Economic Relations between Kazakhstan and Russia

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In choosing a promising export and import specialization, Kazakhstan and Russia should give preference to commodities that are least susceptible to market fluctuations. To achieve this, it is necessary to conduct regular analysis and forecasting of the situation on the markets for the principal import and export commodities, favoring long-term agreements on their purchase/selling over one-off deals.

In the medium-term perspective, transition should be effected from restrictive policies to encouragement, consistently facilitating the formation of a progressive, structure of exports and creating a corresponding system of its state support.

Analysis of export/import operations of foreign trade companies and enterprises shows that, in the absence of combined controls over exports and currency and of an obligatory norm of currency sales, 1 all export earnings reach the republic. According to Kazakhstan specialists calculations, some $0.6-0.8 billion end up on the accounts of Kazakhstan enterprises in the countries of near and far abroad. According to Russian experts, corresponding figures for Russia range from $5 to $17 billion. In this connection, one of the main tasks of management of foreign trade activities of the two states is the setting up of systems of customs control over export and import contracts and banking control over currency earnings, investments, and other commodities.

In future, it is advisable to step up coordination of information systems of control over repatriation of currency earnings by the customs bodies and the banking system, which will permit a concentration of efforts on securing maximum currency earnings from exports.

It is advisable to restrict the decisive role of the state in foreign economic activity to internationally recognized standards, to be implemented in accordance with the rules and norms of the World Trade Organization.

It is also advisable, in a situation of considerable reduction of the share of state property, to export and import commodities in state interests only within the framework of intergovernmental agreements, which must not include any privileges or tax or duty exemptions. For this purpose, the possibility is created for domestic purchases on a competitive basis.

The state policy of selective protection in relation to promising exporting industries and conquering foreign markets gradually becomes one of the main priorities of economic policy as a whole; it is called, upon to prepare the implementation of a really proactive export policy, without which it is impossible to ensure either the payment of foreign debts, or internal financial stabilization, or investment activity and employment.

Another important task is the achievement of favorable trading procedures-in relations with foreign countries and their trade and economic groups, organizations, and unions, as well as the lifting of existing discriminatory restrictions, and prevention of new ones, with regard to the member states of the customs union.

To solve this task, plans are made to work consistently and purposefully toward the entry of Kazakhstan and Russia in the World Trade Organization, to harmonize our countries' legislative systems with international norms and principles, and to implement the agreement on partnership and cooperation with the European Union and agreements with other countries.

Formation of new economic relations with states of the near abroad will require a longer that previously believed period of time and a gradual and coordinated advance toward generally accepted international norms of organization.

The future economic policy of Kazakhstan in relation to Russia and the countries of the near abroad must have the following goals development and rationalization of cooperative economic links in terms of minimizing expenditure and increasing competitiveness;

The utilization of transit communications serving the export/import commodity flows from Customs Union members to third countries;

Cooperation and coordination of CIS countries' efforts in the restructuring of production and in optimizing the distribution of production forces. An active economic policy in relation to countries of the near abroad is seen as one of the levers for the rehabilitation of the economy and creating conditions for its upward swing.

Particularly important in the economic relations of Kazakhstan and Russia is the creation of conditions for establishing horizontal links between agents operating on the market, the use of new forms of economic cooperation, such as joint ventures, transnational production, commercial, and financial structures, and of financial-industrial groups.

: 18/07/2008