Samruk-Kazyna to play key role in cooperation between Kazakhstan and China, Kelimbetov

Samruk-Kazyna to play key role in cooperation between Kazakhstan and China, KelimbetovBEIJING. March 9. KAZINFORM /Ruslan Suleimenov/ Kazakh President’s visit to China was a significant milestone in  further development of the Kazakh-Chinese strategic partnership. Active participation of the Head of State and his understanding with the leadership and reps of business elite of China let our relations embark on a brand new level, Chairman of the Board of National Welfare Fund Samruk-Kazyna JSC Kairat Kelimbetov told in an interview with Kazinform agency.

Could you please tell us about the agreements signed during the President’s visit to China?

KazMunayGas JSC (KMG) over the past 2-3 years gained greater understanding with Chinese partners. During the visit the parties signed an agreement on joint exploration of Urikhtau gas deposit to refill a pipe ranging from the west to the south of Kazakhstan “Beineu-Bozoi-Shymkent” and further, with possible export to China.

As far as you know, China built a gas pipe from Turkmenistan to China via Kazakhstan, i.e. we will join the pipeline. An additional tie-in to run from Turkmenistan via Kazakhstan is under consideration, it means Kazakhstan becomes a ground for geo-economic maneuvers when Central Asian gas (embracing Turkmenistan, Uzbekistan and Kazakhstan) is exported to China.

I think, reliability of KMG as a partner of the China’s National Petroleum Corporation (CNPC) is of crucial significance. USD 5 bln allocated for the oil and gas sector was forwarded for acquisition of MangystauMunaiGas JSC on one side, on the other side KMG and CNPC get USD 2.6 bln to finance “Beineu-Bozoi-Shymkent” project essential for supplying Kazakhstan with gas and giving an opportunity for industrial expansion in the south of Kazakhstan rich in labor resources.

Another direction, the President called it as the key one, is mutual understanding in the area of nuclear power cooperation. Kazatoprom JSC and Chinese companies signed contracts for long-term supplies of about 55 thousand tons of uranium for the period of 10 years. It is a great victory of Kazakhstan to become a long-term partner of China’s nuclear and energy corporations having ambitious plans for construction of new nuclear plants.

As Hu Jintao and Wen Jiabao confirmed they regarded Kazakhstan not only as a natural uranium supplier but also as a potential technological partner. We start delivering fuel pellets for further processing in China.

Besides, a historic agreement – a memo on a joint nuclear investment fund to back construction of nuclear plants in China was signed. The parties debated the partnership to have an atomic power station in Kazakhstan built. Kazakhstan has confirmed it is the world’s largest natural uranium producer but also a reliable partner for China’s nuclear energy sector.

The third direction is a memo signed between Kazakhstan Temir Zholy JSC and Ministry of Railways of China on considering opportunities for construction of high-speed railway Astana-Almaty. We could integrate into transport and communications space of Asia. It is a new step, a new page in the history of or relations.

What about cooperation in non-oil and gas sphere?

Under the USC 5 bln loan for non-oil and gas sector the Joint Chemical Company endorsed an agreement with Sinopec Corporation on construction of a gas and chemical facility in Atyrau. Besides, as a part of cooperation Kazakhstan’s Development Bank and Eximbank of China inked an individual loan agreement to the amount of USD 1.38 bln.

Besides, Samruk-Kazyna and China’s Datan Corporation work on development of windmills and coal gasification technologies in Kazakhstan by the next meeting of heads of state this June in Astana and 10th jubilee SCO Summit.

 How do you assess prospects of Kazakhstan’s IPO?

At the February Congress of the Nur Otan Party President Nursultan Nazarbayev charged to develop a three-year program on Kazakhstan’s IPO. Thereat, a part of shares of national companies will be offered in people’s IPO. We are working together with the Finance Ministry to introduce it in the near future.

We target at large to enter the stock market of Hong Kong, first of all, due to great export opportunities and economic upswing of Kazakhstan are associated with China’s economy, and searching for new niches for development in China and other Asian countries.

 What are the prospects of economic development of Kazakhstan and China, the world’s second largest economy?

Many experts see China as the world’s top economy by 2030 and may be even earlier. Therefore we should not go far to seek, the world’s biggest economy is our neighbor. Another two largest economies Russia and India are situated close, i.e. three out of four states comprising BRIC.   The President’s visit gave a potent impetus to the development of our cooperation.

As for the Sino-Kazakh ties, Samruk-Kazyna Fund will play a key role as a reliable partner of all Chinese companies and an umbrella for the country’s biggest national companies. I think we will put out plans into life in three-five years to come and it will be another level and another terms of interaction.

Besides, the President announced the intention to establish a Sino-Kazakh University to train IT specialists. Parties may tune up cooperation in building a giant-powered computer based on a simple formula: our country offers mineral and energy resources and workplaces in Kazakhstan; China provides soft-term financing and access to high technologies and brainpower exchange. I believe such a formula generates energy to make our countries competitive in the future.

Thank you for the interview.