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Investor relief as Kazakhstan reappoints pro-business PM

09 April 2011 01:45 (UTC +04:00)

Baku â€“ APA. Investors expressed relief on Friday after Kazakhstan’s president reappointed the business-friendly prime minister who steered the country through the financial crisis, APA reports quoting â€œThe Telegraphâ€.
The decision to choose Karim Massimov put to rest fears that Nursultan Nazarbayev would select an untested or old guard figure hostile to foreign investment.
Large crowds gathered outside the Palace of Independence in Astana, the country’s showpiece capital, on Friday to watch Mr Nazarbayev being inaugurated as president after winning a spectacular 95.5 per cent of the vote in last Sunday’s election.
"I believe Karim Massimov is the only suitable candidate to carry out the work of our government effectively," Mr Nazarbayev said as he reappointed Mr Massimov in the first session of the country’s parliament.
He then turned to Mr Massimov to joke: "I scored 95 per cent, and you scored 100 per cent."
Peter Foster, the President of Air Astana, which is 49 per cent owned by BAE Systems, the British defence company, said: "We’re really quite relieved that he’s been reappointed. He’s a very safe pair of hands and obviously he’s very business-friendly. There have been are all sorts of names bandied around. Some of those guys are pro-business, some of them are not."
Kate Mallinson, a political risk analyst at GPW, said: "The bestowing of a fourth year on Massimov, in a country where prime ministers are replaced on a frequent basis, is a significant vote of confidence in this competent political player who has skilfully navigated Kazakhstan through the worst of the financial crisis."
As an ethnic Uighur, Mr Massimov is viewed as above the clan links that dominate Kazakh politics. He is fluent in Mandarin, as well as English and Arabic, and is seen to push for closer ties to China, most recently by encouraging Kazakh companies to list their shares in Hong Kong.