US embassy cable - 05ALMATY304

UNCLAS ALMATY 000304 
 
SIPDIS 
 
 
DEPARTMENT FOR EUR/CACEN JMUDGE, EUR/ACE JMCKANE 
TREASURY FOR CENTRAL ASIA DESK OFFICER MGAERTNER 
COMMERCE FOR CENTRAL ASIA DESK OFFICER DSTARKS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, PGOV, KZ, ECONOMIC 
SUBJECT: AMBASSADOR ORDWAY MEETS WITH DPM AND TRADE MINISTER 
MYNBAYEV 
 
 
1. (U) Summary/Background:  Ambassador Ordway called on 
Deputy Prime Minister and Minister of Industry and Trade 
Sauat Mynbayev January 25 in Astana.  They discussed 
Kazakhstan's WTO accession, the Minister's prospective 
attendance at the inaugural TIFA Council meeting and his 
possible trip to San Diego for the Kazakhstan Investment 
Conference.  Also, Mynbayev argued for Kazakhstan's 
immediate graduation from Jackson-Vanik scrutiny. 
 
2. (U) Sauat Mukhametbayevich Mynbayev, 42, was named 
Minister of Industry and Trade in addition to being a Deputy 
Prime Minister in December 2004 when Adilbek Dzhaksybekov 
was appointed Head of the Presidential Administration. 
Mynbayev had already been serving as a deputy PM since June 
2003.  He has served in a variety of senior government 
positions, among them Minister of Finance and Minister of 
Agriculture.  His longest stint in the private sector was 
from 1992-1995, when he worked as first deputy chairman of 
Kazkommertsbank.  End Summary/Background. 
 
3. (SBU) Ambassador Ordway first raised the issue of 
Kazakhstan's WTO accession, noting positively the progress 
the GOK made in several key areas in 2004.  Mynbayev did not 
discuss substantive issues affecting accession.  He did, 
however, express concern that Kazakhstan's accession was 
being overshadowed by the concurrent accessions of Russia, 
Ukraine, Saudi Arabia and others.  He expressed concern that 
Kazakhstan was not getting enough attention from the USG. 
 
4. (SBU) Mynbayev also brought up the United States' 
continued application of Jackson-Vanik review to Kazakhstan. 
Mynbayev said he could not see any justification for it, and 
asked when the United States would stop the practice.  The 
Ambassador told him that while he understood this concern, 
events in Russia are generally the main factor affecting 
Congress' view of the Jackson-Vanik issue.  The Ambassador 
also pointed out that based on the experience of other 
former Soviet states, Kazakhstan will be more likely to 
graduate from Jackson-Vanik treatment once it joins the WTO. 
 
5. (U) When the Ambassador inquired about Mynbayev's travel 
plans, the minister responded that there was a tentative 
plan that he would lead the government delegation to the 
Kazakhstan Investment Conference in San Diego March 11. 
However, according to Mynbayev, the government has not 
decided yet who will travel.  The Ambassador also told 
Mynbayev that the USG would welcome his presence at the 
inaugural TIFA Council, but the minister did not appear to 
have considered it yet. 
 
6. (U) The Ambassador also raised the cost-sharing 
arrangement proposed by USAID to fund its economic policy 
and SME development programs.  Mynbayev responded that the 
government's budgetary commission, which will start its work 
on the 2006 budget in February, intends to appropriate funds 
for the purpose of cost-sharing; however, he did not offer 
any information on when the GOK might be ready to sign an 
agreement formalizing the arrangement. 
 
7. (SBU) Comment:  Mynbayev's comments on WTO accession were 
less sanguine than the GOK's public line and reflected a 
realization that Kazakhstan will be at a definite 
disadvantage should Russia join first.  His remark that 
Kazakhstan needs more attention from the U.S. side echoes 
remarks made in December by WTO negotiator and Vice-Minister 
Zhanar Aitzhanova.  End comment. 
 
8. (U) Minimize for Dushanbe considered. 
 
Ordway 
 
 
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