News

The long-awaited IPO of UzAuto Motors was rescheduled to February 2023 due to low interest in the company’s stocks. The Kursiv edition took a look at which factors prevented the IPO from happening and reviewed the key trends in the stock market in Uzbekistan in 2022.

When one percent is enough

It was expected that UzAuto’s IPO will open the door for many other public offerings in the country. In August the government of Uzbekistan even published a list of companies that were going to go private. In order to raise the attractiveness of UzAuto Motors, its stock has...

Mikhail Lomtadze, CEO and co-founder of Kaspi has bought two million shares of the company from another stockholder Vyacheslav Kim. As a result, Lomtadze is the second largest stockholder after Baring Vostok, according to the company’s data from January 1, 2023.

According to KASE, Lomtadze’s share in Kaspi increased from 23.42% to 24.55%, while Kim’s share declined from 24.26% to 23.35%.

These changes followed the deal between the two major Kaspi stockholders on December 22, 2022. At the time, Lomtadze bought 1.94 million GDR of the company from Kim. Given the average price of $69.10 per common share, the total...

Prime Minister of Kazakhstan Alikhan Smailov has asked the Ministry of Justice to think what measures can be done to amend the Criminal Code and decrease the number of reasons for law enforcement to go after entrepreneurs.

«We have to revise the Criminal Code in order to lift all excessive and unjustified prescriptions that can be used as a reason for launching criminal cases against businesses. The Ministry of Justice has already received an order to strengthen work in this direction and execute a comprehensive approach to the issue,» Smailov said during the cabinet’s meeting devoted to the economic policy.

Nursultan Nazarbayev, the first president of Kazakhstan, has lost the title of «Honorary Senator,» according to Maulen Ashimbayev, the speaker of the Senate.

«Until recently only one person possessed the title of Honorary Senator in our country. Now nobody can acquire this title because it is no longer in our legislation. Let me clarify, we have changed the Senate’s regulations. We reviewed this rule and deleted it. In fact, we have never had a legal base for this practice,» Ashimbayev said after the plenary session of the chamber.

The official also highlighted that the people of Kazakhstan decided to renounce...

The leading independent provider of energy and commodity price benchmarks Argus is going to host the Argus Oil Products 2023. Caspian and Central Asia Markets International conference. The event will be held on March 16-17 in Dubai, UAE.

It is expected that the conference will bring together top managers from the largest international oil, trade and transport-logistic companies. The key goal of the event is to discuss the main development trends in oil and products markets in Caspian, central Asian and Middle Eastern countries.

Among the issues that will be discussed during the conference are the...

Kazakhtelecom has disbanded its subsidiary Khan Tengri Holding through which it owned Kazakhstani mobile operators Tele2 and Altel, according to KASE.

The company is no longer the owner of Khan Tengri Holding B.V. The decision to voluntarily liquidate the subsidiary was made in October 2022.

Khan Tengri Holding was established in 2016 in the Netherlands as a joint venture with Swedish Tele2 Group. Initially, Kazakhstelecom owned just 51% of the company’s shares. However, in May 2019 the operator acquired the remaining 49% of the stock from Tele2 Group.

After the deal, Kuanyshbek Yessekeev, CEO of Kazakhtelecom, described the consolidation of...

In 2022, the total amount of oil produced in Kazakhstan was 84.2 million tons which is slightly less than the previous year (85.7 million tons), according to Bolat Akchulako, minister of energy of Kazakhstan.

«Last year we produced 84.2 million tons of oil and condensate or 101.6% over the 2022 plan… In 2022, the oil export reached 64.3 million tons or 103% over the 2022 plan,» he said.

For example, oil producers extracted 29.2 million tons of oil or 100% over the 2022 plan at the Tengiz oil field; 11.3 million tons (103.8% over the plan) at the Karachaganak oil...

Kazakhstan and Russia are negotiating cooperation in the sphere of gas production, although the announced gas union of Russia, Kazakhstan and Uzbekistan is just an idea, said Prime Minister Alikhan Smailov.

«So far, we haven’t received an official proposal concerning the tripartite gas union. We are going to consider such a proposal as long as we receive it. However, we have already started negotiations with Russia concerning gas supply,» he said to journalists.

The prime minister noted that Kazakhstan is preparing for the next round of talks with Gazprom. «These bilateral discussions are continuing. We are going to put these...

This year, the inflation rate in Kazakhstan should be reduced by half from 20.3% to 9.5%, according to Prime Minister Alikhan Smailov.

«We have a task. We need the inflation rate to decline by half this year. The rate should be about 9.5%. This is not an easy task, that’s why we have to coordinate and act smoothly,» he said.

According to the official, the key driver of the inflation rate is food prices. Thus, in December last year, food prices showed a 1.6% growth as compared to November 2022.

«This is a sign that authorized agencies and local administrations...

Vkusno I tochka, a Russian fast food chain, doesn’t plan to enter Kazakhstan’s market to fill the niche which was earlier occupied by McDonald’s, according to the TASS news agency, citing the company.

The chain’s representative said that «so far there are no any business arrangements between Vkusno I tochka and the company that used to run McDonald’s in Kazakhstan.»

In December, Director General of Vkusno I tochka Oleg Paroyev said that the company is considering the option of expansion to neighboring markets in Armenia, Uzbekistan and Kyrgyzstan. All three countries have never cooperated with McDonald’s. Moreover, Alexander Govor, the...

According to Aset Mashanov, director general of Food Solutions KZ (McDonald’s Kazakhstan), the company is planning to develop its fast food business further. He also doesn’t rule out the option of launching a new brand in Kazakhstan.

Mashanov noted that nobody knows whether McDonald’s is going to return to Kazakhstan. It depends on the current geopolitical situation. If the war in Ukraine is over, the company may try to restore its previous supply chain and reboot the chain.

«We can’t rule out the possibility that the brand will come back to the country, but I am not sure because it...

On January 9, 2023, the Amsterdam District Court denied the request by Anatolie Stati, Gabriel Stati, Ascom Group S.A. and Terra Raf Trans Traiding Ltd. for exequatur of a $530 million arbitral award, according to the Ministry of Justice of the Republic of Kazakhstan.

On 24 December 2021, the Supreme Court quashed an earlier decision of the Amsterdam Court of Appeal granting the exequatur and referred the matter to the Amsterdam District Court. After an interim judgment from the Amsterdam District Court on 3 May 2022, Kazakhstan was given the opportunity to further substantiate its claim that the arbitral award...

The National Bank of Kazakhstan has published a draft decree about the renunciation of the agreement between the government of the Russian Federation and the Bank of Russia on the one side and the government of the Republic of Kazakhstan and the National Bank of Kazakhstan on the other side, on measures aimed at providing mutual convertibility and the stable exchange rate between the Kazakhstani tenge and Russian ruble.

The agreement, signed on January 20, 1995, in Moscow, required Kazakhstan and Russia to take all necessary steps toward making the tenge and ruble mutually convertible and stabilize their exchange rate...

According to the Bureau of National Statistics, the secondary housing market in Kazakhstan went down in December 2022. This was the first time since March 2018 that prices on the secondary market have plunged.

«The price decrease was reported in Astana (by 5.1%), Shymkent (by 2.7%) and Aktau (by 1.6%),» the agency said in a statement.

At the same time, data showed a 1.6% decline in rental payments in December compared to November 2022.

However, prices in the primary housing market increased by 0.4%.

«Over the period from December 2021 to December 2022, real estate prices rose by 21.6% for...

According to Azamat Kurimbayev from the Committee of Administrative Police under the Ministry of Internal Affairs, the authorities have increased charges for those who use strong language in a public place, the Almatyapat Telegram channel reported.

«Under the upgraded rules, those who use strong language in a public place will be charged with a $150 fine or up to 30 days in custody,» the official said.

In the updated version of the Administrative Offences Code, profane terms in a public place and offensive and annoying behavior toward individuals are going to be considered petty crimes.

The same rule of the...

On December 29, 2022, the government of Kazakhstan adopted a debt limit restriction at 53.5% of the gross domestic product (GDP). The document is set to enter into force ten days after it went public.

Also, the government has set the debt ceiling for the country’s quasi-state sector at 21.2% of the GDP. «The upper debt limit doesn’t include mutual liabilities of entities controlled by the government and liabilities of non-resident controlled entities,» the document said.

At the same time, the foreign debt of the government – including debt guaranteed by the government and external debt of the quasi-state sector...

In 2022, the Ukrainian GDP declined by 30.4% because of the Russian invasion. Despite all the hardships of the war, it is a more positive result that was expected in the early days of the war in February 2022, according to the country’s Ministry of Economy.

In 2021, the GDP of Ukraine rose by 3.4%. In the first quarter of 2022, the rate decreased by 15.1% over the same period in the previous year. In the second quarter, the GDP dropped by 37.2%, followed by 30.8% in the third quarter.

«Last year has been the worse year for Ukraine’s economy...

According to the National Bank of Kazakhstan, the government has suspended the ban on the withdrawal of the Russian ruble. Even though the document was signed by Prime Minister Alikhan Smailov on December 28, this information went public only on January 4.

The cabinet’s decree has already entered into force and will last 60 calendar days. The Ministry of Finance and the Committee on National Security are set to supervise its implementation.

The National Bank noted that the decision to allow the withdrawal of rubles from Kazakhstan has been driven by the need to convert the ruble into non-cash form...

Food Solutions KZ’s fast food chain is set to stop working under the McDonald’s brand in Kazakhstan because of «a shortage in supplies,» the company said in an official statement.

However, Food Solutions KZ is going to restart its restaurants under a new name. The announcement will be issued «soon,» it said.

«Once the chain’s restaurants are reopened, our guests will be offered high-quality products, a diversified menu and hospitable service. Our fast food restaurants are going to continue working under high standards and principles of business conduct,» the company said in a statement.

The first restaurant under the McDonald’s...

According to Prosecutor General Berik Asylov, the former head of the National Security Committee (KNB) is the one who was behind the unrest. The official also noted that perpetrators had been preparing for the unrest long before it happened in January 2022. Now, Karim Masimov and his deputies are the key individuals involved in this criminal case.

When Asylov was asked by a journalist if Masimov is the key organizer of the January unrest, he gave a positive response.

However, while talking about Samat Abish, a nephew of Ex-President Nursultan Nazarbayev and a high-ranking KNB officer, Asylov wasn’t so confident...

KazTransOil, the national oil pipeline company in Kazakhstan, has increased a tariff for Russian oil that goes to Uzbekistan through Kaztransoil pipelines from $25.12 per ton of oil to $27.90 per ton. The new tariff will enter into force on February 1, 2023, according to the Kazakhstan Stock Exchange (KASE).

«KazTransOil is announcing that by Order No. 154 signed by the director general on December 27, 2022, the company imposes a new tariff of $27.90 (VAT excluded) per ton for the transportation of Russian oil to Uzbekistan through Kazakhstan’s territory. This tariff is entering into force on February...

President Kassym-Jomart Tokayev discharged Minister of Ecology and Natural Resources Serikkali Brekeshev, Minister of Education Askhat Aimagambetov, Minister of Culture and Sport Dauren Abayev, Minister of Industry and Infrastructural Development Kairbek Uskenbayev and Minister of Justice Kanat Musin, according to the president’s press service.

On the same day, Tokayev signed the edict on the assignment of Zulfiya Suleimenova, Gani Beisembayev, Askhat Oralov, Marat Karabayev, and Azamat Yeskarayev as new ministers of ecology, education, culture and sport, industry and infrastructural development and justice, respectively.

Zulfiya Suleimeniva was born in 1990 in Aktobe. She graduated from Eurasian National University in Astana and...

President Kassym-Jomart Tokayev announced his plans to make staff changes in the cabinet next year. He made the statement while giving a speech in the Senate (upper house of the parliament).

«I am going to make some staff changes in the cabinet in early January after consultations with the prime minister,» the president said. He noted that the speed of the current cabinet’s work was too slow.

Tokayev said that the cabinet is quite passive regarding critical issues for the country. The president wants the cabinet to increase its efficacy.

On December 14, Alikhan Smailov told to the cabinet that...

Fergana Oil Refinery has produced a trial batch of A-1 jet fuel for gas turbine engines deployed on Airbus and Boeing aircraft, according to the country’s Ministry of Energy.

The fuel has been tested by the Russian Scientific Research Institute of Oil Refining and certified by the Uzbek Agency for Technical Regulations.

«Given that the government announced the goal to turn Uzbekistan into an international transportation hub, the Fergana Oil Refinery is ready to become a reliable supplier of high-quality fuel. We will provide all local airports with kerosene-type jet fuel soon. As a result, any foreign aircraft will be...