SIGNUM regularly provides Legislative/Regulatory Alerts to keep Clients informed about important laws or regulatory changes in the Republic of Kazakhstan (“RK”). This Alert includes recent developments introduced in December 2018 related to:
1. Intellectual Property
The Government of the RK1 approved the ‘Agreement on Formation and Development of the Intellectual Property Market of CIS Member States’. The member states will aim at developing the CIS intellectual property market.
The National Bank of the RK2 introduced the notion of ‘international identification number (ISIN code)’ as from January 1, 2019. International identification number is an alphanumerical code assigned by the central depositary to securities and other financial instruments for identification purposes as well as to systematize the records.
3. Banks Insolvency
1) The National Bank of the RK3 approved types of non-arms’ length transactions, which may serve as a basis for determining certain banks as insolvent as listed below:
2) The National Bank of the RK4 approved the following restructuring procedure:
4. Tax Matters
The Ministry of Finance of the RK5 approved the list of large taxpayers (please refer to this link)
5. Subsoil Use
1) The Ministry of Energy of the RK6 approved the procedure for organizing tenders for liquefied petroleum gas through electronic trading platforms as outlined below:
2) The marginal price of liquefied petroleum gas7 under the Kazakhstan domestic market supply plan outside the electronic trading platforms for the period from January 1, 2019 to March 31, 2019 is KZT 38 701,67 per ton excluding VAT.
6. Corporate Matters
The Ministry of National Economy of the RK8 approved the Model Corporate Governance Code in state-controlled joint stock companies, except for the National Wealth Fund (‘Model Code’).
Pursuant to the Model Code, corporate governance is built upon justice, honesty, responsibility, transparency, professionalism and competence and the following principles:
7. Employment Matters9
Pursuant to the employment laws individuals, legal entities including government agencies, branch and representative offices of legal entities are subject to control and monitoring. Those monitored entities operating in the field of electricity, gas and steam supply, air-conditioning, as well as in the field of information and communication were referred to a high level risk for the monitoring purposes based on objective criteria.
The regulatory agency monitors such entities and frequency of such monitoring varies depending on different factors (for example, companies operating with over 250 employees preventive monitoring is carried out once a year and companies operating with less than 100 employees preventive monitoring is carried out every 5 years).
The Committee for Construction and Housing10 approved the following construction standards:
9. Base Rate of the NB RK11
The National Bank of Kazakhstan retained 9.25% base rate with constant +/- 1 percentage point interest rate.
Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please note that Kazakhstan is an emerging economy, and its legislation and legal system are in constant development. Should you have any questions or want to discuss matters addressed in this Client Update, please contact us.