Identifier
Created
Classification
Origin
07ASTANA950
2007-04-13 10:34:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Astana
Cable title:
KAZAKHSTAN: CTR VAT COMMISSION MOVES TOWARD A
how-toVZCZCXRO3995 PP RUEHDBU RUEHLN RUEHVK RUEHYG DE RUEHTA #0950 1031034 ZNR UUUUU ZZH P 131034Z APR 07 FM AMEMBASSY ASTANA TO RUEHC/SECSTATE WASHDC PRIORITY 9078 INFO RUCNCIS/CIS COLLECTIVE PRIORITY 0125 RUEHAST/USOFFICE ALMATY PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY 0025
UNCLAS ASTANA 000950
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN (M. O'MARA),SCA/RA (A. CUMMINGS)
SECDEF FOR ATSD/NCB/CT/TR AND ASD/ISP/TSP/CP/CTR
E.O. 12958: N/A
TAGS: PARM PREL KNNP KZ
SUBJECT: KAZAKHSTAN: CTR VAT COMMISSION MOVES TOWARD A
DECISION
REF: A. ASTANA 927 B. ASTANA 906 C. ASTANA 860
UNCLAS ASTANA 000950
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN (M. O'MARA),SCA/RA (A. CUMMINGS)
SECDEF FOR ATSD/NCB/CT/TR AND ASD/ISP/TSP/CP/CTR
E.O. 12958: N/A
TAGS: PARM PREL KNNP KZ
SUBJECT: KAZAKHSTAN: CTR VAT COMMISSION MOVES TOWARD A
DECISION
REF: A. ASTANA 927 B. ASTANA 906 C. ASTANA 860
1. (SBU) The interagency commission established to review the
Cooperative Threat Reduction (CTR) value-added tax exemption
claims for subcontractors met twice on April 12 and 13. The
Commission has not yet issued a written decision but several
commission members told Pol/Econ Chief and DTRA Chief that
they have reached agreement in principle on a technical
approach to approve the Biological Threat Reduction (BTR)
contracts. They are awaiting a written decision from the
Ministry of Justice and Ministry of Defense before issuing
the document certifying the subcontracts under consideration.
They promised to work into the night and weekend to finalize
the agreement. DTRA Chief and Pol/Econ Chief both saw a draft
of a protocol exempting five subcontractor packages, although
it was unsigned.
2. (SBU) There has been disagreement among the Ministries
involved in the review process. On April 12, Minister of
Finance Korzhova told the Ambassador and several commission
members informed DTRA Chief that the relevant implementing
agreements may need to be ratified, because the CTR Umbrella
agreement only references strategic offensive weapons. The
next day, however, MFA Section for International Security
Advisor Sergey Savelyev, a commission participant, told
Pol-Econ Chief that the MFA believes that no ratification is
necessary. He added that the MFA is preparing a position
paper for the Ministries of Justice and Finance in support of
this argument. Savelyev said that he is optimistic of a
positive result, although he noted that all will depend on
Minister of Finance Korzhova.
3.(SBU) Comment: The CTR VAT commission appears close to a
decision on the package of subcontracts submitted by the
Embassy. Whatever the outcome, the Kazakhstanis have at
least demonstrated that they understand the importance of the
issue and have created a review mechanism that seems to be
working. End comment
ORDWAY
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN (M. O'MARA),SCA/RA (A. CUMMINGS)
SECDEF FOR ATSD/NCB/CT/TR AND ASD/ISP/TSP/CP/CTR
E.O. 12958: N/A
TAGS: PARM PREL KNNP KZ
SUBJECT: KAZAKHSTAN: CTR VAT COMMISSION MOVES TOWARD A
DECISION
REF: A. ASTANA 927 B. ASTANA 906 C. ASTANA 860
1. (SBU) The interagency commission established to review the
Cooperative Threat Reduction (CTR) value-added tax exemption
claims for subcontractors met twice on April 12 and 13. The
Commission has not yet issued a written decision but several
commission members told Pol/Econ Chief and DTRA Chief that
they have reached agreement in principle on a technical
approach to approve the Biological Threat Reduction (BTR)
contracts. They are awaiting a written decision from the
Ministry of Justice and Ministry of Defense before issuing
the document certifying the subcontracts under consideration.
They promised to work into the night and weekend to finalize
the agreement. DTRA Chief and Pol/Econ Chief both saw a draft
of a protocol exempting five subcontractor packages, although
it was unsigned.
2. (SBU) There has been disagreement among the Ministries
involved in the review process. On April 12, Minister of
Finance Korzhova told the Ambassador and several commission
members informed DTRA Chief that the relevant implementing
agreements may need to be ratified, because the CTR Umbrella
agreement only references strategic offensive weapons. The
next day, however, MFA Section for International Security
Advisor Sergey Savelyev, a commission participant, told
Pol-Econ Chief that the MFA believes that no ratification is
necessary. He added that the MFA is preparing a position
paper for the Ministries of Justice and Finance in support of
this argument. Savelyev said that he is optimistic of a
positive result, although he noted that all will depend on
Minister of Finance Korzhova.
3.(SBU) Comment: The CTR VAT commission appears close to a
decision on the package of subcontracts submitted by the
Embassy. Whatever the outcome, the Kazakhstanis have at
least demonstrated that they understand the importance of the
issue and have created a review mechanism that seems to be
working. End comment
ORDWAY