BAKU: Prime Minister Of Kazakhstan: Azerbaijan And Kazakhstan Have A

PRIME MINISTER OF KAZAKHSTAN: AZERBAIJAN AND KAZAKHSTAN HAVE ALWAYS BEEN FRIENDLY POWERS

Trend News Agency, Azerbaijan
April 3 2007

Azerbaijan, Baku / corr. Trend E.Huseynov / Trend Exclusive Interview
with Prime Minister of Kazakhstan, Karim Masimov

– How do you asses present bilateral relations between Azerbaijan and
Kazakhstan? What are the prospects of Azerbaijani-Kazakh cooperation?

Azerbaijan and Kazakhstan have always been friendly powers. After
regaining independence, a constructive political dialogue was
established between Kazakhstan and Azerbaijan. The basis for
bilateral cooperation between the two countries was built up by
agreements reached during official visits of the former President
of Azerbaijan, Heydar Aliyev, to Kazakhstan in 1997-1998, a visit of
the present President of Azerbaijan, Ilham Aliyev, to Astana in March
2004 and a State visit of the President of Kazakhstan, N.Nazarbayev,
to Azerbaijan in May 2005.

Bilateral cooperation is actively developing in the economic sphere as
well. The Kazakh-Azerbaijani Inter-Governmental Commission for Economic
Cooperation was established in October 1999. Thus, at present 36 small
and medium sized enterprises tended by Azerbaijani business people
have been registered in Kazakhstan and of them, 13 are joint ventures.

The priority in direction of cooperation is the participation of the
two countries in the project of the international transport corridor
Europe-Caucasus-Asia (TRACECA). The interaction is successfully
developing under the working project group, Organization of Cooperation
of Railways (OCR), Transport and crossing of the borders within UN
Special Program for Economy of Central Asia and CIS Inter-Governmental
Council of Railway People.

A grain terminal and a mill complex are being built in Baku to reduce
the price of Kazakh grain and increase the volume of its delivery
to the market of Azerbaijan. The key direction of Azerbaijani-Kazakh
cooperation in the oil and gas field is the transportation of Kazakh
oil to the world market via the trans-Caspian route.

Undoubtedly inter-parliamentary relations are expanding as well. An
Azerbaijani delegation chaired by the head of the Azerbaijani-Kazakh
Parliamentary Cooperation Group, F.Garibov, arrived in Astana
in December 2006 at the invitation of the Kazakh side. During
the visit, the sides exchanged views and experience regarding
legislative activities, as well as discussing the strengthening of
inter-parliamentary relations. In addition, progress is observed
in cultural and humanitarian cooperation, in particular in the area
of cinematography and the mutual participation in various creative
competitions and festivals.

– What key issues will be discussed during the visit?

– My visit to Azerbaijan has been scheduled for 3-4 April. Diplomats
of the two countries are working on a list of issues to be discussed.

However, answering your question I can say that we will discuss
the issues of expanding and strengthening bilateral commercial and
economic relations with regards to cargo transportation, agriculture,
tourism as well as inter-religious cooperation, etc.

Azerbaijan and Kazakhstan signed an inter-governmental agreement on
Joint Oil Transportation via the Baku-Tbilisi-Ceyhan Pipeline. What
does Kazakhstan expect from future development of cooperation with
regards to exportation of its own oil to world markets via the
territory of Azerbaijan?

– As you may remember, on 16 June 2006 the Presidents of Kazakhstan,
N.A.Nazarbayev and Azerbaijan, I.Aliyev, signed an agreement
between Kazakhstan and Azerbaijan on assistance and support of oil
transportation from Kazakhstan to world markets via the Caspian Sea
and territory of Azerbaijan through the Baku-Tbilisi-Ceyhan Pipeline.

The key goal of the project is to create conditions for transporting
the growing volumes of Kazakh oil to the Mediterranean Sea via the
East-West energy corridor.

Principally a new transportation system is capable to ensure the
transportation of the light Kashagan oil. The Trans-Caspian transport
system will ensure the transportation of 5 mln tons of oil at the
initial stage, and in the future an increase of up to 38 mln tons of
oil per year.

It is supposed that Azerbaijan and Kazakhstan will create new
oil transportation infrastructures under the realization of the
Trans-Caspian system on the coast of the Caspian Sea. Presently the
Kazakh side is implementing works to agree the technological aspects
of the project.

In my opinion, generally the realization of the project plays a key
role in developing a unified energy corridor East-West.

– How do you assess the present level of the economic cooperation
between Azerbaijan and Kazakhstan? What priority of direction of the
oil sector can you highlight from the point of view of cooperation
of the two countries?

– As I said, the economic cooperation between Kazakhstan and Azerbaijan
is actively developing. Thus, according to statistics, the amount of
trade turnover in 2005 totaled $150.4 mln, this figure equaled $297
mln in 2006, with $226 mln for export and $71 mln for import. In
addition, a tendency of growth is being observed both in export and
in import. The amount of trade turnover from January to March 2007
already equaled $41mln. Kazakhstan exports oil and hydrocarbons,
natural chemical compounds, grain, barley, tobacco products and
electrical equipments to Azerbaijan.

Azerbaijan exports oil products, ethylene polymers, accessories
for machines and mechanisms, pumps and elevators and prefabricated
elements to Kazakhstan.

The volume of Kazakh export to Azerbaijan has increased by 175%.

Moreover, significant changes of the commodity structures are observed
due to the strengthening of commercial relations between the two
countries. Thus, in 2006 the share of export of water transport means
(vessels, boats and floating installations) increased by 33% compared
with previous years.

In addition, the export of fuel, oil and oil products, machines and
equipments has decreased compared to 2005. Moreover, a significant
increase is observed over products from ferrous metal and land and
water transport means.

All figures that I mention testify to the positive dynamics in the
development of economic cooperation of Kazakhstan and Azerbaijan.

Moreover, we can surely speak of the significant potential for future
productive economic cooperation between Azerbaijan and Kazakhstan.

– What is the position of Kazakhstan on Nagorno-Karabakh conflict
settlement? Does Kazakhstan support the settlement of the conflict
on the base of the territorial integrity of Azerbaijan?

– Kazakhstan supports and offers support to a peaceful settlement of
regional and international conflicts, including Nagorno-Karabakh. We
share the anxiety of the international community on this issue and
condemn any kind of interference in internal affairs of the states,
which brings escalation of tension and imposing threats for the
territorial integrity, independence, security and stability of the
sovereign states. As Head of the Government of Kazakhstan, I hope
that the complicated situation will be settled peacefully.