Identifier
Created
Classification
Origin
08ASTANA726
2008-04-15 06:15:00
UNCLASSIFIED
Embassy Astana
Cable title:
KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, MARCH 22 - APRIL 4,
how-toVZCZCXRO7599 RR RUEHLN RUEHVK RUEHYG DE RUEHTA #0726 1060615 ZNR UUUUU ZZH R 150615Z APR 08 FM AMEMBASSY ASTANA TO RUEHC/SECSTATE WASHDC 2213 INFO RUCPCIM/CIMS NTDB WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC RUCNCIS/CIS COLLECTIVE 0472 RUEHAK/AMEMBASSY ANKARA 2156 RUEHBUL/AMEMBASSY KABUL 0393 RUEHNE/AMEMBASSY NEW DELHI 0501 RUEHAST/USOFFICE ALMATY 0384
UNCLAS ASTANA 000726
SIPDIS
DEPT FOR SCA/CEN (O'MARA)
DEPT PASS TO OPIC - BALLINGER
DEPT PASS TO TDA FOR STEIN, EXIM FOR GLAZER
DEPT PASS TO AID - EE-PHILLIPS/RUSHING
TREASURY FOR OASIA/VELTRI
USDOC FOR 4231/ITA/MAC/MLONDON, 4201/BISNIS
USDOC FOR 6110/ITA/TD/BI/RHALPERN
ANKARA FOR CFC
SIPDIS
E.O. 12958: N/A
TAGS: ECON EIND ENRG EPET EFIN KTDB KZ
SUBJECT: KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, MARCH 22 - APRIL 4,
2008
UNCLAS ASTANA 000726
SIPDIS
DEPT FOR SCA/CEN (O'MARA)
DEPT PASS TO OPIC - BALLINGER
DEPT PASS TO TDA FOR STEIN, EXIM FOR GLAZER
DEPT PASS TO AID - EE-PHILLIPS/RUSHING
TREASURY FOR OASIA/VELTRI
USDOC FOR 4231/ITA/MAC/MLONDON, 4201/BISNIS
USDOC FOR 6110/ITA/TD/BI/RHALPERN
ANKARA FOR CFC
SIPDIS
E.O. 12958: N/A
TAGS: ECON EIND ENRG EPET EFIN KTDB KZ
SUBJECT: KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, MARCH 22 - APRIL 4,
2008
1. Summary: This information is drawn primarily from the
Kazakhstani local press, and has not been verified for accuracy.
-- KazAgro to Transfer Secondary Assets
-- ArcelorMittal Temirtau Wins Court Ruling in Tax Dispute
-- KMG to Upgrade Oil Refineries
-- State Considers a 15% Stake in Kazakhmys
-- Economic and Energy Statistics for January-March 2008
KazAgro to Transfer Secondary Assets
--------------
2. The state agricultural holding company KazAgro plans to spin off
some of its secondary assets not directly associated with its
operations. According to KazAgro management board chairman Alikhan
Smailov, such assets include grain storage facilities and a cotton
refining plant. (Kazakhstan Today, April 4)
ArcelorMittal Temirtau Wins Court Ruling Tax Dispute
-------------- --------------
3. The Karaganda regional court ruled in favor of metals company
ArcelorMittal Temirtau (AMT) in its claim against the Temirtau Tax
Committee, which levied corporate income taxes from 2002-2005 on an
AMT offshore subsidiary in the UAE. The Tax Committee will appeal
the decision. The Karaganda regional court's decision reversed an
earlier ruling by a lower court in the Tax Committee's favor.
(Kazinform, April 4)
KMG To Upgrade Oil Refineries
--------------
4. According to the KMG Crude Processing Department Deputy Director
Arman Kairdenov, reconstruction of the Pavlodar oil refinery (in
North Kazakhstan) will cost approximately $500 million. KMG plans
to obtain a 70% stake in the Indonesian-led company
MangistauMunayGas, which co-owns the refinery. KMG is also in talks
with its partner, Chinese National Petroleum Corporation, to fund
the upgrade of the Shymkent oil refinery (in South Kazakhstan) and
is in search of external financing to increase the capacity of its
Atyrau oil refinery (in West Kazakhstan). (Astana TV Channel, March
27)
State Considers a 15% Stake in Kazakhmys
--------------
5. Kazakhstan's government intends to buy a 15% stake in the
privately-owned copper producing company Kazakhmys. The company
confirmed that it has held preliminary negotiations with the
government. In December of 2002, the state sold its 24.65% stake in
Kazakhmys. (Delovaya nedelya newspaper, March 28)
Economic and Energy Statistics for January-March 2008
-------------- --------------
6. According to the National Statistics Agency, the inflation rate
was 2.5% during January-March 2008, compared to 2.6% during the same
period in 2007. The exchange rate averaged 120.45 tenge per dollar.
(Delovaya Nedelya newspaper, April 4)
7. Total production of gas condensate and crude oil during
January-March was up 6.4% year-on-year to 17.675 million tons,
though gas condensate production itself fell 5.3% to 1.648 million
tons. Production of gas (dry natural gas, LNG, and natural gas
liquids) during the three-month period grew 10.4% year-on-year to
8.294 billion cubic meters, which included an 18.8% increase in dry
natural gas production to 5.041 bcm. (Interfax-Kazakhstan, April 2)
ORDWAY
SIPDIS
DEPT FOR SCA/CEN (O'MARA)
DEPT PASS TO OPIC - BALLINGER
DEPT PASS TO TDA FOR STEIN, EXIM FOR GLAZER
DEPT PASS TO AID - EE-PHILLIPS/RUSHING
TREASURY FOR OASIA/VELTRI
USDOC FOR 4231/ITA/MAC/MLONDON, 4201/BISNIS
USDOC FOR 6110/ITA/TD/BI/RHALPERN
ANKARA FOR CFC
SIPDIS
E.O. 12958: N/A
TAGS: ECON EIND ENRG EPET EFIN KTDB KZ
SUBJECT: KAZAKHSTAN ECONOMIC AND ENERGY UPDATE, MARCH 22 - APRIL 4,
2008
1. Summary: This information is drawn primarily from the
Kazakhstani local press, and has not been verified for accuracy.
-- KazAgro to Transfer Secondary Assets
-- ArcelorMittal Temirtau Wins Court Ruling in Tax Dispute
-- KMG to Upgrade Oil Refineries
-- State Considers a 15% Stake in Kazakhmys
-- Economic and Energy Statistics for January-March 2008
KazAgro to Transfer Secondary Assets
--------------
2. The state agricultural holding company KazAgro plans to spin off
some of its secondary assets not directly associated with its
operations. According to KazAgro management board chairman Alikhan
Smailov, such assets include grain storage facilities and a cotton
refining plant. (Kazakhstan Today, April 4)
ArcelorMittal Temirtau Wins Court Ruling Tax Dispute
-------------- --------------
3. The Karaganda regional court ruled in favor of metals company
ArcelorMittal Temirtau (AMT) in its claim against the Temirtau Tax
Committee, which levied corporate income taxes from 2002-2005 on an
AMT offshore subsidiary in the UAE. The Tax Committee will appeal
the decision. The Karaganda regional court's decision reversed an
earlier ruling by a lower court in the Tax Committee's favor.
(Kazinform, April 4)
KMG To Upgrade Oil Refineries
--------------
4. According to the KMG Crude Processing Department Deputy Director
Arman Kairdenov, reconstruction of the Pavlodar oil refinery (in
North Kazakhstan) will cost approximately $500 million. KMG plans
to obtain a 70% stake in the Indonesian-led company
MangistauMunayGas, which co-owns the refinery. KMG is also in talks
with its partner, Chinese National Petroleum Corporation, to fund
the upgrade of the Shymkent oil refinery (in South Kazakhstan) and
is in search of external financing to increase the capacity of its
Atyrau oil refinery (in West Kazakhstan). (Astana TV Channel, March
27)
State Considers a 15% Stake in Kazakhmys
--------------
5. Kazakhstan's government intends to buy a 15% stake in the
privately-owned copper producing company Kazakhmys. The company
confirmed that it has held preliminary negotiations with the
government. In December of 2002, the state sold its 24.65% stake in
Kazakhmys. (Delovaya nedelya newspaper, March 28)
Economic and Energy Statistics for January-March 2008
-------------- --------------
6. According to the National Statistics Agency, the inflation rate
was 2.5% during January-March 2008, compared to 2.6% during the same
period in 2007. The exchange rate averaged 120.45 tenge per dollar.
(Delovaya Nedelya newspaper, April 4)
7. Total production of gas condensate and crude oil during
January-March was up 6.4% year-on-year to 17.675 million tons,
though gas condensate production itself fell 5.3% to 1.648 million
tons. Production of gas (dry natural gas, LNG, and natural gas
liquids) during the three-month period grew 10.4% year-on-year to
8.294 billion cubic meters, which included an 18.8% increase in dry
natural gas production to 5.041 bcm. (Interfax-Kazakhstan, April 2)
ORDWAY