Embassy of the Republic of Kazakhstan Prague 01

Embassy of the Republic of Kazakhstan логотип Prague 01. 02. 2010

Kazakhstan Profile логотип Capital city - Astana Surface Area- 2. 7 mln. sq. km Population – 15. 7 mln GDP: 135 bln. USD 2

Kazakhstan Profile логотип Key Economy Information Industry Production: 84 bln. USD Trade turnover: 109 bln. USD (2008) Export (FOB): 71. 2 bln. USD Import (FOB): 37. 9 bln. USD Resources: natural gas, oil, coal, iron ore, manganese, chrome, ore, nickel, cobalt, copper, molybdenum, lead, zinc, bauxite, gold, uranium

Natural Resources логотип

International rating agencies comparison (Doing business & Global competitive Index) Economy Global competitiveness Index ranking Economy Ease of doing business Singapore 1 USA 1 Finland 14 Finland 6 Georgia 15 Korea 13 Korea 23 Austria 15 Austria 27 China 30 UAE 46 UAE 31 Mongolia 58 Czech Republic 33 Kazakhstan 63 Russia 51 Czech Republic 75 Kazakhstan 66 China 83 Ukraine 72 Russia 120 Georgia 90 Ukraine 145 Kyrgyzstan 122

Overview of FDI flow to Kazakhstan логотип Gross inflow of FDI to Kazakhstan 97, 6 bln. USD Main investors by gross inflow of FDI in 1993 – 1 half 2009

State guarantee of investment Law “On Investments” Subnational level National level § § § § Guarantees for the legal protection of investors’ activity on the territory of the Republic of Kazakhstan Guarantees for the use of income Transparency of the government institutions’ activity Guarantees while government bodies’ controls Guarantees in case of nationalization and requisition Contracts stability guarantees Disputes settlement order 42 agreements on mutual protection and encouragement of investment

Investment preferences New tax code Law On Investment логотип Custom duty exemption It can be granted to investor when he imports some equipments or their parts to implement the investment project State grants in kind It can be as a land part, building, construction, machines and equipments and so on. Maximum volume of state grants in kind should not exceed more than 30% of investments in fixed assets. Corporate income tax preferences Tax on property VAT Reduced from 30% to 20% and is going to be reduced by 15% in 2011. Sum of investments in fixed assets is deducted from taxation income Do not applicable for equipment Reduced from 13% to 12%

логотип Accelerated Industrial and Innovation Development of Kazakhstan 2010 -2014 9

Key Sectors of Accelerated Industrial and Innovation Development of Kazakhstan логотип 1. Agricultural Sector and Agriculture Processing; 2. Construction Industry and Production of Construction Materials; 3. Oil Processing; 4. Metallurgy; 5. Chemistry, Pharmaceutical and Defence Industries; 6. Energy; 7. Transport and Telecommunication Infrastructure. 10

Kazakhstan-bridge between Europe and Asia логотип Kazakhstan: 12% - Europe 78% - Asia

Project “Western China-Western Europe” логотип The Project profile Length – 8445 km. Cost – 5, 5 bln. USD

Financial support логотип IBRD – 2, 125 mln. USD EBRD – 180 mln. USD ADB – 700 mln. USD IDB – 414 mln. USD

логотип CUSTOMS UNION: 1 JANUARY 2010 14

«Belarus, Kazakhstan and Russia Customs Union» логотип Russia Kazakhstan Belarus 15

«Belarus, Kazakhstan and Russia Customs Union: advantages for the potential investors» логотип SIMILAR TRADE RULES 1. Single custom’s territory; 2. Single trade policy; 3. Harmonized custom’s legislation; 4. Simplified procedures for exporting goods to the territory of other member countries of the CU; INCENTIVES FOR THE INVESTORS Exemption from import customs duties on import of non-produced equipment and raw materials in the implementation of investment projects Market capacity – around 170 mln. people Total GDP of almost $ 2 trillion U. S 16

логотип Cooperation with investors 17

Data base Cooperation with investors Investors Data base Project Data base Registration of investment projects Investors registrations Investors capabilities Investors Institutional Strategic Portfolio Investment strategies MIT (connecting link) Committee for investments Programs Investors requirements Info on Projects логотип KAZNEX Financing required Strategy, goals, project participants Development Integral effect of project Project configuration Info on Investments Responsi ble business

Thank you for your attention! Embassy of the Republic of Kazakhstan Tel. : +420233375642 Fax: +420233371019 e-mail: kzembas@gmail. com