Legislative News

19 legislative acts were adopted in February 2009 including:

• Constitutional Law of the Republic of Kazakhstan – 1;

• Laws of the Republic of Kazakhstan – 18.

The following documents were also approved during this period:

• Decrees of the President of the Republic of Kazakhstan – 9;

• Resolutions of the Government of the Republic of Kazakhstan – 117 (2 which have not been enacted);

• Other regulatory legal acts.

The majority of these regulatory legal acts affects staff policy of state apparatus and has been adopted in execution of other legislative acts. But among them there are some legal documents that can attract your attention and have certain impact on your business in Kazakhstan.

We would like to draw your attention to the following regulatory legal acts:

Law of the RoK ¹134-IV “On National Welfare Fund” dated 13 February 2009

This Law establishes legal status, operating procedure, goals and objectives, authorities of the National Welfare Fund as well as some peculiarities of legal status of legal entities, shares (equity shares) of which are held by Fund and other organizations that are parts of Fund group.

Key innovations are as follows:

  1. possibility for Fund to acquire strategic objects or organizations having significant strategic importance for RoK economics disposed by its owners and upon exercise of preemptive right of strategic objects acquisition by the Government;
  2. Fund has a right to acquire shares of commercial banks;
  3. Fund has preemptive right to acquire subsoil use rights (its shares) and (or) object related to it;

Procurements of Funds and is Affiliates.

Law of the RoK ¹135-IV ZR “On Introduction of Changes and Amendments to Some Legislative Acts of the Republic of Kazakstan on Issues of National Welfare Fund Activity” and Declaration that Law of the Republic of Kazakhstan “On Investment Fund of Kazakhstan” dated 13 February 2009 Should Be Deemed to Have Lost Force”

This Law specifies introduction of changes and amendments to 4 codes, 14 laws of the RoK as well declaration that Law of the RoK “On Investment Fund of Kazakhstan ” should be deemed to have lost force.

Changes and amendments to the Civil Code of the RoK (general part) establish preemptive right of National Welfare Find for acquisition of strategic objects upon decision of the Government of the RoK.

Changes and amendments have introduced to the Land Code of the RoK simplified procedure of land plots provision for implementation of investment strategic projects.

At the same time amendments have been introduced to a number of other legislative acts with the aim of unification with provisions of introduced Law of the RoK “On National Welfare Fund”

Law of the RoK ¹133-IV “On Introduction of Changes and Amendments to Some Legislative Acts of the Republic of Kazakhstan on Issues of Organization and Activity of Islamic Banks and Organizations of Islamic Financing” dated 12 February 2009

This Law introduces changes and amendments to ten legislative acts regulating activity of financial organizations including Civil Code (General and Special Parts), Tax Code, Laws of the RoK “On Banks and Banking Operations”, “On Securities Market”, “On Investment Funds”, “On Licensing”, etc.

Main provisions of the Law specify:

• Establishment of list and procedure of performance of Islamic banking operations;

• Legislative consolidation of forms and methods of state regulation and supervision over activity of Islamic banks;

• Establishment of legal basis and peculiarities of Islamic banks’ operations;

• Establishment of procedure of issue and circulation of Islamic securities;

• Establishment of taxation procedure of Islamic financial instruments;

Establishment of legal basis and peculiarities of activity of Islamic investment funds.

Law of the RoK ¹ 131-IV “On Introduction of Changes and Amendments to the Law of the Republic of Kazakhstan “On State Monitoring of Property on the

Industries of Strategic Importance” dated 12 February 2009″

This Law introduces changes allowing determine industrial objects having strategic importance. In particular, these objects should be related to industries having strategic importance and meet one of the following criteria:

• to be included into special list of strategic objects;

• to be owned by national holding and (or) national companies.

Resolution of the Government of the Republic of Kazakhstan ¹ 176 “On Announcement of Moratorium for Inspections of Small and Medium Business Enterprises” dated 17 February 2009

This Resolution introduces moratorium for a period until 1 July 2009 for conduction of inspection of small and medium business enterprise by state bodies, except for the following cases:

• tax inspection on the basis of application of taxpayer;

• counter tax inspection and scheduled inspections;

• inspections conducted in accordance with the legislation for suppression of criminal offences;

• inspections conducted for suppression of violation of human rights and freedoms, violation of subsoil use and veterinary legislation as well as on issues arisen from labor relations and on issues of land plots provision legality.

International Law

RoK ratified a number of international agreements in the sphere of customs. Thus, RoK has become participant of International Convention on Simplification and Harmonization of Customs Procedures signed in Kyoto on 18 May 1973.

RoK ratified the following agreements between the Republic of Kazakhstan, Republic of Belarus and Russian Federation.

• Agreement on Determination of Customs Cost of Goods Moved Across the Customs Border of the Customs Union;

• Agreement on Introduction of Customs Statistics of External and Mutual Trade of Customs Union Goods;

• Agreement on Uniform Rules of Determination of Country of Origin of Goods.

In additional we would like to pay attention to the status of major draft laws:

– Draft law on introduction of changes and amendments to the environmental legislation was considered by the Lower House of Parliament of the RoK. Minor changes have been made to the draft law regarding legal drafting methodology;

Draft Laws

In additional we would like to pay attention to the status of major draft laws:

• Draft law on introduction of changes and amendments to the environmental legislation was considered by the Lower House of Parliament of the RoK. Minor changes have been made to the draft law regarding legal drafting methodology;

• Draft Law “On Subsoil and Subsoil Use” is being discussed by the Lower House of Parliament of the RoK.

Draft Law is now considered by the Ecology and Subsoil Use Committee of the Lower House of the Parliament.

We hope that presented information will be useful for you.

Yours Faithfully,

SIGNUM Law Firm

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.