28 October 2014 | 18:54

Kazakhstan and Japan develop ties

©Turar Kazangapov

A direct flight between Kazakhstan and Japan may be launched to facilitate the development of bilateral ties between the two countries, Tengrinews reports.

“It is important to launch a direct flight between Kazakhstan and Japan. Movement of the people and goods is necessary for further development of the bilateral cooperation. I heard that Kazakhstan is at the stage of regulating security issues with the ICAO (The International Civil Aviation Organization) to launch the direct flight,” Ambassador of Japan to Kazakhstan Masayoshi Kamohara said at the fifth session of the Intergovernmental Commission for Economic Cooperation between Japan and Kazakhstan.

“We are conducting negotiations between the aviation authorities of the two countries to reestablish the direct flight. We hope our national airline Air Astana will achieve the results soon,” Ambassador of Kazakhstan to Japan Akylbek Kamaldinov said.

Kazakhstan and Japan have a huge potential for bilateral cooperation, Karim Massimov, Prime-Minister of Kazakhstan, said naming nuclear industry, space industry and agriculture as the most promising areas. "Our economies complement each other. Japan has the most advanced technologies, while Kazakhstan has natural resources and hardworking people. I think we have a huge potential for the development of cooperation,” Karim Massimov said.

Besides, Kazakhstan's Prime Minister instructed the Government to consider setting up joint production of hybrid and electric cars in Kazakhstan. “Today a suggestion was made to produce hybrid and electric cars, but it will require concessions and incentives from the government. Asset Orentayevich (Isekeshev – Kazakhstan’s Minister of Investments and Development), you should consider this matter carefully,” he said.

Kazakhstan is the most attractive country in the Central Asian region for Japanese investments. Japanese firm could produce their goods in Kazakhstan and then export them to the neighboring markets, Kazakhstan's Minister of Investments and Development Asset Issekeshev said. “Kazakhstan is a member of an economic union with Russia and Belarus, and we are in the process of entering the WTO (World Trade Organization). Kazakhstan's location in this region is important for Japanese companies. Kazakhstan is a perfect place for Japanese investments. Here this country's firms can produce their goods and then enter the markets of Russia, Central Asia, Western China, and Middle East through Iran,” Asset Issekeshev is quoted as saying by primeminister.kz.

In 2013, trade turnover between Kazakhstan and Japan made $1.7 billion.

Japan is one of the largest investors in Kazakhstan. In 2013, the volume of foreign investments of Japanese companies in Kazakhstan's economy exceeded $4 billion.

To improve conditions for foreign investments, including for those coming from Japan, Kazakhstan prepared a comprehensive package of incentives for foreign investors. It includes simplified visa regime for 10 countries that are Kazakhstan's largest investors - Japan is one these countries - and subsidies to cover a portion of investors’ costs.

To ensure the safety of Japan's investments in Kazakhstan, the agreement on mutual protection of the investments was signed between Kazakhstan and Japan at the meeting. “It is a landmark event for both countries that will serve to ensure safety of Japanese companies' investments,” Karim Massimov said.

The fifth meeting of the Intergovernmental Commision on Economic Cooperation took place in Astana. More than 200 delegates including the representatives of Japan's leading companies such as Mitsubishi, Toshiba, Toyota Tsusho, Japan Atomic Company and Marubeni Corporation attended the event to discuss a wide range of issues related to cooperation in investments, transport, innovations and tourism.

Reporting by Renat Tashkinbayev,writing by Assel Satubaldina, editing by Tatyana Kuzmina

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