News

The government of Cyprus has decided to establish an embassy in Kazakhstan because it acknowledges the importance of the region of Central Asia, the TASS news agency reported, citing Konstantinos Letymbiotis, the official representative of the government of Cyprus.

Why has Cyprus decided to open its embassy in Kazakhstan? According to Letymbiotis, the government of Cyprus views Central Asia as a very important part of its foreign policy.

«Taking into consideration our desire to have a voice in and play a role in all those events in the region that directly or indirectly affect our interests...

According to Kazakhstan’s Minister of Transport Marat Karabayev, the government is planning to pass control over the airports of Aktobe, Turkestan and Kyzylorda to large foreign managing companies with expertise in this field.

As the minister noted, the country’s government is trying to garner the attention of private investors with the necessary knowledge and skills to establish multi-modal centers in the country’s airports. Under this concept, airport runways, fuel stations as well as passenger and cargo terminals are being repaired. For instance, in the airport of Karaganda, an investor wants to upgrade a runway strip and purchase the necessary equipment...

According to the Eurasian Development Bank (EDB), the amount of regional accumulated direct investments (FDI) in Central Asia reached $1.1 billion in the first half of 2023, which is 1.8 times higher than in 2016. Kazakhstan’s share has been gradually growing in the Eurasian region (which also includes Tajikistan, Moldova, Turkmenistan, Georgia, Azerbaijan, Belarus and Russia) for the past couple of years. This year it reached 27.2% compared to 26.6% in 2021. The total amount of accumulated mutual FDI in the region reached $48.8 billion over the first six months of 2023.

Analysts from the EDB noted that the total...

Tengizchevroil and Karabatan Utility Solutions were fined for violation of the environmental legislation, according to the prosecutor’s office of the Atyrau region.

«After rigorous analysis, we have identified facts of exceedance of greenhouse gas quotas as well as unauthorized emissions, exceedance of allowed amount of emissions and polluting of land. As a result of these inspections, Karabatan Utility Solutions, LLP and Tengizchevroil, LLP have been brought to administrative liability for violating the rules,» the prosecutor’s office said in a statement.

Both companies were found guilty by the court and required to pay $23.4 million in...

The Ministry of National Economy of Kazakhstan has commented on the situation around Elem Group, a logistical company from Almaty that on December 7 was added to the Entity List of the Bureau of Industry and Security under the U.S. Department of Commerce.

According to the U.S. Federal Register, the End-User Review Committee (ERC) determined to add Elem Group, LLC, under the destination of Kazakhstan, to the Entity List for «posing a risk of diversion of items subject to the EAR to Russia.»

If a company is added to the Entity List, this means that U.S. companies cannot supply such...

The government of Kazakhstan is going to set a cap for external debt by Samruk Kazyna and Baiterek of $12.5 billion and $5 billion, respectively.

«I am ordering: 1. To approve the maximum amount of external debt for the quasi-state sector for 2024,» the edict by National Economy Minister Alibek Kuantyrov says. The document has been published for public consideration.

According to an annex to the document, the maximum amount of external debt for the quasi-sector is expected to be at $12.5 billion for Samruk-Kazyna and $5 billion for Baiterek. For external debt purposes, the...

The Almaty city administration is forecasting a slowdown of the city’s economic growth to 5.5% in 2024, even though Mayor Yerbolat Dossayev said earlier this year that the city’s GDP would grow by 6.5% this year.

Currently, the authorities forecast a 6.5% growth of the GDP in 2025. They want to achieve this goal by providing financial support to small and medium-sized businesses of at least $98 million per year. Moreover, they expect investments to grow by 10%: to $3.9 billion in 2024 and $4.5 billion in 2025.

«This means that the city’s economy will grow by 47.4% within two...

Around 90,000 face accounts (bots) have signed up to the Kursiv.Media Telegram channel over the past two days. Before that, from December 6 to December 11, Kursiv.Media servers were under DDOS attacks with more than 1.3 billion requests from bots. As a result, the website wasn’t available on several occasions. The media outlet’s channel on Telegram has also been blocked.

What has happened with the Kursiv.Media Telegram channel? The edition’s IT department has managed to stop the registration of new bots. Currently, the IT team is analyzing the channel’s followers and deleting fake accounts.

The TGStat data has shown the...

The Eurasian Development Bank (EDB) has improved its forecast of Kazakhstan’s GDP growth this year to 4.8% in its latest macroeconomic survey. In July, the bank estimated the country’s GDP to grow by 4.3%.

Kazakhstan is ranked third in the EEU, which includes Russia, Belarus, Kyrgyzstan, Armenia and Tajikistan, and Central Asia in terms of economic growth after Armenia (8.3%) and Tajikistan (8.2%). The economy of Kyrgyzstan, Belarus and Russia is expected to grow by 4.6%, 3.9% and 3.1%, respectively.

Aggregated inflation in the region is going to reach 7.8% by the end of the year. (In November, Kazakhstan reported...

Construction of three coal thermal power plants in Kokshetau, Semey and Ust-Kamenogorsk might be financed at the expense of easy loans from Russian banks. A draft of an agreement between the two countries published for public consideration revealed that the government of Russia wants to subsidize the bank’s interest rate.

«Russia will provide the opportunity to obtain easy (subsidized) interest rate loans from Russian financial institutions to finance supplies of high-tech Russian products and services over contracts,» the document says.

The Samruk Kazyna fund and its subsidiary Samruk Energy will provide credit support for different...

The U.S. Department of the Treasury has included Russian Expobank on its sanctioned list. In early December 2023, some media outlets reported that Igor Kim, co-owner of Expobank, wanted to transform its Kazakhstani microfinance organization Bereke into a bank. The businessman also controls Seif Lombard in Kazakhstan.

As Expobank representatives told Frank Media, the bank continues to work as usual and all transactions are available for those who possess cards issued by the financial institution. The bank’s client will also be able to conduct money transfers to countries considered by Russia as «friendly» with the help of a wide network...

Minister of Finance Yerulan Zhamaubayev said that traffic jams at the border with Kyrgyzstan often occur because of operations by Kazakhstani law enforcement agencies to fight smugglers. He expressed the hope that the problem will disappear shortly and Kazakhstan will become a transit hub for all of Central Asia.

What happened? MP Maksat Tolykbayev asked the minister why there were so many traffic jams at the border between Kazakhstan and Kyrgyzstan.

«In the vast majority of cases when we have 500 to 600 vehicles in a traffic jam, the cause of this are operations by Kazakhstani...

Kazakhstan is going to cut the number of athletic disciplines that are financially supported with public funds. According to Minister of Tourism and Sport Yermek Marzhikpayev, the list of 180 sports will be cut to just 50 sports.

What happened? The minister of tourism and sport said that the government provides financial support to 180 athletic disciplines, while only 46 of them have been officially recognized by the International Olympic Committee. Moreover, Kazakhstani sportsmen take part only in 20 to 28 sports and usually win in 5 to 7 disciplines. The government is now going to cut the number of...

President Kassym-Jomart Tokayev will exercise personal control over creating the first artificial intelligence (AI) system in Kazakhstan. He said that he would meet specialists responsible for the task regularly, the press service of the president reported.

What happened? While delivering a speech at the Altyn Sapa and Paryz awards ceremony, the president said that he is deeply interested in creating an AI system in the country.

«I think that the future of Kazakhstan and its position in the international community depend on this task. That is why I am going to exercise personal control over this...

According to President Kassym-Jomart Tokayev, the new owner of ArcelorMittal Temirtau renamed Qarmet will bear much responsibility to the government.

What should the new AMT owner be prepared for? As the president highlighted, the issue of ownership over the Karaganda Metallurgic Plant has been successfully solved and currently is under the control of a Kazakhstani company.

«The cabinet should give a hand to the company, especially at the initial stage. However, in the end, the new owner will be fully responsible for everything that is happening at the plant. The control will be very strict,» Tokayev...

The production of electricity in Kazakhstan has declined for the second day in a row due to technical failures at power stations and heat distribution networks.

According to KOREM, the operator of the centralized electricity trading market in Kazakhstan, on December 8, the country produced 351.16 million kilowatt-hours of electricity; on December 9, the rate declined to 349.2 million kilowatt hours and then to 340.07 million kilowatt-hours on December 10.

On the other hand, the daily consumption of energy has been increasing in Kazakhstan for the fourth day in a row as many of the country’s regions have reported extremely...

The Agency for the Regulation and Development of the Financial Market (ARDFM) has agreed to provide the international financial holding Freedom Holding Corp. with the status of the banking holding Bank Freedom Finance Kazakhstan, which operates in Kazakhstan under the brand Freedom Bank, the agency said in a statement.

At the same time, the agency also agreed to provide Timur Turlov, the founder and key shareholder of Freedom Holding, with the status of key participant of Bank Freedom Finance Kazakhstan.

Freedom Bank was established in 2021 when Freedom Holding Corp. acquired Kassa Nova from ForteBank. At the time, Freedom Holding...

Over the period from January to November 2023, Kazakhstan exported 1.238 million tons of oil through the port of Aktau and Baku, which is a six-time increase compared to the same period last year, according to KazTransOil, the national oil pipeline company in Kazakhstan (subsidiary of KazMunayGas).

«Over the first 11 months of 2023, exports of Kazakhstani oil through the port of Aktau reached 3,062,000 tons, which is 1,014,000 tons or 50% more than the same period last year. The increase in the amount of oil exported from the port of Aktau has been driven by...

Andrey Lavrentyev, the owner of Allur Auto, has become the new owner of Arcelor Mittal Temirtau (AMT). This news was revealed by Minister of Industry and Construction Kanat Sharlapayev during a press briefing.

The minister said that the deal has already been closed. Indian mogul Lakshmi Mittal handed over its share in the company to the government of Kazakhstan. Then, Lavrentyev, a Kazakhstani businessman bought it from the state. Some media outlets reported that AMT will be renamed QARMET. Rumors about the deal began to circulate two weeks ago but the press service of Allur Auto declined to confirm that...

According to Ms. Manar Smagul, chair of the National Center for Public Health, the country’s authorities can bring to account those anti-vaxxers who spread data that contradicts modern science.

What happened? During a media briefing, a reporter asked the official whether the government would make anti-vaxxers liable for their public actions.

«I’ve never heard about any cases of legal prosecution of anti-vaxxers. However, we have a law on online publications that implies that anyone who spreads misinformation contradicting official scientific data might be brought to account,» Smagul said.

She also noted that the National Center’s...

Kazakhstan’s cabinet has approved a comprehensive plan for further development of big oil and gas projects in 2023-2027, which implies that the oil output must be boosted from the current 89 million tons per year to 105.5 million tons by 2027.

«The government of Kazakhstan has approved the comprehensive plan on evolving big oil and gas projects over the period from 2023 to 2027. Prime Minister Alikhan Smailov has signed the corresponding decree. According to this document, the production of oil within fields such as Tengiz, Karachaganak and Kashagan must be increased up to 105.5 million...

According to MP Adil Zhubanov, if public debt continues to grow at the current tempo, Kazakhstan’s state budget will be at risk of default. He hasn’t provided any details supporting his opinion though, the KazTAG news agency reported.

«Public debt has been growing much faster than the national GDP. For instance, over the past 15 years, public debt has grown by 28% per year, while the GDP has increased by 15% per year on average. If we do nothing to fix the problem, this situation can evolve into a technical default for our country,» Zhubanov said.

The U.S. has taken first place in terms of importing IT services from Kazakhstani companies, according to the country’s Ministry of Digital Development. The U.S. accounted for 8.71% of the entire IT exports by Kazakhstan over the first six months of 2023.

Ireland and the UAE have been ranked second and third with shares of 8.64% and 3.67%, respectively. Among other importers of Kazakhstani IT services are Cyprus (2.65%), Russia (1.72%), Spain (1.54%), the Netherlands (1.51%), the U.K. (1.09%), Germany (1.02%) and Canada (0.19%).

The vast majority of Kazakhstani IT businesses (1,342) are registered with Astana Hub. Part of them...

Earlier this year, I talked about the telecommunication business line within the bigger business of Freedom Holding Corp. (FRHC). Now, it’s time to take a closer look at this incredibly important project for the entire group and see what resources will be allocated for delivering the project and why we have chosen a certain format for its financing.

The current trend in the global market that we have noticed is that the borderline between telecommunication operators and banks is fading. This synergy is similar to what has happened between banks and brokerage companies. Every successful digital bank is transforming into...