Focus of the Issue: Russian Vector
As expected, May 29, 2014 the Treaty on the establishment of the Eurasian Economic Community (EEC) will be signed in Astana, Kazakhstan. Meanwhile, during the meeting of the presidents of Russia, Kazakhstan and Belarus held in Minsk on April 29, there was a discussion of the preparations for the signing of the Treaty, which once again showed the hidden differences existing between the participants of the integration process.
The Republic of Kazakhstan is one of the closest countries for the Russian Federation. Historically, Russia and Kazakhstan have strong friendship. In recent years, a significant contribution to the development of trade and economic relations of our two countries was made by the formation and functioning of the Customs Union between Russian, Kazakhstan and Belarus, as well as the formation of the Common Economic Space of three countries.
For the years of independence, the mineral resources sector of Kazakhstan fully adapted to the requirements of the world market. Having the significant mineral reserves, Kazakhstan is a major exporter of energy feedstock, ferrous, non-ferrous and noble metals. Given the significant role of the mineral-raw-material base in the country's economy, a serious assessment of its status is required at the present stage.
On April 15, the Russian Company LUKOIL announced its’ secession from the Caspian Investment Resources Ltd., the joint venture with Chinese Sinopec in Kazakhstan. LUKOIL sold out its’ share to the Chinese partner of the joint venture for $ 1.2 bln. Purchase and sale Agreement was signed on 15th of April. The price is subject to a number of adjustments on the date of the deal completion which is planned to be finalized before the end of this year. Upon result of the deal, Sinopec consolidates 100% of Caspian Investment Resources Ltd.
The second phase of the production facility for mixing, dispensing and packaging of oils was commissioned at the Omsk Lubricants Plant (OLP) at the beginning of April. With an introduction of the high-tech facility, the production capacity of the plant is up to 300 thousand tons of lubricants, including packaging of 180 thousand tons of finished products.