Monthly Archives: November 2007

07ASTANA3219, KAZAKHSTAN: MFA PROMISES TO CONSIDER U.S. POSITION

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Reference ID Created Released Classification Origin
07ASTANA3219 2007-11-30 07:29 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXYZ0000
RR RUEHWEB

DE RUEHTA #3219 3340729
ZNR UUUUU ZZH
R 300729Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1271
INFO RUCNDT/USMISSION USUN NEW YORK 1895

UNCLAS ASTANA 003219 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN (M. O'MARA) 
 
E.O. 12958: N/A 
TAGS: PREL UNGA KZ
SUBJECT: KAZAKHSTAN: MFA PROMISES TO CONSIDER U.S. POSITION 
ON ANTI-ISRAEL UNGA RESOLUTIONS 
 
REF: STATE 159386 
 
Poloff delivered reftel points to Almabek Demesinov, Head of 
the MFA's U.N. Section.  Demesinov promised to consider the 
U.S. position but offered no substantive comment. 
Milas

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07ASTANA3207, ADDITION TO KAZAKHSTAN TIP INTERIM ASSESSMENT REPORT FOR

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Reference ID Created Released Classification Origin
07ASTANA3207 2007-11-28 09:23 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO7662
OO RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #3207 3320923
ZNR UUUUU ZZH
O 280923Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1267
INFO RUEHAST/USOFFICE ALMATY 0028
RUCNCIS/CIS COLLECTIVE 0320

UNCLAS ASTANA 003207 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR G (ACBLANK), G/TIP, SCA/CEN (O'MARA), SCA/RA, INL/AAE 
(BUHLER), DRL, PRM, USAID 
 
E.O. 12958: N/A 
TAGS: KCRM PHUM SOCI KCOR PGOV KZ
SUBJECT: ADDITION TO KAZAKHSTAN TIP INTERIM ASSESSMENT REPORT FOR 
2007 
 
REF: A) SECSTATE 147242 
 
 B) ASTANA 3162 
 
1. The following is an addition to the TIP Interim Assessment Report 
(reftel B).  The information was received from the GOK after the 
submission of retel B and is in response to reftel A. 
 
2. Victims of trafficking are protected under a GOK law on the 
protection of participants of the criminal process.  In 2007, the 
GOK spent a total of $5,393 under this law to assist 31 victims of 
trafficking.  These funds provided protection, housing, meals, and 
clothing.  Outside of Kazakhstan, victim assistance is provided by 
diplomatic and consular offices under a GOK law which provides 
financial assistance to citizens of Kazakhstan trafficked to foreign 
countries for exploitation and victims of disasters and criminal 
acts.  In 2007, a total of 28 citizens of Kazakhstan received 
financial assistance in the amount of $29,362. 
 
MILAS

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07ASTANA3206, KAZAKHSTAN: MINISTRY OF ENERGY EXPLAINS DELAYS ON

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Reference ID Created Released Classification Origin
07ASTANA3206 2007-11-28 06:07 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO7921
RR RUEHWEB
DE RUEHTA #3206 3320607
ZNR UUUUU ZZH
R 280607Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1266
INFO RHEBAAA/DEPT OF ENERGY WASHDC

UNCLAS ASTANA 003206 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR ISN, SCA/CEN (M. O'MARA), SCA/RA (A. 
CUMMINGS) 
DOE/NNSA FOR BIENIAWSKI/CUMMINS/KENNEDY 
 
E.O. 12958: N/A 
TAGS: PTER KGIC MCAP KNNP KZ
SUBJECT: KAZAKHSTAN: MINISTRY OF ENERGY EXPLAINS DELAYS ON 
BN-350 COMMUNIQUE, SPENT FUEL RETURN IMPLEMENTING AGREEMENT 
 
REF: ASTANA 1730 
 
1. (SBU) Summary: In a meeting with Poloff on November 21, 
Bakhit Shaikhislamova, Chief of the Ministry of Energy and 
Mineral Resources External Relations Office, stated that 
several government agencies oppose signing the Communique on 
BN-350 Spent Fuel Permanent Disposition.  As a result, 
Shaikhislamova expressed doubt that the Government of 
Kazakhstan will ever approve the communique.  She also told 
Poloff that Kazakhstan has prepared its own proposed 
Implementing Arrangement (IA) on the removal of 
Russian-origin HEU spent fuel in response to the Department 
of Energy proposal from 2004.  The draft IA has received 
interagency approval and now awaits the Ministry of Justice's 
blessing.  End Summary. 
 
2. (SBU)  On November 21, Poloff met with Bakhit 
Shaikhislamova, Chief of the Ministry of Energy and Mineral 
Resources (MEMR) External Relations Office, to discuss the 
status of the Communique on BN-350 Spent Fuel Permanent 
Disposition and of the Department of Energy's proposed 
implementing arrangement for the project to transport Russian 
origin HEU spent fuel from the Institute of Nuclear Physics 
(INP) to Russia.  The Ambassador had raised the same issues 
with Timur Zhantikin, Chairman of Kazakhstan's Atomic Energy 
Committee, on November 9.  Zhantikin had suggested the 
Embassy conta#t Shaikhislamova. Shaikhislamova told Poloff 
that several government agencies have refused to endorse the 
BN-350 Communique.  The Ministry of Justice believes the 
Communique on Permanent Disposition is in conflict with the 
Implementing Agreement on BN-350 Spent Fuel, because the time 
frame for the IA is only fifty years. 
 
3. (SBU) Kazatomprom and the Committee for National Security 
(KNB) also oppose the communique, according to Shaikislamova. 
 Both feel that all obligations under the current agreement 
should be fulfilled before permanent disposition is 
discussed.  Shaikislamova told Poloff that because of the 
lack of interagency consensus the Security Council is now 
reviewing the Communique.  When asked by Poloff if she 
foresees Kazakhstan ever signing the Communique, 
Shaikislamova admitted that she is skeptical. "Even in 
January," she said, "we saw problems with the Communique." 
 
4. (SBU) Turning to the Implementing Arrangement for 
activities at the INP, Shaikhislamova informed Poloff that 
Kazakhstan had reviewed the Department of Energy's proposed 
Agreement and found "the interests of the two countries not 
equal in the agreement." As a result, MEMR has drafted as a 
counterproposal a separate Implementing Arrangement.  The 
draft has already received interagency approval and now 
awaits only the Ministry of Justice's review.  MEMR is 
pushing for a response from the MOJ, which received the draft 
several months ago.  Shaikhislamova believes that the MOJ 
will approve MEMR's proposed IA. 
 
5. (SBU) Comment: Shaikhislamova's negative assessment of 
Kazakhstan's stance on the Communique on BN-350 Spent Fuel 
Permanent Disposition is a surprise after months of 
reassurances from MEMR that the Communique would ultimately 
be approved. Post will purr5e the issue further to gauge 
whether opposition to the Communique is as stiff as 
Shaikislamova indicated.  End Comment. 
Milas

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07ASTANA3188, KAZAKHSTAN”S APPROACH TO OSCE MINISTERIAL

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Reference ID Created Released Classification Origin
07ASTANA3188 2007-11-27 05:13 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXYZ0000
PP RUEHWEB

DE RUEHTA #3188 3310513
ZNY CCCCC ZZH
P 270513Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1255
INFO RUEHVEN/USMISSION USOSCE PRIORITY 1842

C O N F I D E N T I A L ASTANA 003188 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN M. O'MARA 
 
E.O. 12958: DECL: 11/26/2017 
TAGS: OSCE PREL PGOV PHUM KZ
SUBJECT: KAZAKHSTAN"S APPROACH TO OSCE MINISTERIAL 
DEPENDENT ON CHAIRMANSHIP QUESTION 
 
REF: STATE 157672 
 
Classified By: CHARGE KEVIN MILAS FOR REASONS 1.4 (B) AND (D) 
 
1. (C) Poloff delivered reftel demarche on November 21 to 
Chingiz Kaskeyev, Head of the MFA's OSCE Division.  Kaskeyev 
called U.S. aims for the OSCE Ministerial praiseworthy and 
said that some of the areas highlighted by Poloff, such as 
enhanced engagement with Afghanistan, counterterrorism, and 
combating trafficking, are also of great importance for 
Kazakhstan. 
 
2. (C) Kaskeyev emphasized, however, that the "depth of 
Kazakhstan's cooperation" is fully dependent on its bid to 
chair the OSCE.  "It will be difficult to talk of 
cooperation," he said, if Kazakhstan's bid is rejected.  If 
Kazakhstan is not awarded the chairmanship, he added, all of 
Central Asia will be less likely to actively participate in 
the OSCE.  "The consequences will be sad for the OSCE - 
Central Asia relationship." 
 
3. (C) Kaskeyev told Poloff that Kazakhstan has reservations 
about some aspects of ODIHR's work, but has never denied its 
importance. Kazakhstan believes that ODIHR has a key role to 
play and should be a main channel for cooperation in Central 
Asia.  "If we chair the OSCE, ODIHR will be our main 
partner," said Kaskeyev. 
 
4. (C) Kaskeyev also noted that Kazakhstan is a strong 
supporter of the CFE treaty.  Kazakhstan, he said, hopes that 
the Adapted CFE Treaty will be ratified as quickly as 
possible.  Kazakhstan has its own security concerns on the 
Caspian and believes that the CFE treaty helps to ensure that 
the region is better secured against new challenges, 
according to Kaskeyev. 
Milas

Wikileaks

07ASTANA3187, PM MASIMOV DISCUSSES PUBLIC PRIVATE ECONOMIC

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Reference ID Created Released Classification Origin
07ASTANA3187 2007-11-26 06:30 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO4981
PP RUEHDBU
DE RUEHTA #3187 3300630
ZNY CCCCC ZZH
P 260630Z NOV 07 ZDK
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1254
INFO RUCNCIS/CIS COLLECTIVE PRIORITY 0319

C O N F I D E N T I A L ASTANA 003187 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN M. O'MARA 
 
E.O. 12958: DECL: 11/26/2017 
TAGS: PREL ECON KNNP KZ AF
SUBJECT: PM MASIMOV DISCUSSES PUBLIC PRIVATE ECONOMIC 
PARTNERSHIP INITIATIVE, KASHAGAN, AFGHANISTAN WITH DAS 
FEIGENBAUM 
 
 
Classified By: POL/ECON CHIEF STEVE FAGIN FOR REASONS 1.4 (B) AND (D) 
 
1. (C) Summary:  During a November 20 meeting, Prime Minister 
Karim Masimov and SCA DAS Feigenbaum discussed the Public 
Private Economic Partnership Initiative (PPPI), Kashagan, 
Afghanistan, the Cooperative Threat Reduction Umbrella 
Agreement (CTR UA), and the Bota Foundation.  Masimov said he 
hoped to come to the U.S. in 2008 to inaugurate the PPPI.  He 
claimed the sides are closer together now on Kashagan.  He 
noted that Kazakhstan is increasing its assistance for 
Afghanistan.  He believed a solution would be found to renew 
the CTR UA in time.  He also asked that the USG move forward 
quickly on the Bota Foundation project.  End Summary. 
 
2. (C) Prime Minister Karim Masimov told visiting SCA Deputy 
Assistant Secretary Evan Feigenbaum during a November 20 
meeting that he would like to come to the United States in 
2008 for the inauguration of the U.S-Kazakhstan Public 
Private Economic Partnership Initiative (PPPI).  Feigenbaum 
stressed that it would be ideal if Masimov could come in 
January or February.  The earlier the PPPI was inaugurated 
the more sustainable it would be beyond 2008, he explained. 
Masimov promised to check his schedule and get back to 
Feigenbaum. 
 
3. (C) Deputy Industry and Trade Minister Zhanar Aitzhanova 
suggested trying to coordinate the PPPI inauguration with a 
signing ceremony for a bilateral agreement on Kazakhstan,s 
WTO accession.  She admitted that the two countries, WTO 
negotiators are still working to narrow differences on 
services, particular with respect to the financial sector, 
where Kazakhstan has requested a &transitional period.8 
Feigenbaum said that given the remaining differences, it 
might not be possible to finalize a WTO agreement in time to 
link a signing event with a PPPI inauguration. 
 
4. (C) Feigenbaum asked Masimov what would happen next 
regarding Kashagan.  Masimov claimed that the positions of 
the sides are closer together now, and there is still enough 
time to conclude the negotiations. 
 
5. (C) Masimov told Feigenbaum that he had met with Afghan 
First Vice President Ahmad Zia Masood on November 2 in 
Taskhent, on the margins of the SCO prime ministers meeting. 
The two sides had agreed that Kazakhstan would allocate 
additional assistance to Afghanistan, including for training 
for Afghan police officials in Karaganda, Kazakhstan. 
Feigenbaum, noting that Foreign Minister Tazhin had discussed 
possible road-building projects with Secretary Rice in May, 
said that additional assistance to Afghanistan for 
road-building would be particularly welcome, since roads 
assist the Afghan government in extending its authority into 
the provinces. Masimov said he will make his first official 
visit to Afghanistan during the Spring of 2008. 
 
6. (C) Feigenbaum told Masimov that the &clock is ticking8 
on the renewal of the bilateral Umbrella Agreement (UA) for 
Cooperation Threat Reduction (CTR) programs.   It would send 
a very negative symbol if the USG were forced to suspend the 
CTR programs rO*QPqawyers are still working out the necessary waivers 
for the U.S. Ambassador to serve on the board of the Bota 
Foundation, and are still in the process of reviewing 
Kazakhstan,s nominees for the board.  Masimov requested that 
the USG complete these steps by the end of 2007. 
 
8. (U) Deputy Assistant Secretary Feigenbaum has cleared this 
cable. 
Milas

Wikileaks

07ASTANA3186, EXBS KAZAKHSTAN ADVISOR’S MONTHLY REPORTING CABLE

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Reference ID Created Released Classification Origin
07ASTANA3186 2007-11-26 05:20 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO4907
RR RUEHAST RUEHDBU
DE RUEHTA #3186/01 3300520
ZNR UUUUU ZZH
R 260520Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1251
RUEAORC/US CUSTOMS SERVICE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RULSJGA/COMDT COGARD WASHINGTON DC
RHMFIUU/US CUSTOMS AND BORDER WASHINGTON DC
RUEKJCS/SECDEF WASHDC 0066
RHEBAAA/USDOE WASHDC
RUEKJCS/JCS WASHDC
RUCQAAA/USCINCCENT MACDILL AFB FL
RUEHRL/AMEMBASSY BERLIN 0447
RUEHEK/AMEMBASSY BISHKEK 8208
RUEHNT/AMEMBASSY TASHKENT 8095
RUEHKB/AMEMBASSY BAKU 0020
RUEHDBU/AMEMBASSY DUSHANBE 2303
RUEHAH/AMEMBASSY ASHGABAT 7267
RUEHAST/USOFFICE ALMATY 0019

UNCLAS SECTION 01 OF 03 ASTANA 003186 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR ISN/ECC PVANSON, ACHURCH, JHARTSHORN 
DEPT FOR ISN/ECC-AMT LSPRINGER 
DEPT FOR EUR/ACE RBUCK 
DEPT FOR SCA/RA JSCHLOSSER 
DEPT FOR SCA/CEN M. O'MARA 
CBP/INA FOR CDONOFRIO AND RWATT 
USDOE/NNSA CWALKER, TPERRY AND EDESCHLER 
DOC FOR DCREED AND GPETERSEN-BEARD 
USCG FOR BGOLDEN 
AMEMBASSY BERLIN FOR CUSTOMS ATTACHE 
AMEMBASSY TASHKENT, BISHKEK, BAKU, DUSHANBE AND ASHGABAT FOR EXBS 
ADVISORS 
 
E.O. 12958: N/A 
TAGS: ETTC MNUC PARM PREL KSTC KNNP KZ
SUBJECT: EXBS KAZAKHSTAN ADVISOR'S MONTHLY REPORTING CABLE 
(SEPTEMBER-NOVEMBER 2007) 
 
I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS: 
 
1. Permanent EXBS Advisor Robert Colbert arrived at post on October 
4, 2007. 
 
II. COMPLETED ACTIONS FOR THE REPORTING PERIOD 
 
A. SITE ASSESSMENTS AND MEETINGS CONDUCTED 
 
      1. Task Order 79 Donation.  Four modular shelters were 
delivered to the Kazakhstan Border Guards military base 2029 in 
Uralsk. 
      - On September 9, 2007 - EXBS Program Manager Gulnara 
Abildaeva traveled to Uralsk to meet the trucks transporting the 
modular shelters and to get customs clearance.  The shipment was 
cleared by Kazakhstan customs and transported to the Chingirlau and 
Zhaik Border Guard Posts on September 15, 2007. 
      - On October 15, 2007 - EXBS Program Manager Gulnara Abildaeva 
traveled to the Chingirlau and Zhaik Border Guard Posts to inspect, 
accept, and transfer the four installed modular shelters to the 
Border Guards.  The Border Guards were represented by Colonel 
Budeneyev, the Deputy Director of the Border Guard Service and 
Head/Commander of Border Control Department of the Main Staff of the 
Border Guards Service in Astana; Lt.Colonel Magzhanov, Chief of 
Headquarters, Border Control Division of the Northern Region; Lt. 
Colonel Sokoryan, the Commandant and Chief of the Border Guards 
Division in the Uralsk Region; and Major Aidos Aliyev, Commander of 
the Border Guards unit #2029 in Uralsk. Ray Bloch (LATA), Alisher 
Nurumbetov (LATA), and Subru Nair (TFI) also traveled to the sites 
to inspect and accept the shelters. 
The portable shelters met all the specifications of Task Order 79 
and were accepted by the Kazakhstani Border Guards. 
 
 
      2. EXBS Maritime Advisor visit. 
      On September 25, 2007, EXBS Caspian Regional Maritime Advisor 
Michael Fisher, EXBS Baku Program Manager Tarlan Gahramanova, and 
EXBS Kazakhstan Program Manager Gulnara Abildaeva attended a meeting 
with Maritime Brigade Captains Ashimbayev and Smagulov in Aktau. The 
two sides discussed issues related to the maintenance and painting 
of the hulls of the three patrol boats, donated by EXBS in May of 
2006. The Border Guards were told that it would cost 45,000 USD to 
paint the boats.  Because of the cost, Captain Ashimbayev agreed 
that the Border Guards would paint the vessels themselves.  EXBS may 
have to pay for crane rental or renting of boat cradles. 
      - On September 26, 2007 - EXBS Maritime Advisor Michael 
Fisher, EXBS Baku Program Manager Tarlan Gahramanova, and EXBS 
Astana Program Manager Gulnara Abildaeva traveled to Bautino. The 
EXBS team learned that two of the patrol boats are in need of 
tweaking to get the engines operating at their max capacity.  EXBS 
Baku will provide the Border Guards with more detailed technical 
manuals so they will be able to perform a computer-assisted engine 
diagnosis.  The third patrol boat was out of the water. This boat 
has been non-operational since October of 2006 and has had numerous 
problems. 
      - On September 27, 2007 - EXBS Maritime Advisor Michael 
Fisher, EXBS Baku Program Manager Tarlan Gahramanova, EXBS 
Kazakhstan Program Manager Gulnara Abildaeva, and EXBS Program 
Assistant Oxana Limareva attended a meeting with Captain 
Nurakhmetov, Colonel Vishnyakov, and Major Kapizov in Astana. At the 
meeting, the EXBS team described the proposed Four-Week Safe Boat 
Course taught by the U.S. Coast Guards and emphasized its 
 
ASTANA 00003186  002 OF 003 
 
 
importance.  Possible dates for the training still need to be 
determined. During the meeting, the EXBS team delivered the spare 
parts required to fix one of the Safe Boats. 
 
 
B.  TRAINING DURING THE REPORTING PERIOD 
 
1.  No training was delivered during this period. 
 
C. EQUIPMENT DELIVERED DURING THE REPORTING PERIOD 
 
1. Modular Shelters donation. (See above) 
2. Spare parts for the safe boats
 donation. (See above) 
 
D. IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE 
 
      1. Task Order 79 Donations.  Delivery of the original water 
tanks for the four modular shelters donated to the Border Guards was 
delayed due to difficulties encountered in the Customs clearance 
process created by a change in the Kazakhstani law which required 
the submission of the Shipper's Exportation Declaration (SED) for 
all shipments arriving in Kazakhstan.  Because of this delay, LATA 
acquired additional water tanks locally so that the installation of 
the four modular shelters would be completed on schedule. 
 The U.S. Embassy and the foreign diplomatic community raised the 
issue of the SED with the Government of Kazakhstan.  There were 
several high-level meetings where the U.S. Embassy requested a 
waiver for the SED requirement.  The issue was resolved after the 
Customs Control Committee issued a letter dated October 20, 2007 
waiving the requirement to provide SED for goods from the U.S. 
 The EXBS office applied to the Ministry of Economy and Budget 
Planning to approve the release of the water tanks from the Almaty 
airport warehouse without a warehouse storage fee. The official 
letter from the Vice Minister, Ministry of Economic and Budget 
Planning, approving the release of the water tanks from the Almaty 
airport warehouse without a warehouse storage fee was passed on to 
the Customs Control Committee on November 19. 
 
      2. Department of Energy Second Line of Defense (DOE/SLD) 
continues with its project to install portal monitors at border 
sites.  A diplomatic note was sent to the Ministry of Foreign 
Affairs requesting its assistance in gaining access to the following 
Phase One sites:  Kordai, Karasu, Sapytai Batyr, Kazgurt, Zhibek 
Zholy, Kaplanbek, and Sary-Agash. 
      The EXBS office also assisted DOE/SLD in requesting permission 
from the Ministry of Foreign Affairs for DOE's experts to conduct 
engineering surveys and radiation detection monitor systems 
installation design reviews from October 31 to November 10, 2007, at 
5 selected sites along the western border of Kazakhstan: Aktau 
seaport, Atyrau and Aktau airports, and the Border Crossings at 
Kurmangazy and Temirbaba. 
      - October 31 to November 9, 2007 - EXBS Advisor Robert Colbert 
and EXBS Program Manager Gulnara Abildaeva traveled with the SLD 
delegation consisting of Mr. Glen Mitchell (Ahtna Government 
Services), Mr. Dave Olson  (Sandia U.S. National Laboratory), Mr. 
Andrai Belousov (Los Alamos U.S. National Laboratory, Mr. Davydov 
(Aspect), Mr. Alexandr Nazarenko (NTC). While the SLD team worked on 
engineering surveys, the EXBS Advisor conducted site assessments at 
the Aktau seaport, the Atyrau and Aktau airports, and the Kurmangazy 
and Temirbaba Border Crossing Points. 
 
      3. The EXBS advisor will meet with Customs and Border Guard 
 
 
*********************** 
* Missing Section 003 * 
***********************

Wikileaks

07ASTANA3182, CORRUPT POLICE OFFICIAL CHARGED WITH PROTECTING A

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Reference ID Created Released Classification Origin
07ASTANA3182 2007-11-23 13:39 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO3938
PP RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW
DE RUEHTA #3182/01 3271339
ZNR UUUUU ZZH
P 231339Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1245
INFO RUCNCLS/SCA COLLECTIVE
RUEHAST/USOFFICE ALMATY 0014

UNCLAS SECTION 01 OF 02 ASTANA 003182 
 
SIPDIS 
 
STATE FOR INL/AAE (BUHLER), G/TIP, SCA/CEN (O'MARA) 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SNAR SOCI KCRM KZ
SUBJECT: CORRUPT POLICE OFFICIAL CHARGED WITH PROTECTING A 
PROSTITUTION RING. 
 
 
ASTANA 00003182  001.2 OF 002 
 
 
------- 
SUMMARY 
------- 
 
1. A senior police official has been charged with abuse of his 
professional functions and falsifying evidence in connection with 
his facilitating the illegal business activities of an Almaty madam. 
 In March, the local newspaper Vremya began publishing a series of 
articles about the official and the madam. (Note: The following 
information comes exclusively from media reports and does not 
contain information received from the police or courts. End Note.) 
 
------------------------------- 
MAMA ROZA AND CAPTAIN MOROZOV 
------------------------------- 
 
2. Olga Kodonidi, known as Mama Roza, is a 45 year-old woman who 
started working in the commercial sex trade in 1997.  In the 
beginning, she had only a few girls in her brothel.  Over time she 
hired approximately 100 girls from the ages of 18 to 25 from 
Uzbekistan, Russia, Kyrgyzstan, Tajikistan, and Azerbaijan.  Her net 
income has been estimated at sixty thousand dollars per month and 
her assets are estimated at five million dollars. 
 
3. For his participation in Mama Roza's illegal business activities, 
Captain Igor Morozov, the former head of the anti-trafficking in 
persons unit of the Ministry of Interior (MVD), has been charged 
with abuse of his professional functions and falsifying evidence. He 
faces up to eight years in prison on the first charge and three to 
seven on the second one. Morozov was allegedly paid thousands of 
dollars to look after Madam Roza's prostitutes and brothels. 
 
4. In one incident in September 2006, Mama Roza asked Morozov to 
help her resolve a disagreement with the owner of the Alladdin 
sauna, who refused to allow Mama Roza's prostitutes to work in the 
sauna.  Mama Roza asked Morozov to arrest the owner, surname 
Zhuravleva, on a false pimping charge.  Morozov sent police to the 
sauna to "catch" Morozov's driver, playing the part of a client, 
with two of her prostitutes.  A criminal case was opened and 
Zhuravleva received a prison sentence in January.  A court recently 
overturned the sentence and freed Zhuravleva. 
 
5.  A criminal case against Morozov reached the courts only because 
the investigation of his activities was well planned and personally 
directed by the Minister of Interior.  The Minister dispatched a 
team from the Ministry's Department of Personal Security to Almaty 
to conduct the investigation.  Several senior police officers have 
been fired for their connections with criminal enterprises.  More 
than ten officers are under investigation for their connections to 
various criminal groups. 
 
----------------- 
MVD TAKING ACTION 
----------------- 
 
6. The MVD has taken a firm position in this matter.  The Minister 
of Interior stated that police officers who work for criminals or 
are corrupt will receive the most severe punishment.  At the same 
time, the police are taking active measures against pimps, brothel 
operators, and prostitutes.  Recently, they have arrested eighteen 
pimps, sixteen of whom are before the courts.  Nine brothels and 
four hotels have been closed and 476 foreign prostitutes have been 
expelled from the country. 
 
-------------------------- 
PROSTITUTION IN KAZAKHSTAN 
-------------------------- 
 
7. The press has also recently reported that: 
 
- More than 20 police officers from the rank of Major to Colonel are 
allegedly on pimps' payrolls and some live with the pimps; 
 
- Every year more than five thousand prostitutes depart from the 
Almaty International Airport to work as prostitutes abroad.  Few of 
them return and their whereabouts are unknown; 
 
- On the black market, a Kyrgyz passport costs USD 450-1000 and an 
Uzbek passport USD 800-2000. A Kazakhstani passport is the most 
expensive and costs USD 3000-10,000.  It costs USD 50-300 to cross 
the Kazakhstani border illegally; 
 
- Successful pimps pay police as much as USD 10,000, small-scale 
pimps pay USD 2000-6000. Each prostitute pays police USD 30-100. 
 
- In 1999, police arrested and registered 17,000 prostitutes.  This 
year, police arrested and registered 85,000. 
 
------- 
 
ASTANA 00003182  002.2 OF 002 
 
 
COMMENT 
------- 
 
8.  It is a welcome sign that the media in Kazakhstan is writing 
about corruption in the police force.  It is also encouraging that 
senior police officials appear to be expressing intolerance toward 
corruption and taking measures against it.  End comment. 
 
ORDWAY

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07ASTANA3178, KAZAKHSTAN: 2007-2008 INCSR, PART II, FINANCIAL CRIMES AND

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Reference ID Created Released Classification Origin
07ASTANA3178 2007-11-23 08:36 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO3651
RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #3178/01 3270836
ZNR UUUUU ZZH
R 230836Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1238
INFO RUCNCIS/CIS COLLECTIVE 0312
RUEKJCS/SECDEF WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEHBJ/AMEMBASSY BEIJING 0021

UNCLAS SECTION 01 OF 05 ASTANA 003178 
 
SIPDIS 
 
STATE FOR INL/AAE (BUHLER), INL/C, SCA/CEN (O'MARA), EB/ESC/TFS; 
JUSTICE FOR AFMLS, OTA, AND OPDAT; TREASURY FOR OTA AND FINCEN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SNAR EFIN PGOV KCRM KCOR KZ
 
SUBJECT: KAZAKHSTAN: 2007-2008 INCSR, PART II, FINANCIAL CRIMES AND 
MONEY LAUNDERING 
 
REF: A. STATE 138130 
 B. ASTANA 2323 
 
1. In response to reftel A, the text of Part II of the 2007-2008 
International Narcotics Control Strategy Report (INCSR), Financial 
Crimes and Money Laundering for Kazakhstan follows. 
 
------- 
SUMMARY 
------- 
 
2. Kazakhstan, with its developed and modern banking system, has 
become a financial center in Central Asia.  Kazakhstan's economic 
success and its geographic location present challenges in the fight 
against organized crime, extremism, narcotics trafficking, and 
terrorist financing.  In response, Kazakhstan is taking proactive 
measures against financial crimes.  The GOK has drafted anti-money 
laundering legislation and is planning to establish a Financial 
Intelligence Unit.  The property legalization process officially 
finished on August 1, 2007 and the GOK can now focus on enacting the 
long-delayed legislation.  In general, the GOK remains a willing 
partner in the fight against narcotics and terrorism.  End summary. 
 
----------------- 
GENERAL QUESTIONS 
----------------- 
 
------------------------- 
REGIONAL FINANCIAL CENTER 
------------------------- 
 
3. On June 5, 2006, the Parliament enacted and the President signed 
a law establishing a regional financial center in Almaty (RFCA). 
The RFCA is empowered to develop the Kazakhstani securities market, 
facilitate Kazakhstan's integration into international markets, 
attract investment, and introduce Kazakhstani securities into the 
global market. 
 
4. The RFCA is developing benefits for its members, including total 
or partial relief from corporate income tax, free business 
registration, and visa support for non-residents of Kazakhstan. 
Members of RFCA can be only officially registered companies holding 
a license for brokers' and dealers' activities and having an office 
in the city of Almaty. 
 
5. The volume of trade at the RFCA for the period from July 2006 to 
July 2007 was USD 43 million.  According to the official statistics 
of the Agency on Combating Financial Crime and Corruption (financial 
police) there were no criminal cases of money laundering related to 
RFCA activity.  Kazakhstan has become the regional business center 
of Central Asia because of its rapidly developing economy, developed 
banking and financial system, and rich oil and gas resources. 
 
6. During the first 9 months of 2007, there were 225 criminal cases 
initiated under the fraudulent business article of the Criminal 
Code, and 54 cases of fraudulent legalization of assets in the total 
amount of USD 31.7 million. 
 
7. The number of economic crimes for the first nine months of 2007 
(6895 cases) is less in comparison with the same period last year 
(7056).  During the period, there were 56 cases of fraudulent use or 
application for credit; 254 cases of fraud; and 139 cases of 
counterfeiting currency and/or securities. 
 
--------------------------- 
OFFSHORE FINANCIAL CENTERS 
--------------------------- 
 
8. Kazakhstan is not an offshore financial center.  There are no 
offshore companies or banks in the country.  Existing legislation 
does not favor offshore banks and offshore financial centers.  There 
are representative offices of 26 foreign banks in the country, 
including Dutch, Turkish, Chinese, German and Russian financial 
institutions. 
 
----------------- 
FREE TRADE ZONES 
----------------- 
 
9. Following the signing of the Free Trade Zone Agreement by the 
Heads of the CIS countries in Moscow on April 15, 1994, Kazakhstan 
signed separate Free Trade Zone agreements with Azerbaijan, Belarus, 
Georgia, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.  The main 
function of the Free Trade Zones is to create an easy flow of goods 
 
ASTANA 00003178  002 OF 005 
 
 
and services between CIS countries, to stabilize internal economies, 
and to allow for trade on mutually advantageous terms. 
 
10. In 2000, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan 
signed an agreement to establish the Eurasian Economic Union 
(EvrazES).  Uzbekistan joined EvrazES in 2006.  Armenia, Moldova and 
Ukraine have observer status.  EvrazES was created to facilitate 
regional economic integration and establish a customs union.  It is 
not yet clear whether these free trade arrangements are being used 
to further trade-based money laundering schemes or 
terrorism-financing. 
 
11. According to a March 2006 Interfax-Kazakhstan news agency 
report, China opened
the Maikapchagai-Zimunai cross border shopping 
area on the border with the East Kazakhstan oblast (EKO).  The EKO 
Department for Entrepreneurship and Industry announced that that the 
shopping center was officially opened on March 28 under an agreement 
signed between the administrations of the EKO and the Altay district 
of the Xinjiang Uygur Autonomous Region of China on January 26, 
2006.  Kazakhstani citizens can visit the shopping area for one day 
without a visa and may bring back a total of 50 kilos and less than 
USD 1,000 duty-free.  Kazakhstani merchants may import goods valued 
less than 50,000 tenge (USD 400) to the marketplace duty-free, or 
goods worth 80,000 tenge (USD 630) at a reduced customs rate.  If 
the value of goods is more than 80,000 tenge (USD 630) they are 
subject to all Chinese taxes and duties. 
 
12. In July 2007, China started construction of the Khorgos 
International Trade Center on the Kazakhstan-China border per a 2005 
agreement with Kazakhstan.  This center was established to promote 
trade, economic, and investment cooperation.  Citizens of both 
countries have visa free access to the territory of the center for 
up to 30 days.  The simplified customs and border procedures are 
expected to improve the economies on both sides of the border.  In 
May 2007, the Almaty Oblast Police Department signed a protocol with 
the Xinjiang Uygur Autonomous Region of China providing for 
cooperation to combat illegal migration, drug trafficking, and 
terrorism and allowing for the exchange of information.  This 
agreement establishes procedures to observe passport controls and 
other laws in Khorgos.  According to media reports, there has been a 
recent increase in cash smuggling from Kazakhstan to China by 
Chinese citizens at this border crossing point. 
 
--------------------------------------------- --- 
LAW AND REGULATIONS TO PREVENT MONEY LAUNDERING 
AND FINANCING TERRORISM 
--------------------------------------------- --- 
 
13. Kazakhstan has ratified the 1988 UN Drug Convention, and in 
December 2000, the country signed the UN Convention against 
Transnational Crime.  On February 24, 2003, Kazakhstan ratified the 
UN International Convention for the Suppression of the Financing of 
Terrorism.  Kazakhstan is also a signatory to the Central Asian 
Agreement on the Joint Fight Against Terrorism, Political and 
Religious Extremism, Transnational Organized Crime and Illicit Drug 
Trafficking (which was signed in April 2000 by Kazakhstan, 
Kyrgyzstan, Tajikistan, and Uzbekistan). 
 
14. The Agency on Combating Economic Crime and Corruption has 
developed draft legislation to ratify the UN Convention against 
Corruption.  It is expected to be passed before the end of the year. 
 The GOK is also working to join the Convention on Laundering, 
Search, Seizure and Confiscation of the Proceeds from Crime signed 
in Strasbourg, November 8, 1990.  Kazakhstan must receive approval 
from all EU members to join the Convention. 
 
15. Money laundering is criminalized in Kazakhstan by Article 193 of 
the Criminal Code of the Republic of Kazakhstan.  The definition of 
money laundering used in the act, however, is narrow and the 
sanctions against it relatively light (a maximum of three years 
imprisonment, increased to five for multiple offenses).  A further 
limit to the effectiveness of the law is that bank records may not 
be examined until after a criminal case has been initiated. 
However, the draft of the Anti-Money Laundering and Countering 
Financing of Terrorism legislation (AML/CFT) would require banks and 
other financial organizations to send information on all suspicious 
transactions to the Financial Intelligence Unit (FIU) for analysis. 
 
 
16. Kazakhstan is in the last stages of adopting an AML/CFT law and 
establishing an FIU.  The adoption of AML/CFT legislation was made a 
high priority by President Nazarbayev in his initiative against 
corruption, and the Procurator General's Office took the lead on 
drafting the AML/CFT legislation.  The Procurator General's Office 
 
ASTANA 00003178  003 OF 005 
 
 
expects the legislation on AML/CFT, introduced in September 2005, to 
be passed sometime by the end of 2007 or beginning of 2008. 
 
17. Parliament had postponed consideration of  draft AML/CFT 
legislation   until completion of the implementation of  property 
legalization amnesty in 2006.  Under the terms of the amnesty 
legislation, citizens seeking to legalize property were required to 
pay a fee in the amount of 10% of the property's value.  This rule 
did not apply to residential homeowners, whose property was 
legalized at no cost.  The legalization process was concluded on 
August 1, 2007 (reftel B). 
 
18. The fact that the Procurator General's Office (PGO), the most 
powerful and influential law enforcement body in the country, 
coordinated the drafting of AML/CFT legislation indicates that 
Kazakhstan has a vested interest in preventing money laundering. 
The PGO has taken on the responsibility within the GOK to ensure 
that the provisions of the AML/CFT law and the function of the FIU 
will meet international standards and become effective means of 
combating money laundering and related financial crimes. 
 
19. The initial plan was to establish the FIU as a Committee under 
the PGO, which developed and introduced the draft of the 
Presidential Decree with the detailed structure of the FIU to Prime 
Minister's Office.  According to the most recent information from 
the PGO, the FIU (to be called the Committee on Financial 
Monitoring) is expected to be established within the Ministry of 
Finance.  The draft 2008 state budget  includes USD 1.7 million for 
establishment of the proposed FIU.  Details of the FIU structure and 
the number of employees are still under discussion. 
 
----------------- 
FINANCIAL SECTOR 
----------------- 
 
20. A Presidential Decree of February 25, 2005 re-organized the 
Agency on Combating Economic Crimes and Corruption into a separate 
governmental agency reporting directly to the President. 
 
21. Currently, the Agency on Combating Economic Crimes and 
Corruption, the PGO, and the Agency for the Regulation and 
Inspection of the Financial Market and Financial Organizations are 
authorized to supervise all aspects of financial institutions.  In 
the future, the supervision and examination of financial 
institutions for compliance with AML/CFT laws and regulations will 
be the responsibility of the PGO. 
22. Currently, banks and other financial institutions are not 
required to know, record, or report the identity of customers 
engaged in significant transactions. The new AML/CFT law is expected 
to remedy this problem by requiring all banks to send information 
regarding suspicious transactions to the FIU. 
23. The Agency for the Regulation and Inspection of the Financial 
Market and Financial Organizations, in conjunction with a new 
regulation adopted on August 27, 2005, requires the maintenance of 
adequate records to reconstruct significant transactions at 
financial institutions.  Second-tier banks, for example, are 
required to keep records for five years on correspondence regarding 
the opening of currency accounts and investment activities, deals 
made through export and import operations, and documents related to 
payments made to foreign and international banks and organizations. 
 
24. Statutory requirements for limiting and monitoring the 
international transportation of currency and monetary instruments, 
as well as all cross-border currency reporting requirements, are 
governed by the Rules on Currency Transactions of April 20, 2001, 
and by the Rules on Declaring Foreign and National Currency by 
Individuals Entering and Leaving the Republic of Kazakhstan of May 
13, 2004. According to the Rules, a Kazakhstani resident is required 
to fill out a declaration form if he/she is planning to leave the 
country with more than USD 3,000 equivalent in foreign currency and 
must provide supporting documents verifying the source of funds if 
taking more than USD 10,000 out of the country.  Non-residents 
leaving Kazakhstan are also allowed a maximum of USD 3,000 without 
submitting a declaration form. The amount of national currency that 
may be taken out of the country by residents or non-residents is 
unlimited, and there are no reporting requirements.  There are no 
limitations or reporting requirements on the amounts of national or 
foreign currency being transported into the country by either 
residents or non-residents. 
25. According to the Criminal Procedural Code and the Law of the 
Republic of Kazakhstan about public protection of individuals 
participating in the criminal process during the investigation of 
the criminal case, witnesses, suspects and, accused individuals, and 
members of their families and close relatives are under safety 
 
ASTANA 00003178  004 OF 005 
 
 
measures.  Special departments in law enforcement agencies are 
responsible for the safety of witnesses and victims. 
-------------------- 
TERRORIST FINANCING 
-------------------- 
 
26. Kazakhstan plays an active role in the region in combating 
terrorism.  Kazakhstan is implementing United Nations Security 
Council Resolution 1373 and all the related resolutions on combating 
terrorism.  According to the Committee of National Security (KNB), 
the activities of 14 terrorist organizations, including Al Qaeda and 
the Taliban, are prohibited in Kazakhstan.  The Zhamaat Mojakhed 
Central Asia organization is also prohibited in Kazakhstan and was 
included into the consolidated list of terrorist organizations by 
the UN Security Council. 
 
27. Financing of extremism and terrorist activity is criminalized by 
Article 233-3 of the criminal Code of Kazakhstan.  The penalty for 
terrorism financing is up to five years of imprisonment for the 
first offense, and eight years for repeat offences.  The 
Antiterrorist Center of the KNB is responsible for combating all 
forms of terrorism. 
 
--------------- 
CASH SMUGGLING 
--------------- 
 
28. Article 209 of the Criminal Code stipulates that any illegal 
contraband (including currency) that crosses the borders of 
Kazakhstan with falsified documentation may result in the 
confiscation of the property, a fiscal penalty, arrest, and/or a 
jail sentence of up to three years.  The severity of the punishment 
is based on several factors, including whether the action is a 
repeat offense or if it is connected to the activities of an 
organized crime group. 
 
----------------------------------------- 
ASSET FORFEITURE AND SEIZURE LEGISLATION 
----------------------------------------- 
 
29. Criminal and civil forfeitures are defined by the Criminal and 
Civil Codes of the Republic of Kazakhstan.  Article 31 of the Law on 
Combating Narcotics, Psychotropic Substances, and Precursors 
stipulates that narcotics or psychotropic substances and precursors 
as well as the means of producing illegal narcotic substances, 
including property and finances, are subject to seizure by the 
government. 
 
-------------------------- 
INTERNATIONAL COOPERATION 
-------------------------- 
 
30. Kazakhstan is an active member of the Eurasian Group (EAG) on 
money laundering established on October 6, 2004.  Other members are 
Russia, Belarus, Uzbekistan, Kyrgyzstan, Tajikistan, and China.  In 
October 2007, the GOK hosted an EAG working group meeting on 
typologies of money laundering and held consultations with the 
private sector on anti-money laundering efforts. 
 
31. In 2006-2007, the USG continued to assist Kazakhstan's 
anti-money laundering and crime efforts in several ways through the 
Embassy's Office of International Narcotics and Law Enforcement 
(INL). 
 
32. In March 2005, INL funded a computer laboratory at the Financial 
Police Academy in Astana.  The Academy specializes in training 
future financial police and customs officers in the skills required 
to recognize and investigate money laundering schemes as well as to 
combat corruption and other economic crimes.  The computer 
laboratory is an important resource for future INL trainings as well 
as for the Academy itself.  Enhancement of the Financial Police 
Academy provides a long-term impact on the GOK's ability to 
effectively police its financial system and to control money 
laundering related to terrorism, narcotics trafficking, tax evasion, 
and corrupt activities by GOK officials. 
 
33. In May and September 2005, INL, in cooperation with the PGO, 
held a series of four seminars at PGO offices in both Almaty and 
Astana on the draft AML/CFT legislation and the establishment of an 
FIU.  The goal of these seminars was to help the GOK develop the 
regulatory structure needed to enforce the provisions of the AML/CFT 
legislation, to prepare the GOK to enter various organizations 
related to the Financial Action Task Force on Money Laundering 
(FATF), to train second-tier banks to meet AML/CFT requirements, and 
 
ASTANA 00003178  005 OF 005 
 
 
to help the GOK establish an effective FIU.  The lead training 
agency was the U.S. Department of Treasury's Office of Technical 
Assistance (OTA). 
 
34. In November 2007, under the auspices of INL, personnel from OTA 
trained financial police officers and representatives of the PGO in 
financial crime detection techniques.  This course was in addition 
to four earlier courses in investigative techniques.  This training 
will enhance the ability of law enforcement officers in combating 
financial crimes. 
 
35. INL continued to provide an
d arrange training and equipment to 
the Statistics Division of the PGO, which targets drug trafficking 
organizations operating in Kazakhstan.  This equipment was provided 
as part of a larger project aimed at improving the collection of 
criminal statistics in Kazakhstan, especially those related to the 
GOK's efforts to combat narcotics trafficking and anti-money 
laundering activities. 
 
36. The GOK is a willing partner in the fight against terrorism, and 
it is making major strides to identify potential money laundering 
activities connected to international terrorism and narcotics 
trafficking. If adopted and implemented, the draft AML/CFT 
legislation and the establishment of an FIU will help Kazakhstan 
become an active member in the Egmont Group. 
 
ORDWAY

Wikileaks

07ASTANA3177, KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, NOVEMBER 5 – 18,

WikiLeaks Link

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Reference ID Created Released Classification Origin
07ASTANA3177 2007-11-23 07:52 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO4848
RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #3177/01 3270752
ZNR UUUUU ZZH
R 230752Z NOV 07 ZDK CITING RUEHNT #8033 3280830
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1235
INFO RUCPCIM/CIMS NTDB WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCNCIS/CIS COLLECTIVE 0309
RUEHAK/AMEMBASSY ANKARA 2109
RUEHBUL/AMEMBASSY KABUL 0367
RUEHNE/AMEMBASSY NEW DELHI 0481
RUEHAST/USOFFICE ALMATY 0009

UNCLAS SECTION 01 OF 03 ASTANA 003177 
 
SIPDIS 
 
DEPT FOR SCA/CEN (O'MARA) 
DEPT PASS TO OPIC - BALLINGER 
DEPT PASS TO TDA FOR STEIN, EXIM FOR GLAZER 
DEPT PASS TO AID - EE-PHILLIPS/RUSHING 
TREASURY FOR OASIA/VELTRI 
USDOC FOR 4231/ITA/MAC/MLONDON, 4201/BISNIS 
USDOC FOR 6110/ITA/TD/BI/RHALPERN 
ANKARA FOR CFC 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EIND ENRG EPET EFIN KTDB KZ
SUBJECT:  KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, NOVEMBER 5 - 18, 
2007 
 
ASTANA 00003177  001.8 OF 003 
 
 
1.  Summary: This information is drawn primarily from the 
Kazakhstani local press, and has not been checked for accuracy.  The 
opinions and policies expressed in this report are those of the 
authors, not the U.S. Government. 
 
 -- UniCredit Group Finalizes Purchase of ATF Bank 
 -- British Companies Expanding in Kazakhstan 
 -- SCO Members to Enhance Customs Cooperation 
 -- China's Ex-Im Bank to Finance Telecom Investment in Kazakhstan 
 -- Economic Statistics 
 -- Economy Ministry Suggests an End to the Use of PSAs 
 -- TengizChevrOil Pays $309M Fine 
 -- KazMunayGas Purchases 50% of Former Nations Energy 
 -- KazMunayGas, CNPC Agree on New Gas Pipeline 
 -- Oil & Gas Statistics for January-October 2007 
 
 UniCredit Group Finalizes Purchase of ATF Bank 
 --------------------------------------------- - 
 
2.  Bank Austria Creditanstalt AG (BA-CA), the division responsible 
within the UniCredit Group for commercial banking activities in 
Central and Eastern Europe, finalized the acquisition of 91.8% of 
the total issued share capital of Kazakhstan-based ATF Bank (Almaty 
Merchant Financial Bank) for approximately $2.1 billion. 
Specifically, BA-CA acquired 95.6% of total issued common shares for 
$1.66 billion and 85.0% of total issued preferred shares for $456 
million.  Through the acquisition of ATF Bank, the UniCredit Group 
is establishing a major presence in Kazakhstan and expanding its 
operations in Kyrgyzstan, Tajikistan and Russia.  (Press-Service of 
ATF bank, November 14) 
 
 British Companies Expanding in Kazakhstan 
 ----------------------------------------- 
 
3.  U.K. Ambassador to Kazakhstan Paul Brummell said in an interview 
to Interfax-Kazakhstan that the number of British financial 
companies interested in operating in Kazakhstan is increasing.  This 
provides a great opportunity for cooperation with Kazakhstani 
companies listed on London Stock Exchange.  Ambassador Brummell also 
noted that Great Britain remains one of the key investors in 
Kazakhstan, with a total of over $5 billion invested in the 
country's economy over the past 15 years.  In Ambassador Brummell's 
opinion, the trend of increasing British investment in Kazakhstan 
will continue for the foreseeable future.  (Interfax - Kazakhstan, 
November 12) 
 
 SCO Members to Enhance Customs Cooperation 
 ------------------------------------------ 
 
4.  Shanghai Cooperation Organization (SCO) member-states signed an 
intergovernmental agreement on customs cooperation and mutual 
assistance.  Russian Prime-Minister Zubkov called the agreement "an 
important tool for creating a comprehensive security system within 
the SCO."  The parties also agreed to review the SCO's basic 
economic documents, particularly long-term programs for multilateral 
trade and economic cooperation.  (Interfax - Kazakhstan, November 
5) 
 
 China's Ex-Im Bank to Finance Telecom Investment in Kazakhstan 
 ---------------------------- --------------------------------- 
 
5.  Kazakhstan-based KazKommertsBank (KKB) signed a $34 million 
credit agreement with China's Export-Import Bank to finance the 
import of telecommunications equipment from Huwai Technologies Co., 
a leading Chinese producer.  The credit, to be provided with a 
flexible repayment schedule over the course of seven years, will be 
used to develop a cellular network in cooperation with KazTelecom. 
(Central Asia General Newswire, November 14) 
 
 Economic Statistics 
 ------------------- 
 
6.  "As of November 1, 2007 the assets of the National Oil Fund were 
valued at $20.2 billion.  By the end of 2007, we expect them to grow 
to $25-26 billion dollars," the then-Finance Minister Korzhova 
 
ASTANA 00003177  002.2 OF 003 
 
 
reported to the Mazhilis on November 12.  The assets of the National 
Oil Fund stood at just $14.0 billion at the end of 2006.  (Interfax 
- Kazakhstan, November 12) 
 
7. The average (mean) nominal monthly salary in September was KZT 
53,005 (approx. $438), a 28.9% increase (16% in real terms) over 
September 2006.  Kazakhstan's official living monthly salary (as of 
October 2007) was KZT 11,079 ($91.50).  (Kazakhstani Statistics 
Agency, November 13) 
 
Economy Ministry Suggests an End to the Use of PSAs 
------------------------- ------------------------- 
 &#x0
00A;8.  Kazakhstan's Ministry of Economy and Budget Planning has 
submitted a proposal to the GOK to stop using Production Sharing 
Agreements (PSAs) with subsoil users in the future, abolish VAT 
privileges for geological prospecting activities and increase 
existing rates of royalties, Galymzhan Zhakupov, Head of the 
Ministry's Tax Policy and Forecasting Department, said at a 
KazEnergy association meeting on November 5.  "In the future 
contracts should be concluded on a concession basis.  The earlier 
concluded PSAs will be effective until they expire," he said. 
According to Zhakupov, currently PSA taxation is extremely 
complicated and non-transparent.  Moreover, tax inspections and 
audits are made more difficult because of differences between terms 
set in PSAs and current legislative norms.  (Reuters - Astana, 
November 5) 
 
TengizChevrOil Pays $309 Million Fine 
------------------------------------- 
 
9.  An Atyrau regional court upheld the decision of a regional 
economic court to levy a fine of KZT 37.4 billion (approx. $309 
million) against TengizChevrOil (TCO) for illegal storage of 2.8 
million tons of solid sulfur in 2003-06.  The court rejected TCO's 
appeal TCO made earlier.  It also rejected a notice of protest filed 
by the Atyrau regional environmental office which demanded that TCO 
pay a large sum -- KZT 74.4 billion (approx. $615 million) -- for 
its alleged violations.  (Interfax - Kazakhstan, November 2) 
 
KazMunayGas Purchases 50% of Former Nations Energy 
------------------------- ------------------------ 
 
10.  Exploration & Production KazMunayGas (E&P KMG, an oil producing 
subsidiary of KazMunayGas) and China's CITIC Canada signed an 
agreement for E&P KMG to buy a 50% stake in CITIC Canada Petroleum 
(the former Nations Energy Company, whose main asset is the 
Karazhanbas field in Mangystau region).  The document was signed 
during the 4th meeting of the Kazakh-Chinese Cooperation Committee 
on November 8.  The E&P KMG board of directors approved the 
$930-million acquisition in early October.  CITIC Group reached an 
agreement to purchase Nations Energy Company for $1.91 billion on 
October 25, 2006.  Later Nations Energy was renamed CITIC Canada 
Petroleum.  Having received approval for the deal, on December 28, 
2006 CITIC granted KMG a one-year option to purchase a 50% stake in 
CITIC Canada Petroleum.  (Interfax - Kazakhstan, November 12) 
 
KazMunayGas, CNPC Agree on New Gas Pipeline 
------------------------------------------- 
 
11.  On November 8, on the sidelines of the official visit of 
Chinese Vice-Premier Wu Yi to Kazakhstan, KazMunayGas and China 
National Petroleum Company (CNPC) signed an agreement spelling out 
the fundamentals of the construction and operation of a gas pipeline 
between Kazakhstan and China.  The sides agreed to set up a 
jointly-owned company which will own the gas pipeline. 
Implementation of the project is contingent upon approval of a 
feasibility study. The project is designed to be implemented in two 
phases.  Initially, a pipeline would be laid from the borders of 
Uzbekistan and Kazakhstan to China via Shymkent (south Kazakhstan), 
with an annual capacity of 40 billion cubic meters.  Later, the 
pipeline would be extended between Beyneu, Bozoi (west Kazakhstan), 
Kyzyl Orda (south Kazakhstan) and Shymkent, with an annual capacity 
of 10 billion cubic meters.  (Interfax - Kazakhstan, November 12) 
 
 
ASTANA 00003177  003.2 OF 003 
 
 
Oil & Gas Statistics for January-October 2007 
--------------------------------------------- 
 
12.  According to the National Statistics Agency, from January to 
October 2007, Kazakhstan produced 46 million tons of crude oil, 2.1% 
more than in the same period in 2006, and 10 million of gas 
condensate, 17.9% more year-on-year.  During the first ten months of 
2007 Kazakhstan produced 24 billion cubic meters of natural gas, a 
14.1% increase from the January-October 2006 period.  (Interfax - 
Kazakhstan, November 12) 
 
ORDWAY

Wikileaks

07ASTANA3172, KAZAKHSTAN CONSIDERING ITS COMMITTEE ON THE

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Reference ID Created Released Classification Origin
07ASTANA3172 2007-11-23 07:36 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO3597
RR RUEHAST
DE RUEHTA #3172 3270736
ZNR UUUUU ZZH
R 230736Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1228
INFO RUEHAST/USOFFICE ALMATY 0004
RUCNDT/USMISSION USUN NEW YORK 1894

UNCLAS ASTANA 003172 
 
SIPDIS 
 
SIPDIS 
 
SCA/CEN FOR M. O'MARA 
 
E.O. 12958: N/A 
TAGS: PREL PHUM UNGA KZ
SUBJECT: KAZAKHSTAN CONSIDERING ITS COMMITTEE ON THE 
ELIMINATION OF RACIAL DISCRIMINATION VOTE 
 
REF: STATE 157598 
 
On November 21, Poloff delivered reftel demarche to Almabek 
Demesinov, MFA Director for U.N. Affairs.  Demesinov called 
Ambassador Prosper's credentials impressive but said that 
Kazakhstan is not yet ready to confirm its support of any 
candidate.  Demesinov promised to contact Poloff in December 
after Kazakhstan has further considered Ambassador Prosper's 
candidacy. Post is also delivering reftel points and 
Ambassador Prosper's CV by diplomatic note. 
Ordway

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07ASTANA3162, KAZAKHSTAN TIP INTERIM ASSESSMENT REPORT FOR 2007

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Reference ID Created Released Classification Origin
07ASTANA3162 2007-11-20 11:58 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO1054
OO RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #3162 3241158
ZNR UUUUU ZZH
O 201158Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1220
INFO RUEHAST/USOFFICE ALMATY 0002
RUCNCIS/CIS COLLECTIVE 0307

UNCLAS ASTANA 003162 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR G (ACBLANK), G/TIP, SCA/CEN (O'MARA), SCA/RA, INL/AAE 
(BUHLER), DRL, PRM, USAID 
 
E.O. 12958: N/A 
TAGS: KCRM PHUM SOCI KCOR PGOV KZ
SUBJECT: KAZAKHSTAN TIP INTERIM ASSESSMENT REPORT FOR 2007 
 
REF: A) SECSTATE 147242 
 
 B) ASTANA 1925 
 C) ASTANA 1267 
 D) ASTANA 2686 
 E) ASTANA 367 
 F) ASTANA 1061 
 G) ASTANA 3082 
 
1. Post is pleased that Kazakhstan has made significant progress in 
addressing key deficiencies highlighted in June 2007 TIP report and 
is pleased to submit the following information in response to reftel 
A.  All responses are keyed to reftel A. 
 
2. PARA 6A (a):  Three corrupt anti-TIP police officers were 
prosecuted during the reporting period.  In March, the Committee for 
National Security (KNB) and the Ministry of Interior (MVD) initiated 
a criminal case against Captain Igor Morozov, the former head of the 
Anti-Trafficking Unit of the Organized Crimes Division of the MVD, 
on charges of falsification of evidence and abuse of professional 
functions.  Captain Morozov is accused of providing protection for 
Olga Kodonidi, a local madam, and facilitating prostitution. The 
case is currently before the court (septel).  In June, the MVD 
office in Akmola oblast initiated a criminal case against two police 
officers of the Anti-Trafficking Unit of Organized Crimes Division 
of the MVD. Both Senior Operative Officer Sydykov and Operative 
Officer Baisalbayev are accused of providing protection for a woman 
accused of operating a brothel.  The investigation of this case is 
ongoing. 
 
2. PARA 6A (b):  A total of 19 trafficking cases were under 
investigation during the reporting period.  Fourteen criminal cases 
were investigated under the trafficking in persons article of the 
criminal code and five under the trafficking in minors article. 
Eleven of the trafficking in persons cases were initiated during the 
reporting period and three were ongoing cases from 2006 and 10 cases 
were submitted to the court.  In five of the cases before the court, 
a total of 17 traffickers were sentenced to prison terms.  Four of 
the cases of trafficking in minors were submitted to the court and 
one was suspended due to failure to identify the traffickers.  For 
details on 2007 trafficking convictions please see reftels B, C, and 
D. 
 
3. PARA 6A (c):  In October, Prime Minister Massimov chaired the 
third Civic Forum, in which the GOK met with NGO leaders from 
throughout Kazakhstan, including leaders of anti-trafficking NGOs. 
The Ministers and Governors of oblasts reported on cooperation and 
interaction with NGOs over the last two years.  President Nazarbayev 
has encouraged the GOK to support NGOs within the framework of the 
Concept for Civil Society Development, adopted during the second 
Civic Forum, and the Social Assistance Law that allows the GOK to 
provide grants to NGOs.  From 2006 to 2007, the GOK provided grants 
to the Union of Crisis Centers for implementation of an information 
campaign to prevent sexual violence against women and children, 
child pornography, and human trafficking.  According to the Ministry 
of Information, the campaign reached more than 3,000 people and 
3,000 "Your Rights" booklets were distributed.  The GOK plans to 
provide more grants to anti-trafficking NGOs in 2008. 
 
4. PARA 6A (d):  The GOK continues to actively provide 
anti-trafficking in persons and victim identification training to 
law enforcement officers.  During the reporting period, in Karaganda 
the Anti-TIP Center of the MVD conducted five, four-week, in-service 
training courses for their criminal police and migration police 
officers.  A total of 97 MVD officers from anti-trafficking units 
throughout Kazakhstan were trained.  In addition to government 
anti-TIP trainings, Kazakhstani officials actively participated in 
the following US Embassy/INL courses: an anti-TIP training course in 
January (reftel E), an Anti-TIP Legislation Conference in April 
(reftel F), and a Kazakhstan-Turkey Liaison meeting in September. 
They also participated in other anti-TIP training events conducted 
by other donors. 
 
5. PARA 6A, Other Developments:  In August, a draft law on 
ratification of the UN Convention on Transnational Crimes and  draft 
law on  ratification of the Slavery Convention, Protocol of Changes 
and Amendments to the Slavery Convention, and the Additional 
Protocol on Slavery Abolishment were submitted to the parliament for 
approval.  After approval by the parliament, the President must sign 
the laws to complete the process of Kazakhstan's accession to these 
conventions and protocols.  In September and October, MVD 
successfully conducted two anti-trafficking operations.  As a result 
of this operation, a number trafficking cases were uncovered and are 
now under investigation (reftel G). 
 
ORDWAY

Wikileaks

07ASTANA3153, UN HIGH COMMISSIONER FOR REFUGEES SEES POSITIVE

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Reference ID Created Released Classification Origin
07ASTANA3153 2007-11-19 12:04 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO9896
RR RUEHDBU
DE RUEHTA #3153 3231204
ZNY CCCCC ZZH
R 191204Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1207
INFO RUCNCIS/CIS COLLECTIVE 0306
RUCNDT/USMISSION USUN NEW YORK 1893

C O N F I D E N T I A L ASTANA 003153 
 
SIPDIS 
 
SIPDIS 
 
SCA/CEN FOR M. O'MARA 
 
E.O. 12958: DECL: 11/17/2017 
TAGS: PGOV PREL KZ
SUBJECT: UN HIGH COMMISSIONER FOR REFUGEES SEES POSITIVE 
STEPS FROM KAZAKHSTAN 
 
Classified By: CLASSIFIED BY POL/ECON CHIEF STEVE FAGIN FOR REASONS 1.4 
(B) and (D) 
 
  1.(SBU) UN High Commissioner for Refugees Antonio Guterres 
and Kazakhstan's Foreign Minister Marat 
Tazhin signed a bilateral cooperation agreement on November 
14 aimed at protecting  the rights of refugees residing in 
Kazakhstan.  The agreement had been under negotiation for the 
past two years.  At a press conference following the signing, 
Guterres said the agreement is "very important not only in 
the framework of cooperation with Kazakhstan, but also in 
interaction with all of Central Asia." 
Guterres added that he was pleased to learn about 
Kazakhstan's efforts to move forward on legislation providing 
asylum rights for refugees.  Guterres reiterated the 
importance of the legislation in his meeting with President 
Nazarbayev. 
 
2. (C)  At a lunch for representatives of local diplomatic 
missions, Guterres praised Kazakhstan's commitment on asylum 
issues. He noted that Kazakhstan has not recently deported 
any refugees.  Guterres said that Kazakhstan wants asylum 
legislation which conforms with international standards,  as 
the GOK recognizes that regional and CIS agreements, such as 
the Minsk agreement, are insufficient. Guterres reported, 
however, that the Kazakhstanis told him that they must be 
"sneaky" in working around these agreements. 
 
3. (C) Kazakhstan's good-will on asylum issues, said 
Guterres, must be placed within the framework of the "unique 
pressures" it faces. Its two large neighbors, Russia and 
China, have a keen interest in Chechen and Uighur asylum 
claims.  Moreover, Guterres stressed, Kazakhstan fears 
instability in Uzbekistan.  UNHCR estimates that 500,000 
Uzbeks will flee Uzbekistan if there is a severe crisis in 
the country. (Note:   German DCM Juergen Keilholz stated that 
Kazakhstani Senate Speaker Tokayev recently told him 
Kazakhstan puts the number at 1,000,000.  End Note.) The 
Chinese are particularly difficult on the Uighur issue, said 
Guterres, often providing information on asylum claims 
gathered from questionable sources. Because of these external 
pressures, Guterres sees Kazakhstan's willingness to finally 
sign a bilateral agreement with UNHCR as a very positive 
sign. 
 
 
Ordway

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07ASTANA3152, KAZAKHSTAN: KORZHOVA DISMISSED AS FINANCE MINISTER

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Reference ID Created Released Classification Origin
07ASTANA3152 2007-11-19 12:03 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO9900
RR RUEHDBU
DE RUEHTA #3152/01 3231203
ZNY CCCCC ZZH
R 191203Z NOV 07 ZDK
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1205
INFO RUCNCIS/CIS COLLECTIVE 0304

C O N F I D E N T I A L SECTION 01 OF 02 ASTANA 003152 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/16/2017 
TAGS: ECON EFIN EINV ETRD KZ PGOV PREL KCOR
SUBJECT: KAZAKHSTAN: KORZHOVA DISMISSED AS FINANCE MINISTER 
 
REF: A. ASTANA 3025 
     B. ASTANA 2823 
     C. ASTANA 2716 
 
Classified By: AMB. ORDWAY FOR REASONS 1.4 (B) AND (D) 
 
Summary 
------- 
 
1.  (C) Finance Minister Korzhova, whose departure had been 
rumored for several months, has been dismissed and replaced 
by Bolat Zhamishev.  Korzhova's tenure was a problematic one, 
with the Finance Ministry showing itself ineffective at 
dealing with a number of issues, including the recent customs 
crisis.  President Nazarbayev has placed the blame squarely 
on Korzhova for a wide range of Kazakhstan's recent economic 
challenges.  Zhamishev has a wide range of experience for his 
new job, including two past stints as Vice Minister of 
Finance.  His appointment may portend positive changes for 
the Finance Ministry.  End summary. 
 
Finance Ministry under Korzhova 
------------------------------- 
 
2.  (C) Finance Minister Natalya Korzhova was relieved of her 
duties on November 14 and replaced by Eurasian Development 
Bank Deputy Chairman Bolat Zhamishev.  Korzhova, who had been 
in charge of the Finance Ministry since January 2006, was 
recently viewed as increasingly vulnerable, and her departure 
had been rumored for several months.  The head of the Customs 
Brokers Association, Gennadiy Shestakov, recently told 
Econoff that Korzhova had played a key role in pushing 
through a Customs Code amendment that led to the recent 
customs shutdown for imports from the United States (ref B 
and C).  Korzhova, who repeatedly vowed to fight corruption 
when she became Minister, may have also been weakened by 
linking herself to this decidedly uphill battle.  Corruption 
remains a critical problem and is particularly associated 
with the customs authorities, who operate under the Finance 
Ministry's umbrella.  In dealing with Embassy Astana on the 
customs shutdown as well as on various taxation issues, the 
Finance Ministry under Korzhova often displayed institutional 
paralysis.  The Ministry proved largely unable to negotiate 
or make decisions due to a fear that legal solutions proposed 
by Finance would leave its officials vulnerable to 
prosecution by the General Procurator's Office. 
 
Korzhova Takes the Blame 
------------------------ 
 
3. (SBU) According to a KTK TV channel broadcast, President 
Nazarbayev roundly criticized Korzhova and her Ministry's 
performance at a Security Council meeting on November 15. 
Using some harsh words (roughly translated as "outrage" and 
"blockheadedness"), Nazarbayev blamed the Finance Ministry 
for the current slowdown in the construction sector, rising 
gasoline prices, and beer shortages in various regions of the 
country.  Nazarbayev also mentioned the "August crisis," an 
apparent reference to a brief dollar-buying panic which 
ensued as a result of the customs crisis (Refs A, B, C). 
Thus, Nazarbayev essentially blamed Korzhova for the wide 
range of economic challenges that Kazakhstan has faced as a 
result of the global financial turbulence (Ref A). 
Nazarbayev added that he is not expecting any additional 
Cabinet changes in the foreseeable future, and that it is up 
to the current ministers to solve the problems at hand. 
 
Zhamishev:  Wealth of Experience 
-------------------------------- 
 
4. (SBU) Bolat Zhamishev brings to the Finance Ministry a 
wealth of relevant experience.  The 50-year-old Zhamishev 
served two stints  as a Vice-Minister of Finance between 1999 
and 2002 and was chairman of the Financial Supervision Agency 
during 2004-06.  Zhamishev held working-level positions at 
the National Bank of Kazakhstan during 1993-97.  This period 
could be described as a formative one for the NBK, when it 
was led by such prominent individuals as Daulent Sembayev (a 
founding father of the Kazakhstani banking system) and his 
progressive proteges Oraz Zhandosov and Gregoriy Marchenko. 
It was then that the NBK started developing into a highly 
professional, effective and somewhat independent central bank 
it is today. 
 
Comment 
------- 
 
5.  (C) Nazarbayev's harsh criticism of Korzhova, along with 
his statement that no additional Cabinet reshuffling is to be 
expected, implies that she may be taking the fall for the 
current economic challenges, some of which (particularly the 
construction sector slowdown and rising gasoline problems) 
have primarily external causes.  Her departure and 
 
ASTANA 00003152  002 OF 002 
 
 
Zhamishev's arrival may portend positive changes in a rather 
sclerotic ministry that oversees several key functions, 
including taxation and customs.  Zhamishev, whose resume 
appears to be that of a classic 'technocrat' (and who is not 
known to belong to a political party), may be just what the 
Ministry needs.  His appointment may also be welcome news for 
the banking sector, which was recently subjected to some &#x000A
;harsh remarks from Korzhova and to increasing inspections by 
her Ministry.  It is unclear, however, to what extent 
Zhamishev will be able to overcome the political and 
institutional burdens that plagued his predecessor, including 
fears stemming from aggressive oversight by the General 
Procurator's Office. 
Ordway

Wikileaks

07ASTANA3142, KAZAKHSTAN LIKELY TO SUPPORT UNGA RESOLUTION

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If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASTANA3142.
Reference ID Created Released Classification Origin
07ASTANA3142 2007-11-19 09:22 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXYZ0004
PP RUEHWEB

DE RUEHTA #3142 3230922
ZNR UUUUU ZZH
P 190922Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1201
INFO RUCNDT/USMISSION USUN NEW YORK PRIORITY 1892

UNCLAS ASTANA 003142 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC KWMN SOCI UNGA
SUBJECT: KAZAKHSTAN LIKELY TO SUPPORT UNGA RESOLUTION 
CONDEMNING RAPE 
 
REF: A. STATE 155063 B. ASTANA 2786 
 
Poloff delivered reftel demarche to Sergey Savelyev, MFA 
Deputy Director for International Security and International 
Organizations. Savelyev told Poloff that Kazakstan will 
likely support the resolution without amendments but said 
that he first needed to consult with Kazakhstan's U.N. 
delegation.  Kazakhstan will not consponsor the resolution, 
according to Savelyev.. 
Ordway

Wikileaks

07ASTANA3140, KAZAKHSTAN: KORZHOVA DISMISSED AS FINANCE MINISTER

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If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASTANA3140.
Reference ID Created Released Classification Origin
07ASTANA3140 2007-11-19 09:22 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO9918
RR RUEHDBU
DE RUEHTA #3140/01 3230922
ZNY CCCCC ZZH
R 190922Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1198
INFO RUCNCIS/CIS COLLECTIVE 0302

C O N F I D E N T I A L SECTION 01 OF 02 ASTANA 003140 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/16/2017 
TAGS: ECON EFIN EINV ETRD KZ PGOV PREL KCOR
SUBJECT: KAZAKHSTAN: KORZHOVA DISMISSED AS FINANCE MINISTER 
 
ASTANA 00003140  001.4 OF 002 
 
 
///   ZFR   ///    ZFR    ///   ZFR    /// 
 
CANCEL ASTANA 3140 IN ENTIRITY. 
WILL RETRANSMIT UNDER NEW MRN. 
 
///   ZFR   ///   ZFR   ///   ZFR    //// 
 
 
ASTANA 00003140  002 OF 002 
 
 
Zhamishev's arrival may portend positive changes in a rather 
sclerotic ministry that oversees several key functions, 
including taxation and customs.  Zhamishev, whose resume 
appears to be that of a classic 'technocrat' (and who is not 
known to belong to a political party), may be just what the 
Ministry needs.  His appointment may also be welcome news for 
the banking sector, which was recently subjected to some 
harsh remarks from Korzhova and to increasing inspections by 
her Ministry.  It is unclear, however, to what extent 
Zhamishev will be able to overcome the political and 
institutional burdens that plagued his predecessor, including 
fears stemming from aggressive oversight by the General 
Procurator's Office. 
Ordway

Wikileaks

07ASTANA3139, UN HIGH COMMISSIONER FOR REFUGEES SEES POSITIVE

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If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASTANA3139.
Reference ID Created Released Classification Origin
07ASTANA3139 2007-11-19 09:22 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO9912
RR RUEHDBU
DE RUEHTA #3139 3230922
ZNY CCCCC ZZH
R 190922Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1197
INFO RUCNCIS/CIS COLLECTIVE 0301
RUCNDT/USMISSION USUN NEW YORK 1891

C O N F I D E N T I A L ASTANA 003139 
 
SIPDIS 
 
SIPDIS 
 
SCA/CEN FOR M. O'MARA 
 
E.O. 12958: DECL: 11/17/2017 
TAGS: PGOV PREL KZ
SUBJECT: UN HIGH COMMISSIONER FOR REFUGEES SEES POSITIVE 
STEPS FROM KAZAKHSTAN 
 
///   ZFR   ///   ZFR   ///   ZFR   /// 
 
CANCEL ASTANA 3139 IN ENTIRITY. 
WILL RETRANSMIT UNDER NEW MRN. 
 
///   ZFR   ///   ZFR   ///   ZFR   /// 
 
Ordway

Wikileaks

07ASTANA3138, KAZAKHSTAN: KORZHOVA DISMISSED AS FINANCE MINISTER

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If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASTANA3138.
Reference ID Created Released Classification Origin
07ASTANA3138 2007-11-19 09:22 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO9903
RR RUEHDBU
DE RUEHTA #3138/01 3230922
ZNY CCCCC ZZH
R 190922Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1195
INFO RUCNCIS/CIS COLLECTIVE 0299

C O N F I D E N T I A L SECTION 01 OF 02 ASTANA 003138 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/16/2017 
TAGS: ECON EFIN EINV ETRD KZ PGOV PREL KCOR
SUBJECT: KAZAKHSTAN: KORZHOVA DISMISSED AS FINANCE MINISTER 
 
ASTANA 00003138  001.3 OF 002 
 
 
/////    ZFR   ////   ZFR   ////   ZFR   ////   ZFR   /// 
 
CANCEL ASTANA 3138 IN ENTIRITY. 
WILL RETRANSMIT UNDER NEW MRN. 
 
///   ZFR    ///      ZFR     ////     ZFR    ///    ZFR   /// 
 
 
ASTANA 00003138  002.3 OF 002 
 
 
 
///   ZFR   ///   ZFR    ///     ZFR    /// 
 
CANCEL ASTANA 3138 IN ENTIRITY. 
WILL RETRANSMIT UNDER NEW MRN. 
 
///   ZFR   ///   ZFR   ///   ZFR    ///

Wikileaks

07ASTANA3082, TWO ANTI-TRAFFICKING OPERATIONS IN KAZAKHSTAN RESULT IN

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Reference ID Created Released Classification Origin
07ASTANA3082 2007-11-09 12:05 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO2819
PP RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW
DE RUEHTA #3082 3131205
ZNR UUUUU ZZH
P 091205Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1153
INFO RUCNCLS/SCA COLLECTIVE
RUEHAST/USOFFICE ALMATY

UNCLAS ASTANA 003082 
 
SIPDIS 
 
STATE FOR INL/AAE (BUHLER), G/TIP, SCA/CEN (O'MARA) 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SNAR SOCI KCRM KZ
SUBJECT: TWO ANTI-TRAFFICKING OPERATIONS IN KAZAKHSTAN RESULT IN 
BROTHEL CLOSURES, ARRESTS 
 
1. Summary:  Police closed brothels and arrested a number of 
individuals involved in human trafficking and forced prostitution 
during two week-long operations conducted recently to combat human 
trafficking in Kazakhstan.  End summary. 
 
2.  During September 23 - September 30, the Organized Crime Unit of 
Kazakhstan's Ministry of Interior (MVD) conducted an 
anti-trafficking operation in major Kazakhstani cities.  The 
operation resulted in three criminal cases involving human 
trafficking, including one case of trafficking of minors.  Fourteen 
criminal cases were initiated against individuals accused of pimping 
and maintaining brothels, and one case was opened against 
individuals accused of forcing victims to work as prostitutes.  In 
total, 213 prostitutes and 15 pimps were arrested. 
 
3. A second, larger-scale, operation was conducted throughout 
Kazakhstan by several law enforcement agencies during October 29 - 
November 5.  This operation uncovered six cases of human 
trafficking; five cases of forced prostitution; two cases of 
kidnapping; five cases of deprivation of freedom for the purpose of 
exploitation; and 38 cases of pimping and maintaining brothels. 
Police closed 22 brothels and arrested 30 pimps and 339 
prostitutes. 
 
4. In one specific case uncovered during the second operation, the 
Organized Crime Division of the MVD in Almaty received information 
that a woman had been kidnapped and forced to work as a prostitute 
in a hotel.  The police rescued the victim, who reported that she 
was kidnapped from the city of Karaganda in October and trafficked 
to Almaty, where she was "sold" for 120,000 tenge (USD 1,000).  The 
owner of the hotel, who was a member of the group that "purchased" 
the victim, was arrested; the investigation is on-going.  In a 
second case, police arrested two individuals in Kokshetau, Akmola 
oblast, for confining a 15-year old girl in a sauna, where they used 
violence and threats to compel her to work as prostitute. 
 
5. Comment:  These two operations are an encouraging signal with 
respect to Kazakhstan's commitment to combating human trafficking. 
That said, it remains to be seen how the criminal cases will be 
followed up on by the procuracy and the courts.  End Comment. 
 
ORDWAY

Wikileaks

07ASTANA3025, KAZAKHSTAN MANAGING REVERBERATIONS OF THE U.S. SUBPRIME

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Reference ID Created Released Classification Origin
07ASTANA3025 2007-11-07 07:37 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO9946
RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #3025/01 3110737
ZNR UUUUU ZZH
R 070737Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1099
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUCNCIS/CIS COLLECTIVE 0291
RUEHAST/USOFFICE ALMATY

UNCLAS SECTION 01 OF 03 ASTANA 003025 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SCA/CEN (O'MARA) 
 
E.O. 12958: N/A 
TAGS: ECON PGOV EFIN EINV KTDB KZ
 
SUBJECT:  KAZAKHSTAN MANAGING REVERBERATIONS OF THE U.S. SUBPRIME 
CRISIS 
 
Ref:  (A) Astana 1512  (B) Astana 372  (C) Astana 2765  (D) Astana 
2823  (E) Astana 2716 
 
ASTANA 00003025  001.2 OF 003 
 
 
1. (SBU) Summary.  The global reverberations of the subprime 
mortgage crisis in the U.S. have not passed Kazakhstan by.  Though 
most observers believe that the impact of the current turbulence 
will be limited and not threaten the country's long-term economic 
prospects, there are nevertheless shorter term challenges.  In 
particular, while the banking sector remains stable and the effects 
on the broader economy have been largely muted, the real estate and 
construction sectors have taken a hit.  On a more positive note, the 
global financial turbulence has staunched a liquidity glut in 
Kazakhstan's banking system, forcing a financial readjustment that 
may actually be beneficial.   More problematic for the country, 
perhaps, is a significant uptick in inflation, which is posing 
dilemmas for policymakers and taking on decidedly political 
overtones.  The tenge remains stable, though the Central Bank 
recently had to draw down reserves by several billion dollars to 
support the currency in the face of significant downward pressure. 
End summary. 
 
The Financial Crisis: From Middle America to Kazakh Steppe 
-------------------------- ------------------------------- 
 
2. (SBU) Kazakhstan's banking sector has taken a hit from the 
U.S.-inspired global financial turbulence, but remains stable. 
While Kazakhstan's major banks do have significant exposure to the 
domestic real estate sector, the Chairman of the Financial 
Supervision Agency (FSA), Arman Dunayev, recently told the 
Ambassador that because Kazakhstan does not have a domestic subprime 
mortgage market, the country's only link to the global financial 
crisis is via its banking system's external borrowings.  These 
external borrowings by Kazakhstani banks mushroomed over the past 
two years, attracting substantial notoriety (ref A) and resulting in 
the country's financial system developing a dependence on a 
continuing inflow of liquidity from abroad.  According to most 
informed observers, these borrowings had created an unhealthy 
liquidity glut. 
 
The Banking Sector: How Painful the Moment of Reckoning? 
----------------------- -------------------------------- 
 
3. (SBU) The global financial crisis has dried up global liquidity, 
and interrupted Kazakhstani banks' external borrowing binge.  This 
has helped prevent further aggravation of liquidity-driven 
imbalances in Kazakhstan. As Anvar Saidenov, Chairman of the 
National Bank of Kazakhstan (NBK, the country's central bank), 
stated to the Ambassador on August 15, "we actually wanted to slow 
down the credit activity of the banks, even perhaps the economy 
itself." 
 
4. (U) With Kazakhstani banks suddenly finding themselves unable to 
continue their binge of borrowing from abroad, some questions have 
arisen about their ability to service their external debts.  For 
example, on October 9 Fitch Ratings downgraded the debt of 
Kazakhstan's three leading commercial banks; Moody's followed suit 
three weeks later with six downgrades.  According to the NBK 
statistics, net external borrowings of Kazakhstani banks were, as of 
September, $23.6 billion.  Debt service payments due by the end of 
year were $3.8 billion.  Nevertheless, key actors in the Kazakhstani 
banking sector have sounded reassuring, indicating that the debt 
service payments are not a substantial burden.  Central Bank 
chairman Saidenov has publicly stated that the banks are "capable of 
handling the situation themselves." 
 
5. (SBU) In addition, Magzhan Auezov, Managing Director of 
KazKommertsBank, told the DCM on October 3 that most of the 
Kazakhstani banks' external debts are in the form of syndicated 
loans, not bonds.  Thus, Auezov claimed, their terms can more easily 
be renegotiated.  According to Saidenov, the primary risks appear to 
reside in the smaller banks, not the leaders.  On the other hand, 
FSA Chairman Dunayev told the Ambassador, smaller banks did not 
participate in the external borrowing binge.  In any case, the NBK 
and the FSA are not taking any chances.  In order to strengthen the 
banking system's financial footing, the regulators have raised 
reserve requirements.  "Other countries' central banks are adding 
liquidity; we are taking it out," Dunayev said.  He stressed the 
regulators' resolve to do what is needed to avert a deep banking 
sector crisis: "If something happens," he said, "clearly the NBK 
will have to use gold reserves to help our banks to repay their 
debts." 
 
Construction Sector Hit, Real Estate Market Cooling 
------------------------ -------------------------- 
 
6. (SBU) With securities markets woefully underdeveloped, much of 
 
ASTANA 00003025  002.2 OF 003 
 
 
the banking system's excess liquidity had been pouring into the &
#x000A;domestic real estate market, through both mortgage lending and 
construction financing provided by banks.  In turn, the real estate 
sector, particularly in Astana and Almaty, had been showing worrying 
signs of overheating. 
 
7. (SBU) While the impact of the global crisis on the overall 
Kazakhstani economy has so far been muted, it has hit the real 
estate and construction sectors.  Some Kazakhstani banks have since 
cut back sharply on their mortgage lending, particularly for housing 
developments in the new parts of Astana.  As a result, interest 
rates on (tenge-denominated) mortgages have soared from 14-15% 
before the crisis to 21-22% now.  Reports abound of work on many 
construction sites in Almaty and Astana having been suspended. 
While there are no reports of mass defaults of mortgages, a cooling 
in the real estate market is evident.  Although housing prices in 
Almaty and Astana are still up sharply year-on-year, they currently 
appear to be receding in Almaty and stagnating in Astana. 
 
When It Rains, It Pours...  Inflation Breaks out 
-------------------------- --------------------- 
 
8. (SBU) It is not the banking sector, however, but the inflation 
that is currently capturing Kazakhstani headlines.  With monthly 
inflation soaring from 0.7% in August to 4.4% in October (and 
year-on-year inflation rising in the same period from 9.4% to 
15.3%), the outbreak is significant and attracting a lot of 
attention.  The political ramifications of the uptick are magnified 
by a disproportionate rise in bread prices specifically (ref C) and 
food prices in general.  Despite obvious links to rising wheat 
prices on the world market, the growth in bread prices - and food 
prices overall - is taking on increasingly political overtones.  At 
an October 12 conference, President Nazarbayev stated that "somebody 
is trying to destabilize the economic situation in the country." 
This remark comes in the wake of the government's repeated 
pronouncements blaming monopolies, working in tandem with corrupt 
akims, for the spike in inflation. 
 
9. (SBU) There may, however, be tangible economic roots of the 
rising inflation.  Possible contributors include the effects of the 
mushrooming (pre-August) liquidity glut, fiscal loosening in the 
run-up to the August Parliamentary election, and delayed 
post-election hikes in government-regulated utility tariffs. 
Furthermore, the relative lack of competition in Kazakhstan's 
economy, especially at wholesale level (and particularly in the food 
industry) may be acting as a significant magnifying mechanism for 
external inflationary pressures, a phenomenon quite pronounced in 
the current growth of food prices. 
 
Save the Tenge 
-------------- 
 
10. (SBU) During the recent U.S.-inspired economic turbulence, the 
tenge has remained quite stable against the dollar.  (Note: After 
trading in the 123-126 KZT/$ range in August, the tenge has not 
since ventured outside the 120-122 range.  End note.)  This 
stability, however, belies some substantial downward pressure on the 
tenge, which prompted the NBK to undertake an apparently gargantuan 
effort to support the domestic currency.  Speaking to the DCM, 
Auezov attributed recent pressure on the tenge to two causes.  One 
was a panic sell-off due to the very brief stoppage of the inflow of 
foreign currency into Kazakhstan due to a customs shutdown.  (Note: 
The foreign currency portion of customs shutdown (ref D, E) led to a 
brief panic-buying of dollars by the Kazakhstani public during late 
August and early September, but was resolved within days.  End 
note.)  The second reason, said Auezov, is the end, brought about by 
the American financial crisis, of the dollar-to-tenge carry trade. 
According to Auezov, Morgan Stanley had a tenge-denominated position 
worth $1.2 billion, which it quickly unloaded when the troubles in 
the U.S. began.  The NBK, Auezov added, ended up supporting the 
tenge on the open market, "selling $800 million on a single day." 
(Note: official data supports this.  During the August to September 
period, the NBK's gold and foreign reserves fell from $22.0 billion 
to $18.5 billion.  End Note.)  Dunayev told the Ambassador that if 
the NBK had not stepped in to drain the liquidity, "inflation would 
have been even higher." 
 
Comment 
------- 
 
11. (SBU) With the National (Oil) Fund still flush with 
petrodollars, and foreign reserves still strong, the National Bank 
of Kazakhstan remains in a firm position to ward off any truly 
serious banking system crisis.  In fact, as noted above, the sudden 
drying up of global liquidity may, in the long term, be good for 
Kazakhstan's financial system, by helping to resolve imbalances 
 
ASTANA 00003025  003.2 OF 003 
 
 
driven by the liquidity glut.  Concurrent rising inflation may, in 
the end, prove to be the more turbulent factor.  If it searches for 
a quick fix to the inflation problem, the government could end up 
introducing measures that have little to do with the economics of 
the phenomenon.  The National Bank's steady hand on the monetary 
policy and resolve to control liquidity may itself be sufficient to 
bring the inflation spike under control.  End comment. 
 
ORDWAY

Wikileaks

07ASTANA3011, KAZAKHSTAN: GOVERNMENT CONTINUES CRACKDOWN AGAINST

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Reference ID Created Released Classification Origin
07ASTANA3011 2007-11-06 02:12 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO8610
RR RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHLN RUEHPW RUEHVK RUEHYG
DE RUEHTA #3011/01 3100212
ZNR UUUUU ZZH
R 060212Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1091
INFO RUCNCIS/CIS COLLECTIVE 0289
RUCNCLS/SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHVEN/USMISSION USOSCE 1840
RUEHAST/USOFFICE ALMATY

UNCLAS SECTION 01 OF 02 ASTANA 003011 
 
SIPDIS 
 
DEPARTMENT FOR SCA/CEN (M. O'MARA) 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM KDEM PREL KZ
SUBJECT: KAZAKHSTAN: GOVERNMENT CONTINUES CRACKDOWN AGAINST 
OPPOSITION MEDIA 
 
REF: Astana 2935 
 
ASTANA 00003011  001.2 OF 002 
 
 
1. (SBU) Summary:  Kazakhstani law enforcement initiated a 
harassment campaign last week against four opposition newspapers 
that recently published stories about Rakhat Aliyev that included 
transcripts of recordings of embarrassing telephone conversations 
among high-level government officials.   Four opposition newspapers 
were investigated October 30-31 for purported tax and regulatory 
violations.  Printers refused to print editions of two of the 
papers.  This followed the blockage of four independent media 
websites that began October 18 (reftel). Minister of Culture and 
Information Yermukhamet Yertysbayev told newspaper editors November 
1 that they could resume publication only if they stopped publishing 
materials from Aliyev or related to the transcripts, and must also 
avoid insulting the dignity and honor of President Nazarbayev.  The 
editors agreed, apparently reluctantly, and the papers resumed 
publication.  End summary. 
 
-------------------------------------------- 
GOVERNMENT INTERFERES WITH OPPOSITION PAPERS 
-------------------------------------------- 
 
2. (U) Government agents visited the offices of four opposition 
newspapers (Svoboda Slova, Respublica, Tas Zhargan, and Vzglyad) 
during October 30-31.  In three cases, agents from the financial 
police and tax committee informed the newspapers that they were 
under investigation for breaking the law, hiding financial assets, 
and underpaying taxes.  They attempted to seize financial records 
and questioned newspaper staff.  In a fourth case, fire inspectors 
surveyed one paper's offices and alleged that the offices were in 
violation of the fire code. 
 
3. (U) Representatives of the four opposition newspapers held a 
press conference in Almaty on October 31 to publicize the 
harassment.  The editor-in-chief of Svoboda Slova said five Almaty 
printing houses had refused to print the paper on October 30.  The 
Tas Zhargan representative said their printing house refused to 
print the paper, supposedly because its printing equipment was 
broken, and could not be fixed for 1 1/2 or two months. 
 
4. (SBU) All four said the harassment was related to publication of 
information about Rakhat Aliyev and the release of transcripts of 
recordings of embarrassing telephone conversations between 
high-level government officials.  (Comment:  There appears to be 
little doubt that the source of the audio recordings, which appeared 
on a Russian internet site, is Aliyev.)  In their view, the 
government is panicking about the situation and trying to stop the 
flow of information from Aliyev.  Galina Dyrdina, editor of 
Respublika, said that the government was particularly worried about 
the possible release of new information concerning the February 2006 
murder of opposition leader Altynbek Sarsenbayev.  (Comment: 
Aliyev's suggestion of Nazarbayev's involvement in the Sarsenbayev 
murder, further amplified at this press conference, has likely 
infuriated the GOK.) 
 
--------------------------------------------- -- 
MINISTER TO EDITORS: OBEY ME OR STOP PUBLISHING 
--------------------------------------------- -- 
 
5. (SBU) On November 1, Minister of Information and Culture 
Yertysbayev flew down to Almaty to meet with the newspaper editors 
and the editor of the zonakz.net website, which had been blocked 
within Kazakhstan earlier in the month along with three other 
opposition websites (reftel).   Several of the editors told us in 
confidence that Yertysbayev informed them that if they wished to 
continue working, they must cease publication of all materials from 
"the criminal and murderer Rakhat Aliyev," including the transcripts 
and/or audio files of conversations between high-ranking officials. 
He also demanded that the newspapers not publish materials 
"insulting the honor and dignity of President Nazarbayev." 
 
6. (SBU) The editors argued that only a court could decide whether 
Aliyev was a "criminal and murderer" and that they were also 
printing materials critical of Aliyev and his allegations.  They 
said they feared the demand about not criticizing President 
Nazarbayev would be expanded to other officials.  Yertysbayev said 
that he would not expand his conditions.  In the face of 
Yertysbayev's pressure, the editors agreed to the conditions. In 
return, Yertysbayev promised the government would cease interference 
with the publication of the newspapers.  On November 2, the 
Respublika newspaper was published as usual, and at least one of the 
web sites is again available. 
 
7. (SBU) The day after his meeting with the editors, Yertysbayev 
told the Ambassador during an impromptu encounter in the building 
 
ASTANA 00003011  002.2 OF 002 
 
 
housing Nazarbayev's office that he had had to
"argue hard here" in 
order to get the negotiating authority to offer to get the 
newspapers printed and web sites back online in exchange for 
stopping publication of what he termed "illegal transcripts" of 
intercepted telephone conversations. 
 
------------------------------------ 
OPPOSITION WEBSITES REMAINED BLOCKED 
------------------------------------ 
 
8. (SBU) In the meantime, Kazakhstani Internet users remain unable 
to access three of the four independent/opposition-oriented websites 
that were blocked beginning October 18 (Reftel).  Among the four, 
only zonakz.net was accessible to Kazakhstani users as of November 
5.  On October 31, the Agency for Information and Communications, 
which regulates domain names and other Internet issues in 
Kazakhstan, released a statement indicating that it had suspended 
several Internet sites with the "kz" domain name for violating 
Kazakhstan's regulation requiring such domain name users to have 
servers physically based in Kazakhstan.  The statement said that the 
suspensions, which included the opposition sites www.kub.kz and 
www.geo.kz, were part of a routine investigation and had nothing to 
do with the content of the websites.  The statement also claimed 
that neither the Agency for Information and Communications nor any 
other agency had taken action against non-kz websites.  However, 
while, as noted above, www.zonakz.net is currently accessible, 
www.inkar.info remains blocked. (Note: inkar.info has its server 
abroad.  It is freely accessible from outside Kazakhstan, and 
Kazakhstani Internet users may access it through proxy servers.  In 
addition, the owners of www.kub.kz and www.geo.kz established new 
sites using servers based outside of Kazakhstan, www.kub.info and 
www.geokz.net respectively.  End note.) 
 
------- 
COMMENT 
------- 
 
9. (SBU) Comment: Aliyev is, for now, the big winner in this latest 
round of intra-elite warfare.  The release of damaging accusations 
and audio files (the latter almost certainly from Aliyev) unnerved 
the highest echelons of the government and provoked a targeted 
crackdown on the press that is the most serious since the 2005 
presidential election campaign.  Abroad, the substance of the audio 
files and the resulting government crackdown enhance Aliyev's 
unwarranted credibility as a critic and victim of the regime in 
Kazakhstan.  Aliyev has simultaneously improved his bargaining 
position vis-a-vis President Nazarbayev, and created a temptation he 
knew Nazarbayev would find irresistible to crack down on the media - 
undercutting Kazakhstan's already less-than-stellar reputation for 
media freedom during the final stages of OSCE's consideration of the 
country's bid for the chairmanship.  As was the case in 2005 when 
the opposition press reported on Nazarbayev's involvement in the 
Giffen case, the authorities resorted to high-handed actions to 
close off public access to what they considered a sensitive subject. 
 In neither case, however, was muzzling the press particularly 
effective at limiting knowledge of the situation - nor did it have a 
broader chilling impact on the independent and opposition press that 
continues its sharp criticism of the government on a wide range of 
issues.  End comment. 
 
ORDWAY

Wikileaks

07ASTANA3007, KAZAKHSTAN: DEMARCHE DELIVERED ON FATF GUIDANCE FOR IRAN

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If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASTANA3007.
Reference ID Created Released Classification Origin
07ASTANA3007 2007-11-05 12:05 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO7960
RR RUEHAST
DE RUEHTA #3007 3091205
ZNR UUUUU ZZH
R 051205Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1089
INFO RUEHAST/USOFFICE ALMATY

UNCLAS ASTANA 003007 
 
SIPDIS 
 
DEPARTMENT FOR ISN, T, PASS TO TREASURY 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PARM PREL MNUC ECON KZ
SUBJECT: KAZAKHSTAN: DEMARCHE DELIVERED ON FATF GUIDANCE FOR IRAN 
 
REF: State 149648 
 
Poloff delivered reftel demarche on November 5 to Askar Shokabayev, 
head of the office for Middle East and African Affairs at the 
Kazakhstan Ministry of Foreign Affairs. Shokabayev was noncommittal 
concerning the specific action items in reftel, but agreed to review 
the information from the FATF.  He reiterated that Kazakhstan has 
appealed to Iran to comply with the UN Security Council resolutions 
and cooperate with the International Atomic Energy Agency.  He said 
that Kazakhstan will continue to pursue this position with Iran, and 
is generally supportive of USG diplomatic initiatives on these 
issues. 
 
ORDWAY

Wikileaks

07ASTANA2993, C) DEMARCHE DELIVERED TO KAZAKHSTAN ON INTERPOL

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If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASTANA2993.
Reference ID Created Released Classification Origin
07ASTANA2993 2007-11-02 09:05 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO6257
PP RUEHDBU
DE RUEHTA #2993 3060905
ZNY CCCCC ZZH
P 020905Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1075
INFO RUCNCIS/CIS COLLECTIVE PRIORITY 0288
RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 0013

C O N F I D E N T I A L ASTANA 002993 
 
SIPDIS 
 
SIPDIS 
 
WHA/BSC JANINA SLATTERY AND CAROLINE CROFT, NEA/IR REBECCA 
HUMMEL, S/CT ARNOLD SIERRA, L/LEI HEATHER MCSHAIN 
 
E.O. 12958: DECL: 11/02/2012 
TAGS: PTER AR IR KJUS PREL PTER
SUBJECT: (C) DEMARCHE DELIVERED TO KAZAKHSTAN ON INTERPOL 
RED NOTICES RE AMIA BOMBINGS 
 
REF: STATE 147320 
 
Classified By: AMBASSADOR JOHN ORDWAY, REASONS 1.4 (B) AND (D) 
 
1. (C) Poloff delivered to Murat Tashibayev, Director of the 
International Organizations and Multilateral Cooperation 
Department of the Kazakhstan MFA, reftel demarche on 
supporting Argentina,s request for INTERPOL approval of red 
notices against Iranian officials charged in the AMIA bombing. 
 
2. (C) Tashibayev confirmed that Kazakhstan will be 
represented at the November 5-8 INTERPOL General Assembly in 
Morocco.  He was non-committal regarding our request, but 
promised to relay it to Kazakhstan,s INTERPOL delegation. 
He also asked whether the voting would be by secret ballot. 
Ordway

Wikileaks

07ASTANA2960, KAZAKHSTAN: DEMARCHE DELIVERED ON CANDIDACY OF DAVID WALKER

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If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASTANA2960.
Reference ID Created Released Classification Origin
07ASTANA2960 2007-11-01 04:30 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO4869
RR RUEHAST
DE RUEHTA #2960 3050430
ZNR UUUUU ZZH
R 010430Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1044
INFO RUCNDT/USMISSION USUN NEW YORK 1890
RUEHAST/USOFFICE ALMATY

UNCLAS ASTANA 002960 
 
SIPDIS 
 
DEPARTMENT FOR IO/MPR/SC 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL AORC UNGA UNGA UN KZ
SUBJECT: KAZAKHSTAN: DEMARCHE DELIVERED ON CANDIDACY OF DAVID WALKER 
FOR UN INDEPENDENT AUDIT ADVISORY COMMITTEE 
 
REF: (A) State 146857, (B)State 149678 
 
Poloff delivered reftel demarches and talking points/biography to 
Amanbek Demesinov, director of the international organizations 
section of the Ministry of Foreign Affairs, on October 30. Demesinov 
was unaware of the forthcoming election for the Independent Audit 
Advisory Committee, though he thought it was logical that the United 
States government should have a representative on the committee, 
given our significant financial contributions to the United Nations. 
 Nonetheless, he was unable to offer any commitment on behalf of the 
Government of Kazakhstan.  He reported that he would consult with 
the Kazakhstani delegation in New York on the issue. 
 
ORDWAY

Wikileaks

07ASTANA2958, KAZAKHSTAN WILL SUPPORT CUBA EMBARGO RESOLUTION

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If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASTANA2958.
Reference ID Created Released Classification Origin
07ASTANA2958 2007-11-01 03:31 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO4853
RR RUEHAST
DE RUEHTA #2958 3050331
ZNR UUUUU ZZH
R 010331Z NOV 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1040
INFO RUCNDT/USMISSION USUN NEW YORK 1889
RUEHAST/USOFFICE ALMATY

UNCLAS ASTANA 002958 
 
SIPDIS 
 
DEPARTMENT FOR IO/UNP (J. Mariz) 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD UNGA ETRD PHUM UN KZ
SUBJECT: KAZAKHSTAN WILL SUPPORT CUBA EMBARGO RESOLUTION 
 
REF: State 148506 
 
Poloff delivered reftel demarche to Amanbek Demesinov, director of 
the international organizations section of the Ministry of Foreign 
Affairs, on October 30. Demesinov said that there is virtually no 
chance that Kazakhstan will change its position and oppose the Cuba 
embargo resolution this year.  He was also very unreceptive to the 
idea of Kazakhstan including an explanation of vote expressing 
concern about Cuba's human rights record. 
 
ORDWAY

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