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Vol. 4, No. 42, October 10, 2001

Politics

President Nazarbayev meets Turkish President Sezer, discusses regional security

Secretary of State Colin Powell calls President Nursultan Nazarbayev

Kazakhstan tightens security at diplomatic missions

Prime Minister meets new head of OSCE Almaty office

South Kazakhstan prepares for Afghan refugees

Secretary of State of the Holy See awarded Kazakhstan's order

Economy

Oil investment into Caspian to continue

KazTransOil posts big increase in half-year profits

Kazkommetsbank first to receive certificate for VISA "smart card"

POLITICS

President Nazarbayev meets Turkish President Sezer, discusses regional security

During a brief visit to Turkey late last week, Presidents Nursultan Nazarbayev and Akhmet Sezer met to discuss regional security and bilateral cooperation. Since 1991, Turkey, a key NATO ally, has been developing active political and economic ties with Kazakhstan, with which it shares a common cultural and historic background.

President Sezer reconfirmed that he is planning to attend the summit meeting of the Conference on Interaction and Confidence-Building Measures in Asia (CICA), to be held November 8-10, 2001 in Almaty.

Secretary of State Colin Powell calls President Nursultan Nazarbayev

On October 7, at the instruction of President George W. Bush, Secretary of State Colin Powell made a telephone call to President Nursultan Nazarbayev to inform him about the beginning of anti-terrorist action in Afghanistan.

Secretary Powell underscored that the target of the action carried out by the United States and its allies with the broad support of international coalition is the Al Qaeda terrorist organization based in Afghanistan, its leaders and military objects. While carrying out the action, its organizers provide for all necessary measures in order to prevent casualties among the civilian population as well as to provide effective humanitarian assistance to the Afghan people.

Following the conversation, President Nazarbayev instructed the regional akims (governors) and all law-enforcement and defense agencies to undertake necessary measures to ensure full security of vital installations of state-wide importance, as well as that of the diplomatic corps in Kazakhstan.

Kazakhstan tightens security at diplomatic missions

The government of Kazakhstan ordered heightened security around all diplomatic missions in the Republic as the region braces for possible consequences of the American-led retaliatory strikes on targets in Afghanistan. Though security was tightened at all embassies and consulates in the country, the embassies of the United States and Israel are receiving particular attention, including the posting of armored vehicles around the US Embassy in Almaty.

Prime Minister meets new head of OSCE Almaty office

On October 8, 2001 Prime Minister Kassymzhomart Tokaev met with Heinrich Haupt, who was recently appointed to head up the Almaty office of the Organization for Security and Cooperation in Europe. Mr. Tokaev said that the OSCE's activities focused on security issues will take on a new significance in Central Asia as events in Afghanistan continue to unfold.

Mr. Haupt in turn praised Kazakhstan's efforts to promote peace and stability in the region, notably through the summit of the Conference on Interaction and Confidence-Building Measures in Asia (CICA), to be held November 8-10, 2001 in Almaty, which will be attended by the OSCE Secretary General.

In the near term, the OSCE Almaty office announced, the organization will hold training programs for Kazakhstan border guards, a series of seminars on human rights and meeting on the burial of nuclear waste.

South Kazakhstan prepares for Afghan refugees

South Kazakhstan region health authorities have received an additional 50,000 doses of tuberculosis vaccines and other medical supplies in anticipation of a wave of refugees from southern Central Asia as American military strikes against Afghanistan's ruling Taliban militia get underway. The South Kazakhstan regional administration held a closed-door meeting late last week to discuss options for housing and providing for a wave of refugees. Officials decided to take a full inventory of all camps and other interim housing facilities that could shelter refugees this winter.

Secretary of State of the Holy See awarded Kazakhstan's order

On October 7, 2001, Imangali Tasmagambetov, visiting Deputy Prime Minister of Kazakhstan, awarded order Dostyk (Friendship) of the 1st grade to Cardinal Angelo Sodano, Secretary of State of the Vatican. Mr. Tasmagambetov said Cardinal Sodano was awarded this order in recognition of his great contribution to successful development of friendship and cooperation between Kazakhstan and the Vatican.

Cardinal Sodano expressed his sincere appreciation and gratitude for the award to President Nursultan Nazarbayev and stressed that when the world is facing new challenges, Kazakhstan's wise policies allow supporting and strengthening inter-confessional harmony, language diversity and civic peace. In its turn that allows the successful implementation of reforms and movement along the path of peace and progress. Cardinal Sodano said the Vatican had an opportunity to witness all this during a remarkably organized visit of Pope John Paul II to Kazakhstan in September 2001.

ECONOMY

Oil investment into Caspian to continue

Heavy investment by oil majors in central Asia's oil-rich Caspian region will see no let-up after the suicide attacks on the United States, company executives said last week, REUTERS reported from Almaty.

Speaking at a conference in Kazakhstan, oil officials said their projects in the region could weather even a sharp drop in the oil price if global recession hits. And they saw few risks of any conflict in Afghanistan spilling over into the oil-rich Caspian.

``We have contingency plans, we look at scenarios for all different oil prices, high prices, low prices,'' Guy Hollingsworth, president of Chevron Eurasia, told Reuters on the sidelines of the KIOGE conference in Almaty. Chevron, owner of 50 percent of the Tengizchevroil joint venture developing the vast Tengiz oilfield, was the first U.S. major to enter Kazakhstan after the fall of the Soviet Union.

``We don't see prices going low enough to stymie development here in Kazakhstan,'' Hollingsworth said, adding that Chevron planned to move ahead with its investment in the company even if oil prices fell further.

``The short-term and long-term outlook is that the oil industry business in Kazakhstan will continue as before,'' said Martin Ferstl, President of the Shell Companies of Kazakhstan.

The newly-built Caspian Pipeline Consortium (CPC), from Tengiz to the Russian Black Sea port of Novorossiisk, is set to start pumping oil soon, although a firm date has not been given. BP and Chevron were confident a $3 billion U.S.-backed oil pipeline from Azeri capital Baku to the Turkish port of Ceyhan would also be built.

The bosses dismissed security fears for Kazakhstan, which has the lion's share of the Caspian's oil, even though it shares borders with Turkmenistan and Uzbekistan, both of which border Afghanistan.

``We are watching the situation very closely and we're in daily contact with our embassy here, but if you look at the topography there are some huge mountains between us and Afghanistan,'' Hollingsworth said.

KazTransOil posts big increase in half-year profits

Kazakhstan's national oil pipeline operator KazTransOil, a unit of national oil and gas transport holding TransNefteGas announced on October 8 that its mid-year net profit in 2001 rose 242% year-on-year and totaled KZT 5.3 billion (KZT/USD 147.90). Sales in the first six months of 2001 rose 48% over January-June 2000 and totaled KZT 21.4 billion. KazTransOil transports roughly 80% of oil produced in Kazakhstan and represents the government in all major oil pipeline projects in the country.

Kazkommetsbank first to receive certificate for VISA "smart card"

Major Kazakhstan's commercial bank KaKommertsbank is the first Central Asian financial institution to receive a certificate to issue VISA "smart card" credit cards, Kazkommertsbank Chairman Daulet Sembaev announced at a press conference in Almaty this week. Mr. Sembayev said KKB planned to invest "several hundred thousand dollars" in the project.

VISA "smart card" contains a chip that ensure higher security, speedier payments and more information than other credit cards, which use a magnetic strip on the reverse of the card.

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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