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Vol. 4, No. 52, December 11, 2001

Politics

Kazakhstan joins the United States and other nations in marking September 11

Presidents Bush and Nazarbayev to meet on December 21 in Washington

President Nazarbayev, Secretary Powell talk "strategic partnership"

Economy

Kazakhstan will not cut oil output

KazAtomProm and Canadian partner launch development of Inkai deposit

POLITICS

Kazakhstan joins the United States and other nations in marking September 11

On Dec. 11 at 7:46 p.m. a memorial service took place at the U.S. Embassy in Kazakhstan with the rendition of the national anthems of both nations.

President Nazarbayev addressed the people of Kazakhstan on this occasion with the following statement:

"Dear fellow countrymen! Three months have passed since the horrifying terrorist attacks in New York City and Washington. On September 11 people from many nations were killed, including people from Kazakhstan. Today, when services are being held in memory of innocent victims of terrorism in the U.S. and other countries, the people of Kazakhstan, as is the entire mankind, are feeling sympathy for the American people. It has become perfectly clear to us that the international terrorism targets the entire world. No one and nowhere is safe from strikes of fanatics blinded by their hatred.

We took these inhumane crimes as a challenge to the international community. The terrorists' actions are all the more deplorable because they were aimed at innocent people. This was an unprecedented challenge to the pillars of civilization.

The events of September 11 showed that Kazakhstan was moving along the right path of strengthening stability, interethnic harmony and security of our nation and of the world. We support the steps of the United States and members of anti-terrorist coalition in the fight against this global evil. The international terrorism can and should be confronted with the united strength of nations and peoples, people of good will".

Presidents Bush and Nazarbayev to meet on December 21 in Washington

President Bush will meet President Nursultan Nazarbayev on Dec. 21 in Washington for talks on anti-terrorism efforts, energy issues and economic reforms, the White House said on Tuesday.

"The visit reflects the deepening relationship between the United States and Kazakhstan on counterterrorism, non-proliferation, democracy, energy and pipelines, economic reform and Kazakhstan's integration into the global economy," the White House said in a written statement.

President Nazarbayev, Secretary Powell talk "strategic partnership"

President Nursultan Nazarbayev met Secretary of State Colin Powell during his visit to Astana on December 8-9 as part of his ten-country tour of U.S. allies in the war on terrorism. Secretary Powell also met Foreign Minister Yerlan Idrissov as well as the executives of the U.S. companies that are part of the American Chamber of Commerce in Kazakhstan.

During the official talks a wide range of bilateral issues were discussed, including regional security, cooperation in the fight against international terrorism, provision of humanitarian aid to Afghanistan, and prospects for cooperation between the United States and Kazakhstan in other areas.

The two sides "had a thorough discussion of all the issues that define and structure our strategic partnership and relationship", said Secretary Powell at the news conference after the talks. He also said he brought "greetings from President Bush and the American people on the occasion" of the 10th anniversary of Kazakhstan's independence and an invitation to President Nazarbayev from President Bush to visit Washington on December 21.

Speaking to the reporters, President Nazarbayev said that, with one third of the total volume of investment into Kazakhstan's economy coming from the U.S., "our economic cooperation has a very solid basis. The huge oil and gas

resources of Kazakhstan and diversification of supply routes to world markets, in which we have actively cooperated with the Government of the United States of America, have yielded positive results. One happy event is the completion of the North Caspian oil pipeline (CPC)". Secretary Powell apparently confirmed the great potential for the future of economic cooperation. Talking to the reporters later, he said he was "particularly impressed" with "the amount of money they are looking at investing in Kazakhstan". "They were talking in the range of $200 billion over the next 5 to 10 years," he said, "because they see that kind of potential".

The talks focused on the campaign against terrorism, and especially the situation in Afghanistan. President Nazarbayev said that "from the first few days, Kazakhstan announced that it would be in a coalition with those who struggle against terrorism by all means at its disposal. We have kept our word. We are following our obligations as determined by UN resolutions as well as our agreement with the United States. Kazakhstan has a common position with America on the post-war rehabilitation of Afghanistan so that it can become a friendly and peaceful state".

Secretary Powell "thanked the President for all the support that we have been provided -- political, diplomatic, and military in the form of overflight clearances and the offering for our use of Kazakhstan bases. We focused on the importance of the next phases of this campaign in Afghanistan -- the humanitarian and reconstruction phase -- and I was pleased that the President indicated a willingness to participate fully in humanitarian efforts, as well as in the reconstruction phase with the use of Kazakhstan's facilities, infrastructure, bases, and especially technical people from Kazakhstan who could help the Afghans build their new country".

ECONOMY

Kazakhstan will not cut oil output

Speaking in an interview with Reuters, Minister of Economy and Trade Zhaksybek Kulekeyev reiterated the government's position that Kazakhstan will not cut oil output in the foreseeable future, despite the position of the OPEC that cuts are necessary to stabilize world oil markets.

"So far we have received no official OPEC requests to cut oil production," Mr. Kulekeyev said. Kazakhstan's neighbor and fellow OPEC observer Russia agreed to cut output by 150,000 barrels per day under intense pressure from the cartel. Kazakhstan, which is looking to increase output from about 40 million tons in 2001 to over 60 million by 2005, has no intentions to follow suit.

"We are not going to undertake any obligations (to cut output). On the contrary, we plan to increase production to 46 million tons (920,000 bpd), including gas condensate, next year," the minister said.

"I believe OPEC's interest in Kazakhstan will remain subdued, so to speak, until we start exporting 50 million tons of oil a year," Mr. Kulekeyev added.

KazAtomProm and Canadian partner launch development of Inkai deposit

JV Inkai, a joint venture 40%-owned by national atomic company KazAtomProm and 60%-owned by Canada's Cameco, in November began development of a test section at the Inkai uranium deposit in South Kazakhstan region, the venture's general director Glenn Catchpole announced. Speaking at a meeting of the regional foreign investors council, Catchpole noted that over 35 tons of uranium have already been mined at the site.

Construction of more permanent mining facilities is expected to begin next year, after the preparation of a more detailed feasibility study of the project. Commercial mining at Inkai is planned to begin in 2004.

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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