Astana Calling #295

ASTANA CALLING

Ministry of Foreign Aairs Republic of Kazakhstan

Central Communications Service for the President of Kazakhstan

A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO 295 / FRIDAY, 15 MARCH 2013

Government discusses Business Road-Map Backs improvement of business climate for entrepreneurs

Justice Minister Proposes Reform of Economic Crime Measures Parliamentarians asked to approve changes

Kazakhstan and Finland Discuss Green Technologies Kazakh-Finnish business seminar on environment

Demographic Situation in Kazakhstan on the Up Modern IVF techniques help improve the birth rate

Also in the News

Chairwoman of the DAMU Fund, Lyazzat Ibragimova

Government discusses Business Road-Map The development of entrepreneurship in Kazakhstan is a subject very much in the sights of the President and the government. Cutting down on the bureaucracy faced by entrepreneurs and encouraging new business are key factors.

A number of programs are already in place to concentrate on this issue during the current decade: “Productivity-2020”; “Employment-2020”; “Agro-Business-2020”; and the “Business Road-Map-2020”. Entrepreneurs themselves see the “Road-Map” as the most crucial document in this portfolio.

The Prime Minister, Serik Akhmetov, chaired a meeting of the government on 12 March devoted to the question of business. Addressing the meeting, the First Deputy-Minister for Regional Development, Kairbek Uskenbayev, noted that, under the auspices of the “RoadMap” as at 4 March 2013 2,812 projects had been subsidized by bank credits to the tune of KZT 710 billion. A further 154 projects had received bank guarantees totalling KZT 19 billion.

Mr Uskenbayev went on to say that as a result of measures introduced within the framework of the “Road-Map”, 136,000 jobs had been saved and 35,000 new jobs created.

These figures were supported by the Chairwoman of the Board of the “DAMU” Entrepreneurship Development Fund, Lyazzat Ibragimova. Ms Ibragimova added that a further 8,000 jobs are expected to be created by the end of 2014. She said that the number of business deals signed by entrepreneurs doubled in 2012.

Chairman of “Atameken” National Economic Chamber, Ablai Mirzakhmetov

Regional development is crucial. Business has welcomed the creation of Entrepreneurship Service Centres. Two pilot schemes have already been set up in Almaty and Shymkent. A further 24 centers to support entrepreneurs have been established in singleindustry cities; and mobile centers to provide support to businesses in remote areas are operating in five of the country’s regions.

“The Head of State puts great store by the development of entrepreneurship. The government will continue to work on cutting back by 30% the number of documents needed to open a business and to optimize the control and supervisory functions of state bodies.”

Prime Minister Serik Akhmetov

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Despite these successes, the government is not resting on its laurels. Mr Uskenbayev insisted that support for small and medium businesses, SMEs, would be increased. A plan for cooperation, “The State and Business”, will be rolled out to give business even more support from the state, and the network of centres supporting entrepreneurs will eventually cover every region. The Prime Minister underlined the importance of this measure, saying that the network should be completed by the end of the year.

Mr Akhmetov instructed the Ministry for Regional Development, in cooperation with “DAMU” and the “Atameken” National Economic Chamber of Kazakhstan, to draw up by May 1 a blueprint for this project within the framework of the “Road-Map”.

The Prime Minister also instructed the Ministry and “Atameken” to carry out an analysis of the legality and methods of investigation of SMEs by state bodies, notably the law enforcement agencies.

Finance Minister, Bolat Zhamishev

First Deputy-Minister for Regional Development, Kairbek Uskenbayev

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Justice Minister Berik Imashev addressing the Majilis on March 13

Justice Minister Proposes Reform of Economic Crime Measures Speaking before the Majilis on March 13, Justice Minister Berik Imashev presented the draft of a law which would simplify and humanize measures aimed at combatting economic crime.

Mr Imashev pointed out that this bill continues the process set in motion back in 2011. Two laws passed in that year, in January and November, removed the threat of prison sentences for a range of petty economic crimes. This latest measure, the Justice Minister continued, would continue the process of decriminalizing certain aspects of economic crime which do not represent a threat to society.

The draft which the Minister presented to parliament proposes changes to ten articles of the Legal Code.

Article 193 of the Legal Code currently calls for criminal liability in the case of the legalization of money or property which has been acquired in a way which is considered illegal. This would be altered so that the legalization of such funds or property would be illegal only if it had been obtained by criminal methods. This would bring the law into line with the demands of the Council of Europe’s Convention on money-laundering.

In two articles, part 2 of Article 203 and Article 205-1, false registration in the register of holders of securities would be punishable by a fine, rather than a custodial sentence.

A change from the category of “moderate” crime to that of “petty” crime is suggested in some areas. As a result, the reduction of the maximum jail sentence from three years to two is proposed in two articles of the Legal Code: Article 202, which deals with the false issue of securities; and Article 217, which deals with false bankruptcy.

Similarly, in part 1 of Article 191, the offence of illegal banking activity would be downgraded to petty crime. Mr Imashev told the Majilis that no-one had been imprisoned under this Article in the last two years.

Under Article 67, changes put forward in the draft would see those guilty of economic crimes of a petty nature, or even first time offenders in the moderate crime category, possibly escaping punishment altogether.

For actions such as illegal entrepreneurial activity, illegal banking activity or violation of excise rules it is suggested that the punishment could be corrective labour, rather than a jail sentence.

Article 219 deals with false reporting on banking operations. Currently, it is an offence to do anything under this Article, “which could affect” trading; if the bill becomes law there would have to be a real significant loss for the law to take effect. Mr Imashev said that the words, “could affect” could be misused by law enforcement agencies and give rise to corrupt practices.

“This draft represents the latest stage in the decriminalisation of certain aspects of economic crime which do not represent a great danger to society.”

Justice Minister Berik Imashev

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Kazakhstan and Finland Discuss Green Technologies Kazakhstan’s Minister of Environmental Protection, Nurlan Kapparov, led a business delegation to Helsinki, Finland, on March 13. Weather, water and energy efficiency were the main items on the agenda of a seminar on “Kazakhstan Green Technologies” held at the Ministry of Foreign Affairs with the participation of several Finnish companies.

Relations between Kazakhstan and Finland have been steadily growing over the last 20 years. Trade improved year-on-year until hit by the global financial crisis in 2008, but even so trade has recovered to the point where in 2012 bilateral trade was once again at the US$500 million mark.

President Nazarbayev visited Finland in 2009, and Kazakhstan is now preparing to receive the Finnish President, Sauli Niinistö, next month. And as more and more attention is paid in Kazakhstan to environmental issues, the country’s leadership is keen to share ideas with Finland, which has a wealth of experience in this area.

As Mr Kapparov said, as Kazakhstan moves towards a “green” economy, it wants to be seen by its European partners not only as a source of raw materials and energy. It is important that Kazakhstan opens a “two-way street” in Europe and “gains experience in the field of state regulation of the real sector of the economy, the environment, education, social services and private sector development”, he added.

“We are interested in the issues of taxation, customs administration, tariff, trade and logistics centers, border areas of international cooperation, as well as the experience of European countries in the development of engineering and technical personnel for industry, transport, energy, experts in the field of agriculture and housing and communal sector”, Mr Kapparov added.

Minister of Environment Protection, Nurlan Kapparov, with Finland’s Minister for European Affairs and Foreign Trade of Finland, Alexander Stubb at the Green Tech seminar in Helsinki

The Kazakhstan delegation was especially keen to hear the views of the Finnish side on water technology, another area where Finland has a wealth of experience. Finnish speakers led a session on this, discussing smart solutions for using, protecting and monitoring water resources.

The session on Energy Efficiency Solutions was of direct relevance to the delegation from Kazakhstan, as energy efficiency is at the heart of EXPO-2017, which is taking place in Astana. Mr Kapparov used the seminar to extend an invitation to companies engaged in projects to create alternative energy sources, saying that EXPO-2017 in Astana can become the right place for the presentation and implementation of these projects.

“We want Astana to be seen as not only the geographical center of the Eurasian continent, but also as the center of technological, scientific and cultural exchange between Europe and Asia. As the world awaits commercial-scale projects to demonstrate the potential of alternative energy sources, Astana can become the right place for presentation and implementation of these projects.

EXPO-2017 will make Astana the world’s first working Third Industrial Revolution demonstrative platform, which will then provide the impetus to cultural and industrial transformation in Central Asia and beyond” Minister of Environmental Protection Nurlan Kapparov

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Dr Tamara Jussubaliyeva, Director of the Institute of Reproductive Medicine

Demographic Situation in Kazakhstan on the Up Few questions in the life of Kazakhstan and its people are seen as more important by President Nazarbayev than the demographic issue. In December, the President devoted a section of his Address to the Nation to this subject, and he spoke publicly about it once more recently when congratulating the women of Kazakhstan on International Women’s Day. President Nazarbayev pointed out that in 2012 379,000 children were born in Kazakhstan, a number one and a half times greater than in 2003. In total, since Kazakhstan gained its independence there have been six million births in the country. And the state is committed to doing everything to maintain population growth.

One way in which the state is helping is by providing grants for in vitro fertilization (IVF) treatment, enabling conception for couples who have been told that they are unable to have children. In Kazakhstan, the Institute of Reproductive Medicine in Almaty, under the Directorship of Dr Tamara Jussubaliyeva, plays a key role in this area.

“We are a young nation. The average age of our country is 35 years. This provides us with a great opportunity to capitalize on our human potential and rightfully position ourselves in the world.”

President Nazarbayev, Address to the Nation, December 14 2012

Speaking this week to the Kazinform news agency, Dr Jussubaliyeva said that she believes that the inability to have children is one of the main reasons for divorce globally. Some 17% of married couples in Kazakhstan do not have children, which equates to about 20,000 newly-married couples each year.

Given the emphasis which President Nazarbayev puts on the role of the family in the life of the country – as of this year, the second Sunday in September will be a new public holiday, Family Day – Dr Jussubaliyeva is keen to do everything possible for her Institute to help childless couples have children. Thanks to the IVF treatment the Institute offers, over the course of the last 16 years there have been 7,000 births. As she puts it, in Kazakhstan this is equivalent to a whole village.

The state offers 600 grants a year for the Institute to offer free IVF treatment to couples. And whereas up until recently they have offered help only to childless women, the Institute can now offer the latest technology to help men who had previously been incapable of reproduction.

The Institute has adopted as its slogan the words of the Nobel Prize Winner, Sir Robert Edwards, who brought about the first IVF birth in 1978: “The most important thing in life is having a child. Nothing is more special than a child.” Now, at least 600 couples in Kazakhstan walk out of the Institute of Reproductive Medicine in Almaty each year knowing this to be true.

“For me there is probably no greater joy than seeing the happiness of others. This year, 600 couples can receive free assisted reproductive technology. That’s 600 couples who can preserve their families.”

Dr Tamara Jussubaliyeva, Director of the Institute of Reproductive Medicine

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Also in The News…

• The Kazakhstan Statistical Agency has begun a new project, “Kazstat”. The aim of the project, which has been promoted by the Head of State and the government, is to improve the quality of the official statistics issued in the country. The project is funded by the government of Kazakhstan and the World Bank, and is being carried out in cooperation with a consortium headed by Germany’s Federal Statistics Office. (BNews.kz) • People from Kazakhstan travelling around the world can now keep in touch with the weather back home. The American international TV channel, CNN, now includes Astana in its list of global capital cities for which it broadcasts the weather conditions. (Tengrinews.kz) • The presentation of a new book, “Kazakhstan-Turkey: 20 years of Friendship and Cooperation”, took place on 12 March in the National Library of Turkey in Istanbul. The launch of the book marked the anniversary of the establishment of diplomatic relations between the two countries; Turkey was the first country to recognize Kazakhstan’s independence. The delegation from Kazakhstan was led by Akhan Bizhanov, Chairman of the Committee on Social and Cultural Development of the Senate. (inform.kz) • An international space seminar is planned for Astana on April 10-11 2013: “Space Days in Kazakhstan”. The seminar, which is taking place on the eve of the anniversary of the first manned space flight by Yury Gagarin on April 12 1961, will also herald the launch later this year of Kazakhstan’s first remote sensing satellite. The launch of a second such satellite from Kazakhstan is planned for 2014. (inform.kz) • In Milan, a delegation from Kazakhstan, headed by the Minister for Environmental Protection, Nurlan Kapparov, held a meeting with the Director of the “EXPO-2015, Milan” company, Giuseppe Sala, and members of the Mayor’s Office of the city of Milan. Mr Kapparov thanked the Italian side for their support in helping to bring EXPO-2017 to Astana, and said that he hoped to see many Italian companies taking part in that event. The Minister noted also that the themes of the Italian and Kazakhstani EXPO events have much in common. The theme of Milan-2015 is, “Food for the Planet, Energy for Life”, and the theme of EXPO-2017 in Astana is, “Energy of the Future”. (government.kz, mfa.gv.kz)

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• Kazakhstan’s parents – and anyone else wanting to save up for their own or someone else’s education – will be able to save for their children’s education in a new way from April. Money invested into the state education savings scheme will be rewarded by the state paying interest of between 5-7% per annum. This will be on top of any bank interest which the money earns. (BNews.kz) • The world-famous Kazakhstani violinist, Marat Bisengaliev, marked his birthday on March 15 in a very special way: at a ceremony in the Embassy of Kazakhstan in Paris, when the US Edward Elgar Foundation awarded him its special prize and golden disc in recognition of his popularization of the work of the great English composer, Edward Elgar. (inform.kz) • The World Team Chess Championship for Women has been taking place for the first time in Astana. Kazakhstan hopes that the success of this tournament will help the city to host the Chess World Cup in 2017 and the International Chess Olympiad-2018. The President of the World Chess Federation, Kirsan Ilyumzhinov, discussed the possibility of this with the Mayor of Astana, Imangali Tasmagambetov. In this year’s competition Ukraine won the gold medal, with China taking the silver and Russia the bronze. The Kazakhstan ladies team came a very creditable seventh. (Sk-sport.kz, fide.com) • Kazakhstani ice-skater, Denis Ten, took second place in the short program at the World Ice Figure-Skating Championships in London, Ontario in Canada. Canadians took first and third places. (inform.kz) • Kazakhstan’s cyclists made an encouraging start in the Asian Championships in New Delhi. In the omnium event, Artem Zakharov took the gold medal. In the individual pursuit, Dias Omirzakov came second. In the 3 km individual pursuit, junior rider Magomed Mamedov won the gold, and in the Junior Women’s 2 km individual pursuit event, Yekaterina Yuraitis took bronze. (BNews.kz)

ASTANA CALLING A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ Please send comments and questions to press@mfa.kz

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