Why Foreign Investors Complain About Kazakhstan

Kazakh state bodies themselves create problems for foreign investors because of poor coordination and red tape, Azamat Dyusembekov, deputy chairman of the Prosecutor General’s Office committee for the protection of investors’ rights, said, Orda.kz reports.

According to him, Kazakhstan’s closest neighbors and major players in the subsoil use sector from the United States, China, Russia and Europe invest the most in the country’s economy. But all of them face the same difficulties.

The top five violations are organizational problems: delays in deadlines, land allocation, approval of technical conditions by our monopolists, and the issuance of permits. These are not systemic or legislative problems. Our authorized bodies cannot coordinate with each other. The investor first has to go to one body and get a document approved, and then a second state body, without knowing about the decision of the first, refuses to approve the permit.Dyusembekov said.

Earlier it became known that replacement investors had been found for two major Karachaganak investors, Shell and Eni, in the gas processing plant project. The operator of the project was named as QazaqGaz, which is owned by the Samruk-Kazyna fund.

Initially, Britain’s Shell and Italy’s Eni were supposed to build the gas processing plant at Karachaganak. The project was seen as a way to settle the dispute with the state over claims that capital deductions had been overstated.

Original author: Nurgul Zhiger

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