Environment and Security: Transforming risks into cooperation

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Environment and Security

30. Kazakhstan plans to increase gas production in the Caspian Sea region from today’s 29.6 billion cu m in 2007 to 114 billion cu m in 2020 (KazMunaiGaz). 31. Both provinces have large marine terminals; Man- gystau is investing in modernizing its existing ports and building large new ports. 32. In certain cases, the existence of valuable natural resources can encourage political entrepreneurs to secede or seize areas as a means of controlling their revenue streams, which is sometimes called the “honey pot” effect (de Soysa, 2000). 33. Sources: UNICEF 2004; CEP 2006 a; Turkmenmillii- hasabat - National statistics of Turkmenistan: data for 1991-2005. 34. Sources: Chulanova, 2007 and Ministry of Natural Resources and Environment Protection of the Republic of Kazakhstan 2001; Agency of the Republic of Kaza- khstan on statistics. Online data: http://www.stat.kz/ RU/Pages/default.aspx). 35. Sources: Chulanova, 2007 and Ministry of Natural Resources and Environment Protection of the Republic of Kazakhstan 2001; Agency of the Republic of Kaza- khstan on statistics. (Online data: http://www.stat.kz/ RU/Pages/default.aspx). 36. This is especially the case when perceived differences of treatment and salary between local and foreign work- ers can foster discontent and even spark clashes. Some observers consider the incidents in October 2006 at the Tengiz oilfieldwhere clashes erupted between Kazakh and foreign oil workers (mostly Turks and Filipino) an example of this situation. See Joanna Lillis, “Oilfield Brawl Dents Kazakhstan’s Image”, Eurasianet article accessed on 21 November 2006. In June 2008 nearly 600 workers of the Italian ENI oil company operating in the Balkan velayat of Turkmenistan went on strike when salaries suddenly lost 50% of their value after the levelling of the official and market exchange rates for the local currency (the Manat) to the foreign currency. Sixty-two workers were arrested when troops from the Ministry of Interior intervened to end the strike. Source: http://www.dw-world.de. 37. Chulanova (2007: 15) reports also that in the Atyrau province, there is a ninefold wage gap between the oil-ex- tracting region of Zhylyojskiy and the rural Mahambetskiy. 38. Compared to the 18% of the average poverty level in Kazakhstan in 2007; 9,608 KZ Tenge was the average per capita subsistence minimum in Kazakhstan in July 2007.

40. For more detailed analysis read: Kurmanova A., and Disenova M. (2007). “Kazakhstan: The wealth for the few. Problems of equitable distribution of oil re- sources”. Economic Strategy Institute - Central Asia 2007. Available on-line: www.inesnet.kz/file.php?file_ id=73&article_id=73. 41. Associated Press (AP). 22 July 2007. Energy-rich Turkmenistan wants foreign investment for Caspian Sea resort. On-line: http://www.iht.com/articles/ap/2007/07/ 22/asia/AS-GEN-Turkmenistan-Tourism.php. 43. The levelling of household income across the re- gions is reflected in the narrowing gap between the highest and lowest incomes – from 60% in 1998 to 17.5% in 2003 (UNICEF 2004). 44. Resolution of the Council of Ministers of the Kazakh SSR “On declaring protected zone in the northern part of the Caspian Sea”, 30 April 1974 - 252 (amended by the Decision of the Cabinet of Ministers of the Republic of Kazakhstan 23 September 1993 - 936). Decision of the Cabinet of Ministers of the Republic of Kazakhstan “On the formation and development of hydrocarbon deposits in the Kazakh part of the Caspian Sea”, 13 February 1993, 97. 45. Ak Zhayk Newspaper Atyrau, 15 January 2008. “Kazakhstan once again forced foreigners to share Kashagan”. Available at: http://azh.kz/2008/01/15/ka- zakhstan-vnov-zastavil-inostrancev.html Official infor- mation is available from Kazmunaigaz (http://www.kmg. kz). 46. Ak Zhayk Newspaper Atyrau, 22 November 2007. “How to use sulphur milliards?” Available at: http://azh. kz/2007/11/22/kak-ispolzovat-sernye-milliardy.html. 47. Ak Zhayk Newspaper Atyrau, 22 November 2007. “Sulphur storage at Tengiz is unsafe”. Available at: http://azh.kz/2007/11/22/sernye-karty-na-tengize-neb- ezopasny.html. 48. Discussions during the regional ENVSEC consul- tations held in Ashgabad, Turkmenistan, September 2007. 49. In April 2007 Turkmenistan’s President announced plans to invest US$1 billion to build a major tourist re- sort on the Caspian Sea (at Avaza). 42. Quoted from the article “On the coast of grey Hazar” http://www.tourism-sport.gov.tm/en/avaza.

50. The declaration by the Kazakh President Nursultan Nazarbayev concerning the construction of a transport

39. Data for 2002.