Identifier
Created
Classification
Origin
07ASTANA87
2007-01-10 11:45:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Astana
Cable title:  

KAZAKHSTAN: KARIM MASIMOV NAMED NEXT PRIME MINISTER

Tags:  PGOV PHUM PREL PINR KZ 
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VZCZCXRO4179
RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #0087/01 0101145
ZNR UUUUU ZZH
R 101145Z JAN 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 8148
INFO RUCNCIS/CIS COLLECTIVE
RUEHAST/USOFFICE ALMATY
UNCLAS SECTION 01 OF 02 ASTANA 000087 

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SENSITIVE
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DEPT FOR SCA/CEN (T. PERRY)

E.O. 12958: N/A
TAGS: PGOV PHUM PREL PINR KZ
SUBJECT: KAZAKHSTAN: KARIM MASIMOV NAMED NEXT PRIME MINISTER


ASTANA 00000087 001.2 OF 002


UNCLAS SECTION 01 OF 02 ASTANA 000087

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR SCA/CEN (T. PERRY)

E.O. 12958: N/A
TAGS: PGOV PHUM PREL PINR KZ
SUBJECT: KAZAKHSTAN: KARIM MASIMOV NAMED NEXT PRIME MINISTER


ASTANA 00000087 001.2 OF 002



1. (SBU) Summary: President Nazarbayev named Karim Masimov
Kazakhstan's new Prime Minister on January 10, replacing Daniyal
Akhmetov. Masimov's nomination was approved by a joint session of
Parliament the same day.
Once Masimov is officially appointed to the position, he will have
10 days to recommend new Cabinet members for appointment by the
President. Masimov, an economist, worked as an assistant to
Nazarbayev for three years before being appointed Deputy Prime
Minister in January 2006. Public reaction to the change has been
modest, reflecting the widespread view that the Prime Minister
enjoys relatively little power in Kazakhstan, and because a change
in government has long been rumored. Although we expect that
Masimov will continue to be a valuable USG interlocutor, post does
not expect that his appointment will dramatically affect either our
bilateral relationship or the government's near-term course. End
summary.

Nazarbayev Names Masimov Next PM
--------------


2. (SBU) On January 10, President Nazarbayev named Karim Masimov as
Kazakhstan's new Prime Minister, replacing Daniyal Akhmetov, who
submitted his resignation on January 8. Masimov's nomination was
approved by a joint session of Parliament the same day. According
to press reports, the vote was unanimous in favor of Masimov.
Eleven members of the Mazhilis did not take part in the session.


3. (SBU) Once Nazarbayev formally appoints Masimov - which may occur
later today - Masimov will have 10 days in which to recommend new
Cabinet members for appointment by the president. Prior to this
appointment, Masimov served as Deputy Prime Minister (and
simultaneously for several months as Minister of Economy and Budget
Planning),where he handled economic issues and provided overall
strategic direction for the government. Masimov, who worked as an
assistant to Nazarbayev for three years prior to becoming Deputy
Prime Minister, appears to have excellent access to Nazarbayev, as
well as rumored close relations with influential presidential
son-in-law Timur Kulibayev.

Other Cabinet Changes

--------------


4. (SBU) Kazakhstan Today reported that President Nazarbayev told
the joint session of parliament that Daniyal Akhmetov had accepted
his offer to become the first civilian Minister of Defense.
Nazarbayev also said that he would nominate Minister of Economy and
Budget Planning Aslan Musin to replace Masimov as Deputy Prime
Minister. Musin, until recently akim of Atyrau Oblast, has little
Astana experience but is known as an energetic and loyal supporter
of the president. These appointments will not take effect until the
presidential decree appointing all of the new cabinet members is
issued.

President Consults with Ruling Party
--------------


5. (SBU) On January 8, just hours after Akhmetov's resignation,
President Nazarbayev consulted with leaders of the ruling Nur Otan
party on the nomination of a new Prime Minister and Cabinet. (Note:
Nur Otan holds approximately 90% of parliamentary seats. End note.)
Although there was no official announcement, Nur Otan party Chief of
Staff Yermek Kusherbayev confirmed to visiting desk officer and
Pol-Econ chief that Masimov's candidacy had been proposed during the
meeting. The next day, Nur Otan's parliamentary members met to
discuss Masimov's candidacy, as well as the composition of a new
Cabinet. Both meetings were widely publicized in the media as the
first occasion in Kazakhstan's history in which the President
consulted with a political party on the appointment of a new
Cabinet.

Speculating on Reasons for Change
--------------


6. (SBU) Local media has downplayed the importance of the change,
pointing out that the Prime Minister's powers are eclipsed by those
of President Nazarbayev. Numerous analysts suggest that Akhmetov's
resignation was driven by his Cabinet's failure to address key
macro-economic issues, including inflation (the National Bank has
issued a preliminary 2006 inflationary estimate of 8.5%) and
anti-monopoly regulation. Last January's cabinet change - in which
Masimov was brought on as Deputy Prime Minister, among other moves -
is now widely seen, in retrospect, as having stripped Akhmetov of
key portions of the economic portfolio, perhaps foretelling his
eventual resignation. Other analysts see Masimov's appointment as a
sign that the future government will concentrate on economic reform,
leaving the issue of political reform to the Democratization
Commission.

Biographical Data

ASTANA 00000087 002.2 OF 002


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7. (SBU) Masimov (an ethnic Uighur, born 6/15/65),studied at Moscow
University of People's Friendship, the Beijing Language Institute,
and the Kazakhstan State Economics University, from which he
received a doctorate in economics in 1995. In 1991 he worked as
Legal Advisor to the Soviet Trade Representative in China; from
1991-92 as an Economist and Department Head at the Ministry of
Labor; and from 1992-93 as a Senior Specialist in the Ministry of
External Economic Relations' Representative Office in Urumchi,
China. After working in private business from 1993-94 and as the
Executive Director of the Kazakhstani Trading House in Hong Kong,
Masimov worked in the banking sector from 1995-2000, finishing as
Head of the Board of Halyk Savings Bank. In August 2000 he was
appointed Minister of Transport and Communications; and in November
2001, as Deputy Prime Minister. In June 2003 Masimov was appointed
Assistant to President Nazarbayev, a position he held until January
2006, when he was appointed Deputy Prime Minister. In April 2006 he
was given the additional responsibility of Minister of Economy and
Budget Planning, which he held until October 2006. Masimov is
married, with two daughters and a son, and speaks Russian, Chinese,
English, and Arabic.

MILAS