
Construction; 2%
Transport and communications;
1%Others; 2%
energy use, stimulation of R&D in
renewables and raising a profile of
environment component. Today,
investments in natural resources
constitute 77% of all investments in
the economy. 75% of investments in
natural resources come from
overseas and the rest is generated by
the internal national economy. Figure 1. Foreign Direct Investments (%), January-December 2010 Source: National Bank
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Key to the energy sector is a system of pipelines and infrastructure. Kazakhstan‘s
counterparts (United States, EU, China and Russia) have identified their strong interest in
cooperating with Kazakhstan in this area, particularly in building trans-continental oil and gas
transportation systems. Kazakhstan has made it clear that this fully meets its own vision for the
development of multiple energy transportation routes from and through Kazakhstan.
As of January 2011, total turnover through pipelines
has increased by 36.7% (in comparison with
January 2010). Volumes of oil and gas transported
through pipelines have increased: in metric tons -
by 14.4% and 7.6% respectively; in tons per
kilometre – by 12.5% and 124.3% respectively (in
comparison with January 2010).
Transportation through pipelines constituted 26.4%
of all cargo turnovers in 2010. Commercial
viability, technical and environmental safety and
financial soundness are the guiding principles for
Kazakhstan‘s strategy in this crucial area.
On November 27, 2009 leaders of Kazakhstan, Russia and Belarus gathered in Minsk to sign
final agreements on the trilateral Customs Union, which launched January 1, 2010. Presidents of the
three countries approved a customs code that went into force July 1, 2010, and a single customs
tariff with a transitional period that will vary between 1.5 and 5 years depending on the type of
goods. The Customs Union sets up a market with a population of 170 mln. people, aggregate trade
of $900 bln., aggregate industrial potential of $600 bln., oil reserves of 90 bln. barrels, and
agricultural production of $112 bln. The three countries' current aggregate GDP exceeds $2 trln. The
establishment of the Customs Union will enable the three countries to have GDP growth over 15%
by 2015.
The establishment of the Customs Union doesn‘t affect
negatively Kazakhstan‘s negotiations to join the World Trade
Organization (WTO). Being a WTO member does not mean
that the country cannot be a member of the Customs Union.
The EU, for instance, is the best example of customs unions
and member states being in the WTO, so is NAFTA. The three
members of the Customs Union announced that they would
seek to pursue their WTO memberships individually and
simultaneously and in a coordinated way
The national economy as well as the market of the Customs Union is considered by the
Government as the basis to build a modern, diversified, highly-technological, flexible and
competitive economy with a high value-added component. This is the central goal of the National
Strategy ‗Kazakhstan-2030‘ and the Strategic Development Plan of Kazakhstan-2020.
These two strategic programs are the framework of the mid-term 2010-2014 State Program
of Accelerated Industrial-Innovation Development, which combines a number of
Figure 2. Pipelines, 2010. Source: Strategic Forecasting Inc.
Figure 3. Members of the Customs Union Source: Strategic Forecasting Inc.
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regional development and sectoral programs (including the
Strategy to enter the 50 most completive nations, 30
Corporate Leaders etc.).
The Program determines the roles of all development
institutions, national companies, industrial zones,
technological parks and free economic zones.
The objectives of the state industrial-innovation policy is
to increase total GDP of Kazakhstan in 2010 by 50% from
the level of 2008 and to decrease its energy intensity by
10%, to expand non-oil and gas export by 40%, and to
boost labor productivity in
manufacturing industry – by 50%, in other sectors – by 100%.
In 2010, 152 projects worth KZT 800 billion were launched within the program, creating
23.5 thousand jobs. As part of the Program to promote Kazakhstan‘s investment opportunities the
Ministry of Industry and New Technology (operator of the Program) hosted in 2010 more than 28
meetings and presentations resulting in the signing of 150 contracts worth $9.6 billion. It is expected
that in the first half of 2011 approximately 13 innovation-driven industrial projects will be launched
by the Program.
The global financial crisis streamlined the Kazakhstan‘s economy by getting rid of
companies and financial institutions that placed all their bets on high profits and showed no interest
in long-term industrial development. It also correctedthe over-evaluated real estate market and
encouraged investment in more economically stable and productive sectors. The crisis demonstrated
that the Kazakhstan‘s overall financial system is solid enough to deal with a market collapse.
Further diversification of the economy, social and political stability, sizable natural
resources, attraction of foreign capital, implementation of international technical, financial and
business standards, accession to the WTO as a member of the Customs Union, promotion of
corporate governance, greater transparency and accountability, education and administrative reforms
– all are driving Kazakhstan to reach its strategic goals.
Some highlights on Kazakhstan‟s economy:
Kazakhstan in 2010 announced a Business Road Map – 2020, which aims to create
permanent jobs through business development. According to the program, funds are
allocated for further subsidization of interest rates on loans, loan guarantees, development of
industrial infrastructure, internships and social assistance. As of January 2011, over 225
applications worth 101.2 billion tenge were approved for subsidizing within the Road Map.
More than 30 projects of 129 business entities received loan guarantees. Approximately
1,175 enterprises received orders for rendering services in industrial zones. The total number
of employees involved in the program exceeds 20 thousand people.
A state-run scholarship programme ‗Bolashak‘ (―Future‖), since its establishment, in 1994
has increased the number of graduating scholars from 187 in 1994 to 1,259 in 2010. During
1993-2009, Bolashak scholars numbered 6,788. In 2011, approximately 1,058 scholars will
receive their Bachelor, Master and PhD degrees.
Kazakhstan has accommodated 8000 foreign companies (270 of them are companies listed in
the Fortune 500), which invested over $13.1 bln. in Kazakhstan in 2010.
Kazakhstan in 2010 continued implementing of the Extractive Industries Transparency
Initiative with the aim of delivering a clear signal to international investors and financial
Figure 4. State Program of Accelerated Industrial-Innovation Development
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institutions that Kazakhstan is committed to greater transparency and accountability and
improvement in its investment climate
Following adoption of the Law on Islamic Finance in 2010, Kazakhstan is planning to issue
by the end of 2011 a $500 million debut Islamic bond (sukuk), which could create a
benchmark for corporate lenders aiming to develop an Islamic finance sector in Central Asia.
Kazakhstan plans to attract up to $10 billion in Islamic finance over the next 5 to 7 years.
Islamic finance would play a major role in funding Kazakhstan's drive to develop its
industrial base.
Kazakhstan‘s Government is developing a program for initial public offerings (IPO) of the
national companies owned by the sovereign welfare fund Samruk-Kazyna, which controls around
$70 billion on assets in banks, state energy companies and other major industries. Samruk-Energy,
KEGOC and KazPost will put their shares up for an IPO by the end of the year. National companies
such as KazMunaiGas, Kazakhstantemirzholy railways and Kazatomprom should follow with initial
public offerings in 2012-2013. Later on, the metal producers Eurasian Natural Resources Corp.
(ENRC), Kazakhmys, Kazzinc, and Arcelor Mittal‘s Karmetkombinat will offer some of their
shares.
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POLITICAL STRUCTURE
Kazakhstan is a presidential-parliamentary republic. The
president is the head of state. The president also is the commander
in chief of the armed forces and may veto legislation that has been
passed by the Parliament. The prime minister chairs the Cabinet of
Ministers and serves as Kazakhstan's head of government. There
are three deputy prime ministers and 16 ministers in the Cabinet.
Karim Massimov has been serving as the Prime Minister since
January 10, 2007.
Kazakhstan has held a number of presidential elections: in
January 1999 – first ever alternative presidential elections with 4
alternative candidates for the Presidency, observed by OSCE; in
December 2005 – presidential elections with 5 alternative
candidates, 2 being major opposition leaders; on April 3, 2011 –
presidential elections with 3 alternative candidates. President
Nazarbayev won the last elections in a landslide. Kazakhstan
invited more than 1,000 international observers to monitor the
elections and demonstrated a high level of openness and
transparency. Many observers assessed the coduct of elections as
―free and fair,‖ although ODIHR/OSCE came up with a number
of criticisms and recommendations for improvement. However,
the vast majority of the observers agreed that the elections
reflected the will of the people and vote for modernization,
stability and economic prosperity.
In May 2007 the Constitution was amended to limit the
presidency to two terms and reduced a presidential term from
seven years to five years, increasing the powers of Parliament so
that the executive branch is more accountable to it. This was
introduced in accordance with the OSCE‘s recommendations.
As in the United States, Kazakhstan‘s President annually
delivers to the people his vision, a so called road map for future
development of the country.
Comprehensive development targets are outlined by
President Nazarbayev in his ―State-of-the-Nation‖ address every
year.
On January 28, 2011, President Nazarbayev delivered his
message to the people of Kazakhstan at a joint session of the
Kazakh Parliament. Here is the summary of his address.
Kazakhstan‘s foreign policy will ―meet hopes and
expectations of all our partners,‖ President Nazarbayev said in his
state-of-the-nation address. ―Kazakhstan will remain committed to
swift and efficient development of the Customs Union between
Russia, Kazakhstan and Belarus.‖ He went on to note that in the
first 10 months of the CU operation last year, the country‘s trade
with the other two partners jumped 38 percent.
―We offer our European partners to jointly develop and
Government
President:
Mr Nursultan Nazarbayev (at the split of
the USSR elected president December 1,
1991; as per new, amended Constitution
elected to the first seven-year term on
January 10, 1999; re-elected to the second
seven-year term on December 4, 2005; re-
elected to the third five-year term on
April 3, 2011)
Prime Minister: Mr Karim Massimov (since January,
2007)
Chairman of the Senate of the
Parliament (upper chamber): Kairat
Mami
Chairman of the Majilis of the
Parliament (lower chamber):
Mr Ural Mukhamedzhanov (elected
October, 2008)
Secretary of State (since August, 2007):
Mr. Kanat Saudabayev
Other members of the Government:
First Deputy Prime Minister:
Mr. Umirzak Shukeev
Deputy Prime Minister:
Mr. Erbol Orynbayev
Deputy Prime Minister – Minister of
Industry and New Technology:
Mr. Aset O. Issekeshev
Minister of Foreign Affairs:
Mr. Yerzhan Kazykhanov
Minister of Defense:
Mr. Adilbek Dzhaksybekov
Minister of Internal Affairs:
Mr. Kalmukhanbet Kassymov
Minister of Justice:
Mr. Rashid Tusupbekov
Minister of Finance:
Mr. Bolat Zhamishev
Minister of Economic Development
and Trade: Mr. Kairat Kelimbetov
Minister of Economic Integration
Affairs: Mrs. Zhanar Aitzhanova
Minister of Labor and Social
Protection: Mrs. Gulshara Abdykalikova
Minister of Oil and Gas: Mr. Sauat
Mynbayev
Minister of Transportation and
Communications: Berik Kamaliyev
Minister of Communications and
Information: Mr. Askar Zhumagaliev
Minister of Agriculture: Assylzhan Mamytbekov
Minister of Environment:
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accept, in a multilateral format, a Kazakhstan-EU Energy Charter
up to the year 2020,‖ Nazarbayev said. ―This would ensure the
guarantee of stability of energy supplies to the European markets,
and the development of pipeline systems.‖ Turning to other
foreign policy issues, Nazarbayev announced his intention to
convene this year a special donor conference on Afghanistan.
The Kazakh President also reaffirmed his commitment to
pursue a Stability Pact for the Caspian Region, which, in his view,
would be a document leading to better cooperation and mutual
understanding among the five littoral states.
Mr. Nurgali Ashimov
Minister of Healthcare: Mrs. Salidat Kairbekova
Minister of Education and Science: Mr. Bakytzhan Zhumagulov
Minister of Tourism and Sports: Mr. Talgat Yermegiyayev
Minister of Culture: Mr. Mukhtar Kul-Muhammed
Minister of Emergency Situations: Mr. Vladimir Bozhko
Another foreign policy priority for Kazakhstan is the development of an inter-state
programme of assistance to neighbouring Kyrgyzstan, which last year saw major upheavals and
violence. Kazakhstan, as both a close neighbour and the then-chair of the OSCE, helped stabilize the
situation there by sending $11 million worth of assistance and coordinating various efforts including
the dispatch of a group of police advisors. Kazakhstan will also continue promoting a Universal
Declaration of a Nuclear-Weapons Free World, first proposed by President Nazarbayev last year at
the Global Nuclear Security Summit in Washington, DC.
In 2011, Kazakhstan will assume the presidency in the council of foreign ministers of the
Organization of Islamic Conference. Tolerance was one of the major messages of Kazakhstan‘s
OSCE chairmanship last year. Kazakhstan aggressively promoted closer ties between international
organizations it chaired or initiated, such as the OSCE and the Conference on Interaction and
Confidence-building Measures in Asia (CICA) and helped organize the first ever CICA-OSCE
forum in Istanbul in June 2010. Astana also invited OIC Secretary General Ekmeleddin Ikhsanoglu
to participate in and address numerous OSCE events, including its summit in Astana last December.
Kazakhstan is also a leader of the Shanghai Cooperation Organization (SCO), which is
holding its 10th anniversary summit in Astana in June. Kazakhstan was the original co-founder of
the SCO, which includes China, Russia and Central Asian countries. Speaking of Kazakhstan‘s
economic development, the President said Kazakhstan‘s record since independence 20 years ago
offers great promise for the future. ―In December 1991, having chosen the strategic goals of
sustainability and success, we moved forward, creating new programmes of development for each
new stage… We set ourselves ambitious goals, and we achieved them,‖ Nazarbayev said.
In 1994, Kazakhstan‘s gross domestic product per capita was slightly more than $700 Today
it is $9,000, a twelve-fold increase. ―We had planned to reach such a level only by 2015,‖ the
President said. ―The international experience shows that in their first 20 years of independence, no
other country was able to do that.‖ Last year, Kazakhstan‘s economy grew seven percent,
overcoming the global financial crisis. While the GDP grew 8.5 percent in 2007, the growth slowed
to 3.2 percent in 2008, and then slowed even further to 1.1 percent in 2009. The economy never
contracted, thanks to massive state investments to the tune of 14 percent of the GDP and the
recovery of global commodity prices.
Even larger credit for the recovery, according to the President, should go to prudent policies
and the Programme of Accelerated Industrial and Innovative Development (PAIID) for 2010-2014,
which was launched last year. Already, 152 new enterprises were launched, creating 24,000 new
jobs. Kazakhstan‘s gold and foreign currency reserves now stand at $60 billion, more than before
the crisis hit, while Kazakhstan attracted $120 billion in foreign direct investment overall since
1993.
―Before 2014, we plan to see through 294 investment projects worth 8.1 trillion tenge (KZT
147 = US$1),‖ Nazarbayev said, adding that 161,000 new permanent jobs will be created and
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207,000 new jobs will be available for the period of construction. The GDP should grow 30 percent,
while the growth in processing industries should exceed that in the extractive industries, the
president projected. Investments, both domestic and foreign, should grow by 30 percent. Inflation
will be contained within five to eight percent, he said. The share of small and medium-sized
businesses should reach 40 percent of the GDP. The population should grow from the current 16
million to 18 million, and qualified specialists will constitute 40 percent of the workforce.
Unemployment will stay below five percent. Kazakhstan will seek to become one of the major
exporters of meat in addition to exporting wheat and flour.
―I stand for the principle, ‗strong business means a strong state‘,‖ the President said. Last
year Kazakhstan was recognized by the World Bank as the country that improved conditions for
domestic businesses the most in a single year. The World Bank also ranked Kazakhstan 59th out of
of 183 countries in terms of having the most beneficial business climate. On other fronts,
Kazakhstan adopted 16 laws to reform the system of law enforcement and the protection of human
rights, while state bodies slashed their staffs by 15 percent. ―Kazakhstan will continue fighting
corruption without compromises,‖ Nazarbayev said as he noted that the country jumped 45 places in
Transparency International‘s Corruption Perception Index in three years.
Education, healthcare, language proficiency and tolerance have become Kazakhstan‘s top
social priorities. Lifelong learning is the mantra for all Kazakhs, Nazarbayev said. By 2020, the
country should switch from an 11-year school curriculum to a 12-year curriculum, and, for that, 400
new schools will be built by 2015, the president said. Nazarbayev University and other schools built
around the countrywill also be instrumental in furthering educational reforms. By 2020, at least two
universities in Kazakhstan should be ranked among the best universities in the world, the president
said
What is more, according to Nazarbayev, the people in Kazakhstan should have ―an
opportunity to save for education of their children, with interest bonuses added from the
government.‖ Also, a National Council on Vocational Personnel Training will be set up. Financing
for healthcare now stands at 3.2 percent of the GDP. The population is much healthier and long-
lived as a result.
By 2013, the Unified National Healthcare System will be fully introduced, with the ultimate
goal of extending the average life span to 72 years by 2020. The Government will also promote a
healthy lifestyle.
Another top priority is the development of languages. ―Peace and harmony are our common
achievement,‖ the President said. More than 60 percent of the population speaks Kazakh, the state
language that 20 years ago was almost on the brink of extinction due to suppression from Soviet
authorities. Plans are afoot to have 80 percent of the ethnically diverse population speak Kazakh by
2017 and 95 percent by 2020.
―In ten years, 100 percent of school graduates will speak the state language,‖ the President
said. The government also promotes the study of the Russian and other languages. English is also a
priority and ―by 2020, 20 percent of the population should speak English,‖ the president said. ―By
May 2011, I instruct the Government to develop a new employment programme,‖ Nazarbayev said.
―This year, we are also raising pensions, scholarships and budget wages by 30 percent. For two
years, we have been raising them by 25 percent each. As planned, by 2012, average pensions,
salaries and scholarships will grow twice as fast compared to 2008.‖Kazakhstan has a bicameral
Parliament, made up of lower house (the Majilis) and upper house (the Senate). Since 2007, the
number of MP‘s has been increased:
from 39 to 47 members in Senate. The President appoints 15 of them from the choice of
prominent public figures, academics, intellectuals etc.
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from 77 to 107 members in Majilis (main legislative body). 98 of the Majilis deputies are
elected in a nationwide constituency on the basis of proportional party lists. Nine of the
Majilis deputies are elected by the Assembly of the People of Kazakhstan (an umbrella
grouping of more than 100 ethnic groups in Kazakhstan).
The Constitution of the Republic of Kazakhstan approved through a national referendum in
August 1995 and ratified the following month replaced an earlier ―soviet-style‖ constitution adopted
in the wake of independence from the Soviet Union. The Constitution provides for a democratic and
secular state. State governance is divided among the executive, legislative and judicial branches. The
President is considered the head of state. The Constitutional Council is charged with the
responsibility of deciding when to hold presidential and parliamentary elections and examining
legislation for compliance with the Constitution.
POLITICAL PROGRESS
Kazakhstan began to reform its political system immediately after becoming independent. At
the time there was economic recession, hyperinflation (up to 3000%) and a drastic decline in living
standards. The groundwork for a market-based economy, political pluralism, amulti-party system, an
independent media, NGOs and a vibrant civil society were non-existent. Kazakhstan chose to build
the country based on democratic values by joining the OSCE and signing the Helsinki Final Act and
Paris Charter. The new political system developed in four stages.
In the first stage (1990–1993), Kazakhstan dismantled the previous soviet style political
structure and established the basis for the parliament-president political system‘s development. In
the second stage (1993–1995), Kazakhstan selected a new model of political development that
reflects political, economic, social, cultural, psychological, geopolitical and ethnic specificities of
the country. The first Constitution was adopted, the first elections to the Parliament and newly
established local government bodies (Maslikhats) were held. For the first time in the history
Kazakhstan, the executive, legislative and judiciary bodies were defined as independent branches of
government.
The third stage (1995–1998) brought Kazakhstan to 1995 Referendum of the new
Constitution and to the election of a professional bicameral Parliament. During this period,
Kazakhstan also shaped its long-term vision of strategic development. -In 1997, President
Nazarbayev adopted the national strategy ―Kazakhstan 2030‖ - a road-map for Kazakhstan‘s future
growth, which identified seven national priorities through the year 2030:
National security. Ensure development of Kazakhstan as an independent sovereign state
preserving its complete territorial integrity;
Safeguard and strengthen domestic political stability and national unity;
Economic growth based on an open market economy with high levels of foreign investments
and internal savings. Achieve realistic and sustainable rates of economic growth;
Health, education and well-being of the citizens of Kazakhstan. Improve living standards,
health, education and opportunities of Kazakhss and improve the natural environment in the
country;
Energy resources. Effectively utilize energy resources of Kazakhstan through rapid increases
in extracting and exploring oil and gas with the aim of gaining revenues to engender stable
and diversified economic growth and improved living standards;
Develop transportation and communications infrastructure to enhance national security,
political stability and economic growth.
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Establish a professional corps of civil servants capable of acting as representatives of the
people in achieving national priorities.
The fourth stage of political development (1998–2007) helped Kazakhstan to prioritize the
process of democratic development and bring it into compliance with economic development.
Through the Democratization Programme, which was presented in 1998, and efforts to expend
power of the Parliament Kazakhstan came to the understanding of the importance of strong
Parliament, political parties and civil society. Therefore, in 2002, Kazakhstan established the
institution of Ombudsman on human rights, in 2003 - the Human Rights Commission, in 2006 - the
State Commission on Democracy that provides a forum for dialogue on further democratization. It
also adopted the 2003-2005 Program of the state support of non-governmental organizations and the
2006-2011 Concept of civil society development.
These helped Kazakhstan to move to the fifth stage of political development (2007- present).
Its goal is to ensure steady progress on the fundamental principles of establishing a democracy and
civil society that will serve as a model for other countries in Central Asia. Since 2007, Kazakhstan
has made notable advances in Constitutional reforms thatwere designed to establish a genuine
democracy and civil society. The reform included laws that amended the Constitution, improved
elections, provided judicial reform, reduced the presidential term from 7 to 5 years, increased the
powers of Parliament, introduced proportional representation to elect members of the Majilis
(Parliament) and established a party-based parliamentary system.
The Law amending the Constitution was signed by President Nazarbayev on May 21, 2007
as the result of joint work of the State Democracy Commission and Ad Hoc Working Group. This
law enlarged the powers of the Parliament, raised the role of political parties, thus transforming
Kazakhstan from presidential into presidential-parliamentary republic.
The renewed Constitutional Law ―On elections in the Republic of Kazakhstan‖ (signed on
June 21st 2007) introduced proportional representation, political parties-based system for election to
the Majlis. The Assembly of the People of Kazakhstan gained the status of the constitutional body
together with the fixed quota of seats - 9 mandates in the lower chamber of the Parliament. The
transition to the procedure by which the Government is formed by the parliamentary majority party
was completed. Depending on the outcome of the elections, partial state funding of political parties
wasintroduced. The maslikhats became the basis of local self-government. A number of ODIHR
recommendations were implemented. On August 18, 2007, the early elections to the Parliament took
place (as per the amended Constitution). This was the first election to the new, completely party-
based Parliament thus signalling the gradual move of Kazakhstan from a strong Presidential form of
rule toward a parliamentary majority system.
All of the efforts were acknowledged when Kazakhstan was unanimously selected by OSCE
member nations in 2007 to chair the Organization. The OSCE chairmanship, which Kazakhstan took
over in 2010, encouraged Kazakhstan to continue strengthening democracy in the country. President
Nazarbayev had already proposed additional reforms that included requiring the media to provide
equal coverage to all candidates and parties, reducing the requirements for registering as a political
party, prohibiting by law a single-party Parliament, eliminating the requirement to register electronic
media, including internet sites, and granting more authority to local officials over their own affairs.
The rule of law has been affirmed by the Constitutional Council and regional courts that have
recently issued a series of rulings upholding the rights of individuals, often against state and local
authorities, notably in cases involving religious freedom.
In February 2009, Kazakhstan signed into law new legislation regarding the media, elections,
political parties and local government. Through close cooperation and intensive discussions with
NGOs, political parties and OSCE institutions, Kazakhstan incorporated many of their proposals
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into a final draft of the new legislation. The ODIHR and the Office of the Representative on the
Freedom of the Media were very active and most helpful in bringing Kazakhstan‘s laws in line with
OSCE standards. As Chargй d'Affaires of the U.S. Mission to the OSCE Kyle Scott stated at the
OSCE Permanent Council in Vienna: ―This legislation marks a step forward on Kazakhstan‘s path
to democracy.‖
The law on elections. Twenty-nine amendments have been signed into the law on elections.
Five of them were recommended by the ODIHR/OSCE. Eight of them were recommended by
Kazakhstan‘s human rights community in close cooperation with U.S. human rights NGOs,
including Freedom House. The law now guarantees representation of at least two parties in the
Parliament even if one of them does not win enough votes (i.e., over a 7 percent threshold). The law
excludes the possibility of electing a one-party Parliament, makes it mandatory for the media to
equally cover the candidates and parties, including the period of nomination and registration, cancels
any requirements for thousands of foreign observers, who usually come to Kazakhstan during
elections, to have any relevant experience to monitor electoral process and decentralizes authority of
the Central election commission in favor of local election commissions. Local election commissions
have greater authority in organizing the electoral process, such as determining their schedules to
make them more convenient for the voters, increases salaries for non-public servant members of
election commissions at the election periods and authorizes the Central Election Commission to
strictly regulate the process of issuing absentee ballots.
The law on political parties. Seven amendments signed into the law on political parties partly
reflect recommendations made by the OSCE and Kazakhstan‘s human rights community, in close
cooperation with U.S. human rights NGOs, including Freedom House. The original goal of the
amendments is to further liberalize and expand the space for political debate. The law significantly
reduces the number of requirements for registering a political party (in the new text of the law even
a party that submits erroneous lists of its members cannot be denied registration on these grounds),
decreases required membership size for a party to be registered (now a party needs to have only 600
members in each of the country‘s regions and 40,000 members nationwide to be registered as a
national political party), simplifies the registration process and the funding of political parties to
strengthen their role in public life, regulates the legal and technical process of establishing (merger,
incorporation, split-up or split-off) a political party (the ODIHR recommendation) and provides
public financing of political parties.
The law on mass media addressed the concerns that have been voiced by the media
community. It has been amended to increase the rights of journalists and media to ensure greater
self-regulation. The amendments reflect the recommendations of the ODIHR. The law removes
administrative barriers and re-registration requirements for mass media and extends the rights of
journalists. For example, media representatives are not required to ask for permission to use
recording equipment when conducting interviews, provides the right of a citizen to demand
retraction of the published defamation or slander if a person who published this information cannot
support the allegations with facts and denies this right to citizens, thus upholding the adversarial
principle in the court‘s deliberations.
On January 28 2009, the OSCE Representative on Freedom of the Media, Miklos Haraszti,
welcomed the adoption of a number of amendments to Kazakhstan's media law and underscored the
need for further democratization of media governance. "I welcome the easing of administrative
burdens on the media, as well as the fact that civil society was involved in the discussion about the
changes," Haraszti wrote in a letter to Kazakhstan's Foreign Minister, Marat Tazhin, and Culture and
Information Minister, Mukhtar Kul Mukhammed. "However, the process of liberalization of
Kazakhstan's media law should continue, because the current body of law, notwithstanding these
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useful amendments, still fails to meet several international standards." He provided the authorities
with a list of the most important reforms that still need to be carried out, including:
The media market should be de-monopolized;
Registration should be managed by an independent body, and should be declarative
and not permissive;
The use of closure or confiscation of circulation as a penalty should be abolished;
Libel and insult should be decriminalized;
Only officials should be in charge of protecting classified information; breach of
secrecy by others, including journalists, should not be criminalized.
Haraszti offered his office's assistance to help the Kazakh government carry out
further reforms in the field of media legislation.
The law on local self-government codifies local self-governance in the regions (oblast),
districts, cities, districts within the cities, towns and villages, significantly increases the political role
of Maslikhates (local elected legislatures) and improves the effectiveness of a ―checks and balances
system‖ between maslikhates and akimates (local executives). The law reflects the experience of
both France and Britain in providing local self-governance. It includes attributes of the European
Charter on local self-government, is generally in line with the final document of the 1990
Copenhagen Meeting and reflects the vision of the United States on independence of local
governance.
Members of Maslikhates are elected by people of a region. They approve regional
development programs, claim the regional budget, and are accountable to voters. Voters have the
right to request a report on the work of members of Maslikhates, as well as to recall them in case of
a duties‘ breach. Heads of Akimats (akims) appointed by the President of Kazakhstan take office
only after approval by Maslikhate. They are accountable to Maslikhates on budget issues. The law
also lowers the needed majority (to 51 percent) for Maslikhates to vote Akims out of office.
Kazakhstan has also signed and ratified 35 major international instruments aimed at
upholding human rights and civil liberties. These include international treaties on civil, political,
economic, social and cultural rights, as well as conventions of the International Labor Organization,
the optional protocol to the International Treaty on Civil and Political Rights and the protocol to the
Convention Against Torture.
REFERENDUM-2020 and Kazakhstan‟s commitments to democracy. 2011 began with a
jumpstart for political life in Kazakhstan with the initiative of a group of Kazakh citizens to hold a
national referendum to extend the incumbent President‘s term of office until 2020. The logic behind
their proposal was that Kazakhstan has prospered under President Nazarbayev. The country has
established good governance, dynamic economic growth and basic rights and freedoms for its
citizens. As a young nation, Kazakhstan still faces tough challenges in an unstable environment.
Those in favor of referendum argued that in order to ensure the continuity of economic reforms and
political modernization, Kazakhstan needed long-term stability, which President Nazarbayev best
ensured.
This initiative generated a great deal of support. More than 5 million people, or 55 percent of
registered voters, signed a petition in favor of holding the referendum. The Parliament also approved
the initiative and adopted constitutional changes to pave the way for the referendum.
But President Nazarbayev chose to adhere to democratic principles by vetoing the initiative.
The matter was also sent to the Constitutional Council of Kazakhstan to check its compliance with
the country‘s Constitution. The Council ruled that it contradicts the provisions of the Constitution.
The President announced his full agreement with the conclusion of the Constitutional Council. Not
to disappoint the supporters of the initiative, he offered a compromise solution by calling early
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presidential elections, thus agreeing to cut his term of office by two years. Later, April 3rd was set
as the date for presidential elections.
The President‘s decision not to create a precedent that could have been interpreted as a
setback for the fledgling democracy was overwhelmingly appreciated on the international scene. In a
letter to the President, U.S. legislators said they ―commended the decision of the President‖ and
stated that ―the West was right to pin its hope on Kazakhstan as a stabilizing partner committed to
democracy and the rule of law in one of the world‘s tougher neighborhoods.‖
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PRESIDENTIAL ELECTIONS 2011
Kazakhstan as an emerging democracy spared no effort to ensure that its presidential elections were
free and fairand upheld high international standards and remain fully open for international and
domestic observers.
Kazakhstan‘s Central Electoral Commission confirmed
applications from eleven presidential candidates. .
Nominees of three political parties continued the
presidential campaign: acting President Nursultan
Nazarbayev from the Nur Otan Party, Secretary of the
Communist Party‘s Central Committee Zhambyl
Akhmetbekov and Senator Gani Kasymov from the Party of Patriots. Another candidate for the
presidency, the leader of the Zheltoksan /December/ patriotic movement, filed an application on the
last day of the nominations period.
On April 3, 2011 the presidential elections were held. The result: a landslide victory for the
incumbent President. According to the Central Election Commission of Kazakhstan, the following
was the distribution of votes among the candidates:
Communist Zhambyl Ahmetbekov has won 1.36% of all the votes.
Mels Eleusizov, leader of the Environmental Union ―Tabigat‖ (―Nature‖) - 1.15%.
Gani Kasimov, the leader of the Patriots Party – 1.94%.
Incumbent President Nursultan Nazarbayev – 95.55 %.
For western onlookers, the figure might
seem too high to be true. However,
observers who visited Kazakhstan during
the elections confirmed the genuine
popularity of the leader among the
citizens.
The result was foreshadowed by a
survey conducted by IRI (International
Republican Institute)/NED (National
Endowment for Democracy). The
survey, which took place February,
2011, indicated a 90% approval rate for Mr. Nazarbayev.
To ensure open and transparent elections, Kazakhstan welcomed 1,059 observers, including 357
from the ODIHR/OSCE, 426 from CIS observer mission, 13 from SCO observer mission, 7 from
Turkic Speaking Countries Parliamentary Assembly, 5 from the Organization of the Islamic
Conference, 8 from the Council of Europe Parliamentary Assembly (PACE), 80 from OSCE
Parliamentary Assembly, 163 from 25 different countries, 90 foreign media representatives.
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A majority of the observers, including from CIS, SCO, CSTO and OIC, confirmed that the elections
were ―free and fair.‖ The head of the CIS observation mission, Sergey Lebedev, said, ―The
necessary conditions had been created in the Republic for international observation of the elections,
attesting to the openness of the electoral process. Furthermore, the mission concluded that the
legislation of the Republic of Kazakhstan makes it possible to hold free and democratic elections on
the basis of universal, equal and direct suffrage.‖
The head of the SCO observation mission, Muratbek Imanaliyev, also declared that the elections had
been free and transparent. The head of the observation mission sent by the Parliamentary Assembly
of the Turkic-Speaking Countries, Aidyn Mirzazade, considered the presidential elections in
Kazakhstan to be legitimate and in compliance with all international democratic standards.
The elections were also monitored by a group from the U.S. comprised political and economic
analysts from the Center for Strategic and International Studies, Institute for New Democracies,
Hudson Institute, Georgetown University and The Jamestown Foundation. On April 4, 2011 the
group issued the ―Independent Observer Mission for the Presidential Election in Kazakhstan: Post-
Election Assessment.‖ It found:
- The electoral process was generally well-administered and transparent at almost all the 65
polling stations that were visited;
- Organizational errors or significant lapses seemed rare and could not detract from the overall
impression of a decently run electoral process;
- Electoral commission members were invariably open and forthcoming with information
about technical aspects of the process;
- The turnout rate for these elections was extraordinarily high at 89.9 percent. Such a turnout
bespeaks a yearning to maintain stability and political continuity in Kazakhstan. Voters often
said that they valued Kazakhstan‘s stability, security, and steadily increasing living standards
in their country. They contrasted this with the chaos engulfing many Muslim countries, from
North Africa and the Middle East to Afghanistan and Kyrgyzstan next door;
- In most places election commissions members had undergone training ahead of the
presidential election;
Improvements in electoral process were found by the delegation of the Parliamentary Assembly of
the Council of Europe. The head of the delegation said, ―PACE has observed elections in
Kazakhstan in the past and is pleased to state progress from one election to another in this country.
The delegation is united in its view that despite certain imperfections that invariably mark all
elections in any country, the outcome of this vote truly reflects the will of Kazakhstan‘s electorate.‖
The ODIHR/OSCE observer mission, which usually gives a cautious assessment of the elections in
Kazakhstan, in its statement acknowledged improvements compared to previous elections. It stated
that ―compared to the last presidential elections, the media provided more equality in covering
candidates in the news programmes.‖ At the same time, it came up with a number of criticisms and
recommendations for further improvements needed in the electoral process. Kazakh authorities have
committed to continue working with ODIHR/OSCE on its recommendations in a cooperative
manner.
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Against the backdrop of the positive assessment of all the international observers, ODIHR‘s focus
on irregularities caught everyone‘s attention. It is widely held view in Kazakhstan that ODIHR
mission of observers did not grasp the free and transparent atmosphere, in which elections were
held, as well as a significant progress in Kazakhstan in this direction. The ODIHR estimations did
not reflect the fact that the authorities and society exercised political will and aspiration to facilitate
that the elections match the international standards.
The international community also recognized the legitimacy of the elections. Among the world
leaders who congratulated Kazakhstan were French President Nicolas Sarkozy, Indian Prime
Minister Manmohan Singh, Russian President Dmitry Medvedev, Chinese President Hu Jintao and
Turkish Prime Minister Recep Tayyip Erdogan.
U.S. congressmen, including Gregory Meeks, Michael Honda, Eni Faleomavaega, John Conyers,
Laura Richardson, Madeleine Bordallo, in their congratulatory message to the President said,
―Although we are fully aware that the election is not without criticism, we commend you for
inviting more than 1059 international observers to monitor the conduct of the electoral process.‖
During the meeting of the House of Representatives on April 7, 2011, Rep. Faleomavaega stated,
―Since its independence, Kazakhstan has fully supported US-led efforts against nuclear proliferation
and, under the leadership of President Nazarbayev, Kazakhstan continues to provide indispensable
aid to US troops in Afghanistan. I am proud of Kazakhstan‘s accomplishments and, once more, I
congratulate President Nazarbayev on his re-election as President of Kazakhstan. I have every
confidence that he will spare no effort in delivering stability, security and prosperity for and on
behalf of the people of the Republic of Kazakhstan.‖
The U.S. Government was among the first to offer its opinion on the election results. The U.S.
Embassy in Astana issued a statement on April 4, 2011, which reads:
―We congratulate President Nursultan Nazarbayev on his re-election as President of the Republic of
Kazakhstan. We look forward to continuing to work with him and the people of Kazakhstan to
implement our broad-ranging strategic partnership.
―We endorse the preliminary conclusions of the Organization for Security and Cooperation in
Europe (OSCE). We appreciate the improvements it noted. We urge the government of Kazakhstan
to rapidly address the shortcomings the report highlighted. We welcome Kazakhstan‘s
commitments to further liberalize the political environment and believe that continued
improvements in the electoral process are critical components.‖
In his inaugural speech on April 8, President Nazarbayev
outlined major priorities of his new term. The democratic
reforms featured highly in his speech.
The president said that he always envisioned Kazakhstan ―as a
modern and strong nation, an equal partner of advanced
powers,‖ That is why he and his team are building Kazakhstan
―as an open economy and full-fledged democracy,‖ he said. The
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pace of Kazakh reforms, he said, was ―higher than in any other developed countries, where it took
them centuries to develop their democracies.‖ He reaffirmed his commitment and determination to
further ―democratization of the society.‖
He vowed to seek the best way of ensuring checks and balances in the government system through
―expanding powers of the Parliament and responsibilities of the Government.‖ He also spoke in
favor of decentralizing power and delegating more authority to the local regions.
The Kazakh leader also promised to ―further improve the electoral process.‖ He underscored the
need for ―developing a political culture.‖ He noted the absence of ―black pr‖ during the elections.
The elections were held in ―a stable atmosphere, without extreme confrontation,‖ he said, which
should be the direction for future election campaigns. ―Only this way will it be possible to develop a
real democracy and an efficient multiparty system,‖ he said.
The President also vowed to promote a ―responsible and free media.‖ He also underlined the
importance of making sure that ―every citizen is equal before the law.‖ For that to happen, he
expressed his willingness to ―take new steps to further improve the judicial system.‖
―An uncompromising fight against corruption‖ is another priority for the re-elected President. There
will be more ―rigid actions in place against corruption through criminal prosecution and eliminating
loopholes in the laws,‖ he said. He also assured citizens that there would be ―adequate protection of
rights and properties of individuals and legal entities.‖
POLITICAL PARTIES Kazakhstan‘s law on political parties prohibits parties based on ethnic origin, religion, or gender.
There are 10 political parties in Kazakhstan as compared to 13 in 2006. Four parties representing
supporters of the current Government merged by the end of 2006, and as a result ―Nur-Otan‖ - a
new pro-presidential pro-reform party able to effectively represent interests of its numerous
supporters - emerged on the political stage of Kazakhstan. Also in 2006 a leftist Nationwide Social
Democratic Party was registered joining the ranks of several other opposition parties. The beginning
of 2007 has seen a robust process of mergers and consolidation of political parties, including
opposition ones, particularly, in the run-up to 18 August, 2007 parliamentary elections.
CIVIL SOCIETY
Since its independence, Kazakhstan has been fully engaged in the transition from a Soviet political
system to democracy. It charts its own destiny under a banner of increasing freedom and decided to
follow a formula that has worked for other democracies and requires the involvement of all
stakeholders in the society. In the mid-1990s, Kazakhstan decided to establish and maintain a strong
and independent civil society.
In close cooperation with European and American partners, Kazakhstan has been creating a
legal environment for NGO development and growth. Kazakhstan‘s non-for-profit legislation has
been internationally recognized as one of the best among the Commonwealth of Independent States.
The first measure was adopted in the early 1990s and gave a powerful boost to the development of
civic organizations in Kazakhstan. In the middle of the 1990s, the government separated NGOs from
commercial entities, significantly simplified the process of state registration, separated their activity
from government and granted them special benefit status. In its ―1998 NGO Sustainability Index in
Kazakhstan‖ report, USAID said, ―…NGOs exercised tax benefits without undue difficulty.‖
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Kazakhstan also has been providing opportunities for foreign and international donors to
provide financial support to the national non-for-profit sector through grants and other means. The
peak period of foreign support for the Kazakh NGO sector was from 1996 to 1998. Today, 162
international organizations are giving grants to Kazakhstan‘s NGOs and implementing various
programs in the country. Funds received by Kazakh NGOs under state contracts are exempt from
corporate income and value-added taxes.
Since Kazakhstan‘s independence, thousands of Kazakh NGOs have been trained by the
UNDP, the USAID, the OSCE and other foreign and international organizations to increase their
role in society and participate in nearly all spheres of public life. Recently, NGOs have become
increasingly active in advocacy efforts.
The United States Agency for International Development‟s (USAID‟s) 2010 NGO
Sustainability Index for Central and Eastern Europe and Eurasia scored Kazakhstan better than
many Eastern European and Eurasian countries and identified Kazakhstan as having achieved one of
the highest levels of NGO sector development among Central Asian countries. The report also
projected that the number of NGOs in Kazakhstan is expected to rise because of the ―stable domestic
policy climate laws that are favorable to NGOs.‖
The dynamic of NGO growth in numbers. In the early 1990s, about 400 NGOs were
established as Kazakhstan experienced a rapid rate of reform. These NGOs were mainly involved in
human rights issues and furthering democracy in the country. From 1994 to 1997, more than 1,600
NGOs were registered. That growth continues today. Last year, the number of NGOs rose by 10
percent. Today, more than 25,000 nonprofit organizations are active in Kazakhstan, including
13,000 NGOs. More than 550,000 people are involved in the ―third sector.‖
Cooperation between government and NGOs. At the beginning of 2002, the government
decided to expand its effort to develop the third sector. It approved the Concept of State Support for
Non-Commercial Organizations, including support for socially significant projects of NGOs through
the signing of social contracts with them. In 2006, Kazakhstan adopted the Concept of Civil Society
Development for 2006-2011, a ―road map‖ for improving relations between the government and the
not-for-profit sector. During the first and second phases of implementing the Concept, Kazakhstan
reduced the registration fee for NGOs, signed and ratified the Optional Protocol to the 1966
International Covenant on Civil and Political Rights, simplified long-criticized reporting
requirements for NGOs receiving foreign aid and lifted the ban on state financing of NGOs. A
number of laws have encouraged active cooperation with civil society institutions.
Kazakhstan will continue drafting an effective legal framework for NGOs. The original goal
was to promote and secure stable development of civil institutions and improve the quality of
dialogue between the government and NGO community. One of the most prominent platforms for
this dialogue was established in 2003 with the creation of the so-called biannual ―Civic Forum.‖
Civic Forum. Years ago, President Nazarbayev called for the government to cooperate with
the NGO sector, recognizing the power that partnerships with these organizations can play in
developing and improving a civil society. As a result, Kazakhstan initiated the Civil Forum to
facilitate greater involvement of the NGO community in the government‘s efforts for political
reform nationwide. Civil Forum is a mechanism for engaging in meaningful dialogue, positive
interaction and results-driven collaboration with NGOs, giving these organizations direct access to
decision-makers within government. This process promotes the kind of participation, synergy and
exchange that result in the formulation of beneficial policies and laws. The Civic Forum provides
the opportunity for Kazakh NGOs to participate in government policy discussions and formulation.
At the time of the Civil Forum I, the nongovernmental sector of Kazakhstan was recognized as an
important power within the democratic process. A new partnership among the government, business,
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and NGOs was announced during this initial forum. The Civil Alliance of Kazakhstan was created
during Civil Forum II. The Concept of Civil Sector Development was adopted and approved by the
President. The action plan for the concept implementation was developed and approved by the
Prime Minister during this forum as well. Civil Forum III was devoted to further developing
partnerships within the framework of the civil society democratization and realization of the Civil
Sector Development Concept.
The 2009 Civic Forum IV held in Astana on November 23-24 hosted more than 700
participants from an array of countries, including the United States, Russia, Germany, France,
Ukraine and Azerbaijan. Representatives from trade unions, media, international and foreign NGOs,
central and local executive bodies, and regionally elected representatives from various political
parties attended. ―The Civic Forum, which this year is the largest ever, proves that the partnership
between Kazakh society and the Government is deepening,‖ said Program Director for Central Asia
at the International Center for Not-for-Profit Law (American based NGO) Elizabeth Warner.
The forum was opened by 2010 OSCE Chairman-in-Office H.E. Kanat Saudabayev. He
stressed that cooperation between NGOs and the government will only increase as Kazakhstan
begins its chairmanship of the Organization for Security and Co-operation in Europe (OSCE). He
called on NGOs to contribute to Kazakhstan‘s success as chair of the OSCE, which he said is a
―great honor and huge responsibility not only for state organs but for all the institutions of civil
society, including NGOs.‖
At the 2009 forum, the government reported to assembled NGOs that it had implemented
226 socially significant projects during the previous year—all in partnership with various NGOs. As
a result, Kazakhstan was able to avoid social instability and, through this partnership, minimized the
after-effects of the world economic recession. This partnership has had a defining effect as observed
by Ms.Warner: ―Since the first Civic Forum in 2003, we have seen many important developments in
the partnership between the Government and civil society—simplified registration laws, the
participation of NGOs in policymaking at the national and regional levels, and the beginning of
more favorable tax laws that will promote private philanthropy.‖
One of the main outcomes of Civil Forum IV is the agreement reached between the
government and NGOs to continue working together on improving the quality of their cooperation,
the role of NGOs in the social and political life of the country, social monitoring, social orders,
among other important areas.
Setting the Course Together. One of the more telling signs of the ―deepening‖ partnership
on issues of political development has been the government‘s involvement in the drafting two
significant documents—the National Human Rights Action Plan of the Republic of Kazakhstan,
2009-2012, outlining steps to strengthen the national system of human rights protection, and the
Concept of Legal Policy for 2010-2020, which sets a plan for improving state governance based on
the principles of effectiveness and accountability, ensuring protection of human rights and freedoms,
and protecting the interests of the state and society.
Eighty percent of the Action Plan was developed by Kazakhstan‘s non-governmental
organizations. It was preceded by a baseline study and report on human rights in Kazakhstan that
analyzed national legislation, law enforcement practices and compliance with international law
provisions in human rights protection. The Human Rights Commission and the group working on
the plan closely studied the breath of international experiences. The Legal Concept was also
prepared in close cooperation with Kazakhstan‘s NGO community. It defines the main directions of
legal policy and is intended as a foundation for the development of programs in the sphere of legal
policy and is projected to bring Kazakhstan‘s legal system closer to international standards in such
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areas as the constitution, administration, taxation, customs, as well as civil, financial, and criminal
law. It envisages reforms in law enforcement, the judiciary and the protection of human rights.
MIDDLE CLASS
Unlike many nations that have recently developed their energy reserves, the rise in revenues from
foreign energy sales has had a trickle-down effect in Kazakhstan, producing the embryo of a new
middle class. Kazakhstan has made a cornerstone of its social policy fostering the development of an
indigenous middle class, seeing it as a social and political guarantor of stability. Privatisation,
housing, banking, education reforms and numerous initiatives on supporting small and medium
businesses have helped Kazakhstan‘s emerging middle class. Kazakhstan‘s middle class has begun
to use its disposable income to travel abroad and to acquire items essential for a Western lifestyle
such as computers and cell-phones. According to Kazakhstan‘s Statistics Agency, in mid-2008 there
were more than 8 mln. cell phone users in Kazakhstan, representing more than half of the
population. As the Kazakh middle class became increasingly visible, new political parties and the
government itself began to vie for its support.
While estimates vary, some analysts put its numbers at 25 percent of the total population,
representing people who consume 50-80 percent of the financial value of all goods sold in
Kazakhstan. Analysts further divide this group into two sections, a lower middle class, with
individual annual incomes of $6,000-9,000, (an estimated 70 percent of the stratum,) and the
―upper‖ middle class, with annual individual incomes of $9,000-15,000, (30 percent of the total
group). According to official Kazakh statistics, salaries increased by 21 percent in 2001 and by 12
percent in 2002 and have consistently risen each year since.
COURT SYSTEM
The legal system of Kazakhstan owes its origin to the Continental (Roman-German) legal family.
Since independence, Kazakhstan has successfully reformed its legal and judicial sectors and
constantly continues the modernization process by introducing the best world practices. Such
reforms as the move of penitentiary system from the Ministry of Interior to the Ministry of Justice,
introduction of a moratorium on the death penalty with a view of future total abolition and the
introduction of jury trials for the most serious crimes have all won international acclaim.
There are local and oblast (regional) level courts and a national-level Supreme Court and
Constitutional Council. A special arbitration court hears disputes between state enterprises. There is
also a military court system. Local level courts serve as courts of first instance for less serious
crimes such as theft and vandalism. Oblast level courts hear more serious criminal cases and also
hear cases in rural areas where no local courts have been established. A judgment by a local court
may be appealed to the oblast level. The Supreme Court hears appeals from the oblast courts. The
constitution establishes a seven member Constitutional Council to determine the constitutionality of
laws adopted by the legislature. It also rules on challenges to elections and referendums and
interprets the constitution. The president appoints three of its members, including the chair.
Under constitutional amendments of 1998, the president appoints a chairperson of a Supreme
Judicial Council, which nominates judges for the Supreme Court. The Council consists of the
chairperson of the Constitutional Council, the chairperson of the Supreme Court, the Prosecutor
General, the Minister of Justice, senators, judges, and other persons appointed by the president. The
president recommends and the senate (upper legislative chamber) approves these nominees for the
Supreme Court. Oblast judges (nominated by the Supreme Judicial Council) are appointed by the
president. Lower level judges are appointed by the President from a list presented by the Ministry of
Justice. The Ministry receives the list from a Qualification Collegiums of Justice, composed of
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deputies from the Majlis (lower legislative chamber), judges, prosecutors, and others appointed by
the president). Under legislation approved in 1996, judges serve for life.
In accordance with 2008 Constitutional reform, the judicial-legal system was improved with
the aim of strengthening the independence of courts in pronouncing judgments. The reform
facilitated a near total abolishment of capital punishment in Kazakhstan, limiting its application
exclusively to terrorist crimes involving the loss of human life, or wartime crimes. A system of
judicial custody has been introduced and the Constitution prohibits investigation by the Office of
Public Prosecutor. These reforms are directed at further democratization of the institutions of the
Government and society. In order to make the legislation activity more effective, the Kazakh
Government is in the process of creating a system that would be modern in content and have
regulations that vividly reflect all stages of legislation and law-enforcement activity.
Each Legal Act is being evaluated as per international standards to ensure that the interests of
Kazakh citizens, society and the State are comprehensively and rationally taken into consideration.
JUVENILE JUSTICE REFORM IN KAZAKHSTAN. Kazakhstan, like other countries
that were part of the Union of Soviet Socialist Republics (USSR), did not have a juvenile justice
system at independence. Some institutions specifically for children did exist, notably juvenile
correctional facilities and juvenile police. But there was no law on juvenile justice, nor specialized
courts or judges. Juveniles accused of an offence were tried by ordinary criminal courts, under the
Criminal Code and the Code of Criminal Procedure.
While offenses by juveniles increased in the years following independence, they have been
decreasing since 1994. In recent years, the number of offences has fallen from 8,237 in 2002 to
5,383 in 2007. The decline has been dramatic for administrative offenses, such as drunkenness, drug
use and disorderly conduct, and less pronounced for criminal offenses. The number of offenders has
remained relatively stable during these years, however, apparently due to the growing number of
crimes committed by juveniles acting as a group. Nevertheless, the number of convicted juvenile
offenders has diminished by more than half since 2000, and the number of juveniles given custodial
sentences annually has fallen from 1,668 in 2000 to 751 in 2006. The total population of the four
juvenile correctional facilities was 473 persons in 2007, and the number in ‗pretrial‘ detention
facilities was 459.
UNICEF supported a situation analysis on juvenile justice in 2000. The lead role then passed
to the Open Society Institute, which undertook a major project from 2001 to 2006 (the ‗Juvenile
Justice Project‘). The project led to a comprehensive set of recommendations, many of which have
been incorporated into a ‗Juvenile Justice System Development Concept‘ approved by the President
in 2008. Adoption of this ‗Concept‘ marks the beginning of a key stage in the development of
juvenile justice in Kazakhstan.
In 2010, a UN assessment team found much that is positive: a commitment to the creation of
a juvenile justice system that complies with international standards and best practices, strong
cooperation with the international community, pilot specialized juvenile courts and juvenile police
units, a specialized defense team in Almaty, the improvement of conditions in colonies and the
policy of early release of juvenile prisoners who show evidence of rehabilitation.
The ‗Juvenile Justice System Development Concept‘ establishes the basic framework for the
future juvenile justice system. The time frame for the creation of this system is 2009–2011. The
Open Society Institute is no longer involved in juvenile justice. The Organization for Security and
Co-operation in Europe (OSCE) supports the development of probation and mediation, but does not
play a direct role in juvenile justice. The government has asked UNICEF to help develop the
juvenile justice system, which builds on UNICEF‘s previous work on de-institutionalization.
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MEDIA IN KAZAKHSTAN
When it emerged on the world stage from the shackles of
the Soviet Union in 1991, Kazakhstan began to develop its media
market. It started with only few media outlets, purely official, and
now has more than 2,000 local media resources, about 85 percent
of which are non-governmental.
There are major newspapers as well as TV and radio
channels providing news and entertainment in 11 languages,
including German, Ukrainian, Turkish and Ukrainian. Media
outlets broadcasting in ethnic languages receive grants and other
types of financial support from the national budget. In 2002, the
first Kazakh satellite channel – Caspionet – was launched and
broadcasts both in the country and abroad.
International media corporations such as CNN, BBC,
Radio Free Europe, Deutsche Welle, Polonia and others broadcast
their programs in Kazakhstan through local cable television
companies. More than 80 foreign media outlets from more than 20
countries, including the largest news agencies such as the
Associated Press, Interfax, France Press,Xinhua, Reuters, ITAR-
TASS and Bridge news are accredited in Kazakhstan.
Benefits to the media include:
legal guarantees of the principles of freedom of speech;
continuing improvement of the legal framework for mass
media activity;
a transparent process of receiving frequencies for TV and
radio broadcasting. The Commission on providing rights
for radio frequency use comprises representatives of the
Parliament, international and Kazakhstan public
associations. Activity of the Commission is widely
covered by the mass media;
creation of economic conditions for mass media growth.
All the publications and TV stations are exempted from
VAT. Charges for use of radio frequency decrease almost
every year;
continuing and constructive cooperation with public
associations, international organizations, media research
institutes in the area of mass media development.
Major Kazakh media outlets
Newspapers
Kazakhstanskaya Pravda
www.kazpravda.kz
Ekspress-K
www.express-k.kz
Zhas Alash
www.zhasalash.kz
Liter
www.liter.kz
Vremya (opposition) –
www.time.kz
Karavan – www.caravan.kz
Zonakz (opposition web source)
www.zonakz.net
Geo (opposition web source)
www.geokz.tv
Television Khabar TV – www.khabar.kz
Kazakh Commercial TV (KTK)
www.ktk.kz
Caspionet – www.caspionet.kz
El Arna http://www.elarna.kz/
Hit TV www.hittv.kz
Channel 31
http://www.31.kz/
Radio Radio NS – www.ns.kz
Europa Plus –
www.europaplus.kz
Auto Radio – www.avtoradio.kz
News Agencies Kazinform – www.inform.kz
Interfax Kazakhstan –
www.interfax.kz
Kazakhstan Today –
www.gazeta.kz
Journalists‘ rights associations such as the Journalists Congress of Kazakhstan, Journalists
Union of Kazakhstan, Teleradiobroadcasters Association of Kazakhstan and offices of
international organizations (the OSCE, Human Rights Watch, Internews network and Adil
Soz) are all established in Kazakhstan;
close attention to journalists‘ development. The government provides grants and loans for
education in this field; a TV Journalism School was established.
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ETHNIC COMPOSITION. Kazakhstan has 130 nationalities within its borders.
Kazakhstan‘s ethnic composition is the driving force behind much of the country‘s political
and cultural life. The country‘s principal ethnic groups include Kazakh (63.1%), Russian (23.7%),
Uzbek (2.9%), Ukrainian (2.1%), Uighur (1.4%), Tatar (1.3%) and German (1.1%), and other
groups (4.4%).
Many nationalities were driven to Kazakhstan by political
repression and persecution. In Stalin‘s time, Kazakhstan
hosted 1.5 million political prisoners from Russia and other
regions of the USSR. More than 1.3 million people were
deported by Stalin during World War II ―as representatives of
unreliable nations,‖ All these people found understanding and
support among the Kazakh people.
The principle of equality of all ethnic groups is strictly
adhered to. About 40% of secondary schools use Russian in
teaching. In higher education, 70% is in Russian.. In areas of residence of compact ethnic groups
schools function with Uyghur, Tajik, Ukrainian, German, Polish and other languages of teaching.
The Sunday schools of national and cultural unions also receive support in the teaching of
native languages. Today 30 languages of ethnic groups are taught in about 200 Sunday schools and
3 schools of national revival. Magazines and newspapers are published and TV and radio programs
are broadcast in 11 national languages. Books in the languages of ethnic minorities of Kazakhstan
are published annually, with a total number exceeding 80,000. Besides Kazakh and Russian theatres,
there are also Uyghur, German and Korean ones.
Ethnic cultural centres have been established in all areas of Kazakhstan to support ethnic
identity of different nationalities. Their highest forum is the Assembly of peoples of Kazakhstan.
Today this powerful social force has become an organic part of the civil society and expresses its
views in the chambers of the Parliament, political parties, mass-media, state and non-government
organizations. The Assembly of peoples of Kazakhstan has become an important element of the
political system of Kazakhstan. It has forged the interests of all the ethnos and ensures the rights and
freedoms of all citizens regardless of their ethnic origin and religion. 27 republican and regional,
more than 300 district ethnic cultural unions enter the Assembly of people of Kazakhstan. Three
centres have an international status. The Assembly deals with 16 Small Regional Assemblies of
peoples of Kazakhstan which act as consultative bodies by the regional administrations and
comprise representatives of local ethnic-cultural and social unions.
Kazakhstan‘s efforts to ensure inter-ethnic peace and accord are essential for internal
stability and are widely recognized in the world. The Pope as well as UN General Secretary Koffi
Annan who paid visits to our country over the last five years cited Kazakhstan as the example of
inter-ethnic consent and sustainable development of a multi-ethnic society. The interethnic policy is
based on the principle of unity in variety. The civil peace and consent in Kazakhstan are the result of
a persistent policy of the Government which enjoys the support of the whole society.
Languages: Kazakh, which belongs to a Turkic group, spoken by over 70.1% of the
population, is the state language. Russian, spoken by 94.3%, enjoys an equal status under the
Constitution and is a means of interethnic communication in Kazakhstan. English is spoken by
15.4%. There is the National Trinity of Languages Program which aims to ensure that all
Kazakh citizens have full command of Kazakh, Russian and English to have an international
competitive edge in the 21st century. Newspapers, TV/Radio programs, school instruction are done
in 11 languages (Kazakh, Russian, Uzbek, German, Korean, English, etc.)
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RELIGIOUS COMPOSITION
Two major religions in Kazakhstan are Islam and Christianity (70.1% and 26.1% of all believers,
respectively). Most Muslims in Kazakhstan belong to the Sunni denomination of Islam, while most
of Christians belong to the Russian Orthodox Church. Kazakhstan is home to more than 40
religions. in Kazakhstan which are organised in more than 3000 religious organisations. It is worth
mentioning that although most people in Kazakhstan associate themselves with a certain religion,
most of the population is not deeply religious.
In accordance with 2009 US Department of State ―Human Rights Report: Kazakhstan,‖ the
constitution and law provide for freedom of religion and religious groups worship largely without
government interference. The government continues to express publicly its support for religious
tolerance and diversity. The country is multiethnic, with a long tradition of tolerance and secularism.
In particular, Muslim, Russian Orthodox, Roman Catholic, and Jewish leaders reported high levels
of acceptance in society. The number of registered religious groups and places of worship increased
during the year.
The State doesn‘t interfere with the activities of religious organizations (unless laws are
violated). The State provides no material or any other support, including financial aid, to religious
organizations. Religious organizations don‘t exercise any state functions. Religious organizations
don‘t interfere with the matters of the State. NATIONAL UNITY DOCTRINE. On the eve of the Day of Unity of Kazakhstan People on
May 1, 2010, the authorities and civil society groups achieved consensus on the final version of the
National Unity Doctrine, a project initiated by President Nazarbayev in October 2008 at the 14th Session
of the Assembly of People of Kazakhstan and designed to reflect the common ideals consolidating all
citizens of Kazakhstan into a single nation, regardless of one‘s ethnic heritage, religion, or social class.
The first draft, designed by the Assembly of People of Kazakhstan and published in news media in
November 2009, created much public interest and encouraged a wide debate on the ways to enhance
social cohesion in the country of 130 ethnicities and 40 religious denominations.
The Doctrine of National Unity, a blueprint for strengthening
the inter-ethnic harmony of Kazakhstan for years to come in a
country destined to maintain its multicultural character and
consolidation around common values, has caused a significant
debate, which ultimately made for stimulating dialog between
the government and civil society.
―The doctrine‘s final version proved that we can reach
agreements and understand each other. This wasn‘t forced upon
us, people discussed it and felt it through their hearts,‖ said
Murat Auezov, a prominent intellectual and philosopher.
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MYTHS IN THE WEST ABOUT KAZAKHSTAN
Common misconceptions. Kazakhstan is frequently described in Western media articles as a
―dictatorship‖ led by a ―corrupt‖ and ―autocratic ruler‖ who has been in power for ―too long.‖ In
fact, Kazakhstan is a country that is only 20 years old and that, in that short time, has achieved
remarkable progress in transforming itself from a former Soviet republic into a new and increasingly
successful Western-style democracy.
Kazakhstan has a record to be proud of. It has settled its borders with its vast neighbors. It has
strengthened its external security by a shrewd foreign policy that has achieved close ties with
Russia, China, the United States and Europe simultaneously. It has achieved an unprecedented
degree of interethnic harmony, thereby laying the foundation for internal stability. The economy has
been privatized and has been growing at about 10% per annum for the last several years. Oil exports
will continue to grow and steps have been taken to diversify the economy. Kazakhstan‘s citizens
have strong property rights. They are able to borrow money from banks to buy homes, land and
other property knowing that they have a real chance to develop a personal stake in the economy.
When they get old or ill, they know that they will receive adequate support and medical care.
The result is that today Kazakhstan is probably the most stable and developed country in the
former Soviet Union. How was this achieved? Many Westerners think the story is only about oil.
The truth is different. Since the beginning, President Nazarbayev and the Government have placed
emphasis on achieving political stability and economic growth, without which there can be no long-
term future for the country. The economy was privatized in the 1990s and today, thanks to this
policy and the rapid development of the energy sector, the nation is reaping the benefits. By staying
faithful to the strategy of putting the economy and stability first, the Government has been able to
unveil a series of important democratic reforms that will in time lead to a full-fledged democratic
state.
Despite the obvious signs of progress, Kazakhstan has been frequently criticized in the West
for being ―slow‖ to implement democratic reforms. This is unfair. In England, for example,
democracy developed over more than 700 years, with often violent interludes. In Kazakhstan, we
have achieved an extraordinary degree of political freedom in just twenty years without any
violence. Democracy is not only about laws and institutions. It is fundamentally about custom, habit
and culture - supported by property rights backed by the rule of law. In practice this means that it is
impossible to create a parliament one day and expect democratic debate to occur the next. One
cannot create a responsible opposition or media at the stroke of a pen. Establishing and nurturing an
independent judiciary is an even greater challenge, as is tackling corruption.
A common misconception in the West is that Kazakhstan is ―forcefully‖ being dragged down
the path to democracy against its will. This is not true. Kazakhstan has chosen to become a
democracy because it is the best way to run our society, ensure the prosperity of the people and
guarantee the long-term security of the state. A large and stable democracy in the heart of Central
Asia is surely a positive thing for Kazakhs and for their Western allies.
Over the last years, Kazakhstan‘s Government has set out and started to implement detailed
plans for further democratization and economic development. These reforms are an integral part of
the Government‘s domestic agenda and they will be persistently implemented.
Kazakhstan‘s impressive record in reforming its economic and political system, its global
promotion of inter-ethnic and inter-religious tolerance, its leadership in non-proliferation activities
and its overall responsible and constructive foreign and domestic policies were recognized in
December, 2007 when fifty-six nations of the Organization on Security and Cooperation in Europe
unanimously elected Kazakhstan as their Chair in 2010. Kazakhstan was the first former republic of
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the Soviet Union, the first nation ―to the East of Vienna,‖ and the first country with a Turkic-
speaking Muslim majority to lead the OSCE.
“The President for life” myth. In May 2007, President Nazarbayev announced a series of
important political reforms designed to take to the next stage Kazakhstan‘s unique experiment to
establish a genuine democracy and civil society. Among his proposals was judicial reform, the
reduction of the presidential term from seven to five years, increasing the powers of Parliament so
that the Government would be accountable to it, introducing proportional representation to elect
members of the Majilis (Lower House) and establishing a party-based parliamentary system.
Although the President‘s announcement was greeted positively in the United States and
Europe, the coverage in the Western media has been almost wholly negative, focusing on the
decision by the Majilis to grant President Nazarbayev the right to stand as a candidate for the
presidency for a third time when his term of office expired in 2012. The gist of the media comment
is that this is yet another example of the ―authoritarian‖ Nazarbayev centralizing power around
himself and his family. It was widely reported, quite incorrectly, that he has arranged for the Majilis
to vote him ―President for life.‖
Under the Constitution of the Republic of Kazakhstan, the maximum number of presidential
terms to which an individual may be elected is two. This rule is the same in the United States.
President Nazarbayev is currently serving his second term. The Majilis‘ decision to grant Mr.
Nazarbayev the right to run for a third term of office did not grant him the presidency ―for life.‖ It
permitted him by law to stand for election a third time, and only if he so chose to.
Second, this vote was a unanimous decision by the elected Members of Parliament. It was not
an executive order from the President. Under the Constitution, President Nazarbayev – indeed, any
president – cannot refuse Parliament‘s unanimous decision under any circumstances, whether he
supports the proposal or not.
Third, the Majilis made their decision in the light of the unique set of circumstances facing the
country, granting a privilege -- certainly – but also imposing an onerous duty upon a single
individual whose role in the founding of the State of Kazakhstan has been pivotal. This is not an
example of an autocratic leader propping up his power. It is the behavior of an increasingly stable
and prosperous society seeking to bolster one of the main anchors upon which the security and
welfare of millions depend.
The key to understanding what the Majilis voted for lies in understanding Kazakhstan's quest
for stability. As any informed observer of events in the former Soviet Union will acknowledge, ill-
considered or overhasty experiments with democracy have unleashed forces that have been deeply
harmful. The result has been economic failure, inter-ethnic discord and, in some cases, a reversal of
the very freedoms that democratic reform was supposed to bring about.
Kazakhstan, with its vast territory and small but diverse population, has a once-in-a-lifetime
opportunity to build a viable and prosperous state. It cannot afford to play with experiments that will
not succeed.
For this reason, the Majilis' decision to grant President Nazarbayev the unique status of being
able to stand for election to a third term of office was sensible and pragmatic. In the short- to
medium- term, it is the best guarantee for the stability. The law does not mean that Mr. Nazarbayev
will be President for life, or that he may stand for an indeterminate number of times, or even that he
might stand unopposed.
Religious Freedom: Myth or Reality? In Kazakhstan, religious freedom is guaranteed by the
Constitution, promoted by President Nazarbayev, praised by the country‘s Chief Rabbi and recently
affirmed by the Constitutional Council‘s landmark decision that further safeguards this fundamental
right. Yet the Western media and human rights organizations occasionally report on small incidents
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involving non-traditional religious groups in the country that have portrayed religious freedom as
controversial rather than a fundamental right. There is undeniable evidence that religious freedom is
a way of life in Kazakhstan. Kazakhstan‘s culture is multiethnic and tolerant; the state is secular and
neutral, converging in a way to insure that Kazakhstan, more than any country in Central Asia, is
respectful to any and all faiths. The Department of State‘s Human Rights report points to
Kazakhstan‘s Constitution and laws that ―provide for freedom of religion,‖ which guarantee this
right in Article 39. It states: ―Human rights and freedoms shall not be restricted in any way.‖ Article
14 prohibits ―discrimination on religious basis‖ and Article 19 insures that everyone has the ―right to
determine and indicate or not to indicate his/her ethnic, party and religious affiliation.‖
The Constitutional Council recently affirmed these rights by ruling that a proposed law that
would have limited the rights of certain individuals to practice their religion was declared to be
inconsistent with the country‘s Constitution that guarantees freedom of religion.
Although Kazakhstan is sixty percent Muslim, the Jewish community is exceptionally well
regarded, according to Chief Rabbi Yeshaya E. Cohen. In a statement before the Conference on
Human Rights and Religious Freedom, Rabbi Cohen reported, ―In Kazakhstan, every religion and
faith enjoys complete freedom of expression and government support and can well serve as an
authentic model to all countries with regard to preventing and eliminating anti-Semitism and
terrorism.‖
President Nazarbayev‘s personal commitment to respecting all faiths and insuring that
religious harmony is a way of life in Kazakhstan is evidenced by his hosting of the third triennial
Congress on World and Traditional Religions in July, 2009. It brought together hundreds of
religious leaders from around the world to promote religious tolerance, common ideals, and
interfaith dialogue.
During a visit to Kazakhstan in September 2001, Pope John Paul II stated: ―It is with great
affection that I kiss this land, which has given rise to a multi-ethnic state. Each guaranteed the same
rights and freedoms, the spirit of openness and cooperation is part of your tradition.‖
ANSWERING CRITICS. Despite Kazakhstan‘s impressive strides in transitioning to a
democratic society, criticisms by some non-government organizations unfairly portray Kazakhstan in
negative terms. While some of the criticism may be warranted, it should be viewed in the larger context
of Kazakhstan‘s commitment to and progress towards achieving a true democracy.
CRITICISM #1: Kazakhstan‘s 2011 election was not fairly conducted, nor was it transparent and
fully open to international observers.
RESPONSE: The improvements in electoral process were attested to by the majority of the 1,059
internatational observers. The head of the delegation of the Parliamentary Assembly of the Council of
Europe said, ―PACE has observed elections in Kazakhstan in the past and is pleased to state progress
from one election to another in this country. The delegation is united in its view that despite certain
imperfections that invariably mark all elections in any country, the outcome of this vote truly reflects the
will of Kazakhstan‘s electorate.‖
The ODIHR/OSCE observer mission, which usually gives a cautious assessment of the elections in
Kazakhstan, in its statement acknowledged the improvements as compared to previous elections. It
stated that ―compared to the last presidential elections, the media provided more equality in covering
candidates in the news programmes.‖ At the same time, it came up with a number of criticisms and
recommendations on further improvements needed in the electoral process. Kazakh authorities have
committed to continue working with ODIHR/OSCE on its recommendations in a cooperative manner.
ODIHR‘s focus on irregularities caught the attention of the many. It is the Kazakh view that
ODIHR mission of observers did not grasp the free and transparent atmosphere in which elections were
held, as well as the significant progress in Kazakhstan in this direction. The ODIHR estimations did not
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reflect the fact that the authorities and society exercised political will and aspire to attain international
standards.
CRTICISM #2: The media in Kazakhstan, with a few exceptions, is owned or controlled by the
state and those close to the President. The few independent news publications and broadcast outlets that
do exist are often subject to intimidation by state authorities.
RESPONSE: While press freedoms are limited in comparison to Western standards, Kazakhstan
has proven to be far more progressive than other countries in Central Asia. Unlike some neighboring
countries, where government control has tightened over the media, Kazakhstan is steadily embracing
reforms to bring media more into conformity with OSCE and international standards. This is a
remarkable achievement for a country that once had only a few media outlets, purely government
controlled. It now gives access to more than 2,000 local media resources, about 90 percent of which are
non-governmental.
In January, 2009, the Kazakh Parliament adopted a reform package that places limits on the
prosecution in libel cases, curtails the ability of arbitrary arrest and detention and extends the right of
media to appeal to the courts. The new media law was drafted by Kazakh NGOs, the Congress of
Journalists and the OSCE Representative for Media Freedom.
CRITICISM #3: Kazakhstan is essentially a one party state, under authoritarian rule with no viable
opposition party and little opportunity for citizens to challenge the incumbent party and vote out of
office the current leadership.
RESPONSE: It is undeniable that President Nazarbayev received over 90 percent of the vote and
his Nur Otan Party captured 88 percent without a single parliamentary seat going to the opposition in an
election generally considered to be fair and open. It is difficult for the critics to accept that such
staggering percentages are due to President Nazarbayev‘s personal popularity and the fact that opposing
parties do not have effective campaigns. Yet it is not unusual for a U.S. Congressman to receive ninety
percent of the vote in their contested races.
The Western media has coined the phrase ―President for life‖ to describe a constitutional
amendment allowing a third term for Nursultan Nazarbayev, yet the U. S. Constitution allowed four
terms for President Roosevelt. Recently, New York Mayor Michael Bloomberg pushed through a change
in the city‘s charter to allow him to run for a third term.
There is little question that President Nazarbayev is portrayed as an authoritative figure, but in
Kazakhstan he is viewed as a father-like leader who is moving the country out of its Soviet past toward
independence and prosperity. He exemplifies the qualities of Singapore‘s Lee Kuan Yew, whose 30 year
reign as Prime Minister transformed a backward Third World Country into a modern, prosperous
and stable Asian giant and who remains one of the most influential figures in the world.
CRITICISM #4: Reports in news publications have raised questions about Kazakhstan‘s
treatment of certain ―nontraditional‖ religious groups, notably the Jehovah‘s Witnesses, Hare-
Krishna‘s and the Unification Church. In most cases, the reported incidents have involved regional
or local authorities and often the issues concerned state laws that require registration of such groups
or legal proceedings over property rights.
RESPONSE:Jehovah‘s Witnesses. Kazakhstan enjoys friendly relations with Jehovah‘s
Witnesses (JW). Kazakhstan‘s Ambassador to the U.S. has met with the leaders of JW: Mr. Philip
Brumley, General Counsel to the Governing Body of Jehovah‘s Witnesses, and Mr. Gregory Olds,
Associate General Counsel, and had an extensive and friendly exchange. JW have been freely and
happily operating in our country for more than a century and have been successfully resolving any
difficulties they may have had through dialogue. Recently, some of the 16,000 JW followers in
Kazakhstan had legal difficulties over registration matters that are now resolved. JW‘s leaders are
publicly recognizing that Kazakhstan‘s Government ―stands up for religious freedom.‖
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Hare Krishna. The situation around Hare Krishna Community in the Karasay District is a
property dispute. Legal actions against some members of the local Hare Krishna Community were
initiated to stop their violations of Kazakhstan legislation regarding improper use of property,
falsification of property titles, violation of building, design and sanitary norms, as well as fire safety.
Despite the obvious violations and the fact that the local HK Community has no legal basis for
claiming the property, Kazakhstan‘s authorities are doing their best to help the HK Community and
have offered local HK Community members the choice of five free of charge land plots to move
their houses. These were rejected as inadequate. The essence of the dispute is what constitutes
proper compensation and/or an alternative site to be provided to that HK community. Local
authorities remain open to negotiation. There are about 10 other Krishna Consciousness community
groups legally active in Astana and six other regions of Kazakhstan. These law-abiding communities
are actively participating in strengthening inter-religious dialogue and have never had any problems
with Kazakh authorities.
Evangelical Christian-Baptists. Leaders of 300 Evangelical Christian-Baptists Churches have
registered their communities and freely operate in Kazakhstan. There are normal relations between
them and Kazakhstan‘s Government. However, some Evangelical Christian-Baptists leaders are
persistently evading any form of legally prescribed registration at all levels citing religious creed. It
is a shame as the law requires a very simple form of notification (name, address, contact details
etc.), which is not burdensome. Having faced administrative fines imposed by local courts for
violating Kazakhstan‘s legislation, they twisted the situation by presenting law enforcement actions
as ―vivid examples of religious persecution‖ in Kazakhstan.
CRITICISM #5: The imprisonment of Mr. Yevgeni Zhovtis, a prominent Kazakh human rights
activist, inspired all sorts of allegations among international human rights activists.
RESPONSE: On September 3, 2009, Mr. Yevgeni Zhovtis (Director of the Kazakhstan
International Bureau for Human Rights and Rule of Law) was found guilty of the car incident that
resulted in the death of Mr. Kanat Moldybayev. The Balkhash District Court (Almaty Region)
sentenced Mr. Zhovtis to four years of imprisonment in a special minimum security settlement.
The tragic accident happened the night of July 30, 2009, when Mr. Zhovtis was returning from
fishing. While driving an SUV towards Almaty, Mr. Zhovtis was blinded by the high beam
headlamps of the cars coming in the opposite direction, which led him to temporarily lose full visual
control of the road ahead of him. The Court ruled that Mr. Zhovtis did not take the necessary
precautions by stopping or slowing down his vehicle, as the traffic rules mandate in these types of
situations. Mr. Zhovtis continued to drive at the speed of 80-90 km/h. The failure to take this
precaution resulted in the death of a 35-year-old pedestrian, Mr. Kanat Moldybayev, who died
immediately at the scene of the accident due to multiple injuries.
The Kazakh legal system is based on the continental legal tradition, which puts absolute
liability on the person that causes the death or severe injury of a human being. In this particular case,
the person who caused the death of Mr. Moldybayev was Mr. Zhovtis. In addition, the Court found
Mr. Zhovtis guilty of not taking necessary precautions that would have made it possible to avoid the
accident. Mr. Zhovtis‘s efforts to reconcile with the relatives of the victim did not qualify as a
circumstance mitigating his guilt since he had pleaded innocent. Besides, only some of the late Mr.
Moldybayev‘s relatives agreed to reconcile; others strongly insisted on pursuing the criminal case
against Mr. Zhovtis. Still, the Court took into account Mr. Zhovtis‘s good character, both
professional and personal, provided by his friends and colleagues, and assigned him to a minimum
security facility instead of regular detention facilities. It was also fully recognized that Mr. Zhovtis
was not drunk, did not violate the speed limit, did not attempt to leave the scene of accident and
tried to help the victim by calling the ambulance and police.
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The Statistics: From January-July 2009, there were 179 similar cases throughout Kazakhstan.
Among them, 136 cases, or 76 percent, resulted in prison sentences (the rest of the cases did not
involve loss of life or severe injuries): 4 persons got 1 year, 50 persons got 1-3 years, 50 persons got
3-5 years, 32 persons got 5-10 years.
The Controversy: Unfortunately, this tragedy has become a subject of controversy and gross
misrepresentation of facts. Given the nature of Mr. Zhovtis‘s activities and his high international
status, immediately after the accident, various speculations circulated that the verdict was politically
motivated. There were attempts to incriminate the Government by focusing on a few procedural
irregularities. Behind this rhetoric and the efforts to politicize the case, the fact is that a person died
as a result of Mr. Zhovtis‘s actions.
Director of the Kazakhstan International Bureau for Human Rights and Rule of Law Mr.
Yevgeni Zhovtis is a prominent human rights activist who worked closely with the Government of
Kazakhstan to improve national legislation. His expertise, proactive involvement and constructive
criticism were valuable to the efforts of reforming Kazakhstan‘s legislation and legal system. Mr.
Zhovtis is widely respected both by his colleagues in the NGO community and his partners in the
Government of Kazakhstan.
The Court found Mr. Zhovtis guilty in the death of Mr. Kanat Moldybayev. The Court
proceedings were as transparent, open and unbiased as it was possible. Many supporters of Mr.
Zhovtis, including the Embassies of the United States and some other countries, received unimpeded
access to the Court hearings. There was no government interference in the Court‘s deliberations.
Any allegations to the contrary are baseless and false. The fact that Kazakhstan‘s judicial system is
still maturing does not present any grounds for questioning its credibility.
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KAZAKHSTAN FOCUSES ON
ECONOMIC DEVELOMENT AND SOICIAL SECURITY
PRESIDENT NAZARBAYEV OUTLINES MAJOR DEVELOPMENT PRIORITIES IN HIS
STATE OF THE REPUBLIC ADDRESS
On 28 January 2011, President Nazarbayev delivered his message to the people of Kazakhstan at a
joint session of the Kazakh Parliament.
Here is the summary of his address:
The decision on the referendum in Kazakhstan will be made after the Constitutional Court
takes brings out its conclusion;
The President is willing to work as long as his health and strength permit and the nation
desires his leadership;
About 2 thousand inmates will be freed in 2011 as part of humanization of the criminal legal
framework;
GDP per capita exceeded USD 9 thousand by 2011;
The Kazakh leader asked the Government to draft a Energy Efficiency and Regional
Development Plan;
Kazakhstan should have strong businesses;
By 2020, GDP growth will be 30% or more, the population will increase up to 18 million;
By 2014, Kazakhstan plans to materialize 294 investment projects;
By 2020, Kazakhstan will shift to 12-year school education model;
From 2011, Kazakhstan abandon its current scientists training model;
Customs union is a very pragmatic project aimed at ensuring regional economic prosperity
By 2020, 95% of all Kazakh citizens will be able speak Kazakh;
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From July 2011, scholarships and salaries of public service officers will grow up by
30%;
The President asked the Government to prepare coherent measure to enhance agribusiness;
By 2020, all Kazakhstan children will be covered by pre-school training;
Kazakhstan will adopt a national children’s and women’s medical programs;
By 2015, the percentage of real estate requiring major overhaul should decrease by 22%;
The Head of State takes note of the presence of “strong corruption lobby” among
government officials
President Nazarbayev delivers 2011 State-of-the Nation Address Kazakhstan‘s foreign policy will ―meet hopes and expectations of all our partners,‖ President
Nursultan Nazarbayev said in his state-of-the-nation address on January 28 as he outlined major
priorities for the country‘s development for both 2011 and the next decade.
―Kazakhstan will remain committed to swift and efficient development of the Customs Union
between Russia, Kazakhstan and Belarus,‖ the President told the members of Parliament, the
government and the people of the country during his one-hour address televised nationally. He went
on to note that in the first 10 months of the CU operation last year the country‘s trade with the other
two partners jumped 38 percent.
―We offer our European partners to jointly develop and accept, in a multilateral format, a
Kazakhstan-EU Energy Charter up to the year 2020,‖ Nazarbayev said. ―This would ensure the
guarantee of stability of energy supplies to the European markets, and the development of pipeline
systems.‖
Turning to other foreign policy issues, Nazarbayev announced his intention to convene this
year a special donor conference on Afghanistan. Last year, Kazakhstan launched a special 50-
million-dollar educational programme to train 1,000 Afghans in Kazakhstan and signed an
agreement, as yet to be ratified by the Parliament, to send officers to ISAF headquarters in Kabul.
The Kazakh President also reaffirmed his commitment to pursue a Stability Pact for the
Caspian Region, which, in his view, would be a document leading to better cooperation and mutual
understanding among the five littoral states.
Taking up the subject of the Organization for Security and Cooperation in Europe (OSCE) and
Kazakhstan‘s chairmanship in it last year, the President said the country would continue to stay
involved, especially in efforts to resolve conflicts.
Another foreign policy priority for Kazakhstan would be the development of an inter-state
programme of assistance to neighbouring Kyrgyzstan which last year saw major upheavals and
violence. Kazakhstan, as both a close neighbour and a chair of the OSCE, helped stabilize the
situation there by sending 11 million dollars worth of assistance and coordinating various efforts
within the organization, including the dispatch of a group of police advisors.
Kazakhstan will also continue promoting its idea of reaching a Universal Declaration of a
Nuclear-Weapons Free World, first proposed by President Nazarbayev last year at the Global
Nuclear Security Summit in Washington, DC.
Later in 2011, Kazakhstan will assume the presidency in the council of foreign ministers of the
Organization of Islamic Conference. As part of its mission, Kazakhstan will continue to promote the
East-West dialogue and better understanding, President Nazarbayev said. Internationally there are
expectations Astana can indeed contribute to these efforts.
Tolerance was one of the major messages of Kazakhstan‘s OSCE chairmanship last year,
resulting in a stronger focus within the organization on problems related to intolerance based on
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ethnic, religious, sexual or other grounds. Also last year, Kazakhstan aggressively promoted closer
ties between international organizations it chaired or initiated, such as the OSCE and the Conference
on Interaction and Confidence-building Measures in Asia (CICA), helping organize the first ever
CICA-OSCE forum in Istanbul in June 2010. Astana also invited OIC Secretary General
Ekmeleddin Ikhsanoglu to participate in and address numerous OSCE events, including its summit
in Astana last December.
One more important foreign policy priority for Kazakhstan is its current leadership in the
Shanghai Cooperation Organization (SCO) and the holding of the group‘s 10th
anniversary summit
in Astana in June. Kazakhstan was the original co-founder of the SCO and this organization, which
also groups China, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, will continue to be of great
importance for the country, President Nazarbayev said.
Referendum decision to be based on people‟s best interests Turning to the much discussed issue of a referendum to extend the President‘s term of office
up to 2020, Nursultan Nazarbayev said the people‘s initiative, now supported by more than five
million signatures or almost two thirds of the typically voting electorate, created a complicated
―political collision‖.
―I am sincerely grateful to all the people of Kazakhstan, as well as the initiators of this idea,‖
the President said.
―As you know, by my decree I declined the proposal of the Parliament to have a referendum,
as I was planning to stand for re-election in 2012,‖ he noted. ―The Parliament overruled my
objections and passed a law. I sent it to the Constitutional Council for review. Only after they make
a conclusion, the final decision [on whether or not have the referendum] will be made.‖
―In any case, I am very touched by such attitude from the people… I take it as a signal to
continue in my job, to continue doing my work,‖ Nazarbayev said.
―Whatever decision we will make… If my health and strengths allow me, if there is such
support from the people, I will continue doing my job,‖ the President said to a rousing applause
from the audience.
―For we have created this country almost from scratch, and I, your obedient servant, has led
this process. I can‘t say I am the founder, but I did lead this process, and this country is my creation,
our creation, which is precious for me and whose independence is precious for me and for us,‖ he
stressed.
―The decision will take into account the position of the Constitutional Council and the interests
of the people. We need to look not in front of our feet, but farther ahead. In any case, the will of the
people will be above all for me,‖ President Nazarbayev noted.
Economic growth top priority Speaking of Kazakhstan‘s economic development, the President said its record since
independence 19 years ago offers a great promise for the future.
―In December 1991, having chosen the strategic goals of sustainability and success, we moved
forward, creating new programmes of development for each new stage… We set ourselves
ambitious goals, and we achieved them,‖ Nazarbayev underscored.
In 1994, Kazakhstan‘s gross domestic product per capita was slightly above 700 dollars, while
today it reaches 9,000 dollars, an increase of 12 times.
―We had planned to reach such a level only by 2015,‖ the President proudly said. ―The
international experience shows that in their first 20 years of independence, no other country was able
to do that.‖
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Last year, Kazakhstan‘s economy grew seven percent, overcoming the influence of the global
financial crisis which affected the country over the past couple of years. While the GDP grew 8.5
percent in 2007, the growth slowed to 3.2 percent in 2008, and then slowed even further to 1.1
percent in 2009. The economy never contracted, though, thanks to both massive state investments to
the tune of 14 percent of the GDP, and the recovery in the global commodity prices.
An even larger credit for that recovery, according to the President, should go to both prudent
policies and the Programme of Accelerated Industrial and Innovative Development (PAIID) for
2010-2014, launched last year.
Already, 152 new enterprises were launched, creating 24,000 new jobs. Kazakhstan‘s gold and
foreign currency reserves now stand at 60 billion dollars, more than before the crisis hit, while
Kazakhstan attracted 120 billion dollars in foreign direct investment overall since 1993.
―Before 2014, we plan to see through 294 investment projects worth 8.1 trillion tenge (KZT
147 = US$ 1),‖ Nazarbayev said adding that 161,000 new permanent jobs will be created and
207,000 new jobs will be available for the period of construction.
The PAIID‘s main result is the ―beginning of the structural changes in the economic
development thanks to the expansion in the real sector of the economy,‖ the President said as he
went on to outline the expectations for economic development up to 2020 according to a strategic
development plan offered last year.
The GDP should grow 30 percent, while the growth in processing industries should exceed
that in the extractive industries. The assets of the National Fund, set up in 2000, would reach 30
percent of the GDP. Investments, both domestic and foreign, should grow by 30 percent. Inflation
will be contained within five to eight percent. The share of small and medium-sized businesses in
the GDP should reach 40 percent of the GDP. The population should grow from the current 16
million to 18 million, and qualified specialists will constitute 40 percent of the workforce.
Unemployment will stay below five percent [Last year it fell to 5.6 percent]. The productivity in
agriculture will grow twice by 2014, and four times by 2020, as Kazakhstan will seek to become one
of the major exporters of meat, in addition to exporting wheat and flour. Along all of that
development, energy consumption of the economy should be reduced.
―I stand for the principle, ‗strong business means strong state‘,‖ the President noted as he
reaffirmed his commitment to further creating beneficial conditions for businesses. Already, last
year Kazakhstan was recognized by the World Bank as the country which improved conditions for
domestic businesses the most in one year. The World Bank also ranked Kazakhstan 59th
in the rating
of 183 countries in terms of the most beneficial business climate.
Elsewhere, 16 laws were adopted to reform the system of law enforcement and the protection
of human rights, while state bodies slashed their staff by 15 percent.
―Kazakhstan will continue fighting corruption without compromises,‖ Nazarbayev
underscored as he noted that the country jumped 45 points in Transparency International‘s
Corruption Perception Index in three years.
Education, healthcare, languages and tolerance top social priorities Lifelong learning should be the motto for all Kazakhs, Nazarbayev said, adding that
Kazakhstan will continue to create conditions for the people to pursue this goal.
By 2020, the country should switch from an 11-year school curriculum to a 12-year one, and,
for that, 400 new schools will be built by 2015.
The Nazarbayev University, as well as the intellectual schools built around the country now,
will also be instrumental in further educational reforms. By 2020, at least two universities in
Kazakhstan should join the rating of the best universities in the world.
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What is more, according to Nazarbayev, the people in Kazakhstan should have ―an opportunity
to save for education of their children, with interest bonuses added from the government.‖
Additionally, a National Council on Vocational Personnel Training will be set up, while free
vocational training is to be ensured.
Budget financing for healthcare now stands at 3.2 percent of the GDP. The continued attention
to this sphere had led to a 25 percent growth in birth rate, an 11 percent decrease in death rate, and
the speeding of the population growth by 1.7 times.
By 2013, the Unified National Healthcare System will be fully introduced, with the ultimate
goal of extending the average longevity to 72 years by 2020.
The Government will also heavily promote a healthy lifestyle, and the new facilities,
specifically built for the Asian Winter Games from January 30
through February 6, 2010, will have to be fully used afterwards,
the President underscored.
Another top priority is the development of languages.
―Peace and harmony are our common achievement,‖ the
President underscored, as he outlined plans to promote the study
of the Kazakh, the Russian and the English languages.
Already, more than 60 percent of the population speaks
Kazakh, the state language which 20 years ago was almost on
the brink of extinction due to suppression from the Soviet
authorities. Plans are afoot to have 80 percent of the ethnically
diverse population speak Kazakh by 2017, and 95 percent by
2020.
―In ten years, 100 percent of school graduates will speak
the state language,‖ the President said.
The government would also promote the study of the Russian and other languages of more
than 130 ethnic groups in the nation. English, though, will be a continued priority, and ―by 2020 20
percent of the population should speak English freely‖, the head of state said.
Among other priorities listed by the President were housing, water supplies and providing
employment. ―By May 2011, I instruct the Government to develop a new employment programme,‖
Nazarbayev said, adding that free vocational training and microcredits to support small
entrepreneurs, especially, in the rural communities, should be a top goal.
―This year, we are also raising pensions, scholarships and budget wages by 30 percent. For two
years, we have been raising them by 25 percent each. As planned, by 2012, average pensions,
salaries and scholarships will grow twice compared to 2008. We had promised that, and we are
delivering on that promise,‖ Nazarbayev said.
20th
anniversary to be a major celebration The year of 2011 will be a major opportunity to celebrate the 20
th anniversary of Kazakhstan‘s
independence, achieved on December 16, 1991.
―Throughout the years of independence fundamental values of the Kazakhstan Way have been
crystallized: Freedom, Unity, Stability and Prosperity,‖ the President stressed.
To arrange proper commemoration, a state commission has now been set up and a nationwide
plan approved.
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Celebrating the 20th
anniversary is a ―common affair‖ for the whole nation, Nazarbayev said as
he asked the Government to bring together the efforts of investors, business community and all the
people.
―The motto of our jubilee will be ‗20 Years of Peace and Creation‘,‖ the President said.
Full text of the address is accessible at http://www.kazakhembus.com/uploads/Nation2011.pdf .
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KAZAKHSTAN – ECONOMIC OVERVIEW
GENERAL BACKGROUND
After ten years of remarkable economic growth, Kazakhstan was able to withstand the shock
of the 2007-2009 global liquidity crisis. Appropriate measures by the Government helped
Kazakhstan overcome the deepest financial crisis in its history. The economy did not suffer from
rapid deposit outflows, national currency fluctuations, economic recession or depletion of
international reserves.
9.3 9.6 9.7 10.7
8.9
3.3
1.2
7
4
2,0682,870
3,771
5,290
6,772
8,514
6780
8326.4
7852
2003 2004 2005 2006 2007 2008 2009 2010 2011П
GDP, % GDP per capita, USD
The main priorities of the Government‘s
strategic economic policy in the
upcoming two years are: financial
sector stabilization, support for small
and medium enterprises, development
of agribusiness and real estate, further
diversification of the economy and
support for socially vulnerable layers of
society.
In the meantime, Kazakhstan's fiscal position is strengthening due to restoration of budget
discipline. During the crisis an increased budgetary deficit was financed mostly by exceptional uses
of the National (Oil) Fund resources, both on and off-budget. Starting in the beginning of 2010, the
Government took actions aimed at increasing efficiency in public spending and better budgetary
management at both national and local levels. According to the new Fiscal Code that was adopted in
2008, the three-year budget has been introduced for better harmonization of economic and budget
planning.
-215.3
-333.2
-492.7 -527
-696
-582
-382
-1.8-2.1
-3.1-3.1
-2.9
-2.5
-1.5
-4
-3
-2
-1
0
(750)
(650)
(550)
(450)
(350)
(250)
(150)
(50)2007 2008 2009 2010 2011 2012 2013
Budget deficit, bln. tenge % of GDP
As per the new state budget for 2011-2013
that has been approved by the Parliament,
the budget of Kazakhstan in 2011 is
projected to have a moderate deficit, (-)696
bln. tenge or (-)2.9% of GDP. In 2012 and
2013, the budget deficit is forecaste to be (-
)582 bln. tenge or (-)2.5 of GDP and (-)382
bln. tenge or (-)1.5 of GDP respectively.
Revenues in the state budget are projected at the level of 4.9 trln. tenge in 2011, 5.2 trln.
tenge in 2012 and 5.6 trln. tenge in 2013. Expenditures are expected at the level of 5.7 trln. tenge in
2011, 5.7 trln. tenge in 2012 and 6.0 tlrn. tenge in 2013 accordingly. Exchange rate: 150 tenge = $1.
Kazakhstan has been successful in reducing the ratio of government debt to GDP in recent
years. In 2001, total governmental debt was $3.8 bln, which amounted to 19.7% of GDP and in 2010
total government and government guaranteed debt equalled $4.5 bln, which amounted to 3.1% of
GDP.
Table 1. GDP growth, %, and GDP per capita Sources: Ministry of Economic Development and Trade
Table 2. Budget deficit in tenge and in % of GDP (2007-2012) Sources: Ministry of Finance
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Starting in 2009, government debt
increased 21% since after several years of
active external borrowing by private
banks and their aggressive lending
practices, which contributed to an overall
liquidity and credit crunch. The
government stepped in to bail-out the
financial system. Total external debt
(public and private) increased
dramatically from $15.2 bln (2001) to
$112.8 bln (2010), which is equivalent to
87% of GDP.
The official inflation rate based on the consumer price index (CPI) in 2009-2010 increased
slightly. As of February 2011, the year-to-date inflation rate rose by 1.7% up from 1.4% in February
2009. The year-on-year inflation rate rose by 8.1% up from 7.3% in February 2010. Food prices and
non-food items in the CPI were up by 2.0% yoy and 0.2% yoy respectively, whereas prices of
services rose by 2.2% yoy.
The consolidated balance of payments in 2010 was positive due to overall improvement of
trade and financial accounts. According to the preliminary estimate of balance of payments by
National Bank of Kazakhstan, the current account surplus in 2010 was $4.9 bln. (in comparison with
deficit (-)$4.2 bln. in 2009). Trade balance was positive, $29.0 bln. up from $15.2 bln. in 2009, with
exports on a secular rising trend, $59.7 bln. up from $43.9 bln., and slightly increased imports, (-
)$30.7 bln. up from (-)$28.8 bln. The capital and financial account (including errors and omissions)
was negative, (-)$0.2 bln. down from $6.7 bln. in 2009, with substantially decreased net direct
investments, $1.2 bln. down from $10.5 bln., and increased net portfolio investments, $8.3 bln. up
from $2.9 bln.
As a result, the external liquidity position of Kazakhstan has strengthened. Total
international reserves (including assets of the National Fund) as of January 1, 2011, amounted to
$62.6 bln., which is 23% more than $50.9 bln. as of January 1, 2010. Total foreign-currency and
gold reserves made up to $31.2 bln., which is 18.6% more than $26.3 bln as of January 1, 2010.
3.5 4.98.1
14.7
22.3
27.5
23.4
31.4
11.5 11.414.2
18.121.3 20.6
22.324.2
0
5
10
15
20
25
30
35
2003 2004 2005 2006 2007 2008 2009 2010
bln. $ % of GDP
Assets of the National Fund made
up to $31.4 bln., which is 27.6%
more than $24.6 bln. as of January
1, 2010.
Thus, despite the fact that the
Government spent about $20 bln
(14% GDP) for anti-crisis measures,
the foreign-currency and gold
reserves of the country as well as
the funds of the National Fund were
restored and increased by several
billion dollars.
Table 4. Assets of the National Fund, in $ and % of GDP Sources: Ministry of Finance
Table 3. Government and private debt in bln $ (2001-2009) Sources: National Bank
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KEY ECONOMIC INDICATORS
Table 1. Macroeconomic indicators
Sources: National Bank, Ministry of Economic Development and Trade
2003 2004 2005 2006 2007 2008 2009 2010
GDP growth (%) 9,3 9,6 9,7 10,7 8,9 3,3 1,2 7,0
GDP per capita ($) 2068,0 2874,0 3771,0 5292,0 6772,0 8514,0 6732,1 8326,2
Current account (% GDP) (0,9) (0,8) (1,8) (2,5) (7,9) (4,7) (3,2) 3.8
Trade balance (% GDP) 11,9 15,7 18,1 18,1 14,4 25,1 14,1 22,3
Exports (%) 32,0 55,7 37,4 37,0 24,7 48,8 (39) 45,9
Gold and foreign-currency
reserves ($ bln.)
5,0 9,3 7,1 19,1 17,6 19,9 23,2 31.2
Foreign direct investments
(% GDP)
7,2 12,6 3,7 8,2 7,6 11,1 8,9 7.5
Sovereign debt (% GDP) 15,0 11,4 8,1 6,7 5,9 6,4 13,0 2.8
National Fund, including
assets in national currency
(% GDP)
11,5 11,4 14,2 18,1 20,0 20,5 27,9 24,2
Table 2. Economic Structure (2010)
Source: Agency of Statistics of Kazakhstan
Origins of gross
domestic product
% of
GDP
Components of gross
domestic product
% of
GDP
Agriculture 4.4 Private consumption 47.5
Industry 32.3 Government consumption 12.9
Services 63.3 Gross fixed investment 29.6
Exports of goods & services 43.6
Total exports $ 59.2 bln.
Exports growth 37.1%
Imports of goods & services
Total imports
Imports growth
37.3
$29.8 bln.
4.8%
Structure of exports % Structure of imports %
Mineral products
including oil and gas
74.9 Machinery, equipment,
transport vehicles
43.2
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Metals and metal
products
13.3 Mineral products
including oil and gas
10.9
Animal and plant products 3.4 Metals and metal products 11.3
Chemicals and chemical
products
5.1 Chemicals and chemical
products
14.3
Machinery, equipment, transport
vehicles
0.8 Animal and plant products 9.7
Main destinations
of exports
% of
total
Main origins
of imports
% of
total
China 17.1 Russia 37.0
Italy 16.2 China 13.3
Russia 8.1 Germany 6.1
France 7.5 Italy 5.3
Netherlands 7.0 Ukraine 4.6
***
OUTCOMES OF THE GOVERNMENT‟S ANTI-CRISIS PACKAGE
In his Address to the Nation on March 6, 2009, "Through Crisis to Renovation and
Development," President Nazarbayev pledged to the Kazakhstan people that the state had the
resources it needed to overcome the world financial crisis. "You have to be confident we are not
simply ready to face these challenges. We will overcome tough calls and avoid recession as a strong
and prosperous state," the President said.
The anti-crisis efforts cost the country more than KZT 3 trillion (USD 20 bln). The
Government of Kazakhstan, the National Bank and Agency for Regulation and Supervision of
Financial Market and Financial Institutions concentrated their activities on stabilization of financial
sector, settlement of real estate market problems, support of small and medium businesses,
development of agriculture, encouragement of innovation and the maintenance of industrial and
infrastructure projects.
The Government managed to prevent an economic recession in 2009 and provided stable
growth in 2010.
The GDP growth in 2009 was 1.2%, while in 2010 it was 7%. Industrial production
increased by 10% in 2010.
Food market stability was maintained and inflation was kept in the planned corridor of 6-8%.
The unemployment rate fell to 5.5% in 2010 compared to 6.3% in 2009.
In 2010, the measures stabilized the financial sector. The banks' foreign debt totaling USD
46 bln as of mid 2007 decreased by USD 29 bln. in 2010. The total gold and foreign exchange
reserves of the National bank and National Fund rose by USD 17 bln to USD 60 bln. (early in 2009
it made USD 43 bln)
The situation in the banking sector improved due to an inflow of public funds and
government actions. Fulfillment of this part rescue plan ensured further growth of finance industry
stability.
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Anti-crisis efforts to support small and medium business were especially effective. More
than 10,000 small and medium enterprises got financial support from the state. The number of the
ongoing small and medium enterprises increased by 5,3% and 1.3% percent in 2009 and 2010
respectively.
About 60 investment projects worth KZT 56.3 bln were approved for further financing. 27
investment projects worth KZT 30.1 bln were implemented.
KZT 342.7 bln were allocated for repair works and modernization of transport infrastructure
facilities. 392 000 new jobs were created.
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KAZAKHSTAN‟S ENERGY SECTOR: GLOBAL IMPACT
Energy Overview
Minister of Industry and New Technologies (for nuclear energy, alternatives and
renewable, energy efficiency and electric power): Deputy Prime-Minister – Minister;
Minister of Oil and Gas: Mr. Sayat Mynbayev
President, KazMunayGas (National Oil & Gas Company): Mr. Kairgeldy Kabyldin
Other organisations: KAZENERGY Association; Kazakhstan Electricity Grid Operating
Company (KEGOC); Kazatomprom (National Atomic Company)
Major Oil and Gas Fields: Tengiz (oil), Karachaganak (natural gas and condensate),
Kashagan (off-shore, oil), Uzen, Kumkol, Korolev, Tenge, Uritau (oil, natural gas),
Zhanazhol
Major Oil Ports: Atyrau, Aqtau, Bautino and Kuryk on the Caspian Sea
Oil Export Pipelines: Caspian Pipeline Consortium (CPC) – Tengiz-Novorossiisk (Russia);
Uzen-Atyrau-Samara (Russia); Kenkyak-Orsk (Russia), Kenkyak-Atyrau (Kazakhstan),
Atasu-Alashankou (China)
Major Oil Refineries (crude oil refining capacity): Pavlodar (162,666 bbl/d); Atyrau
(104,427 bbl/d); Shymkent (160,000 bbl/d)
Major Power Plants (capacity): Ekibastuz no. 1 (4000 megawatts, MW), Yermak (2400
MW), Zhambyl (1230 MW)
Current Oil Reserves: 32.5 billion barrels (twice as much as the North Sea)
Projected Oil Reserves: 100-110 billion barrels by 2015 (would be in top 5 of the world)
Oil Production (2010): 79.5 million tonnes
Oil Consumption (2010): 13.7 million tonnes
Net Oil Exports (2010): 71.2 million tonnes
Crude Oil Refining Capacity: 14.5 million tonnes (17.5 million tones by 2015)
Current Gas Reserves: 3 trillion cubic metres
Projected Gas Reserves: 5 trillion cubic metres by 2015
Natural and Crude Gas Production (2010): 37.4 billion cubic metres
Natural Gas Consumption (2010): 9.0 billion cubic metres
Natural Gas Export (2010): 9.1 billion cubic metres
International Transit of Gas (2010): 82.1 billion cubic metres
Coal Reserves 35.8 billion tons (or 3.6% of the world reserves)
Coal Production (2010): 110.8 million tons
Coal Consumption (2010): 61.2 million tons
Coal Export (2010): 27.8 million tons
Electric Generation Capacity: about 19.5 gig watts (GW)
Electricity Generation (2010): 82.3 billion kilowatt-hours (kWh)
Electricity Consumption (2010): 83.8 billion kilowatt-hours (kWh)
Uranium Reserves: 1.5 million tonnes (or 20% of the world reserves)
Uranium Production (2010): 17,803 tonnes
Kazakhstan is rich in oil and minerals. Industry analysts believe that a planned increase in oil
production and the development of new oil fields will enable Kazakhstan to produce as much as 3
million barrels (477,000 tons) per day by 2015, lifting the country into the ranks of the world's top 5
oil-producing nations. Major oil and gas fields and their recoverable oil reserves are Tengiz with 7
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billion barrels (1.1 bln. tons); Karachaganak with 8 billion barrels and 1.35 trillion mі of natural gas;
and Kashagan with 7 to 9 billion barrels (936 mln. to 1.2 bln. tons).
One of the country‘s top priorities in the extractive sector is the efficient development of its
Caspian off-shore energy resources. Recent developments in this area give hope that further
development of North Caspian oil and gas fields will start in the not-to-distant future.
Originally, the status of the Caspian Sea was regulated by the bilateral treaties of 1921 and
1940, made between the former Soviet Union and Iran. With the break-up of the Soviet Union,
offshore territorial rights have generally become more complex. In 2002, Kazakhstan signed bilateral
agreements with Russia and Azerbaijan on delimitation of the Northern Caspian seabed and the joint
development of the Khvalynskoe, Tsentralnoe and Kurmangazy off-shore oilfields with Russia.
In 2003, Kazakhstan adopted a State Programme of development of the Kazakhstan sector of
the Caspian Sea, the main target of which is to boost environmentally safe oil and gas production to
generate revenues to help diversification and modernization of the economy. In 2006, Phase II of the
Strategy was commenced.
With the launch of the State Program of Accelerated Industrial-Innovative Development for
2010-2014, Kazakhstan‘s O&G sector is entering a more advanced value-added phase. The
following multimillion pioneer projects have laid the foundation for overall diversification of the
country‘s O&G sector and development of relevant infrastructure:
$6.3 bln. Construction of Integrated Gas Chemical Complex in Atyrau Region (Western
Kazakhstan) - 2015
$1130 mln. Construction of Aromatic Hydrocarbons Production Complex – 2013
$290 mln. Construction of Road Bitumen Plant based on existing Aktay Plastic Plant - 2012
Modernization and Technological Upgrade of Existing Refineries (Atyrau, Pavlodar and
Shymkent)
Kazakhstan has an abundant supply of accessible mineral and fossil fuel resources. The
country has some 3% of the world‘s raw materials and natural resource base of over $300,000 per
capita (among the highest in the world, twice the level of Russia, higher than Australia), 4% of the
global iron reserves, 8% of the world‘s total zinc reserves and 4% of the world‘s total chrome
reserves accounting 15% of global production. According to estimates, Kazakhstan has the second
largest lead reserves, the third largest manganese reserves, the fifth largest copper reserves, and
ranks in the top ten for coal and gold.
The demand in the world for quality uranium fuels increases year by year. Forty new power
generating units are being constructed in fifteen countries of the world. Kazakhstan has been an
important source of uranium for more than fifty years. In 2009, it became the world's leading
uranium producer, with almost 28% of world production.
Kazakhstan has the second largest uranium reserves. Total resources and reserves of uranium
are over 1.5 million tonnes, over 1.1 million tonnes of which can be mined by the in-site leaching
method. Some 50 uranium deposits are known, in six uranium provinces. Between 2001 – 2010,
uranium production in Kazakhstan rose from 2000 to over 17,800 tonnes per year, and further mine
development is underway with a view to reaching a production rate of 30,000 tonnes/year by 2018.
State owned National Atomic Company Kazatomprom is the sole organization for uranium mining,
reprocessing, export & import operations in Kazakhstan (President – Mr. Vladimir Shkolnik).
Having abundant natural energy resources, the Government and the country‘s energy sector
keep an attentive eye on global energy trends. In 2006, Kazakhstan produced its first wheat-based
bioethanol and this private sector programme is expanding further. There are also plans to set up
wind farms in the mountainous region of Almaty. The law on using renewable energy has already
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come into force. Kazakhstan has numerous opportunities for cooperation with the U.S. in this area
and welcomes participation of the most advanced companies in alternative energy projects. At the
7th
Annual Kazakhstan-US Energy Partnership Meetings in Washington, D.C., in November, 2010,
Minister of Oil and Gas Sauat Mynbayev and U.S. Deputy Secretary of Energy Daniel Poneman
agreed to work together to address environmental concerns. Energy transportation and infrastructure
are key elements of a varied energy policy. The EU wants to cooperate with Kazakhstan in this area,
particularly on trans-continental gas and oil transportation issues. The country's oil and gas reserves
and its pivotal location make it of strategic importance to the U.S. and its western allies in terms of
providing global energy security.
***
Hydrocarbons
The proven, large reserves of oil and gas (about 3% and 1% respectively of the world‘s total)
and significant forecast reserves (13-18 billion tonnes of standard fuel) in Kazakhstan, make
investing in the fuel and energy sector a priority. Oil reserves per capita in Kazakhstan are 5 times as
high as in Russia and higher than in Iran
Hydrocarbons are being developed at 241 fields. As of December 31, 2010, the number of
hydrocarbon subsoil use contracts is 206. A total of 142 companies are operating in the sector: 20
joint ventures, 48 foreign companies and 74 local companies. As of December 31, 2010, total
number of hydrocarbon subsoil use contracts amounts to 206.
The limit of O&G production has not yet been reached. With the current production of 79.7
mln tons, the country will extract up to 85.0 million tonnes of oil by 2014 and about 120-130 million
tonnes of oil by 2015.
Kazakhstan occupies the eighth place in terms of proven oil reserves in the world and second
place in the CIS. The proven reserves will ensure extraction for 50 years for oil and 75 years for gas,
which is in line with the world average figure for oil-extracting countries. The future development
of the domestic oil sector mainly depends on developing the Kazakh sector of the Caspian Sea,
where the forecast reserves are quite promising.
The Northern Caspian Project alone is expected to attract more than USD 136 bln.
Oil and Caspian off-shore development strategy and pipelines policy
Some estimates say that the offshore Kashagan field alone may contain up to 50 billion
barrels of oil. Kazakhstan‘s vast natural resources are projected to provide 2-3% of the world‘s
expected oil demand within the next decade.
By 2002, most O&G fields under development had reached peak levels of production.
Further growth of ashore production was linked to intensified development of such oilfields
as Tengiz and Karachaganak. At the same time, research has shown that major gains in
explored reserves and in hydrocarbons production are
expected to take place in the Caspian aquatic area. It
normally takes 8-10 years to get to the commercial
production stage. The main targets of the State-run
Program of Development of the Kazakhstan‘s Sector of the
Caspian Sea include: gains in explored hydrocarbons
resources and bringing of production to a stable high level;
development of multimodal system of hydrocarbons
transportation;
“Being a dynamically
developing exporter of energy
resources, whose role will
continue to grow, Kazakhstan
is fully aware of its
responsibility for
hydrocarbon deliveries to the
world market”
Marat Tazhin
Former Minister of Foreign
Affairs of Kazakhstan
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reprofiling and modernization of domestic machine-building enterprises;
development of the maritime fleet and sea ports;
build-up of the local engineering capabilities; training of domestic specialists;
enforcement of health protection and environment protection measures;
development of petrochemistry enterprises.
The Government will be in charge of defining blocks to be offered for tenders and of
defining the order and conditions of setting them forth for tenders.
At the present time, there are about 23 undistributed blocks, exploration of some of them is
planned to be financed out of the state budget. To define the most suitable subsoil users for both
exploration and development, the plan is to offer for tenders at least 3 blocks per annum. At the
same time, there will be blocks offered for additional exploration.
The Kazakh Government‘s commitment in cooperation with partners from abroad is to
respect contracts signed with foreign companies but the contracts must be honoured by both sides.
According to preliminary estimates, the Program implementation will allow bringing
production at maritime oilfields to 100 million tons per annum by 2015 and maintaining this level
for 25-30 years.
Kashagan
Kashagan is a momentous project not only for Kazakhstan‘s energy sector, but for the entire
world. In 2008, Kazakhstan‘s Ministry of Energy and Mineral Resources and KMG signed the final
agreement with all co-venturers in the international Consortium (Eni, ExxonMobil, Shell, Total,
ConocoPhilips and INPEX).
Under this agreement, KMG acquires a major participation level in the project going from
8.33% to 16.81%. Given the size and complexity of the Kashagan project and other NCSPSA
developments, the Kazakh government the Kazakh government and Agip KCO have
agreed to consolidate their efforts and resources and
implement the project with the following division of
responsibilities: Exxon Mobil - offshore drilling; Shell -
offshore development (except drilling); Eni and Agip
KCO – onshore development; ConocoPhilips – audit.
KMG will take on an increasing role in the project and
will be involved in each phase of its development.
According to the agreement, a new joint operating
company for Kashagan project has been established
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which includes all the co-venturers in the NCSPSA
Consortium. This joint operating company is named
North Caspian Operating Company (NCOC) BV.,
Commercial oil production at Kashagan should be started no later than December 31, 2013.
But the target date for non-commercial oil production is December 1, 2012.
75,000 barrels a day are expected to be extracted at the beginning of oil production with following
increases up to 370,000 barrels a day. 2-3 years later the 3rd tranche of oil production increase is
expected – up to 450,000 barrels a day. By the end of the next decade, Kashagan oil production is
expected to reach 1.5 million barrels a day.
Block “N”
The agreement on ―N‖ Block, reached
in 2008, is another important step forward in
the development of mutually beneficial
cooperation between Kazakhstan and foreign
energy corporations. On October 6, 2008,
KMG, ConocoPhillips and Mubadala
Development Company, PJSC (Mubadala)
announced the signing of a Memorandum of
Understanding (MOU) to negotiate terms for
the exploration and development of the ―N‖
Block.
The MOU was signed by Mr.
Kabyldin, the KMG President, Mr. Mulva, the
ConocoPhilips CEO and Mr. Al Mubarak,
Mubadala‘s CEO, and was witnessed by Mr.
Sayat Mynbayev, the Minister of Energy and
Mineral Resources of Kazakhstan.
The agreement on the principles of
cooperation on the Block N shelf project was
signed by KMG, ConocoPhilips and
Energy & Industry Holding Co., a wholly owned subsidiary of UAE-based Mubadala
Development Company, in Almaty on December 5, 2008. The parties agreed that the project would
be managed by a joint operating company, in which KMG will own 51% and the other two
companies will own the remaining 49%. During the production period, KMG will be the sole owner
of the operating company.
―In accordance with this agreement, KazMunayGas will transfer 24.5% stakes in the contract
for the subsurface use to each ConocoPhillips and Mubadala," Mr. Kabyldin said.
On June 11, 2009, ConocoPhillips, KMG and Mubadala Development Company PJSC
(Mubadala) signed project agreements allowing the joint exploration and development of the N
Block. ―The rise of our cooperation with ConocoPhillips and Mubadala to a new level indicates
foreign investors‘ great interest in developing Kazakhstan‘s offshore fields in the Caspian and re-
affirms the potential of our country‘s oil and gas sector. This project will enable us to use new
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technology and international expertise in developing offshore oil and gas resources of Kazakhstan,‖
said Kairgeldy Kabyldin, president, KazMunayGas.
The parties are planning to launch commercial production around the start of 2016 if all the
forecasts for raw hydrocarbons there are confirmed.
The ―N‖ Block is located 30 kilometers southwest offshore of Aktau, Kazakhstan‘s port in
the Caspian Sea. The Block covers approximately 8,100 square kilometers and is considered highly
prospective for both oil and gas. This field has some 630 million tons of geological resources with
recoverable resources estimated at about 270 million tons. Under the agreement, the KMG‘s foreign
partners will pay a signing bonus of $100 million.
Global energy security is being significantly contributed by Kazakhstan’s multi-vector pipeline
policy
As KSCS oilfields get developed, the need for diversification of export routes keeps
growing. Proximity to such dynamically developing nations as Russia and China opens wide
opportunities for Kazakhstan‘s hydrocarbons exports. To ensure entering into the markets of the two
countries, it is vital to develop and enhance trunk pipelines system.1 Enhancement of export routes
implies multimode transportation of hydrocarbons, with efficient combination of capabilities of
pipe, railway and sea transport.
The Caspian Pipeline Consortium (CPC) and
Atyrau - Samara pipeline system are currently
traditional routes for Kazakhstan‘s oil exports.
Significant volumes of Kazakh oil (about 50 million
tons a year) are exported through the Russian territory.
Under the pipeline diversification policy
Kazakhstan is actively developing the following
projects:
“Attention should be focused on
diversification and securing stable
routes for future energy supplies.
We will stick to the principle of
pursuing a multi-vector policy in
this regard.”
Nursultan Nazarbayev
President of Kazakhstan
Kazakhstan‘s Caspian Transportation System is being developed to meet increasing oil
production at Tengiz and Kashagan oil fields through the Caspian Sea to global markets via
Baku-Tbilisi-Ceyhan system (BTC). Transcaspian oil exports through the Baku-Тbilisi-Djeihan
system. Kazakhstan‘s approach to this project has been confirmed by the KCTS. Kazakhstan –
China oil pipeline. Phase I of the project which includes Atasu-Alashankou pipeline and
Kenkiyak-Kumkol pipeline (to connect western and eastern parts of Kazakhstan) were put into
operation in 2006 and 2010 respectively.
Expansion of Caspian Pipeline Consortium from its current 32.9 mln. tonnes to 67 mln.
tonnes. Of this amount 52.5 mln tonnes will be Kazakhstan‘s oil. Memorandum of
Understanding on CPC Expansion Principles was signed by the project‘s shareholders on
December 17, 2008. The entire project will be finalized by 2015.
1 www.government.kz
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KCTS
CPC
Kazakhstan-China
BTC
Atyrau-Samara
Тенгиз
Kazakhstan-China
Caspian Pipeline Consortium, CPC
Kazakhstan Caspian
Transportation System,
KCTS
Atyrau-Samara BTC
Атырау
Кенкияк
Кумколь
Атасу
Alashankou
Новороссийск
Баку
Kuryk
Omsk-Pavlodar
Omsk-Pavlodar
Eskene
Uzen-Atyrau
Актау
Kazakhstan’s Long-distance Oil Pipelines
2nd Phase
Kazakhstan-China
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Gas pipelines of Kazakhstan
Узбекистан
СХЕМА ГАЗОПРОВОДОВ РК
Аральскоеморе
Казахстан
Туркменистан
АСТАНА
Петропавловск
КокшетауКустанай
Рудный
МГ Карталы-Рудный
Челябинск
КС Карталы
КС Домбаровское
Оренбург
КС Кр. Октябрь
АктобеМГ Бухара-
Урал
МГ Жанажол-Актобе
Жанажол-КС13КС Талдык
КС Шалкар
КС Сев. Устюрт
АксайСаратов КС Чижа
КС Макат
КС Кульсары
КС Опорная
ПХГ Бозой
КС Бозой
КС-7КС Бейнеу
КС Каракалпатское
КС Жана-Узень Тулей КС Кунград
КС Ташауз
Дарьялык
КС Хива
КС Ургенч
КС Сазакино
КС Газли
КС КаганКС Ильялы
КС Каракумское
Стихийное
Хазарли
Беурдешик
АшхабадКС Шатлык
Туркменбаши
Эрдекли
Окарем
КС Бегдаш
Кели
Уграпли
Ку мколь
Акшабул ак
Амангельды
МГ БГР-ТБА
Кызылорда
Кыргызстан
КС Уральск
ПХГ Акыр-Тобе
Алматы
Достык
МГ САЦ
МГ Окар
ем-
Бейнеу
Атырау
ХоргосКАШАГАН
КС Джангала
КС Индер
МГ Макат-Северный Кавказ КС Редут
КС Тайман
Актау
КС Акколь
ДКС Бозой
Жетыбай
ЛупингМГ Союз
МГ Оренбург-
Новопсков
Новопсков
КС Ал. Гай
Таджикистан
КС Сокулук
МубарекДушанбе
КС Зирабулак
КС Чиназ
КС Галля-Арал
Ташкент Ферганс
ПХГ Полторацкое
КС Полторацкое
МГ Газли-Шымкент
КС-5 Тараз
Каспийское море
Китай
Россия
Иран
Азербайджан
КС Самсоновка
(Акбулак)
К ашаган
Тенгиз
Толкын
Ш огырл ы-Шомышты
Planning gas pipeline:
1 – Caspian gas pipeline GP
2 – Beineu - Shymkent GP
Active gas pipeline:
(Gas main pipeline – GP)
Middle Asia -Centre GP
Оkаrеm-Beineu GP
Макат-North Caucasus GP
Orenburg - Novopskov GP
Bukhara -Ural GP
Zhanazhol - Oktyabrsk GP
BGR-TBA GP
Gazli-Shymkent GP
Аmangeldy - КС-5 GP
Аkshabulak-Kyzylorda GP
Zhanazhol-КС-13 GP
Аksai-Krasny Oktyabr-Astana GP
Turkmenistan-Kazakhstan-China GP Legend
Прикаспийский
газопровод
Туркменистан-Казахстан
-Китай
Бейнеу-Бозой
-Самсоновка
Существующие газопроводы
Компрессорные станции
Подземные хранилища газа
ГПЗ
Маршрут Прикаспийского газопровода
Существующие газопроводы
Условные обозначения:
Иолотань
3
2
1
Middle Asia -
Centre GP
Orenburg -
Novopskov GP
BGR-TBA
GP
Bukhara -Ural
GP
Месторождения газа
Compressing station
Underground storage facility
Gas field
Gas-transfering factory
Caspian gas pipeline
Turkmenistan –Kazakhstan –
China GP
Beineu-Shymkent
Active gas pipeline
Kazakhstan
Russia
China
Uzbekistan
Turkmenistan
Tajikistan
ASTANA
Slide 2
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The Burgas-Alexandroupolis pipeline is a trans-Balkan project conceived to reduce the cost
of hydrocarbon deliveries to European and possibly U.S. and Asian markets. The project is the
logical continuation of the CPC expansion and an economical way to bypass the risky Bosporus
strait and the Dardanelles. The viability of the pipeline depends on Kazakh oil production, which
is expected to reach 120-130 million tons by 2015. As Russian oil alone is not sufficient for the
trans-Balkan pipeline, contribution of Kazakh oil is vital to ensure economic efficiency. For
Kazakhstan, the trans-Balkan pipeline is an alternative route to transport its crude oil to global
markets. The CPC expansion and the Burgas-Alexandroupolis pipeline are important to the fast
growing Kazakh oil industry. Kazakhstan is among the world‘s top 20 net exporters of crude oil.
For the European Union, the Burgas-Alexandroupolis pipeline is an important step to decrease
dependence on OPEC countries.
Construction of Pre-Caspian Gas Pipeline, according to the agreement signed by Kazakhstan,
Russia and Turkmenistan. The Mazhilis (Lower House of the Kazakhstan‘s parliament)
approved a draft Law ―On ratification of the agreement between the government of Kazakhstan,
Russia and Turkmenistan on cooperation in construction of Pre-Caspian Gas Pipeline‖ on April
22, 2009.
Construction of Kazakhstan – China gas pipeline was finalized in October 2010. On
December 2010, construction of the Beineu-Shymkent gas pipeline was started. It is considered
Phase II of the Kazakhstan-China gas pipeline.
Kazakhstan‟s Oil Export (major routes)
2010
2015
likely
CPC (Kazakh share) 28.6 52.5
Atyrau-Samara
15.3 30
Atasu-Alashankou
10.1 20
KPO-Orenburg
2.0 -
Aktau Port (via Caspian Sea) 9.2 -
Rail 6.0 (15)
Totals: 71.2 201-228 (241)
Source: Kazakhstan’s Ministry of Oil and
Gas
Europe is an important partner of Kazakhstan in implementation of its energy policy. This
interaction includes expansion and increase of transit opportunities for hydrocarbon supplies from
Kazakhstan to European markets, including cooperation under TRACECA international project,
ТАCIS INOGATE Program «International transportation of oil and gas in Europe» and The Energy
Charter Treaty (ECT).
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The main criterion for decision by the Kazakh Government on projects aimed at
diversification of exporting routes is their economic effectiveness.
Kazakhstan welcomes the active U.S. involvement into activity for development of
alternative export routes in Eurasia, particularly, from the Caspian basin to Europe. This approach
fully corresponds to Kazakhstan‘s national security priorities.
The Kazakhstan International Oil & Gas Exhibition (KIOGE)
KIOGE 2011, the 19th International Oil & Gas Exhibition and Conference will be held on 5th
- 8th October 2011 at the Atakent Exhibition Centre and Intercontinental Hotel in Almaty,
Kazakhstan.
KIOGE is Central Asia‘s largest and most influential trade event for the oil and gas industry. It is the
focal point for the sector in Kazakhstan and the highest profile event in the calendar for the region.
KIOGE comprises an exhibition and conference and has helped to introduce more than 5,000
companies into the market, a great many of which now have well-established businesses in
Kazakhstan.
The KIOGE Conference is Kazakhstan‘s leading forum for debating the key issues affecting the oil
and gas industry in the country. The conference will gather together in excess of 1,000 oil and
gas professionals and provide a high-level forum for open, balanced and independent discussions
and an in-depth analysis of the current oil and gas market trends in the Kazakh and Caspian region.
The KIOGE Exhibition is the premier showcase of products and services for the oil and gas industry
in Kazakhstan and the wider Central Asian region. The exhibition covers a total area of almost
10,000mІ with over 500 companies from 30 countries promoting their goods to over 8,000
professionals from Kazakhstan‘s energy sector. The KIOGE exhibition covers all areas of upstream
and midstream oil and gas technologies and services. It is a place where people meet face-to-face,
where companies demonstrate their products and debate the practical applications of their
technologies and service solutions. It is also a place to discuss contracts, take orders, boost sales,
learn about new projects, cement existing relationships and build new ones. For the oil and gas
industry, KIOGE is Kazakhstan‘s key marketplace for business.
KIOGE benefits from the official support of the Ministry of Oil and Gas of Kazakhstan and the
national oil company, KazMunayGas. Official event support is also provided by the Almaty City
Akimat, the Chamber of Commerce and Industry of Kazakhstan and a number of diplomatic
missions from participating countries. The event is ‗Approved‘ by the Global Association of the
Exhibition Industry (UFI) and is organised by one of Kazakhstan's leading trade event organisers,
Iteca (part of ITE Group plc) together with partners from the UK, Russia, Germany, Turkey and
China.
Coal
Coal is one of the largest industries in Kazakhstan. According to the 2010 BP Statistical
Energy Survey, as of beginning of 2010 Kazakhstan‘s coal reserves were 31300 million tons, 3.78%
of the world total.
Kazakhstan ranks eighth in the world in coal production after the U.S., Russia, China,
Australia, India, South Africa and Ukraine. Kazakhstan‘s 2009 coal production was 101.52 million
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tons, 1.51% of the world total. Kazakhstan‘s 2009 coal consumption was of 33.04 million tons oil
equivalent, 1% of the world total.
The coal sector is also a priority investment area. Kazakhstan has Central Asia‘s largest
recoverable coal reserves. The state register includes 142 closed mines and 55 open-pit mines. Most
mines are located in the central part of Kazakhstan (the Karaganda and Ekibastuz coal basins and the
Shubarkol mine) and north Kazakhstan (the Torgay coal basin). Recoverable reserves account for
45% and unrecoverable 55%.
Approximately 30% of Kazakhstan‘s coal production is exported, mainly to Russia and
Ukraine. The remainder is used in the domestic power generation industry (80% of Kazakhstan‘s
power requirements are coal based) as well as the iron and steel industries. Kazakhstan is the former
Soviet Union‘s 2nd largest producer, after Russia. According to the Kazakh Ministry of Industry and
New Technologies, the country aims to be producing 134 million tons annually by 2015 and
increasing this number by 150 million tons annually by 2020.
The country has more than 400 coal deposits of which a third is classified as brown coal or
lignite deposits. Most coal production is sourced from two main basins, the Karaganda Basin, which
supplies coking coal from underground mining operations, and the Ekibastuz Basin (the third largest
coal basin in the FSU), which supplies coal to the power generation sector.
The Karazhir deposit is one of Kazakhstan‘s higher grade coal deposits containing more than
1 billion tons of reserves, with a large proportion being open pittable.
Mining is happening at 53 mines, including 15 in the Karaganda coal basin, by 34 companies
(one joint venture, five foreign and 28 local companies). The major companies are: Bogatyr Access
Komir, Shubarkol Komir, Mittal Steel Temirtau, the Eurasian Energy Corporation, Maykuben West,
Karazhira Ltd, the Kazakhmys Corporation and Gamma.
Bogatyr Access Komir, LLP or BAK, the largest open cast mining company in Kazakhstan,
which is wholly owned by the US' Access Industries Inc., owns the Bogatyr mine. The mine has a
projected capacity of 50 Mt/y.
MMRC owns 32.8 % of the Eurasian Energy Corporation, with the remaining 24.3% by the
government and the balance as public and corporate shares.
Ispat-Karmet, Kazakhstan's biggest steel producer, operates several coal mines to feed its
steelworks, producing just over 7 Mt from the Karaganda region.
Summary of Coal Industry
Kazakhstan has registered 49 coal deposits in its state reserve balance (USGS, 2010). Table
below summarizes Kazakhstan‘s historical annual coal production by regions.
Kazakhstan‘s coal production
2006 2007 2008 2009 2010
Coal, thousands tons
Republic of Kazakhstan 96230.5 98383.9 111072.3 100 854.3 110805,
9
Akmola region 41.1 41.1 30.9 245.4 1478,6
Aktobe region 3.2 6.2 4.7 4,9 2,5
Almaty region 8.1 10 15.0 15.1 16,7
Eastern Kazakhstan region 4469.4 4433.3 5431.5 5353.3 5808,3
Zhambyl region 20 66 324.0 355.0 263,6
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Karaganda region 26797.9 31715.4 32461.8 30722.2 32560,4
Kostanay region 52.7 7.7 51.0 8,2 50,0
Pavlodar region 64838.1 62104.2 72753.4 64150.2 70625,8
The coal sector is said to have enough reserves to last over 100 years. In the future, the
development of the raw materials base will be achieved through enriching and improving the quality
of the coal and the deep processing of coal to obtain fluid fuel and synthetic substances. Developing
shale is also timely. As an alternative source of energy, methane from coal mines in the Karaganda
basin can also be used. The high concentration of methane in coal layers and the existence of a well-
developed infrastructure and major gas consumers make it possible to extract it and utilize it on a
large scale. This will also increase central Kazakhstan‘s energy potential and provide gas not only to
enterprises in Karaganda, Ekibastuz and Pavlodar regions but also to the country‘s capital, Astana.
***
Kazakhstan’s Uranium and Nuclear Industries
(based on World Nuclear Association’s reports)
Kazakhstan has 15% of the world's uranium resources and an expanding mining sector,
aiming for 30,000 tU annual production by 2018.
In 2009, it became the world's leading uranium producer, with almost 28% of world
production.
A single nuclear power reactor operated from 1972 to 1999, generating electricity and for
desalination.
Kazakhstan has a major plant making nuclear fuel pellets and aims eventually to sell
value-added fuel rather than just uranium. It aims to supply 30% of the world fuel fabrication
market by 2015.
The government is committed to increased uranium exports, and is considering future
options for nuclear power.
Kazakhstan has been an important source of uranium for more than fifty years. From 2001-
2010, production rose from 2000 to 18,000 tonnes. The uranium production output for 2010 totalled
17,803 tons and exceeded the targeted volume by almost 30%. For the period 2009-2010, the
volume of uranium production in Kazakhstan increased two fold.
Kazakhstan has no national electricity grid, but a northern grid links to Russia and a southern
grid links to Kyrgystan and Uzbekistan. Electricity consumption is 48 TWh/yr, from 17 GWe of
plant, mostly fossil fuel fired and now privatised.
Kazatomprom is the national atomic company set up in 1997 and owned by the government.
It controls all uranium exploration and mining as well as other nuclear-related activities, including
imports and exports of nuclear materials. It announced in 2008 that it aims to supply 30% of the
world uranium by 2015, and through joint ventures: 12% of uranium conversion market, 6% of
enrichment, and 30% of the fuel fabrication market by then.
The uranium sales volume of JSC NAC Kazatomprom, excluding subsidiaries and joint
ventures, amounted to 9,000 t U in 2010 The revenue of uranium in 2010 increased by 30%
compared to 2009.
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By the end of 2010, the portfolio of orders of JSC NAC Kazatomprom was about $17
billion.
Recent international collaboration. Kazatomprom has forged major strategic links with
Russia, Japan, China and the U.S. It also has taken a significant share in the international nuclear
company Westinghouse. Canadian and French companies are involved with uranium mining and
other aspects of the fuel cycle.
In July 2006, Russia and Kazakhstan (Kazatomprom) signed three 50:50 nuclear joint
venture agreements totalling US$10 billion for new nuclear reactors, uranium production and
enrichment. The first JV with Atomstroyexport is JV Atomniye Stantsii for development and
marketing of innovative small and medium-sized reactors, starting with OKBM's VBER-300 as
baseline for Kazakh units. Russia's Atomstroyexport is expected to build the initial one.
The second JV with Tenex, confirmed in 2008, is for extending a small uranium enrichment
plant at Angarsk in southern Siberia. (This will also be the site of the first international enrichment
centre, in which Kazatomprom has a 10% interest.) It will eventually be capable of enriching the
whole 6,000 tonnes of uranium production from Russian mining JVs in Kazakhstan. The uranium
exploration and mining JV Akbastau with Tenex started with Budenovskoye in the Stepnoye area of
south Kazakhstan, which commenced production in 2008. This will complement the Zarechnoye JV
250 km to the south, which was set up in June 2006.
In April 2007, a number of high-level agreements on energy cooperation were signed with
Japan. These included some relating to uranium supply to Japan, and technical assistance to
Kazakhstan in relation to fuel cycle developments and nuclear reactor construction. A further
agreement on uranium supply and Japanese help in upgrading the Ulba fuel fabrication plant was
signed in may 2008. Kazatomprom is keen to move from being a supplier of raw materials to selling
its uranium as fabricated fuel assemblies. It said that it aimed to supply 40% of the Japanese market
for both natural uranium and fabricated fuel starting in 2010 - about 4000 tU per year. Negotiations
have commenced for a bilateral nuclear cooperation agreement between Kazakhstan and Japan.
In August 2006, the Japan Bank for International Cooperation signed an agreement with
Kazatomprom to support and finance Japanese firms in developing Kazakh uranium resources to
supply Japan's power generation. In March 2009, three Japanese companies - Kansai, Sumitomo
and Nuclear Fuel Industries - signed an agreement with Kazatomprom on uranium processing for
Kansai plants.
In December 2006, China Guangdong Nuclear Power Group Holdings (CGNPC) signed a
strategic cooperation agreement with Kazatomprom, in May 2007 an agreement on uranium supply
and fuel fabrication, and in September 2007 agreements on Chinese participation in Kazakh uranium
mining joint ventures and on Kazatomprom investment in China's nuclear power industry. This is a
major strategic arrangement for both companies, with Kazatomprom to become the main uranium
and nuclear fuel supplier to CGNPC (accounting for a large share of the new reactors being built in
China). In October 2008, a further agreement was signed covering cooperation in uranium mining,
fabrication of nuclear fuel for power reactors, long-term trade of natural uranium, generation of
nuclear electricity and construction of nuclear power facilities. A CGNPC subsidiary, Sino-
Kazakhstan Uranium Resources Investment Co, is to invest in two Kazakh uranium mines, Irkol and
Semizbai, through the Semizbai-U LLP joint venture.
A framework strategic cooperation agreement was signed with China National Nuclear
Corporation (CNNC) in September 2007 and this was followed in October 2008 with another on
"long-term nuclear cooperation projects" under which CNNC is to invest in a uranium mine. Late in
2007, Kazatomprom signed an agreement with both GCNPC and CNNC for them to take a 49%
stake in two uranium mine joint ventures and supply 2000 tU per year from them.
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Early in 2009, Kazatomprom signed an agreement with CGNPC for the establishment of a
specialized company for the construction of nuclear power plants in China, since Kazakh plans to
work with Russia's Atomstroyexport developing and marketing innovative small- and medium-sized
reactors had to be put on hold. As of mid 2009, a feasibility study on this joint CGNPC project was
underway.
In January 2009, Kazatomprom signed an agreement with India's Nuclear Power Corporation
(NPCIL) to supply 2100 tonnes of uranium to India and undertake a feasibility study on building
Indian PHWR reactors in Kazakhstan. NPCIL said that the deal represented "a mutual commitment
to begin thorough discussions on long-term strategic relationship." Under this agreement, 300 tonnes
of natural uranium will be supplied by Kazatomprom in 2010-11.
In April 2010, Kazakhstan signed a nuclear cooperation agreement with South Korea, paving
the way for export of Korean SMART 100 MWe nuclear reactors and for joint projects to mine and
export Kazakh uranium.
In addition, Kazakhstan signed intergovernmental agreements on nuclear energy cooperation
with the U.S. and Euratom.
In 2007, Kazatomprom purchased a 10% share in Westinghouse. Toshiba had bought the
company from BNFL for $5.4 billion early in 2006, and the Shaw Group then took 20% and IHI
Corp. 3%. The Kazatomprom link strengthened the company's upstream links for fuel supplies and
should enhance its marketing of nuclear reactors. It also brought Kazatomprom more fully into the
industry mainstream, with fuel fabrication in particular.
This led to a decision to set up with Toshiba a nuclear energy institute in the northeastern
town of Kurchatov, near Semipalatinsk, which is already a centre of R&D activity. This was
announced by Kazatomprom and the Kazakh prime minister in September 2008 and will focus on
skills development in all aspects of the nuclear fuel cycle as well as reactor technology. Other
Japanese companies such as Toyota and Marubeni are expected to support the institute, especially in
its rare earth metals department, which aims to utilize present waste materials as the basis of a
billion-dollar, high-tech export industry. Three research reactors are operated by the Institute of
Atomic Energy at Kurchatov.
In May 2007 Canada's Cameco Corporation signed an agreement with Kazatomprom to
investigate setting up a uranium conversion plant, using its technology, and also increasing uranium
production at its 60% owned Inkai mine. In June 200,8 Cameco and Kazatomprom announced the
formation of a new company - Ulba Conversion LLP - to build a 12,000 t/yr uranium hexafluoride
conversion plant at the Ulba Metallurgical Plant in Ust-Kamenogorsk. Cameco will provide the
technology and hold 49% of the project. A feasibility study is due to be completed mid 2009.
In June 2008, Areva signed a strategic agreement (MOU) with Kazatomprom to expand the
existing Katco joint venture from mining 1500 tU/yr to 4000 tU/yr (with Areva handling all sales.In
October 2009, the two parties signed another agreement to establish the IFASTAR joint venture to
fabricate nuclear fuel at the Ulba plant and market it as an integrated fuel supply for Asian
customers. IFASTAR would first undertake a feasibility study on building a 400 t/yr fuel fabrication
line at Ulba. IFASTAR is to be based in Paris, with 51% Areva equity (though any resulting plant
will be 51% owned by Kazatomprom).
In 2010 Kazatomprom implemented a number of large-scale industrial projects:
- Inkai JV LLP: The facilities of industrial complex of geo-technological field were put into
operation in Suzak District of South Kazakhstan Oblast. The Satellite 1 Plant at Site 2 of
Inkai Deposit was put into operation.
- Karatau JV LLP: Expansion of Pilot Commercial Uranium ISL Mining Project at Budenovskoye
Deposit, Site 2
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- Katco JV LLP: Increase in production capacity at Moyinkum Deposit, Tortkudik Site 2.
- Baiken-U JV LLP: Housing estate of field camp designed for 245 people located in Baikenzhe
Rural District, Zhanakorgan Region of Kyzylorda Oblast was commissioned.
In the area of uranium conversion, Kazatomprom and Cameco are working together on
implementing the joint project for conversion facilities construction. In 2010, Rosatom State
Company and Kazatomprom reached agreement in the area of uranium enrichment on further
development of the project CJSC Center for Uranium Enrichment according to the alternative
option.
On October 27, 2010, during the official visit of President Nazarbayev to France, the
Agreement was signed between Kazatomprom and AREVA for nuclear fuel production. The
company, which is 51% owned by Kazatomprom and 49 % by AREVA, will construct a new line
for fuel assemblies production. The new plant with capacity of 400 tons per year is supposed to be
put into operation in 2014.
In 2010, JSC UMP completed the certification process of fuel pellets made of uranium
dioxide as per AREVA‘s specifications. Kazatomprom was awarded the right to produce fuel for
reactors of AREVA design, used in many countries around the world.
In 2010, JSC UMP and Nuclear Fuel Industries Ltd. (NFI), Japan, implemented a
certification of uranium dioxide powder, produced by JSC UMP for Japanese nuclear power plants,
which allowed JSC UMP to supply the nuclear fuel components to Japanese market.
In addition in 2010 JSC UMP completed the certification of production for uranium fuel
pellets at China Jianzhong Nuclear Fuel (CJNF), an entity of China National Nuclear Company
(CNNC). Thus, a large scale project was launched for supply of uranium fuel pellets to China, which
will be used in fuel production for largest nuclear power plant owner in China - China Guangdong
Nuclear Power Corporation (CGNPC).
Kazatomprom continues active development of new directions in its activities:
- SARECO JV LLP was established by Kazatomprom and Sumitomo Corporation, Japan
- The establishment of the Joint Venture by Kazatomprom and Toshiba Corporation, Japan.
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map of KazAtomProm. Scale: Kyzlorda to Shieli/ Kokzhoky is about 100km.
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National Atomic Company «Kazatomprom»
The Atomic Company KAZATOMPROM is the national operator of the
Republic of Kazakhstan, for import and export of uranium, rare metals,
nuclear fuel for power plants, special
equipment and dual-purpose materials.
100% of the Company‘s stock is held by the Government under the National Welfare Fund
SAMRUK-KAZYNA. At present, over 25,000 workers are employed by the Company.
KAZATOMPROM is a holding - managing six following core activities:
uranium prospecting/exploration and production;
output of nuclear fuel cycle products;
construction of reactors and nuclear power plants;
non-ferrous metallurgy and production of construction materials;
power industry;
science;
social welfare and personnel training.
MISSION:
Pursuance of the industry-oriented policy of the Republic of Kazakhstan aimed at
establishment of a national industrial complex, competitive in both the domestic and
overseas market;
Development of a transnational vertically integrated Company holding key positions in the
world nuclear power market;
Participation in designing nuclear power plants;
Development of science-intensive technologies.
Strategy
To offer the customer a wide range of outputs and services and, to this purpose, to seek to achieve
dynamic development of high production standards through the use of the latest advances in science,
know-how and management.
Nuclear fuel cycle development strategy
To support the nuclear renaissance worldwide and, whilst also pursuing a concept of large-scale
international cooperation, KAZATOMPROM also aims to achieve the goal of becoming a top
vertically integrated transnational company, with a complete service package – from uranium
production to nuclear fuel manufacturing and construction of power generation units.
Contacts:
168, Bogenbai batyr St, Almaty city,
050012, Republic of Kazakhstan
Tel.: +7 /727/ 261 54 25, 258 50 75, 258 50 95, 258 50 96 (reception)
Fax: +7 /727/ 250 35 41
e-mail: [email protected]
http://www.kazatomprom.kz/
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Renewable Energy
Biofuels. Kazakhstan has the necessary economic potential for the production and
development of bio fuels. According to the Ministry of Agriculture of Kazakhstan, using common
wheat for the production of bioethanol is most appropriate in Kazakhstan‘s climatic conditions.
Many experts are convinced that by using low-quality wheat (1 million tons) and unused grain
leftovers (about 1.9 million tons) Kazakhstan can produce 1 billion litres (812,000 tons) of
bioethanol by 2010.
Since 2009, the Law on Support of Using Renewables has provided a legal framework for
commercial activities in this area.
In 2010, the Ministry of Industry and New Technologies signed a Memorandum of
Understanding with the Samsung C&T. According to the Ministry of Industry and New
Technologies, the Memorandum includes planning the construction of wind and solar power
stations.
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MINING AND SMELTING INDUSTRY IN KAZAKHSTAN
As the planet‘s ninth largest country, covering 2,717,300 km2, Kazakhstan dominates its
Southern Central Asian neighbors both in terms of land mass and mineral wealth. Proven resource
figures are truly staggering. Its mineral wealth has colossal potential for development.
Kazakhstan‘s mining industry accounts for approximately 27% of the Kazakhstan‘s GDP.
About 90% of all MSS products are exported to more than 30 countries, making 35% of the total
exports of the country. Mineral resources produced in Kazakhstan contain 76 elements of
Mendeleev‘s table. The reserves of the country are rated 1st in uranium, zinc and lead in the world,
3rd
in manganese, 4th
in copper, 7th
in cobalt and cadmium, 8th
in gold.
After oil and gas, the mining industry in Kazakhstan is the second largest economic sector
when evaluated in terms of revenues. In 2009, mining represented 19.6% of Kazakhstan‘s national
GDP and US$21.3 billion worth of economic output. In 2009, investments in minerals amounted to
US$21 billion (12 times higher than in 1996). Of that, $4.6 billion was invested into mining and
conversion of solid minerals. The greatest volume of investments, next to hydrocarbons, goes to the
polymetallic and ferrous metals industries. The investments were put into the technical
modernization of mining companies and construction of new high added-value enterprises.
The government will approve the Mining-Smelting Industry Development Program in 2014.
The goal of the program is to provide raw materials for the production of high technology and
science-intensive finished products (mechanical engineering, construction, aircraft, space and
defense industry). Upon The government expects 107% growth of gross value added for metallurgy
products.
Kazakhstan is one of the world's best-endowed states, possessing world-class deposits of
minerals and raw materials. Vast quantities of base and precious metals have been discovered, with
countless others waiting for discovery and development. Kazakhstan is the ultimate mining and
metallurgical country producing 25 different kinds of ferrous, non-ferrous and precious metals.
Some 233 mining enterprises produce a wide variety of commodities: coal, iron ore, chromites ores
and ferroalloys, alumina, copper, lead, zinc, steel, titanium sponge, uranium, barites and others.
Mining activities are currently being carried out at 2,000 mines in Kazakhstan, which consists
of prospecting at 132 mines (7%), extraction at 1,213 (61%) and both activities at 641 (32%).
Kazakhstan has an abundant supply of accessible mineral and fossil fuel resources. According
to some estimates, Kazakhstan has the first largest uranium, chromium, lead, and zinc reserves, the
third largest manganese reserves, the fifth largest copper reserves, and ranks in the top ten for coal,
iron, and gold. It is also an exporter of diamonds.
Precious Metals
Gold. Kazakhstan has 4% of world deposits of gold. The country occupies eighth place after
South Africa, the US, Australia, China, Russia, Canada and Indonesia.
Kazakhstan‘s two major gold deposits are in Vasilkovskoye (Kazzinc) with
approximately360 mt and in Bakyrchik (Ivanhoe Mines Altynalmas) with approximately 277 mt.
Kazakhstan‘s gold deposits are complex poly-metallic ores often presenting significant challenges
during processing stages of production. Much of Kazakhstan‘s gold is produced by copper and zinc
producers such as Kazzinc and Kazakhmys as a byproduct of refining processes.
The Vasilkovskoye Zoloto joint venture, the Bakyrchik mining enterprise, the Kazakhmys
Corporation, Kazzinc and the Kazakhaltyn mining company have large gold reserves (together
accounting for 52% of the country's total reserves). Gold is being mined at 199 deposits.
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Most extraction (about a half) comes from composite sulphide deposits developed by Kazzinc
and the Kazakhmys Corporation. A further 40% is extracted by Vasilkovskoye Zoloto, Altynalmas,
Kazakhaltyn, Yubileynoye, Andas-Altyn, Altyn-Tobe and Dank companies, which are developing
their own gold deposits.
These companies have gold reserves that will last between 10 and 80 years. Developing hard
and complex ore will increase the ore base. As a result, according to forecasts, Kazakhstan will
become a leading gold producer by 2015.
In 2009 Kazakhstan produced 10.3 thousand ton of refined gold, which is 26% up from 2008.
Silver. Silver reserves were discovered in 100 deposits of which 60% are cooper-lead-zinc
deposits. Silver production is concentrated on affiliated companies of Kazakhmys i.e.
Zhezkazganzvetmet and Balkhashzvetmet. In 2009, Kazakhstan produced 673,3 thousand tons of
silver, up 7.1% from the year 2008.
Nonferrous Metals
Copper. Kazakhstan occupies fourth place in the world‘s copper reserves (5.5% of world
deposits), behind Chile, Indonesia and the U.S. The state register records 93 copper deposits, half of
which are being developed. The major enterprises operating in the sector are the Kazakhmys
Corporation, Kazzinc, Aktubinsk Cooper Company, Maikainzoloto (in total, there are nine
companies, including two foreign).
Copper production is estimated to be around 400,000 mt in 2010, which places Kazakhstan at
No. 10 globally for copper output. The sector has reserves that will last from 20 to 30 years.
Kazakhstan‘s export of cooper concentrate varies between 100-200 thousand tons per year.
Main export markets are China, Russia and Uzbekistan. In 2009, Kazakhstan produced 400 tons of
refined copper.
Lead, zinc. In terms of proven zinc (9,5% of world deposits) and lead (10% of world deposits)
reserves Kazakhstan occupies the leading position in the world. The state register records 85 lead
deposits and 79 zinc deposits. The mining of polymetals is being carried out at 32 deposits,
consisting of extraction at twenty (63%), prospecting and extraction at nine (28%) and prospecting
at three (9%).
Reserves are concentrated in Eastern Kazakhstan around Ust-Kamenogorsk as well as in
Southern Kazakhstan in close proximity to Shymkent. Both zinc and lead production in Kazakhstan
are dominated by major domestic firms Kazzinc and Uzhpolimetal. Kazzinc production for 2009
was 300,000 mt of zinc and 80,000 mt of lead. Kazzinc is driven by a strategy of advanced
industrialization, employing some of the world‘s leading technologies to increasingly improve the
efficiency and productivity with which Kazakhstan‘s complex poly-metallic ores can be processed.
The main raw material base is composite sulphide and polymetal deposits in Rudnyy Altay,
which produces over two-thirds of the country‘s total lead and zinc outputs. Deposits are developed
using underground methods. The main enterprise in the sector is Kazzinc. Kazakhmys is involved in
collateral production and accounts for a third of the total lead and zinc ore outputs. In total, there are
14 enterprises operating in this sector (11 local, 2 foreign and 1 joint venture) and they enable
Kazakhstan to occupy sixth place in the world in terms of lead and zinc production. A new zinc
production plant with capacity of 30 thousand tons per year has been built by Uzhpolimetal. Another
plant with production capacity of 100 thousand tons is under construction by metallurgical company
Shalkiya.
The sector has reserves that will last about 25 years. Replenishing reserves is a timely issue at
the moment. The prospects for developing the raw material base in this sector depend on
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discovering new high-quality deposits, developing major deposits with complex and poor ores and
reprocessing scrap metal.
85-88% of zinc production is exported with main destinations as Netherlands, Turkey, Italy,
Ukraine and China.
Aluminium (bauxite). In terms of proven bauxite reserves, Kazakhstan occupies tenth place
behind Guinea, Australia, Jamaica, Brazil, India, China, Guyana, Suriname and Venezuela. The state
register lists 20 bauxite mines. Aluminium of Kazakhstan, which includes the Pavlodar Aluminium
Plant and the Krasnooktyabrski and Torgay bauxite mining departments, accounts for the entire
bauxite and marketable aluminium outputs.
Aluminum production in Kazakhstan was left relatively unaffected by the global financial
crisis. Current bauxite output for 2010 stands at around 5 million mt from a relatively small total
known reserve of 360 million mt.
The sector has sufficient reserves to last about 50 years. Adopting a new technological line at
the Pavlodar Aluminium Plant has created conditions to produce alumina from low-quality bauxite,
which makes it possible to increase the raw material base of the sector from the existing deposits.
Technology to extract gallium, aluminium sulphate and sodium-sulphate mixture has been improved
to boost the deposits‘ productivity.
Kazakhstan does not yet produce metallic aluminium because the main consumers of our raw
material are Russian enterprises. However, in December 2007, Eurasian Natural Resources
Corporation announced the inauguration of the Kazakhstan Aluminum Smelter (KAS), the first
state-of-the-art aluminium smelter in the Republic of Kazakhstan and CIS. KAS has achieved its
initial production capacity of 62.5 thousand tons of primary aluminium a year.
KAS is a key element of a significant future aluminium cluster being developed by ENRC
within the Republic of Kazakhstan. The $900 mln. investment project represents the largest private
capital investment in the metals and mining industry in the Kazakhstan.
KAS‘s initial production capacity was 62,500 tons in 2007, 125,000 tons in 2008 and will
rise to 250,000 tons by 2011. The smelter, which will work in close partnership with ENRC‘s
Aluminium of Kazakhstan (AoK), is poised to service the growing demand for aluminium both in
Kazakhstan and worldwide.
Nickel, cobalt. In terms of nickel and cobalt reserves, Kazakhstan occupies twelfth and
seventh places in the world, respectively. The state register records 39 nickel deposits and 55 cobalt
deposits. Kazakhstanskiy Nikel, Kyzyl Kain Mamyt and the Sokolov-Sarbay Ore-enrichment
Production Association own major deposits. Five companies, two foreign and three local, are
operating in the sector.
Almost the entire Kazakh nickel output is exported.
Ferrous Metals
Iron, manganese. In Kazakhstan occupies sixth place in the world in iron reserves (behind
Russia, Australia, Ukraine, China and Brazil) and third place (behind South Africa and Ukraine) in
manganese reserves. The iron and manganese sector is a major sector in the country‘s raw materials
industry. The state register records 47 iron deposits and 31 manganese deposits. Orken, the Sokolov-
Sarbay Ore-enrichment Production Association, the Zhayrem Ore-enrichment Combine and the
Kazkhrom transnational company have largest raw material bases (accounting for 98% of the entire
industrial reserves). Mining iron and manganese is being carried out at 32 deposits, with prospecting
at seven (22%), extraction at 10 (31%) and both activities at 15 (47%). There are 23 companies
operating in the sector, of which 3 are foreign and 20 are local.
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Kazakhstan is expected to produce 55-60 million tons of iron ore and 4-5 million tn of
manganese ore in 2010 and 80 million tn and 7 million tn, respectively, in 2015. The current output
levels will provide the enterprises with reserves for over 80 years in terms of iron ore and over 100
years in terms of manganese ore. This is enough not only to satisfy the demands of domestic ferrous
metallurgy, but also to allow for efficient export activities.
Chromium. At 300 million mt, Kazakhstan‘s chromium reserves are the second largest in the world
behind South Africa‘s. Chromium extraction increased by 25% from 2009, reflecting sustained
increases in global demand. The state register lists 23 deposits with almost all industrial reserves
owned by the transnational company, Kazkhrom. Mining is being carried out at nine deposits owned
by Kazkhrom and one by Voskhod-Oriel. Kazakhstan is currently producing about 7 million tn of
chromium ore and this figure is expected to grow to 9 million tn by 2015.
The chromium reserves are enough to last for over 90 years.
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TRANSPORT AND COMMUNICATIONS
Kazakhstan‘s Government is pushing forward with its Strategy of Transport Sector
Development of up to 2015, which calls for the investment of up to USD26 billion on infrastructure
projects over 10 years.
The Strategy covers 2006-2015 and is supposed to be implemented in two stages: 1st stage –
2006-2011, 2nd stage – 2011-2015.
The Strategy is designed to bring the national transport system to a higher level. Transport
infrastructure is supposed to be brought in compliance with the worldwide standards.
The core of the effort involves container traffic. Improvements will ensure substantial
revenue for the central budget and transport companies.
The Strategy covers railways, automobile, in-city passenger, air and water carriage.
The Strategy is intended to facilitate growth of trade ties between the West and the East by means of
reliable and accessible transit routes.
The Strategy provides for modernization of already operating infrastructure and construction
of new routes, with all transport fleets being renewed.
Economic and geographic features of Kazakhstan (its vast territory, land-locked position,
uneven distribution of population clusters and natural resources) make the transportation component
of the economy challenging.
But being sandwiched between Europe and Asia, Kazakhstan boasts great transit potential,
as there are no alternatives for Asian states to link to Russia and Europe.
Automobile and railways routes account for a major share of the total above-ground
transport routes (about 88.4 и 14 thousand km, respectively). Total length of navigable waterways
is 3.9 thousand km, and the total air routes makes up 61 thousand km. Density per every 1000 km 2
stands at 5,1 km for railways, at 32,4 km for automobile routes with hard surface, and at 1,5 km for
in-land navigable waterways.
The share of transportation costs compared to the cost of goods is 8% and 11% for in-land
railways and automobile traffic respectively, while in industrialized countries these are normally in
the range of 4-4,5%. Four international transport corridors cross Kazakhstan:
• Northern Corridor of Trans-Asian Railway Main (TARM): Western Europe – China,
Korean Peninsula and Japan via Russian and Kazakhstan (section Dostyk – Aktogai - Sayak –
Mointy – Astana – Petropavlovsk (Presnogorkovskaya)).
• Southern Corridor of TARM: South-Eastern Europe – China and South-Eastern Asia via
Turkey, Iran, Central Asian states and Kazakhstan (section Dostyk – Aktogai – Almaty – Shu –
Arys – Saryagash).
• TRACECA: Eastern Europe – Central Asia via the Black Sea, Caucasus and the Caspian
Sea (section Dostyk – Almaty – Aktau).
• North-South: Northern Europe – Gulf States via Russia and Iran, with Kazakhstan‘s
participation in the following sections: sea port Aktau – Ural regions of Russia and Aktau – Atyrau.
Kazakhstan, Russia and other CIS countries believe that cargo transit between the EU and
Asia is worth more than $ 600 bln. a year, according to the IMF.
Infrastructural investment requirements through 2030 are expected to total more than $25
billion - and of this, 40% will be needed for railway transportation, 23% for highways and motor
transport, 25% for telecommunications, and 12% for the air and water transport systems.
Railway services play a significant role in the transport-communications network. They
carry up to 70% of cargo and 50% of passengers in the overall transport operations in Kazakhstan.
Total mileage of the railways in Kazakhstan exceeds 14 thousands km .
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A transit route with great potential is the Trans Kazakhstan Route project from China to Europe
through Kazakhstan, Turkmenistan, Iran and Turkey. One of the advantages of this route is that the
width of railroad track will be in line with the international standards so it will be unnecessary to
change railroad wheels on borders. The length of the Kazakh part of the Route is 3070 km. When
completed, the $4 bln. project will allow cargo to move from the ports of China to the port of
Rotterdam within 18 days resulting in significant cost savings for cargo transportation from Asia
Pacific Region to the Western Europe. The two stage project with 15 years of implementation period
is set to convey up to 110 mln tons of cargo a year through Kazakhstan.
New and existing railway lines will strengthen the transit potential of the country. For
example, a new route from Chromtau to Altynsarino, 402 km, which was finished in 2004 will
shorten the existing route through the Russian territory for cargo shipments from the West and East
Siberia, the Ural region of Russia to the Aktau Seaport and further to Iran and through the North-
South transport corridor to the ports of the Indian Ocean. This route will cut the length of the freight
transportation route by 2000 km, saving 48 hours of shipment time and up to US$18 per per ton ton
of cargo. Since the opening of Chromtau-Altynsarino route almost 15 mln tons of cargo were
transferred with the possibility to increase the volume of transit by 25 mln. tons a year after
realisation of the second stage of the project.
Motor transport. Kazakhstan possesses a motor roads network with total length of more
than 88,9 thousand km. What‘s more, 13 thousand km of the network have international significance
linking the Asian and European motorways. For the last years great attention has been paid to major
repair and reconstruction of existing roads. At least 14,4 thousand km of roads were repaired.
The total amount of financial resources for the implementation of the Program is US$ 8.5
billion.
International transit corridors received their further development as 579 km of highways of
national importance have been launched.
Construction of a new transport corridor between West Europe and West China will increase
deliveries by trucks almost four fold, from the current 900 thousand tons to 3.5 million tons.
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AGRICULTURE
Agriculture is considered to be one of the key sectors of the Kazakhstan economy.
Kazakhstan is rich in land resources: more than 74% of the country's territory is suitable for
agricultural production, representing 5.5% of GDP and employing over 20% of the labour force with
43% of population living rural areas.
Kazakhstan is one of the world‘s major wheat and flour exporters. It is among the 10 largest
wheat producers. It also exports large amounts of cotton, leather and wool. In seven years,
agricultural exports may reach the level of Eastern European countries.
The total area of agricultural land resources in Kazakhstan is 222.6 mln. hectares (ha), 24
mln. ha of them are covered by tilled fields (10.8%), 5 mln. ha (2.2%) by hay-fields and 189 mln. ha
(85%) by pastures. The rural population is 7.3 mln people, which represents 47.2% of the
population. Meanwhile, according to the World Bank, Kazakhstan‘s labour efficiency in agriculture
is 5 times lower than in the Eastern Europe, even lower than Russia and Ukraine. The main grain
crop is milling wheat, which is typically high in quality and protein. There is a growing trend for
Kazakhstan to export its grain internationally. In 2010, Kazakhstan produced 12.2 million metric
tons and exported 5 million metric tons of grain (net weight).
Other food crops include barley, maize, rice, potatoes, soybeans, sugar beets, cotton,
tobacco, sunflower, flax, soybean and mustard. Cotton is the most important industrial crop grown
on the irrigated land of southern Kazakhstan. Orchards and vineyards are widespread. The rich soil
and climate provide ideal conditions for growing wheat, barley, rice, corn, millet and buckwheat.
In 2011, the total crop area is planned to reach 21,3 million ha. Corn and beans will be sown
on 16,5 million hectares while oilseeds will occupy 1,7 million ha. To satisfy the demands of the
livestock industry, forage cultures are to be expanded by 95 thousand ha; areas for fruit and
vegetables will grow by 2,5 thousand and by 1,7 thousand ha for sugar beets.
Effective methods of cultivation will be employed more actively in 2011. Crop areas with
application of moisture -and resource-saving technologies will reach 11,2 million hectares, which
amount to 68% of the total sown area. That is more than the previous level by 650,000 ha, or 6%. In
addition, 8,1 million ha of grain, or nearly half of the cultivated area, will be planted with modern
crops.
For a country with a long nomadic history, it is not surprising that stockbreeding is the
traditional and dominant agricultural sector. No less than three quarters of all agricultural land is
used for grazing. Sheep breeding is predominant, while cattle breeding and the raising of pigs,
horses and camels are also well developed. Animal husbandry typically accounts for about 45%-
50% of the production value in agriculture in Kazakhstan. Primary meat products include beef, veal,
chicken, horse, lamb, pork and rabbit.
The livestock sector is gradually growing. During 2010, the output of meat rose by 3.0%, egg
production went up by 12.6% and milk output rose by 1.4%. Similarly, herd sizes are recovering
after a period in the 1990s in which livestock were being slaughtered for meat but not replaced. As
of January 1, 2011, in comparison with the previous year the number of head of cattle increased by
1,1 %, sheep by on 3,5 %, horses by 3,1 %, hogs by 2,3 %, birds by 1,1 %.
In 2010, National Holding ―KazAgro‖ allocated 94.3 billion tenge (640 million USD) for 86
projects including construction of greenhouses and poultry farms, feedlots, meat-packing factories,
milk farms, infrastructure for grain exports and development of processing industry. As of January
1, 2011, 32 projects worth 29 billion tenge (200 million USD) were completed, which created 2,000
jobs.
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One such project is a joint venture established between by Global Beef Consultants LLC
(Bismarck, North Dakota) and the Kazakh government. In 2010, the joint-venture imported 2,040
Angus and Hereford cattle from North Dakota. Ultimately the number of cattle is planned to reach
40,000. The $50 million project also includes construction of two 2,500-animal breeding facilities
and a feedlot. Kazakhstan is already the fourth-largest importer of North Dakota products, mostly
farm machinery. The state exported $40.3 million in goods last year, up from $25 million in 2005.
The government of North Dakota opened a trade office in Kazakhstan.
The Kazakhstan Government is looking for agricultural investors from the United States. The
Government has allocated land to be rented by foreign investors for as long as10 years. Also,
modern technologies are being brought to Kazakhstan from the United States.
In order to support this industry, the Government is implementing several programs to
improve the investment climate for farming in Kazakhstan. In 2011, in government subsidies for
agriculture will amount to 58 billion tenge (400 million USD), which is greater than 13.6 billion
tenge (95 million USD) allocated in 2010. To support seed production, the Government will allocate
2.2 billion tenge (15 million USD), which is higher than 108 million tenge in 2010. More than 4,2
billion tenge (30 million USD) will be budgeted for livestock breeding programs,which is higher
than 740.4 million tenge in 2010. Almost 13.1 billion tenge (90 million USD) will be spent
on improving productivity and quality of livestock production, which considerably exceeds the level
of subsidies in 2010 - 76 million tenge.
NATIONAL HOLDING «KAZAGRO»
Purpose Stimulation of agro industry development by effective management of agrarian
joint-stock companies.
Basis principles of activity -compliance with priorities of agricultural policy;
- concentration and directing investments to solving priority tasks of the agro industrial complex;
- improving economic effectiveness of the companies' activity;
- application of innovative international experience in the sphere of corporate management.
Functions - elaborate strategic plans for development, mid-term plans for the Companies' financial activity,
investment programs and the budget of the year;
- ensuring achievement of purposes, including maximization of the Companies' financial results;
- participation in realization of financial and administrative management of the companies'
projects;
- assistance in attraction of external and internal investments;
- development and monitoring indicators of the companies' activity efficiency;
- taking correcting measures in case of the companies' failure in achieving their purposes and
efficiency parameters;
- introduction of international principles of corporate management;
- selection and motivation of the Companies' top managers;
Companies of “KazAgro” National Holding
JSC ―Food Contract Corporation‖
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JSC ―KazAgroFinance‖
JSC ―Agrarian Credit Corporation‖
JSC «Mal Onimderi Corporation»
JSC ―Foundation for financial support of agriculture‖
JSC ―Kazagromarketing‖
JSC ―KazAgroGarant‖
Contacts:
Chairman of the Board Mr. Berik Beissengaliev
Astana, 36 Kenesary Str., office № 605 PO 010000
Tel./Fax: (7 7172) 555 973, 391 696 email: [email protected]; http://www.nhkazagro.kz
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BANKING AND FINANCING
On the left is a symbol for national currency, Tenge
Banking sector
After the financial crisis of two years ago, three banks (BTA Bank, JSC; Alliance Bank,
JSC; and Temirbank, JSC) were successfully restructured. As a result, the total foreign indebtedness
of those banks has decreased by more than USD11.0 billion. The banking sector is sounder as a
result. In particular, the share of banks‘ foreign liabilities in as compared to their total liabilities has
been reduced to 23.9% as of January 1, 2011, versus 33.6% as of January 1, 2010.
In 2010, deposits from individuals and legal entities grew by 13.7% to KZT 6825.3 billion
compared to 2010.
However, the lending activities of banks remain low. The reasons: the high credit risk of the
economy and the lack of high quality borrowers. The banks‘ loan portfolio decreased by KZT 572.8
billion, or by 5.9% over the year 2010 to make up KZT 9066.0 billion as at January 1, 2011. As at
January 1, 2011, loans that banks had made in foreign currency were 50.2% of the aggregate loan
portfolio, or KZT 4553.2 billion (57.2% as at Jan 1, 2010).
One of the major problems in the banking sector remains the quality of the loan portfolio.
Non-performing loans remain at a high level -- 32.5%, though this is a decrease of 4 percentage
points compared to the beginning of the past year (36.5%).
2010 saw a reduction in provisions (reserves) in Kazakhstan‘s banking sector. The aggregate
amount of provisions (reserves) in banks decreased to KZT 2802.2 billion, which is 30.9% of the
loan portfolio, and is enough to cover loans more than 90 days in arrears 1.3 times. However, the
proportion of loans more than 90 days in arrears keeps is still high at 23.8% as of January 1, 2011.
Stock exchange
On January 1, 2011, total capitalization of KASE was KZT 13967.2 billion or 56.8% of the
GNP. The number of issuers that had defaulted in the organized securities market was 29. Of them,
the number of issuers whose outstanding debt has been repaid in part is 9. The number of issuers
whose outstanding debt has been repaid through debt restructuring is 2. The number of issuers
whose securities have been delisted from KASE is 19.
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Kazakhstan‟s Sovereign Ratings
Ratings Outlook
Standard & Poor‘s
Foreign currency: BBB
National currency:
BBB+
Stable
Moody‘s Investors
Service
Foreign currency: Baa2
National currency:
Baa2
Stable
Fitch Ratings
Foreign currency:
BBB-
National currency:
BBB
Positive
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NATIONAL FUND OF KAZAKHSTAN
National Fund of Kazakhstan (the Fund) was established according to the Decree of the
President of the Republic of Kazakhstan dated August 23, 2000. The Fund is managed by the
National Bank of the Republic of Kazakhstan.
The Fund has 2 basic functions:
saving: guaranteeing sustainable socio-economic development of the country and savings
for future generations; and
stabilizing: reduction of economy dependence on unfavorable external factors.
The Fund‘s assets are being invested into fixed income securities, money market instruments
and equities issued by top-rated foreign and national companies. Stabilizing portfolio includes
investments in highly liquid instruments of money markets and reliable Eurobonds with high
credibility rating. Saving portfolio, aside from debt and money market instruments, is comprised of
equities. This approach favors safe diversification and stable long-term revenues.
The Fund has been very sizeable financial cushion making the country‘s budget much less
dependent on price fluctuations for energy and commodity exports during the recent global financial
turmoil. Apart from reducing the country‘s exposure to external shocks, the Fund‘s assets have been
used to overcome consequences of the global financial crisis. Kazakhstan has allocated $19 bln
(14% of GDP) for the local anti-crisis measures from the Fund, which helped to create 400 thousand
new workplaces, put into operation 170 new industrial objects, render support to small and medium
business, financial institutions and real estate market.
As of March 1, 2011, the Fund‘s assets rose 26% to 6.11 trillion tenge ($41.9 billion) from
4.5 trillion tenge ($31 billion) in 2009 on higher revenue from oil-industry taxes. Previously, the
Fund had been kept in dollars, but now its currency structure is diversified. The Fund‘s benchmark
portfolio for bonds comprises 40% U.S. Treasuries with maturities of 1 to 5 years, 35% euro-area
debt rated AA or AAA with maturities of 1 to 10 years, 10% each of 1- to 10-year U.K. gilts and
Japanese bonds, and 5% 1- to 10-year Australian bonds. Stabilizing portfolio constitutes about 25%
of the Fund‘s assets in foreign currency, whereas the saving portfolio – 75%.
Notwithstanding the negative impact of the global financial crisis on the market conditions
and especially on the Euro-zone debt capital market, due to diversified investment policy as well as
a timely response to changes in the situation on world financial market the Fund has significantly
improved its investment performance in both stabilizing and saving portfolios well above their
benchmark portfolios. For instance, sales of Greek, Spanish and Portuguese sovereign bonds helped
the Fund to earn about $900 million on its investments in 2010. As a result, after losing money on
investments in the 1st half of 2010, the Fund turned a profit through three quarters as the value of its
securities and assets increased.
Advanced world experience as ground for the National Fund of Kazakhstan. Taking into
consideration many features Kazakhstan and Norway have in common as oil exporting nations
Kazakhstan has based its National Fund establishing experience on the example of the Norway Oil
Fund.
KAZAKHSTAN The National Fund
NORWAY
The Norway Pension Fund
Goals:
1. Ensure stable social and economic
development of the country
2. Accumulate financial resources for
future generations
Goals:
1. Smooth short-term variations in oil
revenues
2. Cope with long-term challenge of funding
pensions in the face of declining oil revenues
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3. Reduce the economy‘s susceptibility to
unfavourable external factors
Income sources:
taxes and non-tax revenues from oil
companies, return on invested capital
Income sources:
cash flow from petroleum activities and return
on invested capital
Management:
Operations require annual approval by
the Parliament;
Assets are managed by the National
Bank of Kazakhstan and/or appointed asset
management companies according to the
Ministry of Finance guidelines;
Oversight by the Management Council
formed by the President and members of
the Parliament and Government.
Management:
Transfers to a government
fiscal budget require approval of the
Norwegian Parliament
Assets are managed by the
Norwegian Central Bank according to the
Ministry of Finance guidelines;
Oversight by the Norwegian Government
and Advisory Council on Ethics.
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THE STATE PROGRAM OF ACCELERATED INDUSTRIAL-INNOVATIVE
DEVELOPMENT OF KAZAKHSTAN FOR 2010-2014
Important Milestone in “Avoiding the Oil Course”
Kazakhstan had to rely on rich energy resources and spared no effort to ensure speedy
development of this sector of the economy. But there was an early understanding that the oil could
become a curse unless proper policies are developed -- that oil is an opportunity, not a guarantee of
economic success. The goal is to build a modern, diversified, highly-technological, service-based and
value-added economy.
The State Program of Accelerated Industrial-Innovative Development of Kazakhstan for
2010-2014 (SPAIIDK) reflects Kazakhstan‘s new economic philosophy, which initially was
introduced by the Innovative Industrial Development Strategy for the years 2003-2015 (New
Industrial Development Strategy).
The SPAIIDK is aimed at maintaining a steady and balanced economic growth through
diversification.
SPAIIDK indentifies seven areas to serve as a basis for overall economic diversification:
agriculture;
construction;
refining and O&G infrastructure development;
metallurgy;
chemical and pharmaceutical industry;
news sources of energy (including nuclear and renewables);
transportation and telecommunications.
Implementation of this program will lead to a $47.6 bln increase of the economy‘s total value
added.
SPAIIDK opens wide opportunities for foreign investors. For example, in 2010 Kazakhstan
launched 152 projects worth KZT 800 billion ($ 5.5 bln) that created 23,500 jobs. By 2014, Kazakh
officials plan to implement 294 investment projects worth KZT 8.1 trillion ($ 55.1 bln). In total,
161,000 new permanent jobs will be created for the period of the program.
In March 2010, the Ministry of Industry and New Technologies was established to
coordinate diversification development. It has a Deputy Prime-Minister-ranked Minister – a sign of
its importance.
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логотип
Program of Accelerated Industrial-
Innovative Development for 2010-2014
Agriculture
2015 – 8% export share of agricultural products
Gross Value Added+16%
10000 new jobs
Construction and Construction Materials
2015 – 80% of demand by domestic production
Gross Value Added+76%
Refining and O&G Infrastructure Development
2014 – 100% of demand by domestic oil products
Gross Value Added+30% Metallurgy
2015 – twofold production and export
Gross Value Added+107%
Chemical and pharmaceutical Industry
2014 – 50% of demand by domestic production
Energy including renewables
2015 – 10% decrease of economy’s energy intensity
Transport and Telecommunications
boost for new production across all sectors
Gross Value Added+63%
Total Gross Value Added+over KZT 7 trn. ($47.6 bln.)
134 projects are scheduled for 2010 and alreadydistributed but…
2011-2014 are still ahead
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логотип
SME Development Fund „DAMU‟
www.damu.kz
Development Bank of Kazakhstanwww.kdb.kz
Investment Fundof Kazakhstan
www.ifk.kz
National Innovation Fund
www.nif.kz
Export credit Insurance Corporation
„KazExportGarant‟ www.kecic.kz
National Export and Investment Agency „KAZNEX INVEST‟
www.kaznex.kz
Official Points of Contactto explore investment opportunities
Ministry of Industry and New Technologies(www.mit.kz)
„Samruk-Kazyna‟ National Welfare Fund
(www.samruk-kazyna.kz)
„KazAgro‟ National Holding
(www. nhkazagro.kz)
Investment Portal
„Kazinvest‟
www.kazinvest.kz
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“NATIONAL WELFARE FUND
“SAMRUK-KAZYNA”, JSC
Contacts:
Address: Kazakhstan,
010000, Astana,
Kabanbay Batyr av.,
building 23
Blocks А, С, Е.
Tel.: (+7 7172) 79-04-
86, 79-04-87, 79-04-
88 and 97-94-42
Fax.: (+7 7172) 79-04-
00 and 97-94-45
Mr. Timur Kulibayev
CEO
Sir Richard Evans,
Independent Director,
Member of the Board of Directors
The ―Samruk-Kazyna‖ was established to increase competitiveness and sustainability of
the national economy and to prevent a potential negative impact of world market changes to the
country‘s economic growth.
The core aim of the Fund activities is to manage share holdings of national development
institutions, national companies and other legal entities for maximization of their long-range
value and enhance of competitiveness on international markets.
Fundamentals of the Fund Activity:
1. Observance of state interests as the sole shareholder of the Fund;
2. Transparency, efficiency and flexibility of activity of the Fund and companies;
3. Consistency and operational efficiency in decision making and realization;
4. Responsibility and accountability.
Main Directions of the Fund Activity:
5. Assistance in modernization and diversification of national economy;
6. Assistance in stabilization of national economy;
7. Increase of activity efficiency of companies.
8. The key direction of activity of the Fund and companies is modernization and
diversification of national economy
9. The Fund is designated to extend maximum assistance to the Government of the Republic
of Kazakhstan taking prompt and operative decisions on attraction of investments to real
sector of the economy, stirring up the activities in the regions, strengthening of inter-
sectoral and interregional ties utilizing to maximum extent the existing advantages and
potential.
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Efficient diversification and modernization of national economy are implemented through
realization of intensive investment activity, especially in priority sectors of the economy such as
oil and gas, electric energy, metallurgy, chemistry, petrochemistry and infrastructure.
Main Objectives of the Fund:
- To elaborate and provide the realization of investment projects of regional, national and
international scale;
- To support and modernize existing assets of Fund group companies;
- To assist the development of regions and realize social projects;
- To support national commodity producers, domestic goods and services.
Functions of the Fund within aforementioned objectives:
- To elaborate and (or) realization, and (or) financing of investment projects of regional,
national and international scale, including the real sector of the economy, using its own
resources and (or) with participation of the companies, as well as jointly with strategic
foreign and (or) domestic investors, through equity financing and loan extension;
- To act as an operator for realization of the Programme ―30 Kazakhstan corporate
leaders‖ and other programs and plans based on the decisions of the Government of the
Republic of Kazakhstan;
- To develop new sectors of economy and to purchase economically attractive assets both
in the country and abroad;
- To ensure cooperative and active investment policy;
- To attract domestic and foreign, state and private investments; to introduce innovations
in different spheres of economy;
- To raise balanced debt capital on foreign and domestic markets;
- To finance SME projects;
- To establish efficient complex system of financial and investment instruments group
companies;
- To develop interregional economic ties through the realization of projects on the
territory of the Republic of Kazakhstan;
- To ensure break-through development of regions through the actions of social and
entrepreneurial corporations.
Functions of the Fund:
- To participate in stabilization programs of the Government of the Republic of
Kazakhstan;
- To purchase of authorized voting shares of second-tier banks;
- To allocate tied funds in second-tier banks in order to promote social and economic
development, including completion of construction sites, financing of SME and agro-
industrial complex;
- To assist in development of mortgage loan market and housing construction holdings
system;
- To define, approve and carry out monitoring of procurements order of the Fund and
companies, that set the mechanisms for increase of domestic component in procurements of
the Fund and companies got from Kazakhstan producers of goods and services, for provision
of localization of production, assembly, repair and service of imported equipment in
Kazakhstan only when the equipment is purchased in large volume by the companies;
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- Asset management of JSC ―Stress Assets Fund‖.
Activity of Samruk-Kazyna Fund for stabilization of the economy of the Republic of
Kazakhstan:
1. Stabilization of financial sector
2. Problem solving on real estate market
3. Support of SME
4. Development of agro-industrial complex
5. Realization of innovation, industrial and infrastructure projects
“NATIONAL WEALTH FUND “SAMRUK-KAZYNA”, JSC,
SUBSIDIARIES AND DEPENDENT ORGANIZATIONS
About 40% of the national GDP is within the realm
of the Fund
Total amount of the Holding Company employees is
more than 260 thousand, including 205 employees of
the Management Company
1. JSC “Kazmunaigas” – 100% subsidiary
2. JSC “Kazakhstan Temir Zholy” – 100%
subsidiary
3. JSC “KEGOC” – 100% subsidiary
4. JSC “Kazakhtelecom” – 45.9%
ownership
5. JSC “Kazmail” – 100% subsidiary
6. JSC “Air Astana” – 51% ownership
7. JSC “Samruk-Energo” – 94.01%
ownership
8. JSC “Kazakh Research and
Development Institute of Energy” – 50+1%
ownership
9. JSC “Kazakh Operator of the Electrical
Energy and Power Market” – 100% subsidiary
10. JSC “Pavlodar Airport” – 100%
subsidiary
11. JSC “Aktobe International Airport” –
21. JSC “Kazakhstan Export Credit Insurance
Corporation” – 100% subsidiary
JSC “Investment Fund of Kazakhstan” – 100%
subsidiary
22. «KazExportGarant» Export credit insurance
corporation» JSC – 100% subsidiary
23. JSC “Engineering and Technology Transfer
Center” – Trust management
24. JSC “Astana – Finance” – 26% ownership
25. JSC “Kazakhstan Mortgage Company” –
100% subsidiary
26. JSC “Kazakhstan Mortgage Guarantee
Fund” – 100% subsidiary
27. JSC “Zhylstroisberbank” – 100% subsidiary
28. JSC, “Real Estate Fund Samruk-Kazyna” –
100% subsidiary
29. National Mining Company “Tau-Ken
Samruk” – 100% subsidiary
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100% subsidiary
12. JSC “Atyrau International Airport” –
100% subsidiary
13. LLP “Repairs Corporation “Kamkor” –
100% subsidiary
14. LLP “Samruk-Kazyna Invest” – 100%
subsidiary
15. LLP “Samruk-Kazyna Contract” – 100%
subsidiary
16. JSC “Development Bank of Kazakhstan”
– 100% subsidiary
17. JSC “Kazyna Capital Management” –
100% subsidiary
18. JSC “Entrepreneurship Development
Fund “Damu” – 100% subsidiary
19. LLP “SK-Pharmacy” – 100% ownership
20. JSC “Distressed Assets Fund” – 100%
beneficial ownership
30. JSC “Halyk Bank” – 20.91% ownership
31. JSC “BTA Bank” – 75.1% ownership
32. JSC “Kazkommertsbank” – 21.26%
ownership
33. JSC “Alliance Bank” – 67.07% ownership
34. JSC “TemirBank” – 79.9% ownership
35. LLP “United Chemical Company” – 100%
subsidiary
36. Kazakhstan Growth Fund Management –
100% subsidiary
37. KGF SLP – 100% subsidiary
38. KGF IM – 100% subsidiary
39. JSC “Maikainzoloto” – 25% ownership
40. JSC “Kazatomprom” – 100% subsidiary
41. JSC “Pavlodar Oil Chemistry Refinery” –
42% ownership
42. JSC “Kazakh British Technical University” –
1.67% ownership
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PEOPLE‟S IPO
In a speech at Nur Otan Party Congress on February 11, 2011, President Nazarbayev
asked the Government to develop a program for initial public offerings of the national
companies owned by the sovereign welfare fund Samruk-Kazyna, which controls around $70
billion of assets in banks, state energy companies and other major industries.
Samruk-Energy, KEGOC and KazPost will put their shares up for an initial public
offering (IPO) by the end of the year. National companies such as KazMunaiGas,
Kazakhstantemirzholy railways and Kazatomprom will follow up with initial public offerings in
2012-2013. Later on, the metal producers Eurasian Natural Resources Corp. (ENRC),
Kazakhmys, Kazzinc, and Arcelor Mittal‘s Karmetkombinat will also offer some of their shares.
―People‘s IPO‖ shares will be sold directly to the public. Shares that remain unsold to
individuals will then become available for purchase in Kazakhstan‘s pension and investment
funds. ―We are now in the tight process of engaging consultants, and I think that in the 2nd half
of this year people‘s IPO will enter into full force,‖ said Prime-Minister of Kazakhstan Mr.
Karim Massimov.
"In the sale of shares we do not aim at maximizing profits for the Government. We think
more about the investors – citizens and the pension funds… Revenue sharing and the
establishment of average investors in the country is very important not only in economic terms,
but also from political and social point of view. Not everyone can become an entrepreneur. But
having small savings to the tune of USD 100, 200, 500 you can take part in the equity. I think
that this is a reduction of social tension. This first stage we must pass and later we can talk about
the full-scale IPO for a wide range of investors," the Prime Minister said.
The Ministry of Finance has proposed to limit the equity offering up to 10% of each
company‘s shares. Finance Minister Bolat Zhamishev said that "it would be correct if the
market proposed only minority stakes up to 10% of all the national companies, except for JSC
Exploration and Production KazMunaiGas." Some companies are planning to place their shares
ahead of schedule. Thus, JSC "Exploration and Production KazMunaiGas" is going to sell 5%
of its shares this year at an estimated value of $500 million. Kazakh Citizens willing to become
shareholders of the national companies can acquire no more than 50 shares each. Public
offerings will be sold through the offices of KazPost, the national postal service.
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DEVELOPMENT INSTITUIONS
With a view to implement innovation policy in the Republic of Kazakhstan, the system
of state development institutions has been established. Such institutions are recognized by the
native and foreign partners as a reliable tool for the establishment of new high-tech industries.
Mission of the institutions is in implementing and enhancing capacities for domestic
business to accomplish important national tasks with regard to modernizing and diversifying
economy as well as bringing the country to a new level of socio-economic development.
Through the development institutions, the state participates in the projects focused on
creation of entire industries system, producing competitive products, developing technological
and economical value chain step by step. It will enable to create multi-activity enterprises,
working for final product meeting all competitive product requirements.
To further increase efficience of implementation of diversification programs since April
2011 control over development institutions has been transferred from the National Welfare Fund
―Samruk-Kazyna‖ to Ministry of Industry and New Technologies and Ministry of Economic
Development and Trade.
Investment Fund of Kazakhstan
Investment fund of Kazakhstan was formed in May
2003. It has an authorised capital of 37,9 billion KZT
(Approx. 296 million USD).
Chairman Mr. Timur Zhaksylykov
Tel.: (+7 727) 258 83 33, 259 81 31
Fax: (+7 727) 258 37 99
e-mail: [email protected]
Web-site: www.ifk.kz
Postal address: Kazkhstan, 050010 Almaty, Zenkov St. 80.
―Investment Fund of Kazakhstan‖ JSC was founded on May, 30th, 2003 by Government
Resolution of the Republic of Kazakhstan № 501 within realization of the Strategy of Industrial
and Innovative Development of the Republic of Kazakhstan 2003-2015. 100 percent of shares
of "IFK" JSC belong to Sovereign Welfare Fund "Samruk-Kazyna", JSC.
Goal of the Fund. The goal of the Fund is assistance in realization of industrial and
innovative policy of the Republic of Kazakhstan through realization and attraction of
investments into attractive projects and financial support to initiatives of a private sector in non-
primary sectors of the economy.
Objectives of the Fund:
equity investments into newly organized and operating organizations dealing with
profound processing of raw materials, producing competitive production using new
technologies, and also rendering industrial services to the perspective organizations in the
industry field;
promotion of private investments into non-primary sector of the economy through co-
financing by the Fund of investment projects (equity financing) and participation in
management of these projects.
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A decision on providing financial support is made after a comprehensive analysis on the
value added concept (VAC), and finding more significant elements of the chain. If the results of
VAC analyses show the necessity and viability of the project then it is given encouragement.
One of the main criteria for projects‘ evaluation is their commercial viability.
While considering a project the experts take into account whether the project leads to
creation of an enterprise which produces products competitive in the external markets and
capable of replacing imported goods. The analyses mainly focus on the initiatives of the private
sector with respect to the economy‘s non-mineral sector.
In order to make the projects‘ financing easier in case of finance shortage in the private
sector IFK makes co-financing by taking part in the authorised capital (purchase of shares), but
without acquiring a control package. Moreover, it should be stipulated that the state package
will be sold once the project has been realised.
It gives IFK opportunity to facilitate not only to the creation of new industries, including
high tech enterprises, but also development of the securities market.
The Fund is currently searching opportunities for establishing relations and developing
ways for enhancing partnerships with highly reputable strategic investors and private equity
funds interested in emerging markets.
National Innovation Fund
The Innovation Fund of Kazakhstan was formed in May 2003. It has an
authorised capital of KZT (tenge) 9.5 bln. (approx. US $ 68 mln.).
Chairman Mr. Aidyn Kulseitov
Tel.: (+7 727) 259 98 16, 259 98 17, 259 98 19
Fax: (+7 727) 259 98 39
e-mail: [email protected]
Web-site: www.nif.kz
Postal address: Kazakhstan, 050013 Almaty, Nauryzbay Batyr str., building # 154-A, floor 5
The Innovation Fund is to stimulate the venturing function of the market economy which
does not exist even in all of the developed countries. This function is important for the creation
and development of high tech fields of economy such as IT, electronics, biotechnology and
others. Thus the main aim of the Fund‘s activity has to be facilitation of the growth of
innovative activities, development of high tech industries in the Republic of Kazakhstan. The
efforts of IF are aimed at encouraging and development of infrastructure for innovations.
The main tasks of the Fund are:
- participation in creating the elements of infrastructure for innovations (technical
policies and science parks, informational and analytical centres, etc.);
- creation of venture funds together with domestic and large international venture
investors;
- participation in the authorised capital of new or existing enterprises with the aim to
manufacture high tech products and develop new technologies;
- financing of certain types of Research and Development aimed at creating new
technologies, products, services which are commercially viable and may have a
positive impact on the technological advancement of the country.
A decision on issuing grants by IF is taken after holding an independent scientific and
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technical expertise with involvement of foreign experts. Scientific researches, which have been
selected for financing, have to be up to the projects within the framework of financing via the
Investment Fund of Kazakhstan and Development Bank of Kazakhstan.
The innovation infrastructure development is operated by a branch enterprise of the
NIF — «Center of engineering and transfer of technologies«JSC . Since 2005 NIF is a member
of European Venture Capital Association (EVCA) and Singapurian Venture Capital Association
(SVCA).
Creation of venture funds facilitates involvement of private capital in innovation
activity, reduces risks, and forms a mechanism of effective co-operation between government
and private sector in the sphere of commercialization of innovative ideas. In present, National
Innovation Fund has initiated foundation of six venture funds together with Kazakhstani private
partners. Investment policy of these funds is addressed to search and attract projects in the areas
of ICT-technologies, new construction materials, pharmaceutics, and other prospective export-
oriented areas.
Today, the authorized capital of the six venture funds created in Kazakhstan is equal
to 130 million US dollars. Venture Capital is investors‘ capital created to finance new,
developing, or competing for a market share enterprises and firms, and therefore, it is associated
to a high or relatively high level of risk; long-term investments into venture securities
or enterprises with an expectation of high profits. Venture investments are usually risky
investments with profitability higher than average level.
Export Credit Insurance Corporation KazExportGarant (State Insurance Corporation for the Insurance of Export Credit and
Investment)
«KazExportGarant» Export credit insurance corporation» JSC was formed on
August 8, 2003. It has an authorised capital of KZT (tenge) 7.7 bln. (approx.
US $ 63 mln.).
Chairman Mr. Galym Amerkhodzhaev
Tel.: (+7 727) 250 00 21
Fax: (+7 727) 293 88 37
e-mail: [email protected]
Web-site: www.kecic.kz
Postal address: Kazakhstan, 050010 Almaty, Zenkov str., building # 80
The main task of the Export Credit Corporation is facilitation of export of goods and
services produced by Kazakh companies and insuring from political and regulatory risks. The
Corporation holds marketing researches for the development of Kazakh goods export, analyzes
and distributes information on potential export markets. Such an export promoting tool is widely
recognised in the world to facilitate export transactions. Within domestic insurance market
growth it is ready to cover risks related with export and import operations, the Export Credit
Corporation is focusing its activity on insuring from political risks and providing commercial
information on the international markets.
In August 11, 2007 credit agency «Moody‘s Investors Service» upgraded financial
reliability rating of the Corporation up to the sovereign one «Ваа1», with stable rating outlook.
The rating was upgraded due to the financial performance, well-implemented investment policy
in the area of asset management as well as the full compliance of the Corporation‘s activity in
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the area of commercial and political risks insurance to the international standards used by the
world export credit agencies.
Chairman Mr. Nurlan Kussainov
T. (+771712) 792606
E-mail: [email protected] , [email protected]
Web-site: www.kdb.kz
Postal address: Kazakhstan, Astana, Esil district, Orynbor Street, building 10 (Kazyna Tower)
Established in 2001 the Development Bank of Kazakhstan is currently one of the main
providers of the state investment policy in Kazakhstan.
Through financing estabkishment of competitive productions in non-primary sectors of
the economy and developing the country‘s infrastructure, the Bank directly contributes to the
sustainable development of the national economy.
Investment activity of the Bank is represented in all the regions of Kazakhstan and in all
key sectors of the processing industry. The new and modernized enterprises commissioned with
the help of the Bank‘s financing make a solid contribution to strengthening Kazakhstan‘s
industrial and export potential.
Being one of the main participants of the economy diversification, the Development
Bank of Kazakhstan will further establish itself as the leader in implementing breakthrough and
cluster projects. The main principles on its way are Professionalism, Credibility, and
Transparency.
All these processes are united in the ENGINEERING OF THE NEW ECONOMY, the
economy which is being built today.
National Agency for Development and Promotion of
Export and Investments “KAZNEX INVEST”
In early 2008 Corporation for export development and
promotion was formed. After announcement of State
program for accelerated industrial-innovative development
in 2010 it was reorganized into the National Agency for
Development and Promotion of Export and Investments
―KAZNEX INVEST‖. It is now in charge of organizing
road shows and business forums that are aimed at
attraction of foreign direct investments. The Agency is
working now on creation of web portal that will match
local and foreign investors. The Agency is also partnering
with large foreign investors to attract new technologies
within the realization of investment projects that are aimed
to produce high value added goods in Kazakhstan.
Chairman Mr. Yerlan Arinov
Tel.: (+7 7172) 79 17 18
Fax: (+7 7172) 79 17 19
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e-mail: [email protected]
Web-site: www.kaznex.kz
Postal address: Kazakhstan, 010000 Astana, Sygynak str., building # 10/2, block Б,
Business Center ―Nomad‖, floors 6-7
The key objective of the Agency is to be a driving force to build the institutional
network, stimulate and maintain export growth, develop trade competence through improvement
of national competitiveness. The Agency is working closely with both private and public sectors
to develop export promotion.
Activities of the Agency will be aimed at:
Promotion of an enterprise export capacity development (training, technical assistance,
data bases, trade financing information , logistics, custom clearance, packing, etc.);
Organizing business forums and trade shows to increase awareness of business
opportunities in Kazakhstan;
Promotion of the Kazakhstan‘ goods export(establishment and maintenance of business
relations with other countries; exhibitions; missions of exporters and importers,
assistance in assessing external markets);
Development of the institutional capacity (recommendations on trading improvement,
interaction between participants of trade support network, development of trade
competence, publications to support exporters, etc.);
Consulting (study of sectors and potential markets, analysis of current legislation, etc.);
Kazyna Capital Management
―Kazyna Capital Management‖ was formed on March 2007
Chairman
Mr. Abay Alpamysov
Tel.: (+7 727) 334 14 17
Fax: (+7 727) 334 14 18
e-mail: [email protected]
Web-site: www.kcm-kazyna.kz
Postal address: Kazakhstan, Almaty, Dostyk avenue, building # 291/3a, floor 2
The mission is to provide an additional incentive to private businesses of the country
through a direct participation in the authorized capital; grant loans, warranties and other
investment instruments. The main objective is making a significant contribution in the structural
and sustainable economic development of the country and gaining, jointly with the private
sector, income compatible by a degree of risk. One of the main goals of KCM JSC in the market
is providing investments in the priority sectors of the economy.
The key objective of ―Kazyna Capital Investment‖ is foundation of Private Equity Funds
(PEF) jointly with overseas funds to finance different projects especially in Kazakhstan and
Central Asia region.
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Entrepreneurship Development Fund “Damu”
EDF ―Damu‖ started operating on August 18, 1997
Chairman Ms. Lyazzat Ibragimova
Tel.: (+7 727) 244 55 56, 244 55 77
Fax: (+7 727) 244 83 41, 278 07 76
e-mail: [email protected]
Web-site: www.fund-damu.kz
Postal address: Kazakhstan, 050004 Almaty, Gogol str., building # 111
The major goal of the Fund is to encourage the establishment and economic growth of
the Kazakh small businesses and distribute government funding to support small and medium
enterprises.
Until November 2007 the Small Entrepreneurship Development Fund accomplished its
major goal by undertaking the following actions:
Developing project financing: Direct loans to small businesses operating in priority
sectors to diversify small businesses taking into account social and economic situation in
certain areas;
Developing financial leasing;
Establishing a network of microfinancing institutions;
Developing a system to guarantee liabilities of small businesses to commercial banks;
Consulting to small and medium enterprises within the program implemented by the
Fund.
The Fund is currently part of the Sustainable Development Fund Kazyna. New principles
and priorities of management and communications include transparency and partnership.
Since late 2007 conceptual changes have been occurred in the Fund: The Fund has
changed from the Small Entrepreneurship Development Fund into Entrepreneurship
Development Fund Damu. Now it has greater authority to support small and medium-sized
businesses; the Fund is turning from a financial institution into operator to manage funds
allocated by the government; new approaches are being taken to provide financial support to
small and medium-sized businesses, assisting in collecting and analyzing data and providing
consulting services to small and medium-sized businesses.
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TAXATION2
Due to political and economic stability in Kazakhstan, abundant natural resources and
high annual economic growth over the past decade, foreign investors continue to view
Kazakhstan as a favourable place to do business. One of the most important issues to foreign
investors is taxation.
The existing Tax Code was adopted on December 10, 2008, with the latest amendments
made on January 1, 2011 and is aimed at fostering the process of further diversification of the
economy of Kazakhstan and stimulation of its development. All previous amendments and
interpretations as well as International Financial Reporting Standards (IFRS) have been taken
into account and incorporated in the Tax Code. The new Tax Code aims to achieve a reduction
of tax burden on sectors not related to natural resources extraction and improve tax
administration.
What is taxation for companies that operate in Kazakhstan through permanent
establishment?
Foreign investors can operate in Kazakhstan through either a local branch of a foreign
company or a local subsidiary established as an independent legal entity. Income of foreign
companies represented in Kazakhstan is subject to corporate income tax (CIT) at a rate of 20%.
CIT was lowered in 2009 from 30% to 20%. While plans to further reduce the rate to 15.0% in
2011 have been postponed, the government remains committed to easing the overall tax burden
in order to stimulate new business ventures.
The Tax Code also introduced a number of changes to the regulation of CIT. For
example, an advance payment of CIT was cancelled for small-sized business entities and the
period of net operating loss carry-forwards was extended from 3 to 10 years.
What is taxation for companies that earn income in Kazakhstan without permanent
establishment?
Foreign companies which earn income from sources in Kazakhstan without a permanent
establishment or branches are subject to various income taxes. The following income tax rates
apply to income paid by non-resident companies with no taxable permanent establishment in
Kazakhstan:
Income (except income as per clauses 2)-6) of article 192) 15%
Income of an entity registered in tax-havens 20%
Premiums paid for insurance coverage 15%
Premiums paid for reinsurance 5%
Income from international transportation services 5%
Other income (royalty, fees for other types of services) 15%
What is the taxation regime for oil companies?
Energy companies pay the Mineral Extraction Tax (MET), the Excess Profit Tax (EPT),
the signature bonus, the commercial discovery bonus and historic costs. The MET is a volume-
2 The information contained in this article is of a general nature and is not intended to address the circumstances of any particular
individual or entity. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
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based royalty type tax applicable to crude oil, gas condensate and natural gas. Rates escalate
depending on volume. Different tables of rates apply depending on what is produced and
whether it is exported or sold domestically. The rates are applied to production valued at world
prices. MET rates vary from 0.25% to 20%. EPT is assessed using a sliding scale at the specific
rate stipulated in the Tax Code and based on the ratio of the aggregate annual income to the
income deductions. The size of the non-taxable net profit has been increased from 20% to 25%.
Are there any tax treaty benefits?
Yes, there is a procedure for claiming treaty relief in Kazakhstan that depends on the
type of income for which treaty benefits are claimed. For passive income and income from
services provided entirely outside of Kazakhstan, a non-resident of Kazakhstan who is a resident
of a country that has a tax treaty with Kazakhstan can claim treaty benefits simply by providing
to the payer a copy of a certificate from the non-resident‘s home-country tax authorities
confirming that the non-resident is a tax resident of that treaty-partner country. Likewise, a non-
resident with a branch office in Kazakhstan can claim a treaty-reduced branch profit tax rate by
obtaining from its home-country tax authorities a certificate confirming that the non-resident is
a tax resident of that treaty-partner country.
Can I use investment preferences?
Acting enterprises are granted the right to deduct the cost of fixed assets entered to
exploitation for a period not less than 3 tax periods (years). Newly commissioned enterprises are
given exemption from CIT on revenues of investment activity for a period from 3 to 10 years.
There is an exemption from property tax on fixed assets purchased within the framework
of the investment project for the period not less than 3 tax periods (years). Exemption from land
tax for plots is used for implementing investment project for the period not less than 3 tax
periods (years). There is flexibility in terms of custom duty payment when investor imports
equipment or parts to implement the investment project. State grants in kind can be granted as a
plot of land, building, construction, machines and equipment.
What are the social tax and value-added tax (VAT) rates?
The Social tax changed from 13% to 5% to a fixed rate of 11%. The VAT rate was
lowered from 13% to 12% and it has to be paid through refunding of debit balance. Tax benefits
are available to enterprises that are making investments. The flat rate of the individual income
tax is kept at 10%.
What changes have been introduced in relation to value added tax (VAT) in 2011?
According to new amendments into taxation legislation the list of zero rated turnover
and turnover which is exempt from VAT has been extended starting from January 1st 2011.
Zero-rated turnover
Sales turnover of petroleum-oil lubricants (POL) carried out by airports fuelling aircraft
of foreign air companies conducting international transportation is taxed at the zero rate.
Exemption does not apply if the shipment point and destination point are located in the
territory of the Republic of Kazakhstan.
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The list of documents confirming zero rated turnover from sales of POL to the aircraft of
foreign air companies conducting international air transportation is determined.
Turnover and import which are exempt from VAT
Sales of investment gold are considered to be turnover which is exempt from VAT under
the conditions established by the Tax Code.
Investment gold is added to the list of imported goods which are exempt from VAT.
The conditions under which import of investment gold shall be exempt from VAT are
determined.
Has the Customs Union made any impact on the taxation regime in Kazakhstan?
Kazakhstan, starting January 1, 2010, became a member of the Customs Union with
Russia and Belarus. The Customs Union is a market of more than 170 million people and has
combined GDP that exceeds 2 trillion US dollars. Being a member of the union hasn‘t affected
the tax regime of Kazakhstan, which is considered one of the most liberal tax regimes among
the countries of the CIS. For example, the CIT in Russia and Belarus are 20% and 24%
respectively, whereas in Kazakhstan CIT is 20%. VAT in Russia and Belarus are 18% and 20%
respecitvely, whereas in Kazakhstan VAT is 12%.
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TRADE REGULATION
Trade growth is a primary component of Kazakhstan‘s successful development. There
are new players in the market, and the extension of trade with Kazakhstan is becoming a priority
for an increasing number of foreign companies. What follows is an overview of the main
regulatory mechanisms for trade in imported goods into Kazakhstan. The main requirements of
customs control, licensing and certification are described.
Organizational and Legal Form of the Trade Enterprise
Kazakh law does not distinguish between resident and nonresident legal entities.
Therefore, a foreign company may carry out activity in Kazakhstan as a Kazakhstan legal entity,
with charter capital fully established by a foreign company, in the form of a joint venture or
through the establishment of a branch.
Tariff Regulatory Measures of the Foreign Economic Activity
From the moment that goods are conveyed across the customs border of Kazakhstan,
they fall within the scope of the legally established rules on conveyance and customs clearance,
i.e. tariff regulatory measures. These rules are established by the Customs Code of the Customs
union and the Customs Code of the Republic of Kazakhstan. The customs payments depend on
customs procedure chosen and include customs duties, customs fees and payment for a
preliminary decision.
In order to pass customs clearance, the customs value of the goods must be determined.
There are several methods that have been established to determine the customs value:
transaction value of imported goods; transaction value of identical goods; transaction value of
similar goods; deduction of costs; computed value and the reserve method.
The customs valuation of imported goods is often based on the price of the transaction with
these goods. The declaring person independently determines the customs value of the goods and
the customs authority controls the correctness of such determination.
A person importing goods has to pay customs duties and taxes, comply with non-tariff
regulatory measures and conduct a customs clearance. Under the procedure of processing goods
for internal consumption, foreign goods undergo processing under customs controls without
payment of customs duties or taxes and without application of non-tariff regulatory measures.
The free customs zone procedure envisages that goods placed and used within the relevant
territorial special economic zones are exempt from customs duties and taxes, except for excise
tax on imported goods, and from non-tariff regulatory measures being applied to them, except
for safety requirements. This category of goods consists of the articles included in a list
composed specifically for the purpose of the creation of special economic zones. For example,
the Decree of the President ―On the creation of the ‗Ontustik‘ special economic zone‖ contains
the list of goods including vehicles, equipment and goods necessary to conduct construction
work on the territory of the economic zone, as well as goods and materials necessary to conduct
scientific and development work.
Kazakhstan grants tariff preferences to certain countries either in the form of release
from or reduction of the rates of customs duties, or in the form of allocation of quotas for the
preferential import of goods. Customs duties are not collected when goods are imported from
countries that are members of the Customs union or have free trade agreements with
Kazakhstan. The Commission of the Customs Union approves the list of developing countries
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that are subject to the common system of tariff preferences of the Customs union. The listed
goods imported from developing countries to the common customs territory of the Customs
union are granted tariff preferences.
The law envisages that the customs value is declared by a declarant when submitting a
customs declaration of goods. However, the final decision concerning accuracy of methodology
application on customs value determination is made by the customs authorities.
In order to avoid delays in customs clearance, declarants should carefully review all
requirements with regard to the list and contents of the documents to be submitted. It is possible
to request a preliminary decision from customs authorities on classification of goods and to
undergo a periodic declaration of goods.
Non-Tariff Regulatory Measures
Apart from the customs payments, the import of goods is also subject to the non-tariff
regulatory measures, including licensing, quotas, certification and other protective measures
established by law.
Licensing
The purpose of import licensing of certain goods is to monitor and control imports of
goods that are classified as sensitive for national security reasons, protection of life or health of
citizens and the environment. Licensing of imports and exports is regulated by the Agreements
of the Customs union. Not all goods must be licensed, only those that are included in the special
list approved by the Commission of the Customs union. The list includes such goods as ozone-
depleting substances and products containing ozone-depleting substances, medicine and
pharmaceutical substances, medicine applied in veterinary, radio-electronic devices and (or)
high-frequency devices, ethyl spirits and alcohol products, cryptographic devices.
Obtaining a license is a mandatory for every imported category of goods, whether such
goods are imported by a legal entity registered in Kazakhstan or a foreign legal entity (or its
structural subdivision). In order to obtain a license, an applicant needs to submit the documents
regulated by the legislative acts to the authorized body.
One-time licenses are issued on the basis of a foreign trade contract related to goods
subject to import licensing. The license grants the right to import certain types of goods subject
to licensing in the quantity determined by the license and is valid up to 1 year from the date of
issuance of the license. At the request of an applicant, the duration of a one-time license can be
extended by making additional entries into the license by the authorized body. An import
license is issued within 15 business days from the date of submission of all necessary
documents. The authorized body of Kazakhstan has the right to terminate or suspend the license
in the case of a change in the constituent documents of the licensee registered as a legal entity (a
change of the organizational-legal form, name, or its location) or a change in the passport
information of the licensee being a physical person. In such circumstances, the licensee can ask
the authorized body to terminate the existing license and register a new license.
Certification of Compliance with Technical regulations and Standards
Within the framework of formation of the Customs Union that started its operation
January 1, 2010, the basic legal framework for technical regulations of Kazakhstan could be
found in the EurAzEC Agreement on Implementation of Coordinated Policy in the Field of
Technical Regulation, Sanitary and Phytosanitary Measures of January 25, 2008, signed by the
Republic of Belarus, the Republic of Kazakhstan, Russian Federation, Republic of Tajikistan
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and Kyrgyz Republic.
Technical regulations are mandatory for application by all EurAzEC member-states and
are enforced in the manner provided by member-states‘ national legislation. Products covered
by EurAzEC technical regulations are allowed on the common market only if they pass the
appropriate conformity assessment procedures within the territory of any member-state in
compliance with EurAzEC technical regulations. Conformity assessment is a process that
determines whether products and processes conform to technical regulations or standards.
Conformity recognitions can be (i) mandatory – by a certification of an accredited certification
body or a producer's declaration of conformity (for products subject to technical regulation
requirements); and (ii) voluntary – by a certification or a conformity declaration of the
producer/seller indicating that the requirements of standards, other documents or special
requirements were met (for products not subject to mandatory conformity recognition).
For assessment of products‘ conformity to technical regulations, EurAzEC member-
states upon mutual agreement and on a voluntary basis apply international and regional
standards and in the absence of thereof, national ones. Conformity assessment documents issued
by a certification body of one member-state are equally valid within the territory of any other
member-state without carrying out of additional procedures.
Guided by EurAzEC Agreement, the CU member-states established a legal framework
for technical regulations within the CU in the Agreement on the Common Principles and Rules
of Technical Regulating of November 18, 2010, (hereinafter – the CU Agreement on Technical
Regulating). The CU technical regulations have the status of direct application. Products could
be released for circulation within the CU territory only upon results of a conformity assessment.
In accordance with CU Agreement on Technical Regulating the CU member-states
formed a Common List of Products Subject to Mandatory Requirements within the Customs
Union (hereinafter – Common List), products included on the Common List, for which no
technical regulations of the CU or EurAzEC came into force, should be governed by the
relevant national legislation of CU member-states. Currently, mandatory requirements are
applied to 35 product groups. The product has to be excluded from the Common List once the
CU technical regulation for this product comes into force. The effect of CU technical
regulations for certain products is terminated once the EurAzEC technical regulations for these
products come into force.
Pursuant to the CU Agreement on Technical Regulating, activity related to conformity
assessment should be carried out by the accredited certification bodies and testing laboratories
included into the Common Register of Certification Bodies and Testing Laboratories.
Recognition of results issued by accredited certification bodies and testing laboratories should
be carried out in accordance with the CU Agreement on Mutual Recognition of Accreditation of
Certification Bodies and Testing Laboratories Performing Conformity Assessment of December
11, 2009. Results of products conformity assessment for which no technical regulations of the
CU came into force have to be recognized in accordance with the CU Agreement on Circulation
of Products Subject to Mandatory Assessment of Conformity on the Customs Territory of the
Customs Union.
The legislative framework on technical regulation, standardization, certification and
accreditation in Kazakhstan is based on Law No. 603-II "On Technical Regulation of 9
November 2004. The two main objectives of the Law is (i) to ensure the safety of products
through the application of mandatory technical regulations; and (ii) to enhance product
competitiveness through the application of voluntary standards.
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A conformity declaration can be prepared on the basis of evidence collected by the
applicant alone or on the basis of evidence obtained with the participation of a conformity
assessment organization. The declaration of conformity is to be registered with the relevant
accredited conformity recognition organization and is valid – similar to a conformity certificate
– in the entire territory of Kazakhstan. Any domestic or foreign organization can act as a
conformity assessment organization or a test laboratory as long as it has received accreditation
in accordance with established rules.
Foreign conformity certificates, test protocols, accreditation certificates and other
documents issued by foreign accreditation bodies are recognized in accordance with mutual
recognition agreements. In the absence of international mutual recognition agreements, test
results issued by foreign authorized bodies will only be recognized through the accreditation of
these foreign bodies in Kazakhstan's national accreditation system.
Kazakhstan has concluded a number of international agreements under which the
conformity certificates of some foreign states are recognized in the territory of Kazakhstan.
Recognition of the foreign states‘ certificates is carried out by means of their re-issuance in the
form established in Kazakhstan. In case there is no international agreement with an exporting
country, the certification of imported products is conducted according to the rules established
for Kazakhstani producers.
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STATUS REPORT ON KAZAKHSTAN‟S
WTO ACCESSION PROCESS
Status of multilateral and bilateral negotiations
Kazakhstan submitted its official application for WTO membership in 1996. Negotiations are
taking place around four key issues:
- Multilateral negotiations on systemic issues, in which Working Party members review the
existing regulatory framework for Kazakhstan‘s economic and trade policies and make
recommendations on how to bring them into conformity with WTO agreements.
- Multilateral negotiations on agriculture, in which Working Party members review the types
and volumes of state support to the agricultural sector, and negotiate on the specific amount of
the so-called ―amber box‖ measures, which are considered as ―trade distorting‖ and impacting
on the price of agricultural products.
- Bilateral negotiations on market access for goods, as a result of which Kazakhstan will bind its
import duty rates for both agricultural and non-agricultural goods imported from WTO member-
states.
- Bilateral negotiations on market access for services, as a result of which Kazakhstan will
undertake specific commitments in terms of market access for foreign suppliers of services,
such as financial, construction, telecommunication, legal and other types of services.
Kazakhstan has signed protocols concluding bilateral negotiations with 24 WTO member-states
including Oman, Pakistan, Turkey, China, Georgia, Kyrgyzstan, South Korea, Cuba, Mexico,
Japan, Norway, Honduras, India, the Dominican Republic, Bulgaria, Switzerland, Egypt, Israel,
Brazil, Malaysia, Canada, Australia, Mongolia and Ecuador.
Bilateral negotiations with the United States are at their final stage. Kazakhstan‘s Delegation
headed by the First Deputy Prime Minister of Kazakhstan Mr. Umirzak Shukeyev visited
Washington D.C. in September 2010 to meet with the United States Trade Representative Ron
Kirk and high-level officials from the White House. As a result of the meetings, Kazakhstan and
the United States finalized negotiations on Kazakhstan's goods market access. The bilateral
negotiations were officially concluded after Minister of Economic Development and Trade of
Kazakhstan Zhanar Aitzhanova signed a document with the United States Representative to the
World Trade Organization Michael Punke in Geneva in November 2010. There are a few issues
remaining in services market access and Kazakhstan plans to finalize bilateral negotiations.
Kazakhstan‘s team reassured its American counterparts that the accession to the WTO has
always been and stays a top priority for Kazakhstan.
The United States welcomes progress achieved by Kazakhstan in bringing its legislation in
compliance with the WTO rules and supports its continuous trade liberalization process. In
particular, such issues as sanitary and phytosanitary measures and intellectual property rights
are in the final stages of negotiations.
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The United States is one of Kazakhstan's main trading partners and completion of the bilateral
negotiations on goods market access is an important step in the process of Kazakhstan's
accession to the World Trade Organization.
Progress made in addressing systemic issues
Within the framework of multilateral negotiations on systemic issues, the following steps were
undertaken.
a. In accordance with the new Law of the Republic of Kazakhstan ―On Currency Regulation and
Currency Control‖ of 13 June 2005, the currency regime has been significantly liberalized. Most
notably, as of 1 January 2007, the licensing requirement for capital account transactions has
been removed. It should be noted, however, that Kazakhstan has never applied any limitations
with regard to capital inflow to the national economy.
As an alternative mechanism replacing the licensing requirement, as of 1 January 2007,
Kazakhstan is applying registration and notification requirements for currency transactions with
the sole purpose of maintaining accurate balance of payment, foreign investment, and foreign
debt statistics. Hence, the registration and notification requirements will not be of a ―permission
requirement‖ nature.
As for further liberalization of currency market Kazakhstan removed licensing requirement for
licensing requirements on currency operations related to capital transfer as of 1 January 2007.
b. In accordance with the WTO Agreement on Technical Barriers to Trade (TBT), the Technical
Regulations Law of November 2005 introduced the mandatory nature of technical regulations
and voluntary nature of standards, providing the legislative basis for developing an international
system of technical regulations and standards. According to the Law, both technical regulations
and standards are applied equally, regardless of the origin of a product or service. In December
2006 the Law adding amendments to the existing 33 laws on technical regulations in various
sectors (fire safety, construction safety, and others) was signed by President Nazarbayev.
In 2007, within the framework of further implementation of laws on technical regulations, laws
on Food Safety, on the Safety of Machinery and Other Equipment, On the Safety of Chemical
Products, and On Toy Safety were passed. The main purpose of implementing the laws is to
provide production safety, people‘s health and environmental protection safety as well as the
establishment of technical requirements of safety.
c. In accordance with the WTO Agreement on Sanitary and Phytosanitary Measures (SPS),
amendments were made to national legislation on veterinary, plant quarantine and sanitary-
epidemiological measures. For example, Kazakhstan ensured that its veterinary measures were
based on an assessment of risks to human and animal life or health, taking into account
available scientific evidence. Where relevant scientific evidence was insufficient, Kazakhstan
could provisionally adopt sanitary or phytosanitary measures on the basis of the available
information, including from relevant international organizations.
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d. In 2010 in order to bring national legislation into compliance with the WTO Agreement on
Trade Related Aspects of Intellectual Property Rights (TRIPS) amendments were made to the
Customs Code of the Republic of Kazakhstan.
According to the new amendments customs authorities were entitled to act upon their own
initiative and to suspend the release of goods in respect of which they have acquired prima facie
evidence that an intellectual property right is being infringed (ex officio action).
In 2005 amendments were made to 11 laws regulating intellectual property rights protection.
Amendments to the Criminal and Administrative Codes of the Republic of Kazakhstan
introduced the new concepts of ―selection achievements‖ and ―integrated circuits‖ and provided
criminal and administrative responsibility for illegal acquisition, storage or transportation of
counterfeit copies of works and phonograms. The minimum threshold for bringing criminal
cases involving unlawful use of copyright and related rights was decreased to 100 MCI while
the term for imprisonment was increased for up to 5 years. Administrative responsibility for
infringement of copyright and related rights was strengthened with the provision of higher
penalty sanctions and introduction of such measure as confiscation of equipment used in
production of counterfeit goods.
In 2004 Kazakhstan acceded to the World Intellectual Property Organization‘s (WIPO)
Copyright Treaty and the Performances and Phonograms Treaty (so-called ―internet treaties‖).
Besides, amendments were made to the Law on Copyright and Related Rights to ensure
retroactive protection of intellectual property rights in accordance with the Berne Convention
for the Protection of Literary and Artistic Works.
e. In accordance with the General Agreement on Tariffs and Trade (GATT) provision of the
WTO to gradually eliminate quantitative restrictions and other measures:
-A quota on imported ethyl spirit and alcoholic beverages products was eliminated in June 2004;
-Export bans on aluminum and nickel waste and scrap was abolished in December 2004;
-and as of March 2006, export prohibitions on mazut and diesel during the agriculture season in
support of local farmers was discontinued.
As of 1 July 2010 the following groups of goods were no longer subject to import licensing:
armament and defense technology, special complementary parts for their production, works and
services in the sphere of military-technical cooperation, nuclear materials, technology,
equipment and settlements, special non nuclear materials, sources of active radiation, based on
application of X-ray, alpha-, beta- or gamma- radiation, X-ray equipment, medical equipment
with use of radio-active substances and isotopes, Gunpowder, explosives, means of exploding
and pyrotechnics, rare metals, rare ground raw materials, alloy, combinations and articles,
sources of ionizing radiation and isotopes, equipment based on the use of X-ray, alpha-, beta-,
gamma- or neutron radiations.
f. As of 1 July 2010, Kazakhstan applies rules of origin to imports in accordance with the
Customs Code of the Customs Union. Non-preferential rules of origin and their application are
governed by the Agreement on Common Rules for Determining the Country of Origin of Goods
of 25 January 2008. These instruments closely follow the work of the World Customs
Organization (WCO) and the WTO regarding the application and harmonization of non
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preferential rules of origin. The principles for determination of the country of origin of goods
are based on international practices and implemented the recommendations of the revised Kyoto
Convention. The determination of the origin of goods originating from developing countries
and eligible for the system of preferences maintained by Kazakhstan is governed by the
Agreement ―On Rules of Origin of Goods, Originating from Developing and Least Developed
Countries of 12 December 2008 concluded by Kazakhstan within the framework of the customs
union being formed with Russian Federation and Belarus.
As of 1 July 2010, customs valuation in Kazakhstan is carried out in accordance with the
Agreement of the customs union ―On Customs Valuation of Goods Transferred through the
Customs Border of the Customs Union‖ of 25 January 2008, the Customs Code of the Customs
union and the Customs Code of RK. The relevant provisions of the Agreement of the Customs
union and the national legislation are based on the provisions of the WTO Agreement on the
Implementation of Article VII of the GATT 1994 and are drafted to fully implement the WTO
Agreement on Customs Valuation.
g. In order to bring into compliance with WTO Agreements on safeguards, anti-dumping,
subsidies, and countervailing measures, the necessary amendments to national legislation on
trade remedy measures have been introduced. In particular, the definitions of ―subsidy‖ and
―domestic industry‖ have been modified, and the meaning of normal value in conducting anti-
dumping investigations has been introduced. Investigation procedures have been brought into
conformity with WTO norms to ensure transparency and mechanisms for consultations with the
concerned parties.
It should be mentioned that at the moment the provisions of the ―Agreement on Application of
Safeguard, Anti-dumping and Countervailing Measures to the Third Countries‖ of 25 January
2008 between the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation
concluded within the framework of the customs union, that entered into force on 1 July 2010
provide the principles for application of trade remedies by the Customs Union Members with
regard to third countries. The provisions of the Agreement comply with the principles of the
WTO Agreements. The provisions of the national laws and regulations apply to the extent they
do not contradict the CU Agreement on Trade Remedies.
h. The new Tax Code was adopted as of December 2008 (entered into force 1 January 2009) to
align government policy to develop priority sectors of the economy with WTO norms. In
addition, current excise tax regime for alcoholic beverages and tobacco products will be unified
to conform to WTO non-discrimination and national regime principles.
i. Lastly, in accordance with a key WTO principle - transparency in developing and
implementing economic and trade policies, Kazakhstan has adopted a new methodology for
calculating fees for services applied to customs escort, import licensing and registration of legal
entities. The new methodology will ensure that these fees reflect the real cost of services
rendered.
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Liberalization of key service sectors
The gradual liberalization of key sectors of the economy is proceeding together with
Kazakhstan‘s bilateral negotiations on access to the services market. For example: Amendments
made to Kazakhstan‘s legislation on licensing and consolidated supervision of financial services
envisage eliminating existing requirements that:
-the total paid-up capital of banks with foreign participation not exceed 50 percent of the
aggregate paid-up capital of all banks in Kazakhstan;
-the total paid-up capital of insurance companies with foreign participation, providing general
and life insurance services shall not exceed 25 and 50 percent of the aggregate paid-up capital of
general and life insurance companies respectively;
-at least seventy percent of employees of a bank shall be residents of Kazakhstan; and at least
one member of the Board of Directors of a bank with foreign participation shall be a resident of
Kazakhstan.
The Program to develop the telecommunications sector provides for creation of a competitive
framework for the telecommunications market. The exclusive license for a national operator
was eliminated on January 1, 2006. The 49% foreign-capital restriction for joint ventures
supplying architectural, urban-planning, construction and engineering services has been
eliminated. Legal entities of Kazakhstan with 100% foreign ownership will be allowed to
provide those services.
Steps taken by the Government to liberalize the energy and transport sectors have also
contributed to Kazakhstan‘s negotiations on access to the services market.
Conclusion
The process of Kazakhstan‘s accession to the WTO represents a set of comprehensive reforms
aimed at building sustainable market economy policies and institutions in the country. One of
the major challenges still being addressed by the Government within the framework of the
multilateral negotiations with WTO member-states is how to balance effective implementation
of Kazakhstan‘s key economic priorities, economic diversification and development of
processing industries with the country‘s commitments arising from WTO accession. We are
carefully reviewing the policies and mechanisms applied by WTO member-states to facilitate
development of ―infant‖ industries, which supply new types of services and produce high value-
added goods, in a WTO-consistent way.
Enhancement of customs administration and support to agricultural development are also among
our key priorities. We fully recognize that we need to pursue further liberalization reforms in a
systematic stage-by-stage manner in order to promote national economic interests. However, we
also need to ensure that Kazakhstan‘s economic and trade policy and regulatory changes are
backed by strong institutional and human capacity.
Working Party deliberations are focused on a draft Working Party report, and Kazakhstan
submitted draft legislation to implement WTO agreements in many key areas, including
customs practices, sanitary and phytosanitary (SPS) regulation, technical barriers to trade
(TBT), and licensing.
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Kazakhstan has completed accession negotiations with 24 WTO members and is close to
completion with 4 more, the United States, European Union, Saudi Arabia and Taiwan.
After careful consideration of pros and cons, Kazakhstan has made an economically prudent
decision to pursue WTO accession through the framework of the Customs Union, together with
Russia and Belarus – neighboring economies which fully comply with Kazakhstan‘s economic
and trade interests. Since WTO accession as a united three-nation-strong market is an
unprecedented case, the members of the Customs Union have agreed to continue its individual
track and coordinate among each other the issues related to the Customs Union.
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n Center for Trade Policy Development under the Ministry of Economic
Development and Trade of the Republic of Kazakhstan
―Center for Trade Policy Development‖, JSC was established in June 30,
2006 to strengthen the negotiations process of Kazakhstan‘s accession to the
WTO
Director General: Mr. Ruslan Sultanov
Tel.: (+7 7172) 74-38-94
Fax: (+7 7272) 74-38-94
e-mail: [email protected]
Web-site: www.ctpd.kz
www.wto.kz
Postal address: 35th Street, 7th
Entrance, The House of Ministries
010000 Astana, Kazakhstan
―Center for Trade Policy Development‖ (100% shares owned by the Government) is affiliated with
the Ministry of Economic Development and Trade.
The main tasks of the Center are:
Conducting analysis of economic implications of Kazakhstan‘s WTO accession;
Providing consulting support in determination of Kazakhstan's position in international trade
negotiations;
Developing recommendations to private and public sectors on improvement of Kazakhstan
legislation in the sphere of international trade taking into account WTO standards;
Providing informational support to the Ministry of Industry and Trade of the Republic of
Kazakhstan on current system of international trade and regulation;
Developing recommendations to the Ministry of Industry and Trade of the Republic of Kazakhstan
on general trade regime taking into account WTO standards;
Developing suggestions and recommendations on creation of general trade regime and free trade
areas with neighboring countries, in particular, within the framework of Eurasian Economic
Community, WTO and other regional associations;
Disseminating information and knowledge concerning current system of international trade,
commercial policy measures and its regulatory principles, as well as improvement of professional
standards for key personnel in private organizations and government bodies.
Employees of the Center have studied at well-known universities, such as Oxford, Cambridge,
Colombia, the London School of Economy and Political Sciences, the World Trade Institute, the
Moscow State University and others.
High proficiency of the team allows the Center qualitatively perform the work connected with
analytical support for negotiations of Kazakhstan‘s accession to the WTO and with consultations of
private companies.
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KAZAKHSTAN‟S POSITION ON THE WTO
AFTER CREATION OF THE CUSTOMS UNION
The Customs Union was formed on January 1, 2010. Its goal was to
strengthen integration among three countries and to facilitate trade and
investment.
Elimination of internal customs borders and harmonization of legislation of the Customs Union
members is already creating additional benefits for the trading partners by insuring free circulation
of goods between the Customs Union countries. Traders and investors get a bigger economic space
and a more attractive market for potential investors.
1. Accession to the WTO Remains a Priority
Accession to the WTO has always been and remains a foreign policy priority for Kazakhstan.
Negotiations on the country‘s WTO accession have been on-going for more than 14 years.
Kazakhstan has also worked to create the Customs Union, which is viewed as a practical realization
of the Kazakh President‘s idea.
It is well known that a unified customs territory is an integral step towards that high level of
economic integration. Neither in negotiations on the WTO, nor in negotiations on the Customs
Union did Kazakhstan ever renounce its interests. The country considers both processes to be
mutually complementary rather than mutually exclusive. Therefore, the processes of Eurasian
integration and WTO accession have always been in parallel.
2. Creating Customs Union Protects Kazakhstan‟s Economic Interests
Kazakhstan‘s decision to create the Customs Union together with Russia and Belarus was based
solely on the country‘s economic interests including the following factors:
Mineral Reserves. Kazakhstan has the sixth largest mineral reserves in the world and is a major
player in the energy markets. A major portion of mineral and energy resources produced in
Kazakhstan is exported to external markets. One of the main tasks of the Government of Kazakhstan
is development of nonextractive sectors and diversification of the economy and export promotion of
highly marketable products. A unified customs tariff within the Customs Union would expand the
regional market and promote Kazakhstan‘s exports. Future customs tariff policy within the Customs
Union will allow the import of raw materials and equipment under low custom duties within the
development of investment projects. Establishment of the Customs Union would entail creation of a
unified commodity market with a total GDP of about $2 trillion (2008) and a population of 170
million people, as well as create preferential conditions within the Customs Union. Such a large
market within a unified customs territory would make Kazakhstan even more attractive for foreign
investors who have considered Kazakhstan as one of the most attractive markets in our part of the
world.
Geopolitical Realities. Kazakhstan is the largest land-locked country in the world and much of its
foreign trade depends on the routes that go through the territories of neighboring states. Membership
in the Customs Union will provide Kazakhstan‘s businesses with domestic (non-discriminatory)
transit tariffs, taking into consideration that almost all the trading relations, particularly with the
European Union, are implemented through the transit of the territory of Russia.
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Global Financial Crisis. The crisis has thinned down the flow of FDIs, decreased trade turnover,
led to the introduction of protectionist mechanisms by some trade partners, and seriously damaged
the economies of neighboring states. This harsh reality, therefore, demanded a more active and joint
approach to further integrate and modernize the regional economy. Creation of the Customs Union
will allow for more efficient use of the limited financial resources due to the global economic crisis.
It will also provide a rationale for companies to use available resources to increase their production
capacity.
Accession to the Customs Union. This will provide sizable benefits for Kazakhstan and serves its
long-term economic priorities. The decision was based on the need to meet Kazakhstan‘s national
economic interests including:
Unimpeded access to global markets
Expanding trade with large neighboring economies, such as Russia and China
Accelerated economic diversification by moving towards service and technology
based economy.
Therefore, any speculations suggesting political motivation behind the decision are baseless.
3. WTO and Customs Union Negotiations Moved in Parallel
Negotiations on Kazakhstan‘s accession to the WTO and efforts to join the Customs Union were
moving in parallel. The idea of establishing a single customs territory was initiated earlier and had
been moving at a much better pace, which was in full compliance with Kazakhstan‘s economic
interests. The process of harmonizing tariffs within the creation of the Customs Union demanded
flexibility from every member and a transition period was introduced for some major commodities
sensitive for Kazakhstan. It is also important to understand that the pace for creating the Customs
Union has been, to a large extent, dependent on the political will from the Governments of the three
states. Therefore, promotion of trade and economic cooperation with the neighboring countries has
become the most important priority.
4. Kazakhstan‟s Decision to Join Customs Union Was Not Sudden
Speculations about Kazakhstan‘s ―unexpected‖ and ―sudden‖ decision to join the Customs Union
with Russia and Belarus are groundless. Kazakhstan‘s Special Representative for WTO accession
negotiations, Ms. Zhanar Aitzhanova, regularly briefed American counterparts on this issue, as she
was also directly involved in negotiations on the Customs Union. Moreover, in February 2009,
Kazakhstan at a very senior level informed U.S. Ambassador to Kazakhstan Richard E. Hoagland
that the country, together with Russia and Belarus, would soon announce its decision to create the
Customs Union. Astana noticed certain constructive reaction on behalf of Washington, however, our
American partners seemingly failed to conceive, in all its depth, our signal toward a significant
growth of dynamism in the process of creating the Customs Union.
5. Expansion of Global and Regional Trade
The Central Asian Trade and Investment Framework Agreement (TIFA) provides a useful
background for a regular dialogue between U.S. and Kazakhstan trade authorities on the issues of
mutual interest. We share the U.S. vision that the expansion of global trade should proceed through
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creating opportunities for regional trade, and Kazakhstan stands ready to work with the United
States on the implementation of this vision.
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ASTANA ECONOMIC FORUM
The Astana Economic Forum has emerged as a platform for
prominent scholars, economists, senior government officials,
corporate chieftains and civil society leaders to discuss global
challenges and prospects for development in the run up to the G-
20 summit.
On May 3-4, 2011, the 4th Astana Economic Forum was attended by more than 3,500
participants from 75 countries, including Nobel laureates James Mirrlees, Robert
Mundell, John Nash, Yisrael Aumann, Finn Kydland and Roger Kornberg. Also
attending were leaders of the UN World Tourism Organization, the UN Economic and
Social Commission for Asia and the Pacific (UNESCAP), the Madrid Club and the
UN Food and Agriculture Organization (UNFAO).
Other co-organizers: the World Islamic Economic Forum, United Nations Economic
Commission for Europe, Islamic Development Bank and the Reinventing Bretton
Woods Committee. Media partners were International Herald Tribune, Euronews and
Economist. The Forum received wide coverage by 100 foreign and 350 local
journalists.
They discussed reforming the international monetary system, food security and
renewable energy, better communication between the government and private sectors
and regional economic integration, green growth, tourism, small and medium sized
entrepreneurship, multinational corporations.
In his welcoming remarks, Kazakh President Nursultan Nazarbayev talked about the
lessons learned from the global financial crisis, the current imbalance in world trade
and the state of the international monetary system.
―The existing monetary system does not adhere to the principles of legality and
democracy. It mitigates the growth, distorts macroeconomic principles and prevents
us from resolving global issues. To correct that, one needs to take fundamental
actions, which have never been taken before,‖ he said.
He highlighted the need for a new reserve currency: ―The defects of the international
monetary system are now making some countries take practical steps to use
alternative currencies. For instance, the Bolivarian Alliance member states are
considering transactions using a notional unit called Sucre. The BRICS nations signed
a memorandum to use reserve currencies for mutual financing.‖
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Nobel Laureate Robert Mundell indicated that the IMF needs to determine two
currency zones and make an ―anchor‖ for a stable currency. The professor advised the
group to pay special attention to the Yuan and generally to the Chinese economy,
because today‘s global currency-related issues depend on financial stability of the
most populous nation.
Participants attended many side events organized by local business alliances and the
government authorities. These included the Innovative Congress and Eurasian
Business Congress organized by the National Innovation Fund and Atameken Union
National Economic Chamber hosted by the mayor‘s office.
By tradition, the Forum was concluded with the issuance of an open letter to the
leaders of the G-20 member states called ―The Astana Consensus.‖ It will be released
shortly. Its key messages are based on recommendations about how to reform the
world economy, develop the global currency, enhance the monetary system, reform
international financial institutions, support international investments and trade,
improve food security and develop the ―green economy.‖
It was also decided to set up Astana club of the Nobel Prize laureates. Its goal would
be to encourage their meeting in Astana. Currently the Club includes seven Nobel
laureates and its membership is set to expand.
The 5th Astana Economic Forum will be held in Astana on May 23, 2012.
Kazakhstan is turning into a popular venue for international discourse on world
economic matters, as its economy was among the first to recover from the world
financial crisis and is predicted to grow by 6-7% this year.
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EXPECTATIONS ABOUT KAZAKHSTAN‟S ECONOMY:
OUTLOOK BY INDEPENDENT EXPERTS
The following is based on Q1 and Q2, 2001 “Kazakhstan and Central Asia Business Forecast” by Business Monitor International, Ltd (BMI)
Business Environment
Kazakhstan was the world‘s top business reformer over the course of the last year according
to the World Bank‘s 2011 Doing Business Report, an accolade which is expected to help facilitate
higher domestic and foreign investment. Kazakhstan rose 15 places up the world rankings in 2011,
coming in at 59th out of 183 countries up from 74th in 2010. As such, Kazakh President Nursultan
Nazarbayev‘s pledge last year to develop Kazakhstan‘s business environment to become one of the
50 best in the world by 2020 now seems easily achievable.
Kazakhstan already enjoyed a relatively robust and transparent business environment,
particularly compared with other CIS countries. The World Bank‘s recent recognition of the
country‘s ongoing efforts to liberalize and reform the economy will help cement the country‘s
position at the forefront of frontier markets.
Kazakhstan made specific strides toward making it easier to start a business, with the country
rising 38 places in the world rankings. The cost (as % of per capita income) and minimum capital
required to start a new business are now significantly lower than the OECD and emerging European
regional averages. Furthermore, the government helped realize improvements in the levels of
protection awarded to investors, with Kazakhstan scoring particularly strongly on the rights of
shareholders to sue.
Tax Burden Easing
The government has acted to considerably reduce the tax burden on corporations operating in
Kazakhstan over the past few years. The corporate income tax rate was cut to 20.0% in 2009 from
30.0%. Plans to further reduce the rate to 17.5% in 2010 and 15.0% in 2011 have been postponed
for now, tbut he government remains committed to easing the overall tax burden in order to
stimulate new business ventures. This pledge was exemplified by the government‘s decision not to
raise mineral resource rents this year. The only business reform category in which Kazakhstan
performed worse in this year relative to 2009 was access to credit. However, BMI believes this is the
temporary result of the pressures facing the country‘s banking sector. With asset quality improving
in recent months and government restructuring of troubled banks nearing completion, firms will
begin to find access to credit more readily going forward.
Development Of Non-Hydrocarbon
Sectors
BMI View
The Kazakh government‘s drive to diversify the non-oil sector and invest in developing strategic
industries, as well as the national infrastructure, helps the long-term outlook for the economy. The
growing integration of Kazakhstan into global markets will help to reduce the impact of external
shocks and put the economy on a more sustainable growth path.
According to BMI, reforms being implemented by the government in Kazakhstan will not
only serve to improve the competitiveness of domestic and foreign firms already operating in the
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country, but will also act to draw in higher levels of foreign direct investment over the coming years.
Kazakhstan has already enjoyed large inflows of foreign capital and expertise into its oil and gas
sectors. BMI‘s Oil & Gas team calculates that exports of oil and gas products alone accounted for
almost 40% of GDP in 2008 and this industry is expected to remain the main economic sector in
Kazakhstan for some time to come.
However, as a result of the volatility in global oil prices, the Kazakh government has been
stressing the importance of developing other sectors of the economy, namely mining, metallurgy,
retail and infrastructure, in order to reduce the economy‘s dependence on energy exports. Reports
suggest that some funding for investments into these sectors will come from the country‘s Sovereign
Wealth Fund.Foreign direct investment will likely make up the lion‘s share. In particular, BMI
believes the mining and infrastructure sectors have huge potential going forward. Indeed, while total
productive activities from mining and quarrying accounted for just under 20% of total GDP in
H110, according to the Kazakh Statistics Agency, reports suggest Kazakhstan is home to huge
deposits of gold, uranium and copper that have yet to be developed and foreign mining giants such
as Rio Tinto are eager to develop this industry further.
Despite notching a stellar 9.3% average annual rate of economic growth over the course of
2000-2008, the severity of 2009‘s recession, combined with a protracted period of deleveraging,
BMI forecasts annual growth to average 7.5% through to 2020. Coming from a higher base, and
investing heavily in developing the national infrastructure and non-oil sectors, Kazakhstan will
further consolidate its position as the regional powerhouse in Central Asia over the long term.
Moreover, for the less-developed economies in Central Asia, this will mean more employment
opportunities, cross-border investments and demand for primary and processed exports for Kazakh
industries.
Since the government is likely to continue working towards reducing the economy‘s
dependence on oil over the long term BMI expects to see further diversification away from the oil
sector. Key industries are likely to include retail, manufacturing, construction and finance. As a
result of this diversification drive, investment in fixed capital will continue to buoy economic
growth over the long term. Moreover, in much the same way that increased credit availability will
spur consumer spending, a broader and more sophisticated array of financial products are expected
to come to the market. It will facilitate investment (particularly with regard to hedging risks,
leveraging and gaining exposure to new markets) and business transactions.
Kazakhstan‘s ever-growing prominence in Central Asia will also facilitate investment into
the wider region. Indeed, the ongoing development of the country‘s physical and financial
infrastructure will attract more foreign investors wanting to increase their exposure to frontier
markets such as Tajikistan and Kyrgyzstan without having to base operations in these countries.
Similarly, the economic development of these countries (as well as Turkmenistan and Uzbekistan)
will see demand for imported capital grow, allowing Kazakhstan to become an export platform to
these countries.
Driving Forces of Growth
The major drivers of growth this year are set to be industrial production (IP) and export
volumes, which will be well supported by a sustained pick-up in global trade conditions and
elevated commodity prices. Indeed, global oil prices, in particular, have picked up strongly on
account of ongoing political ructions in the Middle East and North Africa region and, while
commodity prices are expected to come off the boil slightly in the second half of the year, they are
likely to remain well supported by high levels of global liquidity and improving demand conditions.
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Similarly, BMI expects IP volumes to post stronger growth this year. Owing to improving domestic
demand conditions and efforts by the government to speed up the development of non-hydrocarbon
sectors, production levels are expected to enjoy a more robust pick-up in 2011 and 2012.
While 2010 growth exceeded BMI‘s original forecast of 6.0%, its hold to their view that
growth in 2011 will come in at 6.3%. We see Kazakhstan‘s economic upturn continuing over the
medium term, with growth reaching 7.5% by 2013. This dynamic will be well supported by higher
oil prices, increased export volumes, a rapidly improving business environment and the
government‘s economic diversification programme.
In the longer term with population forecast to reach around 17.5mn by 2020 and GDP per
capita reaching US$28,367, the consumer will become instrumental in driving growth dynamics
over the long term. The opportunities available for retailers to exploit are likely to see foreign retail
operators from Russia, and potentially China, starting to build up a market presence in Kazakhstan.
Moreover, with the government keen to develop its banking and financial sectors, BMI‘s experts
expect to see an increase in credit availability for the consumer, particularly credit cards and
overdraft facilities, which will extend to the poorer sectors of the retail market and thus allow for an
expansion in consumption possibilities for Kazakh households.
As a result of these dynamics, consumer spending is expected to contribute around one-third
of economic growth.
Although domestic demand will increasingly become the driving force of growth, oil and gas
will nonetheless remain an important export earner, helping to bolster domestic demand. Indeed, it
will be the recycling of energy export revenues to the non-oil sectors that will be key to broadening
the economy. Moreover, although BMI believes that Astana will remain reliant on Moscow to
purchase its energy output over the medium term, Kazakhstan‘s growing economic and political
clout may allow it to expand export routes away from Russia
further down the line. In this respect, we believe Kazakhstan is the most likely of the Central Asian
states to supply energy to European markets over the long term. While BMI does not believe this
will mean a shift in Kazakhstan‘s foreign policy agenda towards euro-Atlantic institutions, new
trade relations are expected to emerge, with the EU likely to take a greater share of Kazakh exports.
FDI will support strong growth trajectory. The government‘s economic diversification
strategy, and ongoing improvements to the country‘s business environment are likely to attract
further foreign direct investment flows into the country over the coming years. These two factors are
expected to help support increased foreign direct investment flows into the economy over the long
run, as Kazakhstan‘s position at the forefront of frontier markets is cemented further. As such, BMI
sees economic growth continuing to pick up over the coming years rising to 7.8% by 2015 and 8.6%
by 2020.
Following the successful restructuring of Kazakhstan‘s most troubled banks Kazakh banking
sector is now on the slow road to recovery, with overall confidence and stability set to continue
improving over the coming quarters. Data released by the National Bank of Kazakhstan confirm this
view that conditions in the banking sector are tentatively improving, with loan growth picking up to
4.9% y-o-y in October from a trough of - 1.7% back in February.
In Search Of International Finance
Kazakhstan is seeking greater access to international capital markets this year on both the
sovereign and corporate levels – a process which will be well supported by ongoing development of
the country‘s Islamic financial industry. Given the country‘s long-term economic potential and
rapidly improving business environment credentials, BMI believes financing will come relatively
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easily for Kazakhstan, and will ultimately help bolster the country‘s long-term economic
diversification and investment strategy.
Kazakhstan is on course to boost its utilisation of international capital markets this year at
both the sovereign and the corporate level. This process will be well supported by ongoing
development and growth of the country‘s Islamic banking sector, which will help to boost the
potential for greater sukuk issuance. Ultimately, we believe that these dynamics should aid the
government in its long-term strategy of boosting foreign investment and diversifying the non-
hydrocarbon sector of the economy. BMI noticed that Kazakhstan‘s sovereign wealth fund, Samruk-
Kazyna, (which currently holds in the region of US$70bn worth of assets) is looking to tap both
local and international markets for a combined US$1bn in funds this year, which will be used to
finance a raft of industrial and financial investment projects. Making a reference to the Samruk-
Kazyna‘s top-management BMI expects that the national welfare fund will also draw on a further
US$2bn worth of funds from a bilateral loan package agreed with China back in 2009.
At the same time, according to government officials, in line with the ongoing development
and expansion of the Islamic finance industry in Kazakhstan, some corporates are expected to begin
issuing Islamic sukuk bonds by the middle of this year. Under current legislation, only Samruk-
Kazyna and Islamic banks in Kazakhstan can issue sukuk bonds. However, a new law that would
allow resident companies with a firm credit rating to engage in sukuk financing is currently being
discussed in parliament. If passed, this new legislation will give corporations (and the government
albeit further down the line) increased scope for attracting foreign financing, in our view, in
particular, from regions such as the Gulf Cooperation Council. To be sure, owing to the country‘s
long-term growth potential and the country‘s rapidly improving business environment, external
financing should come relatively easily, as evidenced by the country‘s already massive foreign
direct investment inflows of recent years.
If you are interested to learn more about “Kazakhstan and Central Asia Business Forecast Report” or any Country/Industry reports by BMI please contact Matthew Thompson, Business Development Manager, “Business Monitor International” T:+44 (0)20 7246 1433 M:+44 (0)7983 473 767
Email: [email protected])
Business Monitor International - DISCLAIMER
All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of
publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the
publication. All information is provided without warranty, and Business Monitor International makes no representation of warranty of any kind as to
the accuracy or completeness of any information hereto contained.
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KAZAKHSTAN'S FOREIGN POLICY:
MAIN ACHIEVEMENTS AND NEW GOALS
BRIEF OVERVIEW
Many American and European experts believe that Kazakhstan has done a remarkable job
establishing an independent foreign policy in the 20 years since it gained independence from the
Soviet Union.
Kazakhstan's foreign policy is based on the understanding that it is a large country with roots
in both Europe and Asia; its interests are many. . Kazakhstan‘s location has helped define its foreign
policy priorities and diplomatic activity. Kazakh President Nursultan Nazarbayev believes that by
enacting strong political and economic reforms, Kazakhstan will be in a better position to build its
relationships with other nations.Kazakhstan is an impartial nation – one that has worked hard to
reform its military, political and economic policies as it advances toward a full
democracyinternational and regional events. Its foreign policy underscores the nation‘s commitment
to create strong long-lasting alliances and partnerships. One of Kazakhstan most important decisions
since gaining independence was to gain the status of a non-nuclear state and to pursue the policy of
non-proliferation. Kazakhstan set an example - demonstrating its desire for peace, internal stability
and sustainable economic and political development.
Kazakhstan has good relationships with the United States, Russia, and China as well as
inCentral Asia and in many other European and Asian countries. With Russia, Kazakhstan has
longstanding historical ties and a vast shared border.. Kazakhstan also shares a border with China.
China's pursuit of energy security and new markets has strengthened its ties to Kazakhstan and its
economy. That will only continue.
Kazakhstan also has strong alliances with its Central Asian neighbors. Globalization is
gaining momentum and creating new regional alliances in every corner of the world. Many countries
have realized, that their national goals can be realized through regional cooperation. Since its
independence, Kazakhstan has worked to create regional economical alliances including with the
Commonweath of Independent States, Eurasian Economic Association, Central Asian Economic
Association and the newly founded Shanghai Cooperation Organization.
By strengthening its relationships with its neighbours, Kazakhstan has built a ―security belt‖
around its borders. And it continues to build alliances with other states such as India, Iran, Japan,
South Korea, Turkey= and numerous European states.
Extending its influence beyond Central Asia, Kazakhstan has worked to develop confidence
building measures throughout the region –in 2000 the idea was adopted by the Conference on
Interaction and Confidence-Building Measures in Asia (CICA). CICA demonstrated that
Kazakhstan is part of a larger Asian universe; its presidency of the OSCE in 2010 underscores its
ties to the European world. In addition, Kazakhstan has relationships with several global and
regional organizations that promote peace and economic prosperity including the Collective
Security Treaty Organization (CSTO), NATO's "Partnership for Peace" program (PFP), the
European Union (EU), the Shanghai Cooperation Organization (SCO), the Organization for Security
and Cooperation in Europe (OSCE), the Economic Cooperation Organization (ECO), the United
Nations, and the Organization on Islamic Conference (OIC).
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KAZAKHSTAN-U.S. STRATEGIC PARTNERSHIP
Kazakhstan is one of the most
progressive nations in the region and since its
independence has proven to be the most
reliable U.S. partner in Central Asia. The two
countries established their ―strategic
partnership‖ in 2006. Astana and
Washington are time-tested partners who
have worked together on issues such as non-
proliferation of nuclear weapons, the fight
against terrorism, energy reform and
democracy.
Kazakhstan and the United States
have entered a new stage in their relationship
. President Barack Obama‘s phone
conversation with President Nursultan
Nazarbayev soon after the 2008 U.S.
elections instilled confidence that, under the
new Administration, relations between the countries would continue to grow. The two leaders
discussed further cooperation on important international issues such as non-proliferation, the fight
against terrorism and stabilization of Afghanistan.
Later, in April, 2009, U.S. Vice President Joseph Biden called President Nazarbayev to
express his gratitude for Kazakhstan's efforts to promote regional cooperation. He assured
Nazarbayev that the U.S. would support Kazakhstan‘s OSCE Chairmanship in 2010. He
alsocommended Kazakhstan‗s contribution to nuclear non-proliferation and affirmed President
Obama‘s commitment to nuclear non-proliferation throughout the world. President Nazarbayev and
Vice President Biden also discussed prospects for the development of Kazakhstan-US relations.
They agreed to look for new ways to expand bilateral cooperation with a focus on the economy.
After President Obama‘s historic address in Cairo on June 4, 2009, President Nazarbayev
commended Obama‘s vision for the Islamic world. President Nazarbayev stressed that Obama's
remarks demonstrated his commitment to a new beginning with Muslim world. "In his speech in
Cairo, President Obama demonstrated his willingness to build understanding and rapport with
Muslim nations. I am encouraged by this constructive engagement and Kazakhstan looks to
continue its efforts on strengthening political, economic, and cultural cooperation with the United
States of America‖, - President Nazarbayev said then.
In 2010, Kazakhstan and the United States launched the ―Annual Bilateral Consultations‖.
The first round of talks was held in Washington, D.C., on March 8-10. The two working groups
chaired by Kazakhstan‘s Deputy Foreign Minister Kairat Umarov and U.S. Assistant Secretary of
State for South and Central Asian Affairs Robert Blake reviewed the state of bilateral cooperation.
They covered a full range of issues: political cooperation, security, including counter-narcotics and
counter-terrorism, Afghanistan, non-proliferation, OSCE, human dimension, including democratic
reform, rule of law, human rights, and NGOs. They also discussed economic development issues,
including energy cooperation, trade and investment, health, and education. The working groups
agreed to continue their work in accordance with the Action Plan adopted at the first round of the
Kazakhstan – U.S. Annual Bilateral Consultations.
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On March 24-25, 2011, Asistant Secretary Blake led an interagency delegation of
representatives from the departments of State, Energy and Defense as well as the National Security
Council to Astana to hold the second round of the Kazakhstan-US Annual Bilateral Consultations
(ABC). The discussions covered a range of bilateral initiatives including cooperation in
Afghanistan, nuclear non-proliferation, energy, trade and investment, science and technology, and
the advancement of democratic and human rights reforms. Speaking afterward, Blake said: ―These
discussions showed that the United States relationship with Kazakhstan is perhaps the deepest and
broadest in Central Asia, and it shows the progress that we‘ve made in our relations over the last 20
years.‖
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2010 PRESIDENT NAZARBAYEV‟S VISIT TO THE U.S.
On April 10-13, 2010 President
Nazarbayev visited the U.S.to participate in the
Nuclear Security Summit and to meet with
President Obama and representatives of his
administration. The visit opened a new stage in
the relationship between Kazakhstan and the U.S..
Leaders of both countries had a
comprehensive exchange on global security,
including non-proliferation, the unstable situation
in Kyrgyzstan, stabilization in Afghanistan,
democratic development, economic ties and
investment opportunities, energy partnership and
Kazakhstan‘s chairmanship of the OSCE.
The leaders also reiterated their commitment to strengthening bilateral cooperation.
According to the Special Assistant to the President/National Security Council Senior
Director for Russian and Eurasian Affairs Michael McFaul, President Obama praised President
Nazarbayev as ―one of the model leaders in the world. We could not have this summit without his
presence.‖ President Nazarbayev also met with U.S. Secretary of Energy Steven Chu, heads of
several American companies, leaders of Amercan Jewish organizations. In addition, hereceived the
EastWest Institute Peace and Preventive Diplomacy Award for championing diplomacy and
promoting interfaith dialogueacross the globe. .
Beyond the agreement struck between Kazakhstan and the U.S. on Cooperation in Science
and Technology, agreements were met between Kazakhstan‘s National Railway Company and
General Electric on Transportation for the Commonwealth of Independent States Shunter
Locomotive Program and between Air Astana company and the Pilot Training College in Florida to
train an additional 24 pilots by the end of 2010.
After their meeting the two Presidents issued the Joint Statement on some of the most
important topics they discussed. Among them are the following major pririties.
Nuclear Security and Non-Proliferation: The Presidents underlined the 15-year track
record of close cooperation between Kazakhstan and the United States and success in reducing
nuclear threats in Kazakhstan and around the world. They share the vision of a world without
nuclear weapons. The U.S. appreciates the leadership of President Nazarbayev and the contribution
of Kazakhstan to nuclear disarmament and non-proliferation. The leaders hailed the successful
implementation of the Cooperative Threat Reduction program and other efforts such as the
decommissioning of the BN-350 nuclear reactor at Aktau and the construction of a central reference
laboratory in AlmatyProgress is also being made atthe research reactor in Alatau to eliminate the
highly enriched uranium stored there, as called for in the Nuclear Security Summit Communiquй.
President Obama thanked President Nazarbayev for offering to host an International Nuclear
Fuel Bank and said he supports Kazakhstan's e‘forts to become member of the IAEA Board of
Governors.
Kazakhstan is eager to speed up the mutually agreed work at the former nuclear test site in
support of President Obama‘s speech in Prague, which called for accelerated action to secure
vulnerable nuclear materials.
Afghanistan: The Presidents highlighted their shared understanding of the threats and
challenges in Afghanistan.
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President Obama expressed appreciation for Kazakhstan‘s humanitarian, economic and
educational support of the Afghan people, including the decision Kazakhstan‘s decision to
contribute $50 million dollars to a new program to educate Afghans at Kazakh universities. The
Presidents discussed ways to enhance Kazakhstan‘s critical role in the Northern Distribution
Network and welcomed a new bilateral agreement enabling U.S. cargo flights across Kazakhstan.
Investment and Trade: Recognizing Kazakhstan‘s achievements in social and economic
development the United States will continue to support the development of a diversified economy in
Kazakhstan through the Program for Economic Development and the Kazakhstan-U.S. Public
Private Economic Partnership Initiative.
The Presidents positively assessed the current state of bilateral economic relations. They
agreed to redouble efforts to complete Kazakhstan‘s WTO accession and support the work of the
Central Asia Trade and Investment Framework Agreement.
The Presidents reconfirmed the importance of the long-term energy partnership between the
two countries. The United States welcomed Kazakhstan‘s emergence as the top global uranium
producer as an important development for diversification of global energy supply.
The United States and Kazakhstan expressed their intention to enhance cooperation on
nuclear energy and development of alternative energy resources. The leaders hailed the signing of
the bilateral Science and Technology Agreement, which will increase scientific cooperation and
exchanges.
The parties will encourage large-scale bilateral commercial cooperation in agriculture that
can make a significant contribution to the U.S. and UN initiatives on global food security.
U.S.-Kazakhstan Bilateral Consultation: The Presidents welcomed the first session of
annual bilateral consultations on March 8-9, 2010, in Washington D.C. The purpose of the new
forum is to advance all the dimensions of the bilateral relationship, including security and
nonproliferation cooperation, universal values and our economic and energy partnership.
Democracy: The United States encouraged Kazakhstan to implement its forward looking
2009-2012 National Human Rights Action Plan and 2010-2020 Legal Concept. The United States
will continue to support the Kazakhstan‘sefforts to liberalize its media and democratize its political
system, including through legal reform.
Enhancing Contacts between Our Societies: President Obama and President Nazarbayev
underscored the importance of strengthening relationships between American and Kazakh civil
societies, including NGOs, religious groups and educational institutions. Nazarbayev welcomed
President Obama‘s Cairo Speech and outreach to the Muslim world. The Presidents emphasized the
important role of religious freedom and tolerance in developing stable societies and declared their
support of Kazakhstan‘s relevant efforts as 2010 OSCE Chairman and 2011 Chairman of the
Council of Foreign Ministers of the Organization of the Islamic Conference.
Organization for Security and Cooperation in Europe (OSCE): President Obama
highlighted the historic significance of Kazakhstan‘s OSCE Chairmanship _ the first time a former
republic of the Soviet Union has chaired the OSCE. The Presidents discussed Kazakhstan‘s OSCE
Chairmanship and its proposal to host an OSCE Summit. They noted positively Kazakhstan‘s
initiative to promote greater OSCE engagement in Afghanistan, to hold a Review Conference in
Kazakhstan on Implementation of Commitments in the Human Dimension, and to advance the
Corfu process. The United States and Kazakhstan agreed to work on developing a substantive
agenda for an OSCE Summit.
President Nursultan Nazarbayev invited President Barack Obama to visit Kazakhstan at his
convenience. The invitation was received with appreciation.
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In November 2010, President Nazarbayev met with President Obama during the NATO
Summit in Lisbon to discuss a number of international security issues.
KAZAKHSTAN AND NONPROLIFERATION
Nonproliferation has been the cornerstone of relations between two countries that traveled a
long way from newly born cooperation to mature strategic partnership between Kazakhstan and the
United States.
Kazakhstan‘s adherence to building peaceful world resulted in open and constructive
Kazakh-US cooperation in nuclear nonproliferation based on the Nunn-Lugar Initiative
―Cooperative Threat Reduction Program‖.
2011 is the year of celebrating the 20th anniversary of the closure of Semipalatinsk nuclear
testing ground; In August 1991, President Nazarbayev signed a historic decree to close the
Semipalatinsk nuclear test site. Kazakhstan dismantled its infrastructure, and signed agreements
concerning nuclear armaments. Now Kazakhstan is implementing the proposals made by the
President Nazarbayev during the Disarmament Conference to include Kazakhstan‘s seismic stations
in the International Monitoring System.
On Dec. 29 1991, the leaders of Belarus, Kazakhstan, Russia and Ukraine signed the Almaty
Declaration in which they agreed on nuclear control mechanisms for the former Soviet Union; they
affirmed their international obligations to strategic arms reduction.
On May 23 1992 in Lisbon, the representatives of Kazakhstan, Belarus, Ukraine, Russia and
the U.S. signed a five-party Protocol to the Strategic Arms Reduction Treaty. At the same time
Belarus, Ukraine and Kazakhstan - as the states possessing nuclear weapons - committed to the
Non-Proliferation Treaty.
In accordance with the Lisbon Protocol, Kazakhstan, Belarus and Ukraine, as successor
states to the USSR in terms of the Strategic Arms Reduction Treaty, have agreed to participate,
along with Russia and the U.S., in the joint Commission on observance and inspection. The nations
also agreed to the limits and restrictions specified by the Treaty. Kazakhstan ratified the Treaty and
the Lisbon Protocol on July 2, 1992. In 1994,Strategic Arms Reduction Treaty paved the way to
disarmament and the elimination of more than 9,000 nuclear warheads.
Kazakhstan was the first among the participants of the Lisbon Protocol to implement
provisions related to the removal of nuclear warheads. On April 21, 1996, Kazakhstan completed the
removal of 1416 nuclear warheads . On May 30, 1995, the last nuclear test warhead- located in a
gallery on the Semipalatinsk test site - was destroyed. Kazakhstan had gotten rid of its nuclear
inheritance.
During the Soviet era, Kazakhstan was the site of the world‘s fourth largest nuclear arsenal
with more than 1000 deadlyweapons. . Fortunately, President Nazarbayev ordered the dismantling
and removal of Kazakhstan‘s entire nuclear weapons system. In 1994, Kazakhstan transferred more
than a half-ton of weapons-grade uranium to the U.S. In 1995, Kazakhstan removed its last nuclear
warhead and, with U.S. assistance, completed the sealing of 181 nuclear test tunnels in May 2000.
Kazakhstan signed the START Treaty (1992), the Nuclear Non-Proliferation Treaty (1993), the
Chemical Weapons Convention, and the Comprehensive Test Ban Treaty (2001).
On March, 21, 2009, the Treaty on Nuclear Weapon Free Zone in Central Asia (signed on
September, 8, 2006 in Semei, Kazakhstan) took effect. . Kazakhstan believes the Treaty will
contribute to global non-proliferation and promote regional and international security. The new de-
nuclearized zone in Central Asia has a number of unique features. First, it includes Kazakhstan,
which in the past possessed the forth largest nuclear arsenal. Second, for the first time, the
denuclearized zone is in Northern hemisphere. Third, the Treaty brings together all five Central
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Asian countries. And finally, the zone was created in a region that borders on two nuclear states.
The Protocol on negative security assurances is an integral part of the Treaty. Under the Protocol,
the nuclear weapon states pledge not to use or threaten to use nuclear weapons against any other
member states.
On June 18, 2009, more than 25,000 Kazakhs, local dignitaries and world media gathered in
Semey city to celebrate the 20th anniversary of Kazakhstan's decision to end nuclear tests at the
Semipalatinsk Test Site. The meeting was held in Semey, where President Nazarbayev appealed to
the international community to support the nation‘s efforts to promote peace.. In his speech,
President Nazarbayev credited the Kazakh people for helping the ending nuclear testing.He said
then: ‖Starting from the first days of the country‘s independence, Kazakhstan did not leave its
citizens alone with their problems. The work on social rehabilitation of the population and the
territories suffered the harm of the nuclear tests is being constantly carried out. For these purposes
the state utilized nearly KZT 34 billion (approximately $215 million)‖.
In December 2009, the UN General Assembly unanimously accepted a resolution by
Kazakhstan proclaiming Aug. 29 - the day when in 1991 President Nazarbayev signed a decree on
the closure of Semipalatinsk Test Site - as the ‗International Day against Nuclear Tests‘.
Recognizing the negative impact of nuclear testing on human life and the environment, as well as
the importance of of achieving a nuclear-weapon-free world, the Resolution was designed to
commemorate an importantdate in Kazakhstan‘s history.
The international community has fully appreciated Kazakhstan‘s contribution to this nuclear
disarmament programm.
Paying a visit to Kazakhstan in April 2010, U.N. Secretary General Ban Kim-moon said, ―I
highly commend the extraordinary leadership of president Nazarbayev of Kazakhstan, who
courageously closed this nuclear test site and initiated the nuclear weapon-free zone in Central Asia.
That‘s a big milestone‖.
During the Nuclear Security Summit in Washington, D.C., in April, 2010, Obama praised
President Nazarbayev "as really one of the model leaders in the world on nonproliferation and
nuclear-safety issues". President Obama and other leaders also heralded President Nazarbayev's
proposal to establish an International Nuclear Fuel Bank in Kazakhstan. President Nazarbayev
credited President Obama‘s anti-nuclear initiatives and achievements including the Global Nuclear
Security Summit, signing the New START Treaty with Russia andadoption of the new U.S. nuclear
posture review,.
In November 2010, Kazakhstan joined with the U.S. and other nations to provide secure
long-term storage for more than 10 metric tons of highly enriched uranium and three metric tons of
weapons-grade plutonium in Kazakhstan – enough material to make 775 nuclear weapons. Under
the operation, 12 spent fuel shipments were safely and successfully secured, the largest and most
complex nuclear transport campaign ever. The operation is an example of the international
cooperation envisioned by Presidents Nazarbayev and Obama at the April 2010 Nuclear Security
Summit in Washington, D.C.
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KAZAKHSTAN‟S OSCE CHAIRMANSHIP IN 2010
Kazakhstan began its chairmanship of the Organization for
Security and Cooperation in Europe (OSCE) on Jan. 1, 2010. It
was a historic achievement given that Kazakhstan was the first
former Soviet Union Republic to lead the OSCE. The primary
focus of the OSCE, with its 56 member states, is to promote
economic and security cooperation. Kazakhstan took its
responsibility very seriously; itworked with its fellow member states to build on the progress
achieved by former chairs and to develop viable solutions to pressing challenges.
Kazakhstan set out on a challenging and exciting journey as Chairman of the OSCE. . Kazakhstan
was committed to enhancing the Organization‘s credibility and efficiency. The first POLITICAL
VISION AND PRINCIPLES were formulated by President Nazarbayev in his video address to the
OSCE Permanent Council on the occasion of Kazakhstan‘s assumption of its Chairmanship in the
OSCE on January 14, 2010.
―Kazakhstan is assuming the extremely important mission of the Chairmanship of the Organization
for Security and Co-operation in Europe (OSCE) with a sense o great responsibility. Our country
will embark on its Chairmanship during one of the most complicated periods in modern history.
Because of the global financial and economic crisis, tectonic shifts are taking place in the global
order, and this process is still far from completion,‖ Nazarbayev said. ―The erosion of the regime of
non-proliferation of weapons of mass destruction, terrorism, humanitarian and ecological disasters,
famine, poverty, epidemics, depletion of energy resources, conflicts based on interethnic and
interreligious differences—such is a far from complete list of the challenges faced by modern
civilization that call for maximum efforts by multilateral institutions of high standing like the
OSCE.‖
The motto of Kazakhstan‘s Chairmanship was four Ts, namely, "trust", ―tradition‖, ―transparency‖
and ―tolerance‖. The first T refers to the trust. The second one refers to Kazakhstan‘s commitment to
the fundamental principles and values of the OSCE. The third one conveys maximum openness and
transparency in international relations, free from ―double standards‖ and ―dividing lines‖, as well as
a focus on constructive co-operation in order to address challenges and threats to security. Finally,
the fourth T reflects global trends towards a strengthening of intercultural and intercivilizational
dialogue, which is gaining major importance in today‘s world. Kazakhstan considered expanding
and strengthening the consensus base on fundamental issues of development to be one of the key
tasks for the OSCE.
Later in January 28, President Nazarbayev articulated the philosophy of Kazakhstan‘s chairmanship.
In the article ―OSCE AND GLOBAL POLITICS,‖ published in Izvestia on Jan. 28, 2010, he
outlined Kazakhstan‘s vision and explained how Kazakhstan planned lead the Organization through
its challenges.
―We, as the chair of the OSCE, recognize the unrelenting challenges facing the world and are
keenly aware that one year limits our ability to address every aspect of OSCE activities. While we
are not in favor of fostering any kind of revolutions in the institution, we are not going to be deterred
from pursuing our aggressive agenda either. As the head of a sovereign state, I view our
chairmanship not only as a national project of strategic value but as evidence of the country‘s
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increased international prestige. And I relish the opportunity to inject renewed inspiration into the
OSCE and give it a new impetus,‖ he wrote.
The U.S. was supportive of Kazakhstan‟s role in the OSCE. On Jan. 20, 2010, in his remarks on
―The Occasion of the Commencement of Kazakhstan's OSCE Chairmanship,‖ Assistant Secretary of
State on South and Central Asian Affairs Robert Blake said:
―As Kazakhstan begins to serve as the Chairman-in-Office of the Organization for Security and
Cooperation in Europe this year, it is charting a course for a bright and promising future. It is a
future in which the United States and Kazakhstan together seek peace, security, economic
development and prosperity. We seek democratic values and human rights that unite free nations in
trust and in respect. We seek a region in which relations are good between neighbors, between
Russia and China and Afghanistan and all others in the region and of course with the United States.
Kazakhstan has been a leader in international security since its earliest days of independence. After
the end of the Cold War, the world applauded as Kazakhstan renounced its nuclear weapons, closed
the nuclear test site at Semipalatinsk, and freely transferred over half a ton of weapons-grade
uranium to secure sites outside the country under Project Sapphire. This past December, we marked
the sixteenth anniversary of the landmark Cooperative Threat Reduction Program in Kazakhstan and
we continue to work in partnership with Kazakhstan to advance our common non-proliferation
goals. In April President Obama will welcome President Nazarbayev and other world leaders to the
Global Nuclear Security Summit he will host.
Since its independence, Kazakhstan has also set an example in the region with economic reforms
that have attracted investment and created jobs. The Government of Kazakhstan is also making wise
choices to develop multiple energy export routes and to diversify its economy to ensure that its vast
oil wealth can become a source for social mobility, not social stagnation.
As Kazakhstan‘s economy continues to recover from the global economic downturn, it should again
be an engine for growth within Central Asia. Afghanistan, Kyrgyzstan and Tajikistan would benefit
immensely from Kazakhstani investment and energy supplies to stimulate growth and create jobs.
And Afghanistan needs the full partnership of Kazakhstan to overcome the destitution that
extremists, warlords, and civil war have compounded over several decades. Kazakhstan is providing
vital logistical support to the International Security Assistance Force through the Northern
Distribution Network. We welcome Astana‘s decision to invest in Afghanistan‘s next generation of
leaders by generously allocating $50 million to fund scholarships for a thousand Afghan students to
study in Kazakhstan.
Kazakhstan‘s OSCE Chairmanship is highly symbolic. The OSCE had long prided itself for
stretching from Vancouver to Vladisvostok. Now, for the very first time, a major international
organization is headed by a new country east of Vienna. It is a recognition that the OSCE draws its
strength not only from Europe and the United States, but also from Central Asia, the Caucasus, and
the Balkans. The challenges facing the OSCE and the international community are real but our
strength comes from facing those challenges collectively and with a common purpose. The United
States looks forward to working with Kazakhstan this year to meet these challenges and achieve the
goal of modernizing and strengthening the OSCE, for the benefit of all participating States.
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Kazakhstan has successfully navigated the early stages of statehood. It has achieved a position of
leadership on international security and economic development. And now, Kazakhstan, as the OSCE
Chairman-in-Office has an unprecedented opportunity to lead Central Asia towards a future of
democracy and to advance its own reform agenda to unleash the creative energy of its people. With
continued reform, Kazakhstan can become the nexus of Eurasia in the 21st century, the point where
all roads cross. For thousands of years, along the ancient Silk Road, the communities of Central Asia
facilitated the global exchange of ideas, and trade, and culture. In the process, they made historic
contributions to our collective human heritage.
Today, as Kazakhstan assumes the OSCE mantle, it is poised and ready to break a fresh path for a
new Silk Road, a great crossroads of reform linking the provinces of northern Russia to the ports of
South Asia, the republics of Western Europe to the democracies of East Asia.
A strong and prosperous and democratic Kazakhstan can energize the global transmission of
learning, trade and freedom across the steppes of Central Asia. Kazakhstan has a glorious past and
can seize a hopeful future. The United States will continue to be Kazakhstan‘s steadfast partner.‖
Since then, the brainstorming over how to reenergize the OSCE had begun. U.S. VicePresident
Joseph Biden in his op-ed ―ADVANCING EUROPE‟S SECURITY‖ published in The New York
Times on May 6, 2010 defined the OSCE as global security player along the lines of NATO.
Biden wrote: ―The Russia-Georgia crisis in August 2008 reminded all of us that we cannot take
security in Europe for granted or become complacent. To prevent such events from recurring, we
support the creation of an O.S.C.E. Crisis Prevention Mechanism that, in situations of tensions
between O.S.C.E. states, would seek to prevent crises before they start. And in the case that they do,
it would empower the organization to offer rapid humanitarian relief, help negotiate a cease-fire, and
provide impartial monitoring. We also believe that the O.S.C.E. should facilitate consultations in the
case of serious energy or environmental disruption and dispatch special representatives to
investigate reports of egregious human rights violations.‖
The OSCE Chairperson-in-Office, Kazakhstan's State Secretary and Foreign Minister Kanat
Saudabayev said that based on the results of preliminary consultations, Astana could be the location
of the next OSCE summit. OSCE participating States are expected to discuss this proposal in the
near future. ―Today's meeting is a possibility to enter a new level of our dialogue and to raise
ourselves to a higher stage in ensuring united and indivisible security.‖ Saudabayev told meeting
participants.
President Nazarbayev also announced that Kazakhstan would give $10 million dollars in emergency
aid to Kyrgyzstan, including fuel and house-building materials.. The President of the OSCE
Parliamentary Assembly, Petros Efthymiou, stressed the important role that OSCE Parliamentarians
can play in crisis situations such as that in Kyrgyzstan. ―The Corfu Process was an excellent start to
bringing relevance back to the OSCE through dialogue. It is very important that focus has rightly
moved toward strengthening the Organization's capacity for early reaction to evolving crisis
situations,‖ he said.
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The Corfu Process is an OSCE-anchored dialogue on the future of European security. It was
launched at the OSCE's first informal ministerial meeting, which was held last June on the Greek
island of Corfu. OSCE Secretary General Marc Perrin de Brichambaut said the Almaty meeting and
the proposed summit were opportunities to renew the participating states' commitment to the OSCE,
to address problems dividing them, including protracted conflicts and arms control, and to act on
common challenges such as transnational threats, the situation in Afghanistan and Kyrgyzstan. ―The
participating States, under the guidance of Kazakhstan, have worked hard to identify problems and
gaps of understanding. Steps have been taken to restore a sense of trust. The time has come to move
to concrete action and step up the pace,‖ Nazarbayev said.
Some 50 ministers and deputy ministers participated in the meeting. After almost a yearlong debate,
they reached a consensus andagreed to hold an OSCE summit in Astana by the end of 2010. . ―This
is the success of our Organization, this is the success of our chairmanship‖, K. Saudabayev said,.
President Nazarbayev welcomed the decision:
―The decision adopted is a sign of the high level of respect on the part of the international
community for the successes achieved by the people of Kazakhstan during the years of
independence,‖ he said on Aug. 5.
Prior to the OSCE Summit, meetings were held in Warsaw, Vienna and Astana to prepare the
agenda.. The most important element of the process was THE PARALLEL OSCE CIVIL
SOCIETY CONFERENCE that brought together hundreds of the OSCE representatives to come
up with ways to promote good governance, human rights and democracy. The Forum was held
Nov.28-29, 2010.
The goal was to re-affirm respect for human rights and fundamental freedoms, democracy and the
rule of law,. The final Outcome Document contained more than 100 recommendations. Despite
noting several important achievements, such as the work done by the OSCE Representative on
Freedom of the Media, NGO delegates pointed to the ―shrinking space wherein civil society can
operate, an obvious erosion of human rights, and the inability of participating states to effectively
resolve protracted conflicts‖ as proof that the OSCE needs to re-affirm its fundamental values and
principles. Representatives saw the Astana Summit as a unique opportunity to reinvigorate the
Organization, with civil society playing an important role in shaping the outcome. They provided
the following recommendations as part of their resolve to protect and promote human rights and
fundamental freedoms:
Strengthening implementation of the human dimension as a core principle of comprehensive
security;
Strengthening the OSCE‘s operational functions, including its relations with civil society;
Strengthening the OSCE‘s effectiveness in responding to political and humanitarian crises;
Addressing human rights violations in the post-Soviet era, including in Central Asia.
More specifically, they recommended creating a mechanism for NGOs to participate in sessions of
the OSCE Permanent Council and the Human Dimension Committee. They urged the creation of an
official review process to evaluate candidates for OSCE Chair based on their record implementing
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human dimension commitments. Along similar lines, representatives promised to work toward
strengthening engagement and oversight of OSCE field operations and institutions. Delegates also
called on the OSCE to endorse the Extractive Industries Transparency Initiative (EITI) - a revenue
transparency standard in the oil, gas and mining sectors that provides for regular public disclosure of
payments by extractive industries to governments.
Furthermore, civil society representatives highlighted their concern for the ―growing tendency of
using the legitimate goal of fighting terrorism as a pretext for laws that seek to curb legitimate
speech.‖ They strongly advocated that such practices be brought to an immediate end. They called
upon participating states to do more to protect journalists and civic and political activists from
physical attacks, harassment and intimidation. With regard to intolerance, the representatives urged
that OSCE commitments to end discrimination be upheld by all member states. Civil society
representatives noted their disappointment in Kyrgyzstan for failing to accept the OSCE Police
Advisory Group in a timely manner, though they did welcome the launching of the Community
Security Initiative. Additional recommendations focused on the need for the OSCE to strengthen
cooperation with other international institutions, most notably the Council of Europe and the Venice
Commission. Representatives also called on OCSE members to maintain, if not increase, their
financial contributions to the OSCE.
ASTANA SUMMIT The first OSCE Summit in 11 years concluded today with
Kazakhstan's President Nazarbayev welcoming the work of
Heads of State from the 56 OSCE participating States, saying
their adoption of the Astana Commemorative Declaration
affirmed the Organization's comprehensive approach to
security based on trust and transparency. The United States
was represented Secretary of State Hillary Rodham Clinton.
"We have reconfirmed our support to the comprehensive approach to security based on trust and
transparency in the politico-military field, on rational economic and environmental policy and on the
full-fledged observation of human rights, basic freedoms and the rule of law," Nazarbayev said. "We
intend to raise the level and quality of security and understanding between our states and peoples."
Nazarbayevdescribed the two-day Summit as "an historic event for the entire OSCE community"
that had been characterized by "the spirit of Astana".
While in Astana, Clinton set up a Town Hall Meeting at the Eurasian University in Astana to meet
Kazakhstan‘s human rights advocates and female NGOs and discuss issues of democracy building,
freedom of speech, women‘s rights and other human rights issues. On Dec. 1, she met President
Nazarbayev and Foreign Minister Saudabayev. After the meetings, she said:
―The United States is committed to the OSCE, and we and our partners are working to empower it to
take an even more effective role, including the encouragement of more transparency and cooperation
between and among militaries, helping resolve long-standing conflicts, and standing up against
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attacks on civil society and journalists. Our discussions here in Astana have been constructive and
substantive,‖ Clinton stated.
She also said that ―Last night, I met with many of the participants who took part in the independent
conference of non-governmental organizations that ran parallel with the summit. I was impressed by
their effort and energy on crucial challenges, including protecting fundamental freedoms. They
know what we all know, that a thriving civil society is a vital building block of democracy, and that
disparate, diverse voices must be heard and supported. In the discussion that I had with both the
president and the foreign minister, I thanked Kazakhstan for your support of the international
mission in Afghanistan, and for all you are doing to help the Afghan people, particularly the very
kind invitation for 1,000 students to continue their education here, in Kazakhstan. This will enable
these young people to contribute to Afghanistan's development. I also thanked Kazakhstan for the
recently concluded air transit agreement that will help ensure the delivery of critical resources to
Afghanistan, and I welcomed Kazakhstan as the newest member of the International Security
Assistance Force, which now includes 49 countries.
We discussed our shared interest in curbing nuclear proliferation, and safeguarding vulnerable
nuclear material. Kazakhstan has long been a leader on this issue, and the United States deeply
values our partnership. Along with the United Kingdom, our nations recently secured more than 10
metric tons of highly-enriched uranium, and 3 metric tons of weapons-grade plutonium here in
Kazakhstan. That is enough material to have made 775 nuclear weapons. And now we are confident
it will never fall into the wrong hands. This is a milestone of our cooperation, and a major step
forward in meeting the goals set at this year's Nuclear Security Summit of securing all nuclear
material within four years.
I also shared with the minister and the president the discussions that I have had with civil society
leaders. I expressed our continued interest in Kazakhstan's national human rights action plan, and
reforms to electoral, political, and libel laws. I assured him that America's commitment to working
with Kazakhstan and the other nations of Central Asia to advance democracy and human rights will
not end when the summit is over. On all of these and other fronts, Kazakhstan and the United States
are making progress together. The bonds we are forging between our governments and our peoples
are making both of our countries -- and, indeed, the region and the world -- more secure and
prosperous. And surrounded by the energy and optimism that one feels in this new dynamic city, I
look forward with confidence to a positive future for Kazakhstan and its people‖.
The OSCE Summit was a historic event for the organization, its membership and Kazakhstan. Amid
all the assessments of Kazakhstan‘s chairmanship, the best was presented by the Center for Strategic
and International Studies in its report ―Kazakhstan‘s OSCE Chairmanship 2010.‖. The report
provided an end-of-year assessment of the 2010 Kazakh chairmanship of the OSCE and focused on
the events of the last few months of 2010, especially the Summit in Astana and the preceding review
conferences.
The report concluded that Kazakhstan provided capable and energetic leadership for the
organization at a difficult time. A major achievement of the Kazakh chair was to showcase the
OSCE to Central Asia and emphasize its Eurasian dimension—highlighting security problems
related to Afghanistan, potential failed states, economic and environmental problemsand human
rights violations. The crisis in Kyrgyzstan helped focus OSCE member states on the region. In
addition, Kazakhstan provided bilateral assistance to Kyrgyzstan during and after the crisis; other
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states also helped. The report says that the Astana summit was the major achievement of
Kazakhstan‘s OSCE chairmanship. The summit concluded with a commemorative declaration
outlining the road ahead for the organization (for more detailed info on the report visit
http://csis.org/publication/kazakhstans-osce-chairmanship-2010-0).
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ASTANA COMMEMORATIVE DECLARATION
TOWARDS A SECURITY COMMUNITY
1. We, the Heads of State or Government of the 56 participating States of the OSCE, have assembled in Astana, eleven
years after the last OSCE Summit in Istanbul, to recommit ourselves to the vision of a free, democratic, common and
indivisible Euro-Atlantic and Eurasian security community stretching from Vancouver to Vladivostok, rooted in agreed
principles, shared commitments and common goals. As we mark the 35th anniversary of the Helsinki Final Act and the
20th anniversary of the Charter of Paris for a New Europe, we reaffirm the relevance of, and our commitment to, the
principles on which this Organization is based. While we have made much progress, we also acknowledge that more
must be done to ensure full respect for, and implementation of, these core principles and commitments that we have
undertaken in the politico-military dimension, the economic and environmental dimension, and the human dimension,
notably in the areas of human rights and fundamental freedoms.
2. We reaffirm our full adherence to the Charter of the United Nations and to all OSCE norms, principles and
commitments, starting from the Helsinki Final Act, the Charter of Paris, the Charter for European Security and all other
OSCE documents to which we have agreed, and our responsibility to implement them fully and in good faith. We
reiterate our commitment to the concept, initiated in the Final Act, of comprehensive, co-operative, equal and indivisible
security, which relates the maintenance of peace to the respect for human rights and fundamental freedoms, and links
economic and environmental co-operation with peaceful inter-State relations.
3. The security of each participating State is inseparably linked to that of all others. Each participating State has an equal
right to security. We reaffirm the inherent right of each and every participating State to be free to choose or change its
security arrangements, including treaties of alliance, as they evolve. Each State also has the right to neutrality. Each
participating State will respect the rights of all others in these regards. They will not strengthen their security at the
expense of the security of other States. Within the OSCE no State, group of States or organization can have any pre-
eminent responsibility for maintaining peace and stability in the OSCE area or can consider any part of the OSCE area
as its sphere of influence. We will maintain only those military capabilities that are commensurate with our legitimate
individual or collective security needs, taking into account obligations under international law, as well as the legitimate
security concerns of other States. We further reaffirm that all OSCE principles and commitments, without exception,
apply equally to each participating State, and we emphasize that we are accountable to our citizens Astana
commemorative declaration towards a security community and responsible to each other for their full implementation.
We regard these commitments as our common achievement, and therefore consider them to be matters of immediate and
legitimate concern to all participating States.
4. These norms, principles and commitments have enabled us to make progress in putting old confrontations behind us
and in moving us closer to democracy, peace and unity throughout the OSCE area. They must continue to guide us in the
21st century as we work together to make the ambitious vision of Helsinki and Paris a reality for all our peoples. These
and all other OSCE documents establish clear standards for the participating States in their treatment of each other and
of all individuals within their territories. Resolved to build further upon this strong foundation, we reaffirm our
commitment to strengthen security, trust and goodneighbourly relations among our States and peoples. In this respect we
are convinced that the role of the OSCE remains crucial, and should be further enhanced. We will further work towards
strengthening the OSCE‘s effectiveness and efficiency.
5. We recognize that the OSCE, as the most inclusive and comprehensive regional security organization in the Euro-
Atlantic and Eurasian area, continues to provide a unique forum, operating on the basis of consensus and the sovereign
equality of States, for promoting open dialogue, preventing and settling conflicts, building mutual understanding and
fostering cooperation.
We stress the importance of the work carried out by the OSCE Secretariat, High Commissioner on National Minorities,
Office for Democratic Institutions and Human Rights and Representative on Freedom of the Media, as well as the OSCE
field operations, in accordance with their respective mandates, in assisting participating States with implementing their
OSCE commitments. We are determined to intensify co-operation with the OSCE Parliamentary Assembly, and
encourage its efforts to promote security, democracy, and prosperity throughout the OSCE area and within participating
States and to increase confidence among participating States. We also acknowledge the Organization‘s significant role in
establishing effective confidence- and security-building measures. We reaffirm our commitment to their full
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implementation and our determination to ensure that they continue to make a substantial contribution to our common
and indivisible security.
6. The OSCE‘s comprehensive and co-operative approach to security, which addresses the human, economic and
environmental, political and military dimensions of security as an integral whole, remains indispensable. Convinced that
the inherent dignity of the individual is at the core of comprehensive security, we reiterate that human rights and
fundamental freedoms are inalienable, and that their protection and promotion is our first responsibility.
We reaffirm categorically and irrevocably that the commitments undertaken in the field of the human dimension are
matters of direct and legitimate concern to all participating States and do not belong exclusively to the internal affairs of
the State concerned. We value the important role played by civil society and free media in helping us to ensure full
respect for human rights, fundamental freedoms, democracy, including free and fair elections, and the rule of law.
7. Serious threats and challenges remain. Mistrust and divergent security perceptions must be overcome. Our
commitments in the politico-military, economic and environmental, and human dimensions need to be fully
implemented. Respect for human rights, fundamental freedoms, democracy and the rule of law must be safeguarded and
strengthened. Greater efforts must be made to promote freedom of religion or belief and to combat intolerance and
discrimination. Mutually beneficial co-operation aimed at addressing the impact on our region‘s security of economic
and environmental challenges must be further developed. Our energy security dialogue, including on agreed principles
of our co-operation, must be enhanced. Increased efforts should be made to resolve existing conflicts in the OSCE area
in a peaceful and negotiated manner, within agreed formats, fully respecting the norms and principles of international
law enshrined in the United Nations Charter, as well as the Helsinki Final Act. New crises must be prevented. We
pledge to refrain from the threat or use of force in any manner inconsistent with the purposes and principles of the
Charter of the United Nations or with the ten Principles of the Helsinki Final Act.
8. Conventional arms control and confidence- and security-building regimes remain major instruments for ensuring
military stability, predictability and transparency, and should be revitalized, updated and modernized. We value the
work of the Forum for Security Cooperation, and look forward to the updating of the Vienna Document 1999. We value
the CFE Treaty‘s contribution to the creation of a stable and predictable environment for all OSCE participating States.
We note that the CFE Treaty is not being implemented to its full capacity and the Agreement on Adaptation of the CFE
Treaty (ACFE) has not entered into force. Recognizing intensified efforts to overcome the current impasse, we express
our support for the ongoing consultations aiming at opening the way for negotiations in 2011.
9. At the same time, in today‘s complex and inter-connected world, we must achieve greater unity of purpose and action
in facing emerging transnational threats, such as terrorism, organized crime, illegal migration, proliferation of weapons
of mass destruction, cyber threats and the illicit trafficking in small arms and light weapons, drugs and human beings.
Such threats can originate within or outside our region.
10. We recognize that the security of the OSCE area is inextricably linked to that of adjacent areas, notably in the
Mediterranean and in Asia. We must therefore enhance the level of our interaction with our Partners for Co-operation. In
particular, we underscore the need to contribute effectively, based on the capacity and national interest of each
participating State, to collective international efforts to promote a stable, independent, prosperous and democratic
Afghanistan.
11. We welcome initiatives aimed at strengthening European security. Our security dialogue, enhanced by the Corfu
Process, has helped to sharpen our focus on these and other challenges we face in all three dimensions. The time has
now come to act, and we must define concrete and tangible goals in addressing these challenges. We are determined to
work together to fully realize the vision of a comprehensive, co-operative and indivisible security community throughout
our shared OSCE area. This security community should be aimed at meeting the challenges of the 21st century and
based on our full adherence to common OSCE norms, principles and commitments across all three dimensions. It should
unite all OSCE participating States across the Euro-Atlantic and Eurasian region, free of dividing lines, conflicts,
spheres of influence and zones with different levels of security. We will work to ensure that co-operation among our
States, and among the relevant organizations and institutions of which they are members, will be guided by the
principles of equality, partnership co-operation, inclusiveness and transparency. Drawing strength from our diversity, we
resolve to achieve this overarching goal through sustained determination and common effort, acting within the OSCE
and in other formats.
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12. To this end, we task the incoming Chairmanship-in-Office with organizing a follow- up process within existing
formats, taking into consideration ideas and proposals put forward by the participating States, including in the
framework of the Corfu Process and in the preparation of the Astana Summit, and pledge to do all we can to assist the
incoming Chairmanships- in-Office in developing a concrete action plan based on the work done by the Kazakhstan
Chairmanship. Progress achieved will be reviewed at the next OSCE Ministerial Council meeting in Vilnius on 6 to 7
December 2011.
13. We express our deep gratitude to Kazakhstan for hosting our meeting, and for the energy and vitality the country has
brought to the challenging task of chairing the OSCE in 2010. We welcome Lithuania‘s Chairmanship of the
Organization in 2011, Ireland‘s in 2012 and
Ukraine‘s in 2013.
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CONFERENCE ON INTERACTION AND CONFIDENCE–BUILDING MEASURES
IN ASIA (CICA)
The idea of convening a Conference on Interaction and Confidence-Building Measures in Asia
(the CICA) was first proposed by President Nazarbayev on Oct. 5, 1992, at the 47th Session of the
United Nations General Assembly.
Today, in the age of globalization, CICA activity has become particularly significant. In 2006,
CICA member-states established the International Secretariat on the CICA with offices in Almaty.
Regular meetings among the Senior Officials Committee and Special Working Groups improved the
organization‘s effectiveness. Organizing the CICA III Summit for June 2010 in Istanbul (Turkey)
was a top priority on the group‘s agenda. During the Summit, Turkey assumed the chairmanship of
the CICA from Kazakhstan for a two-year period (2010 to 2012). This represented the first-ever
chairmanship succession in the history of the Conference (Kazakhstan has chaired the Conference
since 2002).
Before the CICA III Summit, all member states began work on implementing Catalogue of
Confidence Building Measures (CBMs) (human, economic, environmental, military-political,
fighting against new challenges and threats), as well as on the legal framework of the Forum. In
accordance with the ―Cooperative Approach for the Implementation of the CICA CBMs‖ (the
document was adopted in March 2007 at the meeting in Bangkok), CICA arranged workshops and
field meetings dealing with four aspects of the CBMs—fighting against new challenges and threats,
economic, environmental, and the human dimensions.
All member states worked on strengthening and broadening cooperation in the politico-
military area to make it the central element in CICA efforts to implement provisions of the CBMs
Catalog. During the meeting of Senior Officials Committee in Beijing on Oct. 29, 2009, member
states approved Kazakhstan‘s vision on strengthening the military-political dimension. This vision
was the starting point for the Concept and Action plan for the CICA military-political dimension.
Furthermore, on Jan. 18, 2010, at the tripartite consultations in Bangkok, the then CICA chair
(Kazakhstan), new CICA chair, (Turkey), and current ASEAN and RFA chairman (Thailand)
discussed opportunities for future development of the CICA‘s military-political dimension with the
possible addition of the RFA experience.
CICA is expanding its influence in the region. It brings together 18 states occupying 90
percent of Asia 's territory with half the world's population and growing interest in the increasing
dynamics of CICA processes. It has extended its geographic reach and representation—in 2009,
Vietnam requested full CICA membership (this request was preliminarily considered by all member
states at the Senior Officials Committee‘s meeting in Beijing on October 29, 2009). Moreover, the
CICA was conferred observer status by the U.N.General Assembly during in 2007. All these
achievements indicate that the Forum is in relevant and useful and responds to the needs of CICA
member states and the broader region.
In preparation for the CICA III Summit in June 2010, member states workedhard to implement
thecommitments and decisions made during the 2006 Summit and at the 2008 CICA Ministerial
Meeting. The preliminary vision for the next Summit‘s agenda included:
- adoption of the Summit political declaration
- completion of the process of institutionalization of the Forum through the adoption of the
Convention on the Privileges and Immunities of the CICA Secretariat
- giving impetus to the implementation of the Catalog of Confidence Building Measures to
initiate the first steps in the politico-military dimension
- Elevating some Asian countries as full members and observers of the CICA
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Moreover, Kazakhstan, as the then OSCE Chairman-in-Office proposed having a separate
meeting during the CICA Summit with participation of OSCE Asian partners to promote
cooperation between the OSCE and the CICA. It has also proposed issuing the final statement or
communiquй of all participants in the event.
Kazakhstan was the founding Chairman of CICA. It successfully held the Chairmanship since
the first summit in 2002. Turkey, which has been one of the most active members of CICA,
assumed the Chairmanship in June 2010 at the third Summit meeting in Ankara. It is expected
that there will be regular rotation of the chairmanship every two years.
The original goal of Turkey‘s chairmanship was to enhance political and security dialogue in
Asia. In the beginning of 2010, Turkey declared the following priorities for its work as chair:
conduct a dialogue on cooperation for security; provide basis for mutual search toward common
understanding; establish a bridge between security and dialogue; enhance dialogue for cooperative
security in accordance with the principle of non-zero-sum game; establish more effective
mechanisms of cooperative security; understand challenges to cooperative security; identify the road
map for the future development.
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ORGANIZATION OF THE ISLAMIC CONFERENCE
Kazakhstan became a member of the Organization of Islamic Conference in 1995. Cooperation
with the Islamic world is one of the priorities of Kazakhstan‘s foreign policy. Our country is
considered by the Islamic World as the integral part of the Muslim community. Since entering the
OIC, Kazakhstan has gradually developed its interaction with the General Secretariat, subsidiary
bodies and institutes of the Organization. Kazakh delegations have participated in the biggest OIC
events such as Summits (Eighth OIC Summit in December 1997 in Tehran, Ninth OIC Summit in
November 2000 in Doha, 10th OIC Summit in October 2003 in Putradjaya), Islamic Conferences of
Foreign Ministers (since 24th ICFM in December 1996 in Jakarta, until 33rd ICFM in June 2006 in
Baku) as well as Annual Coordination Meetings of Foreign Ministers within frameworks of the UN
General Assembly.
Further intensification of Kazakhstan‘s relations with the Muslim countries meets long-term
interests of our country mentioned in the Address of PresidentNazarbayev on March 1, 2006.
Nazarbayev described Kazakhstan as a multiethnic and multiconfessional state thatfully supports
developing a dialogue among civilizations and religions. He said it was becoming increasingly
important that Kazakhstan participate in the OIC as well as with other large regional and global
organizations.
Participants at the 32nd Islamic Conference of Foreign Ministers in Sanaa, Yemen in June
2005,supported Kazakhstan‘s initiative on promoting inter-faith dialogue by convening the Congress
of Leaders of World and Traditional Religions.
Special importance was given to cooperation with the Islamic Development Bank and other
financial and consulting institutions and companies. Implementing earlier agreements were under
development. The IDB Program, which includes several economic and infrastructure projects in
Kazakhstan, was developed for the period, 2003-2006:
- Syzganov Institute– $10 million
- Highway Gulshat – Karaganda – $10 million
- Segment of the Osakarovka – Vishnevka Highway– $20 million
- Assistance to Small and Medium Enterprises Development– $15 million
Development of cooperation with the OIC in educational, cultural-humanitarian, science and
technology fields as also important. Close interaction with the Islamic Education, Science and
Culture Organization (ISESCO) gave Kazakhstan an opportunity to implement national projects
including preservation of cultural heritage monuments, language training and study of history,
culture of Islamic Countries.
On Sept. 9-11, 2005, in Mekkah (Saudi Arabia), the Conference of Muslim Scholars and
Thinkers was held with the participation of the Chairman of the Committee for Foreign Affairs,
Defense and Security of the Senate of the Parliament of the Republic of Kazakhstan Zhabaikhan
Abdildin. This activity was aimed at elaboration of recommendations and preparation of documents
to be submitted to the Third Extraordinary Conference held in Mekkah, Dec. 7-8, 2005.
Representatives from the 57 Member States came together to consider the initiative of the King of
Saudi Arabia Abdullah bin Abdulaziz Al Saud.
A 10-year OIC Action Plan was adopted during the Extraordinary Summit. Based on the
proposals of the Kazakh delegation, provisions were included on political, economic and financial
assistance to countries affected by environmental disasters as well as on religious dialogue. At its
33rd meeting in June 2006, the Islamic Conference of Foreign Ministers reiterated support for the
Resolution initiated by Kazakhstan ―On the situation in the Regions of the Islamic world Affected
by Environmental Disasters, in particularly in the basin of the Aral Sea and the Region of
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Semipalatinsk Region.‖ Kazakhstan has worked within the OIC framework to participate in the
activities of the OIC Parliamentary Union. With the aim of enhancing and intensifying its
cooperation with the OIC, Kazakhstan has become more integrated in OIC inter-parliamentary
relations. This demonstrates our goal of developing positive and mutually beneficial relationships
with the Islamic countries. Kazakh parliamentarians took part in the sixth Conference of the
Parliamentary Union of the OIC,April 12-13, 2006, in Turkey.
KAZAKHSTAN‟S OIC CHAIRMANSHIP
In 2009, member states of the OIC decided that Kazakhstan would chair the Organization in
2011.. It is important to highlight that the decision was largely the result of the high trust and authority
that President Nazarbayevcommands in the region and his active international stand on security and
constructive East-West relations. . The focus of Kazakhstan‘s Chairmanship is to establish the effective
and constructive ―dialogue of civilizations‖ between the East and West, one of the goals of the CICA,
OSCE and OIC.
As the 2010 OSCE Chairman-in-Office and 2011 OIC Chairman, Kazakhstan has focused
strengthening the two organizations' cooperation. The goals and objectives of the OIC are not much
different from those of the OSCE, as both organizations are devoted to international peace and
security.
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KAZAKHSTAN‟S INTERNATIONAL INTERRELIGIOUS INITIATIVES
Since achieving independence, Kazakhstanhas served as an international platform for the
dialogue of cultures and religions. The initiative of the Alliance of Civilizations is accelerating its
pace and the dialogue between individuals, governments, religious and public. Kazakhstan
contributes to its interreligious, international efforts. At the 62nd session of the UN General
Assembly, Kazakhstan initiated the resolution that has been adopted proclaiming 2010 as the
―International Year of Rapprochement of Cultures.‖ Kazakhstan also held the 3rd Congress of
Leaders of World and Traditional Religions on July 1-2, 2009. The idea of promoting interreligious
and interethnic tolerance was also included on Kazakhstan‘s OSCE agenda in 2010.
CONGRESS OF LEADERS OF WORLD AND TRADITIONAL RELIGIONS.Leaders
of world and traditional religions met for the first time in Astana on Sept. 24, 2003, to condemn
terrorism . They pledged to continue to work toward peace, harmony and prosperity. The Congress,
held at the initiative of President Nazarbayev in Kazakhstan's capital, drew widespread support from
leaders of both Western and Asian nations. Kazakhstan is a Muslim-majority country and is
considered an example of interethnic and interfaith harmony. The Congress was a bold reminder to
the world that people of different faiths and ethnic backgrounds can and should live together in
peace.
At the end of the Congress, senior clerics from Islam, Christianity, Buddhism, Judaism,
Hinduism, Taoism and other faiths adopted a Declaration stating that "extremism, terrorism and
other forms of violence in the name of religion have nothing to do with genuine understanding of
religion, but are threat to human life and hence should be rejected. The inter-religious dialogue is
one of the key means for social development and the promotion of the well-being of all peoples,
fostering tolerance, mutual understanding and harmony among different cultures and religions," the
religious leaders said after the closing joint prayer.
President Nazarbayev, who chaired the conference, said, "It is unacceptable to attach
ideological or political dimensions to existing cultural and religious differences." He countered the
notion of the "clash of civilizations," saying it would be more appropriate to talk about "a meeting of
civilizations." U.S. President George W. Bush said then in his message to President Nazarbayev,
"The United States strongly supports the Congress' objectives of deepening inter-faith understanding
to advance the cause of religious liberty, expand freedom, and eliminate the root causes of
terrorism."
"For the United States, itself a multi-ethnic and religiously diverse nation, these meetings
underscore the importance of working with our friends in Central Asia to advance the values of
tolerance and respect that form the foundation of democracy," the President added. Leaders of the
United Kingdom, France, Italy, Russia, China, Egypt and other nations, as well as then UN
Secretary General Kofi Annan, also sent letters of support and commendation to the participants.
A bipartisan group of senior senators and congressmen from the United States, including
Sens. Sam Brownback (R-Kansas), Conrad Burns (R-Mont.); Reps.George Radanovich (R-Calif.),
Joe Pitts (R-Pa.), Robert Wexler (D-Fla.), Eni Faleomavaega (D-American Samoa), Edolphus
Towns (D-N.Y.) and others sent a letter to President Nazarbayev saying the Congress was "timely."
At the religious level, the U.S. was represented by the President of the National Council of Churches
Michael E. Livingston and Cardinal Theodore Edgar McCarrick (Archbishop of Washington). They
thanked Kazakhstan "for taking consistent and concrete steps to bridge the growing divide between
Muslims and Jews at a time when tension in the Middle East is at a fulcrum, and intolerance and
anti-Semitism are rising worldwide."
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A total of 18 different religious delegations participated in the meeting from Belgium, the
United Kingdom, China, France, India, Iran, Israel, Japan, Pakistan, Russia, Saudi Arabia,
Switzerland.. Islam was represented by General Secretary of the Saudi Arabia-based World Muslim
League Abdalla ben Abdel Muhsin At-Turki, President of the Islamic Knowledge University
Ayatollah Sayed Mohammad Khamenei of Iran and others from Pakistan and India. Papal Envoy
Cardinal Joseph Tomko led a delegation from the Vatican. The head of the Anglican Community,
the Archbishop of Canterbury was represented by the Bishop of Croydon, the Rt. Revd. Nicholas
Baines and Archbishop‘s Secretary for Ecumenism, Revd. Canon Jonathan Gough. Metropolitan
Mefodiy represented the Russian Orthodox Church. Metropolitan Emmanuel of France led the
delegation of the Constantinople Orthodox Church. Rev. Dr. Ishmael Noko, General Secretary of the
Lutheran World Federation, represented the LWF. Losantsyumay Tudanzyuezinima, Living Buddha
and deputy chairman of the All China Buddhist Association, Jian Ziyui, first deputy chairman of the
All China Taoist Association, Dr. Shantilal Somaya, Director of Shinto Temples Directorate from
Japan, represented their faiths. Jonah Metsger, the Chief Rabbi of Israel, and the chief rabbis of
Belgium, Switzerland, and Russia led the delegation representing Judaism.
In the final declaration, the leaders said they would not "allow the use of religious
differences as an instrument of hatred and discord." "We shall strengthen cooperation by promoting
spiritual values and a culture of dialogue to ensure peace in the new millennium," the participants
declared. The Resolution of the Congress requested Kazakhstan to make arrangements for the
Secretariat to handle all inter-sessional activities before the next meeting of the Congress in 2006.
The UN General Assembly acknowledged the Congress of World and Traditional Religions
held in September 2003 in Astana. The UN General Assembly adopted the Resolution on Promotion
of Interreligious Dialogue on Nov. 12, 2004. The document stressed the commitment of all religions
to peace and stability all over the world and appealed to the international community to promote the
development of the interreligious dialogue. By adopting the Resolution, the community of nations
supported Kazakhstan‘s initiative to promote a culture of peace and dialogue among civilisations.
Following the adoption of the Resolution, the Kazakhstan delegation to the UN informed the
international community about its work leading up tothe Second Congress of World and Traditional
Religions, held in Astana in 2006.
The Resolution invited UN Secretary-General Kofi Annan ―to bring the promotion of
interreligious dialogue to the attention of all Governments and relevant international organizations
and to submit a report thereon, including all views received, to the General Assembly at its sixtieth
session.‖ The Secretary General‘s report also included information on the First Congress of World
and Traditional Religions and further efforts of Kazakhstan to develop the interreligious dialogue.
On Oct. 13, 2004, Kazakhstan hosted the First Meeting of the Secretariat of the Congress of
Leaders of World and Traditional Religions in the southern city of Turkestan, a city on the ancient
Silk Road with 1,500 years of history and a spiritual center for Turkic people.
On April 25-26 2006, Kazakhstan hosted the Fourth Meeting of the Secretariat of the
Congress in Astana. Participants approved the draft declaration, themes and agenda of the Second
Congress. The main themes were: the freedom of conscience and recognition of leaders of other
religions and the role of religious leaders in international security. Special envoy of the U.S.
National Council of Churches Rev. Dr.Shanta Premawaradhana participated in the Secretariat‘s
meetings.
On Sept. 12-13, 2006, Kazakhstan‘s capital Astana hosted the Second Congress of Leaders
of World and Traditional Religions, gatheringmore than 40 religious leaders. At the Second
Congress, the leaders of major world and traditional religions decided to take a more active role in
denouncing intolerance, terrorism and the misuse of religion for political ends.
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Islam was represented by Dr. Abdullah bin Abdulmohsin Al-Turki, Secretary General of the
Muslim World League (Saudi Arabia), Sheikh Muhammad Sayyid Tantawi, Grand Imam of Al-
Azhar, Dr. Mahmoud Hamdi Zaqzouq, Dr. Mahmood Ahmad Ghazi, President of International
Islamic University (Pakistan) and other distinguished Islamic leaders. The heads of Christian
delegations included Rt. Rev Nicholas Baines, Bishop of Croydon (United Kingdom), Cardinal
Roger Etchegaray, Emeritus President of the Pontifical Council for Justice and Peace (Vatican), His
All Holiness, Bartholomew, Archbishop of Constantinople, New Rome and Ecumenical Patriarch
(Turkey), Cardinal Theodore Edgar McCarrick, Archbishop of Washington (USA), Reverend Dr.
Ishmael Noko, Secretary General of the Lutheran World Federation (Switzerland/USA) and others.
Yona Metzger, Chief Ashkenazi Rabbi of Israel and Shlomo Amar, Sephardic Chief Rabbi of Israel
have represented Judaism at the Second Congress. The representatives of Buddhism, Shinto, Taoism
and Hinduism have also participated in the Second Congress. Among the invited guests of honor
were UNESCO Director-General Koichiro Matsuura, the former Prime Minister of Malaysia
Mahathir Mohammad, UN Under-Secretary-General (Geneva) Sergey Ordzhonikidze, Renй van der
Linden, President of the Council of Europe Parliamentary Assembly, Alejo Vidal-Quadras, Vice-
President of the European Parliament, Staf Nimmegeers, Vice Chairman of the Senate of Belgium
and other distinguished political figures.
President Nazarbayev welcomed participants‘ agreement on a set of Principles of Inter-
religious Dialogue that he hoped would pave the way for a Declaration on the role of religion in
promoting international security. "After the great loss of life in the first six years of the new century,
the world is gradually beginning to understand one simple fact," he said. "The world‘s cultural and
religious diversity is a reality that one needs to understand and accept as a given. Any other
approach by politicians and the world may simply explode."
Representatives of each of the world‘s major religions spoke about the role of education in
promoting tolerance as a long-term contribution to global security. Koichiro Matsuura, UNESCO
Director-General, lauded Kazakhstan‘s "model for peaceful coexistence" among the country‘s 40-
some religious groups. French President Jacques Chirac, in a letter to President Nazarbayev,
expressed hope that the gathering would improve global dialogue between cultures and civilisations.
"To counteract against the clash of cultures, to combat calls to violence, to achieve the victory of our
vision of a unified world, these are the goals which people of all kind intentions, of all religions and
views, must reach together," he wrote. At conclusion of the Congress, the religious leaders signed a
solemn Declaration ―together to tackle and ultimately eliminate prejudice, ignorance and
misrepresentation of other religions‖ to aid in the global fight against terrorism. The Declaration
calls for ―placing a particular focus on what religions hold in common rather than what divides
them.‖ It alsocondemned terrorism on the basis ―that justice can never be established through fear
and bloodshed and that the use of such means is a violation and betrayal of any faith that appeals to
human goodness and dialogue.‖ President Nazarbayev stated that the Declaration capped five years
of work following the terrorist attacks on New York and Washington on Sept. 11, 2001.
―In the face of global threats the whole world has united in this goal: eradicate terrorism and
confirm the values of humanism. An ideology of tolerance and dialogue must confront the ideology
of terrorism,‖ President told to the delegates.
The Congress‘ participants agreed to meet again in Astana in three years. The Congress took
place in a newly built Palace of Peace and Accord. Inaugurated in early September, the pyramid-
style building was designed by British architect Sir Norman Foster as a permanent seat of the
interreligious dialogue forum. The place serves a museum of Kazakhstan‘s national culture, opera-
house, civilizations‘ university, exhibition and concert hall, library, research center for major faiths
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and office for different religions. The hallwas designed after the Sitting Hall of the UN Security
Council in New York. The building is 77 meters high and 25,500 square meters wide.
The Third Congress was held on July 1-2, 2009, in Astana under the title of ―The role of
religious leaders in building a world of tolerance, mutual respect and cooperation,‖ with the
following sessions: ―Moral and spiritual values‖; ―Justice, peace and security,‖ ―Environment and
harmony,‖ ―Dialog and cooperation,‖ ―Solidarity and cooperation in the period of crisis.‖
In the first session, religious leaders discussed moral and spiritual values as a part of human
culture and tried to find the unified approach to understanding and defining spirituality. Some
people believe spirituality is a cultural heritage like language, art, music, literature, etc.; others
believe that spirituality is closely linked to religion and religious values. They refer to secular and
religious perceptions of the concept of "spirituality."
In the second session, participants discussed developments of the modern world. One group
of religious leaders spoke about a lack of of understanding and tolerance. At the same time, the
leaders said the interaction of religions, culture, and social development continues to affect interstate
relations and international stability. At the third session, leaders discussed the global goal of
solidarity. Differences provide opportunities to explore others values and their merits. Today the
global community needs to be united and make active steps to develop new forms of international
cooperation that will make it possible to ensure stable economic growth and overcome global
imbalances.
At the Third Congress, the United States was represented by three different delegations:
religious diversity included the Rev. Dr. Bernice Powell Jackson, the North American President of
the World Council of Churches, Ms. Debbie Almontaser, Member of board of Brooklyn Borough
President's New Diversity Task Force, Muslim Consultative Network, Women In Islam Inc., and
others). The delegation was led by the President of the US Christian Churches Together, the Very
Reverend Leonid Kishkovsky. The second group represented the level of American involvement in
the global interreligious dialogue; itwas represented by Dr. William Vendley, Secretary General of
the World Conference of Religions for Peace International and Mr. Stein Villumstad, Deputy
Secretary General of the World Conference of Religions for Peace International. The third
delegation represented the voice of Mormon community was led by Paul Bowen Pieper of The
Church of Jesus Christ of Latter-day Saints (LDS Church) and was the first leader of the LDS
Church in Kazakhstan.
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AFGHANISTAN
Kazakhstan views the situation in Afghanistan as a priority of its foreign policy agenda.
Kazakhstan strongly supports a comprehensive and continued international effort to bring lasting
peace and economic development in Afghanistan.
In 2001, Kazakhstan provided no-cost over-flight rights for the ―Enduring Freedom‖
operation. Similar arrangements were developed and adopted between Kazakhstan and Germany at
the end of 2007. In 2002, Kazakhstan offered its emergency landing air fields for U.S. military and
cargo planes. As one of the key parts of so-called Northern Distribution Network through which
about 35% of all US cargo arrives to Afghanistan since 2009, Kazakhstan made its rail and motor
roads available for transit of non-lethal shipments needed for NATO and U.S. forces in Afghanistan.
In accordance with Bonn Process, 2006 London Conference, 2008 Paris Donor Conference
on Afghanistan,Kazakhstan has undertaken a number of steps to aid Afghanistan: $1 million in
humanitarian assistance, scholarships for 1000 Afghan students and training programs for Afghan
police and internal security service. It also paired with Government of Afghanistan the Protocol of
Intentions to build railway road Termez (Uzbekistan) to Kabul (Afghanistan) with further access to
the transport infrastructure of India and createdthe Kazakh-Afghan Intergovernmental Commission
on Trade and Economic Cooperation.
Kazakhstan is the only Central Asian country that has the Assistance Program on
Reconstruction of Afghanistan. Between 2007-2008, $3 million was provided to restore agricultural
seed supply in Afghanistan, to build a school in Samangan province, a hospital in Bamiyan province
and a road.
Under the next Governmental Action Plan on Assistance, Kazakhstan is allocating $5 million
for projects related to water supply, infrastructure development and delivery of grains and other
commodities. The Action Plan calls forthe delivery of commodities and materials as well as
construction of four bridges crossing the river running through the town of Aibak and strengthening
the river banks. According to the Action Plan, the Afghan government will receive two aircrafts
from their Kazakh counterparts: a MI-171 (to use for humanitarian cargo and rescue operations) and
an IL-76 (for transporting humanitarian aid cargo from the United Arab Emirates to Afghanistan as
part of the UN World Food Program).
Another important step was the decision by the Government of Kazakhstan to allocate $50
million to implement the Agreement on Cooperation in Education with Afghan Government. Under
the agreement, Kazakhstan will educate 1,000 Afghan people from 2010 to 2014. Education of
Afghan people will be carried out in the universities of Kazakhstan in such specialties as healthcare,
agriculture, police, border control, engineering, teachers and educators.
Kazakhstan fully supports the U.S. strategy on Afghanistan. Stabilization of Afghanistan was
and continues to be one of the most important issues to discuss during high-level exchanges between
Kazakhstan and the U.S.
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IRAQ
Kazakhstan believes that UN should play an active and effective role in further political and
economic rehabilitation in Iraq in close cooperation with the Iraqi Authorities and international
community. Joint efforts should ensure full respect for the independence and territorial integrity of
Iraq, as well as the sovereignty of the Iraqi people and their right to determine their own political
future.
The Kazakh military engineers unit has been stationed in Iraq under U.S. command since
2003. It consisted of 25 people in the Engineer Battalion, four officers in the Multi-National Force
in Baghdad and the Multi-National Division – Centre South.
During its mission in Iraq, the squad destroyed four million units of ammunition. Kazakh
doctors, together with their foreign colleagues, rescued more than 500 Iraqi citizens, one third of
whom were children.
In October 2008, Kazakhstan withdrew its peacekeepers from Iraq at the request of the Iraqi
government. The security situation had improved and Iraqi security forces were now capable of
taking over.
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KAZAKHSTAN – THE HEART OF EURASIA
USEFUL INFORMATION
National holiday
Dec. 16 – Independence Day
State holidays
Jan. 1-2 – New Year
March 8 – International Womens‘ Day
March 22 – Nauriz (traditional holiday of Spring - ancient Turkic (Kazakh) New Year),
May 1 – Unity Day of Kazakhstan people
May 9 – Victory Day
July 6 – Astana Day
Aug. 30 – Constitution Day
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Local time
Kazakhstan is divided into two time zones
Eastern zone, Western zone
Eastern Standard Time + 11 hours (time in the capital of Kazakhstan – Astana) and + 10 hours when
the United States switches to Daylight Savings Time
Languages
Kazakh, which belongs to a Turkic group, spoken by over 70.1% of the population, is the state
language. Russian, spoken by 94.3%, enjoys an equal status under the Constitution and is a means of
interethnic communication in Kazakhstan. English is spoken by 15.4%. There is the National
Trinity of Languages Program which aims to ensure that all Kazakh citizens have full command
of Kazakh, Russian and English to have an international competitive edge in the 21st
century.
Newspapers, TV/Radio programs, school instruction are done in 11 languages (Kazakh, Russian,
Uzbek, German, Korean, English, etc.)
Currency
The national currency of Kazakhstan is Tenge (100 tiyn). There are banknotes of T 10 000, 5 000, 2
000, 1 000, 500, 200. The coins of T 1, 3, 5, 10, 20, 50,100.
Currency exchange
Official exchange rate (June, 2010): US$ 1 = 146,4 KZT. The exchange of foreign currency to
Tenge and back is carried out in any bank or official exchange offices. It is advisable to keep
documents of exchange of large amounts before departure from the country.
Bank hours
09.00 a.m. to 06.00 p.m., Monday-Friday
Lunch break 01.00 p.m. – 02.00 p.m.
Credit cards
Almost all American and international credit cards, including Visa and Diners Club, are accepted in
most large hotels in Almaty and Astana and in most shops and restaurants.
National dishes
In general, Kazakhs prefer meat dishes. The favorite national dish of Kazakhstan is beshbarmak.
Beshbarmak is made with lamb, horse meat, beef and dough. Other favorites include kazy, karta,
zhal, zhaya and, of course, kumys (mare‘s milk).. Kumys has healing qualities and is used to treat
lung and intestinal-gastric illnesses. Taking into account that more than 130 different nationalities
are represented in Kazakhstan, the country‘s cuisine is diverse. Kazakhs enjoy Russian, Uighur,
Ukrainian, Uzbek, Korean and European cuisine. Throughout the country, restaurants and cafes are
diverse.
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Other useful information
Electricity: 220 volts AC, 50
Communications:
Telephone: country code – 7, code of Astana city – 7172, code of Almaty – 727 / International calls
can be made easily. Telegram facilities available from any post office. Full postal facilities are
available at main post offices in the cities andare open 24 hours a day, seven days a week.
Useful links
Travel and Visa information: www.kazakhembus.com
Information on Kazakhstan: www.kazakhstanlive.com
Tourism: www.kazakhstan-tourist.com; www.ecotourism.kz; www.kantengri.kz;
www.kazakhstanbirdtours.com
Most popular ski resort in Kazakhstan: www.chimbulak.kz
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NATURE & GEOGRAPHY
The Republic of Kazakhstan is located in the central part of Eurasia, almost equidistant from the
Atlantic Ocean and the Pacific Ocean.
Kazakhstan is located at the junction of two continents, Europe and Asia, between 45 and 87
degrees of the eastern longitude, 40 and 55 degrees of the northern latitude in Central Asia. It
occupies a territory equal to 2724.9 thousand km2 and spreads to the east from the Caspian Sea and
Volga valleys to mountainous Altai, from the foothills of the Tien Shan in the south and southeast to
the Western Siberian lowland in the north. The length of its territory from the west to the east
exceeds 3,000 km, and from the south to the north it exceeds 1,700 km. Kazakhstan borders Russia
to the north, 6,467 km, China to the east, 1,460 km, andKyrgyzstan, 980 kmUzbekistan, 2,300 km,
and Turkmenistan, 380 km, to the south. Kazakhstan is bordered by the Caspian Sea in the west.
Total length of the borders is 12,187 km including 600 km of borders along the Caspian Sea. By the
territory, Kazakhstan is the ninth largest in the world and in the 4th on the continent.
Throughout history, Kazakhstan was ann arena for brisk commercial and political relations; itnow it
serves an important role as a link between Europe, Central Asia and the rapidly developing Asian-
Pacific region.
The largest part of the territory is occupied by the valley framed with mountains in the east and
south-east. Mountains along the border with Kyrgyzstan rise almost up to 5,000 meters above sea
level, and Karagiye (Batyr) depression in Mangyshlak is located at 132 meters below sea level. The
Mangyshlak peninsula is in the southwest; Kazakh Low Hill Land is in the central part of the
country, the southern part of Western Siberian lowland sits in the north, and the mountains of Altai,
Tarbagatai, Zhungar Alatau and Tien Shan sit in the east and southeast.
Kazakhstan is home to 8,500 rivers. The length of seven rivers exceeds 1,000 km. The Ural and
Emba, which flow into the Caspian Sea, and the largest; Syrdariya flows into the Aral Sea; Ili that
flows into the lake of Balkhash; Irtysh, Ishim and Tobol cross the country and flow into the Arctic
Ocean. Kazakhstan is also home to 48,000 lakes. The largest are the Aral Sea, Balkhash, Zaisan,
Alakol, Tengiz and Seletengiz. The largest part of the northern shore and half of the eastern shore of
the Caspian Sea (the largest lake in the world) belong to Kazakhstan. The length of the shore is
2,340 km. Twenty-six percent of Kazakhstan is occupied by steppes; 44 percent or 167 million is
desert and 14 percent issemi-deserts. Forests occupy 21 million ha. There are several large
mountain ranges on the territory. The highest peak is Khan-Tengri peak (Saryzhaz ridge) – 6,995
meters above sea level.
Kazakhstan has a unique and rich landscape.
Kazakhstan‘s fauna is also diverse. On its territory there are 853 species of vertebrate animals (178
species of mammals, 512 species of birds, 49 species of crawlers, 12 species of amphibious animals,
102 species of fish and cyclostomes). Fauna of invertebrate animals is also diverse: there are at least
50,000 species including 30,000insects. In the steppes, there are flocks of koulans and goitered
gazelles (Atlantic antelope). Deserts are inhabited by gigantic lizards, snakes and spiders. Tops of
the mountains are inhabited by snow leopards. In the precipices of mountains, one can hear the
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voice of whistling thrush – Indian thrush. There are birds, marmots, Ustyurt wild sheep, Turkestan
lynx, Tien Shan brown bear, flamingo and swans in Kazakhstan. All of them are unique animals.
Flora is rich: . 5,754 species of higher plants grow on the territory of the Kazakhstan. High-level of
endemism (up to 14%) is specific for Kazakh flora. The most peculiar is the flora in the Western
Tien Shan and in the mountains of Karatau.
The Red Book of the Republic includes 125 species and subspecies of vertebrate animals, 96 species
of invertebrate animals and 303 species of plants.
Protection of the biological and landscape diversity is carried out by 115 specially protected natural
territories of national significance and 60 local natural territories.
Currently there are 10 reserves, eight national parks, two natural reservations and three natural parks
operating in Kazakhstan.
Typical plants of Kazakhstan
Blue Spruce: blue royal Tien Shan spruces are natural artistic
decoration of mountain ridges of Ile Alatau. Like candles they
can reach heights of 40-50 meters. Covered with fog, these
giants rise above the deep precipices of the mountains. Their
tolerant needles can survive cold alpine winters and can exist in
bare rocks.
Saxaul (Latin: Passer ammondendri): You can meet a unique
plant in the steppes of Kazakhstan - saxaul, a bush with soft
leaves. During unusually dry periods, saxaul loses all its leaves
and look like long curls. But as long as rain comes, the plant
starts growing again. If there are several rainy periods in
summer, it can form a small forest. The bush mainly grows in
the desert and semi-desert areas.
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Typical animals of Kazakhstan
Snow leopard (Pantera unique): In Kazakhstan people view the
eopard as their strongest and proudest animal. A wild cat, its
preferred habitat ison the mountain tops where glaciers are
contiguous with the alpine belt. Although rare, it can
sometimes be found in of the Tien Shan. Without natural
enemies, snow leopards have a long life expectancy .
Saker falcon: In ancient times, Kazakhs used saker falcons for
to hunt fowl. Kazakhs took baby falcons from their nests to
train them to hunt. This tradition still exists. Falcons can be
found in the wilderness in Altai, in north-eastern Kazakhstan, in
Ile Alatau.
Koulan (Latin: Eglius hemionus): Strong, with a light gait, these
Asian animals are elegant and beautiful. Scores of koulans used
to roam in the steppes of Kazakhstan but overhunting rendered
them extinct. Koulan were reintroduced to the at the right
riverbank of Ili River from the Aral Sea.
ENVIRONMENT PROTECTION
Kazakhstan was hit by two major disasters in the 20th century, 500 nuclear weapon tests at the
Semipalatinsk test site and the drying up of the Aral Sea due to diversion of water from Amu Dariya
and Syr Dariya rivers for irrigation.
The country has also been heavily industrialized in the second part of the last century, resulting in
high levels of industrial pollution.
Against this background, the people in Kazakhstan have been particularly conscious of the need of
greater efforts to protect and restore the environment. The Semipalatinsk nuclear test site was shut
down in 1991, while joint projects with the World Bank helped restore water to the northern part of
the Aral Sea.
Other steps are being taken toward cleaner air and environmental protection at the national level.
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In March 2009, Kazakhstan ratified the Kyoto Protocol to the UN Framework Convention on
Climate Change.
According to the document, the country must reduce carbon dioxide emissions in the atmosphere.
Since ratification, all major facilities are being monitored for environmental compliance with the
protocol. Kazakhstan aims to reduce its greenhouse gas emissions by 15 percent by 2020, and by 25
percent by 2050, in full accordance with the Kyoto Protocol.
Since July 2009, the government restricted the import of automobiles not meeting the Euro-2
standard. From Jan. 1, 2011, Euro-3 standard was implemented, and the Euro-4 standard will be
introduced in 2014.
Almaty, a city with one of the highest levels of pollution in Kazakhstan, introduced a program to
reduce air pollution through 2018. Trucks are now restricted from entering the center of the city,
many trees are being planted, transport interchanges are being built to reduce congestion. The city‘s
department of natural resources noted an improvementin the pollution index from August 2008 to
August 2009, with a drop of almost three percentage points.
Since 2009, Kazakhstan has participated in ―Earth Hour‖ meant to draw public attention to climate
change. On this day, lights are switched off for one hour at Baiterek Tower (the symbol of Astana),
the Ak Orda presidential palace and another 100 buildings in Astana. Initially the action was
planned only in Astana and Almaty, but 88 other cities across Kazakhstan chose to participate.
All future efforts in environmental protection will be carried out in accordance with a new 10-year
program, ―Ecology of Kazakhstan.‖. One of the program‘s objectives is to create a Zhasyl damu
(green development) national center of environmental development for integrated management of
waste production and consumption. Its main purpose is to construct factories to produce recycling
equipment. Today, the country exports its persistent organic pollutants for recycling to Germany.
The program also incorporates a number of investment projects, which will be designed in
accordance with today‘s requirements. The program‘s top prioritywaste production and
consumption.
In June 2010 in Bonn (Germany), Kazakhstan recommended to the COP-16 to accept Republic of
Kazakhstan in Annex B of the Kyoto Protocol.
The conference adopted a policy document that laid the groundwork for a future comprehensive,
legally binding climate agreement to replace the Kyoto Protocol after 2012. A Kazakh delegation
led by Minister of Environmental Protection Nurgali Ashimov participated in the debates.
To implement the Joint Implementation (Article 6) and emissions trade (Article 17), it is necessary
to meet the requirements of articles of the Kyoto Protocol stated in the Marrakesh Agreement. t the
international level, negotiations are held on the integration of Kazakhstan in Appendix B of the
Kyoto Protocol with a commitment to voluntarily limit their anthropogenic emissions of greenhouse
gases (GHGs) for the period from 2008 to 2012. Kazakhstan is commited to achieving 1992
emissions levels.
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In September 2009, Kazakhstan submitted a report to the UNFCCC Secretariat on inventory of
GHG emissions.
After receiving a positive report on the audit led by international experts, Kazakhstan presented a
national report on Assigned Amount Units (AAU / AAU) and registered with the Secretariat of the
UNFCCC. All these activities contributed to positive solutions at the 32nd session of the Subsidiary
Body for Implementation (May 31 - June 11, 2010, Bonn, Germany) and further at the KS/SS-6 in
Mexico in December of 2010.
In November 2009 in Barcelona at a meeting of the AWG-LCA, Kazakhstan made a commitment to
quantitative reductions in greenhouse gases after 2012.
Within the framework of the State program "Zhasyl Damu" for 2010-2014, there will be a general
decrease in carbon intensity and increase of the share of renewable energy. Work is underway to
develop strategies for low-carbon economy. These parameters helped Kazakhstan develop a legally
binding agreement at COP-16 and KS/SS-6 in Mexico in December 2010.
In June 2009, in Bonn, the Kazakhstan submitted the Second National Communication at the
Conference of Parties of the UN Framework Convention on Climate Change. Since the beginning of
last year, negotiations on the development of the Third National Communication have been held to
meet the requirements of Annex I.
On Aug. 6, 2009, a Ministry of Environmental Protection was appointed to coordinate
implementation of the Kyoto Protocol of the UN Framework Convention on Climate Change (DNA
/ DFP).
The Head of State gave an assignment to the Government to introduce national carbon trading
platform in Kazakhstan. Work has begun to develop regulatory and legislative documents,
amendments and changes to the Environmental Code.
The Ministry of Environment is considering the acquisition and establishment of a national register
of units to reduce greenhouse gas emissions. It should result in the formation of a national system
for estimating emissions of greenhouse gases, the rules on the approval, registration and monitoring
of projects to reduce greenhouse gas emissions.
On Jan. 29, 2010, Kazakhstan sent a letter to the UNFCCC Secretariat expressing its intention to be
associated with the Copenhagen Accord and requested to include the name "Republic of
Kazakhstan" in the title of the Agreement.
Aral Sea in Kazakhstan - a rebirth of local environment?
Kazakhstan has refused to accept the so-called irreversible fate of the Aral Sea.
The country‘s decision to reconquer the northern part of the sea nearly five years ago has released its
first tangible results: rising water levels and the return of fish.
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Forty years of heavy irrigation by rice and cotton farmers took their toll on the Aral Sea, shrinking
its surface by two thirds and its depth from 53m above sea level to a mere 30m.
Fish disappeared, salinity increased and large quantities of pesticides were released into the
environment. Labelled an ―ecological disaster‖ by the international community, the results have had
a profoundly damaging effect on local fishing communities.
But Kazakh President Nazarbayev has defied fate, launching a vast rescue programm for the Kazakh
side of the Aral Sea in 2001. The two main goals were: the construction of the 13km Kok-Aral dam,
dividing the sea into two halves, north (Kazakh) and south (Uzbek), and the development of the Syr
Darya river banks to increase the volume of water being discharged into the northern part of the sea.
These two measures have been successful:
● Soon after the program was completed in August 2005, tests revealed that the surface of the
northern half of the lake had risen 13% from 2850 square km in 2003 to 3250 square km in 2006.
● Over the same period, salinity dropped from 34 grammes/litre to 15 grammes/litre, encouraging
the gradual return of marine life and several varieties of freshwater fish. The volume of fish catches,
less than 1500 tonnes/year two years ago, is now 15000 tonnes/year – a ten-fold increase.
A significant climatic evolution has taken place. The inhabitants of the region, who are finally able
to resume their livelihoods, have noted a considerable improvement in environmental conditions of
the region in recent years. Above all, the increase of the sea‘s surface has encouraged evaporation,
and thus the progressive return of rainfall, indispensable for agriculture and human and animal life.
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MILESTONES OF HISTORY
Kazakhstan is located in the heart of Eurasia and on the intersection of ancient social, economic and
cultural routes between many nations, ethnic groups and civilisations. During different periods in
history many states with their unique cultures were established and developed on the present-day
territory of Kazakhstan.
The Scythian nomad civilisation existed in the steppe regions of Central Asia during the first
centuries of the first millennium B.C. Some artifacts of this civilization can still be found. The most
impressive artifacts from this era are household goods and personal items made from bronze and
gold in so called "animal style."The "Golden warrior-prince" tomb is well-known for its beauty and
elegance. It was found near a settlement called Issyk, which is located very close to Almaty city.
Centuries ago, a powerful tribe called the Huns established themselves in the steppe region of
present-day Kazakhstan. They had a great influence on the political development of this area at the
time. An army of Huns led by their great warlord Attila the Hun brought down the Roman Empire.
Later on Turkic tribes became the Huns‘ successors. They created some vast states named
"kaganats" which means empire. These empires covered the territory from the Yellow Sea in the
east to the Black Sea in the west. These nomad states had well-developed cultures for that era: there
were several cities with advanced levels of commerce and trade. Step-by-step, the cities and
caravan-sarais were established at Central Asian oases. It was a part of the historical route known as
"The Great Silk Road,‖ which connected Byzantium with China. Other caravan routes were
important as well. Among them were the roads leading along the Syr-Dariya River to the Aral Sea
and the Urals and the so-called ―sable road‖ from Central Kazakhstan and Altai to southwest
Siberia. Europe and the Middle East were supplied with very valuable furs by this route. Big cities
and commercial centers were built along these trade routes, the most famous among them being
Farab, Taraz, Kulan, Yassy (Turkestan), Sauran and Balasagun.
The Great Silk Road trade route played a major role in the development of commercial relationships
and in the exchange of progressive scientific and cultural ideas. The great eastern philosopher
AI-Farabi lived on the territory of the present-day Kazakhstan from 870 to 959 and was known as
the Second Teacher after Aristotle for his research into philosophy, astronomy, mathematics and the
theory of music. Hodja Ahmed Yassawi was a well-known Moslem bard who lived in the 12th
century; he wrote a famous poem called the book of wisdom. A new form of city architecture
developed at that time and became a major historical achievement. This new style was famous for its
elegant proportions. At the same time a unique type of portable dwelling called "yurta‖ (nomad's
tent) was invented. Yurta was a perfectly designed structure for the the nomads.
In 1221, nomadic tribes led by Genghis-khan occupied Central Asia. This invasion had a great
influence on the development of the Kazakh nation.
Kazakhs had emerged as a distinct ethnic group about that time, forming a tribal confederation
known as the Kazakh Khanate (or Orda) which comprised three tribal unions – Elder, Middle and
Lesser Zhuzes each of which were led by Khans.
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The merger of different nomadic tribes began in the second
half of the 15th century. These tribes had different cultures
and traditions but had a similar lifestyle. The word ―Kazakh‖
is translated from the Turkic language as "free, independent."
The Kazakh khanate appeared at the time when there was a
political crisis caused by the downfall and collapse of the huge
nomadic empire. This caused a lot of small states to emerge
and fight for control of the territory and parts of the Great Silk
Road trade route. Subsequent dynasties of Genghis-Khan and their rivals also contributed to the
political instability of the region.
Mausoleum of Alasha-Khan (XVI century)
Since the end of the 16th century the main goal of Kazakh khanate has been to promote the integrity
and inviolability of its territory.
Certain events that took place at the beginning of the 18th century show that there was a lack of
resources for the defense and development of Kazakh independence. A very powerful and
aggressive neighbor called Dzhungar Khanate was on the border of the Kazakh khanate. This fact
made Kazakh Khans reconsider their diplomatic relations with Russia and to change them not only
for good trade relations but also for the military defense of the Kazakh khanate and Russia against
Dzhungar aggression.
At the beginning of the 18th century, the political situation along Kazakhstan‘s borders and in the
Kazakh khanate itself was incredibly unstable. The Khanate was under threat. That is why khans of
the Lesser and the Medium zhuz Abulkhair and Sameke decided to accept Russia‘s protection as it
was the only condition under which Russia would agree to defend it militarily.
This protectoin very shortly turned into the colonization of Kazakhstan by Russian military forces.
Abylai Khan made a successful attempt to resist this process of colonisation. He managed to do the
impossible by gaining the independence of the Kazakh khanate under very unfavorable internal and
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external circumstances. He used the fact that China and Russia had a lot of disagreements at the time
(the 18th century). Unfortunately, the independence of the Kazakh khanate did not continue after his
death.
Some Kazakh intellectuals founded the national liberation movement in 1917-1918. The "Alash"
party and the "Alash-Orda" government were established to defend Kazakhstan‘s independence.
They wanted to liberate the Kazakh people from colonization and to provide them real
independence. The movement ended tragically.
Despite many uprisings, Tsarist Russia retained control over the Kazakh tribes until the Bolshevik
Revolution. Incorporated into the emerging Soviet state, Kazakhstan was made an autonomous
republic, and in 1936 attainedthe status of a full Soviet republic. With the collapse of the Soviet
Union on Dec. 16, 1991,, Kazakhstan declared its independence .
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CULTURE & TRADITIONS
Kazakhstan has been ―terra incognita‖ for the rest of the world for a long time. Kazakhstan is a huge
country located at the heart of the largest steppe on Earth. For centuries, riders have strolled along
this steppe linking Europe and Asia and mentioned a country where ―rage, attractiveness and charm
are mixed up.‖
LITERATURE
Before the 19th century, Kazakhstan had no written language of its own. Literature
took the form of long oral poems, recited by bards (aquins) in a song-like chant
and accompanied by traditional instruments like drums and a dombra, which is a
mandolin-like string instrument. Recitals and poetry contests (aitys) are still very
popular. The founder of modern Kazakh literature is said to be Abay Kunanbaev
(1845-1904 - see illustration left), a 19th century poet and writer who translated
Russian works into the Kazakh language. His main contribution to Kazakh culture
and folklore is his poetry, which expresses strong nationalism and grew out of
Kazakh folk culture. His most famous philosophic work, "Words of edification" is
said to be a spiritual commandment to the Kazakh nation. Other notable writers and poets include
Akhmet Baitursynov, Mirjaqip Dulatuli, Bukhar-zhirau Kalmakanov, Makhambet Utemisov and
many others.
Chokan Valikhanov (1835-1865), from which Kazakhstan‘s Academy of Sciences takes its name,
was the first Kazakh scholar, ethnographer and historian. A descendant of Ghenghis Khan,
Valikhanov was one of the first Kazakhs to be educated in Russian and published books and articles
devoted to the history and culture of Central Asia. Notable works include "Kirghiz (Kazakhs),"
"Traces of shamanism in Kirghiz," "About Kirghiz nomads' camp" and others containing
ethnographic data that have been used to date. He also wrote the Kazakh epic poems "Kozy-Korpesh
and "Bayan-Sulu" and the Kyrgyz epic "Manas.‖
LIFESTYLE
Astana, the Kazakh capital, and Almaty, the former capital, are modern
cosmopolitan cities . Most Kazakhs live in urban apartment blocks, houses
finished to international standards. The wealthy denizens of Astana have
often occupy penthouse flats overlooking the city and the ever-receeding
steppes. The latest important residential complex under construction - the
Abu Dhabi Plaza - is designed by Norman Foster.
TRADITIONS
The traditional dwelling of the Kazakh nomad is the yurt, a tent made from a framework of willow
wood and covered in felt, with a hole in the top to allow smoke to escape. When correctly
constructed, a yurt enables its inhabitants to stay cool in summer and warm in winter. Very few
Kazakhs still maintain a semi-nomadic existence, moving their herds and flocks to summer pastures
each year.
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MUSEUMS
Most of Kazakhstan‘s museums are found in Almaty. The Central State
Museum of the Republic of Kazakhstan was established in the 1930s and today
hosts four large exhibition halls covering hundreds of unique Kazakh exhibits
including spiritual and cultural material describing the history of the country.
The A. Kasteyev State Museum of Arts boasts over 20 thousand exhibits in its
collection (painting, sculpture, decorative art). The Museum's acquisitions program began when the
Russian Museum and the A.S. Pushkin Museum of the Fine Arts delivered 200 works by Russian
and Western masters in the 1930s. The collection traces art history from ancient to present times.
The Archaeological Museum of the Kazakhstan National Academy of Sciences and The State Book
Museum is also located in Almaty
SPORTS
As in other aspects of Kazakhstan‘s traditional culture, the
horse plays a dominant role in athletics – kokpar is a wilder
version of polo using a goat‘s carcass instead of a ball; and qyz
quu, is a chase between girl and boy on horseback.
In contemporary terms, Kazakhstan is obsessed with football.
The Kazakhstan First Division is controlled by the Football
Union and feeds into the Kazakhstan Super League, founded in
1994. Cyclist Alexander Vinokourov is perhaps the best-known
Kazakh athlete. Tennis, boxing, gymnastics, swimming and
golf are also popular.
At the 29th
Olympic Games in Beijing, Kazakhstan‘s athletes won a total of 13 medals – two gold,
four silver and seven bronze. Kazakhstan has consequently been ranked 29th among the 205
competing countries. Since its independence, the country has won an incredible 43 medals -
including 11 gold. Weight lifter Ilya Ilyin and welterweight boxer Bakhyt Sarsekbayev won gold
medals. Judoist Askhat Jitkeev, female weightlifters Irina Nekrasova and Alla Vazhenina, and free-
style wrestler Taimuraz Tigiyev won silver medals. Bronze medals were won by N. Tenizbayev and
A. Mambetov (Greek-Roman wrestling), M. Grabovetskaya (weightlifting), E. Shalygina and M.
Mutalimov (free-style wrestling), E. Shynaliev (boxing), A. Chilmanov (taekwondo).
The Kazakh delegation for the Olympics in Beijing consisted of 70 female and 62 male athletes
winning 132 qualifying licenses in 22 (out of 41) sports. The delegation included athletes from all
16 administrative territories of the Republic - and from 11 separate ethnic groups. Kazakhstan
including President Nazarbayev led a delegation of 200 officials to Beijing.
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CINEMA
Kazakhstan has a strong cinematic tradition: the first Kazakh films date back to the beginning of the
20th century and the first filming took place in 1928. These were mainly short propaganda films,
created by Russian directors and known as ―agitfilms.‖ The first Kazakh full-length feature,
―Amangeldy‖ by Moisey Levin, was made in 1938 and was also the first film with sound. It has a
narrative pattern typical of central Asian cinema, which focuses on strong and heroic characters.
Other notable early films include ―The Land of the Fathers‖ by Zemlya Ostov, ―The Balcony' by
Kalykbek Salykov,‖ ―Gift to Stalin‖ and 'The Island of Rebirth‖ by Rustem Abdrashev.
In recent years, fast-growing Kazakh cinema is
positively affected by economic growth. Kazakhstan
has submitted six films to be considered for the
Academy Awards. Since 2006, Kazakhstan has been
submitting a film every year (Fall of Otrar in 1992,
Nomad in 2006, Mongol 2007, Tulpan 2008 and Kelin
2009 and Strayed 2010). Mongol was an Oscar nominee
and Kelin made a shortlist.
From June 27 through July 1, 2010 Astana hosted the
1st Astana International Action Film Festival, which was attended by many international stars and
producers, including Dolph Lundgren, Hilary Swank, Harvey Weinstein and Mike Tyson. The event
was organized by Timur Bekmambetov, a Kazakh Hollywood producer of internationally famous
movies such as ―Night Watch‖ and ―Wanted,‖ which starred Angelina Jolie. Timur Bekmambetov is
working on many noteworthy projects in the U.S.
It is no coincidence that internationally famous producer, Mr. Steven Jaffe, was appointed as the
Honorary Consul of Kazakhstan in Los Angeles – he is already making contributions to
development of Kazakh cinema as a Hollywood director. His multifaceted career in film has
included being producer, executive producer, writer, and/or second unit director on such films as
―Ghost,‖ ―Star Trek VI,‖ ―The Widowmaker,‖ ―Strange Days,‖ ―Time After Time,‖ ―Near Dark,‖
―The Day After‖ and ―K19: The Widowmaker.‖
The Land of the Fathers (1966). A year after the end of the war, an old Kazakh man and his
grandson go through all the country to retrieve the body of a soldier who was old man‘s son from a
rural cemetery near Leningrad and to bury him in native Kazakh steppe. However as they reach a
tomb, they learn that old man‘s son lies here with his friends‘ bodies. So, the old man and his
grandson decide not to disturb him, understanding that the national grief and the national feat
brought all the people closer together.
Revenge (Mest, 1989). In the beginning of the 1940s, hundreds of thousands of Koreans that had
lived in the Russian Far East since the XIX century were forcibly displaced overnight by Stalin‘s
orders. Women, children, the elderly, were sent away with no explanation. The Korean diaspora in
Kazakhstan, with a population of more than 1 million, has been a forbidden topic for many
years. Revenge is the first film telling the story of their tragedy.
The Road (1992) by Omirbaev Darejan. A film director takes a trip to visit his sick mother, leaving
his wife and son in Almaty. The audience is exposed to his thoughts and encounters along the way.
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Highway (2001) by Sergei Dvortsevoy. Kazakhstan is seen through the eyes of a small traveling
circus.
My Brother Silk Road (2001) by Marut Sarulu. Filmed in Kazakhstan/Kyrgyzstan, four village
children embark on a difficult journey through the steppes to the railroad, which lies on the path of
the ancient Silk Route. A train meanders down the mountain and, following an argument, an artist is
unceremoniously thrown off a carriage and meets the children...
Leila's Prayer (2002) by Satybaldy Narymbetov. A powerful drama portraying a young girl living
in the Semey region in the north of Kazakhstan, where the Soviet regime carried
out 467 nuclear tests at a devastating cost to the local environment.
Little Men (2003) by Nariman Turebayev. Subtle comedy on the post-Soviet
generation in Kazakhstan, full of up-tempo music and slapstick humor. Bek and
Max, two slackers, share an apartment and the same bleak economic prospects.
When one of the two, the naive Bek, falls hopelessly in love, the incurable
philanderer Max decides to teach him about women.
The Hunter (2004) by Serik Aprimov. An allegory about the tensions between the traditional and
the new in Kazakh society. It featuresa young boy who is brought up by his stepmother and a
nomadic hunter.
Schizo (2004),Writer/director Guka Omarova's debut. Acoming-of-age film about a 15-year-old boy
(played by Oldzhas Nusupbayev) growing up in Kazakhstan in the early 1990s (see poster above).
Nomad (2006), which symbolizes Kazakh-US friendship, is a product of international cooperation
of the Kazakh movie industry and Hollywood, among others. The epic film is about
Kazakhstan‘s18th
century fight for survival against jungar invaders.
Ulzhan (2007) by Volker Schloendorff. Driven by an inexplicable force, Frenchman Charles
decides to leave his homeland and head east. When his car breaks down in Kazakhstan, he decides
to travel on foot. Destitute but happy, he wanders the steppes of Central Asia.
Racketeer (2007). An action blockbuster set in the post Soviet 1990s, it is a story of a young boxer
who decides to carve a new path for himself by diving straight into the underbelly of Almaty‘s
mafia. The film follows him as he moves up the ladder until he realizes there‘s no going back and
theres a price to pay for success.
Mongol (2008) is about the incredible destiny of Gengis Khan, or to give him his true name,
Temudgin. This legendary chief of the Mongolian armed forces was one of the greatest conquerors
in history.
Tulpan (2008) by Sergei Dvortsevoy. After having made its service in the marines, Asa returns in
the steppes to live with her sister and brother-in-law, a stockbreeder of sheep. Asa dreams of a
simple life. He sets his eyes on on a wife,Marie Tulpan. But she does not want him.
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The Gift to Stalin (2008) tells the story of a Jewish boy who in the late 1940s was saved from the
horrors of Stalin‘s GULAG human grinder by a humble Kazakh war veteran. The story takes place
in Central Kazakhstan, where the Stalin regime was preparing to test of the first Soviet nuclear
bomb. The movie is about love, human courage and tolerance.
Native Dancer (Baksi, 2008) by Gulshat Omarova. Aidai the baksy, or folk healer, uses mysterious
actions to cure the sick and to give infertile couples children. As capitalist forces begin to encroach
on tradition, the first casualty is any culture's most
fundamental inheritance - land. The healer has to leave
her land because the mob thinks the location is suitable
for a filling station. A harsh battle between supernatural
good and earthly evil ensues. Native Dancer evokes the
mysticism of fantasy and the thrills of a gangster film.
It features Neisipkul Omarbekova, a real-life Kazakh
witch doctor, in the title role.
The Strayed (2009), a psychological thriller, is about a man who goes astray on the vast steppe of
Kazakhstan. Through discussions with devil, he realizes that he went astray not only physically on
the road, but also in his life, as he slowly got involved with drug trafficking. The movie sends a
powerful message and could be seen as educational for youth about the consequences of crossing the
red lines.
Kelin (2009). Told in beautiful and poetic images without a word of dialogue, a young love
struggles to survive in the face of uncontrollable external factors. Short-listed for 2009 Academy
Awards Best Foreign Language Film.
Liquidator (2011) tells the story of a bodyguard who uncovers foul play in his brother‘s untimely
death. Actor Vinnie Jones plays a mute assassin on assignment in Kazakhstan. Jones brings solid
credentials as an on-screen thug with appearances in Guy Ritchie‘s ―Lock, Stock and Two Smoking
Barrels.‖
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ARCHITECTURE
Kazakhstan is full of architectural masterpieces reflecting its varied
history. Southern Kazakhstan is home to a number of important
Islamic buildings, including the Arystanbab Mosque (built in the
12th century) located near the ancient city of Otrar and the villages
of Talapty and Kogam, the Khoja Akhmed Yasavi Mausoleum
(14th century) in the city of Tuumlrkistan and the Aisha-Bibi
Mausoleum (10th century) in the city of Taraz.
Many new mosques have been built since independence. In the new capital, Astana, buildings were
constructed or renovated specifically for the government‘s move there in 1997. They include a
modern complex in the city‘s main square that serves as the government headquarters. The cities of
Kazakhstan also contain examples of Russian architecture such as the Zenkov Cathedral (built in
1904) in Almaty. The architecture of the Soviet period mostly took the form of drab, functional
buildings.
Khan Shatyr ("Royal Marquee") is a giant transparent tent in
Astana, the capital city of Kazakhstan. The architectural project
was unveiled by the President of Kazakhstan Nursultan
Nazarbayev on 9 December 2006.
The 150m-high (500 ft) tent has a 200m elliptical base covering
140,000 square meters. Underneath the tent, an area larger than 10
football stadiums, is an urban-scale internal park, shopping and
entertainment venue with squares and cobbled streets, a boating river, shopping centre, minigolf and
indoor beach resort. The roof is constructed from ETFE-cushions provided by Vector Foiltec
suspended on a network of cables strung from a central spire. The transparent material allows
sunlight through which, in conjunction with air heating and cooling systems, is designed to maintain
an internal temperature between 15-30°C in the main space and 19-24°C in the retail units, while
outside the temperature varies between -35 to +35°C across the year.
After the Palace of Peace and Reconciliation (2006), a giant glass pyramid in Astana, this is the
second national project designed by UK architect Norman Foster (of Foster and Partners), (Partners
in Charge Filo Russo and Peter Ridley), and UK engineers Buro Happold led by Mike Cook
Construction documentation architects are Linea and Gultekin. The construction of the tent-city is
the responsibility of the Turkish company Sembol (source: Wikipedia).
The Palace of Peace and Reconciliation (also translated as the
Pyramid of Peace and Accord) is a 77 m high building in Astana,
the capital of Kazakhstan. The structure was built by Sembol
Construction at a cost of 8.74 billion Kazakh tenge (about $58
million) and opened in late 2006.
It was designed by the British architects Foster and Partners (lead
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design). The Pyramid was specially constructed to host the Congress of Leaders of World and
Traditional Religions. A 1,500-seat opera house is built into the lower levels, with auditorium and
performance equipment design by Anne Minors Performance Consultants and acoustics by Sound
Space Design (source: Wikipedia).
Bayterek (tall poplar [tree), is a monument and observation tower
in Astana, the capital of Kazakhstan. A tourist attraction popular
with foreign visitors and native Kazakhs alike, it is a common
symbol of the city and itself in turn symbolizes Astana's new status
as the capital of Kazakhstan.
The monument is meant to embody a folktale about a mythical tree
of life and a magic bird of happiness: the bird, named Samruk, had
laid its egg in the crevice between two branches of a poplar tree.
The 105m structure consists of a narrow cylindrical shaft emeshed
in flaring white branch-like girders, widening toward the top (the
"tree"), where a gold-mirrored 22m-diameter sphere (the "egg")
containing the observation deck is supported.
The altitude of the deck is 97m, symbolizing the year of the
capital-transfer to Astana (1997). From its height it is possible to see much of the newly built city. In
addition to the observation platform, the tower contains a large aquarium and an art gallery. Astana
citizens jokingly refer to Bayterek as "Chupa Chups" because of its similarity to the popular lollipop
(source: Wikipedia).
The Ascension Cathedral, also known as Zenkov Cathedral,is a
Russian Orthodox cathedral located in Panfilov Park in Almaty.
Completed in 1907, it is the second tallest wooden building in the
world. It survived the 1911 earthquake with minimal damage.
After the Russian Revolution the cathedral was used to house the
Central State Museum of the Kazakh Soviet Socialist Republic.
From 1930 to 1940 it was used by important public organizations.
The first radio transmitters in Almaty were situated in the
cathedral's belfry.
In May 1995 control of the cathedral was returned to the Russian
Orthodox Church and it was reopened for religious services in
1997. (source: Wikipedia)
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The 28 Panfilov Heroes Memorial Park. Honours the men from
Kazakhstan who died on the battlefields of the 2nd
World War
against Nazi fascism. The monument depicts 28 soldiers of an
Almaty infantry unit who died fighting off Nazi tanks in a village
outside Moscow in 1941. The unit was commanded by Gen.
Panfilov. There is an 'eternal flame' by the war memorial where
schoolchildren put flowers on the last day of school, and
newlyweds also come to have their photos taken there.
(sources: Wikitravel and www.almaty-hotels.net ).
Abai Kazakh State Academic opera and ballet theatre by musical
performance "Aiman-Sholpan" on libretto of Muhtar Auezov. Its
success left a longlasting impact on the cultural development and
soon the entire country learned of a bright a new theatre. Presently,
it is the largest theatre in Eurasia. Its artistic team includes glorified
stage masters and young talents, winners of the various prestigious
international competitions. It world recognition and guests from all
overt the world, including the US, France, Germany, Italy, Japan and
China frequent the theater. It also hosts an annual international festival of opera and ballet.
Hotel Kazakhstan is a famous landmark building in Almaty and
serves as a symbol of the city. It is 129.8 meters tall. The building
was erected in 1970. Located in downtown, in the heart of the
cultural and business center of the city, it is ideally situated for
sightseeing, nightlife, banking and the city administration. It is a 20-
minute drive from the airport. The 26-storey quake safe construction
was recently granted listed status by the National Heritage Fund.
The hotel offers excellent view of picturesque Alatau mountain.
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CUISINE
Traditional Kazakh food is similar to that of the Mediterranean in its use of
rice, savory seasonings, vegetables, yogurt and grilled meats. The Nomadic
diet is heavy in lamb, dairy products and bread, while in the northern cities
cuisine is heavily influenced by Russia. A popular dish is qazy, a horsemeat
sausage served up with cold noodles, or the sweet plov, made with dried
apricots, raisins and prunes. Food in large towns and cities is similar to that
of any Western urban area.
SOME OF THE MOST POPULAR TRADITIONAL DISHES
IN KAZAKHSTAN INCLUDE:
KUYRDAK
(Kazakh equivalent of haggis)
Kuyrdak is served in soup-plates and covered
with greens. Usually kuyrdak is served with
taba-nan or fresh bread.
MANTY WITH MEAT
(Turkic dumplings with organic meat)
The manty are served on a plate, covered with
black pepper and served. Sometimes they are put
in deep bowls. Portions are typically 3-4
piecesand covered with broth.
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DOMALAK BAURSAK
(delicious Kazakh-style donuts)
Before serving, baursaks are laid out on a plate,
covered sour cream and castor sugar.
SAMSA
(traditional Kazakh pasty)
Samsa is usually laid out on hot forms and
sprinkled with water and then baked in an oven
at 300°C for seven minutes.
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MUSIC
CLASSICAL
Kazakhstan is home to the Kazakh State Kurmangazy Orchestra of
Folk Instruments, the Kazakh State Philharmonic Orchestra, the
Kazakh National Opera and the Kazakh State Chamber Orchestra.
The folk instrument orchestra was named after Kurmangazy, a famous
composer and dombra player from the 19th century. Other Kazakh
composers include Tattimbet, Sougur, Almaz Serkebayev, Tles
Kazhgaliev, Makhambet and Bayserke.
Marat Bissengaliev, Janiya Aubakirova and Aiman Mussakhajaeva
are famous musicians who put Kazakhstan on the musical map.
TRADITIONAL
Kazakh music is nomadic and rural, and is closely related to Uzbek
and Kyrgyz folk forms. Traveling bards, healers and mystics called
akyn are popular, and usually sing either unaccompanied or with a
string instrument, especially a dombra or kobyz. Akyn performance
contests are called aitys; their lyrics are often social or political, and
are generally improvised, witty remarks.
Traditional Kazakh music includes ensembles using instruments like
the kobyz (qobuz) or dombra, as well as kyl-kobyz, sherter, sybyzgy, saszyrnay and shankobyz; the
most common instrumental traditions are called kobizovaia, sibiz-govaia, and dombrovaia. Many
songs are connected to ancient mythology and folk religious beliefs (kui), while others were
composed after the rise of authored works (kuishi) by early songwriters (jirau) like Mahmud
Kashgari, Kaztugan, Dospanbet, Shalkiiz and Aktamberdi. The kuishi tradition is said to have
peaked in the 19th century when composers like Kurmangazy and Birjan and singers like Ahan were
active. In the 20th century, the first major star was the singer Mayra Shamsutdinova.
MODERN
Pop music in Kazakhstan has evolved since 2000. Local record
labels are signing more young musicians than ever. Talent
searches such as the project Anshi Balapan and Pop Idol spinoff
SuperStar KZ broadcast weekly on Kazakh TV have always been
an integral part of the Kazakh pop music industry.. Popular artists
include Madina Sadvaqasova, Almas Kishkenbayev, Roman
Kim, Makpal Isabekova, Kayrat Tuntekov, Rakhat Turlykhanov,
NN Bek, Nurlan & Murat, A-Studio, Musicola, Rin'Go, Pеrsy,
Chine Town, Billy Sexcrime, SuperStar, and Urker.
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WASHINGTON KAZAKHSTAN FESTIVAL 2010
EXPOSING KAZAKH CULTURE TO AMERICAN FRIENDS
The Smithsonian Institution, with the Embassy of the Republic of Kazakhstan, has organized the
Washington Kazakhstan Festival 2010 to celebrate Kazakhstan‘s rich cultural heritage through a
series of events held in locations throughout Washington, D.C, April 14 through Dec. 31. The
Festival, structured around the Chokan Valikhanov online exhibition, was generously sponsored by
the Chevron Corporation.
ABOUT THE VALIKHANOV ONLINE EXHIBITION
Kazakhstan Explored: The Expeditions of Chokan Valikhanov
www.valikhanov.si.edu
Chokan Valikhanov (1835-1865) is often considered the ―father of
Kazakh historiography and ethnography.‖ This new Smithsonian
online exhibition begins a multi-year project to present the scientific
accomplishments, along with translations of expedition records, of
this great 19th-century Kazakh geographer and ethnographer.
FESTIVAL OPENING EVENT
PERFORMANCES AND EXHIBITIONS
The Washington Kazakhstan Festival 2010
launch event on April 14, 2010, at the
Smithsonian American Art Museum‘s Robert
and Arlene Kogod Courtyard, featured a range of
traditional and modern performances and events,
including music performances by the Kazakhstan
Presidential Orchestra, the Youth Jazz Ensemble
from the Kazakh National Academy of Music
and Ulytau folk-rock band, exhibitions of gold
and traditional crafts of Kazakhstan, and
contemporary art by Kazakh-born artist Marina
Sharipova (MAKE).
Throughout 2010, the Festival featured exhibitions, musical performances, a week of Kazakh
cinema, lectures on Kazakhstan and much more. Please follow the Embassy of Kazakhstan website
(www.kazakhembus.com) and the Smithsonian newsletters for more information.
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EDUCATION
After its independence from the Soviet Union, Kazakhstan was hit
by a major economic depression that cut "public financing" for
education in the country. It dropped from 6% of GDP in 1991 to
about 3% in 1994, before rising to 4% in 1999. Elementary- and
secondary-school teachers were severly underpaid; in 1993 more
than 30,000 teachers (or about 1/7 of the 1990 teaching staff) left
education, many of them to seek more lucrative employment.
In 1994, Kazakhstan had 8,575 elementary and secondary schools
(grades one through twelve) attended by approximately 3.2 million
students, and 244 specialized secondary schools with about
222,000 students. In 1992, about 51 percent of eligible children
were attending some 8,500 preschools in Kazakhstan. In 1994, some 272,100 students were enrolled
in the republic's 61 institutes of higher learning. Fifty-four percent of the students were Kazakh, and
31 percent were Russian.
Kazakhstan's 1995 Constitution provides mandatory, public secondary school education. Citizens
compete for institutions of higher learning. Private education is increasing in the country, with about
5% of students enrolled in the private schools, which arelargely under arbitrary state control.
Primary school
Primary school in Kazakhstan starts at age 6 and runs from one to five years. Classes typically run in
two sessions, from 8 a.m. until 1 p.m. and from 1 p.m. until 5 p.m., with students either going to
class in the morning or in the afternoon. All primary schools are state-owned; access to primary and
secondary education is a constitutionally protected right.
Primary school is provided free to all citizens and residents of Kazakhstan and parents typically only
pay for extra-curricular activities such as sports or music programs. Parentssometimes pay for lab
equipment or other special equipment.
Lower secondary school
Students continue in lower secondary school from grade five through nine. This roughly
corresponds to junior high school, or middle school, in the U.S. Typically a student in year eight is
14-15 years old. The curriculum is a general education curriculum covering subjects like literature,
students‘ first language, Russian or Kazakh language (depending on the language of the school in
general), history, physics, mathematics, biology, chemistry, foreign language, and so on.
Higher secondary school
Once leaving lower secondary school, there are three tracks available. Students are free to choose
any track of higher secondary education but are required to pursue one track. Graduates of all three
tracks are eligible to enter university.
The first track is a general secondary school which covers grades 10 -11 and provides general
education on a variety of subjects.
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In addition, there are two curriculum tracks for vocational education: Initial vocational education,
which is provided by training schools and lycees, and secondary vocational education provided by
colleges and trade schools.
Initial training schools are designed to train students in a skilled profession. The program is usually
two or three years in length, (typically ages 16 – 18), but for some professional training requires a
four year program. Students who graduate can go on to college for advanced vocational training or
attend university. The state provides costs of education from the budget.
Colleges provide both academic general education and advanced vocational education. Colleges, if
licensed, can also provide initial vocational education. Programs last for three or four years (grades
10, 12, 13). Accelerated programs exist for students who have already completed both general
secondary education and initial vocational training in the same field. Graduates may go on to
university or may begin working. As of the 1999 Budget Law, colleges are state-owned and self-
financed. In principle, however, all compulsory education (primary and secondary) is provided free
of charge.
The curriculum for both primary and secondary school is established by the Ministry of Education,
with little choice left up to the individual schools. Textbooks are sold in bookstores throughout the
country and are purchased by the students themselves.
Like primary school, secondary school is subsidized by the government and parents only pay for
extra-curricular activities and sometimes lab equipment or other special equipment.
Tertiary Institutions The universities, following the Russian system, focus entirely on teaching and do not engage in
research. Students who are accepted to university at any level apply under a specific major, and the
curriculum is set by the university (according to State legislation) for each major. For example,
economics majors will all study in the same courses in the same order, separate from English majors
who have a different curriculum. Some courses are required. Students may switch majors but
typically classes do not transfer so students are expected to reenter in the new major as a new first
year enrolee. .
The government is currently pursuing a program to adopt a credit system that would allow students
to studyabroad more easily. It is also consideringexpanding the curriculum to include electives and
student-chosen courses.
There are four levels of tertiary education in Kazakhstan:
- Bachelors degree, which is typically a four-year degree
- Specialist degree , which istypically a five-year degree and more intensive than the bachelors
- Masters degree,a two-year degree, roughly corresponding to the Western masters;
- Doctoral degree, which istypically a five-year program.
Universities are usually headed by a rector, appointed by the President of Kazakhstan, who wields
considerable authority over the institution, approving all decisions including curriculum, personnel
and admission. Kazakhstan universities are more centralized than their Western counterparts.
The top two universities in Kazakhstan are al-Farabi Kazakh National University in Almaty and
Eurasian National University located in Astana. Karaganda State University is also well-regarded.
In addition, there are a few international universities such as KIMEP, which is a joint program, 40%
owned by the government of Kazakhstan, but education is based on the Western system. The
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Kazakh-British Technical University and the Kazakh-American University represent joint projects
between Kazakhstan and the UK and the U.S., respectively. In all three institutions, the language of
instruction is English. The University of Central Asia, founded jointly by the Governments of
Kazakhstan, Kyrgyzstan and Tajikistan and by the Aga Khan, is affiliated with the Aga Khan
Development Network. Private universities, typically for-profit institutions, are subject to the same
regulations related to curriculum but are free to set tuition and salaries as they see fit. Public
universities are subject to the same regulations as other government-owned institutionsrelated to
fees and salaries, administrative structure, contracting and subcontracting, and ownership of
property.
State-owned universities receive funding if their enrollment reaches 86,000 students or 34%. A
small number of universities are financed through a budget line in the Republic budget, such as art
academies or international universities.
KAZAKHSTAN‟S EDUCATION AND TALENT ON GLOBAL MAP
85% of the population ages 5-24 years are enrolled in education
30% of citizens are involved in the system of education and science, which includes:
• 4.4 million students
• 405,000 employed teachers and scientists
4,568 preschools and 7,576 secondary schools as of Nov. 1, 2009
From 2001 to 2008, 1,776 preschool education facilities were in operation
From 2004 to 2008, 263 new schools were built, including 170 in rural areas;
(Source: Ministry of Education of the Republic of Kazakhstan)
At the beginning of 2009, 143 higher educational establishments were in operation in the
country, including 51 state and 92 private educational facilities. The total number of students in
2008 was 768,000, 25.2% of whom received higher professional education, 73.8% received
bachelor‘s degrees, and 1.0% received higher scientific and pedagogical education;
Kazakhstan was ranked 1st in Asia by the Education for All Development Index, 2008;
(Source: Asian Development Bank)
Kazakhstan ranked 1st in the world out of 129 countries, followed by Japan, Germany, UK,
according to the Norway by the Education for All Development Index (EDI); (Source:
Education for All Global Monitoring, Report 2009, UNESCO)
Kazakhstan ranked 10th
in the world in adult literacy (ages 15 and above) with 99.6%;
(Source: Human Development Report 2009, UNDP)
The Trends in International Mathematics and Science Study, TIMSS 2007:
(Project by International Association for the Evaluation of Educational Achievement, directed
by the TIMSS & PIRLS International Study Center at Boston College, conducted every four
years among 4th
and 8th
grade students)
• In Mathematics (4th
grade) – Kazakhstan students ranked 5th
in the world;
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• In Science achievement (4th
grade) – Kazakhstan students ranked11th
in the world;
The International Mathematical Olympiad (World Championship Mathematics Olympiad for
High School students held annually):
• Kazakh students team ranked 27th
out of 104 teams at the 2009 Olympiad held in
Germany;
• The International Mathematical Olympiad of 2010 will be held in Astana,
Kazakhstan.
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BOLASHAK (FUTURE) SCHOLARSHIP
Reformation of the educational system by opening it up to the world
knowledge and experience, scientific and technological
achievements by training highly qualified professionals with the
best managerial skills always helps to transform the society into a
progressive and democratic one. Post World War II Japan, Turkey,
Hong Kong are just some of the convincing historical examples of
economically and politically viable states that have benefited from
having advanced educational systems .
The leadership of the newly formed Republic of Kazakhstan
recognized that in 1991 when it was faced with economic turmoil,
social inefficiency and a legacy of environmental disasters left by
the Soviet Union. With a huge stockpile of nuclear weapons, the
leadership of Kazakhstan had a choice: empowerment through force
and dictatorship, or prosperity through disarmament and democracy.
Kazakhstan President Nursultan Nazarbayev chose the latter, and today Kazakhstan is emerging as a
player in the global economy, and an advocate of regional and world stability.
In 1993, Kazakhstan was the first Central Asian country to launch a presidential scholarship
program "Bolashak" for international study. "Bolashak," which means "The Future" in Kazakh,
peaks to the importance Kazakhstan puts on educating itsyouth at the best universities of the world.
The Decree of President of Nazarbayev on Nov. 9, 1993, says:"In Kazakhstan's transition toward a
market economy and the expansion of international contacts, there is an acute need for cadres with
advanced western education, and so, it is now necessary to send the most qualified youth to study in
leading educational institutions in foreign countries."
The program is designed to train future leaders in business, international relations, law, science,
engineering and other key fields. Upon completion of their programs, scholarship recipients return
to Kazakhstan to perform government service for a period of five years.
The rigorous criteria for Bolashak scholars and the highly competitive nature of the selection
process assure that only the best students, who represent Kazakhstan's most promising young
leaders, are selected. The Bolashak program is fully funded by the Government of Kazakhstan and
overseen by the Ministry of Education and Science.
This program is a top priority of President Nazarbayev' s as he looks to develop and modernize the
country and move toward a full democracy . That is why it is not an accident that most Kazakhstan
students are sent to be trained in the United States. "We are learning from the positive example of
American democracy", President Nazarbayev says.. There was a clear understanding that the
Kazakhstan nascent democracy would not be sustained without a strong educaton system. Currently,
50 "Bolashak" Scholars are successfully studying at leading U.S. universities and have proven to be
excellent students and representatives of Kazakhstan.
Since 1994, hundreds of Kazakhstan students have successfully completed their Bachelor's and
Master's degrees under the Bolashak Scholarship program at the best Western universities; more
than 400 students are graduates of the leading U.S. universities includingas Harvard, Massachusetts
Institute of Technology, Columbia, Duke, Georgetown, Emory, Carnegie Mellon, Indiana
University, Vanderbilt and many others.
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NAZARBAYEV UNIVERSITY
VISION
To create a prestigious, highly regarded international
university in the capital city of Kazakhstan employing
the best local and foreign professors to develop the
intellectual scientific, technical and engineering elite
of the country
MISSION
Contributing to Astana goal of becoming the center of
science, education and culture in Eurasia.
Advancing the science and educational system of Kazakhstan to international standards.
By the decision of the President of the Republic of Kazakhstan the New University of Astana will
carry the name "Nazarbayev University."
History of the University
―The New University is a very important national project that will have global systematic effect on
development of our country and will benefit all the citizens of our country.
The New University will be positioned to become the national brand by harmoniously combining
national identity, best international model of education, science and research practice.
The international partners will assist the New University in developing degree programs and
developing a quality assessment system of teaching.
Specialties taught at New University are determined by the priorities of the Kazakh economy. The
University will prepare the best technical and engineering specialists for the industries already
developed in Kazakhstan. A range of programs will prepare research specialists in new fields such
as genetics, biochemistry and biophysics. We should have clear understanding of career
development of each student for that.‖
From the speech of President Nazarbayev at the session of the Committee on Science and Research
Politics in Kazakhstan. Sept. 4.
The strategy for the University development 2010-2012 was approved on October 17, 2009 at the
first meeting of Board of Directors of JCS ―New University of Astana‖ chaired by Prime Minister of
Republic of Kazakhstan K. Masimov
The academic and research policy of the University presumes that each school within the University
will have an international academic partner among the leading universities in the world with
strong research, clinical and industrial base. This will allow Kazakhstan to integrate education,
research, and industries and help to achieve the objectives for the development of the country.
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Realization of the ―New University of Astana‖ project will give young Kazakhs the opportunity to
receive a superior education.. The highest standards apply to programs, academic staff, facilities and
equipment, methods of teaching and level of research activities.
―Three research centers will be created within the ―New University of Astana‖ project.
Center of Life Sciences will undertake joint research projects with leading world research centers in
the transplantation of organs, artificial heart and lungs, stem cells and age prevention medicine.
Center for Alternative Energy will focus on issues of renewable energy, physics and techniques of
high energies.
International Instrumentation Center will be an engineering center, laboratory base and
constructor bureau.‖
From the Address of President Nazarbayev to the nation. ―New decade –new economic growth –
new opportunities of Kazakhstan‖ Jan. 29, 2010.
Strategic goals
The goals for the University are:
Formation of a new generation of professionals capable of creating and developing new
trends in science and technology
Create a model of integration of education, research and industry promote sustainable
development of national economy and support knowledge-based economic diversification
Build a culture of global awareness through an international curriculum and cooperative
relationships with world institutions of higher education
Create modern technological infrastructure to provide collaborative learning environment
Deliver joint research projects with world-class universities scientific research centers
Develop and maintain a strong professional community among faculty and enhance local
capacity of teaching professionals
Enhance the national and global prestige of the University
Management
Board of Directors is presided over by the Prime Minister whose members are national government
and business leaders. It is responsible for long-term and strategic planning and overall development
of the project. It supports and reviews the performance of the Executive Body and approves annual
budgets. Members of the Board of Directors are appointed by the Government Decree.
International Advisory Council
The International Advisory Council (IAC) provides advisory support work. The IAC is composed of
widely-respected scholars, researchers and academic leaders in addition to leaders from the public
and private sector. Members of the Council will be selected on the basis of their leadership skills,
expertise and experience in scientific, technical, business and academic domains. The Council will
work on issues related to educational and research services provided at the initial stage, as well as
other issues concerning the activities of the university.
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Faculty members
Employment of faculty members will be determined by a joint hiring process with our partner
university and the New University of Astana. The best national and international researchers will be
invited to work at the university, where they will be provided with all necessary conditions for their
creative activity.
There was a signing of cooperation agreement of the New University of Astana and University
College London (UCL). The Foundation program is scheduled to begin in September 2010. More
than 50 teachers of University College London will be delivering classes for our Foundation
program at the university.
Finance
Effective financial policies will provide stability for the university and will help the New University
meet its future objectives. In the long-term, the financing of the university will be provided from the
following sources:
Financing the research and development by the state and industrial customer (specialized
ministries and national companies)
Investment income from the endowment fund
Tuition payment
Non-governmental and international organizations‘ scholarships for fundamental research
Donor assistance from the private sector, including the university alumni
Additional services payment, which is provided for other organizations
Partners
The New University of Astana cooperates with several leading universities globally ranked in the
top 30 universities of the world.
Students will have the opportunity to study abroad at the university of our academic partner for one
semester and up to 2 years in some of our programs.
The agreements on the development strategy of the New University of Astana were signed with the
following partners:
UCL (University College London) to set up the Foundation Program – first year of the
undergraduate programs (basic education)
PHMI (Partners Harvard Medical International Inc.) to set up the Medical School
Duke University to set up the Graduate School of Business
iCarnegie to set up the School of Natural Sciences
University of Wisconsin-Madison to set up the School of Social Sciences and Humanities
UPMC (University of Pittsburgh Medical Сenter) to set up the Center of Life Sciences
UPenn (University of Pennsylvania) to set up the Center for Education Policy
Infrastructure
The architectural design of the New University is very modern and uses the latest in Information
Techonologies (IT). A significant feature is that all educational buildings are connected by common
axial atrium with internal passages, which creates the architectural unity of the complex. The service
of the laboratories and other buildings will be done through a round road surrounding the entire
building.
The New University building will come into operation in several stages.
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University Campus
Nine buildings are connected by a single atrium
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TOURISM
The Republic of Kazakhstan pays special attention to the
development its of tourism.
Kazakhstan has signed tourism agreements with Turkey, Iran,
Xinjang Uigur Autonomous Area of China, Moldova,
Hungary, the State of Israel, Kyrghyzstan and Egypt. In 1993,
the Republic of Kazakhstan became a full member of the
World Tourism Organization.
The agency that is in charge of state management of the tourism industry is the Ministry of Sports
and Tourism. There is a Law ―On Tourism‖ enacted in 1992.
It embraces virtually all types of tourism and specifies legal,
economic, social and organizational fundamentals of tourism
activities. As a matter of fact, Kazakhstan provides for all
varieties of tourism - cognitive, , ethnic, ecological,
rehabilitative, youth-oriented; they also include entertainment
and athletics such as hunting, equestrian activities.
There are more than 700 travel routes around the territory of
Kazakhstan.
The Republic of Kazakhstan is well-known for its unique
natural and geographic diversity.
South-Kazakhstan (Almaty, Jambyl, South-Kazakhstan and Kyzylorda regions) is an area rich with
history and culture, featurefamous medieval monuments and mausoleums such as Aisha-Bibi,
Karakhan, Babadzha-Khatun in Taraz and an architectural ensemble of Khodja Akhmet Yasavi in
Turkestan. Other unique sights includeScythian burial mounds in Semirechje (Almaty region). It is
also home to the world-famous space-vehicle launching site Baikonyr. The region also offers
opportunities for recreation, rehabilitation, hunting, skiing and skating.
West Kazakhstan (Aktobe, Atyrau, Mangystau regions) sits at the crossroads of the European and
Asian continents in the basin of the Caspian Sea, the Volga and the Ural. It is the location of the
world‘s second deepest depression - Kargije lies 132 m below
sea level. The area is rich good for hunting, angling andwater
sports. It is also home to the monuments of ancient Mangyshlak
and Ustyurt.
North Kazakhstan (Kostanay, North-Kazakhstan and Pavlodar
regions). Everything here - landscape, climatic conditions -
favors recreation.
It features the health resorts of Kokshetau, Bayan-aul, Muyaldy
and natural preserves of Kurgaldzhino and Naurzum
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Central Kazakhstan (Karagandy region) is home to one of the largest lakes of the world - the lake
of Balkhash. The area features various archaeological and ethnographic relics.
East Kazakhstan is represented by the Altai and its wooded foothills, the river of Irtysh and such
lakes as Zaisan, Markakol, Alakol, Sauskan. Its Semipalatinsk region is the birthplace of the great
Kazakh poet Abay Kunanbaev and writer Mukhtar Auezov.
EXCITING OUTDOOR ACTIVITIES IN KAZAKHSTAN
Spas: Kazakhstan has a wide range of spas offering various treatments. There are 98 sanatoria
holiday hotels and 115 preventative medicine sanatoria. Many are also located in areas that feature
sports, cultural events and historical and archaeological sites.. The most internationally renowned
resorts include Sari Agach (in the south), Mujaldi (in the Pavlodar region), Arasan-Kapal (in the
Taldikorgan region), Jani-Kurgan (in the Kzil-Orda region), Kokshetau and Zerenda (in the
Kokshetau region) and those located in Zaili Alatau.
Zaili Alatau Moutains: The 4000m-high (1310ft) Zaili Alatau Mountains near Almaty offer
numerous opportunities for sports and recreation. The Medeo ice rink is situated 15km outside the
city in a stunning gorge. It attracts walkers and climbers in summer and skiiers in the winter.
The Tian Shan Mountains: Tian Shan, or "Heavenly Mountains," in the southeast of Kazakhstan,
stretch for more than 1500km (932 miles). The highest peaks are Pobeda Peak (7439m/24,406ft) and
Khan-Tengri Peak (7010m/23,000ft), a snow-white, marble-like pyramid. The huge Inylchek
Glacier, spanning almost 60km (37 miles) in length, splits the summits and at its center lies the
beautiful Mertzbakher Lake. The Kolsai Lakes are three blue mountain lakes, known as the ―pearls
of the northern Tien-Shan,‖ that lie within the ridges of the Kungei Alatau range at heights of up to
2700m above sea level. The Khan-Tengri International Mountaineering Camp offers experienced
mountain guides to take visitors on organized climbing and trekking programs. Horseback riding is
also available.
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SAMPLE ROUTES OFFERED TO TOURISTS IN KAZAKHSTAN
Explore the nature of South Kazakhstan
Mangystau Safari
This area is home to the
Talass Alatau, southern
steppes and lakes and
sandy and clay deserts.
Visitors can enjoy 1 to 16-
day programs including an
intensive program that
features Aksu Canyon and
Kishi Kaiyndy, the western
Tien Shan and Karatau
Mountains, Mashat, Sairamsu, steppe lakes and
deserts. .
Aksu-Zhabagly National Park:
Aksu River Canyon:a 500m deep
tectonic fault that spans 700-800m
across.
Kishi Kaiyndy Tract: an area featuring a
largeforest, flowers and beautiful
landscapes.
Steppe Lakes
Bilikol Lake: a lake home to herons,
bitterns, black and white storks,
sandpipers, terns, gulls and many near-
water sparrow birds (rush bird, penduline
tits, pipits and wagtails)
Taskol and Darbaza Lakes: typical
Central Asian lakes.
Mashat Gorge
A favorite recreational area; a holy place
for Kazakhs. Madantal River Valley
This vast valley features a full-flowing
mountain river. The backdrop is a
mountain range of 4,000-meters-high
snow peaks. Alpine meadows and long-
tailed marmot colonies are can also be
found there.
In addition to the
Mangyshlak
Peninsula, the
Mangystau Region
occupies a
significant part of
the Usturt Plateau
and the southern
Caspian
Depression – Buzachi Peninsula. It is home to
more than 16 million hectares of natural
deserts and semi-deserts. There are several
landscape zones here:
Caspian shoreline with many canyons
and ravines
Karatau Mountain Range
Chalk and limestone chinks (breaks) and
residual mountains
Sand massifs
Clay and solonetzic dry lake floors and
depressions, including Karakiya Depression –
second deepest in the world
Vegetation is rare here. The Mangyshlak
Peninsula is a good area to study sedimentary
rocks.
The Caspian Sea borders the Mangyshlak
Peninsula from three sides. Here one can
observe a slight increase in humidity in
summer.The hottest period is between mid-
July to mid-August. The autumn frost begins
in late October and the spring frost ends in
early April.
The Mangyshlak and Usturt snow cover is
minimal (3 to 7 cm).. Humidity in the area is
40 percent to 60 percent.
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AIR ASTANA
Air Astana (airline code ―KC‖), the fast growing national carrier of
Kazakhstan, began participation in the U.S. Airlines Reporting
Corporation (ARC) in late July 2007. By joining, , all 22,100 ARC
accredited travel agents across America can issue Air Astana tickets
between the U.S. and Kazakhstan and beyond.
Air Astana, while not yet offering flights to the U.S. , has an extensive network of air services
through its partner airlines – allowing it to offer service through
cities such as New York, Washington, Los Angeles, Denver,
Minneapolis, Chicago, Detroit, Atlanta, and Miami. This network
connects the Air Astana hubs of Almaty, Astana, and Atyrau
through numerous European, Asian and Middle-Eastern gateways,
including London Heathrow, Amsterdam, Frankfurt, Hanover,
Moscow, Bangkok, Seoul, Beijing, Delhi and Dubai.
Air Astana has extensive reciprocal ticketing agreements, allowing
you to combine its services with more than 70 of the world‘s airlines, including Lufthansa, KLM
Royal Dutch Airlines, Northwest Airlines, United Airlines, Virgin Atlantic, Asiana Airlines and
Aeroflot.
The Air Astana fleet consists of 18 aircraft including Boeing 767s, Boeing 757s, Airbus A320s,
Airbus A321 and Fokker-50 aircraft. Air Astana has plans to increase its fleet size to a total of 34
aircraft by 2014.
The average age of Air Astana‘s jet fleet is only six (6) years.
Air Astana Office Opens in New Jersey
Air Astana recently opened an office in Jersey City, New Jersey to support travel agents and
passengers.
Air Astana 285 West Side Avenue, Suite 277-278
Jersey City
New Jersey 07305
USA
Toll free: 888 855 1557 Email: [email protected]
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Air Astana Call Centres
Astana: + 7 7172 210764
Almaty: + 7 7272 703094
Aktau: + 7 (7292) 511 565
Aktobe: + 7 (7132) 548 501
Atyrau: + 7 (7122) 255 340
Karaganda: + 7 7212 561208
Kostanay: + 7 7142 546875
Kyzyl-Orda: + 7 72422 70392
Uralsk: + 7 (7112) 515 151, 507 079, 515 044
Oskemen: + 7 7232 243233
Pavlodar: + 7 7182 320091
Shymkent: + 7 7252 549861
New Jersey: 1-866-8888-164
Amsterdam: + 31-20 44 66 354
Moscow: + 7 (495) 980 71 84/85
Dubai: + 971 4 316 6572
Beijing: + (8610) 646 510 30
Germany: + 06105-206022
Bangkok: + 66-2-251-4700
Seoul: + 82-2-3788-0170\1\2
London: + 44 (01293) 596622 Delhi: + 91-11 515 214 25
Frankfurt: + 49-6105 20 60 22
Hanover: + 49-511 977 2476
Istanbul: + 90-212 343 49 60
Air Astana Reservation and Ticketing Offices in Kazakhstan -
c\o OtrarAvia, General Sales Agents for Air Astana
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Astana
9, Republic Ave., Astana, Kazakhstan
Tel.: +7 (7172) 210 764, 210 765, 210 771
Fax: +7 (7172) 216 742
e-mail: [email protected]
Almaty
73, Gogol Str., Otrar hotel, Almaty,
Kazakhstan
Tel.: +7 (7272) 588 202, 58 206
Fax: +7 (7272) 588 215
e-mail: [email protected]
http://www.group.kz
Almaty International Airport
Tel.: +7 (7272) 572 707, +7 701 318 0331
Aktau
39-A, Micro District 8, Aktau, Kazakhstan
Tel.: +7 (7292) 512 767
e-mail: [email protected]
Aktobe
46, Abulkhair Khan Avenue, Nurdaulet
Business Centre,
Aktobe, Kazakhstan Tel.: +7 (7132) 548 503
Tel.\Fax: +7 (7132) 548 501
e-mail: [email protected]
Atyrau
2, Abay Str., Atyrau, Kazakhstan
Tel.: +7 (7122) 255 345
Tel/Fax: +7 (7122) 255 340
e-mail: [email protected]
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MAJOR CITIES
ASTANA – THE NEW CAPITAL FOR THE NEW MILLENNIUM
Astana, the capital of Kazakhstan, is developing at an
impressive clip: 1,700 cranes are in operation on 650
separate sites in a city which just a decade ago, had a
population of only 280,000. Today it is home to about
700,000 residents.
Construction projects in Astana total KZT 1.5 trillion –
dwarfing that being spent in Dubai, Brasilia and
Canberra. All the new projects bear the mark of
President Nazarbayev.
In 1994, the president decided the capital of Kazakhstan
would be moved here from Almaty. In 1997, the city‘s name – briefly Akmola and before that
Tselinograd - was changed to Astana — which means ―capital.‖
On the right bank of the city is the building site of Khan Shatyry – a spectacular and unique, fully-
functioning indoor city for 10,000 people designed by Norman Foster (celebrated for Beijing‘s new
airport and the transformation of the Reichstag). This immense structure – an area larger than ten
football stadiums – will feature schools, hospitals, shops, sports and concert halls. Vehicle use will
be prohibited; individuals can travel throughout the complex via its canals. . The upper floor of
Khan Shatyry will feature a jungle, a beach and a body of water.
Foremost among the completed large-scale buildings is the Baiterek Tower or ―Tree of Life.‖ It
stands midway down the length of a 1.5 km-long boulevard lined with flowerbeds, sculptures and
fountains. Large buildings line either side of this thoroughfare: a national archive resembling a giant
egg, a pair of 30-story cones in gold mirror glass and a trio of towers. The Baiterek Tower was
completed in 2002. It is 97m high (a figure that reflects the year in which Astana became the
capital). The Kazakhs have dubbed it ―The Big Chupa Chups‖ for its resemblance to a lollipop. A
lift ascends to an observation deck with a platform that supports a triangular gold ingot featuring
President Nazarbayev‘s handprint . The tower has become
a symbol of Kazakhstan much like the Eiffel Tower in
France.
In 1998, President Nazarbayev envisaged a permanent
structure to house the Congress of World Religions (which
takes place triennially in Astana). There was a site -
directly opposite the presidential palace- and a timeframe -
it had to be ready by 2006. The President had been thinking
about the form that this ―Palace of Peace & Accord‖ should
take. He decided a pyramid would be suitable and
contacted Norman Foster to design it. The pyramid, 62m wide 62m long, includes 1,500-seat
auditorium that functions as a performing arts venue. Blue and yellow light permeates the cathedral-
like interior of the pyramid. On level six there is ahanging garden and a wide oculus. It also features
stained glass windows by Brian Clarke.Nearly 2,000 workers and the Kazakh army constructed the
building.
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In 2009, several new buildings were
unveiled in Astana: a new bridge across
the Ishim River, an outpatient medical
facility, four monuments, a housing
complex for veterans and senior citizens.
A number of overpasses and roads were
also completed.
An additional two bridges are under
construction, as well as 22 schools, a
medical cluster, a 3,500-seat concert hall
by the Italian architect Manfredi Nicoletti
and a 3km-long Green Water Boulevard. Groundbreaking ceremonies were held to celebrate the
start of construction onthe Nokian tires plant and theNissan and General Electric assembly facilities.
Also recently constructed were a light rail line (with a line to the airport). Landscaping work is also
underway to make Astana greener: 400 hectares will be transformed into parks and squares and
40,000 hectares of forest have already been planted around the city..
Japanese architect Kisho Kurokauwa designed much of the city plan, carrying out President
Nazarbayev‘s vision. ―Our plans for Astana are grand‖ the president said. ―The heart of the nation
beats here. And I believe that the greater part of the city will be completed by 2012.‖
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New Horizons in Kazakhstan
Christopher Robbins, Lonely Planet Magazine, in association with InArts & Architecture
Photographs Eric Lafforgue
March 17, 2011
‗I hate this city, I hate this city, I hate this city!‘ For
the first six months after moving to Astana –
Kazakhstan‘s spanking new capital built by
presidential decree in the middle of the country‘s vast
empty steppe – Akmaral Aidarbekova complained
bitterly about the place on a daily basis. The
pavements were unfinished, forcing pedestrians to
wade through deep puddles of melting snow, and there
was nowhere to go and nothing to do. The weather was
extreme too, with bitterly cold winters that dropped to
-40°C and baking hot summers that soared to over
40°C.
A young, single woman in her midtwenties working as a lawyer in the Ministry of Finance,
Akmaral had been obliged to relocate north from the old capital Almaty, like thousands of other
government employees. ‗I was not happy to come here,‘ she says. ‗I arrived on Valentine‘s Day in
2000 and it was so windy, I was nearly knocked over. And it was so cold. February is the month of
the buran – snow blizzards which last for two or three days. I was worried that the whole winter was
going to be the same.‘
The decision to make Astana the capital was taken in July 1994, and the move began three
years later. As Peter the Great built St Petersburg on a swamp and Philip II of Spain turned a dusty
village into Madrid, so Nursultan Nazarbayev, the president of Kazakhstan, decreed that a rundown
steppe town bang in the middle of nowhere should be transformed into the nation‘s capital. The city
chosen for the world‘s greatest architectural makeover had previously been in long decline,
inhabited largely by a Russian population of impoverished agricultural workers. Its concrete tower
blocks were crumbling, the peasant housing like slums, and the infrastructure chronically rundown.
Not to put too fine a point on it, the place was an absolute dump.
Suddenly, tens of thousands of government employees had to move north as various
ministries transferred sections of their operation to the city over a period of two years. No capital
has ever been relocated in such a short time. The president explained the rationale by saying that
Almaty had grown from a manageable population of 400,000 to 1.5 million, and had simply run out
of space to expand. The city‘s mountains, while providing a beautiful backdrop to the old capital,
helped to trap pollution. On top of this, Almaty was prone to earthquakes. Geographically, the old
capital was in the extreme southeast corner of the country, near the border with China, and cut off
from the rest of the republic. The rich oil fields of the Caspian Sea lay over 1,800 miles to the west,
while there were unstable neighbours less than a couple of miles to the south. Astana, on the other
hand, was perfectly placed in the very centre of the country.
But even the president, when planting a tree in the early days of the city, conceded: ‗It is
windy up here, isn‘t it? It certainly is windy.‘ Later, he would try to put a patriotic spin on the new
capital‘s harsh climate: ‗This is normal weather for this place. It is the weather of our native land
and of our forefathers.‘
‗It took me about three years to change my mind about Astana as the city changed around
me,‘ says Akmaral. She married and moved into a modern apartment. ‗Now it feels like a real city,
with cafés and restaurants and parks, with lots of things to do,‘ she says. ‗I don‘t even mind the
winter now – it‘s cold but also dry, and there are beautiful sunny days.‘
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‗I didn‘t mind coming here,‘ says Akmaral‘s husband Maghzhan – known to his Western
friends as Mac. ‗I felt very good about being at the beginning of something, involved in building a
new capital for my young country. It felt like being part of the future rather than the past.
Astana‘s architectural style can best be described as idiosyncratic.
The variety is a dizzying mix of clashing shapes and colours, yet is oddly
suited to a nation made up of 100 ethnic groups following at least 30
different religions. The oriental post-modernism takes some getting used
to, although the locals have domesticated all the thrusting modernity by
giving many of the buildings homely nicknames according to their shape:
a canary-yellow skyscraper is known as the Banana Building; seven squat
cylindrical constructions are called the Seven Beer Barrels; and a pair of
circular towers are the Ice Cream Cones. The Cigarette Lighter was so-
called before it suffered an alarming fire. Inevitably, such an ambitious
building project has had its failures: one building is known as the Titanic
after a huge crack appeared in its foundations; another, threatened by a
crumbling riverbank, has been dubbed the Kursk after the ill-fated
Russian submarine.
The Ministry of Finance building gives the impression of a dollar sign, while the sweeping
curves of the new stadium look, well, sporty. The National Archives are housed in a grey-green egg,
the circus in a flying saucer, and there are now massive, California-style shopping malls, 24-hour
supermarkets and numerous cafés and restaurants. But so far, no McDonald‘s or Starbucks. ‗We‘ll
survive,‘ says Mac.
New religious buildings stand among government ministries and banks – a spectacular
mosque donated by Qatar; a big blue synagogue paid for by a Jewish Russian Orthodox cathedral
built by public subscription. The miracle is that everything has been built in little over a decade.
In the centre of the city stands Baiterek Tower, a tall, spiky construction that cradles a glass and
aluminium ball at its top. It‘s the symbol of Astana and independent Kazakhstan, people take its lift
up 97 symbolic metres – 1997 being the date of the move to the capital – to the dome for a clear
view over city and steppe in every direction. Once at the top, it‘s customary to approach the green
malachite plinth that sits in its centre, upon which rests a disc made from five kilograms of solid
silver bearing an imprint of the president‘s hand crafted from two kilograms of solid gold. Visitors
then place their own hand in the president‘s palm before making a wish.
On my visit I am led to the plinth by a guide and dutifully place my hand in that of the
president – and almost jump out of my skin. Before I can wish, and as I make contact with the
presidential palm, the tower is filled with a roaring choir backed by a mighty orchestra belting out
the national anthem at full patriotic throttle.
There is a panoramic view of the city from the tower and, in the distance, the vast wedding
cake of domes and pillars of the Presidential Palace. The palace is a place of work and not a
residence, designed to impress with its ostentation and size. Its interior, hung with crystal
chandeliers the size of small buildings, has the proportions of a city square. Small armies parade
there in winter when ceremonial occasions cannot be held outside.
Beyond the palace, a gigantic pyramid – the Pyramid of
Peace – can be seen. Sixty metres high, it was designed by
British architect Lord Foster and contains a 1,500-seat
opera house. Another unique creation of Foster‘s is the
giant, futuristic yurt known as Khan Shatyr – the Khan‘s
Tent – which contains palm trees, beaches and even an
artificial sea, allowing people to enjoy tropical conditions
inside while blizzards rage outdoors.
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I‘d not visited Astana for four years and, having returned, I find the change simply
astounding. The last time I was in the city I found it impressive but without soul. Now everything
has changed. Astana has developed a personality. Not only has the skyline altered beyond
recognition, but the place is alive. There is a buzz about it, an energy reflecting its youthful
population. Astana has become human.
The average age in the city is 34, and young women from
all over Kazakhstan flock here looking for husbands because of
the army of single men working in its numerous ministries.
Construction continues apace, and there are so many new cultural
centres, museums and stadia – football, bicycle and ice-skating –
popping up, that even the official guides can sometimes become
confused: ‗I‘m sorry – this is the National Museum and you
wanted to see the President‘s Museum. Perhaps you would also
like to see the Palace of Independence?‘
One of the more immutable disadvantages of Astana is
that it is a long way from anywhere. It‘s like living on a remote
island – there is a reason the steppe is referred to as a sea of grass.
In a country the size of Western Europe, distances are enormous.
People in the city resign themselves to three-hour drives to reach
the closest resort areas.
Some 106 miles to the southeast is a network of salt lakes
that are home in spring and summer to vast flocks of pink flamingos. Korgalzhyn State Nature
Reserve, covering 915 square miles, is a bird-watcher‘s dream and a candidate as a Unesco World
Heritage Site. But the most popular weekend location for Astana residents wishing to escape their
city is Burabay National Park, an area of lakes, hills and forest billed as ‗the pearl of Kazakhstan‘ or
even ‗Kazakhstan‘s Switzerland‘. Only steppe dwellers would consider its low granite hills to be
Alpine; despite its undoubted beauty, it more resembles Finland‘s lakes and forests.
Mac and I set off on a Saturday morning for an overnight stay. As we leave the city limits,
we drive through a wide girdle of forest, planted as a green belt designed to be both a lung and a
windbreak. Stunted by wind, frozen earth and long winters, the forest has grown considerably
slower than Astana itself. Beyond the green belt there is only the empty steppe.
‗Up here on the steppe you see natural phenomena you don‘t see anywhere else,‘ says Mac.
‗I‘ve seen a rainbow at a temperature of -35°C, which was absolutely beautiful. And it‘s big sky
country, too – so you can see black clouds in one part of the sky and brilliant sunshine in another.‘
We buy beer and delicious smoked fish in a shop on the way to the park, then drive to a
comfortable hotel that retains elements of a Soviet sanatorium – a course of leeches is on offer. It‘s
the end of the season and almost no-one is around the lakes or forests, except for old ladies
searching for mushrooms. Coloured ribbons have been
tied in profusion to trees in certain ‗sacred‘ groves –
shamanistic rather than religious – by wedding parties.
There are a number of lakes in the national park,
but Burabay is the most beautiful. Surrounded by birch
forest, its waters lap a strip of sandy shore. There are
various inlets where visitors can rent a rowing boat or
hire an oarsman to take them to the mysterious rock
known as Zhumbaktas stone. A legend surrounds it, and
it is said to resemble a beautiful woman from one angle
and an old hag from another. I can‘t see it myself. But
then neither can I make out the elephant, warrior and
shoe that other outcrops are said to resemble. Zhumbaktas stone is covered in graffiti, dating back to
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1905. My favourite is from 1949 and signed: ‗Nadia: Thank God for those husbands who send their
wives alone for a vacation.‘
As we enter Astana on the drive back from Burabay,
Mac remarks on all the young families out for an afternoon
stroll. In the winter they go skating on the river and drill holes
in the ice for fishing, while elaborate ice sculptures decorate
the streets. ‗When I first came here, I barely saw any prams on
the streets,‘ he says. ‗In a year, I started to see prams. And
after two years, the whole embankment along the river was full
of prams.‘
And two of them belonged to Mac and his wife
Akmaral, who now have a couple of young sons. Back in the city, Akmaral cooks dinner for us
while the boys wander in and out of the kitchen. It‘s a settled, happy domestic scene.
‗This is a young city built for young families, for a younger generation,‘ says Akmaral. ‗It‘s
a city designed for family life, which is very important for Kazakhs. All the colleagues I came here
with have now married and had children – they have become adults and personalities in this city.
Astana has become their home. And it has become my home.‘
The old complaints have been resolved. Akmaral no longer yearns to return to Almaty, and
has no desire to move. ‗I have changed completely, one hundred per cent – I am very happy here,‘
she says.
Like its young population, Astana has finally come of age.
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ALMATY - FINANCIAL AND CULTURAL HUB
Almaty, formerly known as Alma-Ata and Verniy, is the
largest city in Kazakhstan with a population of nearly 1.5
million people. Thatrepresents nearly10 percent of
Kazakh population..
Almaty was the capital of Kazakhstan from 1929 to
1998. Despite losing its status as the capital, Almaty
remains the major commercial center of Kazakhstan.
The name Almaty comes from the Kazakh word apple
(алма), and thus is often translated as "full of apples.‖
About 46 percent of Almaty‘s population is Kazakh but it is a diverse city:, 30 percent are Russian,
11 percent are Uyghur, 2 percent areTatar, 2 percent are Korean, 1 percent are Ukrainian and 1
percent are German.
HISTORY
During the 10th and 9th centuries B.C., in the Bronze Age,
farmers and cattle-breeders settled on the territory of
Almaty. During the Saka period (from 7 B.C. to the
beginning of the Common Era), the Saka tribes and later
Uisun tribes inhabited the territory north of the Tian Shan
mountains. Numerous burial tumuli and ancient settlements
remain, including giant burial mounds of Saka tsars. The
most famous archaeological finds are the Golden Man from
the Issyk burial mound (a replica of the Golden Man
crowns the Independence Monument on the central square
of Almaty and another replica sits in front of the chancery
of the Embassy of Kazakhstan in Washington), Zhalauly treasure, Kargaly diadem, Zhetysu arts
bronze (boilers, lamps and alters). During the period of Saka and Uisun governance, Almaty became
an important education center.
During the Middle Ages (8th–10th centuries) Almaty experienced its cultural development; a
number of towns and cities developed on the territory. Between the 10th – 14th centuries,
settlements became part of the trade routes of the Silk Road. Almaty became one of the trade, craft
and agricultural hubs along the Silk Road.
The 15th through 18th
centuries were marked by very
important political events. It
was a period of ethnic and
political transformation. The
battled Dzungar intervention
forced a battle for freedom
among Kazakhs seeking to
protect their land and preserve
independence. In 1730,
Kazakhs defeated the Dzungar
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in the Anyrakay mountains, 70km northwest of Almaty.
On Feb. 4,1854, the Kazakhstan began work on the the Russian Fort Verniy near the Zailiysky
Alatau mountain range (between Bolshaya and Malaya
Almatinka rivers). The construction of the Verniy Fort was
almost finished by autumn 1854. It was a fenced pentagon
and one of its sides was built along the Malaya Almatinka.
In 1856, Russian peasants. founded the Bolshaya
Almatinskaya Stanitsa (Cossack village) near the fort. The
inflow of immigrants increased and led to the construction
of the Malaya Almatinskaya Stanitsa and Tatarskaya
(Tashkentskaya) sloboda. Tatar mechants and craftsmen
settled there. In 1867 the Verniy Fort became a town called
Almatinsk. However, its residentsrejected the name and
settled on Verniy instead.
According to the first city plan, the city‘s southern
border was 2 km in length and its western border
spanned 3 km. At 4 a.m. on n May 28, 1887, an
earthquake almost totally destroyed Verniy.
In 1921, the city‘s representative of government
convened to change Verniy‘s name to Alma-Ata.
In 1926, the Council of Labor & Defense approved the
construction of the Turkestan-Siberia Railway, which
was a crucial to Kazakhstan‘s development,
specifically in the east and southeast. On March 2,
1927, the Central Executive Committee of the Kazakh
Republic decided to transfer the capital from Kyzyl-
Orda to Alma-Ata. In 1930, the construction of the
highway and railway to the Alma-Ata station was
complete.
The Alma-Ata airport also opened in 1930; it
allowedpeople to travel between Alma-Ata and
Moscow. Alma-Ata became Kazakhstan‘s major hub
for air transportation.. In 1936, the Architecture &
Planning Bureau put in place plans to develop Alma-
Ata as the new cultural capital of Kazakhstan.
Between 1966 to 1971, 1.4 million square meters of public and cooperative housing were built. The
focus was on constructing earthquake-proof, multi-storied buildings. Schools, hospitals, cultural and
entertainment facilities - including Lenin‘s Palace, the Kazakhstan Hotel and the sport complex
Medeo - were constructed during this period. The Medeu Dam, designed to protect the city of
Almaty and the Medeo skating rink from catastrophic mudflows, was built in 1966.
The aircraft Tupolev Tu-144 went into service on Dec. 26 1975, flying mail and freight between
Moscow and Alma-Ata. Passenger service between the cities began in November, 1977.
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The underground Almaty Metro project got underway in 1981. In 1991, Kazakhstan celebrated its
independence from Russia.
In1993, the government decided to rename Alma-Ata to Almaty.
In 1997, President Nazarbayev approved the Decree to transfer the capital from Almaty to Astana.
On July 1, 1998, a law was passed designating Almaty as a scientific, cultural, historical, financial
and industrial center.
ALMATY TODAY
The 2030 General Plan of Almaty was developed in 1998. The main objective of the plan is to
promote Almaty‘s image as a garden city. It also calls for the construction of multi-storied buildings
, reorganization of its industrial territories, an improvement in the transportion infrastructure and the
launching of the Almaty Metro. Almaty has developed an important regional financial centre -
RFCA.
An aerial tramway line connects downtown Almaty with a popular recreation area on the top of Kцk
Tцbe (Green Hill), a mountain just to the southeast. The city television tower, Alma-Ata Tower, is
located on this hill, as well as a variety of attractions and restaurants.
According to the city's Department of Natural Resources & Resource Use Management, the city
today has 125 fountains. Among them is the "Oriental Calendar" Fountain, which features 12
sculpturesrepresenting the 12 animals of the Kazakh 12-year animal cycle (similar to its Chinese
counterpart).
Almaty is a university town – with the Almaty Institute of
Power Engineering & Telecommunications, Kazakh-British
Technical University, Kazakh National Technical University
(KazNTU), Al-Farabi Kazakh National University
(KazUU), Suleyman Demirel University (SDU), Kimep
(Kazakhstan Institute of Management, Economics, &
Strategic Research), Kazakh-American University (KAU),
Kazakh Academy of Sciences, Almaty State University
(named after Abay), Turan University, Kazakhstan
University of International
(Almaty Subway, to be unveiled soon)
Relations & Languages, Central Asian University – all laying claim to providing international
standards of eduction to students from across Kazakhstan and beyond (recently Kazakhstan was
designated No. 1. in Central Asia for its education standards).
Almaty won the bid to host the 2011 Winter Asian Games and the city is working on future bids,
including the 2018 Winter Olympics.
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RECOMMENDED PUBLICATIONS ON KAZAKHSTAN
Odyssey Kazakhstan: “Nomadic Routes from Caspian to Altai” by Dagmar
Schreiber. A guide to the Central Asian nation, with essays on history, culture,
architecture and nature. (ISBN: 978-962-217-789-5, $24.95,
www.amazon.com).
Hedonist's Guide to Almaty and Astana by Lucy Kelaart and Summer Coish.
Whether it's sipping vodka cocktails in Almaty's lounge bars, admiring Astana's
architecture, visiting the churches and mosques or venturing into the countryside
to ski or explore the dramatic steppe, this guide explores Kazakhstan's and
explores Soviet past and its independent present. (ISBN: 978-I-905428-21-2,
$18.95, http://www.hg2.com/stores/Almaty-and-Astana).
Apples Are from Kazakhstan: The Land that Disappeared by Christopher
Robbins. ―Robbins‘s travelogue enthusiastically and infectiously blends history,
observation, and mini biographies … A captivating read notable for off-the-cuff
candor and measured, eloquent prose.‖ — Kirkus Reviews (starred review).
(ISBN: 978-0-9777433-8-4, $17.47, www.amazon.com).
Kazakhstan (Bradt Travel Guide) by HE Paul Brummel, UK Ambassador to
Kazakhstan. Located between Russia and China, the state of Kazakhstan is
incredibly diverse and naturally beautiful. This guide includes information about
visiting natural parks and reserves as well as features on the singing sand dunes
and the Sharyn Canyon - Asia's equivalent of the Grand Canyon. (ISBN-10:
1841622346, $19.70, www.amazon.com).
Nazarbayev and the Making of Kazakhstan by Jonathan Aitken. ―Acclaimed
biographer Jonathan Aitken tells the unknown story, sparkling with human and
historical detail, of how the most brutally oppressed of the Soviet republics is
being transformed by its first President, Nursultan Nazarbayev, into a modern,
exotic and oil rich nation state of key strategic importance in the 21st century‖
(ISBN-978-1-44115-381-4, $34.95, www.amazon.com).
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Kazakhstan‟s Foreign Ministry Publishes Kazakhstan at Twenty:
Fulfilling the Promise
―In 2001, a book by Martha Brill Olcott, Kazakhstan: Unfulfilled Promise,
caused quite a stir as many people, myself including, were in disagreement
with her. Today, ten productive and intensive years later, those same
people have even more justification to state the case for Kazakhstan‘s
progress towards fully grown market economy and participatory
democracy. Yet, we in Kazakhstan are fully aware that we are not there
yet, so to speak, and that much work remains to be done. Hence the title of the book, and I hope Dr.
Olcott wouldn‘t mind our little wordplay,‖ Roman Vassilenko, Chairman of the Committee for
International Information of Kazakhstan‘s Foreign Ministry said.
(http://portal.mfa.kz/portal/page/portal/mfa/en/content/news/nws2011/2011-04-18).
Green Desert: the Life and Poetry of Olzhas Suleimenov is the first
comprehensive translation of Olzhas Suleimenov's poetry in English. It
provides a concise overview of the poet‘s rich literary heritage and serves
as an introduction to the contemporary literature of Kazakhstan and
Eurasia. The book is edited by Dr. Rafis Abazov, who is adjunct associate
professor at Hunter College and Columbia University (New York).
The books are widely available (ISBN 978-1-60927-757-4, $46.95,
http://www.cognella.com/titles/Green-Desert/).
Islam without a Veil: Kazakshtan‟s path of modernization.
Kazakhstan has proven that a mostly Muslim nation can be active on the
international scene. Its leaders have worked fervently to bridge the ugly
schism that has developed since the 9/11 attacks.
How has Kazakhstan been able to maintain its Muslim heritage yet
remain on track toward modernization?
Claude Salhani examines the successful phenomenon of Kazakhstan
today. He looks at the progress it has attained in just two decades since independence. While there is
no doubt as to the Muslim identity of the country, Kazakhstan is living proof that there can be a
―kinder, gentler‖ mode of Islam, in which one can live at peace with oneself and with one‘s
neighbors, despite their differences (ISBN 1597977314, $23.96,
http://www.potomacbooksinc.com/Books/BookDetail.aspx?productID=279024).
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DID YOU KNOW THAT …
Kazakhstan is the world‘s ninth largest country with an area of 2.7
million square kilometers, roughly five times the size of France, four times
the size of Texas, and more than 100 times the size of Israel.
Kazakhstan is a truly Eurasian country, and while the most of the
country lies in Asia, 5 percent of its territory, roughly the size of Greece, is
located in Europe.
Apples, tulips, and horses were first domesticated by the man on the territory of
modern day Kazakhstan.
Astana is unique because it is a capital city right in the middle of the Eurasian
continent.
Kazakhstan is home to the Baikonur space center – home to the first sputnik launch. It
was also the site for the launch of the first cosmonaut (astronaut) Yuri Gagarin into
space on April 12, 1961.
Kazakhstan‘s Altai Mountains and Mount Belukha are considered to be the homeland
of Magic Shambala, the mystical Buddhist paradise.
Kazakhstan borders the Caspian Sea, which is the world‘s largest inland sea, famous
for its caviar.
Kazakhstan is home to the Karagiye Depression at the Mangyshlak Peninsula
islocated 132 meters below sea level, the second lowest point in the world after the
Dead Sea.
Recent Archeological excavations give rise to speculation that Kazakhstan is also
homeland of the Amazons, the female warriors described 2,500 years ago by Greek
historian Herodotus.
*** The Republic of Kazakhstan:
has about 3% of the world‘s raw materials and natural resource base of over $300,000
per capita (among the highest in the world, twice the level of Russia, higher than
Australia).
has oil reserves per capita which are five times as high as in Russia and higher than
in Iran.
has tripled its oil production since 1990.
more than tripled its gas production from 12 billion mі in 2000 to 39 billion mі in
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2009.
mined around 25 percent of the world‘s uranium in 2009, making it the world‘s
largest producer.
produced 20 million tons of grain in 2009, which made it the sixth largest producer
and the seventh largest exporter of grain worldwide.
has 4 % of the world‘s iron reserves.
has 8 % of the world‘s zinc reserves.
has 4 % of the world‘s total chrome reserves, accounting for 15 percent of global
production.
saw $50 billion of FDI over 1998-2008, as compares to the 43 billion invested in
Russia (around $130 billion of FDI from 1993 to date).
per capita GDP has grown twelve-fold since independence exceeding $ 10 thousand
in 2010 (Malaysia – $ 8,423; Romania - $ 7,542; Bulgaria - $ 6,334; Thailand -
$4,992).
has made major strides in the last coule of years in the in the Transparency
International ratings, moving 30 places up the ranks.
the country ranks well above Italy on ease of doing business, according to the latest study by
the World Bank (Kazakhstan – 59, Italy – 80, Russia – 123, Ukraine – 145).
* * *
In addition, according to Britain-based Legatum Institute:
- Kazakhstan is 42nd
in education
- Kazakhstan is 16th
for the average workers acquiring secondary education
- Kazakhstan is 8th
for the number of doctors, nurses and hospital beds available per
capita
- 97% of the population has access to adequate sanitation systems.
Literacy rate is 99.7 percent.
Kazakhstan is a ―melting pot‖:
more than 130 ethnic groups live in the country
more than 40 religions are practiced, Sunni Islam and Orthodox Christianity being
the prevailing ones.