WEEKLY REVIEW: Kazakhstan ready for changes in subsurface management

Introducing amendments to the law on subsurface management at the Mazhilis this week, Kazakh Minister for Investments and Development Asset Issekeshev noted that currently Kazakhstan lags behind in terms of geological exploration. Kazakhstan spends only $3 on exploration activity per square kilometer, compared to $160 - in Australia, $90 - in the U.S. and $200(!) - in Canada. Minister Issekeshev stressed it is high time to change the situation, especially given the global finance crisis and high competition. For instance, more than 15,000 international companies with hundreds of thousands of employees are involved in geological exploration in Western Australia. Whereas Kazakhstan concluded only 400 contracts and attracted 200 companies to work in that sphere since attaining independence 20 years ago. The bill presented by the minister envisages introduction of a simplified procedure of granting the rights of subsurface use to investors in Kazakhstan. Issekeshev believes these steps will help open at least 15 new deposits in Kazakhstan in the years to come. This week the Government of Kazakhstan approved the list of organizations that will design and construct the EXPO-2017 pavilion in Astana. It comprises 7 well-known Kazakhstani and foreign companies. This week the Ministry of Finance announced that the palaces of culture and arts will not be privatized. 25 museums, galleries and theaters were not featured into the lists of facilities to be privatized across the country. However, the ministry does not rule out the possibility that these facilities will function within the public private partnership in the future. The Ministry of Agriculture hopes that in 2015 Kazakhstan will be officially recognized as the country free from foot and mouth disease (FMD). The corresponding bid was submitted to the World Organization for Animal Health (OIE) in September 2014. The OIC member countries are entitled to export meat to any country in the world in line with the WTO regualtions. Kazenergy Association in cooperation with the Energy Charter Secretariat prepared an overview of Kazakhstan policy in the sphere of energy preservation and presented it at the session of the Secretariat in Brussels this week.