Kazakhstan Chamber of Commerce in the USA

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Archive for the ‘Agricultire’


Top 20 ambitious projects in Central Asia 0

Posted on January 15, 2015 by KazCham

Business Intelligence from Colibri Law Firm: Issue #100

In this hundredth jubilee edition of Business Intelligence we have tried to highlight most ambitious and long-awaited projects in our region. These are handpicked as per our subjective vision and hence may not be exhaustive.

Needless to say that we are thankful for all about fifteen thousands of you who has been constantly receiving our newsletter all this time. We promise to constantly work on making this intelligence newsletter better.

Georgia: $108 Million from ADB to Improve Water and Sanitation in Zugdidi and Poti
Georgia: Anaklia Port development investor revealed mid-2015
Georgia: Oil refinery is to be built in Poti

Central Asia: China’s New Silk Road project

Kazakhstan: Kazakhstan’s “Eurasia project”

Kazakhstan: South Korean company to build a power plant in Kazakhstan

Kazakhstan: Shifting the accents in Kazakh economy
Kazakhstan: Kazakhstan and China plan to establish JVs producing nuclear fuel
Kazakhstan: Burgundy firm CLEIA signs major brickworks contract
Kazakhstan: ALSTOM has agreed to purchase an additional 25% stake in locomotive joint venture EKZ
Kazakhstan: Construction of two nuclear plants to be commenced by 2018
Kazakhstan: Kazakhstan seeks presence in potash market with $3.8 billion China investment
Kyrgyzstan: Instrument of accession to the Eurasian Economic Union is signed
Kyrgyzstan: ADB helps modernize Kyrgyzstan’s largest power plant
Tajikistan: CASA-1000 project agreement is signed
Uzbekistan: CNPC starts development of three gas-condensate fields
Uzbekistan: China to issue US 550m to Uzbekistan to develop Uzmobile
Uzbekistan: Russia’s LUKOIL extends its presence in Uzbekistan
Uzbekistan: USD 66m for chemical complex construction
Uzbekistan: $2.5 billion to be directed for setting up polyethylene unit

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Kazakhstan plans to increase grain exports to Russia amid sanctions 0

Posted on September 02, 2014 by KazCham

Business Intelligence from Colibri Law Firm: Issue #93

Kazakhstan intends to increase the its grain exports to Russia amid the sanctions that Russia imposed on some of the agricultural products imported from the western countries supporting sanctions against Russia, Tengrinews reports citing Chairman of the Committee for State Inspection in Agro-Industry (Agroprom) of the Agriculture Ministry of Kazakhstan Saktash Khasenov.

Herewith, he pointed out that Kazakhstan’s grain exports in Russia direction traditionally faced transport and logistics problems. “We are always ready to increase the grain exports, primarily fodder crops. We have traditional markets, such as Iran, Turkey. And, as far as I know, last year we agreed to increase wheat exports to China,” Mr. Khasenov told.

According to him, in 2014-2015 Kazakhstan’s grain export potential will make 8-9 million tons. In the 2013-2014 marketing year, Kazakhstan exported 8.7 million tons of grain.

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Kazakhstan compensates costs of domestic enterprises for certification of goods 0

Posted on August 19, 2014 by KazCham

Business Intelligence from Colibri Law Firm: Issue #91 

The Kazakh government has indemnified the costs of a number of domestic companies incurred by the certification of goods, works, services and quality management systems, the press service of the Kazakh Ministry of Industry and New Technologies told Trend.

“The compensation is related to the expenses the companies faced in connection with the passing of the certification procedure of goods, works, services, and quality management systems (in accordance with international ISO, API, ASTM standards),” the press service said.

Such enterprises as “KSP Steel” LLP, “Astana Solar” LLP, “KPM Plast” LLP, “Format Mach Company Engineering” LLP, “Kazlegprom-Almaty” LLP, “Zhigermunayservis” LLP, etc., have already received compensation from the government according to the ministry’s report.

In accordance with the Kazakh government decree, compensation is performed on 27 types of industries, including: manufacturing of electrical equipment, textiles, rubber, plastic products, and others.

As the ministry reported, the amount of compensation amounts to 50 percent of the amount spent for the certification. However, the amount of compensation should not exceed 3,000 of monthly calculation index (MCI).

“The costs are reimbursed by those Kazakhs producers who are registered in a database of goods, works and services and their suppliers on the “Local Content “portal,” the press service said.

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Kazakhstan presents a new package of incentives for foreign investors 0

Posted on July 14, 2014 by KazCham
Colibri Law Firm
Minister of Economics and Budget Planning of the Republic of Kazakhstan Mr. Erbolat Dosaev presented a new package of incentives for foreign investors at the International Investment Conference in Astana on 2 May 2014. The set of the following amendments to the respective laws and regulations of the Republic of Kazakhstan will be introduced to the Parliament in June-July 2014.
– Visa facilitation; unilateral visa-free travel for the citizens of certain developed countries with the period of stay up to 90 days; as well as issuance of investors visas to the management of local subsidiaries of the foreign companies.
We note, that beginning 15 February 2004, certain types of business, tourist and private visas are issued to the citizens of 45 developed countries without official invitation.– Investors will have an opportunity to employ foreign stuff for the period of the investment project and one year after its completion outside the quota and without work permit.
We note, that currently foreign employees are required to obtain a work permit, except for the secondees who are entitled to a 120 days stay under a regular business visa within one calendar year.– Legislative 10 years stabilization clause, freezing the forecasted and regulated tariffs and prices in tax, migration and ecologic spheres.– Implementation of the OECD recommendations re international commercial arbitration. 

– Additional incentives for the investment projects of TNCs: investment subsidies of the State compensating up to 30 per cent of capital expenditure upon putting the facility into service; exemption from corporate income tax for 10 years; long-term secured order of goods and services from national companies and state authorities. 

– One-window procedure for all licenses and permits as well as queries of the investors will be carried out by the Committee for Investments of the Ministry of Industry and New Technologies. 

We note, that in accordance with the existing Kazakhstan law, foreign investors refer for licenses, permits and queries to respective Ministries and other state authorities. – State subsidies covering utilities and transportation costs, increase of lease period of agricultural land.

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Kazakh MFA launches multilingual website to communicate the main policy priorities of Kazakhstan’s UNSC bid 0

Posted on May 20, 2014 by KazCham

Kazakhstanunsc.com

Kazakhstan has launched a website to communicate the main policy priorities of Kazakhstan’s UNSC bid, which was launched last year. Kazakhstan’s bid is based on four central pillars: food securitywater securityenergy securityand nuclear security.

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“Business Road Map-2020”: A Solid Start 0

Posted on September 03, 2013 by KazCham

Astana Calling, Issue No. 318, 23 August 2013

Business Road Map-2020” and its progress were priority items on the agenda at recent government meeting. Prime Minister of Kazakhstan Serik Akhmetov praised the early success of the ten-year program and insisted that the government will continue to monitor the financing and other indicators of progress.

Introduced in 2010 by Presidential Decree No. 958, “Business Road Map-2020” aims to stimulate industrial and innovative development while overseeing reliable and balanced growth of private business. Job creation and preservation of existing jobs are also key concerns. Although the program is financed by the newly created Ministry of Regional Development within the central government, it is wholly managed by local authorities.

During last week’s government meeting, First Deputy Minister of Regional Development, Kairbek Uskenbayev reported that more than 36,000 entrepreneurs have applied for assistance from the program. The result: 145,000 jobs maintained and 40,000 new jobs created. To put these numbers in perspective, one in five new jobs in Kazakhstan is being created because of “Business Road Map-2020.”  In addition to the thousands of saved and new jobs, KZT 56bn in taxes has been generated.

To conclude the meeting, Prime Minister Akhmetov highlighted the positive results of “Business Road Map-2020” and encouraged the Ministry of Regional Development and local authorities to work more closely to help the program reach its full potential.

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Astana and Almaty To Host Large Agricultural Fairs 0

Posted on August 30, 2013 by KazCham

AgroWorld

Astana will host from October 30th to November 1st the IFWExpo KazAgro/KazFarm 2013. Kazakh ExpoGroup and IFWexpo Heidelberg GmbH of Germany are organizing the exhibitions to demonstrate and even sell agriculture machines and tools for animal husbandry. 200 companies from Australia, Austria, Belarus, Brazil, Denmark, France, Germany, Hungary, Italy, Canada, the Netherlands, Poland, Russian Federation, Saudi-Arabia, South Korea, Turkey, Ukraine, USA, and Kazakhstan will be in attendance. This will help with Kazakhstan farmers in buying new equipment and building new partnerships and sales channels in the agriculture sector.

The agricultural area of Kazakhstan comprises 80 million hectare, thereof 25 million hectare farmland and about 50 million hectare pastures. Kazakhstan belongs to the 12 biggest wheat producers worldwide.
Here is a list of KazFarm 2013 Exhibitors.

AgroWorld Kazakhstan will be hosting the 8th Central Asian International Agriculture Exhibition in Almaty from November 5th-8th. ITE Group PLC and Iteca LLP out of the United Kingdom are the organizers of the event.

About 15 countries and about 30 companies will be in attendance showing their agricultural equipment to people attending.

AgroWorld Kazakhstan will focus on:

  • Animal Husbandry
  • Poultry
  • Veterinary, Fodder
  • Greenhouses, Plasticulture
  • Irrigation & Water Management
  • Water and water technologies
  • Fertilizers & Chemicals, Plant Protection
  • Post Harvest Treatment
  • Researches and developments
  • Software & Hardware

Please contact the Embassy of Kazakhstan in Washington, DC if you have questions about attending these shows in Kazakhstan.

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North Dakota cattle taking hold in Kazakhstan 0

Posted on November 07, 2012 by KazCham

By James Mac Pherson, Oct 31, 2012 

BISMARCK, N.D. (AP) — Transplanted North Dakota cattle are thriving in Kazakhstan’s cold climate, but many of the former Soviet republic’s cowboys are still greenhorns, so it has hired Great Plains ranch hands to help out and is sending some of its own to the U.S. for training, a state trade official said.

Dean Gorder, executive director of the North Dakota Trade Office, said about a dozen Kazakh cowboys will visit North Dakota ranches next month for an intensive, two-week crash-course in tending cattle.

“There is no classroom work,” Gorder said. “It’s hands-on working with cows.”

About 5,000 Angus and Hereford cows bred to withstand North Dakota’s brutal-cold winters have been airfreighted to Kazakhstan over the past two years as part of a decade-long effort to rebuild the former Soviet republic’s cattle industry.

Most of Kazakhstan’s cattle were sold or slaughtered after the collapse of the Soviet Union in 1991, and its herd had been reduced from about 35 million animals in the early 1990s to about 2 million.

Gorder, who is returning from Kazakhstan this week, said the country’s new cattle herd appears to be thriving thanks largely to North Dakota’s cattle genetics and help from North Dakota, Nebraska and Kansas cowboys hired by the oil-rich country that stretches from Central Asia into Eastern Europe.

“The percentage of successful calving is very high and they’re very happy with the cattle,” Gorder said Tuesday by telephone from Bucharest, Romania.

Cattle from North Dakota typically have thicker coats, more marbling and fatty tissue, agriculture officials say.

The cattle in Kazakhstan, however, aren’t fattening at the rate they would be on North Dakota ranches, he said.

“They are not gaining as much weight there but we are reminding (Kazakhstan officials) that cattle are what they eat,” Gorder said. “The food that they have in Kazakhstan does not have the nutritional value a typical rancher in North Dakota will feed his cattle.”

A Bismarck-based company plans to fly about 3,000 more North Dakota-bred cows to Kazakhstan this fall on jumbo jets, said Dan Price, co-owner of Global Beef Consultants LLC. Price said his brother, Bill Price, has been in Kazakhstan over the past two weeks negotiating the deal.

“They’re building up their herd and they seem to be pleased with our cows,” Price said.

Most of the cattle come from North Dakota ranches, but some come from surrounding states, Price said.

Kazakhstan also has been importing cattle from Canada and Australia, Price and Gorder said.

“A lot of the Canadian cattle came from North Dakota genetics,” Gorder said.

Kazakhstan’s cold climate mirrors North Dakota’s, he said.

“That’s where the U.S. and Canada cattle have an advantage over Australian genetics,” Price said.

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Khorgos To Become Kazakhstan’s Trans-Eurasian Transport Hub 0

Posted on July 19, 2012 by KazCham

Jamestown Foundation, Jul 10, 2012 — Volume 9, Issue 130

On June 28, Kazakhstan’s Senate amended the country’s transport regulations partly to allow for the state railways operator, JSC “NC” Kazakhstan Temir Zholy (KTZ), to develop a transport and logistics company, spearheading the country’s transformation into a Eurasian transport hub (Kazinform, June 28). Exactly how this new state-led company will be organized remains to be seen, but KTZ seems to be preparing for an expansion of its scope and activities. In early July, it placed $800 million in 30-year Eurobonds on the London and Kazakhstan stock exchanges, and KTZ is expected to be a major part of Kazakhstan’s so-called People’s IPO in the coming years, wherein ordinary Kazakhstanis will be able to invest in some of their country’s largest enterprises (IFR, July 7).

But, the focus of KTZ’s activities in the transport area is the burgeoning “land port” at Khorgos on the China-Kazakhstan border, northeast of Almaty. As a result of a number of agreements between Astana and Beijing, the area around Khorgos is set to become a Special Economic Zone (SEZ), with 30-day visa exemptions for businessmen operating in the zone. Plans call for centers for trade, tourism, culture and sports, a number of hotels, as well as an airport and the terminus of a railway to Almaty, which is to connect with the Chinese-funded high-speed railway project planned to run from Almaty to Astana (Tengrinews, May 25, 2011). According to the World Bank, Khorgos is to be a key node on the Western Europe-Western China International Transit Corridor, coordinated by the Central Asia Regional Economic Cooperation (CAREC) program (World Bank, May 1). An immense new freight terminal has already been built, with bays for six trucks to be inspected simultaneously.

However, on recent visits to Khorgos, on the Chinese and Kazakhstani sides, traffic crossing the border was relegated to the old customs post, where trucks, buses and cars had to wait single file for document checks and inspections. Observations confirmed massive construction underway on the Chinese side and major plans for the SEZ on the Kazakhstani side. Two large modern markets operated on the Chinese side, one for Chinese goods and one for “Central Asian” wares, but neither was particularly busy due to the traffic delays. No active businesses were observed on the Kazakhstani side except for a Sinooil station about a mile down the road from the border. Truck queues stretched for miles, a common site at Central Asian border crossings. After the May 2012 incident in which a Kazakhstani guard on the Chinese border killed 14 of his colleagues, Astana is also reportedly reassessing its border security procedures (see EDM, June 27).

With the Russian-led Customs Union in place, Khorgos is a gateway for Chinese goods to reach not only the growing Kazakhstani market, but also much farther afield into Russia, Belarus and possibly Kyrgyzstan. Once goods go through customs at Khorgos, they should be able to cross into Russian territory without further checks, although in practice this is not always the case. But, the Customs Union may also be a cause for some of the observed delays in the development of the SEZ. Moscow is concerned about its market being flooded with cheap Chinese goods and may be applying pressure on Astana to be more cautious in its cross-border partnership with Beijing. Kazakhstan’s leadership, however, seems to be looking for a wider range of partners for the project.

Due largely to the project’s international scope, KTZ has been able to attract extra-regional business partners to Khorgos. Toyota, for example, signed an agreement in May to develop an “integrated logistics product in Kazakhstan and Japan,” so that Japanese, South Korean and other East Asian producers can easily move their goods through Khorgos and across Kazakhstan to reach Western Europe (Tengrinews, May 25). From the West, Deutsche Bahn agreed in February to provide technical assistance for and invest in Khorgos as part of a partnership with KTZ aimed at realizing the Chongqing-Duisburg trans-Eurasian rail corridor (KTZ Press Service, February 10).

KTZ took control of Khorgos in mid 2011, after Kazakhstan’s Financial Police busted a smuggling ring operating at the border crossing The criminal group had allegedly siphoned off $130 million worth of goods and customs duties (Central Asia Online, May 3, 2011). The raid, which saw arrests as far afield as the UAE, resulted in the dismissal of Kazakhstan’s customs chief at the time and a reassessment of priorities at Khorgos. Recent construction delays at Khorgos may also have to do with the managerial transition after KTZ’s takeover and the shift to a more professional operation of the land port on the Kazakhstani side.

In Astana’s plans for Kazakhstan to become a trans-Eurasian transport hub, Khorgos is slated to be the jewel in the crown. So far, it is still very much a work in progress. KTZ’s new transport and logistics company will likely determine the speed of that work in the months and years to come.

–Alexandros Petersen

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Kazakhstan Ambassador to Kazakhstan met with XUAR management 0

Posted on July 17, 2012 by KazCham

Tengrinews, Jul 13, 2012

Kazakhstan Ambassador to China met with top management of companies of Xinjiang Uygur Autonomous Region (XUAR), Tengrinews.kz reports citing the press-service of Kazakhstan Foreign Ministry.

“On July 9-12 Kazakhstan Ambassador to China Nurlan Yermekbayev visited Xinjiang Uyghur Autonomous Region. In Urumqi he met with Secretary of the Region’s Party Committee Zhang Chunxian, Deputy Chairman of the People’s Government Zin Ho and Chairman of the National Political Consultative Council of XUAR Askhat Kerimbay,” the message states.

According to the Ministry, Nurlan Yermekbayev discussed development of bilateral trade and economic cooperation, including commissioning of Altynkol-Khorgos railroad passage, full functioning of Khorgos International Center of Transborder Cooperation, use and protection of transborder rivers, etc.

“Kazakhstan Ambassador expressed the country’s interest boosting cooperation with XUAR companies specializing in production of high-tech commodities with the prospect of technologies transfer. Nurlan Yermekbayev also met with managers of major Xinjiang companies: Sanbao Industry Group Co., Ltd, Xinfeng scientific-technical corporation and TBEA corporation,” the Ministry states.

The meetings covered development and prospects of business cooperation in alternative energy sources, construction of industrial facilities and transport logistics.

The same day head of Kazakhstan diplomatic mission met with representatives of Kazakh community in XUAR. The meeting covered enhancement and development of connections with the fellow countrymen, in particular, in history and cinematography.

Nurlan Yermekbayev also told about the measures Kazakhstan government takes to support ethnic Kazakhs living abroad. Ambassador also met with heads of the governments of Ili-Kazakh Autonomous Region Manen Zeineuly and Altay Region Talgat Yussun in Kuldzha and Altay cities. In the course of the meetings they exchanged opinions on cooperation in agriculture, use and protection of transborder rivers, transit-and-transport potential of both countries. Nurlan Yermekbayev asked to submit suggestions on the Inter-Regional Cooperation Plan between Kazakhstan and China that is being prepared by experts of both countries.

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