2000-01-17 Kazak Politics & MacroEconomics - Pension Assets Will Not Be Invested
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Pension Assets Will Not Be Invested in Real Sector
The assets of Kazakhstan’s pension funds will not be used to finance the real sector of the economy, including the project to modernise the Atyrau-Samara oil pipeline, said the Executive Director of the National Securities Commission, Galina Shalgimbayeva. Earlier, the Minister of Labour and Social Protection, Nickolay Radostovets, stated that 10% of all pension assets will be used to finance the real sector as early as this year, particularly the Atyrau-Samara oil pipeline project. Ms Shalgimbayeva said pension assets are sacred money and therefore will be invested very conservatively, i.e. in risk-free financial instruments. As of 1 December 1999 Kazakhstan’s total pension assets reached about USD 430 million. (Interfax)
Kazakhstan Petroleum Association Criticises Idea of Oil Export Limitation
The Kazakhstan Petroleum Association (KPA), which unites oil companies working in Kazakhstan, has expressed its disapproval of the Government’s decision to limit oil exports. The Chairman of the KPA, Edward Verona, called this decision a problem for Kazakhstani oil companies and said it will certainly influence the activity of these companies as well as the realisation of oil projects. As reported earlier, the Government will limit oil exports in 2000 to 22 million tonnes in order to support the three Kazakhstani oil refineries that supply oil products to the domestic market.
According to the KPA’s estimates, Kazakhstani oil companies will produce about 30 million tonnes of crude in 2000 excluding condensate. The Chairman questioned whether or not companies will be willing to sell the remaining 8 million tonnes to Kazakhstani refineries at prices that are lower than the world price. In Verona’s opinion, if the Government’s decision to limit exports is based on national interests, it should compensate the gap in prices. (Interfax)