KAZAKHSTAN: SMALL BORDER TOWN BALANCES RUSSIAN INFLUENCE,

UNCLAS SECTION 01 OF 03 ASTANA 002481 SENSITIVE SIPDIS STATE FOR SCA/CEN, EEB/ESC, EUR/RUS E.O. 12958: N/A TAGS: PGOV EPET EINV SOCI PBTS RS KZ SUBJECT: KAZAKHSTAN: SMALL BORDER TOWN BALANCES RUSSIAN INFLUENCE, KAZAKH IDENTITY, AND WESTERN INVESTMENT REF: ASTANA 1646 ASTANA 00002481 001.2 OF 003 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: Aksai is a small, provincial border town in northern Kazakhstan much like many others -- with the notable exception that it has billions of dollars worth of oil and gas buried in its backyard. Unfortunately, it was clear during a December visit that little of this subsoil wealth has reached the city's 35,000 residents. Aksai is located 165 kilometers from Uralsk, the capital of West Kazakhstan oblast, and about the same distance from Orenburg, a major Russian city just a two-hour drive from the Kazakhstan-Russia border, which is itself only 45 kilometers away from Aksai and not heavily patrolled. It is not surprising, therefore, that the people of Aksai have a strong and lasting affinity for Russia, particularly its language, culture, history, and consumer goods. A tour of the town -- including a visit to the city museum and monuments to local victims of Chernobyl and veterans of World War II and the Soviet war in Afghanistan -- vividly showed how a small town in modern Kazakhstan successfully balances its Soviet past with present ties to Russia and the West. END SUMMARY. RECONCILING KAZAKHSTAN'S SOVIET PAST, NOMADIC TRADITIONS, AND WESTERN INVESTMENT ¶3. (SBU) History museums can reveal as much about a society's present -- its priorities, values and identity -- as its past, particularly small city museums like the one in Aksai. The building, which opened in 1998, is bright, well maintained, and cleverly designed. It neatly and effectively balances artifacts of Soviet history, Kazakh independence, and Western investment. The first room on the left is dedicated to President Nazarbayev and prominently displays a portrait of Russian Prime Minister Putin with Nazarbayev, commissioned when both visited Aksai in October 2006. A banner in the portrait announces the leaders' "declaration of eternal friendship." ¶4. (SBU) The next hall honors Kazakhstan's sacrifices during World War II and features a small bust of Stalin. When asked how people in Aksai feel about Stalin today, the museum tour guide -- an ethnic Kazakh woman named Marina -- said, "People still respect his leadership. The country needed a strong leader like him at that time. We should give him his due." Judging from Marina's somber tone and the size and location of the exhibition, powerful emotions of pain and loss still linger, more than sixty years after the end of the "Great Patriotic War." ¶5. (SBU) Moving effortlessly from Kazakhstan's storied Soviet past to its earlier nomadic customs, Marina escorted us into the next room, dominated by a large Kazakh yurt. She discussed the many traditional objects on display, including weapons, clothing, tools, instruments, carpets, and jewelry. Many of the artifacts were authentic, some even local. Without missing a beat -- or giving a guest time to reconcile Stalin with the Great Horde -- Marina moved to a room with an early Soviet schoolroom. On the teacher's desk was an obligatory bust of Lenin, as well as educational primers, uniforms, and banners. As we left the schoolroom, Marina noted, without a hint of irony, a souvenir Statue of Liberty presented to Aksai athletes who visited New York City on an exchange program in ¶2002. The timewarp did not faze our host, for whom it seemed perfectly normal to cover Putin's visit, Stalin's rule, Kazakh nomads, and the Communist Revolution, all during a thirty-minute tour. KAZAKH-LANGUAGE INSTRUCTION ON THE RISE ¶6. (SBU) Marina said there are five secondary schools in Aksai now, three that deliver instruction entirely in Russian and two that operate in Kazakh. Parents may educate their children in the language of their choice. She enrolled her older child in a Russian school and her younger one in a Kazakh school, "to give him an edge later in life, because it's becoming more important to learn Kazakh," she said. Despite Aksai's proximity to Russia and the ASTANA 00002481 002.3 OF 003 predominance of Russian, many residents said there has been a recent trend toward greater use of Kazakh, particularly by the local and regional governments. EAST EUROPEAN SETTLERS REMEMBERED AND HONORED ¶7. (SBU) Acknowledging the role of other nations in settling the "virgin lands" of northern Kazakhstan, the Aksai museum displays a series of striking portraits of settlers from Ukraine, Belarus, Moldova. The exhibition also features articles and photographs of Pasha Angelina, who was glorified by the Soviet Union as one of the first female tractor-operators and a symbol of the technically educated female Soviet worker. She led a tractor brigade in Kazakhstan at the end of World War II and is apparently still fondly remembered in this provincial town. An antique icon hangs in the corner of the room, honoring the tradition and religion of these east European settlers. NEW KPO WING TOUTS ENVIRONMENTAL AND SOCIAL PROJECTS ¶8. (SBU) The largest display in the museum is dedicated to the exploration of the Karachaganak oil and gas field. Sponsored by Karachaganak Petroleum Operating B.V. (KPO),this wing includes exhibitions on the Caspian Sea's geology and ecology, the basics of the oil business, the relocation of hundreds of Tungush villagers to Uralsk, and KPO's social investments in West Kazakhstan, including projects in Aksai to build a new water tower, kindergarten, and hospital. There is also a children's corner with plush chairs where visiting students can hear a lecture or watch a movie about Karachaganak, including a film highlighting KPO's efforts to preserve and protect the flora and fauna of Karachaganak. When asked about KPO's environmental programs, Marina said, "They are very responsible and have done a tremendous job by reclaiming affected areas, replacing topsoil, and replanting trees." (NOTE: Although KPO has a good reputation among local residents for environmental stewardship, it was fined 1.8 billion KZT (approximately $15 million) by the regional government for alleged environmental violations, which the company continues to dispute (see reftel). END NOTE.) ¶9. (SBU) KPO's Corporate Affairs manager Trina Fahey told us that the company has invested more than $137.4 million in social projects over the last decade and plans to invest more than $500 million over the life of the 40-year production sharing agreement. Yet, despite that sizeable investment, the roads and other infrastructure of Aksai are run down and poorly maintained. The streets are narrow and potted with holes, gas lines and water pipes leak and lack insulation, and local residents and KPO officials agree that the water is not safe to drink. KPO's Business Governance Controller Chris Circuit explained that KPO's payments go to the oblast (regional) government, not to the local government, and the governor of West Kazakhstan oblast has chosen to invest the majority of funds in Uralsk, rather than Aksai. NEW BUSINESS DEVELOPMENT IN AKSAI ¶10. (SBU) Most residents live in apartment blocks built twenty years ago by East Germans and Czechs, who were enticed to the area by Soviet promises of oil and gas shipments. There is a row of large new private homes in the center of the city estimated to cost approximately $200,000, including one that serves as the mayor's mansion. Our driver was quick to point out that the mayor does not own the house and when he leaves office, the new mayor will move in. New construction included private hotels, small businesses, a bowling alley, and an AIDS clinic. KPO expatriate workers often frequent an ostentatious restaurant/night club called "Disco Arman," owned by a local resident and a Korean investor. The nightclub hosts 1,000-1,500 people every Friday and Saturday night and collects a cover charge of 1,000 KZT (approximately $8) from male patrons only. MONUMENTS TO CHERNOBYL AND AFGHANISTAN ¶11. (SBU) In the grassy median of Aksai's main street stand two ASTANA 00002481 003.3 OF 003 monuments to the city's modern sacrifices to Soviet history. One memorializes the heroic efforts of Kazakhstani first responders to contain and control the intense fires that burned after the Chernobyl disaster in 1986; the other honors the service of those who died in Afghanistan during the Soviet-Afghan war. Both memorials are well maintained and frequently visited, judging by the fresh bouquets around them. A QUICK PEEK AT THE RUSSIAN BORDER ¶12. (SBU) From the oil field of Karachaganak, we drove approximately thirty minutes to the Russian border. When we arrived, our KPO guide asked permission to tour the border checkpoint. (NOTE: KPO financed the construction of the guard post and a barbed-wire fence surrounding the facility. In return, KPO vehicles enjoyed expedited customs and immigration processing for two years, although this practice has since ended. END NOTE.) A Kazakhstani border guard checked with his supervisor, then politely obliged. As we walked, he pointed out a new dog trained to detect narcotics and said the most time-consuming aspect of a border crossing is the paperwork required to export and re-import vehicles. He then showed us how passports and visas are inspected and said most visitors are citizens of Tajikistan and Uzbekistan going to Russia looking for work. A box on the counter near the passport control window encouraged customers to make suggestions and comments. ¶13. (SBU) On the Russian side, we could see a new building that may ultimately serve as a single, combined checkpoint for Russian and Kazakhstani border guards, customs officials, and immigration authorities. Our border guard guide told us, however, that the building is still two or three years from opening. HOAGLAND