GOVERNMENT Weekly REVIEW.
He also spoke for development of the new sectors of economy, creation of favorable conditions for investments, maximum development of the innovative-technical part.
The Customs Union is a landmark in our further development as Kazakh Prime Minister Karim Massimov said while speaking at the Forum. He reminded that last Friday the presidents of Russia, Kazakhstan and Belarus signed the agreement on creation of the Customs Union. Beginning from January 1, 2010 the customs borders and customs-tariff policy of the three states will become single. The customs-tariff issues will be regulated at the national level. He also touched issue of transparency. "We didn't have tough enough stance toward the transparency of the equity capital during the pre-crisis period both in the financial sector itself and in the companies that were granted credits", the Prime Minister noted. Joint activities of the Kazakhstan Government, business and financial sector are aimed at stimulating domestic production in market sectors. "We should not live so as we did in 2005-2006. Then we spent and consumed more than could produce. Now we try to focus efforts of the Government, business and financial sector on stimulation of domestic production in market sectors", Prime Minister said. He urged to consider the program of development of the railway transport of Kazakhstan till 2020 taking into account the accession to the Custom Union with Russia and Belarus during his speech at the session on Tuesday. As Mr. Massimov noted, at the meeting in Minsk the negotiation groups were charged to prepare for the next stage of the Customs Union - establishment of the Single Customs Space that concerns the railway sector directly. The achieved agreements are designed for transit period. The tariff setting will be single at the whole space of the Custom Union in the future. The Head of the Government also stressed that it is necessary to study how the Single Transport Space will influence on the economy of the country, as long as the tariff setting in Russia is higher. Today Head of the State Nursultan Nazarbayev signed the Law "On ratification of the Agreement on Secretariat of the Commission of the Customs Union".
On Wednesday Kazakh Prime Minister urged Temir Zholy National Company JSC and Kaz Agro to work on the issue of purchase and production of grain carriers to Kazakhstan at the session of the Government. "It is necessary to work over the issue of purchase of grain carriers together with "Kaz Agro". The better way is not to buy but manufacture grain carriers at one of your facilities", the Prime Minister said addressing to the President of Kazakhstan Temir Zholy JSC.
Minister of Agriculture Akhylbek Kurishbayev informed that the country has 5, 200 grain carriers available today, while This week President Nursultan Nazarbayev met Kyrgyz Prime Minister of Kyrgyzstan Daniar Ussenov. A number of issues regarding further development of the Kazakh-Kyrgyz economic cooperation was discussed at the meeting. Kazakhstan will make a prepayment to Kyrgyzstan for 500 mln kWh of electric energy. Prime Minister of Kyrgyzstan announced it following the results of the negotiations with the Kazakh Premier. Mr. Massimov, in his turn, explained that it will allow to regulate water starting from Toktogul and get along winter for Kyrgyzstan. Kazakhstan and Kyrgyzstan have agreed on construction of Almaty-Kemin power supply line. Kazakh Prime Minister said following the results of the negotiations with his Kyrgyz colleague. "Today we reported to the Kazakh President on the power supply line construction in Kyrgyzstan. The Kazakh Government got the corresponding instruction and will connect Almaty with Kemin by the new line construction", Premier Massimov said.
Kyrgyzstan considers an issue of joining the Customs Union, Prime Ministers of Kazakhstan and Kyrgyzstan have announced it following the bilateral talks in Astana today. "Today we have exchanged opinions on opportunity of Kyrgyzstan's accession to the Customs Union", K. Massimov said. In turn, D. Ussenov noted the Government of Kyrgyzstan had already charged the relevant bodies to consider the issue of joining the Customs Union. "Kyrgyzstan's membership in the WTO allows it. I think expansion of the Customs Union will be profitable for Kyrgyzstan. Access to such large market of Russia, Belarus and Kazakhstan will undoubtedly be positive for the Kyrgyz Republic", Ussenov concluded.
Kazakhstan plans to invest USD 100 mln into the projects implemented in Kyrgyzstan. Kyrgyz Primier Ussenov has announced it after bilateral negotiations with the Kazakh colleague. "On our presidents' instructions we discuss the issue of fund development. USD 100 mln, which the Kazakh side wants to invest into the projects implemented in Kyrgyzstan", he said.
On Thursday, on the threshold of the session of the Foreign Investors' Kazakh Prime Minister has held a number of meetings with heads of international institutions of development and large companies in the Ukimet Uiy. At the meeting with the EBRD delegation headed by its President Thomas Mirow the sides discussed the current economic situation and the cooperation issues between Kazakhstan and the EBRD. Besides, there was held an exchange of opinions on the measures taken by the Kazakh Government on the economy stabilization and prospects of its development in the post-crisis period. There were discussed prospects of Kazakhstan's metallurgical field development at the meeting of the Prime Minister with Chairman of the Board and CEO of ArcelorMittal Lakshmi Mittal. L.Mittal confirmed the company's intentions to complete implementation of all investment projects started or planned in Kazakhstan, realization of which was stopped in the crisis period. The issues of mutually beneficial cooperation were discussed at the meeting of the Premier with Managing Director of Royal Dutch Shell plc Malcolm Brinded. Mr. Brinded expressed the company's interest in further investing in Kazakhstan's economy, especially for implementation of the projects of fields development in the Kazakh sector of the Caspian Sea. Kazakh Prime Minister Karim Massimov and Chairman, President and Chief Executive Officer of ConocoPhillips James Mulva discussed the course of the joint activity of the participant-companies of development of the Kashagan field and exploration works at the 'N' block. Head of the State Nursultan Nazarbayev has received members of the Board of Foreign Investors Council under the RK President - Chief of LUKOIL Company Vagit Alekperov and President of the European Bank for Reconstruction and Development Thomas Mirow. The parties focused on the agenda of the 22nd plenary session of the Council of Foreign Investors. Particular attention was given to participation of foreign investors in the policy of diversification and technological development of Kazakhstan. In the course of the talk T. Mirow highly appreciated Kazakhstan's anti-recessionary program. "The program was fully and successfully fulfilled. The Kazakh Government exerted every effort to maintain GDP level which is much higher than in other countries. The banking sector also feels support of the state which in turn positively impacts economic growth", T. Mirow said at a briefing.
Friday the Council of Foreign Investors held its 22nd plenary session at the Astana Independence Palace. The Council of Foreign Investors under the Kazakh President was founded by the Presidential Decree No 3985 as of June 30, 1998 with the aim of ensuring direct dialogue with the investors functioning in Kazakhstan as well as operative solution of problematic issues connected with investment activity. The Council is headed by President Nursultan Nazarbayev who manages its activity, approves the agenda and chairs its sittings. The Council also includes Prime Minister, Chairman of the National Bank, Minister of Foreign Affairs, Minister of Industry and Trade, Minister of Economy and Budget Planning, Minister of Finances, Chairman of the Committee for Investments of the Ministry of Industry and Chairman of the Inter-departmental Commission for consideration of foreign investors' claims. The assets of the National fund of Kazakhstan have reached USD 52 bln, President Nursultan Nazarbayev has said welcoming the participants of the 22nd plenary session of the Foreign Investors Counci. "We could preserve and increase our reserves. As of November 30, 2009 gold and foreign currency reserves in the National Fund made USD 52 bln that iss much more higher against December 2008 index", the Head of the State said. "The banking sector experiences improvement today. Even in most hard conditions we could guarantee preservation of the citizens' deposits. None of the country's banks bankrupted over the period", the President stressed. Kazakhstan has broken through in raising investments and strengthening international cooperation in 2009, President Nazarbayev has said at the opening of the 22nd plenary session of the Foreign Investors Council in Astana. "In whole I can say we have reached a breakthrough in the issue of attraction of foreign investments and international cooperation in 2009. Due to the top-level contacts with such countries as South Korea, China, Italy, France, turkey, Belarus we have entered into agreements regarding joint projects worth over USD 25 bln", the President noted. "These documents provide for construction of large industrial projects in Kazakhstan: Balkhash Thermal Power Plant, Beineu-Bozoi gas pipeline, manufacturing fuel surcharges for an atomic power station of Kazatomprom NC and France's AREVA, modernization of Atyrau Oil Refinery, construction of a gas processing plant, a shipyard, a gas-turbine electric station of ENI company and a plant on production of railroad bitumen together with China", President Nazarbayev specified. "To my mind this sets the best pattern of investors' trust to sustainability and stability of Kazakhstan economy", the Head of the State highlighted.
Kazakh President also announced on the establishment of the New University of Astana, which must become one of the leading educational-scientific centers of the entire Eurasian region. "Within our development plans we give special attention to the scientific-technological and investment development of the country. Recently we have taken an important decision in this sphere. This is establishment of a new international university in Astana which is planned start functioning on July 1, 2010", the President reminded. "The University must become one of the leading educational scientific centers of the whole Eurasian region especially in engineering personnel training", N. Nazarbayev stressed.
83 large projects worth USD 42 bln are planned to launch under the five-year Program of Kazakhstan's Forced Industrial-Innovative Development, President Nazarbayev has informed at the 22nd plenary session of the Foreign Investors Council. Realization of the five-year Program of the country's forced industrial innovative development will yield a profit of KZT 7 trln. This will make a half of our GDP. 83 projects amounting to USD 42 bln have already been defined. A number of projects were initiated by the investors attending this event. I reckon on their successful implementation", he said.
One of the priorities of Kazakhstan policy should become creation of predictable business environment according to President of the European Bank for Reconstruction and Development Thomas Mirow. Kazakh Head of the State Nursultan Nazarbayev offered foreign businessmen joint establishment of a big petrochemical complex. "We want our oil and gas to be reprocessed on favorable for us and you conditions. In this regard I propose to establish big petrochemical complex in Kazakhstan with your participation", the President said. He has also urged the Government together with members of the Foreign Investors Council to work out draft projects on raw material processing within the forced industrial-innovative development program of Kazakhstan. "Action plan must be developed on every project, working groups with particular periods of realization and assignment of a responsible person from the Government must be defined", the President said. "I charged Karim Massimov to conduct corresponding work during the first decade of the next year and submit for my consideration coordinated list of perspective projects aimed at diversification and raw material processing. I hope that the members of the Council ill cooperate with the government on this issue", the Head of the state said. He also invited foreign investors to develop support mechanisms of small and medium reprocessing enterprises.
In his concluding speech President Nursultan Nazarbayev noted, our country will reach the 20th anniversary of independence in 2 years. He reminded that Kazakhstan promoted a motto to join the group of 50 most competitive countries of the world. "We have clear program and strategy. We work together with you (foreign investors - author's note) and address complicated problems. I believe, we will keep on working together to overcome the crisis and show our people distinct way of further development by the 20 anniversary of independence", the Head of the State said.
