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On June 5, Kazakhstan conducted a nationwide referendum devoted to a group of amendments to the national Constitution. According to Nurlan Abdirov, chairman of the Central Election Commission in Kazakhstan, 77.18% of citizens voted for amendments to the Constitution while only 18.66% of voters said no to proposed political reforms in the nationwide referendum on Sunday.

As a result, the plebiscite on the amendments to the Constitution of Kazakhstan has been declared valid.

«There were 7,986,293 voters who took part in the referendum on Sunday (68.06%). However, 125,859 (1.58%) ballot papers have not been taken into account because they included...

Freedom Holding Corp. (FRHC) is one of the biggest investment companies in Eastern Europe, Russia and Central Asia. However, as a U.S. person, the company is obliged to obey a wide range of sanctions regimes imposed on specific countries. In light of the consequences of the rising geopolitical tensions, this issue becomes more important.

How sanctions work

Over the past decade, IT compliance in the financial industry has become more important and even more demanding. Compliance encompasses specific areas like anti-money laundering (AML) and counter-terrorism financing as well as general regulatory compliance. Each regulation requires companies to fulfill...

On June 1, the Air Safety Committee of the European Commissions published its official verdict concerning aviation authorities and airline companies in Kazakhstan, according to Kazakhstan’s Ministry of Industry and Infrastructural Development.

Kairbek Uskenbayev, head of the ministry, said that aviation authorities of all 27 EU member states have decided not to put any restrictions on Kazakhstan’s airlines that fly to Europe and not to put Kazakhstan on the EU Air Safety List.

Kazakhstan was on that list once. In 2009 an audit by the International Civil Aviation Organization (ICAO) showed a low rate of ICAO standards implementation (47%) in...

The country’s GDP declined by 3% in April 2022, even though in March it rose by 1.3%, in February it increased by 4.1% and in January the ministry reported about 5.6% growth of the GDP, the Interfax-Kazakhstan reported, citing the Russian Ministry of Economic Development.

Over the period from January to April 2022, the average growth of the Russian GDP was 1.7% compared to last year’s figures.

Among key drivers of the decline, the ministry says, are international restrictions in the sphere of transportation and logistics as well as domestic demand shrinking.

In terms of the main industries in Russia...

Uzbekistan has changed its requirements to digital mining. Now only companies that have direct access to renewable sources are eligible for digital mining. However, even with these new rules, crypto businesses continue to stay in the shadow.

Power of the Sun

Uzbekistan consumes more energy than it can produce: in 2020, the country produced 66.4 billion kilowatts/hour of electricity while consuming 69.1 billion kilowatts/hour. In order to compensate for that shortage, Uzbekistan was forced to spend more and more money to resupply the energy from neighboring countries. In 2020, the country spent on that purpose $115.7 million. The...

According to Kazakhstan’s Bureau of National Statistics, the inflation rate in May reached 14%

In May 2022, food product prices surged by 19% over the same period last year; nonfood product prices increased by 11.9% while the cost of paid services has risen by 9.1%.

Among food products that demonstrated the highest price surge are sugar (60.5%), vegetables (31.5%), flour (29.9%), poultry (28.5%), grits (27.1%), potato (26.2%) and fruits (24.6%).

Home appliance prices soared by 20.2%, washing and cleaning products went up in price by 17.5%, construction materials by 17.2%, cars by 16.3%, furniture and utensils by 13.3%, textiles by...

Uzbekistan is going to introduce market-oriented rules for harvesting and selling wheat, according to a new edict of President Shavkat Mirziyoyev of Uzbekistan. This year the country is planning to harvest about 2.5 million tons of wheat.

The National Agriculture Fund of Uzbekistan is going to buy 1.7 million tons of commercial wheat and 266,500 tons of seed. The authorities expect that the wheat price will follow the market, although at the very first stage the price will be set by the government.

In order to make sure there is enough wheat, the fund is going to make its contractors...

According to Kaiyrzhan Bimoldin, head of the Center for Retirement Benefits under the Ministry of Defense, the government is going to raise the retirement age for military personnel in Kazakhstan.

As the official noted, the retirement age for military personnel depends on the maximum age people can serve in the army. In 2022, Kazakhstan adopted a new practice when the maximum duration of military service was increased by five years. As a result, the retirement age for servicemen must be expanded by the same length.

At the same time, the size of retirement benefits for military personnel is going to...

Turkish holding TAV Airports reported that the passenger traffic through its asset the international airport of Almaty reached 469,450 passengers in April 2022. This is a 7.7% increase over the same period last year and a 4.4% increase compared to April 2019.

International flights with 148,421 passengers in April accounted for almost all that growth (+35% over the same period in 2021); domestic flights were attended by 321,029 passengers (-1%).

The International Airport of Almaty is the only asset of TAV to show a 4% growth in April 2022 over 2019.

For example, airports the company runs in Turkey showed...

The company never stopped trying to save its reputation in court. Last week the High Court of Justice in England and Wales acknowledged actions the SFO took against the company as illegal and said that the behavior of the legal firm Dechert, which was hired by ENRC to conduct an internal investigation, was inappropriate. Amid the trial that took years, ENRC reported serious reputational damage, delisting of its stocks and turning from a public company to a closed holding.

Investigation – delisting – investigation

On August 9, 2011, The Times, a British outlet published an article by David...

According to the press service of the Civil Aviation Committee, representatives from Boeing met with Talgat Lastayev, head of the committee. At the meeting, the two sides agreed that American specialists will provide training for personnel from Kazakhstan’s commercial airlines.

As the Boeing delegates noted, the main goal of the visit to Kazakhstan is to assist the country in improving control over flight safety and examine what the two sides can do to deepen their cooperation.

For instance, this potential cooperation may include issues such as improving Kazakhstan’s legislation to prepare it for the evaluation within the International Aviation Safety...

Kazakhstan’s high base rate is undoubtedly a difficult pill to swallow. Some people may say that such a bitter pill is often the most effective cure. However, almost every powerful medicine has some side effects and we always have to weigh the risks and benefits of this kind of monetary policy.

Those who support the record high base rate in the country (14 ± 1%) now insist that the government has to do everything to prevent the currency crisis in Kazakhstan. Previously, their main argument was control over inflation. However, there is no strong correlation between the base rate and...

According to new amendments to the country’s Tax Code, which were approved by the parliament on May 25, the cryptocurrency mining industry is going to be subject to differentiated taxation starting from January 1 next year.

Under the new rules, the rate of electricity payment will be linked to the average electricity price during an accounting period. For example, if the average cost of electricity is about $0.01-0.02 per kilowatt-hour, the payment rate will be $0.02; if the price is $0.02-0.03, the rate will be $0.016; if the price is $0.03-0.05, the rate will be $0.007; if the price is...

According to Olzhas Bektenov, head of the Anti-Corruption Agency, starting from the beginning of the year Kazakhstan has successfully returned to the state budget more than $517.7 million. Over almost five months, the agency identified more than 600 corrupt officials including 100 senior officials.

Moreover, the agency has taken some protective measures to prevent small and medium-sized companies from being illegally intervened by any officials.

«We’ve developed an algorithm of actions when any investigation activity must be approved by the headquarters,» the agency said in a statement.

The Anti-Corruption Agency along with the Atameken entrepreneur chamber has created a special...

According to the Bureau of National Statistics, the rate of migration to Kazakhstan has been growing since the beginning of the year. Over the first quarter, more than 4,000 people moved to Kazakhstan. This is a one-third surge over the same period in 2019 and twofold growth compared to last year. About half of the migrants came from neighboring Uzbekistan.

As the agency noted, the structure of migration has changed. For example, 41% of migrants who came to Kazakhstan last year were from Russia. This year the share of Russians dropped by 19% while the share of Uzbekistanis grew. In...

During the first three months of the current year, Kazakhstani exporters reported a record surge in exports thanks to favorable prices for commodities on the global market.

Kursiv Research is presenting this year’s first review of Kazakhstani exports to identify the key points of growth. Over the period from January to March, Kazakhstani exports grew by 65.8% and reached $19.1 billion – a five-year record. Energy products became key drivers of that surge. They have been on their high since March due to the Russian invasion of Ukraine.

Stable oil price and sulfur

Oil is the key export...

The relative of the ex-president of Kazakhstan Kairat Boranbayev, who is currently accused of embezzlement, failed to make a deal with McDonald’s in Russia. The information about the potential deal was announced by The Bell. However, in the late evening of May 19, the company revealed that it instead reached a deal with Alexander Govor, the chain’s franchisee in Russia.

According to the deal, Govor, who has been cooperating with McDonald’s since 2015, is going to buy all the chain’s portfolio in Russia. The businessman is going to develop the chain under a new brand.

«The deal must be approved...

In the first quarter of this year, Kazakhstan exported goods to Turkey for $1.2 billion and imported goods for $236.3 million. The turnover between the two countries during that period reached $1.5 billion, according to the Committee of State Revenues under the Ministry of Finance.

The vast majority of goods Turkey imported from Kazakhstan over the first three months are fuel and energy products (70.7%) at the cost of $885 million. The second most popular group of goods Kazakhstan exported to Turkey were metal and metal goods (25.9%) at the value of $324 million.

However, Turkey is also interested in...

The Agency for Regulation and Development of the Financial Market in Kazakhstan has issued a new rule concerning IT security in banks.

«Amid the growing threat of cyber attacks we have to strengthen security systems in the IT area in order to protect private data about clients, their accounts and financial transactions,» the agency said in a statement.

As the agency reported, the new rule requires commercial banks to put more efforts into IT security. Also, the document sets clear boundaries of responsibility between different banking departments that are key parts of the IT security system.

Moreover, the new rule...

McDonald’s built a huge business in Russia. However, after the invasion of Ukraine, the American company announced it is leaving Russia. Now the business community in the country expects that the chain might be purchased by somebody else. According to The Bell, the structures affiliated with Kazakhstani billionaire Kairat Boranbayev might be interested in a deal with McDonald’s over its business in Russia. As a result, the chain will be able to continue working under a new brand.

The «Regional Network of Catering Enterprises» (LLC SPP), which Boranbayev fully controls, runs McDonald’s restaurants in the Sverdlovsk, Orenburg, Chelyabinsk, Kurgan, Tyumen...

According to Ms. Azhar Giniyat, health minister in Kazakhstan, the country spent about $2 billion over 2020-2021.

In 2020, the government allocated $586 million for the fight against COVID. About $458 million was spent on additional payments to health workers, and $65 million was spent on acquiring drugs and personal protective equipment. Those medical workers who helped people during the pandemic received $46.5 million in payments in total. An additional $11.6 million was spent on ventilators.

In 2021, Kazakhstan allocated about $1.3 billion in an effort to stop the COVID from spreading. The largest part of this money, $961.2 million...

Karazhanbasmunay, an oil-producing company in Kazakhstan, has asked its employees to make sure they are sober while at work.

According to the official notice published on the company’s website, Karazhanbasmunay is pursuing a healthy and safe environment for its employees and will carry zero tolerance for alcohol, drugs and psychotropic substances at work.

The company said that its security service reported several cases when employees came to work drunk even though the company has always fought against this.

«The analysis of data shows that the vast majority of those who broke the rules are employees of our contractors,» the company’s...

As the Russian outlet RBK reported, Renault’s assets in Russia now belong to the Russian government.

«Renault Group has agreed to give the Russian Federation and the government of Moscow its assets in Russia; we’ve signed the agreement,» the Russian Ministry of Industry and Trade said.

As a result, the government of Moscow is going to own 100% of Renault Russia’s stocks. Another asset, a 67.69% share of AvtoVAZ, is going to fall under the control of the Central Research and Development Automobile and Engine Institute (NAMI), while Rostech will keep the rest of the AvtoVAZ’s stocks.

The principal point...

Arystanbek Mukhamediuly, former minister of culture in Kazakhstan and the current head of the National Museum of the Republic of Kazakhstan has published his video appeal to President Kassym-Jomart Tokayev. The ex-minister reminded the president about his merits to the country, said that his only goal is to contribute to the prosperity of Kazakhstan and asked to stop inspections in the museum.

As Mukhamediuly noted, several years ago there was an incident with the movie “Fenix.” The government allocated significant funds for the film production but its director Talgad Zhanybekov embezzled about $3 million. He was arrested and later acknowledged...