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development in Kazakhstan

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The volume of bilateral trade between Kazakhstan and Malaysia increased almost fourfold compared with 2017 and amounted to $478 million in 2018, Trend reports with reference to the Ministry of Foreign Affairs of Kazakhstan.

Exports from Kazakhstan reached $351.7 million, while imports from Malaysia reached $126.1 million.

Diplomatic relations between countries were established 27 years ago. In 2014, the countries reached an agreement on the promotion of bilateral relations to the level of "all-round partnership".

In 1996, Kazakhstan and Malaysia opened their embassies in Kuala Lumpur and Almaty, respectively.



The president of Kazakhstan visited Malaysia three times (in 1996, 2006, 2012), and Malaysian top management visited Kazakhstan four times (in 1996, 2003, 2011 and 2014).

The countries cooperate in the fields of oil and gas industry and oil and gas services, Islamic finance, housing and infrastructure construction, agriculture, halal industry, e-commerce, tourism and cyber security.

Kazakhstan, alongside with Malaysian companies and investors, implement long-term projects in the oil and gas, agricultural and construction sectors for a total amount of over $1 billion. About 1,000 Kazakhstan students study in Malaysian universities.
 

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Kazakhstan negotiates with a few Indian tractor makers including Mahindra & Mahindra company for the purchase of tractors and agri-input mechanisation equipment to boost the agriculture, Trend reports with reference to the country's ambassador in India Iskander Baitassov.

"We are holding dialogues with a few Indian tractor makers. Negotiation with Mahindra & Mahindra is ahead than others. We are also inviting another tractor maker Sonalika for an assembly line in Kazakhstan," he said.

"Mahindra is seeking protection and assurance on sales. This is not possible. However, we will offer help to export the company’s products to the markets of other countries where Kazakhstan has preferential access," Baitassov stated.



He said the Indian companies had shown greater interest in Kazakhstan in the past few years.

He expressed optimism that there will be healthy growth in bilateral trade to $1.5 billion in 2019 compared to 1.2 billion in 2018.
 

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Kazakhstan and South Korea have signed new economic cooperation program called "Fresh wind" for 2019-22,Trend reports citing the Ministry of Industry and Infrastructural Development of Kazakhstan.

Kazakhstan-S.Korea Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation is to supervise the program.d

Some 58 projects of the program are to cover such economic spheres as transport and logistics, construction, infrastructural development, mining and metallurgy sectors, trade and economic cooperation, energy, innovation and ICT, agriculture, finance, health care as well as cooperation in culture, tourism and education system.

Roman Sklyar, Minister of Industry and Infrastructure Development of the Republic of Kazakhstan and Son Yoon Mo, Minister of Trade, Industry and Energy of the Republic of Korea have signed the program.

Out of all 40 projects in the portfolio of Kazakhstan-Korea Innovative Industrial projects, 19 of them were already realized using $1.9 billion, 6 more are in the process of realization using $2.1 billion and 15 promising projects to be realized for $3.2 billion that are a part of the "Fresh wind" program.

Today there are more than 500 companies in Kazakhstan with South Korean capital.
 

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Kazakhstan is looking to export electricity to EAEU countries, where it is also a member, Trend reports citing KazInform.
The Eurasian Economic Union (EAEU) is an economic union, which includes Armenia, Kazakhstan, Russia, Belarus, Kyrgyzstan.
"In the last three years the total volume of exported electricity reached 13.789 billion kWh (4 percent of the volume produced). Within the framework of the Eurasian Economic Community's unified electricity market, formation the protocol between EAEU countries is be signed before March 2019. The event is to coincide with the five year anniversary of the Eurasian Economic Community agreement signing," said Kanat Bozumbayev, the minister of energy.
The minister also stated that the question of export expansion is in the process of consideration.
 

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Some 70 hectares of territory was allocated for the construction of a sugar plant in Kazakhstan’s Aksu city of Pavlodar region, Trend reports referring to Pavlodarnews.
"Russian company Bma Russland developed the feasibility study of the project, the technical specifications on connection to engineering networks systems were also received. Currently the budget and design documentation is being developed," the report said.
"Furthermore, the negotiations with potential investors, i.e. companies from Russia, China and Spain are taking place," reads the message.
The construction of the plant is to be finished by 2021. The preliminary cost of the project is estimated to be $150 million. Furthermore, Pavlodar region possesses all necessary resources for the project realization, i.e. cheap electricity, large river and an increase of irrigated land area.
"The plant is to process up to 6,000 tons of beets and to manufacture 100,000 tons of sugar per day, which accounts for 20 percent of Kazakh market demand. The manufactured product is also to be exported to Russia, China and Europe," the statement said.
 

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I have many fantastic Kazakh friends and they all tell me about Kazakhstan's deep-rooted problems (especially corruption and nepotism). But I wish all the best for Kazakhstan and hope to see great progress in all aspects of Kazakh society.
 

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Turkish YDA Holding company will invest 110 billion tenge (US$286.24 million) in the construction and equipment of two medical facilities in Petropavlovsk and Turkestan. The construction is to be completed by 2022.
North Kazakhstan Region Akim (Governor) Kumar Aksakalov and YDA Company Holding Chair Arslan Hussein signed June 12 a document on the construction of a multi-regional hospital for 500 beds with a consultative and diagnostic centre in Petropavlovsk. The hospital complex will replace seven older, single-disease facilities.
Another multi-type hospital will be built in Turkestan. Turkish company chair, Turkestan Region Akim Umirzak Shukeyev and BI Holding CEO Aidyn Rakhimbayev signed a document on the cooperation in the construction of a multi-type regional centre for 610 beds. The hospital plans to open oncology and cardiology departments, a perinatal centre and an ambulance station, among other facilities.
Hussein said Kazakhstan has a favourable investment climate and all conditions to realise the projects.
The projects closely align with regional long-term health infrastructure development plans. The projects will be built as part of Aleumettіk Qamqorlyq (Social Care) national programme and in line with the instructions given by Kazakh President Kassym-Jomart Tokayev.

The projects will update the country’s healthcare infrastructure, meet domestic demand, improve the quality and availability of medical services and create centres for medical tourism.
 

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Major Kazakh airlines company Air Astana and Russian S7 Airlines have signed codeshare agreement to implement joint flights to Kazakhstan, Trend reports with reference to press office of embassy of Kazakhstan to Russia.
Thus, besides the regular flight of S7 Airlines from Novosibirsk to Nur-Sultan, the travelers can now purchase tickets for daily flights implemented by Air Astana. Furthermore, customers of S7 Airlines can now get up to two daily direct flights from Saint Petersburg to Almaty and Nur-Sultan.
“Flights to Kazakhstan are in high demand among residents of Siberia. In my opinion, representatives of local companies who have well-established business relations with Kazakh partners will appreciate the comfort of these flights. In turn, we are happy to welcome customers of Air Astana on the S7 Airlines flights,” said Igor Veretennikov, S7 Group Commercial Director
“Kazakhstan considers Russia to be an important market for passenger transfer. We can see a number of benefits in expanding activities in Russia. The launch of the flights within the agreement is an important step in developing our cooperation, which we plan to strengthen in the future,” commented Richard Ledger, Vice President Marketing and Sales of Air Astana.
 

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aimed at development of Baikonur city were discussed in Kazakhstan, Trend reports with reference to press office of akimat (administractive center) of Kyzylorda region.
The discussion took place within the working visit of the Governor of the region Iskakov Kuanyshbek to Baikonur city, where he held a meeting with Director General of Roscosmos Dmitry Rogozin.
Parties discussed issues suggested by the governor of the region to be included in the agenda of the fourth meeting of Russia-Kazakhstan Intergovernmental Commission on Baikonur Complex to be held in Moscow in late July. They include signing of long-term Baikonur development program, creation of special economic zone within the territory of the complex, privatization of housing by citizens, simplification of admission to the city and decrease of municipal services tariffs.
At the end of the meeting, the parties agreed to implement such visits more often.
Baikonur is a city of republic significance in Kazakhstan on the northern bank of the Syr Darya river, rented and administered by Russia. It was constructed to service the Baikonur Cosmodrome. The rented area is an ellipse measuring 90 kilometeres east to west and by 85 km north to south, with the cosmodrome situated at the area's center.
 

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Realization of four new projects worth 46.6 billion tenge on the territory of Kazakhstan’s Aktobe industrial zone is being considered, Socio-Entrepreneurial Corporation (SEC) Aktobe told Trend.
The source in the SEC stated, that the corporation is interested in realization of projects in the sphere of alternative energy sources.
Thus, one of the projects under consideration is a "green" one and it oversees the launch of wind turbines manufacturing by the United Energy Kazakhstan company. The volume of investments into the project amounts to 33 billion tenge. In addition, some 440 new work places will be created following the launch.
Furthermore, another "green" project is the potential launch of biodegradable bags manufacturing of Tekhnoskaut company. It is planned that the cost of the project will equal 1.5 billion tenge and the number of new work places will amount to 100 places.
The third project which is being considered is the construction of electrosmelting plant by Atlant-Aktobe company. The volume of investment into the project is to be 5.1 billion tenge and the number of new work places is to equal 250 places.
The fourth project under consideration is a launch of the electromechanical products worth seven billion tenge. The project is to be realized by Huaming Smartled Co and 100 new work places are to be created, following the launch.
 

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Multinational power and automation technology provider ABB has secured a contract to modernise the Shymkent oil refinery in Kazakhstan.
The order is part of the country’s ‘Digital Kazakhstan’ programme that focuses on accelerating growth and elevating economic sectors in the oil, gas and chemicals industry.
The programme focuses on creating a future digital economy by 2022.
ABB will leverage its unified ABB Ability cross-digital offering to upgrade the Shymkent oil refinery.

ABB Ability will provide sensors, data and advanced analytics to monitor and assess the real-time health of the plant’s assets, in order to gain critical insights the assets and production processes.
The digital transformation of ABB will enable the Shymkent oil refinery to increase productivity at lower operational costs, empowering operators to make more informed decisions based on live, accurate data and reporting.
ABB Energy Industries managing director Kevin Kosisko said: “With our leading technologies and deep domain knowledge, we can help operators across the energy industry move forward confidently towards digital transformation.”
“ABB is uniquely positioned to drive and support the digital transformation of the chemical and refining industry in Kazakhstan and it is exciting to contribute to the modernisation of Shymkent oil refinery.”
The refinery is operated by PetroKazakhstan Oil Products (PKOP), a joint venture (JV) between China National Petroleum Corporation (CNPC) and KazMunayGas (KMG).
ABB Ability asset performance management products will support operators to prioritise maintenance strategy based on actionable insights.
The company will extend the existing maintenance annual turnaround intervals at the refinery to a three-year plan.
ABB said in a statement: “ABB will also provide a business consultancy service to PKOP to support the lifecycle of the project and promote culture change in adopting digital practices at the plant.”
 

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Kazakhstan and South Korea plan to implement projects worth about $7 billion, Kazakh TV reported.
The projects were signed in April this year during the state visit of President of South Korea Moon Jae-In to Kazakhstan. The programs include cooperation in 10 industries as well as implementation of 58 projects.
According to Ambassador of the Republic of Korea in Kazakhstan, Kim Dae-Sik, the agreements include development of information and communication technologies, digitalization and cooperation on the Fourth Industrial Revolution. they also include improvement of transport and logistics centers as well as infrastructure, development of oil and gas sectors, mining, construction and tourism.
The current package of Kazakhstan and Korean industrial and innovative projects is worth about $7 billion. 19 projects worth $2 billion have been implemented while six projects are currently being executed. The work package includes the participation of Korean company in the construction of the Big Almaty Ring Road. A joint car assembly plant will also be opened in the future.
Korea invested $4 billion into the Kazakh economy. “In the first half of this year, we reached 90 percent of the figure. The trade turnover has reached $2 billion. By the end of the year, the figure is expected to double,” Ambassador, Kim said.
Kazakhstan exports oil, uranium, copper and steel to South Korea and imports electronics, equipment and cars from the country of Morning Freshness.
Currently, there are more than 500 enterprises with participation of Korean capital operating in Kazakhstan.
 

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The Bakyrchik mining enterprise is considering the possibility of expanding its fleet of haul trucks made by the Belarusian automobile engineering company BelAZ, BelTA learned from the enterprise's Director General Kenbeiyl Isayev.
Asked about possible plans to buy BelAZ haul trucks, Kenbeiyl Isayev noted that the matter will be looked into in late 2019 – early 2020.
At present the Bakyrchik mine uses 70 units of new mining transport equipment, including 26 BelAZ trucks. According to the source, the Belarusian vehicles makes serious competition to Komatsu's ones.
The Bakyrchik mining enterprise develops a gold mine in eastern Kazakhstan. The Eurasian Development Bank participates in financing the project.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with a view to facilitating the development of market economies in the member states, their sustainable economic growth, and the expansion of mutual trade and economic ties. The member states of the bank are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.
 

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Two projects on metallurgy and renewable energy worth $139 million were launched in the first half of the year in the Karaganda Region with Kazakh Invest support, reports Invest.gov.kz.
Four more Kazakh Invest-supported projects worth $438 million are under construction and installation, two of which will be completed this year. Among the projects are Linde Group’s industrial gas production plant and Solarnet’s renewable energy project, which are expected to create 1,800 jobs in the region.

“Since the beginning of the year, nine new investment projects worth 280 billion tenge (US$728.28 million) on renewable energy, chemistry, manufacturing, metallurgy and agriculture are under implementation. Manufacturing and mining are our priority sectors. We will also focus on the logistics and food industries,” said Karaganda Region Deputy Akim (Governor) Almas Aidarov.

Kazakh Invest Chief Executive Officer Baurzhan Sartbayev discussed these upcoming projects and investment attraction more broadly during his July visit to the Karaganda Region, discussing providing structure and modernising production under the Business Roadmap 2020 programme during his visits to production plants of industrial explosives and ball valves in the region’s Saryarka special economic zone.
Fixed capital investment increased 25 percent in the Karaganda Region last year, and the aim is to attract 550 billion tenge (US$1.43 billion) of investment by the year’s end. Kazakh President Kassym-Jomart Tokayev has called for greater investment attraction to Kazakhstan’s agriculture, in particular, over the next three years. Accordingly, Kazakh Invest will support projects on the production of starch, confectionery, meat and dairy.

“An entire cluster (of production) can be developed within these areas,” said Sartbayev during his visit to the region. “For instance, by-products of potato starch production can become excellent feed for livestock. It is thus intuitive to establish a feedlot or dairy farm near such a plant.”
Kazakh Invest national company promotes the sustainable socioeconomic development of Kazakhstan by attracting investment to priority sectors of the economy and supporting investment projects. It is implementing 82 projects worth $15.2 billion, developing 99 projects worth $34 billion and recently implemented four projects worth $217 million, all of which created more than 45,000 jobs. Fifteen of these 185 projects, worth $2.5 billion, are in the Karaganda Region.
 

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The Ministry of Agriculture seeks to reduce the nation’s dependence on imported sugar by building two sugar plants by the end of 2021.
The plants will be in the Zhambyl and Pavlodar regions and cost $775 million. The plants will have a capacity of 100,000 tonnes per year and will use local raw materials.

Sugar production in Kazakhstan fell 45.4 percent in the first five months of this year compared to 2018. Total production the first five months of 2019 was 91,100 tonnes. The largest volumes of production are traditionally concentrated in the Zhambyl region at 67,200 tonnes. Production volumes fell 48.7 percent in the region. The Zhambyl region has two plants called Tarazsky and Merkenskiy. Both plants belong to the Central Asian Sugar Corporation.

The sharp production decline is due to the suspension of the activities of the Central Asian Sugar Corporation. The Shusky, Tarazsky and Merkensky sugar factories were stopped for several months.

Another 24.8 percent of local production was provided by manufacturers of the Almaty region, where the following corporation’s plants operate: Koksu, Aksu, Burundai, Eskeldi and Alakol sugar factories.

Officials hope the two new plants will combat the decline. The plant in the Zhambyl region will cost $208 million while the Pavlodar region plant will cost $568 million. In the Zhambyl region, the plant will get sugar beet from the Chu district.

According to the Ministry of Agriculture, in Kazakhstan, the average sugar consumption per year is almost 500,000 tonnes. Of that, 90 percent of the domestic market demand is provided by processing imported cane raw sugar and importing ready-made sugar. Only 10 percent of finished products are obtained from local sugar beet. The main suppliers of sugar for Kazakhstan are Russia and Belarus.
 
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