Cable Viewer

The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05ALMATY4426.

Reference ID	Created	Released	Classification	Origin
05ALMATY4426	2005-12-16 11:40	2011-08-30 01:44	UNCLASSIFIED	US Office Almaty

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS  ALMATY 004426 
 
SIPDIS 
 
 
DEPT PASS TO EUR/CACEN MUDGE 
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 
 
E.O. 12958: N/A 
TAGS: ECON EIND ENRG EPET EFIN KZ ECONOMIC
SUBJECT:  KAZAKHSTAN ECONOMIC AND ENERGY UPDATE 
November 27 - December 10, 2005 
 
¶1.  Summary: This information is drawn primarily from the 
Kazakhstani local press, and has not been checked for 
accuracy.  The opinions and policies expressed in this 
report are those of the authors, not the U.S. Government. 
 
--   Republican Budget for 2006 Signed 
--   National Fund to be Modified 
--   Growth of Russian-Kazakhstani Bilateral Trade 
--   Sberbank to Buy Kazakhstan's Texakabank 
--   Lukoil Completes Acquisition of Nelson Resources 
--   Ukrtransnafta, KazMunayGaz Set up Joint-Venture 
--   Parliamentarians Make Accusations against KazMunayGaz 
--   Oil & Gas Statistics 
 
Republican Budget for 2006 Signed 
--------------------------------- 
 
¶2.  President Nazarbayev signed the law "On the Republican 
Budget for 2006".  The revenue part of the 2006 budget 
stands at KZT 1,491.8 billion (approximately $11.1 billion); 
the expenditures at KZT 1,605.6 billion (about $11.97 
billion); and the deficit at KZT 113.8 billion (about $850 
million), 1.4 % of GDP.  The GoK called this budget 
"socially oriented", since social expenditures comprised KZT 
611.6 billion (about $4.56 billion), or about 40% of total 
budget expenditures.  (Interfax - Kazakhstan, November 26) 
 
National Fund to be Modified 
---------------------------- 
 
¶3.  The GoK plans to implement a new model for the National 
Fund in 2006.  "In accordance with the President's 
instruction, the transfer to the new model for the National 
Fund is planned to occur on July 1, 2006, rather than 
January 1, 2007.  It will require some budgetary changes. 
Moreover, additional transfers to the budget might be 
anticipated," the Minister of Economy and Budget Planning 
Kairat Kelimbetov said in Astana on December 6.  (Interfax - 
Kazakhstan, December 7) 
 
Growth of Russian-Kazakhstani Bilateral Trade 
--------------------------------------------- 
 
¶4.  On November 25, Russian Prime Minister Fradkov announced 
that 2005 goods turnover between Russia and Kazakhstan will 
be approximately $10 billion.  He emphasized the dynamic 
development of bilateral trade relations: in 2004 commodity 
turnover reached $8 billion, up 50% compared to 2003, and $7 
billion in September 2005, up 20% compared to the same 
period 2004.  (SKRIN Agency, November 25) 
 
Sberbank to Buy Kazakhstan's Texakabank 
--------------------------------------- 
 
¶5.  The Financial Supervision Agency permitted Russian 
Sberbank to purchase 100% of Texakabank.  Texakabank is the 
15th biggest financial institution in Kazakhstan, with total 
equity capital of $18 million and $170 million in assets. 
Two shareholders privately own Texakabank; one of them holds 
a 90.3% stake.  According to Russian financial specialists, 
Sberbank's intention to enter the Kazakhstani market is not 
surprising and is explained by its need to service corporate 
client operations within the CIS.  This acquisition will 
strengthen the position of Sberbank in the domestic Russian 
market.  (RIA Novosty, December 7) 
 
Lukoil Completes Acquisition of Nelson Resources 
--------------------------------------------- --- 
 
¶6.  On December 6 Lukoil Overseas Holding Ltd. (Lukoil) 
announced that "all the requisite precedent procedures and 
conditions, including shareholder approval and Kazakhstan 
governmental approval, have been fulfilled, and the 
acquisition of Nelson Resources Limited (Nelson) has been 
completed."  Nelson merged with Caspian Investments 
Resources Ltd., Lukoil subsidiary.  Nelson's shareholders 
 
received $2.19162 per share.  Lukoil has assumed full 
management control over Nelson's projects: Kazakhoil-Aktobe, 
North Buzachi, KarakudukMunay, Arman, and options to acquire 
two exploration blocks in Kazakhstani sector of the Caspian 
Sea.  (Interfax - Kazakhstan, December 8) 
 
Ukrtransnafta, KazMunayGaz Set up Joint-Venture 
--------------------------------------------- -- 
 
¶7.  Ukraine's Antimonopoly Committee allowed Ukrtransnafta 
(Ukraine) and KMG Trading House, a subsidiary of 
Kazakhstan's national oil producer KazMunayGaz, to set up a 
joint venture TransMunay.  TransMunay will begin 
construction of a 52-kilometer pipeline to join the Yuzhny 
oil terminal in Odessa and the Transdnepr system of oil 
pipelines in early 2006.  The JV was established based on 
the mutual interest of Ukraine and Kazakhstan to increase 
oil transportation through the Odessa-Brody pipeline system. 
(Interfax - Kazakhstan, December 10) 
 
Parliamentarians Make Accusations against KazMunayGaz 
--------------------------------------------- -------- 
 
¶8.  On December 7 a group of Kazakhstani parliamentarians 
asked regulatory agencies to audit national oil and gas 
company KazMunayGaz (KMG).  Deputies voiced concerns about 
KMG's high administrative expenses ($227 million), including 
$84 million in management fees.  Additionally, deputies are 
surprised by the way KMG disposes of royalties paid by 
subsoil users in non-cash remuneration.  (Interfax - 
Kazakhstan, December 8) 
 
¶9.  In its December 10 response, KMG claimed the deputies 
used false information.  Specifically, $84 million was paid 
by KMG Exploration and Production, a KMG subsidiary, for 
management services from KMG.  Further, oil delivered by 
subsurface users as a royalty is managed not by KMG, but by 
the State.  According to KMG, the deputies' request damaged 
KMG's reputation and the company has a right to take legal 
action.  (Kazakhstan Today, December 10). 
 
Oil & Gas Statistics 
-------------------- 
 
¶10.  In January-November oil production in Kazakhstan was 
46.5 million tons, 0.7% higher compared to the same period 
in 2004, the National Statistics Agency reported.  During 
the same period, 9.8 million tons of gas condensate were 
produced, up 25.4% year-on-year.  The production of natural 
gas totaled 13.3 billion cubic meters, a 29% increase. 
(Interfax - Kazakhstan, December 13) 
 
ORDWAY 
 
 
NNNN

Articles

Browse latest releases

Browse by creation date

Browse by origin

Browse by tag

Browse by classification

Community resources

Viewing cable 05ALMATY4426, KAZAKHSTAN ECONOMIC AND ENERGY UPDATE