Economic Relations between Kazakhstan and Russia

industrial groups;

. Cooperating and development fuel and energy of complexes of Russia and

Kazakhstan;

. Cooperating in sphere of transport;

. Cooperating of Kazakhstan and Russia in mastering vehicle launching of

Baikonur;

. Cooperating in mastering natural riches of the Caspian sea;

. Scientific - technological cooperating;

. Cooperating in the market of agricultural production.

The historically folded trade ratios of the countries of the Eurasian

region, including Russia and Kazakhstan from times “Silk road” - allow to

hope for success in a development of economic cooperating in modern

conditions.

At the same time it is necessary to mark the common tendencies,

natural for the new independent countries. The orientation to the market of

long-distance foreign countries makes production of raw in branches of the

countries rarely for them raw refined in branches, as last valid by

considerably lower, than world, efficiency of the manufacture can not

acquire production first on world or close to world prices. Stronger links

with the world market of branches of the states of Commonwealth inevitably

preclude with their demand for production domestic resource refinery of

branches by virtue of its non-competitiveness in the world market. It

inevitably reduces different branches to of an economic development

resource producers and resource refinery of branches in the countries of

CIS.

2.3 Engaging the foreign investments

The participation of the foreign capital promotes the decision of the

following tasks:

- Heightening of efficiency of an export potential, overcoming of its raw

directedness and development import substitute of manufactures;

- Heightening of a scientific and technical level of production with the

help new scientific of techniques, methods of management and selling of

production;

- Magnifying of tax receipts in the state budget;

- Assistance to a development backward and depressive of regions and

creation of new workstations in national economy;

- Use of modern industrial and administrative experience through tutoring

and retraining of the staff.

It is necessary to mark, that the cooperating of Kazakhstan and Russia

can explicate in different regions of economy. For power engineering and

mineral operational life’s priority directions are: the opportunity of an

effective shared use of mineral operational life’s, introduction new and

development of available processing manufactures oriented on export to long-

distance foreign countries, creation of a reliable system energy supply,

development of the transport communications, which development is

stipulated by presence of investment operational life’s.

Figure 1. Structure of the direct foreign investments in Kazakhstan in 2000

[pic]

In structure of the direct foreign investments in Kazakhstan the share

of Russian Federation makes 5 %. In spite of the fact that the Russian

economy requires not less to investment means, the enclosure of the

investments serves the factor of interest by Kazakhstan. The interests of

Russia consist, first of all, in natural operational life (oil, coal, ore

etc.), mastering and development.

2.4 Cooperating in the field of electric power industry

As other step which has strengthened a positions of power branch, it

is possible to name creation on the basis of bankrupt CJSC “Ekibastuz

Energy Center”, half of which shares the European Economic Community of

Russia on account of cancellation of duties of Kazakhstan for the electric

power was transferred to the Russian partners from the Russian Academy of

Science.

Since 2000 the integrated power Grid of Kazakhstan works in a parallel

condition from European Economic Community of Russia and grid system of the

countries of Central Asia.

The parallel operation of electric power systems has allowed

considerably to boost quality of electrical power and reliability of

electro supply of consumers of Kazakhstan, Central Asia and Russian

Federation, operatively to realize flow both transit of electrical power

and powers, it is more rational to use power powers of electrical stations.

The electric power system of Kazakhstan and Russian Academy of Science

European Economic Community of Russia is called secure each other in case

of crashes. It will ensure with the electric power not only Republic Of

Kazakhstan, but also Southern Ural.

With the purposes of a heightening of efficiency of a parallel

operation the measures on simplification of customs procedures are studied

at migration of electrical power through the customs boundary.

The operation coal extraction of the enterprises is stabilized. In

2002 the production 78 mln of tons coal is forecast, from which more than

25 mln of tons will be exported.

2.5 Cooperating in the field of machine construction industry

The lowering of manufacture in machine construction industry and

metalworking is called by aggravation of a financial condition of basic

consumers of machine-building production, significant rise in price of

import furnishing work pieces.

The cooperating of Russia and Kazakhstan in machine construction

industry is possible at the expense of a shared use of available industrial

potential for issue of competitive production. On basis Kentau excavator

factory assembly manufacture of dredges together with joint-stock company

Tver excavator a factory and joint-stock company Sarex. On Pavlodar

tractor together with joint-stock company the “Altay” motor factory.

Barnaul and Sibzavod (Omsk) it is planned to adjust manufacture of new

tractors, and the enterprises agricultural machinary of Kazakhstan together

with Rostelmash can master assembly manufacture a grain and of combines.

Besides in machine building branch the creation JV on manufacture of

diesel drives (planned on the basis of joint-stock company the “Kustanay”

diesel factory and joint-stock company “Hurrah Laz”) and Transnational of

financial and industrial group “Electropribor”.

2.6 Cooperating in the field of a uranium industry

Annually Kazakhstan extracts and sells about 3 % (1,5 thousand tons)

from it Whole World of production. Production of the National company

“Казатомпром” consumes Russia, USA, Western Europe, Southern Korea and

other countries.

The company “Казатомпром” combines investigation, production and

manufacture of uranium, and also accompanying rarely of elements. Into its

structure go into: joint-stock company “Volkovgoelogy” one of highly

professional in all CIS of the geological enterprises, joint-stock company

“Stepgeology”. Three ore management “Central”, “Steppe”, “Sixth”.

The basic manufacturer of uranium fuel in Kazakhstan - Ulbinski a

metal works. This versatile enterprise specializing on issue rarely metal

and super conducting production, and also special material, used in an

atomic industry, electron technology, instrument making, space engineering.

The raw material - enriched uranium - is made in Kazakhstan or is delivered

from Siberia, on Ulba make of it tablets and deliver them on the Russian

factories, where make ready heat distributor of assembly for atomic power

plants. Ulbinski the metal works occupies the important place in a nuclear-

fuel cycle of Russia and Kazakhstan.

In the near past the nuclear -fuel complex of Russia and Kazakhstan

made a single unit. To tear this line-up was it does not pay Russians,

Kazakhstan.

Last years the Kazakhstan raw material in basic went on export, and

the fuel tablets on Ulbinski factory were manufactured from the Russian raw

material. Besides is acute there was a problem solvency. Russia paid for

services by the consumer goods. An exit from the folded situation became

the offer of the Kazakhstan side to the partners from Russian "«fuel

element" of start-up of a new uranium line-up. As a result of the

enterprise deliver each other necessary components, in particular from

Kazakhstan in Russia - fuel tablets. The financial accounts between the

countries are made at the end of a line-up in accordance with sale of

products higher remake in the exterior market.

Within the framework of this cooperating, with the purposes of an

ascertaining of the greater confidence the National company “Kazatomprom”,

releases the gold share, which is transferred and gives it the right to

superimpose the veto on such decisions of Kazakhstan,

As, for example, refusal to work in one nuclear-fuel cycle to not

produce fuel tablets for Russian Atomic Electric Station or other

irrational variations in the strategy and tactics of behavior in the

market. In turn, Russia has given us assurances of a reliability and long

term of the orders. It concerns uranium, but also tantalum raw material,

beryllium etc. Durability of strategic interests of the sides by the plans

on interchanging the shares Ulbinski factory on the similar shares of the

enterprises of a nuclear -fuel cycle of Russia.

In October, 2000 the long-term contract for manufacture CJSC Ulbinski

factory of dusts of uranium and fuel tablets for AES with their further

annual delivering in Russian Federation up to 200 т of a dust and 300 т of

tablets, on a period till 2005 inclusively is made.

Besides the arrangement on creation of the share enterprise on production

of uranium on deposits “Zarechni and “Budenovski” in Southern Kazakhstan is

reached.

Considering problems of integration of Russia and Kazakhstan, it is

possible to conclude, that the activation of economic links between the

countries directly depends on the decision of legal, political, economic

and ecological problems precluding their more effective activity. The

opportunities by wider attract in a long-term perspective appreciably

depend on those political courses, which will be selected by both

countries. According to our reckoning, the creation of the common market of

Kazakhstan and Russia will allow to support steady solvency demand for

production of real sectors of economy of the countries on the basis of the

long-term target and selective contracts.

Thus, the necessity of effective economic interaction between the

countries stipulates necessity of the further decision of existing problems

and uses of every possible redundancy of premises of rise of manufacture.

3. involvement in international organizations, kazakhstan and russia

For anybody not a secret, that creation and the operation of regional

systems of safety in Central Asia was called by the following basic

reasons:

First, inability of the states becoming in plants of aggressive plans

of the international terrorist architectures, appearing under Islamic by

the slogans and using financial support international extremism of

architectures to give them effective defense;

Secondly, double standards of the conducting countries of West,

including USA, Great Britain, in a ratio of operations of a series of

terrorist architectures considered by them as battle groups national fight

for freedom of driving. By characteristic development of double standards

was, for example, the refusal of the American authorities to satisfy the

request Ministry of Foreign Affairs Peoples Republic Of China about output

gripped in captivities in Afghanistan of hits - citizens of Peoples

Republic of China Uygur of a nationality. A motivation: the Washington does

not consider Driving for independence East Turkestan as terrorist

architecture;

Thirdly, the anti Soviet moods, cultivated in West by decades, in a

defined measure were transformed in anti Russian, especially to first half

90 years. Therefore warnings of Russia, states of Central Asia, closely

face with operations of the international terrorist gangs in Chechnya, in

Batken, about real consequences of their activity were not heard.

It would be possible to explain creation of military-aerial basses of

USA in Afghanistan, Kyrgyzstan, Tadjikistan, Uzbekistan still by war

against a condition taliban. But there is a question, why these basses

began to be established as a matter of fact after completion of an active

military phase of rout taliban of a condition. Moreover, arranging of

basses air force of USA not only in Afghanistan, but also in Kyrgyzstan,

and also Tajikistan bordering with China, on defined reflections. In

particular, involuntarily there is an idea: whether can these basses

hypothetically and in a defined situation to be used as basis of a dual

purpose - not only against hits in Afghanistan, but also against China or

even against Russia.

After September 11 and especially after an overthrow reactionary

taliban of a condition in Afghanistan and ascertaining of the American

military presence in Central Asia basic; in essence there is a

consideration of an opportunity of cooperating of these architectures from

USA, for, without the account of policy of Russia, China and USA and

understanding of principles of a guard by these states of the national

interests, it is impossible to explain a situation in sphere of a safety in

region.

Whether such script of a development of events in next China is

necessary to Kazakhstan and other countries of region.

Uniquely - is not present. The consequences of disorder USSR, as is

known, have done without in tens thousand life and millions refugees.

The important element of regional cooperating is the effective

military-engineering cooperating between the countries by the members DKNB.

Today any country of Central Asia is not capable in the nearest perspective

to refuse from former Soviet, so, present Russian weapon and military

engineering. Hence, the key role of Russia in this direction will be saved.

The important element of regional cooperating is the effective

military-engineering cooperating between the countries - members DKNB Today

any country of Central Asia is not capable in the nearest perspective to

refuse from former Soviet, so, presents Russian weapon and military

engineering. Hence, the key role of Russia in this direction will be saved.

Though other points of view take place also:

a) In opinion of the Uzbek experts, principal reason of an exit of

Tashkent from DKNB was ostensibly refusal of the Russian side to sell to

Uzbekistan necessary arms and military engineering, when the country has

exposed to attacks of gangs of the international terrorists.

In these conditions of Uzbekistan forced to convert to active cooperating

from USA;

b) In mass - media the hearings, on the one hand, are persistently

spreader that Russia ostensibly is not interested in maintenance vehicle

launching of Baikonur, recognizing schedule to transfer all rocket start-

ups on vehicle launching or to realize start-ups from tropics, and with

another - that vehicle launching of Baikonur to Kazakhstan anything, except

for harm, does not bring.

Tragedy of September 11 and military action, which has followed behind

it, of USA in Afghanistan by a radical image, have changed a situation in

our region. In this connection experts of Kazakhstan Contract, being the

member, of collective safety, expected, that the states the members DKNB

will consult among themselves on all questions of the international safety,

including regional, but, unfortunately, such has not taken place also it

once again speaks that one of the reasons of an inefficiency DKNB is an

existing level of ratios between Russia and other sides of the Contract. On

my sight, on the one hand, Russia till now is not ready to equal in rights

partner to ratios with the new independent states, and, with another - in

the countries FSU of space the suspiciousness and uncertainty is still

saved in what policy Russia will realize further.

Therefore, on my sight, the special urgency is acquired now by

necessity of amplification of mutual confidence, openness, knowledge, first

of all, between Kazakhstan and Russia having on FSU space the special level

of ratios and the best premises for creation of allied ratios.

Thus, at folding geopolitical the structure of regional systems of

safety is necessary different level. In particular, Kazakhstan and Russia

should not wait of operations on the part of other countries of region, by

a phantom of the dollar help, and actively be shaded slide on a path not

only economic integration in frameworks EAEU (Euro-Asian Economic Union),

but also development of systems of safety in frameworks DKNB.

Similar situation in a ratio of cooperating with China within the

framework of the Shanghai architecture of cooperating in a direction of

struggle with terrorism, extremism and separatism

Appearing on January 25 this year at the extended meeting of the principals

of the executive authority Republic Of Kazakhstan, the President

N.Nazarbayev has formulated seven tasks facing to government, including in

the field of exterior policy.

January 25, 2002 in Almaty the third session Integration of committee

EAEU (Euro-Asian Economic Union) has passed, on which 28 questions were

considered, from which on 27 the decision is accepted. The totals of

operation of this session, unfortunately, have appeared unfavorable:

a) The participants still were not defined, in what direction it is

necessary to explicate cooperating;

b) Each participant wants first of all to defend the interests, instead

of interests of the partners. Therefore, in particular, customs duties

till now are not strip-chart unified to establish a condition of

preference for mutual trade;

c) The countries EAEU (Euro-Asian Economic Union) tend in WTO, supposing

already others, and very rigid, condition, not having matched the

positions.

Nevertheless of Kazakhstan appears for a development EAEU (Euro-Asian

Economic Union), and also others (organization structures with

participation of Russia, as such policy in finished the score answers

interests without dangerous of our country.

3.1 The Eurasian Union: Realities and Perspectives

For five years already Kazakhstan, Russia, and other post-Soviet

states, most of which are united in the Commonwealth of Independent States,

have developed in the situation of a new political reality as equal agents

of the world order. But the process of the formation of new independent

states and open democratic social systems has just begun.

Without going into detailed critique of the CIS, let us note that all

its activities and all the bilateral and multilateral efforts of its member

states clearly show that the time has come for a more effective, deep, and

diverse integration of the countries involved - the kind of integration

that would achieve a stabilization of the situation in the economy and

ensure its development on a qualitatively new basis. This applies above all

to the economies of Kazakhstan and Russia, which might become the engines

of future integrative processes in the post-Soviet space. There are also

quite a few issues pertaining to cooperation in the military-political,

scientific-technological, humanitarian, and other spheres, which are

awaiting their solution in the framework of a more effective integration

model. The idea of the formation of the Eurasian union of states proposed

by President Nazarbayev is precisely such a model; it organically combines

both the existing realities and the objective needs of today and tomorrow.

Taking into account the differences between our countries in the

levels of development of market economy, in the democratization of

political processes, we propose to establish an additional integrative

structure, the Eurasian Union, whose activities would be combined with

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