1 Economic Newsletter on Kazakhstan |April 2019 Contents GENERAL ............................................................................................................................2 MACRO-ECONOMICS & FINANCE ......................................................................................5 INNOVATION ......................................................................................................................8 ENERGY & NATURAL RESOURCES ................................................................................... 10 TRANSPORT & COMMUNICATIONS ................................................................................ 11 AGRICULTURE ................................................................................................................. 14 ENVIRONMENT ............................................................................................................... 16 CONTACTS....................................................................................................................... 17 EXHIBITIONS IN KAZAKHSTAN (May-Dec.2019) .............................................................. 18 The Economic Section of the Embassy of the Kingdom of the Netherlands in Kazakhstan intends to distribute this newsletter as widely as possible among Dutch institutions, companies and persons from the Netherlands. The newsletter summarises economic news from various Kazakhstani and foreign publications and aims to provide accurate information. However, the Embassy cannot be held responsible for any mistakes or omissions in the bulletin. 1 Old name of the capital of the Republic of Kazakhstan (Astana) is used in the articles issued before the decision to rename the capital into Nur-Sultan has been adopted, i.e. before March 23, 2019. ECONOMIC NEWSLETTER, April 2019 Embassy of the Kingdom of the Netherlands GENERAL BREAKING NEWS: Early presidential election in Kazakhstan set for June 9; President Tokayev pledges fair and transparent vote NUR-SULTAN – Kazakhstan President Kassym-Jomart Tokayev set the date for the early presidential election for June 9, 2019 as he said the vote was “absolutely needed” to ensure “continuity, predictability and stability” at the time of political transition and “to remove any uncertainty.” In a televised address broadcast on all national television channels at 1 pm on April 9, Tokayev said: “Kazakhstan took a worthy place in international community… We are living through historical transition… Following my trips around the country… my conclusion is we are moving in the right direction… The early presidential election is absolutely necessary. In order to ensure continuity, predictability, stability… the election is necessary… Only direct election can ensure the reaching of our goals…” “Kazakhstan is a democratic state. And the President will be elected according to the will of the people. As the current head of state, I guarantee that the election will be held in a fair and transparent way. This is my principled position,” Tokayev stressed. Tokayev became the President of Kazakhstan on March 20 following the surprise resignation of President Nursultan Nazarbayev after almost 30 years at the helm. Nazarbayev remains the chairman of the Security Council and the leader of the ruling Nur Otan political party. In his remarks, Tokayev said that in taking the decision to call for the early election he consulted with Nazarbayev, too. Earlier, Tokayev met with Prime Minister Askar Mamin, Speaker of the Senate Dariga Nazarbayeva, Vice Speaker of the Majilis Vladimir Bozhko and Chairman of the Constitutional Council Kairat Mami, as well as with leaders of political parties Nur Otan, Ak Zhol, Communist People’s Party and Auyl Party. Kazakhstan’s Central Election Commission is to organise the election, outlining schedule for nomination/registration of candidates etc. (astanatimes.com) Global leaders to focus on ‘inspiring growth’ at Astana Economic Forum NUR-SULTAN – More than 3,000 domestic and international economists, political leaders and civil society representatives are expected to gather May 16-17 in the Kazakh capital for the annual Astana Economic Forum (AEF). Approximately half the participants will be foreign delegates from more than 100 countries. The forum will address changes in global economies, the social sector, digital technologies, multiple industries and the unfolding Fourth Industrial Revolution. The AEF was convened for the first time in 2008 in the midst of a global financial crisis and has grown into an international platform that helps shape the global economic agenda. The forum kicks off every year with a focus on a specific topic. Last year, it was about global trends and challenges and this year it will explore “inspiring growth” driven by people, cities and economies. “The forum participants will discuss new ways for sustainable growth, the development of human capital and how to strengthen the potential of cities as international centres of knowledge and innovations,” said forum organisers. The programme will feature approximately 50 panel sessions, roundtables, conferences and business meetings. Among key events are the annual Kazakhstan Global Investment Roundtable (KGIR), an international conference marking the 100th anniversary of the International Labour Organisation, an interim meeting on the preparation to the 12th Ministerial Conference of the World Trade Organisation in 2020 and the first forum in Kazakhstan on the United Nations Sustainable Development Goals. International Monetary Fund Managing Director Christine Lagarde, 2018 Nobel Prize Winner in Economics and World Bank Chief Economist Paul Romer, former United States Federal Reserve Deputy Chair Stanley Fischer, Executive Secretary of the UN Economic and Social Commission for Asia and the Pacific Armida Alisjahbana and Boston Consulting Group Chair Hans-Paul Bürkner are among the speakers who have confirmed their participation at the forum. 2 ECONOMIC NEWSLETTER, April 2019 Embassy of the Kingdom of the Netherlands Lagarde will take part in the plenary session about the new economy and Kazakhstan’s growing investment potential that will be chaired by Kazakh Prime Minister Askar Mamin. “The participation of such distinguished politicians and experts in AEF 2019 proves not only the growing interest in the forum itself but is also a sign of a willingness to conduct open dialogue and enter into mutual cooperation,” said forum organisers.(astanatimes.com) Kazakh PM briefs Western diplomats, officials on new measures to attract foreign investment NUR-SULTAN – Kazakhstan hopes recently launched measures by the government will increase foreign investment cooperation with countries and institutions, Kazakh Prime Minister Askar Mamin told an April 24 meeting with a group of Western diplomats and officials. American Chamber of Commerce Executive Director Doris Bradbury, British Ambassador to Kazakhstan Michael Gifford, Canadian Ambassador to Kazakhstan Nicholas Brousseau, European Union Ambassador to Kazakhstan Sven-Olov Carlsson and U.S. Deputy Chief of Mission Theodore Lyng attended the meeting. Mamin explained the reasons for the April 22 establishment of a new Coordinating Council on Investment Issues that is chaired by himself and includes the first deputy prime minister, deputy prime minister responsible for infrastructure development, heads of key ministries (Justice, Foreign Affairs, National Economy, Industry and Infrastructural Development, Energy, Agriculture as well as Internal Affairs), the National Bank, Astana International Financial Centre (AIFC), national holdings, national companies, Atameken National Chamber of Entrepreneurs, deputy chairman of the National Security Committee, chairman of the Supreme Court Specialised Judicial College and deputy attorney general. “The fact that the Kazakh government pays special attention to creating the most favourable conditions for attracting investments and strengthening the protection of investors’ rights and that the Kazakh Prime Minister is directly involved is a very good signal to investors,” Bradbury said at the meeting, as reported by Primeminister.kz. Kazakhstan’s foreign direct investment (FDI) increased 15.8 percent to $24 billion last year, and its foreign trade increased 20 percent year-on-year. Kazakh officials hope the government’s new measures will continue that growth trajectory. The European Union is the largest foregin investor and foreign trading partner for Kazakhstan. The United States is among the largest investors, while Canadian companies are working in the uranium industry, among others. First Deputy Prime Minister and Minister of Finance Alikhan Smailov and AIFC Governor Kairat Kelimbetov also informed the prime minister and heads of diplomatic missions on the AIFC’s FDI- friendly initiatives. The AIFC operates within a special legal regime based on English common law principles, an independent court and an international arbitration centre and positions itself as a financial hub for countries in Central Asia, the Caucasus, the Eurasian Economic Union, Europe, the Middle East, Mongolia, as well as Western China.(astanatimes.com) Ministry of Agriculture: the Netherlands are interested in joint projects with Kazakhstan The Minister of Agriculture of Kazakhstan, Saparkhan Omarov, held a meeting with the Ambassador Extraordinary and Plenipotentiary of the Kingdom of the Netherlands, Dirk Jan Kop, the press service of the Ministry of Agriculture reports. It is noted that the Netherlands is an important partner