World Monitor Magazine, Business and Investments WM_march 2019_web | Page 24

DESTINATION europe
EU and Kazakhstan:
long-term partnership and perspectives
The European Union is one of the key investors to Kazakhstan. We in WM have talked to EU
Ambassador to Kazakhstan His Excellency Sven-Olov Carlsson to know more about the investment
plans and strategic cooperation.
Sven-Olov Carlsson,
Ambassador,
Head of the EU delegation to
the Republic of Kazakhstan,
EUROBAK Honorary Board
Member
In the investment plan, for the first half
of 2018, $ 12.3 billion was attracted
to the Kazakhstani economy, which
is 15% higher compared to the same
period in 2017 (in 2017, $ 9.8 billion).
What are your ideas with regard to
the strengthening of investment and
export directions of Kazakhstan-
European relations? We all know the progress made
by Kazakhstan according to most
international indexes and the steps taken
to improve the investment climate. Still,
the perceptions of investors have not
necessarily changed at the same rate, and
perceptions are realities when it comes to
making investment decisions, especially in
sectors more exposed to risk.
Certainly these are encouraging figures.
What I also note of the most recent
investment data is that the investment
originating from the EU to Kazakhstan
remains very substantial, both in terms of
the accumulated investment (or ‘stocks’)
and in terms of annual flows. According to
the National Bank of Kazakhstan data in
2018 the EU has invested in the country
several times more than China (or Russia)
– a reality to be borne in mind and a solid
basis when considering the potential for
further cooperation. A lot remains to be done in terms of
removing non-tariff barriers, most
notably in the agro-food sector, and to
improve the application of sanitary and
phytosanitary controls, approval of export
companies, to name just two obstacles
that do not necessarily need big political
decisions, but better communication and
streamlined administrative procedures.
We have proposed, for example, to set-
up a common working group between the
European Commission and Kazakhstan to
solve in a practical way outstanding issues
in the agricultural sector. We look forward
to a positive reply from the authorities.
At the same time, what is more
worrying for the prospects of economic
diversification
is
the
continuing
concentration of investment in the
extractive sector. The same applies to
Kazakhstan’s exports towards the EU,
which while growing are still to 90 per
cent concentrated on energy, metals and
minerals.
In my view we need to inject more
dynamism to strengthen our economic
relations. This starts from determination
in implementing structural changes.
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Beyond technical cooperation however,
reducing the State footprint in the
economy to OECD-levels is crucial, by
introducing new management practices
and opening up more room for the private
sector to operate.
We have followed with interest the
progress of involving investors and
management know-how in major state-
owned enterprises through international
public offerings: the sale of Kazatomprom’s