Economic Relations between Kazakhstan and Russia

in the system of world economic links, in searching for additional

financial resources necessary for the implementation of economic

restructuring and their balanced growth, in defending the interests of the

domestic market from unfavorable conditions in the world economy and from,

foreign competition at the stage of stabilization of their economies.

In choosing a promising export and import specialization, Kazakhstan

and Russia should give preference to commodities that are least susceptible

to market fluctuations. To achieve this, it is necessary to conduct regular

analysis and forecasting of the situation on the markets for the principal

import and export commodities, favoring long-term agreements on their

purchase/selling over one-off deals.

In the medium-term perspective, transition should be effected from

restrictive policies to encouragement, consistently facilitating the

formation of a progressive, structure of exports and creating a

corresponding system of its state support.

Analysis of export/import operations of foreign trade companies and

enterprises shows that, in the absence of combined controls over exports

and currency and of an obligatory norm of currency sales, 1 all export

earnings reach the republic. According to Kazakhstan specialists

calculations, some $0.6-0.8 billion end up on the accounts of Kazakhstan

enterprises in the countries of near and far abroad. According to Russian

experts, corresponding figures for Russia range from $5 to $17 billion. In

this connection, one of the main tasks of management of foreign trade

activities of the two states is the setting up of systems of customs

control over export and import contracts and banking control over currency

earnings, investments, and other commodities.

In future, it is advisable to step up coordination of information

systems of control over repatriation of currency earnings by the customs

bodies and the banking system, which will permit a concentration of efforts

on securing maximum currency earnings from exports.

It is advisable to restrict the decisive role of the state in foreign

economic activity to internationally recognized standards, to be

implemented in accordance with the rules and norms of the World Trade

Organization.

It is also advisable, in a situation of considerable reduction of the

share of state property, to export and import commodities in state

interests only within the framework of intergovernmental agreements, which

must not include any privileges or tax or duty exemptions. For this

purpose, the possibility is created for domestic purchases on a competitive

basis.

The state policy of selective protection in relation to promising

exporting industries and conquering foreign markets gradually becomes one

of the main priorities of economic policy as a whole; it is called, upon to

prepare the implementation of a really proactive export policy, without

which it is impossible to ensure either the payment of foreign debts, or

internal financial stabilization, or investment activity and employment.

Another important task is the achievement of favorable trading

procedures-in relations with foreign countries and their trade and economic

groups, organizations, and unions, as well as the lifting of existing

discriminatory restrictions, and prevention of new ones, with regard to the

member states of the customs union.

To solve this task, plans are made to work consistently and

purposefully toward the entry of Kazakhstan and Russia in the World Trade

Organization, to harmonize our countries' legislative systems with

international norms and principles, and to implement the agreement on

partnership and cooperation with the European Union and agreements with

other countries.

Formation of new economic relations with states of the near abroad will

require a longer that previously believed period of time and a gradual and

coordinated advance toward generally accepted international norms of

organization.

The future economic policy of Kazakhstan in relation to Russia and the

countries of the near abroad must have the following goals development and

rationalization of cooperative economic links in terms of minimizing

expenditure and increasing competitiveness;

— The utilization of transit communications serving the export/import

commodity flows from Customs Union members to third countries;

— Cooperation and coordination of CIS countries' efforts in the

restructuring of production and in optimizing the distribution of

production forces. An active economic policy in relation to countries of

the near abroad is seen as one of the levers for the rehabilitation of the

economy and creating conditions for its upward swing.

Particularly important in the economic relations of Kazakhstan and

Russia is the creation of conditions for establishing horizontal links

between agents operating on the market, the use of new forms of economic

cooperation, such as joint ventures, transnational production, commercial,

and financial structures, and of financial-industrial groups.

Thus the entire course of economic cooperation between Kazakhstan and

Russia and its present state show that there is no alternative to close,

mutually advantageous, and constructive relations between the two

countries. As the two largest countries of post-Soviet space possessing

great natural resources, production potential, and a desire for

cooperation, Kazakhstan and Russia are quite capable of solving the tasks

they face in reforming the economy and achieving the level of economically

developed countries.

Present-day economic science and practice show that economic

integration is the absolute imperative of the future.

CONCLUSION

The analysis, in terms of history and political science, of the birth

and development of new, sovereign states at the end of the 20th century,

considered here in dynamic interaction with the development of other

states, leads us to a number of significant conclusions.

The formation of interstate relations between the Republic of

Kazakhstan and the Russian Federation is an example of synthesis of mutual

relations between two equal agents of international law. Considering the

unique situation and the entire context of ongoing processes, these

relations may be seen as a considerable contribution to the world political

and juridical experience.

An in-depth analysis of the causes of the disintegration of the USSR

was not the goal of the present study; besides, as President Nazarbayev

pointed out, it is difficult and even practically impossible to understand

everything that is connected with this event, which had such stupendous

consequences. However, it is possible to outline the objective and

subjective characteristics of this historical event.

Among the objective factors, economic causes must above all be pointed out.

The rigidly conservative plan-and-command system of the country's economy,

carrying the unbearable burden of the military-industrial complex and

serious structural unbalance, could not meet the real challenges of the

present level of development of the world economy - the postindustrial

resource- and energy-saving revamping of the economy and a breakthrough in

information technology. The inevitable nationality problems that

accumulated in the ethnically diverse Soviet Union called for considerable

attention and timely response to the challenges in this area. Perestroika

suddenly made these challenges topical almost overnight, but it couldn't

provide an adequate solution of the problems within the framework of a

unified state structure. The Novo-Ogarevo project proved Utopian in view of

its goal of achieving a consensus among nearly forty of its participants.

It is no secret that Russia played an integrative role, being a kind

of backbone in the genesis and architecture of the unitary state.

Considering its actual political and economic weight as the most powerful

republic of the Union, it is easy to understand the centrifugal effect of

the separation of the Russian Communist Party from the Communist Party of

the Soviet Union and the subsequent declaration of the sovereignty and

independence of the Russian Federation.

Among other factors, the subjective element also played a role in the

disintegration of the USSR. This element could be analyzed in terms of

persons and situations, but this is not of the greatest importance for the

purposes of the present study.

The dialectical development of Kazakhstani-Russian relations in the

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