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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...

VTB Bank Kazakhstan has started issuing plastic Mir payment cards, according to the Interfax news agency citing the bank’s press service.

The bank has also been issuing digital Mir cards since December 2022.

According to Stanislav Kozyakov, head of retail business in VTB Kazakhstan, the bank sees high demand for Mir cards from retail clients who make online payments or travel to Russia.

«Our bank is number one in Kazakhstan in terms of money withdrawal with the help of Mir cards,» he said.

The bank says that it can issue a plastic card within one...

Mikhail Lomtadze, head of Kaspi.kz took part in the Tech, Media and Telecom 2023 conference by Morgan Stanley in San Francisco where he talked about the unique experience of Kaspi.kz

Morgan Stanley has been organizing the Tech, Media and Telecom conference for 30 years. Every year this conference gathers leading tech companies and investors from all over the world like Elon Musk, heads of Google, Microsoft, PayPal and many other tech giants.

«During the conference, my colleagues and I talked about Kazakhstan, the fast development of technologies in our country and what we have done to...

According to KazTransOil (KTO), Inpex North Caspian Sea Ltd., a stakeholder (7.563%) of North Caspian Operating Company (NCOC) is going to send its oil to Europe via the port of Aktau and the Baku-Tbilisi-Ceyhan pipeline (BTC). NCOC is the consortium that operates the Kashagan oil field.

«From a technical point of view, we can export 6.2 million tons of oil a year via Aktau. So far, the port has booked part of its capacity for 1.5 million tons of oil that Tengizchevroil wants to export via the Trans-Caspian route toward the BTC. Inpex from the Kashagan...

KazTransOil (KTO), a subsidiary of the national oil company KazMunayGas, reported a 60.9% drop in its consolidated net profit.

«In 2022, the consolidated net profit of KTO was about $44.9 million, a 60.9% decline compared to 2021,» the company said in a statement.

Nevertheless, the consolidated earnings of the company reached $580.2 million in 2022, a 7.3% increase over the year before.

Earnings of KTO itself reached $418.5 million last year, a 1.3% decline over the same period of 2021.

In 2022, KTO’s net profit dropped by 78.3% to $19 million compared to 2021.

KazMunayGas...

According to Aliya Moldabekova, deputy head of the National Bank of Kazakhstan, in February the country’s national currency tenge demonstrated confident growth. As the official said in a interview with the Kapital edition, non-residents’ appetite for state bonds and selling out of quasi-state companies were key drivers of the exchange rate strengthening.

In February, the regulator reported a 3.2% increase in the tenge exchange rate. Despite rumors, the reasons behind this strengthening are quite simple, said Moldabekova. For instance, February has been a popular season for large quarterly tax payments since 2016, when the tenge exchange rate has become free...

Bereke Bank, a former subsidiary of Sberbank Russia, which is now under the control of the state-owned holding Baiterek, is no longer on the sanctions list, according to the U.S. Ministry of Finance.

On March 8, the Kursiv edition wrote that on March 9, 2023, the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department is going to launch an official procedure of withdrawal of Bereke Bank from the Specially Designated Nationals and Blocked Persons List (SDN). The bank had been on the list since April 2022. At the time, it was a subsidiary of Russian Sberbank.

«On...

The construction of a new pipeline toward the Caspian Sea to export oil may take Kazakhstan five years, according to Bloomberg citing Bolat Akchulakov, the country’s ministry of energy who spoke at the CERAWeek conference in Houston, Texas.

«Akchulakov said Kazakhstan is planning a new pipeline that would take its crude to the Caspian Sea for export. But developing such a project could take five years and would also require a new fleet of oil tankers,» the news agency reported.

The article also highlights that according to Kazakhstan’s energy minister the country’s «number one problem,» is how to diversify its...

Chevron Corp., one of the biggest oil producers in the U.S., is planning to increase oil output at the Tengiz oil field in Kazakhstan by up to one million barrels per day, according to state news agency Kazinform, citing CEO of the company Mike Wirth, who attended the CERAWeek conference in Houston.

As Wirth noted, Chevron has a project that can increase oil output to one million barrels per day in Kazakhstan.

The expansion project is set to start its operation as the construction phase has already been completed. The company will put into operation the remaining facilities over the...

In 2022, KAZ Mineral increased its copper output to 380,000 tons or 27% more than in the year before.

«In 2022, the Kazakhstani copper company KAZ Minerals produced 380,000 tons of copper, a 27% increase over 299,000 tons produced in 2021. Successful introduction of up-to-date standards at the second sulfide concentrator at Aktogay and increased production at the first sulfide concentrator have become main drivers of the increase» the company said in a statement.

However, in the fourth quarter of 2022, copper production dropped by 10% to 98,000 due to the maintenance of the first...

On March 9, 2023, the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department is going to launch an official procedure of withdrawal of Bereke Bank from the Specially Designated Nationals and Blocked Persons List (SDN). The bank has been on the list since April 2022. At the time, it was a subsidiary of Russian Sberbank.

«On February 6, OFAC officially notified the U.S. Congress that it is going to lift sanctions from Bereke Bank. This means that the agency no longer has claims against the bank and its intention is quite clear. On March 8, it will...

Bakhytzhan Toregozhina, a civil society activist from Kazakhstan, has been nominated for the U.S. Secretary of State’s International Women of Courage Award (IWOC) for documenting human rights violations associated with the widespread unrest that occurred in Kazakhstan last January and assisting victims of the event. Secretary of State Antony J. Blinken and First Lady Jill Biden will honor Toregozhina and other extraordinary women from all over the world at the White House on March 8, the State Department reported.

«Throughout her career, Toregozhina has been a leading voice representing victims of torture, abuse, and politicized repression...

Freedom U.S. Markets, LLC, a wholly-owned subsidiary of Freedom Holding Corp. (NASDAQ: FRHC) has completed the acquisition of LD Micro, a host for micro-cap conferences and owner of the leading website for micro-cap investors.

The total consideration of $8.3 million includes $4 million in cash and FRHC common stock valued at $4.3 million. However, financial technology company SRAX, the previous owner of LD Micro, will continue to maintain exclusive rights to stream the LD Micro conference, film interviews, and hold an exclusive position as the market intelligence platform and digital advertising sponsor of the event.

«The...

According to Aybek Smadiyarov, the official spokesperson for the Ministry of Foreign Affairs of Kazakhstan, the country doesn’t want to facilitate any attempts to breach the international sanction regimes. However, Bloomberg reported that Russia is successfully breaching the sanctions by importing semiconductors and other technologies it needs for the war on Ukraine via third-party countries including Kazakhstan, Turkey and the UAE.

During a press briefing in the MFA, journalists asked Smadiyarov if he was aware of such facts. In response, the official said that the ministry has to check this information first.

«As we said before...

Zolotaya Korona (or KoronaPay), a service of instant money transfers that accounts for three-quarters of money transfers between Russia and Kazakhstan, has suspended its operation with international money transfers from cards issued by several Russian banks. The move followed a decision of the company’s partners who do not want to breach sanctions, according to the RBC news agency citing the press service of Zolotaya Korona.

Holders of cards issued by Tinkoff, Sber and Alfa Bank can no longer make any international money transfers with the help of Zolotaya Korona. When a user attempts this, he or she sees a notice...

A new nonprofit organization – the Association of Secondary Raw Material Recyclers – was officially registered in Kazakhstan on March 3, 2023. The new entity is going to represent the interests of the recycling industry. Batyrbek Aubakirov, head of Kazakh Export’s Public Council and director of the Packaging Association of Kazakhstan, has been appointed head of the new association.

According to Aubakirov, the association will focus on improving legislation, increasing transparency within the industry by digital means, facilitating the training of new specialists, providing address support to secondary raw material recyclers and introducing a mechanism for subsidizing.

He also noted...

Fitch Ratings has affirmed Uzbekistan’s long-term foreign-currency (LTFC) issuer default rating (IDR) at ‘BB-‘, with a stable outlook, the rating agency reported.

Fitch rated Uzbekistan at BB- in December 2018 and hasn’t changed it since then.

According to the agency, Uzbekistan’s ratings reflect robust external and fiscal buffers, low government debt and a record of high growth relative to ‘BB’ rated peers’ on the one hand and high commodity dependence, high inflation and structural weaknesses in terms of low GDP per capita on the other hand.

Fitch noted that Uzbekistan’s government appears willing and able to proceed with key...