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Economic Relations between Kazakhstan and Russia

military-engineering sphere were especially made active.

Thus, USA has occupied oil and gases a niche in our region, and Russia

and China by virtue of economic circumstances could not with it compete in

this direction.

In this geopolitical triangle Russia all the same occupied a little

bit dominating positions. This majoring in many respects was determined

strategic military-political component, which role in the international

ratios is traditionally high.

In a context of a common global situation Russia forced to be

reconciled with a determination of military basses of USA in region of its

traditional interests.

Taking into account all these circumstances, Russia faces to necessity

of the policy in Central Asia. The further prolongation above-mentioned of

the tendencies will have for it painful enough consequences.

Despite of some variation of a role of Russia in Central Asia, for

Kazakhstan the strategic interests in a ratio of Russia continue to be

saved.

The necessity of activation of ratios with Russia and holding of

constructive cooperating on much important for Kazakhstan to directions is

dictated as well by that in case of essential weakening of Russia in

Central Asia it will be fraught with negative consequences. The situation

in region can become unstable and badly forecast.

In the whole traditional interests of Kazakhstan in a ratio of Russia

are founded on four factors having long-time character and diminuendos by

such eternal categories, as geography and history.

First, the maintenance partner of ratios with Russia is necessary

valid intercontinental of an arrangement of Kazakhstan, for which the exit

on the world market is vital for an economic development. Russia in this

respect occupies the strategically important position; being by the state,

on which region pass vital for us strategy of transport and communication.

Secondly, Russia is one of the important subjects of the international

system, having significant political weight and rather large military-

engineering opportunities. The Russian factor in many respects determines

external policy a situation around of Kazakhstan, both on regional, and at

the international level.

Thirdly, Russia is the major economic partner Republic of Kazakhstan.

It not only imports different production and techniques to Kazakhstan, but

also is the market of selling of Kazakhstan production. About 70 % of

Kazakhstan industrial potential is involved on economy.

In - fourth, both states are combined with a historical generality,

spiritual and cultural links. In region of Russia the man is Kazakh

Diasporas including 740 thousand. In Kazakhstan Russian are second on

number ethnic group, making about 30 percents of the population of the

country.

In this context the Russian direction of exterior policy of Kazakhstan

remains to one of priority and strategic.

As a whole at the present stage in the Russian-Kazakhstan ratios the

following most priority and perspective directions of cooperating are

meant:

• Mutual trade.

• Interaction in oil and gas and power sphere.

• Cooperating in sphere of transport and communications.

• Cooperating in sphere of safety.

1.1 Mutual Trade.

The interests of both countries are answered with magnifying of mutual

trade. Russian Federation traditionally occupies the first place among the

basic trade partners of Kazakhstan both on export, and on import. Trade

turn over in 2001 from Russian Federation has made 4 639,3 million of US

dollars (Diagrama1,2).

It is necessary to mark, that last years the growth of a share of

Russian Federation in import and reduction in export is watched. The

specific gravity of Russia in total amount of the Kazakhstan export is

sequentially reduced (from 44,5 % in 1994 up to 20,2 % in 2001) and is

augmented in import (from 36,3 % per 1994 up to 45,4 % per 2001). Within

several last years of Kazakhstan has negative trade balance with Russian

Federation.

Basic trade partners, in import, 1994-2001 (%)

[pic]

|1994 |1996 |1997 |1998 |1999 |2000 |2001 |

|•Russian | 36,3 | 54,8 | 45,8 | 39,4 | 36,7 | 48,7 |45,4 |

|Federatio| | | | | | | |

|n | | | | | | | |

|• China | 2 | 0,8 |1,1 | 1,2 |2,2 | 3 | 2,8 |

|Poland | 0,7 | 1 |1 | 1,1 | 1,7 | 1,2 | 0,9 |

|•Uzbekist|7,8 | 2,1 |1,5 | 2,2 | 2,4 | 1,5 | 1,3 |

|an | | | | | | | |

|•Kyrgysta| 2,9 | 2,1 |1,5 | 1,2 | 0,7 | 0.6 |0,4 |

|n | | | | | | | |

|• | 0,5 |0,4 | 0,1 | 0,1 |0,1 | 0,1 | 0 |

|Tajikista| | | | | | | |

|n | | | | | | | |

The Diagrama1

Basic trade partners, in export, 1994-2001 (%)

[pic]

|1994 |1996 |1997 |1998 |1999 |2000 |2001 |

|•Russian | 44.5 | 42 | 35,2 | 29.6 | 19,8 | 19,5 | 20,2 |

|Federatio| | | | | | | |

|n | | | | | | | |

|• China | 4,6 | 7,8 | 6,8 | 7 | 8,5 | 7,3 | 7,1 |

|Poland | 1,7 | 0,4 | 0,4 | 0,8 | 1,4 | 0,8 | 1.5 |

|•Uzbekist| 4 | 3,4 | 2,3 | 2,2 | 1,2 | 1,5 | 1.4 |

|an | | | | | | | |

|•Kyrgysta| 1,9 | 1,9 | 1 | 1,2 | 1,1 | 0.6 | 1 |

|n | | | | | | | |

|• | 03 | 1 | 0.8 | 0.8 | 08 | 0.6 | 0,6 |

|Tajikista| | | | | | | |

|n | | | | | | | |

The Diagrama2

Considering structure of export and import on groups of the commodity

spectrum, it is possible to select the following characteristic features.

Export. Structure of export Republic of Kazakhstan in Russian

Federation for the last few years has varied the separate commodity groups

have occupied a leading position.

Now on four commodity groups (glow iris3) (fuel mineral, oil and

petroleum; products of inorganic chemistry; grain bread and ores) are

necessary about 80 % of the Kazakhstan export in Russia, whereas in 1994

on the pointed groups it was necessary 53,3 %. In 2001 as contrasted to

2000 the separate outbound delivering tended to lowering, so, for example,

the specific gravity of export of a grain was reduced from 12 % up to 6 %;

the export of products of inorganic chemistry was reduced from 14 % up to

13 %. Certainly, on lowering of export in Russia renders influence a

variance between the in-house prices and prices of outbound delivering.

At the same time it is necessary to mark, that the reduction of export

has taken place not on all basic groups of the commodity spectrum. The

specific gravity of export of ore has increased from 8 % up to 10 % and

export of fuel from 46 % up to 47 %.

Import of republic of Kazakhstan goes into first five of the countries

of the basic trade partners of Russia in import. The specific gravity of

import of Russia has increased in total amount of the Kazakhstan import

from 36,7 % per 1999 up to 45,4 % per 2001. There were insignificant

variations in groups of imported commodity production. So, the volumes of

import were reduced

[pic]

Diagram 3

[pic]

Diagram 4

Transport, accordingly, from 15 % in 2000 up to 11 % in 2001,

alongside with it the magnifying of import on such commodity groups is

marked: fuel mineral (from 17 % up to 21 %), chemical production (from 14 %

up to 16 %), black metals and work pieces from them (from 11 % up to 13 %)

(Diagrama4).

The analysis of export and import displays, that in structure of

import as against export there is no predominance of separate commodity

groups, it more diversification, at the same time grows a specific gravity

of articles of food, products of processing ready articles.

From 89 regions of Russian Federation 72 have trade - economic links

with Republic of Kazakhstan. Depending on volume trade turn over with

Kazakhstan these regions Russia can divide into a series of groups. The

active participants of the foreign trade activity with Kazakhstan are first

three groups of regions of Russia (table 1).

As a whole on 16 regions of Russian Federation from 72 it is necessary

80 % exterior trade turn over of Russia with Kazakhstan. The high activity

pointed 16 regions is stipulated by more developed structure of their

industrial manufacture with predominance of fuel-raw, petrochemical and

machine-building specializations.

Feature of transport -geographical interregional links of regions of

Russia with Kazakhstan is the directedness mutual goods traffic primarily

with Ural, Western and East Siberia, and also with Moscow and Moscow

region.

Basic groups of the trade partners of Kazakhstan in Russia

|Group |Annual |Regions |A share in |

| |commodity | |common |

| |circulation | |commodity |

| | | |circulation |

|I |From 200,0 up |Moscow, |0,465 |

| |to 500,0 mln |Chelyabinsk, | |

| |of dollars |Ekaterenburg, | |

| | |Orenburg and | |

| | |Tyumen region | |

|II |From 100,1 up |Omsk, Irkutsk,|0,22 |

| |to 200,0 mln |Kemerovo, | |

| |of dollars |Moscow region.| |

| | |Altay region | |

| | |and | |

| | |Novosibirsk | |

| | |region | |

|III |From 50,1 up |Kurgan region,|0,115 |

| |to 100 mln of |Republic of | |

| |dollars |Bashkortostan,| |

| | |Republic of | |

| | |Hakasya, | |

| | |Krasnoyarsk | |

| | |region and | |

| | |Samara region | |

|IV |From 20,1 up |Perm, Tomsk |0,095 |

| |to 50,0 mln of|region, | |

| |dollars |Republic of | |

| | |Tatarstan, | |

| | |Nizhniy- | |

| | |Novgorod, | |

| | |Belgorod, | |

| | |Volgograd, | |

| | |Saratov, | |

| | |Rostov, | |

| | |Vladimir, Tula| |

| | |region and. | |

| | |St.-Petersburg| |

|V |Up to 20 mln |Others 45 |0,105 |

| |dollars |regions of | |

| | |Russian | |

| | |Federation | |

The important place in the Russia -Kazakhstan links occupies frontier

cooperating, on which share it is necessary 71,5 % from common commodity

circulation. Most actively explicate trade -economic links with frontier

regions of Kazakhstan Omsk, Orenburg, Astrakhan, Chelyabinsk, Novosibirsk

region and Altay region. From regions of Russia the ready roll stock of

black metals, pipe steel, petroleum, electric motors, automobiles, forest

products, coal, footwear, fabrics and other goods is taken out. In export

of many frontier subjects of Federation significant volume is necessary on

production of a petrochemical industry (Volgograd, Omsk, Samara region,

Altay region - more than 70 %).

In the Russia -Kazakhstan frontier region more 300 share enterprises,

among which such large interstate join, as “Kazroshim”, “Koksohim”,

automobile complex on basis Ural - for and Kustanay diesel factory operate.

The essential propagation in trade with Kazakhstan was received with

barter operations (57 %). So, Orsk meat factory the combine sends in

Kazakhstan in basic production of the manufacture and receives in exchange

raw material for manufacture of this production - living cattle and meat.

The joint-stock company “Nosta” receives from Kazakhstan immovable coal and

delivers metals.

The significant experience of mutual economic cooperating with frontier

regions of Kazakhstan accumulated in the Orenburg region, and also Pavlodar

region of Kazakhstan with frontier regions of Russia. Now 18 % of the

Orenburg export and more than 40 % of import have on Kazakhstan.

By the largest foreign trade partner of Republic Bashkortostan, Altay and

Krasnoyarsk edges, Kemerovo, Irkutsk, Omsk, Orenburg, Sverdlovsk and

Chelyabinsk regions is the Pavlodar region.

As a whole before Kazakhstan in mutual trade with Russia there is a

series of perspective tasks, which decision will influence definitely a

common economic situation in the country.

One of the important tasks is the variation trade balance of Kazakhstan

from Russian Federation from negative in positive. Besides the gradual

variation of structure commodity circulation in favorable for Republic of

Kazakhstan a direction is desirable.

Radiating from interests of two states, it is expedient in the nearest

perspective to consider a complex of measures on hardening links of

frontier regions. The necessity of creation of legal fundamentals of a

development of frontier regions does not call doubts. On our sight, it is

necessary to speed up development of the defining laws. Among them Laws

About state support of a socio economic development of frontier territories

Republic of Kazakhstan, About free economic regions, About frontier trade.

It is necessary also to speed up ratification four sided of the Agreement

on basic principles of frontier cooperating of the states - the

participants of the Contract about a deepening of integration in economic

and humanitarian regions from March 29, 1996.

Obvious presence of potential and mutually advantageous opportunities

of Russia and Kazakhstan also is by way of use of the optimum shapes of

specialization, density of the industrial and financial capital, use of

effective financial instruments, architecture of optimum commodity,

financial and transport streams. In this connection special urgency in a

development Kazakhstan – Russia of links was got with problems of a

synchronization of legislative and normative basis of the countries. It

would be expedient to realize step-by-step transition to collection of the

VAT on destination in Kazakhstan – Russia to trade, having begun it(him)

from machines, equipment, vehicles.

Not less important the coordinated marketing strategy of Kazakhstan and

Russia in the international markets is represented, where the saving and

hardening of common positions is quite possible. The priority direction

represents perfecting the organizational shapes of activity Kazakhstan and

Russian suppliers in the world markets. Them can become cartel of the

agreement.

One of the important instruments of hardening of two-way communications

could become creation of conditions for expansion of contacts between the

enterprises, creation of the share enterprises. On official dates (2000) in

republic 220 share Russia -Kazakhstan enterprises and 88 enterprises with

the 100--percent Russian capital actively work. The majority JV in

republic, including Russia-Kazakhstan JV, has trade –intermediary

directedness. However as against other states Russia- Kazakhstan JV of an

industrial directedness envelop considerably wider spectrum of spheres of

activity - from production and processing of natural operational life up to

production of a high scale of processing that in a defined measure confirms

an overall performance Russia- Kazakhstan JV. At the same time Russia

–Kazakhstan JV for the present do not play that role, which they could play

in a development of trade -economic cooperating. Therefore in this

direction the active support is expedient on the part of state structures.

1.2 Cooperating in oil gas and power sphere.

The given direction of cooperating between two countries by us is one

of perspective. The structure of the Kazakhstan export of oil on the

countries in 2001 is characterized by lowering of a share of delivering in

the countries of CIS (17 %) and expansion of geography of export of oil in

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