Cablegate: Kazakhstan: Gala Celebration Marks 50 Years For

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UNCLAS SECTION 01 OF 02 ASTANA 000132

SENSITIVE
SIPDIS

STATE FOR SCA/CEN

E.O. 12958: N/A
TAGS: PGOV PREL PINR ECON EINV SOCI RS KZ
SUBJECT: KAZAKHSTAN: GALA CELEBRATION MARKS 50 YEARS FOR
CHAMBER OF COMMERCE AND INDUSTRY

REF: 09 ASTANA 2157

ASTANA 00000132 001.3 OF 002

1. (U) Sensitive but unclassified. Not for public
Internet.

2. (SBU) SUMMARY: On January 27, the Chamber of Commerce
and Industry -- a state-sponsored business association that
supports the development of small- and medium-sized
enterprises -- held a lavish, gala celebration to mark its
50th anniversary. The presidents of the Russian,
Belarusian, and German Chambers of Commerce were among more
than 200 people in attendance and delivered letters of
congratulation and pledges of support. END SUMMARY.

3. (SBU) The Chamber of Commerce and Industry of the
Republic of Kazakhstan (the Chamber) celebrated its 50th
anniversary on January 27 with an impressive -- if somewhat
self-congratulatory -- show that included a star-studded
cultural program, formal speeches and official letters, an
employee awards ceremony, and a lavish, four-course meal
and open bar. More than 200 business leaders, diplomats,
and government officials attended the affair, including the
ambassadors of Russia, Germany, The Netherlands, India,
Georgia, Ukraine, and the UAE, but the majority of the
audience appeared to come from regional branches of the
national organization. No high-profile business leaders or
senior government officials were in attendance.

4. (SBU) The Chamber was established in 1959 by a decree
of the Council of Ministers of the Kazakh Soviet Socialist
Republic, and has been in operation ever since. In 2005,
it was officially registered as a non-governmental
organization, and claims to represent the interests of more
than 40,000 small- and medium-sized enterprises (SMEs) in
Kazakhstan. The Chamber has offices in each of
Kazakhstan's 16 oblasts and its network of regional
organizations represents the largest single business
community in Kazakhstan. More than 1500 organizations
claim membership in the Chamber, which provides market data, trade
mission support, quality assurance, and legal advice to its
members. It maintains partnerships with 72 foreign
counterparts, particularly the Russian and Belarusian
Chambers of Commerce. It also established 10 regional
courts of arbitration for the resolution of business
disputes. According to the president of the Chamber,
Yerlan Kozhasbay, "one of our highest priorities is to
present the interests of local businesses to foreign
partners and investors. It is important that they trust
our businesses and understand Kazakhstani
entrepreneurship."

5. (SBU) Kozhasbay clearly enjoyed being on center stage
during the gala celebration, playing host with grace and
charm. A young, savvy, well-connected businessman with an
MBA from Moscow State University, Kozhasbay
worked at national railway company Kazakhstan Temir Zholy
from 1997 until 2002 when he was implicated in
embezzlement charges filed against former Minister of
Transportation and Communications Ablay Murzakhmetov.
Although he was identified by the General Procurator's
Office as a "person of interest," charges against Kozhasbay
were never filed. The Chamber's Vice President, Serikzhan
Mambetalin, appears to be in his late 30s, speaks fluent
English, and completed an MBA at the Kazakhstan Institute
of Management, Economics, and Strategic Research(KIMEP) in
Almaty. He himself provided the English translation during
Kozhasbay's speech to the assembled dignitaries.

6. (SBU) The evening had a very strong Soviet style and
structure, from cherubic children in formal attire singing
in a choir, to pledges of fraternal fidelity from the
Russian and Belarusian Chambers of Commerce, to the glitzy

ASTANA 00000132 002.3 OF 002

appearance of Roza Rymbayeva, a middle-age megastar from
the 1970s, who sang ABBA's "The Winner Takes It All" to
resounding applause. Other performances throughout the
evening, interspersed with speeches and awards, included a
pas de deux from Swan Lake, a violin virtuoso, a dozen boys
on the dombra, and sexy girls in short skirts playing sax
and singing. That last act got the crowd on the dance
floor. The emcees for the evening -- well-known television
anchors of a popular entertainment program -- spoke both Russian
and Kazakh, and kept the show moving at a brisk pace.

7. (SBU) A representatives from the Chamber read letters
of congratulations from President Nursultan Nazarbayev,
Senate President Kasymzhomart Tokayev, and Prime Minister
Karim Masimov, while the presidents of the Russian,
Belarusian, and German Chambers of Commerce read their
letters aloud, barely audible above the buzz of casual
conversation.

8. (SBU) COMMENT: The Chamber of Commerce and Industry
has an impressive network, both in Kazakhstan
and with its immediate neighbors, and Kozhasbay certainly
knows how to throw a party. Nevertheless, the overwhelming
impression of this parastatal "private sector" association
is that it has yet to fully shake its Soviet legacy. END
COMMENT.

SPRATLEN

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