Astana Calling No. 306

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 306 / FRIDAY, MAY 31 2013

CSTO Members Meet in Bishkek Informal gathering of four leaders

Leaders Meet in Astana for Higher Eurasian Economic Council Further integration discussed

Parliament Approves Draft Law on Gas Pipeline with China China to finance third branch of pipeline

President of European Commission to visit Kazakhstan JosĂŠ Manuel Barroso arrives this weekend

News from the Government in Brief

Also in the News

Things to Watch

(L-R) President Atambayev of Kyrgyzstan, President Nazarbayev of Kazakhstan, President Putin of Russia and President Rahmon of Tajikistan arrive at the CSTO meeting

CSTO Members Meet in Bishkek The Presidents of Kazakhstan, Kyrgyzstan, Russia and Tajikistan met in the capital of Kyrgyzstan, Bishkek, on May 28, to hold an informal meeting of the Collective Security Treaty Organization (CSTO). They were joined by the Secretary General of the CSTO, Nikolay Bordyuzha. The main subject of discussion was security in the Central Asian region after the withdrawal of foreign troops from Afghanistan in 2014.

Tuesday’s meeting brought together Nursultan Nazarbayev of Kazakhstan; Almazbek Atambayev of Kyrgyzstan, who hosted the meeting; Vladimir Putin of Russia; and Emomali Rahmon of Tajikistan. The principal focus of the informal meeting was Afghanistan.

The four leaders agreed that it is essential to try to ensure stability in the country after the withdrawal of coalition forces in 2014.

They discussed possible military assistance to the government of Afghanistan, as well as offering help to ensure internal political stability in the country.

The four leaders agreed that they must ensure the security of their own borders and that their joint rapid deployment force must be properly equipped. Also, not only must they guard against any possible military threat to their countries after the departure of foreign troops from Afghanistan; they expressed concerns, too, over any displays of extremism, and also the dangers posed by the trafficking of drugs from Afghanistan.

Wider questions of international and regional security were also discussed, as well as fundamental questions of ensuring stability in their own countries and measures to be taken in the event of any new threats to their security.

On the initiative of President Atambayev, the leaders discussed also the construction of a railway to directly link Russia-KazakhstanKyrgyzstan-Tajikistan. While acknowledging that this issue does not fall within the scope of the CSTO, the presidents agreed that such a project should be examined by the relevant bodies within each country, and that a plan be drawn up to look at the viability and cost of such a venture.

The CSTO was founded on October 7 2002 as a successor to the Collective Security Agreement Organization. As well as the four countries represented at this week’s meeting, Armenia and Belarus are also members. The Organization’s main functions are to ensure the security of each member state; to defend the sovereignty and territorial integrity of each member state; to strengthen the armed forces of each country, both militarily and organizationally; to preserve the unified air defense system; and to liaise and cooperate in the defense of borders with countries which do not belong to the CIS. The governing body of the CSTO is the Collective Security Council (CSC). The CSC takes the decisions on the activity of the CSTO. The heads of state of each member country sit on the CSC.

“Today’s discussions by the heads of member states of the CSTO have given a serious impetus to the future work of the Organization in the light of increasing efforts in the Central Asian region for ensuring the safety and stability of these countries.”

CSTO Secretary General Nikolay Bordyuzha

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Five Presidents in Astana this week

Leaders Meet in Astana for Higher Eurasian Economic Council Five leaders of former Soviet republics got together in Astana on May 29 for joint talks and a series of one-onone meetings. The reason for the gathering was a meeting of the Higher Eurasian Economic Council, bringing together the members of the Customs Union of Kazakhstan, Russia and Belarus. It was the first time this year that the three members of the Customs Union had met. There was also the opportunity for further discussions to be held on plans to create the Eurasian Economic Union (EEU) in 2015.

It was the second day in a row that President Nursultan Nazarbayev met his opposite numbers from Russia, Vladimir Putin, and from Kyrgyzstan, Almazbek Atambayev. On May 28 the three leaders had been among those attending the informal meeting of the Collective Security Treaty Organization in Bishkek (see above). But if security had been top of the agenda in Bishkek, the discussions in Astana centered on trade. The President of Belarus, Alexander Lukashenko, flew in for the meeting, as a founder member of the Customs Union. And the four presidents were joined, too, by Ukrainian President, Viktor Yanukovych.

Kyrgyzstan announced in 2011 that it wishes to become a member of the Customs Union. And Ukraine has requested observer status of the organization. Ukraine is looking for areas of cooperation with the EEU that will not impede its efforts to integrate into the European Union and its activity in the World Trade Organization.

President Putin and President Nazarbayev in discussion

One of the items discussed was the creation of an integrated information system for internal and bilateral trade within the Customs Union. The members of the Union are also keen to agree the framework of agricultural policy and the general outline of macro-economic policy for the period 2013-2014.

President Lukashenko in talks with President Nazarbayev

President Nazarbayev used the occasion also to host one-on-one meetings with his visitors. He welcomed President Yanukovych, saying that just as relations between the countries of the Customs Union had grown rapidly after the creation of the Union, so relations between Kazakhstan and Ukraine were growing apace. Trade turnover between the two countries had grown by 24% in the past year, he added.

President Lukashenko told President Nazarbayev that Belarus sees Kazakhstan as, “the most attractive partner for Belarus, with the most promising prospects”. President Putin praised President Nazarbayev for all his efforts in improving relations between Russia and Kazakhstan, and said that the growing trade relationship between the two countries was tribute to this. For his part, President Nazarbayev thanked his Russian counterpart for the invitation to take part in the forthcoming G20 Summit in St Petersburg.

President Yanukovych meets with President Nazarbayev

“Our task is to develop mutual trade and strengthen the Customs Union. Ukraine and Kyrgyzstan are also interested in this, which is why their leaders have come to Astana. They have an excellent opportunity to see how the process of integration is progressing, which will help them to make their own decisions in the future.”

President Nazarbayev ASTANA CALLING / ISSUE 306 / 3

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Parliament Approves Draft Law on Gas Pipeline with China On Thursday the lower house of parliament, the Majilis, approved the draft law, “On the ratification of the Protocol on introducing amendments and additions to the Agreement between the Government of the Republic of Kazakhstan and the Government of the People’s Republic of China on cooperation in the construction and use of the Kazakhstan-China gas pipeline, dated August 18 2007”.

The aim of the amendments is to add a specific pipeline – designated “C” – dedicated to Kazakhstan’s own gas exports to China (as distinct from “A” and “B”, the Kazakhstan section of the Turkmenistan-China transit pipeline).

The construction of the third line will be carried out with Chinese investment, and there will be no need to resort to the Kazakhstan government’s budget. Astana and Beijing have long supported the idea of an additional pipeline. In June 2010, KazMunaiGaz’s and CNPC’s subsidiaries, KazTransGas and Central Asia Gas Pipeline, signed an agreement to build the Beyneu-Shymkent pipeline as a parity joint venture. Originating in the Mangistau region on Kazakhstan’s Caspian coast, this line connects with the pipeline bound for China, at a junction point near Shymkent in the south of Kazakhstan.

The Beyneu-Shymkent line is planned to carry gas from Karachaganak, Tengiz, and potentially Kashagan, relying in part on the capture of associated gas at those oil fields. The 1,475km pipeline route is longer than Kazakhstan’s section of the TurkmenistanChina transit pipeline. The Beyneu-Shymkent line is expected to go into operation in two phases, with a capacity of 10 to 15 billion cubic meters (bcm) per year when both phases are completed by 2013 and 2015, respectively.

Line “C” can also be used to supply gas coming from Turkmenistan or Uzbekistan for domestic use in Kazakhstan, as well as for export to China. The southern regions of Kazakhstan have experienced shortages of gas in the past, and it is hoped that, with China’s cooperation, this problem will now be solved.

The fact that some regions of Kazakhstan can experience shortages of gas illustrates the country’s conundrum over gas supplies.

Even though Kazakhstan has projected reserves of natural gas of between six and eight trillion cubic meters, most of Kazakhstan’s natural gas reserves are located in the west. But the country’s population is located mainly in the north, east and south. Some of these regions already import gas from neighbouring Russia or Uzbekistan. Despite its sizeable reserves of gas, Kazakhstan mainly serves as a transit country for gas exports from Uzbekistan and Turkmenistan that go to Russia and China.

Being a transit country for gas from elsewhere is a major boost for the economy of Kazakhstan. The longest transit section of the Turkmenistan-Uzbekistan-Kazakhstan-China transit pipeline passes through Kazakhstan’s territory. This is 1,115km out of a total of 1,830km. (There is a further 4,860km in China itself, all the way to the distribution center at Guangzhou.)

“The strengthening of relations with China is one of the priorities of our foreign policy that is mentioned clearly in Strategy “Kazakhstan-2050”. There are no contradictions between our countries that cannot be overcome. The only question is how to enable the further strengthening and broadening of the range of our co-operation.”

President Nazarbayev in an interview with “China Daily” in April 2013

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President Nazarbayev and the President of the European Commission, José Manuel Barroso, in Brussels in 2010

President of European Commission to visit Kazakhstan The President of the European Commission (EC), José Manuel Barroso, will make an official visit to Kazakhstan, June 1-3. This will be the first time that he has come to Kazakhstan and his visit will underline the warm and developing relationship between Kazakhstan and the European Union (EU), which has already seen the EU become Kazakhstan’s largest trading partner.

Mr Barroso is coming to Kazakhstan in response to an invitation from President Nazarbayev. The President is keen to continue the already strong relationship between Kazakhstan and the EU. The EU is already Kazakhstan’s key global trading partner, ahead of its neighbors, Russia and China. In 2012, the trade turnover between Kazakhstan and the EU was USD 54 billion; and in the 20 years since 1993 there has been USD 80 billion of foreign direct investment (FDI) into Kazakhstan from the EU, which represents almost 50% of all FDI into the country. Kazakhstan is an important supplier of energy to the EU; only Russia and Norway sell more oil to the EU than does Kazakhstan.

Another important factor in the relationship between the two sides is the major construction project of the “Western EuropeWestern China” transit corridor through Kazakhstan. With 2,000km of the corridor going through Kazakhstan, the project will not only benefit Europe and China, but will also be a major boost for Kazakhstan’s trade with Europe and China.

During his visit, Mr Barroso will hold talks with President Nazarbayev, the Prime Minister, Serik Akhmetov, and the Chairman of the Majilis (lower house of parliament), Nurlan Nigmatulin. As well as a general discussion about the strengthening of the political dialogue between Kazakhstan and the EU, a major topic of the talks will be the progress towards a new Partnership and Cooperation Agreement. The original Agreement ran from 1999 until 2009. This was extended until 2011, when talks began on the signing of a new Agreement. Mr Barroso’s visit will be an excellent opportunity to continue this dialogue.

Other topics on the agenda for Mr Barroso’s visit will be the further development of the trade relationship; discussions on improving the visa regime between Kazakhstan and the EU; prospects for improved cooperation on issues of security; and talks on civil aviation, science, innovation and new technologies.

Mr Barroso was Portugal’s Prime Minister before his appointment as President of the European Commission in 2004.

“The amount of oil from Kazakhstan used in a number of European states is high. German experts have calculated that every third liter of petrol in Germany and Austria is produced from oil from Kazakhstan. Kazakhstan is interested in strengthening its strategic energy dialogue with the EU.” Ministry of Foreign Affairs of Kazakhstan

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News from the Government in Brief Renewable Energy in Kazakhstan to Come from One Center All renewable energy in Kazakhstan will come from one central point at a fixed tariff, according to the adviser on energy efficiency and renewable energy in the UN Development Program, Gennady Doroshin. By channelling all renewable energy through one point, bureaucratic barriers will be avoided and it will make it easier and more attractive for investors to put money into renewable energy projects. Mr Doroshin expressed the hope that this will be a great stimulus for the development of alternative energy sources in Kazakhstan, which in turn will help to bring the price down.

There are already 25 renewable energy projects in operation in Kazakhstan, using solar energy and hydro-electric power in the mountains. A number of other projects are due to come on line this year, most notably the Yermentau wind park. It is intended that this will provide the energy to power the pavilions of EXPO-2017 – the theme of which is renewable energy sources.

Minister of Labour: “Only 12% of Disabled People Work in Kazakhstan” The Minister of Labour and Social Welfare, Serik Abdenov, reported to the government this week that fewer than 50,000 disabled people are working in Kazakhstan, which represents only 12% of those who are capable of work. By comparison, he added, in developed countries some 40% of such people have jobs. In 2012, 4,135 disabled people applied to the social security authorities for work, of which a little over half, 2,325, were found work.

There are currently 33 enterprises in Kazakhstan run by the society of the blind and 18 by the society of the deaf. Some 4,000 people are permanently employed in these enterprises. In order to improve opportunities for the disabled, the government is currently reviewing a draft law, “On social workplaces”. Other measures are being drawn up with the Finance Ministry to help support organizations which have been set up by disabled people. And as part of the “Employment 2020 Program”, more will be done to help disabled people receive the education and training they need to help them find work.

Kazakhstan and Russia to Jointly Combat Locusts The Agriculture Ministries of Kazakhstan and Russia have agreed to carry out joint research to combat the problem of locusts. Damage done to crops by locusts can be a massive problem in both countries, although weather forecasters are predicting that the conditions this year may mean that there is not a mass migration of locusts. Whether or not this is the case, KZT 116m has already been allocated from the state budget to provide for 237 researchers and 205 vehicles to do battle with the locusts. Enough insecticide has already been sent out to cover two million hectares, and more than KZT 1.8bn has been set aside to purchase pesticides.

A separate problem which still remains concerns cases of individual locusts. Such cases are expected to affect 578,000 hectares; 67,000 hectares have already been treated.

KazTransOil to Invest Money from “People’s IPO” into Pipelines KazTransOil is preparing to invest the money it raised from the “People’s IPO” into expanding its pipeline network on the Kazakhstan-China route and also the route Kalamkas-Karazhambas-Uzen-Aktau. The money will pay for both new pipelines and new pumping stations which will improve the effectiveness of the system by 30%, leading to greater exports of oil and thus higher profits. The company believes it has the capacity to improve its profits in 2013 compared to 2012 also by 30%, which will lead to lower costs, more investment in innovative technological projects and greater efficiency.

In 2012 the consolidated profit of KazTransOil amounted to KZT 33.5bn, which was already 29% up on 2011. Nearly KZT 29bn was paid out in dividends to shareholders; 86% of the consolidated profit for the year. This means that the share price of KazTransOil stands at KZT 75, or an increase of 10.3% on the original price.

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Also in The News…

Kazakhstan and Ukraine reach agreement on missile partnership • Kazakhstan and Ukraine have reached an agreement on an equal partnership in the “Dnieper” project for using the modified RS-20 intercontinental ballistic missile, the Ambassador of Ukraine to Kazakhstan, Oleg Demin, announced this week.

Ambassador Demin said also that the prospects are encouraging for cooperation between the two countries in other areas, notably energy; aviation; the agrarian sector; and the training of specialists. Ukraine also supports Kazakhstan in its plans to develop the Baikonur Cosmodrome. (tengrinews.kz) Latest mission to International Space Station charts new path from Baikonur • The latest crew to go to the International Space Station (ISS) took off from the Baikonur Cosmodrome in Kazakhstan on Tuesday May 28. Thanks to a new flight profile, the crew arrived at the ISS less than six hours later, instead of the usual two days. The flight path is technically more difficult and requires some very precise orbital adjustments, but it is deemed to be easier on the crew because it means they do not have to spend so long inside their cramped vehicle. The new crew – the 36th to fly from Baikonur to the ISS – is made up of a Russian, Fyodor Yurchikhin, an American, Karen Nyberg and an Italian, Luca Parmitano. Mr Yurchikhin and Ms Nyberg have been into space before, whilst it is the first time for Mr Parmitano. (kazinform.kz) Kazakhstan-Latvian commission meets in Riga • The fifth session of the Kazakhstan-Latvian inter-governmental commission on cooperation in trade and science and technology took place in Riga on May 27. Topics discussed included transport and transit; tourism; agriculture; and education and science. The two sides also discussed the forthcoming visit to Kazakhstan by the President of Latvia, Andris Berzins. (mfa.gov.kz) New Ambassador of Kazakhstan appointed to Thailand • Marat Yesenbayev has been named as the new Ambassador of Kazakhstan in Thailand. Until recently, Mr Yesenbayev was working in the Diplomatic Mission of Kazakhstan in Norway. (tengrinews.kz) New Book reveals history of Japanese Prisoners-of War in Karaganda • Academics from the Karaganda “Bolashak” University were invited to Japan this week to present their book, “Japanese Prisoners-of-War in the Karaganda Region”. The book examines this little-known question from history, looking into the numbers of PoWs; the conditions under which they were kept; the work they were given; questions of repatriation; and the lives of individual prisoners. The authors visited a number of places in Japan and met some of the survivors. (tengrinews.kz) Latest Healthcare figures show improvement • The latest figures on healthcare in Kazakhstan show that average life expectancy is increasing; the number of births is higher; the death rate for mothers and children has fallen; and the incidence of tuberculosis (TB) is down. Life expectancy in 2012 was up to 69.57 years, compared to 66.38 in 2007. Over the same period, the birth rate per 1,000 of population rose by 8.41% to 22.58, while the death rate fell by 17.7%. In 2008, Kazakhstan adopted childbirth practices recommended by the World Health Organization. This, combined with widespread vaccination of new-born children and improved infant surgery practices has seen a marked decline in the death rate for mothers and young children. And there has been a 35% reduction in the number of cases of TB since 2007. (ortcom.kz) Astana population continues to grow • The population of Astana at April 1 2013 stood at 785,716, which shows an increase of nearly 7,500 inhabitants since the start of the year. This figure represents 4,092 births and 3,384 migrants into the city. Compared to the first three months of 2012, the figures for both births and deaths have increased. The number of marriages registered in this period showed an increase on the same period in 2012 of 10.8%; and the number of divorces also increased, by 5.2%. (zakon.kz) ASTANA CALLING / ISSUE 306 / 7

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Ministry announces more grants for studies abroad • The Ministry of Education and Science has announced that in the academic year 2013-2014 the following countries are offering grants for study to students from Kazakhstan: Kyrgyzstan, five places (two bachelors’ degrees, three masters’ degrees); Belarus, six places (three bachelors’, two masters’, one PhD); Vietnam, three bachelors’; China, 139 places; Ukraine, 40 places (30 bachelors’, ten masters’); Slovakia, four places (two masters’, two PhDs); Romania, five places (one bachelor’s, two masters’, two PhDs). Under international agreements, other grants will be available from China, Turkey, Finland, Ukraine, Russia, Slovakia and Romania. This is on top of the grants for masters’ degrees and PhDs made available under the “Bolashak” programme and other annual educational prizes which are available. (tengrinews.kz) School year draws to a close • May 25 2013 became a significant date in the lives of 3,686 teenagers in Astana, as it was the day they finished their time in secondary school. All but 400 of these students now face the Unified National Examination between June 1-10; the rest have already won international Olympiads or other scientific competitions and are exempt from the national exam. In all, throughout the country 143,000 children have completed their schooling this year. (news.nur.kz) Teacher’s essay on EXPO-2017 wins two-week trip to England • The result has been announced of the competition for teachers of English in Astana, which was held in celebration of Astana being awarded EXPO-2017. Contestants had to pass three rounds. First, they had to write an essay on what EXPO-2017 means to them; then demonstrate their knowledge of English; then describe what they like to do as a hobby outside school.

An international, multi-lingual jury assessed the entrants and awarded first prize to Maria Vlasova, a teacher at secondary school No.25. She wins a two-week trip to England. (kazinform.kz) International Women Boxers compete in Akmola Region • For the first time in the history of boxing in Kazakhstan an international women’s boxing tournament is being held in Shchuchinsk, in Akmola Region, from May 29 to June 2. As well as the team from Kazakhstan, teams from Azerbaijan, Russia and Ukraine are competing. The team from Kazakhstan boasts Marina Volnova, who won the bronze medal in women’s boxing at the London Olympics in 2012. (kazinform.kz)

Things to Watch • Latvia’s President Andris Berzins will visit Kazakhstan June 2-4. As part of the visit, he will take part in a ceremony to open a monument in Karaganda Region to Latvians who were the victims of political repression.

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

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