News

The first PMI report in cooperation with Freedom Holding Corp. was released on October 1, 2024. By supporting the release of Kazakhstan’s PMI® by S&P Global, Freedom Holding Corp. reaffirms its commitment to promoting alternative economic indicators in the local market, enhancing transparency and providing access to critical information about domestic economic activity.

PMI data is sourced directly from purchasing managers, who are the first to notice early-stage changes in the business environment, such as shifts in prices, demand and supply chains. The index is also known for its broad coverage of the national economy, surveying about 250 companies...

According to Kazakhstan’s National Bank statistics, the banks kept on expanding their loan portfolios for both households and businesses in August, while the average market rates continued to decline after July’s base rate reduction.

The cumulative loan portfolio for all categories reached roughly $65 billion by the end of August, a 2% increase ($1.3 billion) compared to July. This includes around $59.3 billion in loans issued in the national currency and around $5.6 billion in foreign currencies. The vast majority of the portfolio (85.5%) are long-term borrowings.

Loans issued to private entities, individual entrepreneurs included, accounted for...

On Sept. 30, Solidcore Resources, a Kazakhstani gold mining company formerly known as Polymetal, announced that it completed a 10-month share exchange program on the Moscow Exchange (MOEX). The company has exchanged 9.5% of the total number of its listed securities, or 66% of the restricted securities, Solidcore said in a statement. 

«The last Eligible Shares will be transferred from Nominated Brokers to the Company Securities Account on 30 September 2024, with the last (sixth) tranche of Exchange Shares to be issued on AIX shortly thereafter, but not later than Oct. 31, 2024.» the release...

Kazakhstan has seen a significant decline in international remittances. In August 2024, Kazakhstanis transferred $166 million through international money transfer systems (IMTS) across 190,000 transactions. According to the National Bank, this marks an 8.5% decrease month-on-month (MoM) and a 29.2% drop year-on-year (YoY).

Most of these transfers (96.7%) were sent abroad, with a smaller portion (3.3%) occurring within Kazakhstan. Popular systems for these transactions include Zolotaya Korona, Western Union and MoneyGram.

Remittances sent abroad from Kazakhstan fell by nearly 25%

Kazakhstanis sent $161 million abroad via 183,400 transactions. The most common destinations for these transfers were Uzbekistan ($62.5 million or...

At the end of the year, the National Bank and the Agency for Regulation and Development of Financial Market (ARDFM) are going to analyze the efficacy of previously taken measures aimed at slowing down consumer lending in Kazakhstan and might go even further in strengthening legal requirements for borrowers, according to Akylzhan Baimagambetov, deputy chair of the National Bank.

«Our colleagues from the ARDFM have introduced this year a set of measures aimed at cooling down consumer lending a little bit. We plan to analyze them before the year ends to see how effective they are...

The Ministry of Agriculture of Kazakhstan is interested in a partnership with Lindsay Corporation, an American company specializing in pivot system manufacturing, and is looking forward to introducing water-saving technologies and up-to-date irrigation equipment in Kazakhstan. According to the agency’s statement, Vice Minister Ermek Kenzhehanuly and Lindsay Corporation CEO Gustavo Oberto discussed the relevant matters during their meeting.

The agency’s task is to increase the gross collection of farm products, so the Ministry of Agriculture aims to achieve this goal by introducing modern irrigation systems, Kenzhehanuly noted.  

«Innovative engineering solutions in the irrigation area, infrastructure...

Fewer Russian citizens have been coming to Kazakhstan to work recently. However, the overall number of Russians entering the country continues to rise, according to Kazakhstan’s Ministry of Internal Affairs.

The ministry reported that from January to September 2024, 5.8 million Russian citizens arrived in Kazakhstan — nearly four times more than during the same period in 2021, a year before the war in Ukraine, when only 1.4 million Russians entered the country.

The latest trend shows fewer Russians arriving year-on-year for employment purposes. Between Jan. 1 and Sept. 1, 2023, 50,784 Russians received residence permits in Kazakhstan for work...

Kazakhstan and Tajikistan are set to sign an agreement to train Tajik border troops at the Academy of the National Security Committee (known by its Russian acronym KNB) of Kazakhstan. Kazakhstan’s government has published a draft decree concerning the agreement on the open legal acts portal for public comment.

The agreement outlines the selection, education and training requirements for Tajik citizens at Kazakhstan’s Academy of the Border Service under the KNB. According to the document, the host country will accept servicemen for training within the academy’s budgetary limits.

Both countries are required to coordinate the trainees’ fields of study annually, finalizing...

The Chinese state company CITIC Construction, a subsidiary of the Chinese investment enterprise CITIC Group (which also controls CITIC Bank), plans to invest more than $1 billion in the construction of a deep grain processing plant in the Almaty region to produce sugar substitutes and sodium gluconate, Kazakhstan’s Ministry of Agriculture reported. 

According to the agency, the new enterprise will be capable of producing maltose syrup, fructose syrup, crystalline fructose and sodium gluconate, including by-products of fibrin and forage. The project is set to be implemented within the Kazbek Bek industrial zone, creating about 2,000 new jobs.

The processing capacity...

Air Astana will install additional fuel tanks on its Airbus A321LR aircraft to make it possible to fly directly to London without refueling. This upgrade is expected to reduce the total time in the air by an hour and a half, the airline reported.

«Air Astana resumes nonstop flights from Almaty to London starting on Oct. 4. Since March 2022, the route has operated with a stop to refuel in Aktau,» the company said in a statement.

According to the airline, this flight will be possible after installing additional fuel tanks on the Airbus A321LR...

Authorities of the Zhetysu region of Kazakhstan have prohibited greenstone mining in the «oval stones» area of the Kyzyltas mountains to preserve the ancient petroglyphs. The enterprise developing the pit near the mountain dubbed «Tortoise» by the locals has been given another site.

Governor of the Zhetysu region Beibit Isabaev has commented on the situation around the unique site, explaining that deposit development had been ceased on legal grounds.

«There is a relevant court decision, meaning that we have mutually crossed all the T’s and dotted all the I’s in this issue. Now we’re working on...

Astana has improved its ranking by four positions, taking 62nd place in the Global Financial Centers Index (GFCI) compiled by the Z/Yen Group Ltd., a U.K.-based consulting company. The capital city of Kazakhstan bypasses many of its peers in Eastern Europe and Central Asia. Almaty ranks significantly lower, at 86th, although it has improved by twelve notches since March. 

The rating is based on three key criteria: telecommunication infrastructure, business environment and corruption perception. Z/Yen Group also conducts an online survey among center representatives to gather their ratings.

New York has held the top position since 2018, followed by...

Russian President Vladimir Putin has announced changes to the country’s nuclear doctrine, expanding the scenarios under which Russia may use nuclear weapons.

«We have to consider new military threats and risks to Russia and our allies. It is important to project possible future scenarios and adjust the strategic planning document to current realities,» he said during a meeting of the Russian Security Council, convened to discuss issues related to nuclear deterrence.

According to the Russian business outlet Kommersant, the updated doctrine will expand the number of countries and defense alliances subject to nuclear deterrence. It...

Kazakhstan and China have agreed to significantly boost cargo transportation along the Trans-Caspian International Transport Route (TITR), which connects China and Europe. The current freight traffic volume on the TITR in terms of trains was not specified. However, according to the Ministry of Transport, by 2025-2026, the number of trains per year is expected to reach 600, with plans to increase this number to 1,000 trains in 2027 and 2,000 by 2029.

A bilateral task force on cargo transportation discussed the need for infrastructure development in the ports of Aktau and Kuryk to accommodate the increase in traffic and prevent...

Since July 1, the European Union has imposed higher tariffs on grain imports from Russia and Belarus. The Kazakh Grain Union believes this situation presents an opportunity for Kazakhstan to increase its grain exports to European markets. However, transportation subsidies are crucial to achieving this goal, according to experts at the Agricom forum.

«To boost grain exports to the EU, we must ensure our prices are competitive with those of Russian grain. Even with tariffs on Russian grain, our transportation costs make it difficult to compete,» said Nurlan Ospanov, head of the Kazakh Grain Union.

Kazakhstan’s Ministry of Transport has drafted legislative amendments to establish direct air travel with the U.S., focusing on strengthening flight safety oversight in line with U.S. Federal Aviation Administration (FAA) recommendations — a crucial requirement for launching the flights, according to KazTAG.

As legislators explained, these amendments are necessary to meet requirements of the U.S. FAA, which conducted a preliminary International Aviation Safety Assessment (IASA) in Kazakhstan over the period from August 26 to August 30, 2024. Following the inspection, recommendations were issued to enhance flight safety oversight.

The amendments to aviation legislation include clarifying terms related to aircraft airworthiness...

The Asian Development Bank’s (ADB) September 2024 edition of the Asian Development Outlook projects Kazakhstan’s gross domestic product (GDP) growth at 3.6% for this year, slightly down from the previous forecast of 3.8% made in April. This adjustment is due to a weaker expansion in services in the first half of the year coupled with lower oil outputs, massive floods and a slowdown in investment. However, Kazakhstan’s economic growth is expected to accelerate to 5.1% in 2025.

«While the economic growth prospects for Kazakhstan look positive in the medium term, its fiscal challenges need to be...

Kazakhstan has placed the Mausoleum of Khoja Ahmed Yasawi under state protection, recognizing the site’s historical significance. Prime Minister Olzhas Bektenov has signed a governmental decree to formalize this action.

The official release states that the government has decided to include the Azret Sultan museum-reserve, which encompasses the mausoleum, on the list of sites under state protection due to its cultural and historical significance and to ensure its preservation.

Specialized internal affairs units will provide security for the facility. The Mausoleum of Khoja Ahmed Yasawi, a 12th-century Sufi master, is located in southern Kazakhstan, in the northeastern part of Turkestan...

Kazakhstan’s first solar power auction in 2024 attracted a total demand of 700 megawatts (MW) for constructing a 100-MW solar plant in the southern part of the country, according to a statement from Korem, the auction organizer.

«On Sept. 23, 2024, auctions were held to select renewable energy projects for a solar power plant with a total installed capacity of 100 MW for the Southern Zone of Kazakhstan’s Unified Electric Power System (UES). During the trading session, participants submitted 34 price offers and seven companies were approved to participate. The total value of the submitted applications...

Kazakhstan and Spain are set to sign a readmission agreement, establishing a legal framework for the extradition of those who stay in one of the states illegally. 

According to the draft regulation available on the legalacts.egov.kz website, both countries have to accept their citizens back if they violate the migration legislation of a country that is a signatory to the agreement. This means that if a Kazakhstani citizens violate the rules of Spain, they will be sent back to Kazakhstan and vice versa. The two countries insist that this regulation doesn’t hurt human rights.

«The governments...

Norilsk Nickel, also known as Nornickel, a Russian mining and smelting company, is thinking about investing in mining projects in Kazakhstan, Kazakh Invest reported.

«During the Central Asia Mining & Metals international trade fair held in Almaty from Sep. 17 to 19, 2024, Kazakh Invest delegation headed by the project department director Bauyrzhan Aitkulov met with local subsoil users and foreign investors… Kazakh Invest also aided a local junior company in meeting with Nornickel representatives. The negotiations were focused on the prospects of cooperation in the sphere of copper and gold production and processing in the...

The National Bank has decided not to require Kazakhstani investors to report their cooperation with foreign brokerage companies or specific transactions on the stock market. The regulator has already introduced this regulation into force along with corresponding amendments to the existing legislation, the Qazaq Association of Minority Shareholders (QAMS) reported.

The document specifically mentions that all existing agreements with foreign brokers and management companies for providing services on the foreign exchange market and the stock market should be removed from the register maintained by the National Bank through its territorial branches.

The new regulation will also alter the way authorities...

BNG Ltd., a Kazakhstani oil company linked with Caspian Sunrise, a U.K.-registered entity, is due to pay $364,000 in fines, the Mangystau region prosecutor’s office reported.

The law enforcement agency has charged the company $365,000 for allegedly breaching subsoil use legislation, as it failed to fulfill its obligations to invest in the socio-economic development of the Mangystau region during its operations from 2022 to 2023.

According to the 2023 financial statement, 99% of the company’s shares were held by Eragon Petroleum FZE, registered in the United Arab Emirates and 1% by the Caspian Sunrise PLC CEO, Kuat Oraziman. The final...

On Sep. 22, a landmine exploded under the police vehicle escorting ambassadors from twelve foreign countries in the Khyber Pakhtunkhwa province of Pakistan. Kazakhstani ambassador to Pakistan, Yerzhan Kistafin, was among those diplomats in the convoy. According to Aibek Smadiyarov, the official spokesperson of Kazakhstan’s MFA, the diplomat is safe and sound. 

«Three Pakistani policemen were injured; one died after the explosion. Representatives of the diplomatic corps reported no injuries. Our ambassador was in that convoy. He is safe now in Islamabad,» Smadiyarov said.

According to the MFA of Kazakhstan, the ambassadors headed towards the...