How the Tenge’s Decline Could Impact Kazakhstan’s Major Projects, Sklyar Explains

With the dollar now trading at above 540 tenge and a VAT increase set for 2026, questions are mounting over how these changes will affect the cost of major infrastructure projects. Deputy Prime Minister Roman Sklyar addressed the issue, Orda.kz reports.

He discussed large-scale developments such as the construction of nuclear and thermal power plants, modern schools, and the production of Stadler railcars.

According to Sklyar, while there may be a rise in costs, it’s unlikely to be significant.

Calculations, he said, will be made later.

If there is an impact, it will be minor. For example, facilities built within free economic zones already pay VAT. When it comes to construction components, there are offset schemes in place if local materials are used. As for the railcars, the first batch will be delivered in December this year. We’ll wait until next year to calculate the actual costs — taking into account exchange rate differences and how much KTZ will localize production. All of this will influence the final production cost, Sklyar said.

Kazakhstan signed a contract with Swiss company Stadler for the supply of 537 passenger cars, a deal worth around €2.3 billion. Deliveries are expected to begin in 2025, with some cars assembled at a new Stadler plant in Astana. It’s the largest railway contract in the country’s post-independence history.

Original Author: Ilya Astakhov