News

The U.S. Department of the Treasury has included Russian Expobank on its sanctioned list. In early December 2023, some media outlets reported that Igor Kim, co-owner of Expobank, wanted to transform its Kazakhstani microfinance organization Bereke into a bank. The businessman also controls Seif Lombard in Kazakhstan.

As Expobank representatives told Frank Media, the bank continues to work as usual and all transactions are available for those who possess cards issued by the financial institution. The bank’s client will also be able to conduct money transfers to countries considered by Russia as «friendly» with the help of a wide network...

Minister of Finance Yerulan Zhamaubayev said that traffic jams at the border with Kyrgyzstan often occur because of operations by Kazakhstani law enforcement agencies to fight smugglers. He expressed the hope that the problem will disappear shortly and Kazakhstan will become a transit hub for all of Central Asia.

What happened? MP Maksat Tolykbayev asked the minister why there were so many traffic jams at the border between Kazakhstan and Kyrgyzstan.

«In the vast majority of cases when we have 500 to 600 vehicles in a traffic jam, the cause of this are operations by Kazakhstani...

Kazakhstan is going to cut the number of athletic disciplines that are financially supported with public funds. According to Minister of Tourism and Sport Yermek Marzhikpayev, the list of 180 sports will be cut to just 50 sports.

What happened? The minister of tourism and sport said that the government provides financial support to 180 athletic disciplines, while only 46 of them have been officially recognized by the International Olympic Committee. Moreover, Kazakhstani sportsmen take part only in 20 to 28 sports and usually win in 5 to 7 disciplines. The government is now going to cut the number of...

President Kassym-Jomart Tokayev will exercise personal control over creating the first artificial intelligence (AI) system in Kazakhstan. He said that he would meet specialists responsible for the task regularly, the press service of the president reported.

What happened? While delivering a speech at the Altyn Sapa and Paryz awards ceremony, the president said that he is deeply interested in creating an AI system in the country.

«I think that the future of Kazakhstan and its position in the international community depend on this task. That is why I am going to exercise personal control over this...

According to President Kassym-Jomart Tokayev, the new owner of ArcelorMittal Temirtau renamed Qarmet will bear much responsibility to the government.

What should the new AMT owner be prepared for? As the president highlighted, the issue of ownership over the Karaganda Metallurgic Plant has been successfully solved and currently is under the control of a Kazakhstani company.

«The cabinet should give a hand to the company, especially at the initial stage. However, in the end, the new owner will be fully responsible for everything that is happening at the plant. The control will be very strict,» Tokayev...

The production of electricity in Kazakhstan has declined for the second day in a row due to technical failures at power stations and heat distribution networks.

According to KOREM, the operator of the centralized electricity trading market in Kazakhstan, on December 8, the country produced 351.16 million kilowatt-hours of electricity; on December 9, the rate declined to 349.2 million kilowatt hours and then to 340.07 million kilowatt-hours on December 10.

On the other hand, the daily consumption of energy has been increasing in Kazakhstan for the fourth day in a row as many of the country’s regions have reported extremely...

The Agency for the Regulation and Development of the Financial Market (ARDFM) has agreed to provide the international financial holding Freedom Holding Corp. with the status of the banking holding Bank Freedom Finance Kazakhstan, which operates in Kazakhstan under the brand Freedom Bank, the agency said in a statement.

At the same time, the agency also agreed to provide Timur Turlov, the founder and key shareholder of Freedom Holding, with the status of key participant of Bank Freedom Finance Kazakhstan.

Freedom Bank was established in 2021 when Freedom Holding Corp. acquired Kassa Nova from ForteBank. At the time, Freedom Holding...

Over the period from January to November 2023, Kazakhstan exported 1.238 million tons of oil through the port of Aktau and Baku, which is a six-time increase compared to the same period last year, according to KazTransOil, the national oil pipeline company in Kazakhstan (subsidiary of KazMunayGas).

«Over the first 11 months of 2023, exports of Kazakhstani oil through the port of Aktau reached 3,062,000 tons, which is 1,014,000 tons or 50% more than the same period last year. The increase in the amount of oil exported from the port of Aktau has been driven by...

Andrey Lavrentyev, the owner of Allur Auto, has become the new owner of Arcelor Mittal Temirtau (AMT). This news was revealed by Minister of Industry and Construction Kanat Sharlapayev during a press briefing.

The minister said that the deal has already been closed. Indian mogul Lakshmi Mittal handed over its share in the company to the government of Kazakhstan. Then, Lavrentyev, a Kazakhstani businessman bought it from the state. Some media outlets reported that AMT will be renamed QARMET. Rumors about the deal began to circulate two weeks ago but the press service of Allur Auto declined to confirm that...

According to Ms. Manar Smagul, chair of the National Center for Public Health, the country’s authorities can bring to account those anti-vaxxers who spread data that contradicts modern science.

What happened? During a media briefing, a reporter asked the official whether the government would make anti-vaxxers liable for their public actions.

«I’ve never heard about any cases of legal prosecution of anti-vaxxers. However, we have a law on online publications that implies that anyone who spreads misinformation contradicting official scientific data might be brought to account,» Smagul said.

She also noted that the National Center’s...

Kazakhstan’s cabinet has approved a comprehensive plan for further development of big oil and gas projects in 2023-2027, which implies that the oil output must be boosted from the current 89 million tons per year to 105.5 million tons by 2027.

«The government of Kazakhstan has approved the comprehensive plan on evolving big oil and gas projects over the period from 2023 to 2027. Prime Minister Alikhan Smailov has signed the corresponding decree. According to this document, the production of oil within fields such as Tengiz, Karachaganak and Kashagan must be increased up to 105.5 million...

According to MP Adil Zhubanov, if public debt continues to grow at the current tempo, Kazakhstan’s state budget will be at risk of default. He hasn’t provided any details supporting his opinion though, the KazTAG news agency reported.

«Public debt has been growing much faster than the national GDP. For instance, over the past 15 years, public debt has grown by 28% per year, while the GDP has increased by 15% per year on average. If we do nothing to fix the problem, this situation can evolve into a technical default for our country,» Zhubanov said.

The U.S. has taken first place in terms of importing IT services from Kazakhstani companies, according to the country’s Ministry of Digital Development. The U.S. accounted for 8.71% of the entire IT exports by Kazakhstan over the first six months of 2023.

Ireland and the UAE have been ranked second and third with shares of 8.64% and 3.67%, respectively. Among other importers of Kazakhstani IT services are Cyprus (2.65%), Russia (1.72%), Spain (1.54%), the Netherlands (1.51%), the U.K. (1.09%), Germany (1.02%) and Canada (0.19%).

The vast majority of Kazakhstani IT businesses (1,342) are registered with Astana Hub. Part of them...

Earlier this year, I talked about the telecommunication business line within the bigger business of Freedom Holding Corp. (FRHC). Now, it’s time to take a closer look at this incredibly important project for the entire group and see what resources will be allocated for delivering the project and why we have chosen a certain format for its financing.

The current trend in the global market that we have noticed is that the borderline between telecommunication operators and banks is fading. This synergy is similar to what has happened between banks and brokerage companies. Every successful digital bank is transforming into...

President Kassym-Jomart Tokayev has signed an edict that makes heads of central and regional executive bodies and state companies liable for the investment climate in Kazakhstan, according to the Akorda.kz website.

From now on, ministers, local governors and heads of state-owned companies will be responsible for delivering decisions by the Investment Headquarters, which includes the prime minister, first deputy prime minister, ministers, heads of the Samruk Kazyna and Baiterek funds, the National Entrepreneurs Chamber Atameken and the national company Kazakh Invest.

In turn, the chair and members of the Investment Headquarters will be responsible for improving the investment climate and...

Arsen Tomsky, CEO and founder of inDrive, an international ride-hailing service that operates in 40 countries, has become a Kazakhstani citizen, the company said in a statement.

What happened? Arsen Tomsky has obtained Kazakhstani nationality and thanked the country’s government for their trust.

«I have obtained Kazakhstani nationality. I want to express my gratitude to the country’s leadership for their trust and invitation to come to Kazakhstan. I also want to say thank you to all of Kazakhstan and its people for becoming the second home for inDrive,» Tomsky said during the Alternativa Film Awards.

KazTransOil, a subsidiary of KazMunayGas, has revealed its plan to raise the tariff for the transit of Russian oil via the Kazakhstani sector of the Tuymazy-Omsk-Novosibirsk-2 pipeline (TON-2) by 20.9% from about $9.33 to $11.28 per ton for 1,000 kilometers (VAT excluded) starting from 2024.

«Starting from January 1, 2024, the tariff for KazTransOil services on the transit of Russian oil via the TON-2 pipeline that also goes through the territory of the Republic of Kazakhstan will be at $11.28 per one ton for 1,000 kilometers (VAT excluded). The director general of KazTransOil has approved the...

The Ministry of Transport of Kazakhstan has lifted all restrictions that prevented foreign airlines from flying to different cities in Kazakhstan. The Civil Aviation Committee is now expecting that the cost of air tickets will go down.

What happened? Foreign airlines were given the right to fly to big Kazakhstani cities without limitations. The Ministry of Transport has amended its order on introducing the open skies regime and lifted a previous limitation that used to be applied to foreign airlines.

«Foreign airlines have received the right to fly in a range of Kazakhstani airports with no...

On November 28, the Ministry of Finance of Kazakhstan acquired 51,625,495 common shares from KazMunayGas (KMG) for $1.1 billion or $23.17 per share. As a result, the ministry’s stake in the company has increased from 7.69% to 16.15%, KMG said in a statement.

In turn, Samruk Kazyna reported that its share in the company has decreased from 79.73% to 71.27%. At the same time, in early November, the National Bank announced that it had transferred $1 billion from the National Fund and allocated that money for purchasing KMG shares. The ministry plans to acquire the national oil company’s stock for...

According to the World Bank, the organizational structure of the Baiterek holding isn’t transparent enough and its ability to produce influence on the economic growth and creation of effective financial markets is limited. The holding also doesn’t do much to attract private capital. To change the situation, the World Bank suggests reforming the organization.

Currently, Baiterek controls eight development institutes responsible for certain industries including agriculture, construction and housing sectors. The holding also controls entities such as Qazaqstan Investment Corporation, Development Bank of Kazakhstan, DAMU Entrepreneurship Development Fund and Kazakh Export, an export insurance company. 

Micro, small and medium-sized businesses...

In November, Kazakhstan reported 10.3% inflation compared to 10.8% in October year-on-year or 1% in November, and 0.7% in October month-on-month, according to the Bureau of National Statistics.

Food prices have risen by 9.2% over this year or 10.4% in October year-on-year; non-food prices rose by 9.9% over the year and 11.1% in October year-on-year and paid services rose by 12% over the year and 11% in October year-on-year.

In November 2023, prices grew by 37.3% compared to November last year. For instance, mineral and table water prices rose by 19.8%; preserved milk –18.4%, heat-treated milk –15%, fruits and vegetables...

According to Nurlan Ospanov, head of the Kazakh Grain Union, Kazakhstani farmers can find themselves in a vulnerable position as they continue to struggle to find buyers for all the off-grade grain they have produced.

«Our potential in terms of grain exports is limited. We have China and Central Asia and we won’t supply grain any farther because it would require subsidizing transportation costs. Otherwise, it would be impossible to enter any new markets. That is why we are always talking about our traditional markets,» the head of the grain union said.

As Ospanov noted...

According to the Situational-Analytical Center of Fuel Energy Complex, oil output at the Karachaganak oil field has declined by 34% to 23,800 tons per day over the past several days.

«Karachaganak Petroleum Operating (KPO) reported a decline in oil output right after Tengizchevroil and the North Caspian Operation Company (NCOC) did so. The decline in production was caused by a Caspian Pipeline Consortium decision to stop oil loading operations due to bad weather in the port of Novorossiysk. On November 29, KPO reported a 34% decline in oil output from 36,000 to 23,800 tons per day...

Over the first nine months of this year, KAZ Minerals, a copper company, produced 301,200 tons, which is a 7% increase over the same period last year.

«Over the first nine months of 2023, KAZ Minerals produced more than 300,000 tons of copper, a 7% increase over the same period last year. We have achieved this goal thanks to the additional capacity of the second advanced enrichment facility in Aktogay,» the company said in a statement.

In addition, the company also increased production of zinc in concentrate by 24% to 36,400 tons as extraction took...