During his Central Asian tour last summer, Japan’s Prime-Minister Shinzō Abe visited Kazakhstan, Uzbekistan, and Turkmenistan. He was accompanied by the heads of a 100 Japanese companies seeking to discuss business opportunities with their Central Asian counterparts
During his Central Asian tour last summer, Japan’s Prime-Minister Shinzō Abe visited Kazakhstan, Uzbekistan, and Turkmenistan. He was accompanied by the heads of a 100 Japanese companies seeking to discuss business opportunities with their Central Asian counterparts.

The focus of the discussions around expanding the cooperation with the Central Asian countries was on technologies in exchange for resources.

Kazakhstan is Japan’s largest trade and economic partner in Central Asia. Kazakhstan has uranium, and Japan has high technology. The former is interested in selling its resource to the latter.

Even though Tokyo has revised its energy strategy after the Fukushima-1 tragedy and has closed almost all of its nuclear power stations, Japan is willing to share its experience in that area with other countries.

During the Japanese Premier’s visit last summer, Kazakhstan’s Kazatomprom and Japan’s Marubeni Utility Services signed a memorandum of understanding on cooperation in nuclear energy. The purpose of the MoU was to develop cooperation in nuclear energy and to explore the possibility of building a light water reactor in Kazakhstan.

But, as the President of Kazakhstan Nursultan Nazarbaev noted then, the potential of the bi-lateral cooperation did not correspond to the existing possibilities and needed to be stepped up. So a top-level decision was made to expand cooperation.

This fall, the head of Kazakhstan is going to pay a return visit to Tokyo. It is expected that new documents and agreements will be signed during the forthcoming meetings in Japan. The governments of the two countries are working on the development and finalising of those documents.

At a direction of Prime Minister Shinzō Abe, the Japanese organised “The Future of Energy and Japanese Technologies” seminar in Astana last week to discuss energy and technology cooperation in advance of the future summit.

Representatives of Japanese and Kazakhstan companies attended the event. Opening the meeting, Deputy Chairman of KazEnergy Association Uzakbai Karabalin said that the volume of Japanese investment in the Kazakh economy over the years of Kazakhstan’s independence had totaled $4.5 billion.

In his opinion, this number compared to the other countries is very low and does not meet the existing potential. “Mainly, the lion’s share of this investment went to uranium production,” Karabalin said.

According to him, the oil and gas sector of Kazakhstan remains the main strategic energy resource of the country. “This industry is facing new challenges as a result of the falling commodity prices, so it is setting new tasks for itself, namely, introduction of new, “clean” technologies in the production and processing of oil, petrochemistry, and energy saving. These may become promising areas for a mutually beneficial cooperation,” Karabalin said.

For example, energy saving is one of the most difficult issues for Kazakhstan. The losses are huge; the equipment at many plants that were built in the time of the Soviet Union is obsolete.

Not just investment is needed, but, in particular, new energy saving technologies and approaches. To this point, the National Energy Report of Kazakhstan pays a special attention to energy preservation devoting a whole section to that issue and identifying the areas and describing the steps that need to be taken.

So why, with all the obvious benefits and opportunities for expanded cooperation between Kazakhstan and Japan do the Japanese technologies face difficulties in making their way to Kazakhstan?

There are two reasons for that, some Kazakh businessmen who wished to remain unnamed told New Europe on the sidelines of the seminar.

The first reason is the high cost of the Japanese technologies and the meticulousness of the Japanese representatives. Having said that, the interviewees admitted that both those factors are well paid off by the quality.

“Of course, the Chinese companies are more expeditious in closing the deals and in signing the contracts. They offer a lower price, too, but then they miss the project deadlines. The Japanese, one the other hand, are “slow on getting into gear”, but then they are as good as their word and they guarantee the quality”, – the Kazakh businessmen said.

The second reason is that tacit look out of Kazakhstan’s red tape for their Chinese partners. They are given priority.

During last year’s visit of Japan’s head of government to Kazakhstan, the parties signed a memorandum of understanding on cooperation in mineral resources between the Kazakh joint-stock company Kazgeology and the Japanese National Corporation.

Commenting on that fact earlier, a political analyst Marat Shibutov noted that Japan could do a lot of work in Kazakhstan. However, such two heavyweights” as Japan and Kazakhstan will find themselves cramped in there.

“During his visit, the Prime Minister of Japan ventured into an area that is very sensitive for China – the gas sector of Turkmenistan and, in particular, the Galkynysh field from which the CPR imports 30% of its gas. He also did a good job in Uzbekistan and Kazakhstan. Japan’s priorities are obvious from the sizes of the signed agreements. If Japan further increases its presence in Kazakhstan in the production of rare-earth elements and uranium, that will be a direct challenge to China,” the expert said.

https://www.neweurope.eu/article/japan-kazakhstan-share-nuclear-technology-resources/