Monthly Archives: March 2008

08ASTANA620, KAZAKHSTAN: ALMATY NOTES, MARCH 10 – MARCH 23, 2008

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Reference ID Created Released Classification Origin
08ASTANA620 2008-03-25 08:20 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO3455
RR RUEHAST
DE RUEHTA #0620/01 0850820
ZNR UUUUU ZZH
R 250820Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2123
INFO RUEHVEN/USMISSION USOSCE 1887
RUEHEK/AMEMBASSY BISHKEK 8252
RUEHNT/AMEMBASSY TASHKENT 8139
RUEHAH/AMEMBASSY ASHGABAT 7309
RUEHDBU/AMEMBASSY DUSHANBE 2340
RUEHMO/AMEMBASSY MOSCOW 1525
RUEHAST/USOFFICE ALMATY 0341

UNCLAS SECTION 01 OF 02 ASTANA 000620 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM PREL KZ
SUBJECT: KAZAKHSTAN: ALMATY NOTES, MARCH 10 - MARCH 23, 2008 
 
1. The "Almaty Notes" series is intended to maintain focus on 
developments in civil society, the media, and the opposition in 
Kazakhstan's "southern capital" following the move of the Embassy to 
Astana. 
 
- NGO's Criticize Fight Against Extremism and Terrorism 
- No Alliance with Aliyev 
- Complaints, Protests Regarding Unfinished Construction 
- Disabled Protecting Their Office 
- Protest Against Ban on Demonstrations 
 
-------------------- -------------------------------- 
NGO's Criticize Fight Against Extremism and Terrorism 
-------------------- -------------------------------- 
 
2.  International Human Rights Bureau head Yevgeniy Zhovtis and 
Almaty Helsinki Committee president Ninel Fokina held a joint press 
conference in Almaty on March 19 to express their concerns over the 
government's tactics in fighting extremism and terrorism.  Fokina 
claimed that the Committee on National Security (KNB), Procurator 
General's Office (PGO), and Interior Ministry are using the fight as 
a pretext to expand their control over civil society.  There is an 
effort, she maintained, to persuade the public that mere affiliation 
with a religious group can be a threat to national security. 
 
3.  Zhovtis and Fokina alleged that there were serious violations of 
both Kazakhstani legislation and international legal principles in 
two recent trials of alleged terrorists and extremists.  On February 
25, 2008, a Shymkent court sentenced 14 Kazakhstani citizens to 
prison terms ranging from 14 to 19 years on charges of organizing a 
terrorist group, promoting terrorism, and planning terrorist acts 
against the KNB.   On December 27, 2007, a Karaganda court sentenced 
29 Kazakhstanis to prison terms ranging from 5 to 7 years for 
inciting social, national and religious hatred and for participating 
in the activities of the banned Hizb ut Tahrir group.   Zhovtis and 
Fokina explained that both these trials were held in camera, with 
neither the defendants' relatives, nor the media, nor NGO's 
permitted to be in attendance.  In the Karaganda case, even the 
defendants themselves were not present when the verdict was handed 
down. 
 
4.  Several relatives of those convicted in the Shymkent trial 
attended the press conference and briefed journalists about details 
of the case.  The relatives alleged that key physical evidence, 
including weapons, computer discs, and leaflets, were planted by the 
KNB.  They maintained that none of the defendants admitted guilt as 
they had done nothing wrong.  Aysara Sugirova, wife of defendant 
Dastanbek Sugirov, claimed that the KNB selected the defendants 
largely because of their appearance: most of them had short beards 
and wore short pants.  Her husband, she insisted, was merely a 
peddler of Islamic literature. 
 
5.  Fokina said that over the past few years, there has been a 
significant increase in criminal cases for religiously-motivated 
extremism and terrorism.  Zhovtis argued that "preventative 
measures" taken by law enforcement against individuals who are not 
truly engaged in terrorist activities -- who may be doing nothing 
more than passing out leaflets -- can actually further radicalize 
such persons. 
 
----------------------- 
No Alliance with Aliyev 
----------------------- 
 
6.  Panoroma weekly reported on March 21 that at a meeting of the 
AytPark discussion club, Azat (formerly True Ak Zhol) leader Bulat 
Abilov claimed that Rakhat Aliyev had tried to communicate with his 
party through "middlemen," who had even offered financial 
assistance.  Abilov, however, ruled out any kind of cooperation or 
alliance between the Kazakhstani opposition and Aliyev. 
 
---------------------- ------------------------------- 
Complaints, Protests Regarding Unfinished Construction 
---------------------- ------------------------------- 
 
7. The co-owners of two multi-family residential buildings in Almaty 
organized a press briefing on March 17.  They told journalists that 
the KazStroy construction company began constructing their 
residences in 2004.  By 2007, one was 90 per cent finished and the 
other one lacked only linkages to utilities.  However, the co-owners 
contended that as of 2008, KazStroy is moribund, and the company's 
management has run off without finishing their homes.  The Almaty 
city administration has failed to come to their assistance. 
 
8. On March 18, approximately 30 Almaty residents who had made 
down-payments for new apartments held a protest rally against the 
 
ASTANA 00000620  002 OF 002 
 
 
construction companies that took their money, but failed to follow 
through on the construction work.  The protesters held up placards 
with slogans including "Provide Our Children with Roofs", 
"Construction Companies Must Be Held Accountable", and "Kazakhstan - 
For the People."  According to the demonstrators, the local 
authorities have not responded t
o their complaints.  They have now 
addressed an appeal to President Nazarbayev, on whom they are 
pinning their final hopes. 
 
-------------------------------- 
Disabled Protecting Their Office 
-------------------------------- 
 
9.  On March 12, a group of disabled people from the Bibi-Ana 
association picketed outside an Almaty municipal court building to 
attract the public's attention to efforts to evict their 
organization from its premises.  Former Almaty mayor Viktor 
Khrapunov sold the building in which Bibi-Ana has it offices several 
years ago.  The new owners want the organization out of this space. 
Current Almaty mayor Imangali Tasmagambetov promised to resolve the 
issue, but has not come through.  The case is now being heard by the 
municipal court. 
 
------------------------------------- 
Protest Against Ban on Demonstrations 
------------------------------------- 
 
10. On March 7, Almaty resident Olga Urazbekova held a one-woman 
protest on Republic Square to draw attention to the government's ban 
on demonstrations at this central Almaty site.  She held up a poster 
with the slogan "Kazakhstan is a Police State."  Urazbekova was 
arrested and taken to a local police station, but was released 
shortly thereafter. 
 
ORDWAY

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08ASTANA618, KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, FEBRUARY 23 – MARCH

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Reference ID Created Released Classification Origin
08ASTANA618 2008-03-24 10:00 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO2599
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0618/01 0841000
ZNR UUUUU ZZH
R 241000Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2121
INFO RUCPCIM/CIMS NTDB WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCNCIS/CIS COLLECTIVE 0457
RUEHAK/AMEMBASSY ANKARA 2151
RUEHBUL/AMEMBASSY KABUL 0388
RUEHNE/AMEMBASSY NEW DELHI 0497
RUEHAST/USOFFICE ALMATY 0338

UNCLAS SECTION 01 OF 02 ASTANA 000618 
 
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, FEBRUARY 23 - MARCH 
7, 2008 
 
 
ASTANA 00000618  001.2 OF 002 
 
 
1.  Summary:  This information is drawn primarily from the 
Kazakhstani local press, and has not been verified for accuracy. 
 
-- Quota for Sugar Imports 
-- Financial Sector News 
-- Results of 2005 EITI Report 
-- KazMunayGas To Explore Zhambyl Block of Caspian Shelf 
-- Kazakhstan-China Joint Venture To Build Gas Pipeline 
 
Quota for Sugar Imports 
----------------------- 
 
2.  The Government of Kazakhstan (GoK) introduced a quota of 47,000 
tons on the import of sugar to be effective through October 1, 2008. 
 According to officials at the Ministry of Agriculture, this 
decision was initiated at the request of local sugar producers 
seeking protection from Russian dumping practices.  In return, 
Kazakhstani sugar producers promised the GoK that they would 
stabilize sugar prices, satisfy local demand, and support domestic 
sugar beet producers. 
 
3.  According to Andrey Bodin, Chairman of the Union of Sugar 
producers of Russia, the decision to create a quota on sugar imports 
directly contradicts the purposes of the newly proposed customs 
union between Russia, Kazakhstan and Belarus. Bodin also claims this 
move contradicts generally existing agreements and trade practices 
amongst CIS countries.  "Any restrictions should be preceded by 
preliminary investigations, and Kazakhstan should have proven the 
need for this quota with its trade partners.  Unfortunately, it has 
not been done.  This decision may impact the prospects of bilateral 
Russian-Kazakhstani trade" concluded Bodin. 
 
Financial Sector News 
--------------------- 
 
4.  Troika Dialog, Russia's No.2 investment company, plans to buy 
100% of the Kazakhstani brokerage firm Almex Asset Management. 
Troika Chairman Ruben Vardanian declined to comment on the price of 
acquisition.  Troika bought the Kazakhstani company from Almex 
Holding Group, which controls Kazakhstan's third-largest bank, Halyk 
Bank.  Dinara Kulibayeva, President Nazarbayev's daughter, and her 
husband Timur Kulibayev, jointly own the Almex Holding Group.  Almex 
Asset Management, set to be soon renamed Troika Dialog Kazakhstan, 
will provide brokerage, investment banking, asset management, 
private equity and other financial services. 
 
5.  Halyk Bank has reshuffled its Board of Directors.  Shareholders 
recently elected to its Board of Directors for three-year terms 
Kamilya Arstanbekova, Askar Yelemessov (the current head of the 
Almex Asset Management), Christof H. Ruhl, Grigoriy Marchenko (the 
CEO of Halyk Bank), Alexander Pavlov, and Kairat Satylganov.  Pavlov 
and Ruhl were elected as independent non-executive directors. 
Yelemessov and Satylganov were elected as non-executive Directors, 
representing the interests of the Almex Holding Group. 
 
6.  According to the official website for the Kazakhstan Stock 
Exchange (KASE), assets of Kazakhstan-based Kazinvestbank(KIB) in 
early 2008 reached 57.936 billion tenge (about $480.6 million), 
which is a 129% increase over their assets of 25.267 billion tenge 
(about $200.9 million) a year ago.  KIB's equity capital totaled 
9.591 billion tenge (approximately $78.3 million) as compared to 
4.706 billion tenge (approximately $37.3 million) in 2006. 
Registered capital increased 88.5% over the last year reaching 8.49 
billion tenge (about $69.3 million).  In 2007, KazInvestBank's net 
profit stood at 936.774 million tenge (around $7.644 million) as 
compared to 115.098 million tenge (approximately $912.8 thousand) in 
2006.  In the summer of 2007, both the EBRD and Citigroup Venture 
Capital International acquired shares in Kazinvestbank. 
 
7.  The board of directors of Alliance Bank elected Yerik 
Sultankulov as the new CEO of Alliance Bank.  Sultankulov replaced 
Dauren Kereybaev, who was appointed deputy CEO of Seimar Alliance 
Financial Corporation, a major stockholder in Alliance Bank. 
 
Results of 2005 EITI Report 
 
ASTANA 00000618  002.2 OF 002 
 
 
--------------------------- 
 
8.  The 2005 Extractive Industries Transparency Initiative (EITI) 
report audited by Deloitte was presented in Astana at the first EITI 
conference on February 29.  Thirty-nine oil and gas companies that 
presented their financial reports declared $2.588 billion in taxes 
paid to Kazakhstan, while the Finance Ministry showed
 $2.596 billion 
of proceeds received.  According to Vice Finance Minister Daulet 
Yergozhin, the difference reflects exchange rate changes and 
incorrect data presented by some companies. 
 
KazMunayGas To Explore Zhambyl Block of Caspian Shelf 
--------------------------------------------- -------- 
 
9.  Kazakhstan's national oil and gas company, KazMunayGas (KMG), 
will explore the Zhambyl Block of the Caspian Shelf, a block with 
120 million tons of oil in probable reserves.  According to Energy 
Minister Sauat Mynbayev, KMG will transfer a 73% stake in the 
project to its subsidiary, KazMunayTeniz, and 27% to the Korean 
National Oil Company. 
 
Kazakhstan-China Joint Venture To Build Gas Pipeline 
--------------------------------------------- ------- 
 
10.  KMG subsidiary KazTransGas and Trans-Asia Gas Pipeline Company 
Ltd, which is affiliated with the China National Petroleum 
Corporation, have established a joint venture, Asian Gas Pipeline 
LLP, to build a Kazakhstan-China gas pipeline.  The first section of 
the pipeline with an annual transit capacity of 40 bcm of gas will 
extend from the Uzbekistan-Kazakhstan border via Shymkent (South 
Kazakhstan) to China's Khorgos.  The second section, 
Beineu-Bozoy-Kyzylorda-Shymkent, will have a 10 bcm annual transit 
capacity. 
 
ORDWAY

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08ASTANA617, KAZAKHSTAN – SCIENCE AND TECHNOLOGY – ADDITIONAL AREAS FOR

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Reference ID Created Released Classification Origin
08ASTANA617 2008-03-21 12:17 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO1355
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0617/01 0811217
ZNR UUUUU ZZH
R 211217Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2118
INFO RUCNCIS/CIS COLLECTIVE 0454

UNCLAS SECTION 01 OF 03 ASTANA 000617 
 
SIPDIS 
 
DEPARTMENT FOR OES/STC, SCA/RA, AND SCA/CEN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TSPL KSCA PREL PGOV KZ
SUBJECT:  KAZAKHSTAN - SCIENCE AND TECHNOLOGY - ADDITIONAL AREAS FOR 
COOPERATION 
 
------- 
Summary 
------- 
 
1.  EST officer's January 20 - February 19 TDY visit to Kazakhstan 
provided a timely opportunity to discuss the Kazakhstani 
government's Science and Technology (S&T) infrastructure, 
particularly in light of continued negotiations on a bilateral 
Science and Technology Agreement.  This is one of a series of four 
cables summarizing EST officer's meetings in Kazakhstan, and focuses 
on additional areas, ministries, and organizations with potential 
for S&T cooperation.  End Summary. 
 
--------------------- 
Ministry of Education 
--------------------- 
 
2.  EST officer met with Mr. Bakhyt Kutubayev, head of the Division 
of Science and Technology Administration, Ministry of Education and 
Science.  Kutubayev explained that the Ministry of Education 
coordinates the arrangement of science and technology activities. 
According to Kutubayev, the ministry already coordinates 36 
international bilateral science and technology focused agreements 
aimed at grants management, joint research, and lab construction. 
Kutubayev described the ministry's coordination with an 
international expert council comprising 19 members (including five 
from the United States).  The ministry uses the advice from the 
council to formulate future strategy, policy, and focus areas. 
Kutubayev stated he would greatly support expanded S&T cooperation 
with the United States.  The Ministry of Education has allotted 
funding for 92 joint research projects during 2007-2009.  Kutubayev 
explained that Kazakhstan is in the process of constructing five 
national labs, two of which will be international labs. Foreign 
experts will be invited to work in the labs and to conduct research 
with the best equipment available.  Kazakhstan also has plans to 
expand and improve laboratories at 10 universities so that they meet 
international standards.  Kutubayev stated he hoped that a bilateral 
S&T agreement would have provisions under which joint research and 
exchanges could be arranged. 
 
------------------------------ 
Ministry of Industry and Trade 
------------------------------ 
 
3.  EST officer met with Kanysh Tuleushin, head of the Division of 
Innovation Policy in the Ministry of Industry and Trade.  Tuleushin 
stated the Ministry of Industry and Trade is a line ministry which 
conducts its own research programs that focus on innovation and 
industrial policy.  (Note: Line ministries identify priority 
investments in their annual infrastructure strategies and asset 
management plans.  End Note.)  Currently, no defined border exists 
between the research areas covered by the Ministry of Education and 
his ministry.  This has caused a problem of competing structures and 
competition for funding between the ministries.  Both ministries are 
tasked with supervising innovation policy.  The Ministry of Industry 
provides grants for research which they have determined have a 
likely success rate at commercialization.  The ministry focuses on 
such areas as metallurgy, machinery, and chemistry, and provides 
grants to university labs, private labs, and labs at other 
ministries. 
 
---------------------------------- 
Samgau: Government Holding Company 
---------------------------------- 
 
4.  On January 25, EST officer met with Marat Nurguzhin, 
vice-chairman of Samgau.  Nurguzhin explained that Samghau was 
created in part to support R&D.  Samgau also focuses on ITC, media, 
and postal services.  Nurguzhin stated Samgau has a budget 
allocation for R&D totaling KZT 20 billion ($166 million) in 
addition to KZT 2 billion ($15 million) set aside for 
commercialization of newly developed products.  He added that Samgau 
is currently cooperating with the Civilian Research Development Fund 
(CRDF) as well as American companies including Microsoft, Sysco, 
Motorola, and Hughes. Much of this ITC cooperation is done through 
Samgau's subsidiary, Kazakhsatnet. For more information on 
Kazakhsatnet, EST officer met with its president, Assan Dossayev. 
Dossayev explained Kazakhsatnet's mission to expand internet access 
and e-government across Kazakhstan and his desire to include 
international private companies in the process. Kazakhsatnet is 
currently doing research in the area of cryptography. 
 
----------------------- 
Kazakhstan Science Fund 
----------------------- 
 
5.  EST officer also met with Assel Nussupova, chief executive 
officer of the Kazakhstan Science Fund (KSF).  KSF is a branch under 
Samgau and is headquartered in Astana.  The stated purpose of KSF is 
to fund higher risk research through loans.  KSF has a budget of KZT 
 
ASTANA 00000617  002 OF 003 
 
 
20 billion ($165 million).  Nussupova explained that KSF provides 
zero interest loans to researchers to conduct research that has a 
commercial focus.  Under the current system, researchers applying to 
KSF must rely on collateral to receive loans. Nussupova stated this 
has been problematic because many of the researchers work in 
government-owned labs and thus have no collateral for loa
ns. 
Nussupova stated that the KSF is attempting to move towards a grants 
system.  She also mentioned that if joint funding were an option for 
a particular project, it would be possible to waive the collateral 
requirement. 
 
------------------------------- 
Lessons from CRDF in Kazakhstan 
------------------------------- 
 
6.  EST officer met with Kanat Shakenov, director of CRDF's branch 
office in Astana.  Shakenov stated that the CRDF office was recently 
opened in 2007 and plans to have three employees in Astana and two 
in Almaty.  Shakenov said that CRDF has had tax problems, despite 
having taxation waiver status.  According to Shakenov, the 
government still tries to tax equipment originating from CRDF if 
transferred to a Kazakhstani entity through a third party.  He said 
that on a number of occasions the government has tried to tax the 
shipping company when equipment was being transferred.  In every 
case, CRDF was able to maintain its tax free status, but has had 
numerous battles with the Kazakhstani taxation bureaucracy. 
Shakenov believes that international cooperation is not a priority 
for the short-staffed and underpaid bureaucrats in ministries.  He 
did not have a very high opinion of the KSF because of its 
collateral requirement. 
 
----------------------- ------------------- 
International Science and Technology Center 
----------------------- ------------------- 
 
7.  EST officer met with Natalia Tomarovskaya, head of the 
Kazakhstan branch office of the International Science and Technology 
Center (ISTC), which is located in Almaty. Tomarovskaya stated ISTC 
has a budget of around $65 million and has partnered in the past 
with USDA and DOE.  Although the organization has a tax waiver in 
place, ISTC continues to have tax issues with the Kazakhstani Tax 
Committee. Occasionally ISTC runs into problems when using third 
parties, but has been able to get the fees refunded. Tomarovskaya 
noted that initially the United States contributed to the funding of 
ISTC and she inquired as to why the USG has terminated its funding. 
Tomarovskaya was hopeful a bilateral S&T agreement would increase 
American involvement in the region and offered to help by including 
American agencies in some of the proposals. 
 
----------------------------- -------------------------- 
National Center for Scientific and Technical Information 
----------------------------- -------------------------- 
 
8.  EST officer met with Yerbol Suleymenov, director-general of the 
National Center for Scientific and Technical Information, 
headquartered in Almaty.  Suleymenov described the center as an 
analytical agency which develops S&T recommendations for the 
government.  Another task of the center is to review projects which 
are submitted to the government for funding.  Suleymenov stated that 
the center coordinated the international team of experts currently 
reviewing the status of S&T in Kazakhstan.  He added that his center 
currently has a cooperation agreement with the American Association 
for the Advancement of Sciences (AAAS), and is hoping to sign an 
agreement with the National Science Foundation (NSF) to understand 
how NSF conducts its quantitative reports on the status of science 
and technology.  Suleymenov stated that although his center does not 
supervise research, he can see where a bilateral S&T agreement would 
be highly beneficial to Kazakhstan and hopes it will strengthen ties 
with the American scientific community. 
 
------------------------ 
National Innovation Fund 
------------------------ 
 
9.  EST officer met with Nurbek Rayev, chairman of the National 
Innovation Fund (NIF), which is headquartered in Almaty.  Rayev 
described the NIF as a state-owned, venture capital institution 
interested in investing in high-tech companies in Kazakhstan.  The 
NIF is currently working on a project with the National Technical 
University to establish a techno park to conduct innovative research 
in ITC that will eventually be able to commercialize.  Although the 
NIF may be a partner in future cooperation with the U.S., it would 
be partnered through another Kazakh organization. 
 
----------------- 
KazEngElectronics 
----------------- 
 
10.  On February 12, EST officer met with Viktor Adamov, 
director-general of KazEngElectronics (KEE), in Almaty.  Adamov 
 
ASTANA 00000617  003 OF 003 
 
 
stated that the main activities of KEE are not scientific, though 
research is conducted on radio-electronics and industrial projects. 
KEE is more focused on commercialization of radio-electronic 
products than R&D. Adamov stated that in the past, KEE received 
funding for R&D but has not had such funding for two years. 
 
------------------- 
Academy of Sciences 
------------------- 
 
11.  EST officer met with Dr. Murat Zhurinov, president of the 
Academy of Sciences, located in Almaty.  Currently, Zhurinov is on 
the Science Council which advises the President and Prime Minister 
on science issues.  Zhurinov stated that the members of the academy 
include all directors of research institutions and universities in 
Kazakhstan. He said that once a bilateral S&T agreement is 
finalized, he would be interested in concluding MOU's with AAAS, 
NSF, and the National Academy of Sciences (NAS) as a means to 
increase communication and possible cooperation.  Zhurinov also 
lobbied for the establishment of a Kazakh-American University in 
Kazakhstan similar to American universities in Europe, though this 
would not be covered under the S&T Agreement. 
 
------- 
Comment 
------- 
 
12.  An interesting aspect to the Kazakhstani S&T scene is existence 
of government-owned joint stock companies which play a vital role in 
R&D.  These JSC's are assigned to work on specific areas of R&D and 
could be valuable partners for future R&D collaboration.  End 
Comment. 
 
ORDWAY

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08ASTANA616, KAZAKHSTAN – SCIENCE AND TECHNOLOGY – NUCLEAR TECHNOLOGY

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Reference ID Created Released Classification Origin
08ASTANA616 2008-03-21 11:58 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO1336
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0616/01 0811158
ZNR UUUUU ZZH
R 211158Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2115
INFO RUCNCIS/CIS COLLECTIVE 0451

UNCLAS SECTION 01 OF 03 ASTANA 000616 
 
SIPDIS 
 
DEPARTMENT FOR OES/STC, SCA/RA, AND SCA/CEN 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TSPL EAGR KSCA PREL PGOV KZ
SUBJECT:  KAZAKHSTAN - SCIENCE AND TECHNOLOGY - NUCLEAR TECHNOLOGY 
AND NATURAL RESOURCES 
 
------- 
SUMMARY 
------- 
 
1. (U) EST officer's January 20 - February 19 TDY visit to 
Kazakhstan provided a timely opportunity to discuss the Kazakhstani 
government's science and technology (S&T) infrastructure, 
particularly in light of continued negotiations on a bilateral 
Science and Technology Agreement.  This cable focuses on nuclear 
technology and natural resources issues.  It is one of a series of 
four cables summarizing EST officer's meetings in Kazakhstan.  End 
Summary. 
 
-------------- ------------------------- 
MINISTRY OF ENERGY AND MINERAL RESOURCES 
-------------- ------------------------- 
 
2. (SBU) EST officer met with Yevgeniy Ryaskov, deputy head of the 
Department of Technological Development and State Asset Management 
at the Ministry of Energy and Mineral Resources.  Ryaskov stated 
that the Ministry of Energy coordinates research through its 
subsidiary organizations. These subsidiaries include Kazatomprom, 
which conducts applied research into nuclear materials, and the 
National Nuclear Center of Kazakhstan (NNC), which focuses on 
non-proliferation, seismic issues, and nuclear energy issues. 
Ryaskov stated the NNC currently cooperates with Los Alamos national 
labs and has a number of cooperation agreements with the U.S. 
Department of Defense and the U.S. Department of Energy.  This 
cooperation includes management and security of the Polygon nuclear 
test site, cooperation on the decommissioning of the BN-350 reactor 
and collaboration on seismic statistics. Ryaskov stated past 
cooperation has been very helpful and he would like to see it 
expanded.  The ministry is in the process of establishing a research 
site for nuclear medicine and Ryaskov expressed interest in working 
with the National Institutes of Health.  Ryaskov added that 
Kazakhstan plans to build a number of new power stations. Kazakhstan 
would be interested in cooperation focused on personnel training as 
well as applied nuclear research. 
 
3. (SBU) Following the meeting with Ryaskov, EST officer met with 
Sergei Berezin, Head of the Co-ordination and Analysis Department, 
National Nuclear Center of Kazakhstan (NNC).  Berezin said that the 
NNC currently has over 2000 employees of which 403 are of the PhD 
level and 26 are of the post-doctorate level. Berezin claimed that 
in a recent assessment of all research centers in Kazakhstan, the 
NNC was the most advanced and well equipped.  According to Berezhin, 
the NNC has not benefited much from the Bolashak scholars program, 
but there are plans to send 40 students to study abroad who will 
return to work at the NNC.  Berezin stated cooperation is good with 
the Department of Energy, Nuclear Regulatory Committee and the 
Department of Defense.  Berezin would like to see more university 
cooperation including visiting professors, lecturers and 
internships. 
 
---------------------------- 
INSTITUTE OF NUCLEAR PHYSICS 
---------------------------- 
 
4. (SBU) EST officer met with Adil Tuleshev, Director of the 
Institute of Nuclear Physics (INP).  The INP is located just outside 
Almaty.  Tuleshev stated his institute is under the direction of the 
NNC.  The institute focuses on nuclear physics, radiation, solid 
state physics, applied nuclear physics, accelerator technologies, 
environmental issues, and reactor investigations.  The center has 
cooperated in the past through CRDF and according to Tuleshev has 
had strong contacts with Los Alamos, Argonne National Labs, DOE, and 
Halliburton.  He also said that the INP is currently constructing a 
center for nuclear medicine and aspires to sell nuclear medicine on 
the global market. The INP has been allocated $60 million for this 
project.  Tuleshev expressed his dissatisfaction with the 
Kazakhstani Tax Committee, noting that when INP cooperated with CRDF 
on the exchange of a particle accelerator, the accelerator was held 
up at the border because of tax problems.  Tuleshev was glad to hear 
that a bilateral S&T agreement could overcome future tax issues. 
Tuleshev was particularly interested in expanding cooperation with 
the DOE and beginning cooperation with NIH. 
 
5. (SBU) Following the meeting, Tuleshev took EST officer on a tour 
of the facilities where Tuleshev showed the WWR-K Highly Enriched 
Uranium test reactor as well as a number of labs including some of 
those recently constructed for the Nuclear Medicine Center and an 
accelerator.  The facilities maintained a high-level security with 
military guards. 
 
---------- ---------------------------------- 
CENTER FOR EARTH SCIENCES, METALLURGY AND ORE 
---------- ---------------------------------- 
 
 
ASTANA 00000616  002 OF 003 
 
 
6. (SBU) EST officer met with Nuraly Bekturganov, Director-General 
of the Center for Earth Sciences, which is headquartered in Almaty. 
Bekturganov stated the center is in charge of seven institutions 
covering the fields of
 geology, hydrology, geography, 
nanotechnology, testing of technology, renewable energy, and 
metallurgy and mining.  In the past, the center was part of the 
Ministry of Education, but after restructuring is now considered a 
government-owned joint stock company which reports to Especca, a 
government holding company.  According to Bekturganov, the center 
was granted $2 million to begin a research program on nanotechnology 
and $500,000 to research renewable energy, including solar, wind, 
hydro, and bio-energy. Although Bekturganov expressed his dismay, 
saying that these amounts were not adequate to begin such a program, 
he was hopeful that if the center were to establish partnerships 
with the U.S., it could receive more funding.  In Bekturganov's 
opinion, possible areas for cooperation include nano-technology, 
metallurgy, uranium extraction, and the copper industry. 
Bekturganov also mentioned the Managesa "cosmic rays station" 
located near the Baikinor Cosmodome.  Bekturganov would like to see 
NASA and the European Space Agency (ESA) cooperate in this effort to 
form an international cosmic ray station. 
 
------------------- 
EURASIAN UNIVERSITY 
------------------- 
 
7. (SBU) EST officer met with Dr. Askar Zhussupbekov, President of 
Eurasia University in Astana.  Zhussupbekov was very interested in 
future cooperation with U.S. universities.  He stated that Eurasian 
University currently has a joint degree program with the University 
of New Mexico and would like to expand this program to other 
universities.  Zhussupbekov noted that Eurasia University is one of 
two universities in Kazakhstan that is internationally accredited 
with a three-tier western degree structure (BA, MA, PhD). 
Zhussupbekov expressed interest in cooperation in the fields of 
physics, math, biology, chemistry, humanities, Turkic history, 
economics, and nuclear-track research.  Zhussupbekov introduced EST 
officer to Kazbek Baktybekov, Vice-Rector of Research, who showed 
the particle accelerator the university procured last year. 
 
---------- ------------------------ 
KAZAKH-BRITISH TECHNICAL UNIVERSITY 
---------- ------------------------ 
 
8. (SBU) EST officer met with Professor Baigunchekov, assistant to 
the Rector of the Kazakh-British Technical University (KBTU). The 
university is located in Almaty in the old Supreme Soviet of the 
Kazakhstan SSR.  Founded in 2002 as a joint venture with Great 
Britain, the university issues western-modeled degrees and has over 
1500 students. The major departments of the university are 
economics, ITC, and energy.  According to Baigunchekov, KBTU 
cooperates extensively with several universities in Great Britain, 
including the London School of Economics, Imperial College, and 
Cambridge University. The bulk of the university's research is 
conducted via commissioned grants from the Ministry of Education and 
Ministry of Industry and Trade. KazMuniaGas (KMG) also provides 
substantial funding through contracts for research in the oil and 
gas sector.  KMG's main interest areas include boring, exploring, 
processing, and collecting oil and gas. Baigunchekov stated he is 
very interested in future cooperation with U. S. universities and 
experts. 
 
------------------------------------ 
KAZAKH NATIONAL TECHNICAL UNIVERSITY 
------------------------------------ 
 
9. (SBU) EST officer met with Dr. Malis Absametov, Vice-Rector for 
Research at the Kazakh National Technical University (NTU) in 
Almaty.  Absametov stated that the university's priority areas of 
teaching and study include mining, metallurgy, geology, energy, ITC, 
machinery, and ecology.  The university has over 18,000 students and 
a staff of over 1,000.  According to Absametov, the university is 
currently working with the National Innovation Fund to establish an 
ITC park outside Almaty. Absametov stated that NTU has very strong 
cooperative ties with the University of Colorado, MIT, and Stanford. 
 NTU is also engaged in sea floor mapping of the Aral and Caspian 
Seas; as a landlocked country, Kazakhstan would welcome additional 
cooperation on related issues. Absametov is interested in further 
cooperation with U.S. universities. 
 
------------------------- 
OTHER UNVERSITIES VISITED 
------------------------- 
 
10. (SBU) EST officer visited Karaganda State Technical University, 
E.A. Buketov Karaganda State University, and Al-Farabi University. 
Each of these universities had limited contact with U.S. 
researchers.  The reaction to possible cooperation was positive. 
 
ASTANA 00000616  003 OF 003 
 
 
There was mention in Karaganda about both universities participating 
in the creation of a research center focused on coal gasification. 
 
------- 
COMMENT 
------- 
 
11. (SBU) In the nuclear sector, Kazakhstan already has a number of 
established contacts with the Department of Energy, Department of 
Defense, and the Nuclear Regulatory Committee.  As Kazakhstan seeks 
to expand into other areas of nuclear science, namely nuclear 
medicine, it would be worthwhile to foster contacts with the 
National Institutes of Health and the National Science Fund, as both 
sides could potentially benefit from additional collaborative 
research projects. 
 
ORDWAY

Wikileaks

08ASTANA615, KAZAKHSTAN – SCIENCE AND TECHNOLOGY – BIOTECH AND

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Reference ID Created Released Classification Origin
08ASTANA615 2008-03-21 11:57 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO1333
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0615/01 0811157
ZNR UUUUU ZZH
R 211157Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2112
INFO RUCNCIS/CIS COLLECTIVE 0448

UNCLAS SECTION 01 OF 03 ASTANA 000615 
 
SIPDIS 
 
DEPARTMENT FOR OES/STC, SCA/RA, AND SCA/CEN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TSPL EAGR KSCA PREL PGOV KZ
SUBJECT:  KAZAKHSTAN - SCIENCE AND TECHNOLOGY - BIOTECH AND 
AGRICULTURE 
 
------- 
Summary 
------- 
 
1.  EST Officer's January 20 - February 19 TDY visit to Kazakhstan 
provided a timely opportunity to discuss the Kazakhstani 
government's Science and Technology (S&T) infrastructure, 
particularly in light of continued negotiations on a bilateral 
Science and Technology Agreement.  This cable focuses on 
biotechnology and agriculture and is one of a series of four cables 
summarizing EST officer's meetings in Kazakhstan.  End Summary. 
 
----------------------------- 
National Biotechnology Center 
----------------------------- 
 
2.  EST officer met with Kasym Mukanov, Deputy Director of National 
Biotechnology Center (NBC) in Astana.  Mukanov stated the NBC 
currently has 700 employees, 90 percent of whom are researchers and 
scientists.  The NBC focuses on three areas: biotechnology, avian 
influenza and bio-chem security. He said that the NBC is currently 
cooperating internationally with U.S. universities including Auburn, 
Texas A&M, UC Davis, and Rutgers. The NBC is currently allocated $1 
million to conduct international cooperation and this allotment 
should grow in the future. The NBC has allotted $100,000 for 
bilateral cooperation with each university.  Mukanov stated that the 
NBC also currently cooperates internationally with Japan, France, 
Russia, and Israel.  The three main aims of the NBC are competitive 
research, training of personnel, and deepening international 
cooperation.  Mukanov said he would like to see more visiting 
professors and lecturers in Kazakhstan. Currently the NBC receives 
13 per year.  The NBC will also build a new biotechnical campus 60 
km outside of Astana.  This center will have 27 state-of-the-art 
laboratories and an onsite hotel for visiting researchers.  The labs 
will meet the international standards of security (BSC-2) and will 
meet the GLP (Good Labs Practice) standard. 
 
3.  Mukanov stated that NBC's overall research focus includes 
biotechnology for agriculture, veterinary medicine, medical 
biotechnology, food processing and what was termed as 
"bio-preservation," or cataloging bio-materials.  Another NBC focus 
is producing new strands of agricultural products that can be 
sustained in the cold and harsh climate of Kazakhstan's Steppe. Thus 
far the NBC has produced new strains of rice and wheat which are 
currently in the production phases in Kazakhstan.  Mukanov stated 
these new strains were not Genetically Modified Organisms (GMO's) 
but were instead created through "advanced cross-pollination 
techniques focused on select trait isolation."  Mukanov mentioned 
that GMO's have not been accepted in Kazakhstan and he was unsure if 
they would be.  In the field of veterinary medicine, Mukanov stated 
the NBC has created 26 new vaccines and 28 diagnosis medicines.  He 
also claimed the NBC has created a vaccine for avian influenza. 
(Note: This claim was not confirmed. End Note.) The NBC's medical 
biotechnology research is focused on treatments for cancer, 
tuberculosis, and diabetes, as well as eye and heart disease.  The 
NBC has developed a strand of microorganism that can destroy oil in 
soil or water. Mukanov said that the strand has been tested in an 
area outside of Karaganda, Kazakhstan, after an oil leak had 
occurred. This microorganism was used on three hectares of land and 
was successful at cleaning up the spill.  Other areas the NBC is 
focusing on include food processing, dietary supplements and new 
breeds of yeast.  The NBC is also tasked with bio-resource 
preservation. The NBC is in the process of collecting bio-organisms, 
plants, and animals to be kept as part of a record.  Mukanov was 
very interested in potential future cooperation with additional U.S. 
universities and welcomes cooperation with U.S. technical agencies. 
 
 
------------------------------ 
Center for Biological Research 
------------------------------ 
 
4.  EST officer met with Amangeldy Sadanov, Director General of the 
Center for Biological Research (CBR) in Almaty, as well as with the 
directors of the CBR's subsidiary institutions.  The CBR is 
headquartered just outside Almaty.  Sadanov stated that the CBR was 
established in 2004 as a public-private partnership that reports to 
the Ministry of Education and Science.  The CBR consists of nine 
institutes and two branch offices covering such topics as molecular 
biology and chemistry, genetics, psychology, physiology of humans 
and animals, microbiology, virology, zoology, botany, bio-control, 
and pre-clinical testing. When asked about overlaps of subject areas 
with the Ministry of Agriculture, Sadanov said that although they 
may cover similar subject areas the research performed is different. 
 The CBR only works directly with the Ministry of Agriculture when 
contracted to do so.  Sadanov stated that the CBR employs 1500 
researchers in total, of whom 97 are post-doctoral, 500 PhD's, and 
the rest researchers. 
 
5.  For funding, Sadinov stated that each institution must apply to 
 
ASTANA 00000615  002 OF 003 &#x000
A; 
 
the CBR Committee to have its research proposals evaluated and 
rated.  This standard applies to applied research, as basic research 
receives a continued base of funding.  Another source of funding for 
the institutions is through contracting work for other ministries 
and private companies.  With this method, an MOU can be signed at 
any level of the CBR structure and still be valid within the CBR 
structure.  Sadinov claimed government funding for the CBR has been 
increasing, though he was reluctant to discuss actual numbers. 
 
6.  Current international partners of the CBR include Russia, 
Kyrgyzstan, Uzbekistan, Switzerland, the Netherlands, Hungary, and 
Turkey.  The CBR plans to send researchers on a seven month study 
tour to the United States sometime later this year.  Sadanov stated 
the CBR has been allocated $50 million annually for international 
cooperative research and was granted an additional $50 million for 
this year.  Sadinov emphasized his support for international 
cooperation and was hopeful a bilateral S&T  agreement will lead to 
greater cooperation with the U.S. on science and technology issues. 
 
 
7. Institute directors asked EST officer for assistance on two 
issues.  One director understood that USDA had some money set aside 
specifically for Kazakhstan and wanted to know the status, and 
another director asked for assistance in finding a partner for a 
project on "virus free potatoes."  He claimed that the International 
Science and Technology Center would provide his institution with 
$400 million in funding if he could find an adequate American 
partner for this research. EST officer stated he would relay both 
messages directly to USDA. 
 
-------------------------------- 
Kazakh Agro-technical University 
-------------------------------- 
 
8. EST officer met with Aitbay Bulashev, President of the Kazakh 
Agro-technical University; Bazarkhan Rustembayev, Vice-Rector for 
Science; and Sara Kitaibekova, head of the university's 
international relations department.  The university is located in 
Astana.  The university currently has 6600 full time students. 
Bulashev said that every agrotech center in Kazakhstan has at least 
one graduate of his school.  He also claimed that the university is 
responsible for Kazakhstan's strength in agriculture. According to 
Bulashev, production of solid wheat exports to Europe had been 
growing steadily every year, thanks in part to the training of this 
university.  Other than agriculture, the university has 35 research 
areas.  Bulashev has set the goal to fully switch to the Western 
academic model by 2011.  He noted that his university has had strong 
cooperation with a number of German universities.  Through this 
partnership, students studying in Germany and Kazakhstan are 
eligible to receive a degree from both the German and Kazakhstani 
institutions.  Bulashev said that the Department of Agriculture has 
made plans to move the university 60 km outside Astana, where it 
will be part of a newly-established agro-innovation center. 
Following the meeting with Bulashev, Kitaibekova showed EST officer 
the university's labs.  Kitaibekova stated that the university 
invested heavily in equipment, but one problem is that the 
researchers have had little or no training on it. Thus, in most labs 
the new equipment sits idle and covered. 
 
--------------------- 
KazakhAgroInnovations 
--------------------- 
 
9. The meetings at Kazakh Agro-technical University led to a meeting 
in Astana with Myrzageldy Abdraimov, Vice President of 
KazAgroInnovations.  Abdraimov stated that KazAgroInnovations(KAI) 
manages all agriculture sciences in Kazakhstan.  KAI manages 60 
institutions and two research centers with a goal of 
commercialization of agricultural research.  Abdraimov believes that 
Kazakhstan needs not only to borrow technologies from abroad but 
also to adapt them to the local environment.  He sees future 
cooperation as a means to improve the training of researchers on new 
equipment purchases.  KAI's focus areas include biofuels, clean 
production, waste management, environmental protection, and a gene 
exchange program.  Abdraimov also described ongoing cooperation with 
the U.S. Department of Agriculture under which KEI sent 35 
researchers to the United States to work with American counterparts. 
 At the conclusion of the meeting, Abdraimov arranged a brief 
meeting for EST officer with the Minister of Agriculture, Berek 
Ospanov.  Ospanov strongly supports cooperation with the United 
States and praised the S&T strength of the U.S. 
 
10. EST officer met with Dr. Bayan Alimgaznova, head of the division 
of Agriculture Science, Education and Innovation, Ministry of 
Agriculture.  Alimgaznova explained that her department is 
responsible for setting a strategy for agro-science and education 
development on a three-year basis. Alimgaznova stated that 15 
percent of the Bolashak scholars enter into the agro-sciences and 
that this program has greatly helped the agro-sciences in 
Kazakhstan. 
 
ASTANA 00000615  003 OF 003 
 
 
 
------- 
Comment 
------- 
 
11. The agriculture sector is a major part of the Kazakhstani 
economy and significant investment has been made in the agricultural 
sciences as well as biotechnology.  As one of the successor states 
to the USSR, Kazakhstan inherited a number of bio-technological 
researchers and centers which the Kazakhstanis hope to capitalize 
on.  When a bilateral S&T agreement is concluded, it would be highly 
beneficial for USDA, NSF, EPA as well as any other agencies that 
have significant interests in agro-biotechnology to consider working 
with Kazakhstani scientists.  End Comment. 
 
ORDWAY

Wikileaks

08ASTANA614, KAZAKHSTAN – SCIENCE AND TECHNOLOGY COOPERATION OVERVIEW

WikiLeaks Link

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Reference ID Created Released Classification Origin
08ASTANA614 2008-03-21 10:03 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO1276
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0614/01 0811003
ZNR UUUUU ZZH
R 211003Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2110
INFO RUCNCIS/CIS COLLECTIVE 0446

UNCLAS SECTION 01 OF 02 ASTANA 000614 
 
SIPDIS 
 
DEPARTMENT FOR OES/STC, SCA/RA, AND SCA/CEN 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TSPL PREL PGOV KSCA KZ
SUBJECT:  KAZAKHSTAN - SCIENCE AND TECHNOLOGY COOPERATION OVERVIEW 
 
------- 
Summary 
------- 
 
1. (SBU) EST Officer's January 20 - February 19 TDY visit to 
Kazakhstan provided a timely opportunity to discuss the Kazakhstani 
government's science and technology (S&T) infrastructure, 
particularly in light of continued negotiations on a bilateral 
Science and Technology Agreement.  Kazakhstani officials expressed a 
strong desire to continue and expand cooperation with the U.S. on 
S&T issues.  Kazakhstan is interested in cooperating with the U.S. 
on fundamental sciences as well as applied areas, including 
information technology and communications (ITC), oil and gas, 
biotechnology, nanotechnology, atomic and nuclear research, space, 
health, and metallurgy and mining.  The Kazakhstanis appear to be 
strongest in the biotechnology, oil and gas, and nuclear fields as 
these receive broad government support.  Kazakhstani officials made 
it clear they would be interested in broad U.S. representation when 
the first Joint Committee Meeting (JCM) is held to clarify the 
mechanisms on how to make a bilateral S&T agreement work to its 
fullest potential.  This cable is the first of a series of four 
cables summarizing EST officer's meetings in Kazakhstan.  End 
Summary. 
 
----------------------- 
Bilateral S&T Agreement 
----------------------- 
 
2. (SBU) The U.S. and Kazakhstan have been discussing a bilateral 
Science and Technology Agreement since late 2003.  The two sides 
largely agreed some time ago on the text of the S&T Agreement; 
however, the Kazakhstanis refused to accept tax exemption language, 
as required by U.S. law, which prohibits the taxation of foreign 
assistance.  In preparation for Prime Minister Masimov's March visit 
to Washington (which was ultimately cancelled), the Ministry of 
Foreign Affairs appeared to have persuaded the other relevant 
ministries to reverse course and agree to incorporate a tax 
exemption into the S&T Agreement.  The Kazakhstanis are optimistic 
that the S&T Agreement will thus be ready for signature by the 
Summer of 2008. 
 
------------------------ 
R&D Policy in Kazakhstan 
------------------------ 
 
3. (SBU) Kazakhstani research and development (R&D) goals include 
the diversification of Kazakhstan's economy, the development of high 
tech basic industry, and an increase in research expertise.  Basic 
research areas of focus include mathematics, physics, biology, and 
chemistry.  Kazakhstani officials hope to increase the number of 
students attending U.S. universities as part of the country's effort 
to strengthen its basic research sector.  The Kazakhstani government 
established the Bolashak (Future) Program in the 1990's which 
currently sends 3000 students per year to study abroad at foreign 
universities.  A large percentage of Bolashak students go to the 
U.S., where they study a wide range of topics, from the sciences to 
finance. Approximately two percent of the national budget has been 
committed to R&D. 
 
4. (SBU) Kazakhstan has established a Science Development Program 
for 2007-2012. The aims of the program include: upgrading research 
infrastructure; training highly qualified research and engineering 
personnel; increased R&D funding, including private investment; 
improvement of the regulatory framework for R&D activities; and 
building an information environment favorable for R&D. 
 
5. (SBU) In order to upgrade infrastructure, a network of five 
national research labs for collective use and 15 engineering labs 
will be set up at local universities.  They will be fully equipped 
and meet best international standards.  Universities will set up and 
develop advisory centers for small- and medium-sized enterprises 
(SME's), centers of advanced research, technology transfer 
departments, student development labs, and small innovation 
enterprises to produce new types of products.  By 2012, the 
government plans to upgrade material and technical resources of all 
state research centers and research institutes. 
 
6. (SBU) Another important aspect in Kazakhstan's Science and 
Technology Development Program is the training of highly qualified 
research and engineering personnel. Kazakhstan's aim is to train 
young people in research and engineering professions that are in 
line with national priorities in R&D and industrial and innovation 
development.  Kazakhstan also hopes to recruit local and foreign 
research and engineering personnel to work in new national research 
labs and design and development bureaus. An additional facet of 
Kazakhstan's S&T development includes retraining and continued 
professional development of specialists in a number of new 
functional directions and research areas, including 
commercialization of research products. 
 
ASTANA 00000614  002 OF 002 
 
 
 
7. (SBU) The government will provide targeted and selective funding 
for promising research projects which will be administered by the 
Ministry of Education and Science, which will support fu
ndamental 
and applied research, and the Science Fund, which will support 
initiative and abstract applied research. The national research 
system, which has been mainly funded by the government, is be 
diversified through private co-financing. To attract private 
investments, the Science Fund, or the Ministry of Education as 
national budget program administrator, will call for proposals from 
local enterprises interested in research products.  The winning 
company will provide 50 percent funding for the project chosen. The 
Science Fund's share of all governmental budget allocations for 
development will be increased up to 25 percent by 2010. The total 
budget of the Science Development Program in 2007-2012 is KZT 44 
billion ($361.5 million). 
 
------- 
Comment 
------- 
 
8. (SBU) Kazakhstan has invested a significant amount of money into 
the development of a strong S&T infrastructure and has plans to 
increase investment in the near future. It was readily apparent in a 
number of meetings that Kazakhstani officials have a strong desire 
to use the petro-dollar windfall to diversify Kazakhstan's economy 
by strengthening its science and technology sector. In many ways, 
however, there is still a strong disconnect between education and 
research, a legacy of the USSR.  Upon independence, Kazakhstan did 
inherit strong agro-biotechnology and nuclear industries. These 
areas are where Kazakhstan shows the greatest potential for 
international cooperation, not only because of their strong funding, 
but also because of the large number of Soviet trained specialists 
who work in these centers.  Because of Kazakhstan's long term goals, 
the fields of ITC, oil and gas, nanotechnology, space, health, and 
metallurgy and mining will also play important roles and may be 
other avenues for future S&T cooperation.  End Comment. 
 
ORDWAY

Wikileaks

08ASTANA611, KAZAKHSTAN – SHYMKENT IS YOUNG, MUSLIM, AND GROWING FAST

WikiLeaks Link

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
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Reference ID Created Released Classification Origin
08ASTANA611 2008-03-21 05:37 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO1049
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0611/01 0810537
ZNR UUUUU ZZH
R 210537Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2099
INFO RUCNCIS/CIS COLLECTIVE 0440
RUEHC/SECSTATE WASHDC//SOUTH CENTRAL ASIA COLLECTIVE/ 2100
RUEHVEN/USMISSION USOSCE 1881
RUEHAST/USOFFICE ALMATY 0334

UNCLAS SECTION 01 OF 04 ASTANA 000611 
 
SIPDIS 
 
DEPARTMENT FOR SCA/CEN (M. O'MARA) 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM KDEM KIRF PREL KZ
SUBJECT:  KAZAKHSTAN - SHYMKENT IS YOUNG, MUSLIM, AND GROWING FAST 
 
REF: 07 Tashkent 877 
 
ASTANA 00000611  001.2 OF 004 
 
 
------- 
SUMMARY 
------- 
 
1. (SBU) South Kazakhstan oblast and its capital, Shymkent, are 
experiencing rapid population growth due to high birth rates, an 
influx of ethnic Kazakhs from abroad, and labor migration from 
Uzbekistan.  While local officials claim local media is largely 
independent, civil society representatives contend that the media 
remains government-dominated and that journalists are afraid to 
criticize the authorities.  Civil society in South Kazakhstan has 
matured in recent years, and the government is increasing its 
cooperation with NGOs.  According to both officials and civil 
society activists, the threat from Islamic religious extremists such 
as Hizb ut-Tahrir (HT) is real in South Kazakhstan, fueled by 
poverty and ignorance.  Local authorities are also concerned about 
the activities of non-traditional evangelical groups.  Leaders of 
these groups allege government harassment and persecution.  End 
Summary. 
 
------------------------------- 
YOUNG, MUSLIM, AND GROWING FAST 
------------------------------- 
 
2. (SBU) During March 4-7, poloff and pol FSN visited Shymkent, the 
capital of South Kazakhstan oblast, for a series of meetings with 
local government officials, NGOs, and religious leaders.  The 
population of South Kazakhstan and Shymkent itself is young, rapidly 
growing, and dominated by ethnic Kazakhs and Uzbeks. Bahadyr 
Narymbetov, director of South Kazakhstan's Department of Internal 
Policy, told us that the oblast's population is approximately 2.5 
million, including 600,000 ethnic Uzbeks.  Shymkent's official 
population is 800,000, though Narymbetov contends the city's actual 
population exceeds one million due to a significant number of 
unregistered residents.  The absence of a significant ethnic Russian 
population is apparent from walking the streets of Shymkent.  Rezeda 
Gluschenko, director of the South Kazakhstan office of the 
Kazakhstan International Bureau for Human Rights, reported continued 
out-migration of ethnic Russians from the region. 
 
3. (SBU) Narymbetov said South Kazakhstan's population is growing 
rapidly, principally due to a high birth rate among ethnic Kazakhs 
and an influx of oralman (ethnic Kazakh immigrants from other 
countries).  Kazakh families in South Kazakhstan average three to 
four children.  As a result, the population is very young, with 32% 
of residents 14 to 29 years old.  Narymbetov said youth unemployment 
is high, and even university graduates face problems, with 40% of 
them unemployed or working in areas outside the scope of their 
education.  Under the national government's oralman quota program, 
oralman families are assigned to live in different regions of the 
country, though many ultimately move to South Kazakhstan because it 
is the region closest in location, climate, and mindset to 
Uzbekistan, Pakistan, Afghanistan, Iran, and Tajikistan, the most 
common countries of oralman origin.  Narymbetov said the oralman 
population brings a unique set of challenges.  Many come from 
countries using non-Cyrillic alphabets and thus cannot read Kazakh. 
Narymbetov criticized the lengthy process for obtaining proper 
documentation and citizenship and the difficulty involved in getting 
foreign university diplomas certified in Kazakhstan, both of which 
contribute to oralman unemployment. 
 
4. (SBU) Narymbetov also cited labor migration, primarily from 
Uzbekistan, as a source of population growth.  Though he did not 
cite specific numbers, he said there is a constant flow of labor 
migrants from Uzbekistan attracted by higher salaries and better 
opportunities, and most of them are working illegally in Kazakhstan. 
 Laura Kalmenova, chairperson of the Bereke Public Association, 
oversees two migrant labor support centers near the border, and 
confirmed that illegal migration from Uzbekistan is increasing.  She 
estimates that approximately 70% of these migrants become victims of 
exploitation, with employers refusing to pay what was promised.  She 
also told us that labor migrants frequently live in terrible 
conditions with poor sanitation. (reftel) 
 
--------------------------------------------- ------- 
"THERE'S NOT MUCH OPPOSITION TO THE GOVERNMENT HERE" 
--------------------------------------------- ------- 
 
5. (SBU) Narymbetov claimed that 10 political parties have their 
branch offices in the region, but only Nur Otan is active.  (Note: 
Narymbetov's government office is located in the Nur Otan party 
headquarters, a prominent building with a large Nur Otan sign 
running the length of the building's facade.  He told us the 
Department of Internal Policy and several businesses rent office 
 
ASTANA 00000611  002.2 OF 004 
 
 
space from Nur Otan. End Note.)  Narymbetov described the political 
situati
on as calm, contending that "there's not much opposition to 
the government here."  Regarding other parties, he maintained that 
Aul has some support in rural areas and Ak Zhol used to enjoy 
significant support in the south, but people became disenchanted 
after the party's split.  He claimed that Zharmakhan Tuyakbay's 
National Social Democratic Party (OSDP) receives about 15-20% voter 
support in the districts near his birthplace. (Note: Nur Otan 
officially received 88.09% of the vote in the oblast during the 
August 2007 parliamentary elections. OSDP received 5.25%, followed 
by Ak Zhol with 3.98%.  End Note.) 
 
6. (SBU) Narymbetov claimed 90% of the media outlets in South 
Kazakhstan oblast are independent, but acknowledged that the most 
popular newspaper, radio, and television outlets are government 
controlled.  He said that the akimat (i.e., oblast administration) 
frequently places government orders with the media on various 
topics, contending that everyone wins from this process: the media 
receives additional income, the government gets its message out to 
the public, and the people get information.  Nevertheless, he said 
that the akimat restricts government orders to 10-15% of the total 
media content.  Rayhan Khobdabergenova, director of the South 
Kazakhstan Association of Lawyers and a civil society activist, 
questioned the independence of local media, arguing that television 
stations in particular were not independent at all.  She said 
privately-owned newspapers will occasionally publish articles 
critical of the local government, but that local journalists in 
general were afraid to criticize the authorities. 
 
7. (SBU) Gluschenko, director of the local Human Rights Bureau 
chapter, said the media is afraid to report about the rampant 
corruption in local government and law enforcement.  As a specific 
example, she said the Bureau organized a press conference to 
publicize procedural violations during a recent trial of a group of 
alleged terrorists (see below), but not a single journalist showed 
up.  She claimed law enforcement agencies routinely abuse detainees, 
as the police have no other method of making suspects talk.  She 
also said government jobs are frequently "sold", and when a new 
administrator is appointed, bureaucrats must pay another bribe to 
keep their posts.  She added that judges speak openly about taking 
bribes in exchange for particular rulings. 
 
-------------------------------- 
CIVIL SOCIETY IS SLOWLY MATURING 
-------------------------------- 
 
8. (SBU) Several NGOs reported that civil society in South 
Kazakhstan has matured significantly over the last several years, 
though it remains weak in many spheres and in rural areas. Laura 
Kalmenova, chairperson of the Bereke Public Association, told us 
that the capacity and professionalism of NGOs has improved, and that 
local government authorities have become more cooperative with them. 
Among other projects, Bereke runs resource centers for women in 
rural areas, migrant labor support centers, and provides adaptation 
assistance for oralman.  Kalmenova is a member of the akim's NGO 
council, and Bereke has been successful in receiving some government 
contracts.  She said that village leaders in some rural areas are 
still ignorant and suspicious of NGOs, though several are very 
supportive of Bereke's migrant labor support centers. 
 
9. (SBU) Gluschenko from the Human Rights Bureau said that the 
akimat treats her NGO with respect because they have developed 
expertise in a few niche areas, such as monitoring prison 
conditions. Gluschenko is a member of the oblast penitentiary 
oversight committee and provides training to prison officials.  She 
said local officials have called her in the past to help quell 
prison riots and disturbances.  Hobdabergenova, director of the 
South Kazakhstan Association of Lawyers, maintained that government 
cooperation with NGOs is getting better, but often depends on the 
personalities involved, and in general the government has no great 
desire to work with NGOs. 
 
---------------------------------------- 
FERTILE GROUND FOR RELIGIOUS EXTREMISM? 
---------------------------------------- 
 
10. (SBU) Bakhytzhan Yesenov, director of the South Kazakhstan 
Oblast Ministry of Justice, reported that there are 834 registered 
religious groups in the oblast, representing 17 different faiths. 
Reflecting the heavy concentration of ethnic Kazakhs and Uzbeks, 735 
of these groups are Islamic, 18 are Orthodox Christian, one is 
Catholic, and the remaining 33 are various Protestant and 
non-traditional groups, including a registered Jehovah's Witnesses 
affiliate. 
 
11. (SBU) Virtually all of our interlocutors maintained that the 
 
ASTANA 00000611  003.2 OF 004 
 
 
threat from religious extremists such as Hizb ut-Tahrir (HT) is 
real, though Gluschenko from the Human Rights Bureau criticized the 
closed nature of trials against alleged extremists, and said the 
government is "overdoing" things in going after some of these 
groups.  Narymbetov from the Department of Internal Policy and 
Yesenov from the Ministry of Justice both pointed to recent arrests 
and trials of HT members and Salafists as evidence of a genuine 
extremist threat. (Note: On March 3, 15 alleged members of a 
purported Salafi jihadist wing were convicted in Shymkent of setting 
up and running a terrorist organization and promoting terrorism. 
They received prison sentences ranging from 11 to 19 years.  End 
Note.) Narymbetov cited South Kazakhstan's proximity to strongly 
religious Uzbekistan and Kyrgyzstan as one of the reasons for the 
extremism trend in the area, and maintained that citizens were 
vulnerable to extremist ideas because of their religious ignorance 
after 70 years of communist rule. 
 
12. (SBU) Ruslan Abdullin, director of the Center for Tolerance and 
a prominent activist on religious and ethnic tolerance issues in 
Shymkent, agreed that religious extremism is a dangerous problem in 
the region, fueled by poverty and ignorance.  (Note: Abdullin's 
Center for Tolerance receives grant support from the Embassy.  End 
Note.) He also said that the outward appearance of piety and 
tradition on the part of HT appeals to local Muslims hungry for 
authenticity.  Abdullin told us that there are several villages in 
South Kazakhstan where HT is very strong, and that there are three 
or four mosques in Shymkent that have a Wahhabi undercurrent.  The 
mosques are controlled by the Spiritual Association of Muslims of 
Kazakhstan, the quasi-official body that governs the practice of 
Islam in Kazakhstan.  The Association occasionally replaces some of 
the more radical imams, though in Abdullin's view this has not 
effectively eliminated the problem. 
 
----------------------------------------- 
A BROAD DEFINITION OF RELIGIOUS EXTREMISM 
----------------------------------------- 
 
13. (SBU) Both our government interlocutors and Abdullin extended 
their concerns about
extremism to include non-traditional 
evangelical religious groups active in the region. Narymbetov 
claimed that a lot of "garbage" has penetrated the country due to 
Kazakhstan's liberal religion law, and these groups seek to impose 
their faith on others through books, visiting homes, and stopping 
people on the streets. Narymbetov, Yesenov, and Abdullin all put the 
Jehovah's Witnesses in the same category as HT, criticizing the 
group as a destabilizing influence on society that turns people 
against traditional social values and calls on them to disregard the 
state and reject military service.  They did not name other groups, 
but criticized groups that proselytize or teach that they alone are 
correct, because these activities violate traditional values in 
Kazakhstan. 
 
14. (SBU) In a separate meeting, pastors from three registered 
evangelical Christian churches criticized local officials for 
constant harassment and pressure.  Zhetis Rayov, an ethnic Kazakh 
pastor of a New Life Church, told us that Ministry of Justice 
officials and procurators visit his church every few months and 
question him.  They also occasionally question and intimidate church 
members.  Rayov said that his church does not proselytize in the 
street or pass out literature.  Nevertheless, he told us that on two 
occasions in the last year, Ministry of Justice officials explicitly 
told him to stop working with Kazakhs and Uzbeks and leave them 
alone.  All three pastors reported that they have occasionally been 
forced to pay bribes to get inspectors and procurators to back off, 
and their churches have been the subject of negative newspaper and 
television stories in the last year describing them as sects that 
brainwash people.  They credited the Association of Religious 
Organizations of Kazakhstan and Ninel Fokina of the Almaty Helsinki 
Committee for intervening and helping resolve their more serious 
disputes.  The pastors also told us that they are aware of other 
Christian groups trying to register, but believe it is impossible 
for new non-traditional groups to obtain registration in the current 
climate.  Rayov criticized the work of Abdullin and his Center for 
Tolerance, alleging that Abdullin refuses to work with evangelical 
Christians and only promotes tolerance among religions traditional 
to Kazakhstan. 
 
----------------------- 
HOW TO FIGHT EXTREMISM? 
----------------------- 
 
15. (SBU) Both Narymbetov and Yesenov believe Kazakhstan's religion 
law needs to be strengthened in order to combat extremism.  They 
criticized the existing law as weak and outdated.  Yesenov told us 
that draft amendments are already under development in Astana, and 
that his office submitted a number of its own proposals.  He said 
 
ASTANA 00000611  004.2 OF 004 
 
 
the oblast akim runs a council on religious affairs to coordinate 
the work of various government agencies in the religion sphere and 
issue reports and recommendations.  He also told us that the 
Spiritual Association of Muslims of Kazakhstan regularly meets with 
imams and tests them.  In his view, the low level of education among 
local imams is a problem, and there is no school offering higher 
religious education in the oblast. 
 
16. (SBU) Abdullin criticized government efforts to combat religious 
extremism, describing them as outdated, ineffective, and primarily 
limited to reports and roundtables that do nothing to change 
behavior or popular opinion.  He urged a more active and practical 
approach, and touted his model of involving people from different 
faiths in joint sports competitions, charity projects, environmental 
work, tolerance marches, etc.  He also showed us a pilot tolerance 
room at a local public school, filled with educational materials on 
various religions and videos depicting the horrific aftermath of the 
September 11 and Beslan terrorist attacks.  Several students who 
regularly participate in the tolerance club performed a skit in 
which they demonstrated a street encounter with representatives of a 
sect, and taught the audience to reject their advances. Abdullin is 
actively seeking international financial support to create 
additional tolerance rooms in other public schools, and to add a 
multi-ethnic tolerance element to his program.  He was pessimistic 
about receiving financial support from the government, which in his 
view is not open to new ideas on how to combat extremism. 
 
------- 
COMMENT 
------- 
 
17. (SBU) Kazakhstanis frequently describe Shymkent and South 
Kazakhstan Oblast as the cultural heart of Kazakhstan.  The greater 
"Central Asian" feel of the region is immediately apparent in the 
faces, language, tradition, and hospitality of the people, and in 
many respects the region foreshadows the emerging Kazakh cultural 
identity that the government seeks to create and promote nationally. 
 On the other hand, Shymkent is a potential starting point for 
instability in Kazakhstan, particularly if the country were to 
experience significant economic problems.  Under the right 
conditions, a rapidly growing population of young, unemployed 
Kazakhs and Uzbeks, combined with a relatively weak civil society 
and an unaccountable, corrupt local government could provide the 
ingredients for increased religious extremism and ethnic conflict. 
Local authorities are well aware of the threat, but offer little in 
response beyond their default desire for tighter government control. 
End Comment. 
 
 
ORDWAY

Wikileaks

08ASTANA609, KAZAKHSTAN – WORLD TB DAY ACTIVITIES

WikiLeaks Link

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Discussing cables
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. #08ASTANA609.
Reference ID Created Released Classification Origin
08ASTANA609 2008-03-20 11:54 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO0383
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0609 0801154
ZNR UUUUU ZZH
R 201154Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2098
INFO RUCNCIS/CIS COLLECTIVE 0439

UNCLAS ASTANA 000609 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TBIO PREL KPAO KZ
SUBJECT: KAZAKHSTAN - WORLD TB DAY ACTIVITIES 
 
REF:  State 26078 
 
1. Summary: Per reftel, to mark World TB Day, USAID and its partner 
organizations, in collaboration with the National TB Center and the 
Almaty City and Oblast Health Departments, are planning a range of 
activities in Kazakhstan.  These activities include announcement of 
a pilot project on treatment of dual HIV and TB infections, a 
conference on TB prevention and treatment in Almaty, a regional 
conference on TB prevention in the town of Talgar in southern 
Kazakhstan, a number of regional contests to raise awareness of TB 
and mobilize communities, and a series of TB-awareness public 
service announcements (PSA's).  End summary. 
 
2. On March 19, USAID along with national counterparts participated 
in a national press conference, organized by the National TB Center, 
to announce the upcoming World TB Day and publicize nation-wide 
awareness raising activities. 
 
3.  On March 26, there will be a conference in Almaty on TB 
prevention which will include city health care providers, TB 
specialists, and media representatives.  USAID will discuss its 
technical assistance to the National TB Program at the conference. 
 
 
4. A regional scientific-practical conference and a concert will be 
held on March 27 in the city of Talgar, in southern Almaty Oblast. 
The theme of the conference is "I can stop TB!"  The conference is 
being organized with USAID funding by Project HOPE, and speakers 
will include the National TB Center, the National Healthy Lifestyle 
Center, USAID, and the Red Crescent Society.  The target audience 
includes oblast health care providers, TB specialists, medical 
students, and the media. 
 
5. On March 28, USAID will announce the launch of a pilot project on 
management of dual TB and HIV infections.  The project will run 
through May 2009 and is being implemented by the USAID-funded TB and 
HIV/AIDS prevention projects and the Central Asian TB Partnership, 
together with the Kazakhstan National TB Center and the Republican 
AIDS Center.  The pilot project seeks to improve medical care for 
patients with dual TB and HIV infections and reduce the rate of 
mortality caused by TB and HIV.  The project launch will be 
announced at a special event in Almaty with partner organizations. 
 
6. Through February-March, USAID, through Project HOPE and in 
collaboration with national partners (Almaty Oblast TB Dispensary, 
Almaty Oblast Department of Education, NTBC, National Center for 
Healthy Lifestyles) supported a number of competitions to draw 
public attention to the issue of TB, empower health care providers, 
and mobilize the general public.  These included a contest among 
healthy lifestyle teachers, a competition for the best laboratory 
chemist and the best general practitioner in TB diagnosis, and a 
competition for the best TB-information poster. 
 
7.  In addition, a series of USAID-funded PSA's to raise awareness 
of TB symptoms and treatment have been prepared by Project HOPE with 
local partners and will be aired on various regional TV stations in 
Almaty Oblast in the latter half of March. 
 
ORDWAY

Wikileaks

08ASTANA584, KAZAKHSTAN: SPECIAL 301

WikiLeaks Link

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Discussing cables
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. #08ASTANA584.
Reference ID Created Released Classification Origin
08ASTANA584 2008-03-19 04:30 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXYZ0009
RR RUEHWEB

DE RUEHTA #0584/01 0790430
ZNR UUUUU ZZH
R 190430Z MAR 08
FM AMEMBASSY ASTANA
TO SECSTATE WASHDC 2069

UNCLAS ASTANA 000584 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN (O'MARA) and EB/TPP/IBE (JBOGER) 
STATE PASS USTR FOR JCHOE-GROVES 
COMMERCE FOR ITA/MAC/OIPR (CPETERS) 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON KZ
SUBJECT:  KAZAKHSTAN: SPECIAL 301 
 
REF:  (A) STATE 09475 (B) 06 ASTANA 009 (C) 07 ASTANA 0454 
 
------- 
SUMMARY 
------- 
 
1. (SBU) Over the past year, the Government of Kazakhstan (GOK) has 
continued to demonstrate a commitment to the development and 
modernization of its IPR protection regime. Despite an increase in 
the domestic production of pirated CD's and DVD's in Kazakhstan's 
two largest cities, the GOK, and more specifically the IPR Committee 
of the Ministry of Justice, continues to move forward in meeting 
international standards and addressing the concerns of the 
international community for the enhanced protection of IPR on the 
legislative, judicial, and enforcement fronts.  Facing a continuing 
challenge to stem the flow of pirated goods from Russia and China, 
the GOK has also proposed legislation to further empower customs 
officials to seize counterfeit materials before they enter the 
country.  Although criminal sentencing remains at low levels, and 
the lack of a public perception of the seriousness of IPR violations 
is problematic, ongoing educational programs and proposed 
legislative changes set to come to parliament for ratification in 
late spring 2008 are expected to significantly improve the IPR 
environment.  Therefore, post recommends continuing Kazakhstan's 
exclusion from the Special 301 Watch List.  End Summary. 
 
--------------------------------------------- ---- 
ENFORCEMENT INCREASES, BUT CRIMINAL SENTENCES LAG 
--------------------------------------------- ---- 
 
2.  (SBU) IPR enforcement efforts continue to increase, and the 
numbers of convictions for administrative and criminal offenses grew 
in the last year.  According to combined 2007 statistics released by 
the Ministry of Justice IPR Committee, and the Procurator General, 
 
 -- 1971 IPR-related raids were conducted.  As a result of these 
raids, 1418 entities (organizations and individuals) were charged 
with administrative penalties; 
-- 2670 administrative cases were initiated; 
-- 20,250,755 KZT ($168,056) was collected in administrative fines 
(compared to 14,385,725 KZT, or $116,013 in 2006); 
-- 229,979 counterfeit copies valued at 132,369,884 KZT ($1,098,505) 
with unlicensed or illegal trademarks were confiscated (compared to 
121 million KZT, or $975,806, in 2006); and 
-- 658 criminal cases were initiated (compared to 268 in 2006). 
 
3.  (SBU) Of the 658 criminal cases initiated in 2007, 447 were sent 
to courts.  Of these, 108 people were convicted under Part 1 of 
Article 184 of the Criminal Code, one person was convicted under 
Part 2, and 54 under Part 3.  (NOTE: Parts 1-3 of Article 184 
represent, in order, increasing categories of severity in both the 
level of the offense and severity of punishment, based on amount of 
damage, scale of the offense, repetition of the violation, etc.  End 
note.)  Penalties for those convicted of violations of Article 184 
vary. They include fines ranging from 100 to 700 times the Monthly 
Calculation Unit (one Monthly Calculation Unit is currently set to 
1,168 tenge, or $9.60), the confiscation of 5 to 10 months' wages, 
community service of 100 to 240 hours, or imprisonment from 2 to 5 
years and the possible confiscation of property. 
 
4.  (SBU) Despite the relatively high number of criminal 
convictions, no data has been made available regarding sentencing. 
According to an official at the General Prosecutor's Office, this 
most likely indicates that no individuals have been incarcerated, 
and that the criminal sentences were either reduced to 
administrative penalties, or suspended. (Comment:  The lack of jail 
sentences remains of concern, indicating a continued perception 
within the courts that copyright infringement alone, in the absence 
of other criminal violations, does not merit incarceration. End 
Comment.) 
 
---------------------------- 
NEW AND CONTINUED CHALLENGES 
---------------------------- 
 
5.  (SBU) Outside of Kazakhstan's two largest cities (Almaty and 
Astana), the vast majority of pirated media available originates in 
Russia and China.  Russia -- with its many railway links to northern 
Kazakhstan -- presents a particular challenge for Kazakhstani 
authorities. As noted by the IIPA, customs officials continue to 
lack the ex officio authority required to seize counterfeit 
materials at the borders, when they are discovered. 
 
6.  (SBU) According to private industry representatives, 2007 has 
witnessed an increase in the availability and sales, particularly in 
Almaty and Astana, of domestically produced counterfeit CD's and 
DVD's. This is largely due to the increasing availability of 
pirating technology and the willingness of small-time media pirates 
to engage the police in the "cat and mouse" game of street sales. 
 
Industry representatives assert that local police charged with 
enforcing the prohibition of street sales are often unmotivated and 
indifferent to the presence of such vendors, if not directly paid to 
ignore them. 
 
7.  (SBU) The pursuit of rulings against IPR violators in civil &#x
000A;courts remains problematic because of legal norms carried over from 
Soviet times.  According to the Prosecutor General's office and 
private industry representatives, this is particularly so when 
licensed copyright holders attempt to sue vendors of pirated 
material for damages.  Under current IPR legislation, plaintiffs are 
subjected to an unnecessarily heavy burden of proof, whereby they 
are required to demonstrate a direct contractual link to the artist 
or author whose pirated material is being illegally sold. (Note:  An 
example would be a direct contract between a performer and record 
store. End note.) If a licensed copyright holder or distributor can 
not substantiate this direct linkage, they can not, in the eyes of 
the court, demonstrate financial damages caused by illegal sales. 
In addition, civil claims must also be brought in a court in the 
region where the infringement is alleged to have occurred.  Regional 
courts tend to lack regular exposure to -- and knowledge of -- this 
relatively new and complex area of law, which has historically 
inhibited the successful prosecution of violations. 
 
------------------------ 
OPTICAL MEDIA PROTECTION 
------------------------ 
 
8.  (SBU) Two plants in Kazakhstan produce optical discs.  One 
specializes in films and music, the other in software.  Both plants 
have source identification codes (SID's) issued by the IFPI 
(International Federation of the Phonographic Industry) and, as IIPA 
notes, provide samples of their products for use as forensic 
evidence. 
 
---------------------------- 
SOFTWARE INDUSTRY ENGAGEMENT 
---------------------------- 
 
9.  (SBU) According to local Microsoft representatives, all newly 
procured government computers have licensed software.  While some 
older government computers may still be loaded with unlicensed 
software, overall the Microsoft representative expressed strong 
satisfaction with the government procurement situation.  Most 
recently, Microsoft founder Bill Gates and the CEO of Samgau 
(Kazakhstan's state-owned technology and innovation holding company) 
signed an MOU on plans for future cooperation in the development of 
educational technologies, as well as collaboration in IPR protection 
and enforcement.  Microsoft is recognized for its successful 
engagement in defense of IPR in Russia; its enhanced partnership 
with the GOK is expected to improve IPR protective capacity in 
Kazakhstan, with a particularly heavy focus on the prevention of 
internet-related piracy. 
 
10.  (SBU) Despite the positive relations developing between 
Microsoft and the GOK, Microsoft representatives recommend that 
Kazakhstan be placed on the Special 301 Watch List. Recent findings 
from Microsoft-funded research indicated that levels of privately 
used pirated (or unlicensed) software remains extremely high. 
According to their data, 92.9 percent of privately owned PC's in 
Kazakhstan utilize of illegally obtained software. (Note: Their data 
also indicated that the overwhelming majority of respondents 
believed piracy rates would decrease if the prices of commercially 
available software were to be lowered.  This opinion was also shared 
by the General Prosecutor's Office. End note.) 
 
--------------------------------------------- ----- 
SCHEDULED AND ENACTED IPR LEGISLATIVE IMPROVEMENTS 
--------------------------------------------- ----- 
 
11.  (SBU) During the reporting period, Kazakhstan continued to 
pursue legislative changes that strengthen the government's hand in 
protecting intellectual property rights.  The legal basis for 
preventing and prosecuting IPR violations remains the "Law on 
Amending Legislative Acts of the Republic of Kazakhstan on the 
Issues of Intellectual Property", which entered into force on 
November 26, 2005. This law amended the country's Criminal Code, 
Criminal Procedure Code, Civil Code, Administrative Code, and the 
Copyright Law as they pertain to the protection of intellectual 
property (ref B).  Amendments to the Patent Law were ratified in 
2007, significantly simplifying the patent system (as compared with 
the old Soviet two-stage system) and bringing it into closer 
conformity with international standards. 
 
12.  (SBU) Proposed amendments to the Copyright Law, Law on Trade 
Marks, Law on Licensing, and Customs Code are currently being 
evaluated by independent experts.  Proposed amendments to the 
Copyright Law have been praised by private industry representatives 
in as much as they directly address the weaknesses hindering 
copyright enforcement in civil courts (see para 7 above).   New 
amendments will relieve IPR holders of the heavy burden of proof, 
and will facilitate effective law enforcement. In accordance with 
WIPO requirements, the draft amendments also detail the use of 
technical means for the protection of copyrights, specifically 
prohibiting the removal of any types of technical or coded copyright 
protection technologies. The IPR Committee is confident that the 
proposed amendments to the Licensing Law stipulating mandatory 
licensing for the commercial reproduction of any copyright protected 
audio and visual recordings meet WTO requirements.  These amendments 
are scheduled to come before Parliament in late May-early June 
2008. 
 
13.  (SBU) Amendments to Customs Legislation granting ex officio 
authority to customs agents are scheduled to come before Parliament 
 
in November 2008.  These amendments will grant customs agents the 
authority to more readily seize counterfeit goods at the border, 
which has long been recommended by the International Intellectual 
Property Alliance (IIPA.) 
 
------------------------------------- 
IIPA REPORTING AND CONCERNS ADDRESSED 
------------------------------------- 
 
14.  (SBU) Over the last several years, IIPA reporting has 
consistently reiterated several concerns regarding the development 
and efficacy of IPR protective measures in Kazakhstan.  They have 
also, however, continued to report several significant inaccuracies. 
 
 
15.  (SBU) The IIPA report states that "only the Ministry of Justice 
(Copyright Office) and not the police can bring charges for 
[administrative violations]" and recommends "that the existing 
police authority be broadened to include administrative violations 
as well."  Article 620 of the Administrative Violations Code 
specifically provides such powers to the police. 
 
16.  (SBU) The IIPA's assertion that the 2004 statutes only provide 
for a 50-year term of copyright protection is inaccurate, as the 
November 2005 amendments specifically provide for the extension of 
copyright protection to 70 years, in keeping with international 
standards. 
 
17.  (SBU) The IIPA repeats another error from its 2006 and 2007 
reports, overstating the minimum damages threshold for criminal 
prosecution.  IIPA misinterprets w
hat it calls "the key amendment" 
in the November 2005 legislation. i.e., the change to Article 184 of 
the Criminal Code, which repealed the undefined "huge damage" 
threshold for criminal cases and replaced it with a threshold of 100 
Monthly Calculation Units (MCU's).  The IIPA incorrectly reported 
that one MCU is the equivalent of 36,495 tenge ($304), when in fact 
it is currently set to just 1,168 tenge ($9.60).  Thus, the IIPA 
overstates the all-important minimum damages threshold for criminal 
prosecution by a factor of more than thirty. 
 
18. (SBU) The IIPA cites Kazakhstan's need to establish a legal 
basis for the confiscation and destruction of equipment used in the 
criminal manufacture of pirated goods.  The IPR Committee continues 
to assure post that a combination of statutes in the Criminal Code 
and the Criminal Procedure Code constitutes an adequate provision 
for the confiscation of such equipment. Moreover, the IPR Committee 
has stated that such confiscations are routinely carried out and do 
not require a court order.  A court order is necessary only to 
destroy such equipment -- a procedural requirement which the IPR 
Committee defends as necessary to preserve potentially material 
evidence. It should also be noted that the abovementioned proposed 
amendments to the Copyright Law will require judges, in the event of 
a conviction, to make a ruling regarding the named piracy equipment. 
This provision is expected to increase occasions in which 
confiscated equipment will be destroyed. 
 
------- 
COMMENT 
------- 
 
19.  (SBU) Kazakhstan's continued progress on and commitment to IPR 
protection merits its continued exclusion from the Special 301 Watch 
List.  The efforts of the IPR Committee within the Ministry of 
Justice are expected to bear fruit in 2008 in the ratification of 
amendments to numerous IPR-related laws.  Post takes growing private 
sector participation in the enforcement of IPR as a very positive 
indicator of progress.  At this stage, acknowledging Kazakhstan's 
significant achievements while stressing to the GOK that they must 
continue to enhance their IPR efforts is a better approach to 
facilitate further U.S.-Kazakhstani IPR cooperation and achieve 
results on the grounds than returning Kazakhstan to Watch List 
status.  End Comment. 
 
ORDWAY

Wikileaks

08ASTANA555, KAZAKHSTAN: SPECIAL 301

WikiLeaks Link

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
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. #08ASTANA555.
Reference ID Created Released Classification Origin
08ASTANA555 2008-03-19 03:07 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXYZ0002
RR RUEHWEB

DE RUEHTA #0555/01 0790307
ZNR UUUUU ZZH
R 190307Z MAR 08
FM AMEMBASSY ASTANA
TO SECSTATE WASHDC 2042

UNCLAS ASTANA 000555 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN (O'MARA) and EB/TPP/IBE (JBOGER) 
STATE PASS USTR FOR JCHOE-GROVES 
COMMERCE FOR ITA/MAC/OIPR (CPETERS) 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON KZ
SUBJECT:  KAZAKHSTAN: SPECIAL 301 
 
REF:  (A) STATE 09475 (B) 06 ASTANA 009 (C) 07 ASTANA 0454 
 
------- 
SUMMARY 
------- 
 
1. (SBU) Over the past year, the Government of Kazakhstan (GOK) has 
continued to demonstrate a commitment to the development and 
modernization of its IPR protection regime. Despite an increase in 
the domestic production of pirated CD's and DVD's in Kazakhstan's 
two largest cities, the GOK, and more specifically the IPR Committee 
of the Ministry of Justice, continues to move forward in meeting 
international standards and addressing the concerns of the 
international community for the enhanced protection of IPR on the 
legislative, judicial, and enforcement fronts.  Facing a continuing 
challenge to stem the flow of pirated goods from Russia and China, 
the GOK has also proposed legislation to further empower customs 
officials to seize counterfeit materials before they enter the 
country.  Although criminal sentencing remains at low levels, and 
the lack of a public perception of the seriousness of IPR violations 
is problematic, ongoing educational programs and proposed 
legislative changes set to come to parliament for ratification in 
late spring 2008 are expected to significantly improve the IPR 
environment.  Therefore, post recommends continuing Kazakhstan's 
exclusion from the Special 301 Watch List.  End Summary. 
 
--------------------------------------------- ---- 
ENFORCEMENT INCREASES, BUT CRIMINAL SENTENCES LAG 
--------------------------------------------- ---- 
 
2.  (SBU) IPR enforcement efforts continue to increase, and the 
numbers of convictions for administrative and criminal offenses grew 
in the last year.  According to combined 2007 statistics released by 
the Ministry of Justice IPR Committee, and the Procurator General, 
 
 -- 1971 IPR-related raids were conducted.  As a result of these 
raids, 1418 entities (organizations and individuals) were charged 
with administrative penalties; 
-- 2670 administrative cases were initiated; 
-- 20,250,755 KZT ($168,056) was collected in administrative fines 
(compared to 14,385,725 KZT, or $116,013 in 2006); 
-- 229,979 counterfeit copies valued at 132,369,884 KZT ($1,098,505) 
with unlicensed or illegal trademarks were confiscated (compared to 
121 million KZT, or $975,806, in 2006); and 
-- 658 criminal cases were initiated (compared to 268 in 2006). 
 
3.  (SBU) Of the 658 criminal cases initiated in 2007, 447 were sent 
to courts.  Of these, 108 people were convicted under Part 1 of 
Article 184 of the Criminal Code, one person was convicted under 
Part 2, and 54 under Part 3.  (NOTE: Parts 1-3 of Article 184 
represent, in order, increasing categories of severity in both the 
level of the offense and severity of punishment, based on amount of 
damage, scale of the offense, repetition of the violation, etc.  End 
note.)  Penalties for those convicted of violations of Article 184 
vary. They include fines ranging from 100 to 700 times the Monthly 
Calculation Unit (one Monthly Calculation Unit is currently set to 
1,168 tenge, or $9.60), the confiscation of 5 to 10 months' wages, 
community service of 100 to 240 hours, or imprisonment from 2 to 5 
years and the possible confiscation of property. 
 
4.  (SBU) Despite the relatively high number of criminal 
convictions, no data has been made available regarding sentencing. 
According to an official at the General Prosecutor's Office, this 
most likely indicates that no individuals have been incarcerated, 
and that the criminal sentences were either reduced to 
administrative penalties, or suspended. (Comment:  The lack of jail 
sentences remains of concern, indicating a continued perception 
within the courts that copyright infringement alone, in the absence 
of other criminal violations, does not merit incarceration. End 
Comment.) 
 
---------------------------- 
NEW AND CONTINUED CHALLENGES 
---------------------------- 
 
5.  (SBU) Outside of Kazakhstan's two largest cities (Almaty and 
Astana), the vast majority of pirated media available originates in 
Russia and China.  Russia -- with its many railway links to northern 
Kazakhstan -- presents a particular challenge for Kazakhstani 
authorities. As noted by the IIPA, customs officials continue to 
lack the ex officio authority required to seize counterfeit 
materials at the borders, when they are discovered. 
 
6.  (SBU) According to private industry representatives, 2007 has 
witnessed an increase in the availability and sales, particularly in 
Almaty and Astana, of domestically produced counterfeit CD's and 
DVD's. This is largely due to the increasing availability of 
pirating technology and the willingness of small-time media pirates 
to engage the police in the "cat and mouse" game of street sales. 
 
Industry representatives assert that local police charged with 
enforcing the prohibition of street sales are often unmotivated and 
indifferent to the presence of such vendors, if not directly paid to 
ignore them. 
 
7.  (SBU) The pursuit of rulings against IPR violators in civil &#x
000A;courts remains problematic because of legal norms carried over from 
Soviet times.  According to the Prosecutor General's office and 
private industry representatives, this is particularly so when 
licensed copyright holders attempt to sue vendors of pirated 
material for damages.  Under current IPR legislation, plaintiffs are 
subjected to an unnecessarily heavy burden of proof, whereby they 
are required to demonstrate a direct contractual link to the artist 
or author whose pirated material is being illegally sold. (Note:  An 
example would be a direct contract between a performer and record 
store. End note.) If a licensed copyright holder or distributor can 
not substantiate this direct linkage, they can not, in the eyes of 
the court, demonstrate financial damages caused by illegal sales. 
In addition, civil claims must also be brought in a court in the 
region where the infringement is alleged to have occurred.  Regional 
courts tend to lack regular exposure to -- and knowledge of -- this 
relatively new and complex area of law, which has historically 
inhibited the successful prosecution of violations. 
 
------------------------ 
OPTICAL MEDIA PROTECTION 
------------------------ 
 
8.  (SBU) Two plants in Kazakhstan produce optical discs.  One 
specializes in films and music, the other in software.  Both plants 
have source identification codes (SID's) issued by the IFPI 
(International Federation of the Phonographic Industry) and, as IIPA 
notes, provide samples of their products for use as forensic 
evidence. 
 
---------------------------- 
SOFTWARE INDUSTRY ENGAGEMENT 
---------------------------- 
 
9.  (SBU) According to local Microsoft representatives, all newly 
procured government computers have licensed software.  While some 
older government computers may still be loaded with unlicensed 
software, overall the Microsoft representative expressed strong 
satisfaction with the government procurement situation.  Most 
recently, Microsoft founder Bill Gates and the CEO of Samgau 
(Kazakhstan's state-owned technology and innovation holding company) 
signed an MOU on plans for future cooperation in the development of 
educational technologies, as well as collaboration in IPR protection 
and enforcement.  Microsoft is recognized for its successful 
engagement in defense of IPR in Russia; its enhanced partnership 
with the GOK is expected to improve IPR protective capacity in 
Kazakhstan, with a particularly heavy focus on the prevention of 
internet-related piracy. 
 
10.  (SBU) Despite the positive relations developing between 
Microsoft and the GOK, Microsoft representatives recommend that 
Kazakhstan be placed on the Special 301 Watch List. Recent findings 
from Microsoft-funded research indicated that levels of privately 
used pirated (or unlicensed) software remains extremely high. 
According to their data, 92.9 percent of privately owned PC's in 
Kazakhstan utilize of illegally obtained software. (Note: Their data 
also indicated that the overwhelming majority of respondents 
believed piracy rates would decrease if the prices of commercially 
available software were to be lowered.  This opinion was also shared 
by the General Prosecutor's Office. End note.) 
 
--------------------------------------------- ----- 
SCHEDULED AND ENACTED IPR LEGISLATIVE IMPROVEMENTS 
--------------------------------------------- ----- 
 
11.  (SBU) During the reporting period, Kazakhstan continued to 
pursue legislative changes that strengthen the government's hand in 
protecting intellectual property rights.  The legal basis for 
preventing and prosecuting IPR violations remains the "Law on 
Amending Legislative Acts of the Republic of Kazakhstan on the 
Issues of Intellectual Property", which entered into force on 
November 26, 2005. This law amended the country's Criminal Code, 
Criminal Procedure Code, Civil Code, Administrative Code, and the 
Copyright Law as they pertain to the protection of intellectual 
property (ref B).  Amendments to the Patent Law were ratified in 
2007, significantly simplifying the patent system (as compared with 
the old Soviet two-stage system) and bringing it into closer 
conformity with international standards. 
 
12.  (SBU) Proposed amendments to the Copyright Law, Law on Trade 
Marks, Law on Licensing, and Customs Code are currently being 
evaluated by independent experts.  Proposed amendments to the 
Copyright Law have been praised by private industry representatives 
in as much as they directly address the weaknesses hindering 
copyright enforcement in civil courts (see para 7 above).   New 
amendments will relieve IPR holders of the heavy burden of proof, 
and will facilitate effective law enforcement. In accordance with 
WIPO requirements, the draft amendments also detail the use of 
technical means for the protection of copyrights, specifically 
prohibiting the removal of any types of technical or coded copyright 
protection technologies. The IPR Committee is confident that the 
proposed amendments to the Licensing Law stipulating mandatory 
licensing for the commercial reproduction of any copyright protected 
audio and visual recordings meet WTO requirements.  These amendments 
are scheduled to come before Parliament in late May-early June 
2008. 
 
13.  (SBU) Amendments to Customs Legislation granting ex officio 
authority to customs agents are scheduled to come before Parliament 
 
in November 2008.  These amendments will grant customs agents the 
authority to more readily seize counterfeit goods at the border, 
which has long been recommended by the International Intellectual 
Property Alliance (IIPA.) 
 
------------------------------------- 
IIPA REPORTING AND CONCERNS ADDRESSED 
------------------------------------- 
 
14.  (SBU) Over the last several years, IIPA reporting has 
consistently reiterated several concerns regarding the development 
and efficacy of IPR protective measures in Kazakhstan.  They have 
also, however, continued to report several significant inaccuracies. 
 
 
15.  (SBU) The IIPA report states that "only the Ministry of Justice 
(Copyright Office) and not the police can bring charges for 
[administrative violations]" and recommends "that the existing 
police authority be broadened to include administrative violations 
as well."  Article 620 of the Administrative Violations Code 
specifically provides such powers to the police. 
 
16.  (SBU) The IIPA's assertion that the 2004 statutes only provide 
for a 50-year term of copyright protection is inaccurate, as the 
November 2005 amendments specifically provide for the extension of 
copyright protection to 70 years, in keeping with international 
standards. 
 
17.  (SBU) The IIPA repeats another error from its 2006 and 2007 
reports, overstating the minimum damages threshold for criminal 
prosecution.  IIPA misinterprets w
hat it calls "the key amendment" 
in the November 2005 legislation. i.e., the change to Article 184 of 
the Criminal Code, which repealed the undefined "huge damage" 
threshold for criminal cases and replaced it with a threshold of 100 
Monthly Calculation Units (MCU's).  The IIPA incorrectly reported 
that one MCU is the equivalent of 36,495 tenge ($304), when in fact 
it is currently set to just 1,168 tenge ($9.60).  Thus, the IIPA 
overstates the all-important minimum damages threshold for criminal 
prosecution by a factor of more than thirty. 
 
18. (SBU) The IIPA cites Kazakhstan's need to establish a legal 
basis for the confiscation and destruction of equipment used in the 
criminal manufacture of pirated goods.  The IPR Committee continues 
to assure post that a combination of statutes in the Criminal Code 
and the Criminal Procedure Code constitutes an adequate provision 
for the confiscation of such equipment. Moreover, the IPR Committee 
has stated that such confiscations are routinely carried out and do 
not require a court order.  A court order is necessary only to 
destroy such equipment -- a procedural requirement which the IPR 
Committee defends as necessary to preserve potentially material 
evidence. It should also be noted that the abovementioned proposed 
amendments to the Copyright Law will require judges, in the event of 
a conviction, to make a ruling regarding the named piracy equipment. 
This provision is expected to increase occasions in which 
confiscated equipment will be destroyed. 
 
------- 
COMMENT 
------- 
 
19.  (SBU) Kazakhstan's continued progress on and commitment to IPR 
protection merits its continued exclusion from the Special 301 Watch 
List.  The efforts of the IPR Committee within the Ministry of 
Justice are expected to bear fruit in 2008 in the ratification of 
amendments to numerous IPR-related laws.  Post takes growing private 
sector participation in the enforcement of IPR as a very positive 
indicator of progress.  At this stage, acknowledging Kazakhstan's 
significant achievements while stressing to the GOK that they must 
continue to enhance their IPR efforts is a better approach to 
facilitate further U.S.-Kazakhstani IPR cooperation and achieve 
results on the grounds than returning Kazakhstan to Watch List 
status.  End Comment. 
 
ORDWAY

Wikileaks

08ASTANA525, KAZAKHSTAN: SPECIAL 301

WikiLeaks Link

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
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. #08ASTANA525.
Reference ID Created Released Classification Origin
08ASTANA525 2008-03-17 11:33 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXYZ0008
RR RUEHWEB

DE RUEHTA #0525/01 0771133
ZNR UUUUU ZZH
R 171133Z MAR 08 ZDK
FM AMEMBASSY ASTANA
TO SECSTATE WASHDC 2019

UNCLAS ASTANA 000525 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN (O'MARA) and EB/TPP/IBE (JBOGER) 
STATE PASS USTR FOR JCHOE-GROVES 
COMMERCE FOR ITA/MAC/OIPR (CPETERS) 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON KZ
SUBJECT:  KAZAKHSTAN: SPECIAL 301 
 
REF:  (A) STATE 09475 (B) 06 ASTANA 009 (C) 07 ASTANA 0454 
 
------- 
SUMMARY 
------- 
 
1. (SBU) Over the past year, the Government of Kazakhstan (GOK) has 
continued to demonstrate a commitment to the development and 
modernization of its IPR protection regime. Despite an increase in 
the domestic production of pirated CD's and DVD's in Kazakhstan's 
two largest cities, the GOK, and more specifically the IPR Committee 
of the Ministry of Justice, continues to move forward in meeting 
international standards and addressing the concerns of the 
international community for the enhanced protection of IPR on the 
legislative, judicial, and enforcement fronts.  Facing a continuing 
challenge to stem the flow of pirated goods from Russia and China, 
the GOK has also proposed legislation to further empower customs 
officials to seize counterfeit materials before they enter the 
country.  Although criminal sentencing remains at low levels, and 
the lack of a public perception of the seriousness of IPR violations 
is problematic, ongoing educational programs and proposed 
legislative changes set to come to parliament for ratification in 
late spring 2008 are expected to significantly improve the IPR 
environment.  Therefore, post recommends continuing Kazakhstan's 
exclusion from the Special 301 Watch List.  End Summary. 
 
--------------------------------------------- ---- 
ENFORCEMENT INCREASES, BUT CRIMINAL SENTENCES LAG 
--------------------------------------------- ---- 
 
2.  (SBU) IPR enforcement efforts continue to increase, and the 
numbers of convictions for administrative and criminal offenses grew 
in the last year.  According to combined 2007 statistics released by 
the Ministry of Justice IPR Committee, and the Procurator General, 
 
 -- 1971 IPR-related raids were conducted.  As a result of these 
raids, 1418 entities (organizations and individuals) were charged 
with administrative penalties; 
-- 2670 administrative cases were initiated; 
-- 20,250,755 KZT ($168,056) was collected in administrative fines 
(compared to 14,385,725 KZT, or $116,013 in 2006); 
-- 229,979 counterfeit copies valued at 132,369,884 KZT ($1,098,505) 
with unlicensed or illegal trademarks were confiscated (compared to 
121 million KZT, or $975,806, in 2006); and 
-- 658 criminal cases were initiated (compared to 268 in 2006). 
 
3.  (SBU) Of the 658 criminal cases initiated in 2007, 447 were sent 
to courts.  Of these, 108 people were convicted under Part 1 of 
Article 184 of the Criminal Code, one person was convicted under 
Part 2, and 54 under Part 3.  (NOTE: Parts 1-3 of Article 184 
represent, in order, increasing categories of severity in both the 
level of the offense and severity of punishment, based on amount of 
damage, scale of the offense, repetition of the violation, etc.  End 
note.)  Penalties for those convicted of violations of Article 184 
vary. They include fines ranging from 100 to 700 times the Monthly 
Calculation Unit (one Monthly Calculation Unit is currently set to 
1,168 tenge, or $9.60), the confiscation of 5 to 10 months' wages, 
community service of 100 to 240 hours, or imprisonment from 2 to 5 
years and the possible confiscation of property. 
 
4.  (SBU) Despite the relatively high number of criminal 
convictions, no data has been made available regarding sentencing. 
According to an official at the General Prosecutor's Office, this 
most likely indicates that no individuals have been incarcerated, 
and that the criminal sentences were either reduced to 
administrative penalties, or suspended. (Comment:  The lack of jail 
sentences remains of concern, indicating a continued perception 
within the courts that copyright infringement alone, in the absence 
of other criminal violations, does not merit incarceration. End 
Comment.) 
 
---------------------------- 
NEW AND CONTINUED CHALLENGES 
---------------------------- 
 
5.  (SBU) Outside of Kazakhstan's two largest cities (Almaty and 
Astana), the vast majority of pirated media available originates in 
Russia and China.  Russia -- with its many railway links to northern 
Kazakhstan -- presents a particular challenge for Kazakhstani 
authorities. As noted by the IIPA, customs officials continue to 
lack the ex officio authority required to seize counterfeit 
materials at the borders, when they are discovered. 
 
6.  (SBU) According to private industry representatives, 2007 has 
witnessed an increase in the availability and sales, particularly in 
Almaty and Astana, of domestically produced counterfeit CD's and 
DVD's. This is largely due to the increasing availability of 
pirating technology and the willingness of small-time media pirates 
to engage the police in the "cat and mouse" game of street sales. 
Industry representatives assert that local police charged with 
enforcing the prohibition of street sales are often unmotivated and 
indifferent to the presence of such vendors, if not directly paid to 
ignore them. 
 
7.  (SBU) The pursuit of rulings against IPR violators in civil 

courts remains problematic because of legal norms carried over from 
Soviet times.  According to the Prosecutor General's office and 
private industry representatives, this is particularly so when 
licensed copyright holders attempt to sue vendors of pirated 
material for damages.  Under current IPR legislation, plaintiffs are 
subjected to an unnecessarily heavy burden of proof, whereby they 
are required to demonstrate a direct contractual link to the artist 
or author whose pirated material is being illegally sold. (Note:  An 
example would be a direct contract between a performer and record 
store. End note.) If a licensed copyright holder or distributor can 
not substantiate this direct linkage, they can not, in the eyes of 
the court, demonstrate financial damages caused by illegal sales. 
In addition, civil claims must also be brought in a court in the 
region where the infringement is alleged to have occurred.  Regional 
courts tend to lack regular exposure to -- and knowledge of -- this 
relatively new and complex area of law, which has historically 
inhibited the successful prosecution of violations. 
 
------------------------ 
OPTICAL MEDIA PROTECTION 
------------------------ 
 
8.  (SBU) Two plants in Kazakhstan produce optical discs.  One 
specializes in films and music, the other in software.  Both plants 
have source identification codes (SID's) issued by the IFPI 
(International Federation of the Phonographic Industry) and, as IIPA 
notes, provide samples of their products for use as forensic 
evidence. 
 
---------------------------- 
SOFTWARE INDUSTRY ENGAGEMENT 
---------------------------- 
 
9.  (SBU) According to local Microsoft representatives, all newly 
procured government computers have licensed software.  While some 
older government computers may still be loaded with unlicensed 
software, overall the Microsoft representative expressed strong 
satisfaction with the government procurement situation.  Most 
recently, Microsoft founder Bill Gates and the CEO of Samgau 
(Kazakhstan's state-owned technology and innovation holding company) 
signed an MOU on plans for future cooperation in the development of 
educational technologies, as well as collaboration in IPR protection 
and enforcement.  Microsoft is recognized for its successful 
engagement in defense of IPR in Russia; its enhanced partnership 
with the GOK is expected to improve IPR protective capacity in 
Kazakhstan, with a particularly heavy focus on the prevention of 
internet-related piracy. 
 
10.  (SBU) Despite the positive relations developing between 
Microsoft and the GOK, Microsoft representatives recommend that 
Kazakhstan be placed on the Special 301 Watch List. Recent findings 
from Microsoft-funded research indicated that levels of privately 
used pirated (or unlicensed) software remains extremely high. 
According to their data, 92.9 percent of privately owned PC's in 
Kazakhstan utilize of illegally obtained software. (Note: Their data 
also indicated that the overwhelming majority of respondents 
believed piracy rates would decrease if the prices of commercially 
available software were to be lowered.  This opinion was also shared 
by the General Prosecutor's Office. End note.) 
 
--------------------------------------------- ----- 
SCHEDULED AND ENACTED IPR LEGISLATIVE IMPROVEMENTS 
--------------------------------------------- ----- 
 
11.  (SBU) During the reporting period, Kazakhstan continued to 
pursue legislative changes that strengthen the government's hand in 
protecting intellectual property rights.  The legal basis for 
preventing and prosecuting IPR violations remains the "Law on 
Amending Legislative Acts of the Republic of Kazakhstan on the 
Issues of Intellectual Property", which entered into force on 
November 26, 2005. This law amended the country's Criminal Code, 
Criminal Procedure Code, Civil Code, Administrative Code, and the 
Copyright Law as they pertain to the protection of intellectual 
property (ref B).  Amendments to the Patent Law were ratified in 
2007, significantly simplifying the patent system (as compared with 
the old Soviet two-stage system) and bringing it into closer 
conformity with international standards. 
 
12.  (SBU) Proposed amendments to the Copyright Law, Law on Trade 
Marks, Law on Licensing, and Customs Code are currently being 
evaluated by independent experts.  Proposed amendments to the 
Copyright Law have been praised by private industry representatives 
in as much as they directly address the weaknesses hindering 
copyright enforcement in civil courts (see para 7 above).   New 
amendments will relieve IPR holders of the heavy burden of proof, 
and will facilitate effective law enforcement. In accordance with 
WIPO requirements, the draft amendments also detail the use of 
technical means for the protection of copyrights, specifically 
prohibiting the removal of any types of technical or coded copyright 
protection technologies. The IPR Committee is confident that the 
proposed amendments to the Licensing Law stipulating mandatory 
licensing for the commercial reproduction of any copyright protected 
audio and visual recordings meet WTO requirements.  These amendments 
are scheduled to come before Parliament in late May-early June 
2008. 
 
13.  (SBU) Amendments to Customs Legislation granting ex officio 
authority to customs agents are scheduled to come before Parliament 
in November 2008.  These amendments will grant customs agents the 
authority to more readily seize counterfeit goods at the border, 
which has long been recommended by the International Intellectual 
Property Alliance (IIPA.) 
 
------------------------------------- 
IIPA REPORTING AND CONCERNS ADDRESSED 
------------------------------------- 
 
14.  (SBU) Over the last several years, IIPA reporting has 
consistently reiterated several concerns regarding the development 
and efficacy of IPR protective measures in Kazakhstan.  They have 
also, however, continued to report several significant inaccuracies. 
 
 
15.  (SBU) The IIPA report states that "only the Ministry of Justice 
(Copyright Office) and not the police can bring charges for 
[administrative violations]" and recommends "that the existing 
police authority be broadened to include administrative violations 
as well."  Article 620 of the Administrative Violations Code 
specifically provides such powers to the police. 
 
16.  (SBU) The IIPA's assertion that the 2004 statutes only provide 
for a 50-year term of copyright protection is inaccurate, as the 
November 2005 amendments specifically provide for the extension of 
copyright protection to 70 years, in keeping with international 
standards. 
 
17.  (SBU) The IIPA repeats another error from its 2006 and 2007 
reports, overstating the minimum damages threshold for criminal 
prosecution.  IIPA misinterprets what it calls "
the key amendment" 
in the November 2005 legislation. i.e., the change to Article 184 of 
the Criminal Code, which repealed the undefined "huge damage" 
threshold for criminal cases and replaced it with a threshold of 100 
Monthly Calculation Units (MCU's).  The IIPA incorrectly reported 
that one MCU is the equivalent of 36,495 tenge ($304), when in fact 
it is currently set to just 1,168 tenge ($9.60).  Thus, the IIPA 
overstates the all-important minimum damages threshold for criminal 
prosecution by a factor of more than thirty. 
 
18. (SBU) The IIPA cites Kazakhstan's need to establish a legal 
basis for the confiscation and destruction of equipment used in the 
criminal manufacture of pirated goods.  The IPR Committee continues 
to assure post that a combination of statutes in the Criminal Code 
and the Criminal Procedure Code constitutes an adequate provision 
for the confiscation of such equipment. Moreover, the IPR Committee 
has stated that such confiscations are routinely carried out and do 
not require a court order.  A court order is necessary only to 
destroy such equipment -- a procedural requirement which the IPR 
Committee defends as necessary to preserve potentially material 
evidence. It should also be noted that the abovementioned proposed 
amendments to the Copyright Law will require judges, in the event of 
a conviction, to make a ruling regarding the named piracy equipment. 
This provision is expected to increase occasions in which 
confiscated equipment will be destroyed. 
 
------- 
COMMENT 
------- 
 
19.  (SBU) Kazakhstan's continued progress on and commitment to IPR 
protection merits its continued exclusion from the Special 301 Watch 
List.  The efforts of the IPR Committee within the Ministry of 
Justice are expected to bear fruit in 2008 in the ratification of 
amendments to numerous IPR-related laws.  Post takes growing private 
sector participation in the enforcement of IPR as a very positive 
indicator of progress.  At this stage, acknowledging Kazakhstan's 
significant achievements while stressing to the GOK that they must 
continue to enhance their IPR efforts is a better approach to 
facilitate further U.S.-Kazakhstani IPR cooperation and achieve 
results on the grounds than returning Kazakhstan to Watch List 
status.  End Comment. 
 
ORDWAY

Wikileaks

08ASTANA522, YUSHCHENKO’S VISIT TO KAZAKHSTAN PAYS NO IMMEDIATE

WikiLeaks Link

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
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. #08ASTANA522.
Reference ID Created Released Classification Origin
08ASTANA522 2008-03-17 08:35 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXYZ0000
RR RUEHWEB

DE RUEHTA #0522 0770835
ZNY CCCCC ZZH
R 170835Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 2013
INFO RUCNCIS/CIS COLLECTIVE 0438
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

C O N F I D E N T I A L ASTANA 000522 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
 
E.O. 12958: DECL: 03/14/2018 
TAGS: PGOV PREL EPET KZ
SUBJECT: YUSHCHENKO'S VISIT TO KAZAKHSTAN PAYS NO IMMEDIATE 
DIVIDENDS IN ENERGY SECTOR 
 
Classified By: AMBASSADOR ORDWAY FOR REASONS 1.4 (B) AND (D) 
 
1. (C) Summary: Presidents Yushchenko and Nazarbayev both 
described Kazakhstan - Ukraine relations as excellent during 
Yushchenko's March 5-6 visit to Kazakhstan.  No agreements 
were reached, however, on energy cooperation.  Instead, 
President Nazarbayev publicly pronounced that Kazakhstan will 
not supply oil for the Odessa - Brody pipeline without 
Russia's consent. After Yushchenko's departure, Ukrainian 
diplomats in Astana said that prospects are poor for enhanced 
energy cooperation with Kazakhstan. End Summary 
 
2. (SBU) President Yushchenko of Ukraine travelled to 
Kazakhstan on March 5-6 for a visit timed to coincide with 
the opening of the "Year of Ukraine" events in Kazakhstan. 
Yushchenko said that Ukraine is ready to support Kazakhstan 
in its efforts to promote its political and economic 
interests in Europe.  President Nazarbayev called Ukraine a 
key political and economic partner and noted that trade 
increased by 64% between the two countries in 2007. 
According to Nazarbayev, Kazakhstan is the seventh biggest 
trade partner of Ukraine globally and the second biggest in 
the CIS. 
 
3. (SBU) Energy cooperation was a clear focus of Yushchenko's 
trip, and the two presidents signed a joint statement 
declaring "Kazakhstan and Ukraine plan to expand cooperation 
in Kazakhstan's oil transportation to European markets and to 
continue working on the long-term prospects of developing the 
Odessa-Brody oil pipeline." Beyond the joint statement, 
however, no concrete arrangements were reached, and President 
Nazarbayev stated that Kazakhstan cannot supply oil for the 
Odessa-Brody pipeline without Russian consent.  Nazarbayev 
did offer one glimpse of hope for the future, saying that 
"there is an alternative way to resolve this issue, and that 
is to reach the Black Sea via Baku." 
 
4. (C) On March 12, Poloff discussed President Yushchenko's 
trip with Mihail Lugovoy, the head of the Ukrainian Embassy's 
Trade and Economic Mission and his deputy, Sergey Polishuk. 
Lugovoy was very pessimistic about Ukraine - Kazakhstan 
energy relations.  Ukraine has no leverage with Kazakhstan, 
he said, in part because of a lack of investments in the 
Kazakhstani energy sector.  Moreover, Russia is Kazakhstan's 
closest energy partner.  Poloff asked Lugovoy whether Ukraine 
might benefit from the increases in oil output to occur with 
Tenghiz expansion and initial production at Kashagan. Lugovoy 
expressed doubt, saying that Ukraine's "oil relationship with 
Kazakhstan is poor."  Even by 2015, according to Lugovoy, 
Ukraine will not be receiving oil from Kazakhstan. 
 
5. (C) Lugovoy was even more pessimistic about gas.  He 
became very emotional when discussing the recent announcement 
by Kazakhstan, Uzbekistan, and Turkmenistan that they intend 
to sell gas at "European" prices, a plan which he called 
instigated by Gazprom.  Lugovoy said that Ukraine can battle 
Russia in a gas war, matching price increases with transit 
tariff increases.  With the Central Asian countries, said 
Lugovoy, Ukraine has no countermeasures and is much more 
vulnerable.  Lugovoy concluded by praising the U.S. for its 
efforts on energy security issues and criticizing the E.U. 
countries for their inability to create a unified energy 
policy. 
 
6. (C) Comment: Kazakhstan's downstream ambitions are 
growing. KMG has already made a series of significant 
purchases, most notably its acquisition of 75% of Romania's 
Rompetrol.  KMG also remains interested in several refineries 
in Ukraine. Despite the grim prognosis of Ukrainian 
diplomats, Kazakhstan will continue to engage with Ukraine, 
if only to keep all of its downstream options open.  End 
Comment. 
ORDWAY

Wikileaks

08ASTANA498, KAZAKHSTAN: ALMATY NOTES, FEBRUARY 25 – March 7, 2008

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Reference ID Created Released Classification Origin
08ASTANA498 2008-03-13 06:56 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO3510
RR RUEHAST
DE RUEHTA #0498/01 0730656
ZNR UUUUU ZZH
R 130656Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1979
INFO RUEHVEN/USMISSION USOSCE 1879
RUEHEK/AMEMBASSY BISHKEK 8250
RUEHNT/AMEMBASSY TASHKENT 8128
RUEHAH/AMEMBASSY ASHGABAT 7307
RUEHDBU/AMEMBASSY DUSHANBE 2338
RUEHMO/AMEMBASSY MOSCOW 1521
RUEHAST/USOFFICE ALMATY 0304

UNCLAS SECTION 01 OF 02 ASTANA 000498 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM KZ
SUBJECT: KAZAKHSTAN: ALMATY NOTES, FEBRUARY 25 - March 7, 2008 
 
 
1. The "Almaty Notes" series is intended to maintain focus on 
developments in civil society, the media, and the opposition in 
Kazakhstan's "southern capital" following the move of the Embassy to 
Astana. 
 
--------------------------------------------- - 
True Ak Zhol Changes Name, Shuffles Leadership 
--------------------------------------------- - 
 
2.  Opposition party True Ak Zhol held its fourth party congress in 
Almaty on February 29.  Congress delegates voted to change True Ak 
Zhol's name to Azat (i.e., "free" in Kazakh), in order to better 
distinguish the party from rival Ak Zhol.  Bulat Abilov was elected 
chairman of the renamed party, and Tulegen Zhukeyev was selected to 
be general secretary.  Oraz Zhandosov will remain in the party, but, 
as expected, will no longer hold a leadership position.  (Note: 
Prior to the party congress, Abilov, Zhukeyev, and Zhandosov were 
co-chairmen of True Ak Zhol.  End Note.) 
 
3. The Azat civic movement, a Kazakh nationalist group, plans to 
challenge True Ak Zhol's new name, Khasen Kozha-Akhmet, the leader 
of the organization, announced at a press conference in Almaty on 
March 4.  According to Kozha-Akhmet, Azat civic movement activists 
interpreted True Ak Zhol's move as an attempt to steal their own 
popular name.  The Azat civic movement was established in 1990 and 
re-registered in 2001.  Kozha-Akhmet cited Article 18 of the Law on 
Public Associations, which does not permit two public associations 
to have identical names.  On these grounds, the Azat civic movement 
is filing a complaint with the Ministry of Justice.  Should the 
Ministry ignore the complaint, the Azat civic movement will file 
suit in court against Bulat Abilov and his associates. 
 
----------------------- ----------------------- 
Abilov Ready For Dialogue With The Authorities? 
----------------------- ----------------------- 
 
4. "Many individuals in the Ak Orda [i.e., the Presidential 
Administration] and outside of it want to portray me as the 
President Nazarbayev's enemy, but I am not, we just have different 
views," opposition leader Bulat Abilov stated in an interview with 
the Vremya daily on March 6.  Abilov indicated that he is ready for 
dialogue with the government.  "And it looks like the Ak Orda has 
begun to understand this," he explained.  Abilov cited the recent 
appointment of Kairat Keimbetov to be head of the Presidential 
Administration as evidence of progress.  Abilov described Kelimbetov 
as a "person of democratic beliefs," who will say the right things 
to Nazarbayev. 
 
------------------------------------------ 
Protest Against Shopping Mall Construction 
------------------------------------------ 
 
5. TV Channel 31 reported that on March 1 in Almaty, approximately 
20 activists from the Azat (formerly True Ak Zhol) party and the 
Shanyrak civic movement held a demonstration on Almaty's Republic 
Square to protest against a new shopping mall that the city 
administration had started constructing under the square.  The 
protesters contended that it is inappropriate to build a shopping 
mall on a site where two decades earlier a "popular uprising for 
independence" took place.  (Note:  In December 1986, there were mass 
protests on the square by Kazakh youth in response to the removal of 
Kazakhstan's ethnic-Kazakh Communist Party First Secretary and his 
replacement by an ethnic Russian.  The protests were violently 
broken up by the Soviet authorities, reportedly resulting in several 
hundred deaths throughout Almaty.  End Note.)  The police detained 
eight protestors and held them at a local police station for four 
hours.  The following day, three demonstrators were fined and one 
received a warning.  The city administration had issued a permit for 
the demonstration -- but on the basis that it be held at a location 
on the outskirts of the city. 
 
----------------------------------- 
Karasu Residents Defend Their Homes 
----------------------------------- 
 
6. According to www.zonakz.net, on February 21, residents of Karasu 
village outside of Almaty blocked local authorities from demolishing 
13 of their homes.  Approximately 40 court officials and policemen 
accompanied a demolition team which was prepared to bulldoze the 
houses.  Local residents learned about the plans in advance and 
invited activists from the Shanyrak civic movement, residents of 
other locales victimized by demolitions, and media representatives 
to assist them in preventing the demolitions.   With the local 
residents armed with stones and bottles, the demolition team was 
forced to withdraw.  The residents now plan to appeal the results of 
an auction in which their houses and land had been sold to a little 
 
ASTANA 00000498  002 OF 002 
 
 
known company at a rock-bottom price. 
 
----------------------------- 
Underground Casinos in Almaty 
----------------------------- 
 
7. Almaty municipal police closed yet another underground casino on &
#x000A;February 29.  This was the tenth illegal casino discovered by police 
since the beginning of the year. 
 
ORDWAY

Wikileaks

08ASTANA497, KAZAKHSTAN PLEDGES SUPPORT FOR DUSHANBE TIFA MEETING,

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Reference ID Created Released Classification Origin
08ASTANA497 2008-03-13 00:44 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO3356
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0497 0730044
ZNR UUUUU ZZH
R 130044Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1978
INFO RUCNCIS/CIS COLLECTIVE 0436
RUEHAST/USOFFICE ALMATY 0303

UNCLAS ASTANA 000497 
 
SIPDIS 
 
DEPT FOR SCA/CEN - O'MARA 
STATE PASS USTR FOR EHAFNER 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ETRD EFIN ECON PREL KZ
SUBJECT:   KAZAKHSTAN PLEDGES SUPPORT FOR DUSHANBE TIFA MEETING, 
SUPPORTS DRAFT AGENDA IN PRINCIPLE 
 
REF: (A) 03/08 Hafner email to Central Asian posts 
      (B) Astana 00128 
 
1.  (SBU) Damigul Kabiyeva, Head of the Ministry of Industry and 
Trade's WTO Accession Department, told econoff on March 11 that 
while Kazakhstan has no preference as to the location of 2008 TIFA 
Council Meeting, the GOK welcomes Tajikistan's invitation to host 
the event in Dushanbe in early June, and is willing to assist in 
coordinating the gathering. 
 
2. (SBU) Per ref A, econoff shared with Kabieyeva our preliminary 
draft TIFA agenda.  She said she supported the agenda in principle, 
noting that streamlining customs procedures and facilitating 
regional trade provide an appropriate focus for the meeting. 
Kabieyeva did, however, express doubts as to the ability of 
participating TIFA member states to establish effective working 
groups prior to June. 
 
3. (SBU) Kabiyeva reiterated Kazakhstani concerns that after three 
years of participation in TIFA, there are few demonstrated results. 
Kazakhstan remains anxious to see TIFA and the Council Meetings "go 
from dialogue to practical measures" (see ref B).  She said that 
TIFA would greatly benefit from having a governance structure, 
perhaps similar to that of Eurasian Economic Community, which could 
establish a schedule for future Council Meetings based on a rotating 
roster of hosts and agenda items.  Kabiyeva contended that this 
would facilitate the preparation done by experts and working groups 
in advance of future Council Meetings, thereby allowing for more 
results-oriented annual gatherings.  Finally, Kabiyeva repeated her 
Ministry's recommendation that representatives of international 
trade organizations be encouraged to attend as well, as they could 
offer relevant and valuable perspectives on the challenges to 
regional trade. 
 
4. (U) Kabiyeva and her deputy, Saadat Assanseiteva, remain the 
principal working level contacts in the GOK for TIFA issues. 
 
ORDWAY

Wikileaks

08ASTANA494, KAZAKHSTAN’S GAS EXPORTS: NOT YET ABUNDANT, BUT

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Reference ID Created Released Classification Origin
08ASTANA494 2008-03-12 11:13 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXRO2589
PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHTA #0494 0721113
ZNY CCCCC ZZH
P 121113Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1970
INFO RUCNCIS/CIS COLLECTIVE 0435
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC

C O N F I D E N T I A L ASTANA 000494 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
DOE FOR EKIMOFF 
COMMERCE FOR HUEPER 
 
E.O. 12958: DECL: 03/12/2018 
TAGS: PGOV PRL EPET KZ
SUBJECT: KAZAKHSTAN'S GAS EXPORTS:  NOT YET ABUNDANT, BUT 
PRICIER 
 
REF: A. ASTANA 480 B. ASTANA 206 C. ANKARA 358 
 
Classified By: AMBASSADOR ORDWAY FOR REASONS 1.4(B) AND (D) 
 
1. (C) Summary:  Kazakhstan, along with Uzbekistan and 
Turkmenistan, plans to sell its gas exports at "European 
prices" in 2009.  KazMunayGas President Uzakbay Karabalin 
announced Kazakhstan's intent at a meeting in Moscow between 
Gazprom and energy officials from Kazakhstan, Turkmenistan, 
and Uzbekistan.  On March 12, Prime Minister Masimov 
confirmed to the Ambassador that Kazakhstan will raise its 
gas prices.  Nevertheless, oil, not gas, remains the biggest 
money-maker in Kazakhstan and gas will continue to be 
re-injected at Tenghiz (and at Kashagan in the future), 
limiting the volumes available for export. End Summary. 
 
Russia Encourages Kazakhstan to Raise Gas Prices 
--------------------------------------------- --- 
 
2. (C) On March 11 in Moscow, KazMunayGas President Uzakbay 
Karabalin joined energy officials from Uzbekistan and 
Turkmenistan in announcing the intent of all three countries 
to sell gas exports at "European prices." In a conversation 
with the Ambassador on March 12, Prime Minister Masimov 
confirmed Kazakhstan's plans. According to Masimov, Russia 
proposed the idea, under which Caspian gas will be sold at 
"European" market prices. The new pricing policy will apply 
to all countries downstream of Russia, including Ukraine, 
Belarus, and Georgia. Masimov said that Kazakhstan realizes 
that its decision will be extremely unpopular with those 
countries.  Kazakhstan's announcement comes not long after 
Minister of Energy and Natural Resources Sauat Mynbayev told 
the Ambassador that a Trans-Caspian gas pipeline makes little 
economic sense for Kazakhstan because of the small netback in 
comparison with other options. (Reftel A). 
 
At $100 a Barrel, Kazakhstan Remains an Oil Country 
--------------------------------------------- ------ 
 
4. (C) Kazakhstani officials are optimistic about future gas 
production.  Musabek Isayev, KazMunaiGas Managing Director 
for Gas Projects, told Poloff that Kazakhstan projects that 
volumes of commodity gas will increase from 13 billion cubic 
meters in 2007 to 30 billion cubic meters by 2020. 
 
5. (C) For the major international energy companies, however, 
oil remains the focus, for now. At Tenghiz, most gas is being 
reinjected into the reservoir to promote crude production - 
which is more profitable.  TenghizChevroil's current gas 
production is only 4 bcm, and is expected to rise to only 7 
bcm with the second generation expansion which will come on 
line later this year.  Gas is also expected to be reinjected 
at Kashagan when it begins production (Reftel B).  (Note: In 
reftel C, EU Nabucco Coordinator Van Aartsen incorrectly 
stated that companies are reinjecting in Kazakhstan "for lack 
of other commercial opportunities" and that Chevron and 
ExxonMobil have not been approached by the USG to make gas 
available for Nabucco.  In fact, USG officials have discussed 
the availability of Kazakhstani gas for the European market 
with the companies on a number of occasions.  For the IOCs, 
however, reinjection -- which promotes crude production -- is 
a commercial decision motivated by the high price of oil and 
the uncertainty of Trans-Caspian gas transport options. The 
IOCs also have concerns with reservoir management, and they 
believe that proper stewardship of the reservoir requires 
reinjection). 
 
6. (C) Comment: Kazakhstan's oil and gas strategies differ. 
With oil production booming, and set to increase, Kazakhstan 
needs diversified transportation routes and multiple 
partnerships.  The GOK does not exhibit the same flexibility 
in the gas sector, where it is most interested in maximizing 
its netbacks in realization that it does not have enough gas 
to support multiple pipelines.  Until gas production ramps up 
and more attractive deals are offered, Kazakhstan is 
increasingly comfortable in selling gas to Russia, 
particularly with Russia now pushing a more profitable 
pricing plan. End Comment. 
ORDWAY

Wikileaks

08ASTANA485, KAZAKHSTAN BEGINS THE DIFFICULT AND DELICATE TRANSITION

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Reference ID Created Released Classification Origin
08ASTANA485 2008-03-12 04:52 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO2259
RR RUEHAST RUEHBI RUEHCI RUEHLH RUEHLN RUEHPW RUEHVK RUEHYG
DE RUEHTA #0485/01 0720452
ZNR UUUUU ZZH
R 120452Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1957
INFO RUCNCIS/CIS COLLECTIVE 0432
RUCNCLS/SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHVEN/USMISSION USOSCE 1876

UNCLAS SECTION 01 OF 03 ASTANA 000485 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SCA/CEN - MARTY O'MARA 
 
E.O. 12958: N/A 
TAGS: PGOV SOCI KDEM KZ
 
SUBJECT: KAZAKHSTAN BEGINS THE DIFFICULT AND DELICATE TRANSITION 
FROM RUSSIAN TO KAZAKH 
 
 
------- 
Summary 
------- 
 
1. (SBU) Kazakhstan is slowly transitioning from Russian to Kazakh 
as the primary language of governance.  Spoken by only a minority of 
Kazakhstanis at the time of independence, demographic shifts and 
government programs have increased the prevalence of Kazakh in 
Kazakhstani society.  However, the transition to Kazakh has been 
plagued by delays and many hurdles remain which the government will 
have to surmount before Kazakh becomes Kazakhstan's primary 
language.  Kazakhstan's Russian-speaking minority groups have not 
strongly opposed the move to Kazakh, although this may change if 
language requirements significantly limit their job and educational 
opportunities in the future.  End Summary. 
 
--------------------------------------------- - 
Kazakh: "State Language," But Proficiency Lags 
--------------------------------------------- - 
 
2. (U) At the time of Kazakhstan's independence, ethnic Kazakhs 
constituted a minority of the country's population. (Note: "Kazakh" 
refers to the ethnic Kazakh population of Kazakhstan and the Kazakh 
language.  "Kazakhstani" is the term for a citizen of Kazakhstan 
without regard to ethnicity or native language.) Beginning during 
the Russian Empire, and then accelerating throughout the Soviet 
period, successive waves of non-Kazakhs came to inhabit present-day 
Kazakhstan, largely through Stalin's deportations and Khrushchev's 
Virgin Lands campaign.  These migrations coupled with the linguistic 
Russification of urban Kazakhs firmly entrenched the Russian 
language in Kazakhstan to a greater degree than any of the other 
Central Asian republics. 
 
3. (U) At the time of Kazakhstan's independence, the Kazakhstani 
government adopted the principle that promoting Kazakh was an 
important element of state-building and establishing the country's 
Kazakh identity.  The 1993 Constitution proclaimed Kazakh as the 
"state language" while Russian -- the tongue of the majority of the 
populace and, in practical terms, the language in which business was 
done -- was relegated to the status of the "language of interethnic 
communication."  The 1995 Constitution uses an even more ambiguous 
formulation, with Article 7 stating that Kazakh is the state 
language but Russian is to have equal status. 
 
4. (SBU) Today, Kazakh is more prevalent than it was at the time of 
independence.  Emigration of non-Kazakh-speaking minority groups and 
higher ethnic Kazakh birthrates have altered Kazakhstan's 
demographics in favor of its Kazakh population.  Moreover, even if 
they do not speak it at home, young people are more likely to learn 
Kazakh than they were a generation ago as a result of the growing 
number of primary and secondary Kazakh-language schools. 
Nevertheless, Russian remains the lingua franca in Kazakhstan. 
Approximately 30 percent of ethnic Kazakhs speak little or no Kazakh 
and few non-Kazakhs -- who at present represent just under half of 
the country's overall population -- are proficient in the language. 
In a 2005 USG-funded poll of 1500 Kazakhstanis, 70 percent of those 
polled in person elected to respond to the survey in Russian. 
 
--------------------------------- 
State's Switch to Kazakh Hampered 
--------------------------------- 
 
5. (SBU) The Kazakhstani government's objective is to make Kazakh 
the sole language of internal government documents, according to 
Professor Dr. Yerden Kazhybek, the Chairman of the Committee of 
Languages in the Ministry of Culture and Information.  At the same 
time, Russian translations of public documents would be made 
available, if there is demand for such versions, he explained. 
Kazhybek contended that three-quarters of the government's 
ministries and 61 percent of regional administrations have made the 
transition to Kazakh. 
 
6. (SBU) Efforts to use Kazakh as the language of governance have, 
however, been hindered by the high number of civil servants who 
speak no Kazakh or are not sufficiently proficient to function in 
the language in an office environment.  Stories have circulated 
about internal government documents being written in Russian, 
translated into Kazakh for transmission to another government 
department, and then immediately translated back into Russian at 
their destination.  Moreover, while translation bureaus placed in 
government ministries were intended to remain in place only until 
the ministry in which each was located officially made the switch to 
Kazakh, many have remained in place after the target date passed. 
Because of these problems, Kazhybek admitted that the transition had 
slowed the "functioning of agencies" as the agencies simply reduced 
the number of documents they produced and encountered other problems 
 
ASTANA 00000485  002 OF 003 
 
 
operating with Kazakh as the language of business. 
 
7. (SBU) Plans to rectify these issues by providing K
azakh language 
instruction to civil servants have also run into problems.  Though 
many Kazakhstani government agencies do provide such courses, they 
have been limited by a lack of qualified Kazakh language teachers. 
Moreover, available Kazakh instructional materials are of poor 
quality and many civil servants have simply refrained from making 
the effort to attend, according to Kazhybek. 
 
8. (SBU) During the Soviet period, Kazakh was left to linguistically 
languish as Russian dominated technical and academic fields. 
Consequently, Kazakh today simply lacks words for many modern 
objects and concepts.  A large government initiative seeks to tackle 
this problem, according to Kazhybek.  University research groups and 
technical specialists in a variety of fields have been tasked with 
developing new terms in Kazakh.  These terms are then vetted by 
Kazakh linguists and submitted for approval to the Institute of 
Linguistics.  The final stage of authorization for new terms is the 
Special National Terminological Committee.  However, this initiative 
is far from complete and often even native Kazakh speakers are not 
comfortable discussing technical subjects in Kazakh because they 
generally received a higher education in those fields in Russian. 
 
----------------------------------- 
Promoting Kazakh Among the Populace 
----------------------------------- 
 
9. (SBU) In addition to its plans to transition to Kazakh as the 
primary language of governance, Kazakhstan has also sought to 
promote the Kazakh language as a key element of the 
post-independence nation-building project.  In his February 2008 
annual state of the nation address, President Nazarbayev underscored 
the importance of all people obtaining a "deep mastery" of the state 
language.  Toward this end, Nazarbayev demanded that the responsible 
government agencies improve teaching quality, develop better 
audio-visual instructions, and improve study tools.  Kazhybek 
explained that over 40 language centers have opened throughout the 
country to increase public proficiency in Kazakh, a number which is 
to be increased to more than 100 by 2010.  He added that the 
government is investing in improving Kazakh instructional materials 
and plans to launch a web portal which will include a variety of 
Kazakh teaching tools.  However, the language centers will only be 
able to provide instruction to a few thousand people -- hardly 
sufficient to allow all Kazakhstanis "mastery" of the language -- 
and Kazakhstan's low level of internet penetration will keep the new 
web portal beyond the reach of most of the population. 
 
10. (SBU) The government also must grapple with a host of hurdles to 
promote Kazakh in its educational system.  Many parents are 
reluctant to send their children to schools which exclusively use 
Kazakh because they are perceived to be less academically rigorous. 
Most of Kazakhstan's highly-educated teachers teach in Russian, and 
Kazakh langauge textbooks are generally inferior to their Russian 
equivalents.  In 2007, Vice Minister of Education Kuliash 
Shamshitdinova complained publicly about these shortcomings. 
Nazarbayev remarked in his 2008 state of the nation address that the 
number of Kazakh language publishing houses must be increased so 
that competition can foster the development of better textbooks. The 
situation is not much better in the commercial marketplace. 
Browsing the shelves of the growing number of modern bookstores in 
Almaty and Astana suggests that there is at best a tiny supply of 
Kazakh-language books available. 
 
--------------------------------------------- ----- 
Balancing Minority Concerns and Kazakh Nationalism 
--------------------------------------------- ----- 
 
11. (SBU) Kazakhstan's government is caught between its aim of 
strengthening Kazakh identity and a desire to avoid alienating the 
various minority groups which collectively constitute almost half of 
Kazakhstan's population, all of which speak Russian as their primary 
language.  To assuage the concerns of the country's non-Kazakh 
speakers (and as an acknowledgement that many ethnic Kazakhs also do 
not speak fluent Kazakh), Kazakhstan's transition to Kazakh has been 
repeatedly delayed.  Moreover, the government has maintained 
considerable flexibility in its language requirements for civil 
servants because it wants to keep the issue from becoming unduly 
divisive, according to Kazhybek.  This is a priority for Nazarbayev, 
who stated in an August 2007 speech that discrimination against 
those who do not speak Kazakh is unacceptable. 
 
12. (SBU) Kazakh nationalists, on the other hand, are increasingly 
frustrated by the slow pace of linguistic transition.  They believe 
that ethnic Kazakhs and the Kazakh language remain under threat in 
Kazakhstan.  The National Front to Fight for the Status of the 
 
ASTANA 00000485  003 OF 003 
 
 
Kazakh Language was recently founded to press the government to 
speed the transition, though it remains to be seen whether this 
organization will follow through with a threat to launch protests if 
its demands are not met. 
 
------- 
Comment 
------- 
 
13. (SBU) Though Kazakh nationalists and minority rights 
organizations both feel aggrieved by the government's current 
policy, mainstream Kazakhstani public opinion does not yet seem to 
be divided over the issue.  However, this could change in the coming 
years, particularly if the government opts to strengthen Kazakh 
language requirements for civil servants or for graduation from or 
entry to educational institutions.  As government efforts to 
transition to Kazakh begin to affect a wider portion of the 
populace, the prospects for vocal opposition to the program could 
increase.  Considerable doubt remains as to whether Kazakhstan's 
minority groups -- particularly the sizable Russian population -- 
will ever learn Kazakh.  Moreover, the lack of an effective program 
of Kazakh-language education in Russian-language schools only 
perpetuates the problem for generations to come. End Comment. 
 
ORDWAY

Wikileaks

08ASTANA480, KAZAKHSTAN: PRESSURE BUILDING FOR NEW OIL EXPORT

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Reference ID Created Released Classification Origin
08ASTANA480 2008-03-11 09:37 2011-08-30 01:44 CONFIDENTIAL Embassy Astana

VZCZCXYZ0000
PP RUEHWEB

DE RUEHTA #0480/01 0710937
ZNY CCCCC ZZH
P 110937Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1950
INFO RUCNCIS/CIS COLLECTIVE 0430
RUEHAK/AMEMBASSY ANKARA 2149
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC

C O N F I D E N T I A L ASTANA 000480 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
ENERGY FOR EKIMOFF 
COMMERCE FOR HUEPER 
 
E.O. 12958: DECL: 03/05/2018 
TAGS: PGOV PREL EPET KZ
SUBJECT: KAZAKHSTAN: PRESSURE BUILDING FOR NEW OIL EXPORT 
ROUTES 
 
REF: A. ASTANA 206 B. ASTANA 225 C. ASTANA 338 D. 
     ASTANA 354 
 
Classified By: AMBASSADOR ORDWAY FOR REASONS 1.4(B) AND (D) 
 
1. (C) Summary:  On February 27, ExxonMobil Kazakhstan 
General Manager Steven Rose gave the Ambassador a detailed 
overview of ExxonMobil's presentation to Kazakhstan on the 
Kazakhstan Caspian Transportation System (KCTS).  ExxonMobil 
is attempting to be the Kashagan consortium's lead voice in 
KCTS negotiations.  A primary theme of the presentation is 
that Kazakhstan will face significant oil transport problems 
without additional export routes. While ExxonMobil is pushing 
for an ownership interest of the pipeline portion of KCTS, 
Energy Minister Mynbayev told the Ambassador separately on 
February 28 that Kazakhstan will build the pipeline on its 
own.  End Summary 
 
Clock Ticking on KCTS 
--------------------- 
 
2. (C) Steven Rose, ExxonMobil Kazakhstan General Manager, 
showed the Ambassador on February 27 an extensive briefing 
that ExxonMobil gave to KazMunaiGas on their vision for the 
Kazakhstan Caspian Transportation System (KCTS) (Note: Rose 
said that ExxonMobil would be able to share the same briefing 
material with Eurasian Energy Diplomacy Coordinator Mann). 
Rose told the Ambassador that ExxonMobil is trying to head 
the Kashagan consortium's KCTS negotiations, although Total 
has thus far opposed ExxonMobil's leadership. Rose first 
showed the Ambassador ExxonMobil's projections on oil 
production in Kazakhstan through 2020.  ExxonMobil's basic 
message, said Rose, is that "time is running short" because 
current routes are "tightening up". The surge will result 
largely from increased Tenghiz output and the start of 
Kashagan production.  (Rose believes Kashagan will initially 
produce at least 300,000 barrels per day (bpd) and could push 
up to 400,000 to 450,000 bpd.) Rose added that KCTS must come 
on line before CPC expansion and expressed his belief that 
the Russians will not invest in CPC until there is another 
competing route. 
 
3. (C) Rose then defined for the Ambassador ExxonMobil's core 
principles for KCTS. ExxonMobil must have guaranteed priority 
access to export capacity, the right to expand capacity, 
stable tariffs, and guarantees of timely construction.  Rose 
said that KazMunaiGas officials raised no concerns when told 
of these core principles. 
 
4. (C) Rose told the Ambassador that the Eskene-Kurik 
pipeline will have a capacity of up to 60-90 million tons per 
annum (1.2 to 1.8 million bpd). The pipeline will have a 42 
to 48 inch line, with two to four pumping stations between 
Eskene and Kurik.  Section two of the system is the 
trans-Caspian marine transport.  Rose said tankers are the 
starting point with a Trans-Caspian pipeline a future 
consideration.  He noted that a pipeline and tankers are not 
mutually exclusive because tankers provide security if 
another route is lost. Rose defined section three of the 
system as terminal and storage facilities near Baku and 
connection to the Baku-Tbilisi-Ceyhan pipeline and to other 
post-Baku routes.  Rose noted that ExxonMobil and Kazakhstan 
should be natural allies in developing this strategy - both 
have stakes in CPC but not in BTC. 
 
5. (C) Rose said that ExxonMobil believes that Kazakhstan's 
concession law allows them to help build and finance the 
pipeline while Kazakhstan maintains its ownership stake. 
Priority access to the KCTS pipeline would belong first to 
the Kashagan consortium and to Tenghizchevroil, then to 
equity crude from owners, and then to third parties as 
determined by Kazakhstan.  In other words, said Rose, "let us 
move our crude and then if there is excess, move it in." 
 
6. (C) The Ambassador asked Rose if Kazakhstan could build 
the Eskene-Kurik pipeline itself.  Rose responded that 
Kazakhstan has the technical ability to build it.  The 
question, however, is whether they have the financing.  Rose 
noted that ExxonMobil is paying $1.2 billion a year at 
Kashagan, and KMG is likely accruing similar costs.  If 
Kazakhstan does build the pipeline, Rose again emphasized, 
ExxonMobil would require guarantees of stable tariffs, 
capacity, and rational rate increases. 
 
7.(C) In a meeting with the Ambassador on February 28, 
 
Minister of Energy and Natural Resources Sauat Mynbayev 
stated that Kazakhstan intends to build the Eskene-Kurik 
pipeline on its own.  Financing will not be a problem, he 
said.  If need be, Kazakhstan will dip in to its National 
Fund.  Mynbayev also told the Ambassador that Kazakhstan 
realizes it will need to offer stable tariffs and other 
guarantees with the pipeline.  (Comment:  Mynbayev's 
statement may help to explain why KMG has been "quiet on the 
pipeline front" with ExxonMobil, according to Rose.  However, 
Mynbayev's comments may not represent the final word on the 
Eskene - Kurik pipeline, as Kazakhstan's leadership has 
delivered a mixed message on
its pipeline strategy. Chevron 
has also proffered a plan calling for a 25% share of the 
pipeline (reftel C), although Chevron's Eurasia Strategic 
Business Unit Managing Director James Johnson recently told 
the Ambassador that Chevron will be comfortable with 
Kazakhstan building the pipeline as long as it establishes 
the necessary guarantees.) 
 
Mynbayev on Trans-Caspian Gas, New Production 
--------------------------------------------- 
 
8. (C) Minister Mynbayev told the Ambassador that a 
Trans-Caspian gas pipeline makes little economic sense for 
Kazakhstan because the netback will be too small.  Mynbayev 
also noted an advantage of the Pri-Kaspiskiy gas pipeline. 
Kazakhstan is building an internal gas pipeline to lessen its 
dependence on Uzbekistan for gas.  With Kazakhstan's gas 
shortages in its south but its gas in its north, the 
Pri-Kaspiskiy makes added sense because it will allow 
Kazakhstan to swap Turkmen gas and avoid moving its own gas 
from north to south. 
 
9. (C) Mynbayev told the Ambassador that ExxonMobil will soon 
get an answer, and counterproposal, from Kazakhstan on 
ExxonMobil's attempt to establish an AMI (area of mutual 
interest) in an on-shore area from north of Atyrau to the 
Russian border.  ExxonMobil hopes to perform a study of the 
area after the establishment of the AMI in order to determine 
its potential. 
 
Comment 
------- 
 
10. (C) Rose's presentation, and Mynbayev's comments to the 
Ambassador, indicate that Kazakhstan and its commercial 
partners have not yet reached a consensus on key details of 
KCTS.  All sides seem to understand, however, the increased 
urgency of moving forward with KCTS to ensure that it is 
functioning when Kazakhstani oil production ramps up 
significantly in the next decade. 
 
ORDWAY

Wikileaks

08ASTANA474, KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, FEBRUARY 2 – 22,

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Reference ID Created Released Classification Origin
08ASTANA474 2008-03-11 01:48 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO0942
RR RUEHLN RUEHVK RUEHYG
DE RUEHTA #0474/01 0710148
ZNR UUUUU ZZH
R 110148Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1940
INFO RUCPCIM/CIMS NTDB WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCNCIS/CIS COLLECTIVE 0427
RUEHAK/AMEMBASSY ANKARA 2146
RUEHBUL/AMEMBASSY KABUL 0381
RUEHNE/AMEMBASSY NEW DELHI 0494
RUEHAST/USOFFICE ALMATY 0290

UNCLAS SECTION 01 OF 03 ASTANA 000474 
 
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, FEBRUARY 2 - 22, 
2008 
 
 
ASTANA 00000474  001.2 OF 003 
 
 
1.  Summary:  This information is drawn primarily from the 
Kazakhstani local press, and has not been verified for accuracy. 
 
-- Bilateral Talks with Canada Completed 
-- New Head of Samgau Holding Appointed 
-- General Electric Begins New Era of Cooperation 
-- EBRD to Invest over $1 Bln in Kazakhstan 
-- Agricultural Sector News 
-- Results of Kazyna in 2007 
-- State To Acquire Stake in Ekibastuz GRES-1 
-- Greenoak Group Might Manage Batumi Oil Terminal for KMG 
-- KMG To Build Gas Refinery 
-- Government's Initiatives on Subsoil Use Issues 
-- Energy Statistics for January of 2008 
 
Bilateral Talks with Canada Completed 
------------------------------------- 
 
2.  A protocol completing bilateral talks between Canada and 
Kazakhstan for WTO accession was signed.  According to the 
Vice-Minister of Industry and Trade Aitzhanova, Kazakhstan had to 
compromise by reducing import tariffs for such goods as aircraft, 
whisky and tobacco.  At the same time, she pointed out, Kazakhstan 
managed to protect the interests of agricultural producers. 
(Kazakhstan Today News Agency, February 13) 
 
New Head of Samgau Holding Appointed 
------------------------------------------- 
 
3.  Replacing Azamat Abdymomunov, former presidential aide Serik 
Burkitbaev was appointed the new CEO of the national scientific and 
technological holding company Samgau.  Samgau was established in 
2007 with the goals of creating a modern communication 
infrastructure and unifying existing national information and 
communication resources.  Samgau is comprised of 12 companies 
including "Katelko" (national broadcasting company), "KazTeleRadio" 
(TV and radio company), KazPost (national postal service), and 
KazSatNet (satellite technology.) (Interfax-Kazakhstan, February 
15) 
 
General Electric Begins New Era of Cooperation 
---------------------- ----------------------- 
 
4.  The government of Kazakhstan and General Electric International 
(GE) signed a partnership memorandum on February 21.  In the words 
of the President and CEO of General Electric International, Nani 
Beccalli-Falco, this is a new era in the partnership between GE and 
Kazakhstan.  The memorandum outlined many priority sectors of 
cooperation including oil and gas transportation, power generation, 
bio-fuels and alternative energy, mining, uranium enrichment, 
investment management, the development of the transportation 
infrastructure, and machine building.  (Interfax-Kazakhstan, 
February 22) 
 
EBRD to Invest over $1 Bln in Kazakhstan 
---------------------------------------- 
 
5.  "I think that in 2008 we will sign new projects worth over $1 
billion, with approximately half of the sum to go to the banking 
sector," Andre Kuusvek, the EBRD country director for Kazakhstan, 
told a news conference at the Interfax office in Almaty.  The EBRD 
will continue to operate loan programs for small and medium business 
in the country, he said, adding that some five Kazakh commercial 
banks will take part in the program this year.  In addition, the 
EBRD "will try to open the market of syndicated loans for Kazakh 
banks" in the second half of 2008.  (Central Asia General Newswire, 
February 19) 
 
Agricultural Sector News 
------------------------ 
 
6.  The Government of Kazakhstan (GoK) lifted and decreased import 
tariffs for agricultural equipment.  According to the GoK's 
regulation, import duties were significantly reduced for seeders 
(from 5% to 0%) and caterpillar tractors (from 15% to 5%.)  A zero 
 
ASTANA 00000474  002.2 OF 003 
 
 
percent import duty has also been established for other large farm 
machinery including cultivators, ploughs, and harrows.  The GoK 
believes that this measure will boost import of agricultural 
equipment from non-CIS countries.  The Customs Union formed by 
Russia, Belarus and Kazakhstan will also continue to enjoy duty-free 
imports of agricultural machinery.  (Interfax-Kazakhstan, February 
8) 
 
7.  The GoK increased state subsidies for several crops.  According 
to the Agriculture Minister Yesimov, subsidies per hectare were 
raised from 1,200 tenge ($10) to 4,800 tenge ($39.7) for oilseeds, 
from 10,174 tenge ($84.2) to 50,000 tenge ($414) for sugar beet, and 
from 9,000 tenge ($74.5) to 12,000 tenge ($99.3) for melons and 
vegetables.  He also annou
nced about a new subsidy of 1,500 tenge 
($12.4) per hectare for potatoes.  (Interfax-Kazakhstan, February 
18) 
 
Results of Kazyna in 2007 
------------------------- 
 
8.  According to Kazyna Chairman Arman Dunayev, the Kazyna 
Sustainable Development Fund earned a 4.86 billion tenge (around 
$39.657 million) profit in 2007.  This was achieved as a result of a 
significant reduction in expenditures, Dunayev said.  The 
accomplishment marks a significant turnaround for Kazyna, whose 
losses totaled 4.636 billion tenge (around $36.78 million) in 2006. 
(Interfax-Kazakhstan, February 12) 
 
State To Acquire Stake in Ekibastuz GRES-1 
---------------------- ------------------- 
 
9.  Prime Minister Karim Masimov ordered the state-owned company 
Samruk Energo to conduct negotiations with Kazakhmys PLC to acquire 
a 33-50% stake in Ekibastuz GRES-1, a coal-fired power plant in 
Pavlodar province.  On February 5, 2008, Kazakhmys signed an 
agreement to buy Ekibastuz GRES-1 and the Maikuben West open coal 
mine from AES Corporation.  (Panorama newspaper, February 8) 
 
Greenoak Group Might Manage Batumi Oil Terminal for KMG 
--------------------------------------------- ---------- 
 
10.  Kazakhstan's national oil and gas company KazMunayGas (KMG) 
plans to hand its management rights on the Batumi Oil Terminal to 
Danish-led Greenoak Group.  On February 6, 2008, KMG acquired a full 
stake in the terminal from Greenoak and its partners.  (Interfax - 
Kazakhstan, February 8) 
 
KMG To Build Gas Refinery 
------------------------- 
 
11.  By April of 2008, KMG intends to complete a technical 
feasibility study and an economic cost analysis for building the 
Karachaganak-based Aksai Gas Refinery with an initial transit 
capacity of 5 billion cubic meters of gas a year.  Karachaganak gas 
shipped to the Aksai Gas Refinery will meet domestic demand, while 
gas transported to the Orenburg Gas Refinery will be exported. 
(Interfax - Kazakhstan, February 12) 
 
Government's Initiatives on Subsoil Use Issues 
---------------------- ----------------------- 
 
12.  Prime Minister Karim Masimov ordered Kazakhstan's Holding for 
State Assets Management "Samruk" to create a national mining and 
metals company that will manage state stakes in all mining and 
metals projects similar to KMG representing state interests in the 
oil and gas industry.  (Interfax - Kazakhstan, February 8) 
 
13.  Emergency Minister Vladimir Bozhko notified Prime Minister 
Masimov that he warned Arcelor Mittal Temirtau that its mining 
license will be revoked if the company does not improve its labor 
safety standards. Masimov proposed to amend the subsoil use law to 
strengthen labor safety requirements in subsoil use contracts. 
(Kazakhstan Today, February 19) 
 
Energy Statistics for January of 2008 
 
ASTANA 00000474  003.2 OF 003 
 
 
------------------------------------- 
 
14.  According to the National Statistics Agency, in January of 
2008, Kazakhstan produced 4.903 million tons of crude (5.4% more 
than in January of 2007) and 1.058 million tons of gas condensate 
(15.4% more year-on-year.)  Coal production in Kazakhstan rose 11.2% 
to 10.17 million tons.  Electricity production grew 9% to 8.196 
billion kilowatt-hours.  (Interfax - Kazakhstan, February 13) 
 
 
ORDWAY

Wikileaks

08ASTANA473, KAZAKHSTAN: ASSESSMENT TRIP

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Reference ID Created Released Classification Origin
08ASTANA473 2008-03-11 01:47 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO0940
PP RUEHAST RUEHBI RUEHCI RUEHLH RUEHPW
DE RUEHTA #0473/01 0710147
ZNR UUUUU ZZH
P 110147Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 1936
RUCNCLS/SCA COLLECTIVE
RUEHC/SECSTATE WASHDC//US CUSTOMS AND BORDER PROTECTION/ 1937

UNCLAS SECTION 01 OF 02 ASTANA 000473 
 
SIPDIS 
 
STATE FOR INL (BALABANIAN); SCA/CEN (OMARA), SCA/RA 
 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SNAR KCRM KCOR PREL KZ
 
SUBJECT: KAZAKHSTAN: ASSESSMENT TRIP 
 
 
1.  Summary:  From February 25 through 27, Post assessed the 
premises of the Border Guard Service in two cities for the 
establishment of a new classroom.  The Border Guard Divisions on the 
Kazakhstani-Russian border discussed additional needs with the 
representatives of the Embassy and the International Organization 
for Migration (IOM).  End Summary. 
 
2.  On January 18, Post met with General Major Khussain Berkaliyev, 
First Deputy Director of the Border Guard Service.  He requested the 
opening of additional training classrooms along the border.  As part 
of the INL sponsored IOM "Enhancing Immigration Inspection and 
Border Control on the Border of Kazakhstan with Uzbekistan" project, 
one classroom was renovated and opened in Saryagash 
(South-Kazakhstan oblast) on the Kazakhstani-Uzbek border in 
November 2006.  General Major Berkaliyev has been pleased with the 
use of the classrooms for the professional development of the border 
guards. 
 
--------- 
KOSTANAY 
--------- 
 
3.  On February 25, the Embassy's International Narcotics and Law 
Enforcement (INL) Section visited the border control division in 
Kostanay (Northern Kazakhstan) with IOM.  The head of the border 
station in Kostanay showed the premises available for training, but 
the rooms were not large enough.  An alternate building shown to the 
assessment group was a good site, however it was being used by 
support personnel and would require some reconstruction to create a 
large-enough training room.  The Border Guard Service has decided to 
separate border control and border patrol personnel and assign them 
to separate buildings. The alternate building would not be available 
until the reorganization process is completed. 
 
------------------------ 
MOBILE GROUP IN KOSTANAY 
------------------------ 
 
4.  Aidar Balgabayev, the Head of the Border Guard Division of 
Kostanaiskaya oblast, requested that Post provide assistance in 
equipping mobile groups during a pilot phase.  The Division covers 
the 1,380 km border along the territory of the Kostanay oblast. 
Twelve checkpoints are located along that portion of the border. 
Passenger flow through the Kairak automobile checkpoint was 70,000 
people and 20,000 vehicles in July 2007.  The border areas between 
the border guard checkpoints are not well guarded.  According to the 
Head of the Division, the green zone is not equipped with sensors. 
Mobile groups would patrol the area between three sectors Uzynkol, 
Karabalyk and Zhetykara and the mobile group may be based in 
Karabalyk. 
 
5.  Vehicles with good off-road capabilities are the priority need. 
Traffickers use better vehicles such as Hunters and Urals with good 
off-road capabilities.  Border guards cannot catch traffickers with 
their old UAZ vehicles.  Among necessary equipment requested are 
mobile night vision devices, stationary and mobile means of 
communication, radar guidance systems, vehicle inspection equipment, 
drug detectors, and gear for three different seasons. 
 
6.  The border guards would like to staff the mobile groups with 
four people, including one officer and three contractors, one of 
which will drive the vehicle.  If larger vehicles are provided, the 
ideal mobile group would consist of up to seven people, including a 
canine specialist and dog. 
 
7.  The Border Guard Service will send INL the proposal for the 
mobile groups pilot project in mid-March.  The Border Guard Service 
also has requested assistance in obtaining the list of standard 
equipment with which the U.S. Border Patrol mobile groups are 
equipped.  They would also like to learn more about the experience 
and functions that U.S. Border Patrol mobile groups perform. If the 
initial mobile groups prove their effectiveness, the Border Guard 
Service will introduce more of them on the most vulnerable sections 
of the border.  According to Berkaliyev, the mobile group project is 
part of a larger effort to strengthen the green zone. 
 
------- 
URALSK 
------- 
 
8.  Together with IOM representative and the Head of the Border 
Guard Military Unit in Uralsk, post has assessed the premises 
proposed for the training classroom.  Three rooms are available for 
training.  It will be necessary to do slight renovations, but 
otherwise the rooms in the administrative building are suitable for 
the establishment of a training classroom.  A bus would be needed to 
transport participants.  The training classroom would be used by 
participants from Aktobe, Atyrau and Aktau (Western Kazakhstan). 
 
ASTANA 00000473  002 OF 002 
 
 
 
------------- 
OTHER NEEDS 
------------- 
 
9.  New checkpoints Kaztalovka, Saikhin and Dzhanibek opened on the 
Kazakhstani-Russian border six months ago and are in need of 
assistance.  The checkpoints have no infrastructure, water, light or 
c
ommunications.  Duman Yelemessov, the Head of the Uralsk Border 
Guard Military Unit, requested modular shelters for the three 
checkpoints.  They also need dogs, though Yerzhan Ospanov, the First 
Deputy Head of added that conditions would need to be improved at 
the checkpoints. 
 
--------- 
COMMENTS 
--------- 
 
10.  The training classroom will be established in Uralsk. 
Assistance for mobile groups could be provided in Kostanay.  Foreign 
expertise is necessary during the initial stages of creating the 
mobile groups.  The Border Guard Service does not yet have a clear 
picture of how the mobile groups should function. 
 
ORDWAY

Wikileaks

08ASTANA437, EXBS KAZAKHSTAN ADVISOR’S MONTHLY REPORTING CABLE (FEBRUARY

WikiLeaks Link

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Reference ID Created Released Classification Origin
08ASTANA437 2008-03-07 03:13 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO7879
RR RUEHAST
DE RUEHTA #0437/01 0670313
ZNR UUUUU ZZH
R 070313Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1902
RUEAORC/US CUSTOMS SERVICE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RULSJGA/COMDT COGARD WASHINGTON DC
RUEKJCS/SECDEF WASHDC 0095
RHEBAAA/USDOE WASHDC//NNSA//
RUEKJCS/JCS WASHDC 0018
RUCQAAA/USCINCCENT MACDILL AFB FL
RUEHRL/AMEMBASSY BERLIN 0467
RUEHEK/AMEMBASSY BISHKEK 8248
RUEHNT/AMEMBASSY TASHKENT 8126
RUEHKB/AMEMBASSY BAKU 0040
RUEHDBU/AMEMBASSY DUSHANBE 2336
RUEHAH/AMEMBASSY ASHGABAT 7305
RUEHAST/USOFFICE ALMATY 0287

UNCLAS SECTION 01 OF 02 ASTANA 000437 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR ISN/ECC YWONG, ACHURCH, JHARTSHORN, SROBINSON 
DEPT FOR ISN/ECC-AMT LSPRINGER 
DEPT FOR EUR/ACE DFISCHER 
DEPT FOR SCA/RA JSPILSBURY 
DEPT FOR SCA/CEN MO'MARA 
DEPT FOR EXPORT CONTROL AND RELATED BORDER SECURITY 
CBP/INA FOR KCHAISSON AND RWATT 
USDOE/NNSA CWALKER, TPERRY AND EDESCHLER 
DOC FOR DCREED 
USCG FOR SHABETIMICHAEL 
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 (FEBRUARY 
2008) 
 
 
I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS: 
 
1. U.S. Assistant Secretary of State for South and Central Asia 
Richard Boucher visited Kazakhstan from February 9-11, 2008. On 
February 11, 2008, Assistant Secretary Boucher met with Kazakhstan 
President Nursultan Nazarbayev and discussed Kazakhstan's 2010 OSCE 
chairmanship, energy issues, and regional cooperation.. 
 
2. The March 9-12 scheduled visit to the United States of 
Kazakhstan's Prime Minister Karim Masimov has been cancelled.  Prime 
Minister Masimov was scheduled to meet with Vice-President Richard 
Cheney, State Secretary Condoleezza Rice, Commerce Secretary Carlos 
Gutierrez, Energy Secretary Samuel Bodman, and Trade Representative 
Susan Schwab, high-ranking officials of the World Bank, and the 
International Monetary Fund. 
 
II. COMPLETED ACTIONS FOR THE REPORTING PERIOD 
 
A. SITE ASSESSMENTS AND MEETINGS CONDUCTED 
 
1. On February 4, 2008, the EXBS team accompanied Ms. Laurel Cotton, 
the Project Coordinator for the U.S. Department of Energy's Second 
Line of Defense (SLD) Program, to a meeting in Astana with 
Kazakhstan Customs Control Committee officials to discuss a broad 
range of matters concerning the SLD program, including training and 
equipment delivery issues. The Customs Control Committee was 
represented by Ermek Smagulov, Deputy Head of the Customs Control 
Organization Department; and Alexandra Vozhakova, Head of 
Radioactive Materials and Technical Means Department. 
 
2. From February 5-8, 2008, Laurel Cotton, the Project Coordinator 
for the U.S. Department of Energy's Second Line of Defense (SLD) 
Program, and Alexandra Vozhakova, Head of Radioactive Materials and 
Technical Means Department of the Kazakhstan Customs Control 
Committee, visited various border crossing along Kazakhstan's 
southern border to assess the progress of the work done thus far 
toward the Phase One installation of the SLD Radiation Portal 
Monitors.  They also had the opportunity to look at a fully 
functional Radiation Portal Monitor installed by the Government of 
Kazakhstan.  To date the Government of Kazakhstan has purchased and 
installed 40 fixed and two mobile Radiation Portal Monitor systems 
manufactured by Ural Aspect. 
 
3.  On February 10, 2008, a Country Team meeting was held with U.S. 
Assistant Secretary of State for South and Central Asia Richard 
Boucher in attendance.  During this meeting the EXBS advisor briefed 
the Assistant Secretary on EXBS and the U.S. Department of Energy's 
Second Line of Defense (SLD) Program in Kazakhstan. 
 
4. On February 13, 2008, the EXBS advisor met with Martin O'Mara, 
the State Department desk officer for Kazakhstan.  Discussions 
centered around the assistance provided by EXBS during the last year 
and on the proposed plan for assistance during 2008.  Also discussed 
was the Department of Energy's Second Line of Defense (SLD) program 
in Kazakhstan. 
 
5. On February 20, 2008, a Diplomatic Note was delivered to the 
Kazakhstan Ministry of Foreign Affairs informing the Government of 
Kazakhstan of the Government of the Kingdom of Norway's contribution 
of $5 million in support of the Second Line of Defense Program 
efforts to install radiation detection equipment along the 
Kazakhstan/Russian border. 
 
ASTANA 00000437  002 OF 002 
 
 
 
6. On February 21, 2008, a Security Assistance Working Group (SAWG) 
meeting was held in Astana, Kazakhstan.  In addition to the Astana 
SAWG members this meeting was also attended by CDR Mark Sullivan, 
DTRA International Project Manager, and Bob Zesinger, SAIC Project 
Consultant, WMD Proliferation Prevention Initiative. 
 
B.  TRAINING DURING THE REPORTING PERIOD 
 
1.  None 
 
C. EQUIPMENT DELIVERED DURING THE REPORTING PERIOD 
 
1.  None 
 
D. IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE 
 
1. The Department of Energy Second Line of Defense 
Program is continuing its project to install portal monitors at 
border sites.  The SLD equipment for Phase One installation began to 
arrive in Kazakhstan from Russia in four rail shipments on February 
5, 2008, and the final shipment arrived on February 27, 2008. EXBS 
successfully assisted in obtaining customs release for all the SLD 
equipment in Almaty. 
 
 
E. SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS, NONPROLIFERATION, OR 
RELATED BORDER SECURITY 
 
 1. None. 
 
F. CASPIAN SECURITY INFORMATION 
 
      1. None 
 
III. RED FLAG ISSUES. 
 
1. None 
 
 
 
ORDWAY

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08ASTANA433, JAPAN AND UK TO PROVIDE FUNDING FOR PHYSICAL

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Reference ID Created Released Classification Origin
08ASTANA433 2008-03-06 11:06 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXYZ4555
RR RUEHWEB

DE RUEHTA #0433 0661106
ZNR UUUUU ZZH
R 061106Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1888
INFO RHEBAAA/DEPT OF ENERGY WASHDC

UNCLAS ASTANA 000433 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
SCA/CEN FOR M. O'MARA 
DOE FOR C. KENNEDY 
 
E.O. 12958: N/A 
TAGS: KNNP KGIC MCAP KZ
SUBJECT: JAPAN AND UK TO PROVIDE FUNDING FOR PHYSICAL 
PROTECTION UPGRADES AT ALATAU AND ULBA 
 
 
1. (SBU) On March 5, PolOff met with embassy representatives 
from Japan and the United Kingdom to discuss the projects of 
their countries at the Institute for Nuclear Physics (INP) in 
Alatau and at the Ulba Metallurgical Plant.  Both the U.K. 
and Japan are focusing on physical protection projects. 
 
2. (SBU) Martin Child, Political Officer at the British 
Embassy, told Poloff that the United Kingdom intends to 
provide over $550,000 to INP for security upgrades.  The 
funding will pay for a closed circuit television system and 
an alarm system.  Child said that $1.5 million is needed to 
fully complete the security upgrade at Alatau. 
 
3. (SBU) Shion Kawai of the Japanese Embassy reported that 
Japan is providing funding to both Alatau and Ulba.  Japan 
intends to spend $3,225,000 at Ulba.  The money will be used 
to renovate a fence, install closed circuit television, and 
improve the security of the entrance gate.  Japan has 
allocated $800,000 for Alatau, which will be spent primarily 
on construction and renovation of the main fence at INP. 
 
4. (SBU) Child reported that the U.K. has become frustrated 
with a lack of progress at Alatau.  He read aloud an e-mail 
from Simon Evans, Deputy Director of the Global Threat 
Reduction Office, who said that there are "problems across 
the board." Shion complained of a lack of coordination among 
the relevant Kazakhstani ministries and agencies.  Child said 
that he sensed the Kazakhstanis may try to play donors off of 
each other.  When Child told the Kazakhstanis that he planned 
to coordinate with the Japanese, the Kazakhstanis discouraged 
the idea. 
 
5. (SBU) Nevertheless, both countries are moving ahead with 
their projects.  A delegation from Japan will travel to 
Kazakhstan in April to inspect Ulba and Alatau in order to 
further develop Japan's program plan.  The U.K. is hoping 
that a representative from its Global Threat Reduction Office 
can join the Japanese delegation. Child and Kawai said that 
their countries are interested in further coordination with 
the United States. 
 
ORDWAY

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08ASTANA431, EMBASSY ENERGY OFFICERS IN ASTANA

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Reference ID Created Released Classification Origin
08ASTANA431 2008-03-05 11:07 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXYZ8400
RR RUEHWEB

DE RUEHTA #0431 0651107
ZNR UUUUU ZZH
R 051107Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1886
INFO RUCNCIS/CIS COLLECTIVE 0415
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS ASTANA 000431 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG SENV APER ABUD
SUBJECT: EMBASSY ENERGY OFFICERS IN ASTANA 
 
REF: STATE 10743 
 
1. This cable responds to reftel request for information for 
required reports to Congress on energy.  Following are post's 
responses to reftel questions: 
 
A. The Pol/Econ section covers energy issues. Fully-staffed, 
the section has seven officers, one OMS, and five 
locally-employed staff (LES). 
 
B. Post has one FS 0-2 energy officer position.  90% of the 
officer's time is devoted to energy issues.  The section also 
has one energy specialist LES, who devotes 90% of her time to 
energy issues.  In 2008, the Department of Energy intends to 
provide post with a direct-hire officer, and has already 
started the process of hiring one DOE LES. 
 
C. The energy officer monitors, analyzes, and reports on 
Kazakhstan's petroleum, gas, electricity, and nuclear 
sectors.  The officer advocates with the Government of 
Kazakhstan on behalf of U.S. oil and gas companies.  The 
officer monitors, analyzes, and reports on petroleum and gas 
export issues. 
 
D. FY 2007 Post Expenditures on Energy-Related Activities: 
 
Direct-Hire Energy Officer 
Travel: $12,329 (also includes travel by LES Specialist) 
Representational Events: $200 
 
Pol-Econ LES Energy Specialist 
Base Salary: $20,700 
Total (including benefits): 29,830 
 
 
ORDWAY

Wikileaks

08ASTANA422, KAZAKHSTAN: ALMATY NOTES, FEBRUARY 11 – 22, 2008

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Reference ID Created Released Classification Origin
08ASTANA422 2008-03-04 10:43 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO4488
RR RUEHAST
DE RUEHTA #0422 0641043
ZNR UUUUU ZZH
R 041043Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1877
INFO RUEHVEN/USMISSION USOSCE 1875
RUEHEK/AMEMBASSY BISHKEK 8247
RUEHNT/AMEMBASSY TASHKENT 8125
RUEHAH/AMEMBASSY ASHGABAT 7304
RUEHDBU/AMEMBASSY DUSHANBE 2335
RUEHMO/AMEMBASSY MOSCOW 1520
RUEHAST/USOFFICE ALMATY 0269

UNCLAS ASTANA 000422 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM KZ
SUBJECT: KAZAKHSTAN: ALMATY NOTES, FEBRUARY 11 - 22, 2008 
 
 
1. The "Almaty Notes" series is intended to maintain focus on 
developments in civil society, the media, and the opposition in 
Kazakhstan's "southern capital" following the move of the Embassy to 
Astana. 
 
KNB Trying to Discredit Alga? 
----------------------------- 
 
2.  The National Security Committee (KNB) is launching a campaign to 
discredit the un-registered Alga party, the party claims.  The KNB 
plans to focus on persuading ethnic Kazakhs to reject Alga on the 
basis that its leadership is dominated by ethnic Russians.  Two 
weeks ago a KNB officer reportedly tried to recruit Sholpan Musina, 
an Alga staff member.  The officer told Musina she should be an 
ethnic Kazakh patriot and cooperate with the KNB.  (Alga Party 
newspaper, February 14) 
 
Sergey Duvanov's Summer House Robbed 
------------------------------------ 
 
3. On February 21, well-known opposition journalist Sergey Duvanov 
reported that his summer house in the village of Kaynar, Almaty 
Oblast, had been robbed.  Duvanov said that two watch dogs 
disappeared and the intruders took away some of his belongings, but 
claimed that the robbery appeared to be staged.  A copy of the 
opposition newspaper Respublica was tacked up on the inside of the 
entrance door.  Duvanov alleged that the incident was an attempt to 
intimidate him.  He filed a police report requesting an 
investigation. (zonakz.net, February 21) 
 
Almaty Mayor Derides Opposition, Abilov Responds In Turn 
------------------------- ------------------------------ 
 
4. Almaty Mayor Imangali Tasmagambetov derided the Kazakhstani 
opposition during a meeting with Almaty residents on February 12. 
"One [oppositionist] opposes Almaty street crossings, but uses them. 
 He opposes his wife, but eats the dinner she cooked.  The other one 
is a temporary oppositionist who returns to the government when he 
is invited and goes back to the opposition when he is chided," 
Tasmagambetov said in response to a question by a Svoboda Slova 
correspondent about a construction project on Almaty's Republic 
Square.  (www.almaty.kz, February 13) 
 
5. "Imangali, how can you explain to your children where you got 
your luxurious house that cost several million U.S. dollars, when 
you are just a public servant?," opposition leader Bulat Abilov said 
in public remarks in response to Tasmagambetov.  Abilov claimed that 
Tasmagametov's house includes a stable and tennis court.  He accused 
Tasmagambetov of making a fortune of "billions" by illegally selling 
municipal land through his son-in-law.  Abilov contrasted 
Tasmagametov's wealth with the disastrous situation in Almaty's 
underfunded schools and hospitals. (Svoboda Slova weekly, February 
21) 
 
Almaty Migrants 
--------------- 
 
6. Skilled labor is in great demand in Almaty, but the majority of 
migrants from rural areas work at local markets in unskilled 
positions, Almaty Mayor Tasmagambetov explained on February 12. 
According to Tasmagambetov, last year the city government allocated 
more than 2.2 billion tenge ($18.3 million) to develop settlements 
for migrants.   Nevertheless, more funds are needed to provide 
sufficient roads and electricity, water, and gas linkages, 
Tasmagambetov reported.  "All our efforts will be half-measures if 
some of these problems are not solved by the national government," 
Tasmagambetov contended.  (Interfax, February 12) 
 
ORDWAY

Wikileaks

08ASTANA421, CONVEYING USG VIEWS FOLLOWING IAEA BRIEFING ON 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. #08ASTANA421.
Reference ID Created Released Classification Origin
08ASTANA421 2008-03-04 09:53 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXYZ3068
RR RUEHWEB

DE RUEHTA #0421 0640953
ZNR UUUUU ZZH
R 040953Z MAR 08
FM AMEMBASSY ASTANA
TO SECSTATE WASHDC 1876

UNCLAS ASTANA 000421 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KNNP MNUC PARM IAEA KZ
SUBJECT: CONVEYING USG VIEWS FOLLOWING IAEA BRIEFING ON IRAN 
 
REF: STATE 19694 
 
Pol-Econ Officer delivered reftel non-paper to Sergey 
Savelyev, MFA Office Director for International Security. 
Savelyev had no immediate substantive comment but promised to 
closely consider the U.S. position. 
ORDWAY

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08ASTANA415, KAZAKHSTAN: DEMARCHE DELIVERED ON CANDIDACY OF WILLIAM

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To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
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. #08ASTANA415.
Reference ID Created Released Classification Origin
08ASTANA415 2008-03-03 11:23 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXYZ4494
RR RUEHWEB

DE RUEHTA #0415 0631123
ZNR UUUUU ZZH
R 031123Z MAR 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 1872
INFO RUEHGV/USMISSION GENEVA 0969
RUEHDK/AMEMBASSY DAKAR 0020

UNCLAS ASTANA 000415 
 
SIPDIS 
 
DEPARTMENT FOR IO/UNP 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREF PREL SMIG KZ
SUBJECT: KAZAKHSTAN: DEMARCHE DELIVERED ON CANDIDACY OF WILLIAM 
SWING FOR DIRECTOR GENERAL OF IOM 
 
REF: State 19491 
 
Poloff delivered reftel demarche and biography to Sergey Savelyev, 
Deputy Director of the MFA's Department of International 
Organizations, on February 29.  Savelyev agreed to pass the 
information to Kazakhstan's delegation to the OIC Summit in Dakar, 
Senegal.  He offered no substantive response to the demarche, and 
made no commitments concerning a meeting for Ambassador Swing with 
the Kazakhstani delegation in Dakar. 
 
ORDWAY

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