Recent Developments

Setting up in Kazakhstan – what all businesses need to know

Posted 01/09/2014

Last month’s Somerset Chamber of Commerce magazine picked up on research by the British Chambers of Commerce which identified Kazakhstan as one of the countries perceived as providing the greatest opportunities for growth in the next five years.

Perhaps you’ve picked up on that message too? Maybe you’re keen to move into this market, but no doubt without putting lots of cash at risk.

Whether you’re thinking from your own perspective as an entrepreneur, or weighing the issues up with support from your board of directors, here are some of the key questions you should be asking.
- How will you identify and contact potential customers, partners and distributors?
- How will you obtain sales leads and opportunities?
- How will you ensure you pre-qualify for tender opportunities, or better still, obtain direct sales?
- How will you address the practicalities of language, business etiquette and culture?
- Where will you obtain advice, and who will you trust to understand and protect your interests?
If you’re thinking of taking things a step further and registering a local branch or setting up a local company to ensure you have a real presence in country:
- How will you identify and select a local partner?
- How will you protect your investments, assets and people?
- How will you obtain visas, work permits, licences and other operational requirements?
- How will you get money out of Kazakhstan, and what taxes will apply?
- How will you ensure that management / overhead costs are allowed against local taxes?
It’s more crucial than ever that your investment is of demonstrable benefit to the local economy. As with other countries in the region, the government are increasingly promoting the importance of “local content”. So you’ll need to understand:
- What constitutes “local content” in relation to business ownership, staffing, purchasing and manufacturing.
- How can you maximise local content while bringing in outside investment, assets and people.
If you’re already doing business in Kazakhstan, why not share your experiences with us via twitter.

Alternatively, if you’re just starting out in Kazakhstan, let us know if you are looking for opportunities, local delivery partners or professional tax advice. We’ll be happy to talk to you.

Posted in: Opportunities for SMEs, Recent Developments
Energy Sector Reforms in Kazakhstan

Posted 18/08/2014

Kazakhstan has announced major reforms to the country’s energy sector. Kazakhstan’s president, Nusultan Nazarbayev confirmed that a new regulatory body will replace the Ministry of Oil and Gas and will benefit from greater links to other sectors, such as industry, technology, environment and water resources.

Analysts are already predicting that a new and improved regulatory body with a broader remit could have a significant impact upon speeding up progress for energy projects, particularly within the oil and gas industries.

Here at Kazopp, we welcome these further steps to streamline the regulatory framework for energy projects, which are likely to have a positive impact upon doing business in this sector. They further demonstrate the Kazakh authorities desire to facilitate business within the country, as shown by the recent relaxation of visa requirements. All good news for potential exporters looking to benefit from the opportunities available in Kazakhstan, given the sheer scale of the country’s resources and projects.

Never a better time to start thinking about growing your business by exporting to this exciting market – contact us to find out more.

Posted in: Opportunities for SMEs, Recent Developments
Astana Pro Team produce Tour de France Champion

Posted 29/07/2014

Congratulations to Vincent Nibali of the Astana Pro Team, who became champion of the Tour de France at the weekend. The Astana Pro Team is sponsored by the Samruk-Kazyna, a coalition of state-owned companies from Kazakhstan and named after its capital city.

Nibali’s tactics in the mountain stages of the Tour were not dissimilar to those of Team Sky: to use his Astana teammates to set a tempo hard enough to weaken the opposition, before attacking with just a few kilometres to go to the finish line. But what made him untouchable over the past three weeks, and therefore a worthy champion, were his experience and calm approach. As well as being the best climber left in the race, the best descender, and the most consistent, his focus has been intense.

The Italian rode a virtually flawless Tour de France to become only the sixth rider in the history of the sport to have won all three grand tours. He took only the best calculated risks, made no mistakes and seized every opportunity to make time against his rivals.

Exporting to an unfamiliar country like Kazakhstan can seem like a calculated risk, but with the right help and advice, any element of risk can be minimised leaving the way clear to seize the extraordinary opportunities which the country, the 9th largest in the world, can offer to UK SMEs.

Contact us to find out more.

Posted in: Opportunities for SMEs, Recent Developments
SMEs hold the key to growth

Posted 25/06/2014

A recent article in The Astana Times highlights the importance of SMEs to Kazakhstan’s economy, where they are seen as the largest source of future growth and employment. So much so that the government there has made the competitiveness of SMEs and support to entrepreneurship a cornerstone of its “Kazakhstan 2050 Strategy”. This sets out calls for reforms deemed vital to securing Kazakhstan’s place among the top 30 global economies by 2050.

SMEs central to economic policy

This recognition that SMEs represent the country’s future and are key to securing economic growth has led to moves to place them

“at the heart of any economic policy aimed at stimulating growth”. (Arancha Gonzalez, Astana Times)

Kazakhstan’s accession to the World Trade Organisation is an important factor in driving the success of SMEs in global markets: it is hoped it will ensure transparent, fairer and clearly established rules for SMEs trading with other countries.

All good news for Kazopp – we’ve been in contact with Kazakhstan SMEs for many years and are always keen to talk to UK SMEs looking to partner with companies in Kazakhstan. We help UK SMEs interested in export opportunities by facilitating partnerships with our contacts in Kazakhstan and help to ensure a hassle free transition into doing business there.

This week, we’re at the UKTI South West Export Fair in Bristol, talking to companies about the opportunities currently available in the oil/gas and construction industries.

Are you ready to unlock your export potential?

If so, catch us at the Export Fair or get in touch today.

Posted in: Opportunities for SMEs, Recent Developments
Opening up business travel to Kazakhstan

Posted 17/06/2014

Visa-free travel pilot unveiled

The President of Kazakhstan, Nursultan Nazarbayev last week announced a pilot scheme to remove visa requirements for the citizens of 10 countries, including the UK. The move is further evidence of the country’s commitment to strengthening bilateral partnerships and establishing more favourable conditions for foreign business and investment.

This visa-free regime will run from 15th July 2014 until 15th July 2015 and is aimed at those countries which have the best record of investment in Kazakhstan or greatest potential to invest in the future. During the pilot period, UK citizens with a valid passport will be able to enter, exit and transit through Kazakhstan on multiple occasions without a visa for up to 15 days at a time. Longer stays for business travel may be permitted upon application.

At the conclusion of the one year pilot, the system will be reviewed by officials, as to whether it should continue.

Watch out for further details of the pilot which are expected to be publicised within the next few weeks.

This makes it a great time for potential exporters to the country to seize upon the vast array of export opportunities the oil/gas and construction industries have given rise to in Kazakhstan.

Could your business become the next big export success story?

Find out more about how we can help by contacting us today.

Posted in: Opportunities for SMEs, Recent Developments
Opportunities in Kazakhstan’s Growing Energy Sector

Posted 16/06/2014

Did you know that Kazakhstan is the biggest energy producer after Russia among the former Soviet republics? The country plans to produce 81.8 million metric tons of oil this year, which equates to about 1.65 million barrels a day.

Once the $50 billion Kashagan project, the country’s biggest oil field, located in the Caspian Sea, is up and running again, Kazakhstan could enter the top ten global oil exporters.

The energy-rich country has also recently reported setting new goals to develop the production and processing of hydrocarbon resources and electricity. This forms part of the government’s latest concept for the development of the country’s fuel and energy complex, in which there are plans to invest around $2 billion.

Kazakhstan ranks 12^th in the world for its oil reserves, and 20^th for gas reserves. The country has plans to increase the gross volume of oil and condensate production to nearly 112 million tons by 2030. In order to increase the volume of its hydrocarbon reserves, particularly in the Caspian basin, Kazakhstan authorities know that attention to the subsoil use and geological exploration needs to be increased.

Kazakhstan’s Oil and Gas Ministry plans to implement a package of measures, including increasing the ration of oil production, carrying out measures on innovational development, and establishing a research support infrastructure.

What does this mean for UK SMEs?

If your SME could hold the key to resolving some of the issues faced in the energy sector in Kazakhstan right now or to improving production efficiency, potential to become a part of the success story is immense. With the right advice, tapping into the export market to Kazakhstan could transform your business.

Contact us today if your SME is ready to take the next step.

Posted in: Opportunities for SMEs, Recent Developments