Diplomatic relations between the Republic of Kazakhstan and the United Kingdom of Great Britain and Northern Ireland were established on January 9, 1992.
The Embassy of Kazakhstan in London opened in February 1996. His Excellency Mr Kairat Abusseitov is the Ambassador of the Republic of Kazakhstan in the UK since June 2002.
British Embassy functions in Almaty since October 1992, Mr Paul Brummell is the Ambassador of UK in the Republic of Kazakhstan since December 2005.
Principal visits chronicle
In October 1991 the visit of the President of the Republic of Kazakhstan Mr Nursultan Nazarbayev to the UK took place. Top-level visits made in January 1992, March 1994, June 1997 promoted further development of bilateral political and economical collaboration between the two countries.
On November 7-8, 1996 the Heir of the British Throne Prince Charles had paid the official visit to Kazakhstan. Other members of Royal family that also visited Kazakhstan are Princess Ann (1993) and the Duke of Gloucester (2000).
In April 1999 during NATO anniversary celebrations a meeting between President of Kazakhstan Nursultan Nazarbayev and British Prime Minister Tony Blair took place.
On November 15-17, 2000 a scheduled official visit of the President of Kazakhstan to the UK was made, in the course of which President Nazarbayev had meetings with the Queen Elizabeth II, Prime Minister Tony Blair, Secretary of State for Defence Geoff Hoon, representatives of British business circles. President Nazarbayev was conferred upon with one of the highest British honours – The Grande Cross of the Order of Saint Michel and Saint George. During the visit the documents on collaboration in military sphere, Memorandum of understanding between the Government of Kazakhstan and BAE Systems, and Memorandum between the Ministry of Education and Science of Kazakhstan and the British Council on establishment of Kazakh- British University were signed.
November 2002 – the President of Kazakhstan and the British Prime Minister had a meeting within a framework of NATO Summit, held in Prague, where they discussed the prospects of deepening the bilateral cooperation. The President of Kazakhstan had invited the British Prime Minister to make an official visit to Kazakhstan, that invitation was accepted and the agreement was reached to work out the timing of this visit.
On July 3, 2003 a telephone conversation between the President of Kazakhstan and the Prime Minister of the United Kingdom took place, where issues of regional security were discussed. British Prime-Minister welcomed the efforts of the leader of Kazakhstan aimed in this direction.
On September 1-3, 2003 the visit of the British Prime Minister’s Special Envoy Lord Levy to Kazakhstan took place, during the visit Lord Levy had meetings with the President of Kazakhstan, the Minister of Foreign Affairs and the Chairman of National Bank. In the course of the visit various issues of further extension and development of bilateral relations between Kazakhstan and the UK were discussed.
On September 24-28, 2003 a visit of Prince Andrew, The Duke of York, being the Special Representative of the DTI on Trade and Innovation, took place. In the course of the visit Prince Andrew had a meeting with the President of Kazakhstan and took part in the inauguration of the British-Kazakh Society in Astana as well as the opening of the British Trade Delegations Office in Atyrau.
On February 5, 2004 the first official visit of Mr Jack Straw, Secretary of State for Foreign and Commonwealth Affairs, to Kazakhstan took place. The main purpose of the visit was the top-level discussions on present condition and prospects of bilateral collaboration as well as the opening of the British Embassy Representative Office in Astana. Mr Jack Straw was received by the President of Kazakhstan Nursultan Nazarbayev, carried out the negotiations with Minister of Foreign Affairs of Kazakhstan Kassymzhomart Tokaev, took part in inauguration of British Embassy Representative office in Astana.
On June 28-29, 2004 during the two-day meeting of Heads of NATO States and Governments, held in Istanbul, the President of Kazakhstan and the British Prime Minister had a series of discussions, in course of which the issues of bilateral relations, forum agenda, situation in Iraq, Afghanistan and several other international issues were discussed.
Trade and Investment
UK is the 2nd largest investor into Kazakhstan’s economy after the USA: for the period from 1993 till the 2003 the volume of British investments comprised USD 3.65 billion, that comes to 13.8% from overall amount of FDI in Kazakhstan for the mentioned period and for the first six months of 2004 it came to USD 361.1 million. At the same time the principal share of British investment is directed to the oil and mining sectors of Kazakhstan’s economy. That is why the main aim for today is diversification of British investments into the non-oil sectors of Kazakhstan’s economy (development of new technological production processes, creation of scientific and technological parks, promotion of small and medium size business, agricultural processing production, etc.).
UK is also the leading trade partner of Kazakhstan amongst EU countries, although raw materials and extracting industries production (non-ferrous and ferrous metals rolling, steel and iron, non-organic chemicals, etc.) prevail in Kazakhstani export nomenclature, while at the same time in structure of import from UK predominate products of processing industry containing capital and science-intensive components (equipment and mechanical machinery, steel constructions, production electro techniques, IT products, organic synthesis and chemical products, etc.)
For 9 months of 2004 export from Kazakhstan to UK had reduced by 22.9% and came to Ј32.02 mln. (the figure for the same period in 2003 is Ј41.54 million). At the same time the import from UK increased by 40.3% and came to Ј100.83 mln. (for the same period of 2003 – Ј71.86 mln.). The growth of disproportion proves a substantial increase of British business interest in Kazakhstan’s economy and import product structure translates into the tendency for development and extension of industrial production (mainly it is exported industrial equipment). The development of hydrocarbons involves both experience and new technological equipment, thus increasing import, which is reflected in substantial growth of this parameter.
Export nomenclature includes rolls of ferrous and non-ferrous metals, non-organic chemicals, mineral products, ferrochrome, steel, cupper, wool, leather raw materials, and fertilizers, precious and semiprecious metals.
Import structure: equipment and machinery, steel constructions, production electro-technical equipment, IT products, organic synthesis and chemical products, transport facilities, optical devises, alcohol and tobacco products, textile, food industry products.
128 companies with British investors’ participation are registered in Kazakhstan, 57 of them are joint ventures and 71 are representative offices of British companies. .
General directions of commercial-economic collaboration between Kazakhstan and UK are energy, mining industry, building, trade and social infrastructure, healthcare, transport and communication, consulting services in finance, privatization, exploration and mining operations.
Cooperation of Kazakhstan with British companies “British Gas” and “Shell” in oil and gas industry is one of the good examples of effective development.
From the beginning of its activity the volume of investments of Karachaganak Petroleum Operating B.V. (former Karachaganak Integrated Organization) under the Karachaganak field development project, (share of «British Gas» – 32.5%) exceeded USD 4 bln. by the end of 2004. The field has produced 9 bln. m3 of gas, 7 mln. tons of gas-condensate in year 2004. In May 2004 there was began a supply of Karachaganak production into CPC. With realization of new objects and having got the access to the international markets it is planned to increase the production of oil up to 10 mln. tons a year and production of gas up to 10-13 mln. m 3 a year.
On November 18, 1997 the North Caspian Project Production Sharing Agreement was concluded between Government of the Republic of Kazakhstan and Contracting Companies Consortium (OKIOC) on development of first 11 offshore blocs situated on Kazakhstani shelf of Caspian Sea. Following companies participate in consortium at present moment: Agip Eni (Italy), British Gas (UK) ExxonMobil (USA), Shell Kazakhstan Development B.V. (Netherlands), Total (France), ConocoPhilips (USA), Inpex (Japan). As a result of selection of single operator in 2001 Agip KCO became the Operator of Northern Caspian Project. Extractable reserves of Kashagan assessed as 7-9 bln. barrels and general geological reserves - 38 mln. barrels.
With a view to promote Kazakhstan economical interests and attraction of investments into oil and gas and other industries of Kazakhstan economy in London it is held annual international investment conference “Oil and Gas Kazakhstan” (in 2004 was held at the 4th time).
Restoration of world steel prices in metallurgy industry became a stimulus for increasing of production on “Ispat-Karmet”. Since 1995 “Ispat” invested into enterprise more than USD 400 mln. and remains the biggest private employer, where employed more than 50 thousands Kazakhstan’s citizens.
Actively develops cooperation in sphere of transportation. Since 2001 “British Mediterranean Airways” flies to Kazakhstan by route London-Ekaterinburg-Almaty (three flights a week).
BBeginning from December 13, 2003 joint Kazakhstan-British Company “Air Astana” performs non-stop flights on the route Almaty-London-Almaty (on Tuesdays and Saturdays).
In 2001 in the construction sector Fitspatrik British Company completed the construction of the hospital in Astana, which is the most modern medical complex in the whole Central Asia region.
Cooperation in the credit and financial sphere is developing actively. In 1992 the first banknotes of the Kazakh currency – Tenge were printed in the UK.
Nine sittings of the Kazakh-Britain Trade and Industrial Council were held. The Co-Chairman from Kazakh side is the Deputy Prime-Minister – Minister of Industry and Trade Mr Sauat Mynbaev, from the British side the Co-Chairman is the Vice-President of British Gas Mr Charles Bland.
Thus, on May 4-7, 2004 the 9th sitting of KBTIC was held, where key issues were discussed between the respective governments and private structures regarding cooperation in realization of the Strategy of Industrial-Innovation Development of Kazakhstan until 2015 and Small-Scale Business Support in Kazakhstan as well as discussion of realization of the agreements reached during the 8th sitting of KBTIC. At the present time the possibility of organization of the regular 10th sitting of KBTIC in October-November 2005 in Astana is being reviewed.
During the last two years cooperation in the non-mineral spheres is developing. Since March 24 to 28, 2003, upon invitation of the British Government the Minister of Industry and Trade of Kazakhstan Mr M.Yesenbaev visited the UK, in the course of which the issues of bilateral cooperation in non-mineral sectors of Kazakhstan’s economy were discussed. The British Government offered to work out the programme on deepening the economic relations, where the main focus would be concentrated on cooperation in the sphere of the small and medium scale businesses and establishment of the partner relation between private sectors of the two countries.
The bilateral cooperation has also developed in the sphere of customs supervision. During the period since February 18 to 22, 2003 a visit of Chairman of the Customs Supervision Agency of Kazakhstan B.Saparabaev was held to UK, in the course of which the delegation of Kazakhstan got acquainted with approaches used by the Customs Service of UK in the struggle against contraband by the tactical and operational methods. An agreement was reached on preparation of the draft agreement on informational cooperation, experience exchange, personnel training.
On March 11-14, 2003 in London, upon invitation of the UK Government there was a government delegation of Kazakhstan headed by Minister of Environment Protection A.Samakova. In the course of the visit a number of meetings were held at the official level with the heads of key departments of the Ministries of environment protection and agriculture, industry and commerce, foreign affairs, nongovernmental organizations and private companies. That visit was connected with the perspectives of ratification of Kyoto Protocol by the Government of Kazakhstan as well as examination of the experience and approaches of UK and European Union to the problem of global climate fluctuation and other issues connected with the environment protection.
On May 11-15, 2004 a visit of the official delegation of law enforcement bodies of Kazakhstan headed by Minister of Justice of Kazakhstan O. Zhumabekov was held in UK upon invitation of the Britain Government. In the course of the visit the delegation of Kazakhstan visited the Home Office, UK prison system institutions, a number of meetings were held with the official persons and representatives of the judicial-legal system of UK.
Inter-parliamentary Relations
In 2001 the All-Party Group on Kazakhstan was registered in the UK Parliament presided over by member of the House of Commons, eminent Labourite John Mann.
Since 2002 to 2005 the Kazakh-Britain Inter-parliamentary Group has carried out its 5 sessions.
On March 20-27, 2004 the parliamentary delegation of Kazakhstan has officially visited the United Kingdom for the 2 time. The delegation of Kazakhstan was headed by Chairman of the Majilis Committee on Foreign Affairs, Defence and Security Mr Sh. Omarov consisted of Senator M. Utebaev and Majilis Deputy S. Alibaev. During the debate on Kazakh-British cooperation which was held in the British Parliament significant achievements of Kazakhstan were noted in promotion of economic and democratic reforms and the necessity of strengthening the relations between the UK and Kazakhstan as a strategic partner was emphasized.
On 30 September to 5 October, 2004 a delegation of the British MPs visited Kazakhstan. The delegation headed by J.Mann comprised Lord Waverly, R.Spink and L.Gilroy. During the fifth session of the Kazakh-British Inter-parliamentary Group further priorities of the bilateral cooperation were determined including those in the sphere of trade, development of civil society, struggle against drug trafficking, science and technology, education and pensions system. Kazakh and British MPs have discussed the text of the Protocol on Inter-parliamentary Cooperation and determined the dates of delegations exchange visits for the next year.
Thus, the parliamentary delegation of Kazakhstan will pay its third visit to the UK in May, 2005 including Plymouth, while the British MPswill travel to Kazakhstan in October, 2005 including its Eastern region.
Cultural and Humanitarian Cooperation
In Kazakhstan the British Council (BC) is operating actively. It is an independent organization, which has started its activity in Kazakhstan in 1993. At the same time, the BC acts as the cultural department of the British Embassy in Kazakhstan.
The principal activity of the Council is concentrated in the sphere of development of the English language in Kazakhstan as well as in the sphere of culture, art, education. The BC carries out language courses for the state organizations and private companies. Training of Kazakh youth in UK is also coordinated by the BC.
In August 2001 a Decree of the Government of Kazakhstan on establishment of Kazakh-British Technical University (KBTU) was issued. In October 2002 an official opening of KBTU was held. The university objective is to prepare the highly skilled staff for the industrial complexes of the country with implementation of the advanced foreign technologies and experts as well as the best local specialists. In January 2005 an agreement on establishment of the bachelor programme of London School of Economics based on Kazakh-Britain Technical University (KBTU) was signed.
In 2003 the British-Kazakh Society (BKS) Co-Chaired by Lord Peter Fraser (conservative, former General Attorney of Scotland and Minister of State for Energy) and Mr Peter Levine has started its activity. A high-power pulse in the BKS was given by the consent of President of Kazakhstan Nursultan Nazarbayev and The Duke of York to become the Honorary Patrons of the BKS. At the present time the BKS carries out various activities aimed at realization of the bilateral cultural projects, provides assistance in distribution of information about Kazakhstan in UK, develops relations between the two countries in the sphere of business, culture, science, education, etc.
Regional Cooperation is also growing. A visit of Lord Provost (Mayor) of Aberdeen, to Atyrau, West-Kazakhstan and Manghistau Oblasts was held in October 2003 with the purpose to deepen the cooperation between oil regions of the two countries. In the course of the trip a Memorandum on Mutual Understanding was signed between the Town Council of Aberdeen and Akimats of three western oblasts of Kazakhstan.
On November 3-5, 2004 a visit of Akim of Atyrau Oblast A. Musin and Akim of Manghistau Oblast B. Palymbetov to Aberdeen (Scotland) was held, the purpose of the visit was development of the horizontal relations between the state and private structures of oil and gas regions of the two countries. The Akims participated in the business forum with participation of representatives of the official and business circles of Aberdeen, the made a presentation of economic and investment possibilities of their oblasts, told about potential spheres of cooperation of the British and Kazakh companies, including those in the related non-oil-and-gas branches within the Strategy of Industrial-Innovation Development.
A consular section of the Embassy was opened in Aberdeen, which allows a much easier visa access for British citizens living in the north of the country.
The cooperation between Kazakhstan and UK in respect to the brother-cities Shymkent- Stevenage and Kostanai – Kirklees is continued.
