Legislative News

This CLIENT UPDATE includes amendments to the legislation of the RK and key appointments in March 2010.

The following 374 legislative acts were adopted in March 2010:

• Laws – 8

• Decrees of the President of the Republic of Kazakhstan – 18;

• Resolutions of the Government of the Republic of Kazakhstan – 105 (16 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 10 March 2010 № 190 «On Approval of Standards of State Services Rendering » (not effective)

Standard of state service on registration of subsoil use contracts excluding contracts for exploration, production, or joint exploration and production of widespread mineral resources establishes requirements to registration of subsoil use contracts excluding contracts for exploration, production, or joint exploration and production of widespread mineral resources concluded between Competent Body (Ministry of Energy and Mineral Resources of the Republic of Kazakhstan) and physical persons or legal entities. Standard of state service on registration of pledge agreement for subsoil use right excluding contracts for exploration, production, or joint exploration and production of widespread mineral resources establishes requirements to registration of pledge agreement for subsoil use right excluding contracts for exploration, production, or joint exploration and production of widespread mineral resources.

Order of the Minister of Finance of the Republic of Kazakhstan dated 16 February 2010 № 59 «On Approval of Rules of Submission of Data and Information about Operations Subject to Financial Monitoring by Entities of Financial Monitoring » (effective from 09.03.2010)

Rules were elaborated in accordance with item 2, Article 10 of Law of the Republic of Kazakhstan dated 28 August 2009 «On Anti-Money Laundering and Counter-Terrorism Financing”. They establish uniform procedure of submission of information about operations subject to financial monitoring to the Committee of Financial Monitoring of the Ministry of Finance of the Republic of Kazakhstan by entities of financial monitoring.

Order of the Minister of Finance of the Republic of Kazakhstan dated 16 February 2010 № 58 «On Approval of Rules of Suspension of Suspicious Transactions» (effective from 09.03.2010)

Entities of financial monitoring shall inform the Committee of Financial Monitoring of the Ministry of Finance of the Republic of Kazakhstan (hereinafter – Committee) about suspicious transaction before its closure with the aim of anti-laundering and counter-terrorism financing. Information about suspicious transactions, for which there are no reasons for rejections and which can not be suspended by entities of financial monitoring, shall be presented to the Committee not later than three hours after their closure or within twenty four hours after discovery of such operations.

Order of the Chairman of the Agency of the Republic of Kazakhstan on Informatization and Communication dated 1 February 2010 № 30 «On Amendments to Order of Acting Chairman of the Agency of the Republic of Kazakhstan on Informatization and Communication dated 5 April 2005 № 88-6 «On Approval of Rules of Distribution of Domain Space of Kazakhstani Segment of Internet » (effective from 23.03.2010)

In accordance with Rules it is established that registration of domain name shall be suspended by registry or registrar in the following cases: 1) submission of incomplete or unreliable information by registrant upon registration; 2) change of domain name owner; 3) upon application of registrant; 4) upon court decision in accordance with legislation of the Republic of Kazakhstan. According to amendments revocation of domain name registration shall be made in the following cases: 1) non-submission of additional data; 2) failure to eliminate the cause of domain name registration suspension.

Resolution of the Board of the Agency of the Republic of Kazakhstan on Regulation and Control over Financial Market and Financial Organizations dated 1 February 2010 № 9 «On Amendments to Some Regulatory Legal Acts of the Republic of Kazakhstan on Issues of Securities Market » (effective from 18.03.2010)

Resolution specifies establishment of additional form of report in the periodic reporting submitted to the authorized body by organizations having licenses on broker or dealer activity, managing of investment portfolio as well as by organizations carrying out activity on investment management of pension assets in order to provide monitoring of transactions with affiliated persons of professional participants of securities markets.

Resolution of the Government of the Republic of Kazakhstan dated 3 March 2010 № 166 «On Amendments to Resolutions of the Government of the Republic of Kazakhstan dated 28 January 2000 № 136 and dated 12 July 2000 № 1063» (effective from 29.03.2010)

Amendments are introduced to the Rules of Entry and Stay of Foreign Citizens in the Republic of Kazakhstan as well as Rules of Documenting and Registration of population of the Republic of Kazakhstan. In particular, in accordance with amendments to the Rules of Entry and Stay of Foreign Citizens in the Republic of Kazakhstan as well as their exit from the Republic of Kazakhstan persons seeking refuge as well as refugee emigrants shall be obliged to have certificate of the person seeking refuge or refugee emigrant obtained in accordance with the procedure established by legislation of the Republic of Kazakhstan on refugees and present them upon request of authorized state bodies.

Resolution of the Government of the Republic of Kazakhstan dated 9 March 2010 № 181 «On Establishment of Commission on Protection of Intellectual Property Rights » (effective from 09.03.2010)

The objective of activity of Commission on Protection of Intellectual property Rights is development of proposals on implementation of specific actions on regulation of adequate protection of intellectual property rights in the Republic of Kazakhstan.

Resolution of the Government of the Republic of Kazakhstan dated 1 March 2010 № 153 «On Approval of Technical Regulations «Safety Requirements to Petrol, Diesel Fuel and Mazut» and Amendments to Resolution of the Government of the Republic of Kazakhstan dated 29 December 2007 № 1372»

Technical Regulations establish requirements to safety of petrol (code of Foreign Economic Activity Commodity Nomenclature of the RK 2710 11 410 0-2710 11 490 0), diesel fuel (code of Foreign Economic Activity Commodity Nomenclature of the RK 2710 19 410 0-2710 19 490 0) and mazut (code of Foreign Economic Activity Commodity Nomenclature of the RK 2710 19 610 0-2710 19 690 0) that are subjects of technical regulations. The requirement for circulation of fuel in the market of the Republic of Kazakhstan is conformity with requirements established by Technical Regulations. Fuel, conformity of which to requirements of Technical Regulations is not confirmed, should not be marked by conformity mark and allowed for disposal in the market. Each fuel delivery in the market should have passport.

INTERNATIONAL LAW

Resolution of the Government of the Republic of Kazakhstan dated 10 March 2010 № 193 «On Approval of Agreement between the Government of the Republic of Kazakhstan and the Government of the Federative Republic of Germany on Exemption of Diplomatic Passport Holders from Visa Requirements »

Citizens of state of one Party having valid diplomatic passports issued by the Party of the Agreement non-accredited in the territory of the state of another Party shall be exempted from requirements to obtain visa for entry, transit, stay and exit from the territory of the state of another Party for a period of up to 90 (ninety) days (once or several times) within 6 (six) months starting from the day of entry (for citizens of the Republic of Kazakhstan from the day of first entry to Shengen Zone). In accordance with national legislation of the states of the Parties performance of paid activity, for which it is required to have work permit, is not allowed.

DRAFT REGULATORY LEGAL ACTS

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 Agreement on Turnover of Production Subject to Mandatory Assessment (Confirmation) of Conformity in the Customs Territory of the Customs Union »(16 March 2010)

Agreement extends to production subject to mandatory assessment (confirmation) of conformity imported to the uniform customs territory as well as to production carried from the territory of state of one Party to the territory of states of other Parties, and shall be applied to production before Technical Regulations of EurAsEC for this production become effective.

Uniform Registry of Certification Authorities and Testing Laboratories (Centers) of the Customs Union have been formed for implementation of Agreement. Procedure of inclusion of certification authorities and testing laboratories (centers) to the Uniform Registry as well as formation and maintenance of Uniform Registry shall be established by Commission of the Customs Union.

KEY APPOINTMENTS

The following appointments were made in March 2010:

• A.O.Isekeshev was appointed to the position of the Deputy Prime Minister of the Republic of Kazakhstan;

• S.M.Mynbayev was appointed to the position of the Minister of Oil and Gas of the of the Republic of Kazakhstan;

• Zh.S.Aitzhanova was appointed to the position of the Minister of Economic Development and Trade of the of the Republic of Kazakhstan;

• A.K.Zhumagaliyev was appointed to the position of the Minister of Communication and Information of the of the Republic of Kazakhstan;

• M.A.Kul-Mukhamed was appointed to the position of the Minister of Culture of the of the Republic of Kazakhstan;

• B.T.Sultanov was appointed to the position of the Assistant to the President of the Republic of Kazkahstan;

• Mr. S.A.Dyachenko was appointed to the position of Akim of Akmolinskaya Oblast.

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.