Kazakhstan Chamber of Commerce in the USA

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President Nazarbayev Meets Chinese President Xi Jinping 0

Posted on May 20, 2014 by KazCham

Tengrinews

On May 19, 2014 Kazakhstan’s President Nursultan Nazarbayev met Chinese President Xi Jinping in Shanghai. They discussed prospects for cooperation in the trade and economic, financial and investments, transit and transport, and agriculture spheres. President Nazarbayev reminded that the plan is to bring the bilateral trade turnover figure to $40 billion a year by 2016.

“Back in September 2013 while in Astana, you voiced the initiative to put in place the Silk Road economic belt. Kazakhstan is ready to contribute to the large-scaled project (…) expected to play a major role in developing the entire region”, President Nazarbayev said.

The two sides have signed a total of 5 documents. Notably, the two foreign ministries have signed a joint declaration. Samruk-Kazyna Sovereign Wealth Fund and China International Trust and Investment Corporation (CITIC) have signed a MoU to develop relations in the oil and gas sector and the mining industry.

Besides, the Development Bank of Kazakhstan and China’s Exim Bank have signed a memorandum to provide $1 billion to modernize Shymkent-based oil refinery. The investments are expected to help enable the refinery to start producing environment-friendly fuel and reach the projected capacity of 6 million tons of fuel a year.

Development Bank of Kazakhstan and China Development Bank (CDB) have signed a master agreement on a credit line of $500 million. The funds are to be used to finance joint projects outside the extraction sector. KazMunaiGas National O&G Company and China’s CNPC have signed a framework agreement to construct a plant in Almaty oblast to produce O&G pipes. The project to be implemented in 2014-2016 is expected to bring $150 million in investments

China becomes Kazakhstan’s leading trading partner 0

Posted on December 25, 2011 by Alex

With a superpower on its doorstep, Kazakhstan looks set to reap dividends from its partnership with its Eastern neighbor. China’s government has set high targets to develop its western Xinjiang region into an industrial hub, including $100 billion of investment in 23 new infrastructure projects. Kazakhstan will be a key supplier for this huge scheme. The country’s share of foreign trade in the Xinjiang region in 2008 reached 40 percent, giving the Central Asian nation unrivalled exposure to what is expected to be one of China’s fastest-growing regions.

Almost all Kazakhstan’s exports to China are raw materials, and China overtook Italy as the country’s leading export partner in 2010, accounting for 17.1 percent of all Kazakh exports. Oil and oil products made up 45 percent of exports in 2009. Mining products – ore, slag and ash – accounted  for 16 percent; iron-based metals, 15 percent; copper and brassware, 13 percent; and chemicals, seven percent. Kazakhstan’s share of imports varies from 10 percent to 60 percent of total Chinese imports across different product types.

Large-scale investment in Kazakhstan appears to be part of China’s global strategy to  secure energy sources for its growing economy. China National Petroleum Corporation (CNPC),  the state energy company, is the largest corporate investor in Kazakhstan, with investments amounting to around $7 billion to date. Total Chinese investment  over 1991-2010 reached $13.5 billion, with the majority directed to the energy sector and energy-related services. Part of this funding was provided in the form of loans and credits, giving China access to Kazakhstan’s mineral resource base.

Investment from Asia is not restricted to China, however.  Japan, India and South Korea are becoming increasingly important partners. The state nuclear holding company, Kazatomprom, teamed upwith Toshiba and Sumitomo in 2010 to mine rare earths in ventures worth $300 million, while Japanese companies have been busy looking at Kazakh agribusiness.

India has held state-level talks on civil nuclear cooperation, while PNB – which became the first Indian bank to enter the Kazakh market when it bought Dana Bank in December – plans to expand its network, and said in February  that: “The close relationship between India and Kazakhstan is one of the factors in our decision to [come to Kazakhstan].”

Meanwhile, in April, LG Chem –  one of South Korea’s largest chemical manufacturers –  announced plans to invest up to $1.3 billion in the second stage of an integrated chemical complex in the Atyrau region of Kazakhstan.

When it comes to sectors, investment flows remain dominated by oil and gas projects, which took in close to half of foreign direct investment (FDI) in 2010. Mining took a large chunk out of the total, but manufacturing (including chemicals), retail and transport and communications infrastructure all attracted healthy volumes, too.

This pattern reflects the government’s recognition that it needs to use the opportunity offered by energy-powered  growth to diversify the economy. Kazakhstan launched a long-term project for Diversification of Kazakhstan’s Economy in 2004. The European Bank for Reconstruction and Development announced it was willing to invest $1 billion to help the program in 2010.

This strategy should open further trade and investment opportunities. As the Organization for Economic Cooperation and Development says: “Kazakhstan has clear competitive advantages in non-energy sectors,” identifying agriculture, chemicals and information technology (IT) as among the most promising.

Kazakhstan’s agricultural sector has extensive arable land resources, high regional demand prospects, growing domestic consumption and an absence of distorting government support in most agribusiness sectors. Specifically, the grain, meat and dairy subsectors are where Kazakhstan shows the greatest potential to successfully compete on global markets.

The largest of the agrichemicals sectors in terms of volume and market value is the mineral fertilizers sector. Kazakhstan has all the basics in place for developing its fertilizer production: deposits of four billion to 15 billion tons of phosphate rock, significant reserves of natural gas and sulfur, and low-cost access to ammonia.

Moreover, with a low current level of fertilizer use, the country’s large potential domestic market remains untapped. It also has major market opportunities in the growing neighboring economies of Central Asia, China and India.

The IT sector in Kazakhstan is nurtured by domestic demand and global requirements, but is still relatively small. The country has strong potential for the provision of IT outsourcing. The government of Kazakhstan has made a commitment to enhance education, particularly in IT. With the low cost of labor compared with key regional competitors such as Russia and existing skill levels, the IT sector is taking advantage of strong demand for its services from government, local businesses and foreign investors already based in Kazakhstan. A high level of broadband penetration and mobile connection compared with its neighbors also make Kazakhstan a potential platform for IT businesses in Central Asia.

SOURCE: Invest in Kazakhstan, 2011, p. 40

Kazakhstan Daily News Roundup – November 7, 2011 0

Posted on November 07, 2011 by Alex

ENERGY:

Areva, Kazatomprom sign deal to produce nuclear fuel for Asia (Dow Jones)

China pipes home 16.9 bcm of Central Asian gas – CNPC (Reuters)

Max Petroleum spuds ‘high impact’ well on Emba B prospect in Kazakhstan (Proactive Investors)

BUSINESS AND ECONOMY:

New beginnings in Central Asia
(bne) – Recent deals by local private equity funds indicate that the combination of the global crisis and the subsequent recovery is finally opening up new opportunities for private equity in Kazakhstan and the wider Central Asian region.

Kazakh grain harvest more than doubles to 29.5 million tonnes (Bloomberg)

Indicators – November 4, 2011 (Reuters)

METALS AND MINING:

Volatile markets force ENRC to delay Shubarkol deal (Reuters)

Hambledon Mining expects to restart operations at mineral process plant November 7(Proactive Investors)

POLITICS AND SECURITY:

Kazakh lawmakers seek to punish terror financiers (Central Asia Online)

Kazakhstani officials, law enfircement not ready for terrorist war – expert (Interfax)

SOCIETY:

Kazakhstan climbs one step up in 2011 Human Development Index (Interfax)

Cyanide pollutes Kazakh river (Central Asia Online)

SOURCE: http://silkroadintelligencer.com/2011/11/07/kazakhstan-daily-news-roundup-november-7-2011/

Kazakhstan Daily News Roundup – February 24, 2011 0

Posted on February 24, 2011 by KazCham

ENERGY:

KEGOC awards $100-million substation rehabilitation order to Hyundai, Korea Electric (SRI)

CNPC, KazMunaiGas in deal to tap Urikhtau gas field (Reuters)

BUSINESS AND ECONOMY:

Banking sector loses $22 million in January – regulator
(SRI) – Kazakhstan’s banking sector posted a cumulative net loss of KZT3.3 billion ($22 million) in January, driven by losses posted by BTA Bank and Alliance Bank, according to a monthly report published by the Kazakh Financial Supervision Agency (FSA).

Kazakh president energized after China trip
(RFE/RL) – Kazakh President Nursultan Nazarbaev has wrapped up a visit to China and is heading home with lucrative contracts to supply China with energy resources and promises of some $7 billion in Chinese loans for projects in Kazakhstan.

Kazakhstan and China to set up a $1-billion joint investment fund (SRI)

Kazakhstan’s BTA Bank reports loss in January – regulator (Bloomberg)

Kazakh MPs bow to president, boost social spending (Reuters)

National Bank of Kazakhstan: Exchange rates February 24, 2011 (Kazakhstan Today)

Indicators – February 23, 2011 (Reuters)

METALS AND MINING:

ENRC to get part of $2-billion Chinese loan to Kazakhstan fund (Bloomberg)

Friedland’s Kazakh JV announces 50% gold resource increase (Mineweb)

REGIONAL:

Azerbaijan plans to reduce investment spending 17% this year (Bloomberg)

Uzbekistan warns over ‘evil, satanic’ rock music (AFP)

SOURCE: http://silkroadintelligencer.com/2011/02/24/kazakhstan-daily-news-roundup-february-24-2011/

Kazakhstan Daily News Roundup – January 10, 2011 0

Posted on January 09, 2011 by KazCham

HEADLINES:

Kazakhstan doubles oil export duty
(SRI) – Kazakhstan has doubled the oil export duty from $20 to $40 per tonne as of January 1, according to an announcement in the official government newspaper, Kazakhstanskaya Pravda.

Kazakh leader rejects plan to skip election
(Reuters) – Kazakhstan’s veteran leader has rejected a proposal by parliament to extend his rule for a third decade via a referendum, a move that would bypass the need for a presidential election due in 2012.

ENERGY:

CNPC produces record 30 million tonnes of oil in Kazakhstan in 2010 (SRI)

Max Petroleum confirms Uytas oil discovery (Reuters)

Roxi Petroleum: Drilling underway on Yelemes 135 well in Kazakhstan (Proactive Investors)

BUSINESS AND ECONOMY:

MinFin to issue $4.8 billion of government debt in 2011 (SRI)

Kazakhstan produced 12.2 million tonnes of grains in 2010 (AgriMarket.Info)

National Bank of Kazakhstan: Exchange rates January 7-10, 2011 (Kazakhstan Today)

Indicators – January 6, 2011 (Reuters)

METALS AND MINING:

Kazakhstan commissions new metalware plant (Steel Guru)

POLITICS:

Long live the khan (The Economist)

SOCIETY:

The Olympics debut in Kazakhstan (New Europe)

SOURCE: http://silkroadintelligencer.com/2011/01/10/kazakhstan-daily-news-roundup-january-10-2011/

Kazakhstan Daily News Roundup – October 18, 2010 0

Posted on October 18, 2010 by KazCham

HEADLINES:

Kazakhstan sees first Islamic bond by year-end
(bne) – After a lengthy delay, the government is on track to issue Kazakhstan’s first sovereign sukuk, or Islamic bond, before the end of this year – a key step in the country’s desire to become a regional financial hub, says Arken Arystanov, head of the Regional Financial Centre of Almaty City (RFCA).

ENERGY:

KazMunaiGas to issue $680-million bond on KASE (SRI)

Kashagan production seen by 2013 (New Europe)

KazMunaiGas, CNPC plan pipeline JV for Q4 2010 (Oil and Gas Eurasia)

Ukraine may build power stations in Kazakhstan (Interfax – Kyiv Post)

BUSINESS AND ECONOMY:

Jan-Aug GDP up 7.9% year-on-year (SRI)

Kazakhstan, Hong Kong billionaires plan fund – Kazakh PM (Bloomberg)

Kazakh tenge may advance 3.9% next year on inflation, oil – Citigroup (Bloomberg)

Kazakhstan exported 2.2 million tonnes of grains in current marketing year (AgriMarket.Info)

Kazakhstan may introduce income declaration before 2016 (Interfax)

Kaspi Bank keeps plans for external borrowings on hold (Interfax)

Kazakhstan to trim civil service personnel by 26,000 (Interfax)

National Bank of Kazakhstan: Exchange rates October 16-18, 2010 (Kazakhstan Today)

Indicators – October 15, 2010 (Reuters)

METALS AND MINING:

ENRC planning to boost African copper output by more than six-fold by 2013 (Bloomberg)

Kazakh potash `wild card’ firm Satimola seeks $100-million IPO in 2011 (Bloomberg)

POLITICS:

Turkey trains Kazakh troops – minister (Today’s Zaman)

Kazakhstan and NATO to develop cooperation in order to maintain regional security (Interfax)

SOCIETY:

Storck to quit as Kazakh coach (AFP)

REGIONAL:

U.S. ready for talks with Kyrgyzstan on base

(AFP)

Kyrgyz parties agree vote recount after protests (Reuters)



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