News

In the frame of the Real Kazakhstan project launched by Kursiv and Chevron, the Karaganda businessman talked about his own small business and advised what you should be aware of before starting a business and how the state can assist. (spoiler: it doesn’t) 

What are the first associations you think of after hearing the word Karaganda? Probably, these are the coal, mines and Karlag (prominent prison in the Soviet era).
Although it’s true – there are many coal mines here that still operate – the spirit of the town has changed now.

My name is Alexander Ermakov, I am 39 years...

The major stakeholders of the company, Vladimir Kim and Oleg Novachuk, are going to increase their own shares in KAZ Minerals and buy minority shares through Nova Resources B.V.

Investment company Nova Resources B.V. offers £6.4 ($8.3 or 3.579 tenge) per share. This price represents a 12% premium to the price of trades closing on October 27. The market value of the company is estimated at £3 billion ($3.9 billion or 1.67 trillion tenge).

According to Interfax, Nova is attracting a loan from VTB to finance the buyout.

The acquisition will be carried out by an arrangement scheme that...

Despite the coronavirus crisis, Uzbekistan remains one of the most promising regions for investment. As proof, wide-scale international projects on the republic’s territory continue to attract capital from the largest global companies even in a pandemic. Local and foreign businesses demonstrate growing interest in investing in Uzbekistan. According to experts, the republic is one of the countries where projects are highly profitable while many industries have weak competition.

Caught unprepared

Large-scale reforms that are associated with Shavkat Mirziyoyev’s rise to power have affected almost all areas of modern Uzbekistan. Changes in the republic’s business climate are particularly noteworthy. Once closed...

The Presidential Professional Sports Club Astana received money from the Samruk-Kazyna Sovereign Wealth Fund for the professional football and basketball teams of the same name, the Barys Hockey Club and the Astana Pro Team for cycling. The PPSC is being shut down to save money on administrative costs. According to Kursiv’s findings, it will help save about 270 million tenge.

Under one umbrella

The PPSC Astana was created on Nursultan Nazarbayev’s suggestion in 2012 and was officially presented in summer 2013. According to the organization’s mission, it would unite and lead the best Kazakhstani sports projects under a single competitive...

Geographically Uzbekistan is located at the intersection of the main trade routes in Central Asia. That is why the country has been a key transport hub for centuries. Modern Uzbekistan is also seeking to unlock this potential. For example, the country’s government establishes an open sky regime, participates in huge railways projects, and updates its tariff rules.

Even though Uzbekistan still faces a lot of challenges in transport and logistic infrastructure, a huge amount of work was already done. 

New promises

According to Uzbekistani State Committee on Statistics, in 2019 the country had transported 1.3 billion tons of cargo...

The international network of supermarkets and trade centers Ramstore owned by Turkish MigrosTicaret A.Ş. is downsizing its business in Kazakhstan. Two shops were already closed last week and two more will be closed on October 7.

On September 24, 2020, MigrosTicaret A.Ş. announced that after reassessing the retail operations of its Kazakhstani subsidiary, the company has started to look for a buyer for one of its stores and is going to lease the other six shops fully equipped with all goods and shop fittings. This announcement was made due to the public disclosure requirement by the Istanbul Stock Exchange. However...

As the NEXTE telegram channel reported, last Sunday was marked by peaceful street protests with tens of thousands of participants. The march was called the People’s Inauguration of the Real President.

According to Tut.by, protests have occurred in Brest, Gomel, Mogilev, Grodno, Vitebsk, Zhodino, Bobruisk, Baranovichi, Lid and Zhabinka. In these cities protests were much smaller in scale; many were beaten and arrested by police.

The Ministry of Internal Affairs estimated about 200 detainees. However, human rights watchdogs reported about 260 detainees. 
In Grodno, as well as Gomel and Mogilev regions, police used a range of non-lethal weapons against protesters...

According to the Ministry of Energy, Kazakhstan is planning to optimize its requirements for oilfield service companies.

As the ministry noted, this step needs some changes to the minister’s decree to be made. After that, it may eventually decrease the burden on business amid the pandemic.  

First of all, if this idea would be accepted, the state will no longer require oilfield service companies to have their own pipelines. The existence of key engineering works and units will be enough.

Secondly, the requirement to have at least two logging devices during field research or geophysical exploration will also be...

TAV Airports Holding plans to create a multimodal cargo hub on the territory of Almaty International Airport JSC. This was reported by the press office of the Ministry of Trade and Integration of Kazakhstan.

«We are interested in this project and are involving our subsidiary company which specializes in the creation of such hubs in airports of various world countries,» stated Fatih Ömür, general director for business development at TAV Airports Holding.

The issue of construction of a cargo hub was touched upon during the meeting of Minister of Industry and Infrastructure Development of Kazakhstan Bakhyt Sultanov with...

Former head of the National Bank of Kazakhstan Kairat Kelimbetov has been appointed head of the Strategic Planning and Reforms Agency of Kazakhstan. President of Kazakhstan Kassym-Jomart Tokayev has signed the corresponding decree, the president’s press office (Akorda) reports.

«Karat Kelimbetov, Governor of Astana International Financial Centre, is appointed chairman of the Strategic Planning and Reforms Agency of the Republic of Kazakhstan,» the head of the state’s decree read.

Kairat Kelimbetov was born on January 28, 1969. In 1993 he graduated from Moscow State University, and in 1996 from the Institute of Market at the Kazakh State Academy...

Suma Chakrabarti has been appointed consultant to the President of Kazakhstan Kassym-Jomart Tokayev, the president’s official website Akorda reports.

«By the order of the head of the state, Sir Suma Chakrabarti is appointed as a freelance consultant of the President of the Republic of Kazakhstan on issues of economic development,» the message read.

Suma Chakrabarti was born in 1959 in India. He graduated from the University of Oxford (BA in Philosophy, Politics, and Economics) and the University of Sussex (MA in Development Economics).

Over the years, he had worked in the International Monetary Fund and the World Bank...

According to Spot website, on September 9 the Kazakhstani department store chain Magnum Cash & Carry has opened a vacancy for an HR specialist in Tashkent.

The key requirements for hiring are knowledge of Uzbekistan’s labor legislation and fluency in the Uzbek language. Earlier, the company was looking for a market researcher in Uzbekistan.

The Magnum Cash & Carry (established in 2007) is the largest department store chain in Kazakhstan. Throughout its13 years of operation, the company has opened 75 different stores in nine cities. Among them are separately standing hypermarkets, supermarkets located in other shopping centers and compact supermarkets.

Since September 1 Tengizchevroil (TCO) has recalled personnel to its production sites including the Future Expansion Project and Wellhead Pressure Management Project (FGP-WPMP) at the Tengiz oil field, according to the company’s press service.

The recall of staff will be set in place in stages, following all health system requirements and depending on the epidemiological situation at the Tengiz field and in the entirety of Kazakhstan.

«Currently, TCO’s production activities are ongoing without interruption, and we continue to take measures aimed at the safe execution of the main operations of the FGP-WPMP ‘critical path’,» the company said.

As...

Kazakhstani cyclist Alexey Lutsenko, who represents Astana Pro Team, has shown the best result for the sixth stage of the most prominent professional cycling race, the Tour de France.

As reported, the 191-kilometer sixth stage of the Big Loop 2020 was mainly through flat land. 

Lutsenko became the first racer who finished the distance with the result of 4 hours 32 minutes and 34 seconds. The second result at this stage showed Spaniard Jesus Herrada from Cofidis, Solutions Credits. He lagged behind the leader by only 55 seconds. The third became Greg Van Avermaet from the CCC Team, who lost...

The main advantage of food truck businesses is mobility. However, they were not so mobile during the quarantine and failed to move from areas around business center to new locations in «sleeper» neighborhoods due to legal loopholes.

What is a food truck and how much does it cost? 

Basically, a food truck is a van equipped with a mobile kitchen and designed to sell food and beverages for takeout. If someone wants to sell burgers or hotdogs from the van, he should spend from 8 to 12 million tenge (from $19,100 to $26,600). About two-thirds is the cost of the...

According to Gazeta.uz, Uzbekistan is planning to build a new city and an industrial zone in the Tashkent region. The new city might be set on a 500-hectare area close to the state border with Kazakhstan. 

As local media reported, the intersection of the road passing through the territory of the Burdokichilik zone that is located next to the state border is indicated as the starting point of the potential new city area. It is also planned to include the territories that lay between the right side of that road and the state border.

As reported, the discussion on the...

The traditional one-day cycle race in memory of the famous Italian cyclist Marco Pantani finished in Cesena.

Italian Fabio Felline, who is representing Astana Pro Team, won the racing event held annually since 2004.

This is his first win as part of the Kazakhstani team.

Second place went to Englishman Ethan Hayter from Ineos Grenadiers, and third place to Alexander Riabushenko from Belarus who is riding for UAE-Team Emirates.

«What can I say? It is such a relief to take this win. My last win was some time ago; therefore, I am so happy to have won today. I...

Astana Pro Team, the Kazakhstani cycling team, has decided on the eight riders who will compete in the 107th edition of the French multi-day race, the Tour de France.

On August 29, Astana colors will be presented in Nice by Colombians Miguel Angel Lopez and Harold Tejada, Canadian Hugo Houle, Spaniards Omar Fraile, Gorka Izagirre, Luis Leon Sanchez and Ion Izagirre, as well as Kazakhstani Alexey Lutsenko. 

Miguel Angel Lopez has been appointed captain of Astana Pro Team.

The main racing event in the world of professional cycling will be held unusually late this year. Initially, it was supposed to...

By the decision of the Board of Directors, on September 25th the Polymetal group of companies will pay their shareholders an interim dividend for the first half of 2020. The total sum will amount to half of Polymetal’s net profit.

According to the data provided by the official Polymetal representative in Kazakhstan, interim dividends for the first half of the year will amount to $0.40 per share. This is twice the payout from the same period of 2019 ($0.20).

The shareholders call noted, «The total amount of dividends declared in 2020 is $481 million. The dividend yield to the average...

ArcelorMittal Temirtau JSC (AMT), Kazakhstan’s largest metallurgical company, is set to appear in court and defend itself again environmental damage charges that could result in compensation payouts worth KZT 1.8 billion and KZT 15.3 million.

The Ecology Department of the Karaganda region has filed claims against AMT with the local economic court. According to the agency’s data, the company’s generation facility, TPP-TBS (thermal power plant and turbo blower station), has released fugitive emissions into the atmosphere. The company also failed to contain emissions when forming and fortifying the dam around the ash pond. The damage from these violations could cost...

According to SCAT airline press service, on August 25, the flight from Nur-Sultan to Almaty suffered a bird strike that triggered an on-board emergency system. However, the aircraft landed safely. 

As underlined by airline press service, the landing at Almaty airport occurred under normal conditions.

«During flight, the crew noticed a strange noise that disappeared rapidly. The operation of engines was absolutely normal during the entire flight. However, the pilots informed dispatchers at Almaty airport about the incident per protocol given the situation. The flight and the landing were normal and with no onboard incidents,» the airline said. 

Later, the...

The country may increase its personal protective equipment (PPE) production to nearly 1.5 million masks per day making a bid to capitalize on the still high demand for such items even after the easing of strict quarantine measures. 

PPE is soaring all over the world. According to Grand View Research, the sales of single-use masks have increased from $800 million in 2019 to $74.9 billion in the first quarter of 2020 with total year sales topping $166 billion.

The high demand is a real stressor for all PPE manufacturers to include Kazakhstan’s Dolce-Pharm.

Tough conditions

Dolce-Pharm is the largest Kazakhstani...

The Ministry of Trade and Integration of Kazakhstan plans to defend the interests of producers and exporters of Kazakhstani silicon to the United States. This was stated by Trade Minister Bakhyt Sultanov on August 20.

In late June, American silicon producers Globe Specialty Metals, Inc. and Mississippi Silicon LLC filed a petition to impose anti-dumping duties on products from Bosnia and Herzegovina, Iceland and Malaysia. Kazakhstan was also included among those listed as claims surfaced that the Kazakhstani silicon imports were being unfairly subsidized. In retaliation, a request was made to investigate countervailing duties on Kazakhstani silicon materials imported into...

The authorities of Kazakhstan plan to exempt marketplaces from two taxes, said Minister of Trade and Integration Bakhyt Sultanov on August 20.

There are 13 Kazakhstani digital trading platforms in the country with the most well-known being Kaspi, Chocofamily, Technodom and Mechta.

«In order to support them, we are exploring the issue of additionally exempting them from corporate income tax and personal income tax. Together with the National Bank, we are working on issues of stimulating development of e-commerce through payment systems,» Sultanov stated.

The rate of corporate income tax withheld from taxable income in Kazakhstan is...