Legislative News

The present CLIENT UPDATE includes legislative news and key appointments in May 2009.

The following legal acts were adopted in May, 2009:

• Laws of RoK– 6 (2 of – Decrees of the President of RK – 4;

• Orders of the Government of RK – 68 (6 of them are not adopted);

• Other normative legal acts.

There are some normative legal acts which may attract your attention and have an influence on your business activity in Kazakhstan.

Law of RK No.160-IV «On Ratification of the Agreement between the Government of the Republic of Kazakhstan, the Government of the Russian Federation and the Government of Turkmenistan about Cooperation in Construction of the Caspian Gas Pipeline» dated 14.05.2009

Parliament ratified the agreement between the Government of the Republic of Kazakhstan, the Government of the Russian Federation and the Government of Turkmenistan on cooperation in construction of the Caspian gas pipeline (Moscow, December 20, 2007). Agreement states the implementation of project of the Caspian gas pipeline from compressor station “Belek” (Turkmenistan) to gas measuring stations “Aleksandrov Guy” (Russia) for transportation of Turkmen and Kazakhstani natural gas on territories of Turkmenistan, Kazakhstan and Russia.

Decree No. 638 of the Government of the RK “On Approval of the List of the Exchange Goods” dated 06.05.2009

The Decree approves the list of the exchange goods (crude oil, gas, metals, wheat etc.), transaction on which are subject to obligatory monitoring under the transfer pricing legislation.

Decree of the Government of RK No. 644, «On Acquisition of the of Kazkommerzbank by Samruk-Kazyna, Fund of National Well-being» dated 06.05.2009

Samruk-Kazyna has acquired shares of Kazkommerzbank under the conditions set up by the Agreement on realization of the program of the stabilization initiated by the Government of the Republic of Kazakhstan.

Decree of Board of the National Bank of the RoK ¹41 «On Approval of an Official Refinancing Interest Rate of the National Bank of the Republic of Kazakhstan» dated 12.05.2009

Since 12th of May 2009, the official refinancing interest rate of the National Bank of the Republic of Kazakhstan has been approved at 9,0% annual interest rate.

Order of the Chairman of Tax Committee of the Ministry of Finance of the Republic of Kazakhstan No. 161 «On Extension of Deadline on Submission of the Reports for Monitoring» 08.05.2009

Large tax payers subject to monitoring shall submit their reports for 1 quarter 2 009 by 15.07.2009

DRAFT LAWS

Draft law of the RK «On Amendments to Some Legal Acts of the Republic of Kazakhstan on Simplifying the Procedures of State Registration of Legal Entities and Branch/Representative Offices» (on 07.05.2009)

The Draft provides amendments to the Law «On state registration of legal entities and Branch/Representative Offices» on the following:

• term of registration in justice departments shall be reduced to 1 and 7 working days;

• re-registration term in justice departments shall be reduced to 3 and 10 working days.

Draft law of the RK «On the Industry of the Republic Kazakhstan» (May, 2009)

The draft will regulate relations between state authorities and business society with the purposes of industry development. The draft establishes measures of the state support of participants of industrial activity in the form of financial, property, information and consulting support.

Draft law of the RK «On Amendments to Some Legal Acts of the Republic of Kazakhstan on Local Content» (May, 2009)

The draft introduces the following main changes:

• definitions, competence and powers of the state authorities, terms of the sub-surface contracts on local content in the Law «On subsurface and subsurface use»;

• responsibility under the Administrative Code for violation of the legislation on local content.

APPOINTMENTS:

1) Mr. Bishimbaev K.V. was appointed to the position of assistant to the President of RÊ under the Decree of the President of RK No. 813 dated 22.05.2009;

2) Mr. Isekeshev A.O. was appointed to the position of the Minister of the Industry and Trade of RK under the Decree of the President of RK No. 809 dated 21.05.2009;

3) Mr. Shkolnik A. was appointed to the position of the Chairman of NAC “KazAtomProm”.

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.