Kazakhstan International Affairs - The Times Of Central Asia

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Rule of Law

Kazakhstan Debates Foreign Media Accreditation

Following their second reading, the Mazhilis (lower chamber of parliament) of the Republic of Kazakhstan has adopted the bills "On Mass Media" and "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan in the Field of Mass Media," sending them to the Senate for consideration. The documents are designed to regulate the professional activities of mass media outlets. The new amendments are evoking mixed reactions. One of the key proposals was the right of the Ministry of Foreign Affairs to deny accreditation to foreign media and their representatives if they pose a threat to national security. This initiative provoked opposition from representatives of the media, who consider such regulations a mechanism for suppressing freedom of speech. "The draft law proposes a regulation on the introduction of press cards, granting the right to simplified accreditation to individual journalists. Frankly speaking, this norm caused great controversy in the working group and society as a whole. The overwhelming majority of the working group members regarded this rule as one that contradicts democratic principles, discredits journalists, and hinders the comprehensive dissemination of information. Therefore, a specific decision was made on this: the rule on press cards was excluded," said Mazhilis representative, Zhanarbek Ashimzhanov, answering journalists' questions. Other changes proposed in the draft laws include combining online publications and news agencies into the category of "internet publications," as well as shortening the statute of limitations for journalist legal requests and setting shorter deadlines for responding to media inquiries. Among other rules, members of the Mazhilis also proposed introducing a ban on the publication of materials about LGBT themes and topics. These changes were critically evaluated by experts, and these regulations were not included in the final document as members of the working group concluded that it contradicts both Kazakhstani and international legislation.

Kazakh, Chinese and Russian Companies Unite on Polyethylene Production Plant

On April 19, a meeting was held between Magzum Mirzagaliyev, Chairman of the Board of KazMunayGas, Zhao Dong, President of the China Petrochemical Corporation (SINOPEC), and Mikhail Karisalov, Chairman of the Board of Russia’s SIBUR LLC. In the presence of the Prime Minister of Kazakhstan Olzhas Bektenov, the parties signed a tripartite protocol officially finalizing SINOPEC's entry into the joint construction of the first integrated gas chemical complex for polyethylene production in Kazakhstan’s Atyrau region. Costing around $7.7 billion, comprising investments of 40%, from KazMunayGas, 30% from SINOPEC 30%, and 30% from SIBUR, the plant will have the capacity to manufacture 1.25 million tons of polyethylene per year, equivalent to 1% of that produced globally. Speaking at the event, Bektenov emphasized the importance of the project due to its focus on the production of high value-added products. According to a report issued by his press office, a gas separation complex (GSC) will be built in Tengiz to supply ethane via pipeline to Karabatan in the Atyrau region to enable the new plant to produce 22 grades of polyethylene using Chevron, Phillips and Univation’s. licensed technology. The use of polyethylene is expansive ranging from medicines, prosthetics and syringes, to plastic wear-resistant pipes, construction materials, car parts, bulletproof vests and clothing for astronauts. It is also commonly employed in the food industry. Scheduled for completion by 2029, the plant’s target markets include Kazakhstan, CIS countries, China, Turkey, and Europe.

Carlsberg Expands Production in Kazakhstan

Kazakh Invest has announced that Danish company Carlsberg is to open a new factory in Almaty to produce non-alcoholic beverages worth $50 million. In preparation of its launch, Deputy Minister of Foreign Affairs of Kazakhstan, Nazira Nurbayeva, Chairman of Kazakh Invest, Yerzhan Yelekeyev, and First Vice President for Central and Eastern Europe of the Carlsberg Group, Lars Lehmann met on 18 April. During the meeting, Lars Lehmann thanked the Ministry of Foreign Affairs of Kazakhstan for its support at all stages of the project and pledged the company’s commitment to furthering cooperation with Kazakhstan. Outlining the benefits afforded by the initiative, he reported that the new production facility in Almaty will help ensure 100% localization of brewing and non-alcoholic products for the Kazakh market and in addition, create opportunities for export to Uzbekistan, Kyrgyzstan, Tajikistan, and Armenia. Regarding the company’s existing business in Kazakhstan, Lehmann stated, "Over the past years, Carlsberg Kazakhstan LLP has been consistently included in Kazakhstan's Top 50 largest taxpayers. Our regional hub is also located here. Over the past two years, the share of local raw materials used in our products has increased from 30% to 65% and in the future, should rise to 80%." Carlsberg Kazakhstan currently provides jobs for some 500 employees in Almaty and over 2,000, in distribution companies across Kazakhstan.

Kazakhstan Increases Amount of Claim Against Western Oil Companies to $150 Billion

Kazakhstan is demanding compensation for lost profits from the operating consortium of the Kashagan oil field, North Caspian Operating Co (NCOC). Arbitration claims made by Kazakhstan have grown to $150 billion, Bloomberg reports, citing people familiar with the story. An additional claim concerns $138 billion of lost profits stemming from volumes of oil promised to the Kazakh government but not provided by the developers of the field due to delays in Kashagan's startup and production growth. According to the Bloomberg's source, Kazakhstan's claims are also related to problems with the infrastructural arrangement at the Kashagan field, disruptions of production deadlines and cost overruns. "There is another compensation claim related to contracts for the development of Kashagan. They allegedly saw signs of corruption in [the contracts]," the source told Bloomberg. The international scandal underscores the complexity of operating in Central Asia's largest oil-producing country, according to Bloomberg. "Here, large international companies face difficult environmental and geological conditions, as well as a government that is committed to maximizing profits from signed production-sharing agreements," reads the article. Despite the published information, the Ministry of Energy of Kazakhstan isn't disclosing the details of the conflict, calling it a purely commercial dispute. The parties in the consortium NCOC, which includes Eni, Total, ExxonMobil, Shell, China National Petroleum Corp. (CNPC), Japan's Inpex and Kazakh state oil & gas producer, KazMunayGas, believe that they have acted in accordance with the contractual agreements. Earlier, Kazakhstan filed a number of claims in international arbitration against the operators of the Kashagan and Karachaganak oil fields. The claims cover the period from 2010 to 2019.

Russia to Aid Construction of Coal-Fired Thermal Power Plants in Kazakhstan

On April 17, the Minister of Energy of Kazakhstan Almasadam Satkaliev and the Minister of Energy of the Russian Federation Nikolay Shulginov signed an agreement on the construction of coal-fired thermal power plants in the Kazakh cities of Kokshetau, Semey, and Ust-Kamenogorsk. In welcoming the joint initiative, Minister Satkaliev stated that the construction of new thermal power plants will give powerful impetus to the future exploitation of the three regions' extensive coal reserves. With plans already in place, the construction of the first thermal power plant is scheduled to begin later this year.

Seismologists From Japan to Study Earthquakes in Almaty

Japanese experts in the field of seismology will come to Almaty, Kazakhstan's largest city, to study the nature of recent earthquakes there. According to the foreign ministry, a seminar on seismic safety will be organized by the Kazakh Agency for International Development (KazAID). "The co-organizers of the event are the Japanese International Development Agency (JICA), the Kazakh Research and Design and Experimental Institute of Earthquake Engineering (KazNIISA) and the Center for Emergency Situations and Disaster Risk Reduction," a statement said. Japanese seismologists will share their experience with Central Asian counterparts. They will present advanced technologies and standards of seismic isolation, as well as discuss possible cooperation in seismic construction practices. Japanese seismologists will also study the recent earthquakes in Almaty, to allow Kazakh specialists to develop strategies to prevent risks in the future. As previously reported, on January 23 and March 4 in Almaty, sensors recorded tremors with magnitudes of more than five points on the Richter scale. Experts say that the fluctuations of the Earth's crust had an unusual structure for the region.