KAZAKHSTAN: U.S.-FUNDED PROJECTS IN STEPNOGORSK SHOW

UNCLAS SECTION 01 OF 03 ASTANA 000254 SENSITIVE SIPDIS STATE FOR SCA/CEN, ISN, EEB E.O. 12958: N/A TAGS: PGOV PINR PREL EAID EAGR TBIO KNNP KZ SUBJECT: KAZAKHSTAN: U.S.-FUNDED PROJECTS IN STEPNOGORSK SHOW SCIENTIFIC RESULTS AND COMMENDABLE INTERNATIONAL COOPERATION ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: POLOFF recently met with various interlocutors working on several U.S.-funded nonproliferation-related projects in Stepnogorsk. Stepnogorsk today represents the opportunities and challenges the Kazakhstani government faces in modernizing its scientific institutions. Project managers told POLOFF their facilities are modern, despite persistent maintenance issues, and the scientists are well-trained, if not entirely well-versed in the use of recently-acquired equipment. The four projects in Stepnogorsk have all successfully produced scientifically-valuable results. One project related to producing silage for dairy cattle is approaching commercialization. The other three projects suffered from problems related to changes in Kazakhstani project management. END SUMMARY. FROM SECRET CITY TO KAZAKHSTANI BIOTECH CENTER ¶3. (SBU) POLOFF recently met with various interlocutors working on several U.S.-funded nonproliferation-related projects in Stepnogorsk. Once a secret "closed" Soviet city primarily dedicated to research on biological weapons, Stepnogorsk today represents the opportunities and challenges the Kazakhstani government faces in modernizing its scientific institutions. Stepnogorsk's biological weapons research and production facilities were dismantled under U.S. nonproliferation initiatives in the 1990s, and most of the former scientists who remained in Kazakhstan are now employed by several biological research institutes, namely Biomedpreparat, and its two spin-offs, the Institute of Agricultural Biotechnology (IAB) and the Institute of Industrial Biotechnology (IIB). IIB, which separated from Biomedpreparat in 1995, has 60 employees and three labs, and specializes in microbiology, particularly the isolation, purification, and chemical analysis of enzymes. The government of Kazakhstan has also launched two public-private ventures, working on biotechnology-related production, both of which are located at the former biological-weapons site known as the Progress Plant. ¶4. (SBU) POLOFF observed that the facilities have been modernized and contain sophisticated equipment. IIB, for instance, recently acquired a $30,000 spectroscope. Local scientists are well-trained, �0A;and have been producing high-quality data. However, as POLOFF personally observed, and as U.S. scientists involved in the projects recounted to PolOff, it is difficult to maintain the facilities and sensitive equipment like the spectroscope when long power-outages in freezing weather are frequent occurrences. Moreover, many of the scientists lack training on certain specific techniques, or on using recently-acquired equipment. For instance, during PolOff's visit, one mid-level scientist used the visit of the two U.S. scientists to get some basic training on reading the results from the spectroscope. Moreover, many of the scientists struggle with designing "Western-style" experiments, commercializing projects, and getting their results published in journals outside of the former Soviet Union. U.S.-FUNDED PROJECTS IN STEPNOGORSK PRODUCING RESULTS... ¶5. (SBU) The U.S. government has been financing and providing advice on four projects in Stepnogorsk. One is a project to identify naturally-occurring enzymes in Kazakhstan that can be effective additives to silage for dairy cattle, the second is a project to use enzymes to produce growth-promoters for wheat proteins, the third is a project to produce amylolytic enzymes, and the fourth is related to fighting cancer. According to both its U.S. and Kazakhstani project managers, the dairy-cattle silage project, which is midway through its projected time horizon, has shown tremendous progress. Bill Orts, project manager for the second and third projects, told POLOFF that that while initial scientific results had been positive, the sudden death of the Kazakhstani project manager in June 2008 caused serious delays. The wheat-protein project will conclude in September 2009, although Orts told POLOFF he planned to apply for future funding based on the initial research results. Orts also told POLOFF that the research on enzymes done by the first three projects is widely-applicable, ASTANA 00000254 002 OF 003 noting that the same enzymes used in dairy silage can be used for production of ethanol fuels and biodegradable packaging material. Orts applied to convert the wheat-protein research program into a project to develop biodegradable packaging material starting in February 2009, but the USDA rejected the proposal in December 2008. Another possible application is using enzymes to develop nutriceuticals. Orts has been working collaboratively on the third project with a prominent USDA scientist, Dominic Wong. (NOTE: Wong generates a significant amount of revenue for the USDA from his highly successful McDonald's apple dippers patent. END NOTE.) On Wong's behalf, Orts conducts the in-country reviews in Kazakhstan and Wong advises the project from the United States. Orts told PolOff that Wong is pleased with the research from the third project. ...IN SPITE OF CHANGES IN MANAGEMENT ¶6. (SBU) After the death of the original project manager for three of the four projects, the replacement project manager, Baltayev, became another serious obstacle. Erlan Ramankulov, Director of the Astana-based National Center for Biotechnology (NCB),which is the parent-organization of IIB and Biomedpreparat, told POLOFF and visiting program advisor Mark Cutler that he fired Baltayev for allegedly embezzling funds, among other forms of professional misconduct. (NOTE: Ramankulov, a U.S.-trained scientist and former employee of the U.S. Center for Disease Control, has been very supportive of U.S.-funded ISTC projects in Stepnogorsk. END NOTE.) Ramankulov also told POLOFF he had had previous conflicts with Baltayev over the veracity of his results, and said Baltayev had committed acts of nepotism, allegedly having hired a number of his family members as well as Uzbek scientists. Ramankulov said he suspected Baltayev had been extracting money from the Uzbek scientists for finding them good positions at the IIB. Ramankulov and Cutler agreed upon nominating the capable and reliable deputies for each project as the new project managers. SILAGE PROJECT READY FOR LARGE-SCALE TEST ¶7. (SBU) POLOFF separately accompanied two USDA scientists, Paul Weimer and Richard Muck, on their annual visit to the Institute for Industrial Biotechnology (IIB) to review the dairy silage project. During the review period, under the management of microbiologist Slava Kenzhebayev, IIB's team identified an enzyme which could potentially be highly-effective in producing dairy silage. During the visit to Stepnogorsk, Weimer and Muck evaluated the research data, concluded that the findings justified conducting a large-scale dairy cattle feeding-trial, and identified potential partners which could produce and process the enzyme in the quantities necessary for the feeding trial. Muck and Weimer told POLOFF that they were "impressed by the quality of IIB's data." SOVIET-STYLE INPUT-CONTROL VERSUS THE ALL-YOU-CAN-EAT APPROACH ¶8. (SBU) Despite the sophisticated understanding of science shown by IIB scientists involved in the daily silage project, the IIB is still adjusting to U.S. research methods. The IIB team, particularly one older Kazakhstani scientist, proposed a research plan for the feeding trial based on Soviet studies, which called for providing the cattle with incremental additions of treated silage on top of normal dairy rations. Essentially, this study would have focused on determining how much additional milk could be produced by adding as little enzyme-treated silage as possible. In contrast, as Muck and Weimer quickly pointed out, U.S. feeding trials provide all cattle with as much feed as they can eat, with one set of cattle provided with enzyme-treated silage and another with unmodified feed. The U.S. "all-you-can-eat" feeding trial also ultimately investigates how much additional milk can be produced. Previous feeding trials, however, have demonstrated a key difference in outcomes based on the two approaches; at low levels of enzyme-addition, it is difficult to observe a significant effect. The U.S. project managers therefore advocated for the second approach, and also recommended that the first trial be conducted in Wisconsin, where the USDA already has a site often used for such ASTANA 00000254 003 OF 003 feeding trials. The IIB team accepted both suggestions. USDA project managers Muck and Weimer, along with their IIB counterparts, tentatively agreed to field trials during the spring of 2009. SILAGE PROJECT REQUIRES EXPANSION TO PRODUCTION FACILITIES ¶9. (SBU) In order to conduct the feeding trial, IIB announced they will need a larger quantity of enzyme than IIB can produce in-house. During their visit, Muck and Weimer identified two partners that could produce and dry the enzyme in the required quantities. They located the first facility through the assistance of Erlan Ramankulov (see para 6 above). Ramankulov, who was visiting Stepnogorsk to meet with the regional governor and other project leaders during Muck and Weimer's visit, encouraged Muck and Weimer to consider Biocomb as a source for the production of enzymes necessary for the feeding trial. Ramankulov offered to use his influence as a member of the Biocomb Board of Directors to secure enzyme production on an "at-cost" basis. Biocomb, a public-private venture located at the former biological weapons-site known as the Progress Plant, recently installed seven large fermenters, which would provide enough capacity for the mass culture of the IIB strains for enzyme production. However, while Biocomb has some freeze-drying capability, neither IIB nor Biocomb have the equipment necessary to freeze-dry large enough quantities of enzyme for the feeding trials. Muck and Weimer also visited Biocorm, another public-private facility located at the Progress Plant. The plant, which has 32 huge fermenters with a capacity of 67,000 liters each, dwarfs Biocomb's seven fermenters with a capacity of 630-1000 liters each. However, the units were no longer operational because the electronics had been removed following the break-up of the Soviet Union. Biocorm has more than sufficient capability, and plant manager Natalya Pokoevea indicated willingness to undertake the spray-drying necessary for the feeding trial. Biocorm estimated the cost would be approximately $1000, although company managers also indicated that if the product moves into the commercial phase, drying could be done at a lower cost per liter. Mark Cutler, who has been advising the project, told POLOFF that until the efficacy of the enzyme is demonstrated in a field trial, it is impossible to proceed with commercialization of the project. Muck, Weimer, Ramankulov and the IIB team have therefore been working together to confirm whether the current year's project budget will be sufficient to cover the costs of preparing enough enzyme and silage for the feed test. TOP MANAGEMENT PROMOTING INTERNATIONAL COOPERATION IN SCIENCE ¶10. (SBU) The IIB's new director, Oleg Ten, who graduated with a Ph.D. from Moscow State University, actively participated in all of the meetings reviewing U.S.-funded projects, including the Muck and Weimer visit and the subsequent Cutler and Orts review in Stepnogorsk. Ramankulov, who has known Ten for many years, told PolOff that he is "a good scientist, very conscientious," and that he should make a well-qualified overall manager for IIB and its projects. POLOFF personally observed that Ten demonstrated strong interest in the U.S.-funded project and asked detailed questions about the design of the experiments. Ramankulov told POLOFF that his main goal is to encourage projects, such as the four U.S.-funded projects at Stepnogorsk, which enhance cooperation with scientists in the United States and Europe. Ramankulov said that he is offering free English-language training to all of the National Biotechnology Center's staff, including scientists at the IIB in Stepnogorsk. Ramankulov told POLOFF that if scientists wish to be promoted inside of his organization, they must publish in English. With this goal in mind, joint projects such as the U.S.-funded programs in Stepnogorsk, are leading the way. Slava Kenzhebayev, project manager for the dairy-cattle silage project, plans to present his work at the next "International Silage Conference," to be held in the United States, and to publish his first paper in English. HOAGLAND