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China, Russia and Nazarbaev

China, Russia and Nazarbaev published on

Xi Jinping’s visit to Kazakhstan contributed to concluding a set of agreements on Chinese investments and cooperation projects, of which the most significant is the deal on the CNPC’s participation in Kashagan. Chinese buy inroads in Kazakhstan and approach Kazakh authorities in multiple projects in energy sector. The development of this cooperation is closely watched by Russia, which is very cautious about China’s growing presence in Central Asia. Nazarbaev apparently does not want to put all eggs in one basket and become overly dependent on the raising Chinese power. He maintains cooperation with Russia in varied areas and lifts the cooperation to new levels. Yesterday Foreign Minister of Russia Sergey Lavrov and Minister of Foreign Affairs of Kazakhstan Erlan Idrisov signed the protocol on amendments to the Treaty of Good-Neighbourliness and Alliance of Russia and Kazakhstan in the 21st century.The document is 95 percent ready and is scheduled to be signed in the framework of the 10th Forum of Interregional Cooperation in Yekaterinburg in November. Recently officials from both countries on numerous occasions praised very good relations and strong cooperation between both countries. Nazarbaev praised relations between Russia and Kazakhstan and work of ministries of foreign affairs and embassies. He supported Russian’s approach to the solution of the conflict in Syria. Idrisov proposed the cooperation ine the field of uranium enrichment. Lavrov announced that Medvedev will visit Kazakhstan and expressed his wish to see the countries of Central Asia experiencing undisturbed, stable development and said that Russia and Kazakhstan will cooperate to maintain peace and security in the region.
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Kashagan Deal Inked

Kashagan Deal Inked published on

Xi Jinping’s visit to Kazakhstan has contributed to closing the deal on the Chinese participation in the Kashagan project (our previous articles on Kashagan here and here. On Saturday Reuters reported the deal and provided some details of the transaction. Kazakh sources like Tengrinews.kz and Newskaz also informed about the sale of the shares in Kashagan project to China National Petroleum Corp (CNPC) but without elaborating on the conditions. Astana TV today informed that details of the whole transaction would be announced later. According to Reuters KazMunayGas JSC (KMG) will resell ConocoPhilip’s shares for around 5 bln USD, amount, that is slightly lower than expected. CNPC however will pay up to $3 billion to cover half of Kazakhstan’s financing of the second phase of Kashagan’s development which was one of the additional costs to be paid by the Chinese buyer I wrote about in the previous articles. Another part of the deal is the agreement that would guarantee loans from The China Development Bank and The Export-Import Bank of China – worth respectively $3 billion and $5 billion – to Kazakhstan’s state holding firm Baiterek. Official version of the terms and conditions will be revealed later and transaction will be probably fnalized in October but as deal was supported and announced both by Xi Jinping and Nursultan Nazarbaev and other Kazakh officials it’s hardly possible that it would not be. It’s worth mentioning that the agreement on Kashagan is only a part of the whole set of projects worth 30 bln USD that were inked during Xi’s visit.