Support The Moscow Times!

French, Kazakhs Sign Raft of Deals

Sarkozy and Nazarbayev meeting Tuesday in Astana, where the two presided over energy and arms agreements. Shamil Zhumatov

ASTANA, Kazakhstan — French President Nicolas Sarkozy scored a diplomatic coup Tuesday during a visit to energy-rich Kazakhstan, overseeing an agreement to allow military hardware for French forces fighting in Afghanistan to pass through Kazakh territory and clinching lucrative energy deals.

 Kazakh President Nursultan Nazarbayev said the transit agreement signed Tuesday governs the movement of military hardware and personnel to supply French forces serving with NATO in nearby Afghanistan.

The energy deal, worth an estimated $1.46 billion, was signed to formalize the acquisition by Total and GDF Suez of a 25 percent stake in the Khvalynskoye offshore natural gas field project in the Caspian Sea.

The field is now being developed by LUKoil, and is expected to start operations in 2016. It could produce up to 9 billion cubic meters of gas per year, by some estimates.

The deal will see an increase in Total’s role in Kazakhstan, where it already controls a 16.8 percent stake in the vast Kashagan oil field project.

Kazakhstan also awarded a consortium of French companies a deal to take part in building a crucial $2 billion oil pipeline linking the vast Kashagan field to the Caspian. Energy supplies through the route will be transported across the inland sea by tanker to Azerbaijan and pumped by pipeline westward to Europe, circumventing Russia.

Other commercial accords included an agreement to create a joint venture between the two countries’ state-owned nuclear power companies to produce and market nuclear fuel.

France’s Thales signed a $150 million contract to supply radios to the Kazakh army. The company hopes that the deal will lead to a bigger, $3 billion contract to supply communications equipment to the Kazakh military — a market dominated by Russian suppliers.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more