News

The Agency for Regulation and Development of the Financial Market (ARDFM) has proposed amendments to a 2012 National Bank resolution that sets credit rating requirements for foreign buyers and owners of Kazakhstani banks. These amendments, now open for public comment on the https://legalacts.egov.kz/ portal, demonstrate the regulator’s continued efforts to ease the conditions for international investors purchasing local banks. A similar regulatory relaxation was applied during the recent sale of Bereke Bank to Qatar-based Lesha Bank.

Under current regulations, foreign companies intending to acquire or those already owning Kazakhstani banks or insurers, as well as banks seeking to open branches...

South Korea wants to include Kazakhstan in its Employment Permit System (EPS) to let Kazakhstanis legally work in the country, according to the Ministry of Labor and Social Protection of Kazakhstan.  

«Following the negotiations, representatives of the Ministry of Employment and Labor of the Republic of Korea confirmed their intention to include Kazakhstan in the EPS. This will enable Kazakhstanis to work legally in South Korea under the signed employment contracts,» the agency said in a statement.

During his official trip to South Korea, Kazakhstan’s Vice Minister of Labor and Social Protection Askarbek Yertayev

As of July 1, 2024, Kazakhstan’s foreign debt totaled $166.5 billion, marking a $3 billion (1.85%) rise during the second quarter, according to the National Bank of Kazakhstan.

Of the total debt, $29.5 billion is public sector debt, while $136.9 billion is owed by the private sector. The public sector debt includes:

Private sector foreign debt includes $43.3 billion from banks and other industries, along with $93.6 billion in intercompany debt. Intercompany debt refers to the obligations of Kazakhstani companies...

The Organization for Security and Co-operation in Europe (OSCE) will not send an observation mission for Kazakhstan’s upcoming referendum on the construction of a nuclear power plant, according to Mukhtar Yerman, secretary of the Central Election Commission of Kazakhstan.

The OSCE’s Office for Democratic Institutions and Human Rights (ODIHR) refused to observe the referendum, citing scheduling conflicts due to numerous other election-related activities.

«On Sept. 17, we received a response from OSCE ODIHR stating they would not be able to deploy observers for the Oct. 6 referendum due to the high number of election-related events scheduled...

It’s not uncommon for investment projects in Kazakhstan to take several years to complete. During this period, construction costs can increase, leading authorities to adjust design specifications and estimates, which further drives up the overall cost of these projects. It’s no surprise that this issue caught the attention of members of the Senate, the upper house of Kazakhstan’s parliament, who asked Prime Minister Olzhas Bektenov to investigate the situation.

According to the head of the country’s cabinet, the cost of each of the 25 investment projects in Kazakhstan surged by an average of $7.4 million. However, four projects reported even...

The Astana Financial Services Authority (AFSA) of the Astana International Financial Centre (AIFC) has provided the Binance Kazakhstan crypto exchange with a full regulatory license. From now on, the company is eligible to control the platform for cryptocurrency trading and exchange, act as a broker-dealer and provide custodial services in terms of digital assets in the country, Binance Kazakhstan said in a statement. 

Kazakhstan is the first state in Central Asia to give a regulatory license to Binance. The crypto exchange described the whole licensing process as not an easy one, as it included a comprehensive examination, internal and external...

From January to August, Kazakhstan’s exports of crude oil and gas condensate to the U.S. amounted to 1.343 million tons ($843.3 million), a 2.2-fold increase in volume and a 2.4-fold increase in money compared to the same period last year, Kazakhstan’s State Revenue Committee reported.

The published data indicates that total oil exports from Kazakhstan from January to August reached 47.8 million ($29.6 billion), which is a 0.4% increase in volume and a 6.23% increase in value over January-August of 2023.

Italy kept its status of the largest importer of Kazakhstani oil, acquiring 20.3 million tons of crude oil and...

Kazakhstan is set to export animal production to Thailand. At least two Kazakhstani companies – Kazbeef Processing and Merke Et Combinaty – are in the process of obtaining the necessary licenses from Thai authorities, as reported by Kazakhstan’s Ministry of Agriculture following a meeting between Vice Minister of Agriculture Ermek Kenzhehanuly and Thai Minister of Agriculture Narumon Pinyosinwat.

There are also plans to export crop products and fish to Thailand. As Kenzhehanuly noted, Kazakhstan exports up to 7 million tons of wheat annually and Thailand is a particularly interesting market for expanding Kazakhstan’s grain supplies. In mid-August, Minister of Trade...

Almaty authorities want the city to become the main hub for esports and the gaming industry in Central Asia. To achieve this goal, they are implementing the Almaty Cyber Games (ACG) project, according to Almaty’s digitalization department.

The department reported that Kazakhstan’s Ministry of Digital Development has recently signed a memorandum of understanding with Georgian sports broadcaster Setanta, whose TV channels air major international sporting events.

As of late August 2022, Setanta was owned by Temur Ugulava’s Adjara Group of Georgia, according to Ukrainian Forbes. Public information on Ugulava is limited, but the Ukrainian outlet referred to him as a...

Between January and August 2024, Kazakhstan exported 109,900 tons of coal to Italy, valued at $20.4 million. This marks a 317-fold increase in volume and a 309-fold increase in value year-on-year (YoY), according to Kazakhstan’s State Revenue Committee under the Ministry of Finance.

Despite the surge in exports to Italy, Kazakhstan’s total coal exports from January to August decreased to 5.7 million tons, valued at $228.9 million. This represents a 13.3% decline in volume and a 36.23% fall in value YoY. Poland remained the largest consumer of Kazakhstani coal, purchasing 1.4 million tons for $88.7 million, a drop of...

Timur Turlov, president of Kazakhstan’s Chess Federation (KazChess), has been named head of the newly established International School Chess Federation (ISCF), which will operate as an affiliate organization of the International Chess Federation (FIDE). The initiative to create the ISCF was presented at FIDE’s General Assembly in Budapest during the 45th FIDE Chess Olympiad, held from Sept. 10 to 22.

According to KazChess, Turlov’s proposal to create and lead the ISCF was endorsed by a vast majority of the FIDE General Assembly. In his address to delegates, Turlov explained that the ISCF’s mission would be to unite national school...

The first PMI report in cooperation with Freedom Holding Corp. was released on October 1, 2024. By supporting the release of Kazakhstan’s PMI® by S&P Global, Freedom Holding Corp. reaffirms its commitment to promoting alternative economic indicators in the local market, enhancing transparency and providing access to critical information about domestic economic activity.

PMI data is sourced directly from purchasing managers, who are the first to notice early-stage changes in the business environment, such as shifts in prices, demand and supply chains. The index is also known for its broad coverage of the national economy, surveying about 250 companies...

According to Kazakhstan’s National Bank statistics, the banks kept on expanding their loan portfolios for both households and businesses in August, while the average market rates continued to decline after July’s base rate reduction.

The cumulative loan portfolio for all categories reached roughly $65 billion by the end of August, a 2% increase ($1.3 billion) compared to July. This includes around $59.3 billion in loans issued in the national currency and around $5.6 billion in foreign currencies. The vast majority of the portfolio (85.5%) are long-term borrowings.

Loans issued to private entities, individual entrepreneurs included, accounted for...

On Sept. 30, Solidcore Resources, a Kazakhstani gold mining company formerly known as Polymetal, announced that it completed a 10-month share exchange program on the Moscow Exchange (MOEX). The company has exchanged 9.5% of the total number of its listed securities, or 66% of the restricted securities, Solidcore said in a statement. 

«The last Eligible Shares will be transferred from Nominated Brokers to the Company Securities Account on 30 September 2024, with the last (sixth) tranche of Exchange Shares to be issued on AIX shortly thereafter, but not later than Oct. 31, 2024.» the release...

Kazakhstan has seen a significant decline in international remittances. In August 2024, Kazakhstanis transferred $166 million through international money transfer systems (IMTS) across 190,000 transactions. According to the National Bank, this marks an 8.5% decrease month-on-month (MoM) and a 29.2% drop year-on-year (YoY).

Most of these transfers (96.7%) were sent abroad, with a smaller portion (3.3%) occurring within Kazakhstan. Popular systems for these transactions include Zolotaya Korona, Western Union and MoneyGram.

Remittances sent abroad from Kazakhstan fell by nearly 25%

Kazakhstanis sent $161 million abroad via 183,400 transactions. The most common destinations for these transfers were Uzbekistan ($62.5 million or...

At the end of the year, the National Bank and the Agency for Regulation and Development of Financial Market (ARDFM) are going to analyze the efficacy of previously taken measures aimed at slowing down consumer lending in Kazakhstan and might go even further in strengthening legal requirements for borrowers, according to Akylzhan Baimagambetov, deputy chair of the National Bank.

«Our colleagues from the ARDFM have introduced this year a set of measures aimed at cooling down consumer lending a little bit. We plan to analyze them before the year ends to see how effective they are...

The Ministry of Agriculture of Kazakhstan is interested in a partnership with Lindsay Corporation, an American company specializing in pivot system manufacturing, and is looking forward to introducing water-saving technologies and up-to-date irrigation equipment in Kazakhstan. According to the agency’s statement, Vice Minister Ermek Kenzhehanuly and Lindsay Corporation CEO Gustavo Oberto discussed the relevant matters during their meeting.

The agency’s task is to increase the gross collection of farm products, so the Ministry of Agriculture aims to achieve this goal by introducing modern irrigation systems, Kenzhehanuly noted.  

«Innovative engineering solutions in the irrigation area, infrastructure...

Fewer Russian citizens have been coming to Kazakhstan to work recently. However, the overall number of Russians entering the country continues to rise, according to Kazakhstan’s Ministry of Internal Affairs.

The ministry reported that from January to September 2024, 5.8 million Russian citizens arrived in Kazakhstan — nearly four times more than during the same period in 2021, a year before the war in Ukraine, when only 1.4 million Russians entered the country.

The latest trend shows fewer Russians arriving year-on-year for employment purposes. Between Jan. 1 and Sept. 1, 2023, 50,784 Russians received residence permits in Kazakhstan for work...

Kazakhstan and Tajikistan are set to sign an agreement to train Tajik border troops at the Academy of the National Security Committee (known by its Russian acronym KNB) of Kazakhstan. Kazakhstan’s government has published a draft decree concerning the agreement on the open legal acts portal for public comment.

The agreement outlines the selection, education and training requirements for Tajik citizens at Kazakhstan’s Academy of the Border Service under the KNB. According to the document, the host country will accept servicemen for training within the academy’s budgetary limits.

Both countries are required to coordinate the trainees’ fields of study annually, finalizing...

The Chinese state company CITIC Construction, a subsidiary of the Chinese investment enterprise CITIC Group (which also controls CITIC Bank), plans to invest more than $1 billion in the construction of a deep grain processing plant in the Almaty region to produce sugar substitutes and sodium gluconate, Kazakhstan’s Ministry of Agriculture reported. 

According to the agency, the new enterprise will be capable of producing maltose syrup, fructose syrup, crystalline fructose and sodium gluconate, including by-products of fibrin and forage. The project is set to be implemented within the Kazbek Bek industrial zone, creating about 2,000 new jobs.

The processing capacity...

Air Astana will install additional fuel tanks on its Airbus A321LR aircraft to make it possible to fly directly to London without refueling. This upgrade is expected to reduce the total time in the air by an hour and a half, the airline reported.

«Air Astana resumes nonstop flights from Almaty to London starting on Oct. 4. Since March 2022, the route has operated with a stop to refuel in Aktau,» the company said in a statement.

According to the airline, this flight will be possible after installing additional fuel tanks on the Airbus A321LR...

Authorities of the Zhetysu region of Kazakhstan have prohibited greenstone mining in the «oval stones» area of the Kyzyltas mountains to preserve the ancient petroglyphs. The enterprise developing the pit near the mountain dubbed «Tortoise» by the locals has been given another site.

Governor of the Zhetysu region Beibit Isabaev has commented on the situation around the unique site, explaining that deposit development had been ceased on legal grounds.

«There is a relevant court decision, meaning that we have mutually crossed all the T’s and dotted all the I’s in this issue. Now we’re working on...

Astana has improved its ranking by four positions, taking 62nd place in the Global Financial Centers Index (GFCI) compiled by the Z/Yen Group Ltd., a U.K.-based consulting company. The capital city of Kazakhstan bypasses many of its peers in Eastern Europe and Central Asia. Almaty ranks significantly lower, at 86th, although it has improved by twelve notches since March. 

The rating is based on three key criteria: telecommunication infrastructure, business environment and corruption perception. Z/Yen Group also conducts an online survey among center representatives to gather their ratings.

New York has held the top position since 2018, followed by...

Russian President Vladimir Putin has announced changes to the country’s nuclear doctrine, expanding the scenarios under which Russia may use nuclear weapons.

«We have to consider new military threats and risks to Russia and our allies. It is important to project possible future scenarios and adjust the strategic planning document to current realities,» he said during a meeting of the Russian Security Council, convened to discuss issues related to nuclear deterrence.

According to the Russian business outlet Kommersant, the updated doctrine will expand the number of countries and defense alliances subject to nuclear deterrence. It...