Identifier
Created
Classification
Origin
06ALMATY3280
2006-09-18 10:17:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
US Office Almaty
Cable title:  

KAZAKHSTAN: "KAZENERGY" LOBBYING ASSOCIATION

Tags:  PGOV PHUM PREL KDEM KZ 
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VZCZCXRO5876
RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #3280 2611017
ZNR UUUUU ZZH
R 181017Z SEP 06
FM AMEMBASSY ALMATY
TO RUEHC/SECSTATE WASHDC 6975
INFO RUEHAST/USOFFICE ASTANA
RUCNCIS/CIS COLLECTIVE
UNCLAS ALMATY 003280 

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR SCA/CEN - O'MARA

E.O. 12958: N/A
TAGS: PGOV PHUM PREL KDEM KZ
SUBJECT: KAZAKHSTAN: "KAZENERGY" LOBBYING ASSOCIATION
MAKES A SPLASH


UNCLAS ALMATY 003280

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR SCA/CEN - O'MARA

E.O. 12958: N/A
TAGS: PGOV PHUM PREL KDEM KZ
SUBJECT: KAZAKHSTAN: "KAZENERGY" LOBBYING ASSOCIATION
MAKES A SPLASH



1. (SBU) Summary: "KazEnergy," Kazakhstan's new "power
industry" association founded by presidential son-in-law
Timur Kulibayev, made its public debut the week of
September 5 by organizing the first annual "Eurasia Energy
Forum" in Astana. The high-level GOK and private sector
attendance at the conference, as well as the corridor
"buzz," suggests that Kulibayev's association, though less
than a year old, has already eclipsed its well-established
rival, the Kazakhstan Petroleum Association (KPA),in
importance. End summary.

KazEnergy Debut
--------------


2. (SBU) KazEnergy, founded by Kulibayev in November 2005,
organized the first annual "Eurasia Energy Forum"
September 5-7 in Astana. The conference drew headline GOK
speakers, including Deputy Prime Minister Masimov and
Minister of Industry and Trade Shkolnik, and was well-
attended - especially those sessions chaired by Kulibayev.
Kulibayev used his opening address to underscore
KazEnergy's role in influencing Kazakhstan's legislative
and regulatory processes, as well as to propose that the
government establish an inter-ministerial commission in
order to simplify governmental relations with energy
companies.


3. (SBU) KazEnergy's founding documents describe the
organization as an "independent, non-commercial union"
created to "promote favorable conditions for the
development of the fuel and energy sector." Echoing
Kulibayev's Forum address, KazEnergy's website
(www.kazenergy.com) justifies the creation of the
association by "the necessity to build a dialogue between
the oil & gas and energy organizations, the state bodies,
and the public."

Membership Roll
--------------


4. (SBU) KazEnergy currently counts 29 members, though
anecdotal evidence suggests that numerous other companies
are in the process of joining. (A representative of one
oil major, present for the conference, told Econoff that
his management had made a big mistake in not joining
KazEnergy upon the first opportunity -- "a lobbying group
with Kulibayev in charge? What a no-brainer!" - and was
now scrambling to get in.) While oil majors and
KazMunaiGas (KMG) subsidiaries dominate the membership
list, the association is meant to encompass electrical and
nuclear energy as well. Among the more interesting
members is "Public Fund Munaishy," a charitable
organization, chaired by Kulibayev's father Askar, which
grants financial support to veterans of the oil & gas
industry.

Reasons to Join
--------------


5. (SBU) Econoff asked several oil company representatives
what distinguished KazEnergy from the KPA. Most answers
came down, in one way or another, to Kulibayev. One
representative explained that in Kazakhstan, companies
succeeded by virtue of having "special" relationships with
key decision-makers - something which rendered useless the
idea of a traditional industry association, which pooled
the ideas and influence of its members in order to advance
a common agenda. Among those key decision-makers, the
explanation continued, Kulibayev was paramount. (As if to
prove the benefits of membership, Kulibayev conducted a
series of pre-arranged side meetings with industry
representatives on the margins of the KazEnergy
conference.)


6. (SBU) Another industry representative suggested that,
while KMG belonged to the KPA, it had never really
participated in KPA's activities, leaving the KPA with the
reputation of being an "AmCham-like expat-only
association." With half of its members being KMG
subsidiaries, on the other hand, KazEnergy promised to
represent the interests of -- and have the full backing of
-- Kazakhstani companies. Shkolnik may have previsaged
this role for KazEnergy in his conference speech, which
was devoted to the importance of increasing Kazakhstani
local content and strengthening Kazakhstani company
participation in the country's oil service sector.

ORDWAY