Draft amendments to procurement rules for petroleum companies
The Procurement Rules play an important role in the day-to-day activities of the petroleum companies operating in Kazakhstan, considering that requests to clarify procurement issues constitute 55% of all requests for clarification of subsoil use issues sent to the Minister of Energy’s blog in 2019. This article reviews how the Procurement Rules are applied and the proposed amendments that will change or facilitate the procurement process.
New subsoil investor opportunities through auctions
If an investor wants to engage in oil and gas exploration or production in Kazakhstan, the first step is to obtain a subsoil use right (SUR) through a contract (SUC). An investor may obtain a SUR either directly (acquiring it from a current subsoil user or from the state) or indirectly (by buying shares in a subsoil user or its direct or indirect parent company (“objects linked to SUR” - Objects). Another option is to work in cooperation with a national company that has the right to obtain a SUR from the state through direct negotiations. Otherwise the SUR can be obtained from the state only at auction (Auction). The last option is to obtain a SUR or Objects through a public sale by a pledgeholder or bankruptcy manager during an enforcement process.
Enactment of the new rules on issue of accompanying notes was postponed
The Order of the First deputy of the Prime-Minister of the Republic of Kazakhstan – the Minister of finance of the Republic of Kazakhstan dated 13 April 2020 No. 379 “On amendment of the order of the First deputy of the Prime-Minister of the Republic of Kazakhstan – the Minister of finance of the Republic of Kazakhstan dated 26 December 2019 No. 1424 “On approval of the List of goods subject to accompanying notes issue as well as the Rules on their issue and circulation” (hereinafter – the ‘Order’) was published on 15 March 2020.
On restructuring, rehabilitation and bankruptcy procedures in the light of the COVID-19 epidemic and the current economic situation
The declaration of a state of emergency in the light of the COVID-19 epidemic, the following quarantine, the related restrictions, the fall in oil prices and the subsequent devaluation of tenge, together will have a serious negative impact on the financial situation of whether debtors or creditors. This can lead both to the need to protect debtors from the claims of creditors, and to protect the interests of creditors in order to avoid abuse by the debtors. Therefore, we considered it appropriate to remind readers of the main insolvency resolution regimes that are available to creditors and debtors under the Law of the Republic of Kazakhstan On Rehabilitation and Bankruptcy.
World Customs Organization developed classification reference list for medical supplies COVID-19
On 9 April 2020, the World Customs Organization published an updated classification reference list to the medical supplies imported to fight against the spread of COVID-19. The classification reference list is aimed at accelerating the cross-border movement of goods by systematizing codes of commodity nomenclatures of foreign economic activity for this group of goods.
EAEU decisions which were adopted in connection with the
distribution of COVID-19
On 3 April 2020, the Council of the Eurasian Economic Commission adopted decisions related to the distribution of COVID-19.
Additional restrictions on export of food products which were adopted in connection with the distribution of COVID-19
On 31 March 2020, the Eurasian Economic College adopted an additional decision aimed at establishing a temporary export ban of food products from the countries of the Eurasian Economic Union
Cancellation of apostilisation requirement in respect of
tax residence certificates issued by Armenia and Kazakhstan
Please be informed that Kazakhstan and Armenia agreed on cancellation of apostilisation requirement in respect of documents confirming tax residence.
Additional measures to support taxpayers in a view of imposing the state of emergency in Kazakhstan
On 27 March 2020 under the adopted Resolution the Government of the Republic of Kazakhstan took additional measures to support taxpayers in view of the state of emergency in the country
Measures to support participants in foreign economic activity
in connection with the declaration of the state of emergency
in Kazakhstan
In connection with the declaration of the state of emergency in Kazakhstan, the Government has been taken the measures regarding customs regulation