KAZAKHSTAN: GALA CELEBRATION MARKS 50 YEARS FOR

UNCLAS SECTION 01 OF 02 ASTANA 000132 SENSITIVE SIPDIS STATE FOR SCA/CEN E.O. 12958: N/A TAGS: PGOV PREL PINR ECON EINV SOCI RS KZ SUBJECT: KAZAKHSTAN: GALA CELEBRATION MARKS 50 YEARS FOR CHAMBER OF COMMERCE AND INDUSTRY REF: 09 ASTANA 2157 ASTANA 00000132 001.3 OF 002 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: On January 27, the Chamber of Commerce and Industry -- a state-sponsored business association that supports the development of small- and medium-sized enterprises -- held a lavish, gala celebration to mark its 50th anniversary. The presidents of the Russian, Belarusian, and German Chambers of Commerce were among more than 200 people in attendance and delivered letters of congratulation and pledges of support. END SUMMARY. ¶3. (SBU) The Chamber of Commerce and Industry of the Republic of Kazakhstan (the Chamber) celebrated its 50th anniversary on January 27 with an impressive -- if somewhat self-congratulatory -- show that included a star-studded cultural program, formal speeches and official letters, an employee awards ceremony, and a lavish, four-course meal and open bar. More than 200 business leaders, diplomats, and government officials attended the affair, including the ambassadors of Russia, Germany, The Netherlands, India, Georgia, Ukraine, and the UAE, but the majority of the audience appeared to come from regional branches of the national organization. No high-profile business leaders or senior government officials were in attendance. ¶4. (SBU) The Chamber was established in 1959 by a decree of the Council of Ministers of the Kazakh Soviet Socialist Republic, and has been in operation ever since. In 2005, it was officially registered as a non-governmental organization, and claims to represent the interests of more than 40,000 small- and medium-sized enterprises (SMEs) in Kazakhstan. The Chamber has offices in each of Kazakhstan's 16 oblasts and its network of regional organizations represents the largest single business community in Kazakhstan. More than 1500 organizations claim membership in the Chamber, which provides market data, trade mission support, quality assurance, and legal advice to its members. It maintains partnerships with 72 foreign counterparts, particularly the Russian and Belarusian Chambers of Commerce. It also established 10 regional courts of arbitration for the resolution of business disputes. According to the president of the Chamber, Yerlan Kozhasbay, "one of our highest priorities is to present the interests of local businesses to foreign partners and investors. It is important that they trust our businesses and understand Kazakhstani entrepreneurship." ¶5. (SBU) Kozhasbay clearly enjoyed being on center stage during the gala celebration, playing host with grace and charm. A young, savvy, well-connected businessman with an MBA from Moscow State University, Kozhasbay worked at national railway company Kazakhstan Temir Zholy from 1997 until 2002 when he was implicated in embezzlement charges filed against former Minister of Transportation and Communications Ablay Murzakhmetov. Although he was identified by the General Procurator's Office as a "person of interest," charges against Kozhasbay were never filed. The Chamber's Vice President, Serikzhan Mambetalin, appears to be in his late 30s, speaks fluent English, and completed an MBA at the Kazakhstan Institute of Management, Economics, and Strategic Research(KIMEP) in Almaty. He himself provided the English translation during Kozhasbay's speech to the assembled dignitaries. ¶6. (SBU) The evening had a very strong Soviet style and structure, from cherubic children in formal attire singing in a choir, to pledges of fraternal fidelity from the Russian and Belarusian Chambers of Commerce, to the glitzy ASTANA 00000132 002.3 OF 002 appearance of Roza Rymbayeva, a middle-age megastar from the 1970s, who sang ABBA's "The Winner Takes It All" to resounding applause. Other performances throughout the evening, interspersed with speeches and awards, included a pas de deux from Swan Lake, a violin virtuoso, a dozen boys on the dombra, and sexy girls in short skirts playing sax and singing. That last act got the crowd on the dance floor. The emcees for the evening -- well-known television anchors of a popular entertainment program -- spoke both Russian and Kazakh, and kept the show moving at a brisk pace. ¶7. (SBU) A representatives from the Chamber read letters of congratulations from President Nursultan Nazarbayev, Senate President Kasymzhomart Tokayev, and Prime Minister Karim Masimov, while the presidents of the Russian, Belarusian, and German Chambers of Commerce read their letters aloud, barely audible above the buzz of casual conversation. ¶8. (SBU) COMMENT: The Chamber of Commerce and Industry has an impressive network, both in Kazakhstan and with its immediate neighbors, and Kozhasbay certainly knows how to throw a party. Nevertheless, the overwhelming impression of this parastatal "private sector" association is that it has yet to fully shake its Soviet legacy. END COMMENT. SPRATLEN