Legislative News

This Client Update includes amendments to the legislation of the Republic of Kazakhstan and appointments in January 2010.

The following 278 legislative acts were adopted in January 2010:

• Laws – 5

• Decrees of the President of the Republic of Kazakhstan – 3;

• Resolutions of the Government of the Republic of Kazakhstan – 42 (8 of which have not been enacted);

• Other regulatory legal acts.

Most of these regulatory legal acts are concerning 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:

Resolution of the Government of the Republic of Kazakhstan dated 30 December 2009 № 2274 «On Establishment of Quota for Attraction of Foreign Labor to Perform Labor Activity in the Territory of the Republic of Kazakhstan for 2010 and Amendments to Resolution of the Government of the Republic of Kazakhstan dated 29 August 2007 № 753» (effective from 18.01.10)

In accordance with Resolution quota for attraction of foreign labor to perform labor activity in the territory of the Republic of Kazakhstan for 2010 has been established in the amount of 0,75 percent to work force in the republic.

Resolution of the Government of the Republic of Kazakhstan dated 25 December 2009 № 2190 «On Approval of Rules, Deadlines for Agreement and Approval of Technical and Economic Feasibility Studies and Construction Projects on Use of Renewable Energy» (effective from 18.01.10)

Rules establish procedure, deadlines for agreement and approval of technical and economic feasibility studies and construction projects for use of renewable energy. Rules shall not be applied to construction projects on use of renewable energy financed from republican or local budget.

Resolution of the Government of the Republic of Kazakhstan dated 29 December 2009 № 2225 «On Approval of List of Budgetary Investment Projects not Requiring Development of Feasibility Study » (effective from 12.01.10)

Technically simple projects, construction of which is expected to be carried out in accordance with typical construction projects, standard project solutions and projects of repeated application do not require development of feasibility study. List of project not requiring development of feasibility study shall be determined by the Government of the Republic of Kazakhstan.

Resolution of the Government of the Republic of Kazakhstan dated 25 December 2009 года № 2191 «On Amendments to Resolution of the Government of the Republic of Kazakhstan dated 13 May 2009 № 703»

List of goods (works, services) produced by the enterprise by types of activity answering the purposes of establishment of free economic zone Sea Port Aktau approved by Resolution of the Government of the Republic of Kazakhstan dated 13 May 2009 № 703 «On Approval of List of Goods (Works, Services) by the Enterprise by Types of Activity Answering the Purposes of Establishment of Free Economic Zones » (Collected Acts of the President and the Government of the Republic of Kazakhstan, 2009, № 24-25, Article 219) was redrafted in accordance with Appendix 1 to Resolution and also amended by Appendix in accordance with Appendix 2 to Resolution.

Law of the Republic of Kazakhstan dated 6 January 2010 № 238-IV «On Amendments to Some Legislative Acts of the Republic of Kazakhstan on Issues of Customs Procedures » (effective from 16.01.10)

Aim of the Law is to simplify, accelerate and combine all control procedures in the state border of the Republic of Kazakhstan. Law specifies conduction of transport, veterinary, phytosanitary, sanitary and epidemiological control in the automobile crossing points across State (Customs) Border of the Republic of Kazakhstan mainly by customs authorities of the Republic of Kazakhstan.

Resolution of the Government of the Republic of Kazakhstan dated 29 December 2009 № 2231 «On Approval of Technical Regulations «Safety Requirements to Oil and Gas Field, Drilling, Geology-Prospecting and Geophysical Equipment » (not effective)

In accordance with Law of the Republic of Kazakhstan dated 9 November 2004 «On Technical Regulation» technical regulations «Safety Requirements to Oil and Gas Field Equipment, Drilling, Geology-Prospecting and Geophysical Equipment» were approved. Technical Regulations are in force in the territory of the Republic of Kazakhstan and extended to wellhead, oil and gas field, drilling, geology-prospecting and geophysical equipment used in the territory of the Republic of Kazakhstan. Technical Regulations are applied to equipment, list of which is given in Appendix 1 of the Technical Regulations according to codes of Commodity Classification of Foreign Economic Activity the Republic of Kazakhstan.

Resolution of the Government of the Republic of Kazakhstan dated 29 January 2010 № 41 «On Approval of Rules on Use of Target Current Transfers from Republican Budget for 2010 by Oblast Budgets, Budgets of Astana and Almaty for Maintaining of New Objects of Social Security» (effective from 01.01.10)

Rules establish procedures for use of target current transfers allocated to oblast budgets, budgets of Astana and Almaty from republican budget under budget program 018 «Target Current Transfers to Oblast Budgets, Budgets of Astana and Almaty for Maintaining of New Objects of Social Security. Target current transfers are used for operational costs related to maintenance of new objects of social security except for capital costs.

Order of the General Prosecutor of the Republic of Kazakhstan dated 24 December 2009 № 71 «On Approval of Instruction on Introduction of Uniform State Registration, Record-keeping and Control of Inspections Conducted by State Bodies of the Republic of Kazakhstan » (effective from 10.01.10)

Uniform state registration, record-keeping and control of inspections is made for the following purposes: collection, recording, analysis and submission to state bodies, physical persons and legal entities of true and sufficient legal statistic information formed in result of inspections conducted by state bodies of the Republic of Kazakhstan; improvement of effectiveness and quality of advocacy in the country during planning and optimization of inspections of activity of private entrepreneurs, state institutions and state enterprises carrying out economic activity.

INTERNATIONAL LAW

Law of the Republic of Kazakhstan dated 31 December 2009 № 235-IV «On Ratification of Convention on Legal Status of Migrant Workers and Members of their Families – State Members of the Commonwealth of Independent States » (effective from 11.01.10)

Convention is applied to all migrant workers and members of their families in the territory of Host Country regardless of sex, race, language, religious confessions or beliefs, political or other opinions, national, ethnic or social origin, citizenship of Parties, age, economic, material or marital status or any other characteristic. Convention regulates relations formed during the whole migration cycle of migrant workers and members of their families.

Law of the Republic of Kazakhstan dated 31 December 2009 № 237-IV «On Ratification of Convention of United Nations Organization on Traffic » (effective from 12.01.10)

Law of the Republic of Kazakhstan dated 31 December 2009 № 237-IV ratifies Convention of the United Nations Organization on Traffic. Convention is designed for relief of international traffic and increase of safety in the roads by means of adoption of uniform traffic rules.

Resolution of the Government of the Republic of Kazakhstan dated 26 January 2010 № 23 « On Issues of the Committee of International Economic Cooperation of the Ministry of Foreign Affairs of the Republic of Kazakhstan »

In accordance with Article 24 of Constitutional Law of the Republic of Kazakhstan dated 18 December 1995 «On Government of the Republic of Kazakhstan» Committee of International Economic Cooperation was established within the Ministry of Foreign Affairs of the Republic of Kazakhstan.

DRAFT REGULATORY LEGAL ACT

Also we would like to provide additional information about forthcoming regulatory legal acts.

Brief on Draft Law of the Republic of Kazakhstan «On Ratification of Strategic Partnership between the Republic of Kazakhstan and the Kingdom of Spain»(14 January 2010)

Agreement improves contractual and legal basis between the Republic of Kazakhstan and the Kingdom of Spain, provides for entry to the new level of key aspects of Kazakhstani-Spanish cooperation. Strengthening of Kazakhstani-Spanish relations will assist in consolidation of international image and prestige of Kazakhstan as a leader of Central Asia integrated into international political and economic structures. Besides Agreement has strategic significance for further expansion of our interests to European direction.

Brief on Draft Law of the Republic of Kazakhstan «On Amendments to Some Legislative Acts of the Republic of Kazakhstan on Issues of Budget Legislation Improvement» (13 January 2010)

Main purpose of the draft law is further development of budget legislation with regard to introduction of system of result-oriented state planning and budgeting. Local executive bodies get a chance to manage budgetary funds in the form of target transfers for implementation of local investment projects.

KEY APPOINTMENTS

No key appointments were made in January 2010:

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.