09ASTANA238, KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, JANUARY 18-31

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. #09ASTANA238.
Reference ID Created Released Classification Origin
09ASTANA238 2009-02-10 10:25 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO7241
OO RUEHAG RUEHAST RUEHBI RUEHCI RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW
RUEHLA RUEHLH RUEHLN RUEHLZ RUEHNEH RUEHNP RUEHPOD RUEHPW RUEHROV
RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHTA #0238/01 0411025
ZNR UUUUU ZZH
O 101025Z FEB 09
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4569
INFO RUCNCIS/CIS COLLECTIVE 1154
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNCLS/SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0551
RUEHKO/AMEMBASSY TOKYO 1257
RUEHUL/AMEMBASSY SEOUL 0272
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHDC 0644
RHEHNSC/NSC WASHDC 0728
RHEFAAA/DIA WASHDC
RUEAIIA/CIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHAST/USOFFICE ALMATY 1187

UNCLAS SECTION 01 OF 02 ASTANA 000238 
 
STATE FOR SCA/CEN, EEB 
STATE PLEASE PASS TO USTDA FOR DAN STEIN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PINR ECON EFIN ELAB EPET RS KZ
SUBJECT:  KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, JANUARY 18-31 
 
ASTANA 00000238  001.2 OF 002 
 
 
1.  SUMMARY:  The information in this Kazakhstan economic and energy 
update is drawn primarily from the Kazakhstani media and has not 
been further verified for accuracy. 
 
-- Banking Sector News 
-- Labor Market Update 
-- Energy Ministry Asks Government to Support Subsoil Users 
-- Prime Minister Calls for Review of Gas Prices 
-- Kazakhstan and Russia to Sign Oil Transit Agreement 
 
END SUMMARY. 
 
BANKING SECTOR NEWS 
 
2.  The Board of Directors of Halyk Bank appointed Umit 
Shayakhmetova as the new Chairman of the bank's Management Board -- 
a position equivalent to CEO.  She replaces Grigoriy Marchenko, who 
was recently named to head Kazakhstan's National Bank. 
Shayakhmetova graduated from Patrice Lumumba People's Friendship 
University in Moscow in 1993 with a bachelor's degree in economics. 
She earned an MBA from Rutgers University in New Jersey in 1996. 
From 1997 to 2004, Shayakhmetova held various positions at ABN-AMRO 
Bank Kazakhstan.  In 2004, she joined Halyk Bank as Deputy Chairman 
of the Management Board. 
 
3.  According to a statement from the Financial Supervision Agency 
(FSA), Kazakhstan's commercial banks earned a net profit of 15.4 
billion tenge (approximately $126.6 million at the January 29 
exchange rate) in 2008, marking a 92.9% decrease in profits 
year-on-year.  During the same period, the revenue of second-tier 
banks totaled 2,934.7 billion tenge (about $24.1 billion), marking a 
63.5% increase compared to 2007.  Loan portfolios, including 
inter-bank loans, increased by 4.2% in 2008 to 9,238.4 billion tenge 
(about $75.9 billion).  As of January 1, 2009, the banking sector's 
overall loan portfolio was divided as follows:  43.3% standard loans 
(compared to 39.7% as of January 1, 2008), 52.3% doubtful loans (vs. 
58.8% for the previous year) and 4.4% bad loans (vs. 1.5% for the 
previous year). 
 
LABOR MARKET UPDATE 
 
4.  Minister of Labor and Social Protection Berdybek Saparbayev 
reported on January 28 that 5,785 social projects to be funded by 
federal and local budgets will be launched in 2009, creating an 
anticipated 348,000 new jobs. 
 
5.  In response to increased unemployment and concerns about rising 
crime rates, Prime Minister Karim Masimov instructed local 
authorities and ministries to ensure all migrants obtain required 
temporary residence permits, to deport illegal immigrants, and to 
provide more Kazakhstani citizens with jobs. 
 
6.  According to Labor and Social Protection Minister Saparbayev, 
the Government of Kazakhstan may introduce a moratorium on seasonal 
foreign agricultural workers allowed into the country in 2009.  The 
Minister did not, however, specify the date and the duration of this 
moratorium. 
 
ENERGY MINISTRY ASKS GOVERNMENT TO SUPPORT SUBSOIL USERS 
 
7.  Speaking at a government meeting on January 21, Minister of 
Energy and Mineral Resources Sauat Mynbayev asked Prime Minister 
Masimov to lift the moratorium on the issuance of subsoil use 
licenses and reduce mineral extraction tax rates because of the 
global financial crisis and the low price of crude oil.  Mynbayev 
also requested that the government not annul the contracts of 
subsoil users who meet at least 50% of their contractual 
obligations.  According to Mynbayev, as of January 1, 887 subsoil 
use contracts are currently active, and 80% of operators are meeting 
their contractual obligations.  In 2008, the Energy Ministry signed 
104 new contracts and issued 153 warnings regarding violations of 
contractual obligations and license requirements. 
 
 
ASTANA 00000238  002.2 OF 002 
 
 
PRIME MINISTER CALLS FOR REVIEW OF GAS PRICES 
 
8.  On January 21, Prime Minister Masimov ordered the Ministry of 
Energy and Mineral Resources to calculate the impact of Russia's 
anticipated shift to European pricing for gas.  "We need to be very 
well prepared for this transition.  We need to know what it will 
cost us," he said.  Masimov added, "I took part in the gas dispute 
between Russia and Ukraine and there is one very important 
conclusion we must draw:  Russia will move to European prices at 
h
ome and in its exports to Ukraine and other countries in 2011."  On 
January 22, KazMunayGas agreed with Gazprom on a 21% increase in the 
transit fee for gas transported across the country, raising the fee 
from $1.40/tcm per 100 km to $1.70/tcm per 100 km in 2009. 
 
KAZAKHSTAN AND RUSSIA TO SIGN OIL TRANSIT AGREEMENT 
 
9.  Interfax reported on January 22 that Russia's Energy Ministry 
plans to resume preparation of an intergovernmental agreement with 
Kazakhstan on crude transit through 2020, and hopes to sign it 
within next six months.  The agreement would cover the increase of 
the throughput capacity of the Atyrau-Samara oil pipeline to 20 
million tons, the expansion of the Caspian Pipeline Consortium (CPC) 
pipeline, and the construction of the Bourgas-Alexandroupolis 
pipeline. 
 
HOAGLAND

Wikileaks

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: