28.03.2023, 11:39 56086
KazTransOil starts shipping 25,000 tons of Russian oil to Uzbekistan
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JSC "KazTransOil" has started shipping 25 thousand tons of Russian oil for transit through the territory of the Republic of Kazakhstan to the Republic of Uzbekistan en route "Omsk - Pavlodar - Shymkent - oil loading rack Shagyr" (loading into railway tanks), Kazinform learned from the company's press office.
Oil transportation is carried out in accordance with the oil supply schedule approved by the Ministry of Energy of the Republic of Kazakhstan.
In 2023, the expected volume of Russian oil transit to the Republic of Uzbekistan through the system of main oil pipelines of KazTransOil JSC will be 250 thousand tons.
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19.04.2024, 14:15 1776
Kyrgyzstan and World Bank reach agreement on Kambarata HPP-1 project
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Meetings between Chairman of the Cabinet of Ministers - Head of the Administration of the President of the Kyrgyz Republic Akylbek Zhaparov and the executives of the World Bank Group continue, Kabar reports.
Yesterday, on the sidelines of the spring meetings of the International Monetary Fund and the World Bank Group, meetings were held with the WB Regional Director for Economics and Finance Asad Alam, as well as with the WB Vice President for Human Development Mamta Murthy.
The main topic of negotiations with the WB Regional Director for Economics and Finance Asad Alam was the issue of discussing the draft country economic memorandum and the partnership framework strategy, and with the WB Vice President for Human Development Mamta Murthy, the head of the Cabinet discussed issues of cooperation in the social sphere, including education, healthcare and social protection.
Next, a meeting was held between Deputy Chairman of the Cabinet of Ministers Bakyt Torobaev and World Bank Regional Director for Europe and Central Asia Sameh Wahba, where the main topic of negotiations was the issue of interaction in the field of agriculture and water management.
The parties mutually noted the importance of discussing these issues in the context of climate change and natural disasters around the world.
As a result of these meetings, an agreement was reached to practically strengthen the partnership between Kyrgyzstan and the World Bank, in particular, the parties agreed to develop a financial model of cooperation within the framework of the construction of Kambarata HPP-1.
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19.04.2024, 12:26 9116
Kazakhstan turns to high-value added manufacturing with building polyethylene plant it Atyrau region
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Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the heads of the world's largest oil and gas chemical companies – President of China Petrochemical Corporation (SINOPEC) Zhao Dong and Chairman of the Board of SIBUR LLC Mikhail Karisalovб primeminister.kz reports.
The key issue is the joint construction of the first integrated gas chemical complex for polyethylene production at a cost of about $7.7 billion and a capacity of 1.25 million tonnes per year, which will account for 1% of the world's total capacity.
A tripartite protocol was signed during the meeting, officially finalising SINOPEC's entry into the project. The ownership structure of the plant is as follows: KazMunayGas 40%, SINOPEC 30%, SIBUR 30%.
Head of the Government emphasised the importance of the project due to its focus on the production of high value-added products.
A gas separation complex (GSC) will be built at the Tengiz field to supply the "Polyethylene" project with feedstock (ethane). The capacity of the GSC is 9.1 billion m3 of dry gas processing per year, of which 1.6 million tonnes of ethane is expected to be produced.
Ethane will be sent through the main pipeline from Tengiz to the Karabatan site (territory of FEZ NINT, Atyrau region), where the polyethylene plant will operate.
It is planned to produce about 22 grades of polyethylene using American licence technologies of Chevron Phillips and Univation, 40% of which will be premium grade. A wide range of applications for both industrial and household purposes makes polyethylene the most popular polymer in the world.
Polyethylene is used in the fields of medicine, prosthetics, defence, food industry, construction, space industry and others. This polymer is used in the production of a wide range of goods: from plastic wear-resistant pipes, construction materials, medicines, syringes, prostheses to bulletproof vests, clothing for astronauts and car parts. Target markets include Kazakhstan, CIS countries, China, Turkey and European countries. At the same time, for domestic consumption, the realisation price will be lower than the import price.
The Head of State has identified deep processing of hydrocarbons as one of the key areas of development of the oil and gas sector. The priority for our economy is high conversion production producing products with a rapid increase in added value in the technological chain with an export orientation. The added value between the initial feedstock ethane and the third conversion product polyethylene increases 20 times, from $80-90 to $1600-1800 per tonne. The Polyethylene project will certainly give a serious impetus to the development of both the manufacturing industry and the country's economy as a whole. According to experts' calculations, the contribution to the country's GDP by 2030 from the implementation of the project is estimated at approximately 1.2%," Olzhas Bektenov said.
The construction of the plant is planned to be completed by 2029. During the construction period more than 8 thousand jobs will be created, during the operation period about 850 jobs will be created.
It was noted that the project is realised with the support of the Government. The plant will be built on the territory of a special economic zone with the provision of appropriate infrastructure and special tax regime. In this regard, Prime Minister emphasised the attention of the project participants to the need to maximise the use of local potential.
We on the part of the state provide comprehensive support in the implementation of projects important for the country's economy. At the same time, we expect you to increase the share of local content. For this purpose, it is necessary to determine the list of goods and equipment that will be mandatorily purchased from domestic producers. Special attention should be paid to training of Kazakhstani specialists and transfer of competences. It is important for us to maximise the attraction of local personnel, including for management positions in the project. We count on a similar approach in the implementation of other joint projects," Prime Minister emphasised.
Thus, in addition to the plant "Polyethylene" it is planned to build a gas separation complex and a trunk pipeline.
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18.04.2024, 17:20 9306
Olzhas Bektenov and Head of the Sakha Republic Aysen Nikolayev discuss issues of trade and economic cooperation
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Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the Head of the Republic of Sakha (Yakutia) Aysen Nikolayev, who arrived on a visit to Astana to participate in the opening ceremony of the Days of the Republic of Sakha in Kazakhstan, primeminister.kz reports.
The Republic of Sakha contributes to the development of Kazakhstan-Russia trade relations. The implementation of agreements reached at the level of the presidents of Kazakhstan and Russia on further expansion of bilateral trade and economic cooperation was reviewed.
Over the year, trade turnover between the regions of Kazakhstan and the Republic of Sakha has grown almost 2-fold, exceeding $160 million, with over 99% of exports of Kazakhstani goods. During the discussion a wide potential of mutual trade was noted and the parties' readiness to increase turnover in agricultural, industrial and IT spheres was outlined.
The parties confirmed their intention to intensify joint work on expanding the range of supplied goods and services, establishing direct contacts between business circles. It is expected that a new impetus to trade and economic relations will also be given by the launch of five major cross-border trade centres in Kazakhstan, including the Eurasia Cross-Border Trade Centre on the border with Russia.
Special attention was paid to the exchange of experience and technologies in the field of creative industries and digitalisation, as well as interaction between research institutes and educational institutions of Kazakhstan and the Republic of Sakha.
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16.04.2024, 08:48 21501
Uzbekistan and Kazakhstan launch E-Permit international cargo transportation system
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Much attention is paid to improving conditions in international road freight transportation between Uzbekistan and Kazakhstan and the widespread introduction of digital technologies into the system, UzA reports.
E-Permit, an electronic system for exchanging permit forms, has been introduced to speed up cargo transportation between Uzbekistan and Kazakhstan.
Specialists from the Digital Transport Center under the Ministry of Transport successfully launched this system in test mode. The first quotas were exchanged using the E-Permit system, and cargo vehicles passed through the Yallama customs post.
It is worth noting that this electronic system was introduced between Uzbekistan and Türkiye on November 11, 2021, at the initiative of the Ministry of Transport, for the first time.
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15.04.2024, 10:59 21316
National Bank of Kazakhstan maintains base rate at 14.75%
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The National Bank of Kazakhstan has decided on April 12 to keep the base rate at 14.75% per annum, press service of National Bank of the Republic of Kazakhstan reports.
Inflation and inflationary pressures
Annual inflation in February and March continued to decrease, albeit at a slower pace. Inflation expectations have slightly decreased but remain at a relatively high level. The external inflation background continues to be neutral with the ongoing trend of declining grain prices in global markets. Within the domestic economy, inflationary pressure persists due to robust internal demand and unanchored inflation expectations," reads the bank’s official statement.
The National Bank considers it necessary to "maintain moderately tight monetary conditions" to achieve the inflation target of 5%.
In the current circumstances, there is still limited room for easing monetary policy. This space will begin to form with the stable reduction of the stable part of inflation," it said.
Kazakhstan’s annual inflation in March went down to 9.1%, driven by what the bank deemed "moderately tight monetary policy and declining world grain prices."
Monthly inflation slowed down in March to 0.7% after a spike in the previous month (1.1%), forming above the average historical values (0.6%). A similar dynamic is observed for the indicators of core and seasonally adjusted inflation - a significant reduction in March after a sharp acceleration in February," said the bank.
Although inflation expectations are on the decline, they are still high due to rising prices for food, housing and communal services, and gasoline.
International economic environment
The external inflation background is neutral. The cost of food in global markets in March shows a slight increase, mainly due to rising prices for vegetable oils. Grain prices continue to decline against the background of the realization of the harvested crop in exporting countries and the uninterrupted operation of maritime trade routes," said the bank.
The bank also noted that oil prices are slightly above the base scenario, averaging $83 per barrel since the beginning of the year, which will favorably affect Kazakhstan's trade balance. This is due to the extension of the OPEC+ agreement, military actions in the Red Sea, and the suspension of several refineries in Russia.
However, high oil prices may lead to an increase in the external inflationary background.
External monetary and credit conditions remain tight. As a result, global inflation is slowing down but still remains above target levels in many countries.
In the European Union, the trend towards slowing inflation continues against the backdrop of the European Central Bank's restrictive policy. Despite expectations of weaker economic growth indicators this year, the ECB remains committed to returning inflation to its target value and intends to maintain restrictive monetary and credit conditions for this purpose," said National Bank Governor Timur Suleimenov in an April 12 statement.
Inflation in the United States also remains above its 2% objective.
The Federal Reserve notes that inflation in the United States still remains high. In March, the annual inflation rate increased to 3.5%, accelerating for the second consecutive month. According to the Fed's rhetoric, the current monetary and credit conditions will continue going forward. In Russia - a key trading partner of Kazakhstan, inflation in March remained at 7.7%. According to the statement from the Russian regulator, achieving the inflation target involves a prolonged period of maintaining tight monetary and credit conditions," said Suleimenov.
Economic growth
Economic growth in January and February is estimated at 4.2% year-on-year, within the National Bank's forecast. The dynamics of retail trade indicators, volumes of consumer credit issuance, and the dynamics of the business activity index indicate the maintenance of robust internal demand in the economy.
Pro-inflationary risks are conditioned by the continuation of reforms in the area of regulated prices, the consequences of abnormal floods in Kazakhstan, and the uncertainty associated with the volumes of budget expenditures needed for their elimination," the bank said.
The next decision on the base rate is scheduled for May 31.
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12.04.2024, 15:23 55856
Henkel intends to develop production in Kazakhstan
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At the Ministry of Industry and Construction of the Republic of Kazakhstan, a meeting took place between the Chairman of the Industry Committee, Azamat Panbaev, and the CEO of Henkel for the Central Asian and Caucasus regions, Mikhail Yershov, press service of the Ministry of Industry and Construction reports.
During the meeting, M. Yershov reported on the completion of the process of transferring the office of the Central Asian and Caucasus regions to Kazakhstan and shared the company's plans for business development in our country.
Henkel actively operates in nine countries of the Eurasian region - Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan, Mongolia, Azerbaijan, Armenia, and Georgia. The history of cooperation with Kazakhstan began in 2006.
The complexity of production and logistical chains has prompted the company to consider optimizing production in the Eurasian space. The company already has two manufacturing facilities in the region: a factory in Kunayev (formerly Kapshagai) and a facility near Tbilisi in Georgia, which produces Metylan and Ceresit.
Currently, other possibilities for localizing production are being explored to be closer to the consumer, while the company intends to continue investing in the expansion of construction mix production in Kazakhstan.
At the end of the negotiations, both sides expressed their appreciation to each other for the constructive, effective dialogue and emphasized the importance of developing bilateral relations.
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12.04.2024, 14:20 56056
Kazakhstan and Finland: Plans to launch 11 new manufacturing projects worth 32.5 billion tenge
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Vice Minister of Industry and Construction, Zhannat Dubirova, announced this at the 13th session of the Kazakhstan-Finland Intergovernmental Commission on Trade and Economic Cooperation. Participants included Kazakhstan's Minister of Ecology and Natural Resources, Erlan Nysanbayev, Ambassador of Kazakhstan to Finland, Zhanna Sartbayeva, and Vice Minister of Transport, Talgat Lastaev, along with Finland’s Minister of Foreign Trade and Development, Ville Tavio, Ambassador to Kazakhstan, Soili Mykäinen-Buchanist, and Diplomatic Advisor Mikko Autti, press service of the Ministry of Industry and Construction reports.
The Vice Minister highlighted the achievements of Kazakhstan-Finland relations in the woodworking industry, which amounted to 14.3 million dollars in 2023.
Zhannat Dubirova also shared data on a 31% increase in investment in woodworking, totaling 3.3 billion tenge.
By 2027, the woodworking industry plans to launch approximately 11 new productions valued at 32.5 billion tenge, creating 1400 jobs", emphasized the Vice Minister.
The government is offering a range of benefits, incentives, and preferences for launching new investment projects and supporting existing ones. The Ministry has set the task of further developing the woodworking industry with sustainable and efficient use of raw materials.
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12.04.2024, 13:36 55631
ADB: Kazakhstan's economy to grow 3.8% in 2024, 5.3% in 2025
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According to a new Asian Development Bank (ADB) report, Kazakhstan's economic growth rate is projected to decline in 2024 due to a slowdown in the industrial sector caused by stagnant oil production but is expected to recover in 2025 with gains in mining and investment, reports Kazinform News Agency correspondent, citing the bank’s press service.
Economic prospects
ADB forecasts that GDP growth will slow in 2024 but recover in 2025. Growth is forecast to decline to 3.8% in 2024, with industry slowing due to stagnant oil production, before accelerating to 5.3% in 2025 as the expansion of the Tengiz oil field leads to higher oil production starting from the second quarter of 2025.
The prospects for Kazakhstan’s economic development look positive in the medium term," said ADB Country Operations Head in Kazakhstan Iskandar Gulamov.
However, the economy’s dependence on commodities makes such growth volatile-so structural reforms are key to bolstering the country’s economic resilience and sustainability," he added.
Despite a slowdown in 2024, economic growth is expected to be bolstered by consumer spending and investment demand. The anticipated growth in consumption is forecasted to moderate to approximately 4% in both 2024 and 2025 due to a slower increase in real disposable incomes.
Services growth is forecast to slow to 4.7% in 2024 after record growth in 2023 before rebounding to 4.9% in 2025, supported by trade, transport and hospitality, and trade facilitation between Europe and Asia. Industrial growth is forecast to slow to 3.5% in 2024, with smaller gains in mining, and accelerate to 5.7% in 2025 as oil production increases.
Investment growth in Kazakhstan is also projected to moderate, reaching 14.5% in 2024 and 9.0% in 2025, following the completion of significant infrastructure projects. Despite the support from state-sponsored housing construction initiatives and endeavors to attract foreign investment, these factors are expected to contribute to the overall moderation in investment growth.
Inflation rates
ADB forecasts that service prices are forecast to be the main source of inflation, rising 9.8% in 2024 and 8.1% in 2025 due to government-announced increases in utility prices.
The National Bank of Kazakhstan will gradually ease monetary policy and reduce the policy rate in line with the decline in inflation and inflationary expectations. However, rising utility prices and continued strong domestic demand will keep inflation above the National Bank's 5% target.
Caucasus and Central Asia economies
According to an ADB report, Caucasus and Central Asia economies will slow after the boost from re-exports and Russian migrant inflows in 2023. Growth in the subregion is forecast to fall to 4.3% in 2024, down from 5.3% in 2023 bouncing back to 5.0% in 2025.
In Uzbekistan, growth is forecast to moderate to 5.5% in 2024 and 5.6% in 2025 from 6% in 2023, as services, agriculture, and domestic demand cool on persistent inflation and slower growth in household income.
In the Kyrgyz Republic, growth is projected to moderate in 2024 and 2025 with smaller gains in construction and services. Inflation should decline under continued tight monetary policy.
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