Astana

Astana, city in northern Kazakhstan, capital of the republic. Astana lies on the bank of the Ishim River near its source, in the centre of a mineral-rich steppe region and is a substantial commercial and economic centre for the area. An important rail junction, the main industries in Astana are meat-packing and the production of agricultural machinery and chemicals. The surrounding area is an important grain-growing region.

The city was founded as a fortress in 1824 and named Akmolinsk. In 1960 it was given the name Tselinograd (Russian for “Virgin City”) in association with the Virgin Lands Programme promoted by Soviet premier Nikita Khrushchev to open up northern Kazakhstan. After Kazakhstan achieved independence in 1991, the city was known as Aqmola. Following a parliamentary resolution of 1994, a presidential decree was issued the following year, proclaiming Aqmola the new capital of the republic, and at that point the government and administration began their transfer to the new location from the southern city of Almaty. In December 1997 the transfer was completed, and in June 1998 the new capital was officially inaugurated and renamed Astana.

Astana was selected as the new capital owing to its central location within Kazakhstan and its proximity to major economic markets (such as Russia and Europe). The city is a transport hub with easy access to a range of natural resources and a viable engineering infrastructure. In an effort to encourage foreign financiers to invest in Astana, the city has been decreed a special economic zone with no duties on imported goods, no export duties on goods manufactured in the zone, and a concessional tax regime for construction and real estate projects. Astana’s population is projected to reach 450,000 by 2005 and 550,000 by 2030. Population 322,400 (2000 estimate).