EAEU Prime Ministers Discuss Digitisation, Adopt Agreements

A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ ISSUE NO. 544 / FRIDAY, FEBRUARY 9, 2018

EAEU Prime Ministers Discuss Digitisation, Adopt Agreements

Astana Forum Explores Social Entrepreneurship as Change Model

In Focus: Foreign Policy Priorities

Also In The News

Kazakh Prime Minister Bakytzhan Sagintayev at the recent Eurasian Intergovernmental Council meeting

EAEU Prime Ministers Discuss Digitisation, Adopt Agreements The Eurasian Economic Union’s (EAEU) prime ministers focused on the union’s digital agenda and mechanisms for implementing policies at the Feb. 2 meeting of the Eurasian Intergovernmental Council (EIC). Fourteen documents, including an agreement on labeling goods and a treaty on pensions, were adopted at the meeting. The prime ministers of Kazakhstan, Armenia, Belarus, the Kyrgyz Republic and Russia took part in the meeting, as did Chairman of the Eurasian Economic Commission (EEC) Tigran Sargsyan. Top on the EIC agenda was the macroeconomic situation in EAEU member states, and proposals focused on promoting sustainable growth and developing agriculture and intra-union trade. Opening the meeting, Prime Minister of Kazakhstan Bakytzhan Sagintayev outlined some results already achieved by the young union, including establishing its legal and contractual foundation. “Work on shaping the EAEU is in progress. Three years of work are bringing some positive results. We adopted a number of important documents on the union’s current and further development. The proof is the entry into force of the new EAEU Customs Code on Jan. 1. This created the necessary conditions for a quicker procedure of passing through customs,” he said. Sagintayev also noted the growth in Kazakhstan’s economy in 2017, which preliminary data pins at 4 percent, and the growth of its trade turnover both within the EAEU and with third countries. Participants discussed methods and prospects for digitisation across all economic sectors. Implementation of the EAEU’s 2016 to 2025 digital agenda is already underway, which Sagintayev pointed out will lead to social changes. “Due to economy digitisation, we are about to face a number of issues in employing the released labour,” he noted. But with freedom of labour within the union, “Our citizens should be able to quickly find new jobs, including on the territory of the union.” The presidents of Kazakhstan and Russia have discussed creating a single integrated Eurasian electronic labour market and developing unified qualification requirements for employees with exactly this eventuality in mind.

consolidate our national proposals,” Russian Prime Minister Dmitry Medvedev commented on the topic. Customs regulation is another area in need of development, Sagintayev pointed out. “We have a single customs territory, but no integration in customs declarations for export and temporary import of railway transport. In this regard, I consider it necessary to carry out joint work on amending the decisions of the [EEC], as well as the international transport legislation.” Integrating information systems and allowing for electronic customs marks on transport documents is a crucial next step, he said. Eliminating existing barriers to trade was a theme in remarks by the other participants. “It is important to keep the focus on eliminating the barriers that still exist on the common market, to provide the necessary prerequisites for doing business in the conditions of unified healthy competition rules and efficient use of logistics, transport and communication capabilities,” said Armenian Prime Minister Karen Karapetyan. The EIC members adopted 14 documents, among them the Agreement on the Labeling of Goods by Identification Means in the Eurasian Economic Union, aimed at increasing control over the circulation of goods within the EAEU; and a regulation on the development, financing and implementation of interstate programmes and industrial projects. Orders for implementing treaties on the provision of pensions for employees of EAEU member states and proposals for sustainable economic development, trade among EAEU member states and forecasts for agricultural development were also signed. Participants attended a forum the same day initiated by President of Kazakhstan Nursultan

“We need our own digital platforms and infrastructure; we must act jointly using common standards. I am talking about traceability, e-commerce development, the transition to common standards and IT-technologies in transport, industry and customs. We need to

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Astana hosts forum on social entrepreneurship as model for societal change

Astana Forum Explores Social Entrepreneurship as Change Model The British Council, in partnership with Chevron and Kazakhstan’s Atameken National Chamber of Entrepreneurs, held a forum in Astana to explore social entrepreneurship as a new model of sustainable social change Jan. 31. The forum, launched in 2013, draws business leaders, entrepreneurs and state representatives.

Social enterprise is relatively new in Kazakhstan, Eurasia Foundation of Central Asia project specialist Andrey Bachishe noted, pointing out that “studies demonstrate low awareness and absence of a universally accepted understanding of what social entrepreneurship is. People hesitate to invest in businesses that do not provide fast profits.”

The British Council envisions social enterprises as businesses that aim to improve people’s lives using their goods, services or profits. Such businesses have a prominent role in achieving the UN Sustainable Development Goals, British Council in Kazakhstan Director Jim Buttery told the forum. They can also contribute to Kazakhstan’s ambitious national development plans.

However, public procurement has been provided for nongovernmental organisations (NGO) in Kazakhstan since 2005, and grants issued since 2016. Financing has increased and now totals $3 million, and rewards are given to NGOs that solve social problems.

“Yesterday – creative enterprise, today – social enterprise,” Buttery said, noting the U.K.’s 25-year-old social enterprise sector. “We describe social enterprises as businesses that are set up to trade and to tackle social problems, improve communities and people’s life chances or their environments,” explained British Council global social enterprise advisor Juliet Cornford. “They make their money from the sale of goods and services in European markets, but they are reinvesting their profits back into the business and the local community as business profits and society profits. These businesses we now see in the U.K. are all along high streets and operating in almost every single industry sector you can think of.” Social purpose lies at the heart of these businesses. Many tackle disability issues, she noted. However, they remain businesses, also dedicated to self-financing and generating revenue.

The annual Asar (Together) forum promotes interaction among businesses, NGOs and the public sector. And since 2016, a list has been released of social entrepreneurs in Kazakhstan, to raise awareness of their work in the public and private sectors. Highlighted on the list have been Green Tal, a company that trains and employs people from vulnerable social groups, and Adal Niet Astana, a social centre assisting the elderly.

“This is making a mainstream contribution to the economy and to the employability of people. Social enterprises are now operating in almost every single industry, from education and housing to transport and manufacturing.”

“Importantly, they’re generating the majority of their income through trade and revenue mainly from the sales of goods and services. It is not about grant dependency. Many enterprises in the U.K. still have some grants in activities in their turnover. In the U.K., we try and place a benchmark on a minimum of 50 percent. Many enterprises are 100 percent self-financing, but for those that are still evolving and developing we try and encourage them to reach 50 percent. There may be a mixture of income,” she noted. The U.K. social enterprises sector is still growing: according to recent results, there are now 70,000 social enterprises in the region, accounting for 5 percent of all businesses. They are no longer a “fringe activity,” Cornford noted. Social enterprises contribute $35 billion to the economy and employ more than 1 million people. “This is making a mainstream contribution to the economy and to the employability of people. Social enterprises are now operating in almost every single industry, from education and housing to transport and manufacturing,” she added.

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In Focus: Foreign Policy Priorities Strengthening UN & Int’l Security

The centre will be equipped with the most advanced technologies with an additional goal to train and prepare local specialists. Currently, the location options and financial model for the centre are being discussed.

Kazakhstan hails outcomes of its UNSC presidency Kazakhstan completed Jan. 31 its presidency of the United Nations Security Council. Over the month, it steered the work of one of the main UN bodies, guided by President Nursultan Nazarbayev’s policy address to the UN Security Council called Kazakhstan’s Concept Vision on Sustaining Global Partnership for Secure, Just and Prosperous World, as well as its pragmatic national interests. The Kazakh presidency held approximately 30 consultations and debates, including a high-level briefing called Non-Proliferation of Weapons of Mass Destruction: Confidence-Building Measures chaired by President Nazarbayev. The meeting resulted in the adoption of a statement by the President of the UN Security Council calling for a comprehensive conflict prevention strategy. The ministerial debates of the UN Security Council on Jan. 19 focused on building a regional partnership in Afghanistan and Central Asia as a model to link security and development. The meeting was attended by the foreign ministers of Kazakhstan, Kuwait, Russia, Poland, Kyrgyzstan, Tajikistan and Uzbekistan, deputy foreign ministers of Great Britain, the Netherlands, the United States, Equatorial Guinea and Afghanistan, as well as delegations from UNSC member states and the European Union. UN Secretary-General António Guterres delivered a keynote address. An important event of Kazakhstan’s presidency was the Jan. 12-15 visit of the UN Security Council delegation to Kabul. It was the first such visit since 2010. On Jan. 18, Kazakhstan held a high-level event at UN headquarters to launch the draft Code of Conduct for the Achievement of a Terrorism-Free World. The goal of the document is to achieve a terrorism-free world by 2045 and create an international coalition of partner countries. The Kazakh presidency held other consultations, including on the situation in the Middle East and Cyprus, the Democratic Republic of the Congo, Colombia, Darfur (Sudan), West Africa and the Sahel, Libya, Mali, Somalia and Southern Sudan, on the efforts of the UN Regional Centre for Preventive Diplomacy for Central Asia, as well as arranged a trip by UN Security Council members to Washington to meet with the leadership of the United States.

Welcoming Investments

According to Shuzo Yamamoto, MEJ defines Almaty as the most convenient location and a starting platform for exporting the Japanese medical service standards and advancements to Central Asia. He explained that Japanese health policies pursue annual diagnosing procedures as a priority as they are more cost efficient. “We want to bring this concept to Almaty as well,” said Yamamoto. For that, MEJ is currently studying the statistical data on disease incidences among residents of Almaty city, the results of which will be used in the centre’s concept. Over the next three years, with the oversight of Kazakh Invest, a national company for investment support and promotion, several international medical centres will be built in Almaty city.

Culture & Identity Modernisation

Art industry representatives discuss state of theater industry in Kazakhstan The leadership of Astana Opera, the State Academic Uighur Theatre of Musical Comedy and the State Academic Russian Theatre held a joint press-conference in Astana to share the current state of the theatrical industry, its development and challenges. According to the theatre representatives, there are more than 52 state and dozens of private theatres across Kazakhstan. While some of the state art institutions are managed directly by the Ministry of Culture and Sports, the rest are overseen by local executive governments. Years of independence have positively impacted the industry as in the last 25 years more than 20 of these institutions have opened. To exchange their repertoires and promote theatrical art, they participate in local and international festivals. Alongside the festivals, organisers traditionally hold performance discussions, seminars and master classes while artists and production teams meet with the public. The creative director of Uighur Theatre Murat Akhmadiyev stated that through these years their theatre became a cultural oasis of Uighur people while contributing to the nation’s diverse palette of cultural legacy. The representatives said that the theatres promote civic consciousness, ideas of humanism and a love for mankind, as well as help raise kids rooted in the values of kindness and love.

Japanese Investors to open a Kazakh-Japanese Center for Diagnostics and Preventive Aid Mayor of Almaty city Bauyrzhan Baibek met with President of Medical Excellence of Japan (MEJ) Shuzo Yamamoto M.D. to discuss a joint project on the construction of a Japanese medical diagnostic centre, a first of its kind in Central Asia, which, among other things, will focus on early cancer detection practices. The idea goes back to the 2017 Kazakh-Japan business forum in Tokyo called “Regions of Kazakhstan: the future of Japanese investments.”

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President Nazarbayev speaks to Russian and Kyrgyz Presidents, appoints new ambassador to Kyrgyzstan Kazakh President Nursultan Nazarbayev and Russian President Vladimir Putin discussed the outcome of the Syrian National Dialogue Congress held Jan. 29-30 in Sochi, Russia, with Nazarbayev commending Russia’s contributions to settling the Syrian crisis. The heads of state also touched on Kazakh-Russian cooperation within Eurasian economic integration following the Eurasian Economic Union (EEU) Prime Ministers’ meeting and forum on digital globalisation, both held Feb. 2 in Almaty. Nazarbayev spoke with Kyrgyz President Sooronbay Jeenbekov Feb. 7 regarding the regional and international agenda, as well as the EEU and upcoming meetings. Nazarbayev signed a decree the same day appointing Karim Kokrekbayev as new Kazakh Ambassador to Kyrgyzstan. New to foreign service, Kokrekbayev has extensive experience in regional development and management of natural resources, as he previously served as vice minister for natural resources and environmental protection and has worked in multiple levels of local government in Zhambyl region. Before assuming his latest post, he served as Governor of Zhambyl oblast. Kazakhstan ratifies road transport treaty with Azerbaijan President Nursultan Nazarbayev signed the law Feb. 7 “On ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Azerbaijan on international road transport,” reported the Akorda. The treaty establishes the legal norms for road transport between the countries and regulates the types of trucks and procedure establishing quotas for permit form exchange. The ratification is expected to enhance road transport between Kazakhstan and Azerbaijan and increase trade and economic cooperation. In 2016, the volume of cargo transportation by road was 620,000 tonnes, mainly equipment, plant and animal products, primary metals • and finished food products. To date, Kazakhstan has signed road transportation agreements with 41 nations. Kazakhstan and EU mark 25th anniversary of diplomatic relations “On Feb. 2, 2018 we celebrate the 25th anniversary of diplomatic relations between the Republic of Kazakhstan and the European Union (EU), an anchoring point for our close and mutuallybeneficial cooperation,” reads the joint statement by Kazakhstan and the EU marking the anniversary. Kazakhstan and the EU have built solid relations, including the Dec. 21, 2015 signing of the Enhanced Partnership and Cooperation Agreement (EPCA). The agreement, which entered into provisional application May 1, 2016, marks a new phase of relations and expands legal cooperation in numerous areas benefitting Kazakh citizens. Kazakhstan is the first Central Asian country to ink such an agreement with the EU. EPCA is meant to be a driving force to intensify long-term relations between Kazakhstan and Europe. It provides a new level of quality for trade, economic and investment cooperation, as well as broaden political and human rights dialogue. The EU and Kazakhstan jointly support implementing the EU-Central Asia Strategy, with special emphasis on human capital development, education, environment • protection, rational use of water resources, efficient transport and logistics infrastructures in the region and combating challenges and threats. Kazakhstan and the EU are confident of the potential for further joint work based on shared values and to continue improving all forms of partnership and cooperation.

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Kazakhstan, Greece seek to strengthen bilateral cooperation and expand trade At the latest meeting of the Kazakh-Greek Intergovernmental Commission on Economic and Technological Cooperation, the Commission co-Chairs, Kazakh Deputy Foreign Minister Roman Vassilenko and Alternate Minister for Foreign Affairs of the Hellenic Republic Georgios Katrougkalos discussed political, trade and economic cooperation, including Kazakhstan’s role as a nonpermanent member of the United Nations Security Council, the Astana Process talks on Syria, prospects of cooperation between the EU and the Eurasian Economic Union and the facilitation of and EU visa regime for citizens of Kazakhstan. Alongside with the Commission meeting, some 100 entrepreneurs gathered for a Kazakh-Greek business forum to discuss ways to enhance business, educational, cultural and tourist exchanges between the two countries. Katrougkalos also met with the leadership of the Ministry of Agriculture, as well as Governor of the Astana International Financial Center Kairat Kelimbetov.

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Kazakhstan, China expand cooperation Agreements on 35 new joint projects worth $3 billion were signed during a business forum at the Khorgos International Centre of Boundary Cooperation, a platform of strategic partnership between Kazakhstan and China. The event, attended by hundreds of entrepreneurs from both countries, was dedicated to economic cooperation in trade, industry, science, education and tourism.

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The centre also reached a memorandum to build cooperation with the administration of nearby Zharkent, said Khorgos president Kakharman Jazin. The Khorgos administration is planning to open new facilities this year, such as a shopping centre, hotels and business centres that will attract Chinese tourists. A number of companies struck business deals during the forum, the first held in Khorgos, such as the 120 million yuan (US$19 million) investment agreement reached by a Chinese international company. The entrepreneurs also outlined future plans and opportunities to develop business tourism, trade and cultural and humanitarian relations. The Khorgos project, fitting into the Belt and Road initiative, opens an outlet not only to China, but also to the Eurasian Economic Union and the Commonwealth of Independent States countries and South-East Asia, noted a Khorgos – Eastern Gate Special Economic Zone manager. The Khorgos International Centre for Transfrontier Cooperation recently received free economic zone status, exempting entrepreneurs from basic taxation and paying only social taxes. International experts address IT hub opportunities in Astana Participants in the “Digital agenda in the era of globalization” forum held in Almaty shared their views on the new IT hub to be opened this summer in Astana. The hub’s role should be to connect communities and help clients in delivering scientific and educational support, although investments and specific events are needed to gather everyone under one roof, said Chris Havley of TechStar. Venture investors suggested not only Astana, but other regions, must be the focus, noting projects based in Almaty have already proven their feasibility. As digitisation in Kazakhstan is now supported by the government and needs to succeed against both regional and global competition, participants expect the hub’s financial support will be generous. Rather than the cost to lease buildings, start-ups are attracted to the range of services including customs, intellectual properties and equipment and urban facilities such as schools and housing, said Igor Drozdov, board chair of Skolkovo Foundation, a Russian analogue in Silicon Valley. Participants noted in conjunction with creating the foundation for digitisation, Kazakh entrepreneurs may want to consider enhancing knowledge exchange on infrastructure and IT development between young professionals and prepare local specialists. Serbian pianist to play with Astana Opera The Astana Opera symphonic orchestra with Kazakh conductor Abzal Mukhitdinov and Serbian pianist Maya Raikovich will present the concert “From the Balkans to the Great Steppe” in Astana. Raikovich is the laureate of many music contests, such as the Carlo Soliva (Italy) International Piano Competition, Rachmaninoff Competition for Young Pianists and Jeunesses Musicales International. She received a silver medal from the University of Arts in Belgrade and the Artist of the Year prize for her musical achievements. Together with Astana Opera musicians, Raikovich has successfully performed the works of legendary Kazakh composers Yevgeny Brusilovsky, Mansur Sagatov and Akhmet Zhubanov. In her first performance in Kazakhstan, Raikovich will present Serbian music to the Kazakh audience. She will perform Orchestra No 2 by Vera Milankovic, an emotional work written in 1995 at the end of the civil war in the former Yugoslavia. The audience will also enjoy “Legend of the Steppe,” the symphonic suite by Tiles Kazhgaliyev. The concert will be dedicated in part to Serbian Statehood Day, celebrated annually on Feb. 15.


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