Legislative News
This Client Update covers amendments to the laws of the Republic of Kazakhstan (“RK”) and various legal developments introduced in July 2015.
Novelties in Legislation
The laws covered by the present Client Update relate to both public and private sectors. Some of them may be of interest to you as they may affect your business activity in Kazakhstan.
We would like to draw your attention to the following legal acts.
PETROLEUM PRODUCTS TEMPORARY EMBARGO
The Decree of the Minister of Energy dated 26 June 2015 № 437 “On introduction of temporary embargo on petroleum products” introduces a temporary six months embargo on export of the following products from the territory of the Eurasian Economic Union:
•\tlight distillate and products;
•\tmedium distillates;
•\tkerosene;
•\tgas oil;
•\tdiesel oil;
•\tother oil products (code ТН ВЭД ЕАС 2710 20 900 0).
The Decree came into force on 30 July 2015.
BILATERAL INVESTMENT TREATY WITH JAPAN
On 23 July 2015, the President of the RK signed the Law “On ratification of the Bilateral Investment Treaty between Japan and the Republic of Kazakhstan”.
Under the treaty, foreign investors of a contracting state will enjoy a national treatment regime when making investments in the other country, i.e. treatment no less favorable than that other country accords to its own domestic investors,
DRAFT LAWS
PENSION REFORMS
On 9 July 2015, the Parliament of the RK approved the Draft Law “On changes and amendments into certain legal acts of the Republic of Kazakhstan on pension provision”.
The Draft Law offers the following key developments:
State Base Pension Calculating Changes
The Draft Law proposes changes to the procedure for pension assignment depending on the qualifying period in the pension system. These changes will come into force as from 1 July 2017.
The base state pension will be assigned upon retirement age depending on the qualifying period in the pension system.
Employer’s mandatory pension payment
The Draft Law imposes additional obligation on employer with respect to additional 5 % pension payment from employment income. This change will come into force on 1 January 2018.
ACCESSION OF THE KYRGYZ REPUBLIC TO THE EURASIAN ECONOMIC UNION
On 9 July 2015, the Parliament of the RK adopted the Draft Law “On ratification of the Agreement on Accession of the Kyrgyz Republic to the Eurasian Economic Union (“EEU”) dated 29 May 2014”.
The Draft Law terminates any customs clearance within the EEU as from the moment of ratification of the Agreement by all EEU member states.
Also the Draft Law removes quarantine, veterinary and phytosanitary controls on the Kazakhstan-Kyrgyzstan state border from the date of entry into force of the EEU Council Decision on Kyrgyz Republic system controls assessment.
Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek a lawyer for a specific advice. Please note that Kazakhstan is an emerging economy and its legislation and legal system are in constant development. Should you have any questions or would like to discuss matters addressed in this Client Update, please contact us.
