REPUBLIC OF KAZAKHSTAN IN FIGURES
REPUBLIC FO KAZAKHSTAN
Содержание
Executive summary
2
Economic growth and development
4
Fiscal management
20
Additional information
30
2
Executive Summary
 After a decade of exceptionally strong economic growth and development, Kazakhstan’s ability to withstand shocks has
been tested since the onset of the global liquidity crisis in 2007. Against expectations by many, appropriate policy
responses and strong financial ratios have enabled Kazakhstan, which was identified as being among the worst
affected, to avoid a severe banking crisis with a run on deposits, a currency crisis, depletion of FX reserves and
prolonged recession.
 Prudent macroeconomic policies in recent years have strengthened the authorities' position from which to navigate the
financial storm. Despite of the deteriorating global economic outlook and a sharp fall in oil prices, by the Government
there was maintained a positive growth of economy in 2009, by estimated 1.2%.
 The government’s key priorities for the next two years include the stabilisation of the financial sector, supporting the
small and medium sized enterprise (SME) sector, develop the agro-industrial sector and the real estate market,
advancing the diversification of the economy, boosting employment and supporting socially vulnerable groups of the
population.
 Fiscal policies, despite the government’s planned support for the economy, remain conservative. The original oil price
EXECUTIVE
SUMMARY
assumption in the 2010 budget is established at $ 65 pbl. and contingency plans have been made in case oil prices fall
to $ 35 pbl. The consolidated fiscal balance in 2010-12 is forecast to continue to show moderate deficits due to low oil
prices. State budget balances planned at around 4,1% of GDP in 2010 should be comfortably financed given the
amounts of government’s assets and low debt levels.
 In January-July 2010 to December 2009 inflation amounted at 4.6 % (at appropriate period of 2009 – 4.1%).
 External liquidity position strengthened in the beginning of 2010 as a result of improved balance of payments dynamics.
Due to comfortable export prices and continuous FDI inflows in 2010, the current account of balance of payments is
expected positive.
 Long-term prospects remain good given Kazakhstan’s vast endowment of natural resources and the government
policies to support the economy’s diversification through infrastructure development and improvements to the business
environment.
3
Resilient fundamentals supported by a strong sovereign balance
sheet…
 At the end of 2010 GDP growth amounted 7 %. For 2010 GDP growth is forecast at
7,0%. Positive growth first of all maintained due to oil prices increase and smart policy of
the Government to overcome the crisis.
 Inflation potential in Kazakh economy in 2010 was – 7,8 %. In 2010 it is not expected
any further inflation slowdown, due to having a number of risks. At the end of 2011 inflation
is expected at 6-8%.
ECONOMIC GROWTH AND DEVELOPMENT
 In 2009 GDP per capita grown up to $ 9000.
 Gross international reserves of Kazakhstan as of 01.05.2011 amounted $ 37 bln.
 Gross assets of National Fund as of 01.05.2011 amounted $ 36 bln.
4
Resilient fundamentals supported by a strong sovereign balance
sheet…
Key macroeconomic indicators
2003
GDP growth (%, change)
2004
2005
2006
2007
2008
2009
2010
9,3
9,6
9,7
10,7
8,9
3,3
1,2
7,0
2068,0
2874,0
3771,0
5292,0
6772,0
8514,0
7257,1
9000
Current account (% to GDP)
(0,9)
(0,8)
(1,8)
(2,5)
(7,9)
(4,7)
(2,6)
9,5
Trade balance (% to GDP)
11,9
15,7
18,1
18,1
14,4
25,1
15,2
16,5
Exports of goods (%, change)
32,0
55,7
37,4
37,0
24,8
49,1
(39,3)
72,2
International reserves ($ bln.)
5,0
9,3
7,1
19,1
17,6
19,9
23,2
37
FDI (% to GDP)
7,2
12,6
3,7
8,2
7,6
11,1
8,3
12,2**
State debt (% to GDP)
15,0
11,4
8,1
6,7
5,9
6,4
13,0
-
National Fund (% to GDP)
11,5
11,4
14,2
18,1
20,0
20,5
21,2
24,5
GDP per capita ($)
ECONOMIC GROWTH AND DEVELOPMENT
*Jan-Jul 2010, **Report data as of Q1 2010
Forecasts
GDP, $ bln
2007
2008
2009
2010
2011
report
report
report
report
forecast
104,9
133,4
115,3
146.9
132,8
12,8
16,1
17,0
21,6
19,9
8,9
3,3
1,2
7,0
7,0
GDP per capita, $
6772
8514
7257,1
9000
8299,4
Inflation (CPI), %
18,8
9,5
6,2
7,8
6,0-8,0
Average price for oil, $/per bar.
72,7
97,6
61,9
79,6
107,2
Oil & Gas production, mln. tones
67,1
70,7
76,4
79,7
81
GDP, trillion tenge
GDP growth, %
National Bank and Statistics Agency
5
…and a government’s broad ranging Anti-Crisis Plan to
limit the extent of the economic slowdown
Real Estate


GROW TH
ECONOMIC
From NFRK assets 120 bln tenge were directed for refinancing of
mortgages and 240 bln tenge for solving of problems in real estate
through Samruk-Kazyna’ Real Estate Fund, which purchases
incomplete projects, completes construction and rents them to the
public
48,8 bln tenge and 46,3 bln tenge were allocated to complete the
construction of objects in Astana and Almaty. More than 20 thousand
apartments were completed as a result. An additional 40,8 bln tenge
was directed to purchase apartments by the Akimat of Astana. To date
more than 5.5 thousand apartments have been purchased.
At the same time, a public housing program for 2008-2010 was
developed to resolve housing problems. The program, totaling 300 bln
tenge, plans the construction of 28 million square meters of residential
space
SME’s

From NFRK assets 120 bln tenge allocated for SME support:



Moratorium on the immigration of non-skilled workforce and increasing
control regarding illegal immigration

Contracts to prevent mass layoffs and preserve employment signed
with 8,000 large and medium enterprises which employ 900,000 people

(Re-)schooling and training programs

Additional unemployment benefits and various kinds of social aid

Free school catering, improved pre-school education

Funds allocated for food security and (vital goods such as meat, dry
milk, sugar)

Broad-ranging Road Map project to sustain/create jobs in the regions,
in 2009 more than 380 thousand jobs created

The Road Map to continue in 2010 with 143.1 bln tenge budgeted
Other Industrial Sectors

AND
DEVELOPMENT

Employment and Social Protection
 Funding of KazAgro via emission of bonds (120 bln tenge) to the Oil
Fund
117 bln tenge via DAMU fund and commercial banks directed
for financing of SMEs (70% for refinancing of existing projects
and 30% for new projects at a rate of 12.5%);
 Channeling of investments into areas with high export potential
3 bln tenge will be directed to the direct lending for SME
 Mainly financial and institutional support for projects in the agriculture
In the framework of SME support (by three tranches & the “Damu –
Regions” program) more than 8 thousands of SME projects were
financed and 11.4 thousands of jobs were supported

Micro-project programs, operated through “Kazpost” offices

Measures to reduce “red tape” and to improve business environment
for SME, including changes to Private entrepreneurship law to limit the
number and duration of state inspections/audits and changes to
licensing system
and food industry through the central state and regional budgets, the
National Welfare Fund, and the state holding “KazAgro”
 Mainly infrastructure and electricity sector projects (120 bln tenge from
the Oil Fund)
6
Disbursement of assets for the realization of Anti-crisis measures
of the Government for the period of 2007-2009
Total anti-crisis funds allocated amount 3 029 bln tenge (20.2 bln. USD),
including:
ECONOMIC
GROW TH
AND
DEVELOPMENT
 Anti-crisis measures on 5 directions – 1 691 bln tenge (11.3 bln USD)
 Reduction of minimal reserve requirements – 490 bln tenge (3.3 bln. USD)
 Reduction of tax pressure - 500 bln tenge (3.3 bln. USD)
 Implementation of new plan of further modernization of economy and
realization of employment strategy (Road Map) - 348 bln tenge (2.3 bln. USD)
7
Disbursement of assets for the realization of Anti-crisis measures
of the Government for the period of 2007-2010
mln. tenge
2007
2008
2009
February 2010
Item
ECONOMIC
GROW TH
AND
DEVELOPMENT
allocated
disbursed
allocated
disbursed
1
Financial sector stabilization
2
Houses construction
74 325
99 398
109 780
3
SME
48 800
85 417
4
Agroindustrial complex
24 400
50 422
5
Implementation of investment projects of
Samruk-Kazyna
allocated
557 540
disbursed
allocated
disbursed
Balance
476 090
557 540
476 090
81 450
394 579
214 640
564 302
324 420
239 882
180 009
120 000
188 655
254 217
368 664
-114 447
13 360
120000
199 536
194 822
212 896
-18 074
120 000
27 200
120 000
27 200
92 800
Total
143 525
792 776
303 149
754 579
1 106 121
1 690 880
1 409 270
281 611
1
Anti-crisis measures
143 525
792 776
303 149
754 579
1 106 121
1 690 880
1 409 270
281 611
2
Reduction of minimal reserve requirements
490 000
490 000
3
Reduction of tax pressure
500 000
500 000
4
Implementation of new plan of further
modernization of economy and realization of
employment strategy (Road Map)
347 900
140 000
347 900
140 000
207 900
2 092 479
1 246 121
3 028 780
1 549 270
489 511
TOTAL
143 525
792 776
303 149
8
Strong economic growth in recent years fueled by private investment
GDP (% change) and GDP per capita in $
Investment in % of GDP and % yoy change
in % to GDP
8299,4
34,1
7552,6
9,6
9,3
DEVELOPMENT
27,7
26,4
9,7
26,2
27,0
6 772
23,0
23,1
20,6
16,6
14,8
13,5
3 771
11,1
4
3,3
3
2 068
GROW TH
AND
28,8
7257,1
8,9
ECONOMIC
31,9
8 514
10,7
%, change
1,2
2,9
2003
2003
2004
2005
2006
Source: MEDT, Statistics Agency
2007
2008
2009
2010F
2004
2005
2006
2007
2008
2009
2010
-4,8
2011F
Source: Statistics Agency (2010 – Jan-Jun)
9
Outstanding and diverse natural resource wealth supports longterm growth prospects
 The country holds about 3.2% of the world’s total proven oil reserves.
Overall prospective resources are estimated at between two and three times the
size of proven reserves
ECONOMIC
GROW TH
AND
DEVELOPMENT
 Over the next decade, Kazakhstan is expected to double oil
production on the back of higher production at the Tengiz field and launch
of the Kashagan field, which is the fifth largest in the world by reserves
 The republic holds 1.4% and 3.4% of the total world reserves of natural
gas and coal, respectively.
 Kazakhstan possesses all known useful minerals including major deposits of
ferrous and non-ferrous metals, uranium and gold
 Kazakhstan is also a significant exporter of grain, ranking among the world’s
leading ten exporting countries
10
Outstanding and diverse natural resource endowment supports
long-term growth prospects
Oil reserves (% total world reserves), 2009
Kazakhstan Mineral Resources (% World Total & Rank)
1
60%
hr
om
iu
m
13%
ra
ni
um
nc
3
C
R
8%
U
8%
5
Zi
8%
ad
m
iu
m
6%
5
C
6%
4
he
ni
um
4
re
O
I ro
n
te
ol
yb
de
nu
m
6
M
Ba
ux
i
Source: BP Statistics, Broker’s research
#
Source: USGS
World Rank
800
600
500
400
300
200
100
Source: Geological Committee of Ministry of Oil and Gas, RK
a
hi
n
C
on
e
sia
il
In
d
as
ai
n
kr
U
Br
e
S
U
hi
le
C
an
a
da
a
C
Af
ric
So
ut
h
R
us
s
ia
lia
st
ra
Au
st
an
ak
h
Ka
z
Ar
ab
ia
0
ud
i
thousands USD
700
Sa
DEVELOPMENT
AND
3%
2%
op
pe
r
2%
1%
C
OPEC
75%
Kazakhstan
3%
GROW TH
11
h
US
2%
Bi
sm
ut
Russia
7%
ECONOMIC
5
% of Worls Resource Base
9
Le
ad
11
Other
13%
11
Rising energy production will partially compensate for the decline
in prices
Oil production (mln ton)
95,0
100
90
81,0
80,0
80
76,4
70,7
70 67,1
Oil Production
60
ECONOMIC
GROW TH
AND
DEVELOPMENT
50
2007
2008
2009
2010
2011
2015
Source: MOG, MEDT
Natural gas production (bln m3)
80
70
61,6
60
50
40
30 29,6
33,5
36
37
43,6
44,8
53,5
55,8
Gas Production
20
10
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: MOG, MEDT. 2009 – Statistics Agency operative data
12
New measures of the Government for the industry development
The Program of accelerated industrial-innovative development of Kazakhstan for 2010-2014 (PAIID)
 Main goal of PAIID – accelerated industrialization and economic diversification to support long-term sustainable
economic growth
 PAIID Objectives:
 Consolidation of public and private efforts and concentration of state resources for development of priority
sectors of economy;
 Ensuring a favorable macroeconomic and investment climate and building effective institutions and
 Within the framework of PAIID the Industrialization Map is being implemented
 At present the Gross Industrialization Map includes 237 projects with amount of 7,26 trillion tenge.
 Republican Map includes 101 project with the sum of 6,76 trillion tenge, Regional Map includes 136 projects
with the sum of 493 bln. tenge.
 At the end of first half of 2010 there were launched 72 projects with the sum of 381 bln. tenge, at the second
half it is planned to accomplish 72 projects with the sum of 459 bln. tenge.
GROW TH
 Expected results:
 Sustained pace of economic development with the annual EVA growth approx. to 50%
ECONOMIC
AND
DEVELOPMENT
mechanisms of government and business interaction
 Greater economic productivity
 Structural shifts in the economy and industry towards greater production of value-added products; increase in
the proportion of manufacturing up to 12.5%
Source: MEDP
13
Agriculture: Construction of grain elevator complex in Mangystau oblast, 6.9 bln. tenge
2
Construction industry and production of construction materials: Construction of cement plant
19.5 bln. tenge
3
Oil processing, infrastructure of oil & gas sector: Modernization and reconstruction of Atyrau
Oil processing plant, 362.3 bln. tenge
DEVELOPMENT
4
Metallurgy and production of finished metal products: Reconstruction of Taraz metallurgy
plant, 11.6 bln. tenge
5
Chemical and pharmaceutical industry: Construction of Gas-Chemical complex in Atyrau
oblast, 945 bln. tenge
6
Energy: Construction of Balkhash thermal power-station, 360.7 bln. tenge
7
Transport and telecommunication infrastructure: Reconstruction of “West Europe – West
China” road, 825.1 bln. tenge
ECONOMIC
GROW TH
1
AND
Selected projects of the Industrialization Map
Source: MEDP
14
Multi- annual foreign investment projects ensures
sustainability of FDI inflows despite the global crisis
 Kazakhstan has become a regional leader in attracting FDI, with the EU and
the US amongst the largest investors in the country.
 Despite the crisis FDI inflows will continue to come into projects of oil & gas
sector development.
ECONOMIC
GROW TH
AND
DEVELOPMENT
 FDI inflows have become increasingly diversified, flowing into various non-oil
sectors of economy such as metallurgy manufacture and financial sector.
15
Multi- annual foreign investment projects ensures
sustainability of FDI inflows despite the global crisis
FDI growth, $ mln.
18 453
19 755
18 429
10 624
8 317
6 619
5208
2003
2004
2005
2006
2007
GROW TH
ECONOMIC
2008
2009
1Q
2010
Source: National Bank
Exploration and mining sector dominate in FDI activity
(Q1 2010)
FDI inflow by several main countries
(Q1 2010), % shares
Manufactur e; 13%
Finances; 5%
Kor ea
China
AND
DEVELOPMENT
4 624
3%
5%
Holland
Mining;
Tr ade; 5%
35%
Italy
USA
3%
Fr ance
6%
3%
24%
Switzer land
Other s;
Constr uction; 3%
5%
V ir gin isl.
12%
6%
Ex plor ation; 42%
Other s
29%
Source: National Bank
Tr aspor t and
UK
comm.; 3%
5%
Source: National Bank
16
State budget deficits remain moderate in 2009-2011 as prudent fiscal
policies are the focus
 At the end of 2009, the state budget deficit amounted to 3.1 %, which is
modest given the Government’s significant Anti-Crisis support
 For 2010 the deficit is forecast to reach 4.4 %, it is projected to slowdown it up
to 3.4 % by 2012
FISCAL
MANAGEMENT
 Oil price projections in the budget during 2010-2012 are set at $65 per barrel
17
State budget deficits remain moderate in 2009-2012 as prudent
fiscal policies are maintained
State budget indicators and forecasts 2009-2012 (KZT bln)
Item
Receipts
Tax
bln.
% to
tenge
GDP
2011
4110,3
21,3
bln.
tenge
% to GDP
2012
4413,4
21,0
14,0
2350,0
13,5
2817,5
14,6
3022,4
14,4
136,2
0,9
66,8
0,4
69,2
0,4
73,0
0,3
1104,6
7,0
1200,0
6,9
1200,0
6,2
1200,0
5,7
4003,0
25,2
4267,4
24,5
4844,3
25,1
5149,2
24,5
Current programs
2966,5
18,7
3255,8
18,7
3711,5
19,2
4381,3
20,8
Development programs
1036,5
6,5
1011,6
5,8
1132,8
5,9
767,9
3,7
-492,7
-3,1
-721,0
-4,1
-734,0
-3,8
-735,8
-3,5
Government debt volume
GDP
Average exchange rate, tenge to $
World oil price (Brent), $/bar.
1618,0
15887,8
147,5
61,9
10,2
2339,0
17411,9
150,0
60,0
13,4
3073,0
19316,0
150,0
60,0
15,9
3808,8
21022,9
150,0
60,0
18,1
National Fund assets ($ mln.)
24280,6
22,3
27586,6
23,8
33256,7
25,8
39634,8
28,3
Transfer from National Fund
Expenditures
Deficit (Surplus)
MANAGEMENT
bln.
% to
tenge
GDP
2010
3546,4
20,4
2228,7
Non-tax
FISCAL
bln.
% to
tenge
GDP
2009
3510,3
22,1
Source: Ministry of Finance
18
The consolidated budget feels the impact of lower oil prices,
continues to show a moderate deficit
Consolidated budget indicators and forecasts 2009-2012 (KZT bln)*
2009
Item
2010
bln.
% to GDP
tenge
3783,8
23,8
2406,3
15,1
1377,4
8,7
Receipts
Oil
Non-oil
2011
bln.
% to GDP
tenge
3841,7
22,1
2473,0
14,2
1368,7
7,9
2012
bln.
% to GDP
tenge
4992,2
25,8
3126,5
16,2
1865,7
9,7
bln.
% to GDP
tenge
5307,0
25,2
3372,9
16,0
1934,1
9,2
Expenditures
4005,9
25,2
4269,3
24,5
4846,7
25,1
5152,0
24,5
Current programs
Development programs
Balance
2969,4
1036,5
-222,1
18,7
6,5
-1,4
3257,8
1011,6
-427,6
18,7
5,8
-2,5
3713,9
1132,8
145,5
19,2
5,9
0,8
4384,1
767,9
154,9
20,9
3,7
0,7
Consolidated budget, % of GDP
Receipts
Expenditures
Balance
FISCAL
MANAGEMENT
27
25,2
7
25,1
24,5
17
23,8
24,5
25,2
25,8
22,1
-1,4
-2,5
0,7
0,8
-3
2009
2010
2011
2012
Source: MEDT
19
Authorities continue to demonstrate commitment to conservative
fiscal policy despite the economic crisis
 State budget expenditures 2007-2012 show stable increase in expenses
with reduction of development expenses.
 In state budget revenues the transfers increase proportionally to increase of
tax receipts. In 2009 to 2012 it is projected to increase of tax receipts by 1.4
times.
FISCAL
MANAGEMENT
 The state budget deficit increased by 1.7 times from 2007 to 2009. As a result
the Government’s anti-crisis measures and conservative fiscal policy it is the
deficit is expected to remain at around 3,5 % of GDP through 2012.
20
Authorities continue to demonstrate commitment to conservative
fiscal policy despite the economic crisis
State budget expenditures (KZT bln and % GDP)
6 000
Government revenues (bln KZT)
State budget revenue (excl. receipts to National Fund)
State budget expenditures
State budget expenditures in % to GDP
Revenue, total
30,00
25,00
5 000
20,00
4 000
15,00
3 000
10,00
2 000
1 000
2004
5,00
2005
2006
2007
2008
2009
2010
2011
0,00
2012
Government expenditures (bln KZT)
Current expenditures
MANAGEMENT
FISCAL
1 943,50
2482,4
Transfers
3 505,3
2 629,8
2 356,0
4 342,5
4 134,4
3 541,5
2 819,5
3 022,4
2 817,5
2 228,7
2 350,0
1 104,6
1 072,0
1 266,0
1 171,0
1 075,7
258,0
2007
2008
2009
2010
2011
2012
Balance
(50)
2007
2008
2009
in % to GDP
2010
2011
0
2012
(150)
(250)
3255,8
3711,5
4381,3
(350)
(450)
-215,3
-1,8
-1,5
-2,1
-333,2
-2
-2,5
-3,1
-3
(550)
-492,7
-4,1
-3,8
-3,5 -3,5
(650)
2007
2008
2009
2010
-0,5
-1
1011,6
1 170,00
2966,5
Tax receipts
4 034,4
Development expenditures
1132,8
1036,5
000
500
000
500
000
500
000
500
000
500
0
State budget deficit for 2007-2012
767,9
1891,4
5
4
4
3
3
2
2
1
1
2011
2012
(750)
-4
-721
-734
-735,8
-4,5
Source: Ministry of Finance
21
New tax code aims to support economic diversification
and general economic activity
 Republican budget for 2010-2012 provides for retention of current 20% CIT
rate for 2010-2012.
 Efficient tax system that supports diversification of the economy and
expansion of tax base through legalization of shadow business.
FISCAL
MANAGEMENT
 Kazakhstan is ranked 52nd in Paying taxes metric by the World Bank’s “Doing
business” report in 2010.
22
New tax code aims to support economic diversification
and general economic activity
Measures in the New Tax Code
Accommodation of all changes/amendments/interpretations to the Tax Code made during the last 5 years
Adjustment of the Tax Code for the application of IAS, IFRS
Revocation of advance payments of corporate income tax for small business enterprises
Extension of loss deferral period to 10 years
Stage-by-stage introduction of traditional VAT payment scheme (introduce reimbursement of VAT receivables from the budget)
Introduction of common social tax rate (11%) instead of regressive scale
Reduction of VAT to 12% from 13%
Corporate Income Tax Reform
Optimization of investment tax preferences
Revocation of advance payments of corporate income tax for
small business enterprises
Extension of loss deferral period from 3 to 10 years
FISCAL
MANAGEMENT
Reduction of CIT from 30% to 20% in 2009
Allow processing industries to file for tax deductions for
construction expenditures and cost of fixed assets within a
three year period
Taxation of Mineral Extractive Sector
Replace the old royalty-based tax system with the new
Mineral Extractive Tax that directs flow of the new tax by oil
and tax companies to the National Fund and by other energy
sector to the budget
Change the calculation of rent taxes, including change of
base price levels from selling price to the world price levels
and inclusion of coal in the tax base
Starting from January 2009 the government stopped issuing
production sharing agreements (existing agreements will
stay in force)
Increase tax burden of the energy sector from 49% to 62%
(at base price 72.7 $/b)
Introduction of a more flexible EPT calculation
23
Very low sovereign debt and substantial assets allow the
government to finance comfortably the projected deficits
Public sector gross debt (%GDP)
Assets of National Fund (% GDP and US$)
40
19,7
17,4
$ bln.
16,6
15,0
13,0
11,4
8,1
6,7
5,9
% to GDP
34,9
35
30,3
30
6,4
27,5
25
23,4
22,3
2001
2002
2003
2004
2005
2006
2007
2008
2009 2010F
21,3
20
18,1
22,3
20,6
Public sector debt breakdown as of January 1, 2010, bln. tenge
1 500
1 200
14,2
15
Government
National Bank
Local auth.
Guaranteed
Debt by guarantee
14,7
1289,0
11,5
11,4
10
8,1
FISCAL
MANAGEMENT
900
4,9
473,3
600
5
329,1
300
0,0
2,5
72,1
0
70,6
3,5
7,4 39,3
0
0
External
Source: Ministry of Finance
Domestic
2003
2004
2005
2006
2007
2008
2009
2010f
Source: Ministry of Finance, MEDT
24
Creation of a Customs Union
Perspectives of Customs Union (CU) in framework of EurAzEC
1. Increase of trade turnover between countries (Belarus, Kazakhstan and Russia). For local
enterprises the market will expand to around 170 mln people.
2. As a result of unification of customs tariffs on goods from third countries, the weighted
average tariff almost doubled. This will promote the decrease of reliance on imports.
This will give the chance to Kazakh goods to penetrate the markets which were firmly occupied
by goods from third countries (particularly, from China) due to the difficulty of price competition.
3. Improving the investment and business climate in Kazakhstan (lower VAT, employment
taxes) should help to secure foreign investment inflows to non-oil sectors aimed at common
market.
4. The customs union will be a stimulus for cooperation of complementary enterprises and
creation of vertically-integrated corporations in Russia, Belarus and Kazakhstan.
ADDITIONAL INFORMATION
5. Unification of tax tariffs will lead to its growth for Kazakhstan, and with additional investment
attracted would lead to increase state budget revenues
25