Legislative News

This client update includes amendments to the legislation of the Republic of Kazakhstan in April 2013.

The following regulatory legal acts were adopted in April 2013:

• Laws of the Republic of Kazakhstan – 7;

• Decrees of the President of the Republic of Kazakhstan – 15;

• Resolution of the Government of the Republic of Kazakhstan – 87;

• Other regulatory legal acts.

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

SUPREME COURT RULINGS

1) Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan No. 2 “On introduction of changes and amendments to some regulatory resolutions of the Supreme Court of the Republic of Kazakhstan” (is effective upon its official publication).

In particular, changes were introduced in the following acts of Supreme Court of RoK: “On the procedure of criminal proceedings in the supervisory instance” dated 28 April 2000, No.2; “On the return of criminal cases for further investigation” dated 13 December 2001, No.19; “On practice of issuing private resolutions by courts in criminal cases” dated 19 December, 2003, No.11; “On consideration of a civil claim in the criminal process” dated 20 June 2005 No.1, “On the judicial practice in cases of private prosecution” dated 25 December 2006, No.13 .

Thus, according to the change in the regulatory resolution of the Supreme Court of the Republic of Kazakhstan “On procedure of criminal proceedings in the supervisory instance” dated 28 April 2000, No.2, the courts explain that, in accordance with the provisions of Chapter 50 of the Criminal Procedure Code (CPC), enforced verdicts and decisions of Courts of First and Appeal instances shall be subject to appeal (protest) and reconsideration only after review and the resolution of Court of Cassation instance.

Sentence, resolution of a Court of First instance, if they were not appealed, protested on appeal basis, then it will come into force after the expiry of the statutory period for filing an appeal, protest, other than appeal of the verdict and the resolution indicated in paragraph 3 of Article 423 of the CPC, which come into force from the date of its announcement.

During consideration of case of the appeal instance, sentence and resolution enter into force on the day of issuance of appeal resolution. If a claim or protest were revoked prior to the hearing of the Court of Appeal instance, sentence and resolution shall enter into force on the day of decision of Court of Appeal Instance on termination of the process in relation to the revocation of the claim or protest.

ENVIRONMENT

1) Resolution of the Government of the Republic of Kazakhstan No.351 dated 15 April 2013 “On Amendments to the Resolution of the Government of the Republic of Kazakhstan” dated 7 March 2012, No.303 “On the introduction of restrictions and prohibitions on the use of fish resources and other aquatic animals, their parts and derivatives, establishing availability and terms of use” (is effective in 10 calendar days upon its first official publication).

According to the changes, restrictions and prohibitions on regions and dates of use of the fishery pools are introduced.

GOVERNMENT SERVICE

1) Order of the Chairman of the Agency of the Republic of Kazakhstan for Civil Service Affairs dated 19 March 2013, No.06-7/33 «On some issues of testing organization for public servants and candidates for state administrative positions” (is effective in 10 calendar days upon its first official publication).

In accordance with the Law of the Republic of Kazakhstan dated 23 July 1999 “On State Service” testing organization rules of public servants and candidates for state administrative positions were approved.

The rules define the order of testing of state administrative officials of the body “B”, who are subject to certification and candidates for public office administrative buildings “A” and “B” in order to objectively assess the knowledge and abilities of employees and applicants.

LABOUR LEGISLATION

1) Resolution of the Government of the Republic of Kazakhstan dated 29 March 2013 No.298 “On establishment of quotas for attraction of foreign labor force under the priority project on “Reconstruction and modernization of the Atyrau Refinery” for 2013 and the approval of work permit issuance conditions for attraction of foreign labor force for the implementation of priority project “Reconstruction and modernization of the Atyrau Refinery” (is effective in 10 calendar days upon its first official publication).

The government established quotas for attraction of foreign labor force on the project of reconstruction and modernization of the Atyrau refinery for 2013 (Resolution of Government of the Republic of Kazakhstan dated 29 March 2013, No.298 “On the establishment of quotas for attraction of foreign labor force under the priority project on “Reconstruction and modernization of the Atyrau Refinery” for 2013 and the approval of work permit issuance conditions for foreign labor force for the implementation of the priority project “Reconstruction and modernization of the Atyrau Refinery”).

In accordance with the Article 8 of the Law of the Republic of Kazakhstan dated 22 July 2011 “On Migration” The Government of the Republic of Kazakhstan agreed to establish a quota for attraction of foreign labour force under the priority project on “Reconstruction and modernization of the Atyrau Refinery” for 2013.

Also work permit issuance conditions for attraction of foreign labour force for the implementation of the priority project “Reconstruction and modernization of the Atyrau Refinery” were approved (applicant – Kazakhstan Branch «SINOPEC Engineering»).

Other conditions of attracting foreign labour force, not regulated by the conditions, are governed by the Rules and conditions of work permits issuance for foreign labour force on employment and for employers to attract foreign labour force, approved by the Government of the Republic of Kazakhstan on 13 January 2012, No.45.

STATE AND LOCAL GOVERNMENT BODIES

1) Order of the Chairman of the Agency of the Republic of Kazakhstan for Civil Service Affairs dated 19 March 2013, No.06-7/33 «On some issues of testing organization for public servants and candidates for state administrative positions” (is effective in 10 calendar days upon its first official publication).

In accordance with the Law of the Republic of Kazakhstan dated 23 July 1999 “On State Service” testing organization rules of public servants and candidates for state administrative positions were approved.

The rules define the order of testing of state administrative officials of the body “B”, who are subject to certification and candidates for public office administrative buildings “A” and “B” in order to objectively assess the knowledge and abilities of employees and applicants.

LABOUR LEGISLATION

1) Resolution of the Government of the Republic of Kazakhstan dated 24 December 2012, No.1660 “On approval of the list of local authorities, public bodies and their territorial units that are required to connect their corporate network to a single transport medium of state bodies” (is effective in 10 calendar days upon its first official publication).

Resolution of the Government of the Republic of Kazakhstan dated 24 December 2012, No.1660 “On approval of the list of local authorities, public bodies and their territorial units that are required to connect their corporate network to a single transport medium of state bodies” has approved a list of government agencies that are required to connect their corporate network a single transport medium of state bodies.

In accordance with paragraph 5 of Article 32 of the Law of the Republic of Kazakhstan dated 11 January 2007 “On Informatization” the Government of the Republic of Kazakhstan decided to approve the attached list of local self-government bodies, state agencies and their territorial units that are required to connect their corporate network to a single transport medium of state bodies.

The Ministry of Transport and Communications of the Republic of Kazakhstan jointly with “National Company «Kazsatnet» must provide the connection of local self-government bodies, state agencies and their territorial units to a single transport medium of state bodies. The list of local self-government bodies, state agencies and their territorial units that are required to connect their corporate network to a single transport medium of state bodies, comprises a total of 3501 government agency.

SUBSURFACE USE

1) The Law of the Republic of Kazakhstan dated 3 April 2013, No.85-V ADMS “On Ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on trade and economic cooperation in the field of oil and oil products supply to the Republic of Kazakhstan” (is effective in 10 calendar days upon its first official publication).

Kazakhstan has ratified an agreement with the Russian Federation on trade and economic cooperation in the field of oil supply to the Republic of Kazakhstan. The head of state signed the Law of the Republic of Kazakhstan dated 3 April 2013, No.85-V ADMS “On Ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on trade and economic cooperation in the field of oil and oil products supply to the Republic of Kazakhstan.”

Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on trade and economic cooperation in the field of oil and oil products supply to the Republic of Kazakhstan is committed in Moscow 9 December 2010.

The agreement defines the framework of trade and economic cooperation between the Republic of Kazakhstan and the Russian Federation in the area of formation of common markets for crude oil and petroleum products, the conditions of supply of petroleum products to the Republic of Kazakhstan to meet the domestic needs of the Republic of Kazakhstan in the volume and to the extent approved by the Parties in accordance with the indicative balance sheets of oil and oil products.

The adoption of the Agreement will promote the effective use of the potential of fuel and energy complex of the Parties and will allow to ensure the priority needs of both Parties in the oil and oil products.

Moreover, Article 6 of the Agreement provides that each year the competent authorities of the Parties will determine the Protocol to the Agreement where the range of petroleum products is defined, the export of which outside the customs territory of the Customs Union from the Republic of Kazakhstan paid (recovered) amount of export customs duties are paid in fines by the authorized body of the Republic of Kazakhstan to the budget of the Russian Federation in U.S. dollars.

In turn, in accordance with paragraph 1 of Article 84 of the Customs Code of the Customs Union, customs duties and taxes are paid (recovered) in the Member State of the Customs Union by customs authorities who made the release of goods, except for goods produced in the customs procedure of customs transit.

In the “Kazakhstan Today” newspaper dated 24 April 2013, No.143-144 (27417-27418) the Resolution of the Government of the Republic of Kazakhstan dated 14 February 2013, No.134 “On approval of the Rules on acquisition of goods, works and services during subsurface use operations” is published.

Rules are developed in accordance with the Law of the Republic of Kazakhstan on 24 June 2010 “On Subsurface and Subsurface Use” (hereinafter – the Law) and determine the procedure for the acquisition of goods, works and services (hereinafter – GWS) by subsurface use companies and their authorized representatives in conducting subsurface use operations provided in the annual and (or) medium and (or) long-term purchase programs of GWS as well determining the contractors activities in fulfillment of contracts signed with subsurface use companies or by the authorized persons of subsurface users.

The rules do not apply to:

1) the subsurface users, who conduct exploration or production operations of minerals;

2) subsurface users, who acquires GWS in accordance with the legislation of the Republic of Kazakhstan on state procurement;

3) legal entities having the subsurface use right, where fifty percent or more than fifty percent of the voting shares (participation interests) is directly or indirectly owned by a national holding company.

Carrying out procurement procedures and all documentation for the procurement is implemented in the state and Russian languages with the application of translation into other languages in the cases stipulated in tender documentation.

The currency used to facilitate the evaluation and comparison of prices offered by potential suppliers involved in the procurement and expressed in different currencies, is the currency of the Republic of Kazakhstan – tenge at official rate of the National Bank of the Republic of Kazakhstan on the date of the evaluation and comparison of prices.

Purchase of GWS during subsurface operations is carried out with the use of the system by the customer in the following ways:

1) open competition;

2) from a single source;

3) request for quotations;

4) through the e-procurement system.

Procurement of goods through commodity exchanges is carried out in accordance with the legislation of the Republic of Kazakhstan on commodity exchanges.

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.