The Statistics below are the latest published by the Govt. of Kazakhstan
Year
%age
2004
9.6
2005
9.5
2006
10.6
2007
8.5
2. Rate of Inflation (Consumer Price Index):
Year
%age
2004
6.7
2005
7.5
2006
8.4
2007
11
2008 (Jan-March)
2.5
Inflation Rate in 1st quarter of 2008 increased by 2.5%.
3. Total External trade of Kazakhstan to CIS and non-CIS countries
(In USD for January-March 2008)
2008 January-March
Share %age of trade
External Trade turnover
22,875
--
Exports
CIS countries
2,513
15.9
Non-CIS countries
13,266
84.1
Imports
CIS countries
3,479
49
Non-CIS countries
3,615
51
4. Foreign Trade of Kazakhstan (January to March, 2008)
Items
Jan-March 2008
Jan-March 2007
Growth rate%
Import
7,094
6,471
(+)9.62
Export
15,780
10,051
(+)56.99
Total Foreign Trade (in USD)
22,875 mln
16,523 mln
(+)38.44
Trade Balance (in USD)
6,686 mln
3,580 mln
***
5. Total trade and its growth to 10 major countries (in USD)
Country
January - March 2008(in million USD)
Share %age of total trade
Russia
4,132
18.1
Italy
2,887
12.6
Switzerland
2,484
10.9
China
2,121
9.3
France
1,444
6.3
Ukraine
885
3.9
Netherlands
793
3.5
Germany
747
3.3
Turkey
639
2.8
Iran
581
2.5
6. Principal ten Export destinations (in million USD)
Exports in USD for January-March 2008
Country
January - March 2008
Share %age of total trade
Italia
2,678
17.0
Switzerland
2,461
15.6
China
1,423
9.0
France
1,300
8.2
Russia
1,286
8.2
Netherlands
729
4.6
Iran
557
3.5
Ukraine
498
3.2
Israel
465
2.9
Turkey
449
2.8
7. Principal ten import sources of Kazakhstan
Imports in USD for January-March 2008
Country
January - March 2008(in million USD)
Share %age of total trade
Russia
2,845
40.1
China
697
9.8
Germany
505
7.1
Ukraine
387
5.5
USA
311
4.4
Japan
259
3.7
Italy
209
2.9
Turkey
190
2.7
France
144
2.0
Great Britain
111
1.6
8. The principal five export items from Kazakhstan to India for the period of January-March, 2008 (in thousands USD)
S.No.
Items
Jan-March, 2008
1.
Ignoble metals and its products
11354.7
2.
Mineral Products
3441.9
3.
Raw Leather and related raw products
440.0
4.
Products of Chemical and related industries
342.0
5.
Machinery, equipments & electronic equipments
38.2
9. The principal five items of import from India to Kazakhstan from January-March, 2008 (in thousands USD)
S.No.
Items
January-March, 2008
1.
Products of Chemical and related Industries
12,483.0
2.
Ignoble metals and its products
8,914.4
3.
Tea and Coffee
8,602.0
4.
Machinery, equipment, electronic equipments
6,039.7
5.
Tobacco
951.5
10. Bilateral Trade (India - Kazakhstan):
Overall trade with India has increased from USD 53.2 million (from January to March 2007) to 57.9 million (from January to March, 2008) resulting in an increase of 8.8% in total trade. Taking into consideration the period from January to March, 2008 in comparison with period from January to March, 2007, exports from Kazakhstan to India have increased by 42% (from USD 10.9 mln to 15.6 mln) whereas imports from India to Kazakhstan have increased by 0.18% (from 42.26 mln to 42.34 mln).
Particulars
2005
%change
2006
%change
2007
%Change
2008Jan-March
India'sImports
19.94
+88.47
59.68
+199.3
48.1
-19.4
15.6
India's Exports
100.94
+17.34
150.57
+49.17
147.75
-1.87
42.3
Total Trade
120.88
+25.13
210.25
+73.93
195.75
-6.90
57.9
11. High level visits/Intergovernmental Commission Meetings:
The year 2008 has been declared the Year of Ukraine in Kazakhstan. The President of Kazakhstan signed a decree to this effect with the aim of stepping up cooperation and strengthening relations between two countries.
US Senator Richard Lugar met with Foreign Minister of Kazakhstan on January 10 and discussed various aspects related to cooperation for implementation of Nunn-Lunar Cooperative Threat Reduction Program. He also hold meetings with at Kazakhstan's Ministries and departments on the issues related to cooperation in the field of energy sector.
Prime Minister Karim Masimov held several meetings in Georgia. He met with President and Prime Minister of Georgia and discussed developing relations between the two countries.
On the initiative of the Finnish chairmanship of the OSCE, Kazakhstan has become the head of the economic and environmental committee which is one of the organization's most important working bodies.
About 21 million dollars is required to be invested into the electricity generation, distribution and transmission sector in order to develop the electricity energy field until 2015. A list of power units which need to be reconstruct, modernized and expanded as well as new power units to be constructed, have already been identified.
National City Bank(USA) has granted a 30 million dollar loan to the Kazakh TsentrKredit Commercial Bank (TKB) for a period of 7 years with a two year grace period for principal payment.
The World Bank supported the Kazakh government in regulating financial markets and in the main areas of Kazakhstan's economic policy for 2008.
Kazakhstan and UAE has signed MOUs to jointly implement five breakthrough projects including construction of a thermoelectric power station, establishment of a mortgage bank, development of Aktau port and setting up an International Center for Transborder Cooperation in Khorgos town on Kazakh-Chinese border. The Kazakh national oil company KazMunayGaz and the Arabian International Petroleum Investment Company (IPIC from UAE) signed an Memorandum of Understanding for possible participation of IPIC in the project of the first integrated gas and chemical complex in the village of Karabatan in Atyrau Region.
The Kazakh Commercial Bank TuranAlem(BTA) and South Korean investment group Woori Bank have agreed on cooperation. The sides plan to establish strategic relations in the spheres of construction, capital operations and developing natural resources.
The Senate of Kazakhstan has approved a bill on ratifying an agreement between Kazakhstan and the Russian Federation on cooperation in establishing an economic society from the Orenburg gas processing plant.
The Prime Minister of Kazakhstan emphasized on 23rd January in an interview that Kazakhstan is interested to attract large Russian investors, above all, large Russian companies that willing to become strategic partners of the Kazakh government to further diversity the economy.
During his visit to China, Kazakh Senate Chairman met with Chinese President Hu Jintao on January 24 and discussed bilateral relations between two countries. Hu said that China and Kazakhstan relations had developed rapidly since they forged diplomatic ties 16 years ago and the leaders maintained close contacts and mutual understanding had increased.
Kazakhstan's Majhlilis (lower house) approved a draft law 'on the ratification of an agreement between the governments of Kazakhstan and Jordan on mutually encouraging and protecting investment'. The agreement envisages mutual efforts in creating the most favourable investment climate for bother countries' businessmen.
Kazakh President Nursultan Nazarbayev signed a bill 'on ratifying the agreement between Kazakhstan and the Russian Federation on cooperation in establishing a business entity, affiliated with the Orenburg gas processing plant.
In his annual state-of-the-nation address, Kazakh President described the oil and gas and power generation sectors as a basis for not only the development of the country's economy, but also for the growth of people's prosperity. He further instructed the government to deal with the issues related to the construction of the Beyneu-Shymkent major pipeline to provide Kazakhstan's southern regions with gas from deposits in the country's western regions. He also outlined the need to start the construction of its section of the Western Europe-Western China International Transport Corridor.
Kazakh Prime Minister has suspended all talks between Kazakhstan and investors on concluding new contracts in the sphere of the use of underground resources until a new Tax Code is adopted. He also added that contracts with subsoil users that are not fulfilling their obligations be cancelled.
French Prime Minister Francois Fillon during a meeting with Kazakh President on February 8 in Astana said that France attaches strategic importance to partnership with Kazakhstan and the aim of his visit was to deepen cooperation with Kazakhstan. A declaration of intent on strategic partnership between the governments was also signed between French Prime Minister and Kazakh Prime Minister. Apart from that a number of agreements were signed including international road cargo transportation, declaration of intent on cooperation in the field of tourism. A MoU between the Ust-Kamenogorsk Titanium and Magnesium plant (in east Kazakhstan region) and the EADS, Aubert & Duval and Arzor companies was also signed. The potential cost of MoU is about 1 billion dollars. French PM also met with the Speaker of Senate(Upper House of Kazakhstan) Kasymzhomart Tokayev and discussed the issues of cooperation between Central Asian states and the EU member countries.
US Assistant Secretary of State for South and Central Asia Richard Boucher met with President and Foreign Minister of Kazakhstan on February 11 and discussed wide range of issues related to events in the region, further development of relations between the two countries particularly in the field of economic spheres, expanding exchange programme, development of energy sectors. US Asstt. Secretary vowed to support for Kazakhstan's 'Road to Europe' programme.
Foreign Ministers Marat Tazhin and Ednan Karabayev of Kazakhstan and Krygyzstan discussed prospects for bilateral cooperation in Astana on 18th February especially in the field of implementing agreements reached between two countries. Foreign Minister of Kyrgyzstan also met with Prime Minister of Kazakhstan and discussed plans for developing trade and economic cooperation between two countries.
Ukrainian President Viktor Yushchenko visited Kazakhstan on 5-6 March. During official talks with President of Kazakhstan, two sides discussed various issues related to bilateral relations, including the economic and humanitarian spheres, energy sector as well as the international situation.
Emir of Qatar, Shaykh Hamad Bin-Khalifah Al Thani met with President of Kazakhstan, Nursultan Nazabayev on March 4. Kazakh president said that they are interested in developing bilateral cooperation further and hope to raise it to a higher level. A MoU was signed between the Kazyna sustainable development fund and Qatari investment fund on creating a joint investment fund. Bother sides also signed an agreement on cooperation in the field of standardization, metrology and certification.
12. Energy Sector:
The row over Kashagan project has been solved amicably. The share of KazMunayGaz (Kazakh National Oil and Gas company) has increased to 16.81 percent. An agreement has been reached that KazMunayGaz will buy shares from all existing participants in the consortium. Kazakh Minister for Energy and Mineral Resources Sauat Mynbayev hoped that industrial extraction at the Kashagan (oil) field will start in late 2011. The expenditure on the project would be 136 bn dollars. European Commissioner for Energy Andris Piebalgs also welcomed the fact that an agreement between the members of Kashagan consortium has been signed. The resolving of the issue will ease the situation on the world energy markets.
The most promising oil structures in the Kazakh part of Caspian Sea - a deposit named after the country's President, Nursultan will be developed by KazMunayGaz (national oil company KMG). An agreement to this effect has already been signed between Ministry of Energy and Mineral Resources and the company. The vice-president of KMG asserted that this project will be developed on its own without investors. The KMG intends to invest 40m dollars in implementing the first stage of the N project. Experts believe that the N deposit is more likely to be a gas rather than an oil deposit.
Oil processing in Kazakhstan will be increased by 500,000 tones in 2008. Dy. Minister for Energy informed that Kazakhstan is planning to increase oil processing upto 12.5m tones of oil. According to him, 2.8 m tones of petrol and 4 m tones of diesel will be produced this year.
The production of Uranium in Kazakhstan has reached upto 6,637 tonnes in comparison with 5,281 tonnes in 2006, showing an increase of 25.7 %. The production growth rate was 4.2% in 2007 compared to 2006. Kazatomprom (Kazakh Atomic Industry) aimed to increase the production of natural uranium up to 15,000 tonnes per year by 2010 and thus making Kazakhstan, the largest uranium producer in the world. It plans to produce 9,600 tonnes uranium in 2008.
13. India's Investment Interest and other news of interest to India:
On January 11, an explosion took place in the Abay mine belonging to the Arcelor Mittal Temirtau joint-stock company in Karaganda. Around 30 miners died in the accident. The company has announced that adequate compensation will be paid to the bereaved families. Emergency Situations Minister Vladimir Bozhko said that if company fails to meet industrial safety norms, its licence for extraction of minerals may be revoked. Minister also stated that the explosion at the coal mine occurred due to the fault of the coal department of the company and the employer is 10% to blame for this accident. He suggested several measures to improve work conditions and safety. Another coal mine owned by Arcelor Mittal has signed an agreement with the Management for higher salaries and better working conditions.
861 million US dollars railway project linking Korgas on the Chaina-Kazakhstan border with China's inland railways expected to be completed within this year which will extend westward to join the Sary-Ozek railway of Kazakhstan to become the second cross-border rail link between two countries.
The Kazakh Agency for State Regulation and Monitoring of the Financial Market and Financial Organizations has granted permission to the South Korean Shinhan Bank to open a subsidiary bank in Kazakhstan.
STS Media Inc. signed a final agreement on purchasing a majority stake in the Kazakh Channel 31 Television company on January 25. STS media will get 20% of shares and majority stakes in its affiliated companies that will be engaged in using advertising capacities of the channel and managing its programme contents.
World Bank and the Kazakh government signed agreements on allocation of credits totalling 173.9 million dollars to Kazakhstan to implement four projects i.e reforming and modernizing the health care system, the customs administration, as well as restoring environment and commercializing technologies. The total cost of four projects is 473 million dollars.
The Kaztransgaz joint-stock company has increased tariff rates for transit of Central Asian and Russian gas by the Gazprom open joint-stock company through Kazakhstan's territory. The new tariff has taken effect from 1st January and the tariff amounts to 1.4 dollars for transit of 1000 cu.m. of gas for 100 kms.
A framework for Kazakhstan to join the WTO was signed with Canada in Astana on February 13. Countries with whom Kazakhstan is yet to conclude negotiations on accession to WTO are USA, EU, Australia, India and Mangolia. In negotiations with Canada, Kazakhstan agreed to reduce customs duties on imports of aircraft, whisky and tobacco. In a further development, Kazakhstan may impose a duty on exports of crude and oil exports from 2009. Kazakh Energy Minister said that 40% of oil exports would be affected and this move could complicate Kazakhstan's bid to join the WTO in 2008.
Tax Committee of Kazakhstan announced that ArcelorMittal is to pay US$828 million in back taxes to the Government. arcelorMittal had appealed against this claim in the district court but the appeal was turned down by the court.
One person died and another was injured as a result of an accident at the ArcelorMittal Temirtau joint-stock campany's (Karaganda region) converter shop.
The KazMunaiGaz (Kazakh oil and gas) national joint-stock company and the Ministryof Energy and Mineral Resources signed a contract on the exploration of hydrocarbon reserves at the Zhambyl deposit. The reserves are estimated at 120m tonnes of hydrocarbon.
South Korean Electric Power Corporation (KEPCO) signed a MoU with Kazakh Electric Power Company for construction of a thermal power plant with a capacity of 240 MW in Astana at a cost of 500m dollars.
ArcelorMittal Termirtau has developed an investment programme for upgrading its mines in response to the findings of the government commission after the explosion at the Abai mine in January, 2008. This will cost USD350 million. The company will also introduce an international health and safety standard by the end of this year. ArcelorMittal will also contribute USD 10 million for social development projects in Karaganda region in 2008. This will include tution fees for meritorious school and college students as well as training Kazakhstan's Olympic team members for the Beijing games.
KazMunaiGaz (Kazakh oil & gas) acquired the production assets at Naftrans Ltd, which operates the oil terminal in Batumi, Georgia. Naftrans transports oil and oil products by rail from the Georgian-Azerbaijani border to the Batumi terminal and provides port services.
Kazakhstan confirmed that it would not limit grain exports following a deal with local producers and traders to ensure that at least 1.2 million tonnes of wheat are supplied to the domestic market at fixed prices. Kazakhstan expects a good harvesting of grains during 2008. Kazakhstan produced 20 million tonnes of wheat in 2007 as compared to 16.5 million tonnes in 2006.
Samgau, the Kazakh national scientific and technological holding company purchased 49.999% shares in Khabar media holding which include the Khabar TV channel. This will bring Khabhar media holding fully under the control of the Government which already owns 50.01% of Khabhar Joint Stock Company.
Tengizchevroil has entered into a contract to supply gas to the petrochemical conmplex in Atyrau region in West Kazakhstan. The company will supply 6-7 billion cubic metres of gas annually. The initial construction cost of USD5.2 billion is likely to go up on account of rise in prices of feedstock.
Kazakhstan Government has indicated its interest in acquiring a 15% minority stake in the copper producer Kazakhmys Plc in exchange for resource assets. This move is part of an effort by Kazakh government to create a national mining company by beginning to hold stakes in major firms operating in the country. This mining group is also expected to acquire a stake in the local unit of ArcelorMittal.
14. Visits taken place during 2008:
A three member team comprising Mr. R.S. Butola, MD, Mr. T.K. Dutta, Sr. Vice President and Mr. N.P. Singh, Vice President of ONGC Videsh Limited visited Astana on 31st January to 1st February, 2008 to discuss the mutually beneficial avenues of joint work in the field of hydrocarbon sector.
A six member delegation led by Dr. Arvind Pandalai, CMC from State Trading Corporation of India Ltd., New Delhi visited Astana from 7-9 February for finalization of Contract of wheat from Kazakhstan.
Mr. Olzhas Nokenov, General Manager, Alser Computers and Mr. Sultangazin Almas , President, Sulpak, Almaty attended Export Promotion Council's exhibition 'INDIASOFT 2008' at Hyderabad on 20th & 21st March, 2008.
Mrs. Kurmanova Svetlana, Director of Marketing, LLP 'Darni', Mr. Rodionov Vadim, Chief Engineer, LLP 'Kazakhmys Corporation and Mr. Zhdanov Andrey, Director, LLP Bortech' visited Ludhiana and Bangalore to attend at buyer-seller meet on 3rd and 6th March, 2008 organised by Engineering Export Council (EEPC).
The representatives of M/s Interagrotrade Ltd., Agromachholding JSC and M/s Danko Ltd. participated in CIS-Africa-India Agrifood Business Meet on February 21-22, 2008 organized by Federation of Indian Chambers of Commerce & Industry.
The representatives of M/s P.E. Chelyubeyeva and M/s LLP Duet participated in Chemical Meet 2008 (Reverse Buyer-Seller Meet) on March 28-30 at Mumbai organized by CHEMEXCIL, Mumbai.
Source: Commercial Section,
Embassy of India, Astana
