News

The government of Kazakhstan is going to establish a new company to manage recovered public assets under the law on illegally withdrawn assets.

What happened? The Ministry of Finance has published a draft resolution on the establishment of a Limited Liability Partnership, which will be tasked with managing returned assets. The document will be available for public consideration until August 14, 2023.

What name is the government going to give to the new company? Authorities are planning to call the new company the Recovered Asset Managing Company, LLP. The government will have a 100% stake in the entity. For instance...

The Ministry of Health of Kazakhstan wants to introduce a ban on vaping (e-cigarettes). If this initiative is approved, the buying and selling of e-cigarettes will be illegal in Kazakhstan.

What happened? On the sidelines of the government, journalists asked Minister of Finance Yerulan Zhamaubaev what he thinks about the proposal to ban e-cigarettes.

«I think this is the right decision. The Ministry of Health does not have all the information about the potential risks of vaping, and we just don’t know what kind of consequences we are going to face in the future. Even children...

Chris Murphy, the junior U.S. senator for Connecticut and member of the U.S. Senate Foreign Relations Committee has proposed that the U.S. government remove any barriers for trade with Kazakhstan.

What happened? Senator Chris Murphy is speaking in support of granting Kazakhstan, Uzbekistan and Tajikistan the status of permanent normal trade relations (PNTR). He made this proposal in an article he published in The Diplomat. Murphy believes that Russia and China have exerted enormous influence on Central Asian states, while the U.S. has stayed on the sidelines for too long because of the Jackson-Vanik amendment adopted in 1974. This...

According to the Defense Turk media outlet, the Kazakhstani Zenith plant has signed an agreement with Turkish companies ASFAT and YDA Group as it wants to build warships for the country’s navy on its own. Previously, Kazakhstan bought ships from Russia, the United States, South Korea and Germany.

What happened? During the International Defense Industry Fair (IDEF-2023) in Istanbul, the state-owned company Uralsk Plant Zenith JSC signed an agreement with ASFAT and YDA Group, subsidiaries of the Ministry of National Defense of Turkey to build ships for the navy of Kazakhstan. Under the terms of the agreement, the Turkish companies...

Members of vulnerable communities are the most likely to find themselves in modern slavery. Every year, Kazakhstani authorities open roughly 100 criminal cases to investigate cases of human trafficking.

Why do people fall into slavery in Kazakhstan? According to Samat Kusetov, head of the department on human trafficking and protection of participants in criminal proceedings, many found themselves in labor or sexual slavery with no clue about such risks.

«Among key reasons why people get enslaved are lack of awareness, legal illiteracy, cheap labor, breaching immigration laws, influence of internet and pursuit of easy money,» the...

Mamarizo Nurmuratov, chairman of the Central Bank of Uzbekistan, shared his thoughts about digital currency.

The Central Bank of Uzbekistan is studying the international experience to introduce a national digital currency, according to Mamarizo Nurmuratov, head of the bank.

As the official noted, representatives of the Central Bank have already been to China, where they discussed this issue. The regulator is now reviewing the pros of such a currency, Nurmuranov highlighted.

During a press conference, he told reporters that he took part in a financial summit organized by the Central Bank of Russia and devoted to a set of issues...

Amanat Insurance has raised 100 million tenge ($224,859) by offering investors an additional set of shares, according to the website of the Kazakhstan Stock Exchange (KASE).

Amanat has placed 100,000 of its shares with a nominal value of $2.25 each. Given that there had been 1.9 million shares on the exchange before the additional emission, this was just 4.9% of the company’s shares.

All these shares have been acquired by the investment company Fincraft, the sole shareholder of the insurance company. Until recently, the company was co-owned by mogul Kenes Rakishev.

Rakishev controlled 50% shares of Fincraft, then he sold...

On July 26, 2023, the Russian Ozon marketplace started building its biggest logistical center in Kazakhstan near the city of Almaty.

In the first stage, the warehouse will have a floor space of 42,000 square meters. The construction is expected to be complemented by the end of the year by Focus Logistics, a new subsidiary (established in March 2023) of the Kazakhstani BAZIS-A construction holding.

According to a previous announcement by OZON, the new logistical center is going to cost $33.7 million. Once the center opens, it will work as a full-scale fulfillment center that processes and ships goods to...

The National Security Committee of Kazakhstan has helped its Kyrgyz counterparts to crack down on the illegal laboratory that produced synthetic drugs and sold them in former Soviet countries.

What happened? Kazakhstani officials learned about the big drug laboratory in Kyrgyzstan and immediately gave this information to their counterparts in the neighboring country. As a result, the Kyrgyzstani law enforcement agency managed to detain the group’s leader near Bishkek.

«The National Security Committee of Kazakhstan and the Ministry of Internal Affairs of Kyrgyzstan conducted a joint operation and liquidated the big laboratory that produced drugs with...

On July 26, 2023, Minister of Trade and Integration of Kazakhstan Serik Zhumangarin instructed the Agrarian Credit Corporation and Kazagrofinance to support farmers suffering from drought by restructuring their loans.

«Depending on what kind of consequences we’ll see after drought in some areas, farmers can apply for credit deferment. The National Managing Holding Baiterek, Agrarian Credit Corporation (ACC, controlled by Baiterek) and Kazagrofinance (a subsidiary of the ACC) should facilitate those farmers who have suffered from drought to obtain credit deferment,» Zhumangarin said.

According to the agency, 6.1% of fields with cereals, 8.7% of fields...

According to the Sarbaz media outlet, the Kazakhstani army is testing Turkish Anka combat drones. If the tests in the Jambyl region are successful, the Defense Ministry will add these vehicles to the armed forces armory.

What happened? Military specialists at the Center for Combat Training and Combat Application of Unmanned Aerial Vehicles in Taraz are testing the new Anka combat drones from Turkey.

Air staff and maintenance personnel of military unit No. 14157 and representatives of Turkish Aerospace Industries Inc, an aerospace and defense company that designed Anka, have also taken part in the tests.

The Turkish side organized...

The International Monetary Fund (IMF) has improved its outlook for developing countries, including Kazakhstan, for this year and worsened the outlook for 2024.

According to the IMF, developing economies are going to grow by 4% this year, which is 0.1 percentage points more than was forecasted in April. On the other hand, in 2024, this growth will be at 4.1%, which is 0.1 percentage points lower than the previous forecast.

The IMF’s report doesn’t provide a separate outlook for Kazakhstan and other Central Asia states. The entity says that about 61% of all developing countries across the world will reach...

The Agency for Regulation and Development of the Financial Market (ARDFM) has prepared new rules for microcredits online. They will oblige microfinance organizations (MFOs) to implement two-factor authentication when registering new customers.

According to the new rules (entering into force on January 1, 2024), MFO must ensure that clients enter their accounts through two-factor authentication, including biometric identification. Moreover, a customer will be asked to pass two-factor authentication when a microloan is used for acquiring goods and services from an MFO’s partners.

Given that this industry is full of perpetrators who are looking for a chance to deceive good customers...

The Kazakhstan postal service Kaspost has stopped processing money transfers going through the Russian payment system Unistream, which has been put on the sanctions list. However, an operator of the call center of Nurbank told Kursiv that the bank is still working with the payment system.

What happened? As an operator of Kazpost told the Kursiv edition, the company has suspended processing money transfers via Unistream. The press service of Kazpost confirmed this information.

«Since July 21, 2023, Kazpost JSC has suspended supporting money transfers by Unistream, which has been included on the international sanctions list...

The government of Kazakhstan has decided to postpone testing of the space rocket complex Baiterek designed for medium-lift launch vehicles at the Baikonur Cosmodrome. The pause for 2023 to 2025 is due to the current geopolitical situation in the world, according to the protocol on changes to the agreement between Kazakhstan and Russia on the creation of the space rocket complex Baiterek at the Baikonur Cosmodrome.

The Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan assessed the potential political, legal and financial consequences of the changes to the agreement and highlighted that they are justified.

President Kassym-Jomart Tokayev of Kazakhstan has approved amendments to the edict on the state security service (SSS). The agency is no longer in charge of protecting Ex-President Nursultan Nazarbayev.

What happened? The SSS is no longer responsible for the protection of Nazarbayev.

The previous version of the document required the agency to protect the president of the country, the first president – the Leader of the Nation – and other high-ranked officials.

The updated edict, which was recently signed by Tokayev, says that the secret service must «protect the president of the Republic of Kazakhstan and other high-ranked officials.» The...

Over the first six months this year, Kazakhstani automakers assembled 73,100 cars, which is a 40.6% increase over the same period last year, according to a survey by the Association of Kazakhstan Automobile Business (AKAB). In June alone, the output in the automotive sector increased by 29.2% to 14,600 cars year on year.

More generally, over the period from January to June 2023, Kazakhstan produced 66,600 cars (+41.6%), including 4,700 trucks (+21.6%), 1,100 buses (an increase of 1.9 times), 499 trailers, and 188 special vehicles.

Allur, the biggest automaker in Kazakhstan, accounted for the vast majority of this growth. In...

According to the Eurasian Resources Group (ERG), its subsidiary the Sokolov-Sarybai Mining Production Association (SSGPO) produced five million tons of iron ore concentrate and steel pellets over the first six months of this year. In 2022, the company produced 6.2 million tons of the product over the same period.

«Due to the current geopolitical situation, ERG has stopped shipping products produced by the SSGPO to the Magnitogorsk Iron and Steel Works (MMK), which used to be the company’s largest consumer before Western countries introduced sanctions on Russia. As a result, the SSGPO was forced to cut...

The fintech group Kaspi.kz is going to acquire a 40% stake in the Kolesa Group holding, according to the company’s financial report published on the website of the London Stock Exchange (LSE).

The $88.5 million transaction is expected to be closed in the third or fourth quarter of this year. Kaspi.kz will acquire a 39.76% share from an undisclosed subsidiary of the Baring Vostok fund, which is also one of the key shareholders in Kaspi.kz itself.

Mikhail Lomtadze, head and co-owner of Kaspi.kz, will remain the largest owner of Kolesa Group. Under the upcoming deal, he will give 11% of...

The Ministry of Energy of Kazakhstan has signed a contract with the Russian energy company Inter RAO about the scheduled supply of energy. The contract guarantees that Kazakhstan can purchase energy from Russia whenever it’s needed.

According to the ministry, the mechanism of centralized purchase and sale of electricity through the Unified Power Purchaser, which has operated in Kazakhstan since July 1, 2023, hasn’t yet prevented bulk customers from applying for more energy than they really use.

«All this data is available when we are forming a schedule for energy generation based on the capacity of...

The Astana International Exchange (AIX) has launched a program for public ESG bonds, which cancels the initial fee for primary listing and admission for bonds issued this year, the AIX said in a statement.

Moreover, the AIX has decided to cut down the annual listing fee for public ESG bonds from the standard $10,000 to $1,000.

«ESG is one of the key areas that AIX strives to develop and wants to be associated with. The new initiative is driven by our intention to enable ESG-focused companies to raise funds they need to invest in projects linked...

The Ministry of Foreign Affairs of Ukraine summoned Idris Kadyrkulov, Kyrgyz Ambassador to Ukraine and asked him to explain the information about Kyrgyzstani export of dual-use goods to Russia.

What happened? According to the official website of the Ukrainian MFA, the Kyrgyz diplomat was asked to explain how dual-use goods from Kyrgyzstan had been on their way to Russia.

The ministry highlighted that as a member of the international community Kyrgyzstan should comply with international sanctions.

Moreover, officials in Kyiv said that any re-export by Kyrgyzstan of goods that may be used for military purposes in Russia «will be reviewed...

In the first six months of this year, Kazakhstan Railways increased transit cargo turnover by 39.1% to 27.8 billion ton-kilometers, the company said in a statement. Container transit grew by 26% over the same period.

In the middle of July, during a joint meeting by the railway administrations of Kazakhstan and Azerbaijan with exporters, Kazakhstan Railways officials said that over the period from January to June 2023, the amount of cargo going via the Trans-Caspian International Transport Route (TITR) increased 1.8 times as much as last year to 1.3 million tons.

The Kazakhstan Railways’ turnover over the first six months...

The State Committee for National Security of Kyrgyzstan (SCNS) has launched an investigation against several Kyrgyz companies allegedly involved in the illegal supply of drones to Russia.

What happened? The SCNS commented on media reports that the U.S. may want to impose sanctions on Kyrgyzstan «for helping Russia.»

«We can officially confirm that neither the state of Kyrgyzstan nor any state agencies and companies are involved in the violation of anti-Russian sanctions imposed by the United States and other Western countries. However, the SCNS allows that some private businesses and firms might be involved in the...