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Friday, 16 June 2006

KAZAKHSTAN SIGNS PIPELINE ACCORD

Published in News Digest

By empty (6/16/2006 issue of the CACI Analyst)

Kazakhstan moved to reduce its dependency on Russia on Friday, signing a US-backed agreement to supply oil for a key Caspian-Mediterranean pipeline that will provide an alternative energy source for Europe. The agreement signed by Nursultan Nazarbayev, president of Kazakhstan, and Ilham Aliyev, president of Azerbaijan, resolves one of the outstanding issues to be settled before a long sought-after visit to the White House by Mr Nazarbayev, analysts said. A spokesman for the Kazakh embassy in Washington said the two sides were working on a date for the visit, expected in the coming months.
Kazakhstan moved to reduce its dependency on Russia on Friday, signing a US-backed agreement to supply oil for a key Caspian-Mediterranean pipeline that will provide an alternative energy source for Europe. The agreement signed by Nursultan Nazarbayev, president of Kazakhstan, and Ilham Aliyev, president of Azerbaijan, resolves one of the outstanding issues to be settled before a long sought-after visit to the White House by Mr Nazarbayev, analysts said. A spokesman for the Kazakh embassy in Washington said the two sides were working on a date for the visit, expected in the coming months. Dick Cheney, US vice-president, went to Astana last month to reaffirm support for Mr Nazarbayev, whom he described as a strategic partner, despite concerns over Kazakhstan’s human rights record, including the high-profile assassination of an opposition politician and the conduct of presidential elections last December. Mr Aliyev was welcomed to the White House in April for a visit that had also been put off over concerns about elections in Azerbaijan and treatment of the opposition. The US is the biggest foreign investor in Kazakhstan, rich in oil and gas but historically dependent on Russia, its former overlord, for export routes. China has also become a recent customer as it seeks to diversify its sources of energy. Analysts said the White House would have been particularly satisfied to note that the signing on Friday took part even while Vladimir Putin, Russian president, was in Kazakhstan to attend a regional, 17-nation conference. (The Financial Times Limited)
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