Vol. 3, No. 24, July 17, 2002
Politics 
President Nazarbayev met with U.S. AmbassadorUS to give money, equipment to Kazakhstan armed forcesPresident signs law "On political parties"Economy
KazAtomProm and US Department of Energy begin new non-proliferation projectSix-month industrial production up 8.7%Kazakhstan sees 8.9% rise in investment in first six months of 2002Caterpillar ships USD 19.6 mm worth of mining equipment to KazakhmysSpecial Report
Conference in Kansas: Strengthening Kazakhstan-U.S. cooperationPOLITICS
President Nazarbayev met with U.S. AmbassadorOn July 10th, President Nazarbayev met with U.S. Ambassador to Kazakhstan Larry Napper. Napper told journalists after the meeting that they discussed U.S. - Kazakhstan cooperation in the fight against international terrorism. He said Kazakhstan -American relations have been developing on a very high level and he expressed gratitude to Nazarbayev on behalf of the U.S. government for Kazakhstan's support of the U.S.-led international efforts against terrorism. The most recent example of it was the provision by Kazakhstan of its largest Almaty International Airport for emergency landing and refueling of anti-terrorism coalition aircraft. The issues of growing economic cooperation, in particular initiatives aimed at support of small and medium size enterprises, as well as further development of democracy and civil society in Kazakhstan were discussed at the meeting. US to give money, equipment to Kazakhstan armed forcesThe Kazakhstan military expects to receive financial assistance and equipment from the United States as part of a new agreement with Washington, the Kazakhstan Defense Ministry announced on July 16.The deal was struck last week when a Kazakhstan military delegation traveled to the Pentagon for talks. American financial support will primarily be aimed at helping develop Kazakhstan's mobile armed forces. Defense Ministry also states that US officials agreed to consider supplying US-built military hardware to the republic. Some Kazakhstan officers will also begin training at US military academies next year.Kazakhstan Defense Minister Mukhtar Altynbaev plans to visit Washington this fall to hold more talks on bilateral cooperation.President signs law "On political parties"On July 15, President Nursultan Nazarbaev signed into the law legislation "On Political Parties" which was initiated and approved by both houses of Parliament. Signing took place after the Constitutional Council, upon the request of the President, reviewed and ruled that the provisions of the legislation did not contravene the Constitution of the Republic. According to the new law, any political party will need 50,000 members to register and has to have offices in all the regions of Kazakhstan. The new law regulates the political landscape of the country where a number of political parties exceeded half a dozen for the population of only 14 million. According to the members of the Parliament who initiated the legislation, "any party that claims it represents the interest and speaks on behalf of the people of Kazakhstan should have a legitimate basis for that". ECONOMY
KazAtomProm and US Department of Energy begin new non-proliferation project The US Department of Energy and the US National Nuclear Safety Administration together with Kazakhstan's national atomic company KazAtomProm announced a new joint nuclear weapon non-proliferation project. The project entails the conversion of beryllium production facilities in Kazakhstan to the manufacture of beryllium bronze alloys used in electrical appliances, computers and other telecommunications equipment.
The site of the bronze beryllium alloy plant is expected to be at the Ulba Metallurgy Plant, an affiliate of KazAtomProm. Brush Wellman and RWE NUKEM, two US partners, will invest some USD 4 million in the project, while the US National Nuclear Safety Administration will contribute some USD 1.5 million and the National Nuclear Laboratory in Los Alamos will provide technical assistance. The Ulba plant also plans to raise some USD 4.5 million to help finance the project.Once in place, the Ulba plant hopes to receive some USD 10 million in revenues annually from the production unit; 150 workers will be employed at the facility. The uranium industry development program elaborated by KazAtomProm's stipulates an annual domestic uranium output of 15,000 tons by the year 2028, a volume which ensure Kazakhstan a leading position in the world uranium market.Six-month industrial production up 8.7%The National Statistics Agency disclosed on July 15, that industrial production in Kazakhstan rose 8.7% in the first six months of 2002 in comparison to the first half of 2001 due to an increase in extraction and processing of natural resources. Natural resource production rose by 10% in the first six months of the year, while processing output was up 9.1% on the year. Industrial output rose 13.5% in the first half of 2001. The Kazakhstan Government has forecasted industrial growth of 7% on the year in 2002.
Kazakhstan sees 8.9% rise in investment in first six months of 2002According to the National Statistics Agency, total investments into fixed capital in Kazakhstan rose 8.9% in the first half of 2002 (in comparison with the same period in 2001) and totaled USD 2.32 billion. Although, oil and gas sector remains the main recipient of capital inflows, with 49% of all investment designated specifically for this industry, the positive trends for diversification of capital inflow in other sectors are highlighted. Real estate projects received 14% of total investment, transport and communication - 10% and processing industries - 8%.Caterpillar ships USD 19.6 mm worth of mining equipment to KazakhmysUS-based Caterpillar Inc. has signed a USD 19.6 million contract to supply mining equipment to major Kazakhstan copper producer Kazakhmys, Caterpillar announced in a press release. According to the Moscow office of Caterpillar, Inc., some 22 units of equipment, including quarry dump-trucks, hydraulic excavators, caterpillar tracts and wheel loading machinery, will be shipped to the Kazakhstan mining enterprise.The contract was signed between Caterpillar regional dealer Brusan Makina (Kazakhstan) and Samsung Deutschland GmbH, Kazakhmys' partner in the development of the Nurkazan copper field.SPECIAL REPORT
Conference in Kansas: Strengthening Kazakhstan-U.S. cooperationBusiness and Government leaders from Kazakhstan and the United States met in Overland Park, Kansas, July 1 and 2 for a major conference on trade and investment opportunities called "Kazakhstan: Premier Market for Investment and Trade". The conference organized by Senator Sam Brownback (R-KS) and the Embassy of Kazakhstan in Washington, DC., gathered together over two hundreds delegates from the U.S., Canada and Europe, including leading Kazakh businessmen, in the heartland of America. Kazakhstan delegation headed by Secretary of State Minister of Foreign Affairs Kassymzhomart Tokaev included Minister of Energy and Mineral Resources Vladimir Scholnik and Deputy Ministers of Agriculture and State Revenues. American side was represented by Secretary of Energy Spencer Abraham, Deputy Assistant of Secretary of State Lynn Pascoe, Ambassador William Taylor, senior officials from Departments of Commerce, Agriculture and Trade and Development Agency. Discussions focused on the growing Kazakhstan U.S. relationship, including U.S. assistance, as well as on the financial environment in Kazakhstan, incentives for U.S. investment, and current and future cooperative ventures in the energy, agriculture, transportation and telecommunications sectors. The leaders of two nations President Nursultan Nazarbayev and President George Bush send greeting letters to conference participants. In his greeting American leader noted Kazakhstan's potential, based on its prosperity and stability, to exercise leadership in Central Asia. President Nazarbayev expressed confidence that the strategic partnership between Kazakhstan and the United States forms a strong foundation for productive cooperation in all areas of bilateral interaction. Speaking at the conference, U.S. Energy Secretary Spencer Abraham praised Kazakhstan's decade achievements and expressed profound satisfaction on the state and potentials for Kazakhstan-U.S. bilateral relations. Secretary Abraham repeatedly said "Kazakhstan has made significant progress toward creating the legal and regulatory framework for a market-based economy The impressive progress Kazakhstan has made in developing new laws and new governmental institutions to implement those laws has produced economic growth rates - an astounding 13.8% in 2001 - to be envied by any nation in the world". Highlighting the successful Kazakhstan- U.S. cooperation in the spheres of non-proliferation, economic and energy development, the war on terrorism, Secretary Abraham stated that this " was an act of significant courage from a country that early on made a clear decision about the course it would take as an independent nation, building new relationships with the international community of nations". Senator Brownback, a longtime time supporter of increased trade relations between the United states and Central Asia, welcoming the participants of the forum emphasized that the topic of the conference was important not just for mutual economic benefits but for furthering the larger goals of peace and stability.The head of the Kazakhstan delegation Secretary of State Minister of Foreign Affairs Kassymzhomart Tokaev delivered a message from the people of Kazakhstan to Americans expressing gratitude for their invariably friendly attitude and strong support. Having said that Secretary Tokaev emphasized "Kazakhstan is a strategic partner, a strong friend and reliable ally for the United States in a critically important region". According to him, Kansas conference has provided an important opportunity to confirm that and to open new ways for more extensive and exciting cooperation. Two events held in conjunction with the trade conference were the signing ceremonies involving a recent business deal between the government of Kazakhstan and the Boeing Corporation, in which Air Astana agreed to lease a fleet of Boeing jets, and USD 30 million contract signed by Kazakh company TCK Group Corporation with Reston (VA)-based company MIC Industries, INC on purchase of Ultimate Building Machines for diversified use in Kazakh economy. What was unique about this conference is that it was the first and the largest forum of such kind held outside of traditional places energy and financial centers of America. High level representation of officials and business circles at the forum, as well as an impressive number of participants once again showed a continued interest in Kazakhstan as the huge varket for investment and trade. * * *For more news and information visit us at www.kazakhstan-embassy-us.org
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
