Identifier
Created
Classification
Origin
06ASTANA82
2006-08-29 10:53:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Astana
Cable title:  

ENVIRONMENT MINISTER DENIES THREATS, NOT PROBLEM

Tags:  SENV ECON ENRG EPET KZ 
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RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHAST #0082/01 2411053
ZNR UUUUU ZZH
R 291053Z AUG 06
FM USOFFICE ASTANA
TO RUEHC/SECSTATE WASHDC 0177
INFO RUEHAST/USOFFICE ASTANA 0183
RUEHTA/AMEMBASSY ALMATY 0158
RUCNCIS/CIS COLLECTIVE
RUEHNT/AMEMBASSY TASHKENT
UNCLAS SECTION 01 OF 02 ASTANA 000082 

SIPDIS

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: SENV ECON ENRG EPET KZ
SUBJECT: ENVIRONMENT MINISTER DENIES THREATS, NOT PROBLEM

REF: ALMATY 2273

ASTANA 00000082 001.2 OF 002


UNCLAS SECTION 01 OF 02 ASTANA 000082

SIPDIS

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: SENV ECON ENRG EPET KZ
SUBJECT: ENVIRONMENT MINISTER DENIES THREATS, NOT PROBLEM

REF: ALMATY 2273

ASTANA 00000082 001.2 OF 002



1. (SBU) Summary: In an August 25 meeting with ESTH officer,
Minister of Environmental Protection Nurlan Iskakov claimed that
Tenghizchevroil has committed "systematic" environmental
violations. He denied, however, that he raised the possibility
of revoking Tenghizchevroil's license for violations of
environmental laws, despite media reports to the contrary.
Iskakov stated that his Ministry has no right to cancel or
withdraw contracts, and he blamed the opposition media for
manipulating his statements. He does not wish to hamper
investment in the energy sector, he added. But Iskakov said
that this desire must be counterbalanced with the need to
modernize environmental protection standards as part of
Kazakhstan's larger effort to become one of the fifty most
developed countries in the world. End summary.

MINISTER ISKAKOV REFUTES STATEMENTS


2. (U) ESTH officer called a working level contact at the
Ministry of Environmental Protection to request a meeting to
discuss recent media reports that Minister Nurlan Iskakov had
threatened to revoke Tenghizchevroil's license for violations of
environmental laws. A day later, the contact informed ESTH
officer that Iskakov himself would lead the meeting.


3. (SBU) At the August 25 meeting, Iskakov strongly denied ever
threatening to revoke Tenghizchevroil's license. Only the
Ministry of Energy can take such action, he said. The Ministry
of Environmental Protection is able to make its recommendations
to the Ministry of Energy, but it does not intend to call for
drastic measures such as license revocation. Iskakov blamed the
opposition media for misrepresenting his statements, accusing
them of turning every government success into a failure. He
said that he makes every effort not to hamper investment, and he
specifically asked that this message "be passed on to
Washington."


4. (SBU) Although ESTH officer made clear that he sought only to
gather information on the scope of Kazakhstan's environmental
concerns and not to advocate for Tenghizchevroil, Isakov offered
a number of statistics to demonstrate that Kazakhstani energy

companies have been subject to far more penalties than have
multinationals. He also said that he has received no orders or
instructions to single out Tenghizchevroil.

BUT EXPRESSES CONCERNS


5. (SBU) Iskakov admitted, however, that he remains troubled by
Tenghizchevroil's environmental record. He called
Tenghizchevroil's environmental violations systematic. His
greatest concern, he said, is the accumulation of sulfur at the
Tenghiz site. According to Iskakov, ten millon tons of sulphur
have already accumulated at the site.


6. (U) On August 25, Tenghizchevroil released a statement in
which it denied environmental violations and noted that it has
invested $1 billion in environmental protection measures in its
eight years of working in Kazakhstan. Tenghizchevroil's General
Director Todd Levy told Econoff in June that the key issue being
negotiated between Tenghizchevroil and the authorities is the
rate at which they will shrink the stockpile. (Reftel) Chevron
has declined Embassy offers to raise this issue with the
Kazakhstanis.


7. (SBU) Iskakov reiterated that his Minstry can only highlight
the issue of pollution, but that it is for the Minstry of Energy
and the Presidential Administration to take measures. If the
violations continue, Iskakov may recommend a tightening of the
provisions of the Tenghiz contract. When asked about the
substance of such recommendations, he offered no specifics.

MODERNIZING THE MINISTRY OF ENVIRONMENT


8. (U) Minister Iskakov emphasized on several occasions the
importance of Kazakhstan's goal to become one of the fifty most
developed countries in the world. He reported that President
Nazarbayev has thus specifically instructed him to ensure that
Kazakhstan's environmental regulations meet international
standards.


9. (U) As a result, said Iskakov, Kazakhstan does not wish to
act punitively but does demand that the industries adopt the
same procedures used in Western countries, with the same level
of technology and the same environmental protections.


10. (SBU) Comment: Minister Isakov's decision to meet personally
with ESTH demonstrates his strong desire to quickly clarify or
refute inflammatory statements he made regarding
Tenghizchevroil. But while he may have overstepped his bounds,

ASTANA 00000082 002.2 OF 002


he clearly remains convinced that serious environmental problems
exist in Kazakhstan as a result of energy development. Given
that President Nazarbayev has explicitly tasked him with
strengthening Kazakhstan's environmental standards, his concerns
will have some weight. End comment.


11. (SBU) Bio note: Minister of Environmental Protection
Iskakov has traveled to the United States and spoke warmly both
of the country and of its environmental protection standards.
His young Vice Minister, Alzhan Braliev, studied at Harvard and
participated actively in ESTH's meeting with Minister Iskakov.
Both men gave the impression that they would welcome heightened
cooperation with the U.S.
ORDWAY