Legislative News

This client update includes amendments to the legislation of the Republic of Kazakhstan in July 2013.

ENERGY SECTOR

1) Amendments on support of use of renewable energy sources.

N. Nazarbaev signed the Law of RK dated 4 July 2013 No.128-V “On changes and amendments in some regulatory legal acts of RK on support of use of renewable energy sources”. The Law introduces changes and additions to the Land code of RK dated 20 June 2003, the Law of RK dated 9 July 2004 “On power industry” and the Law of RK dated 4 July 2009 “On support of use of renewable energy sources” (is effective upon its first official publication).

The present Law is directed on:

• Development of use of the renewable sources of energy;

• Support of potential investors on implementation of projects in the field of use of renewable sources of energy;

• Increase of transparency and clarity, free implementation of projects in the field of use of renewable sources of energy.

2) Approved Rules on energy expertise.

The Decree of the Government of RK dated 10 July 2013 No.714 approved Rules on carrying out energy expertise.

Rules are made in accordance with subparagraph 12, Art. 4 of the Law of RK “On power industry” and defines procedure of energy expertise.

According to the Rules, energy expertise is an expertise carried out in the field of electro energy on acting objects, reconstructing projects, modernizing and re-constructing objects when finding technological violations and accidents in electro-equipment, in electro and thermal networking as well as in cases of production accidents in accordance of normative legal acts of RK.

Energy expertise is carried out by energy expert organizations in accordance with categories of “1”, “2”, and “3”.

3) Licensing of activities in the field of atomic energy use.

Qualified requirements and list of documents confirming compliance in the field of use of atomic energy were approved by the Decree of the Government of RK dated 10 July 2013 No. 716 “On some questions concerning Licensing of activities in the field of use of atomic energy”.

Licensing of activities in the field of atomic energy use is provided by the Committee of the Ministry of Industry and New Technologies of the Republic of Kazakhstan.

Ministry of Industry and New Technologies of the Republic of Kazakhstan.

An applicant when submitting documents shall follow the present Decree. Internal documentation of the Licensee shall comply with the Decree’s requirements.

4) Approved rules for organization of technical services and repair of equipment, buildings and constructions of power stations, thermal and electronic networks.

The current Rules are approved by the Decree of the Government of RK dated 10 July 2013 No.711 and implemented in accordance with subparagraph 33 Art. 4 of the Law of RK dated 9 July 2004 “On electronic energy” (is effective upon its first official publication).

Rules define procedure of providing the technical services and repair, equipment, buildings and constructions of power stations, thermal and electronic networks of energy-producing and energy-transmitting organizations.

Rules do not regulate the activity related to emergency repair of equipment, buildings and constructions of energy-producing and energy-transmitting organizations.

TRANSPORTATION SECTOR

1) State regulation of transport activity.

The Law of RK dated 4 July 2013 No. 132-V “On amendments and additions in some regulatory legal acts of RK on transportation” was signed.

Main purpose of this Law is development of transport-communication complex to satisfy demands of economy and population in transportation services, improvement of state regulation of transport activity, adoption of the national transportation legislation to the international law.

Subject of the regulation of the law is public relations in the sphere of transportation and communication.

Law amended the requirements for transportation of international auto transportation on the territory of Kazakhstan, introduced the penalties for violation of the legislation of RK.

2) National operator on automobile roads.

The Government based on its Decree dated 30 July 2013 No.744 “On National operator on automobile roads” defined JSC “KazAutoZhol” as National operator on regulation of automobile roads (the Decree enters into force upon its signature).

SUBSURFACE USE, OIL AND GAS, OIL PRODUCTS

1) Amendments to the rules for granting rights for subsurface use.

Amendments were introduced by the Decree of the Government of RK dated 12 July 2013 No.712 “On amendments and additions to the Decree of the Government of RK dated 30 December 2010 No.1456 “On approval of Rules for granting rights for subsurface use”.

According to the amendments, the applicant has to submit the following documents in order to receive right for subsurface use for exploration of common minerals in order to confirm the ability on fulfilling the obligation to pay the claimed signature bonus in full:

  1. If the payment is expected to be carried out at his own expense, the applicant shall submit a document confirming an appropriate amount on his bank account;
  2. In case if funding is expected to be carried out through borrowing, the applicant submits originals or notarized copies of loan documentation.

2) Rules on production monitoring and realization of oil products.

The Decree of the Government of RK dated 2 July 2013 No.669 “On amendments and additions to the Decree of the Government of RK dated 19 January 2012 No.137 “On approval of Rules on realization of production monitoring and realization of oil products” (the Decree is effective upon its first official publication).

According to the rules, authorized body in the field of oil products production forwards facts on exceeding the retail price of oil products to the authority body competent in the spheres of natural monopolies and on regulated markets, based on results of monitoring of retail prices of oil products.

3) Accreditation of gas networking organizations and delivery of liquefied petroleum gas to the internal market of RK (is effective upon its first official publication).

According to the amended Rules accreditation of gas networking organizations in addition to other documents a copy of the certificate or certificate about state registration/ re-registration of the legal entity is submitted to the authorized body.

According to the amended Rules on preparing plans for delivery of liquefied petroleum gas to the internal market of Kazakhstan, along with the applications, the applicant shall submit a copy of the certificate and certificate about state registration/ re-registration of the legal entity.

DIFFERENT

1) Legal aid guaranteed by the state.

Law of RK dated 3 July 2013 No. 122-V “On legal aid guaranteed by the state” was accepted that regulates the public relations arising in the sphere of providing the legal aid guaranteed by the state.

Legal aid guaranteed by the state is given in the form of:

1) Legal information

2) Legal consultation

3) Defense and representation of interests of the individuals in courts, criminal and other state bodies and non-state organizations.

All individuals and legal entities have a right for legal aid guaranteed by the state in the form of free legal information.

2) Public-private partnership.

Law of RK dated 4 July 2013 No. 131-V “On amendments and additions in some regulatory legal acts of RK on questions concerning introduction of new types of public-private partnership and development of its sphere of activity” (is effective upon its first official publication).

The Law is mainly directed to:

1) Introduce new forms of public-private partnership, such as institutional and contractual;

2) Increase the scope of public-private partnership via industries that do not generate sufficient cash flow and high-technology industries;

3) Introduce a new model of public-private contractual; partnership;

4) Implement the principles of public-private partnership in transfer of state property into trust management and maintenance, property lease.

3) Kazpotrebnadzor.

The Decree of RK dated 4 July 2013 No. 686 “On Agency of RK on supervision of consumer rights protection and sanitary-epidemiological welfare of the population (Kazpoterbnadzor)”

According to the document, the Ministry of Health shall be reorganized through the allocation of the Agency for supervision of consumer rights protection and sanitary- epidemiological welfare of the population (Kazpotrebnadzor).

The Agency will carry out development and implementation of public policies, as well as control in the sphere of protection of the rights of consumers of goods and services for personal, family, household and other non- business activities needs.

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.