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Economic Relations between Kazakhstan and Russia

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¬алютные отношени€


¬оенна€ кафедра




јстрономи€ и космонавтика

Ѕанковское биржевое дело

Ѕезопасность жизнеде€тельности

Ѕиологи€ и естествознание

Ѕухгалтерский учет и аудит

¬оенное дело и гражд. оборона


 оммуникации и св€зь



ћакроэкономика экономическа€


ћеждународные экономические и


ћикроэкономика экономика




Economic Relations between Kazakhstan and Russia

Economic Relations between Kazakhstan and Russia




1.1 Mutual Trade


1.2 Cooperating in oil gas and power


1.3 Cooperating in sphere of transport and communication




2.1 Some aspects of economic interaction Kazakhstan and Russia


2.2 The factors of economic interaction of Kazakhstan and Russia


2.3 Engaging the foreign investments


2.4 Cooperating in the field of electric power industry


2.5 Cooperating in the field of machine construction industry


2.6 Cooperating in the field of a uranium industry


3. involvement in international organizations,

kazakhstan and russia


3.1 The Eurasian Union: Realities and Perspectives







The origins of Kazakhstani-Russian relations lie in hoary antiquity, when

Kazakhs and Russians lived on the vast Eurasian territory and, being

neighbors, developed good-neighborly relations in all the spheres of human


In analyzing the relations between Rus and the Great Steppe, one

cannot fail to mention the work of the greatest specialist in this field,

Lev N. Gumilyov. In his preface to Gumilyov's book, Ancient Rus and the

Great Steppe, Academician Dmitry S. Likhachev wrote this: Rightly taking

into account the links between subsistence economy and the level of

prosperity of ancient societies, and thus their military power, the author

also compares historical events and climactic fluctuations of the steppe

zone of Eurasia. In this way he arrived at a series of clarifications,

which enabled him to describe in detail the historical-geographic backdrop

against which various cultural influences came in conflict with the local

forms of the original culture of Eastern Europe.

It must be noted in any analysis of the emergence of the 15 new, post-

Soviet states on the map of Eurasia that certain specific features marked

the genesis of each of them. The present study focuses on the processes of

sovereignty of Kazakhstan, and the specificity of these processes lies in

that from the very beginning the republic's political leadership did not

initiate centrifugal tendencies, regarding reasonable integration an

imperative of the times and endeavoring to ease as much as possible the

destructive consequences at every stage in the disintegration of the Soviet

Union. Kazakhstan was the last former Soviet republic to declare its

independence - not out of any strong gravitation toward the past or

peripheral political development let us recall that Kazakhstan was one of

the first to experience, in December 1986, the repressive power of

totalitarianism then already withering away but because it understood that

artificial acceleration of this process is fraught with the danger of

serious upheavals. The history of numerous bloody ethnic, social, and even

interstate conflicts in the post-Soviet space bears striking evidence of


The immediate subject matter of the present study is not just the

isolated process of the sovereignty of one of the post-Soviet countries but

the emergence and development against this background of new interstate

relations of two major republics of the Soviet Union, Kazakhstan and

Russia. In our view, it is relations between precisely these two countries

that can be seen as a model for the establishment of equal and mutually

advantageous between newly independent states. This view is borne out by a

sufficiently smooth and planned, though far from problem-free, development

of bilateral Kazakhstani-Russian relations, a meaningful historical

tradition of mutual relations, and an absence of sharp turns or wavering

due to subjective or external causes.

Another unifying factor is timeЧthe many centuries of the history of

mutual relations between the peoples of the two countries that have been

neighbors in these great open spaces since the beginning of time. This far

from simple history, full of drama and heroism, these strata of time bound

together by the unremitting toil of numerous generations, unite the two


The Soviet period in the relations between the two states let us recall

that, according to the 1977 Constitution of the USSR, the constituent

republics of the Soviet Union were declared to be "sovereign Soviet

socialist states" united in the Union of Soviet Socialist Republics and

having the right to enter into relations with foreign states, conclude

treaties and exchange diplomatic representatives, and - theoretically

-secede from the USSR was marked by the prevalence of the so-called

converted forms. The ubiquitous and all-round dominance of All-Union

structures made meaningless all talk of real interstate relations between

Kazakhstan and Russia. Both sides were in this case the objects of a

grandiose social experiment. Although positive achievements of tills period

cannot be discarded either.

The emergence and further development of relations of equal partnership

between new independent states, the Republic of Kazakhstan and the Russian

Federation, became a sort of synthesis of the entire centuries-old history

of Kazakh-Russian relations. Only now can the relations between the two

countries be justifiably described as subject-subject ones. At this stage,

both states solved such problems as defining their status in the system of

world politics, establishing relations with leading world nations, and

entering the field of international law.

The dominant role of Kazakhstani problems has determined the

chronological framework of the investigation.

The overall time frame covers the period from December 1991 the setting

up of the Commonwealth of Independent States, which finally marked the

disintegration of the USSR to the end of 1995.

In the four years, bilateral Kazakhstani - Russian relations went

through a series of significant stages the study of which can adequately

determine the level of mutual relations between the two countries, the

scope and range of integration. We single out three stages in the

development of Kazakhstani-Russian relations:

Ч Defining the legal interstate relations of the two countries December

1991 - May 1920

Ч Searching for a model of economic and political cooperation between

the states May 1992 - March 1994

Ч Expanding and deepening integration between Kazakhstan and Russia in the

economic and other spheres March 1994 - 1995.

Although some elements of legal contractual relations between

Kazakhstan and Russia may be discovered before December 1991, when attempts

to preserve the Soviet Union were made, it will be more chronologically

correct, in our view, to choose the moment at which the CIS was legally

formed and the activity of the Union structures of authority was

discontinued as the starting point of the study.

We propose that the signing in May 1992 of the treaty of friendship,

cooperation, and mutual assistance between the two countries be singled out

as the concluding moment of the first stage in the relations between

Kazakhstan and Russia and at the same time as the beginning of the new

stage. That document became the foundation for qualitatively new relations

in the history of the two states, opening the first page in the official

interstate relations in the new history of Kazakhstan and Russia. It

determined the principles of bilateral relations in the political,

economic, military-strategic, cultural, and spiritual spheres, lending a

colossal impulse to the entire subsequent negotiation process.

During the search for a model of interstate economic and political

cooperation between Kazakhstan and Russia, the principles were developed

for bilateral relations, which were later recorded in the treaty of

friendship, cooperation, and mutual assistance. The first official visit of

President Nazarbayev of Kazakhstan to the Russian Federation in March 1994

marked the beginning of the third stage in the development of Kazakhstani-

Russian relations - that of expanding and deepening integration between

Kazakhstan and Russia.

This division of the time frame of bilateral Kazakhstani-Russian

relations into periods shows that one of the goals of the present work is

to demonstrate continuous development between Kazakhstan and Russia in the

post-Soviet period.

As the period of political history analyzed here is extremely close to

the present, it cannot be regarded as worked out in detail in Russian and

foreign scientific literature. However, the problems of development of the

new statehood of post-Soviet countries of Kazakhstan in this case, of the

birth and evolution of interstate relations, of their entry into the

international community, are being studied ever more actively.

The crucial period of the disintegration of the USSR and the emergence

on the map of the world of new, independent states was primarily reflected

in scientific periodicals. Special mention should be made of the collective

work The New Treaty of Union: The Search for Solutions.

Problems of mutual relations between newly independent states have also

become the subjects of attention of Russian experts and political

scientists. The period of disintegration of the USSR and of the development

of Kazakhstan as a sovereign independent state are at present actively

studied by Kazakhstan scientists. Works have been written on the problem of

the emergence of the new statehood, development of the system of separation

of powers, democratization of society, evolution of party structures and

institutions of democracy, and the construction of a new legal and judicial

system. Present State and Works on the subject of bilateral Kazakhstani-

Russian relations from the moment the two states achieved independence can

be divided into several groups. The first and the most numerous one deal

with relations between Kazakhstan and Russia within the framework of the

Commonwealth of Independent States.

In recent years the development of market relations has considerably

boosted interest for economic and trade cooperation between the two

independent states. Mention must be made of a joint work by the staff of

the Russian Institute for Strategic Studies under the title Kazakhstan:

Realities and Perspectives of Independent Development, It should be noted,

though, that this work suffers from an obviously incomplete documentary and

factual basis and a certain superficiality in the analysis of the problem.

The study is based on such sources as legal acts and interstate

Kazakhstani-Russian treaties, agreements, declarations, joint protocols,

and other documents and materials, as well as decrees, decisions, and

resolutions of the organs of state power in Kazakhstan and Russia.

Extremely important sources for the study of the last five years in

the history of Kazakhstan and of Kazakhstani-Russian relations are the

works of President Nursultan Nazarbayev of Kazakhstan: Without the Right or

the Left, The Strategy of the Formation and Development of Kazakhstan as a

Sovereign State, The Strategy of Resource Saving and the Transition to the

Market, The Market and Socioeconomic Development, and especially his new

book, On the Doorstep of the 21st Century, as well as his speeches at

various forums.' Just as important as sources for the present study are the

books by President Yeltsin of Russia: Confessions on a Given Theme, Memoirs

of a President as well as his official speeches, and also the works of

other Russian politicians and public figures, which afford a deeper grasp

of the essence of events happening in the post-Soviet space in the 1990s.

The process of market reform in the republic and the tendencies and

prospects for further reform in the socioeconomic sphere are reflected in

several books by Kazakhstan's Prime Minister A.M.Kazhegeldin: The

Socioeconomic Problems of Development of the Republic of Kazakhstan in

Times of Reform, Kazakhstan in Times of Reform, Problems of State

Regulation Under the Conditions of Socioeconomic Transformation.

The formation of the republic's diplomatic service and problems of its

civilized entry in the world community are studied in the works of

K.K.Tokayev, Kazakhstan's foreign minister.

Intense legislative processes at all levels in the given period

necessitated close attention to the legal basis of the newly independent

states. As far as Kazakhstan is concerned, that legal basis includes above

all the Constitutions of 1993 and 1995, of which the content and the

sociopolitical background may be seen as the quintessence of the given

period in the country's history.

The main distinctive feature of the source base of the study is the

fact that most documents of the given period of political history have not

yet been moved to the archives; it was therefore necessary to turn on many

occasions to various central and departmental current archives. The

identification and systematization of many sources, their publication in a

collection of materials devoted to the development of Kazakhstani-Russian

relations was in themselves an important task.

It may thus be said that extensive sources have been used in the analysis

of the above-mentioned problems; their study made it possible to paint a

comprehensive picture of the development of Kazakhstani-Russian relations

against the background of the sovereignty of Kazakhstan in 1991-1995.


In a context of events, which have taken place in region after

September 11, the role of Russia in Central Asia a little has varied, as

well as all has varied geopolitical formulated in region last years.

In these conditions of one of important external policies of tasks of

Kazakhstan is the adjusting of tactics and strategy in ratios with Russia,

which would correspond by modern geopolitical realities and long-term

interests of our country.

Central Asia and Caspian Sea, so-called recently Caspian Ц Central

Asia region, go into an region of traditional interests of Russia.

In this region it always had the important national interests, which,

however, in different periods were defined by different circumstances and


The key interests of Russia in this region at the present stage can be

reduced to the following.

Central Asia has the important value in of a safety of Russia.

The importance of this region for Russia is stipulated not oil by the

factor implying from desire to save influence on Caspian Sea;

Our region is of interest for Russia territorial, where its

compatriots live. Are those, on our sight three dominating interest of

Russian Federation, dominating, Caspian Ц Central Asia region at the

present stage. It in this region has also other interests trade, cosmotron

of УBaikonurФ, industrial communications etc. but they now in basic carry

not so priority character.

Until recently Russia ensured above-mentioned interests without the

special efforts. All countries of region in the majority were that or are

otherwise dependent on Russian Federation.But the events, which have

occurred after September of the last year, have brought in serious enough

variations to a geopolitical situation in Central Asia and have affected on

common position of forces in region.

One of the occurred key variations consists that the break in sphere

of traditional vital interests of Russia is watched which today faces to

necessity Central Asia of policy.

As a whole by 2001 in Central Asia the private tripartite balance

between interests of Russia, China, USA was folded.

The given balance can figuratively be presented as a triangle, in

which upper corner Russia, in one lower corner - USA, in the friend - China

settled down. These countries have occupied three strategic niches in

Caspian Ц Central Asia region: military-political, oil and gas, commodity-


The Russian presence at region last years was ensured, first of all,

with strategic military-political component. A peaking of a problem

extremism and the terrorisms in Central Asia, activation Islamic of driving

of Uzbekistan, irreconcilable part of Integrated Tadjik opposition at

immediate support Talib have established in 1999 - 2001 real threat for the

countries of region.

In these conditions only Russia was considered by the states of region

as the real factor and safety. It is enough to recollect, that these years

the contacts through link DKNB, intensive two-sided ratios in military and

military-engineering sphere were especially made active.

Thus, USA has occupied oil and gases a niche in our region, and Russia

and China by virtue of economic circumstances could not with it compete in

this direction.

In this geopolitical triangle Russia all the same occupied a little

bit dominating positions. This majoring in many respects was determined

strategic military-political component, which role in the international

ratios is traditionally high.

In a context of a common global situation Russia forced to be

reconciled with a determination of military basses of USA in region of its

traditional interests.

Taking into account all these circumstances, Russia faces to necessity

of the policy in Central Asia. The further prolongation above-mentioned of

the tendencies will have for it painful enough consequences.

Despite of some variation of a role of Russia in Central Asia, for

Kazakhstan the strategic interests in a ratio of Russia continue to be


The necessity of activation of ratios with Russia and holding of

constructive cooperating on much important for Kazakhstan to directions is

dictated as well by that in case of essential weakening of Russia in

Central Asia it will be fraught with negative consequences. The situation

in region can become unstable and badly forecast.

In the whole traditional interests of Kazakhstan in a ratio of Russia

are founded on four factors having long-time character and diminuendos by

such eternal categories, as geography and history.

First, the maintenance partner of ratios with Russia is necessary

valid intercontinental of an arrangement of Kazakhstan, for which the exit

on the world market is vital for an economic development. Russia in this

respect occupies the strategically important position; being by the state,

on which region pass vital for us strategy of transport and communication.

Secondly, Russia is one of the important subjects of the international

system, having significant political weight and rather large military-

engineering opportunities. The Russian factor in many respects determines

external policy a situation around of Kazakhstan, both on regional, and at

the international level.

Thirdly, Russia is the major economic partner Republic of Kazakhstan.

It not only imports different production and techniques to Kazakhstan, but

also is the market of selling of Kazakhstan production. About 70 % of

Kazakhstan industrial potential is involved on economy.

In - fourth, both states are combined with a historical generality,

spiritual and cultural links. In region of Russia the man is Kazakh

Diasporas including 740 thousand. In Kazakhstan Russian are second on

number ethnic group, making about 30 percents of the population of the


In this context the Russian direction of exterior policy of Kazakhstan

remains to one of priority and strategic.

As a whole at the present stage in the Russian-Kazakhstan ratios the

following most priority and perspective directions of cooperating are


Х Mutual trade.

Х Interaction in oil and gas and power sphere.

Х Cooperating in sphere of transport and communications.

Х Cooperating in sphere of safety.

1.1 Mutual Trade.

The interests of both countries are answered with magnifying of mutual

trade. Russian Federation traditionally occupies the first place among the

basic trade partners of Kazakhstan both on export, and on import. Trade

turn over in 2001 from Russian Federation has made 4 639,3 million of US

dollars (Diagrama1,2).

It is necessary to mark, that last years the growth of a share of

Russian Federation in import and reduction in export is watched. The

specific gravity of Russia in total amount of the Kazakhstan export is

sequentially reduced (from 44,5 % in 1994 up to 20,2 % in 2001) and is

augmented in import (from 36,3 % per 1994 up to 45,4 % per 2001). Within

several last years of Kazakhstan has negative trade balance with Russian


Basic trade partners, in import, 1994-2001 (%)


|1994 |1996 |1997 |1998 |1999 |2000 |2001 |

|ХRussian | 36,3 | 54,8 | 45,8 | 39,4 | 36,7 | 48,7 |45,4 |

|Federatio| | | | | | | |

|n | | | | | | | |

|Х China | 2 | 0,8 |1,1 | 1,2 |2,2 | 3 | 2,8 |

|Poland | 0,7 | 1 |1 | 1,1 | 1,7 | 1,2 | 0,9 |

|ХUzbekist|7,8 | 2,1 |1,5 | 2,2 | 2,4 | 1,5 | 1,3 |

|an | | | | | | | |

|ХKyrgysta| 2,9 | 2,1 |1,5 | 1,2 | 0,7 | 0.6 |0,4 |

|n | | | | | | | |

|Х | 0,5 |0,4 | 0,1 | 0,1 |0,1 | 0,1 | 0 |

|Tajikista| | | | | | | |

|n | | | | | | | |

The Diagrama1

Basic trade partners, in export, 1994-2001 (%)


|1994 |1996 |1997 |1998 |1999 |2000 |2001 |

|ХRussian | 44.5 | 42 | 35,2 | 29.6 | 19,8 | 19,5 | 20,2 |

|Federatio| | | | | | | |

|n | | | | | | | |

|Х China | 4,6 | 7,8 | 6,8 | 7 | 8,5 | 7,3 | 7,1 |

|Poland | 1,7 | 0,4 | 0,4 | 0,8 | 1,4 | 0,8 | 1.5 |

|ХUzbekist| 4 | 3,4 | 2,3 | 2,2 | 1,2 | 1,5 | 1.4 |

|an | | | | | | | |

|ХKyrgysta| 1,9 | 1,9 | 1 | 1,2 | 1,1 | 0.6 | 1 |

|n | | | | | | | |

|Х | 03 | 1 | 0.8 | 0.8 | 08 | 0.6 | 0,6 |

|Tajikista| | | | | | | |

|n | | | | | | | |

The Diagrama2

Considering structure of export and import on groups of the commodity

spectrum, it is possible to select the following characteristic features.

Export. Structure of export Republic of Kazakhstan in Russian

Federation for the last few years has varied the separate commodity groups

have occupied a leading position.

Now on four commodity groups (glow iris3) (fuel mineral, oil and

petroleum; products of inorganic chemistry; grain bread and ores) are

necessary about 80 % of the Kazakhstan export in Russia, whereas in 1994

on the pointed groups it was necessary 53,3 %. In 2001 as contrasted to

2000 the separate outbound delivering tended to lowering, so, for example,

the specific gravity of export of a grain was reduced from 12 % up to 6 %;

the export of products of inorganic chemistry was reduced from 14 % up to

13 %. Certainly, on lowering of export in Russia renders influence a

variance between the in-house prices and prices of outbound delivering.

At the same time it is necessary to mark, that the reduction of export

has taken place not on all basic groups of the commodity spectrum. The

specific gravity of export of ore has increased from 8 % up to 10 % and

export of fuel from 46 % up to 47 %.

Import of republic of Kazakhstan goes into first five of the countries

of the basic trade partners of Russia in import. The specific gravity of

import of Russia has increased in total amount of the Kazakhstan import

from 36,7 % per 1999 up to 45,4 % per 2001. There were insignificant

variations in groups of imported commodity production. So, the volumes of

import were reduced


Diagram 3


Diagram 4

Transport, accordingly, from 15 % in 2000 up to 11 % in 2001,

alongside with it the magnifying of import on such commodity groups is

marked: fuel mineral (from 17 % up to 21 %), chemical production (from 14 %

up to 16 %), black metals and work pieces from them (from 11 % up to 13 %)


The analysis of export and import displays, that in structure of

import as against export there is no predominance of separate commodity

groups, it more diversification, at the same time grows a specific gravity

of articles of food, products of processing ready articles.

From 89 regions of Russian Federation 72 have trade - economic links

with Republic of Kazakhstan. Depending on volume trade turn over with

Kazakhstan these regions Russia can divide into a series of groups. The

active participants of the foreign trade activity with Kazakhstan are first

three groups of regions of Russia (table 1).

As a whole on 16 regions of Russian Federation from 72 it is necessary

80 % exterior trade turn over of Russia with Kazakhstan. The high activity

pointed 16 regions is stipulated by more developed structure of their

industrial manufacture with predominance of fuel-raw, petrochemical and

machine-building specializations.

Feature of transport -geographical interregional links of regions of

Russia with Kazakhstan is the directedness mutual goods traffic primarily

with Ural, Western and East Siberia, and also with Moscow and Moscow


Basic groups of the trade partners of Kazakhstan in Russia

|Group |Annual |Regions |A share in |

| |commodity | |common |

| |circulation | |commodity |

| | | |circulation |

|I |From 200,0 up |Moscow, |0,465 |

| |to 500,0 mln |Chelyabinsk, | |

| |of dollars |Ekaterenburg, | |

| | |Orenburg and | |

| | |Tyumen region | |

|II |From 100,1 up |Omsk, Irkutsk,|0,22 |

| |to 200,0 mln |Kemerovo, | |

| |of dollars |Moscow region.| |

| | |Altay region | |

| | |and | |

| | |Novosibirsk | |

| | |region | |

|III |From 50,1 up |Kurgan region,|0,115 |

| |to 100 mln of |Republic of | |

| |dollars |Bashkortostan,| |

| | |Republic of | |

| | |Hakasya, | |

| | |Krasnoyarsk | |

| | |region and | |

| | |Samara region | |

|IV |From 20,1 up |Perm, Tomsk |0,095 |

| |to 50,0 mln of|region, | |

| |dollars |Republic of | |

| | |Tatarstan, | |

| | |Nizhniy- | |

| | |Novgorod, | |

| | |Belgorod, | |

| | |Volgograd, | |

| | |Saratov, | |

| | |Rostov, | |

| | |Vladimir, Tula| |

| | |region and. | |

| | |St.-Petersburg| |

|V |Up to 20 mln |Others 45 |0,105 |

| |dollars |regions of | |

| | |Russian | |

| | |Federation | |

The important place in the Russia -Kazakhstan links occupies frontier

cooperating, on which share it is necessary 71,5 % from common commodity

circulation. Most actively explicate trade -economic links with frontier

regions of Kazakhstan Omsk, Orenburg, Astrakhan, Chelyabinsk, Novosibirsk

region and Altay region. From regions of Russia the ready roll stock of

black metals, pipe steel, petroleum, electric motors, automobiles, forest

products, coal, footwear, fabrics and other goods is taken out. In export

of many frontier subjects of Federation significant volume is necessary on

production of a petrochemical industry (Volgograd, Omsk, Samara region,

Altay region - more than 70 %).

In the Russia -Kazakhstan frontier region more 300 share enterprises,

among which such large interstate join, as УKazroshimФ, УKoksohimФ,

automobile complex on basis Ural - for and Kustanay diesel factory operate.

The essential propagation in trade with Kazakhstan was received with

barter operations (57 %). So, Orsk meat factory the combine sends in

Kazakhstan in basic production of the manufacture and receives in exchange

raw material for manufacture of this production - living cattle and meat.

The joint-stock company УNostaФ receives from Kazakhstan immovable coal and

delivers metals.

The significant experience of mutual economic cooperating with frontier

regions of Kazakhstan accumulated in the Orenburg region, and also Pavlodar

region of Kazakhstan with frontier regions of Russia. Now 18 % of the

Orenburg export and more than 40 % of import have on Kazakhstan.

By the largest foreign trade partner of Republic Bashkortostan, Altay and

Krasnoyarsk edges, Kemerovo, Irkutsk, Omsk, Orenburg, Sverdlovsk and

Chelyabinsk regions is the Pavlodar region.

As a whole before Kazakhstan in mutual trade with Russia there is a

series of perspective tasks, which decision will influence definitely a

common economic situation in the country.

One of the important tasks is the variation trade balance of Kazakhstan

from Russian Federation from negative in positive. Besides the gradual

variation of structure commodity circulation in favorable for Republic of

Kazakhstan a direction is desirable.

Radiating from interests of two states, it is expedient in the nearest

perspective to consider a complex of measures on hardening links of

frontier regions. The necessity of creation of legal fundamentals of a

development of frontier regions does not call doubts. On our sight, it is

necessary to speed up development of the defining laws. Among them Laws

About state support of a socio economic development of frontier territories

Republic of Kazakhstan, About free economic regions, About frontier trade.

It is necessary also to speed up ratification four sided of the Agreement

on basic principles of frontier cooperating of the states - the

participants of the Contract about a deepening of integration in economic

and humanitarian regions from March 29, 1996.

Obvious presence of potential and mutually advantageous opportunities

of Russia and Kazakhstan also is by way of use of the optimum shapes of

specialization, density of the industrial and financial capital, use of

effective financial instruments, architecture of optimum commodity,

financial and transport streams. In this connection special urgency in a

development Kazakhstan Ц Russia of links was got with problems of a

synchronization of legislative and normative basis of the countries. It

would be expedient to realize step-by-step transition to collection of the

VAT on destination in Kazakhstan Ц Russia to trade, having begun it(him)

from machines, equipment, vehicles.

Not less important the coordinated marketing strategy of Kazakhstan and

Russia in the international markets is represented, where the saving and

hardening of common positions is quite possible. The priority direction

represents perfecting the organizational shapes of activity Kazakhstan and

Russian suppliers in the world markets. Them can become cartel of the


One of the important instruments of hardening of two-way communications

could become creation of conditions for expansion of contacts between the

enterprises, creation of the share enterprises. On official dates (2000) in

republic 220 share Russia -Kazakhstan enterprises and 88 enterprises with

the 100--percent Russian capital actively work. The majority JV in

republic, including Russia-Kazakhstan JV, has trade Цintermediary

directedness. However as against other states Russia- Kazakhstan JV of an

industrial directedness envelop considerably wider spectrum of spheres of

activity - from production and processing of natural operational life up to

production of a high scale of processing that in a defined measure confirms

an overall performance Russia- Kazakhstan JV. At the same time Russia

ЦKazakhstan JV for the present do not play that role, which they could play

in a development of trade -economic cooperating. Therefore in this

direction the active support is expedient on the part of state structures.

1.2 Cooperating in oil gas and power sphere.

The given direction of cooperating between two countries by us is one

of perspective. The structure of the Kazakhstan export of oil on the

countries in 2001 is characterized by lowering of a share of delivering in

the countries of CIS (17 %) and expansion of geography of export of oil in

the countries of foreign countries (83 %) (Diagrama5).

The indexes of export of petroleum in 2001 essentially have varied as

contrasted to 2000. Alongside with export of Kazakhstan realizes import of

petroleum. And 98 % of all imported volumes of petroleum are necessary on

Russian Federation.

The lowering of the excise rates on imported petrol with 80 up to 31

EURO per ton in 2001 and falling recently of world prices per oil promoted

magnifying of delivering of the Russian oil for in-house processing. The

export of petroleum to the countries of CIS became more attractive for

Russia, than the delivering of oil on the world market, as, for example, in

Kazakhstan of the price on the same aspects of petroleum is much higher


Kazakhstan more than on 50 % depends on Russia in a ratio of delivering

of crude oil on refinery factory in Shimkentand Pavlodar receive west

Siberian oil on the algorithm manifold from Omsk. Pavlodar refinery factory

on 100 % depends from west Siberian of oil. Shimkent usually works on 75 %

on west Siberian and on 25 % on raw material Kumkol of a deposit. Today

dependence from of west Siberian oil УOrgsintezФ is reduced half at the

expense of use of the Aktyubinsk oil, transport by a railway transportation

from west of Kazakhstan. Because of lowering production of oil on west

Siberian deposits, fadeout of payments and mutual debts the question of

security by oil Pavlodar and Shimkent refinery factory more than once

acquired critical character, and the capacity factor of powers of these

enterprises frequently lowered below 0,5.

Its technological dependence on Russia falls into basic problems

Pavlodar refinery factory: the production cycle of the enterprise is

calculated for consumption west Siberian of oil with the low contents of

sulfur and paraffin. The perspectives flagship of the Kazakhstan oil

processing is complicated with its neighborhood with the Russian factories

- competitors:

Omsk, Ufa, Volgograd refinery factory by the enterprises being

vertically - integrated, they have stable access to crude oil, besides on

reduced prices, which the necessities of northern Kazakhstan in petroleum

could at desire completely satisfy.

Structure of export of the Kazakhstan oil, 2001


Diagram 5

In oil and gas of branch the cooperating explicates also through link of

share development of the Kazakhstan deposits. Russia in the projects on

natural resources users in region of Republic of Kazakhstan, as it is

possible to see from the Diagrama6, occupies the fourth place and makes 6

%. The Russian investments in a mineral-raw complex (MSK) of Kazakhstan

have made in 2000 32,2 million of dollars, including in investigation

hydrocarbon of raw material (UVS) 3,5 mln of dollars, in production of hard

minerals (TPI) - 28,7 mln of dollars.

Two Russian investors УBashnevtФ and OJSC УLukoilФ submit the

investments in UVS. In oil branch of Kazakhstan the company УLukoilФ is

submitted in such large projects, Tengiz and Karachiganak Besides УLukoilФ

is ready to expand the presence at Kazakhstan, messages not only

development of ready deposits, but also prospecting operations.

The large interest in relation to Kazakhstan is expressed with the large

oil Russian company УYokusФ which has received a section for developments

in Russia and region of Kazakhstan.

Structure of the direct foreign investments in Kazakhstan,2000[pic]

Diagram 6

In sphere TPI of Kazakhstan the Russian investors are submitted by

such large companies, as the Russian Academy of Science of European

Economic Community (83,9 %), OJSC УMagnitogorskФ metallurgical combine

(10,6 %) and NPK УInvestorФ (3,8 %).

The Kazakhstan enterprises also show interest to the Russian projects.

So, УKazakhoilФ (УKazmunaigasФ) negotiates for share developments in Tomsk

region, on a deposit УKomsomolskФ in the Astrakhan region. At Kazakhstan

oilman there are intentions to develop deposits in the Arkhangelsk region.

Since 2000 the electric power system 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 considerably has

boosted quality of electrical power and reliability of electro supply of

consumers of Kazakhstan, Central Asia and Russian Federation, and also has

allowed operatively to realize surplus of electricity 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 Comminity of Russia is called secure

each other in case of crashes.

In the whole cooperating of Kazakhstan and Russia in fuel and energy

sphere has noticeable perspectives.

Rather perspective the project of transfer of a direct current

Ekibastuz - Tambov by voltage 1 500 sq is. This project opens an

opportunity of transport of the electric power of the Siberian power

stations and Ekibastuz heater in central regions of Russia and in the

countries of Europe.

With the purposes of security of a mutually acceptable uniform tax

condition of trade in the electric power, utilities equipment it is

expedient to realize transition of the countries at collection of indirect

taxes on a principle the countries of assignment. In this connection for a

heightening of efficiency of a parallel operation of electric power systems

the simplification of customs procedures is important at migration of

electrical power through the customs boundary.

The major factor of a development of the power market is the deepening

of cooperating in the field of scientific researches and developments of

advanced techniques in manufacture of power, electro technical equipment.

Now all aspects of equipment are made for power stations in Russia,

(Leningrad metal factory, Belenergomash, Uralenergomash, Siberenergomash).

With disintegration of Union economic links between the manufacturers and

consumers of a utilities equipment considerably have worsened, that is

negatively reflected in availability index of product of power complexes of

the country. On this question it is expedient except of concrete measures

at a level of Government.

1.3 Cooperating in sphere of transport and communications.

Cooperating in sphere of transport and communications one of the most

perspective regions of a development of two-sided ratios between Kazakhstan

and Russia. Both states in a context of a development of transport

cooperating have the friend for the friend a strategic value, as, apart

from a wide national transport web, occupy defining a geographical


Kazakhstan and Russia are closely coupled by the transport

communications. In this connection of Kazakhstan is sensitive reacts to any

variations under the tariffs for freight traffic on region of Russia.

One of key here of questions - transportation of oil and gas through

region of Russia. In aggregate transportation of the Caspian oil and in the

whole oil is one of the major sides of the Russia -Kazakhstan cooperating.

First of all this magnifying of a channel capacity of an oil pipeline

Atyrau Ц Samara up to 15 millions tons of oil per one year. The intimation

into service CPC ensures export of the Kazakhstan oil on a long-term


In a period with 1995 and till 1999 Russia gave Kazakhstan such quota,

which did not allow the Kazakhstan exporters to involve the algorithm

manifold Atyrau Ц Samara on an apparent watts its annual channel capacity

in 10,5 mln of tons of oil. And only in 1999 the algorithm manifold was

loaded almost on 100 %. The agreement on magnifying of a quota at transit

of oil in long-distance foreign countries at first up to 5 mln of tons

(December 23, 1998) was signed, and then (February 25, 1999) up to 7,5 mln

of tons (the quota in short-range foreign countries has remained former -

3,5 mln of tons). This decision initiated occurrence of the project of

reconstruction and modernizing of the algorithm manifold Atyrau Ц Samara

for magnifying of a channel capacity at first up to 12 mln of tons, then -

up to 15 mln of tons.

This project, designed transport companies of both countries - Russian

УTransoilФ and Kazakhstan УKazakhoilФ, is favorable to both sides. For

УTransoilФ the transportation of the Kazakhstan oil on the algorithm

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