Kazakhstan Law News Digest for May 2022 | White & Case LLP

I. Legislative News

Competition 

• The Competition Authority has approved the Methodology for the Analysis of the Competitive Situation on Commodity Markets. Such methodology is necessary, among other things, to (1) determine the level of competition in specific commodity markets, (2) identify dominants/monopolists in the commodity market and (3) establish the appropriateness of the state presence in the business sphere. 

Natural Monopoly 

• The Ministry of National Economy of the Republic of Kazakhstan has introduced a number of amendments and additions to the Rules of Activities of Natural Monopoly Entities. In particular, the amendments concern the procedure of consideration of appeals against decisions and actions of the Committee for Regulation of Natural Monopolies when rendering various public services such as providing consent for reorganization or liquidation of a subject of natural monopolies, inclusion/exclusion from the register of subjects of natural monopolies. The appeal process is now more detailed and a mandatory pre-trial procedure is envisaged.

Subsoil Use 

• The Ministry of Energy of the Republic of Kazakhstan has established the maximum prices for wholesale marketable gas in the domestic market of Kazakhstan for the period from July 1, 2022 to June 30, 2023. Such prices are fixed separately for each region for sales (1) on the domestic market and (2) to consumers purchasing marketable gas for further production of liquefied natural gas. 
• The Ministry of Energy of the Republic of Kazakhstan has approved the Rules and procedure for engagement of independent experts during the state expertise of the basic project documents of the subsoil user on hydrocarbons. In particular, these rules define (1) the qualification requirements for the independent expert, (2) the stages and procedure for the selection. 
• The Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan has changed the Rules for purchase of goods, works and services (GWS) by subsoil users and their contractors for production of solid minerals. Now customers must enter into “offset agreements” with suppliers when purchasing imported products, if the annual amount allocated by the customer to purchase GWS exceeds 500,000 MCI. The peculiarity of such agreement is additional investment obligations of the supplier, namely investments of not less than 5% of value of the agreement in the economy of the Republic of Kazakhstan, among other things, through the establishment of production and investments in research and development works. 
• The Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan has introduced amendments to the Rules for purchase of GWS by subsoil users and their contractors for hydrocarbons/uranium production. The amendments relate to the arrangement of tender documentation, tender application and open tender. In particular, the open tender will now consist of 9 stages (previously 8 stages): a procedure for the comparison of tender documents was added for the purpose of determining the authenticity. The list of cases in which the procurement of GWS from one source is allowed has also been significantly expanded. This will come into effect on July 31, 2022. 
• The Ministry of Energy of the Republic of Kazakhstan has approved the term for the analysis of subsoil users’ reports when monitoring the fulfilment of their obligations under the subsoil use contract. This term will be 30 business days. Based on the results of the analysis, in case of fulfilment of financial obligations by less than 30% in the reporting year, by April 1 following the reporting period, the subsoil user will be notified of the violation and elimination of these violations. This will come into effect on August 2, 2022. 

Investment

• The Ministry of Foreign Affairs of the Republic of Kazakhstan has established the term of validity of the application for an investor visa for non-residents carrying out investment activities in the Republic of Kazakhstan. Now, depending on the type of investment activity of a non-resident application, a visa shall be issued for 5 years or 3 years. Such an application expressed in written request of Committee on Investments of the Ministry of Foreign Affairs to migration authorities is a legal ground for an investor to obtain an investor visa from migration authorities.

Public Procurement 

• The Government of the Republic of Kazakhstan has established an exemption from national treatment with regard to computing machines and their units for public procurement. Now state authorities may purchase such products only from domestic manufacturers. 

Public Services 

• The Ministry of Digital Development, Innovation and Aerospace Industry of the…