A bi-weekly online publication of the Ministry of Foreign Affairs of the Republic of Kazakhstan www.mfa.kz Issue # 66 Friday, 4 June 2010 [PDF]

New Monument in Astana Celebrates Founders of Kazakh Nation

(President honors Kerey and Zhanibek, first rulers of Kazakh khanate)

Kazakhstan Creates Favourable Investment Climate

(The 4th Kazakhstan Investment Summit convened in Almaty)

Kazakhstan Seeks to Expand Gold Production

(Nazarbayev launches new “Altyntau” MPC)

Nationwide Campaign Promotes Culture of Charity and Volunteerism

(Civil Alliance’s ‘We are One Team’ campaign grows around Kazakhstan)

President Nursultan Nazarbayev officially unveiled a new monument to Kerey and Zhanibek, the 15th century founders of the Kazakh Khanate that was the first state to bear the name of Kazakhs, in the center of Astana on June 1.

A 12-meter high sculpture depicting the two Kazakh khans stands on a plinth and symbolizes the start of a new life, independence and freedom. Kerey who initially wielded the most power is sitting on a horse saddle personifying stability and wisdom. A standing figure of Zhanibek embodies the dignity, bravery, and power. Renat Abenov, a young sculptor designed the impressive bronze monument weighing 16.2 tons.

The foundation of the first independent Kazakh state was laid in 1456 when several Turkophone tribes led by sultans Kerey and Zhanibek rebelled against the rule of Khan Abulkhair of what is known among historians as the State of Nomadic Uzbeks, and migrated from the region north of the Aral Sea into the area between rivers Chu and Talas. The latter was then ruled by Yessen Bugha, Khan of Moghulistan, who hoped to use the new arrivers as a buffer against the more powerful Abulkhair. His plan, however, failed when nine years later, in 1465, at the foot of the Kozybasy mountain Kerey was declared the Khan of Kazakhs, and thus launched a centuries-old tradition of nationhood of Kazakhstan. The very name ‘Kazakhstan’ is translated from Persian as “The Kazakh land”. His nephew Zhanibek who stood along his uncle from the very beginning of this adventure, inherited the title in 1474.

The name of “Kazakh” itself came from the migration away from Abulkhair’s rule. The Turkic word pronounced as “Qazaq” described someone who “escaped to freedom”, preferred life of a free person in the steppe (the name of Russian and Ukrainian “Cossacks” comes from the same root) as opposed to being a subject to an authoritarian control, which in medieval Eurasia was mainly associated with a settled way of life in towns. The people who joined Kerey and Janibek favoured the word “Qazaq” gradually becoming accepted as the name of a new ethnic group by both themselves and their neighbours.

Due to decline in the 1480s and 1490s of Moghulistan and Khan Abulkhair’s state (whose elite led an invasion into the areas south of Syr Dariya river and the conquest of what then became Uzbekistan), and especially under the rule of Khans Qassym (1512-21) and Haqnazar (1538-1580), the Kazakhs expanded their rule to all related tribes occupying vast territories from Siberia in the north to Tashkent in the south, from the Altai mountains in the east to the Jaik (Ural) river in the west. The single Kazakh khanate existed until the early 18th century when it broke into three regional associations known as “zhuzes”, which were gradually incorporated, partly voluntarily, partly by force, into the Russian Empire from 1731 to 1865.

After laying flowers to the monument, President Nazarbayev congratulated hundreds of people who gathered in the park in front of the Presidential Museum to watch the opening ceremony.

“Today, we are paying tribute to the two great men, the founders of our nation. This monument is a symbol of our profound gratitude and appreciation of their gigantic contribution to the formation of a modern Kazakhstan. It is no coincidence that the monument is located in this square, for this is the very place where the heart of a new capital city Astana started beating in December 1997,” the President said, referring to the monument’s site next to the first presidential residence in the capital. The residence was later moved to the Akorda palace on the left bank of the Ishim river.

Nursultan Nazarbayev noted memorializing these legendary persons in the capital of Kazakhstan stemmed from the desire to pay respect and preserve rich cultural and historical heritage left by Kerey and Zhanibek for the entire Kazakh nation.

President Nazarbayev also said he attaches particular importance to Astana having historical monuments that would remind its residents of Kazakh history, for the capital is considered to be a major bridging link between the nation’s past and its future. That is why there are quite a few historical monuments in Astana, including one to Kenessary Khan, a leader of the largest rebellion (1837-47) against the Russian Empire, who died in the struggle for the freedom of Kazakh people. Many streets are also named after the renowned Kazakh heroes of the past.

All of this, the President stressed, is to instill a feeling of patriotism and true love to the homeland, particularly among children and youngsters. The younger generation has a historical mission of developing the independent state as a reputable partner of the international community, the President said, adding that Kazakhstan has already started strengthening its sovereignty, economic development, and enhancement of international ties.

 The main condition for the nation’s further success has been and will remain to be the solidarity, friendship and unity of its people, Nazarbayev stressed.

Kazakhstan Creates Favourable Investment Climate

Cosponsored by Kazakhstan’s Foreign Investors Council and the International Herald Tribune the 4th Kazakhstan Investment Summit, which took place on June 3-4 in Almaty, provided an excellent opportunity for top policy makers and global business leaders to take stock of the status and prospects of Kazakhstan’s economy. The almost universal verdict: the country weathered the economic crisis well and, despite challenges, is again becoming a very attractive magnet for international investment.

Opening the forum with a welcome address, Kazakhstan’s President Nursultan Nazarbayev emphasized the special status of the event, where key members of the Kazakh Government as well as business and political leaders from the region, Asia, Europe and America exchange views on business and financial policies.

The Investment Summit was aimed at providing business leaders and investors from around the world with an up-to-date outlook on investment prospects and risks in Kazakhstan while the Kazakh side was mainly interested in discussing the way of getting the foreign investors involved in the implementation of industrial projects. During the summit the issue of creating legal framework for determining the competitiveness and long-term economic growth was touched upon as well.

Welcoming the summit participants, President Nazarbayev reminded that this forum was being held in anticipation of the 23^rd plenary meeting of  the Foreign Investors Council of Kazakhstan, and has already established itself as an important platform for exchange of information and strengthening contacts between Kazakh and international business community.

The President discussed the diversification of the Kazakh economy through the implementation of the State Program of Accelerated Industrial and Innovative Development ( PAIID).

He recalled that the government has developed the nation’s “Map of Industrialisation”, which includes more than 100 projects of national and regional significance amounting to more than US$ 45 billion.

To implement a new programme, Kazakhstan has identified 12 priority sectors of the economy for attracting investments, including metallurgy, oil refining and chemical industry, agriculture, engineering, construction industry, transport and telecommunications infrastructure, and a few others.

Nazarbayev said an important condition for success in implementing the industrial programme is to create a favourable climate for direct investments in Kazakhstan, particularly in non-extractive sectors of the economy.

“We urge foreign investors to expand their presence in our country by participating in the projects developed under the industrialisation programme. In this case, we will encourage those that apart from investing in constructing new facilities bring new technologies to our economy, train Kazakh specialists for new and innovative career”.

Kazakhstan attaches great importance to inviting foreign investments and remains one of the most attractive markets globally. During the last ten years Kazakhstan has ranked among the countries attracting the most investment per capita globally.

Since independence, Kazakhstan attracted US$ 108 billion in foreign direct investment. This is 80% of all foreign investments to the Central Asian region. Moreover, Kazakhstan was the first among the CIS countries receive international investment grade rating. Besides, the World Bank has included Kazakhstan in the 20 countries most attractive to foreign investors.

“Today, about 20,000 enterprises involving foreign capital operate in Kazakhstan, including more than 7,000 businesses in non-primary sector. Their prosperous activities are an indicator of the long-term, sustainable and stable development of Kazakhstan,” Nazarbayev stated.

The main criterion for evaluating the state’s prospects for investors is stability. This is readily available in Kazakhstan. Another important indicator is economic potential. In this context, the Central Asian nation has also done its best as the state has successfully overcome the effects of the global recession and ensured the growth of all major macroeconomic indicators. In Q1 2010, the Kazakh GDP grew 7.2%.

Also attending the summit, Prime Minister Karim Massimov of Kazakhstan held meetings with heads of major international companies, including “Royal Bank of Scotland”  the President of the European Bank for Reconstruction and Development (EBRD) Thomas Mirow.

A number of documents signed during the summit signals investors have recovered from the recent turmoil. In total, nine documents were signed between Kazakh authorities, companies and foreign enterprises. In particular, Kazakhstan’s Ministry of Industry and New Technologies and “Samsung C & T Corporation” and “Korea Electric Power Corporating” signed a memorandum on cooperation in the field of exploiting renewable energy sources. The EBRD and “Kazyna Capital Management” agreed on establishing Kazakhstan’s restructuring fund. The “KazMunaiGaz” national oil and gas company signed memoranda of understanding in the field of exploration on contract areas in Kazakhstan’s sector of the Caspian Sea with “Statoil ASA” and “Total E & P Activities Petroliers”.

“These contracts represent a new stage in implementing the program of industrial and innovation development,” Chairman of the Samruk Kazyna National Welfare Fund Kairat Kelimbetov claimed at a press conference during the event.

Kazakhstan Seeks to Expand Gold Production

Giving importance to the accelerated industrialization during the crisis promises high results with putting the majority of industrial projects into operation. One of them is JSC Vasilkovsky Mining and Processing Complex (MPC) which is now known as “Altyntau” MPC.

Built in two years in the Akmola region, a new gold-mining plant is now expected to propel Kazakhstan to become one of top gold mining countries in the world. Considering the Altyntau’s annual output of this precious metal of up to 15 tons, Kazakhstan’s gold is to become a serious player in the global market. On May 28, President Nursultan Nazarbayev took part at the opening and commissioning of the new plant.

 Following the opening ceremony, President Nazarbayev delivered a speech in which he stated: “It is the largest plant extracting and producing gold not only in our country but in the whole world as well, as with its full estimated capacity the complex will be producing 15 tons of gold per year. Kazakhstan has been producing more than 20 tons of gold, and today we produce 35 tons per year, which places us among the 15 largest gold mining countries in the world.”

With the flow of investment amounting to 700 million US dollars and the change of leadership the situation at the plant has changed dramatically in recent years. The construction of this complex began in 2008 and was completed in two years.

At JSC Vasilkovsky MPC, the President visited the opencast mine, checked out specialized equipment and the latest manufacturing technique.

“The factory is equipped with unique and perfect equipment, which includes more than 600 items, some of them are the best in the world in terms of characteristics and indicators. The equipment came from Canada, Australia, South Africa, USA, Bulgaria, Sweden, Finland, Germany, Italy and Russia,” President of JSC Vasilkovsky ore mining and processing complex Alydar Utemuratov stressed.

According to him, the major innovation in the industry is the refusal of the heap leaching in processing gold ore and introduction of combined sophisticated technology with traditional operations for gold extraction from ores: flotation, gravitation and cyanidation.

Utemuratov noted that as part of this project the company has completely replaced the main mining equipment with 67 pieces of modern equipment manufactured in the USA, Japan, Sweden, which cost more than 50 million US dollars.

Addressing the plant workers, President Nazarbayev noted that the launch of Vasilkovsky MPC is an important event not only for this ore-mining complex but also for Akmola region where it is located. The new plant has already employed more than two thousand people locally.

Today, industry accounts for 20 per cent of the gross regional product. In the course of new industrialization industry’s share in the region’s economy is expected to grow. Under the State program of accelerated industrial and innovative development of Kazakhstan, 12 facilities have already been built and 20 more are to be launched this year in the Akmola region. 

The Vasilkovsky mining and processing enterprise is one of the first projects implemented under the industrial and innovation program. This program will introduce 144 new enterprises this year and 72 of them are planned to be launched in the first half of the year. In addition, construction of another 47 facilities is about to be started. 

“Before 2014, we have to use 25 billion US dollars and build a huge number of enterprises, where more than 20,000 people will get employment,” Nazarbayev underlined.

“From the very beginning of implementing our project, we strived to prove Kazakhstan can create its own world-class gold producing complex,” Utemuratov proudly proclaimed.

Concluding the meeting President Nazarbayev suggested renaming Vasilkovsky “Altyntau” (a golden mountain).

JSC Vasilkovsky MPC, now Altyntau, is engaged in extracting and processing gold containing ores and operates since 1980. This enterprise develops Vasilkovskoe minefield with reserves of 360 tons of gold, which was discovered back in 1963. As far as gold deposits go, this one is considered unique.

Nationwide Campaign Promotes Culture of Charity and Volunteerism

“We are one team!”, a nationwide campaign launched by the Civil Alliance of Kazakhstan during the Day of Kazakhstan People’s Unity and the Victory Day celebrations in May, is gathering pace as more and more activities are held throughout the country involving a greater number of people and organizations.

The initiative calls on all citizens of Kazakhstan to pursue active social integration with a view of promoting and strengthening kind and friendly relations among the people of the country.

The Civil Alliance of Kazakhstan, uniting more than 500 nongovernmental organizations across the country, is looking for ways to resolve and facilitate social problems and challenges of the 21^st century. The movement encouraged close cooperation between Kazakh state bodies, nongovernmental organizations and business circles in organizing various events, including planting trees, visiting veterans and attending their needs, cleaning up or creating children’s playgrounds.

In West Kazakhstan and Zhambyl oblasts (regions), mini-football games competition havr been held involving more thana  hundred young footballers from the region’s child asylums, Zhas Orken social association and Grace club.

According to Sergey Dmitryuk, Director of the regional branch of “Special Olympics” Social Fund, the so-called inclusive sport destined to unite healthy youngsters and children with disabilities instils sympathy into the younger generation. This time children were inspired with the campaign’s motto and united into a true team while playing the game which turned the event into the feast of friendship and sport.

In Almaty, the activities continued with a “Heart’s Voice” festival organized through the efforts of the Marat Ospanov Social Fund on June 1. The key peculiarity of this festival, held for the second time this year, was the “Meyirim” hymn prepared as a little singers’ gift for the guests and invitees.

“Arranging similar festivals and master classes gives us a chance to recognise and nurture children’s talents, especially of those from specialized boarding houses and schools, making our children feel that we are, indeed, one team!” the Social Fund’s President Bakhyt Ospanova says.

In Astana, schoolchildren gathered in the park to discuss the future of Kazakhstan through presenting their essays on the subject. Boys and girls of different age and schools of the city enthusiastically and without false pathos spoke about patriotism and call of duty.

“All of us are the citizens of Kazakhstan; we are becoming older, smarter and more mature keeping abreast with our young capital Astana. We pose the same goals and objectives for the sake of our country’s prosperity and success,” one of the little participants said.

In line with the Civil Alliance’s initiative, the “Balam-ai” centre for children with disabilities was opened in Astana through the cooperation of business people and “Handicapped Children Community” social association.

The actions of the “We are one team!” campaign are held throughout the country and any volunteer may participate in a broad range of activities, choosing those of most interest. Numerous activities have already been held, meeting a positive feedback from the society in all parts of Kazakhstan, including the campaigns such as “Long memory of the Great War” and “Memory watch” in Almaty, “Planting a garden” in Vyacheslavka, “Mobile care” in Kyzylagash, “River patrol” in Astana, “Together we can do more” in Kokshetau, Kyzylorda and Taraz, and many others.

Alina Khamatdinova, Executive Director of Civil Alliance and coordinator of the nationwide movement says: “Our democracy concept is rather constructive. The main thing for us here is to make people be able to express their discontent with the services provided by local authorities and achieve appropriate changes in social and political frameworks. We are determined to improve ties and enlarge cooperation between the government and the people”.

The “We are one team!” campaign has already helped nongovernmental organizations in Kazakhstan involve thousands of citizens.

“Our goal is to develop the culture of charity in Kazakhstan, for this is an inalienable part of social accord and national unity. We are going to hold the NGOs National Conference in July this year with a view of elaborating the concept of civil society. The Civil Alliance of Kazakhstan is willing to mastermind new ideas, more advanced and modern directions and views enabling our country to develop faster. These are the key principles of our movement. We believe it is high time to realize these tasks today”, Khamatdinova notes.

Also in the News:

• On June 3, President Nazarbayev declined to sign a bill passed three weeks ago by the Parliament that would have bestowed upon him a title of a “Leader of the Nation” and offer him additional powers even after he leaves office. The parliamentarians proposed to confer the title and additional powers on the country’s first President, arguing that his outstanding contributions to founding and shaping the modern nation of Kazakhstan justified his special status. Nazarbayev thanked them and the people for trusting him with guiding the country in its historic path toward a free and affluent society, but said it was inappropriate for him to agree and accept the legal framework that would put himself and his relatives above the rest of the nation. In a special session called today, June 4, members of both Parliament said they regretted the President’s decision but fully respected it and chose not to seek to over-rule his veto.
• Kazakhstan will likely register a GDP growth of about four percent this year, the International Monetary Fund said on Thursday. IMF deputy director for the Middle East and Central Asia David Owen said despite the initial forecasts of 2.5% GDP increase in 2010, the last two quarters of 2009 revealed the state’s capabilities to overcome the financial hardships, with the economy expanding by 1.1%. “The dynamics of growth has sustained largely due to the fiscal and budget policy of the Kazakh government,” the IMF representative noted.
• The European Bank for Reconstruction and Development will enhance its support of Kazakhstan providing US$ 850 million toward implementing the country’s economic diversification program, EBRD President Thomas Mirov said during his meeting with President Nursultan Nazarbayev on June 3 in Almaty. Mirow also stressed the bank will continue supporting Kazakhstan’s initiative on modernizing and diversifying the country’s economy in the future as well. The parties also discussed the international economic situation and the prospects of developing relations between EBRD and Kazakhstan.
• Expansion works on the Caspian Pipeline Consortium, established in 1992 to build a 1.510 kilometer long pipeline for exporting Kazakh oil through Russia, will start in October 2010, Kazakh Minister of Oil and Gas Sauat Mynabyev said at the Fourth Kazakhstan Investment Summit in Almaty on Thursday. “This ensures the entire volume of output produced during the experimental phase of Kashagan with the export capacity in different directions,” Mynbayev noted.
• Kazatomprom National Atomic Company’s President Vladimir Shkolnik signed an agreement with Toshiba’s Corporate Senior Vice President Yasuharu Igarashi on creating a joint venture for research, extraction, development and production of rare earth metals on Thursday in Almaty. According to the agreement, a technical and economic assessment will be made within the next two years with a view of creating new high technology and science intensive plants in Kazakhstan. The large scale joint project will deal with research and production, focusing mainly on manufacturing beryllium products used in medical equipment, fusion reactors and various other facilities including the Large Hadron Collider. Kazatomprom holds 51% of the joint venture’s shares, while Toshiba has the remaining 49%.
• The Abay State Academic Opera and Ballet Theatre in Almaty hosts International Opera and Ballet Festival closing its 76^th season and offering four major performances, including “Swan Lake” and “The Queen of Spades” by Tchaikovsky, Adan’s “Giselle” and  “La Boheme” by Puccini. Theater’s Director Kuanysh Urazgaliyev says the worlds’ leading soloists from Russia, Ukraine, Germany, and Italy will perform on the stage along with the Kazakh stars during the festival days, which will last until Sunday’s closing Gala Concert. The festival is co-organized by JTI Kazakhstan Company, famous for its support of culture and arts in different countries of the world.

Things to Watch:

• On June 7-9, President Nazarbayev will attend the 3^rd Summit of the Conference for Interaction and Confidence-Building Measures in Asia.
• On June 9-11, President Nazarbayev participates in the Summit of leaders of the Shanghai Cooperation Organization in Tashkent, Uzbekistan, following which Kazakhstan takes chairmanship in the alliance.
• Hu Jintao, President of the People’s Republic of China, will visit Kazakhstan on June 11-12 following his participation in the SCO Summit.
• On June 10-11, OSCE Chairperson-in-Office, Kazakhstan’s State Secretary and Foreign Minister Kanat Saudabayev will attend the Conference on the 20^th anniversary of the Copenhagen Document cosponsored by Denmark and Kazakhstan.
• Astana Cycling Team announced the list of riders planning to participate in the Criterium du Dauphine Libere race, which includes Alberto Contador, David de la Fuente, Dimitriy Fofanov, Jesus Hernandez, Daniel Navarros, Benjamin Noval, Paolo Tiralongo, and Andrey Zeits. The race featuring a prologue, a couple of sprint stages, summit finishes and a time trial in a week, will take place on June 6-13 in Dophine in France.

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