Kazakhstan Chamber of Commerce in the USA


Condor Petroleum to begin production in Kazakhstan 0

Posted on October 25, 2016 by KazCham

Centil Law Firm BI@centil.law

Condor Petroleum Inc. has announced that the Shoba Production Contract has been signed with the government of Kazakhstan, providing for commercial production at the company’s Shoba oil field.

Production is expected to resume at Shoba in September at a rate of more than 500 bpd. The Taskuduk Production Contract is expected to be signed shortly, and will provide for further commercial production at the company’s wholly owned Taskuduk oil field in Kazakhstan.

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Kazakhstan Vows to Expand Afghan Aid Programs 0

Posted on October 17, 2016 by KazCham

Latin American Herald Tribune

Kazakhstan will extend until 2022 a program that provides college education to young Afghans and will continue to give technical and humanitarian aid to Afghanistan, Kazakh Foreign Minister Erlan Idrissov announced Wednesday in Brussels.

“Along with the rest of the international community, Kazakhstan is committed to sustainable and secure development in Afghanistan,” Idrissov told the Brussels Conference on Afghanistan, at which delegates from around the world gathered to offer their financial and political support to the war-torn Central Asian country.

Idrissov said he was “convinced that the revival of Afghanistan will have a great positive effect on the situation of our region.”

“The international community and the UN must continue providing Kabul with comprehensive support and assistance” throughout the rest of the so-called “decade of transformation” until 2024, he added.

Kazakhstan’s top diplomat recalled that his country provides technical assistance and humanitarian aid to Afghanistan in the framework of bilateral agreements and multilateral forums.

He stressed that the implementation of projects in Afghanistan is one of the priorities of KazAID – the Kazakh agency for international aid and development – that has worked with other countries in projects to strengthen economic independence and the rights of Afghan women.

“Every year, Afghanistan receives from Kazakhstan tons of humanitarian cargo, including food products, oil, lubricants, and equipment from Kazakhstan,” he said.

Kazakhstan has so far provided Afghanistan 20,000 tons of food products valued at some $20 million, he said.

Idrissov also noted that Kazakhstan has implemented a “joint action plan” for Afghanistan that has provided more than $2 million for the construction of a school, a hospital and roads, and $1.5 million to build four new bridges.

“Taking into account the importance of investing in human capital” and at the initiative of the President of Kazakhstan (Nursultan Nazarbayev), about 1,000 young Afghans began receiving an education at Kazakh universities in 2010 in areas such as medicine, agriculture and engineering,” he said.

With a total cost of $50 million, Idrissov said his country is now committed to expanding the educational program “until 2022.”

Moreover, in line with the goal of “building a State led by Afghans,” Idrissov said that Afghanistan “must continue reforms to transform the country into a stable and democratic nation.”

“Today and in the future the key to stabilizing Afghanistan is genuine regional cooperation,” he said, and vowed that Kazakhstan would “support initiatives focused on strengthening connectivity in the region.”

He recalled that the Kazakhstan-Turkmenistan-Iran railway was launched in 2014 and that the Turkmenistan-Afghanistan section is to be completed this year.

The implementation of this and other similar projects, “demonstrates the potential of Afghanistan as a gateway between Central and South Asia,” Idrissov said.

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Foreign Minister Attends EU-Related Gatherings in Brussels 0

Posted on October 16, 2016 by KazCham

Astana Calling

After spending the end of September in New York, Kazakh Foreign Minister Erlan Idrissov travelled to Brussels the first week in October to attend conferences with European Union (EU) officials.

Working with Slovakian Foreign Minister Miroslav Lajč2ák, Idrissov co-chaired the 15th meeting of the EU-Kazakhstan Cooperation Council. The Oct. 4 session was the first following the signing and provisional application of the Enhanced Partnership and Cooperation Agreement (EPCA) between the entities.

“The EPCA has a very big chapter dedicated to trade and economic cooperation. Europe is our main trade partner and the source of foreign investments. Therefore, this sphere has been outlined in the new agreement. Overall, the EPCA covers 29 spheres of interaction,” said Idrissov.

As its name implies, the Сooperation Сouncil provided an opportunity to discuss financial collaborations and the role of the newly-formed cooperation committee trade configuration, which will address import/export and economic/investment issues. The talks specifically noted simplifying the visa regime for Kazakh citizens traveling to the EU, identifying Kazakhstan as a market economy and the future subcommittee on customs cooperation.

“The potential of trade, economic and investment cooperation between Kazakhstan and the EU is far from being disclosed. The main objective of the established structures should be further development of this potential and assistance for the implementation of the EPCA,” said Idrissov.

The meetings included representatives of the Kazakh ministries of National Economy, Investments and Development, Energy and Justice, the National Security Committee and National Centre for Human Rights and the discussions touched on each of their areas of concern – environmental and human rights protection, political cooperation, the rule of law and good governance, internal reforms and combating new threats.

Similar topics plus Afghanistan, Iran, Ukraine and regional cooperation in energy, environment, water resources, border security and combating drug trafficking were on the agenda when Idrissov and his counterparts Erlan Abdyldaev (Kyrgyzstan), Sirodjidin Aslov (Tajikistan), Rashid Meredov (Turkmenistan) and Abdulaziz Kamilov (Uzbekistan) met with EU High Representative for Foreign Affairs and Security Policy and European Commission Vice President Federica Mogherini. The sides discussed relations within the EU Strategy for Central Asia, initiated in 2007 and renewed in 2015 through 2020.

“Our cooperation with our partners in Central Asia covers a lot of areas, with an eye also on the security challenges. We share a common neighbourhood, we share deep links and that is why we are engaged more than ever in expanding and enhancing our relations,” said Mogherini, according to eeas.europa.eu.

Idrissov later participated in the 18th Berlin Eurasian Club with the theme “EU – Central Asia Energy Dialogue.” The talks, involving German officials and representatives of leading European companies in conventional and renewable energy, provided a segue for the Foreign Minister to speak about EXPO 2017, the future energy-themed international exposition to be held in Astana. He also spoke about his nation’s socio-economic reforms and priorities with the EU.

The Kazakh delegation participated the following day in the Brussels Conference on Afghanistan. Arranged by the EU and Afghan government and attended by representatives of more than 70 countries and 30 international organisations, the conference reviewed joint international and Afghan efforts to increase sustained global support and funding based on a new national development framework. Afghan President Ashraf Ghani and Chief Executive Abdullah Abdullah presented their vision of the future and track record on reform.

Idrissov noted that Kazakhstan continues to provide political and practical support to Kabul. KazAID, the nation’s official development assistance agency, focuses on Afghanistan, including a pilot project to improve the economic independence and rights of women launched in August with the United Nations Development Programme (UNDP) and Japan International Cooperation Agency (JICA). Kazakhstan also provides university grants to young Afghans within the educational programme initiated by President Nursultan Nazarbayev in 2009.

Following the meeting, Idrissov announced Kazakhstan will allocate $2 million to support the projects of Afghan security forces, adding the country intends to focus on solving the problems of Central Asia, including the stabilisation of Afghanistan, during its 2017-2018 membership on the UN Security Council.

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Hikma Pharmaceuticals to establish factory in Kazakhstan 0

Posted on October 12, 2016 by KazCham

Centil Law Firm BI@centil.law

Kazakh officials have approved the establishment of a factory for Hikma Pharmaceuticals with a starting capital of $150 million. Both sides have also agreed to examine the possibility of establishing an air shipping company to increase the volume of commercial exchange, as well as the possibility of exporting to nearby markets.

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Statement of the Ministry of Foreign Affairs of Kazakhstan Regarding the Situation in Syria 0

Posted on October 11, 2016 by KazCham

Kazakh Foreign Ministry

The Ministry of Foreign Affairs of the Republic of Kazakhstan expresses its deep regret with the announcement of the termination of cooperation between the United States and the Russian Federation on the settlement of the situation in Syria.

Such scenario is fraught with further bloodshed and human losses in this long-suffering country, jeopardizes all the previous agreements and prospects for achievement of a settlement in the foreseeable future. We are very concerned with the disagreement and deepening break in relations between the two actors of the international community – the Russian Federation and the United States – key for finding solutions to the Syrian crisis. This development will not be helpful to de-escalating the conflict and achieving stability in the whole region of the Middle East.

As noted in the September 10, 2016 statement of the Ministry of Foreign Affairs of the Republic of Kazakhstan, Kazakhstan supported the agreement between the Russian Federation and the United States on the development of the General Settlement Plan of the Syrian crisis. We are deeply concerned that this plan, which gave hope for peace in Syria, was not implemented.

In this regard, we call for the soonest resumption of negotiations between the Russian Federation and the United States on this issue in order to prevent further aggravation of the humanitarian crisis and to end the suffering of the Syrian people.

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Kazakhstan to launch Kashagan oil production in November 0

Posted on October 06, 2016 by KazCham

Centil Law Firm BI@centil.law

Commercial oil production will begin at the giant Kashagan field in Kazakhstan in November. KazMunayGaz signed a contract last month with trader Vitol to arrange prepayment for its share in the Kashagan oil, worth $1 billion. Kashagan’s output will be a modest 50,000 to 1 million tonnes this year, 3 million to 5 million tonnes next year and then 7 million tonnes in 2018, according to Kazakh Energy Minister Kanat Bozumbayev.

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Samsung C&T and Samsung Engineering: Kazakh power plant cancelled 0

Posted on October 02, 2016 by KazCham

Centil Law Firm BI@centil.law

South Korea’s Samsung C&T Corp and Samsung Engineering Co Ltd have announced that orders for a thermal power plant project in Kazakhstan worth a combined 2.8 trillion won ($2.5 billion) have been cancelled.

In December 2014, the companies had said that they would jointly carry out the construction of a coal power plant in Kazakhstan. Samsung C&T said in another regulatory filing that it exercised a put option for its stake in the Balkhash Thermal Power Plant Joint Stock Company, the entity that placed the construction order with the Samsung companies, to Samruk Energy for $192.5 million.

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The devil for tax havens 0

Posted on October 02, 2016 by KazCham

Centil Law Firm BI@centil.law

Kazakhstan’s tax authorities will soon be able to get information on citizens’ deposits in foreign banks. Starting from 1 January 2017, the Multilateral Convention on Mutual Administrative Assistance in Tax Matters will enter into force in Kazakhstan, enabling the automatic exchange of tax payers’ information with more than 90 countries all over the world.

According to the law on amnesty of the citizens of the Republic of Kazakhstan, citizens are required to declare all of their hidden proceeds in order to avoid criminal and administrative penalties.

The convention stipulates that parties to the convention shall exchange any information that is foreseeably relevant for the administration or enforcement of their domestic laws. Parties to the convention include well-known tax havens such as Switzerland, Luxembourg, Ireland, the Cayman Islands, Seychelles, Isle of Man, Mauritius and Monaco, which could come as a shock to those with funds in banks in these countries.

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Ukraine and Kazakhstan to set up JV for uranium mining 0

Posted on September 26, 2016 by KazCham

Centil Law Firm BI@centil.law

Ukraine’s Ministry of Energy and Coal Industry, the Kazakh Energy Ministry and Kazakhstan’s National Nuclear Company Kazatomprom have agreed to establish a joint venture (JV) for uranium mining in both countries, according to Ukrainian Energy Minister Ihor Nasalyk, who commented on the results of his mid-August visit to Kazakhstan.

The Ukrainian minister said that Kazakhstan is ready to buy about 750 tonnes of ion-exchange resin from the Nuclear Fuel state enterprise, stating that “Kazakhstan has the best desalination technology in uranium mining. We’ve agreed that they will create a joint venture and begin to work on our deposits.”

He also said that the cost of uranium ore in Kazakhstan is $30 per tonne, while Ukraine buys 1,500 tonnes per year at $120 per tonne. According to Nasalyk, Kazakhstan also invited Ukraine to participate in the construction of a plant for the production of fuel assemblies for nuclear power plants, which would become an alternative to Russia’s TVEL.

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Kazakhstan and China to build production facilities worth $26 billion 0

Posted on September 20, 2016 by KazCham

Centil Law Firm BI@centil.law

On 5 September, the Kazakh President Nursultan Nazarbayev attended a briefing on the results of his visit to China, where he took part in the G20 summit in Hangzhou. There, he stated that the two countries have made agreements regarding both the exportation of Kazakh food to China and the construction of joint production facilities.

For the first time ever, Astana and Beijing have agreed that Kazakh flour, grain, beans, oil-bearing crops, meat and poultry will be exported to China.

“The list includes 51 facilities, two of which have already been constructed. The construction of four facilities worth a total of $2.5 billion will be completed this year. During five years it is planned to build enterprises for a total of $26 billion,” said Nazarbayev.

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