During talks between Russian Prime Minister Mikhail Fradkov and Karim Masimov the focus will be on energy, particularly electricity generation, and the fuel and nuclear sector, where the former Soviet allies have reached most effective partnership.
Running an extensive pipeline network, Russia is a key player in Kazakh fuel exports. According to Kazakhstan statistics, the oil-rich Caspian state transported over 52 million metric tons (380 mln barrels) of oil via the Russian pipeline system in 2006.
Considering Kazakhstan's plans to increase oil production and sales in the near future, the countries have agreed to raise the capacity of the Caspian Pipeline Consortium, an international oil transportation project, from 30 mln tons (220 mln bbl) to 40 mln (290 mln bbl).
Russia and Kazakhstan are also developing successful cooperation in the space industry. Russia rents its main space center, Baikonur, built in Kazakhstan in the 1950s, under an agreement signed in 1994 after the collapse of the Soviet Union. The countries' experts collaborated in the manufacture of the KazSat, a Kazakh telecommunication satellite launched last June.
The two are also working to build a space complex at Baikonur, Baiterek, to launch Angara launch vehicles capable of carrying 26 metric tons of payload into low-Earth orbits. The project is being implemented on a parity basis and enjoys tax, customs and other privileges.
Moscow and Astana have also boosted financial cooperation. In January 2006, the countries signed an agreement to establish the Eurasian Development Bank, a large integration project aiming at boosting investment across the former Soviet Union. Under the agreement, the bank will have authorized capital of $1.5 billion, 33% of which will belong to Kazakhstan and the remainder to Russia.
Masimov, formerly the transport and communications minister and minister of economy and budget planning, is also expected to meet with Russian President Vladimir Putin during his visit.
