The child weans itself from Mother Russia

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The child weans itself from Mother Russia

Last year's Russian crisis had one unexpected spin-off. For the first time investors started to differentiate between Russian risk and that of Kazakhstan. It was good news for Kazakhstan as Ted Kim reports.

Country datafile

President: Nursultan Nazarbayev
Prime Minister: Nurlan Balgimbayev (1997)
Independence: December 16 1991
Population (12/98): 16.8 million
Location/size: Central Asia, bordering the Caspian Sea, Russia, Turkmenistan, Uzbekistan, Kyrgyz Republic, and China/1,049,200 square miles (slightly less than four times the size of Texas)
Languages: Kazak official language spoken by over 40% of population, Russian (language of inter-ethnic communication) spoken by two-thirds of population and used in everyday business
Ethnic groups: Kazak (41.9%); Russian (37%); Ukrainian (5.2%); German (4.7%); Uzbek (2.1%); Tatar (2%); other (7.1%)
Religions: Muslim (47%); Russian Orthodox (44%); Protestant (2%); other (7%)
Major cities: Almaty; Astana (capital); Karaganda; Chimkent
Currency: tenge
Exchange rate (01/06/99): $1 = 132 tenge
Gross domestic product (1998E nominal): $22.5 billion
Real GDP growth rate (1998E): 1.0%
Merchandise exports (1998E): $6,300 million
Merchandise imports (1998E): $7,700 million
Inflation rate (change in consumer prices, 1997E): 11.4%
Major exports: Petroleum; ferrous and nonferrous metals; chemicals; grain; wool; meat; coal
Major imports: Machinery and parts; industrial materials
Major trading partners: Russia, Ukraine, Uzbekistan, China

















Source: US Energy EIA; National Bank of Kazakhstan

Has Kazakhstan achieved the unthinkable? The Great Divorce? Separation from Mother Russia? It seems so.

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