Kazakhstan Guide

Doing Business in Kazakhstan
www.Kazakhstan.DoingBusinessGuide.co.uk
Astana, Kazakhstan
Visit the Website and download the free Mobile App
CONTENTS
5 Kazakhstan Overview
7 Welcome from Lesley Batchelor OBE, FIEx (Grad) – Director General,
The Institute of Export
9 Foreword from Dr Carolyn Browne, HM Ambassador Astana
11 About UK Trade & Investment (UKTI)
13 About this Guide
17 – Why Kazakhstan?
24 – Researching the market
29 – Getting here and advice about your stay
35 – Sector specific opportunities
45 – Preparing to export
51 – How to do business in Kazakhstan
59 – Business etiquette, language and culture
21 – What are the challenges?
65 Resources
66 – Contacts details
68 – Useful Links
69 – Additional Useful Links
71 – Trade Shows
72 Map of Kazakhstan
75 Quick Facts
www.Kazakhstan.DoingBusinessGuide.co.uk 3
Kazakhstan Overview
Kazakhstan is the 9th largest country in the world, (the largest land-locked) and
is located in central Asia, it is also one of the most sparsely populated with an
estimated population of around 17.6 million.
The country has a dramatically-variable continental climate. In the cold and

lengthy winter, temperatures as low as -40°C are not uncommon, as opposed
to 40°C sweltering heat in the summer.
Kazakhstan is a republic, with the government and many large state companies
based in the country’s capital city Astana, which has a fast-growing population.
The city of Almaty, the previous capital, is still a commercial hub, with a much
larger population than the capital. However, most international and national
companies are now headquartered in Astana. With EXPO 2017 and the creation
of the new Astana International Financial Centre, Astana is set to become the
major commercial city in Kazakhstan. Other principal cities include Aktau, Atyrau,
Karaganda, Shymkent and Pavlodar.
Kazakhstan gained independence from the Soviet Union on the 16th December
1991, following its collapse. A relatively young country in some respects,
Kazakhstan is ambitiously western, although it still carries a somewhat soviet
legacy, principally in the overly-bureaucratic administration of business and
property.
The UK is one of the top 5 largest investors in Kazakhstan. In 2014, bilateral

trade between the UK and Kazakhstan equated to USD $1.2 billion.
The main UK exports are oil and gas, education, financial and business services,
healthcare and medical equipment, architecture and design services, as well as
mining.
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Welcome from Lesley Batchelor OBE, FIEx (Grad) -
Director General, Institute of Export
Preparing for any new market needs consideration when thinking about a country
like Kazakhstan there are many issues both cultural and business linked that you
need to think through.
This guide offers you the opportunity to think through your market issues and learn
how to enter the market successfully and with as little pain as possible. The Institute
of Export’s mission is to enhance the export performance of the United Kingdom by
setting and maintaining professional standards in international trade management
and export practice. This is principally achieved by the provision of education,
training and practical support, a helpline and one-to-one assistance with paperwork.
Dedicated to professionalism and recognising the challenging and often complex

trading conditions in international markets, the Institute is committed to the belief
that real competitive advantage lies in competence and that commercial power,
especially negotiating power, is underpinned by a sound basis of knowledge.
Why not contact us and find out how you can join?
Lesley Batchelor OBE, FIEx (Grad) -

Director General - Institute of Export
www.export.org.uk
Foreword from Dr Carolyn Browne, HM Ambassador Astana
I am delighted to contribute to this guide to “Doing Business in Kazakhstan”.
Kazakhstan is a key market for the UK. In 2013, David Cameron was the first ever serving UK
Prime Minister to visit Kazakhstan. Following that visit, an Intergovernment Commission
between the UK and Kazakhstan was set up, tasked with increasing our bilateral trade and
investment. In November 2015, when President Nazarbayev visited the UK as a Guest of
the British Government, it became clear how rapidly trade and investment between the two
countries had developed in the meantime, including the signature of trade deals worth £3.2bn
and agreement to extend joint work further into new sectors.
UKTI has currently identified three high value opportunity programmes in Kazakhstan: Oil
& Gas, Mining and Education. The Oil & Gas programme is the most successful globally –
having facilitated 48 new joint ventures and delivered over £6.4bn in business wins since
2013. In addition to these programmes, further sectors such as Financial and Professional
Services, Manufacturing and Agribusiness are opening up – with opportunities for new
partnerships and joint ventures.
In June 2017, Astana will open its doors to international visitors to experience EXPO2017 –
based on the theme of Future Energy. The UK has confirmed its participation in EXPO2017,
which will cement our bilateral long-term strategic partnership. Kazakhstan dominates the
Central Asian region in terms of economic growth. Its economy is now larger than twice the
size of all the other Central Asian economies put together. Being a resource based economy,
the oil and gas sector is the key driver of the Kazakh economy and contributes to around
30% of GDP and 80% of exports. Kazakhstan was a founder member of the Eurasian
Economic Union which was launched in January 2015, and in November 2015 Kazakhstan
became a member of the WTO. WTO accession will allow the Kazakh economy to benefit
from improved access to European and international foreign trade and increase investor
confidence.
I am sure that this guide will be helpful to companies interested in this market. The UKTI team
and the British Chamber of Commerce in Kazakhstan are here to help you. You can contact
them through the Director of UKTI, David Ratcliffe by email: david.ratcliffe@fco.gsi.gov.uk
or info@britishchamber.kz I look forward to welcoming you to Kazakhstan in the near future.
Dr Carolyn Browne
HM Ambassador, Astana
Michael Wilson & Partners, Ltd. (MWP) is a full service law practice and business consultancy
with offices in both Baku and Almaty covering Azerbaijan, Kazakhstan, the Central Asian Region
and the Caucasus. MWP was established in Kazakhstan in 1998 and in Azerbaijan in 2003.
Our practice areas • Corporate/M&A • Competition • Establishment, Reorganisation & Liquidation

of Companies, Branches and Representative Offices • Employment • Contracts • Mining and Energy
• Dispute Resolution • Capital Markets • Banking and Finance • Currency Control • Forensics
Contact:
In Kazakhstan: In Azerbaijan: Contact name:
Nurly Tau Business Center SAT Plaza, 9th Floor Assel Kulisheva
7th Floor, Building 1A 133 Bashir Safaroglu awk@mwp.kz
5, Al-Farabi Avenue Street
050059 Almaty AZ 1009, Baku
Kazakhstan Azerbaijan
Tel: +7 (727) 258 48 90 Tel: +994 12 497 8948

Fax: +7 (727) 258 48 94 Fax: +994 12 497 8947
Email: info@mwp.kz Email: info@mwp.az
Website: www.mwp.kz Website: www.mwp.az
About UK Trade & Investment (UKTI)
UKTI is the British Government department that helps UK-based companies
succeed in an increasingly global economy. UKTI also helps overseas companies
bring their high quality investment to the UK’s economy. UKTI’s range of expert
services are tailored to the needs of Individual businesses to maximise their
international success. UKTI provides companies with knowledge, advice and
practical support.
Through a range of unique services, including participation at selected tradeshows,

outward trade missions and providing bespoke market intelligence, UKTI can help
you crack foreign markets and get to grips quickly with overseas regulations and
business practice.
With headquarters in London, UKTI have professional advisers around the UK

and staff across more than 100 countries.
Contact UKTI
Contact your local International Trade Team or Scottish Development International

(SDI), Welsh Government (WG) or Invest Northern Ireland (INI) offices to find out
more about the range of services available to you.
You can find your nearest International Trade Team at:
www.gov.uk/ukti
General UKTI enquiry number: +44 (0) 207 215 5000

UK Trade & Investment
1 Victoria Street
London,
SW1H 0ET
United Kingdom
Email: enquiries@ukti.gsi.gov.uk
KAZAKHSTAN
ABOUT THIS GUIDE
This guide aims to provide a route map of the way ahead, together with signposts to other
sources of help.
The main objective of this Doing Business in Kazakhstan Guide is to provide you with
basic knowledge about Kazakhstan; an overview of its economy, business culture, potential
opportunities and to identify the main issues associated with initial research, market entry,
risk management and cultural and language issues.
We do not pretend to provide all the answers in the guide, but novice exporters in particular
will find it a useful starting point. Further assistance is available from the UK Trade &
Investment team in Kazakhstan. Full contact details are available in this guide.
A special thank you to KAZNEX INVEST for their contribution to the content in the guide.
This guide is available in four formats:
• Website (www.Kazakhstan.DoingBusinessGuide.co.uk)
• a ‘free’ downloadable 'mobile device-friendly’ app
• PDF download (please see the website for more details) and
• this full colour hard-copy brochure
Doing Business in Kazakhstan Guide Team;
Project Director: Craig Smith

Managing Editor: Olivia Taylor
Sponsorship Manager: James Clowes
Creative Manager: Paul King
Creative Consultants: Twistedgifted www.twistedgifted.co.uk
Printed using materials

from sustainable sources
‘Doing Business in Kazakhstan Guide’ published in the UK by International Market Advisor Ltd.
© 2016 International Market Advisor Ltd (unless otherwise stated). All rights reserved.
Contains public sector information licensed under the Open Government Licence v3.0.
13
KAZAKHSTAN
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WHY KAZAKHSTAN?
KAZAKHSTAN
Kazakhstan is the 9th largest country

in the world, (the largest land-locked)
and is located in central Asia, it is also
one of the most sparsely populated
with an estimated population of around
17.6 million.
KAZAKHSTAN
Why Kazakhstan? Astana. With EXPO 2017 and the creation

of the new Astana International Financial
Centre, Astana is set to become the major
commercial city in Kazakhstan. Other
Background
principal cities include Aktau, Atyrau,
Kazakhstan is the 9th largest country in
Karaganda, Shymkent and Pavlodar.
the world, (the largest land-locked) and is
The backbone and economic base of the
located in central Asia, it is also one of the
country could notably claim to be in the
most sparsely populated with an estimated
west, where most of the oil & gas reserves
population of around 17.6 million.
are located, with oil accounting for 80% of
Kazakhstan’s exports.
(Source – KAZNEX INVEST)
Kazakhstan gained independence from the
Approximately 60% of the population are
Soviet Union on the 16th December 1991,
Kazakh and around 20% are of Russian
following its collapse. A relatively young
origin.
country in some respects, Kazakhstan is
ambitiously western, although it still carries
The ethnic make-up of Kazakhstan also
a somewhat soviet legacy, principally in
consists of sizeable minorities of Germans,
the overly-bureaucratic administration
Ukrainians, Uzbeks and Tatars. Although
of business and property.
the Western expatriate communities are
growing, they are still relatively small. (Source – UKTI)
Kazakhstan is a religiously diverse
country where more than 3000 religious
associations operate, representing The history of modern Kazakhstan
40 denominations, the most dominant
religions are Christianity and Islam. 1991
• Kazakh SSR transformed into
(Source – KAZNEX INVEST) the Republic of Kazakhstan, state
independence of the republic was
The country has a dramatically-variable proclaimed.
continental climate. In the cold and lengthy • Semipalatinsk nuclear test site was
winter, temperatures as low as -40°C are closed.
not uncommon, as opposed to 40°C
sweltering heat in the summer. 1992
• Kazakhstan enters UN, OSCE and
Kazakhstan is a republic, with the ECO.
government and many large state • Kazakhstan acceded to the Treaty on
companies based in the country’s capital non-proliferation of nuclear weapons
city Astana, which has a fast-growing as nuclear-free country.
population. The city of Almaty, the previous
capital, is still a commercial hub, with a 1993
much larger population than the capital. • First Constitution of the Republic of
However, most international and national Kazakhstan adopted.
companies are now headquartered in • National currency introduced – Tenge.

1997 2011
• Adopted strategy “Kazakhstan – 2030. • Customs control is abolished at
Prosperity, security and improvement the borders of Russia, Belarus and
of welfare of all Kazakhs”. Kazakhstan within the framework of
the Customs union.
2000
• National Fund of the Republic of 2012
Kazakhstan was established. • Astana was declared as the venue for
the "EXPO – 2017", where the theme
2006 of the exhibition is "Energy of the
• In order to improve asset management Future."
of the largest public corporations, • The ‘Common Economic Space’
State holding “Samruk” was created. was created (Russia, Belarus and
• Created Sustained Development Fund Kazakhstan).
“Kazyna” to increase investment and
innovation activity in non-oil economic 2014
sector of Kazakhstan. • Signing of the agreement on the
creation of the Eurasian Economic
2007 Union (Kazakhstan, Russia and
• A decision made on transfer of the Belarus), as well as the addition of the
base material sector revenues Republic of Armenia and the Kyrgyz
(including revenues from oil) to the Republic to it, which was due to be
National Fund, therefore, the state entered into force on 1st January
budget is formed without “oil money”. 2015.
2008 2015
• Adopted a plan to stabilise the • Entry into force of the Eurasian
economy and financial system of the Economic Union (Kazakhstan, Russia,
country. Belarus, Armenia and Kyrgyzstan).
• The main operator of stability plan • Kazakhstan joined the World Trade
implementation is newly created fund Organization (WTO)
“Samruk-Kazyna”.
2010
• Government program on forced indus
trial-innovative development for 2010-
2014 was adopted.
• Customs union with Russia and
Belarus created.
• Kazakhstan’s OSCE chairmanship.
KAZAKHSTAN
Strengths of the market British companies are well-represented in

the financial and professional business
A stable economy and the apparent ease services sectors, which are sophisticated
of starting a business are among many for the region.
strengths of the Kazakh market. Other
benefits include a strong regulatory (Source – UKTI / KAZNEX INVEST)
environment, a wide and expanding
range of opportunities for companies Kazakhstan is in a favourable location,
as the economy diversifies, and the right in the heart of Eurasia. The major
development of a transparent and overland routes binding Asia and the
effective business culture. Pacific Region with the Near East and
Middle East as well as Europe, pass
Doing business in Kazakhstan may also through Kazakhstan. Three out of the four
open doors as a gateway to other central BRICS countries (Brazil, Russia, India,
Asian markets, as well as to Russia, China, South Africa) are situated next
Armenia, Kyrgyzstan and Belarus through to Kazakhstan: Russia and China adjoin
the Customs Union agreement. Please Kazakhstan, with India geographically
visit the Eurasian Economic Union (EAEU) in close proximity.
for more information:
www.eaeunion.org/?lang=en The favourable business climate and
political stability have promoted a
Ranked in 42nd place in the Global considerable foreign direct investment
Competitiveness Report 2015-2016 (FDI) flow in to Kazakhstan. Since 2005,
(www3.weforum.org/docs/gcr/2015- Kazakhstan has attracted gross FDI of
2016/Global_Competitiveness_Report_20 over USD $208 billion.
15-2016.pdf), Kazakhstan is also rated
41st overall in the World Bank’s ‘Ease (Source – KAZNEX INVEST)
of Doing Business Report’:
www.doingbusiness.org/rankings. Investor protection
Interestingly, in the same report for the The Republic of Kazakhstan Law № 373-II
ease of starting up a business, Kazakhstan on investments, dated January 8th 2003,
is ranked as 21st out of 189 countries. provides various guarantees to minimise
the risks that an investor may experience
There are substantial opportunities when investing in Kazakhstan:
in Kazakhstan for British companies,
especially in the oil and gas sector • Guarantee of statutory protection for
and extractive industries, due to investments made within the Republic
mass-expansion and development in of Kazakhstan
the Caspian Sea. There are also planned • Guarantees for use of income
investments in the power, transport, • Openness in state activity concerning
communications and agricultural sectors, investors is guaranteed
as well as skills development, vocational • Guarantees of investors’ rights during
training and retail sectors which all offer nationalisation or requisition
significant opportunities for British
companies.

According to the Doing Business 2016 In 2014, Kazakhstan published ‘Strategy
Rank for Protecting Minority Investors, 2050’, with an objective to become one of
Kazakhstan is in 25th place. the top 30 most competitive nations by
2050. Visit the dedicated ‘Kazakhstan
(Source – KAZNEX INVEST) 2050’ website for more information:
www.strategy2050.kz/en
Economic overview (Source – UKTI)
The national currency of Kazakhstan is

the Tenge. Economic geography
Kazakhstan consists of five large
For around eight years, up until 2007, economic regions:
Kazakhstan recorded an average growth
rate of about 10% per year, and although • North Kazakhstan – efficient grain
the aftershock of the global financial crisis economy, extraction of iron ore and
hit hard in 2008, a remarkably healthy coal, mechanical engineering,
growth of 3-4% was still achieved. production of oil products and
ferroalloys, and energy.
Kazakhstan has the most stable economy
of the Commonwealth of Independent • East Kazakhstan – efficient nonferrous
States (CIS), of which it is a member, and industry, energy, mechanical
is leading all central Asian countries in engineering and forestry products.
terms of economic growth. With growth of
4.3% in 2014, the economy is forecast to • West Kazakhstan – is one of the
grow by just 1.5% in 2015; markedly slowly largest oil and gas extraction regions.
than the previous year. This is due to a
combination of the fall in global oil prices, • Central Kazakhstan – efficient ferrous
setbacks in oil production at Kashagan, and nonferrous industries, mechanical
devaluation of the rouble and growing engineering, and cattle breeding.
geopolitical risks in Russia.
• South Kazakhstan – cotton, rice, wool,
Currency depreciation is having a noted grain, fruits, vegetables, grapes;
impact on inflation. efficient nonferrous industry,
instrument manufacturing, light
In terms of Gross Domestic Product manufacturing, food production, fish
(GDP), oil and gas contributes to about farming, and forestry products.
20% (www.stat.gov.kz). Oil and gas also
accounts for around 80% of exports and (Source – KAZNEX INVEST)
for 20% of budget revenues.
The massive oil fields at Tengiz and

Karachaganak are currently responsible
for the production of 40% of the country’s
total output; however, future production is
set to be dominated by the Kashagan field.
However, there were initial production
delays at Kashagan, which likely impacted
on the GDP by approximately 0.5% in
2014.
KAZAKHSTAN
Trade between the UK and Kazakhstan Many Kazakh companies look to Britain
for financial services expertise and
The UK is one of the top 10 largest investment, and there have been several
investors in Kazakhstan. In 2014, bilateral large successful IPOs on the London
trade between the UK and Kazakhstan Stock Exchange. There are well over a
equated to USD $1.2 billion. hundred UK companies or joint ventures
with British connections active in
Back in 2013, UK exports to Kazakhstan Kazakhstan.
equalled £514 million which was a slight
increase on the year before. However, (Source – UKTI)
between January and July 2014, although
£185.8 million worth of goods were
exported to Kazakhstan from the UK, Free Trade Agreements (FTAs)
it marked a 30.5% decrease from the
year previously, in comparison to 2013 Alongside Russia, Armenia, Kyrgyzstan
at the same time. and Belarus, Kazakhstan is also a member
of Eurasian Economic Union (ECU) –
The main UK exports are oil and gas, incredibly, this allows access to a market
education, financial and business services, of 182 million people.
healthcare and medical equipment,
architecture and design services, as As a member of the CIS, Kazakhstan,
well as mining. along with 7 other member-states, signed
the Commonwealth of Independent States
Since gaining independence in 1991, total Free Trade Area (CISFTA), on the 18th
net FDI inflow to Kazakhstan between October 2011, although the agreement is
1992 to 2014 was $126.6 billion, yet to be ratified by Kazakhstan.
according to UNCTAD’s data. Please visit:
www.unctad.org/en/pages/Publication- (Source – UKTI)
Webflyer.aspx?publicationid=1358 for
more details.
According to the National Bank of the

Republic of Kazakhstan, gross FDI inflow
from the UK to Kazakhstan in the period
from 2005 to the first half of 2015 was
$11.5 billion. For more information visit:
www.nationalbank.kz/?switch=english

The structure of Kazakh State Bodies
KAZAKHSTAN
Researching the market through the provision of quality assistance

in representation to government,
customised business services and
It is advisable for UK companies with networking opportunities.
no prior experience in Kazakhstan, to Visit: www.britishchamber.kz
thoroughly research the market.
UKTI and the Chamber work closely
Without contacts or having someone on together and a UKTI team member will be
the ground to do market investigation, it co-located with the Chamber in Astana.
can be very difficult to make progress.
The UKTI’s overseas team in Astana and To find out more about commissioning
Atyrau are well-placed to help and are work, please contact your local UKTI
therefore a particularly valuable resource. office. See: www.gov.uk/government/
They can provide a range of services to organisations/uk-trade-investment or
British-based companies wishing to grow contact David Ratcliffe, the Director of
their business in the Kazakhstan. Trade & Investment in Kazakhstan:
david.ratcliffe@fco.gov.uk
UKTI services include the provision
of market information, validated lists of
agents/potential partners, identifying key For more information, contact a UKTI
market players or potential customers, Kazakhstan export adviser for a free
establishing the interest of such contacts consultation, visit:
in working with your company, and www.greatbusiness.gov.uk/ukti
arranging appointments. In addition,
they can also organise events for you to UK Trade and Investment (UKTI) publish
meet contacts or promote a company and over 1,000 business opportunities per
its products/services. month across all sectors and over 100
markets. Sign up to receive regular
You can commission a UKTI Overseas business opportunities alerts:
Market Introduction Service (OMIS) to www.businessopportunities.ukti.gov.uk/
assist your company to enter or expand home.html?guid=none
your business in Kazakhstan. Under this
service, the British Embassy’s Trade (Source – UKTI)
& Investment Advisers, who have wide
local experience and knowledge, can
identify business partners and provide the
support and advice most relevant to your
company's specific needs in the market.
In addition, the British Chamber of

Commerce in Kazakhstan was created in
2015 and has its offices in Astana. Its aim
is to provide greater support to the British
business community in Kazakhstan

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KAZAKHSTAN
Kazakhstan gained independence from the

Soviet Union on the 16th December 1991,
following its collapse. A relatively young country
in some respects, Kazakhstan is ambitiously
western, although it still carries a somewhat
soviet legacy, principally in the overly-bureaucratic
administration of business and property.
t
GETTING HERE AND ADVICE ABOUT YOUR STAY
KAZAKHSTAN
Getting here and advice about Travel advice

your stay
Although Astana and Almaty are generally
safe, petty theft, robberies and car-jacking
are not unknown. Visitors should be
Entry requirements
cautious and alert when travelling at night
All visitors must have a valid passport.
and it has been advised by the Embassy,
that single travellers should not enter into
Between the 16th July 2015 and the
a taxi unless it is occupied by two or more
31st December 2017, Kazakhstan has
people. Talk to your hotel or travel host,
established a visa-free regime for UK
as it may be possible to hire a car and
citizens on stays of up to 15 days.
driver for the duration of your visit.
For longer stays while on business,
a visa is required. For more detailed
Regulations dictate that foreigners are
information visit: www.kazembassy.org.uk/
required to carry their passports with them
en/pages/page/74
at all times.
The Embassy of the Republic of
Before travelling to Kazakhstan, check the
Kazakhstan in London provides full
Foreign & Commonwealth Office (FCO)
information about the entry requirements
for the latest country information and
for Kazakhstan, and about how to apply
up-to-date travel advice: www.gov.uk/
for a visa, should you require one:
foreign-travel-advice/kazakhstan
(Source – UKTI)
Embassy of the Republic of Kazakhstan
to the United Kingdom of Great Britain
and Northern Ireland
125 Pall Mall
London
SW1Y 5EA
UK
Tel: +44(0)207 925 1757

Fax: +44(0)207 930 8990
Email: london@mfa.kz
Visit the website at:

www.kazembassy.org.uk/en
(Source - Embassy of the Republic

of Kazakhstan)

Kazakhstan road infrastructure:
Kazakhstan airport infrastructure:
Flights to Kazakhstan Travelling from the airport
All Kazakh airlines except for Air Astana, Meet and greet transport services can be
Kazakhstan’s national airline, are restricted arranged by many hotels, to provide
from operating services to the European transport from the airport.
Union (EU), due to compliance issues
with internationally-accepted safety There is competition between the official
requirements. Kazakh taxis and civilian drivers who offer
a private ‘street taxi’ service. Caution must
(Source – FCO Travel Advice) be taken when using any form of taxi and
it is important to negotiate and agree a
price before beginning any journey, as taxi
It takes approximately 6 hours 20 minutes drivers will attempt to extract as much
to fly directly from London to Astana. money as possible from foreigner visitors.
Air Astana operates regular flights from Leaving a tip will not be expected and
London to Astana (currently three times visitors should try to avoid payment with
a week but will soon increase to five). large denomination notes, as it is unlikely
There are also several internal flights that the drivers will offer any change,
operating daily between Astana and whether able to or not.
Almaty, also provided by Air Astana.
Astana airport is approximately 16 km from
On arrival, keep all baggage tags after the capital city itself. The number 10 bus
collecting your luggage, as they need to service operates from the airport to the city
be shown before leaving the airport. centre; however, it may be more practical
to take a taxi, which will take around 15
Business travellers wishing to fly directly minutes. Astana is relatively small for a
to Atyrau from Europe can use the Air capital city and most car journeys can be
Astana services from Amsterdam and made in around 10 or 15 minutes.
Istanbul, or Transaero from Moscow.
It is around 12 km from the city of Almaty
Please visit the Air Astana website for to Almaty airport. Public transport is
more information: www.airastana.com available from the airport; however in
best practice, taking a taxi is advisable.
(Source – UKTI) The duration of the journey should be no
longer than 30 minutes, however Almaty
is renowned for its busy roads and traffic
jams, so ensure that you allow ample time
to reach your destination, especially when
on a return journey to the airport.
From Atyrau airport to the city centre it

is only a short journey.
(Source – UKTI)
KAZAKHSTAN
With estimated oil reserves of 5.3 billion tonnes,

and approximately 3.3 trillion cubic metres of gas,
Kazakhstan is in the top 10 countries in the world
in terms of oil and gas reserves. The country plans
extensive further development in extractive
industries and in the Caspian Sea.
35
SECTOR SPECIFIC OPPORTUNITIES
KAZAKHSTAN
Sector specific opportunities Oil and gas
With estimated oil reserves of 5.3 billion

tonnes, and approximately 3.3 trillion cubic
Expo 2017
metres of gas, Kazakhstan is in the top
Expo 2017 will be hosted by Kazakhstan.
10 countries in the world in terms of oil and
gas reserves. The country plans extensive
It is expected that there will be many
further development in extractive industries
promotional opportunities for UK companies
and in the Caspian Sea.
in relation to the theme of: ‘Energy of the
Future’.
There are a wide range of opportunities
on offer to qualified UK companies
Expected projects include:
meeting local content requirements in
the oil and gas industry.
• construction of Expo City and the
green village
Opportunities include:
• development of ‘Smart Astana’ using
• engineering equipment supply
the latest technology in urban
planning, infrastructure, healthcare,
• oil and gas equipment manufacturing
education, safety and ecology
• solid and liquid waste treatment and
• transport infrastructure upgrade
disposal
projects
• oil spill response and treatment
• supply of low carbon technologies
• design, engineering, consultancy

Contact the Deputy Head of UKTI
services
Kazakhstan, Goulnar Gabdulova at:
UKTI.GG@mail.online.kz for more
Planned investments in the power,
information on opportunities in the oil
transport, communications and agricultural
and gas sector.
sectors should offer significant
opportunities for UK companies.
(Source – UKTI)
Contact UKTI adviser Olga Protassova at:

Olga.Protassova@fco.gov.uk, for more
information on opportunities at Expo 2017,
or visit the Expo 2017 website at:
www.expo2017astana.com/en/
(Source – UKTI)

Petrochemical industry Mining
The base petrochemical industry, (the The natural resources sector in Kazakhstan
production of primary petrochemicals), is responsible for around 17% of GDP,
is a new and promising sector in the 16% of exports and for the employment of
economy of Kazakhstan. Kazakh about 200,000 people. It is one the world’s
manufacturers, producing plastics for most promising emerging markets in this
various purposes, e.g. for construction sector.
materials, packaging etc., use base
petrochemical products. To meet the There are opportunities for UK companies in:
needs of these sectors, Kazakhstan
receives annual imports of raw polymer • geological exploration
materials to an average value of USD
$400 million. Production of a domestic • mining software and systems
market of base petrochemicals is about development
72 billion Tenge, while imports account for
more than 70%. • drilling
Petrochemical products have high export • integrated project management

potential. According to priority commodity
groups, imports of macro-region countries • contract mining
amount to more than USD $20 billion.
• innovative equipment supply
Priority activities:
• laboratory and consultancy services
• Production of other main organic
chemicals • engineering services
• Production of primary plastics

• Production of primary synthetic Olga.Protassova@fco.gov.uk, for more
rubbers information on the mining sector.
Priority projects
(Source – UKTI)
From 2015 to 2019, the state policy on the
development of the petrochemical sector
will be aimed at creating new facilities
producing primary polymers and organic
compounds as raw materials for both the
petrochemical industry itself, and chemical
industry in general (facility-producing
aromatic hydrocarbons in Atyrau region).
KAZAKHSTAN
Ferrous metallurgy Non-ferrous metallurgy
Ferrous metallurgy is part of a large historical Non-ferrous metallurgy is a key sector

industry, and its share in secondary industry of secondary industry in the Republic of
in Kazakhstan amounts to 13%. Ferrous Kazakhstan, forming the country's export
metallurgy is a basis for development of potential. The products are fundamental
engineering and metal work, its products in engineering, electrical engineering,
are widely-used in all spheres of the construction and electronics.
economy. Development of primary sectors,
engineering and construction provides a Priority activities:
fixed demand on the domestic market and
macro region markets. • Production of noble (precious) metals
Priority activities: • Production of aluminium
• Production of cast-iron, steel and • Production of lead, zinc and stannum

ferrous alloys
• Production of copper
• Production of pipes, pipelines,
sections, steel fittings • Production of other non-ferrous metals
• Cold drawing (production of iron rod Priority projects

and solid billet) From 2015 to 2019, the state policy on
development of non-ferrous metallurgy of
• Cold rolling of strips and narrow strips the country will increase production of the
base metals copper, gold, titanium and
• Cold moulding and folding aluminium, and increase in production
of wire rods, wires, rolled stock, alloys,
• Production of wires by cold drawing foils, jewellery, and products for related
industries.
Priority projects
From 2015 to 2019, the state policy on (Source – KAZNEX INVEST)
the development of ferrous industry will
be aimed at implementing priority areas
for production of high quality raw materials
to produce steel (granulated iron and hot
briquetted iron, increase in production of
new types of ferrous alloys), production
of new types of steel (piped and
corrosion-resistant, heat-resistant and
hot-resistant, tool, ball bearing, rail and
spring steel) and increasing the product
line of highly alloyed steel.

Agriculture Green energy
Agriculture is important to the Kazakh There is huge potential in renewable

economy, which is evident from the energy in Kazakhstan, in particular
country’s ranking among the top 10 grain hydropower, solar and wind. With only
producers in the world. The government about a 1% contribution to the Kazakhstan
is looking for regional development and energy balance, it is evident that this
for investment in crop development, sector is virtually untapped. The
food production and animal processing. government has created a plan for 2050,
with a target for renewable energy to meet
Major areas of opportunity for UK 3% of the total demand by 2020, and 30%
exporters and investors include: by 2050.
• supply of pedigree animals and Opportunities for UK companies include:

genetic material, artificial insemination
and embryo transplant technologies • project management services
• supply of seeds, feed premix and • consultancy services in green energy,

vaccines waste management, energy efficiency
• agricultural machinery and software • engineering and construction services

for onshore wind, solar, biomass
• farm management technologies and power
services
• innovative equipment supply for
• agricultural consulting services, such onshore wind, solar, biomass
as pasture development
• cooperation between scientific Contact UKTI adviser Olga Protassova at:

research institutions Olga.Protassova@fco.gov.uk, for more
information on opportunities in the green
• vocational education energy sector
• water saving technologies and

sustainable irrigation/water supply (Source – UKTI)
systems
• development of organic agricultural

standards

Olga.Protassova@fco.gov.uk, for more
information on opportunities in the
agriculture sector
(Source – UKTI)
THE H
AT E
A
A D E •
RT
OF INT
TR
L
E
RN
ATIONA
On course for success

Choosing a great export
training partner can really
help your company take off
in the export trade! We can
help develop new ideas and
find ways to drive down
costs and produce
sustainable improvements in
your export business.
• Membership supports all
aspects of your
international trade
• Leading UK authority on
trading globally
• Tailored training to
support your business
needs
• Expert solutions for
international trade
Exporting great ideas to you.
Join us today
Call: +44(0)1733 404 400
email: institute@export.org.uk
www.export.org.uk
Education There are education opportunities for:
Since the creation of the Presidential • education resources

Scholarship Bolashak in 1993, more
than 3,000 students have studied as part • vocational training
of undergraduate, postgraduate and
doctoral programmes in the UK. • accreditation of programmes
Visit: www.kazembassy.org.uk/en
• English language training
The government is developing technical
and vocational education. The shortage • corporate training
of local expertise in the oil and gas, and
mineral resources sectors in Kazakhstan,
has resulted in large numbers of expats Contact UKTI adviser, Larissa Glukhova
being recruited. at: Larissa.Glukhova@fco.gov.uk for more
information on education and training
Kasipkor was established in 2011 to opportunities.
develop world-class colleges in cooperation
with international partners in Kazakhstan.
(Source – UKTI)
There is also the established network of
15 Nazarbayev Intellectual Secondary
Schools (NIS). These schools deliver
courses in 3 languages (Kazakh, Russian
and English), use English language in
senior classes, annually recruit teachers
abroad, cooperate with Cambridge
International Examinations on teacher and
curriculum development, and cooperate
with the Cambridge University Press on
developing learning materials. Visit the
website for more information at:
www.nis.edu.kz/en
Why Michael Wilson & Partners, Ltd.?
Michael Wilson & Partners, Ltd. (MWP) is a full service law practice and business consultancy
with offices in both Baku and Almaty covering Azerbaijan, Kazakhstan, the Central Asian Region
and the Caucasus. MWP was established in Kazakhstan in 1998 and in Azerbaijan in 2003.
Combining years of collective

experience in the CIS, MWP’s
key personnel have been actively
practicing in this region for more
than 20 years on a resident full-time
basis, taking a leading role on many
of the groundbreaking transactions
in a variety of sectors. Today, MWP
continues to maintain its position
as the region’s largest independent
law firm. MWP has a market-leading
team of lawyers, which is widely
recognised for the quality of advice
given to clients on all aspects of
their various projects.
Our practice areas increase/reduction, dividend Establishment, Reorganisation &

distribution) Liquidationof Companies, Branches
Corporate/M&A • Regulatory compliance and Representative Offices
• Full or limited legal due diligence
• Corporate governance issues • Drafting and negotiating sales • Corporate structuring
such as directors’ duties and and purchase agreements • Assisting in establishing
liabilities, board composition and • Advising and assisting with commercial and non-commercial
effectiveness and general board obtaining all necessary legal entities in the form of
policies government approvals, including limited liability partnerships, joint
• Director and senior executive merger control advice stock companies, branches and
remuneration structuring and representative offices in Central
disclosure, including employee Competition Asia, including Kazakhstan and
share plans and incentive Azerbaijan
arrangements, and director • Advising on economic • Drafting all necessary foundation
contracts concentration or merger control documents
• Preparation for annual general • Cartels • Advising on and assisting with
meetings and other shareholder • Abuse of dominance the reorganisation, liquidation
meetings and communications • Regulation of natural monopolies and bankruptcy procedures
• Capital management (capital • Antimonopoly litigation
Employment Dispute Resolution Currency Control
• Consulting on labour issues • Advising on tax/transfer pricing • Advising on currency regulation

• Advising on and assisting with disputes and appeals and currency control issues
obtaining work permits for • Alternative dispute resolution, • Assisting with registration or
foreign employees by mediation and pre-dispute notification of currency
• Visa support settlement negotiations transactions
• Employment dispute resolution • Civil and administrative litigation, • Structuring of foreign trade
• Analysis of existing and drafting litigation with state authorities transactions
employment agreements, • International and domestic
collective employment arbitrations Forensics
agreements, financial liability • Enforcement of judgments of
agreements and confidentiality courts and foreign arbitral • Fraud investigations
agreements compliant with each awards • Legal analysis and risk
of Kazakhstan, Azerbaijan, • Representation before tax assessment of fraud
Kyrgyzstan legislation authorities and in courts of law • Compliance review and
• Review of all HR documentation assessment with both local
for compliance with Kazakhstan, Capital Markets laws/regulations and internal
Azerbaijan, Kyrgyzstan corporate policies/regulations
legislations • Advising on equity and equity- • Expert witness statements in
• Advising on application of linked securities issues disputes and litigation
incentives and disciplinary • Advising on domestic and • Remedies
measures to employees international offerings of debt
• Work health & safety securities, Islamic finance
• Full support during audits by transactions, sovereign debt
the labour authorities offerings Contact:
• Advising on IPO on the
Contracts Kazakhstan and foreign In Kazakhstan:
securities exchange markets
• Drafting and negotiating various • Advising on licensing for Nurly Tau Business Center
kinds of contracts, including professional activities on the 7th Floor, Building 1A
FIDIC-based, GAFTA-based securities, investment fund and 5, Al-Farabi Avenue
contracts insurance market 050059 Almaty
• Checking contracts for • Advising on regulation of Kazakhstan
compliance with Kazakhstan brokers/dealers, investment
and Azerbaijan legislation funds, insurance companies and Tel: +7 (727) 258 48 90
other professional participants of Fax: +7 (727) 258 48 94
Mining and Energy securities market
• Advising on ISDA Master Email: info@mwp.kz
• Advising on subsoil use Agreements and on structuring Website: www.mwp.kz
regulations, procurement by and marketing of derivative
subsoil users, pipelines products In Azerbaijan:
• Assisting with negotiations on, • Advising on the structured
and compliance with, subsoil use finance issues SAT Plaza, 9th Floor
contracts 133 Bashir Safaroglu Street
• Advising and assisting with Banking and Finance AZ 1009, Baku
obtaining permissions and Azerbaijan
consents for acquisition of a • Bank lending and acquisition
share in a subsoil user finance Tel: +994 12 497 8948
• Advising on environmental • Banking regulation and capital Fax: +994 12 497 8947
regulations adequacy
• Advising on licensing and • Asset finance, real estate Email: info@mwp.az
permitting issues. finance, trade finance and other Website: www.mwp.az
types of finance
• Syndicated loans Contact name:
• Bank restructuring and insolvency
• Islamic finance Assel Kulisheva
awk@mwp.kz
KAZAKHSTAN
It is important to be pro-active in building relationships

with central and local government officials which
can only work to strengthen your business in
Kazakhstan. It is recommended that companies
recruit local staff who have previous experience of
working with other Western companies, or who
have been educated in the West.
PREPARING TO EXPORT
KAZAKHSTAN
Preparing to export Having a competent Kazakh partner can

help alleviate many of the day-to-day
problems that may be faced when first
entering the market. For example,
Start-up considerations
unannounced visits from local tax officials
The three main ways to enter the Kazakh
are common with Kazakhstan’s adversarial
market are by either setting up a joint
tax system, therefore it is essential to keep
venture (JV) with a local partner/company,
an accurate and detailed paper-trail.
exporting via an agent or distributor or
by establishing and setting up a new
Be aware of petty corruption within the
company.
police and customs, which if handled
incorrectly can have the potential to cause
The investment laws in Kazakhstan
companies major problems.
are applicable to both local and foreign
companies, and in the priority sectors,
Administrative bodies are politically
they provide some financial incentives
influenced and there are regional variants
for investment. Although the government
in the application of regulations.
officially promotes foreign investment in
Kazakhstan, there are mixed views (Source – UKTI)
within the country as to the benefits.
The government does not always make
market access easy for foreign companies, Establishing a company
which is evident in the overly-bureaucratic
administration of business. All legal entities, branches and representative
offices in Kazakhstan are subject to state
Companies should be cautious about registration. You can register online via the
making a commitment to invest, as it is Electronic Government – visit:
said that the real negotiations begin when www.egov.kz/wps/portal/Content?content-
the contract is signed. It is essential to Path=/egovcontent/for_businessmen/
seek financial and legal advice from a passport/pass042_mu&lang=en
company with local experience, and
employ a reputable local accountant. Business enterprises in Kazakhstan can
For legal advice please visit: www.mwp.kz be operated as either limited liability
partnerships which are separate legal
It is important to be pro-active in building entities and subject to taxation, joint stock
relationships with central and local companies (JSC) where shareholders
government officials which can only have no liability and about USD $500,000
work to strengthen your business in in capital is needed, a representative office
Kazakhstan. It is recommended that which can only conduct activities such as
companies recruit local staff who have marketing and advertising or a branch
previous experience of working with other which can carry out commercial activity,
Western companies, or who have been but is not a separate legal entity.
educated in the West.

Representative offices and branches must • Power of Attorney to the appointed
also be registered with the relevant regional director (with notarised translation)
department of the Ministry of Justice.
• documents of Kazakh partner, if
A newly registered representative office appropriate
or branch must comply with certain
formalities, including: A number of Kazakh private companies
have become agents/distributors or
• registration for value added tax (VAT) authorised dealers for foreign companies.
If one of these companies is an option,
• obtaining a seal (official stamp of the it is important not to rush into a long-term
entity) agreement however, without first having
developed a good working relationship
• opening a bank account with your potential representative, due to
the fact that many local companies have
(Source – UKTI) limited experience of undertaking the role
of an agent/distributor.
Market entry (Source – UKTI)
Like many administrative business

processes in Kazakhstan, procedures
for registration of an office are bureaucratic.
Companies need to be patient, and local
legal, accountancy and financial advice
is essential in guiding you through the
process.
The following documents will be required,

as a minimum, when registering a legal
entity:
• an application form to the Ministry

of Justice
• a copy of the board minutes

authorising the establishment of an
office (with translation)
• the founding documents of the

company (with notarised translation)
• registration certificate of the foreign

company (with translation)
Registration of foreign citizens Work permits and employment of

foreign workers
When entering Kazakhstan, a foreign
citizen gets migration card with entry You need a permit to work in Kazakhstan.
marks from Border Control Department. The permit must be obtained by the
Kazakh employer. The head of a
Upon arrival in Kazakhstan, the foreign company established by investment or
citizen should register with the Local by a representative office does not need
Migration Police Department within 5 days. a work permit, but all other ex-patriate
staff are required to have one.
Passports of citizens from 48 developed
and politically stable countries (see: There is a drive to increase local
www.invest.gov.kz for the list of countries) employment in Kazakhstan, and the
are registered automatically via one of the number of work permits available to
following: foreigners is based on a calculation of
the percentage of the working population
• Visas for business/tourist/private/ and culminated into an annual quota.
diplomatic/service registered in Applications for permits for individual
consular offices of Kazakhstan abroad, ex-patriates are assessed against the
availability of equally-qualified Kazakh
• OR immediately registered on the candidates, which unfortunately can
state border in Border Control often be biased, with level of experience
Departments. of candidates given little consideration.
In either of the two aforementioned cases, (Source – UKTI)

the foreign citizen does not need register
with Migration Police.
For more information on public employment
Passports of foreign citizens are registered law in Kazakhstan, please visit:
free of charge and executed for up to 3 www.adilet.zan.kz/eng/docs/Z010000149
months.
In case of delay and/or avoidance of
registration, an administrative responsibility
of a fine and/or exclusion from Kazakhstan
is enforced, with the possibility of
prohibition to enter Kazakhstan for
5 years after such exclusion.
KAZAKHSTAN
Kazakhstan is a republic, with the government

and many large state companies based in
the country’s capital city Astana, which has
a fast-growing population. The city of Almaty is
central to business in Kazakhstan, with a much
larger population than the capital.
HOW TO DO BUSINESS IN KAZAKHSTAN
KAZAKHSTAN
How to do business in Kazakhstan Labels should include:
• product name
Legal considerations
• manufacturer
UK companies should seek professional
legal advice when entering into
• country of origin
agreements in Kazakhstan.
• information on date of production
For legal advice please visit: www.mwp.kz
or visit the GOV.UK website for a list of
• period of validity
English-speaking law firms in Kazakhstan:
www.gov.uk/government/publications/
• storage conditions
kazakhstan-list-of-lawyers-translators
• usage
(Source – UKTI)
It is possible that for certain activities, your

partner may need to obtain licences and/or
Standards and technical regulations
certificates from state authorities.
As a member of both the International
(Source – UKTI)
Organization for Standardization (ISO)
(www.iso.org/iso/home/standards.htm) and
the International Laboratory Accreditation
Recruiting and retaining staff
Cooperation (ILAC), Kazakhstan is
gradually adopting international standards.
It is recommended that companies recruit
The Committee on Technical Regulation
local staff who have previous experience
and Metrology (Gosstandart)
of working with other Western companies,
(www.memst.kz/en/) is responsible for
or who have been educated in the West.
technical regulation in Kazakhstan, and
product certification is managed by the
Regardless of the high level of
government-owned National Center of
unemployment in Kazakhstan, recruitment
Expertise and Certification
can be a problem, especially when looking
(www.naceks.kz/en/), who have
for skilled and semi-skilled candidates
created a hologram displaying the
who speak fluent English. There is
word ‘Memstandard’, which has been
a poor standard of vocational education
introduced as a symbol of compliance.
in Kazakhstan, with skill training and
Product manufacturers or sellers who
development often designated to individual
obtain a certificate of conformity, can
employers. There are however, many
use a mark of conformity.
established reputable recruitment
agencies in Kazakhstan.
The majority of products imported into
Kazakhstan should be labelled in both (Source – UKTI)
Kazakh and Russian.

Intellectual property (IP) • Land tax from legal entities
The National Institute of Intellectual • Property tax from legal entities and
Property (Kazpatent) is responsible for individual entrepreneurs
intellectual property.
• Vehicle tax from legal entities
Although Kazakhstan is a signatory and
involved in the majority of prominent • Pension taxes, social deductions
international agreements and conventions
with a focus on intellectual property, (Source – KAZNEX INVEST)
enforcement of the law is weak.
VAT
It is strongly advised that you consult with
VAT is charged at 12% on most goods and
lawyers and market entry specialists in
services in Kazakhstan. It is also charged
order to formulate a strategy for protecting
on imported goods.
your IP, prior to entering the market.
For more information, please visit:
Please be aware that VAT is chargeable
www.kazpatent.kz/index.php/en
on company turnover generated in
Kazakhstan.
(Source – UKTI)
(Source – UKTI)
Tax considerations
Corporate income tax
A double taxation agreement between The Tax Code has a corporate income tax
the UK and Kazakhstan has been signed: rate for tax residents of 20% on worldwide
www.hmrc.gov.uk/manuals/dtmanual/dt110 income. An annual property tax of 1.5%
50+.htm. There is also an agreement of average annual balance sheet value
for the promotion and protection of of property owned is payable by legal
investments. corporate entities.
Basic taxes Corporate income tax and social tax at

Entrepreneurial activity of a foreign aggregate rate of 3% of income can be
investor is usually subject to the paid if the legal entity has:
following taxes and duties:
• an income not exceeding USD
• Corporate income tax (CIT) $166,000 over a calendar quarter
• Individual income tax (IIT) • average number of employees not

exceeding 50
• Mineral extraction tax (MET)
(Source – UKTI)
• Tax on excess profit
• Value added tax (VAT)
KAZAKHSTAN
Income tax • value-added tax at 12% of taxable

Kazakhstan has a flat 10% personal imports (the amount of taxable imports
income tax. There is also a 10% ‘social includes the customs good value and
insurance’ payroll tax levied on employers. the amounts of taxes and other
compulsory payments to the budget
(Source – UKTI) when importing the goods, exclusive
of VAT
Customs tariff • excise tax for some types of goods
Customs duties According to the common customs tariff of
The Customs Control Committee of the the CU, the rates of import customs duties
Ministry of Finance is responsible for vary between 0% and 80%. The common
customs in Kazakhstan. Please visit: customs code of the CU establishes
www.e.customs.kz/wps/portal/customs different customs regimes and some of
them provide full or partial exemption from
You can find more about import tariffs on customs duties.
the Market Access Database:
www.madb.europa.eu/madb/ The rate of duty-free goods for personal
indexPubli.htm use is conveyed across the customs
border of the Customs Union.
(Source – UKTI)
In accordance with the agreement on the
Customs Union (CU) movement by individuals of goods for
Kazakhstan, Russia, Armenia, Kyrgyzstan personal use across the customs border
and Belarus have a common customs of the Customs Union and customs
area. operations connected with their production
(St. Petersburg, June 18, 2010), regulations
When importing goods and vehicles to to bring goods for personal use, conveyed
Kazakhstan, the following is charged: by individuals across the customs border
are established with the exemption from
• customs duty customs duties, a customs value which
does not exceed an amount equivalent
• customs charges for customs of €1,500 euros (€10,000 euros for air
clearance at a rate of 65 Euros for transport), and the total weight not
the base sheet of Cargo Customs exceeding 50 kg.
Declaration and 25 Euros for each
extra sheet of the Cargo Customs For the referral of goods to goods for
Declaration personal use, the nature and quantity
of goods, as well as the frequency of
crossing of an individual, and/or the
movement of goods across the customs
border of the Customs Union, are taken
into account.

In the case of excess of cost or weight

standards on goods for personal use, a
payment of customs duties and taxes with
CR (customs receipt) is made at the rate
of 30%, but not less than €4 euros per kilo
in excess.
In the case of non-referral of goods to

goods for personal use, the regulations of
the agreement do not apply, i.e. generally
established rules of customs legislation are
applied.
Import/export of currency, securities, bills

and checks:
• Within the customs area of the CU –

it is performed without any restrictions
and customs declaration.
• The simultaneous import/export

to/from the customs territory of the
Customs Union of cash and/or
traveller’s checks for a total amount
exceeding the equivalent of USD
$10,000. These cash and/or traveller’s
checks are subject to a customs
declaration in writing, by filing the
passenger customs declaration for
the entire amount of imported cash
and/or traveller’s checks.
For more information, contact:
The State Revenue Committee of the

Ministry of Finance of the Republic of
Kazakhstan:
010000, Astana, 10 bld., Beibitshilik str.

Tel: +7 (7172) 701487 / 709932
Official website: www.kgd.gov.kz
KAZAKHSTAN
The official language is Kazakh, although Russian

is the most widely-spoken and the first business
language of Kazakhstan. It may therefore be
advisable to arrange for any important documents
to be translated into both Kazakh and Russian to
ensure that you are fully prepared.
t
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Business etiquette, language and Culture
culture
Kazakhstan is a melting pot of Soviet,
European and Asian customs. In meetings,
the traditional term of address of
Language
Mr/Mrs/Miss followed by a surname is
The official language is Kazakh, although
the usual way of addressing your host,
Russian is the most widely-spoken and the
unless you are advised to do otherwise.
first business language of Kazakhstan. It
The culture is nominally Muslim; therefore
may therefore be advisable to arrange for
there is an instilled traditional respect for
any important documents to be translated
the elderly or in general older people.
into both Kazakh and Russian to ensure
Despite this, there is no ban on pork
that you are fully prepared
products or alcohol, which is widely
consumed.
English is the second business language,
and although the understanding and use
Meals are an important factor in business,
of English is growing in Kazakhstan, it is
often opening the door to other, more
behind many other areas of the world in
formal meetings with potential partners.
terms of the frequency and ease of the
It is customary to be served several
use of English. When visiting prospective
dishes, and it is considered a great honour
business partners, it is important to confirm
if you are offered the sheep’s head. Meals
in advance whether they speak English,
often include large quantities of vodka
and therefore, whether or not you will
and/or brandy, so be prepared to join in
need an interpreter. It is advisable to have
with several toasts and perhaps even
double-sided business cards with
some dancing!
Russian on one side and English on
the other.
It is a good idea to build up relationships
and long-term partnerships that will
(Source – UKTI)
generate the necessary mutual trust
required to cement lasting business,
as Kazakhstan is a market for those
committed to staying there. Therefore,
expect lengthy negotiations, which
may seem to end abruptly and
unexpectedly with a placed order
or a proposed agreement.
(Source – UKTI)
International
International business
business
can be
can be difficult
difficult
For 49 years we’ve helped
British companies succeed
in global markets.
Let us help you.
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ail@britishexpertise.org
T
Telephone
elephone +
+44
44 ((0)
0) 2200 77824
824 11920
920
What are the challenges? The need to engage with foreign

companies means that Kazakhstan
presents an open market, but heavy
The Kazakh Government has passed bureaucracy and corruption applicable
legislation to encourage more local content at operational level mean that in practice,
in terms of projects, personnel, contracts, doing business can be somewhat
goods and services. Local content is challenging. Also, acquiring good market
determined by the ratio of costs of goods intelligence and gaining contacts is not as
that are verified as being Kazakh and by straightforward as it may be in many other
the number of Kazakh nationals employed. areas of the world. There can often be a
In sectors such as subsoil contracts local suspicion of initial business approaches
content has actually been defined. You and tracking down the right people who
should take this into consideration while are prepared to openly engage at an
planning operations and activities in early stage can be very difficult, and
Kazakhstan. experienced business partners can be
difficult to find.
There are a number of other challenges in
Kazakhstan including the over-reliance of Companies will also be notably confronted
the economy on the extractive sector, by over-regulation on top of frequently
heavy regulation when filing tax, obtaining changing regulations, a pressure to
credit or registering property; and the often play a corporately responsible role, the
incorrect implementation at local level, necessity of permits for foreign workers,
of new laws centred on business unannounced tax inspections and
environment improvements. bureaucratic and difficult legal framework.
Despite the benefits of the ease of (Source – UKTI)

starting a business in Kazakhstan,
corruption remains a problem, with the
country ranked 126th out of 175 in the
Corruption Perceptions Index (CPI).
For more information please visit the
website to view the full CPI report:
www.transparency.org/cpi2014/results
You should ensure that you take the

necessary steps to comply with the
requirements of the UK Bribery Act.
It may even be necessary to put
procedures in place in order to prevent
bribery. For full details about the UK
Bribery Act, please visit:
www.gov.uk/government/publications/
bribery-act-2010-guidance
KAZAKHSTAN
The UK is one of the top 5 largest

investors in Kazakhstan. In 2014,
bilateral trade between the UK and
Kazakhstan equated to USD $1.2
billion.The main UK exports are oil
and gas, education, financial and
business services, healthcare and
medical equipment, architecture and
design services, as well as mining.
RESOURCES
KAZAKHSTAN
The Institute of Export

Export House
Minerva Business Park
Lynch Wood
Peterborough
PE2 6FT, UK
Tel: +44 (0) 1733 404400

Website: www.export.org.uk
KAZNEX INVEST
Please contact KAZNEX INVEST on weekdays from 09:00 to 18:30 (Astana time) or visit the
website at: www.invest.gov.kz
Pre-investment work: Contact name:

Contact name: Mr. Rakhat MUKHTAROV Ms. Saltanat TURSYNOVA
Position: Managing Director Position: Manager
Tel: +7 (7172) 91 90 40 (ext. 1112) Tel: +7 (7172) 91 90 40 (ext. 1071)

Email: mukhtarov@kaznexinvest.kz Email: tursynova@kaznexinvest.kz
Investors support center (Investment For further contact details, please visit:
Ombudsman): www.invest.gov.kz/?option=
Contact name: Mr. Galym KALMENOV content&itemid=256
Position: Manager
(Source – www.invest.gov.kz)
Tel: +7 (7172) 91 90 40 (ext. 1094)
Email: kalmenov@kaznexinvest.kz

UKTI Kazakhstan
Contact the UKTI team in Kazakhstan for more information and advice on opportunities
for doing business in Kazakhstan:
UK Trade & Investment Kazakhstan Embassy of the Republic of

Building Business Centre Renko, 6 floor Kazakhstan to the United Kingdom
62 Kosmonavtov Street of Great Britain and Northern Ireland
Astana 125 Pall Mall
010000 London
Kazakhstan SW1Y 5EA
UK
Email: ukinkz@fco.gov.uk
Telephone: (00)+ 7 7172 556 200 Tel: +44(0)207 925 1757
Fax: +44(0)207 930 8990
Email: london@mfa.kz
Visit the website at:

www.kazembassy.org.uk/en
(Source – UKTI)
KAZAKHSTAN
Useful Links Intellectual Property:
Country Information: Intellectual Property Office:

www.ipo.gov.uk
BBC Website:
www.news.bbc.co.uk/1/hi/country_ Market Access:
profiles/default.stm
Market Access Database for Tariffs (for
FCO Country Profile: non-EU markets only):
www.fco.gov.uk/en/travel-and-living- www.madb.europa.eu/madb/indexPubli.htm
abroad/travel-advice-by-country/country-
profile/ Standard and Technical Regulations:
Culture and communications: British Standards Institution (BSI):

www.bsigroup.com/en/sectorsandservices/
CILT – National Centre for Languages - Disciplines/ImportExport
Regional Language Network in your area:
www.cilt.org.uk/workplace/employer_ National Physical Laboratory:
support/in_your_area.aspx www.npl.co.uk
Customs & Regulations: Intellectual Property:

www.ipo.gov.uk
HM Revenue & Customs:
www.hmrc.gov.uk Trade Statistics:
Economic Information: HM Revenue and Customs (HMRC):

www.uktradeinfo.com/statistics/
The Economist: buildyourowntables/pages/table.aspx
www.economist.com/countries
National Statistics Information:
Trading Economics: www.statistics.gov.uk/hub/index.html
www.tradingeconomics.com
UK Trade Info:
Export Control: www.gov.uk/government/organisations/
uk-trade-investment
Export Control Organisation:
www.gov.uk/beginners-guide-to-export- Travel Advice:
controls
FCO Travel: www.gov.uk/browse/abroad
Export Finance and Insurance:
Healthcare abroad:
UK Export Finance (formerly ECGD):
www.gov.uk/government/organisations/ Travel health: www.travelhealth.co.uk
uk-export-finance

International Trade: British Chambers of Commerce:

www.britishchambers.org.uk
Gov.uk: www.gov.uk/browse/business/
imports-exports IoD (Institute of Directors):
www.iod.com
OECD: www.oecd-ilibrary.org
CBI (Confederation of British Industry):
Overseas business risk: www.cbi.org.uk
www.gov.uk/government/collections/
overseas-business-risk Institute of Export (IOE):
www.export.org.uk
Transparency International:
www.transparency.org British Expertise:
World Bank Group economy rankings:
www.doingbusiness.org/rankings Department for Business, Innovation &
Skills (BIS):
World Economic Forum Global www.gov.uk/government/organisations/
Competitiveness report: department-for-business-innovation-skills
www.weforum.org/reports/global-
competitiveness-report-2014-2015 UKTI e-exporting programme:
www.gov.uk/e-exporting
UK Trade & Investment:
www.gov.uk/government/organisations/ Source – UKTI
uk-trade-investment
Additional Useful Links
UK Trade & Investment:

www.gov.uk/government/organisations/
uk-trade-investment
Foreign & Commonwealth Office:

www.gov.uk/government/organisations/
foreign-commonwealth-office
British Council:
www.britishcouncil.org
Trade Tariff:
www.gov.uk/trade-tariff
Trade Shows
A trade show is a method of promoting a

business through the exhibition of goods
and services, an organised exhibition of
products, based on a central theme,
where manufacturers meet to show
their products to potential buyers.
Taking part in overseas exhibitions is

an effective way for you to test markets,
attract customers, appoint agents or
distributors and make sales. UKTI's
Tradeshow Access Programme (TAP)
provides grant support for eligible SME
firms to attend trade shows overseas.
Participation is usually as part of a group,

a great advantage for inexperienced
businesses, and is usually led by one
of UKTI's Accredited Trade Association
(ATOs). ATOs work with UKTI to raise the
profile of UK groups and sectors at key
exhibitions.
For more information, see the links below:
10 Times (formerly BizTradeShows.com):

www.10times.com/kazakhstan
British Expertise Events:

EventsEye.com online database:

www.eventseye.com
UKTI online events search facility:

www.events.ukti.gov.uk
KAZAKHSTAN
Disclaimer
Whereas every effort has been made to In particular, none of the report's contents
ensure that the information given in this should be construed as advice or
guide is accurate, neither the Institute solicitation to purchase or sell securities,
of Export (IOE), Invest in Kazakhstan, commodities or any other form of financial
International Market Advisor (IMA), The instrument. No liability is accepted by
British Embassy in Astana or UK Trade the Institute of Export (IOE), Invest in
& Investment (UKTI), accept liability for Kazakhstan, International Market Advisor
any errors, omissions or misleading (IMA), The British Embassy in Astana or
statements and no warranty is given UK Trade & Investment (UKTI), for any
or responsibility accepted as to the loss or damage (whether consequential
standing of any individual, firm, company or otherwise) which may arise out of or in
or other organisation mentioned. connection with the report. No warranty is
given, or responsibility accepted as to the
The purpose of this Doing Business standing of any individual, firm, company
Guide, prepared by International Market or other organisation mentioned.
Advisor (IMA) and produced by the
Institute of Export (IOE), is to provide Contains public sector information
information to help recipients form their licensed under the Open Government
own judgments about making business Licence v3.0.
decisions as to whether to invest or
operate in a particular country. The
report's contents were believed (at the
time that the report was prepared) to
be reliable, but no representations or
warranties, express or implied, are made
or given by the Institute of Export (IOE),
Invest in Kazakhstan, International Market
Advisor (IMA), The British Embassy in
Astana or UK Trade & Investment (UKTI),
as to the accuracy of the report, its
completeness or its suitability for any
purpose.
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Kazakhstan Guide

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Kazakhstan Guide

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Doing Business in Kazakhstan

The country has a dramatically-variable continental climate. In the cold and

The UK is one of the top 5 largest investors in Kazakhstan. In 2014, bilateral

Our main aim is to help you

Dedicated to professionalism and recognising the challenging and often complex

Lesley Batchelor OBE, FIEx (Grad) -

Our practice areas • Corporate/M&A • Competition • Establishment, Reorganisation & Liquidation

In Kazakhstan: In Azerbaijan: Contact name:

Tel: +7 (727) 258 48 90 Tel: +994 12 497 8948

Through a range of unique services, including participation at selected tradeshows,

With headquarters in London, UKTI have professional advisers around the UK

Contact your local International Trade Team or Scottish Development International

You can find your nearest International Trade Team at:

General UKTI enquiry number: +44 (0) 207 215 5000

ABOUT THIS GUIDE

This guide is available in four formats:

Doing Business in Kazakhstan Guide Team;

Project Director: Craig Smith

Printed using materials

Visit the Website and

Website and Mobile App features include:

• Latest business news

visited international trade websites - all of

UK companies looking to trade with and

from these networks and from businesses

Kazakhstan is the 9th largest country

Why Kazakhstan? Astana. With EXPO 2017 and the creation

Visit the Website and download the free Mobile App

Strengths of the market British companies are well-represented in

Visit the Website and download the free Mobile App

Economic overview (Source – UKTI)

The national currency of Kazakhstan is

The massive oil fields at Tengiz and

According to the National Bank of the

(Source – KAZNEX INVEST)

Visit the Website and download the free Mobile App

(Source – KAZNEX INVEST)

Researching the market through the provision of quality assistance

In addition, the British Chamber of

Visit the Website and download the free Mobile App

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Kazakhstan gained independence from the

Getting here and advice about Travel advice

Tel: +44(0)207 925 1757

Visit the website at:

(Source - Embassy of the Republic

Visit the Website and download the free Mobile App

Kazakhstan airport infrastructure:

(Source – KAZNEX INVEST)

Flights to Kazakhstan Travelling from the airport

From Atyrau airport to the city centre it

With estimated oil reserves of 5.3 billion tonnes,

Sector specific opportunities Oil and gas

With estimated oil reserves of 5.3 billion

• design, engineering, consultancy

Contact UKTI adviser Olga Protassova at:

Visit the Website and download the free Mobile App

Petrochemical products have high export • integrated project management

• Production of primary plastics

(Source – KAZNEX INVEST)

Ferrous metallurgy Non-ferrous metallurgy

Ferrous metallurgy is part of a large historical Non-ferrous metallurgy is a key sector

Priority activities: • Production of aluminium

• Production of cast-iron, steel and • Production of lead, zinc and stannum

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