022702

Vol. 1, No. 6, February 27, 2002

Politics

Kazakhstan supports the U.S. administration's demand on extradition of suspects in Pearl's death

Rep. Phil English praises Kazakhstan's support in the fight against international terrorism

US Department of Justice officials to visit Kazakhstan

Economy

Parliament approves the 3-year economic development program

New oil and gas company established in Kazakhstan

ChevronTexaco to launch full-scale development of North Buzachi

Conoco looking to join Kazakhstan oil and gas projects

Kazakhstan to plant 13.3 million hectares of grain in 2002

Society

USAID conducts "Faces of Central Asia" exhibit on Capitol Hill

POLITICS

Kazakhstan supports the U.S. administration's demand on extradition of suspects in Pearl's death

On February 25, responding to a media question about the reaction to the murder of Wall Street Journal reporter Daniel Pearl in Pakistan, Secretary of State, Minister of Foreign Affairs of Kazakhstan Kassymzhomart Tokaev declared the "indignation at the execution of the American journalist".

"This barbaric action once again proves the need for joining the efforts of all the nations in the fight against international terrorism," he said.

"Kazakhstan supports the U.S. administration's demand on extradition of suspects in order to conduct the investigation. Our nation is a strong supporter of decisive actions of international community against the terrorism in all of its manifestations and of further cooperation in that sphere with the United States and other members of the international coalition," Mr. Tokaev stated.

On Monday the Union of Journalists of Kazakhstan (UJK) in its statement expressed "sincere condolences" to the family of Daniel Pearl and to his colleagues and called upon Pakistan to bring his murderers to justice. The UJK further called upon the international journalistic community and international organizations to resolve the issue of the security, protection of rights and freedoms of journalists doing their job. The statement said the world will "go blind and will begin decaying if the journalists are stripped of the opportunity to tell the truth and are not protected while working in the line of duty".

Rep. Phil English praises Kazakhstan's support in the fight against international terrorism

On February 14, 2002, Rep. Phil English (R-PA) praised the Republic of Kazakhstan for its efforts in assisting the United States in war against terrorism. Noting that "Kazakhstan was among the first of our allies to offer its condolences and help after the destruction of September 11th", Mr. English expressed special gratitude to the President Nazarbayev for "taking the unprecedented step of visiting the United States Embassy to sign the Embassy's book of condolences" and " issuing a strong statement of support for our war against Osama Bin Laden and Al Qaeda with all means available."

"More importantly, our friends in Astana backed their firm statements with action--offering blanket overflight clearance, airfields and supply bases to the United States military for use in action against Al Qaeda," stressed Rep. English and empathized Kazakhstan's contribution to the recovery of long-suffering nation of Afghanistan, including the supplies of grain as humanitarian assistance.

Appealing to his colleagues, Mr. English stated that "this sort of cooperation and assistance exemplifies the sort of friendship that our own nation treasures and needs in our fight against the evil behind international terrorism.

The Republic of Kazakhstan has demonstrated a valiant commitment to protecting freedom by siding with the United States of America. It is my hope that other nations, young and old, will follow the tremendous example of the Kazakh people".

US Department of Justice officials to visit Kazakhstan

A group of legal experts from US Department of Justice will visit Kazakhstan in March in an effort to build stronger ties to the Kazakhstan legal community. During a recent meeting with Kazakhstan Justice Minister Yuriy Kim, US Ambassador to Kazakhstan Larry Napper noted that the forthcoming visit is aimed at strengthening practical relationships between Kazakhstan and American lawyers; the two sides will also discuss further cooperation in the legal aspects of the fight against terrorism and drug smuggling in the Central Asian region.

ECONOMY

Parliament approves the 3-year economic development program

On February 25, the joint session of the Kazakhstan Parliament approved the 3-year economic development program for the country submitted by the Government. Its main priorities are to provide for the qualitative growth of the level of life of the population through sustainable social and economic development, the promotion of the movement of the capital and savings, strengthening the economic security and reducing systemic risks, and weathering world market fluctuations.

Speaking in the Parliament on February 25, Kazakhstan Prime Minister Imangali Tasmagambetov declared that "in order to achieve the growth in the quality of life, it is necessary to sustain an economic growth rate of 10-12% per year." He called attaining that high rate of growth "the government's ultimate goal".

"Given the current world economic situation, however, Kazakhstan has planned for average GDP growth of 5-7%," the Prime Minister stated. "We intend to hold inflation down to 5-7% this year, then slow its pace to 4-6% in the following two years," he added.

Speaking on specific economic plans, Mr. Tasmagambetov said that the Government hoped to attract investment from the republic's booming banking sector and pension funds by selling stakes in several large state-owned companies through the Kazakhstan Stock Exchange.

If the Government is as successful in building the economy as it hopes, "the number of the people in Kazakhstan living below the poverty line will fall to 20-25%," Mr. Tasmagambetov said.

New oil and gas company established in Kazakhstan

On February 20, President Nazarbayev signed the decree on the establishment of Closed Joint Stock Company "National Company KazMunaigas" through the merger of CJSC "National Oil and Gas Company Kazakhoil" and CJSC "National Company "Transportation of Oil and Gas".

Kazakhoil was the largest state-owned oil company with stakes in a number of major oil fields, including Tengiz, and a refinery. Last year it produced 6,5 million tons of oil, or 15 per cent of national output, Khabar TV reported on February 21.

According to the same report, Transportation of Oil and Gas, established in May 2001 through the merger of state pipeline companies KazTransOil and KazTransGas, was transporting annually up to 80 per cent of oil extracted in the country. It also managed the entire relevant infrastructure, including the maritime shipment company Kazmortransflot.

On February 21 the Government adopted a resolution naming Mr. Lyazzat Kiinov, until recently Akim (Governor) of oil producing Mangistau region and an experienced oilman, as president of KazMunaigas. Mr. Timur Kulibayev, formerly head of Transportation of Oil and Gas, was appointed first deputy president of the new company.

Introducing Mr. Kiinov as the head of KazMunaigas on February 21, Prime Minister Imangali Tasmagambetov said that "as we move on to the next stage in the establishment of the national oil industry we face global challenges of developing the Caspian shelf". Kazakhstan was, therefore, creating "a single vertically integrated national company".

ChevronTexaco to launch full-scale development of North Buzachi

Mangystau-based oil producer Texaco North Buzachi, Inc., a subdivision of US-based oil major ChevronTexaco, plans to embark on full-scale development of the Buzachi field in the second half of 2002, the company announced.

According to Texaco North Buzachi General Manager Simon Gill, the company is waiting to receive permits to begin expanded development at the field from Kazakhstan's authorities. Gill disclosed that at present the enterprise is carrying out a pilot production project.

Oil production at North Buzachi in 2001 totaled 215,634 tons, up from 71,072 tons the previous year. Average daily output at the field in 2001 stood at around 591 tons (4,042 barrels), though in the fourth quarter average daily output reached 920 tons (6,300 barrels). Average daily output at Buzachi is slated to hit 815 tons (5,578 barrels), a goal facilitated by the expected expansion of operations at 10 wells in the second half of the year.

ChevronTexaco has been operating the North Buzachi field since 1998, when it acquired a 65% stake in the project. Nimir Petroleum owns the remaining 35%.

Conoco looking to join Kazakhstan oil and gas projects

US-based oil company Conoco is interested in participating in oil and gas field development projects in Kazakhstan, Conoco Eurasia President Raphael Vermeyor told Kazakhstan Minister of Foreign Affairs Kassymzhomart Tokaev at a meeting in Astana last week.

Conoco and Kazakhstan officials discussed the prospects for an entry by the company into the Kazakhstan market as well as a planned upcoming merger with US-based Phillips Petroleum, which already holds a stake in the consortium developing Kashagan oil field on the republic's North Caspian shelf. Mr. Tokaev touted the "obvious attractiveness of the investment climate" and reaffirmed the Government's commitment to attracting foreign investors. He also stressed that hydrocarbon investors should actively cooperate with the newly created KazMunaigas.

Kazakhstan to plant 13.3 million hectares of grain in 2002

Kazakhstan farmers are expected to plant 13.3 million hectares of grain crops in 2002, including 11 million hectares of wheat, the Ministry of Agriculture announced on February 21. Those figures were up 1% and 1.3%, respectively, over 2001. Kazakhstan plans to continue planting 13.3 million hectares of grain until 2005, the Ministry noted.

Kazakhstan's breadbasket regions are Akmola, Kostanay and North Kazakhstan, which together produce about 70% of the republic's total grain yield. In 2001 Kazakhstan farmers produced 15.9 million tons of grain, up from 11.9 million tons the previous year.

SOCIETY

USAID conducts "Faces of Central Asia" exhibit on Capitol Hill

U.S. Agency for International Development (USAID) is conducting a photo-exhibit "Faces of Central Asia" in Russell Senate Office Building that will last till March 1, 2002. Pictures, reflecting various cultural and social aspects of five Central Asian countries, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, are well presented in this show.

"This exhibit shares the beauty of Central Asia and its peoples and traditions. It also shows how U.S. assistance is helping the men, women and children of Central Asia better their lives and build new, more stable and pluralistic nations," the USAID said in its brochure dedicated to the exhibit.

Embassy of Kazakhstan supports USAID's initiative in for organizing this event aimed at strengthening close and friendly relations between the peoples of Central Asia and the U.S. and invites distinguished readers of this Bulletin to visit this informative exhibit.

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News Bulletin of the Embassy of the Republic of Kazakhstan

(Compiled from own sources and various agencies' reports)

Contact persons: Roman Vassilenko, Aibek Nurbalin

Tel.: (202) 232- 5488 ext. 104, 115

Fax: (202) 232- 5845