Legislative News

There 219 legal documents were approved in January 2009, including:

• Laws of the RoK – 4;

• Decrees of the President of the RoK– 4;

• Decrees of the Government of the RoK – 34.

The majority of them concern the economic sphere as well as international cooperation, but there are also some which may attract your attention and have an influence on your business activity in Kazakhstan.

We would like to draw your attention to the following legal documents:

Decree of the President of the RoK dated 27.01.2009 #733 On some issues regarding the kazakh percentage in procurement by organizations and state bodies of goods, works and services (hereafter referred to as “GWS” )

With regards to the increase of the kazakh percentage in procurement of GWS as well as the improvement of the activity of the state bodies of RoK in this sphere, on the basis of sub clause 3, clause 44 of the Constitution of the RoK, the following was enacted:

• To vest the Ministry of Industry and Commerce of RoK with the responsibility of implementing measures and realizing the state policy on the increase of the kazakh percentage in the procurement of GSW;

• To vest the Ministry of Energy and Mineral Resources of RoK with the responsibilities surrounding the accumulation and analysis of data on GWS for operations conducted in the sphere of subsurface use;

• To charge the Ministry of Finance of RoK with the enforcement of legal acts regarding the kazakh percentage in state procurements;

• To consider the competence of the Ministry of Energy and Mineral Resources of RoK in the monitoring and enforcement of contractual obligations regarding the kazakhs percentage in procurement of GWS, including responding to infringements;

• To provide for the transfer of the functions of the Ministry of Industry and Commerce of RoK on the formation of the register of GWS as well as approval of the criteria for input in this register; approval of the reports of subsurface users on procurement of GWS to the Ministry of Energy and Mineral Resources of RoK.

Resolution of the Government of the RoK dated 15.01.2009 #10 On the formation of Tau-Ken Samruk, National

Mining Company in the form of Joint Stock Company

With regards to the development of the mining sector of the RoK, the following was enacted by the Government of the RoK:

• The setting up of Tau-Ken Samruk, National Mining Company, with 100% participation of the RoK in its charter capital;

• To define the provisions for effective activity in the subsurface use sector with regards to exploitation, exploration, mining, reprocessing of the minerals as the main activity of Tau-Ken Samruk National Mining Company;

• To commit the Ministry of Energy and Mineral Resources of RoK to the allocation of KZT 63 650 000 from the reserve funds of the Government of ROK for the formation of the charter capital of Tau-Ken Samruk, National Mining Company.

The docket of cases on the project of the Customs Code of the project of the Customs Code of the RoK (January 2009)

• The project of the new Customs Code is based on the provisions of the

Kyoto Convention dated 18.05.1973 on the reduction and harmonization of the customs procedures in the wording of the protocol of 26.06.1999 which provides for the usage of preliminary information, its transfer in electronic forms in accordance with frame standards of security and relief of world trading (approved by the World Customs Organization in June 2005);

The project makes provisions for relief of the customs procedures by implementing the so-called “one window” during submitting the documents for export-import procedures

Please take into account that it is the project only.

The docket of cases on the project of the law on the insertion of amendments and additions in some legal acts concerning the issue of the reduction of the procedures for state registration of legal entities as well as branch and representative offices (January 2009)

The implementation of these measures will create the facility for the development of small enterprises across the RoK.

• The project has been formulated for the purpose of raising the position of the RoK in the «Doing Business» rating of the World Bank in terms of the «Companies’ setting up» indicator;

• According to World Bank data, the RoK is at 78-th place in the «Doing Business» rating based on the «Companies’ setting up» indicator;

• These measures will bring about a reduction in the registration of small enterprises within the justice bodies to 1 working day, for other, small enterprises, the term will be reduced from 10 to 5 working days.

• In addition, a decrease in the amount of charter capital for limited liability partnerships created in the form of small enterprises from 100 to10 Monthly Calculated Indexes will be recognized as one of the support measures.

Resolution of the Government of the RoK dated 13.01.2009 #6 On the approval of the action plan for the realization

of the joint action plan of the Government of the RoK, National Bank of the RoK and Agency of the RoK for the regulation and control of the financial market and financial organizations responsible for the stabilization of the economy and financial system for the years 2009-2010

The framework for the joint action plan will concern the stabilization of the financial sector, the support of small and medium-scale business, the support of the real estate market and the employment vulnerable and disadvantaged populations.

Resloution of the Government of the RoK dated 20.01.2009 #21 On Declaration of the Government of the RoK, National Bank of the RoK and Agency of the RoK on the regulation and control of the financial market and financial organizations relevant to the main directions of economical deal on 2009

This decree was passed with the intention of informing the public on the economic policy of the Government of the RoK.

Appointments

The following important official appointments were made in January 2009:

• Through the Decree of the President of the RoK dated 21.01.2009 #727, Mr. Marchenko Grigoriy Aleksandrovich was appointed as the Chairman of the National Bank of the RoK;

• All appointments for top-management of Samruk-Kazina, the Fund of National Wealth JSC were completed in January 2009:

• Kanatbek Safinov and Kairat Aitekenov were appointed as Managing Directors;

• Bolat Akchulakov – was appointed as the responsible for the management of electric-power and oil and gas actives;

• Aidan Karibzhanov – was appointed as the responsible for corporate management and strategic investments.

By passing the Decree of the President of the RoK dated 27.01.2009 #731 On appointment and release from the positions of the chairman and the judges of local and other courts of the RoK, relevant appointments were made in the courts of Almaty, Eastern-Kazakhstan, Atyrau Oblast and in the courts of the cities of Almaty and Astana.

We hope this information will be useful for you.

Yours Sincerely,

SIGNUM Law Firm

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.