The World Trade Organization has approved terms for Kazakhstan to join, paving the way for Central Asia’s leading economy to become a full member toward the end of the year after nearly two decades of “challenging” talks.
Speaking in Geneva after signing the accession protocol with WTO Director-General Roberto Azevedo on July 27, President Nursultan Nazarbayev hailed the imminent accession as a sign that Kazakhstan’s economy is opening up to the world.
“In improving the investment climate, we are giving priority to the diversification of our economy,” he said in remarks quoted by state news agency Kazinform.
Astana sees accession as crucial to its bid to wean Kazakhstan’s economy off its dependence on oil and gas. To that end, Nazarbayev reminded investors that Kazakhstan has devised perks for those putting money into the non-extractive sectors.
The government has indicated that it aims to complete the ratification process by October 31 and hopes Kazakhstan will be a full member once the next WTO ministerial conference comes around in mid-December.
Kazakhstan’s accession negotiations have lasted 19 years and been among the most “challenging” the global body has faced with any country, the WTO said in a statement issued when talks were finally completed last month.
It made it clear that the process had been substantially set back by Kazakhstan joining the Russia-led Customs Union (a regional free trade zone) in 2010, which evolved into the Eurasian Economic Union (EEU) this year.
Kazakhstan’s accession process slowed after Russia first said the Customs Union members would negotiate as a bloc to join, before proceeding to join alone in 2012.
Kazakhstan’s recently re-elected president has made a vaguely worded pledge of political reform for his new term. Nursultan Nazarbayev suggested that Kazakhstan must transition from its super-presidential system to a more balanced one with greater checks and balances.
Yet while mulling reforms to pave the way for the eventual post-Nazarbayev era, the president made no specific pledges about what form they might take or when they might be enacted, leaving skeptics wondering if his intentions are serious.
Kazakhstan’s political system has hitherto been characterized by “strong presidential rule,” Nazarbayev said on May 29 in remarks quoted by the Kazakhstanskaya Pravda government-owned daily.
Yet as a middle class emerges “this should probably be weakened and the government should be given more opportunities to work independently and more powers should be handed over to parliament.”
There has long been talk in Kazakhstan about weakening the top-down system in which Nazarbayev wields all powers, the government carries out his orders, and parliament (which contains no genuine opposition parties) rubberstamps executive decisions.
Reforms, the thinking goes, would pave the way for a time when the aging president – who has ruled Kazakhstan for a quarter century and will be 80 when his term of office ends in 2020 – will no longer be in power, allowing him to bequeath his successor a system less dependent on one personality.
The long-serving strongman leader of Kazakhstan has confirmed his intention to stand for reelection in a snap vote next month. He is guaranteed to win a landslide.
Nursultan Nazarbayev accepted the nomination of his ruling Nur Otan party to stand in the April 26 election at a party congress on March 11, his Twitter feed reported.
“I declare my agreement to stand as a candidate for president from the Nur Otan party in the upcoming elections,” @AkordaPress, the Twitter account run by the presidential administration, quoted him as saying.
“We must move forward,” he told the congress in remarks quoted by Tengri News, after delegate after delegate had proposed in fawning speeches that the incumbent accept the nomination. Nazarbayev remarked that he was “not so young” but was ready to “do great deeds in the future.”
Kazakhstan’s long-serving president has confirmed widespread expectations that the country will go to the polls in a snap election, setting the date for April 26.
Incumbent Nursultan Nazarbayev, 74, did not confirm he will stand in the poll. But in an address to the nation late on February 25 he dropped strong hints that he will, stressing the need for “stability” and “continuation.”
“First, all the appeals to me [to hold a snap election] reflect nationwide alarm that no internal discord or external conflicts should affect our country,” Nazarbayev said. “People understand that for this it is necessary to boost stability and the unity of our society.”
Secondly, he added, amid a “global economic crisis, the people need confidence in tomorrow. This means above all assuring jobs, and stability in social payments, salaries, and grants.”
Nazarbayev invoked “global geopolitical contradictions,” in an indirect reference to tensions in the post-Soviet region over the conflict in Ukraine. This means that “our citizens are concerned about the question of assuring national security,” he said. “Kazakhstanis are, therefore, coming out in favor of the further continuation of a balanced domestic and foreign policy.”
Nazarbayev’s words strongly suggest that he has every intention of staying in power for another term, since a change of leader in Kazakhstan, which has had the same president for a quarter of a century, would undoubtedly bring political upheaval in its wake.
Rakhat Aliyev, the flamboyant and controversial former son-in-law of Kazakhstan’s president, has been found dead in an Austrian prison, where he was awaiting trial on charges of murdering two bankers in Kazakhstan eight years ago.
Once a major powerbroker in Kazakhstan, widely feared for his ruthless pursuit of business interests and personal vendettas, Aliyev was found hanged in the Vienna jail on February 24, Reuters reported. Austrian corrections department director Peter Prechtl reportedly described the death as suicide, though Aliyev’s lawyer expressed doubts.
Aliyev’s death puts an end to a tumultuous life which saw him climb the dizzy heights of power alongside his ex-wife Dariga Nazarbayeva (the eldest daughter of President Nursultan Nazarbayev) and amass a vast fortune in Kazakhstan, before suffering a spectacular fall from grace and ending up behind bars on a murder rap in Europe.
The former senior official in the Nazarbayev administration fell out with his father-in-law in 2007 and holed up in exile to escape criminal charges, first in Austria and then in Malta (where he lived under his second wife’s surname, Shoraz).
He vociferously protested his innocence of all charges, waging a media war with Nazarbayev and making claims of political persecution that were widely ridiculed in Kazakhstan (including by the political opposition, to which he had never demonstrated any previous allegiance).
Moves are afoot in Kazakhstan to hold a snap presidential election. Proponents say an early election would give incumbent strongman Nursultan Nazarbayev a fresh mandate as the country faces a slumping economy and regional geopolitical tensions over the Ukraine conflict.
Nazarbayev, who has ruled Kazakhstan since before the collapse of the Soviet Union, won a snap election with little opposition in 2011.
The council of Assembly of People of Kazakhstan (APK), an umbrella organization representing the interests of Kazakhstan’s ethnic groups, called for the early election over the weekend. Nazarbayev chairs the organization and appoints its members.
“The country’s president, Nursultan Nazarbayev, must be given a new mandate of national confidence in order for the country to successfully navigate a period of global travails,” the APK’s council said in a statement issued on February 14, hinting at Kazakhstan’s economic difficulties and at regional tensions stemming from the escalating conflict in Ukraine.
“A mandate of confidence in the Leader of the Nation [one of Nazarbayev’s official titles] will unite and rally the people at this new stage of world development, allowing all efforts to be concentrated on the most important questions of state development,” the council said.
This public appeal from a quasi-official body for a snap election (which has been rumored for several months) means an early vote is practically a fait accompli. And it is no secret who is the favorite to win.
The grandson of President Nursultan Nazarbayev has been parachuted into a top political job in Astana, sparking speculation in Kazakhstan that the aging president may be grooming him as his successor.
Nurali Aliyev, the millionaire eldest son of the president’s daughter Dariga Nazarbayeva and her disgraced ex-husband Rakhat Aliyev, has been appointed deputy mayor of the capital of Kazakhstan, the Astana administration’s website has announced.
This is the first foray into politics by Aliyev, hitherto a prominent banker who has occupied top jobs in Kazakhstan’s financial system, including as chairman of the boards of Nurbank and the Development Bank of Kazakhstan. Aliyev – who has an estimated fortune of $200 million, according to Forbes Kazakhstan’s rich list – is currently chairman of the board of the Transtelekom telecommunications company.
Aliyev is Nazarbayev’s eldest grandson and is rumored to be his favorite grandchild (though the president does not believe in nepotism, which he railed against angrily earlier this year).
Aliyev’s mother Dariga Nazarbayeva, an MP and deputy speaker of parliament’s lower house, is a powerful political player who is herself sometimes tipped as possible presidential material.
A former prime minister of Kazakhstan has been placed under house arrest on corruption charges. The rare move against such a high-ranking member of the political establishment is sure to set tongues wagging about the presidential succession.
Serik Akhmetov – who was premier until this April and defense minister until last month – has been charged with graft under an ongoing investigation that has seen high-profile arrests in Karaganda Region, the former PM’s political fiefdom, Tengri News reported, citing Kazakhstan’s anti-corruption agency.
Baurzhan Abdishev, a former regional governor and ex-mayor of the city of Karaganda, and Meyram Smagulov, another former mayor, were arrested this fall on corruption charges relating in part to the lucrative metallurgy industry based in the central region.
Akhmetov – who forged his career in the Karaganda metallurgy industry and the Soviet Communist Party in the 1970s and 1980s – was governor of Karaganda Region from 2009 to 2012, at a time when Abdishev was city mayor. This implies that the two are political allies, and commentators in Kazakhstan had already been linking the Karaganda corruption case with a likely move against Akhmetov.
He was appointed prime minister in 2012 and dismissed this April, amid hints that President Nursultan Nazarbayev was disappointed by his lackluster performance.
Yet Akhmetov was still appointed defense minister in that reshuffle, a post from which Nazarbayev abruptly fired him in October after just six months in the job.
Fast-food giant McDonald's will open its first restaurant in the oil-rich Central Asian state of Kazakhstan next year, in partnership with an energy tycoon related by marriage to President Nursultan Nazarbayev.
The company will open its first burger bar at an unspecified location in Kazakhstan in the second half of 2015, with more to follow, it announced on November 12.
McDonald’s is heading into Kazakhstan with good connections guaranteed: It will be partnering with prominent gas tycoon Kairat Boranbayev, whose daughter Alima is married to Nazarbayev’s grandson, Aysultan Nazarbayev.
“Our agreement with Kairat will enable us to continue to build our brand,” Doug Goare, president of McDonald’s Europe, said of the foray into Kazakhstan, where insiders say that the key to business success is often not what you know but who you know.
The Kazakhstan launch comes as McDonald’s comes under massive pressure in neighboring Russia, where more than half of its 440 locations are under investigation over alleged health and safety violations (which the company denies) and nine outlets have been temporarily closed.
Kazakhstan is a close economic partner of Russia’s, but has been keen to distance itself from Moscow as Western sanctions bite, making it abundantly clear that its doors are always open to foreign investors.
French investigators are probing suspected kickbacks paid over a lucrative helicopter deal with Kazakhstan, Le Monde has revealed.
The report emerged the day before President Nursultan Nazarbayev heads to Brussels to cement Kazakhstan-European Union ties. Embarrassingly, it alleges the Kazakh president used a €2 billion contract with Marseille-based Eurocopter (since renamed Airbus Helicopter) to pressure Belgium to drop bribery charges against three Kazakhstani oligarchs.
The investigation into the Eurocopter deal (signed in 2010 when Nazarbayev was welcomed to France by Nicolas Sarkozy, then French president) on suspicion of money-laundering, corrupting public officials and receiving stolen goods began in 2012 and has been conducted in the utmost secrecy, Le Monde reported.
Last month two former Sarkozy associates who held top jobs in his administration were arrested on suspicion of involvement in paying kickbacks over the contract, the newspaper said, naming them as Jean-Francois Etienne des Rosaies, a former adviser to Sarkozy, and Nathalie Gonzalez-Prado, a former senior official at the Elysee palace.
The probe was sparked by the appearance of “suspicious funds” (more than €300,000) in the account of Etienne des Rosaies, the report said, adding that two unnamed “intermediaries” and a lawyer had been indicted.
Sarkozy is also “suspected of having put pressure in 2011 on the Belgian Senate,” at Nazarbayev’s request, over a bribery and money-laundering probe involving three Kazakhstani oligarchs as a condition for the helicopter deal going ahead, Le Monde claimed. The report did not name the oligarchs.