VZCZCXRO2677
OO RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHLN RUEHNEH RUEHPW RUEHSK
RUEHVK RUEHYG
DE RUEHTA #2099/01 3341026
ZNR UUUUU ZZH
O 301026Z NOV 09
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6926
INFO RUCNCIS/CIS COLLECTIVE 2198
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHDC
RHEFAAA/DIA WASHDC
RHEHNSC/NSC WASHDC 1757
RUEHAST/AMCONSUL ALMATY 2036

UNCLAS SECTION 01 OF 05 ASTANA 002099 
 
SIPDIS 
 
STATE FOR SCA/CEN, S/P, R/PPR, EEB 
 
E.O. 12958: N/A 
TAGS: PREL ECON EINV EAID KZ
SUBJECT:  KAZAKHSTAN:  PRESIDENTIAL ENTREPRENEURSHIP SUMMIT 
 
REF:  STATE 112495 
 
ASTANA 00002099  001.2 OF 005 
 
 
¶1.  (U) SUMMARY:  This cable responds to reftel request for nominees 
from Kazakhstan for the Presidential Entrepreneurship Summit in 
¶2010.  It also summarizes Mission plans to conduct a series of 
public diplomacy events and business roundtables to highlight the 
importance of fostering entrepreneurship and creating jobs in 
Kazakhstan.  END SUMMARY. 
 
¶2.  (U) The U.S. Mission to Kazakhstan is pleased to respond to the 
Department's request to prepare for the Presidential 
Entrepreneurship Summit.  We believe that this event will 
demonstrate that the United States is a full partner in advancing 
economic opportunity in Kazakhstan and will provide public support 
and a lasting social network to the business and community leaders 
who attend. 
 
INTERAGENCY ENTREPRENEURSHIP WORKING GROUP ESTABLISHED 
 
¶3.  (U) Together with USAID Mission Director for Central Asia Andy 
Sisson, Ambassador Hoagland has established and will oversee an 
interagency working group on expanding economic opportunity.  The 
working group currently includes representatives from USAID, the 
U.S. Commercial Service, and the Political-Economic and Public 
Affairs sections of the Embassy. 
We are committed to the advancement of local entrepreneurship and 
economic opportunity, in particular through a unique partnership 
with USAID and the government of Kazakhstan, which co-finances the 
Program for Economic Development (PED). 
 
WORKING WITH LOCAL PARTNERS AND KEY STAKEHOLDERS 
 
¶4.  (U) The PED program funds several activities in support of 
entrepreneurship, including projects to promote policy dialogue, 
strengthen the commercial law framework, streamline administrative 
processes, and promote operational improvements for the benefit of 
small and medium enterprises (SMEs) in Kazakhstan. 
 
¶5.  (U) The Mission will conduct a roundtable in December to engage 
key stakeholders in entrepreneurship and economic opportunity, and 
will submit a plan of relevant activities separately.  Together with 
local partners such as the American Chamber of Commerce (AmCham), 
Eurasia Foundation, Forum of Entrepreneurs, and the New University, 
we will also conduct a series of events in 2010 to promote the goals 
of the Summit. 
 
PUBLIC DIPLOMACY ACTION PLAN 
 
¶6.  (U) The U.S. Embassy's public diplomacy plan for the 
Presidential Entrepreneurship Summit will consist of three major 
components: 
 
-- Entrepreneurship Roundtable:  The Embassy plans to organize a 
roundtable to discuss entrepreneurship in the lead up to the Summit. 
 This will be an opportunity to introduce the Summit to critical 
Kazakhstani audiences.  The Embassy will issue a press release 
quoting President Obama's Cairo speech and linking this initiative 
directly to that of the President.  We will also organize media 
coverage of the roundtable and look for an opportunity for a 
one-on-one interview with a business weekly in which the Ambassador 
can explain the goals of the Summit. 
 
-- The Public Private Enterprise Partnership Initiative (PPEPI): 
The Ambassador and Deputy Prime Minister co-chair this initiative, 
which engages business leaders from the United States and Kazakhstan 
to identify policy reforms that will improve the investment climate 
in Kazakhstan.  As the Summit approaches, the Embassy will encourage 
executives of the project's Secretariat, AmCham, to speak with the 
Kazakhstani press to describe the importance and anticipated impact 
of the Summit.  Through PPEPI, the Embassy will also contact 
Kazakhstani business leaders who can speak to the press about the 
Summit.  Not only will this outreach be good for PPEPI, but it will 
give an authentic, local voice to the Presidential Summit. 
 
-- Returning Summiters:  After the summit ends, the Embassy will 
plan an event to welcome Summit participants home and give them the 
opportunity to discuss their experiences.  This event could take the 
form of a roundtable discussion or a press conference panel, and it 
will be co-sponsored by the U.S. Embassy and PPEPI.  Press will be 
invited to cover the event and conduct side interviews with 
returning participants. 
 
THE NOMINEES FROM KAZAKHSTAN 
 
 
ASTANA 00002099  002.2 OF 005 
 
 
¶7.  (U) We are pleased to recommend the following outstanding 
Kazakhstani entrepreneurs for participation in the 2010 Presidential 
Entrepreneurship Summit.  In addition to being successful 
entrepreneurs, they are also community leaders dedicated to the 
long-term development of Kazakhstan.  Please note that Mission 
Kazakhstan has nominated 12 candidates, listed in priority order, to 
participate in the Summit, because it was exceedingly difficult to 
select only 10 entrepreneurs from Kazakhstan's deep talent pool. 
All nominees speak fluent English, except as noted. 
 
¶A.  Nurlan Smagulov, 43, Almaty.  President of Astana Group, 2008 
Ernst & Young Entrepreneur Of The Year.  Mr. Smagulov is the founder 
of Astana Group holding company, which comprises automotive sales, 
grain production and trading, and real estate development.  In the 
early 1990s, he founded a car dealership that sells international 
automotive brands.  Today, the company is a national leader with 
dealerships throughout the country.  In the mid-1990s, Mr. Smagulov 
launched a new business and developed a vertically-integrated 
structure for grain production, processing, and trading on domestic 
and international markets.  The company is now a leader in flour and 
pasta production in Kazakhstan, and one of the largest grain 
exporters in the country.  Mr. Smagulov then invested in real estate 
development.  The first Mega shopping mall began operations in 2006 
in Almaty.  Since then, the brand has expanded to other cities in 
Kazakhstan and provides an international standard shopping 
experience for domestic consumers.  Mr. Smagulov has said, 
"Kazakhstan is a young country which is steadily developing toward a 
market economy.  The Entrepreneur Of The Year Award is recognition 
not only of our company's strategy and our past achievements, but 
also our daily determination during times of uncertainty.  And this 
award is a strong motivation to work further and contribute to the 
community." 
 
¶B.  Raimbek Batalov, 39, Almaty.  Founder and Chairman of Raimbek 
Group, a diversified food products company founded in 1992.  In 
2002, Mr. Batalov was elected Chairman of the Board of the Forum of 
Entrepreneurs, a position he continues to hold today.  As a 
successful businessman and Chairman of the Forum, he strives to 
create a favorable investment climate in which small and 
medium-sized enterprises in Kazakhstan can operate profitably, 
deliver quality consumer products, create jobs, and diversify the 
economy.  Mr. Batalov has been a member of the Presidential Council 
of Entrepreneurs since 2006.  In 2005, he was appointed Chairman of 
Kazakhstan's delegation to the Business Council of the Shanghai 
Cooperation Organization, a multilateral organization promoting 
security, economic, and cultural cooperation between China, Russia, 
Kazakhstan, Tajikistan, Kyrgyzstan, and Uzbekistan. 
 
¶C.  Yerzhan Mandiyev, 37, Ust-Kamenogorsk, East Kazakhstan. 
President of Asia Auto since November 2003, shortly after the 
company was established in December 2002.  Mr. Mandiyev joined the 
automotive industry after working in Kazakhstan's banking sector. 
He began with an ambitious plan to establish a domestic automobile 
industry capable of producing competitive vehicles locally, to meet 
consumer demand in Kazakhstan and neighboring countries.  At first, 
Asia Auto only assembled cars, but under Mr. Mandiyev's leadership, 
the company began producing ornamental rings and harnesses, and 
opened branch offices throughout Kazakhstan.  Mr. Mandiyev also 
rapidly expanded the range of cars assembled by Asia Auto, starting 
with the Niva in 2003, the Skoda Octavia in 2005, and a range of 
Chevrolet products in 2007.  Today, Asia Avto assembles the 
Chevrolet Lacetti, Epica, and Captiva automobiles, and has produced 
sample units of the Cadillac Escalade, Cadillac CTS, and Hummer H2 
and H3 vehicles.  Mr. Mandiyev plans to build a new plant with a 
design capacity of 120,000 cars a year, which will provide jobs to 
4,000 residents in East Kazakhstan Oblast.  The development of 
Kazakhstan's domestic automobile industry under Mr. Mandiyev's 
supervision has had a multiplier effect, as it promotes adjacent 
industrial sectors that manufacture auto components, spare parts, 
tires, auto glass, and electronics.  Mr. Mandiyev is an active 
promoter of entrepreneurial values and represents the interests of 
domestic entrepreneurs as a member of the management board of the 
Atameken Union of Entrepreneurs and the Presidential Council of 
Entrepreneurs. 
 
¶D.  Alexander Deriglazov, 40, Ust-Kamenogorsk, East Kazakhstan. 
Founder and CEO of Meloman, Kazakhstan's leading distributor of 
movies, music, and other copyrighted material.  With an unwavering 
commitment to the protection of intellectual property rights (IPR), 
Mr. Deriglazov has become one of Kazakhstan's most prominent 
advocates for strengthening IPR protection.  He maintains a strong 
working relationship with the Ministry of Justice's IPR Committee 
and has made significant contributions to developing IPR legislation 
in Kazakhstan.  In July 2009, his efforts paid off when the 
 
ASTANA 00002099  003.2 OF 005 
 
 
Copyright Law of the Republic of Kazakhstan was amended to allow for 
the protection of phonographic media rights, which secured regional 
distribution rights for licensed audio and video media.  This has 
greatly improved the ability of both law enforcement and licensed 
media distribution outlets such as Meloman to pursue and prosecute 
businesses and individuals selling pirated media.  With U.S products 
comprising a significant portion of his retail business, Alexander 
has been a reliable Embassy contact for several years, always taking 
the time to provide valuable input to IPR reporting.  In January and 
February 2008, Alexander participated in the International Visitors 
Leadership Development program on Protection of Intellectual 
Property Rights.   A native of Zyyanovsk, East Kazakhstan, Alexander 
graduated from Ust Kamenogorsk Technical University in 1992. 
 
¶E.  Andrei Chagai, 38, Almaty.  Co-owner and managing partner in a 
Kazakhstani-U.S. joint venture that operates coffee shops in Almaty 
under the Coffeedelia brand.  Mr. Chagai was on a SABIT internship 
from June-December 1998 with Statco International in Seattle, 
focusing on general business training, operational excellence, and 
Good Manufacturing Practices.  After several years of hard work and 
detailed negotiations, he and Statco established a joint venture 
(Marco Polo) in 2005, and opened a network of coffee shops.  When he 
returned to Kazakhstan in 2005, Mr. Chagai established a joint 
venture with Statco to open a network of coffee shops.  Their first 
enterprise employed 30 Kazakhstanis and introduced a new business 
culture and management standards for Kazakhstan.  Today, Coffeedelia 
is one of the most stylish and successful coffee shops of 
Kazakhstan.  In February 2008, the company opened its second coffee 
shop, and hired an additional 35 people.  Mr. Chagai and his 
partners are now considering expanding their business by registering 
Coffeedelia as a franchise. 
 
¶F.  Nurlan Kapparov, 39, Almaty.  Chairman of the Board of Directors 
of the Lancaster Group.  In 1990, Mr. Kapparov founded Accept 
Corporation, where he was President from 1991-97.  He served as 
President and CEO of Kazakh national companies KazTransOil from 
1997-98 and KazakhOil from 1998-99.  Mr. Kapparov was appointed 
Deputy Minister at the Ministry of Energy and Mineral Resources in 
1999, where he worked until 2001 and was responsible for monitoring 
the oil and gas sector. In 2000-01, he served as Chairman of the 
North Caspian Operating Committee (Kashagan) and also led the team 
negotiating delimitation of the Caspian Sea between Russia and 
Kazakhstan.  In 2003, Mr. Kapparov became Chairman of the Lancaster 
Group and served as Independent Director of PetroKazakhstan from 
2003-05.  Currently, Mr. Kapparov is Chairman of the Board of 
Trustees of the Jambyl Foundation.  He is also co-founder of the 
Harvard Club of Central Asia (HCCA) and was its first President, and 
is co-founder of the Republican Physics and Mathematics School 
Alumni Fund.  Mr. Kapparov is a member of the Belfer Center for 
Science and International Affairs at the Kennedy School of 
Government at Harvard University.  He was born in 1970 in Almaty, 
and is a graduate of Almaty Technological Institute and the Kennedy 
School of Government. 
 
¶G.  Janat Berdalina, Almaty.  President, KPMG Kazakhstan and Central 
Asia.  Ms. Berdalina manages one of the most successful 
international tax and audit firms in Kazakhstan.  Since 1993, when 
she started her own consulting firm, Ms. Berdalina has been an 
active and influential advisor to international businesses and 
government officials in Kazakhstan.  She was just the seventh 
auditor to receive a license to practice in Kazakhstan, and was 
instrumental in developing the new Tax Code and Law on Auditing.  As 
an official with the Ministry of Finance, she helped to draft the 
regulations leading to the adoption and implementation of 
International Standards on Auditing.  From 1998 to 2002, Ms. 
Berdalina served as co-chair of the tax working group under the 
Foreign Investors' Council, the most exclusive business association 
in Kazakhstan, headed by President Nazarbayev.  Ms. Berdalina has a 
degree in international business from Bristol University (UK) and an 
MBA from the Ecole Nationale de Ponts Chaussees, (France). 
 
¶H.  Marina Kim, 51, Almaty.   Since graduating from Almaty Medical 
University in 1982 with a degree in pharmacology, Ms. Kim has been a 
pioneering leader of Kazakhstan's pharmaceutical sector.  In 1988, 
she was named assistant director of the Semipalatinsk pharmaceutical 
production association Pharmacia.  Ten years later, in 1998, she 
helped to found Romat, one of Kazakhstan's first private 
pharmaceutical companies.  Today, Romat is a vertically integrated 
pharmaceutical holding company with business lines in research and 
development, drug production and product distribution.  Romat owns 
and operates three modern manufacturing facilities, 18 branches 
throughout Kazakhstan, and more than 30 drug stores around the 
country.  Under Ms. Kim's leadership, Romat has established business 
relationships with more than 90 of the world's most successful 
 
ASTANA 00002099  004.2 OF 005 
 
 
pharmaceutical companies, including Pfizer (USA), Eli Lilly 
(Switzerland), Glaxo Smith Kline (Great Britain), and Nestle 
(Switzerland).  Romat's researchers recently patented a new 
anti-tuberculosis medicine and Ms. Kim has ambitious plans to 
license and market the drug globally.  For eight consecutive years, 
Romat has been nominated for an award as Kazakhstan's best 
pharmaceutical company, and in 2009, the company was honored as the 
best distributor of pharmaceutical products in Kazakhstan.  Romat 
employs more than 1400 people, 70% of whom are women.  In addition, 
women hold 80% of the company's management positions. 
 
¶I.  Aigul Solovyeva, 57, Atyrau.  Member of the Mazhilis (Lower 
Chamber of Parliament) since 2007, and Chair of the Civic Alliance 
Movement since 2006.  She has been honored with several public 
service awards, and serves on the Anticorruption Council.  Ms. 
Solovyeva began her career as a sole proprietor in the dairy 
processing industry, and is an alumnus of the Special American 
Business Internship Training (SABIT) program (1999, Standards in 
Food Processing and Packaging).  She began her public life as head 
of the Union of Business Women of Kazakhstan in 2002.  Since then, 
she has become a well-known activist for greater accountability, 
transparency and openness in Kazakhstan's business environment.  Ms. 
Solovyeva is a member of the government's Expert Council for Small 
and Medium Enterprise Development and is on the Presidential Council 
of Entrepreneurs.  Ms. Solovyeva speaks Kazakh and Russian, and will 
require English interpretation during the Summit. 
 
¶J.  Meruert Kazbekova, 48, Kokshetau.  President of the Union of 
Business Women of Kazakhstan.  Widely considered one of the most 
influential women in Kazakhstan, Ms. Kazbekova leads a 
well-developed network of business women's organizations throughout 
Kazakhstan and is a tireless supporter of increased training on 
women's leadership issues.  As a SABIT alumnus (2001, NGO 
development), Ms. Kazbekova applied the knowledge and networks she 
gained to set up a regional non-government organization, the Union 
of Business Women.  Through this network, she was able to teach 200 
business women from remote regions in Kazakhstan on the basics of 
starting and running a successful business.  She also conceived and 
received U.S. Embassy funding for a project to establish a new 
school for women's leadership.  As a result of this project, several 
recent graduates have started their own businesses in the southern 
regions of Kazakhstan, where women have historically been dependent 
on their husbands.  Ms. Kazbekova is an adjunct professor at the 
Academy of State Service, where she delivers lectures on support to 
small businesses.  Ms. Kazbekova speaks Kazakh and Russian, and will 
require English interpretation during the Summit. 
 
¶K.  Yergali Begimbetov, 37, Almaty.  Chairman of the Management 
Board of the private insurance company London-Almaty since July 
¶2003.  Previously, he completed an internship at U.S. insurance 
companies Nationwide and Grange Insurance, as well as insurance 
training conducted by Arthur Andersen and Ernst &Young.  After Mr. 
Begimbetov's arrival, London-Almaty placed new emphasis on service 
quality and began to grow rapidly.  In 2004, the company opened 18 
branch offices throughout Kazakhstan and became a leader in the 
domestic insurance market. In 2006, the company received the ISO 
9001 quality certificate and introduced a new management system 
based on the philosophy of Edwards Deming. In 2007, the company's 
website was recognized as one of Kazakhstan's best corporate sites 
by National Business magazine.  Mr. Begimbetov is a member of the 
Association of Financiers of Kazakhstan, the non-governmental 
organization Underwriters Club, based in Khabarovsk, Russia, and a 
member of the UN Global Compact.  London-Almaty sponsored the 2009 
Eurasia International Film Festival, and has helped local disabled 
children receive medical treatment abroad. 
 
¶L.  Serzhan Zhumashov, 43, Almaty.  Founding Chairman of the 
Supervisory Board of Capital Partners.  After graduating from the 
Almaty Institute of Economy, Mr. Zhumashov worked in the Auditing 
Department of the Ministry of Finance.  In June 1996, together with 
U.S. investment fund New Century Holding, he founded Capital Real 
Estate, now a market leader in the sale and rental of office space 
in Kazakhstan.  Mr. Zhumashov also established a network of modern 
movie theaters in Kazakhstan, established the successful World Class 
fitness clubs, and, with Russian partners, launched a popular chain 
of restaurants in Kazakhstan, including the American Bar and Grill, 
Patio Pizza, and Planet Sushi.  As founder of Capital Partners, Mr. 
Zhumashov has led a number of world class real estate projects, such 
as the Renaissance (Marriott) hotels in Aktau and Atyrau, the Ritz 
Carlton and five-star Marriott hotels in Almaty, and various 
industrial projects in Moscow.  Mr. Zhumashov has generously 
contributed to a number of social projects, such as the British 
Haileybury school in Almaty, which he founded.  Mr. Zhumashov is an 
avid defender of the entrepreneurial spirit, as he demonstrated in 
 
ASTANA 00002099  005.2 OF 005 
 
 
May, when he signed a letter to President Nazarbayev, expressing 
support for the former President of KazAtomProm, Mukhtar Zhakishev, 
who was arrested on corruption charges in April. 
 
¶8.  (U) The Embassy's primary contact for the Presidential 
Entrepreneurship Summit is Kevin Covert, Deputy Pol/Econ Chief, who 
may be reached at covertkt@state.gov, or 7 7172 70 24 97. 
 
SPRATLEN