This Client Update covers the key amendments to the laws of the Republic of Kazakhstan ('RK') and various legal developments introduced in June 2017.

NOVELTIES IN LEGISLATION

The laws covered by the present Client Update are related to both public and private sectors. Some of them may be of interest to you, as they may affect your business in Kazakhstan.

We would like to draw your attention to the following legislative acts.

INTERNATIONAL TREATIES

GENERAL AGREEMENT ON ECONOMIC, TECHNICAL AND TRADE COOPERATION BETWEEN THE MEMBER STATES OF THE ORGANIZATION OF THE ISLAMIC CONFERENCE

On 1 June 2017, the President of the RK signed Law No. 68-VI 'On Ratification of the General Agreement on Economic, Technical and Trade Cooperation Between the Member States of the Organization of the Islamic Conference'.

The General Agreement between the Member States of the Organization of the Islamic Conference ('OIC') is aimed at cooperation among the Member States in the trade, economic and technical areas.

As of today, the OIC has 57 members.

LOAN AGREEMENT BETWEEN RK AND ADB

On 13 June 2017, the President of the RK signed Law No. 70-VI 'On Ratification of the Loan Agreement (Ordinary Operations) (Aktobe-Makat Road Rehabilitation Project) between the Republic of Kazakhstan and the Asian Development Bank'.

The RK is provided the loan of USD 240,300,000 under the terms and conditions of the subject loan agreement. The purpose of the reconstruction of 'Aktobe-Makat' highway connecting corridors 1 and 6 of CAREC ('the Project') is to improve the operational characteristics of the republican network of highways, to increase the transit potential and to improve the social and economic development of Western Kazakhstan.

The completion of the Project is expected by 30 June 2021.

LAWS

ON THE PROSECUTOR'S OFFICE

On 30 June 2017, the President of the RK signed Law No. 81- VI 'On the Prosecutor's Office' ('the Law').

The Law determines the status, competences, organization and procedural rules for the Prosecutor's Office in the RK. The document was developed and adopted following the changes to the Constitution of the RK.

The major novelties of the Law are as follows:

  • The Law specifies the types of the legal acts that cannot be protested against by the prosecutor; sets out grounds for and consequences arising out of adoption of the acts of the public prosecutor oversight; the compulsory enforcement of oversight acts can be carried out only by courts;
  • The Law sets out in more detail the unified system of the prosecutor's office, the competence of the Prosecutor General, the functional areas of the Office of the Prosecutor General, of the regional and district prosecutor offices;
  • The Law provides for three forms of prosecutor's oversight, such as inspection, analysis and assessment of legal acts that become legally effective;
  • Such notions as 'warning' and 'injunction' have been excluded from the prosecutor's oversight acts;
  • The maximum duration of the prosecutor's inspection is limited to thirty calendar days. Subject to the Prosecutor General's approval the duration term of the inspection may be extended for up to 30 days in exceptional cases, if additional information is required or the inspection scope is significant.

The Law entitles the prosecutors to schedule and carry out inspections of government agencies to protect rights, freedoms and legitimate interests of citizens only in the following cases:

  1. If a person cannot depend oneself (orphans, disabled children, persons with disabilities of I and II group, incapable persons);
  2. if the rights of an unlimited number of persons violated;
  3. if necessary to prevent irreversible consequences for life and health of people or security of the RK.

The Law came into force on 13 July 2017.

DECREES

REORGANIZATION OF NC KAZMUNAYGAS JSC

On 7 June 2017, the Prime-Minister of the RK signed Resolution No. 344 'On Certain Issues of the 'National company 'KazMunayGaz' Joint Stock Company' ('the Resolution').

Pursuant to the Resolution, the Joint Stock Company 'National Company KazMunayGas' will be reorganized by consolidation of 'KazMunayGas – processing and marketing' Joint Stock Company with 'National company 'KazMunayGaz' Joint Stock Company. 100% shares in Trade house KazMunaiGaz N.V., 50% of shares in Valsera Holdings B.V., 49.7% of shares in PetroKazakhstan Oil Products LLP, 99.53619433% of participating interests in Atyrau Oil Refinery LLP earlier owned by 'KazMunayGas – processing and marketing' Joint Stock Company will be alienated to the 'National Company 'KazMunayGas' Joint Stock Company.

The Resolution came into force on 7 June 2017.

ORDERS

GOVERNMENT OBLIGATIONS ON PPP PROJECTS

On 26 April 2017, the Minister of the National Economy of the RK signed Order No. 175 'On Approval of Government Obligations Ceiling Amount on Public Private Partnership Projects, Including the Government Concession Obligations of Local Government Administrations for 2017-2019'.

The Order approves the ceiling amount of government obligations on public private partnership projects for the next three years. The total nation-wide ceiling amount of government obligations on public private partnership projects for 2017 will be KZT 674,195,663 million.

The Decree came into force on 4 June 2017.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.