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Konstantin Fedorets, the current CEO who has headed the company since 2018, will leave Rakhat on April 21. This decision was made by the company’s board of directors on March 24, according to the Kazakhstan Stock Exchange website.

The board has already chosen Akhmed Akhrarov, former deputy head of Russian Konti-Rus, as the new CEO of Rakhat. He is going to start working on April 21, 2023, according to a document signed by Kirill Shumkin, acting head of LOTTE Rakhat.

Once the changes enter into force, the company board will include three non-residents Akhmed Akhrarov, Park Gyun Youl and Yim...

Standard & Poor’s has confirmed credit ratings for Halyk Bank, Kaspi Bank, Bank CenterCredit, ForteBank, Nurbank and Freedom Bank with a stable outlook, according to the Agency on Regulation and Development of the Financial Market in Kazakhstan (ARDFM).

The credit rating agency also affirmed the rating of OnlineKazFinance, a micro financial organization.

«According to S&P data, in 2022, the country’s banking system was stable and demonstrated a professional approach to the management of assets’ quality during economic cycles,» the regulator said. 

The agency noted that currently, Kazakhstani banks spend less money on reserves for possible...

On March 25, 2023, two-time female chess champion Bibisara Assaubayeva publicly criticized the behavior of grandmaster Zhansaya Abdumalik during the Women’s Grand Prix in New Delhi, India. According to Assaubayeva, Abdumalik decided to leave the tournament, citing a lack of attention from the organizers of the event.

Assaubayeva noted that one person who got annoyed with insignificant things and decided to leave at the last minute put the entire 12-person tournament at risk. «Even though there are many questions for local organizers, the real problem here is Zhansaya. In sports we have to be ready for non-standard situations,» she said.

Mareven Food Holdings, a Vietnamese company specializing in instant noodles, is going to build a food plant in Uzbekistan. This $125 million facility will produce instant noodles, non-alcoholic beverages, dehydrated vegetables and chips, according to the country’s Ministry of Investments, Industry and Trade.

The facility in question has been discussed by Minister Laziz Kudratov and Nguen Duong, head of Mareven Food Holdings. The new plant is expected to be built within the free economic zone of Angren in the Tashkent region. Once the project is implemented, it will create at least 800 new jobs.

The two sides also discussed the...

Michael Calvey, American investor and founder of the Baring Vostok fund, which controls a 28.8% share in Kaspi.kz, has left Russia along with his business partner Philippe Delpal, according to Russian media reports.

«Calvey and Delpal have gone to the U.S. and France, respectively, immediately after legal restrictions imposed on them by Russian authorities were repealed,» the Interfax news agency reported, citing a lawyer.

In August 2021, the Meshchansky district court of the city of Moscow placed Calvey and his business partners on a five-year probation. Before that, they all received conditional sentences for their...

The Ministry of Energy is undertaking measures to ensure consumers in Kazakhstan have enough fuel, although some of its regions are reporting shortages.

«In some regions, we see shortages of fuel due to high consumption. Therefore, the ministry is trying to ensure the country has enough fuel,» the agency said in a statement.

Given the importance of the energy industry, Prime Minister Alikhan Smailov discussed its development with representatives of the Ministry of Energy, the Samruk-Kazyna holding and KazMunayGas, the national oil company.

According to officials, in the first quarter of 2023, the country produced...

The court of arbitration in the Nizhny Novgorod Oblast has seized non-monetary assets belonging to Volkswagen after a request filed by GAZ.

The Russian court agreed to seize the assets of the German auto giant due to a lawsuit filed by GAZ, a Russian car manufacturing company. GAZ insists that VW’s decision to cancel a contract for car assembly in Nizhny Novgorod caused damages of $202.4 million for GAZ.

As a result of the GAZ complaint, the court banned any actions linked to the liquidation or reorganization of Volkswagen Group Russia, VW’s Russian subsidiary. Also, the company can’t change its...

Current Prime Minister Alikhan Smailov said that he is ready for the new composition of the cabinet after the parliamentary elections.

He voted at poll #111 and talked to journalists. Smailov noted that the constitution requires the cabinet to step down after the parliamentary elections.

«We are going to resign and will stay in office until the new cabinet is formed. It’s up to the president and the new parliament who is going to be the new prime minister. Of course, my colleagues and I are ready for any scenario,» Smailov stated.

When journalists asked...

Kazakhstan’s automakers produced 19,500 vehicles over January-February 2023, a 36.8% increase over the same period last year, according to the Association of Automobile Business of Kazakhstan (AKAB).

In February alone, the industry produced 10,400 cars worth $285 million.

In terms of the type of vehicles produced within the reported period, the vast majority were passenger vehicles (17,500 or +41.3%), followed by 1,600 trucks (-3.5%), 263 buses (an increase of 2.3 times), 158 trailers and 27 special-purpose machines.

The biggest car maker Allur in Kostanay increased its output in January-February to 10,600 vehicles (+37.2%). Hyundai Trans Kazakhstan in Almaty produced...

President Kassym-Jomart Tokayev has signed into law 25 amendments to the country’s tax code, according to the press service of Ak Orda.

These amendments cover a special tax regime for retail tax and distressed assets of banks and microfinance organizations. For instance, the new edition of the tax code restores retail tax in Kazakhstan.

«Any business with a staff of fewer than 200 people and revenue lower than $4.6 million a year can apply for a special tax regime. This regime has two different rates depending on whether an individual (4%) or an entity (8%) is...

President Kassym-Jomart Tokayev has signed a law aimed at preventing torture and expanding the rights of convicts in Kazakhstan, according to the press service of Akorda.

«This law is a continuation of consistent efforts of Kazakhstan aimed at rooting out torture and other forms of cruel treatment of convicts, expanding their rights and preventing negative prison subculture from forming,» the press service said in a statement.

The new legislation introduces criminal liability for cruel behavior toward inmates or humiliation of their human dignity. The law also requires law enforcement officials to use record investigative actions...

Turkish Ministry of Customs and Trade has prohibited the country’s airports from providing fuel and maintenance to aircraft from Russia and Belarus, according to the Airport Haber edition. 

«Rendering of any services for aircraft produced in the U.S. and controlled by Russia or Belarus must be stopped,» the edition reported.

Moreover, under the new rule, Turkish airports can no longer provide fuel and other services to private, cargo, commercial and charter aircraft with 25% of American content on their way to Russia or Belarus.

However, the Association of Tour Operators in Russia says that the...

Kazakhstani poultry producers will be able to provide the country with chicken in five to six years. So far, the country exports about 110,000 tons of chicken legs from the U.S., according to the National Entrepreneurs Chamber Atameken.

«Poultry products America sends to us are cheap and not high quality. We have been filling this niche lately. We have several investment projects and in five to six years we will produce all poultry Kazakhstan needs by ourselves,» said Erbol Eseneev, deputy chairman of the chamber.

The official noted that local poultry producers account for...

According to Qiwi, delisting its American Depository Shares (ADS) from the NASDAQ stock exchange won’t affect the company’s operations, finance or business plans.

Because NASDAQ made the delisting unilaterally, Qiwi hasn’t ruled out disputing this decision, the company said in a statement.

The company’s shares are traded on the Moscow Exchange as usual.

The majority stakeholder of the company is Sergey Salonin (28.2% of shares) while 71.5% of shares are traded on the broader market.

On March 15, NASDAQ notified Qiwi about the delisting of ADS starting from March 24, 2023. Similar notifications were also sent to other Russian companies...

According to Polymetal International’s finance report, in 2022, the company absorbed $288 million in losses compared to $904 million in profit in 2021.

«In 2022, our adjusted net profit reached $440 million ($913 million in 2021). Due to lower EBITDA and non-cash depreciation costs ($653 million after accounting for tax effect), net losses of the group reached $288 million compared to $904 of profit last year,» the company said in a statement.

In 2022, Polymetal earnings shrunk by 3% to $2.8 billion, with Russian assets accounting for $1.9 billion (67% of profit) while Kazakhstani assets...

The banking crisis that is unfolding in the U.S. after the collapse of Silicon Valley Bank and Signature Bank, has slightly affected Kazakhstan’s foreign currency market so far, according to the National Bank.

«We have seen signs of growing volatility and weakening of the national currency exchange rate against the U.S. dollar. The fall of oil price to $73 or $74 per barrel has also added fuel to the fire,» the regulator’s press service said in a statement.

However, the central bank noted that the banking crises in the U.S. and Europe are local and...

Kazakhstan continues to spend its savings from the National Fund, strategy that has already affected the country’s economy. The government must show much more financial discipline. The only good cause for the withdrawal of money from the National Fund is the implementation of strategic goals, according to Maulen Ashimbayev, speaker of the Senate of Kazakhstan.

«Over the past eight years, the National Fund’s assets decreased from $73 billion to $57 billion. This trend isn’t good. We all need to show more financial discipline in the near future,» he said at the plenary session of the Senate.

President Kassym-Jomart Tokayev convened a meeting with the Security Council to discuss ways to reduce risks to national security, according to the press service of Ak Orda.

«The president has highlighted that it is necessary to get an objective assessment of the current challenges and threats to national security and to figure out how to prevent these threats,» the press service said in a statement.

No details about potential risks and threats to the country discussed by the Security Council have been provided by the authorities.

Given that the country is going to vote for...

Halyk Bank has reported losses associated with the selling of its subsidiaries in Russia and Tajikistan: Moskommertsbank and Halyk Bank Tajikistan, according to data published on the Kazakhstan Stock Exchange (KASE) website.

KASE data shows that the bank estimated its losses associated with the selling of Moskommertsbank at $41.1 million. The bank lost about $1 million when it sold its Tajik subsidiary. These losses have been calculated as the difference between the transaction value and net assets value of the two banks ($45.3 million and $3.2 million, respectively). At the time of selling, Moskommertsbank had $124.8 million worth of assets...

Given the buzz around media reports saying that Kazakhstan has seized the property of Roscosmos at Baikonur, Minister of Aerospace Industry Bagdat Musin has issued a comment.

According to the official, the country’s authorities indeed have seized the property of the Center for the Exploitation of Ground Space Infrastructure (CENKI), not a space launching complex known as Baikonur.

«There are two companies. One of them is Joint Venture Baiterek and the other is CENKI. They had a legal argument in the AIFC court and the court made a decision. And now an officer of the court is going to...

Kazakhstan’s judges are going to be more independent. The country’s Senate approved a new law on the judicial system and the status of judges in Kazakhstan. Now only the prosecutor general has the power to launch an investigation against judges.

According to Senator Andrey Lukin, Kazakhstan’s law enforcement agencies have a set of tools for influencing judges and can easily take advantage of them.  For example, the police can unleash investigative actions against a judge with no criminal case opened. All they need is permission from a local prosecutor. Once they have this permission, they can collect data about a...

At the end of February 2023, Borealis Foods Inc. and Oxus Acquisition Corp., a special purpose acquisition company controlled by Kazakhstani businessman Kenes Rakishev, announced the signing of a definitive business combination agreement. This is expected to result in a newly-combined company under the name Borealis Foods Inc. Upon closing of the proposed transaction, the company will continue to be led by Borealis’ CEO and co-founder Reza Soltanzadeh, and chairman and co-Founder Barthelemy Helg. The boards of directors of Borealis and Oxus have each unanimously approved the proposed $150 million transaction.

Borealis is a food technology company that has created...

According to Alibek Kuantyrov, minister of the national economy, Kazakhstan’s GDP grew by 4.3% in February 2023. In contrast, the country reported a 5.6% growth of its GDP in January 2023.

«Over the period from January to February, Kazakhstan’s economy grew by 4.3%, including the real economy (2.7%) and sphere of services (5%). We’ve seen growth in all key industries, although sectors such as construction, information and communication, and trade have shown the biggest growth,» said Kuantyrov.

The Ministry of National Economy reported a 19.2% increase in investments in fixed capital, in spheres of transport...

Kazakhstan wants European countries to implement a visa-free regime for the country’s citizens, according to deputy minister of foreign affairs Roman Vasilenko.

The official noted that the Foreign Ministry is still trying to expand the visa-free space in Europe for Kazakhstanis. Last year, the country signed agreements on a visa-free regime with Albania, Andorra, Serbia and Montenegro (a seasonal visa-free regime).

In 2017, Kazakhstan has introduced a visa-free regime for E.U. member states, although it was temporarily suspended during the COVID-19 pandemic.

«We are now talking about softening of the visa regime for Kazakhstanis. I mean...