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ASTANA CALLING

Ministry of Foreign Affairs Republic of Kazakhstan

Central Communications Service for the President of Kazakhstan

A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO 300 / FRIDAY, 19 APRIL 2013

Finnish President Visits Astana “Green” economy tops agenda

Machine-Builders’ Forum in Astana Modernization of machine building sector essential

Studying for the Future Celebrating 20 years of the “Bolashak” educational program

MINEX Central Asia 2013 Astana hosts Central Asia’s leading mining event

Also in the News

President of Finland Sauli Niinistö greets President Nazarbayev

Finnish President Visits Astana Astana welcomed the President of Finland, Sauli Niinistö, this week, on the first state visit to Kazakhstan by the Finnish leader. The visit was yet another step forward in the increasingly warm relationship between Kazakhstan and Finland.

Diplomatic relations were established in May 1992; each country now has an Embassy in the other’s capital; and in March 2009 the President of Kazakhstan, Nursultan Nazarbayev, paid a state visit to Finland.

Talks between the two Presidents took place in a genuinely warm and friendly atmosphere. The two men have met before: when President Nazarbayev visited Finland, Mr Niinistö was the Speaker of the Finnish Parliament; and in March last year they held talks in Seoul when they were both attending the Summit on Nuclear Security, seen by both sides as an important subject.

Another important topic on which both sides are keen to cooperate is the question of the “green” economy. President Nazarbayev and President Niinistö attended the Kazakhstan-Finnish Forum on the “green” economy and modernization, at which ways were examined to bring to Kazakhstan the innovative and ecologically-clean technologies which are already well developed in Finland.

This forum was the continuation of the dialogue which Kazakhstan’s Minister for the Environment, Nurlan Kapparov, held in Helsinki last month.

With the theme of EXPO-2017 in Astana being, “Energy of the Future”, Kazakhstan is keen to strengthen its “green” relationship with Finland. It is hoped that Finnish energy and technology companies will play an important part in EXPO-2017.

More general trade relations between Kazakhstan and Finland also formed an important part of the discussions between the two Presidents. The trade relationship reached its peak in 2008, when the trade turnover between the two countries went over the USD one billion mark. Unfortunately, the global recession, which hit business so badly, also made its mark on Kazakhstan-Finnish trade relations, and in 2009 trade virtually halved.

But since then the tendency has been for a gradual improvement once again. In 2012 turnover between Kazakhstan and Finland was over USD 750 million, of which approximately two thirds represents exports from Kazakhstan, and one third imports into Kazakhstan.

Oil and oil products, as well as gas and some coal represent the main products which are exported from Kazakhstan to Finland; while machinery – especially for use in the mining industry – is an important import from Finland.

With this in mind, members of the business delegation which was travelling with President Niinistö stayed on in Astana for MINEX Central Asia, the Fourth Mining and Exploration Forum which was held in the capital of Kazakhstan from April 16-18.

“The relationship between Kazakhstan and Finland has been developing successfully since 1992, and we are determined to encourage even closer bilateral economic and political cooperation. Because of this, we regard the visit of President Niinistö as very important, and we will do everything to ensure that this visit is fruitful and helps to strengthen our friendship and wider relations.”

President Nazarbayev

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Minister of Education and Science, Bakytzhan Zhumagulov

Studying for the Future This week’s meeting of the government concentrated on marking the 20th anniversary of the start of the “Bolashak” educational program. The “Bolashak” program – the word means “future” in the Kazakh language – was established by the President of Kazakhstan in 1993 to provide educational grants for students from Kazakhstan to study abroad, particularly on Master’s and PhD courses. It is believed to be unique in world education.

Since the program began, 9,250 people have benefitted from the grants provided. Currently, 2,796 post-graduate students from Kazakhstan are studying in 33 different countries, thanks to “Bolashak”. As the Minister of Education and Science, Bakytzhan Zhumagulov, explained to the meeting, over 20% of graduates from the program are now working in the state sector; 21% in stateowned or partially state-owned companies; 55% in private companies; and 4% in international organizations or non-governmental organizations (NGOs).

Mr Zhumagulov pointed out that there are now leading figures in Kazakhstan society who went through the “Bolashak” program.

And they work in diverse areas: in the scientific field, engineers, biologists, doctors and surgeons have improved their qualifications thanks to “Bolashak”. In the world of the arts, there are film directors and the outstanding opera singer, Maria Mudryak.

And as well as helping the individuals who go through the program to fulfil their personal ambitions, “Bolashak” brings benefits to Kazakhstan as a whole. It improves the country’s image on the world’s stage. It shows the world the achievements and abilities of this young state. And it gives people from Kazakhstan access to their peers in the world’s leading educational establishments and in high society.

The program is constantly evolving, which the Minister insisted was essential for its further development. The number of higher educational institutions around the world to which students can be sent has been reduced to 200 of the world’s finest establishments.

Since 2011, those who are sent abroad to study on “Bolashak” grants now go with specific tasks for study given by organizations. And there is a wider distribution of students from around the country. In the period 2005-2010, on average 75% of students applying came from Almaty and Astana. But now that it is possible to apply online, there has been a marked increase in applications from students in the provinces. In 2011, 39% of all applications came from the regions, and this increased to 47% last year.

This greater spread of qualified specialists throughout the country can only benefit Kazakhstan, Mr Zhumagulov told the meeting.

One of the tasks of the country’s development program, “Strategy-2050”, is to raise the level of education and specialization throughout Kazakhstan. Not only does this more widespread take-up of grants under the “Bolashak” scheme fit into this aspect of the Strategy, but it also answers the general plan for improving the economy.

“The ‘Bolashak’ program has become a symbol of the achievements and possibilities of our country.

It demonstrates that education gives a great social lift to our young people.”

Minister of Education and Science, Bakytzhan Zhumagulov

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Machine-Builders’ Forum in Astana This week the Machine-Builders’ Forum took place in Astana. More than 700 delegates took part in the event, not only from Kazakhstan but from other CIS countries and also further afield. There were state officials; leaders of companies from Kazakhstan and abroad; representatives of international machine-building organizations and scientific institutes; and diplomats.

The importance of the gathering was shown from the outset, when it was opened by the Prime Minister of Kazakhstan, Serik Akhmetov, who read out an address to delegates from President Nazarbayev. The Head of State stressed the importance to the national economy of the machine-building sector, describing it as one of the “key areas”. For this reason, the President’s address continued, the state was doing all it can for the sector: the institutional and legal basis is in place for its development; the investment climate is being improved; and mechanisms are being put in place for private-public partnership (PPP), which will help the machine-building sector to expand.

All of these points tie in with the State Program of Accelerated Industrial-Innovative Development for Kazakhstan for 2010-2014.

As a part of this, more than 50 laws have been updated since 2010, and nearly 500 new production facilities have been brought on stream, at a cost of some KZT two trillion. Entrepreneurs in this field have been strongly supported by the state, and 1,500 enterprises have received state help. Over 100,000 people have found work under the State Program, and there has been a subsequent increase in the demand for those with engineering and technical specialities.

The list of keynote speakers at the Forum underlined not only the importance of the event to the industry in Kazakhstan, but the need for cooperation in this sphere between government and industry. After the Prime Minister had opened the Forum, the Minister for Industry and New Technologies, Asset Issekeshev, spoke; he was followed by the Head of the Union of MachineBuilders, Meyram Pshembayev; the General Manager for Europe and the CIS of General Electric Transportation, Gokhan Baykhan; and the General Director of the “Belkamit” Machine-Building Factory in Kazakhstan, Pavel Beklemishev.

As Mr Akhmetov noted in his conclusion, repeating one of the principles on which the State Program of Accelerated IndustrialInnovative Development is based, “machine-building is one of the fundamental industrial sectors which underpins any economy”.

It is to be hoped that this week’s Forum will have given a boost to future development and innovations in the machine-building sector in Kazakhstan, which is a priority for Kazakhstan’s industrial progress.

“Modernization and reconstruction of factories and enterprises is essential.

We need new technologies and new equipment. Without this it will be impossible to make our production competitive.”

Prime Minister Serik Akhmetov

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MINEX Central Asia 2013 For the fourth year in a row, the world’s leading experts on mining and mineral exploration in the Central Asian region gathered this week in Astana for “MINEX Central Asia”. Building on the experience of the first three years, “MINEX Central Asia” now operates successfully to a tried and tested formula: a two day conference; regional investment sessions; an on-site exhibition; and pre-forum Master Classes aimed at mining professionals.

For the fourth year in a row, the world’s leading experts on mining and mineral exploration in the Central Asian region gathered this week in Astana for “MINEX Central Asia”. Building on the experience of the first three years, “MINEX Central Asia” now operates successfully to a tried and tested formula: a two day conference; regional investment sessions; an on-site exhibition; and pre-forum Master Classes aimed at mining professionals.

Deputy Prime Minister Kairat Kelimbetov

The event is now acknowledged to be the largest and most authoritative international forum on mineral prospecting, exploration and mining in Kazakhstan and Central Asia, and brings together some 500 specialists from government and business. This year there were representatives from 15 countries. As well as delegates from Central Asia and the CIS, there were participants from Australia, Canada, China, Germany, the Middle East, South Korea, Sweden, Switzerland, the UK and the US. This year’s event came at a crucial time for the authorities in Kazakhstan. The government and the Ministry of Industry and New Technologies are currently preparing a new law “On Subsoil Use”. This is expected to remove the ban on issuing new subsoil use licences in Kazakhstan in order to stimulate greater investment into the sector.

The government and the ministry are also working on a mining development program for 2015-2019. The ideas behind the draft program were introduced to the conference by the Deputy Minister for Industry and New Technologies, Nurlan Sauranbayev, who stressed that it was the government’s intention to consult with all relevant geological companies and non-governmental organizations (NGOs). The new program is expected to stimulate the development of Deep and High Stress Mining of strategic deposits, with the emphasis on the single industry mining towns which have grown up around mines, where the life and well-being of the town is entirely dependent on the mine.

Mr Sauranbayev also revealed to the conference plans to create in Astana the Center for Geological Research. The Deputy Minister stressed that this would not simply be a laboratory, but would be a research center operating at international standards, using new technologies and training personnel to the highest level.

The need for such a center in Kazakhstan was also underlined by the Deputy Prime Minister, Kairat Kelimbetov, in his address to the Forum. “Mineral extraction forms the basis of exports from our country”, he told delegates, going on to point out that this accounts for 60% of Kazakhstan’s industrial production. But the country cannot afford to stand still in the area of mineral exploration and exploitation. Expert analysis suggests that by the year 2050 the demand for these minerals will have risen by between 25-50%, compared to current levels.

Delegates to “MINEX Central Asia 2013” were left in no doubt that Kazakhstan is open to cooperation in the planning and practice of mining and mineral extraction.

“Kazakhstan is adopting a new government policy in the subsoil sphere, which demands the use of the latest technologies.

We are implementing a host of measures which will stimulate investment in this area.”

President Nazarbayev

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Also in The News…

• The Security Council of Kazakhstan met this week in Astana, chaired by President Nazarbayev. Two questions were on the agenda: the security of food supplies and the development of services for space exploration. The President stressed that the secure provision of food supplies was one of the most important strategic tasks which the state faces. He emphasized, too, that expanding Kazakhstan’s services for space exploration is a fundamental point of the “Strategy Kazakhstan-2050”. (akorda.kz) • President Nazarbayev sent a telegram of condolence to the US President, Barack Obama, following the terrorist attack on the Boston Marathon. Three people were killed and 170 wounded when two bombs exploded near the finishing line of the race. President Nazarbayev said that terrorism represents a threat to every country, and expressed his sympathies in the name of the people of Kazakhstan to the families and relatives of the victims and to the whole American nation. (akorda.kz) • In the Northern Kazakhstan Region over 1,000 highly productive seeding complexes will be employed in the current sowing season, across a territory of nearly four and a half million hectares. With nearly all of the seeds checked, it has been confirmed that 95% of seeds to be sown are of first or second grade. (bnews.kz) • The Mayor of Almaty, Akhmetzhan Yessimov, used the occasion of a visit to the city by an official Polish delegation to speak of the dynamic development of bilateral relations between Kazakhstan and Poland in business and politics. There are now 47 Kazakhstan-Polish ventures in operation, 25 of them utilizing Polish capital. And the trade relationship between the city of Almaty and Poland grew last year by 21%, to a value of KZT 825 million. (bnews.kz) • The international forum, “Housing EXPO-2013” opened this week in Astana. It is aimed at creating partnerships among all those working in the housing sphere. Of special interest at the exhibition which accompanied the forum were methods of saving on energy consumption, a subject which has been given great attention by the Head of State. (inform.kz) • In the first three months of 2013, 3,486 births were registered in Astana. This represents an increase of 11.7% compared with the same period in 2012, when 3,119 children were born. (bnews.kz) • The Russian Academy of Natural Sciences has awarded Professor Sagimbek Altayuli from the Gumilev Natural Sciences University in Astana, the Alfred Nobel Medal, “For contributions to the development of inventions”. Professor Altayuli has worked in the area of food biotechnology for over 40 years and has a number of inventions and patents to his name. (inform.kz) • Research by the UN’s Economic and Social Commission for Asia and the Pacific Region published this week suggests that migrant labour in Kazakhstan brings in over USD one billion of Kazakhstan’s gross domestic product. Even if migrant workers in theory send all of their pay back home, they spend some of it in the country where they work, on food, housing, health care, entertainment and a wide spectrum of commercial services. (zonakz.net) • Kazakhstan’s Under-18s ice-hockey team chalked up its third victory in the First Division of the World Championship, by beating Austria 5-1. The Austrians levelled the scores after Kazakhstan’s first goal, but the young team from Kazakhstan then scored four more times without reply. (inform.kz)

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

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