Gazprom Chief Executive Rem Vyakhirev and Kazakh Prime Minister Kasymzhomart Tokayev have agreed to form a Russian-Kazakh natural gas joint venture.

The Kazakh concern Kaztransgaz will participate in the venture, Tokayev's press secretary, Rasul Zhumali, said. The collaboration between Gazprom and Kaztransgaz is a promising development, Zhumali said. Kazakhstan is counting on the Russian gas giant for help in implementing a number of important projects, including delivery of gas to Europe, joint sales on the Chinese market, and swaps under which Russia delivers gas to the Kustanai region in northern Kazakhstan and the Aktyubinsk region in western Kazakhstan in exchange for gas from Kazakhstan's Karachaganak field. They will also implement a project to deliver gas to southern Kazakhstan at low prices and build a pipeline to Astana. Kaztransgaz was formed in March. It is wholly state-owned. Uzakbai Karabalin, formerly a vice president at state oil company Kazakhoil, was named to head Kaztransgaz Company charter capital totals 72,500 tenge (142.4 tenge/$1). The state stake in Kaztransgaz is scheduled for transfer into the charter capital of national oil transportation company Kaztransoil, on the condition the latter "accepts responsibility for transferring ownership rights and rights on other participation in company operations" to the Committee for State Property and privatization. Meanwhile, the final agreement on Kaztrangaz's purchase of a 50% stake in Intergas Central Asia (ICA), a subsidiary of Belgium's Tractebel and the company operating gas transportation networks in Kazakhstan. Kaztransgaz already owns a 45% stake in ICA. It will also receive a stake in Almaty Power Consolidated, another Tractebel subsidiary. Reports that Tractebel was preparing to withdraw from Kazakhstan first surfaced in March. The government had a number of complaints against the Belgian company.