Premier Goes - Reforms Stay
Nursultan Nazarbaev: There won't be any changes in the status or powers of the government.
There won't be any presidential rule.
Foreign investors seem to be rather worried to have lost their reliable supporter in the
government - reformist Akezhan Kazhegeldin, who appealed for resignation last week, though
the premier himself said last week his possible resignation would not threaten his reform course.
Outgoing Premier Akezhan Kazhegeldin is suffering from a stray blood clot stuck in his lungs
and is undergoing his treatment in Switzerland.
Nazarbaev praised the outgoing prime minister, Kazhegeldin, saying: "he began the reforms
well. I was hoping he would be fully healthy, but he is very ill. I got his letter from Switzerland
in which he said he was incapable of continuing work in such an important post. I accept his
resignation."
"Then I knew that the treatment will continue for four or five months, the economy cannot be
waiting for such a long time", Nazarbaev said a news conference Friday.
Kazhegeldin's role earned him many opponents, but also may have made him one of the few
serious rivals to Nazarbaev, a western diplomat said.
Some analysts say that worried by his own failing popularity (there was a wave of
anti-government protests throughout Kazakhstan last week), Nazarbaev has found a useful
scapegoat in Kazhegeldin for the hardships that have accompanied market reforms. He also
characterized the outgoing premier's reform record as "bleak."
Indeed, Kazhegeldin, 45, a successful businessmen until becoming prime minister in October
1994, had been seen by foreign investors as a guarantor of market reforms and their multi-billion
dollar investments in the former Soviet Republic. Kazhegeldin's reforms, under the watchful eye
of the International Monetary Fund, saw Kazakhstan, a tract of arid steppe land the size of
western Europe, start to turn the corner this year.
The tenge currency is stable, inflation has been brought under control and an unprecedented
fire-sale of state enterprises to foreign investors is almost complete.
"I would say this event does not change my view on Kazakhstan," Eric Fine, London-based
analyst at Morgan Stanley and Company International, said of Balgimbaev's appointment.
But recently he had been under fire from influential business and political forces opposed to his
reforms. There was no immediate word from Kazhegeldin or his successor.
Balgimbaev fought a bitter behind the scenes battle with Kazhegeldin in which he attempted to
slow down the pace of energy sell-offs. "I understand Balgimbaev was a man who had his own
agenda, who wanted to make sure that he had some kind of oil firm left after mass
privatization,'' said a Moscow-based energy analyst.
"My view is that probably these changes do not make that much difference," said Stuart Amor,
oil and gas analyst with Credit Suisse First Boston. "New faces in the government are less
important than a change of heart by the President."
New Kazakhstan Government
Appointed
President Nazarbaev has began to staff the new government, which will best implement his
strategy and bring less contradictions in the relationships President -Government than the
outgoing Premier's government. The president has not done many replacements though, the new
government seems to be more conservative than the former one.
Western analysts say that the formerly warm oil climate was chilled by the government's new
reshuffle. The disappearance of two such Western minded economic leaders as Kazhegeldin and
Marchenko is bound to unsettle the foreign oil community, which is eyeing Kazakhstan's huge
untapped energy resources, western observers say.
However, both Kazhegeldin and Marchenko stressed that their resignations should not derail the
path of reforms, which they said was irreversible. The West's oil industry will want to believe
them.
Local observers, who had been keen in incandescing atmosphere over the possible resignation of
the Premier before it happened, are mostly pessimistic about the future. They see the reason for
the recent government re-shuffling in the opposition President Government, which was realized
as Kazhegeldin-Zhakiyanov, who is the head of the Agency for Strategic Resources Control, a
governmental body totally accountable to the President.
They also say that the Agency was formed to limit the premier's weight in the negotiations with
foreign investors over the privatized industrial giants. The newspapers also see confirmation of
this version in the fact that on investigating a number of contracts, the Agency reported to the
president certain violations of the government's terms, which later resulted in termination of the
contracts. The aim for re-structuring the government and establishing new agencies accountable
to the president, local analysts say, is "to show people who is the master in the country".
There is another version of the reason for government reshuffle, expressed by Dmitriy Soloviev,
Reuter, who says "One of Nazarbayev's sons-in-law was Balgimbayev's deputy in Kazakhoil.
Blood and clan ties are very important in the Central Asian state of 16.7 million people".
Some analysts played down the significance of personnel changes in the government, even at the
very highest level. The key factor throughout the transition phase has been the presence of
strongman President Nursultan Nazarbayev, who enjoys sweeping executive powers and
tolerates little opposition of the country with population of 16.7 million people.
The following is the new Cabinet of Ministers, appointed by the President.
Mr. Sarsenbaev was appointed the Minister of Information and public accord, a newly
established Ministry. Formerly he headed the national press and mass media agency.
Mr. Baurzhan Alimovich Mukhamedzhanov was appointed the Minister of Justice instead of
Kolpakov.
Mr. Galimov was appointed the chairman of the State Committee for capital move to Akmola.
Mr. Ahmetzhan Yesimov was appointed the Chairman of the State Investment Committee and the
First Deputy Prime Minister.
Presidential decrees reappointed Kasymzhomart Tokayev as the ex-Soviet state's foreign
minister, the state-owned Khabar television said on Monday. Vladimir Shkolnik will retain his
post as science minister
Mr. Alexander Pavlov was appointed Deputy Prime Minister and the Minister of Finance.
Mr. Erzhan Utembaev waxa ppointed chairment of the agency for strategic planning, which was
formed to control and elaborate state budget.
In an address to his nation of 16.7 million people on Friday, Nazarbayev said an ideal
government should consist of no more than 18 people, including the prime minister, his two
deputies and 15 ministers.
Kazakhstan's National Securities Commission chairman Grigory Marchenko resigned over what
he said was feet-dragging by the government on key stock market developments.
Baltabek Kuandykov, former president of state oil concern Kazakhstancaspiyshelf, takes over
from Balgimbayev at the helm of state oil company Kazakhoil.
Balgimbayev Nurlan Utepovich, 50
Born on November 20, 1947 in Guriyev. Kazakh.
Graduated from Vladimir Ilyich Lenin's Kazak Politechnic Institute (1968-1973), as a mining
engineer. Fluent English.
Member of CPSU (up to 1991).
1964-1968 - Motorist and driller's assistant, turner of Karaganda Expedition, village of Eralievo,
Guryiev Region.
1968-1973 - worked at the Kazak Politechnic Institute.
1973-1977 - operator of well servicing, operator of oil production, foreman of well servicing,
head of a shift of central dispatch service, Chief engineer on well servicing, Association
Mangyshlakneft, village of Zhetybay, Mangyshlak Region.
1977-1979 - Deputy Director of Production Services Base, village of Akkistau, Guriev Region.
1979-1981 - Chief Engineer of Oil refinery, company Zhaikneft, production Association
Embaneft, village of Akkistay, Guryiev Region.
1981-1986 - Chief Engineer, Association Aktyubinskneft, city of Aktyubinsk.
1986-1992 - deputy Manager of Production Association Glavneftegaspererabotka ( oil and gas
refinery), production scientific department, Oil production Department, Ministry of Oil and Gas
Industry of the USSR, Moscow.
1992-1993 - studied at Masachusetts University, Boston (USA).
1993-1994 a trainee at Chevron, San-Raton (USA).
October 1994 - Minister of Oil and Gas Industry of RK.
March 1997 - President of National company "Oil and Gas".
October 10, 1997 - Prime Minister of the Republic of Kazakhstan
Kuandykov Baltabek Mukhanovich, 49
Born on August 21, 1948, village of Makat, Makat District, Guriyev Region. Kazak. Father-
Kuandykov Mukhan (1907-1968), veteran of the Great Patriotic War, a driver. Mother -
Seisembayeva Kulsagi (born in 1913), a housewife.
Graduated from Lenin Kazak Polytechnic Institute in Alma-Ata (1966-1971), an oil
engineer-geologist. Candidate of Geology and Mineralogy (Moscow, 1986). Thesis
-"Peculiarities of Geological Structure, Types of cross-Sections of South-East of Pre-Caspian
Depression". Author of 4 monographs and over 30 scientific articles.
Member of CPSU (1974-1991).
1971-1975 - Engineer -Geologist of Biikzhal oil exploration expeditions specializing on
superdeep drilling.
1975-1977 - Instructor of Emba District Committee of CPK, GuryevRegion.
1977-1979- Secretary of Guriyev Regionl Committee of YCLK.
1979-1982 - Senior Geologist, Deputy Manager of Geological company Kazneftegasgeology (oil
and gas exploration), Guriyev.
1982-1986 - Head of Geological Department of Guriyevneftegasgeologiya company (oil and gas
geology).
1991-1992 - Head of Department of State Committee on Geology and Underground Resources
Preservation of RK.
1992-1993 - Deputy Minister of Geology and Underground Preservation of RK.
1993-1994 - Deputy Minister of Energy and Fuel Resources of RK.
He has been the President of State Company Kazakhstancaspishelf since February 1994.
Military rank - captain in reserve.
Has the title of honorable Worker of Industry of RK (1991)
Married. wife - Kuandykova Aktoty Bagitovna (born in 1948). Has five children.
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