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.
A few days after President Nursultan Nazarbayev said Kazakhstan could withdraw from the Russia-led Eurasian Economic Union, Russia’s president appeared to threaten Kazakhstan, stressing publicly that Kazakhstan benefits by casting its lot with Russia and fanning suspicions that all is not well between the two leaders.
Speaking at an annual, town-hall style meeting with university students and young professors on August 29, Vladimir Putin fielded a question about Kazakhstan’s post-Nazarbayev future and the likelihood of a “Ukraine scenario”—presumably, a power vacuum and civil conflict.
Because it is widely assumed that the questions are either vetted or planted, the exchange has invited plenty of scrutiny. While Putin’s answer was full of seeming praise for Nazarbayev, it also cast doubt on Kazakhstan’s durability as an independent state—a sensitive issue in Kazakhstan after Russia annexed Ukraine’s Crimea peninsula.
Events in Ukraine, including Russia’s support for rebels in the east, have already set many Kazakhstanis on edge – sparking fears that by joining the EEU Kazakhstan is tying the knot with an international pariah. They understand the obvious parallels: If Russia can seize Crimea under the pretext of protecting Russians, can it not seize northern Kazakhstan, home to large ethnic Russian communities? And if Russia can support insurgents against Kiev (a charge Moscow denies), can it not do the same against Astana? The propositions will sound even more ominous once Nazarbayev, a strongman who has established few mechanisms for a smooth transition of power, is out of the picture.
At first blush, it seems Kazakhstan's strongman President Nursultan Nazarbayev likes to keep business in the family. A daughter heads his party in the rubber-stamp parliament; his sons-in-law held various official positions and became fabulously wealthy. So why is it not surprising that Kazakhstan is paying the wife of Nazarbayev’s most distinguished advisor, former British Prime Minister Tony Blair, hundreds of thousands of pounds for her legal services?
Citing an anonymous source, The Telegraph broke the story today. The paper describes Cherie Blair as known for her “ardent” defense of civil liberties and human rights. Kazakhstan is known for muzzling free speech and locking up critics. The contract with Mrs Blair’s law firm Omnia Strategy doesn’t concern those sensitive issues, however. Instead, the paper reports, Mrs Blair will review Kazakhstan’s “bilateral investment treaties.”
The first stage of the review, which was expected to take as little as three months, is worth £120,000 [$200,000], sources have told The Sunday Telegraph.
A second phase of the project is worth a further £200,000 to £250,000 for another three to four months’ work, it is understood. Omnia Strategy, which Mrs Blair set up in 2011, also has an option to complete a third stage of the legal project for the Ministry of Justice at a fee to be decided, according to the source.
Mrs Blair is understood normally to charge clients £1,150 an hour but will bill the Kazakh taxpayer at a reduced rate of £975 an hour if the Ministry of Justice, based in the capital Astana, continues to employ Omnia on the legal review into its third stage.
With the post-Soviet region embroiled in its deepest crisis since the Cold War over Ukraine and Kazakhstan facing the impact of Western sanctions on Russia, strong leadership and staunch policy decisions would seem to be required from Astana.
But when President Nursultan Nazarbayev summoned his government today, instead he engaged in a bout of cosmetic cabinet tinkering that may distract officials seeking to steer Kazakhstan’s economy through some choppy waters.
Nazarbayev kept his prime minister, Karim Masimov, but made several ministerial replacements and announced a merger of ministries to cut their number from 17 to 12 and subsume some of Kazakhstan’s numerous agencies, departments and committees.
The streamlining of the bloated bureaucracy is welcome, but it will likely spark a bout of distracting infighting as bureaucrats fight to keep their jobs in a vastly diminished pool of vacancies.
Several ministries received a rebranding.
The Oil and Gas Ministry became the Energy Ministry under new minister Vladimir Shkolnik. But a new name and a new face will not solve Kazakhstan’s main energy problem, the stalled Kashagan oilfield, now not expected to resume production until 2016. In an unusual meeting of interests sure to please oil and gas companies, the Energy Ministry was also handed the environment portfolio.
The Economy and Budget Planning Ministry became the National Economy Ministry, swallowing up the Regional Development Ministry. The Emergencies Ministry was merged into the Interior Ministry, and the health and labor portfolios were combined at the new Health and Social Development Ministry. Aset Isekeshev, formerly minister of industry and new technologies, heads up a new Ministry of Investment and Development.
A reshuffle in Kazakhstan has brought a veteran insider back to lead the government amid fears of trouble on the domestic and international fronts.
President Nursultan Nazarbayev reappointed former Prime Minister Karim Masimov late on April 2. In a swift sequence of events, Prime Minister Serik Akhmetov resigned, Nazarbayev nominated Masimov, and Kazakhstan’s rubber-stamp parliament unanimously approved the move.
The affable and charismatic Masimov previously served as head of government for nearly six years, making him Kazakhstan's longest-serving prime minister since independence. Nazarbayev replaced Masimov in fall 2012 with the colorless technocrat Akhmetov.
The reshuffle comes as no surprise: Nazarbayev had hinted on several occasions that he was not happy with Akhmetov and in February, after a currency devaluation that caused an economic shock to many in the country, he threatened to sack the entire government.
Presenting Masimov as his candidate to parliament, Nazarbayev thanked the outgoing Akhmetov but also damned him with faint praise, noting that his government had not “permitted any particular failure” and had “worked in the measure of its experience and possibilities.”
As country rebranding goes it’s quite radical: President Nursultan Nazarbayev has suggested changing the name of Kazakhstan and calling it Kazak Yeli (Kazakh Country) instead.
Offering a clue to his thinking, Nazarbayev singled out the ‘stan’ part of the name – and held up neighboring Mongolia as an example of a country without the Persian suffix, which means “land of.”
“The name of our country has the ending ‘stan,’ as do the other states of Central Asia,” he said in remarks quoted by his press service on February 6.
“At the same time, foreigners show interest in Mongolia, whose population is just two million people, and its name lacks the suffix ‘stan.’ Perhaps with time the question of changing the name of our country to Kazak Yeli should be examined, but first this should definitely be discussed with the people.”
The people were quick to react, taking to Twitter to vent—some firmly for and others as staunchly against.
“I support Kazak Yeli!” tweeted one user named Ruslan Zhangazy, in Kazakh. “And you?”
“Perhaps now the Twitterati will think how to stand up for the name of our country together,” remarked another, Nikita Shabayev, in Russian.
Nazarbayev was speaking at a meeting with intellectuals during a trip to the western oil town of Atyrau on February 6. The nature of the venue suggests that these may have been off-the-cuff remarks rather than a firm policy statement, but the proposal does suggest that a country name change is on the president’s mind.
Kazakhstan’s famous alpine skating rink outside Almaty turned into a love-fest for President Nursultan Nazarbayev this weekend, as skaters were bombarded with pearls of wisdom from his recent state-of-the-nation address.
Hundreds of students from Almaty universities were bussed up to the Medeu complex on January 18 amid an attempt to break the world record for mass alpine skating, with at least 500 people gathering on the ice in the presence of an official from Guinness World Records, the body which will assess the record-breaking bid.
But the event was soon hijacked to remind the young people whom they have to thank for all their fun – Nazarbayev, who goes by the title of Leader of the Nation. The giant screen that usually plays pop videos as skaters circle the ice was given over to excerpts from his state-of-the-nation address, which was delivered on January 17 and contained the usual dry statements about improving the economy and boosting social well-being.
Critics have long claimed that 73-year-old Nazarbayev – who, in power for over two decades, is one of the world’s longest serving rulers – is the subject of a thriving cult of personality in Kazakhstan, where he brooks no opposition to his autocratic rule but also enjoys genuine public popularity for bringing stability and relative economic prosperity.
Kazakhstan is marking the week leading up to First President’s Day on December 1 with public displays of affection for Nursultan Nazarbayev, the leader whom this public holiday – introduced last year – celebrates.
Fueling criticism that a cult of personality surrounds the president who has ruled independent Kazakhstan for 22 years, one Astana university organized a mass display of student adoration for the man who goes by the title Leader of the Nation.
“Supporting the Leader of the Nation!” chanted some 3,000 students from the Kazakh Humanities and Law University who turned out on November 28 to sing one of the president’s favorite songs and release red and white balloons into the sky against the backdrop of a giant banner showing the word “I” with a red heart followed by the words “Kazakhstan” and “Nazarbayev.”
The university administration insisted the event had all been the students’ idea, and they certainly looked as if they were having a good time on a video Radio Azattyk posted on YouTube.
Not to be outshone, the leaders of the nominal “opposition” in Kazakhstan’s pro-presidential rubberstamp parliament joined the outpouring of affection.
The Communist leader even took the unusual step of hailing the aggressive capitalist reforms of the early 1990s – normally anathema to any communist – that Nazarbayev oversaw when he reluctantly inherited Kazakhstan as an independent state in 1991 (a fact that modern-day official history tends to gloss over, preferring to depict this former leader of Soviet Kazakhstan as at the vanguard of the independence movement).
News that elder statesman Kassym-Jomart Tokayev is returning from a high-level diplomatic posting in Geneva to step into Kazakhstan’s second most important job, constitutionally speaking, has sparked renewed talk about who will succeed the long-serving president, Nursultan Nazarbayev.
On October 16 Tokayev was approved as speaker of the Senate, the upper house of parliament, Novosti-Kazakhstan reports, in a unanimous vote by the rubber-stamp body. Nazarbayev put Tokayev up for the key position after sending his predecessor, Kayrat Mami, to the Supreme Court as chairman.
The role of Senate speaker is crucial because, under the constitution, this is the person who steps in to assume the reins of power should the president become incapacitated.
As Nazarbayev ages (he turned 73 in July), speculation has mounted about his succession strategy – or absence of one. Analyst Dosym Satpayev told EurasiaNet.org last year that the lack of an obvious strategy to install a successor is fraught with political risks, including the possibility of a destabilizing power struggle if Nazarbayev falls seriously ill or dies in office.
Having a safe pair of hands running the Senate is vital for the movers and shakers in Astana as they mull a strategy to hand over power in the years ahead – and Tokayev is certainly a trusted loyalist. He has served as Senate speaker before, and also has been Kazakhstan’s prime minister and foreign minister.