Legislative News

This CLIENT UPDATE includes amendments to legislation of the Republic of Kazakhstan taken place in July 2009.

270 legislative acts have been passed in July 2009 including:

• Laws of the Republic of Kazakhstan – 55 (of which 4 are not effective yet);

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

• Resolutions of the Government of the Republic of Kazakhstan – 124;

• Other regulatory legal acts – 76.

Most of these regulatory legal acts are concerned the public sector but among them there are some which may attract your attention and affect your business in Kazakhstan in a certain way.

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

Law of the Republic of Kazakhstan No.165-IV “On support of harnessing of renewable resources” dated 04.07.2009

The present Law defines the state support objectives, forms and trends of the renewable resources harnessing.

The present Law includes not only general rules for the development of state support to the renewable resources use on the whole, but also specific measures on the soft energy producers support.

Provision is made for the compulsory purchase of the total power generated from the renewable energy sources by regional power distributing companies, and contracts with such energy producers shall be concluded for the period no less than payback time of the renewable resources facility construction project.

A number of benefits is also provided for the soft energy producers:

  1. soft energy producer shall independently set an electric power price that shall not exceed the level established in a feasibility study for the renewable resources facility construction project;
  2. energy producing companies when supplying electric and (or) heat energy are excused from the service payment for power and heat transmit services provided by the energy transmitting companies;
  3. power generating companies have the right to conclude electric and (or) heat energy purchase and sale contracts with consumers.

Amendments to the Code of Administrative Violations

The administrative responsibility for violation of the RoK legislation in the area of harnessing of renewable resources support has been introduced.

The administrative responsibility extends to all objects of copyright law or associated rights but not limited to works of art/compositions and sound records as previously.

The administrative responsibility for violation of common water use the license termination.

The cellular operator responsibility is introduced for violation of accumulation and storage of consumer confidential information duties right down to the license termination.

Responsibility for non-ensuring the national and foreign currency repatriation has been enhanced. The penalty amount, previously calculated as a fixed multiple number of minimum calculation index, now is computed as a certain percent of unremitted sum.

Private Enterprise Issues

Amendments have been made to the RoK legislative acts related to private enterprises*.

Changes are referred to more particular regulation of issues, touching the administrative responsibility of governmental agencies for the improper conduct of auditing (in particular, specified the breaches, which may be considered as improper conduct of auditing).

The State regulatory bodies are given the right to develop and approve the forms of departmental statistical reporting, check lists, risk assessment criterions, annual auditing plans in conformity with the Republic of Kazakhstan Law “On private enterprise”.

Issues of the state control over private business activities have been clarified, including the regulation of private business entities audit by the governmental agencies. Specifically, audits by the state regulatory bodies shall be conducted in accordance with the RK Law “On the private enterprise”, except as otherwise provided by the legislative acts of the Republic of Kazakhstan.

Interaction of governmental agencies with accredited private business entities shall be improved through the expertise of regulatory legal act drafts in the accredited private enterprise entities.

Changes in Legislative Acts Relative the Intellectual Property Issues

Now the proprietary (exclusive) rights (shoprights) of employers are not limited only to the use, but also include possession and disposition of works invention.

Provision is made for introduction by the RoK Government of minimum remuniration rates for sound record performing musicians and producers in cases, when practical implementation of proprietary (exclusive) rights on a case-by-case basis is impossible due to a usage pattern of performances and sound records.

A voluntary accreditation of organizations, managing the proprietary rights on a collective basis, which grants them the right to collect fees for those rightholders, who are not a party of such agreements, is being entered.

Amendments related to Compliance with Water and Environment Protection Regulations in Urban Planning, Assignment of Lands, Designing and Construction

Issues of granting and use of agricultural designation lands and water resources land transfer to other categories are being clarified.

The right of a project developer to delegate conduction of the author supervision over construction performance to third parties is being introduced.

Amendments related to the Information and Communication Network Issues

To be implemented is a mechanism of ruling illegal foreign mass media products, distributed around the Kazakhstan, which contain information contravening with the Laws of the Republic of Kazakhstan.

Communication operators are obliged now to install in communications networks the required technical means, as well as to ensure the compliance of their equipment with the established requirements, collect and store within two years, as prescribed for by the Government of the Republic of Kazakhstan, the confidential information on communications users.

By a “mass media” instead of a WEB-site in the common user circuit (Internet and others), now is understood any Internet resource.

Currency Regulation and Control

The RK National Bank is granted the right to set limits on a difference between the currency – tenge purchase and selling prices, provided by the exchange offices, and control the execution of the requirements.

Banking Sector Issues

As of July 10 2009 the official refinancing rate of the National Bank of the Republic of Kazakhstan is set as 8 percent per annum.

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.