Astana Calling #271

Official Statement of the Ministry of Foreign Affairs of the Republic of Kazakhstan

Ministry of Foreign Affairs issues statement on September 17 in response to the YouTube video demonstrations

People’s IPO to Launch Before Year End

Company line-up announced

Greening Kazakhstan’s Economy

Seminar addresses sustainable development

International Day of Peace

2012Kazakhstan joins in UNESCO debate

Kazakh-Polish Intergovernmental Commission Meets in Astana

Focus on further economic cooperation

A WEEKLY ONLINE PUBLICATION OF THE

MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF KAZAKHSTAN

ISSUE No 271 FRIDAY, 21 SEPTEMBER 2012

WWW.MFA.KZ

Thingsto Watch

Also inthe News

67th Session of UN General

Assembly67th Session of UN General Assembly

Russia-Kazakhstan Interregional

Cooperation Forum Heads of State agree on further business cooperation

Back to Contents2ASTANA CALLING / ISSUE 271 /C a llinga sta n a

Russia-Kazakhstan Interregional Cooperation ForumRussian President Vladimir Putin visited Pavlodar in Kazakhstan on September 19 to meet with President Nazarbayev and attend the Ninth Interregional Cooperation Forum. By the close of the forum, 27 new agreements had been signed on joint projects with a total economic value of USD 2 billion.

The annual forum was established in 2003 to provide an opportunity to discuss and develop bilateral cooperation. This year the focus was on innovation: topics on the agenda included new mechanisms for cooperation on sustainable development and high technology, and opportunities for joint science and technology projects.

In his address to the forum, President Nazarbayev stressed that Kazakhstan and Russia face similar issues in the modernization of their economy and innovative development. Cooperation on the developing sectors of the future will advance the progress of both countries, the President said.

President Nazarbayev called for the development of a joint research network involving universities, research centers and the business sector. He also invited Russian companies to participate in the Park of Innovative Technologies in Almaty as well as the emerging centers for agrarian innovation and the planned Kurchatov science city. Through these and other measures, the President envisaged a productive technological and industrial alliance between Russia and Kazakhstan.

The heads of state also discussed the joint use of the Baikonur Cosmodrome which, according to President Nazarbayev, could become an international brand of innovation and a symbol of a qualitatively new stage in the development of bilateral relations. President Vladimir Putin emphasized that cooperative innovation will enable Kazakhstan and Russia to diversify sources of economic growth - an urgent priority for both countries. He pointed to the 400 joint ventures already operating in border regions as a solid foundation on which to build. The Russian President called for cooperation in applying new technologies in traditional sectors such as car manufacturing, and also urged more collaboration between small and medium enterprises, which have been shown to drive 30-35% of innovative products and services in developed countries.

Russian and Kazakhstani government officials and business leaders met on the forum’s sidelines to fine-tune the detail of the new bilateral agreements. Chief among these were agreements on the production and sale of Lada vehicles by the AziaAvto and AvtoVAZ companies in Kazakhstan and on a USD 900 milion project to construct a power generating unit at Ekibastuz power station.

To coincide with the forum, Pavlodar is hosting an exhibition showcasing existing cooperation in manufacturing between Russia and Kazakhstan. Over 200 enterprises from 11 regions of Kazakhstan and 15 regions of Russia are participating, to demonstrate the breadth of current cooperation and potential future opportunities.

President Nazarbayev and President Putin at the Interregional Cooperation Forum

“The Interregional Cooperation Forum is an effective platform for developing and strengthening economic relations between our countries.” Nursultan Nazarbayev, President of Kazakhstan

“Regional cooperation is the key to collaboration between our countries. This Forum has played an important

role in creating the Customs Union and Single Economic Space”

President Putin


Official Statement of the Ministry of Foreign Affairs of the Republic of KazakhstanThe Ministry of Foreign Affairs issued the following statement on September 17 in response to the demonstrations and violent protests in a a number of Muslim countries sparked by a video posted on You Tube.

“We condemn the film clip posted on the Internet that is deeply offensive to the religious feelings of all Muslims. Provocations of this kind lead to escalation of violence and stir up hatred between representatives of different religions. They do not promote dialogue between civilizations and nor do they strengthen trust. As Chair of The Organization of Islamic Cooperation Council of Foreign Ministers, we believe that actions of this kind encourage religious intolerance and we again emphasize that the right to freedom of expression should be implemented responsibly. We also strongly condemn the attacks on diplomatic missions in a number of countries. We refer to the recent statement of the Ministry of Foreign Affairs in which we urge all countries to strictly observe their international obligations to ensure the immunity of diplomats and the buildings of diplomatic missions.”

People’s IPO to Launch Before Year EndDetails of the “People’s IPO” program were finalized in Astana on September 14. The IPO program will enable Kazakhstani citizens to invest in shares of some of the largest national companies, at a price that the Samruk-Kazyna National Welfare Fund has confirmed will be accessible to average wage earners.

The first batch of shares, in KazTransOil, is to be offered in the last quarter of 2012, to be followed in 2013 by shares in KEGOC, Air Astana, KazTransGas, Samruk-Energo and KazTransMorFlot. The line-up for 2014 includes Kazakhstan Temir Zholy and KazTemirTrans. The final shares offered in 2015 will be in KazAtomProm and KazMunaiGas.

Retention of state control over strategic facilities is ensured by a limitation of 15% on the initial placement of any company’s common stock. The decision on the exact number of shares to be offered will be made by each company based on their development funding needs, subject to approval by the Government and the Samruk-Kazyna Fund.

As well as expanding share ownership throughout society, the People’s IPO is intended to develop the stock market, create an investment culture in Kazakhstan, and enhance the transparency, efficiency and competitiveness of the country’s largest companies.

At the Astana meeting, Serzhan Alibayev, head of the state shares policy department in the Ministry of Economic Development and Trade, welcomed the opportunity for citizens to invest and multiply their savings, while cautioning that potential investors should be fully aware of the risks inherent in share investment and the need to analyze companies and markets before making their own investment decisions.

Mr. Alibayev added that, based on previous experience both in Kazakhstan and internationally, a key requirement for the success of the People’s IPO will be the provision of sufficient information to the stock market on the companies concerned.

“The ‘People’s IPO’ is a landmark program; not only will it affect the stock market, but it will also influence peoples’ lives by opening up new possibilities and turning their minds to new objectives” Serzhan Alibayev, Ministry of Economic Development and Trade


Greening Kazakhstan’s EconomyGreening the economy to ensure the sustainable development of Kazakhstan was the focus of a seminar held in Astana on September 18. The event was hosted by the Environment Ministry of Kazakhstan and organized by the United Nations Development Program.

Given that Kazakhstan’s economy is highly dependent on its vast natural resources, it is of crucial importance to find the most effective methods of sustainable development. In June this year, at the Rio+20 UN conference on sustainable development, Kazakhstan proposed the ‘Green Bridge’ partnership program and the Global Energy and Environment Strategy. Both initiatives received widespread support from the international community and were included in the final declaration of the Conference.

Following these initiatives, the Government of Kazakhstan is now developing a national strategy on transitioning to a green economy by 2050. This week’s seminar was a forum for open dialogue between business representatives, NGOs, state bodies and international organizations focusing on how to develop Kazakhstan’s green economy as well as considering other countries’ experience in this area.

Environmental experts believe that Kazakhstan possesses unique opportunities and prerequisites for a green economy: vast territory, geopolitical position, and the financial and natural resources to develop renewable energy sources, which can replace environmentally harmful and inefficient power plants. Other opportunities to develop the green economy were identified in modernizing housing and public utilities, introducing sustainable management of pasture and upgrading water management systems.

Tangible steps have already been taken in Kazakhstan to make the economy greener: recent laws promote wind energy, energy saving and the recycling of industrial and solid domestic waste and a new Interdepartmental Council has the mandate to integrate green principles into sectoral policy.

In a recent interview, Environment Minister Nurlan Kapparov said that the transition to a green economy will require investment of up to 2 % of GDP per year. The intention is to supplement state investment with private sector funds by creating the necessary conditions to attract private investors into various sectors of the economy. Mr Kapparov did not rule out the possibility of introducing tax benefits for businesses using green technologies.

“The decision to transition to a green economy shows that Kazakhstan is taking tangible steps towards sustainable development” Stephen Tull, United Nations Development Program Resident Representative


International Day of Peace 2012The International Day of Peace on September 21 was marked by UNESCO with a debate on fostering a culture of peace, held at UN Headquarters in New York City. Building peace is a particular responsibility of UNESCO, which is mandated by its Constitution to build the “defenses of peace in the minds of men”.

In the context of the Rio+20 Conference held in June 2012, the theme chosen for this year’s observance of the International Day of Peace was: “Sustainable Peace for a Sustainable Future”.

UNESCO Director-General Irina Bokova, UN Secretary-General Ban Ki-moon and the President of the 67th session of the UN General Assembly and Minister of Foreign Affairs of Serbia Vuk Jeremic were among the opening speakers at Friday’s debate. Participants included renowned peace activists from the arts, culture and humanities, such as Elie Wiesel, founder of the Elie Wiesel Foundation for Humanity and Nobel Literature Laureate Wole Soyinka.

The debate addressed a wide range of questions relating to the development of sustainable peace. A central idea which emerged was that, in today’s globalized, turbulent international environment, even greater account must be taken of the close links between cultural diversity, dialogue, development, security and peace. One of the most crucial challenges is to rethink these five interdependent notions and develop informed new approaches in all domains.

In this context, there was discussion of Kazakhstan’s proposal for an “International Decade for the Rapprochement of Cultures (2013-2022)”, which was adopted during the 36th UNESCO General Conference in November 2011.

Kazakhstan’s location at the crossroads of civilizations, cultures and religions gives it a particular affinity with the concept of cultural rapprochement. Since declaring independence almost 21 years ago, Kazakhstan has maintained a harmonious and progressive relationship between the 130+ ethnic groups within its borders. A fundamental principle of the state is that multicultural diversity is one of its strongest assets.

As well as respecting multicultural diversity, the concept of the rapprochement of cultures makes an important contribution to a culture of peace, by counteracting the theory of an inevitable collision of civilizations and promoting peaceful and fruitful cooperation between different cultures, religions and traditions.

The proposed International Decade for the Rapprochement of Culture 2012-2013 follows the positive international response to the 2010 UN/UNESCO “International Year for the Rapprochement of Cultures”. The main objective of the Decade is to establish the rapprochement of cultures as a fundamental human value around the world.

A group of Kazakhstani children joined in the celebration of the International Day of Peace through an art event in the UN building, which also currently displays the artwork of finalists in the UNESCO project: “Children paint the world: Central Asia”. Another display narrates the history of the project through 11 albums, with the 2010 album devoted to the “International Year for the Rapprochement of Cultures”.

“Since wars begin in the minds of men, it is in the minds of men that the defenses of peace must be constructed” UNESCO’s Constitution, Preamble


67th Session of UN General AssemblyThe 67th annual session of the United Nations General Assembly opened in New York on September 18. The new President of the Assembly, Serbia’s President Vuk Jeremic, outlined the extraordinary challenges currently facing the UN, which include terrorism, widespread geopolitical instability and the urgent need for sustainable development. Addressing the growing needs of mankind will require a host of new initiatives as well as an unflagging commitment to the founding principles of the United Nations, the President said.

The theme chosen for the 67th Session is “bringing about adjustment or settlement of international disputes or situations by peaceful means”. President Jeremic stressed that peace and security are essential prerequisites for global growth, sustainable development and social progress and pledged the UN’s unwavering commitment to these goals in the current session.

Particular areas of focus will include bringing the world closer to meeting the Millenium Development Goals, as the 2015 deadline for achieving those targets approaches. Work will also advance on the post-2015 agenda, where the key objective will be meeting the mandate received at the June 2012 Rio+20 UN conference on sustainable development; this will include the identification and ultimate implementation of a series of Sustainable Development Goals.

In the economic sphere, President Jeremic said that he will convene an informal, high-level meeting on global economic governance, with the aim of establishing an effective ongoing consultation framework between the UN and key international groups and institutions such as the G8, G20, IMF and World Bank.

The 67th Session will also work towards a successful outcome to the 2015 Nuclear Non-Proliferation Treaty Review Conference, in the interest of advancing arms control and disarmament around the world.

The fight against terrorism will remain high on the Assembly’s agenda, with work ongoing to finalize a draft comprehensive convention on international terrorism. The UN will continue to play a leading role in the protection and promotion of human rights, with a particular focus on human trafficking and combating violence against women.

UN Secretary-General Ban Ki-moon also addressed the Assembly, urging member states to take up the challenge of “turn[ing] today’s good will into a lasting record of progress for the world’s people”. He supported the choice of the peaceful settlement of international disputes as the session’s theme, saying that in a world seeing more incidents of intolerance and hatred, which are then exploited by others, the voices of moderation and calm must speak up in favor of mutual respect and understanding the values and beliefs of others.

Kazakhstan has been a member of the United Nations since March 1992. It is strongly committed to upholding the primary role of the UN in international law and has launched several initiatives through UN bodies, including the Conference on Interaction and Confidence-Building Measures in Asia (CICA), the UN Special Programme for the Economies of Central Asia (SPECA), and the commemoration of August 29 as the International Day against Nuclear Tests.

Kazakhstan’s Foreign Minister, Yerzhan Kazykhanov, will address the General Assembly on September 29.

This week’s opening session of the UN General Assembly


Kazakh-Polish Intergovernmental Commission Meets in Astana At the fourth meeting of the Kazakh-Polish Intergovernmental Commission in Astana on September 17, Polish Deputy Prime Minister and Minister of Economy, Waldemar Pawlak, described Kazakhstan as one of the five most promising markets for investment by Polish companies.

Trade between the two countries topped USD 1.7 billion in 2011, following a tenfold increase over the previous decade, according to the Executive Secretary of Kazakhstan’s Foreign Ministry, Rapil Zhoshibayev. Coupled with direct investment from Poland of over USD 110 million since 2001, this positions Poland firmly as a leading trade partner for Kazakhstan in the European Union.

There are around 100 joint ventures set up in Kazakhstan with Polish companies, mainly focused on construction and the wholesale of a wide range of goods. This week’s meeting explored the possibility of further cooperation in such areas as mining, construction, military engineering and agriculture.

Mr. Zhoshibayev assured the Polish business community that Kazakhstan continues to improve the business environment, with an attractive, relatively simple tax system and further measures pending to strengthen investment legislation.

As part of this week’s contacts between the two governments, a Kazakh-Polish business forum brought together representatives of leading Polish companies, interested in establishing and expanding business contacts in Kazakhstan, with their counterparts in Kazakhstan’s business community.

The meeting closed with the signing of a protocol reflecting the main areas of bilateral economic cooperation: energy, construction, transport, agriculture, the military-industrial complex, support of small and medium-sized enterprise, tourism, banking and finance, science and education. Kazakhstan’s Entrepreneurship Development Fund “Damu” and Poland’s Agency for Entrepreneurship Development also signed a cooperation program for 2012-2013. Deputy Prime Minister Pawlak also met with Kazakhstan’s Prime Minister Karim Massimov and reiterated Poland’s support for Kazakhstan’s bid to host Expo-2017 in Astana. The relationship between the two states has evolved through closer cooperation on both the economic and cultural fronts since the first official visit to Poland by President Nazarbayev, in 1997.

In 2009, a department of Kazakhstan opened at the Institute of Oriental and Turkic Studies of Adam Mickiewicz University in Poznan; today, it accommodates over 40 Polish students, while in the academic year 2010-11 650 students of Polish descent attended university in Kazakhstan and a similar number of Kazakhstani students studied in Poland.

Recent cultural collaborations include the 2009 performance at the Polish Press Agency in Warsaw of the Kazakh lyric-epic poem “Kyz Zhibek” in Polish – its first translation into a foreign language, to mark its 500th anniversary. In 2010, as part of the International Year for the Rapprochement of Cultures, “1000 Songs of the Kazakh People: Selected Works” the 1925 collection by renowned ethnographist and exponent of Central Asian folk music, Aleksandr Zatayevich, was re-issued in Kazakh, Polish and Russian. Other works published recently in both Polish and Kazakh include a collection from the archives entitled “From the History of Poles in Kazakhstan: 1936-1956” and “The Kazakhstan Way” by President Nazarbayev.

Rapil Zhoshibayev, Executive Secretary of Kazakhstan’s Foreign Ministry (L) and Waldemar Pawlak (R), Poland’s Deputy Prime Minister


Also in The News…• On September 17, President Nazarbayev spoke with French President

Francois Hollande by telephone. The two Presidents discussed bilateral relations and a number of international issues. They agreed to organize high-level visits between the two countries to deepen relations.

• ‘Eurasia’- the Eighth International Film Festival is currently underway in Almaty. The festival program includes an international competition for feature-length films, a Central Asian panorama and ‘Dynamic Kazakh Cinema’. ‘Eurasia’ is the only Kazakh film festival that is accredited by the FIAPF (International Federation of Film Producers Associations).

• The bicycle of Olympic Champion Alexander Vinokurov has been sold by auction for USD 243,000. The starting price for the

bike which Vinokurov rode at the London Olympics was USD 30,000. His cycling kit was sold for USD 10,000. He says that the money raised will be given to a charity. Vinokurov celebrated his 39th birthday last weekend.

• The 38th Conference of the International Association for Educational Assessment (IAEA) is taking place in Astana. International ratings have placed Kazakhstan 14th out of 177 countries in terms of literacy. The Education Development Index (EDI) has ranked Kazakhstan among the four leading countries out of 129 countries worldwide, placing it ahead of Germany Japan and the UK.

• A recycling plant that will recycle 400,000 tonnes of waste per year will open on October 10 in Astana. The construction of nine further recycling plants will begin in 2013. 41 recycling plants for domestic waste will be built in the next 10 years.

• Three industrial exhibitions are being held in Almaty. They are: Mining World Central Asia’s 18th “International Exhibition for the Mining and Processing of Metals and Minerals”, Kazcomak’s ninth exhibition, “Road and Heavy Construction, Communal Machinery” and KazMet’s “Central Asian International Metallurgy, Metal-Working and Machinery Construction Exhibition”. The exhibitions are being supported by Kazakhstan’s Ministry of Industry and New Technologies, the state company Tau-Ken Samruk, the Office of the Mayor of Almaty and diplomatic missions of participating countries.

• A delegation from Kazakhstan’s National Space Agency has been visiting Germany at the invitation of the Federal Association of the German Aviation and Space Industry. Its members took part in the International Air Show in Berlin and visited the production facilities of IABG in Munich. A memorandum of understanding on co-operation was signed between Kazakhstan Gharysh Sapary and IABG.

• 10% of the world oil consumption over the next 35 years will be from hydrocarbons in the Caspian Sea , according to First Deputy Chairman of KazMunayGas, Daniyar Berlibayev, who was speaking at a press conference on September 20 about the launch of the Kashagan field in 2013.

• On September 19, Foreign Minister Kazykhanov spoke at the presentation of the report by the Presidential Commission on Human Rights “On the human rights situation in Kazakhstan in 2011”. He emphasized that in 2011 Kazakhstan chaired both the Organization for Islamic Co-operation (OIC) and the Shanghai Co-operation Organization (SCO). During Kazakhstan’s OIC Chairmanship, a permanent Human Rights Commission was created to conduct dialogue among Islamic countries on improving civic rights and freedoms in all member countries.

• On September 18, Foreign Minister Kazykhanov addressed a joint meeting of the Ministry of Industry and New Technologies, the Ministry of Foreign Affairs and its representations abroad. He said that there was potential to attract a further USD 10bn worth of foreign direct investment. He stressed the importance of honorary consuls in activating business links abroad and called on Kazakhstan’s diplomats to react faster to economic challenges and changes.


Things to Watch…• 21st Session of the Human Rights Council, Geneva. From September 10 to September 28, member and observer states as well

as NGOs will discuss a number of thematic and country-specific human rights issues. Interactive discussions and side events will take place and several resolutions will be adopted.

• The 67th Session of the UN General Assembly, New York. The General Assembly will address, among other topics, the Millennium Development Goals, climate change and sustainable development, food security, the role of mediation in the peaceful settlement of conflicts, disarmament, and United Nations reform, including reform of the Security Council.

• The third annual Social Good Summit, UN New York. This three-day event brings together world leaders, innovators and activists to discuss how new media and technology can create solutions to global issues and make the world a better place.

• The 2012 Clinton Global Initiative (CGI) Annual Meeting, New York. There will be discussions on reliable energy provision, financial inclusion for youth, women-owned businesses in the developing world and sustainable tourism, among other topics.

• The WTO Public Forum 2012, Geneva. The Forum will provide an opportunity for relevant stakeholders of the multilateral trading system to analyse whether multilateralism is in a state of crisis, taking into account both the Doha Round deadlock and elements of the WTO work programme that continue to work well.

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• On September 20, a round table discussion took place on “Kazakhstan, the New Silk Road and a Bridge between Europe and Asia” as part of the 2012 exhibition “Transit Trans Kazakhstan.” The aim is for Kazakhstan to become a land bridge for goods leaving western China for the markets of Europe, Russia, the Persian Gulf, Central Asia and the Caucasus.

• Kazakhstan is ahead of China and Russia in the Web Index, a new survey launched by the World Wide Web Foundation covering the impact of the Internet on 61 countries across the world. Kazakhstan is in 28th place, ahead of China in 29th place and Russia in 31st. The Web Index uses indicators to assess the political, economic and social impact of the Web, as well as measurements of Web connectivity and infrastructure.

• 25-year old Scott Henry from Scotland won his first European Challenge Tour title at the Kazakhstan Open Golf Tournament in a thrilling finish on September 19. 142 players from 26 countries took part in the tournament held in Almaty.

• In the World Youth weightlifting Championships held in Slovakia, Kazakhstan’s Albert Linder came third in the 69 kg weightlifting category. Another Kazakhstani, Aydar Kazov, came sixth.

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Astana Calling #271