Kazakhs Threatens to Stop Italian-Led Consortium’s Activities If Terms Not Met

Excerpt from report by Interfax-Kazakhstan news agency

Astana, 6 November: The Ministry of Environmental Protection of Kazakhstan intends to judicially suspend the activities of the Agip KCO [a consortium led by the Italian company ENI that is the current operator of the Kashagan oil project], if the consortium does not present a plan of reaction to the complaints of the Ministry of Environmental Protection until 22 November.

“It (a three-month ban on the exploitation of natural resources) expires on 22 November. If (an action plan to eliminate the claims of the Ministry of Environmental Protection) is not presented by that time and there is no consensus over issues raised by Kazakhstan, then, according to the Environmental Code, we reserve the right to judicially suspend any emissions from this enterprise,” Environmental Protection Minister Nurlan Iskakov said today at a meeting with members of the committee for issues of the environment and the exploitation of natural resources of the Majlis (the lower house) of Kazakhstan’s parliament.

“And this will mean that the enterprise will completely stop [operating],” he noted.

“They can work now by paying a tenfold fine on all amounts [sentence as published],” Nurlan Iskakov noted.

“That is to say the situation concerning Kashagan is a very serious issue,” the minister concluded.

[Passage omitted: known details]

Originally published by Interfax-Kazakhstan news agency, Almaty, in Russian 1020 6 Nov 07.

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