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Wednesday, september 9, 2015
+29° / +14°C
www.astanatimes.com
No 17 (83)
Nazarbayev’s State Visit to China
Results in Deals Worth $23 Billion
Kazakhstan, IAEA
Sign Milestone
Agreements
for Country to Host
LEU Bank
By Michelle Witte
President of Kazakhstan Nursultan Nazarbayev (L) and President of China Xi Jinping in Beijing on Aug. 31.
By Altair Nurbekov and
Malika Orazgaliyeva
BEIJING – Kazakh President
Nursultan Nazarbayev held bilateral meetings with Chinese President
Xi Jinping and representatives of
political and business circles during an Aug. 30-Sept. 1 state visit
to Beijing. He also participated in
a massive parade dedicated to the
70th anniversary of the Allied victory in the Asia Pacific theatre during World War II held on Aug.3.
On Aug. 31, Nazarbayev and Xi
signed the joint declaration on a
new stage of comprehensive strategic cooperation and witnessed
the signing of 11 bilateral intergovernmental and commercial
agreements.
The total cost of the 45 joint projects approved during his three-day
stay could reach $23 billion, the
Kazakh President told reporters
following the meetings. The largest projects are dedicated to expanding production at the Pavlodar
Aluminium Plant and constructing
a factory to produce machinery
and equipment for the petroleum
industry in the Mangystau Oblast
in West Kazakhstan.
Xi noted that the strategic partnership between Kazakhstan and
China has been continuously
growing and the joint declaration
is the outcome of many years of
fruitful cooperation. In addition,
the parties discussed issues of bilateral cooperation in the trade,
economic, investment, financial,
cultural and humanitarian spheres.
Nazarbayev congratulated the
Chinese people on the World War
II victory anniversary and the their
capital’s selection as host of the
2022 Winter Olympics.
“Beijing will become the first
city in the world to [have] hosted
[both] the summer and winter
Olympic Games,” he noted.
In turn, Xi welcomed Kazakhstan’s accession to the World
Trade Organisation (WTO), noting its importance for intensifying
bilateral relations. The parties also
agreed to augment cooperation in
green technologies in preparation
for EXPO 2017.
Continued on Page A4
Kazakhstan, Pakistan Sign Investment,
Defence and Diplomatic Training
Agreements during Sharif’s Visit
By Michelle Witte
ASTANA – Kazakhstan and Pakistan signed memoranda of understanding on trade and investment,
defence and strategic studies and
foreign services training during the
Aug. 25-26 official visit of Prime
Minister of Pakistan Nawaz Sharif,
the Dawn news agency reports.
“I am impressed by the scale
of the socio-economic progress
of Kazakhstan … We wish your
country further progress and prosperity. Our countries have great
potential to improve relations and
mutually beneficial cooperation”
Sharif told President of Kazakhstan Nursultan Nazarbayev at their
first meeting of the visit, according to a statement from the Akorda
presidential residence. Sharif and
Nazarbayev met in both small and
extended formats. Sharif also met
Prime Minister of Kazakhstan Karim Massimov and Foreign Minister Erlan Idrissov during his visit.
“[Kazakhstan] will never forget
that Pakistan was one of the first
countries to recognise the independence of our country. The similarity
of our positions on the international
Prime Minister of Pakistan Nawaz Sharif (L) and President Nazarbayev meet in a narrow format in Astana.
agenda, the centuries-old ties of
friendship and cultural ties make
us close and brotherly countries. In
light of new realities, it is time to
use every opportunity to open a new
page in our relations. I am confident
that your visit will serve exactly this
purpose,” Nazarbayev said in his
speech welcoming Sharif during
their negotiations in an extended
format, the Akorda reports.
ASTANA – Kazakhstan and
the International Atomic Energy
Agency (IAEA) signed three
agreements on Aug. 27 in Astana
that are expected to advance the
international effort to place a lowenriched uranium (LEU) fuel bank
in the country.
The Kazakh government and
the IAEA signed an agreement on
placing the bank in Kazakhstan
and the Kazakh Ministry of Energy
and the IAEA signed an agreement
on the physical establishment of
the bank and a technical services
agreement with the operator, according to a Kazakh Ministry of
Foreign Affairs announcement.
The agreements were signed in
a ceremony attended by Minister
of Foreign Affairs of Kazakhstan
Erlan Idrissov, Minister of Energy
of Kazakhstan Vladimir Shkolnik,
IAEA Director General Yukiya
Amano and CEO of the Nuclear
Threat Initiative (NTI) Sam Nunn.
The NTI is a major funder of the
project, having offered to provide
the initial $50 million to kickstart
the initiative in 2006, a contribution made by its advisor, billionaire Warren Buffet. The IAEA estimates that the bank will cost $150
million, an amount that includes
procuring the LEU and the first
decade of operational costs.
The signing of the agreements
marks the beginning of the LEU
bank’s practical implementation.
The bank, which is expected to be
operational by the end of 2017, is
to be housed in the Ulba Metallurgical Plant in Ust-Kamenogorsk,
which already stores 800 tonnes
of uranium materials, according
to Shkolnik, and has 60 years of
experience in storing and handling
such materials. The LEU bank is
expected to eventually hold 90
tonnes of uranium hexafluoride,
which will be stored as an option of
last resort for countries with peaceful nuclear power programmes in
the event of a disruption of their
commercial fuel supplies.
At the ceremony in Astana,
Nunn said that “locating the fuel
bank in Kazakhstan is a cornerstone in developing a new and
improved approach to managing
the risks associated with producing fuel for civil nuclear power.”
Later, addressing international
media after the signing, he said “I
think it’s a real compliment to Kazakhstan; it’s a vote of confidence
by the international community in
Kazakhstan, in terms of locating
the fuel bank here.”
Conference
on Constitution
Held at Palace
of Independence
By Aiman Turebekova
ASTANA – The international
conference “Constitution: unity,
stability and prosperity,” dedicated
to the 20th anniversary of the Constitution of Kazakhstan was held
at the Palace of Independence in
Astana on Aug. 28, the Akorda
press service reported.
President of Kazakhstan Nursultan Nazarbayev attended the
event and noted in his welcoming
address that the Aug. 30, 1995, referendum on the constitution was
conducted correctly.
“If our approach to state-building
had inclined toward hasty, politically abstract schemes, we definitely would have suffered a failure. Of
course, the price of failure would
be catastrophic. The experience
of many newly independent countries … is very sad. We know that
the construction of a state is an
extremely delicate, complicated,
time-consuming and sometimes
painful process. Creating a new
country cannot be done based on a
strict timetable and utopian plans.
Sustainable stability goes together
with economic progress and welfare. As a result, without stability
within the country, the chance of
bringing some potentially successful changes to the country would
be zero,” the President said.
The conference was also attended
by Prime Minister of Kazakhstan
Karim Massimov; the chairman
and members of Kazakhstan’s Par-
liament; the chairman and members of the Constitutional Council
of Kazakhstan; delegations of international organisations including
the UN, the Venice Commission
of the Council of Europe, the Organisation for Security and Cooperation in Europe, the European
Union, the Court of the Eurasian
Economic Union, the German Society for International Cooperation
and the German Foundation for International Legal Cooperation; the
heads of constitutional agencies;
representatives from the courts,
prosecutors and human rights institutions from 28 countries; and
foreign and domestic lawyers, political scientists and experts.
Participants analysed and evaluated the legal achievements of
Kazakhstan and shared their experience of constitutional development and legal reforms.
“Kazakhstan today is a respected and dignified country and offers
an example of the concrete implementation of all the provisions and
principles of the constitution. We
can consider that the state and the
social system are effective, even
if there is room for further development. Our basic law has all the
legal tools for the successful development and self-renewal of the
nation. We have set a global target
– by mid-century – to make Kazakhstan one of the 30 most developed countries in the world based
on the Kazakhstan 2050 Strategy,”
Nazarbayev said.
Inside
NATION & eurasia&world
Economy & Business
editorials
opinions
nation & SPORT
Three Space Travellers, Including Kazakh
Cosmonaut, Blast off from Baikonur
Cosmodrome A2
National Bank Says Dedollarisation
Is Inevitable A4
Allowing National Currency to Float Is
Economically Sensible A6
EAEU Nations, China to Share Customs
Information A5
No Need to Sacrifice Health for Cheap
Products A6
Zhamishev: Deficit of Tenge Liquidity in
Kazakhstan’s Market A7
Ibatullin: Central Asia Must Unite to
Revive the Aral Sea A7
U.S. Participation in EXPO 2017 Discussed
during Commissioner’s Visit, World Bank to
Participate B1
FM Idrissov Attends Third Pacific Islands
Development Forum Leaders’ Summit A3
US$ 1 = 243.10 KZT 1 Euro = 271.52
KZT 1 Rouble = 3.55 KZT
Kazakhstan Dominates ASBC Asian
Confederation Boxing Championships B7
A2
NATION
Three Space Travellers, Including Kazakh Cosmonaut,
Blast off from Baikonur Cosmodrome
Søren Kierkegaard. Mogensen
served in September as an aquanaut for NASA’s NEEMO 19 mission.
“It is a great honour for me to
represent Denmark as an astronaut,” he said last month.
The climb to space appeared to
go smoothly and about nine minutes after launch the Soyuz TMA18 ferry craft was released from
the booster’s upper stage to fly on
its own. The spacecraft’s navigation antennas and solar arrays subsequently unfolded and locked in
place as planned.
“We’re doing great and everything on board is in order,” reported Volkov.
The spacecraft docked at the International Space Station (ISS) on
Sept. 4.
“Got to the Internet! Thanks to
the crew of the ISS for the warm
welcome!” said Aimbetov via his
Twitter account.
The Kazakh cosmonaut had a
telephone conversation with Kazcosmos Chairman Talgat Mussabayev, reporting Soyuz TMA-18M
passed its space flight in regular
mode and safely docked with the
ISS. He also noted the satisfactory
medical condition of the crew and
early application of projects under
the Kazakh research programme.
“I feel good, adaptation is normal, proceed to the implementation
of a scientific space programme of
the Republic of Kazakhstan,” he
said.
At the end of the exchange, the
head of the country’s space agen-
By Aiman Turebekova
ASTANA – A Russian Soyuz FG
rocket launched the Soyuz TMA18M spacecraft 10:37 a.m. local
time, Sept. 2, on the latest mission
to the International Space Station (ISS). The lift-off marked the
500th departure from the launch
pad named for Soviet space pioneer Yuri Gagarin.
The capsule was manned by
cosmonaut Sergei Volkov of the
Russian Federal Space Agency,
astronaut Andreas Mogensen of
the European Space Agency and
cosmonaut Aidyn Aimbetov of
the Kazakh Space Agency. Commander Volkov will join five of
the six astronauts/cosmonauts
currently living and working on
the ISS when he exchanges places with Gennady Padalka.
The situation will mark the first
time since November 2013 that
nine crew members will simultaneously be aboard the station.
Padalka, Mogensen and Aimbetov will return to Earth Sept. 12,
leaving NASA astronaut Scott
Kelly in command of Expedition
45. A grand ceremonial meeting
of the crew at the Astana Airport
is planned with the participation
of Kazakh President Nursultan
Nazarbayev for Sept. 12.
During a telephone conversation prior to the flight, the head of
state wished the Kazakh cosmonaut a successful mission to the
ISS and implementation of his
tasks. Nazarbayev noted Alimbe-
Aidyn Aimbetov
tov’s flight is a significant event
that will give impetus to further
development of Kazakh space exploration and strengthen the image of Kazakhstan in the international arena.
The cosmonauts’ relatives came
to the cosmodrome to support the
team.
“We do not accept any congratulations. Only after they arrive
at the ISS can we be calm,” said
Aimbetov’s wife.
The 43-year-old cosmonaut
took dried horse milk and several
other national staples into space
with him as well as a toy from his
daughter, who said she hoped he
would encounter alien life. Aimbetov also carried the country’s flag
and those of the Assembly of People of Kazakhstan and the international exhibition EXPO 2017.
Aimbetov was chosen for the
first group of Kazakh cosmonauts
in 2002, one of only two selectees
among 2,000 applicants. Originally scheduled to fly to the ISS in
autumn 2009, the world financial
crisis forced the cancellation of his
mission and until June it was believed he would not fly until 2017.
In the spring he received a new
chance to fly this year.
Mogensen, 38, carried 26 custom-made Lego models of astronauts provided especially for the
mission by the world-famous Danish toy manufacturer. He also has
the writings of Danish philosopher
cy congratulated ISS commander
Gennady Padalka on achieving a
world record for length of stay in
space and wished all the ISS participants a safe return to Earth.
“On Earth, I dreamed about
space, Earth is now in space
dreams. I am continuing to work.
Tasks are plentiful, time is short,”
the Kazakh cosmonaut wrote in his
microblog.
The trio’s work plan includes
1,075 sessions on 63 experiments,
as well as maintaining the station
and outfitting the ISS equipment
delivered by cargo ships.
The Kazakh cosmonaut must
hold a series of scientific experiments, in particular to study the
radiation environment in orbit
and monitor the Earth’s surface in
terms of studying environmental
disasters.
“The aim of the space research
programme is to conduct scientific
and technological experiments on
board the ISS to obtain new fundamental data and apply the results
to to solve social and economic
problems, as well as to introduce
high-tech space technology in the
sectors of the economy of Kazakhstan,” said Mussabayev in an exclusive interview with kazpravda.
kz.
The Russian Soyuz booster
rolled out of a hangar at the historic Baikonur Cosmodrome and
rode an auto rail to its launch pad
last week, setting up the Sept. 2
launch of the three-man crew
hailing from Russia, Denmark
and Kazakhstan.
President Suggests New Kazakh Schools Welcome
National Brand: ‘Land Nearly 336,000 First Graders
of the Great Steppe’
By Michelle Witte
ASTANA – President of Kazakhstan Nursultan Nazarbayev
reiterated his suggestion that
Kazakhstan brand itself “Land
of the Great Steppe” during the
Aug. 28 conference “Constitution: unity, stability and prosperity,” dedicated to the 20th
anniversary of Kazakhstan’s
constitution.
“I believe that we should be
called the ‘Land of the Great
Steppe,’” the President said, according to Nur.kz. “Some call
themselves ‘the Celestial Country,’ others, ‘the Land of the
Rising Sun.’ We are the children of the Great Steppe. This
steppe protected our ancestors;
they shed their blood to save
us this land. In addition to the
name ‘Kazakhstan,’ we should
be known as ‘the Country of the
Great Steppe.’”
This is not the first time Nazarbayev has suggested that Kazakhstan create a new handle for
itself in the international arena.
During a national teleconference
on Industrialisation Day, July 2,
he said “Japan is the land of the
rising sun. Korea is the land of
morning calm. The Netherlands
are the land of tulips. China is
the Celestial Empire. All this is
not enough for us. Kazakhstan
is the land of the great steppe,”
Bnews reported that day.
The colours of Kazakhstan’s
flag represent the great steppe
and the vast blue skies of the
country, he said. “We are children of the great steppe, we are
not just nomads. We must show
the world a new Kazakhstan under these slogans, under the new
brand.”
The country’s new brand also
encompasses Kazakhstan’s industrialisation, the Nurly Zhol
new economic policy and the
ongoing five industrial reforms
on which the President campaigned earlier this year, he said.
The five reforms contain activities to promote national identity
and unity as well as to develop
tourism and drum up interest in
the country through online information and video tour portals,
discussion platforms and other
mechanisms.
This is not the first time the
President has suggested ways for
Kazakhstan to adjust its international “brand.” In early 2014,
during a visit to a school in western Kazakhstan, he speculated
on the effect of losing the “stan.”
The statement caused a spate
of international discussion, but
so far, there has been no serious
discussion of a name change.
ASTANA – Students throughout the country gathered for a
traditional ceremony Sept. 1 to
celebrate the beginning of the
new school year. Approximately
336,000 children went to their
schools for the first time.
Each of the first graders received a copy of “Menin Otanym
– Kazakhstan” (“My Motherland
– Kazakhstan”), a gift presented
on behalf of President Nursultan Nazarbayev, according to the
Ministry of Education and Science.
The vividly-illustrated book
contains information about state
symbols, the national idea of
Eternal Nation (Mangilik El), a
map of the country and descriptions of Astana, Almaty and every region. The publication gives
the youngsters information about
Kazakh nature and climate and
the most beautiful places in the
country. A separate chapter is devoted to the 550th anniversary of
the Kazakh Khanate and educators of the Kazakh people.
The total number of students
this year amounted to more than
2.6 million studying in 7,500
schools. In addition, 157 new
schools will be put into operation and 85 percent of all buildings will provide hot meals for
children. Minister of Education
and Science Aslan Sarinzhipov
has promised that during the
Photo: Igor Burgandinov
By Staff report
First graders at Astana English School.
year the number of schools in
emergency condition will be decreased to 66, with 250 to be totally repaired.
The capital launched three new
schools this year, including the
Astana English School for gifted
children, where lessons will be
conducted in Kazakh and English.
Sarinzhipov attended the opening
ceremony of the 11,765-square
metre building, which is designed
for 1,200 individuals.
Students at all schools and colleges were greeted by more than
1,300 representatives of the Kazakh Armed Forces who gave lessons of patriotism and courage,
peace and accord. The classes
were organised on the initiative of
the ministries of defence and education and science.
The first day of September is
also known as Knowledge Day,
a time when students and their
parents traditionally give flowers to teachers. The term, which
originated in the Soviet Union
and was established in 1984,
plays a large cultural role in
post-Soviet countries. Students
attending not only schools, but
those enrolled in other educational institutions such as colleges and universities, begin
their studies that day.
Conference on Kazakhstan’s Constitution
Held at Palace of Independence
Continued from Page A1
On the first day of the conference,
a plenary session took place, as well
as a presentation of the book, “Kazakhstan’s Trend: From totalitarianism to democracy and the rule of
law (A view from outside)” which
contains articles and reviews by foreign government bodies and public
figures on the achievements in the
sphere of legal development of Kazakhstan over the last 20 years.
“Our constitution clearly states
the common values shared by all
people of Kazakhstan. There is a
tough ban on discrimination on
the grounds of race, nationality,
beliefs, language and religion. The
most important thing is that we
have expanded the scope of Kazakh language, history and culture.
At present, schools and higher education institutions offer training in
the Kazakh language. Magazines
and books are published in the Kazakh language. We have revived
our language, culture and mentality. But at the same time, we did not
infringe upon the rights of other
ethnic groups,” said Nazarbayev.
During the event, Vice President
of the Venice Commission of the
Council of Europe Evgeni Tanchev,
President of the Court of the Eurasian Economic Union Alexander
Fedortsov, Chairman of the Constitutional Court of Armenia and
Chairman of the Conference of
Constitutional Control Organs of
the New Democracies Gagik Harutyunyan made speeches.
Foreign guests noted Kazakhstan’s achievements in maintaining
political stability, ensuring interethnic and interreligious harmony and
stability and the consistency of the
process of democratisation and liberalisation, the Akorda reported.
The conference continued the
following day at the Lev Gumilyov Eurasian National University
and the Kazakh Humanitarian Law
University.
NATIONAL
news in brief
On Sept.1, all first-graders in
Kazakhstan were given the book,
“Kazakhstan, My Motherland,”
on behalf of President Nursultan
Nazarbayev, Kazinform reported.
The illustrated book contains information about the state symbols
and climate of Kazakhstan and the
nationhood concept Mangilik El, a
map of the country and photos of
beautiful or significant places in
each region of the country. It also
tells young readers about the Kazakh Khanate and the great educators of the Kazakh nation. The
circulation of the book is 370,000
copies; 336,000 children started
school in Kazakhstan this year.
Kazakhstan-based regional carrier Qazaq Air launched its first domestic services on Aug. 28, the Air
Transport World website reports.
Qazaq Air, formerly Air Kazakhstan, is a subsidiary of Samruk
Kazyna, Kazakhstan’s Sovereign
Wealth Fund. The airline offers a
daily evening service from Almaty
to Astana, as well as weekly services from Almaty to Pavlodar and
Shymkent, according to its website.
It plans to operate 12 routes, many
of which are not currently served
by other carriers, according to a
statement by Bombardier. Qazaq
Air’s fleet reportedly consists of
three brand-new Bombardier Dash
8 Q400 NextGen aircraft.
Kazakhstan has accelerated
some plans for salary and benefits
increases following the switch to
a free-floating exchange rate for
the tenge, Tengrinews reports.
This includes a salary increase for
teachers from Jan. 1, 2016. The
increase was planned for 2017;
however, with the tenge losing a
quarter of its value following the
Aug. 20 free-float, measures have
been taken to quell public concern. Along with instructing the
National Bank to compensate the
exchange rate difference for private fixed-term deposits in tenge,
President Nursultan Nazarbayev
suggested increasing the salaries
of administrative civil servants, as
well as welfare payments and student allowances, and the government made corresponding changes
to the schedule. Deputy Prime
Minister Berdybek Saparbayev
announced a salary increase by an
average of 27 percent for teachers,
depending on their qualifications.
A “Kazakhstan-Korea Friendship Garden” may appear in
Astana, the website of the city
administration reports. The capital recently hosted talks between
representatives of the International
Cooperation Department of the
Astana Akimat (City Administration), the Embassy of South Korea
and the Forestry Service of South
Korea on creating a joint green
zone project in the capital, with
participants signing a memorandum of understanding on its creation. The project is to be funded by
South Korea to the tune of $1 million. The purpose of the friendship
garden, according to the akimat, is
to strengthen cooperation and development of recreation areas for
citizens and guests during EXPO
2017.
Kazatomprom, Kazakhstan’s national atomic company, will transport uranium to North America via
China, the company announced
in a press release on Sept. 1. An
agreement on the procurement of
temporary storage in China and
transport to North America was
signed by CEO of Kazatomprom
Askar Zhumagaliyev and President
of the Chinese Nuclear Energy Industry Corporation Liu Chunsheng
during the state visit of President
Nursultan Nazarbayev to Beijing.
American boxer turned actor and
rapper Roy Jones Jr. has fulfilled
his promise to write a song about
Kazakhstan following his trip to
the country in December last year,
Tengrinews reports. Jones was invited as a guest to the 31st International Boxing Tournament held in
Karaganda in memory of famous
Kazakh boxing coach Galym
Zharlygapov. He had said he was
impressed by Kazakh hospitality
and would write a song about the
country. The song, “Kazakhstan,”
has been released on his new album “Body Head Bangerz.”
A3
eurasia&world
external
news in brief
Air Astana plans to add routes
in 2016 to Iran and Mongolia and
expand capacity on its routes to
London and destinations in China,
Georgia and Ukraine, the Centre
for Aviation (CAPA) reported on
Sept. 2. The expansion to London
comes on the heels of British Airways dropping service to Kazakhstan. The airline plans to expand
its fleet over the next four years to
35 aircraft. The first of the aircraft
will be delivered in 2016.
The Dubai International Financial Centre (DIFC) will advise Kazakhstan on the establishment of
its commercial court system, the
Gulf News reported on Sept. 1. The
DIFC was chosen by Kazakhstan’s
National Bank to advise on areas
including creating legislative and
regulatory frameworks, staff training and establishing information
technology systems. Kazakhstan’s
move to establish a world-class
commercial court system includes
creating an arbitration centre
within the planned Astana International Financial Centre (AIFC) announced earlier this year.
Kazakhstan’s Parliament has
ratified two treaties with Italy on
legal assistance in criminal matters and extradition and sent the
document to President Nursultan
Nazarbayev for signature, Bnews
reported on Sept. 3. The two laws
seek to improve cooperation in
fighting crime, normalising relations between the authorities of the
two states on the issue of returning fugitives, and establishing cooperation between the competent
authorities of the two countries in
mutual legal assistance. Kazakhstan has signed similar agreements
with 14 countries and is negotiating with an additional 28.
Secretary of State of Kazakhstan
Gulshara Abdykalikova met with
Ambassador of the United Kingdom Carolyn Browne on Sept.
7. The two discussed prospects
for increasing business contacts
through the 100 Concrete Steps,
Kazakhstan’s plan for implementing its national reforms, as well as
the preparations for EXPO 2017
and the development of relations
in general.
Kazakhstan and Turkey agreed
on a plan for military-industrial
cooperation for 2016 – 2018 during the eighth meeting of the Kazakh-Turkish Commission on Cooperation in the Defence Industry,
Bnews reported on Sept. 4. They
are expected to sign the plan soon.
During the commission meeting,
representatives of the Ministries
of Defence of Kazakhstan and
Turkey discussed cooperation in
developing and using automated
control systems, modernising armaments and other equipment and
launching domestic production of
arms and military equipment.
“The Walnut Tree” (“Zhangak
Tal”), a satire by Yerlan Nurmukhambetov, will have its world
premier at the 20th Busan International Film Festival in South
Korea (Oct. 1–10), Tengrinews
reports. The film depicts the inner workings of a village family. It
was filmed in Lenger, in southern
Kazakhstan, and many of the main
roles are filled by actors from the
local Lenger theatre and local villagers. The film will debut in the
New Currents category.
BI Group, based in Astana, has
been ranked 164th in the list of
Top 205 Global Contractors produced annually by the Engineering
News-Records, Tengrinews reported on Sept. 4. They are the first
Kazakh company to be included
on the list. The company has risen
25 positions from its ranking of
189 in the 2014 list.
The 2015 Gallup Global Emotions Report has found citizens
of Kazakhstan to be among the
five least emotional people in the
world, Tengrinews reported on
Sept. 8. The results are based on
interviews of nearly 153,000 interviews in 148 countries around the
world in 2014. Respondents were
asked to report on five positive and
five negative emotions. In Kazakhstan, only 41 percent of respondents felt all ten emotions.
FM Idrissov Attends Third Pacific Islands
Development Forum Leaders’ Summit
By Altair Nurbekov
and Aiman Turebekova
SUVA – Kazakh Minister of
Foreign Affairs Erlan Idrissov
travelled to the Republic of Fiji
Sept. 2 and 3 to participate in the
third Pacific Islands Development
Forum (PIDF) leaders’ summit.
PIDF is a unique platform joining influential individuals from the
public and private sectors and civil
society to address regional development challenges through mutually-beneficial innovative partnerships. The theme for this year’s
summit in the Fijian capital was
“Building Climate Resilient Green
Blue Pacific Economies.”
“Many areas of our country
face increased pressure on already
scarce water resources because of
rising temperatures and more extreme droughts. It is why the overall theme of this week’s summit –
‘Building Climate Resilient Green
Economies’ – is so important not
just to forum member states but all
countries, whatever our size or location,” said Idrissov in addressing
the delegates.
The summit took a pivotal look
at the actions on climate change,
as it will be the final opportunity
for the people of the Pacific to
meet and discuss their stance for
the critical 21st Conference of
the Parties to the UN Framework
Convention on Climate Change
to be held later this year in Paris.
Key messages were formulated
and a Suva Declaration on climate
change was opened for signature.
“In order to achieve a meaningful agreement in Paris in December, renewed focus must be given
to five areas: cutting emissions,
mobilising money and markets,
pricing carbon, strengthening resilience and mobilising new coalitions,” said Idrissov in his address.
The foreign minister also drew
attention to Kazakhstan’s desire to
promote efficient management of
natural resources and the transition
to a green economy. The points
Kazakh Minister of Foreign Affairs Erlan Idrissov (L) participates in a panel at the Suva summit.
are implemented in the framework
produced in conjunction with the
UN Economic Commission for
Europe and Economic and Social
Commission for Asia and the Kazakhstan-initiated Green Bridge
Partnership programme supported
at the Rio + 20 conference on sustainable development in 2012.
The forum debate revealed the
serious practical interest of the
island nations in the Kazakh initiatives in terms of contributing
to the development of innovative
technologies, exchange of experience in this area and strengthening
bilateral relations.
“Along with water and food security, energy is also high on our
agenda as we move forward in our
bid for a UN Security Council seat
for 2017 -- 2018. As active and
committed members of the international community with a strong
record of campaigning for peace,
disarmament and dialogue, we believe we can make a valuable contribution to the work of the United
Nations,” emphasised the minister.
While in the city, Idrissov held
official talks with Fijian President
Epeli Nailatikau, Prime Minister
Frank Bainimarama and Minister
of Foreign Affairs Inoke Kubuabola. On the sidelines of the forum, he held meetings with Nauru
President Baron Waqa, Kiribati
President Anote Tong, Solomon
Islands Prime Minister Manasseh
Sogavare, Tuvalu Prime Minister
Enele Sopoaga, Tonga Prime Minister Akilisi Pohiva, Micronesia
Vice President Yosiwo George,
Marshall Islands Foreign Minister
Tony de Brum and Vanuatu Minister of Agriculture, Livestock,
Forestry, Fisheries and Biosecurity Christopher Emelee, as well as
Ambassador of West Timor Abel
Guterres and PIDF Secretary General Amena Yauvoli.
Idrissov expressed his gratitude
to the Fijian leaders for the meetings and the warm welcome, noting that Kazakhstan views the Pacific region as one of the promising
directions of its foreign policy.
“We are interested in further
development of bilateral relations
with Fiji, which is an important
partner for Kazakhstan in the region,” he said.
In turn, Nailatikau commended
the Central Asian nation’s growing role in the international relations system, calling Kazakhstan “a
prime example in nuclear disarmament which everybody recognises.”
The parties agreed that the time
has come to intensify cooperation
between the two countries. The full
potential of bilateral cooperation
will contribute to further intensification of contacts and mutual
support in international organisations and various international initiatives. Bainimarama emphasised
that Fiji welcomed Kazakhstan’s
candidacy for the UN Security
Council.
Idrissov and Waqa discussed the
developing bilateral cooperation
in political, trade and economic
spheres and collaborating on
pressing international problems.
Waqa is aware of Kazakhstan’s
international initiatives and candidacy regarding the UN Security
Council. Idrissov noted the latter
was advanced in accordance with
the principles of fair and equitable
geographical rotation and adequate
representation of all Asia-Pacific
group member states.
Meeting with George, the leaders discussed the possibility of establishing a closer economic, trade
and political partnership between
Kazakhstan and Micronesia. Both
sides expressed interest in developing fruitful cooperation in the
international arena through regular
consultations and coordination of
efforts in various multilateral institutions.
Idrissov and Emelee exchanged
views on the prospects of bilateral
cooperation.
“Given that diplomatic relations between Kazakhstan and
Vanuatu were established not so
long ago, we are looking forward
to establishing a positive trend in
the development of bilateral relations and cooperation within international organisations,” said
Idrissov.
The Kazakh delegation also used
the PIDF platform to invite Pacific
island nation officials and private
companies to participate in EXPO
2017 in Astana.
With the involvement of the
Astana EXPO 2017 company, a
special presentation was held for
the summit participants. In his
speech accompanied by video and
photo exhibitions, Idrissov emphasised that the event aims to facilitate the exchange of green energy
experience and modern technologies at the global level. That is why
Astana is interested in ensuring the
widest possible participation of
countries, he said, and, in accordance with the requirements of the
Bureau International des Expositions (BIE), will provide technical
support for the participation of 60
developing countries.
“EXPO 2017 will provide an
unprecedented chance to showcase
and share the latest developments
and knowledge in energy saving
and alternative solutions,” said the
foreign minister.
Overall, the PIDF summit was
viewed by the Kazakh diplomats as an excellent platform to
strengthen contacts with the leadership of Pacific island nations
and review promising areas of collaboration with the region that has
its own distinct voice in the global
system of international relations.
Kazakhstan, Pakistan Sign Investment, Defence and
Diplomatic Training Agreements during Sharif’s Visit
Sharif’s stated mission for the
visit was to discuss strengthening ties; increasing bilateral trade,
investment and economic cooperation; and enhancing cooperation into other areas, according to
Dawn. A business delegation from
Pakistan accompanied the prime
minister on his visit.
Transit was a topic of discussion in all meetings. In his discussions with Sharif, Nazarbayev
commented that Kazakhstan’s
Nurly Zhol economic programme, China’s New Silk Road
Economic Belt initiative and the
Karakoram road that connects
Pakistan and China would enhance cooperation between Kazakhstan and Pakistan, and the
Kazakhstan-Turkmenistan-Iran
railway will now link landlocked
Kazakhstan with Pakistan’s seaports. “These transport links allow us to improve trade and economic relations,” the President
said.
“We invite Kazakhstan to become part of the Sino-Pakistani
transport system, which will give
access to your country and other
countries in the region to the Persian Gulf,” Sharif said, according to the Akorda. He also said
Pakistan would like to develop
relations in many areas, including
energy, trade and economy and, of
course, transport.
In a joint briefing following their
meeting, Sharif said, “We agreed
to strengthen cooperation in education and science, the economy,
transport, shipbuilding, as well as
in the field of air transport. Agreements have been reached on the
import of Kazakh oil and gas, the
opening of joint ventures in light
industry, agriculture, the pharmaceutical industry and other areas,”
according to the Akorda.
Nazarbayev also praised Sharif’s political and economic reform
efforts, saying, “Under difficult
conditions you are successfully
carrying out economic and po-
litical reforms in the country and
maintaining an active international
policy, raising the authority and
role of Pakistan.”
The President’s press service
said the two leaders discussed
bilateral cooperation in the economy, trade, transit, transport, scientific and technical, cultural and
humanitarian spheres.
Meeting on Aug. 25, Sharif and
Massimov discussed expanding
trade and connectivity. According
to the website of the prime minister of Kazakhstan, the two discussed cooperating in investment,
the energy sector and agriculture
and developing business connections.
Kazakhstan, IAEA Sign Milestone
Agreements for Country to Host LEU Bank
Kazakhstan’s unique credibility on nuclear issues comes from
its decision to rid itself of nuclear
weapons and nuclear material early in its independence, and its ongoing international efforts to end
nuclear testing and promote disarmament, he said.
The White House issued a statement on the signing of the host
agreement, saying the U.S. president “appreciates President [Nursultan] Nazarbayev’s important
leadership on nonproliferation
spanning more than two decades.”
“The government of Kazakhstan,
by volunteering to host the LEU bank,
which was first conceived and funded
by the NTI, has further cemented its
reputation as a world leader in promoting nonproliferation and nuclear
security,” the White House said.
Speaking after the ceremony,
Amano said that the international
community was “very grateful”
to Kazakhstan and that the project
would not expose the country to accident or security risks. “You can
take pride in your country’s initiative,” he said. “With respect to this
LEU bank, your team and our team
have worked together very precisely
to ensure the highest level of nuclear
security. So you can be assured that
the IAEA LEU bank will employ the
highest standard of nuclear security.”
Rather than impose risks, the project will increase nuclear security and
benefit Kazakhstan, Idrissov said.
“Kazakhstan is a supporter of global
nuclear disarmament and nonproliferation. When we made the decision
to host the international LEU bank in
Kazakhstan, we are making a practical contribution to global nuclear
security and nonproliferation. And
doing so, we strengthen our own security by enforcing global security.”
It will also raise Kazakhstan’s
profile, both in terms of its political nonproliferation agenda and
commercially as a supplier and
producer of uranium, he continued.
In addition, working closely with
the IAEA will give Kazakhstan’s
workers in the nuclear sphere access to a spectrum of valuable experience and knowledge, he said.
“We can open new areas of cooperation with the IAEA in terms of
the use of atomic energy for different purposes. Today with Dr. Amano, we discussed the opportunities
for cooperation in terms of the use
of nuclear energy in such spheres as
the rational use of water resources
… as well as food security,” Idrissov said. “For Kazakhstan, these
issues are very relevant. … Moreover, cooperation with the IAEA will
help us enforce our physical safety
and security of nuclear materials so that there are no accidents.
When we speak with the IAEA, our
own experts can … increase their
knowledge and work experience.”
It was also observed by the assembled media that the bank may
“There is a large scope for trade
in textile and cotton products,
pharmaceuticals, food items, engineering equipment and machinery and construction enterprises,”
Nawaz told Massimov, Dawn reports.
Sharif also said he looked forward to seeing a prosperous Central Asia linked by rail, raid and
air routes. “Pakistan’s ports [of
Gwadar and Karachi] provide the
shortest route to sea for the Central Asian republics,” he said in his
meeting with his counterpart.
The three agreements were
signed following Sharif’s meeting
with Massimov.
provide an option for Iran to get
rid of its enriched uranium as work
continues on the joint comprehensive plan of action on the Iran
nuclear programme. Idrissov said
that the signing of the host agreement was “logically linked” to the
framework agreed upon by the
Iran and the P5 + 1 group in April.
“They are the same issue and I
think they complement each other.
One testimony to this is that the LEU
bank in Kazakhstan, even before the
formal signature of this agreement,
was recognised as an important tool
by the joint comprehensive plan of
action. In the first appendix of the
plan of action, the LEU bank in Kazakhstan is mentioned as one of the
potential venues for the potential
transfer of LEU material from Iran
to this facility,” he said.
Amano said that the procurement of LEU for the bank will be
done through the IAEA’s standard
open tender process, which is open
to all bidders that meet IAEA criteria.
A4
economy
National Bank Says Dedollarisation Is Inevitable
By Yerbolat Uatkhanov
ASTANA – Kazakhstan transitioned to a free-floating exchange
rate and Aug. 20 the tenge dropped
26 percent against the dollar. National Bank Chairman Kairat Kelimbetov has said that he considers
dedollarisation processes inevitable and doesn’t expect any depreciatory expectations, while there
are different opinions concerning
worsening conditions for business,
low demand for real estate and opportunities for domestic producers.
“The interest rate is still 10
percent for deposits in tenge and
3 percent for deposits in foreign
currency. Besides, the warranty
for deposits is 5 million tenge if
you have deposits in foreign currency and 10 million tenge if you
have deposits in tenge. In general,
everyone makes their own decision, but we consider that in the
medium term, of course, dedollarisation processes will be started.
We expect that there won’t be any
depreciatory expectations. I think
that dedollarisation is inevitable,”
he said, as reported by Zakon.kz.
Kelimbetov stated that the Kazakh people are used to the $100
price for a barrel of oil, but today
less money is going into the budget
due to the decrease of the cost of
Kairat Kelimbetov
goods exported by the state. He
noted all social programmes were
saved to the fullest extent, prices
for social goods are under control
and the inflation rate in Kazakhstan
won’t exceed 8 percent in the medium term.
Russian President Vladimir Putin put forward a bill which is to
create conditions for removing the
U.S. dollar from Russia’s trade
exchanges with countries in the
former Soviet Union and creates a
single financial market in the territory of Russia, Armenia, Belarus,
Kazakhstan, Kyrgyzstan, Tajikistan
and other former Soviet countries.
A special mechanism would enable
the nations to forego using dollars
and euros as transaction currency.
The Eurasian Economic Union
(EAEU) member states approved
a development project in December 2014, specifying the use of
national currencies. Plans are underway to start mutual exchanges
only in national currencies (rubles, Belarusian rubles, tenge and
drams) in 2025–2030, according
to Vesti. Fifty percent of payment transactions between EAEU
nations (which now includes five
countries – Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia)
are currently processed in dollars
and euros, which increases the
dependence of member states on
foreign currency. The project also
supposes the creation of a common payment zone, which will enable process payments taking into
account compatibility of national
payment card systems, such as the
Russian National Payment Card
System, Belarus Belcard and Armenian ArCa.
Recent Free-Float of
Tenge Creates
Uncertainty for Business
People
The Akmola region’s business
people say they must cut jobs
given the situation in the financial
markets now. They find the current situation quite precarious for
their companies, saying the number of orders has decreased and
the interest rate of bank loans has
become too high for them in such
conditions. The businessmen suffer from the daily change in the
exchange rate and consider that
only exchange office owners stand
to benefit from speculating in such
an economic situation.
Director of the Macroeconomic
research Centre Olzhas Khudaibergenov said he is anxious about
the high level of imported goods,
noting that in Kazakhstan, 90-100
percent of clothes, 99 percent of
footwear, 100 percent of household appliances and 60 percent of
furniture come from other countries, according to Kazakhstan Today.
“The Kazakhstan economy has
all chances to develop. At first, it
is necessary to increase the volume of goods produced in the
country. Secondly, Kazakhstan can
start a programme of large-scale
construction of housing accommodations, because it uses almost
100 percent of Kazakhstan goods
and services. The programme can
solve many problems, including
real growth of household income,
decrease of social strain, occupation of the construction sector
and building materials production
field, growth of economic activity
and increase of budget revenues,”
he said.
In a Sept. 2 interview, real estate
expert Anara, who did not provide
her last name, indicated demand is
low and the market has stopped.
“Buyers are waiting and I can
surely say that the number of sellers is much higher than it was before our country transitioned to a
free-floating exchange rate and
the number of buyers is much less
that it was before. It is well known
that people in Kazakhstan usually
specify prices for their houses and
apartments in U.S. dollars and I
was very surprised since Sept. 1
when many buyers began to specify prices in tenge. Also, I can note
that prices decreased at least 10
percent,” she said.
Anara noted many ordinary people feel it is better to sell real estate now, because they expect that
it will cost less in the future. At the
same time buyers are waiting, too.
They are sure they will soon have
a chance to purchase real estate at
lower prices. Construction companies are selling apartments they
have already built using old prices, but use new, higher prices for
apartments they plan to construct
in the future.
Nazarbayev’s Tenge Rate Changes
Shouldn’t Raise Food
State Visit
Prices, Says Deputy PM
to China
Results in Deals
Worth $23 Billion
Staff report
The Chinese side expressed
readiness to enhance collaboration in the nuclear power sector
in connection with the establishment of a low-enriched uranium
(LEU) bank in Kazakhstan. Prospects for further trade and economic cooperation under conditions of the international currency
markets volatility were discussed.
As part of the schedule, the Kazakh President also met with heads
of a number of leading Chinese
companies interested in strengthening cooperation with their Kazakh
counterparts. The meetings were
held in the Diaoyutai State Guest
House.
Speaking with chairman of the
board of CITIC Limited Chang
Zhenming, Nazarbayev discussed
the implementation of joint investment projects and the company’s further participation in
Kazakhstan’s infrastructure development in the framework of
Nurly Zhol, the path to the future
economic programme.
“We have accumulated solid
experience over the years of
working together. The corporation has achieved positive results
in its activities in the Kazakh
market,” noted the President.
In response, Zhenming thanked
Nazarbayev for his ongoing support and favourable conditions
for foreign investors in Kazakhstan.
During the meeting with China
National Petroleum Corporation
(CNPC) Chairman Wang Yilin,
issues were reviewed regarding
the participation of Chinese corporations in the development of
the Kazakh petroleum sector.
“Petroleum market development is one of the main points
of our cooperation with China.
Your company operates in the
production, transportation and
processing of hydrocarbons. It is
noteworthy that this year CNPC
will become a part of the Foreign Investors Council under the
President of Kazakhstan,” said
Nazarbayev.
“CNPC plans to build a plant
for the production of large-diameter pipes for the oil and gas
industry of Kazakhstan. In addition, CNPC intends to construct
the high school of choreography
in the city of Astana,” Yilin announced after the talks.
He added that the plant will
be built in the Almaty industrial
park, with the cost of the investment portfolio estimated at $150
million.
The issues of joint investment
projects and further participation
in Kazakh infrastructure development by Tsinghua, the China
Kingho Energy Group, were discussed at the meeting with company Chairman Huo Qinghua.
Tsinghua will construct an industrial enterprise for processing coal and producing synthetic
liquid fuel, according to Kazinform. The plant will be built in
the Karaganda region, Huo announced after the meeting with
Nazarbayev.
The investment portfolio has an
estimated value of $2.6 billion,
said Huo. The project will be implemented in 2017-2020.
The plant is expected to produce gasoline, diesel fuel, electricity and a variety of chemical
products with high added value.
In addition, the project will contribute to enhancing Kazakh science and implementing innovative developments in the domestic
coal and chemical industries.
Nazarbayev met Sept. 1 with
top managers of the Huawei
Technologies Co. and China Development Bank, as well as the
newly established multilateral
Asian Infrastructure Investment
Bank.
“I believe this visit is a turning point in Kazakh-Chinese relations. For more than 20 years,
we have actively cooperated
with China mainly in the energy and mining industries. At
this new stage, we move to intensifying collaboration in the
[manufacturing] sectors of the
economy, including machinery
and processing of resources,”
summarised the President.
Deputy Prime Minister of Kazakhstan Berdybek Saparbayev
paid a visit to the West Kazakhstan
region to estimate the general situation after a free-floating exchange
rate was introduced on Aug. 20.
“Despite the difficulties, we will
perform for the public all of our
obligations. We have the financial
capacity to do this. Salaries for
employees will be increased on
average by 27 percent on Jan. 1.
We also plan to increase financial
help for disabled citizens, as well
as pensions and scholarships,” he
said.
As for retail deposits and Zhilstroysberbank deposits, the government was instructed to develop
measures for loss compensation.
“According to our estimates, the
support will cover 80 percent of
loss. It is also our task to prevent
the growth of unemployment. We
are working hard to subsidise enterprises in order to avoid the reduction of highly qualified specialists,” Saparbayev said.
Saparbayev also mentioned the
problem of the food prices, which,
at the urging of President of Kazakhstan Nursultan Nazarbayev,
shouldn’t be changed.
Berdybek Saparbayev
“As for food, we have 33 socially
important food products, two of which
we do not produce in the country – tea
and sugar. Actually, we do produce
sugar, but it does not cover our needs.
The rest of the products are produced
in Kazakhstan. Thus, there are no reasons for prices to grow in the future.
The Ministry of Agriculture considers
the possibility of additionally subsidising agricultural enterprises, which
produce milk, eggs and poultry,” Saparbayev added.
The meeting was also attended by
heads of major enterprises present in
the region. In particular, the Director of Glass Service Arkady Rubtsov
noted that, despite the new monetary
policy in the country, the volume of
production at his plant has not been
reduced. Chairman of the Regional
Chamber of Entrepreneurs Kenes
Absatyrov also mentioned the presence of support of local authorities,
while other market leaders noted the
absence of a jump in prices.
Saparbayev will also visit other
regions of the country.
economy
news in brief
The Bank of China will allocate approximately 5 billion tenge
(US$20.9 million) to Kazakhstan’s
Baiterek Holding for implementing
industrial and innovative projects in
Kazakhstan, Kazinform reports. The
memorandum of cooperation was
signed by CEO of Baiterek Kuandyk
Bishimbayev and CEO of the Bank
of China Tian Guoli and is intended
to support 45 industrial projects currently being studied, Bishimbayev
said. According to him, the funds
will be used as direct investments,
equity investments or low-interestrate loans. Baiterek Holding was established in 2013 for the purpose of
diversifying the economy, attracting
investment, developing clusters and
improving corporate management.
More than 13,000 specialists will
be provided with jobs in Kazakhstan’s machine-building sector, Kazinform reports, citing the Ministry
of Investment and Development. In
the next five-year plan of the State
Programme of Accelerated Industrial-Innovative Development (SPAIID), 4,606 jobs are expected to be
created during project construction,
with 13,231 jobs to be created after the projects are commissioned.
SPAIID aims to implement 39 projects in the machine-building sphere.
Kazakhstan’s Ministry of Investments and Development has announced an auction for the right to
subsoil use at 100 sites, the Trend
news agency reported on Sept. 2, citing the KazGeology national exploration company. The sites to be auctioned off include 46 sites for gold
and gold ores, 10 for non-metallic
raw materials, 10 for rare-earth elements, four for groundwater, three
for manganese and iron, two for cobalt and chromium, two for bauxite,
two sites for rough semi-precious
stones and one each for titanium
and for diamonds. Costs for the sites
range from 206 tenge (US$0.85) to
22 million tenge (US$91,133). The
auction is to be held on Dec. 3 in
Astana.
China’s Jiangsu Province plans to
invest in joint logistic projects with
Kazakhstan Temir Zholy, the country’s national railway company, the
Think-Railways website reported
on Sept. 1. Six hundred million dollars is to be allocated for investment
in the development of the KhorgosEast Gate special economic zone
over the next five years, the report
said. Khorgos, which includes a dry
port, is currently developing multimodal transit capabilities, including
air-to-rail systems. Governor of Jiangsu Province in China Li Syueyun and President of KTZ Askar
Mamain have signed a cooperation agreement on the development
of Khorgos and the Lianyungang
International Logistics Park and
terminal. The Kazakh-Chinese terminal in the port of Lianyungang in
2015 is planned to process 250,000
twenty-foot equivalent units, a
measure of cargo capacity.
Import duties on new cars will be
reduced to 13.3 percent after Kazakhstan’s accession to the World Trade
Organisation, Kazinform reports, citing the Ministry of Industry and Development. The current average rate
of import duties is 27.9 percent. After
accession to the WTO, the level of interest rates will drop to 13.3 percent,
while annual import duties will be
reduced by 0.5-0.6 percent and will
eventually reach an average level of
10.8 percent, according to the ministry. Import rates on second-hand cars
will remain 25 percent, but are due to
be lowered to 15 percent.
Akim (Mayor) of Astana Adilbek Dzhaksybekov has signed 50
memoranda with shopping sites,
including markets, supermarkets
and retail chains, to control prices,
Bnews reported on Sept. 1, citing
the mayor’s office. The agreements
allow for incremental increases
of 10 – 15 percent, depending on
the item, Deputy Mayor of Astana
Andrei Lukin said during a press
conference, according to the report.
Agreements were signed with 25
traders and 23 large manufacturers
in the Akmola region, as well as the
Association of Poultry Farmers of
Kazakhstan “to prevent unjustified
price increases for manufactured
products,” he said. Monitoring for
compliance with the agreements is
being conducted daily, he said.
A5
Business
Kazakhstan’s SCAT Airlines has
acquired 15 Sukhoi Superjet 100
aircraft to be used in domestic,
regional and international routes,
Kapital.kz reports. A memorandum
on the purchase between SCAT
and the State Transport Leasing
Company was signed on Aug. 25
at the international aerospace show
MAKS-2015. The Sukhoi aircraft
were chosen over Embraer and
Bombardier models because of the
duties that would be incurred on
importing those models. Delivery
of the first Sukhoi Superjet aircraft
is expected in May 2016.
The Development Bank of Kazakhstan will provide a five-year,
3 billion tenge (US$12.5 million)
loan to the KazPhosphate company to support its export work,
Kapital.kz reports. The company
expects to increase its exports by
one third as part of the deal, which
comes through the Nurly Zhol
economic stimulus programme.
In 2015 the National Fund of Kazakhstan allocated 35 billion tenge
(US$145.8 million) to the Baiterek
Holding through the Development
Bank of Kazakhstan to support the
export of Kazakh goods in the processing industry.
The Organisation for Security and Cooperation in Europe
(OSCE) conducted a three-day
seminar in Almaty on simplifying
international trade procedures in
Kazakhstan from Sept. 2 – 5, the
OSCE reports. Some 50 officials
from the State Revenue Committee’s regional offices, representatives of the business community
and experts from Georgia, Kyrgyzstan, Uzbekistan, Russia, the
World Bank and the Eurasian Economic Commission took part in
the event. Topics for discussion included simplifying customs clearance procedures, understanding
the World Trade Organisation’s
framework standards, developing
joint mechanisms for eliminating
administrative barriers and ensuring secure delivery chains for international trade, with special attention paid to the introduction of
modern information technology in
customs administration and best
international practices. “The need
to update customs control methods becomes even more obvious
in view of Kazakhstan’s accession
to the World Trade Organisation,”
said Rati Japaridze, economic and
environmental officer at the OSCE
Programme Office in Astana, in
the report. The workshop was organised by the OSCE Programme
Office in Astana and the German
Corporation for International Cooperation (GIZ).
Head of the Department of Enterprise and Industrial-Innovative
Development of the Astana Akimat (city hall) Alfiya Balova said
the akimat had signed memoranda
with more than 100 commercial
networks on not raising prices on
food produced in Kazakhstan over
the next couple of months, Bnews.
kz reported on Sept. 7. The city is
keeping track of 33 products, she
said. “On imported products, prices will certainly rise after the rate
is equalised. Bread, milk, meat
and eggs remain unchanged. We
also have a helpline, which can be
called in the event of unjustified
price increases,” she said.
Staff report
ASTANA – Eurasian Economic
Union (EAEU) nations and China
will share customs information on
transit goods, reported Belta. The
agreement was reached according
to the results of the third round
of negotiations held in Irkutsk on
an agreement to share information about goods and international
transportation vehicles transporting via the customs border of the
EAEU and China, the press service of the Eurasian Economic
Commission reported.
“With our Chinese colleagues,
we agreed to share information about goods transiting from
China to third countries through
EAEU states and goods transiting
from states of the union to those
countries through China,” Board
member (minister) on Eurasian
Economic Commission (EEC)
Customs Cooperation Vladimir
Goshin said following the meeting. “This information will be used
by customs authorities of EAEU
states and China for customs purposes,” he stated.
As Goshin noted, that regularly
sharing information, comparison of
received data and identifying causes
for their discrepancies will increase
the level of trust between EAEU
General Administration of Customs
Zhou Weni signed a protocol, noting the achievement of mutually acceptable agreements on a number of
key issues of the draft agreement.
According to agreements reached
on previous rounds of negotiations,
“we agreed to share information about goods
transiting from China to third countries
through EAEU states and goods transiting
from states of the union to those countries
through China,” Board member on EEC
Customs Cooperation Vladimir Goshin
states and China and deter breaches
of customs legislations of China and
the union. Goshin also expressed his
confidence that the informational
interaction will accelerate customs
operations and customs control.
Following the negotiations, Deputy Head of the EAEU Delegation
and Director of Customs Infrastructure Department Vladimir Skiba
and Delegation Leader of China’s
after signing an agreement, China’s
General Administration of Customs will present to customs authorities of EAEU member states
information about goods transported to EAEU states from China.
Customs authorities of EAEU in
turn will share information with
their colleagues from China about
goods transported from the union
to China.
Airbus to Use Kazakh-Produced
Metal in Aircraft Production
Staff Report
Airbus aircrafts will be produced
using metal from Kazakhstan. The
only titanium magnesium plant in
Kazakhstan has received trade financing and has an opportunity to
increase export volumes, reported
Khabar TV Channel.
The soft loans will enable the
plant to purchase materials to produce titanium sponge, alloys and
ingots, which are used in the aerospace industry.
Airbus confirmed that it is going to purchase a portion of the
products. However, Airbus hasn’t
disclosed which of its aircraft parts
will be produced using Kazakh
metal. This information is considered to be confidential.
The Kazakh government created
the KAZNEX INVEST agency
a few years ago to provide state
financial support to businesses,
such as the plant that will supply
metal to Airbus. Major companies
received 35 billion tenge (US$140
million) under the programme and
15 billion tenge (US$60 million)
more is expected to be provided.
“As of today, Kazakhstan produces seven percent of world titanium and magnesium production.
We hope that state support will
help to increase this volume several times,” said Managing Director of KAZNEX INVEST Askar
Arynov.
Today, 16 Airbus aircrafts are
used in Kazakhstan.
Photo: www.photo.expo1520.ru
Belarus and Kazakhstan’s Pavlodar Oblast intend to set up joint
ventures, reports the Belarusian
National News, following the
signing of a memorandum of understanding and cooperation in
trade and economic affairs between the Embassy of Belarus
in Kazakhstan and the Pavlodar
Oblast administration. The document was signed during Ambassador of Belarus to Kazakhstan
Anatoly Nichkasov’s working trip
to Pavlodar. The agreement envisages measures for creating joint
ventures and industrial groups and
for supporting jointly operating
economic entities. The document
was signed after Pavlodar Oblast
Akim (Governor) Kanat Bozumbayev met with the Belarusian ambassador. The sides agreed that a
business delegation from Belarus’
Slutsk district will visit Pavlodar
by the end of the year.
Astana Locomotive
EAEU Nations, China to
Share Customs Information Plant Unveils Passenger
Electric Locomotive at
Moscow Railway Expo
Rolling stock on display at EXPO 1520.
By Michelle Witte
ASTANA – The Electric Locomotive Manufacturing Plant of
Astana presented their KZ4AT
passenger electric locomotive at
the fifth International Railway
Equipment and Technologies Fair
(EXPO 1520) in Moscow from
Sept. 2–5, Kazakhstan Temir
Zholy (KTZ) reported in a press
release. KTZ is Kazakhstan’s national railway company which has
assumed greater responsibility for
the country’s transportation industry in recent years, including taking over dry and sea ports and a
dozen airports.
“During this exhibition, we are
establishing contacts with foreign
partners. We are trying to expand
the geography of export of our
products; we are striving to find
customers,” said Commercial Director of the Electric Locomotive
Manufacturing Plant Andrei Yershov, per the KZT press release.
Representatives of the plant discussed implementing, modernising and localising production of
electric locomotives in Lithuania,
Ukraine, Uzbekistan and Azerbaijan during the fair, he said.
EXPO 1520 is the only broad-
gauge railway trade fair, according to the event’s website. (Broadgauge railways are present across
Kazakhstan, Russia and other
countries in Eurasia, as well as
in India, Spain, Ireland, Brunei,
Chile and Argentina.) Manufacturers from 18 countries took part
in EXPO 1520 this year, according to event organisers. The fair
featured exhibitions of equipment
and conferences on aspects of
the manufacture and deployment
of rolling stock. Fair exhibitions
showcase new railway equipment
and rolling stock from Russia, the
Commonwealth of Independent
States (CIS) and the European
Union. At this event, in addition
to railway technology and equipment, samples of machinery for
use in stations, public transport
systems and navigation systems
to ensure the safety of passengers,
luggage, buildings and vehicles
were also included.
Astana’s Electric Locomotive
Manufacturing Plant was launched
in 2012 and supplies locomotives
to Kazakhstan and Azerbaijan.
Yershov pointed out that the company first took part in EXPO 1520
in 2013, displaying their freight
electric KZ8A cars.
Government Eliminates Some Fuel Price
Controls, Price Increases Expected
By Michelle Witte
ASTANA – Fuel prices are expected to rise in Kazakhstan following First Deputy Prime Minister Bakhytzhan Sagintayev’s
announcement that the government
would stop regulating the prices of
AI-92 gasoline on Sept. 4.
Kazakhstan switched to a freefloating exchange rate for its national currency, the tenge, on Aug.
20. The tenge has lost roughly 20
percent of its value since then, at
the time of writing, and the Russian rouble has appreciated in
value against it. Both were cited as
reasons for the government to end
its control of fuel prices.
“This decision was taken in connection with an increase of the
Russian rouble exchange rate in
Kazakhstan, which occurred as a
result of passing to a floating exchange rate of tenge,” he said, as
reported by the Trend news agency.
“At present, we are still dependent on the Russian fuel market at
about 30 percent,” he said. “Taking into account the rouble exchange rate growth from 2.5 to 3.6
tenge per 1 Russian rouble, there
is a risk of deficiency because of
increasing procurement prices. In
order to avoid such a situation, it
was decided to end state regulation
of prices for AI-92 gasoline.”
Despite ending price controls,
Sagintayev said fuel prices will
be monitored in order to prevent
“unjustified” overvaluations, and
that those who try to squeeze exceptional profits from the situa-
tion will be punished. It is unclear
what mechanisms will be used to
achieve this. He said the government will take “necessary measures” to prevent fuel deficits and
unreasonably high prices, Trend
reported.
Prices and price regulations for
AI-80 and diesel fuel will remain
the same, Sagintayev said. “We
produce enough of AI-80 petrol and diesel fuel. So we do not
have any issues here. The AI-80
petrol costs 89 tenge [US$0.37]
while diesel fuel costs 99 tenge
[US$0.41]. The price regulations
remain the same in full force.”
Minister of Energy Vladimir
Shkolnik said a price increase was
to be expected – to perhaps 150
tenge (US$0.62) per litre of AI-92.
“At the moment, one barrel of oil
costs $50, the currency exchange
rate is 240 tenge (for $1) and one litre of petrol costs 108 tenge, meaning 40 cents for a litre [at that day’s
exchange rate]. It is understandable
that importing such petrol is impossible. It is clear that petrol will
go up in price. But no one knows
how much the price will increase.
It might be 140 tenge [US$0.58] or
150 tenge [US$0.62] or 142–143
tenge [per litre],” Shkolnik said,
according to Tengrinews.
Shkolnik said markets for other
types of petrol were stable. “At the
moment, we have a deficit of 1 million tonnes. We produce two million tonnes of AI-92 petrol at three
plants. One million, we import.
Today the situation is that the price
for oil we pay in Belarus and Russia or other countries is higher than
Image: Kazpravda
BUSINESS
news in brief
the price limit established by the
government. So we are facing a dilemma: we either have AI-92 petrol
in abundance or we face a deficit,
leading to commotion in the market,” he said, per Tengrinews.
On a working trip in Akmola
Oblast on Sept. 7, President of Kazakhstan Nursultan Nazarbayev
addressed the issue.
“Thirty percent of [the most
commonly used petrol] is imported from Russia. If the government
hadn’t decided to stop regulating
prices for these types of petrol,
we would have faced shortages of
petrol in a month’s time,” he said,
as quoted by a Tengrinews report
the same day. “These are simply
economics laws: we have to keep
prices equal to those of Russia, as
we have no customs barriers and
the movement of goods across the
border is free.”
Tengrinews noted price fluctuations at gas stations in Astana
and Almaty, with prices for AI-92
reaching 130 tenge per litre and
for AI-95, 150 tenge per litre and
increases observed at KazMunayGas, Sinoil, Helios, Gasprom
and Total petrol stations. All were
later reduced again.
The government has announced
fines for price fixing and unfair
business practices. Serik Zhumangarin of the Committee of Regulation of Natural Monopolies and
Protection of Business Competition has said the “groundless” increase of prices for AI-95 petrol
will be punishable by fines. “Considering the opportunity given to
entrepreneurs to establish the price
for AI-92/93, regional departments
of the anti-monopoly agency must
strictly observe adherence to antimonopoly laws,” Zhumangarin
said, per Tengrinews. Prices must
correspond to the expenses retailers face, he said. The committee
has been tasked with identifying
reasons for any price increases.
Since price regulation ended,
KazMunayGas has set prices for
AI-92 at 125 tenge (US$.052) per
litre, Aki Press reports.
A6
EDITORIALs&opinionS
Allowing National
On Kazakh Khanate’s Anniversary,
Currency to Float Is We Honour Our Identity
Economically Sensible
By Erlan Idrissov
A
fter the turmoil of the last few years
since 2007, it would be comforting
to believe that the global economy is
due a period of stability. But we continue to face strong headwinds and be buffeted
by violent forces.
China’s remarkable economic growth, which
has been the powerful global motor in recent
decades, is slowing, further undermining already weak global confidence and accelerating
the fall in energy and commodity prices.
After a long period of low interest rates in the
United States, the next move is expected to be
upwards, fuelling anxiety about what a strengthening dollar will mean.
Europe’s economy is still in the doldrums.
Japan’s growth remains weak. The tit-for-tat
sanctions between Russia and the West have
badly hit trade and countries with no involvement in the dispute.
No country can remain immune to the power
of such forces. Globalisation has brought many
benefits, but the downside, as we saw in the
most recent financial crisis, is that problems
now spill instantly across national borders.
And for reasons of geography, history and
economics, Kazakhstan finds itself right in
the firing line. As a major producer of energy
and minerals, the country has felt an immediate impact from the fall in demand and prices.
Kazakhstan must prepare, as President Nursultan Nazarbayev pointed out, for an era when
oil prices may be below $50 rather than above
$100 a barrel.
China and Russia are not only close neighbours but major trading partners for Kazakhstan. Any weakening in their economies or their
currencies was always bound to affect Kazakhstan, reducing demand for our goods, making
our exports more expensive and their imports
cheaper.
This is the difficult global environment
through which Kazakhstan is being forced to
plot its course. The country is fortunately not
starting from a standing start. It is the task of
governments always to look for the risks and
opportunities that lie ahead and prepare the
country for them.
This is basically what Kazakhstan has done
by saving a share of oil revenues to invest in
the long-term modernisation of the country and
well-being of its population. It is to provide
resilience and flexibility at times of uncertainty.
This preparation was also seen in the Nurly
Zhol economic stimulus programmes and the
100 Concrete Steps Plan of the Nation put
in place before the present global instability
worsened.
These economic policies match long-term
ambitions with short-term support. Investment
in transport and energy infrastructure, for example, provides not only an anti-cyclical boost to
the economy in terms of employment but will
deliver long-term benefits. Reforms to step up
the diversification of Kazakhstan’s industry,
accelerate the move to a green economy and
increase the role of the private sector will also
deliver rich and long-lasting rewards.
But when the global landscape is changing so
rapidly and dangerously, it is vital to constantly
test policies to see if they remain fit for their
intended purpose and be ready to change them.
Kazakhstan’s decision to allow its currency to
float shows the country is ready to take tough
decisions to protect its achievements and guide
progress.
The move brings Kazakhstan into line with
the policies of mature economies and the
realities of the modern global economy. It has
increased the competitiveness of Kazakh goods
and services at home and abroad, which will
help sustain employment and incomes. It also
provides an automatic balancing mechanism for
the economy as circumstances change.
Kazakhstan’s National Bank Governor Kairat
Kelimbetov has reserved the right to intervene
again if the country’s economic stability is, in
any way, threatened. The alternative course
would have been to spend increasingly large
amounts of Kazakhstan’s foreign currency
reserves defending the value of the tenge with,
as other countries have found, no certainty of
success.
There are, of course, risks in letting the currency float. But by using inflation targets to
guide monetary policy, the government has put
in place new levers to manage the economy.
Structural reforms which often go hand-in-hand
with such a move are already in train.
Allowing the tenge to float was inevitable as
Kazakhstan’s economy became ever more integrated into global financial markets. The ranks
of the most developed countries, which Kazakhstan is determined to join, abandoned fixed exchange rates half a century ago. The move may
have come earlier than expected but it seems to
be the right decision for Kazakhstan’s future.
It was the English writer, Charles
Dickens who once wrote, “Home is a
name, a word, it is a strong one; stronger than magician ever spoke, or spirit
ever answered to, in the strongest conjuration.”
Home protects, it unites, it shelters.
Kazakhstan is home for Kazakhs, ethnic Russians, Ukrainians, Belorussians,
Uzbeks, Germans: for more than 130
ethnic groups. This nation has been
formed by successive waves of invasion, immigration and migration, a
potent mix of cultures and traditions
which have flowed together to make us
what we are today.
Many were driven to our land by
persecution and intolerance. During
Stalin’s reign of fear, Kazakhstan was
a vast prison for over 1.5 million internal exiles. Another 1.3 million people,
from a myriad of cultures and ethnicities, were deported to Kazakhstan just
for being different. In spite of hardship,
they found the Kazakh people warm
and welcoming. They found equality
and respect. They found home.
Home for us is a country that has a
proud history, steeped in tradition, rich
culture, myths and legends.
It is a state that can trace its founding to 1465 and the birth of the Kazakh
Khanate – a kingdom that existed until
it fell to the Russian Empire in 1847.
Appropriately enough, it was a diplo-
mat who first introduced our home into
the consciousness of foreign leaders. In
1562, Anthony Jenkinson, an English
diplomat, labelled the land in between
“Tashkent” in the west and “Siberia” in
the east, “Cassackia.”
Today in Kazakhstan, history is a unifying force. By learning about our past,
we shed light on our present. We learn
about our ancestors, Khans Kerey and
Zhanibek, who united the patchwork
of tribes to thrive in the grasslands of
country. The success of the new Khanate drew more tribes, and by the 1470s,
there was a word associated with those
who had made their home on the steppe
– “Kazakh,” which means “free” and
“free roaming” in Turkic languages.
The history of our home is not the
story of strangers, figures from the past
who are unrecognisable; it is the story
of us. The Khanate helped form our
identity.
The foundations for modern Kazakhstan were laid over half a millennium
ago by that act of union. The history of
our land helps teach us the values that
are as important today as they were in
1465: determination, bravery, and tolerance.
Our history is not some remote and
abstract issue. It has an impact on the
country’s success. Growth, prosperity
and stability depend on a clear sense of
shared objectives and shared responsibilities. And a clear objective for the
future is impossible without an awareness of the past.
This year’s anniversary and celebration will go some way to raise that
awareness. Across Kazakhstan, children – whatever their ethnicity – will
learn about the history of our nation
and our ancestors. In Astana and Almaty, in Independence Square, we will
celebrate the story of being.
In Taraz, capital of the region where
Kerey and Zhanibek united the tribes
and formed the Khanate, a monument
will be unveiled. It will be another reminder to all that Kazakhstan is their
home, that their home was not created
from nothing. It is the culmination of
the vision of a tolerant, prosperous
land, proud in its independence.
The author is Foreign Minister of
Kazakhstan.
No Need to Sacrifice
Health for Cheap Products
O
ver time, an economy may experience
changes in imports and exports, and
this can lead to a balance of payments
disequilibrium (deficit or surplus).
Under a floating regime, the deficits and surpluses will lead to adjustments in the exchange rate,
which alter relative import and export prices in
the future. Therefore, imports and exports can
readjust to move the balance of payments back
towards a desirable equilibrium. Exogenous
shocks, like the financial crisis of 2008-09, can
occur from time to time and floating exchange
rates can help the readjustment process.
“The [Eurasian Economic Union] EAEU
partners also devalued their currencies. The Russian rouble depreciated by almost two times, the
Belarusian [rouble] by 56 percent, the Armenian
dram by 17 percent. Thus, the majority of countries, including those in the European Union,
countries exporting raw materials as well as
trade partners of Kazakhstan devalued their currencies,” said President Nursultan Nazarbayev
at a meeting with Kazakhstan’s major exporters
and representatives of the National Chamber of
Entrepreneurs (NCE) Atameken and business
circles of the country on Aug. 20.
Since June 2014, currencies in Russia, Colombia, Brazil, Turkey, Mexico and Chile depreciated by 20-50 percent against the U.S. dollar, in
Malaysia and Indonesia the exchange rates have
reached the lowest level since the Asian financial crisis of 1997-1998. Also in August, China
allowed the yuan to weaken against the dollar
by 4.5 percent, which triggered a new wave of
adjustments in exchange rates in developing
countries.
However, a recent World Bank study of 46 developed and developing countries showed that in
2004-2012 the effectiveness of currency devaluation to stimulate exports was twice lower than
The Astana Times
Editor-in-Chief: Roman Vassilenko
Managing Editor: Tatiana Kostina
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in 1996-2003, though it still brings some benefit.
Thus, the country is now in a more difficult position to increase exports due to the devaluation of
currency. “The general conclusion is that exports
are much more dependent on external demand
than on exchange rates,” says David Labin,
Citi’s chief economist for emerging markets.
Moreover, what kind of measures could be
taken by the countries-members of the World
Trade Organisation if the import price of the
product under a floating regime is much lower
than the price of the local product?
For instance, the United States is a major supplier of meat in Kazakhstan traditionally. Last
year, 119,400 tonnes of meat was delivered, the
lion’s share of which were chicken leg quarters,
totaling $104.1 million.
According to a general director of the management company for the poultry industry Shanyrak,
Maxim Bozhko, it is impossible to compete on
the price index with American-made chicken legs.
He provides an example of the imported price of
one kilogramme of a chicken leg quarter, which
is $1; however, the cost of production of one kilogramme of meat in Kazakhstan is about $2-$3.
There is no doubt that the quality of the local
products is much higher than some imported
goods. Therefore, one of the solutions is to
explain to customers that they are paying for
quality.
In order to inform potential consumers,
marketing strategies could be used. However, to
protect clients from simple advertisements, the
companies should prove the quality of goods.
In order to do so, the government should control the process of producing and verifying the
quality of the final product.
No recent financial crises have canceled the
protection of public health, which should play a
pivotal role in agendas of all countries.
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A7
opinionS
Chairman of Development Bank of Kazakhstan Zhamishev:
Deficit of Tenge Liquidity in Kazakhstan’s Market
By Alexander Konstantinov
Bolat Zhamishev, chairman of
the board of the Development
Bank of Kazakhstan (DBK), recently spoke with “Liter” national
daily newspaper about the results
of the bank’s activities, its new
product offerings and raising capital in foreign and Islamic finance
markets.
What were the financial indicators of the DBK last year and
could you highlight key points in
the bank’s work for the time you
have led it?
Let us first talk about figures. The
net (net of provisions) consolidated loan portfolio of the bank grew
more than two times (115 percent)
in comparison with 2013 to 815.2
billion tenge (US$3.4 billion). The
volume of provisions to loan portfolio decreased from 12.2 percent
to 4.03 percent from Dec. 31, 2013
to Dec. 31, 2014. Consolidated net
profit amounted to 11.26 billion
tenge (US$47 million), which is
41 percent less than in 2013, but
much higher than expected. Therefore, we have fulfilled all the figures on the development plan and
strategy.
The quality of the loan portfolio
is very high due to the transfer of
problematic loans to the Investment Fund of Kazakhstan. Generally, the condition of our balance sheet is such that we have no
problems at the moment in order
to engage in our core business –
lending of large loan projects (i.e.
according to our memorandum of
projects from $30 million). This
is speaking about the financial indicators. If talking about achievements in the system of corporate
development, I would like to
highlight a number of points. For
last year and this year, we made
a decision regarding optimisation
of business processes and significantly reduced the duration of consideration terms.
What are they for today?
As the result of the decision, the
consideration terms were reduced
by 31 days (from 85 to 54), including the stages: primary selection
– from 15 to 11, bank examination – up to 20 from 30, the stage
of decision making – from 30 to 17
working days and the preparation
and signing of contracts – from 10
to 6 days.
Fifty-four days – it is still a long
time, no?
Bolat Zhamishev
You must understand that we,
as a development bank, deal only
with major projects. I previously
gave you the minimum threshold
amount that ranges from $30 million. Moreover, this is production
projects and often projects are
greenfield, i.e. from scratch. In
addition, we made significant progress on a number of products offered by the bank.
And what about you, do you
work in the greenfield sphere?
Could you tell us more about new
products offered by the bank?
We used to have the same procedures in credit process on export
and pre-export financing and for
investment projects. We changed
it. Since export and pre-export
financing requires a valid business for which working capital
must be allocated under the export
contract, other approaches were
needed. Therefore, we reviewed
these processes to ensure that they
conform to classic practice.
I think we can say that the DBK
is the only bank in the country,
rather than anyone else, which
provides project financing in compliance with the classic requirements for this instrument. A financing project is when there are
any hard collateral or guarantees in
providing and when 70 percent of
the components can be EPC contracts with contractors or offtake
contracts.
It should be noted that the clearer these contracts are written, the
lower the risks that the contractor
will leave the initiator of the project with unfinished work and will
perform all required work and will
run the project; the clearer conditions, the smaller the discount factor. Same with offtake contracts. It
is clear that we do not accept memorandums of intent to purchase the
products; the more clearly written
contracts for the purchase of products, the less our discount. Generally, as I said, the maximum of
these two contracts can be up to
70 percent of the collateral of the
project. Therefore, we are really
engaged in project financing where
future businesses are ensured, not
an existing business. This is generally regarding our new products.
Now we are working on the possibility of granting syndicated loans.
Since we are a bank that lends to
large projects and we have restrictions on the limit per borrower or
group of borrowers who make up
25 percent of the bank’s capital,
that is the situation where we are
not able to self-finance the entire
project. In that case, we co-finance
projects.
We have developed this tool and
now we are working on the possibility of attracting syndicated
loans. A syndicated loan is when
several financial institutions issue
loans under one agreement. In addition, here we do not necessarily
see ourselves as the organiser of
the transaction. We can enter into
a syndicate as participants. Now
we are working on a legal framework; the relevant proposals were
sent to the National Bank. In addition, it is necessary to amend
the draft laws, in particular, in
business code. Moreover, we are
making amendments for project
finance, because now there is a
law on project finance and securitisation, which does not work.
It is clear that the improvement of
business processes involves computerisation, so since March we
have implemented a system that
allows us to completely abandon
a paper-based system. In fact, due
to computerisation we reduced the
lead time at different stages of our
lending activities.
What is the structure of the
bank’s loan portfolio?
On March 31, 2015, 73 percent
of the loan portfolio was accounted for with investment projects,
14 percent – project bonds, 9 percent – interbank loans, 3 percent
– loans to the affiliated company
DBK Leasing and 1 percent – export operations. As for greenfield
projects, since the launch of DBK,
decisions were adopted to fund
108 projects worth $8 billion; 62
of them are greenfield amounting
to $4.2 billion. As for the current
loan portfolio, there are 16 such
projects with funding of $2.9 billion. That means we are a bank
which finances mainly greenfield.
The funds of the National
Fund: how much were allocated,
for what purpose and what volumes mastered?
The total allocated was 245 billion tenge (US$1 billion), including 75 billion tenge (US$312.8
million) to finance the investment
projects under the second five-year
state programme of accelerated
industrial and innovative development (SPAIID-2), 100 billion
tenge (US$417.1 million) (in two
equal tranches) on loans to large
enterprises in the manufacturing
sector, 70 billion tenge (US$292
million) for financing domestic
manufacturers of cars, helicopters and passenger cars and export
loans.
tenge) (US$292 million) are distributed as follows: 35 billion
(US$146 million) – export loans
(goods manufacturing), 20 billion
(US$83.4 million) – to support
the automotive industry, 10 billion
(US$41.7 million) – Eurocopter
helicopters (through leasing) and
5 billion (US$20.9 million) – passenger cars (direct lending from
KTZ). Funds to support the car industry of Kazakhstan are provided
in the form of conditional funding
of second-tier banks (a total of six
banks) under the programme of
preferential car loans to individu-
The funds of the National Fund support a
number of industries. Seventy billion tenge
(US$292 million) are distributed as follows:
US$146 million – export loans, US$83.4 million
– to support the automotive industry, US$41.7
million – Eurocopter helicopters (through
leasing) and US$20.9 million – passenger
cars (direct lending from KTZ). Funds for
the car industry are provided in the form of
conditional funding of second-tier banks.
The financing structure of projects in SPAIID-2: the National
Fund – 75 billion tenge (US$312.8
million) and DBK own and borrowed funds – 150 billion tenge
(US$625.6 million). The purpose
of the National Fund under SPAIID-2 – it projects in the manufacturing industry – 70 percent of total
funding (metallurgy, petrochemical industry, chemistry, machinery, construction materials, food
industry, pharmaceutical industry
and others), projects in other sectors of the economy – 30 percent.
The mechanism of development of
credit resources is a direct lending
project by DBK. Funding of projects in the manufacturing industry
consists of two equal tranches of
50 billion tenge (US$208.5 million) each. Both tranches are channelled through commercial banks.
Overall, 13 banks are involved
in the development of the first
tranche and 12 in the second for
financing such projects as 23 sectors in the manufacturing industry,
including food manufacturing,
clothing, paper products, refined
petroleum products, basic pharmaceutical products, etc.
The funds of the National Fund
in support of a number of existing industries and promotion of
Kazakhstan’s exports (70 billion
als (15 billion tenge) (US$62.6
million) and lease special (except
agricultural) technology using
DBK Leasing (5 billion tenge)
(US$20.9 million).
What are the plans of DBK
regarding external funding: the
programme, volume, timing, and
tools?
We attracted $1.15 billion from
two Chinese banks and according
to our calculations, we have no
need to attract foreign currency
loans, including next year. Such
requirements of the bank will appear in 2017. We certainly would
like to see effective placement in
foreign markets made by the Ministry of Finance, because we need
a positive benchmark for corporate
borrowers. After that, we could
also start to examine the options
and maybe even hold a road show
without accommodation in order to
prepare the ground for our possible
loan at the end of next year. But
this need depends on what projects
come to us. That is, if we actively
lend in excess of our plans to our
borrowers in foreign currency, we
will have major new projects and
then, perhaps, this need will appear in the next year.
DBK was the first bank in Kazakhstan that made borrowing
Central Asia Must Unite to Revive the Aral Sea
By Saghit Ibatullin
Many of us take water for granted. Many of us believe it will always be plentiful. Yet only 3 percent of water on our planet is fresh,
and two-thirds of that is locked
away in frozen glaciers or otherwise unavailable.
For Kazakhstan, as the largest
landlocked country in the world,
the issue of fresh water deficit is
significant. This is why we have
been working hard to reverse one
of the worst man-made environmental disasters to take place over
the last 40 years.
The Aral Sea – which only half a
century ago was the fourth largest
freshwater lake in the world – is
now just a tenth of its former size.
There is now no water in sight in
parts where the Aral Sea used to
be – merely brown earth and sand.
Fishermen earning their income
and children playing on the beach
have been replaced by the wreckages of fishing boats and swathes
of empty mud fields. Grass nearby
has dried up and herds of antelope
that used to roam the area have
disappeared. An area that once
teemed with life now resembles an
eerie no man’s land.
The retreat began with Soviet
irrigation schemes far upstream,
which cut off supplies of water
to replenish the lake. Continued
mismanagement, pollution and
increased temperatures have all
taken a terrible toll on the size and
health of the Aral Sea.
The consequences have been
devastating on an environmental,
economic and social level. Ecosystems have been destroyed. Land
once deep under water has been
turned into desert, which has become the source of ravaging dust
storms. Fresh water supplies have
been dramatically cut. Fishing
villages find themselves isolated,
many miles from the water that
provided their livelihoods. The
lives of many thousands of people
who once depended on the basin
have been ruined. The effects have
also led to health issues for the lo-
cal population, including cancer
and kidney diseases. This is due
to the dust storms blowing across
the region, carrying toxic dust contaminated with salt, fertiliser, and
pesticides. The next generation has
also been affected with increasing
infant mortality rate in the area.
The situation for the future remains uncertain. The fate of the
population will remain unstable
unless the problem of environmental degradation and the distribution
of water is not solved urgently.
Not all, however, is lost. In recent years, Kazakhstan – which
along with Uzbekistan borders the
Aral Sea – has put a huge effort
into reversing this terrible trend. In
2003, the Kazakh government, in
cooperation with the World Bank,
began work on the joint $64 million Northern Aral Sea restoration
project. This includes the eightmile Kok-Aral dam, completed in
2005, which allows water of the
Syr Darya to accumulate and helps
restore delta and riverine wetland
ecosystems in the Northern Sea.
The efforts have reaped rewards. The northern part of the
lake, which lies in Kazakhstan, is
slowly reviving. Water levels are
increasing. Fish stocks have recovered far faster than was forecast. A
World Bank report last year found
fishery output, which amounted to
just 52 tonnes in 2004 had reached
over 4,000 tonnes by the end of the
decade. Now many rural people
and anglers have come back to the
north Aral region. Life is slowly reviving. With the right help, nature
has shown it can fight back. We are
determined to build on this success.
We understand that Kazakhstan, of course, cannot save the
lake by itself. Which is why Kazakhstan’s President Nursultan
Nazarbayev has been the driving
force behind the creation of the
International Fund for Saving the
Aral Sea (IFAS) that includes Kazakhstan, Uzbekistan, Kyrgyzstan,
Turkmenistan and Tajikistan as its
members. The Fund provides a
platform to improve dialogue and
find solutions to the many challenges of the Aral Sea.
The Summit of the Central
Asian Heads of State on April
28, 2009 under the chairmanship
of President Nazarbayev was an
important milestone in promoting
regional cooperation to overcome
the consequences of the tragedy of
the Aral Sea and to more effectively manage shared water resources.
The five presidents expressed
readiness to further improve collaboration on trans-boundary waters, taking into account the mutual interests of all Central Asian
countries. Under this statement,
several Agreements and Memorandums were signed between the
Executive Committee and UN donor organisations.
These documents enabled the
creation of a new Programme for
the Aral See Basin (ASBAM-3),
which was adopted by all Central
Asian governments and the donor
community. Its financial potential
is estimated to exceed $2.5 billion.
through an Islamic financial tool
– sukuk...
I should say that we analysed it
and came to the conclusion that it
was not a very effective campaign,
or more precisely, non-systemic.
Let me explain why. If you have
obligations in sukuk, it is logical
that you have assets or loans in
Islamic instruments, too. Because
otherwise, it’s more a public relations move than an economicallyjustified and effective operation.
And now DBK Leasing works on
amendments to the legislation (by
the way, some of these amendments have already been adopted)
on the issues of Islamic finance.
Why DBK Leasing?
I believe that leasing transactions according to their economic
model is very close to the essence
of Islamic finance. Because there
you can do without an interest
rate; that is, acquiring fixed assets
at one price and passing them at a
different price to the lessee. This is
quite consistent with the spirit and
principles of Islamic finance. With
recently adopted legislation, we
are considering a tool that will be
able to provide leasing operations
on the principles of Islamic banking. In this case, our DBK Leasing
could effectively look for partners
among Islamic financial institutions and accordingly, finance their
customers on the basis of Islamic
financial instruments. That’s when
it would be a finished, reasonable
scheme. We are working on it very
actively. There is a caveat; we are
trying to implement this scheme in
the framework of the amendments
that were adopted. However, regarding appropriate legislation on
Islamic banking, the real needs of
the market can be understood only
when these deals are real. So far,
all the amendments were made on
the basis of theoretical background
and therefore numerous amendments have led only to a partial,
not a comprehensive solution to
the issue.
Do I understand correctly you
have attracted Islamic money,
but have not done any agreement
with clients on Islamic finance?
Yes. We do not have any project
that we did. But once again, the
best option is to do it using DBK
Leasing, so we do that now.
The article is published in a
shortened version. The full version appeared in “Liter” newspaper. Translated and placed
with permission.
tion – can halt the current trend and
prevent the lake from disappearing
altogether.
Failure to achieve this ambition
would have devastating consequences on our region. We are not
prepared to accept such an out-
Failure [to save the Aral Sea] would have
devastating consequences on our region.
We are not prepared to accept such an
outcome. Instead, we will continue with our
efforts to breathe new life into its waters and
help secure livelihoods of those for whom
the lake has been home for generations.
We urgently need to step up
these efforts. The signing last year
of a ground-breaking Memorandum of Understanding between the
IFAS and the World Bank, aimed
at improving water management
and tackling social, economic and
environmental problems in the
wider Central Asian region, was a
symbol of an increased desire for
cooperation.
We have to be realistic. Water
levels are sadly now unlikely to
return to pre-1960s levels. But the
success so far of the steps taken by
Kazakhstan and its partners – and
the increased desire for coopera-
come. Instead, we will continue
with our efforts to breathe new life
into its waters and help secure livelihoods of those for whom the lake
has been home for generations.
The author is former Chairman of Executive Council of
the International Fund for Saving the Aral Sea (2008-2013),
and currently Vice-Chair of
the Implementation Committee under the Water Convention of the United Nations Economic Commission for Europe.
The article first appeared in
TheDiplomat.com.
A8
eurasia&world
Foreign Minister Idrissov Congratulates Winners
of Second International Media Contest
By Aiman Turebekova
ASTANA – A ceremony to honour the five regional winners of
the second “Kazakhstan Through
the Eyes of Foreign Media” contest took place in the Ministry of
Foreign Affairs of Kazakhstan on
Aug. 25.
The contest was initiated by the
Ministry of Foreign Affairs and the
Union of Journalists of Kazakhstan last year, and this year saw
more entrants from more countries
around the world – journalists from
35 countries took part, up from 23
countries for the first iteration of
the contest, according to Minister
of Foreign Affairs Erlan Idrissov.
Five regional prizes were chosen from among this year’s 55 entries, with winners being selected
from the Commonwealth of Independent States (CIS), Europe, the
Americas, Asia and Oceania, and
the Middle East and Africa.
According to the Foreign Minister, the geographical expansion
of the contest “reflects the international community’s growing interest in Kazakhstan.”
“I am delighted that the Foreign
Ministry’s initiative is wholeheartedly backed by the Union of Journalists of Kazakhstan, and this, in
my opinion, is a good example of
constructive cooperation between
public authorities and civil society,” Idrissov said at the ceremony.
In his opening speech at the ceremony, Idrissov emphasised the
kindness and hospitality of the
people of Kazakhstan, calling the
country’s population “very pragmatic in the Western way and at the
same time, very kind, generous and
hospitable in the Oriental way.”
He also pointed out the dramatic
development of Kazakhstan and
Astana, and said that “Journalists
play a very important role in promoting peace and prosperity in the
world.”
“The progress of technology in
mass communication has allowed
Foreign Minister Erlan Idrissov (C) poses with winners and sponsors of the “Kazakhstan Through the Eyes of Foreign Media” contest, as well as numerous
ambassadors on Aug. 25.
media to reach every corner of the
world more quickly, with vivid
graphics. Therefore, global media plays a very important role
in international relations. Media
targeting a foreign audience are
a vital part of a country’s public
diplomacy infrastructure, since
they contribute to showcasing the
country’s culture and traditions
and help to channel its policies
with the outside world,” Idrissov
said. The five journalists honoured
this year were Central Asian Dialogue journalist Alo Khodzhayev
from Uzbekistan, who won among
CIS journalists for his article “Locomotive of Progress,” which
profiled a plant producing electric
locomotives in Astana as an example of Kazakhstan’s economic
diversification. NaWschodzie.eu
journalist Bartosz Mendyk from
Poland won among European journalists for his story “Nurly Zhol is
the Path to the Future;” reviewing Kazakhstan’s new economic
policy unveiled last year. Evelin
Armella of Argentina won among
journalists from the Americas for
her article “A Place to Discover:
Kazakhstan.”
Journalist for the Pens and
Books newspaper Ahmed Abdu
Tarabek from Egypt won among
Middle Eastern and African journalists for his article “Astana, a
Modern International Metropolis.” Radio Republik Indonesia
journalist Marwan Zubaidi won
among journalists in Asia and
Oceania for his article “Kazakhstan Inspires the World, Including
Indonesia.”
The winners were also given gift
certificates by the contest’s sponsors and partners, which include
national railway company Kazakhstan Temir Zholy, Transaero
Airlines, the Hilton Garden Inn
Astana and the Rixos Borovoe,
and transport company Argymak.
The ambassadors of Egypt and
Indonesia also attended the ceremony and congratulated the winners.
The winners expressed their
gratitude to the organisers of the
Kazakh Secretary of State
Participates in Women’s
Congress in Tokyo
By Malika Orazgaliyeva
Secretary of State of Kazakhstan Gulshara Abdykalikova paid
a working visit to Japan Aug. 2829 to take part in the Second Congress of “The World Assembly for
Women in Tokyo: WAW! 2015,”
the Akorda reported.
In her speech, Abdykalikova
made a report on Kazakhstan’s
progress in addressing gender issues and equality between men
and women in the socio-political,
socio-economic, cultural and humanitarian spheres. She emphasised the political will of President
of Kazakhstan Nursultan Nazarbayev, who actively involves
women in the state and public administration.
“In the Kazakhstan 2050 Strategy President Nazarbayev calls
‘to actively involve women in the
state and public governance … to
create favourable conditions for
opening and doing business by
women.’ With the strong support
of the government, today women
of Kazakhstan have become a
driving force of the economy,” she
said.
“Kazakhstan actively promotes
gender issues in its foreign policy.
The issues of promoting gender
balance and women’s participation
in governance were included into
the agenda of Kazakhstan’s chairmanship in the Organisation on
Security and Cooperation in Europe (OSCE) in 2010 and the Organisation of Islamic Cooperation
in 2011. The post of the Special
Representative on Gender Issues
was established during Kazakhstan’s chairmanship of the OSCE,”
said the Kazakh secretary of state.
Starting from 2012, enhancing
women’s economic potential has
been discussed at the Astana Economic Forum, which is held annually in the capital of Kazakhstan,
Abdykalikova said.
She proposed to use the forum
as an international platform to discuss the economic advancement
of women.
Abdykalikova invited the participants to the international specialised exhibition EXPO 2017
in Astana, as well as suggested to
discuss the development of green
business on a special panel session
at the next World Conference for
Women in Tokyo in 2016.
The participants of the congress
expressed interest in establishing
cooperation with Kazakhstan and
promoting international dialogue
to enhance the role of women in
society.
Later, Abdykalikova held a
meeting with Japanese Minister
of Foreign Affairs Fumio Kishida.
The sides discussed deepening bilateral cooperation.
On the first day of the visit, Abdykalikova met with Prime Minister of Japan Shinzo Abe and held
talks with Minister of Education,
Culture, Sports, Science and Technology of Japan Hakubun Shimomura. They discussed developing cultural and humanitarian
cooperation, including updating
an existing cultural cooperation
agreement and increasing sportsrelated cooperation.
During the meeting with the
Minister of Women’s Empowerment, Administrative Reforms
and Civil Service of Japan Haruko
Arimura, the sides discussed cooperating to implement Kazakhstan’s 100 concrete steps under
the country’s Plan of the Nation in
the fields of administrative management and public service. Also,
the parties suggested exchanging
information concerning the promotion of women’s economic activity.
New opportunities for Japanese businessmen that have been
opened thanks to the implementation of Nurly Zhol programme
were discussed at the meeting
with Minister of Economy, Trade
and Industry of Japan Yoichi Miyazawa. The sides discussed the
participation of Japanese companies in the international exhibition
EXPO 2017. The Japanese pavilion is expected to be one of the
EXPO’s largest. At the meeting
with Japanese Minister of Health,
Labour, and Welfare Yasuhisa
Shiozaki, the parties discussed establishing contacts in the sphere
of medicine, as well as studying
Japanese experience in compulsory medical insurance for the
population.
Abdykalikova also met with the
leadership of the Agency for International Cooperation of Japan
and representatives of the Organisation for Economic Co-operation and Development (OECD)
in Tokyo. The sides discussed cooperating and exchanging experience for the development of the
KazAID [Kazakh official development assistance programme]
and use of the OECD expert potential for the analysis of economic development policy of the
country.
contest for the opportunity to visit
Kazakhstan.
In his speech at the event,
Khodzhayev said, “I express my
joy and pride in the recognition
of our success in the contest. I
would like to emphasise the importance of this competition. The
purpose of journalists is to write
about everything, sometimes not
very pleasant [things]. But when
I write about Kazakhstan, I do it
with great interest, and from the
soul. Kazakhstan is a shining star
in Central Asia due to its huge success and achievements, not only in
political terms but also economic,
social and, most importantly, spiritually. Kazakhstan’s experience is
worth studying. Of course, at the
same time, I would like to highlight the role of your outstanding
leader, President Nursultan Nazarbayev. To the best of my ability,
between Kazakhstan and Uzbekistan.”
Indonesian journalist Zubaidi
said, “We do not simply know
about Kazakhstan from literature.
We are witnessing the development of Kazakhstan. I will be very
glad to come again and again to
Kazakhstan.”
Armella, who travelled the greatest distance to reach Kazakhstan,
said “Few people know about Kazakhstan in my country. However, I
can vouch that I will cover it through
my articles, thereby informing people about your country.”
“Despite the short time of your
visit, I hope you will see with your
own eyes not only the rapid transformation of our capital, but also
the growing dynamics of the country’s economy and the development
of civil society. In Kazakhstan, unity, harmony and openness are our
fundamental values,” said Idrissov.
The five winners were rewarded
with a trip to Kazakhstan, including visits to Astana, Almaty, the
Borovoe resort area, sightseeing activities and a cultural programme, along with interview
opportunities with Kazakhstan’s
Idrissov: “The progress of technology in mass
communication has allowed media to reach
every corner of the world more quickly ...
global media plays a very important role in
international relations. Media targeting a
foreign audience are a vital part of a country’s
public diplomacy infrastructure.’’
I will try to continue to fully support the strengthening of relations
senior government officials, leading managers and journalists.
B
Nation & Capital
B3
B5
B7
U.S. Participation
ATOM Project, Judo Veterans of
in EXPO 2017
Astana Hold Minute of Silence
Discussed during
for Victims of Nuclear Tests
Culture
SOCIETY
Sports
Int’l Ethnic Cultures Festival Has
Spectacular Opening in Astana
Kazakh Biotechnologist Helps
Create At-Home STD Test
Local Judoka Wins Gold at World
Judo Championship
Commissioner’s
Visit, World Bank
to Participate
By Murager Sauranbayev
White balloons are released during the Aug. 29 ceremony to honour the victims of all nuclear tests in the world. Kazakhstan was the site of more than 400 nuclear
tests over 40 years during the Soviet Union.
By Dmitry Lee
ASTANA – The ATOM Project
team jointly with the Federation
of Judo Veterans of Astana held a
minute of silence and released 500
white balloons to commemorate
the victims of nuclear tests on UN
International Day Against Nuclear
Testing Aug. 29 in front of the Alau
Sports Palace where the Judo World
Championship was being held.
The tradition for the Aug. 29
minute of silence is to observe the
moment at 11:05 a.m. because at
that time the clock hands show a
letter V, which stands for victory.
“August 29 is a dark day in the
history of Kazakhstan. On this
day in 1949, the first nuclear test
shattered the windows of innocent citizens near Semipalatinsk,”
said Honorary Ambassador of The
ATOM Project Karipbek Kuyukov
in his address. “Our people have
suffered through 40 years and we
have become yet stronger as a nation. It is almost impossible to
count all the victims of the nuclear
explosions today, all the dreams
that never came true, all the children that didn’t live to see another
day, I think we owe to all of them
just a minute of our time, one minute of silence.”
However, that same date Aug.
29 also symbolises a fresh, bright
start for the Kazakh people. On this
day in 1991, President Nursultan
Nazarbayev issued a decree to shut
down the Semipalatinsk test site
and stop the suffering of more than
a million who had perished and suffered and countless others who are
still witnessing the consequences
of the Soviet nuclear legacy.
“Just like after a dark night,
dawns a bright morning, we hope
after a horrible past humanity will
dawn the new bright nuclear-weapon-free future for the sake of our
children,” said Roman Vassilenko,
chairman of the International Information Committee of the Kazakh
Foreign Ministry. “These white
balloons symbolise the joy and victory and bright feelings of good will
and I am very glad that we gathered
here today, with our children that
are about to commemorate the victims of nuclear tests by releasing
the white balloons into the sky.”
“The 500 white balloons symbolised the nearly 500 nuclear tests
conducted at the Semipalatinsk polygon from 1949 until 1989,” said
Nurlan Amanov, chairman of the
Revision Committee of the Federation of Judo Veterans of Astana and
one of the organisers of the event,
as white balloons were released.
Launched on Aug. 29, 2012 by
President Nazarbayev, The ATOM
Project was supported by more than
200,000 citizens from over 100
countries, with the ultimate goal to
ensure early entry into force of the
Comprehensive Nuclear-Test-Ban
Treaty (CTBT).
The CTBT would ultimately ban
all nuclear explosions in all environments for either military or
civilian purposes. The treaty was
adopted by the UN General Assembly in 1996 but can only be
enacted should eight specific countries – China, Egypt, India, Iran, Israel, North Korea, Pakistan and the
United States – both sign and ratify
it. Although 183 states have signed
the treaty and 164 ratified it, those
nations have not yet followed suit.
Kyrgyz Community Centre Draws
Brotherly Ties with Kazakhstan
Closer Through History
WASHINGTON – Government
agencies and private companies
discussed opportunities for U.S.
participation in EXPO 2017, which
will be held in Astana, as Expo
National Commissioner and First
Deputy Foreign Minister of Kazakhstan Rapil Zhoshybayev began his visit to the U.S. on Sept. 2
with a series of meetings in Washington, D.C.
As home of the world’s leading
companies inventing and advancing green technologies, the U.S.
is a country whose involvement in
the exhibition would appear to be
vital, given the exhibition’s theme
of “Future Energy.”
The country’s special credentials
in the clean energy sector include
being the birthplace of the first
wind generator, created in 1888 by
Charles Brash in Cleveland, Ohio;
and the first solar panel, presented
in 1954 by Bell’s laboratory in
Murray Hill, New Jersey. The U.S.
was also the first country to launch
production of hybrid automobiles.
Today the U.S. is home to two of
the world’s most successful green
companies: Tesla and SolarCity.
The U.S., which has hosted a
number of successful world fairs
since the 1853 Exhibition of Industry of All Nations in New
York, is no longer a member of International Bureau of Expositions
(BIE). However, it still presents
pavilions, usually privately-funded, at BIE-authorised expos. Obviously, an American presentation
at EXPO 2017 in Astana would
help demonstrate U.S. leadership
in green and power-saving technologies.
Continued on Page B6
Astana Street
Musicians Perform
for People, Fun
and Money
By Kamila Zhumabayeva
ASTANA – Despite pressure
from local law enforcement bodies, guitar and saxophone performers play and sing in an underground
crossing and near the Yessil River.
They are not always banished, except possibly during official events
and checks, yet busking is quite
difficult for most of them.
“Depending on the season or
their moods, buskers in Astana
scatter along the river and perform in groups or alone. Some of
them have their own band names
and performance seasons, during which jamming sessions get
quite big,” ex-musician and bank
worker Dmitry, who only gave his
first name, shared with The Astana
Times.
The summer season can gather
around a thousand people in the
city’s central park. Performers can
be youngsters and older folk.
“It is all for art’s sake. Everybody just enjoys and is passionate
to perform,” said Dmitry.
The busker community is a small
one and many of the artists know
each other and can perform together without conflict, he added.
Some of them quit busking, however, return to the area where they
previously worked or get a new
job.
“I know a lot of street musicians
and bands were recording their
own music some time ago, but had
to drop because of conflicts with
local music recording studios,”
said Dmitry.
At times, young buskers encounter aggressive behaviour from people who look for an argument and a
fight for money and territory.
Things to Watch &
Places to go
Central park
September 13 at 8 a.m. BKS Air Astana Marathon
Chicago
Music Hall
September 13 at 9 p.m. Concert of Georgian singer Soso
Pavliashvili
Members of the Kyrgyz community centre in Astana.
By Dmitry Lee
ASTANA – The two brotherly
ethnic groups of Kyrgyzstan and
Kazakhstan share many common
grounds and a long-time history.
The cuisine, culture, musical instruments and even the languages
are quite similar, according to
chairman of the Kyrgyz ethno-cultural community centre in Kazakhstan Shavkat Ismailov.
“Today, there are some 30,000
ethnic Kyrgyzs with Kazakh citizenship living in Kazakhstan. Besides, about 18,000 Kyrgyzs have
permanent residence and on top
of that, between 30,000 to 50,000
Kyrgyz citizens travel to Kazakhstan each summer to work,” said
Ismailov in an exclusive interview
with The Astana Times.
sary arka
cinema
September 22 at 7:30 p.m.
Love Drink, Premiere
B2
Nation&Capital
people
Kyrgyz Community Centre in Astana Draws Brotherly
Ties with Kazakhstan Closer Through History
“They are engaged in various activities; government clerks, business people, construction workers,
service sector, sales, finances and
so on,” he added.
Given the geographic location
of the two countries, it is neither impressive nor surprising
to discover that while at times
seasonal, quite a large number of Kyrgyz nationals compose the 17 million Kazakhstan
population. After all, the countries share a nearly 1,000-kilometre border where the heads
of state oversaw the removal of
customs control on Aug. 12 as
part of Kyrgyzstan’s accession
to the Eurasian Economic Union (EAEU), key components of
which include promoting the four
freedoms of movement of goods,
services, capital and workforce.
According to the 61-year-old
Ismailov, however, the Kyrgyz
peoples settled on Kazakh territory centuries ago, in addition to
the recent-decade migration waves
from the country due to an unstable economic situation.
“Some Kyrgyzs have been living in the central parts of Kazakhstan from around the 17th
century; these include the Eastern
Kazakhstan, Akmola, Kokshetau
and Karaganda regions. They are
Kazakhs, but their structural tribal
name is Kyrgyz,” he said.
Shavkat Ismailov (R) with legendary Kyrgyz writer Chinghiz Aitmatov at the top of the Baiterek tower in Astana.
Kazakhs and Kyrgyzs have tribal names which vary depending on
the territory from which their ancestors hailed. The Kyrgyz peoples
have assimilated in Kazakhstan,
according to Ismailov, had mixed
marriages and their identity has
been overshadowed but not entirely lost.
Another wave of immigrants
from Kyrgyzstan came in the mid-
country, raise children and learn
the language.
One of the priorities of our centre is to help the newly-arrived
assess and integrate socially and
culturally in the Kazakh society,”
said Ismailov.
The Kyrgyz ethno cultural community centre is very active in Kazakhstan, he added.
“Besides the language school
dle of the 20th century during the
years of raising the Virgin Lands.
Some served in the Kazakh army
and stayed, although the circumstances were quite different. The
most recent immigration tendency
was in the mid-1990s, after the
collapse of the USSR and Kyrgyz
economic decline.
“A lot of Kyrgyzs stay in Kazakhstan; they like to live in this
and the choreography classes,
studying the Kyrgyz legendary epos ‘Manas,’ hosting craft
classes, offering komuz (Kyrgyz
musical instrument) lessons and
participation in all events held
by the Assembly of the People of
Kazakhstan, we have computer literacy classes for the handicapped,
no matter the citizenship, at the
National Academic Library and
the Kazakh-Russian University,”
said Ismailov.
“In a span of two years, our
community centre had donated 12
computers; 135 students had successfully completed our computer
literacy courses and six were employed so far. Also, on Aug. 29
we hosted a charity event for the
needy children. Forty first-graders
were given school backpacks with
accessories for the school season,”
he added.
The centre also helps in the
search for missing relatives with
the support of the national archives, Arabayev University in
Kyrgyzstan and the Historical Museum of Kyrgyzstan, which spread
the list of the missing relatives that
keeps piling up on Ismailov’s desk
via mass media channels.
“This turned out to be a whole
new project. People ask us to help
them locate their relatives and we
can’t turn down their favours,”
said Ismailov.
The legacy of ancestors saw
light in a new symbolic, historic
First Kazakhstan’s Armed Forces Military
Observer Returns from Western Sahara
ASTANA – Captain Temirlan
Musapirov, the first Kazakh Armed
Forces officer to travel to Western
Sahara as part of the United Nations (UN) mission in Western Sahara, has returned to Kazakhstan,
reported the Kazakh Ministry of
Defence press service.
“In Western Sahara, there are
completely different people assembled as military observers.
There you realise that no matter
what your military rank, age or
nationality, you have to remain
neutral and to remember that you
will be judged on the whole country. This is very a responsible mission,” said the officer, who served
in the African nation for a year
with representatives from more
than 30 countries to fulfill the tasks
of the military observers.
Musapirov has subsequently
started his duty with KAZBAT, the
second Kazakhstan peacekeeping
battalion. Despite the fact that serving in a foreign country away from
Photo: Ministry of Defence of Kazakhstan
By Aiman Turebekova
UN Peacekeepers on mission in Western Sahara.
family members is not easy, yet
necessary, he expressed his readiness to go back to the mission.
Participation as a military observer with UN missions requires a
high-level knowledge of the English language in order to work with
documents and the driving skills
for special cars, as well as the successful completion of certain UN
training courses.
Six Kazakh officers are currently
serving in UN missions in Western
Sahara (United Nations Mission
for the Referendum in Western
Sahara or MINURSO) and Côte
d’Ivoire (UNOCI or United Nations Operation in Côte d'Ivoire).
Kazakhstan is ready to send up to
five officers each to the UN mis-
sions in Western Sahara, Cote
d’Ivoire, Haiti and Liberia.
The UN has been seeking a settlement in Western Sahara since
the Spanish withdrawal in 1976
and ensuing fighting between
Morocco, which reintegrated the
territory, and the Frente Polisario. Despite the continued divergence in positions, the renewed
dialogue marked the first direct
negotiations between the parties
regarding the conflict in more
than seven years. Throughout
this period, MINURSO continued to fulfil its mandate by monitoring the ceasefire as well as
supporting a range of assistance
programmes to address the plight
of displaced and separated Sahrawi families.
UNOCI has remained on the
ground to protect civilians, provide
good offices and support the Ivorian government in disarmament,
demobilisation and reintegration
(DDR) of former combatants, as
well as on security sector reform,
and to monitor and promote human rights.
The United Nations Mission in
Haiti (UNMIH) mandate assists the
nation’s democratic government in
fulfilling its responsibilities in connection with sustaining a secure and
stable environment established during the multinational phase and protecting international personnel and
key installations, the professionalisation of the Haitian armed forces
and the creation of a separate police
form through the Kyrgyz community centre.
“Once I received a manuscript of
one of the versions of the famous
Kazakh folk epic ‘Kyz Zhibek,’”
he said.
The work was banned from the
educational system in the 1950s
and labelled “antinational.” It has
no author and is considered folklore literature but had many versions, one of which ended up in
Ismailov’s hands.
“It was given to me by the relatives of a former Kyrgyz gulag
prisoner, Kuzebai Kuranov, who
was imprisoned for political treason and exiled to a concentration
camp otherwise known as Karlag near Karaganda in 1953. The
101-page manuscript was given
to Kuranov by a Kazakh in the
Karlag, whose name is yet to be
determined under one condition –
it was meant to be an ‘amanat,’ a
duty to be carried out no matter the
circumstances. In Kuranov’s case,
the manuscript had to be delivered
back to Kazakhstan where it was
banned,” he said.
At the moment, the document is
in Astana and is being studied by
various scholars, historians and
archivists. This ‘amanat’ has symbolically found its way back to
Kazakhstan 60 years later and now
can be considered accomplished,
as per Kuranov’s request, with the
help of the Kyrgyz community
centre in Kazakhstan.
force. UNMIH was also to assist the
Haitian legitimate constitutional authorities in establishing an environment conducive to the organisation
of free and fair legislative elections
to be called by those authorities.
The United Nations Mission in
Liberia (UNMIL) was established
by Security Council resolution
1509 (2003) on Sept. 19, 2003 to
support the implementation of the
ceasefire agreement and the peace
process; protect UN staff, facilities
and civilians and support humanitarian and human rights activities;
as well as assist in national security reform, including national
police training and formation of a
new, restructured military.
Photo: Ministry of Defence of Kazakhstan
Continued from Page B1
B3
Nation&Capital
Culture
Theatre Director Sees Dramatic Changes in Kazakh Scene
ASTANA – Kazakhstan’s classic theatre scene has changed
quite a bit since the Soviet Union
times, but the classical masterpieces of William Shakespeare,
Anton Chekhov, Evgenii Brusilovskii, Murat Auezov, Gabit Musirepov and Beimbet Mailin can
never become old.
Famed plays such as “King
Lear,” “Sonnets,” “Сhaika,” “Kyz
Zhibek,” “Karakoz,” “Akan Seri
– Aktokty,” “Kozy Korpesh –
Bayan Sulu” and “Shuga” were
directed by Ersain Tapenov, a
state prize laureate and honoured
arts worker who is now a professor in the acting skills and directing department of the city’s Kazakh National University of Arts
(KazNUA).
In a recent interview, the director spoke to The Astana Times
about topics such as Kazakhstan’s
theatrical scene, how directing
contributes to developing the theatrical arts and his experience in
Russia.
Tapenov’s passion and enthusiasm for the theatrical arts emerged
from his early childhood, when he
would gather neighbourhood kids
as his audience for his own “one
man show.” His working-class
family, however, had different
views on life.
His father, who died when Tapenov was about 25, opposed his
son’s involvement in the theatre
arts industry. Tapenov didn’t want
to be a labour worker, so he left
Kazakhstan despite his parents’
disapproval of his plans to study
the arts in Moscow, Russia.
No one from his family ever
came to the theatre to see his plays.
Ersain Tapenov
“My father was ashamed of the
fact that I was an artist. I think
that he never accepted my choice,
not even until the day he died,”
said Tapenov.
Anton Chekhov’s “Chaika”
play in the Kazakh language as
interpreted by Tapenov.
Although his father passed away
two hours before his first premiere
in a theatre in Semei, Tapenov was
strong enough to stage the play
without telling anyone. Theatrical directors are taught to not feel
sorry for themselves nor to allow
anyone to feel sorry for them, even
if a family member has died.
“If you can do it, only then do
you go into directing, we were
told as students,” he said.
Tapenov is a 1968 graduate of
GITIS, the Russian University of
Theatre Arts, where he studied
under Russian and Soviet director
Anatoly Efros. He was an intern
at the Moscow Satirical Theatre from 1974-1976, staging his
diploma performance, “Pena,”
based on the work of the Russian
poet and writer Sergey Mikhalkov.
“I wouldn’t say the times were
difficult. I did not feel hardships
when I was leaving Kazakhstan to
pursue my studies in Moscow for
the first time,” said Tapenov.
He admitted having critical
moments when he was forced
to leave his job in Kazakhstan
and travel to Leningrad for two
Photographer’s Edgy Work
Earns Int’l Recognition
By Zhazira Dyussembekova
ASTANA – Young Kazakh photographer Veronica Lerner snapped
a shot of her grandmother sitting
on the stool in her kitchen almost
uncovered. The artist’s work was
shown at the Louvre in Paris as
part of the fifth annual Exposure
Award portraiture collection and
will be featured in the hardcover
book of the same name.
“That picture of my grandmother is considered to be provocative
by most people. My granny did
not refuse me when I asked her if I
could take a picture. I make photos
of her all the time; she got used to
it. When I posted it online for the
first time, a lot of people criticised
it. But it is my vision of my reality.
It is my grandmother, my apartment and my home. This is how I
see my life and it is sincere. That
picture has a deep history for me.
I think it can be felt; it is not just a
photo, it shows a moment of life,”
said Lerner in an Aug. 27 interview with The Astana Times.
“With that picture I wanted to
show a moment of life; in particular of my grandmother, who sits
on the stool in her kitchen almost
naked. That moment in your life
when you realise that you have
lived your whole life; when you
realise that you are at a new stage
of your life, sitting naked and lonely. Actually, it is something you
have to remember always. I mean
that any person should not depend
on clothes or material things; he
should take the fact that he has
only himself. Maybe it is a hard
truth, but it is truth,” said Lerner.
The Exposure Award was established five years ago and in that
time participants from more than
191 nations have submitted their
work. According to Exposure’s
website, the photographs have been
seen by an estimated three million
people. The award has several sections and Lerner submitted 15-20
photos in April. Later, the shot of
her grandmother was selected to
be part of the portraiture collection
and honoured at a July 13 private
reception at the museum.
Lerner spoke about her grandmother’s reaction.
“My grandmother was shy at the
years as a result of his activities
in Zheltoksan, the December
1986 riots. Azerbaizhan Mambetov, Tapenov’s close friend
who also participated in the
event, encouraged the director
to return to Kazakhstan after
Tapenov said he wanted to leave
the country.
A film and theatre director who
staged Kazakh plays and poems in
Moscow, Paris and Czechoslovakia, Mambetov had a direct influence on Tapenov’s life and career.
“His work and his level was a
revolution for the Kazakh theatre
scene,” said Tapenov.
At his friend’s advice, Tapenov
went to Pavlodar in 1989 in an attempt to recreate Kazakh theatre.
“I was told to start working at
a theatre that had no artists, no
facilities, no building,” said the
director.
Tapenov received help from
Ashirbek Sygai, the rector of
Temirbek Zhurgenov Kazakh National Academy of Arts in Almaty,
who passed away in 2014. He sent
his students who were graduating
from musical comedy and dramatic actors courses to pass their
state exams on the stage of the
Pavlodar theatre.
A month later, a symphonic orchestra was created to stage their
first play, gathering people from
throughout Kazakhstan including
Mambetov, then a chief director
of the Auezov Theatre, noted Tapenov.
Akim (mayor) of Pavlodar’s
Aksu region Kuat Esimkhanov
had costumes sewn for the play’s
25 actors and provided dombra
national musical instruments,
decorations, a piano and a bus. He
also offered salaries for the actors
beginning and at the same time she
was pleased. Despite her age, she
is still young inside and she likes
attention,” she said.
Lerner was born in Astana
(Tselinograd at that time) and has
been working as a photographer
for almost eight years. She never
studied the art, gaining her experience through her practice.
“I think that all my work is my
own merit. Practice shows what
you are capable of. I would call
myself a representative of fine art
photography. I don’t want to be
part of the mainstream. Fashion
photography is very popular today.
In my opinion, individuality disappears in the mainstream. For example, when you look at the works of
the great artists, you can definitely
say it was drawn by Picasso. It is so
unique and nobody does the same.
ASTANA – The capital city’s
Tlep Qobiz Sarayi concert hall
opened the history and culture international festival of ethnic cultures contest Sept. 2. The threeday jubilee was devoted to the
550th anniversary celebration of
the Kazakh Khanate.
“The event aims to popularise
Kazakhstan in the world and the
revival of Kazakh ethnic music
and choreography,” national Delphian committee board member
Kuralai Tuspakova told The Astana Times.
The festival is uniting creative
people from different parts of the
world to popularise and preserve
national identity through culture,
language and history, noted Advantour.com.
“Foreign participants were performing the Kuanysh waltz. Each
performer will take its phonogram
away with them and will include
it in their performing repertoire.
Like that, 12 countries will know
that the country has this kind of
composition by Shamshi Kaldayakov,” said Tuspakova.
Representatives from more than
So today it is hard to recognise such
talents, because a majority follow
trends. Names of authors get lost.
The same things we can observe in
art, literature and, of course, photography,” said Lerner.
She also shared her opinion on
the current photography industry.
“One of the popular directions
today is city culture photography;
I can say minimalism is gaining success. I even would call it
mainstream. When the new type of
photography comes out, it is very
interesting in the beginning. After
that, so many people are getting involved in that direction. According
to my experience, young talents
have to try themselves in different
directions so they know which one
is the best of them and in which
they want to develop themselves,”
said Lerner.
and experience back to Kazakhstan.
“The rector of KazNUA Aiman
Mussakhodzhayeva invited the Royal Shakespeare Theatre to Kazakhstan this year, which also brought
Shakespeare’s famous play ‘Hamlet’
with them,” said the director.
The theatre performed and conducted a master class exclusively
in KazNUA.
“This all helps and will help in
developing the theatrical arts in
Kazakhstan,” the director stated.
Kazakh theatre arts are now
supported with titles, state prizes
and annual contests, but it is often not enough as actors’ salaries
are very low, he added. Many earn
additional income at weddings or
as security guards and those with
families often do not have their
own place to live. Financial support is needed, especially for regional and peripheral theatres.
“In a theatre, directors can do
nothing without talented actors, the
people who I worked with. These
are the actors who not only take, but
also give back and help,” Tapenov
emphasised, referring to Turatai
Iisova, Asiya Abilayeva, Kargash
Satayev, Zhanat Chaikina, Sholpan
Baigabylova, Tolegen Kuanyshev
and Assylbolat Smagulov.
He staged “Hamlet” with Russian screen and stage actor Sergey
Bezrukov, while working closely
with his father, Vitalii Bezrukov,
from whom Tapenov learned a lot
and for whom he is quite thankful.
“Theatre is a life. When there
is a funeral where people grieve,
or when there is a wedding where
they are happy, I often try to remember in which play was the
scene that I see at the moment,”
said Tapenov.
Int’l Ethnic Cultures
Festival Has Spectacular
Opening in Astana
A portrait by Veronika Lerner.
which for the time were significant, Tapenov stressed.
The theatre is 25 years old now
and Tapenov, a co-founder, has
worked there for more than two
decades. He is now being invited
as a director jury to national and
international theatre festivals,
where his plays also tour.
Tapenov specialises in opera,
operetta and musicals as his favourite genres, which are also
among his current projects.
Theatre work is currently more
about directing, while in earlier
years it was about acting, stressed
the director. He added treatments
have been completely modernised and directing became necessary, the main changes since
Soviet Union times which now
contribute to the development of
the theatre.
Tapenov said he does not deny
the contribution of Russian pedagogics in developing the theatre
arts in Kazakhstan. Many of the
country’s directing students study
at Leningrad Theatrical Institute,
Russian Academy of Theatre Arts
and Moscow State University.
“Students see Moscow theatres,
arts and culture museums like
Saint Petersburg’s Hermitage,
Moscow’s Pushkin Museum and
the Tretyakov Art Gallery, [they
also see] the best theatrical plays
of post-Soviet space and international Chekhov theatrical festival
where British, French, Chinese,
Japanese traditional and modern
theatres arrive on tour, like it is
Mecca,” he stated.
Tapenov believes students
should study in Kazakhstan but at
times should go to Russia so they
can see, learn more within a fraternity and bring their knowledge
a dozen countries participated –
Bulgaria, China, Hungary, Kazakhstan, Moldova, Mongolia, Russia,
Syria, Ukraine and Uzbekistan, as
well as from a number of Russia’s
regions such as Bashkortostan,
Dagestan, North Caucasian Federal District, Karachay-Cherkessia
and Kabardino-Balkaria,
In the first round, participants
perform either compositions of
Kazakh musicians or Kazakh folk
music. Those who advance to the
second tier will present musical
compositions of the country they
represent, according to Advantour.
com.
The genres of the contest were
divided into vocal, instrumental
and choreographical for all performing contestants. “Instrumental
performers are interested in instruments, vocalists in performance
style and choreographers are interested in certain dancing moves
during rehearsals,” said Tuspakova.
“We cannot measure arts, but
looking at how participants communicate with each other now,
how they have a live interest and
observed what was going on at the
opening ceremony, like the presentation of Kazakh ancient instru-
ments and Desht-i Kipchak film,”
said Tuspakova.
In an atmosphere of genuine
friendship and freedom of art, the
festival promises to be bright, intensive and memorable for everyone
who attends, wrote Advantour.com.
Tuspakova believes the continuation of the event will be very interesting. New connections will be
established, existing relations will
become stronger and everybody
will know more about one another.
According to Tuspakova, the
festival is regulated by government decree. The Sagadat Nurmagambetov Charity Fund is the
event coordinator and only founder financing the event.
The Kazakh Ministry of Culture
and Sports, Kazakh National Delphian Committee, a coordinator of
the project which serves as a directing team to handle the creative
work and selecting contesters, and
Sagadat Nurmagambetov International Charity Fund were among
the festival partners.
The fund plans to make the gala
an annual event and with the support of the ministry of culture and
sports and the Assembly of the
People of Kazakhstan, it will have
a long life, said Tuspakova.
B4
Nation&Capital
COUNTRY
ed by Calgary (Canada), Sydney
and Perth (Australia), Auckland
(New Zealand) and Helsinki (Finland).
According to the ranking experts, the most liveable places
tend to be mid-sized cities located
in developed countries, which
have relatively low population
density. This explains why such
popular cities as London and New
York gained a lower number of
points.
Among the five least liveable
cities are Tripoli in Libya (40),
Lagos in Nigeria (39.7), Port Moresby in Papua New Guinea (38.9)
and Dhaka in Bangladesh (38.7).
Syrian Damascus was the lowest
scoring city in the survey with a
score of 29.3.
Three other cities from the Commonwealth of Independent States
(CIS) made the list. The capital city of Uzbekistan, Tashkent
ranked 116th with 54.6 points.
Moscow with 72.9 points and St.
Petersburg with 74.1 points ranked
81st and 77th respectively.
By Julia Rutz
Almaty, Kazakhstan’s former
capital, was recently ranked the
100th most livable city in the world
among 140 listed by the Economist Intelligence Unit (EIU),
which is the research and analysis
division of the Economist Group,
a sister company of the Economist
Magazine.
The ranking examined five characteristics: stability, healthcare,
culture and environment, education and infrastructure. Out of 100
points, Almaty received 65.3. The
city’s stability level garnered 75
points, health care 66.7, culture
and environment 57.6, education
66.7 and infrastructure gained 60.7
points.
The world’s five most liveable
cities according to the Economist
Intelligence Unit are Melbourne,
Australia (97.5), the Austrian capital Vienna (97,4), Canadian Vancouver (97.3) and Toronto (97.2)
and Adelaide, Australia (96.6).
The top ten cities’ list is complet-
Photo: Wikimedia commons.
EIU Ranks Almaty Among the World’s Most Liveable Cities
Almaty by night.
Officials Step Up Measures
to Combat New Synthetic Drugs
on Counternarcotics actions and
crime prevention in Thailand with
neighbouring countries has introduced a new drugs notification
system and its samples are sent
to the laboratories of these states.
Such an approach significantly
reduces the time and cost for new
types of drugs investigation, the
amount of which is about $1,000
for one expert only in Thailand. It
seems that the use of United Nations Office on Drugs and Crime
(UNODC) channels to create a
ASTANA – To help identify and
stem the flow of new illegal synthetic drugs, Kazakhstan plans to
intensify international work on
seizure, timely notification and the
creation of a databank.
“The forecasts look anxious
in connection with international
anti-terrorist coalition withdrawal
from Afghanistan. Many experts
consider that it may lead to drugs
flow increase because its production and especially development
of new types grow annually. The
appearance of new types of drugs
is a particularly relevant problem
for Kazakhstan. It is caused by
the lack of new types of synthetic
drugs samples, [for example the
smoking drug] Spice. That significantly complicates the identification of examined types,” Kazakhstan’s Prosecutor General Askhat
Daulbayev stated at the ninth
meeting of Prosecutors General of
the Shanghai Cooperation Organisation (SCO) in late August.
Daulbayev considers that the
work on seizure, anti-transit and
distribution of drugs will become
more effective if neighbouring
states unite, saying, for example, that the UN Administration
databank and transfer samples will
allow experts to address the issue
of new synthetic drugs.
In turn, Russian Prosecutor General Yuriy Chayka announced the
need for anti-drug legislation for
SCO members and an amendment
to the anti-drug strategy accepted in
2011.
“It is very important to activate
the work on anti-drug legislation
of SCO member states harmonisation and also national lists of drugs
to be immediately coordinated.
Photo: Myfresh.tv
By Ksenya Voronina
and Zhaniya Urankayeva
Considering the appearance of
new drug threats, especially associated with active distribution
of synthetic substances, anti-drug
strategy of SCO member states
approved in 2011 for 2011-2016
must be amended promptly,” he
said.
Russia’s prosecutor general also
stated the need for of law-enforcement agencies of SCO member
states to work in closer cooperation with other international structures on global anti-drug efforst.
Kazakhstan Bans
21 Extremist
Organisations
By Kseniya Voronina
Seven hundred websites and 21
religious organisations have been
banned in Kazakhstan in reaction
to extremist ideas and terrorist
threats in the country, announced
Kazakh
Prosecutor
General
Askhat Daulbayev during an Aug.
27 meeting of attorneys general
organised in the framework of the
Shanghai Cooperation Organisation (SCO) in Astana.
“Apart from organisations, whose
activities were recognised as extremist and were prohibited in the
country, all the videos which call to
join terrorists in Syria and Iraq have
been announced as illegal. These
are videos like ‘The Mujahideen of
Kazakhstan in Sham,’ ‘Those who
were True to Allah’ or ‘Compete in
Good Deeds.’ In connection with
the spread of online extremist materials, the import and distribution
of about 660 informational publications have been banned as well
as 700 websites with inappropriate
content,” said Daulbayev.
He also reported on the successful experience of the socialisation
of ex-radicals.
“Based on the experience of
other countries, Kazakhstan works
on the rehabilitation of adherents
of non-traditional religious movements, which involves working
with their environment. Thanks to
preventive measures, more than
a half of the imprisoned religious
radicals gave up their extreme ideology,” said the head of the prosecutor general’s office.
However, Daulbayev drew attention to the fact that the threat of
extremism and terrorism is not reduced yet. “We can’t forget about
other terrorist groups that are deployed and very active in other
regions of the world, including the
Middle East, Central and East Asia
and Africa,” he added.
The prosecutor also mentioned
the issue of Kazakh citizens participating in terrorist activities
abroad. “One of the actual problems for Kazakhstan, like for other
countries, is the participation of
our citizens in military operations,
fighting on the side of terrorist
organisations. The competent authorities are working to curb the
departure of our citizens abroad in
order to participate in terrorist activities,” concluded Daulbayev.
Australian Mining Company to Begin Exploration
in Kazakhstan
Australian company Iluka Resources, Limited will begin exploration in Kazakhstan, Kazakh
Minister for Investment and Development Asset Issekeshev and
the head of Iluka’s regional office
in Almaty Alison Morley recently
announced, reported the press
service of the Kazgeologiya company.
“The parties discussed a project concerning the realisation
of national geological studies on
three sites located in the Kostanai,
North Kazakhstan and Akmola regions. The project is going to be
implemented in the frameworks of
the Memorandum of Understanding and Cooperation in the Field
of Geological Study and Exploration,” explained the information
department of the Kazgeologiya
company.
According to Issekeshev, the exploration work is going to be one
of the main priorities in the industrial policy and high-tech services
of the country in the coming years.
Raw materials are one of the main
components of the well-functioning industry in the country, thus
the state pursues comprehensive
work in this field, including the
liberalisation of legislation based
on the Australian experience, he
explained. It is also planned to present at least 100 geological objects
at the coming auction by the end
of the year.
Morley thanked the Kazakh
ministry for supporting the project
and reported on the company’s
activities in Kazakhstan over the
past year, including the beginning
ing the geological studies and
further exploration. In case of a
commercial interest, the company
may also consider constructing
a mine and a processing factory
with a general estimation of investment needed at $500 million.
Iluka Resources Limited has also
announced its plans to conduct
an airborne geophysical survey in
September.
The company, founded in 1954
in Perth, Australia, conducts exploration, mining, processing, project development and marketing of
According to Issekeshev, the exploration
work is going to be one of the main
priorities in the industrial policy and hightech services of the country in the coming
years. ... It is also planned to present at least
100 geological objects at the coming auction
by the end of the year.
of exploration work on the abovementioned sites.
The Australian partners will
cover all expenditures concern-
mineral sands products. It is also
one of the biggest producers of
zircon and high-quality titanium
dioxide products in the world.
Photo: Kazgeology
By Julia Rutz
Iluka Resources and Kazgeology personnel on a working trip.
B5
Nation&Capital
SOCIETY
Chevron Provides State-of-the-Art Equipment to Astana
Medical Institutions
By Bauyrzhan Tlepov
Chevron provided ten children’s
medical hospitals and educational
institutions in Astana with stateof-the-art equipment at a ceremony held at the city Children’s Hospital No. 2 on July 10. This support
to national healthcare is part of
Chevron’s Social Investment Programme implemented in Almaty
and Astana in partnership with local departments of health and nongovernmental organisations.
In 2015, in partnership with the
Ayala charity foundation, Chevron
conducted a needs assessment in
Astana, and together with local
authorities and social institutions
developed a list of much-needed
equipment.
For instance, the city psychoneurological medical and social
institutions received medical
equipment for physiotherapy and
physical rehabilitation of people with special needs, including
equipment for pottery workshops,
a valuable and long-awaited gift
for the Dos Centre of the Public
Association of People with Special
Needs.
“Members of our organisation will get multiple benefits and
positive emotions from the pottery presented by Chevron. It will
help people with special needs develop tactile sensations, fine motor
skills and create opportunities to
try themselves in crafts making,”
said Dina Yerdildinova, Head of
Dos Public Association of Handicapped. “We are thankful to Chevron for taking care about our needs
and support to our members and
their families.”
Chevron has also acquired a
resuscitation padded platform,
syringe dosage devices, phototherapy apparatus, oxygen concentrators, sensor rooms, infusion
stations, as well as equipment and
furniture for the city’s children’s
hospitals No. 1, No. 2 and No. 3.
With Chevron’s assistance, kindergartens No. 23 and No. 22 for
children with special needs assembled a sensor room and added
medical equipment for children
with impaired vision along with
Delfa simulators for treatment of
speech pathology. Asyl Bobek kindergarten No. 64 for children with
locomotors system impairment
received special equipment for a
therapeutic exercise room. Special
Correctional Boarding School for
children with cognitive development disorders received a fully
equipped IT room for mental treatment.
Along with providing technical
support to local healthcare systems, Chevron is developing the
capacity of medical personnel.
Chevron’s Social Investment Supervisor Leila Aitmukhanova said,
Nationwide Effort to
Improve Local Policing to
Begin in January 2016
By Dmitry Lee
ASTANA – A nationwide effort
to improve local policing throughout the country will begin Jan. 1,
2016, Chairman of the Committee of Administrative Police of
the Ministry of Internal Affairs of
Kazakhstan Igor Lepekha said at a
recent briefing at the Central Communications Services.
“It is assumed, or rather, we
have been tasked to assure that the
local police start working on Jan.
1, 2016. You know that today the
Parliament has started working. In
the next few days, working groups
will be established, which will include staff from all departments
and will start working on the bill,”
said Lepekha.
He also added that local police
will have the authority to implement the principle of ‘zero tolerance.’
The law enforcement repre-
sentative also reported that heads
of local police departments will
be obliged to at least twice a year
report to the Akimats (city administrations) and Maslikhats (city
councils) and, once a year, to the
public as stated by the head of state
on May 5.
will include units such as: precinct police inspectors and their
assistants, territorial divisions and
school inspectors, juvenile police
units to protect women from violence, division of environmental
police, as well as specialised receivers for administrative detain-
LEPEKHA: “The main task
is to draw the police services closer
to the population and to ensure
its transparency.’’
“The main task is to draw the
police services closer to the population and to ensure its transparency. Police reporting to Maslikhats
and the population is one of the
tools of the service. The meeting
of the local Maslikhat with the police would be held twice a year,”
he said.
The structure of the local police
ees and reception centres for the
homeless.
“Also the local police will remain in the structure of the internal
affairs authorities and will keep the
unity of the system in such a way
so the employees would retain the
same support, benefits, social and
legal guarantees provided for the
police,” he added.
Photo source: Khabar.kz
Local Factory Produces
School Uniforms that Protect
from Cell Phone Radiation
New school uniform that protects from mobile phone radiation.
ASTANA – One domestic factory
is sewing clothing for school pupils
that manufacturers believe protects
wearers from the electromagnetic
radiation of mobile phones, Khabar.
kz reported Aug. 17. The approximate price for the new uniform is
15,000 tenge (US$62).
“Kids nowadays are very
tech savvy and spend too much
time with their phones,” Aigul Naushabayeva, mother of a
12-year-old daughter, told The
Astana Times.
She thinks this type of uniform
will definitely be in demand for
parents who want their children
to be protected from the harmful
effects of mobile phones. “Children should wear such uniforms as
health is priceless,” she added.
A collection of “Smart” uniforms is made for girls and boys. It
looks like an ordinary formal suit
with a variety of styles offered, but
the secret cannot be understood at
first glance, the agency reported.
“A compound of X-shield fabric that is sewn into inner pockets
uses copper that provides protec-
tion against mobile phone radiation. We were holding tests with
special appliances in a laboratory
and found that when a phone is
in that pocket, radiation is 80 to
90 percent less harmful,” administrator of chain stores in Astana,
Dilyaram Tursinova told Khabar
news agency.
The electromagnetic radiation
protective uniforms are sewed at
a factory in the Almaty region,
but can be purchased in Astana,
Karaganda and Moscow. Fiftythousand sets of the uniform were
made this year and up to 70,000
are planned for production next
year, Khabar reported.
Children are particularly sensitive to electromagnetic radiation,
vredpolza.ru reported, referring to
scientists saying that the frequent
use of mobile phones can put children at an increased risk of memory and sleep disorders.
The radiation can affect brain
rhythms and cause harm to the
immune system of a child. Effects of harmful electromagnetic
radiation are like disturbances
on a radio and lead to destabilisation of body cells, disorders of
the nervous system, emergence of
headaches and memory loss, the
website stated.
“Apart from purchasing vital medical and correction equipment, we
also train local medical personnel
and create conditions for sharing
practices between specialists.”
In 2014, Chevron funded the
training of 25 pediatricians on current developments in neonatology
and resuscitation.
Kazakh Biotechnologist Helps
Create At-Home STD Test
By Michelle Witte
ASTANA – The Hoope, a home
detection kit to diagnose sexually
transmitted diseases that was the
brainchild of a team including Kazakh biotechnologist Damel Mektepbayeva, is expected to go into
mass production next year, Forbes.
kz reports.
“Each year, 500 million people
get infected with one of the four
most common sexually transmitted
diseases,” a video for the Hoope
project on the Singularity University website says. “We’re hoping
we can create a behaviour change
in teenagers by combining easy
diagnostics with education at this
crucial point in their lives. Nowadays, STD screening requires embarrassing, old fashioned, slow
procedures with little privacy.”
Hoope, in contrast, detects STDs
without the need for a doctor’s appointment, trips to medical centres
or parental notification. Hoope’s
developers call it “Simple, instant
and affordable.”
“Imagine yourself asking someone for a syphilis test in a drug
store or carrying a package with
the label ‘gonorrhoea’ to a crowded checkout counter,” Mektepbayeva told The Astana Times in a
written interview on Sept. 7. “Or
would you prefer to visit a specialised STD centre, and fill out a form
for chlamydia testing? By the way,
if you are positive, you might be
added to a database of STD-positive people. Current STD testing
is just too embarrassing, stressful, expensive and time consuming.” The team’s hope with Hoope,
she said, is that it “will be as easily available as contraceptives that
revolutionised the prevention of
STDs. We hope that our devise
will bring another revolution.”
Hoope can detect chlamydia,
syphilis, trichomoniasis and gonorrhoea, according to the project’s
website. The device works by creating a small needle puncture in
a user’s thumb and directing the
resulting drop of blood direction
onto a chip, which analyses it. If
an infection is detected, one of
four lights corresponding to the
four diseases lights up on the ring.
The results are then transmitted
via Bluetooth to the user’s smartphone. The devices are expected
to be packaged with three needles
and chips, meaning each can be
used three times.
The blood collection is made
painless by “placing electrodes
in the ring that transmit current
to block the sensation of pain,”
Hoope’s website says. Bio-waste
is avoided by denaturating blood
Damel Mektepbayeva
with special chemicals and by using a retractable needle. The analysis is conducted with their “lab-ona-chip,” which uses a “low-cost,
paper-based microfluidic device
that uses capillary action and does
not require pumps or additional
power source.” Bioresponses are
converted into electronic signals
through an electrochemical reaction and sent to the users’ phone.
When the results are collected,
the Hoope smartphone application
shows information regarding sexual health, including nearby clinics,
and follow-up recommendations
to their test results.
The team dreams of putting
Hoope into large-scale production,
but the date of production depends
on the speed of their research –
and on continued investment. So
far, the project has won the World
Startup Competition 2014 in South
Korea, taking home a $20,000
prize, as well as other technology
and startup contests. Mektepbayeva says they hope to attract investors and experts who know their
target market in the U.S.
The team is confident that there
is interest in their product. “Just in
four days we got responses from
more than 200 people in 10 different countries. We found out that
young adults want to use our product. They want to know if they are
STD-free. They want to get more
information about sexual health.
They say that Hoope ring is beautifully designed and makes the testing procedure less scary and embarrassing,” Mektepbayeva said.
They are looking at a price
point of $50 for a package of one
ring and three one-use cartridges,
she said, and they would need to
sell only 30,000 such packages
to break even. “Economies of
scale will allow us reduce price
and bring our technology to lowincome countries and impact millions of people,” she added.
The team is working in three
countries, according to the Forbes.
kz report on the project. “We are
developing three countries. In
Mexico, we are engaged in research and development of hardware, in Peru are developing software and in Kazakhstan we carry
out scientific research in the field
of biotechnology and are developing a diagnostic laboratory on a
chip,” Mektepbayeva said in that
interview.
The Hoope team includes Mektepbayeva, Irina Rymshina of
Russia and Ukraine, Ernesto Rodriguez Leal of Mexico and Pawel
Jarmolkowicz of Poland. The
three are members of the Graduate
Studies Programme at Singularity University. In the programme,
teams are challenged with the task
of positively impacting the lives of
billions of people within 10 years:
the Hoope device came out of that
challenge. Singularity University
is located on the territory of the
NASA Research Centre in California.
B6
Nation&Capital
Tourism
Winners of Foreign Media Contest Travel to Borovoye
By Aiman Turebekova
ASTANA – The five winners of
the second “Kazakhstan Through
the Eyes of International Media”
contest took in views, spa treatments, horseback rides and karaoke
on a trip to Borovoye, Astana’s major weekend getaway destination.
“It was a great vacation for body
and soul,” said Bartosz Mendyk, a
journalist from Poland, who had
won in the European region.
The five winners stayed in the
Rixos Borovoe, the resort’s luxury
hotel. While in the resort, a two to
three hour drive from Astana, the
winners were offered spa treatments, horseback riding and a two
hour sightseeing excursion around
the mountains and lakes of the region, which is called the Switzerland of northern Kazakhstan.
“I have taken a lot of photos from
this visit to Kazakhstan and posted
them to my Facebook account and
on Instagram. Moreover, I advised
my minister of foreign affairs to
visit Borovoye, and particularly
to stay in this hotel,” said Marwan
Zubaidi, Radio Republik Indonesia
journalist, who won among journalists in Asia and Oceania.
“Combination of fresh air and
an outstanding view of the forest
make me feel incredibly happy and
relaxed,” said Ahmed Abdu Tarabeik, a journalist from Egypt.
Alo Khodzhayev, winner from
Uzbekistan, dedicated a poem to
Rixos Borovoe General Manager
Fevzi Opsar as a way of expressing his gratitude for the hotel’s
hospitality, he said.
“We always welcome our guests
and try to show hospitality that
flows in our veins,” Opsar said.
A local tour company “Zhemchuzhina Sinegoria”, has been instrumental in organising a good trip
for the journalists, providing guides
and supplying information about
the place, including famous myths.
“In the north of Kazakhstan,
between Astana and Kokshetau
cities there is a wonderful area, a
real oasis – Borovoye. Geographically this nook is called Kokchetav
Highlands but local guides gave
it a name of Kazakhstan’s Switzerland,” said a tour guide of this
company during a trip.
The trip to Borovoye is among
the prizes the five winners received,
which also include visits to Astana
and Almaty, as well as a sightseeing programme. The other winner
is Evelin Armella of Argentina. The
contest, now in its second year, is organised by the Ministry of Foreign
Affairs of Kazakhstan and the Union of Journalists of Kazakhstan and
sponsored or otherwise supported by
national railway company Kazakhstan Temir Zholy, Transaero Airlines, the Hilton Garden Inn Astana
and the Rixos Borovoe, as well as
transport company Argymak.
Kyrgyzstan Signs Agreement
on EXPO 2017 Participation
By Murager Sauranbayev
BISHKEK – On Aug. 21, during a visit by a Kazakh delegation
headed by EXPO 2017 Commissioner and First Deputy Foreign
Minister Rapil Zhoshybayev,
Kyrgyzstan became the first country to sign an official agreement
to participate in EXPO 2017 in
Astana.
Kyrgyzstan had previously
confirmed its participation in the
beginning of 2015 and appointed
an expo commissioner. Details
of the country’s participation, including the size and location of
its national pavilion, will be decided during a meeting of international EXPO 2017 participants
in November.
While in Kyrgyzstan, Zhoshy-
bayev met with representatives
from the Ministry of Foreign Affairs of Kyrgyzstan, President of
the Chamber of Commerce and
Industry of Kyrgyzstan and Expo
Commissioner of Kyrgyzstan
Marat Sharshakeyev as well as
officials at GazPromoil Asia.
With Sharshakeyev, Zhoshybayev exchanged views and
opinions on prospects for collaboration within the event. Sharshakeyev noted that holding the
large-scale event, with its theme
of “Future Energy,” will help
promote Kazakhstan’s green
economy. He also commented on
Kyrgyzstan’s green energy potential, with its mountains and water
resources. It will be important to
display Kyrgyzstan’s potential at
EXPO 2017, he said.
Zhoshybayev said the expo
would be a good foundation for
developing the potential of the region and the world in renewable
energy. Sharshakeyev also assured
Zhoshybayev that Kyrgyzstan will
be an active participant in presenting the most exciting green energy
achievements.
The two officials also discussed
strengthening bilateral economic
and trade cooperation and the collaboration of government agencies
and companies of the two countries.
Despite global economic challenges, bilateral trade between
Kazakhstan and Kyrgyzstan has
consistently exceeded $1 billion.
Kazakhstan is consistently Kyrgyzstan’s third largest trading
partner and among the top five
foreign investors in Kyrgyzstan’s
economy.
Marwan Zubaidi (L) from Indonesia and Bartosz Mendyk from Poland enjoy
Kazakh hospitality on a trip to Borovoye.
Air Astana Relaunches
Astana-Dubai Route
By Michelle Witte
ASTANA – Air Astana will
relaunch direct flights between
Astana and Dubai on Oct. 25, the
airline announced on Aug. 24.
Flights will be operated four times
a week, on Mondays, Tuesdays,
Fridays and Sundays, according to
Air Astana’s website.
Flights had been suspended since
October 2010, after the United Arab
Emirates imposed restrictions on air
travel between the two regions due
to traffic and landing rights issues,
according to Travel News Asia.
The issue was resolved last year,
and flights were resumed between
Almaty and Dubai in September
2014, Gulf Business reports.
“Air Astana is fully committed to
expanding the route network from
Astana, with the re-launch to Dubai
following the recent introduction
of new services from the capital to
Paris, Seoul and Tbilisi,” President
of Air Astana Peter Foster said in a
statement on Air Astana’s website.
“With Kazakhstan and UAE enjoying strengthening links in business,
finance, tourism and culture, I’m confident that the new service will be extremely popular with passengers travelling between Astana and Dubai.”
The UAE was among the original 10 countries included in Kazakhstan’s pilot visa-free regime,
launched initially from July 15,
2014, to July 15, 2015, and since
extended and expanded to 19
countries. UAE citizens may travel to Kazakhstan for up to 15 days
without a visa.
Budget airline Flydubai also
plans to launch four-times weekly
flights between Dubai and Astana
from Oct. 26.
Air Astana is Kazakhstan’s flagship carrier and the only airline in
Eastern Europe or the Commonwealth of Independent State to receive a four-star rating from Skytrax Research. It has won the Best
Airline in Central Asia and India
award from World Airline Awards
every year since 2012 and in 2015
was awarded the Airline Market
Leadership Award by Air Transport World. The company recently
announced that it had increased its
operating profit by 115 percent in
the first half of 2015 and had increased passenger numbers by 4
percent to 1.82 million.
U.S. Participation in EXPO 2017 Discussed during
Commissioner’s Visit, World Bank to Participate
While in Washington, Zhoshybayev held a number of meetings,
including at the White House; the
Department of State; the Department of Energy; the World Bank;
the Advanced Research Projects
Agency – Energy (ARPA-E); the
National Geographic Society; the
Brand USA Public-Private Partnership company, which promotes
tourism in the country; the U.S.
Green Building Council; and leading U.S. corporations, including
those engaged in promoting energy-saving technologies.
Meeting with Special Assistant
to the U.S. President and Senior
Director for Russia and Eurasia
on the National Security Council
Celeste Wallander, Zhoshybayev
emphasised the high level of strategic collaboration, traditional
atmosphere of trust and cooperation between two countries. He
said Kazakhstan was interested
in attracting American investment and technology in an effort
to strengthen bonds in commerce
and economy. Wallander noted the
timeliness of the Kazakh delegation’s visit, with U.S. government
and private companies beginning
to discuss participating in the upcoming exhibition in Kazakhstan
as EXPO 2015 in Milan draws to
EXPO 2017 Commissioner Rapil Zhoshybayev and delegation at a meeting in Washington, D.C.
a close. The Future Energy theme
and President of Kazakhstan Nursultan Nazarbayev’s Green Bridge
initiative are compatible with U.S.
President Barack Obama’s recently announced Climate Change
Strategy, which foresees development of power-saving technology,
the use of alternative energy and
reducing greenhouse emissions in
the U.S., she said.
At the Department of State,
which coordinates U.S. participation in expos, Zhoshybayev
briefed Assistant Secretary of
State for South and Central Asian
Affairs Nisha Biswal and Senior
Advisor to the Secretary of State
David Thorne on Astana’s preparations for EXPO 2017. Both
American diplomats commended
the relevance of the exhibition’s
theme for the international community and welcomed prospects
for cooperating in organising U.S.
participation at the event.
With Principal Deputy Assistant Secretary for International
Cooperation at the Department of
Energy Jonathan Elkind, the need
for collaboration in engaging corporate participants in EXPO 2017
was highlighted. It was noted that
there is a good chance that leading
U.S. companies in the sector could
use the expo to present their latest
know-how to the world.
With World Bank Vice President
Illango Patchamutu, Zhoshybayev
discussed the latest developments
in the world economy and the
bank’s projects in Kazakhstan,
including those related to EXPO
2017. Patchamutu confirmed the
World Bank’s commitment to contributing to the success of the expo.
During the visit, a round-table
discussion was organised in the office of Chevron, the multinational
energy company, where members
of Kazakh-American business associations were briefed on opportunities to participate in the Astana
expo. As Zhoshybayev noted in
his remarks at the meeting, Kazakhstan’s government considers the successful arrangement of
EXPO 2017 a high priority and is
therefore ready to create all necessary conditions for participants,
partners and visitors of the fair. He
noted that the event would facilitate the transfer of technologies, as
well as stimulate research and development activities in the renewable energy industry in Kazakhstan
and internationally.
At the National Geographic
Society, the Kazakh delegation
discussed the possibilities for promoting EXPO 2017 through the
society’s world-famous publications. It was also announced at the
meeting that an edition of the National Geographic magazine in the
Kazakh language is being readied
for launch.
Zhoshybayev also visited the
technological centres of the two
leading U.S. high-tech companies,
Honeywell International, Inc. and
the United Technologies Corporation.
A separate meeting with Kazakh students and diaspora was
arranged to inform them about
EXPO 2017 and call upon them to
help promote this national project
in the U.S.
Zhoshybayev’s programme in
the U.S. also includes trips to New
York and San Francisco, where he
was to meet with senior officials
in the UN family of organisations
and numerous private companies
specialising in renewable energy
and high technology, including in
Silicon Valley.
B7
Nation&Capital
Sports
Photo: Getty Images.
Kazakhstan Dominates ASBC Asian Local Judoka Wins
Confederation Boxing Championships Gold at World Judo
Championship
Welterweight Daniyar Yeleussinov celebrates the victory that would take him to the semi-finals, en route to his gold medal
for team Kazakhstan.
By Michelle Witte
ASTANA – Kazakhstan topped
the team rankings at the Asian
Boxing Confederation (ASBC)
Championships with five gold
medals, as fighters, who also fight
for Astana Arlans, won five of six
bouts on the last day of competi-
tion on Sept. 5. Overall, Kazakh
fighters won five gold, one silver
and one bronze medal for a total of
seven medals and 42 points.
Uzbekistan, with 38 points and
eight medals overall (though only
two gold), was ranked second in
the competition; Thailand third,
with 17 points and two golds.
Winning gold on the final day
of competition were flyweight
Olzhas Sattibayev, who beat
Incheon 2014 Asian Games silver
medallist Shakhobiddin Zoirov of
Uzbekistan; welterweight Daniyar
Yeleussinov, beating Eumire Felix
Marcial of the Philippines; light
heavyweight and London 2012
silver medallist Adilbek Niyazymbetov, who took the victory after
Uzbekistan’s Elshod Rasulov was
unable to compete because of cuts
to his eyes, according to the Inside
the Games website; heavyweight
Vasiliy Levit, who beat Uzbekistan’s Rustam Tulganov; and super
heavyweight Ivan Dychko, who
took the gold from Wang Zhibao
of China. Lightweight Zakir Safiullin had Kazakhstan’s only loss of
the final day, conceding to Mongolia’s Dorjnyambuu Otgondalai, but
earning his team a silver medal in
the process. Bantamweight Kairat
Yeraliyev earned bronze.
Eight boxers from Kazakhstan
reached the quarter finals of the
championships, a number exceeded only by Uzbekistan’s nine.
This year’s competition was the
biggest ever, Inside the Games
reports, with 188 boxers from 28
nations taking part. Fifteen individual nations won medals, and 66
boxers qualified for the Doha 2015
AIBA World Boxing Championships, which are to take place from
Oct. 5 – 15.
Other gold medal winners were
light flyweight Hasanboy Dusmatov of Uzbekistan, bantamweight
Chatchai Butdee of Thailand,
lightweight Otgondalai Dorjnyambuu of Mongolia, light welterweight Wuttichai Masuk of Thailand and Bektemir Melikuziev of
Uzbekistan.
Kazakhstan Draws with Iceland 0:0,
Loses to Czech Republic 1:2 in Group
A UEFA EURO 2016 Qualifier
By Dmitry Lee
ASTANA – Iceland recently
drew with Kazakhstan and advanced to the Union of European
Football Associations (UEFA)
EURO 2016 with two games still
remaining in Group A.
Kazakhstan withstood 12 attempts on the net from Iceland, but
managed to stand strong in a lopsided game. In three of Kazakhstan’s own attempts, they saw no
result.
However, earlier the countrywas
just 16 minutes away from a sensation in a Sept. 3 match against the
Czech Republic but couldn’t hold
off the pressure towards the endgame and yielded 1-2.
Kazakh striker Yuri Logvinenko
scored both goals in an October
2014 encounter where Kazakhstan lost 2:4. This time around
he once again picked the defence
Kazakhstan and the Czech Republic face off on Sept. 3.
early by rising above defender Václav Procházka for a header past
Petr Čech in the 20th minute from
a cross served by his teammate
Bauyrzhan Islamkhan.
The Czechs were stunned and
launched a few attacks before the
half-time whistle; one of them by
David Limberský in the 37th minute even hit the bar, while all their
attempts were futile.
The second half started with a
couple of attacks from both teams,
however, the Czech launched an
all-out attack on the Kazakhs in
hopes of getting back into the
game. Their efforts paid off when
substitute Milan Škoda came
back with an equaliser in the 73rd
minute. He sent a header by the
Kazakhstan’s defenсemen and
his teammmates from a cross by
Bořek Dočkal, his associate in the
effort.
In the 85th minute, Škoda put
his team forward by catching offguard Kazakhstan’s 22-year-old
goalkeeper Stas Pokatilov and sent
another header into the Kazakh
net.
Team Kazakhstan now has only
two points after a draw with Latvia
0:0 on Sept. 9 last year in Astana.
Next up for Kazakhstan is The
Netherlands. The teams are to face
off in Astana on Oct. 10, and on
Oct. 13 Kazakhstan will challenge
Latvia in Riga.
Yeldos Smetov celebrates his win.
ASTANA – Yeldos Smetov recently won gold in the men’s under 60 kilogrammes category at
the World Judo Championship in
Astana, defeating another Kazakh
judoka Rustam Ibrayev. Consequently, Kazakhstan took one gold
and one silver medal on the first
day of the event.
“Of course I am very happy! We
have been preparing for this World
Cup for a long time. There were
two representatives of Kazakhstan
in the final, which proves that we
worked hard. We are very excited
because gold and silver medals
remained in our country. We are
friends. That is why it was not so
important who wins in the final
battle. We have a new goal – the
Olympics,” said the new world
champion, as reported by the Kazakhstan Judo Federation’s press
service.
Ibrayev also confidently defeated Mongolian judoka Boldbaatar
Ganbat on his way to the title.
Ibrayev is very happy that two
Kazakh judokas reached the final,
saying after the awards ceremony,
“Hosting such a big event in our
country as the World Championship and presenting our country is
an honour for all of us.”
Kazakhstan was represented by
the national team, which includes
world champion Maxim Rakov,
silver medalist of the World Championships Azamat Mukanov, Asian
Games champion Yeldos Smetov
and Olympic participants Alexandra Podryadova and Gulzhan Isanova. Kazakh athletes did not win
any more medals in the championship.
Participation in the World Championship is necessary to increase
fighters’ rankings, which they need
to receive a bid for the Olympic
Games in Rio de Janeiro.
The event started in the Alau
sports venue on Aug. 24 and was
closed on Aug. 30. This was the
first World Judo Championship
held in Kazakhstan. Eight-hundred-twenty-three athletes (495
men and 328 women) and 1,000
guests from 137 countries came
to Astana to participate. Two-hundred journalists covered the competition.
The Alau sports venue is a
unique sports facility used not
only for major international and
local events, but also as a centre
for the development of sports. It
is called the “Sport Gates” of the
capital because it is the first big
building that is seen by everyone
who arrives in Astana. Designers
of the sports venue were inspired
by Kazakhstan’s steppes, putting
green elements on the facade of
the building and snowdrops reaching for the sun.
Nation Takes One
Bronze at World
Championships in
Athletics in China
By Dmitry Lee
ASTANA – Kazakhstan’s Football Club Astana beat Cypriot
APOEL on aggregate this month to
advance to the Union of European
Football Associations (UEFA)
Champions League group stage.
Astana beat APOEL 1:0 in Astana
on Aug. 18 and drew 1:1 in Nicosia, Cyprus on Aug. 26.
Thanks to a header by Baurzhan
Dzholchiyev in the 14th minute a
week before in front of a 30,000
home crowd in Astana, the Kazakh
team then ousted APOEL with a tie
in Cyprus after scoring in the 84th
minute.
APOEL midfielder Semir Štilić
scored in the 60th minute to give
his club hope for a come back
on aggregate, however, with a
late goal by Astana’s Nemanja
Maksimović, who was left in front
of the open net and only tapped the
ball in after a nearly perfect pass
FC Astana celebrate their victory over APOEL of Cyprus.
from Dzholchiyev, all hope disappeared. APOEL had to score two
more goals to beat out Astana’s
away goal, as per UEFA regulations.
“This is a very big win for
Astana and for all football fans
in Kazakhstan,” UEFA.com cited
Stanimir Stoilov, Astana coach.
“We are all celebrating and there
is a feeling of great joy. I have to
be first to congratulate my players
on this great achievement as well
as our fans, my coaching staff and
everyone associated with the club.
This achievement caps a great effort by my players. We will try our
best in the group stage and I think
we can get some points. But it will
be difficult. We will enjoy the ex-
perience and we are certainly looking forward to it.”
“We had a lot of chances but
when you cannot score and you
concede, a result like this happens,”
Domingos Paciência, APOEL
coach said. “We played against a
defensive team and we didn’t take
our opportunities. I cannot fault
my players, they did their best.
Disappointments like this occur
when you don’t take your chances.
I knew how important reaching
the Champions League was to this
club. We had a bad 20 minutes and
that was enough to see us exit the
Champions League. Astana plays
a simple game but they managed
to score against us at home and
away.”
In a draw held Aug. 27, FC Astana was placed in Group C along
with Benfica from Portugal, Atlético from Spain and Galatasaray
from Turkey. Their first game in
the group stage will be against
Benfica in Lisbon on Sept. 15.
Photo: Getty.
FC Astana Progresses to UEFA Champions
League Group Stage for First Time
Olga Rypakova (L) celebrates her bronze in the Women’s Triple Jump at the
World Athletics Championship in Beijing.
By Dmitry Lee
ASTANA – Kazakhstan’s Olga
Rypakova took the bronze medal
in the triple jump at the World
Championships in Athletics in Beijing on Aug. 24.
The championships ran from
Aug. 22 until Aug. 30 and were
attended by 1,933 athletes from
206 countries and included some
47 events. One hundred and fortyfour medals were up for grabs,
but only one, the bronze, was won
among Kazakhstan’s 10 participating athletes.
London 2012 Olympic champion Rypakova finished behind
Caterine Ibargüen of Colombia
and Hanna Knyazyeva-Minenko
of Israel. Ibargüen finished with
14.90 metres, Knyazyeva-Minenko 14.78 metres and Rypakova’s
result was 14.77 metres.
For the first time, Kenya came
out on top of the total medals tally
with seven gold, six silver and
three bronze. Jamaica, with the
help of Usain Bolt who brought
his country three gold medals
alone, finished second overall
with seven gold, two silver and
three bronze medals. The United
States finished third with six gold,
six silver and six bronze medals
in total.
B8
Nation&Capital
capital
ASTANA – Akmola Car Repair
Plant is the only one of its kind in
Kazakhstan. Despite the fact that
the plant successfully operated
during the Soviet Union decades,
it began to develop in the 1990s
along with the young state. Today,
it is a private joint stock company
with 340 employees furnishing
unique services in the nation’s territory.
The facility was established in
1941, just before the beginning
of WWII. Designed to fix 4,000
freight cars annually, it handles repair work on nearly 7,000 cars per
year. Astana is a major transport
hub, connecting the economies of
the south and central parts of Kazakhstan, Western part of Siberia
and the Volga region. The great
number of freight cars used in this
area guarantees a high level of demand for the plant’s services.
Company employees are very
proud of its success, because instead of collapsing in the 1990s
like many other former Soviet Un-
ion plants and factories, the facility developed, saved highly-qualified personnel and offered more
and more services. Such operation
is possible due to the main factors
of competent management and
real demand in the market. The latter is based on standards and rules
which specify that every freight
car must be repaired within in a
given time and a definite number
of kilometres travelled. If the car
is not repaired in an appropriate
manner, it is prohibited from use.
The period of time and number of
kilometres vary for different types
of freight cars.
The cars have an operational life
of 22 – 32 years, which is rather
short for such durable items. As a
result, the plant made the decision
to start handling the cars’ complete
overhaul, which enables prolonging their life an additional 50 percent.
The work is complicated for
the company and requires special
equipment. It is very profitable for
some small freight car companies,
however, because they can use
overhauled cars for many years
instead of buying expensive new
ones.
Kazakhstan Temir Zholy is the
biggest owner of freight cars in
the state and doesn’t have a choiсe
whether to overhaul old cars or
buy new ones, because it is impossible to buy such a large number of
cars for several reasons.
Such
successful
operation
doesn’t mean the plant is without
problems. Kazakhstan Temir Zholy upgrades its own repair depots
and strives to use them to handle
the work. The economic situation
in the 1990s and 2000s affected the
company, because traffic volumes
sufficiently decreased and demand
for repairs was very low.
The plant did not have the monetary funds to pay salaries and
some of its employees were not
compensated for years. It did the
best, however, to save qualified
staff and struggled for its own existence, developing, buying new
equipment and offering new services in the good years.
The company is currently cer-
Photo: MadeinKazakhstan.biz
Akmola Car Repair Plant an Example of Kazakh
Industrial Success
tified according to International
Organization for Standardization
(ISO) standards and tries to attract
clients from neighbouring states.
Akmola Car Repair Plant has
own laboratory necessary for non-
destructive testing and a trapdoor
production department.
In addition to freight car repairs,
the facility has a gas production
workshop which produces nitrogen and oxygen for Astana. The
workshop is the only one in the
capital and the quality of gases
is so good they are purchased by
hospitals. Such non-core activity is
profitable and very useful for the
city.
Astana Street Musicians Perform for People, Fun and Money
“It is often very disturbing when
those guys approach to threaten us,
because that is what they usually
do,” he stressed.
Another problem is street police
officers who often remove musicians under a law that impedes
begging.
“They don’t understand that we
are not here to beg; they are restricting our freedom of expressing
our art and sharing it with people.
Beggars are those who put their
hands forward and beg you to give
them money. How is expressing
your feelings through performing
outdoors begging?” Dmitry argued.
sang popular hits in English.
“Any time is good to busk if you
are in a good mood and ready to
sing. A lot of old and young people
and children stop to listen. Once,
even foreigners stopped to talk and
sing along and play,” she said.
On average, Elizaveta can earn
2,000-4,000 tenge per day (US$8$16), but not more. She said it depends on how people pass by and
react.
“My mother knows how I can
busk with luck, even though it is
Astana, and she is okay with it,”
said the street musician.
In her opinion, the way a busker presents him or herself affects
what people will think about buskers in general.
LI: “If you are artistic and creative,
people will like you more than
if you are dull. What I like the most
about busking in Astana is there
are a lot of artistic people here;
they start gathering out of somewhere
when I perform.”
His busker friend Elizaveta Li is
a talented guitar player who used
to perform for donations.
“We were short on money, as I
have been living here without my
father and my mother and couldn’t
cope on my own,” Li told The
Astana Times. “I like music and
express myself through it, so it is
a pleasure and benefit at the same
time.”
She started performing when
she was four years old and professionally from the age of 14-15. Li
was invited to play in many of the
city’s concerts during that time,
accompanying on guitar as she
“If you are artistic and creative,
people will like you more than if
you are dull. What I like the most
about busking in Astana is there
are a lot of artistic people here;
they start gathering out of somewhere when I perform,” she said.
Vilgelm Kovtunov busks with
his band regardless of whether
people like them or give them
money.
“Busking is fun for us; besides,
we get to practice playing music
and get a little money for it,” he
said.
Kovtunov believes their busking
can make people who like to hear
Guitar players busking in an underground crossing.
the band performing even happier
and impart some positive energy
into the lives of those passing by.
“Everyone has a different taste
in music, so how people react to
our performing depends on them.
Some treat us like beggars and
give money because of pity,” the
busker said. “How much we earn
per day depends on whether people like how we play, but money
is not our first goal; giving good
mood to ourselves and people is.”
Spartak Ensebayev is perhaps
one of the most talented and busy
buskers in the city. People often
respond well to his performances
and feedback is mostly positive
and even respectful. He plays saxophone on his portable boom box
as the background for Russian and
Kazakh language folk songs.
Ensebayev earns quite a bit for
a street busker compared to others performing solo or in bands, as
his average donations per day ap-
proach 10,000 tenge (US$41.60).
“I work a lot to earn like that and
rarely can someone perform on a
street because it is not that easy,”
admitted the busker.
Ensebayev has been performing on streets for about 15 years,
but the outdoors is not his constant
venue, as he also plays in cafés and
restaurants and for banquets, weddings and parties. The saxophonist
also travels to Borovoe to perform.
“It’s impossible to be employed
permanently in restaurants because they attempt to vary artists
as often as possible, so that a customer does not get bored with the
same performer,” said Ensebayev.
“Therefore, it is hard for a musician to keep a stable job; you have
to move around and your legs earn
you the money.”
For those in the city, daily summer life includes seeing and hearing street artists and musicians. It
is a small but developing culture.

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