Privatisation Plan in Kazakhstan

In the message dated 30 November 2015, President Nursultan Nazarbayev stated the need to review a number of terms of the Law ”On state property”. The President also commissioned the Government to draw up a new program of privatisation that includes all the publicly owned organisations Among these organizations are the associated with management holdings of ”Samruk-Kazyna”, ”Baiterek” and ”KazAgro”. Out of 60 organisations, put up for tender by the given holdings, 38 companies are put up by Sovereign Wealth Fund Samruk-Kazyna» JSC, 4 by Baiterek National Management Holding JSC, and 4 companies and 14 pieces of republican property by KazAgro National Management Holding JSC. These companies constitute the Top-60 priority list. Sale of major assets is expected to be carried out by the direct placement of stocks in the stock market. Other companies and objects will be sold at auction.

The given arrangements for the transfer of state property into the private sector mark the second wave of privatisation in Kazakhstan, which is planned for the years 2014-2020. The prospective privatisation was first announced in the President’s message to the people of Kazakhstan dated 17 January 2014, which primarily involved the following: the government, in collaboration with the Fund Samruk-Kazyna, was commissioned to analyse publicly owned companies and make a list of objects that are subject to privatisation. As a result of the given commitment, Decree No. 280 of the RK Government, dated 31 March 2014, approved the complex privatisation plan for years 2014-2016.

As of 23 October 2015, of the 418 objects subject to privatisation in the period from June 2014 to October 2015, 389 objects have been put up for sale and 213 objects have sold. Among them were 11 pieces of republican property, 96 communal properties, 59 socio-entrepreneurial corporations and 47 national companies and holdings.

According to Decree No. 280 of the RK Government, dated 31 March 2014, and titled ‘On certain issues of privatisation’, the progress report on the implementation of the complex privatisation plan is submitted to the Ministry of Economics and Budget Planning of the Republic of Kazakhstan twice annually, by 25 June and 25 December.

According to the aforementioned decree, the Government has proposed to reducing the number of objects of a quasi-public nature by the following percentages by 2017:

– organisations of republican property by 28%;

– communal properties by 10%;

– branch organisations of socio-entrepreneurial corporations by 60%;

– and branch organisations of national management holdings, national holdings and national companies by 36%.

Please, follow the link for a detailed list of objects subject to privatisation.