http://www.bbj.hu/main/news_22020_merkel%2Bfavors%2Bkazakhstan%2Bties%2Bto%2Bsecure%2Bgerman%2Benergy%2Bsupplies.html

Merkel favors Kazakhstan ties to secure German energy supplies


31 Jan 2007
bbj.hu
Germany wants closer energy ties with Kazakhstan, the second largest oil 
producer among the former Soviet states behind Russia, Chancellor Angela 
Merkel said, as her government seeks to cut dependence on Russian fuel 
supplies.

„We have agreed to improve and broaden cooperation on energy matters,” 
Merkel told a press conference in Berlin after talks with Kazakhstan's 
President Nursultan Nazarbayev. Merkel offered German expertise to help 
Kazakhstan retrieve its „huge” natural resources, which, besides oil and 
gas, include steel, copper and zinc. Europe's biggest economy bought 
about 33% of its oil from Russia last year and 42% of its gas.

The shutdown earlier this month of Russian oil piped to western Europe 
via Belarus, amid a row over pricing, added impetus to Germany's bid to 
diversify its energy supplies. Merkel, holder of the European Union's 
six-month presidency, said the bloc wants to compete with Russia and 
China for greater influence in central Asia. Germany, which also holds 
the chair of the Group of Eight industrialized nations, will „very 
deliberately” pursue cooperation with central Asia.

Kazakhstan has 3.3% of the world's proven oil reserves and 1.7% of its 
gas, according to BP Plc's Statistical Review of World Energy. The 
Kashagan oil field, one of the five biggest in the world, will produce 
an average 1.2 million barrels a day between 2010 and 2041, Uzakbai 
Karabalin, president of the national oil and gas company, said on 
Monday. „Kazakhstan is a very rich country and German business has great 
interests to promote technological development there,” Merkel said, 
noting 40% of the central Asian nation's population still live on 
farming. „There's a chance for our export business.”

Nazarbayev, who has run the country since 1989 - two years before the 
collapse of communism - said Kazakhstan „is the key market” for German 
companies in central Asia. Bilateral trade equals more than €4 billion 
($5.2 billion) a year Kazakhstan's efforts to improve public safety, 
tackle human rights abuses and promote legal structures should earn the 
country the presidency of the Organization of Security and Cooperation 
in Europe, he said. „We're doing a lot and have a claim to the OSCE 
chair,” Nazarbayev said. Merkel expressed support for Kazakhstan's bid, 
saying Germany „can live” with the country in the OSCE chair „provided 
it carries on with reforms.” (Bloomberg)

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