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2. ABOUT A CONDITION OF FOREIGN TRADE BOTH DEV’T OF THE JOINT /

ENTERPRISES KAZAKHSAN AND RUSSIA

Indexes of foreign trade of RK with RF, 1995-2001
| |1995 |1996 |1997 |1998 |1999 |2000 |2001 |
|Commodity | 4 | 4 | 4 | 3 | 2489,2 | 4227,6 | 4 639,3|
|circulation |265,5 |809,0 |257.2 |323.2 | | | |
|mln of US | | | | | | | |
|dollars | | | | | | | |
|In % to the | | 112,7 | 88,5 | 78,1 | 74,8 | 169,8 | 109,7 |
|appropriate | | | | | | | |
|period of the| | | | | | | |
|previous year| | | | | | | |
|Export, mln | 2 | 2484,4| 2 | 1 | 1 138,6| 1 769,1| 1 748,4|
|of US dollars|365,8 | |287,8 |611,4 | | | |
|In % to the | | 105 | 92,1 | 70,4 | 70,7 | 155,4 | 98,8 |
|appropriate | | | | | | | |
|period of the| | | | | | | |
|previous year| | | | | | | |
|Import, mln | 1 | 2 | 1 | 1 | 1 350,6| 2458,5 | 2 890,9|
|of US dollars|899.7 |324,6 |969,4 |711,8 | | | |
|In % to the | | 122,4 | 84,7 | 86,9 | 78,9 | 182 | 117,6 i|
|appropriate | | | | | | | |
|period of the| | | | | | | |
|previous year| | | | | | | |
|Balance, mln | 466,1| 159,8 | 318,4 | -100,4| -212 | -689,4 | -1 |
|of US dollars| | | | | | |142,5 |
|Specific | 45,1 | 42 | 35,2 | 29,6 | 19,8 | 19,4 | 20,2 |
|gravity of | | | | | | | |
|Russia in | | | | | | | |
|total amount | | | | | | | |
|of export | | | | | | | |
|from | | | | | | | |
|Kazakhstan, | | | | | | | |
|in % | | | | | | | |
|Specific | 49,9 | 54,8 | 45,8 | 39,4 | 36,7 | 48,7 | 45,4 |
|gravity of | | | | | | | |
|Russia in | | | | | | | |
|total amount | | | | | | | |
|of import in | | | | | | | |
|Kazakhstan, | | | | | | | |
|in % | | | | | | | |

Russian Federation of the valid historically folded processes of an economic development is the basic trade partner of Kazakhstan and basic consumer of Kazakhstan production. The specific gravity of Russian
Federation in volume of export in the countries of CIS annually makes not less than 91-93 %.

In 1997 the reorientation on a development of the foreign trade links with the countries of long-distance foreign countries began. In this connection a -percent ratio in volumes of export between the countries of
Commonwealth essentially has varied. In 1997 there was cutting volumes of foreign trade between Russia and Kazakhstan, per consequent years this tendency continued to be magnified. On many goods occupying a powerful share in export of Kazakhstan production in Russia, there was a significant lowering of standard items.

In 2000 there was an essential heightening of volumes of export with all countries - basic trade partners from among Commonwealth. The foreign trade turnover of Kazakhstan with Russia in 2000 has approximated to a level of 1997. The export has increased as contrasted to 1999 in 1,5 times, the import has increased by 82 %. In 2001 as contrasted to 2000 of delivering in Russian Federation practically have remained at a former level (reduction by 1 %).

The share of Russia in total amount of export in 2001 has made 20,2 %
(in 2000 -19,4 %).
The greatest specific gravity in structure of export in Russian Federation occupy:

Mineral products - 47,1 of % in 2001 (46,8 % in 2000): coal - 91 % of export coal from Kazakhstan, oil and gaseous condensate - 12 %, ores and concentrates iron, chrome, zinc -10,3 % (7,9 %); products of inorganic chemistry junction, inorganic and organic precious and rarely of metals of radioactive elements and isotopes 13 % (13,5 %): an oxide and hydracids of aluminum - 90 % of all outbound delivering; ferrous metals - 8,2 % (6,3 %).

In import from Russian Federation predominate: mineral products, machines and equipment.
In 2001 basic paper of import was: purchase of mineral fuel, oil and petroleum - 21,4 % (more than 77 % from common import of fuel, from them coke, diesel fuel, lubricant oils, electric power;the machines and equipment - 16,3 %, metallurgical production -14,5 %, vehicles -13 %, production chemical and industries, coupled to it,-12 %, plastic and work piece from it -4 % were imported.

On October 1 2001 in Republic of Kazakhstan 740 share and foreign enterprises created with participation of Russia (including 466 share and
274 foreign enterprises) with the authorized capital - 22,7 billion tenge operated. The share of the foreign founder in the authorized capital has made 1,3 billion tenge, or 5,94 %. From them 121 enterprises manufactured production, 72 - realized deliverings on export, 182 - had import receipts and 456 realized delivering on a home market. In 2000 in republic 461 enterprises, in 1999 - 325 operated.

The enterprises created together with the Russian partners, realize the following aspects of activity: production of crude oil, mounting of the process equipment, construction of civil engineering buildings, manufacture of the electric power both electro distributive and monitoring equipment, pharmaceutical products, copper, woolen and synthetic fabrics, flour, processing and conservator of production, rendering of different aspects of services and researches, maintenance and repair of automobiles, activity in the field of a wireless and television.

2.1 Some aspects of economic interaction Kazakhstan and Russia

For adjustment and intensive development of mutually advantageous two- sided ratios within the framework of CIS Republic of Kazakhstan and Russian
Federation have necessary objective premises. Russia and Kazakhstan make a basis of huge Eurasian region, in which historically there were steady geopolitical, economic, ethnic and cultural links of two countries and peoples. In many vital spheres the national interests of two countries are close or coincide, both countries hold on to course on saving of common defensive, humanitarian and information space and the stability and prosperity of two countries, further democratic of a society and success of market transformations are equally interested in hardening safety.

The interaction of Kazakhstan with Russia is a priority in external policy, external economic and military-strategic course of republic. A complex of the reasons conditions and factors having not tactical, but basic essence and long-time character stipulates it.

Today common balance of mutual relation between Kazakhstan and Russia has positive character, as consider each other as the strategic partners and it establishes the important premise for their mutual cooperating in the field of policy, economy, science, engineering and other spheres.

Kazakhstan-Russian economic partnership belongs to the most advanced regions of two-sided ratios between two states, as for this purpose both countries have premises for rapprochement. It in many respects defines character, both mutual relation, and other economic links, folding in the
European direction, of Kazakhstan.

On today there are favorable and unfavorable factors inherent in
Kazakhstan on a path to economic cooperating to Russia.
Alongside with the favorable factors of a development of two-sided economic ratioes exist as well unfavorable or constraining moment. The overcoming of economic barriers by means of restoring cooperation links will allow introducing the operations in frameworks EAEU (Euro-Asian Economic Union).

2.2 The factors of economic interaction of Kazakhstan and Russia

Favorable

a) Presence in Kazakhstan of large mineral operational lives. b) Transit potential and favorable geopolitical position of Kazakhstan at the center of the Eurasian continent: on a crossroads of trade and transport paths from Europe in Asia: through China on Far East ports,
Pacific Ocean of the state; through Iran and Turkey in the Mediterranean pool. c) Determination of Kazakhstan and Russia as basic trade partners on export and import. d) Retention of Kazakhstan in the majority large international architectures UN, Architecture of Economic Cooperating, Economic union
Central Asian of the countries (together with Uzbekistan and Kyrgyzstan) and Central-Asian Bank of Cooperating and Development (CABCD); Great five
Republic of Kazakhstan in frameworks of CIS (Russia, Kazakhstan, Belarus,
Kyrgyzstan, Tadjikistan). e) The large region with the common boundary (more than 6.000 kms) with
Russia, that has for two countries a serious value in matter of hardening of their national and collective safety. f) The residing in republic of the large ethnic interlayer of the European origin (Russian, Ukraine, Germany) is one of the factors of rapprochement of Kazakhstan with the European civilization and culture.

Unfavorable

a) A close arrangement of Kazakhstan to the inconsistent states Central
Asian of region. b) Support by Kazakhstan of multifactor policy in a ratio of transportation of the Caspian oil. c) The boundaries Central Asian of the states from a point of view of international law properly not democratic of Republic of Kazakhstan;
Kazakhstan has appeared as a matter of fact cut off from Western Europe d) Increase of ecological crisis, that weakens its positions in region and world, narrows down opportunities of fast industrial growth. e) Absence in Kazakhstan of a direct exit to World Ocean, exterior warm seas, that hampers links with the largest centers of a modern civilization.

f) Support by the countries of trade wars (introduction of limitation on import of the goods, policy of an ascertaining dumping in relation to the exported goods, raw interdependence of the countries etc.).

In the beginning 1990s. It seemed, that the revived democratic states within the framework of their new statuses would be and further dynamically to explicate the ratios, filling their contents, adequate to a new position. However it has not taken place and in basic for past years of two- way communications were characterized defined inertia.

As displays the analysis, the policy of Russia in a ratio of the states of Commonwealth for flowing out five years did not differ by a sequence.

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