News

Freedom Bank wants to leverage artificial intelligence (AI) to automate compliance checks on transactions and customers. The financial organization said that once the new mechanism is commenced, the analysis time will be reduced from two days to a few minutes. According to Aidos Zhumagulov, a member of the bank’s board, the new technology will mitigate the risks of secondary sanctions and become a benchmark for other financial institutions.

«Geopolitics has made us stand in the crosshairs of the corresponding banks since we are in a somewhat risky zone for them. They keep an eye on every...

In the first nine months of 2024, facilities using renewable energy sources (RES) generated 5.7 billion kilowatt-hours (kWh) of electricity, accounting for 6.67% of total production. This represents an 18% increase year-on-year, according to the Ministry of Energy of Kazakhstan.

Out of the 5.7 billion kWh generated, the breakdown by energy source is as follows:

For comparison, in 2023, RES facilities generated a total of 6.6 billion kWh of electricity, which accounted for 5.92% of total output. In...

Russia’s Ministry of Economic Development proposes that the Commonwealth of Independent States (CIS), of which Kazakhstan is a member, conclude an agreement on cross-border bankruptcy. This would allow any CIS country to initiate bankruptcy proceedings by court order against citizens and legal entities that have a significant portion of their assets and creditors in that country, regardless of their place of residence or registration.

The draft agreement has been prepared to «establish legal certainty in cross-border bankruptcy relations.» It outlines a bankruptcy process involving international elements, such as when a company has foreign debtors, creditors or assets in multiple countries.

Since January 2024, companies in Kazakhstan have raised over $6.2 billion through bond issuing, a 2.3-fold increase year-on-year, according to the Association of Financiers of Kazakhstan (AFK).

The top corporate bond issuers were:

The AFK also reported that bond yields range from 12% to 20%, while deposit yields are between 13% and 16%.

As for government securities, the AFK noted that high rates...

President of Russia Vladimir Putin has gotten familiar with a symbolic banknote of BRICS during the organization’s summit in Kazan. The banknote’s design includes flags of all the alliance member states, including Kazakhstan, that in fact had refused to join BRICS.

According to Dmitry Peskov, the official spokesperson for the Russian president, the banknote was printed by «someone of ours, probably by someone from the trade chamber or someone else.» Putin showed the banknote to his ministers after a meeting with a wide smile on his face.

Elvira Nabiullina (the governor of the Central Bank of Russia) didn’t like...

The Ministry of Agriculture of Kazakhstan is asking other public agencies to find new markets for grain exports due to record-high yields of 26.5 million tons. However, the Ministry of Trade estimates the overall market capacity for Kazakhstani grain exports to be 12 million tons. The government aims to export Kazakhstani grain to Pakistan, Indonesia, Brazil and Malaysia while boosting supplies to China and other Asian countries by 1.6 million tons.

Agricultural Minister Aidarbek Saparov recently revealed that this year, the country harvested a record-high yield of nearly 16 centners per hectare (26.5 million tons), a significant boost compared to...

The Astana International Financial Centre (AIFC) has granted Recognized Non-AIFC Member (RNAM) status to Raiffeisenbank, a Russian subsidiary of Austrian Raiffeisen Bank International, as reported by the Astana International Exchange (AIX) press office. 

«Raiffeisenbank has been granted RNAM status by the Astana Financial Services Authority (AFSA). This means that the regulator recognizes the active broker license of Raiffeisenbank. This status is a milestone on becoming an AIX trade member, but the bank still has to go through an onboarding process,» the statement read.

This means that AIX has acknowledged Raiffeisenbank’s broker license, paving the way...

Kazakhstan plans to begin exporting domestically produced cars to Afghanistan next year, according to Deputy Prime Minister Serik Zhumangarin.

«Kabul is developing rapidly, marked by ongoing construction and increasing trade. A middle class seems to be emerging, bringing greater purchasing power. As a result, our Afghan colleagues have requested that I arrange meetings to discuss establishing car centers for selling new and used cars from Kazakhstan. I’ve already reached out to several contacts and we are pursuing this initiative,» Zhumangarin said.

He added that Kazakhstan may begin exporting cars next year, but first, they need...

According to Bagdat Musin, former minister of digital development and current CEO of the Kazakhtelecom telecommunications company, the sale of Mobile Telecom-Service, which operates under the Tele2 and Altel brands, will be completed by the end of this year. The deal was initially planned to be closed by late September. 

«We are going to close this deal before the year ends, but there is room for some challenges to appear, making us meet the buyer halfway. Although the contract has already been signed, this is a foreign investor, so we have to adjust to their procedures...

Kazakhstan and Uzbekistan will jointly implement 74 industrial projects valued at $3.4 billion, creating 14,600 new jobs, according to Kazakhstan’s government press office.

Out of the 74 projects, 11 have already been completed — nine in Kazakhstan and two in Uzbekistan — employing 4,800 people. Examples of joint ventures include the small-scale production of Chevrolet cars in Kostanay, the Silk Road Electronics household appliance factory in Saran, sewing and textile factories in Shymkent and the Turkestan region, and autoclaved aerated concrete production in Angren.

In total, 65 of the planned projects will be carried out in Kazakhstan, creating 13,600 jobs.

Kazakhtelecom, the national telecommunications operator, plans to invest up to $1 billion to provide fiber-optic internet to one million Kazakhstanis by the end of 2027, according to Bagdat Mussin, head of Kazakhtelecom, who spoke at the recent Kursiv Ecosystems Forum 2024 in Almaty.

Mussin stated that approximately 1.8 million households use fiber-optic and wired internet services provided by Kazakhtelecom, with about 800,000 using wired connections.

«You’re probably wondering what we can do to make everyone happy. Well, you likely already know the answer — focus on improving internet quality. So I started thinking about how to...

A new satellite internet service from Eutelsat OneWeb (a joint company of the UK and France) is set to begin operating in Kazakhstan next year. According to Digital Minister Zhaslan Madiyev, this new provider will ensure that people living in remote areas gain access to a high-speed internet connection.

The Kokterek Center of Space Communication, located in the Almaty region, has already tested the technology. Madiyev announced that residents of more than 300 villages currently lack access to quality internet services in Kazakhstan, and the new provider is expected to improve this situation. However, he did not clarify whether the...

Uzbekistan has introduced criminal liability for child abuse. Additionally, domestic abusers can no longer settle with their victims before court hearings. If a settlement is to occur, it must happen in court. The Senate emphasized that this change serves as a message to abusers, signaling that there is no way to escape punishment.

President Shavkat Mirziyoyev has already signed the law, according to Gazeta.uz.

«We are going to establish legal liability for child abuse within families. Please note, children have only been added to articles addressing physical violence,» the media outlet reported.

The amendments...

According to Freedom Holding Corp. Founder and CEO Timur Turlov, an ecosystem developed by the company has the potential to become part of a larger global network or extend well beyond Central Asia.

«I keep telling my team that even if we become the most popular service in Kazakhstan, it won’t be enough to ensure our survival. So we need to expand globally to secure the resources necessary to compete with tougher players in the market. Ultimately, we may become part of a larger ecosystem, which overall isn’t bad and could perhaps be beneficial for our...

The governor’s office of the Kostanay region has announced plans to build 165 wind power plants with a total capacity of one gigawatt (GW).

“Kumar Aksakalov, governor of the Kostanay region, has signed a memorandum to construct 165 wind power stations with a combined output of 1 GW. This marks a key step towards energy independence for the region, which is currently facing an electricity shortage for its industrial needs,” the statement read.

Current energy consumption in the Kostanay region is 0.45 GW, while local production lags significantly, generating only 0.12 GW. The governor’s office...

The Ministry of Defense of Kazakhstan has prepared a draft regulation proposing that President Kassym-Jomart Tokayev revise two key agreements with the Collective Security Treaty Organization (CSTO). The proposal seeks to strengthen coordination between the military forces of member states during emergencies. Both documents have been published on the http://legalacts.egov.kz website.

The first agreement focuses on cooperation between CSTO member states regarding troop and equipment transportation. The document outlines common procedures for troop movement and transit during force majeure circumstances and crises.

The proposal introduces new standards for information exchange in the event of a failure or catastrophe, and...

Mikhail Lomtadze, CEO and co-founder of Kaspi.kz, has recently explained the reasoning behind his company’s acquisition of a 65% stake in the Turkish marketplace Hepsiburada. The Kazakhstani fintech giant struck the deal last week.

According to Lomtadze, many companies were considered, but Hepsiburada stood out because of its appeal and Turkey’s strong economic and structural performance as its country of origin.

«Making decisions like this requires a 50/50 blend of intuition and analysis. The Turkish market is appealing to us due to its structure, economy and large market size, with over 85 million people. However, the...

Between July and September 2024, Kazakhstanis purchased nearly 14,000 gold bars, a 5.5% decrease quarter-on-quarter (QoQ), according to the National Bank. By the end of September, the price of gold exceeded $2,700 per troy ounce.

A total of 475.5 kilograms of gold bars were purchased in the third quarter, reflecting a 39% or 1.6-time decline QoQ.

During the reporting period, more than half of all gold (58% or about 8,000 bars) was bought by residents of Almaty. Residents of Shymkent and Astana each accounted for around 9% of total purchases or about 1,300 bars. In the previous quarter, Almaty residents...

The Ministry of Agriculture of Kazakhstan has discovered more than 159,000 chrysanthemums from the Netherlands infected with a fungal disease.

The State Inspection Committee of Kazakhstan discovered the presence of the Puccinia horiana fungus in sprigs of the imported flowers. This infestation causes the «white rust» disease, which mostly affects the leaves of the flower.

The inspectors collected samples of infected flowers and sent them to the Almaty Zonal Quarantine Laboratory, where the presence of fungus was confirmed. As a result, the flower owner was fined, and the infected products were returned to the Dutch supplier.

In a related development...

The Turkic states have supported Kazakhstan’s initiative to establish the Board of Central Banks and the Board for Green Finance, according to the Prime Minister’s press office.

The idea was discussed at the 13th meeting of trade and economy ministers from the Organization of Turkic States (OTS), which includes Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey and Uzbekistan, with Hungary and Turkmenistan as observers.

During the meeting, Nurlan Baibazarov, Kazakhstan’s minister of national economy, highlighted that the Turkic Investment Fund established within the OTS will help facilitate the implementation of joint projects and attract capital. Furthermore, Kazakhstan proposed the establishment of two new...

Chinese companies want to resume Kazakhstani grain imports, the press office of Kazakhstan’s Ministry of Agriculture reported. The preliminary arrangement implies acquiring the first 100,000 tons of grain and oilseed crops. 

A Chinese delegation led by representatives from China Grain Reserves Group Ltd., CITIC Construction and the China Association for the Promotion of International Agricultural Cooperation (CAPIAC) visited Kazakhstan to negotiate the issue.

At a meeting with Chinese partners, Aidarbek Saparov, Kazakhstan’s minister of agriculture, announced that this year’s harvest has been successful, with 26 million tons of high-quality wheat produced, while an additional three million tons of oilseed crops...

The consumer confidence index (CCI) has shown improvement, indicating a slightly more optimistic outlook among consumers, though growth remains weak. However, adult consumers and a quarter of Kazakhstan’s regions are still in the pessimistic zone. Inflation expectations exceed perceived levels and consumers anticipate price hikes in the short and long term. There is also increased concern about the labor market, although the overall anxiety level continues to decrease.

This report highlights the findings from the 22nd wave of Freedom Finance Global PLC’s Consumer Confidence Survey, conducted monthly since November 2022 using United Research Technologies Group’s methodology.

Moderate growth continues

The second round of presidential elections in Moldova will happen on Nov. 3. According to the country’s Central Election Commission, Maia Sandu, the current president, was leading in the first round, though she did not secure more than 50% of the votes.

As of early morning on Monday, the election commission had processed 97.88% of the ballots with the following results:

CanAgro, a Canadian machinery supplier, is set to establish an agricultural machinery plant in Kokshetau, according to Kazakh Invest. Preliminary estimates indicate that the company is going to invest $4 to $5 million in the project, aiming to sell the equipment produced at the plant within Kazakhstan, as well as in Central Asia and Russia.

Kazakh Invest, a national company entrusted with foreign investment promotion in Kazakhstan, reported that CanAgro plans to begin supplying components to Kazakhstan in February 2025 to manufacture the first batch of machinery. The initial phase of the project is expected to create 20 to...