"CASPIAN NOT DIVIDE US, IT UNITES" - President of Kazakhstan, Nursultan Nazarbayev
Relations between Kazakhstan and Azerbaijan have always developed on increasing and did not have any problems. Growth of turnover intensively rises and the tendentious is saved. The matters regarding regional policy, bilateral relations, cooperation on Caspian were in the center of attention at bilateral negotiations in Baku between the President of Azerbaijan Ilham Aliyev and President of Kazakhstan Nursultan Nazarbayev during May 24-25, 2005. President of Kazakhstan participated at inauguration of Azerbaijan side of BTC mutually with the Presidents of Azerbaijan, Georgia and Turkey.
Relations between Kazakhstan and Azerbaijan have always developed on increasing and did not have any problems. Growth of turnover intensively rises and the tendentious is saved. The matters regarding regional policy, bilateral relations, cooperation on Caspian were in the center of attention at bilateral negotiations in Baku between the President of Azerbaijan Ilham Aliyev and President of Kazakhstan Nursultan Nazarbayev during May 24-25, 2005. President of Kazakhstan participated at inauguration of Azerbaijan side of BTC mutually with the Presidents of Azerbaijan, Georgia and Turkey.
Mutual advantageous cooperation
President of Kazakhstan expressed his satisfaction with the level of economy relations highly appreciated the increasing of turnover between two nations to 1,6 times or up to $246,2 mln. in 2004. Reminded the participation in the economy of Azerbaijan of 17 Kazakhstan's companies and creation of 6 joint ventures, including the supplies during last year via Azerbaijan of more than 3 mln. tons of Kazakhstan's oil the President Nursultan Nazarbayev expressed his sureness in further development of stated cooperation.
President of Azerbaijan Ilham Aliyev and President of Kazakhstan Nursultan Nazarbayev signed an agreement about strategy partnership relations between the Republic of Azerbaijan and the Republic of Kazakhstan.
Kazakhstan-Azerbaijan agreement-legal base include more than 80 intergovernmental, interstate and interbranches agreements and documents including 6 signed papers during President of RK visits in Azerbaijan during May 2005.
"Kazakhstan is a key state for Azerbaijan in the Central Asia and Azerbaijan main partner for us in Caucasus. Caspian does not divide us it unites.
We are neighbour, and we verge on each other. Presently, to states in the region are major oil suppliers of oil in the world. We together are able to hard work, become significant player in world distribution of work. Firstly in struggle against terrorism and other appearances in the region and stability formation. The second, in the matters of participating in the world area with our energy carriers and it will be significant contribution in the nearest decade. Baku-Tbilisi-Ceyhan should be called now as Aktau-Baku-Tbilisi-Ceyhan. this is one of important points of Kazakh oil supplies to world market and its volume will be increased year by year", - N.Nazarbayev emphasized.
"Concerning Kazakhstan's position then I basing on multi-vector not because this is our stone position but because it is not a forecast, it is just calculated energy things when we produce 100 mln. in 2010, 150 mln. tons of oil by 2015. 25-30 mln. tons are demanded for domestic economy's development", - he declared during meeting in Baku.
According to him, there will be supplied more quantity of oil and neither Baku-Tbilisi-Ceyhan nor North-Caspian oil pipelines will not be able to provide their full transportation. In this connection, there will be completed the construction of 1000 km. oil pipeline to China with 20 mln. capacity in December.
We should build the area in 700 km. for Caspian connection with the Western China. "I think that there is possible in future Iran variant with exit to the Persian Gulf. We operate with Russia via Atyrtau-Samara with exit to Baltic. Thus, all stated will be defined with the volumes and necessity. Baku-Tbilisi-Ceyhan remains one of important projects of Kazakhstan's oil transportation", - N.Nazarbayev said.
Azerbaijan's position during many years is also based on multi-variants of export routes, - Ilham Aliyev declared. There have already existed two oil pipelines that fulfill the transportation of Azerbaijan's oil to Black Sea ports of Russia and Georgia. From Baku-Tbilisi-Ceyhan commissioning the third market - Mediterranean appeared.
"Certainly, our transport infrastructure in case of necessity will be submitted to oil producers in Kazakhstan for finding effective solving to given matter. Kazakhstan becomes the largest country-producer of oil and we think that active cooperation between Kazakhstan and Azerbaijan within the frame of oil transportation via our territory can has very important economy results. Again I would like to emphasize that we will give to our brothers all necessary regarding transport infrastructure in case of such necessity", - I.Aliyev declared.
Infrastructure
Presently, approximately 80% of Kazakhstan's oil is exported via oil pipelines, 12% - by railway and 7% - by sea.
According to different estimations, oil export from Kazakhstan can increase to 6-10 times from existed level and reach 100-150 mln. tons a year (though according to data of American Analytical Group "Energy Resources" Kazakhstan's export resources will be pushed up from 56,2 mln. tons in 2005 to 76 mln. tons in 2010).
So, republic will need one more large oil pipeline in addition to existed, because market niches for Kazakhstan's oil are existed mainly in new markets.
But speak about exact volumes of oil transportation from Kazakhstan via BTC is too early because industry production at Kashagan will be begun in 2007-2008. There was produced 59 mln. tons of oil last year and there is planned to increase the volume up to 100 mln. tons by 2010 in Kazakhstan.
In purpose of consistent provision with Azerbaijan interests during the elaboration of matters regarding Kazakh's oil transportation via the Republic of Azerbaijan, detail study of economy, legal, ecology, technical and other aspects, including the taking of other measures the President of Azerbaijan Ilham Aliyev signed Order in September 14. And according to which ordered to create the commission in the following staff:
According to Order, the Commission is obliged to take all necessary measures connected with elaboration of matters regarding Kazakh's oil transportation via the Republic of Azerbaijan and after preparation the projects of requested agreements to submit them for consideration to president of the Republic of Azerbaijan. Presently, the Order comes into force since signing in September 14, 2005.
Next meeting of the Board of directors BTC Co. took place in Ankara on September 9. At a meeting the course of BTC terms of construction, the terms of its filling and shipment of the first oil and other questions has been discussed. Pipeline's construction is completed by 100%, and works are continued at pump stations. "The filling of the Georgian site of pipeline now proceeds and to the beginning of October oil will reach Georgian-Turkish boundary.
According to info of the Turkish party all works on completion of building and dispatch of the first oil from Ceyhan port to be finished by November 15. "Under pessimistic forecasts of some experts, completion of works can be fastened down for a month over this term. For speed-up of works, we are going to ship one tanker with the Azerbaijan oil from port Supsa to Ceyhan for filling of reservoirs in the terminal.
BTC oil pipeline's extension is 1767, of this 443 km in Azerbaijan, 248 km - in Georgia, 1076 km - in Turkey. Pipeline's capacity is 50 mln. tons of oil a year. Total cost is $3,6 bn. Project's participants are BP (30,1%), SOCAR (25%), Unocal (8,9%), Statoil (8,71%), TPAO (6,53%), ENI (5%), Itochu (3,4%), ConocoPhillips (2,5%), Inpex (2,5%), Total (5%) and Amerada Hess (2,36%).
"With whole world say "Yes"
The president of the Republic of Kazakhstan Nursultan Nazarbayev has promulgated reference directions of the future policy in sphere of economy. During work (on September 9) extraordinary 8th congress of Republican political party "Otan" president RK N.Nazarbayev has determined 9 reference directions of progressing of Kazakhstan in the nearest seven years.
It is necessary for Kazakhstan to find an optimal formula promoting supply of economical growth till 2012 without dependence from availability of petroleum, - N.Nazarbayev has declared. "Oil & Gas sector will be main donour for diversification of the Kazakhstan economy", - president of Kazakhstan explained. "We should use power advantages of the country effectively. Our problem consists in that by 2012 Kazakhstan has entered in ten world exporters of oil and gas", - he declared.
Also, according to president of Kazakhstan, it is necessary "to create all conditions for transferring Kazakhstan to the category of the industrially-developed countries of the world" in the republic. "On the base of claster approach is necessary to develop a manufacturing industry", - he has told. The total amount of an industrial output by 2012, according to president Kazakhstan will be augmented more than in 2 times. Thus the volume of a manufacturing industry in GDP structure will be augmented to the beginning of 2nd decade in comparison with 2005 year by 40 %.
As one of N.Nazarbayev's priorities has called also progressing of the high technology, high-tech productions. 'The science in Kazakhstan should be demanded and pushed up on the high level", - he has noted.
Financing of scientific-research activity till 2012 will be increased not less than to 25 times. The total amount of costs for progressing of a science will increase about 12,5 billion tenge this year up to 350 billion tenge by 2012. As a result the fraction of the high technology, high-tech productions, in pattern of gross national product will increase not less than in 10 times, - has told the chief of state.
According to president of Kazakhstan one of its priorities there should become bank-financial sphere, agriculture, first of all, grain production and animal industries, and international tourism.
"Banking system to the beginning of 2nd decade should provide transformation of Kazakhstan into the financial centre of all region of the Central Asia", - N.Nazarbayev declared.
According to president of RK, to development of agriculture complex will be provided 450 billion tenge in the nearest seven years. "The basic purpose - as much as possible to prepare agrarian quadrant for the introduction into WTO", - he has told. The basic emphases of policy will be routed for qualitative waste-handling of agricultural products which one should compete in the markets. "By the beginning of 2nd decade our agriculture should reach the level of Eastern-European countries and enter into the five of world exporters of grain. International tourism should become one of the brisk branches of national economy", - has emphasized by chief of state.
Besides, according to N.Nazarbayev, it is necessary to carry out the reform of electric power industry aimed at drop of energy output of productions in Kazakhstan.
At the same time, according to him, the stable economical growth is impossible without optimum budgeting economical room and effective territorial accommodation of capacities and a manpower. "In this connection we elaborate and shall realize policy of territorial progressing of the country, grounded on competitive economical specialization of territory", - N.Nazarbayev told.
According to chief of state, Kazakhstan should become a part of world transport-communication system, that "will require outstripping progressing of all transport infrastructure of the country". "We should accept long-term transport policy and till 2012 to create a network of the modern main pipes, allowing to carry out continental and transcontinental trips", - he has emphasized.
According to President of the Republic of Kazakhstan, state is necessary "to continue the policy of conditions' improvement for development of small and middle business". "From beginning of decade we should reach the share of small and middle business in GDP to 40%", - N.Nazarbayev declared.
Besides, the increasing of Kazakhstan's competition mainly depends on success of external trade policy. "Our task is enlarging foreign trade and increasing its volume not less than two times", - he said.
Realization of the given directions should be provided the breaking and allow at the beginning of 2nd decade take for Kazakhstan great place in the global economy.
In conclusion, it is necessary to note that in September 14 at extraordinary congress of the Republican "Asar" party working chief of state Nursultan Nazarbayev was proposed candidate in presidents to new terms. "With whole world we should tell to Nazarbayev - "Yes", - has called the leader of party Dariga Nazarbayeva. The leader of a party has called all best political forces of the country to rally. D.Nazarbayeva has noted that the country stands at the threshold of a new stage of progressing and for realization of new major problems association of all constructional democratic forces of company is necessary. "For this reason we together with a "Otan" party have initiated creations of the National coalition of Kazakhstan", - she has explained. D.Nazarbayeva has resembled, that the initiative on creation of the National coalition of Kazakhstan was bolstered by Democratic Party too.
The gauge of economy relations' enhance between two states is fixed dynamic of Kazakhstan-Azerbaijan turnover's increasing.
According to data of statistic bodies, turnover between two states made $246,1 mln. in 2004 (for comparison, the turnover made $126,5 mln. in 2003).
Azerbaijan goods' export to Kazakhstan fixed totally $9,41 mln. And Kazakhstan goods were imported to Azerbaijan for totally $236,7 mln.
Main article of Kazakhstan export to Azerbaijan is grain production, natural gas, electric equipment, metals, chemical compound, tobacco productions and others.
There are supplied from Azerbaijan to Kazakhstan petroleum products, polymer ethylene, accessories for machines and mechanisms, pumps and elevator fluids.
Significant place in Kazakhstan supplies takes grain. There is interested the further expansion of the given direction of cooperation and its transfer to system and long-term base (according to statistics bodies' data, there was supplied more than 429,9 tons of grain production from Kazakhstan to Azerbaijan in 2004).
Presently, there is discussed the matter about joint construction of grain terminal in Baku for picking up and transshipment of Kazakhstan's grain.
Kazakhstan's delegation where entered the representatives of superior link from the Ministry of Industry and Trade, some regional akimats visited Baku in June 2005. The purpose of visit was the development of ways of Azerbaijan agricultural production supplies' increasing to Kazakhstan.
Mutual visits in superior level:
September 1996 - official visit of the President of the Republic of Kazakhstan N.Nazarbayev in Baku;
- June 1997 - official visit of the President of the Republic of Azerbaijan Heydar Aliyev in Kazakhstan;
- June 1998 - President of the Republic of Azerbaijan H.Aliyev's visiting Kazakhstan on celebrating of New Capital Day of the Republic - Astana City;
- October 1998 - official visit of the Prime Minister of the Republic of Kazakhstan N.Balgimbayev in Azerbaijan;
- October 1998 - Azerbaijan government's delegation headed by Prime Minister A.Rasizade visiting in Astana;
- April 2000 - official visit of Kazakhstan's delegation headed by President N.Nazarbayev in Baku, President's participating at VI Summit of Turkishlingual Nations;
- December 2003 - President of the Republic of Kazakhstan N.Nazarbayev's visiting Baku for participation of funeral ceremony of Nationwide Leader of Azerbaijan H.Aliyev;
- March 2004 - State visit of the President of the Republic of Azerbaijan I.Aliyev in the Republic of Kazakhstan;
- September 2004 - Azerbaijan President's participation at CIS Summit (Astana);
- May 2005 - official visit of the President of the Republic of Kazakhstan N.Nazarbayev in Azerbaijan, participating in the ceremony dedicated for commissioning of the Azerbaijan side's BTC named after Heydar Aliyev.
Chairman Commission - Deputy Prime Minister of RA, Mr. Abid Sharifov
Deputy Chairman of Commission - SOCAR's President, Mr. Natig Aliyev
Commission members:
Executive Director of State Oil Fund of RA - Mr. Samir Sharifov
Deputy Minister of Foreign Affairs of RA - Mr. Khalaf Khalafov
Deputy Minister of Economic Development of RA - Mr. Mikail Jabbarov
Deputy Minister of Justice of RA - Mr. Togrul Musayev
Deputy Minister of Transport of RA - Mr. Musa Panakhov
Deputy Minister of Finance of RA - Mr. Azer Bayramov
Deputy Minister of Taxes of RA - Mr. Natig Aliyev
Deputy Minister of Ecology and Natural Resources of RA - Mr. Firdovsi Aliyev
First Deputy Chairman of SCC of RA - Mr. Aydin Aliyev
First Deputy Chief of KASPAR - Mr. Rafael Rahmanov
Chief of Foreign Investments Department in SOCAR - Mr. Valeh Alaskarov