Selected Central Asian News This Week

Kazakhstan has prepared new tax claims against the Karachaganak Petroleum Operating Group (KPO), a consortium that includes Italy's ENI and Britain's BG Group, as well as U.S. major Chevron Corp and Russia's LUKOIL. According to Daulet Yergozhin, chairman of the Tax Committee, the claims -- relating to tax payments between 2006 and 2009 -- would be presented within two weeks to Italy's ENI and Britain's BG Group. Disputes with the companies that participating the extraction of Karachaganak started in 2009, when the state seeks a stake in the potentially lucrative project. Kazakhstan has grown more assertive over its abundant natural resources in recent years, pushing to revise agreements signed with foreign energy majors in the immediate post-Soviet years. State companies have increased their role in major energy projects.

Kazakhstan and Russia reached an agreement on deliveries of export duty-free Russian oil to Pavlodar Oil Chemistry Refinery (POCR) till January 1, 2014, said on Monday Sauat Mynbayev, the Minister of Oil and Gas of the Republic. The minister also pointed out that Russia's financial loss against this duty-free policy is more than 2 billion dollars annually, therefore the decision is obviously not on account of economic profits but should be evaluated in the context of the construction of the Customs Union of Russia, Belarus and Kazakhstan. Earlier this month, Russia has announced that Belarus will receive about $4 billion of duty free oil from Russia in 2011, and duties on oil products exports to Kyrgyzstan will be removed as well. In other words, Russia is sacrificing the oil export duty charges in exchange for closer ties and greater leverage in these former Soviet states.

Uzbek delegation headed by deputy governor of Tashkent F. Ziyaev returned from a trip to Shanghai (China) which was undertaken in the framework of friendly relations. During the visit, the Uzbek delegates and the deputy mayor of Shanghai exchanged views on urban development, urban planning, infrastructure development and housing and municipal services. In addition, the Uzbek delegation visited the Federation of Industry and Commerce and the Shanghai Chamber of Commerce, where a meeting was held on the development of bilateral economic and trade cooperation. The meeting ended with treaty of mutual cooperation between chambers of commerce of the two cities.


Articles referred to in this post:

"Казахстан до середины февраля выставит налоговые претензии КРО – глава Налогового комитета" (Kazakhstan prepares tax claims for KPO consortium by middle Febrary - chairman of the Tax Committee)

http://www.newskaz.ru/economy/20110203/1114902.html

"Россия будет поставлять нефть на ПНХЗ без взимания ЭТП до 1 января 2014 года – Мынбаев" (Russia to remove duties on oil products exports to POCR till Jan. 1st 2014 - Mynbayev)

http://www.newskaz.ru/economy/20110131/1101492.html

"Russia to Remove Duties on Oil Products Exports to Kyrgyzstan"

http://www.economywatch.com/in-the-news/Russia-to-remove-duties-on-oil-products-exports-to-Kyrgyzstan.24-1.html

"Ташкент и Шанхай развивают дружеские связи" (Tashkent and Shanghai develop friendly relations)

http://www.uzinform.com/ru/news/20110202/05521.html