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A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO. 374 / FRIDAY, OCTOBER 03, 2014

Caspian States Reach Agreement on Key Issues at Russian Summit

Kazakhstan, Russian Presidents Launch Hydrocarbon Initiative

Also In The News

Regional Cooperation Key to Helping Afghanistan, Says Ambassador

Caspian States Reach Agreement on Key Issues at Russian Summit

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The presidents of the five Caspian states reached consensus on several areas of longstanding dispute, including an agreement on the conservation of marine resources, on their way to settling the legal status of the sea at the fourth Caspian Summit in Astrakhan, Russia, on Sept. 29.

The future convention on the legal status and the delimitation of the Caspian Sea was among the important questions on the agenda at the summit. Talks on these issues have been ongoing for more than 15 years. Kazakhstan’s position on the legal status of the Caspian Sea is to apply certain provisions of the UN Convention on the Law of the Sea of 1982 relating to the width of the modes of different parts of the sea.

Presidents Ilham Aliyev of Azerbaijan, Hassan Rouhani of Iran, Nursultan Nazarbayev of Kazakhstan, Vladimir Putin of Russia and Gurbanguly Berdymukhamedov of Turkmenistan took part in the summit in the city on the Volga River, which feeds into the Caspian Sea.

Nazarbayev stressed the rapid growth of the Caspian region, and said that in light of its available energy resources and biological resources, the world is paying increasing attention to the area.

The uniqueness of the Caspian Sea includes its biological and ecological resources: it is home to more than 500 kinds of sea plants and 854 fish species, including the Caspian sturgeon, which accounts for 90 percent of the world’s stock of sturgeon fish.

The Caspian’s hydrocarbon resources have been estimated at roughly 18 billion tons, with proven reserves of 4 billion tons. This puts the sea in second place after the Persian Gulf in the rankings of the world’s biggest oil and gas reserves.

“Today’s summit has once again demonstrated the intention of the Caspian states to agree on all the tough questions. A number of important regional issues were discussed. We decided that the next such event will be held in Kazakhstan,” Nazarbayev said, describing the results of the meeting as a “breakthrough.”

Nazarbayev also reported on a number of initiatives launched during the summit, including Turkmenistan’s proposal regarding the formation of a permanent Caspian Economic Forum, as well as Kazakhstan’s initiative to create a Caspian Free Trade Area.

Presidents of the Caspian states during a symbolic release of sturgeon fingerlings into the Volga River

According to Putin, the convention on the legal status of the Caspian Sea may be signed in the near future.

“I will not say that all questions are fully resolved, but their number has significantly decreased. The experts were tasked with intensifying consultations on several remaining issues, so there is reason to believe that in the near future, we will come up to the signing of the convention,” Putin said.

All five presidents announced in their statement that they agreed to specific principles on which they would base their activities on the sea, including imposing the national sovereignty of each of the countries over a 15-mile area off their respective coasts and giving exclusive rights to each of the five parties to procure marine biological resources in 10-mile areas adjacent to the national sovereignty zones.

“I will not say that all questions are fully resolved, but their number has significantly decreased. The experts were

tasked with intensifying consultations on several remaining issues, so there is reason to believe that in the near future,

we will come up to the signing of the convention.”

- Russian President Vladimir Putin

They noted that, beyond those two zones, which make up 25-mile zones, the sea will be considered a common water zone. The presidents stressed, however, that the issue of determining specific methods to define the starting coast lines will be subject to further consultations.

The following agreements were signed as a result of the summit: an agreement on cooperation in hydrometeorology of the Caspian Sea, an agreement on cooperation in the prevention and resolution of emergency situations in the Caspian Sea and an agreement on the conservation and sustainable use of marine biological resources of the Caspian Sea.

In addition, a statement was signed by the presidents of Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan.

Kazakhstan, Russian Presidents Launch Hydrocarbon Initiative

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President of Kazakhstan Nursultan Nazarbayev met with Russian President Vladimir Putin at the 11th Interregional Cooperation Forum between Kazakhstan and Russia, which focused on innovation in the oil and gas industries. The event was attended by approximately 60 companies from Kazakhstan and Russia.

Speaking at the plenary session, President Nazarbayev stressed the importance of the oil and gas industry for the economy of Kazakhstan, which is ranked 12th in the world in oil reserves and is among the top 20 countries in terms of gas reserves. In this regard, Nazarbayev noted the importance of having modern trends shape the hydrocarbon sector.

“Since last year, the balance of oil consumption has shifted to emerging economies. For the first time in history, oil consumption in developing countries has exceeded consumption in OECD [Organisation for Economic Cooperation and Development] countries. The main trend of the last few years in the petroleum sector also has been the development of shale deposits. Modern technologies of horizontal drilling and hydraulic fracturing allow for production of both gas and oil,” said the President of Kazakhstan.

One of the most important topics discussed at the forum was the newly developed Eurasia project, which was launched in a symbolic ceremony by the heads of the two countries. The project will explore innovative approaches to hydrocarbon exploration. “The main objective of this project is the study of the deep geological structure and geochemistry of the earth’s crust in the Caspian region, obtaining a space-time model and resource estimate. The huge oil and gas potential of the Caspian Basin in Kazakhstan and Russia are of great interest among the major international oil companies,” Nazarbayev said.

“Since last year, the balance of oil consumption has shifted to emerging economies. For the first time in history, oil

consumption in developing countries has exceeded consumption in OECD [Organisation for Economic

Cooperation and Development] countries. The main trend of the last few years in the petroleum sector also has been the development of shale deposits. Modern

technologies of horizontal drilling and hydraulic fracturing allow for production of both gas and oil.”

-President of Kazakhstan Nursultan Nazarbayev

Presidents Nursultan Nazarbayev of Kazakhstan (right) and Vladimir Putin of Russia at the 11th Interregional Cooperation of Kazakhstan and Russia Forum in Atyrau

Energy is paramount in today’s global agenda, and the Caspian region is strategic in matters of oil and gas production for both Kazakhstan and Russia. Nazarbayev stressed that “now, more than ever, it is important to work together to protect ourselves from geopolitical threats, in particular, in the field of transporting gas.”

Other bilateral agreements signed at the forum included descriptions and extraction terms for the economic activities in the border area of the Vesenne-Aralchinsk copper-pyrite ore deposit and the use of radio spectrum in the Baikonur complex. Regional cooperation agreements on trade and economic, scientific and technical and cultural cooperation were also signed between the akim (governor) of Atyrau region and the government of Bashkortostan and the government of Tatarstan.

Forum participants also confirmed that Kazakhstan will build a nuclear power plant. The joint project will be implemented in the east of the country in Kurchatov. The joint project will be implemented in the east of the country in Kurchatov.

President Putin remarked, “Over the past 11 years, the economic ties between the two countries have reached a qualitatively new level. Bilateral trade increased more than six times. The volume of direct Russian investment in Kazakhstan increased by 10 times. These high dynamics are greatly facilitated by the interaction of investment in our economies.”

“Direct partnerships with all 14 regions of Kazakhstan have been established by the majority of Russian territorial entities,” he continued. “This has created more than 11,000 joint ventures. About 300 interregional agreements on cooperation have been signed. Russia and Kazakhstan have the longest land border in the world. Forty percent of bilateral trade is created by the regions along this border.”

Presentations were made by Russian Energy Minister Alexander Novak, Governor of Orenburg Yuriy Berg, President of Bashkortostan Rustem Hamitov, Minister of Energy of Kazakhstan Vladimir Shkolnik, Akim of Atyrau Baktykozha Izmukhambetov and Akim of Aktobe Arhimed Muhambetov.

The next Interregional Cooperation Forum will be held in 2015 in Ufa, Russia.

Regional Cooperation Key to Helping Afghanistan, Says Ambassador

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Kazakhstan’s ambassador to Afghanistan, Omirtai Bitimov, recently discussed with The Astana Times the situation in Afghanistan, Afghanistan-Kazakhstan cooperation and Afghanistan’s interactions with Central Asia and beyond.

“Afghanistan is going through a difficult transition period. Before the end of this year, the withdrawal of the main part of the International Security Assistance Force (ISAF) should be completed. The transmission of full responsibility for security from ISAF to Afghan authorities is continuing,” said Bitimov, 63, who served in Afghanistan during Soviet times and later directed Kazakhstan’s intelligence service.

Bitimov also pointed to a number of recent challenges facing the country, including problems with its presidential election, the complexity of the Sept. 21 agreement to create a government of national unity and the Afghan Independent Election Commission declaration of Dr. Ashraf Ghani Ahmadzai as president and Dr. Abdullah Abdullah as chief executive.

The Taliban movement, the Haqqani network, a faction of the Islamic Party of Afghanistan organised by Gulbuddin Hekmatyar (IPA-G) and Al-Qaeda also remain active in Afghanistan and Afghanistan’s economy remains dependent on foreign donors.

In terms of Kazakhstan-Afghanistan relations, the ambassador said bilateral ties go deeper than simply the humanitarian aid Kazakhstan provides, which includes the ongoing construction of a road, school and hospital. Kazakhstan also plans to provide $1.5 million for project development. Bitimov also noted a state programme to train 1,000 Afghan students in higher education institutions in Kazakhstan and that Afghan universities have expressed a desire to build partnerships with institutions such as the Al-Farabi Kazakh National University and the Asfendiyarov Kazakh National Medical University. A large number of higher and secondary educational institutions have been established in Afghanistan.

Business relationships have also been established between the countries thanks to the Kazakhstan-Afghanistan Intergovernmental Commission (IGC) on Trade and Economic Cooperation, Bitimov told The Astana Times.

Afghanistan’s extensive transit access to South Asian states make it a potentially important economic partner, one Kazakhstan would

Kazakhstan Ambassador to Afghanistan Omirtai Bitimov

like to see return to stability, he said. Astana’s support of the Istanbul Process is a practical step in cooperation development. A ministerial conference under the Istanbul Process was held in Almaty last year involving the Heart of Asia countries.

“We have evaluated the possibilities of Afghanistan as an important trade and economic partner. Its market holds great practical interest for us,” he said.

Bitimov also noted some positive developments, including the country’s first peaceful transfer of power, which has often in the past been achieved through force.

“Afghanistan and the international community are expecting positive changes with the election of a new president. It is predicted that this could radically change the situation in the country in terms of achieving social stability and economic recovery. In pre-election programmes, both Ashraf Ghani Ahmadzai and Abdullah Abdullah expressed a commitment to the continuation of democratic reforms, further development of the national economy, taking into account the country’s rich natural resources, preparation of qualified personnel and opportunities for regional and international cooperation,” he said.

Bitimov added that the new president will need to employ a delicate interethnic policy in order to meet the needs of all ethnic groups and that Kazakhstan’s experience in doing so can aid the new Afghan president.

Militarily, Bitimov said the Afghan people see the ongoing presence of U.S. troops as the guarantor of preserving internal stability in the country and the avoidance of another civil war, as well as subsequent progress in the social and economic development of the state, adding that many Afghans work on foreign military bases.

Bitimov also said it would be impossible to solve the region’s drug trafficking problem without cooperation among neighbouring countries. He believes it would be appropriate for the law enforcement agencies and the special services of the Central Asian countries and Afghanistan to cooperate on that issue and that the confidence-building measures group within the Istanbul Process on Afghanistan is also a useful tool in promoting cooperation in the fight against drug trafficking.

Also In The News... • SenateelectionswereheldinKazakhstan

Senate elections were held in Kazakhstan on Oct. 1. Thirty-nine candidates took part in the elections. The Kazakh Senate consists of 47 deputies: 15 appointed by the President and 32 elected by maslikhats, with two senators to represent each region, plus Astana and Almaty cities. Senate deputies are elected for a term of six years. (inform.kz)

• KazakhstantocelebrateQurbanAytholidayThis year, the three-day Islamic holiday of Qurban Ayt, or Eid al Adha, falls on Oct. 4-7. Qurban Ayt is a Muslim holiday that is celebrated with a sacrifice offered during a ceremony called qurban-shaly. Believers may sacrifice a sheep, cow, camel or other animal and distribute most of the meat to the needy. A correctly performed ceremony is believed to bring prosperity for the next year. Qurban Ayt is celebrated on the 70th day of the moon calendar, and the date changes yearly. The most important day of the Qurban Ayt holiday is the first day. On this day, believers invite each other to share meals and in mosques, mullahs offer up a holy prayer called ayt namaz. (zakon.kz)

• CICAculturalforumheldinAstanaStrengthening ethnic tolerance, scientific and expert cooperation and practical recommendations for preserving and increasing cultural diversity and intercultural dialogue within the the Conference on Interaction and Confidence-Building Measures in Asia (CICA) were discussed at the national and cultural forum, “Culture of peace, harmony and spirituality in the CICA,” on Sept. 30 at the Kazakh National University of Arts. Organised by the Assembly of the People of Kazakhstan and the Ministry of Culture and Sports of Kazakhstan, the forum was attended by prominent public figures, domestic and foreign scholars, members of parliament, representatives of the state bodies of Kazakhstan, diplomatic missions of the CICA member states in Kazakhstan, youth organisations and others. A resolution with recommendations on improving work on interethnic and intercultural dialogue within CICA and creating unifying platforms and civil institutions for development cooperation was adopted at the end of the forum. (assembly.kz)

• Pavlodar,OmskadministrationssigncooperationagreementA delegation from Kazakhstan’s Pavlodar region headed by Akim (Governor) Kanat Bozumbayev recently visited Russia’s Omsk region and signed a protocol on cooperation between the Omsk government and the Pavlodar akimat (administration), while businesses signed other agreements. Over the two days of work, the delegation from Kazakhstan, which included representatives from the business community, visited industrial and agricultural enterprises, met with Omsk entrepreneurs and signed multimillion-dollar contracts. The negotiations and exchange of contracts between companies were attended by representatives of about 100 enterprises from both sides. As a result of the contracts, Pavlodar businesses will supply Omsk with coal, power, control and telephone cables and energy-saving (LED) lamps. Pavlodar farms and trading companies also discussed supplying vegetables, meat and dairy products, wheat and flour with Omsk buyers. Omsk manufacturers offered products in the food and processing industry, agricultural machinery and accounting equipment for the energy sector. Increasing the cargo flow through the Irtysh River and developing the transit potential of the two countries were also discussed. (astanatimes.com)

• Kazakhstan’sinvestmentpotentialpresentedinLebanonThe recent Kazakh-Lebanese business forum, ‘Factors of attractiveness of Kazakhstan’s investment climate,’ attracted more than 60 representatives of Lebanese business circles, including those from light industry and engineering, to the event in Beirut. Charge d’affaires ad interim of Kazakhstan in Lebanon Daulet Yemberdiyev briefed attendees on new incentives the government of Kazakhstan is offering foreign investors and other attractive aspects of the business climate and invited Lebanese businesses to take part in EXPO 2017 in Astana. The event was organised with the participation of the Kazakh Diplomatic Mission to Lebanon and the Kaznex Invest Agency. (inform.kz)

• AstanaBalletdancetroupeperformsinMoscowThe Astana Ballet dance troupe performed the one-act ‘Alem Ballet’ at the Stanislavsky and Nemirovich-Danchenko Music Theatre in Moscow as part of its September European tour. ‘It is a delicate and careful synthesis of the current world trends and traditional motives of the Kazakh dance culture. Its peculiarity is, first of all, a combination of the Kazakh ethos and Kazakh culture,’ said Astana Ballet choreographer and director Nikita Dmitrievsky. According to him, the troupe’s tour has been a great success and positioned Kazakhstan as a country with great spiritual culture and rich traditions. (inform.kz)

• TextilesfromKazakhstanshowcasedatMoscowfairKazakhstan’s textile manufactures, with the assistance of Kaznex Invest, took part in Textillegprom 2014, also known as the Federal Trade Fair for Apparel and Textiles, in Moscow. This is the largest specialised international fair offering opportunities to present products to countries in the Commonwealth of Independent States and beyond. Four companies represented Kazakhstan this year: Kazlegprom Almaty, manufacturer of ready-to-wear clothes and shoes; KazSPO, makers of sportswear and ski-wear; Clotwell, producers of camel-hair quilt comforters, and Inspiration, producers of women’s socks and stockings. (inform.kz)

• ChessteamfromKazakhstanplacesthirdinWorldYouthChessChampionshipKazakhstan’s team took third place in the 2014 World Youth Chess Championship held in Durban, South Africa. Kazakhstan won two medals in the competition: Dinara Saduakasova won a gold medal in the under-18 category and Bibisara Assaubayeva won a silver medal in the same category. (inform.kz)

• Kazakhstan’skarateteamtakes20goldmedalsatWorldCupinPortugalKazakhstan’s shotokan karate team has returned to Astana after a successful performance at the World Championships (FSKA) in Almada, Portugal, from Sept. 26-28. “The championship was attended by teams from 20 countries. Athletes from Kazakhstan won about 20 gold medals and even more silver and bronze medals. Our athletes met our expectations,” said team Coach Rauan Togyzbaev. According to him, the athletes from Kazakhstan demonstrated advanced technique and fighting and patriotic spirits. (inform.kz)

• ViolinistfromKazakhstanawardedRudolfoLipizerPrizelMeruert Karmenova of Pavlodar was awarded the Rudolfo Lipizer Prize at the 33rd Rudolfo Lipizer Prize violin competition in Italy in early September. The competition brought together gifted violinists from 17 countries. Only six, including Meruert, reached the semifinals. Following the results of the final, Meruert was awarded the fourth-degree Rudolfo Lipizer Prize and other special prizes, including for being the youngest finalist. (inform.kz)

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