Foreign policy course of Independent Kazakhstan

With the acquisition of sovereignty, the republic faced the need to develop and implement its own foreign policy. The concept of Kazakhstan's foreign policy was determined by the President of the Republic N.A. Nazarbayev in his work «Strategy of the formation and development of Kazakhstan as a sovereign state», published in May 1992. «The main goal of foreign policy», it says, «is the formation of a favorable external environment and support for the country's stable development on the basis of political and economic reforms». The authors consider the long way that Kazakhstan has traveled since independence. The multivector foreign policy of Kazakhstan, emerged at the dawn of independence, was able to contribute to the strengthening of sovereignty and statehood, the country's entry into the system of international relations and world economic relations. Over the years, the Republic has become a full member of the international community. Its initiatives have almost always received international support and were put into practice. The Republic established stable and predictable relations with all neighbors. There is an international image of the republic as a serious and reliable partner.

One of the most successful post-Soviet republics, the Republic of Kazakhstan, in just 21 years of its independence is widely recognized in the modern world and has become an important player in complex global politics. At the same time, the country's economy is developing successfully, its numerous bilateral relations are successfully developing with almost all countries of the world, including with the countries of the Arabian Gulf region.

Over the years of independence, Kazakhstan has achieved significant foreign policy successes in the world arena, has become an authoritative and responsible member of the world community.

The chairmanship of the Republic of Kazakhstan in the Organization for Security and Cooperation in Europe, the Eurasian Economic Community, the Shanghai Cooperation Organization, the Organization of Islamic Cooperation, the Collective Security Treaty Organization and the Turkic Council has become a testament to the high international prestige of the state in recent years.

Priority in the foreign policy of Kazakhstan was given to the relations with Russia. This is understandable. Russia accounted for 66 % of all that Kazakhstan imported from abroad at the time of independence. In turn, Kazakhstan supplied to Russia more than two thirds of its exports, with 80 % of exports being raw materials and semi-finished products. Of all agricultural products, 40 % was supplied to Russia. In 2000, Russia continued to be the main economic partner of Kazakhstan: the 1-st place both in exports and imports [1].

Trade and economic relations between Russia and Kazakhstan:

• of the 89 regions of the Russian Federation, 72 have trade and economic ties with the Republic of Kazakhstan,
• the most active participants in foreign trade with Kazakhstan are the border regions of Russia,
• on the whole, 80 % of Russia's foreign trade turnover with Kazakhstan falls on 16 regions of the Russian Federation out of 72,
• an important place in the Russian-Kazakh ties is cross-border cooperation, which accounts for 71.5 % of the total turnover,
• Omsk, Orenburg, Astrakhan, Chelyabinsk, Novosibirsk regions and the Altai territory most actively develop trade and economic ties with the border regions of Kazakhstan,

More than 300 joint ventures operate in the Russian-Kazakh border zone, interstate associations such as Kazrokhrom, Koksohim, an automobile complex based on the UralAz and Kustanai diesel plant.

Cooperation in oil and gas and energy:

• intergovernmental agreement of 2010 «On trade and economic cooperation in the field of oil and oil products supplies»;
• in the oil and gas industry, cooperation is also developing along the lines of joint development of Kazakhstan deposits;
• Russia takes the fourth place in projects on subsoil use in the territory of the Republic of Kazakhstan;
• investments in this sector are represented by two Russian investors — ANK Bashneft and OAO LUKOIL.

Cooperation in the field of transport and communications:

• the most promising areas for the development of bilateral relations between Kazakhstan and Russia;
• both states in the context of the development of transport cooperation are of strategic importance for each other,
• Kazakhstan and Russia are closely connected by transport communications.

Development of Russian-Kazakh trade and economic relations in 2014:

• Kazakhstan in the trade turnover of Russia took 11th place among all Russian foreign trade partners, and Russia — the 1st place in Kazakhstan's trade with other countries;
• according to the information of the Financial and Trade Union (FCS) of Russia, this indicator in the past 2014 grew by 2.8 % and amounted to 26.5 billion dollars;
• the share of machinery and technical products in Russian exports was 24 %, fuel and energy products — 29 %, metals — 16 %;
• in the Kazakhstani deliveries to Russia, the chemical industry products account for 14 %, machine and technical products — 10 %, metals — 24 %, fuel and energy — 41 %.

Investment cooperation:

• 20 large Russian companies, such as OAO Gazprom, OAO LUKOIL, Rusal, Mechel OAO, AvtoVAZ, EuroChem;
• in 2014, special attention was paid to the implementation of investment projects between Russian and Kazakh companies in the field of economic modernization;
• according to experts, in 2014 the gross inflow of direct Russian investments into the economy of the Republic of Kazakhstan amounted to 1.3 billion dollars;
• in 2014, 14 large investment projects were realized for a total of $ 1.9 billion, at the same time, there were 12 projects worth $ 16.1 billion at various stages of implementation, and 7 projects worth $ 277 million were planned for the future;

Prospects for cooperation in the investment sphere:

• in the field of electric power industry, the main result of cooperation is the creation of a competitive and liquid general electricity market within the framework of the Unified Energy System by 2019;
• cooperation in the aviation industry, in the space sphere and in the peaceful use of atomic energy can also be identified among the promising areas;

Development of small and medium business:

• currently, about 10,500 representative offices and enterprises with the participation of Russian capital are registered in the republic. Five years ago this figure was 4 thousand;
• entering Kazakhstan, the Russian enterprise becomes not only an employer, but also a Kazakh taxpayer;
• Eurasian integration allows minimizing costs, increasing the scale of production and expanding the scientific and technological base of the participating countries. This will activate the scientific and technical potential of Kazakhstan and restore the production of high-tech products with high added value;
• in turn, Kazakhstani enterprises have established the supply of their products to Russia: JSC «Kaynar AKB» — a factory for the production of batteries in Taldykorgan, Kentau Transformer Plant, JSC «Rakhat», Almaty Fan Factory, Almaty Heavy Machinery Plant (pipe-rolling equipment), Stepnogorsk Bearing Plant [2].

The deliveries of cargo vehicles assembled at the Kazakhstan enterprise are arranged.

Cooperation in the field of security and military-technical sphere:

• Kazakhstan and Russia already have a legal framework for cooperation in the military-technical sphere, which includes both bilateral agreements and participation in multilateral cooperation structures, such as the CSTO and the SCO.
• at present, military equipment and property, components and equipment are being supplied on a bilateral basis.
• issues of joint activities on the use and development of the technical and production potential of the Baikonur cosmodrome, the issues of increasing the participation of Kazakhstan specialists in scientific projects at the cosmodrome.

The countries of Europe occupy one of the key places in the multi-vector policy of Kazakhstan. This is noted in many agreements and documents. Diplomatic relations between Kazakhstan and the European Union were established at the beginning of 1993, and already at the end of the year, the Kazakhstan Mission to the EU in Brussels was opened.

Kazakhstan occupies an insignificant share in the EU turnover, although it is its main partner in the CAR. According to the results of 2012, the main trade partners of the EU — the USA, China and Russia accounted for 40 % of foreign trade, or 14.1 %, 8.6 % and 17.3 % respectively. The share of Kazakhstan in 2012 amounted to 0.7 % of the EU trade. For Kazakhstan, the EU is a key trading partner along with Russia, China and Ukraine, which now account for more than 75 % of Kazakhstan's total foreign trade.

Relations with key partners of Kazakhstan are of a stable nature, and deviations in the dynamics of trade turnover are largely related to changes in the world economic conjuncture in the mineral resources market. The EU countries occupy the largest share in the total trade turnover of Kazakhstan. In 2012, the share of the EU in the turnover, exports and imports of the Republic of Kazakhstan amounted to 32.5, 39.4 and 28.5 %, respectively [3].

The nature of trade relations with European countries is determined, on the one hand, by the dependence of Europe on external energy resources, with another underdevelopment of the Kazakhstan market of manufactured goods. At the same time, the dynamics of trade relations between Kazakhstan and the European Union has a different character. So, for the period since 2005, there is no pronounced tendency to change the share of Europe in Kazakhstan's exports and imports, while in the European exchange of goods for the same period, the tendency of increasing the share of export-import transactions of Kazakhstan, which may, with some reservations, degree of interest in trade cooperation with the European side.

The main European trading partners of Kazakhstan are Italy, France, the Netherlands, Germany, Austria and the United Kingdom. They account for 75.5 % of Kazakhstan's trade with the EU. The largest European buyer of Kazakhstan's products is Italy, which accounts for 30 % of Kazakhstan's exports to the EU countries, the main European supplier of goods for Kazakhstan is Germany, whose share in the total volume of Kazakhstan's imports is 26.3 %.

The share of the European five largest trading partners of Kazakhstan today accounts for more than half of the 50.7 % of foreign direct investment in the country. In total, the flow of foreign direct investment from the EU countries determines the positive dynamics of the total volume of FDI's gross receipts to Kazakhstan, regardless of the situation on the world financial market, especially in the period from 2007 to 2009, when the inflow of direct investment from other investors tended to reduction [4].

There was a tendency to strengthen not only trade but also investment cooperation between the European Union and Kazakhstan, although the sharp outflow in recent years of Kazakhstan's capital in general, and in particular to the EU countries, is only partially explained by investment in the production sector, since the bulk of investments accounted for trade cars and real estate transactions.

The EU's trade relations with its main partners are largely determined by its needs in external energy resources, and Kazakhstan is no exception, as evidenced by statistics on the commodity structure of EU exports and imports to the outside world and Kazakhstan. Thus, the largest share in the commodity structure of exports and imports of the countries of the European Union falls on two product groups: machinery, equipment, vehicles 7 group; mineral products 3 group.

It should be noted that Kazakhstan is becoming an increasingly active participant in world trade. However, in the commodity structure of Kazakhstan's exports to the European Union countries, the bulk of the share is accounted for by mineral raw materials, which corresponds to 89.3 %, and in the import from the countries of the European Union to Kazakhstan, machinery, equipment and vehicles account for 55.2 %.

For both groups of goods, the Kazakh share in exports and imports with the EU countries exceeds their average European value. This indicates, on the one hand, the already formed mutual interest in strengthening the existing structure of trade between the EU and Kazakhstan and expanding the potential of cooperation, on the other hand, the raw material nature of the economy of Kazakhstan, the need to change the sectoral structure and diversify exports in accordance with the Program of Forced Industrialization of Kazakhstan economy [5].

So, since 2000 the commodity structure of Kazakhstan's exports and imports has not undergone significant changes, mineral products predominate in the main range of export goods and intermediate industrial demand goods and investment goods — in the import.

Thus, the trade relations of the Republic of Kazakhstan and the European Union are stable and have an economic future, conditioned by the nature of the development of the European and Kazakh markets, thespecifics of the development of the European demand for energy resources and the features of Kazakhstan's international specialization. Nevertheless, the existing structure of commodity exchange does not meet the economic interests and prospects of Kazakhstan due to the need to implement the strategic goals of forced industrial-innovative development. The European Union, on the contrary, is economically interested in preserving the existing asymmetric structure of trade turnover before solving the problem of dependence of its economy on external energy resources.

The main task of Kazakhstan in promoting the idea of «Eurasianism» at the present stage is seen by us in providing the conditions for the formation of common strategic approaches from the European Union and Russia both on the implementation of the «single Eurasian continental project» with the participation of Kazakhstan as the main subject of government and projects on economic integration of the Central Asian region.

The formation of the concept of the relationship between the European Union and the new independent states began with the adoption in December 1992 by the heads of state and government of the EU member states of the Declaration of readiness to promote the process of democratization in the post-Soviet space. The agreements on partnership and cooperation of the PCA, signed in 1996 with Kazakhstan, Kyrgyzstan, Uzbekistan, confirmed the mutual interest of the parties in strengthening bilateral contacts. At the initial stage, the cooperation of the European Union with the Central Asian states was carried out within the framework of the TACIS program. The transition to a fundamentally new level of cooperation in EU relations with Central Asian countries began with the official approval in 2007 of the «Strategy for a New Partnership for the Period Until 2013».

To date, the EU's interest in the CAR countries, and in particular the RK, is due to two main reasons: first, it is obvious that in the process of implementing the EU's strategic interests in Central Asia, priority is given to issues of its own energy security. Diversification of energy sources, along with the development of a strong domestic market and environmental issues, is one of the three main priorities of the European energy policy. Interest in Central Asian hydrocarbons is due to the possibility of creating an alternative to dependence on US-controlled Middle East oil fields and on Russian energy diktat by 2030, when Europe plans to import 90 % of gas and 70 % of oil needed for domestic consumption; Secondly, Kazakhstan plays a new political and economic role in the region as a vehicle for the concept of «Eurasian centrism», based on the principles of unified continental security in all its dimensions [6].

Kazakhstan is interested in cooperation with European states on political, social, economic parameters. A feature of the current stage of relations between Kazakhstan and the European Union is, in our view, the willingness of both sides to review existing cooperation strategies in the light of the prevailing transcontinental realities.

New European initiatives within the framework of the Strategy for the CAR countries are linked by a number of European experts with the need to adopt a new version with a clearer list of the real tasks of the EU in the CAR aimed at: strengthening all-round cooperation with Kazakhstan as the key country in the region that seeks to strengthen ties with the EU and acquiring a new quality in the light of the successful chairmanship of the OSCE; ensuring European energy security, diversification of energy supplies in the face of the existing danger of losing the leading positions of the EU in the regional market and the harmonization of the European energy policy with the energy policy of the countries of the region in this regard; implementation of a new concept of regional cooperation with the CAR countries towards developing relations with neighboring countries outside the region — Eastern Europe, Russia, China, South Asia. The Asian vector, according to experts, will provide a comprehensive view on the issue of regional partnership in Central Asia, which will help to include this region in a broader geopolitical context and provide prerequisites for the emergence of a common Eurasian strategy.

For Kazakhstan, the European Union is today and remains in the future the main strategic partner in ensuring regional-Eurasian economic security. Therefore, in our opinion, the «way to Europe» for Kazakhstan presupposes, first of all, the expansion of the Eurasian space for the CAR countries, which, on the basis of a coordinated position on the issues of sustainable development of the region, could in the long term proceed to the implementation of joint European-Central Asian economic projects . On this aspect, it is advisable to pay attention in the process of implementing the «advanced partnership» project [7].

Kazakhstan with the European Union, it is also necessary to bear in mind the EU's interest in the membership of the republic in the WTO. Kazakhstan and the European Union are ready for a new stage in the development of economic relations. In our opinion, the Kazakhstan strategy regarding the EU should be considered as an integral part of the overall Kazakhstan-European economic partnership strategy. To do this, it isnecessary to take the following measures: Coordinate regional positions on issues of European cooperation with CAR countries. Identify common priorities for economic cooperation for the transition from the EU's bilateral cooperation with the countries of the region to the region-wide format of cooperation. Formulate proposals for the program for the development of economic relations between the SES countries and the EU. To participate in the development of a strategy for the development of the Eurasian continental geoeconomics. Ensure the interests of the CARs in the process of forming new general Eurasian strategic goals in the economic sphere.

Thus, Kazakhstan can become an equal partner of the EU, which becomes evident in the context of the new geo-economic situation in Eurasia and the prospects for regional integration in the format of the SES and the CAR. Kazakhstan has a clear position on the prospects for cooperation with the EU countries, which remains its key partner.

Kazakhstan and the European Union are mutually interested in strengthening partnerships and are ready to review and adjust economic cooperation strategies. The common strategic interests of the Republic of Kazakhstan and the EU in Eurasia are related to two continental projects, in which both sides are interested in one way or another: the single Eurasian continental project and the project of a single integrated space in Central Asia.

For Kazakhstan, it is important to adjust the strategic objectives of cooperation and ways to achieve them in accordance with the expected consequences of the ongoing policy of EU enlargement, the creation of the CES, and prospects for economic integration in Central Asia. Implementation of the project «United Continental Economic Space» is not possible without the participation of the Republic of Kazakhstan and should be implemented in stages. For the Republic of Kazakhstan, the main task of the first stage is to provide the conditions for the formation of common strategic approaches from the EU and the Russian Federation both on the implementation of the «single Eurasian continental project» with the participation of the ROK as the main subject of governance and in relation to projects on economic integration of the CAR [8].

Trade relations between Kazakhstan and the European Union are determined by the prospects for the development of the European and Kazakhstan markets, the specifics of the development of the European demand for energy resources and the features of Kazakhstan's international specialization. The existing structure of commodity exchange does not meet the economic interests and prospects of Kazakhstan. The European Union, on the contrary, is economically interested in preserving the existing asymmetric structure of trade turnover before solving the problem of dependence of its economy on external energy resources.

Kazakhstan is to realize its long-term economic interests in Europe in accordance with the specifics: the EU strategy for regional integration; mutual commodity exchange between the Republic of Kazakhstan and the EU; Kazakhstan international specialization and the program of forced development of industry in Kazakhstan; the European situation in the energy sector; modern Eurasian policy [9].

Representative offices of 18 Chinese companies are accredited in Kazakhstan, and about 70 joint ventures operate. The Chinese oil and gas company won a tender to sell 60 percent of Aktobe munai gas shares and is the winner of a similar competition for the Uzen oil field. The parties are working on documents on the construction of pipelines from, Western Kazakhstan to the border of the PRC and towards Iran. Xinjiang Design Institute won a tender for the best project for the construction of a new gas processing plant with a capacity of up to three million tons per year and the reconstruction of the Zhanazhol plant. Started traffic on the second air corridor — from the Kazakh Ayaguz to the Chinese Fukana [10].

The Agreement on Cultural Relations is also working more fully, on the basis of which contacts are being built between ministries and departments of the humanitarian sphere. As is expressed by diplomats, a stable and progressive character also acquires cooperation in the field of tourism and sports.

The main directions of the domestic policy of Kazakhstan are declared: the increase in the well-being of citizens, the strengthening of statehood, the modernization of society, intra-national unity and interethnic harmony [11].

The internal political life of Kazakhstan is built mainly on the liberal-socialist model, due to the fact that the authorities of Kazakhstan actually carry out the socialist planning of the country's economic and political life, but at the same time they allow for active market relations, which is very similar to the Chinese model. For corruption crimes and betrayal of the motherland in Kazakhstan, very severe punishments are provided.

Kazakhstan's foreign policy is based on historical and geopolitical traditions, economic priorities and strategic expediency.

Priority in the foreign policy of Kazakhstan was given to relations with Russia. This is understandable. Russia accounted for 66 % of all that Kazakhstan imported from abroad at the time of independence. In turn, Kazakhstan supplied to Russia more than two thirds of its exports, with 80 % of exports being raw materials and semi-finished products. Of all agricultural products, 40 % was supplied to Russia. In 2000, Russia continued to be the main economic partner of Kazakhstan.

Thus, the trade relations of the Republic of Kazakhstan and the European Union are stable and have an economic future, conditioned by the nature of the development of the European and Kazakh markets, the specifics of the development of the European demand for energy resources and the features of Kazakhstan's international specialization. Nevertheless, the existing structure of commodity exchange does not meet the economic interests and prospects of Kazakhstan due to the need to implement the strategic goals of forced industrial-innovative development. The European Union, on the contrary, is economically interested in preserving the existing asymmetric structure of trade turnover before solving the problem of dependence of its economy on external energy resources [12].

References

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2. Ashimbayev, M.S. (2001). Politicheskii tranzit v Kazakhstane: soderzhanie protsessa i eho osobennosti [Political transit in Kazakhstan: the content of the process and its features]. Almaty: Daik-Press [in Russian].
3. Vladimirov, V. (2007). Politika Rossii na yuzhnykh rubezhakh. Poisk novoi stabilnosti (2004–2005) [Politics of Russia on the southern borders. Search for a new stability (2004–2005)]. Razoruzhenie i bezopasnost 2004–2005: novye podkhody k mezhdunarodnoi bezopasnosti — Disarmament and Security 2004–2005: new Approaches to International Security. A.A. Arbatov (Ed.). Moscow, 270–276 [in Russian].
4. Zvyagelskaia, I.D. (2009). Hody, kotorye izmenili Tsentralnuiu Aziiu [Years that changed Central Asia]. Moscow: IV RAN, TsSPI [in Russian].
5. Zvyagelskaya, I.D. (2011). Avtoritarizm v Tsentralnoi Azii: ot starta i dalee (kakie dali on dohoniaet?) [Authoritarianism in Central Asia: from start and on (what did he catch up with?)]. Chto dohoniaet dohoniaiushchee razvitie — What catches up with catching up development. A.M. Petrov (Ed.). Moscow: YUNITI-DANA, 224–243 [in Russian].
6. Zubov, A.B. (1991). Parlamentskaia demokratiia v nezapadnykh obshchestvakh [Parliamentary democracy in non-Western societies]. Moscow: Prospekt [in Russian].
7. Intehratsiia v Yevrazii. Sotsiolohicheskoe izmerenie [Integration in Eurasia. Sociological measurement] (2008). Moscow: INAS [in Russian].
8. Kurmanov, Z. (2004). O problemakh partoheneza v Kyrhyzstane [About problems of partogenesis in Kyrgyzstan]. Tsentralnaia Aziia i Kavkaz. Luleo (Shvetsiia) — Central Asia and the Caucasus. Luleå (Sweden), 5 (35), 9–14 [in Russian].
9. Yeskaraiev, O.K. (2010). Hosudarstvennoe rehulirovanie rynka v Respublike Kazakhstan [State regulation of the market in the Republic of Kazakhstan]. Almaty: Bilim [in Russian].
10. Kazakhstan-Kitai. 5 let po puti dobrososedstva i sotrudnichestva [Kazakhstan-China. 5 years on the path of goodneighborliness and cooperation] (1997). Almaty: Sanat [in Russian].
11. Nazarbayev, N. (1994). Kazakhstan: vzhliad na mirovoi poriadok, razvitie i demokratiiu [Kazakhstan: A View on the World Order, Development and Democracy]. Kazakhstan i mirovoe soobshchestvo — Kazakhstan and the World Community, 1, 3–12 [in Russian].
12. Myrzaliiev, B.S. (2007). Hosudarstvennoe rehulirovanie ekonomiki [State regulation of the economy]. Almaty: Nur-Press [in Russian].