Kazakh Prime Minister sums up results of visit to China

MKENT. October 15. KAZINFORM. /Tatyana Pylayeva/ Prime Minister of Kazakhstan Karim Massimov has left Beijing for Shymkent today. In China he took part in the sitting of the Council of Prime Ministers of the Shanghai Cooperation Organization member states. K. Massimov gave an interview on the results of his visit to the People's Republic of China.

 - First of all we signed an agreement on construction of Beineu-Bozoi gas pipeline from the west to south of Kazakhstan. Due to this decision we fully ensure the south of Kazakhstan with gas, which means energy independence. The Government of China renders financial support so that we can build the facility in short time. I think this decision will in many ways influence the development of energy policy in the central region. This is the first task set by the Head of the State.

Secondly, we reached a principal agreement on purchase by KazMunaiGaz JSC of MangystauMunaiGaz Company's controlling stake. Therefore one more oil company comes under state control in terms on provision of energy independence and execution of the President's tasks. Thus we are moving toward independent oil and gas supply. The state - the nation - will dispose its resources itself.

The third decision in oil and gas sphere is a contract on expansion of the Kazakh-Chinese oil pipeline capacity from 10 to 20 million tons a year. This fact means that we are on the way to diversification of export of oil products from the territory of Kazakhstan.

Besides, there was signed an agreement on financing by China together with KazMunaiGaz of a bitumen plant construction in western Kazakhstan. This is one more step toward diversification. All procedures on allocation of additional USD 5 billion for the country's diversification were completed. The first USD 5 billion will hit the account of Samruk-Kazyna next week. These funds will be used for development of the industrial program.

This year the President of Kazakhstan presented two articles "Key to Crisis" and "Fifth Way". They proved to be theoretical works leading to practical decisions as those made by the SCO Prime Ministers' Council. For example, the decision on holding of the meeting of the SCO finance ministers and heads of central banks in Almaty till the end of the year devoted to the issues of mutual settlements in national currencies. It means the creation of a kind of regional currency for mutual trade.

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