Kazakhstan
News Bulletin
Released weekly by the Embassy of the Republic of Kazakhstan
www.kazakhembus.com
July 2, 2003                                      Vol. 3, No. 1
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In this issue:

Astana Seeks to Enhance Strategic Partnership with Washington, Says Foreign Minister
Senate Passes Amendments to Confront Human Trafficking
Kazakhstan and Canada Sign Two Major Agreements in Legal Sphere, Economy, As President Nazarbayev Pays First Ever Visit
Canadian Jewish Congress Recognizes Nazarbayev's Role in Promoting Interreligious Peace
Kazakhstan to Triple Oil Production to 180 Million Tons by 2015, Says President
Gov't to Concentrate on Fast Return Programs, Seeks 150% Increase in GDP per Capita by 2006

Astana Seeks to Enhance Strategic Partnership with Washington, Says Foreign Minister

Kazakhstan is keen to develop and strengthen its relations of strategic partnership with the United States, the country's foreign minister Kassymzhomart Tokayev said during his meetings July 1 with U.S. Secretary of State Colin Powell and National Security Advisor Condoleezza Rice.

Speaking to reporters in Washington after the meetings, Mr. Tokayev said "Kazakhstan was, is and will be the reliable partner for the United States in Central Asia". The republic is "ensuring long-standing interests of the U.S. in the economic and military sphere," including through the support of the antiterrorist operation in Afghanistan. The minister also said Kazakhstan's contingent of army engineers and specialists, which is going to be 25-strong according to earlier news reports, was getting ready to go to Iraq as the technical and legal formalities are being ironed out.

"We are very grateful to have Kazakhstan as a strong, steadfast and reliable partner," Assistant Secretary of State Elizabeth Jones said in an interview outside the State Department on July 1.

On the economic side, Mr. Tokayev noted the "close partnership in the energy sphere" between the two countries, and said "the U.S. will continue to be one of the major investors in the Kazakhstan's economy." His statement came on the day when the new ambitious development program of Kazakhstan's sector in the Caspian Sea was unveiled in London. Under the plan, Kazakhstan is to propose up to 120 new prospective blocks to foreign and local companies to explore and develop, beginning in 2004-05.

Tokayev also confirmed Kazakhstan's "clear and firm commitment" to pursuing the democratic reforms, including through the introduction of new legislation on elections, which takes into accounts the OSCE recommendations.

The Foreign Minister also presented the U.S. officials with the draft agreement under which Kazakhstan would exempt U.S. personnel from prosecution by the International Criminal Court saying such an "Article 98" accord could be completed within weeks.

Tokayev also noted Kazakhstan's recent progress in fighting the human trafficking. Both houses of Parliament passed the amendments to the Criminal Code lately that provide clear definitions and tougher measures for trafficking-related crimes. Already, human trafficking is punishable by up to 8 years in prison. The foreign minister said President Nursultan Nazarbayev is expected to sign these amendments into law soon.

Senate Passes Amendments to Confront Human Trafficking

The Senate of the Kazakhstan's Parliament passed amendments to the country's Criminal Code on June 26 that would expand the legal basis for combating trafficking in persons.

The amendments would criminalize not only drafting of people for the purposes of sexual and labor exploitation, which is outlawed currently, but also their exportation from and transit through Kazakhstan. According to the existing laws, trafficking-related crimes are already punishable by up to 8 years behind bars.

The Majilis, the lower house of Parliament, passed the amendments on May 15. President Nazarbayev is expected to sign the amendments into law shortly.

Kazakhstan and Canada Sign Two Major Agreements in Legal Sphere, Economy, As President Nazarbayev Pays First Ever Visit

Kazakhstan and Canada signed the mutual legal assistance treaty (MLAT) and the joint action plan for enhancing the economic partnership on June 25 in Ottawa as part of the visit to Canada by President Nursultan Nazarbayev.

The MLAT treaty establishes legal basis for cooperation in fighting financial crimes, organized crime and other modern-day scourges.

The joint economic plan is geared towards "developing and promoting bilateral trade and strengthening economic ties." With a view to developing the growing middle class in Kazakhstan as the main protector and bearer of democratic values and principles of the market economy, "Kazakhstan and Canada share a goal of promoting business development and entrepreneurship," the plan notes.

The two countries resolved to establish the framework for cooperation that will include holding regular consultations, visits and meetings, trade missions, roundtables, seminars and trade events focusing on such issues and sectors as energy, agriculture, mining, construction, communication and transportation.

Mr. Nazarbayev was in Canada June 23-27 for the first official visit to that country of a Kazakhstan head of state. He met with Prime Minister Jean Chretien, Governor General Adrienne Clarkson and other officials in Ottawa. Speaker of the Senate of the Canadian Parliament Dan Hays gave an official dinner in honor of the visiting President, who later traveled to Calgary to meet with business leaders and address the investment conference.

Canadian Jewish Congress Recognizes Nazarbayev's Role in Promoting Interreligious Peace

The Canadian Jewish Congress recognized President Nursultan Nazarbayev for his contribution to promoting interreligious and interethnic harmony in his Central Asian republic, by presenting him with a sculpture of two intertwined hands symbolizing friendship at a ceremony in Ottawa June 24.

"Although the Jewish population of Kazakhstan is less than 30,000, the situation of the Jews in this largely Muslim country has vastly improved since the collapse of the Soviet Union, of which it was part, and its emergence as an independent country under the leadership of Nursultan Nazarbayev," the CJC said on the occasion.

"A country of many minorities, in most cases these non-Muslim populations were unwillingly dumped there during the years of Stalin's dictatorship and were subject to the level of suppression of religious and other ___expression which characterized Soviet rule. Political and civil freedoms presented the challenge of assuring both national unity and racial, religious and ethnic harmony," the Jewish group said.

"President Nazarbayev has met the challenge with outstanding commitment and determination," it stressed. "For the Jews, freedom has meant, for some, the opportunity to emigrate with loved ones and possessions to Israel or elsewhere. For most, it has meant migration from clandestine synagogues and schools, hidden from view, to beautiful new buildings conspicuous in the communities where they are located. Healthy relations with local government, with Israel and with Diaspora Jewry have meant religious and cultural exchanges as well as new schools and community centers."

In February 2003, Kazakhstan hosted the international conference on peace and harmony that gathered together secular and religious leaders from throughout Central Asia and more than 70 leaders of major Jewish organizations from the U.S., Israel and elsewhere. They established an open dialogue and a permanent forum seeking to ward off claims of the clash of civilizations.

Recently, Israel's Chief Rabbi visited Kazakhstan and met with President Nazarbayev. The rabbi said he supported the idea of holding the world's religious forum which is to take place in Almaty in September 2003. Earlier, Pope John Paul II, Russian Orthodox Patriarch Alexii II, and the World Muslim League Secretary General Al-Turki said they support the forum and its goals of promoting dialogue among religions and civilizations.

Kazakhstan to Triple Oil Production to 180 Million Tons by 2015, Says President

Kazakhstan plans to more than triple annual oil extraction from 50 million tons this year to 180 million tons in 2015, President Nursultan Nazarbayev of Kazakhstan said at the international investment conference in Calgary, Canada, on June 27.

"At the moment we are producing 50 million tons a year [roughly 1 million barrels per day]. By 2010 we plan to increase production to 120 million tons, and by 2015 - to 180 million tons [more than 3.5 million bpd]," Mr. Nazarbayev said at the forum, "Kazakhstan: the Crown Jewel of Central Asia: Growing Market Opportunities & Business Development", attended by some 300 business executives from Canada, Eurasia and the U.S.

The expansion will come mostly through the realization of the new state program for the development of the Kazakhstan's sector of the Caspian Sea, which is believed to contain the lion's share of the sea's oil riches.

"The aim of the program is the effective development of the Caspian's resources and the attraction of investment," he said. The energy development program for the country, which also includes coal, uranium and electricity production, will require up to US$70 billion in investment.

Mr. Nazarbayev said the foreign direct investment into Kazakhstan since its independence topped US$22 billion. According to international experts, Kazakhstan possesses mineral resources worth to $9 trillion that will require US$300-400 billion to develop, the President added.


Gov't to Concentrate on Fast Return Programs, Seeks 150% Increase in GDP per Capita by 2006

The new Cabinet of Prime Minister Daniyal Akhmetov will concentrate on the programs that will bear fast economic and social effects and will work to raise the GDP per capita by 150% to $2,600 in 2006, the government's 3-year program said.

Under the plan, Kazakhstan's economy is to grow 7-7,5 percent annually for the next three years, while industrial production is to expand by 9-9,5 percent. According to the government's statistics, GDP in the first half of 2003 grew by 10,4 percent compared to the same period of 2002.

"Our goal is to improve the welfare of the people through social stability and sustainable economic growth," the Prime Minister said in the Parliament on June 30. Both houses of Parliament approved the program on the same day.

The Government's top priorities will include implementing the strategy of industrial and innovation development up to year 2015, realizing agribusiness and food production program, and promoting the development of small and medium-sized enterprises. It will aim to develop a modern and effective system of education and science, continue the fast-paced construction of the capital city of Astana and seek to bridge the gaps in social and economic development between the country's various regions.

Developing transport infrastructure will also be a top priority. "We will develop transit routes in the first place. Kazakhstan should become a bridge for the CIS countries," Akhmetov said.

To spur the growth, the Government will continue its program of tax cuts. As of January 1, 2004, the VAT tax is to be reduced to 15%, social taxes of the enterprises will be differentiated in the brackets from 20 to 7 percent, as will the individual income taxes, which for certain types of taxpayers will vary from 30 to 20 percent.


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For more news and information visit us at www.kazakhembus.com
News Bulletin of the Embassy of the Republic of Kazakhstan to the USA and Canada
(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