Voice of Democracy
Published by Kazakhstan 21st Century Foundation · Washington, D.C. · Jule 13, 2004

KAZAKH-IRANIAN TIES CAUSE CONCERN -- The Bush Administration publicly talks up relations with Kazakhstan as a partner in the war against terror, but privately it is deeply concerned about growing ties between the former Soviet Republic and a charter member of President George W. Bush's Axis of Evil, Iran. The Islamic republic is a leading state sponsor of terrorism and believed to be behind much of the insurgent violence in Iraq today, so any moves to bolster the ayatollahs is a major cause of concern in Washington. Kazakhstan is considering construction of a pipeline to Iran, reports Eurasianet, giving it easy access to the Persian Gulf. "It would be much better than Baku-Cehyan, better than China, better than Russia, Kazakh President Nursultan Nazarbayev told the Financial Times in May. Baku-Cehyan is the U.S.-backed pipeline from the Caspian to the Mediterranean via Turkey. http://www.eurasianet.org

BRIBERY SUSPECT TO SEE CIA DOCUMENTS -- The American businessman accused of paying $78 million in bribes to Kazakh dictator Nursultan Nazarbayev and another official won permission to review Central Intelligence Agency and State Department documents in preparing his defense, reports New York Lawyer. Judge William H. Pauley III also had some other good news for James H. Giffen, Nazarbayev's longtime personal advisor; he dismissed eight of 65 counts of the indictment against the New York investment banker. Giffen's Mercator Corporation had been hired by Nazarbayev in 1995 to help arrange foreign investment in the lucrative Kazakh oil and gas fields. Giffen claimed he was working under the authority of the U.S. government and has demanded access to CIA and State Department records to prove that. "The government did not dispute that Mr. Giffen had frequent contacts with U.S. intelligence officials or that he used his contacts within the Kazakhstan government to promote U.S. interests," the magazine reports. Judge Pauley said "If the United States was encouraging Giffen to ingratiate himself to senior Kazakh officials, then [he] may be able to assert a public authority defense."Former Kazakh Prime Minister Akezhan Kazhegeldin will be a witness for the prosecution, reports the Wall Street Journal's European Edition. "I will do everything to make sure that the interests of the people of Kazakhstan will be protected in this judicial process and the crime against my country will be prosecuted," he told the Journal. http://www.nylawyer.com/news/04/07/070704b.html, http://public.wsj.com/home.html

HAVING GOVERNMENT AS A BUSINESS PARTNER -- Foreign investors are taking a skeptical look at the Kazakh governments' aggressive campaign to buy a major stake in the international consortium developing the Kashagan oil field. High oil prices are fattening the Kazakh treasury, allowing the government to assert its energy interests independently of foreign investors, reports Eurasia net. The Kashagan field in the Caspian Sea is considered the largest oil find in 30 years, with an anticipated yield of 13 billion barrels. The government is seeking to purchase British Gas Group's 16.67 percent stake in Kashagan. Kazakh Energy Minister Vladimir Shkolnik, confirming government plans for the purchase, said, "the asset belongs to the state anyway." Analysts differ over the government's motivation, said the Eurasianet article. Some say it is a "growing desire for a larger say in development of the country's energy resources" and others believe it is part of an attempt "to claim pre-emptive purchase rights in any energy project." Either way it is bringing the government into conflict with the oil companies it looks to for development of its lucrative resources. http://www.eurasianet.org/departments/business/articles/eav070904.shtml

PETER PARKER WHERE ARE YOU? -- They're baaaaaack! There's a population boom in poisonous spiders in Kazakhstan, the likes of which haven't been seen in a century. It is the karakurts, a relative of the black widow, and its population is rapidly multiplying, particularly in the area near the former capital of Almaty in the southeast, reports UPI. It's a phenomenon that seems to occur about ever 100 years; the previous outbreak lasted eight years and ended in 1904, but this time it's expected to end in late 2005. Formally known as Latrodectus mactans tredecimguttatus, it is black with red spots and like its better known relative, the females eat the males after mating. The bite of the female is dangerous for people, horses and camels. http://washingtontimes.com/upi breaking/20040706-102852-6603r.htm

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