Economic Relations between Kazakhstan and Russia

Contents

INTRODUCTION 1

1. THE RUSSIAN-KAZAKHSTAN RATIOES AT THE PRESENT STAGE 5

1.1 Mutual Trade

1.2 Cooperating in oil gas and power

1.3 Cooperating in sphere of transport and communication

2. CONDITION OF FOREIGN TRADE BOTH DEV’T OF THE JOINT / ENTERPRISES

KAZAKHSAN AND RUSSIA

2.1 Some aspects of economic interaction Kazakhstan and Russia

2.2 The factors of economic interaction of Kazakhstan and Russia

2.3 Engaging the foreign investments

2.4 Cooperating in the field of electric power industry

2.5 Cooperating in the field of machine construction industry

2.6 Cooperating in the field of a uranium industry

3. involvement in international organizations,

kazakhstan and russia

3.1 The Eurasian Union: Realities and Perspectives

4. VITAL PROBLEMS OF THE PRESENT-DAY STATE OF 44

KAZAKHSTANI-RUSSIAN RELATIONS

CONCLUSION 61

LIST OF USED SOURSES 65

INTRODUCTION

The origins of Kazakhstani-Russian relations lie in hoary antiquity, when

Kazakhs and Russians lived on the vast Eurasian territory and, being

neighbors, developed good-neighborly relations in all the spheres of human

activity.

In analyzing the relations between Rus and the Great Steppe, one

cannot fail to mention the work of the greatest specialist in this field,

Lev N. Gumilyov. In his preface to Gumilyov's book, Ancient Rus and the

Great Steppe, Academician Dmitry S. Likhachev wrote this: Rightly taking

into account the links between subsistence economy and the level of

prosperity of ancient societies, and thus their military power, the author

also compares historical events and climactic fluctuations of the steppe

zone of Eurasia. In this way he arrived at a series of clarifications,

which enabled him to describe in detail the historical-geographic backdrop

against which various cultural influences came in conflict with the local

forms of the original culture of Eastern Europe.

It must be noted in any analysis of the emergence of the 15 new, post-

Soviet states on the map of Eurasia that certain specific features marked

the genesis of each of them. The present study focuses on the processes of

sovereignty of Kazakhstan, and the specificity of these processes lies in

that from the very beginning the republic's political leadership did not

initiate centrifugal tendencies, regarding reasonable integration an

imperative of the times and endeavoring to ease as much as possible the

destructive consequences at every stage in the disintegration of the Soviet

Union. Kazakhstan was the last former Soviet republic to declare its

independence - not out of any strong gravitation toward the past or

peripheral political development let us recall that Kazakhstan was one of

the first to experience, in December 1986, the repressive power of

totalitarianism then already withering away but because it understood that

artificial acceleration of this process is fraught with the danger of

serious upheavals. The history of numerous bloody ethnic, social, and even

interstate conflicts in the post-Soviet space bears striking evidence of

that.

The immediate subject matter of the present study is not just the

isolated process of the sovereignty of one of the post-Soviet countries but

the emergence and development against this background of new interstate

relations of two major republics of the Soviet Union, Kazakhstan and

Russia. In our view, it is relations between precisely these two countries

that can be seen as a model for the establishment of equal and mutually

advantageous between newly independent states. This view is borne out by a

sufficiently smooth and planned, though far from problem-free, development

of bilateral Kazakhstani-Russian relations, a meaningful historical

tradition of mutual relations, and an absence of sharp turns or wavering

due to subjective or external causes.

Another unifying factor is time—the many centuries of the history of

mutual relations between the peoples of the two countries that have been

neighbors in these great open spaces since the beginning of time. This far

from simple history, full of drama and heroism, these strata of time bound

together by the unremitting toil of numerous generations, unite the two

peoples.

The Soviet period in the relations between the two states let us recall

that, according to the 1977 Constitution of the USSR, the constituent

republics of the Soviet Union were declared to be "sovereign Soviet

socialist states" united in the Union of Soviet Socialist Republics and

having the right to enter into relations with foreign states, conclude

treaties and exchange diplomatic representatives, and - theoretically

-secede from the USSR was marked by the prevalence of the so-called

converted forms. The ubiquitous and all-round dominance of All-Union

structures made meaningless all talk of real interstate relations between

Kazakhstan and Russia. Both sides were in this case the objects of a

grandiose social experiment. Although positive achievements of tills period

cannot be discarded either.

The emergence and further development of relations of equal partnership

between new independent states, the Republic of Kazakhstan and the Russian

Federation, became a sort of synthesis of the entire centuries-old history

of Kazakh-Russian relations. Only now can the relations between the two

countries be justifiably described as subject-subject ones. At this stage,

both states solved such problems as defining their status in the system of

world politics, establishing relations with leading world nations, and

entering the field of international law.

The dominant role of Kazakhstani problems has determined the

chronological framework of the investigation.

The overall time frame covers the period from December 1991 the setting

up of the Commonwealth of Independent States, which finally marked the

disintegration of the USSR to the end of 1995.

In the four years, bilateral Kazakhstani - Russian relations went

through a series of significant stages the study of which can adequately

determine the level of mutual relations between the two countries, the

scope and range of integration. We single out three stages in the

development of Kazakhstani-Russian relations:

— Defining the legal interstate relations of the two countries December

1991 - May 1920

— Searching for a model of economic and political cooperation between

the states May 1992 - March 1994

— Expanding and deepening integration between Kazakhstan and Russia in the

economic and other spheres March 1994 - 1995.

Although some elements of legal contractual relations between

Kazakhstan and Russia may be discovered before December 1991, when attempts

to preserve the Soviet Union were made, it will be more chronologically

correct, in our view, to choose the moment at which the CIS was legally

formed and the activity of the Union structures of authority was

discontinued as the starting point of the study.

We propose that the signing in May 1992 of the treaty of friendship,

cooperation, and mutual assistance between the two countries be singled out

as the concluding moment of the first stage in the relations between

Kazakhstan and Russia and at the same time as the beginning of the new

stage. That document became the foundation for qualitatively new relations

in the history of the two states, opening the first page in the official

interstate relations in the new history of Kazakhstan and Russia. It

determined the principles of bilateral relations in the political,

economic, military-strategic, cultural, and spiritual spheres, lending a

colossal impulse to the entire subsequent negotiation process.

During the search for a model of interstate economic and political

cooperation between Kazakhstan and Russia, the principles were developed

for bilateral relations, which were later recorded in the treaty of

friendship, cooperation, and mutual assistance. The first official visit of

President Nazarbayev of Kazakhstan to the Russian Federation in March 1994

marked the beginning of the third stage in the development of Kazakhstani-

Russian relations - that of expanding and deepening integration between

Kazakhstan and Russia.

This division of the time frame of bilateral Kazakhstani-Russian

relations into periods shows that one of the goals of the present work is

to demonstrate continuous development between Kazakhstan and Russia in the

post-Soviet period.

As the period of political history analyzed here is extremely close to

the present, it cannot be regarded as worked out in detail in Russian and

foreign scientific literature. However, the problems of development of the

new statehood of post-Soviet countries of Kazakhstan in this case, of the

birth and evolution of interstate relations, of their entry into the

international community, are being studied ever more actively.

The crucial period of the disintegration of the USSR and the emergence

on the map of the world of new, independent states was primarily reflected

in scientific periodicals. Special mention should be made of the collective

work The New Treaty of Union: The Search for Solutions.

Problems of mutual relations between newly independent states have also

become the subjects of attention of Russian experts and political

scientists. The period of disintegration of the USSR and of the development

of Kazakhstan as a sovereign independent state are at present actively

studied by Kazakhstan scientists. Works have been written on the problem of

the emergence of the new statehood, development of the system of separation

of powers, democratization of society, evolution of party structures and

institutions of democracy, and the construction of a new legal and judicial

system. Present State and Works on the subject of bilateral Kazakhstani-

Russian relations from the moment the two states achieved independence can

be divided into several groups. The first and the most numerous one deal

with relations between Kazakhstan and Russia within the framework of the

Commonwealth of Independent States.

In recent years the development of market relations has considerably

boosted interest for economic and trade cooperation between the two

independent states. Mention must be made of a joint work by the staff of

the Russian Institute for Strategic Studies under the title Kazakhstan:

Realities and Perspectives of Independent Development, It should be noted,

though, that this work suffers from an obviously incomplete documentary and

factual basis and a certain superficiality in the analysis of the problem.

The study is based on such sources as legal acts and interstate

Kazakhstani-Russian treaties, agreements, declarations, joint protocols,

and other documents and materials, as well as decrees, decisions, and

resolutions of the organs of state power in Kazakhstan and Russia.

Extremely important sources for the study of the last five years in

the history of Kazakhstan and of Kazakhstani-Russian relations are the

works of President Nursultan Nazarbayev of Kazakhstan: Without the Right or

the Left, The Strategy of the Formation and Development of Kazakhstan as a

Sovereign State, The Strategy of Resource Saving and the Transition to the

Market, The Market and Socioeconomic Development, and especially his new

book, On the Doorstep of the 21st Century, as well as his speeches at

various forums.' Just as important as sources for the present study are the

books by President Yeltsin of Russia: Confessions on a Given Theme, Memoirs

of a President as well as his official speeches, and also the works of

other Russian politicians and public figures, which afford a deeper grasp

of the essence of events happening in the post-Soviet space in the 1990s.

The process of market reform in the republic and the tendencies and

prospects for further reform in the socioeconomic sphere are reflected in

several books by Kazakhstan's Prime Minister A.M.Kazhegeldin: The

Socioeconomic Problems of Development of the Republic of Kazakhstan in

Times of Reform, Kazakhstan in Times of Reform, Problems of State

Regulation Under the Conditions of Socioeconomic Transformation.

The formation of the republic's diplomatic service and problems of its

civilized entry in the world community are studied in the works of

K.K.Tokayev, Kazakhstan's foreign minister.

Intense legislative processes at all levels in the given period

necessitated close attention to the legal basis of the newly independent

states. As far as Kazakhstan is concerned, that legal basis includes above

all the Constitutions of 1993 and 1995, of which the content and the

sociopolitical background may be seen as the quintessence of the given

period in the country's history.

The main distinctive feature of the source base of the study is the

fact that most documents of the given period of political history have not

yet been moved to the archives; it was therefore necessary to turn on many

occasions to various central and departmental current archives. The

identification and systematization of many sources, their publication in a

collection of materials devoted to the development of Kazakhstani-Russian

relations was in themselves an important task.

It may thus be said that extensive sources have been used in the analysis

of the above-mentioned problems; their study made it possible to paint a

comprehensive picture of the development of Kazakhstani-Russian relations

against the background of the sovereignty of Kazakhstan in 1991-1995.

1.THE RUSSIAN-KAZAKHSTAN RATIOES AT THE PRESENT STAGE

In a context of events, which have taken place in region after

September 11, the role of Russia in Central Asia a little has varied, as

well as all has varied geopolitical formulated in region last years.

In these conditions of one of important external policies of tasks of

Kazakhstan is the adjusting of tactics and strategy in ratios with Russia,

which would correspond by modern geopolitical realities and long-term

interests of our country.

Central Asia and Caspian Sea, so-called recently Caspian – Central

Asia region, go into an region of traditional interests of Russia.

In this region it always had the important national interests, which,

however, in different periods were defined by different circumstances and

factors.

The key interests of Russia in this region at the present stage can be

reduced to the following.

Central Asia has the important value in of a safety of Russia.

The importance of this region for Russia is stipulated not oil by the

factor implying from desire to save influence on Caspian Sea;

Our region is of interest for Russia territorial, where its

compatriots live. Are those, on our sight three dominating interest of

Russian Federation, dominating, Caspian – Central Asia region at the

present stage. It in this region has also other interests trade, cosmotron

of “Baikonur”, industrial communications etc. but they now in basic carry

not so priority character.

Until recently Russia ensured above-mentioned interests without the

special efforts. All countries of region in the majority were that or are

otherwise dependent on Russian Federation.But the events, which have

occurred after September of the last year, have brought in serious enough

variations to a geopolitical situation in Central Asia and have affected on

common position of forces in region.

One of the occurred key variations consists that the break in sphere

of traditional vital interests of Russia is watched which today faces to

necessity Central Asia of policy.

As a whole by 2001 in Central Asia the private tripartite balance

between interests of Russia, China, USA was folded.

The given balance can figuratively be presented as a triangle, in

which upper corner Russia, in one lower corner - USA, in the friend - China

settled down. These countries have occupied three strategic niches in

Caspian – Central Asia region: military-political, oil and gas, commodity-

raw.

The Russian presence at region last years was ensured, first of all,

with strategic military-political component. A peaking of a problem

extremism and the terrorisms in Central Asia, activation Islamic of driving

of Uzbekistan, irreconcilable part of Integrated Tadjik opposition at

immediate support Talib have established in 1999 - 2001 real threat for the

countries of region.

In these conditions only Russia was considered by the states of region

as the real factor and safety. It is enough to recollect, that these years

the contacts through link DKNB, intensive two-sided ratios in military and

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МЕНЮ

Economic Relations between Kazakhstan and Russia

Economic Relations between Kazakhstan and Russia