APDC Proposes Privatizing 50% of Atyrau and Pavlodar Oil Refineries

The Agency for the Protection and Development of Competition (APDC) has proposed privatizing 50% of the state's share in the Atyrau and Pavlodar oil refineries, Orda.kz reports.

First Deputy Chair of APDC, Rustam Akhmetov, discussed which other companies could be affected by privatization.

As an example of successful private management, Akhmetov pointed to the Shymkent Oil Refinery, where private investor CNPC owns 50%.

We see examples of successful operation of the Shymkent Oil Refinery, where the form of management is private. This means that there are no officials from the state, fewer accidents, technological failures, and lower costs for repair work. This proves that private management can be more effective than state management, Akhmetov emphasized.

The APDC has also proposed transferring some municipal facilities into private ownership.

These assets could be included in the third stage of privatization, which will begin after the completion of the tariff regulation program and the creation of favorable business conditions.

Regarding industrial enterprises, the agency — together with industry government agencies — has agreed to privatize most defense industry facilities, including companies fulfilling government orders.

However, certain strategically important enterprises will remain under state control.

Earlier, Nurlan Zhakupov, head of Samruk-Kazyna, stated that the list of privatization targets is still being finalized. He also clarified that the Shymkent Oil Refinery will not be included since Chinese CNPC already owns half of the plant.

Original Author: Artyom Volkov