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Vol. 4, No. 48, November 14, 2001

Politics

President speaks about Afghanistan and Islam

President urges diplomatic missions to move to Astana

Authorities move against extremists

Economy

Kazakhstan tops CIS economic survey

Kazakhstan poised to become major wheat exporter

Prime Minister meets Phillips Petroleum Vice President

Kazakhstan to boost natural gas production to 50 billion cubic meters by 2015

Another kind of Kazakh exports to the U.S.

POLITICS

President speaks about Afghanistan and Islam

Speaking at an annual gathering of foreign diplomats on November 8, President Nursultan Nazarbayev said the world community should fight not only the consequences of terrorism, but its reasons. In Afghanistan, where during the last twenty years the generations have been warring and growing drugs, the government should be formed under the UN aegis; and the measures for the rehabilitation of the economy should be taken promptly.

President Nazarbayev also noted that one should not confuse Islam with terrorism. Whatever slogan is used to disguise terrorism, it has nothing in common with Islam. Islam on the contrary calls for tolerance and equality, he said.

... and urges diplomatic missions to move to Astana

At the same meeting, President Nursultan Nazarbayev called on the diplomatic corps in the republic to hasten their relocation to the capital of Astana. Mr. Nazarbayev noted that nearly all nationally significant political developments now take place in Astana, where the capital was moved from Almaty in 1997.

Number of diplomatic missions have already made the move to Astana. Currently nine embassies and a number of international organizations have offices in the capital. In addition, Mr. Nazarbayev noted that a number of foreign representations, including the US Embassy, are planning to open offices in Astana in the beginning of 2002. "We hope to create comfortable living and working conditions for the diplomatic corps... I am personally overseeing the construction of the diplomatic village on the Ishym River," said he President.

Authorities move against extremists

Three Kentau (city in southern Kazakhstan) residents were detained in Almaty for distributing leaflets from the banned extremist organization Khisb-Ut-Takhrir. The leaflets reportedly called for the overthrow of the secular governments of the Central Asian republics and the creation of a unified Islamic Caliphate in the region. The documents also warn Muslims against assisting in any way the US-led military coalition fighting international terrorists and the Taliban militia in Afghanistan. The Almaty branch of the National Security Committee (KNB) has teamed up with local police to further investigate the sources of the extremist leaflets and the channels through which they were disseminated.

ECONOMY

Kazakhstan tops CIS economic survey

On November 7, 2001 Minister of Economy and Trade told the members of the Parliament that Kazakhstan sits atop the economic ladder in the Commonwealth of Independent States, boasting the highest average per capita income and one of the highest rates of GDP growth.

Speaking to the deputies, Minister reiterated the revised government forecast for 2001 GDP growth of 12%, up from 9.8% GDP growth in 2000. In addition, he noted that the average salary increased by 7%. Inflation through the first three quarters stood at only 3.8% and the government expects total inflation for the year to stand at under 6%.

Kazakhstan poised to become major wheat exporter

On November 13, 2001 the United States Department of Agriculture released a report where it states that Kazakhstan could soon join the ranks of the United States, Australia and Canada as a major exporter to the lucrative Middle East grain markets.

With a bumper wheat crop of an expected 13 million tons in 2001-02, up from 9 million tons last year, and coupled with planned boosts in government subsidies and an improved internal transportation system, Kazakhstan could make a major splash, especially in Iran, the world's largest wheat importer, in the coming years. "Exporters doing business in the Middle East and North Africa should recognize Kazakhstan's export potential," USDA said.

A rail link between the grain-producing North Kazakhstan, which would then link up to the existing rail system to carry the grain to Caspian Sea ports, is due to be completed in the next two years. Once that link is completed, the reduced transport costs will make Kazakhstan grain very attractive to Iran.

Kazakhstan government is considering offering farmers additional subsidies to cover the costs of fuel, pesticides and herbicides, which would help boost domestic wheat production and bring down the cost of Kazakhstan wheat for export.

Prime Minister meets Phillips Petroleum Vice President

Kazakhstan Prime Minister Kassymzhomart Tokaev this week met with Mr. Dodd DeCamp, Vice President for Worldwide Exploration of the US-based Phillips Petroleum, to discuss cooperation issues within the framework of the Kazakhstan Caspian shelf exploration project being carried out by the Agip KCO consortium (formerly OKIOC).

Mr. DeCamp emphasized the company's interest in active participation in the process of the development of Kazakhstan's oil resources and in long-term investment programs. He further stated that the company intends to employ more advanced technologies and expand cooperation with Kazakhstan national companies.

Phillips Petroleum is a shareholder in the Agip KCO consortium currently exploring the Kashagan deposit, a potentially massive offshore field on the Kazakhstani Caspian Shelf. Other members of the consortium include Eni SpA, the operator of the project, as well as BG, ExxonMobil, Inpex, Shell, and TotalFinaElf.

Kazakhstan to boost natural gas production to 50 billion cubic meters by 2015

According to the Ministry of Energy and Mineral Resources, Kazakhstan could more than quadruple natural gas production to 50 billion cubic meters a year by 2015, up from 12 bcm in 2000. Local demand in 2015 is expected to rise to 16 bcm, while the remainder would be exported or processed by the petrochemical industry, Dow Jones Newswires reported.

Much of that new output will be associated gas from the potentially enormous Kashagan oil field on the Kazakhstani Caspian shelf. Kazakhstan also plans to increase liquefied gas production this year more than fivefold to 700,000 metric tons, up from 125,000 tons in 2000.

Another kind of Kazakh exports to the U.S.

On November 10, a recently reopened women's clothing factory in Almaty region, owned by Silk Road Fashion Ltd., began producing 'Made in Kazakhstan' knitted wear, 100 per cent of which is intended for export to the United States. The factory is moving fast into its full capacity. While currently 200 qualified seamstresses work at the factory, plans for expansion of production spell opportunity for the increase in the number of employees by another 400 to 600.

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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