VZCZCXRO1911
PP RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #1485/01 1140714
ZNR UUUUU ZZH
P 240714Z APR 06
FM AMEMBASSY ALMATY
TO RUEHC/SECSTATE WASHDC PRIORITY 5057
INFO RUCNCIS/CIS COLLECTIVE
RUEHBUL/AMEMBASSY KABUL 0183
RUEHNE/AMEMBASSY NEW DELHI 0320
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 ALMATY 001485 
 
SIPDIS 
 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR SCA/CEN (J. MUDGE) 
 
E.O. 12958: N/A 
TAGS: ECON EAIR EIND EINV PREL KZ
SUBJECT: KAZAKHSTAN: AMBASSADOR MEETS WITH MINISTER OF 
TRANSPORT MAMIN 
 
Ref: Almaty 1068 (Bodman-Nazarbayev), B) Almaty 557 
 
¶1. (SBU) Summary: Air Astana is considering buying several 
Boeing aircraft for its fleet, according to Transport 
Minister Mamin.  He will travel to Seattle in June for 
discussions with Boeing, as well as to Toulouse to discuss 
the Airbus offer.  Mamin confirmed that Kazakhstan also 
wants to host a Boeing maintenance facility and a GE 
airplane engine repair facility.  Mamin told the Ambassador 
that the GOK's agreement with FedEx would likely be signed 
during an expected Nazarbayev visit to Washington in the 
fall.  He expressed willingness to examine the commercial 
feasibility of an Air Astana flight from Almaty to Kabul, 
and informed the Ambassador that the GOK's shares in 
national railway Kazakhstan Temir Zholiy would soon be 
transferred to the new Samruk holding company.  End summary. 
 
--------------------- 
Possible Boeing Order 
--------------------- 
 
¶2. (SBU) In an April 18 meeting with the Ambassador to 
discuss pending bilateral issues in advance of the Vice 
President's upcoming visit to Astana, Minister of Transport 
and Communications Askar Mamin confirmed that Air Astana is 
still considering purchasing several Boeings.  They were 
waiting for proposals from both Boeing and Airbus.  (Note: 
Air Astana reports that the RFP deadline has been extended 
to May 5 at Boeing's request. End note.)  Mamin said he 
would travel to Seattle in early June for discussions with 
Boeing.  He also plans to visit Airbus in Toulouse.  The 
Ambassador expressed hope that the Boeing bid would 
ultimately win out on cost and financing.  He offered to 
help Mamin make contact with EXIM during his trip to the 
U.S. in order to discuss financing for the planes.  Mamin 
said that Kazakhstan also wants to host a Boeing maintenance 
facility (Ref A). 
 
--------------------------- 
Kazakhstan Seeking GE Plant 
--------------------------- 
 
¶3. (SBU) Mamin informed the Ambassador that the GOK was also 
aggressively courting GE in hopes that it will locate a 
planned airplane engine repair facility in Kazakhstan rather 
than Russia.  Mamin said he was personally directing the 
Kazakhstani effort, and asked for the USG's support.  The 
Ambassador noted that the investment climate for such a 
project might well be more favorable in Kazakhstan than in 
Russia.  Mamin emphasized that Kazakhstan was favorably 
positioned to host the GE facility, as it was centrally 
located in a vast region without a similar plant. 
 
--------------- 
FedEx Agreement 
--------------- 
 
¶4. (SBU) The Ambassador asked Mamin about prospects for 
signing the agreement that will allow FedEx to use its own 
planes rather than sending its shipments to Kazakhstan as 
cargo on other airlines.  Mamin said the GOK was ready, and 
asked about the possibility of signing during the Vice 
President's upcoming visit to Astana.  The Ambassador 
indicated that that was unlikely.  Mamin said the agreement 
would therefore likely be signed during President 
Nazarbayev's planned tripped to Washington in the fall. 
Cooperation would begin before the signing, the Minister 
stressed. 
 
-------------------- 
Regional Integration 
-------------------- 
 
¶5. (SBU) The Ambassador underscored the importance the USG 
attaches to increased Central Asian regional integration in 
the form of transport links, and asked Mamin if it might be 
feasible for Air Astana to add an Almaty-Kabul flight.  The 
U.S. realizes that such a flight would be feasible only if 
the commercial basis existed, the Ambassador added, noting 
that we planned to discuss the idea directly with Air Astana 
as well.  Mamin said the idea was interesting and deserved 
closer examination.  (Note:  In a April 19 meeting with 
post's Commercial Officer, Air Astana president Peter Foster 
expressed considerable skepticism regarding the commercial 
viability of an Almaty-Kabul route given extremely high 
 
ALMATY 00001485  002 OF 002 
 
 
insurance costs.  He noted that Air Astana is however in 
discussions to begin two to three flights per week to 
Dushanbe and Ashgabat from Almaty, and to Baku from Aktau or 
Atyrau.  End note.) 
 
----------------------- 
Kazakhstan Temir Zholiy 
----------------------- 
 
¶6. (SBU) Mamin confirmed that the state's shares in 
Kazakhstan Temir Zholiy, the national railway, would be 
transferred to the new holding firm Samruk (Ref B) in four 
to six weeks.  There are only a few legal questions to 
resolve, he said.  Mamin explained that his Ministry would 
remain responsible for setting Kazakhstan Temir Zholiy's 
policies and strategy.  Samruk will handle business 
management aspects.  Mamin said that Kazakhstan plans to 
open a second railway crossing into China in the near 
future.  The railway has also been purchasing additional 
freight and passenger cars from Russia and the PRC. 
 
¶7. (SBU) Mamin said that he was quite pleased that President 
Nazarbayev had just signed a national transportation 
strategy that had been under development for the past six 
months.  It includes expenditures of $30 billion over ten 
years for roads, ports, railways, etc.  Mamin expects the 
strategy to improve freight transport through Kazakhstan. 
He informed the Ambassador that there would be a conference 
in September on the Boston-China multi-modal trade route 
that passes through Kazakhstan. 
 
ORDWAY