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Kazakhstan’s Agency for Regulation and Development of the Financial Market (ARDFM) has revealed its stance regarding the threat of U.S. secondary sanctions toward businesses cooperating with VTB Kazakhstan, a subsidiary of the Russian VTB, sanctioned by the U.S. The agency stated it won’t take any active actions.

On July 3, 2024, the Office for Foreign Asset Control (OFAC) of the U.S. Department of the Treasury published a list of sanctioned individuals and entities, warning that cooperation with them bears risk of secondary sanctions. VTB Kazakhstan, the only subsidiary of the sanctioned Russian bank in Kazakhstan, was also on the list.

The Asian Development Bank (ADB) has kept this year’s forecast for the economic growth of Kazakhstan unchanged at 3.8% (as in April), while the International Monetary Fund (IMF) has improved its forecast by 0.4 percentage points to 3.5%. In 2023, the country’s economy grew by 5.1%. Both institutions reported this in their surveys.

The ADB’s forecast for 2025 has also remained unchanged at 5.3%. According to the Asian Development Outlook for July 2024, Kazakhstan’s economy grew 3.7% year-on-year in the first quarter of 2024, driven by the booming construction sector, processing industry and services.

This year, economic growth...

Euronews will start operating in Kazakhstan. This development was reported by Kazakhstan’s Ministry of Culture, citing a memorandum of cooperation signed by Minister of Culture of Kazakhstan Aida Balayeva and Chair of the Board of Directors of Euronews Pedro Vargas David.

«The opening of the regional office of Euronews is a significant opportunity for enhancing comprehensive media coverage and raising awareness about Kazakhstan’s economic, political, social and cultural development among the international audience of the channel,» said the minister.

There is no timeline yet for the office’s opening. However, the two sides have already discussed...

In 2023, KazMunayGas (KMG) paid $1.6 billion in taxes and other fees in Romania and $1.4 billion in Kazakhstan, the company said in a statement.

All in all, the oil producer has paid $3.4 billion to various governments. In Kazakhstan, these payments include the mineral extraction tax, subscription bonuses and other fees.

KMG’s payments to Kazakhstan’s government ($1.4 billion) include $402 million paid to the National Fund of Kazakhstan, $276 million to the state budget and $766 million to local budgets. Among KMG subsidiaries that made the largest payments were the Atyrau refinery ($319.7 million), the Pavlodar refinery...

The government of Kazakhstan and representatives of Anatol and Gabriel Stati, moguls from Moldova, have agreed to leave behind all legal disputes in international courts over oil and gas assets in Kazakhstan, which had lasted for years. The two sides have signed an agreement, the conditions of which are confidential.

A 14-year legal dispute over oil and gas assets in Kazakhstan was resolved with the support and consent of leading creditors of Tristan Oil Limited, an offshore company run by Stati. The government of Kazakhstan, the National Bank of Kazakhstan and the Stati representatives have reached a peaceful and mutually...

By 2029, Kazakhstan aims to create five domestic unicorns, boost its IT exports to $5 billion and implement at least 25 AI products in various economic sectors per year. These goals are part of the Concept for AI Development recently presented by Digital Minister Zhaslan Madiyev at a cabinet meeting.

The term «unicorn» is typically applied to a company valued at over $1 billion. So far, there is not a single unicorn in Kazakhstan, although, according to Yersultan Yermanov, head of the IT Sector Development Department of the Digital Ministry, «it wouldn’t take long» for such a company to arise.

Stock market capitalization of the Kazakhstan Stock Exchange (KASE) has grown by 20.8% over the past three months, according to a report from the platform.

The aggregate value of the stocks increased by $11.7 billion, reaching $67.9 billion. From January to June 2024, the KASE index rose by 23%, reaching 5,151.81 points.

Meanwhile, the volume of traded corporate debt increased by 4.3% to $29.6 billion. Since the beginning of the year, stocks from fifteen new issuers have been listed on KASE: one in the stock sector, one in the KASE Global sector and thirteen in the corporate bonds sector.

As...

The Ministry of Education of Kazakhstan will require teachers to take preventive measures to counter religious extremism in their schools. The agency has also proposed amending qualification requirements for teachers. The draft regulation has been published on legalacts.egov.kz.

If the document is approved, teachers in Kazakhstan will be responsible for the following tasks:

All these changes aim to implement the first article of the Roadmap for Preventing Extremism and Terrorism Among Minors for 2024-2026. The new criteria will be part of the qualification requirements...

According to the Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan, 1,729 schools have been provided with internet access through satellite technology from Elon Musk’s Starlink.

«Currently, 1,729 schools in rural areas have been connected to Starlink, a satellite internet constellation. After successful negotiations with the National Security Committee, we plan to expand the pilot project (about 70 user terminals) to cover the needs of the Ministry for Emergency Situations during emergency recovery,» the ministry said in a statement

In June, Yerzhan Meiramov, the chair of the Telecommunications Committee under the Digital Ministry...

According to Alina Aldambergen, chair of the Kazakhstan Stock Exchange (KASE), the fact that one of its shareholders – the Moscow Exchange (MOEX) – has been hit by U.S. sanctions poses sanction risks for KASE as well.

«Given that one of our shareholders is a sanctioned entity, we’re at risk of being cut off from necessary services and transactions, which is unacceptable as we are the central element of Kazakhstan’s foreign exchange market. In this regard, a decision was made to stop MOEX from having a share in the capital of KASE,» Aldambergen noted.

She...

The Development Bank of Kazakhstan (DBK) has launched a new program aimed at supporting investment projects in the agricultural complex and food industry for 2024-2029. The total amount of financing is about $1 billion. Under the program, applicants will be able to obtain loans starting from $6.3 million for periods ranging from 5 to 20 years. The program does not specify any upper limits for funding.

According to a statement by the development institution, the program aims to promote «agricultural product processing, replace imports and expand exports.» The bank has already approved two projects related to the development of a...

Turkey aims to join the Shanghai Cooperation Organization (SCO) as a full-fledged member. President of Turkey Recep Tayyip Erdoğan announced this intention at a press conference after the NATO summit in Washington, D.C., as reported by Gazete Oksijen.

«Our goal is to become a regular member of the SCO, not just an observer. We already hold observer status. I have separately discussed this issue with Putin, Xi Jinping and President Tokayev of Kazakhstan, asking for support from the regular members of the alliance on this matter,» Erdoğan said, commenting on Turkey’s potential SCO membership.

In...

According to Timur Suleimenov, chair of the National Bank of Kazakhstan, the planned merger of KASE and AIX has been put on hold because the Moscow Exchange (MOEX), which controls a 13.1% stake in KASE, has been added to the U.S. sanctions list. Suleimenov revealed this development during a press briefing on monetary policy on July 12.

«We wanted to create a single exchange holding by merging the potential of the two stock exchanges. That was the point. However, it is impossible when one of the shareholders is under sanctions. We have put it on hold...

Wildberries, a popular Russian marketplace, is set to build two logistical centers in Almaty and Astana in 2025, according to a report from the press service of Kazakhstan’s cabinet.

On July 11, Prime Minister Olzhas Bektenov visited a construction site in Almaty. The new logistical center by Wildberries will have a floor size of more than 100,000 square meters. Construction is expected to be completed in the second quarter of 2025.

The Russian company has already invested $27 million into the new logistical center, which is its first major project outside of Russia. Once the center is commissioned, it will...

According to the Global Wealth Report 2024 by Swiss bank UBS, the number of USD millionaires in Kazakhstan is expected to grow by 37% within four years from 44,300 in 2023 to 60,800 in 2028.

Once this happens, Kazakhstan will be among three leaders in terms of wealth growth out of 56 countries reviewed by experts for the survey. Taiwan is expected to be ranked first, as the number of rich people will rise here by 47%, reaching 1.1 million. The second place is going to be occupied by Turkey, where 87,000 millionaires are expected to live in the country...

Two citizens of the Netherlands and one citizen of Belgium have been detained in Baikonur after trespassing into the territory of the cosmodrome. The police are investigating whether these men have any links to foreign intelligence, the SHOT Telegram channel reported.

According to the source, all three men were detained on July 9 at the refueling station within the cosmodrome. They were detained after failing to show any documents proving they had the right to be there.

The two detainees are citizens of the Netherlands – 25-year-old Martin N.B. and 29-year-old Ooms S.N. The third man, 26-year-old Holben L.D., is...

The Central Securities Depository (CSD) of the Republic of Kazakhstan has advised brokers and managing companies to withdraw Russian securities it currently holds. These recommendations come in response to U.S. sanctions against the National Settlement Depository (NSD) of Russia, as reported by the RBC news agency and confirmed by the CSD’s press service.

According to the depository, the securities in question are identified with the RU code under the ISIN classification. These securities are ultimately held by the NSD, with the CSD acting as their nominee holder.

«In a letter to clients, the Central Depository has...

Net international reserves of Kazakhstan ($37.8 billion) and foreign exchange assets of the National Fund ($61.4 billion) reached a $99.3 billion threshold in June 2024, compared to $98.8 billion in May, National Bank data shows. According to Galymzhan Aytkazin, a Kazakhstani economist and owner of a Telegram channel called Tengenomika, this is a ten-year high. As the expert pointed out, Kazakhstan’s external financial cushions are in their best shape in many years.

Thus, the net international reserves of Kazakhstan, which is the difference between gross reserves and liabilities in freely convertible currency (FCC), amounted to $37.8 billion in June, a...

According to the Astana International Exchange (AIX), its aggregated trading volume increased from $140 million to $707 million from January to June 2024, marking a 21.4% increase compared to all of 2023 ($582 million).

«During the first six months of the year, the AIX proved itself as one of the most rapidly growing exchanges in the region and the frontier market category, achieving significant success in all facets of its business, including trading volume, the number of offerings and new members joining the platform,» the AIX said in a statement.

Currently, there are 184 securities...

Kazakhstan is set to restore traditional Kazakh horse breeds for sporting purposes. President Kassym-Jomart Tokayev has signed a law to this effect, according to his press service.

«The president has signed a law amending and annexing some legal acts related to preserving and reproducing domestic roadster horse breeds,» the press service stated.

The government has allocated $1.4 million to develop sporting horse breeding in Kazakhstan. This funding is intended to save two Kazakh horse breeds – Kostanay and Aday – from extinction, as both breeds have proven their value in numerous tournaments and races.

According...

President Kassym-Jomart Tokayev has presented the national flag to members of the Kazakhstani national team set to participate in the Olympic Games in Paris. He wished them good luck and emphasized that all Kazakhstanis would cheer for them.

During a meeting with the national team, President Tokayev highlighted that the Olympic Games in Paris is a long-awaited event that will be observed worldwide.

«We have great hopes for you and will all cheer for you. Our sporting tradition has always been well-respected. Many of our athletes have won various international tournaments. I am convinced that you...

The Mineral Extraction Tax (MET) for natural uranium production is set to range from 4% to 18%, depending on the volume of production, starting in 2026. This represents a significant increase compared to the 9% rate in 2025 and 6% in 2024.

According to amendments to the tax legislation signed by President Kassym-Jomart Tokayev, the MET rate will be 4% if the production volume of uranium ore concentrate (U3O8) is less than 500 tons; 6% for 1,000 tons; 9% for 2,000 tons; 12% for 3,000 tons; 15% for 4,000 tons and 18% for more than 4,000 tons. Additionally, the MET...

As of April 1, 2024, Kazakhstan’s external debt amounted to $162.5 billion, $0.2 billion less than at the start of the year, according to the National Bank.

This overall figure includes $13.3 billion in public external debt, $15.5 billion in external debt of banks and organizations controlled by the government, $2.8 billion in government-guaranteed external debt and $133.7 billion in private sector external debt.

The Netherlands ($42.7 billion), Russia ($12.9 billion), the U.K. ($12.4 billion), the U.S. ($11.7 billion) and France ($11.1 billion) are the five largest investors in Kazakhstan, followed by China ($9.5 billion) and Bermuda ($9.3 billion).

President of Kazakhstan Kassym-Jomart Tokayev has signed a law to address problem gambling. The law, «On amending some legal acts related to gambling, lottery activities, healthcare, state labor inspection, state control and removing excessive regulation,» prohibits public servants, military personnel and debtors from gambling and bans selling energy drinks to those under 21.

What will change with the new law?

According to the press service of the Akorda (the official residence of the president of Kazakhstan in Astana), the document has expanded the list of people prohibited from gambling and betting. Individuals on the Unified Register of Debtors have been...