Embassy of the Republic of Kazakhstan

1. Embassy of the Republic of Kazakhstan • Prague 01.02.2010

2. Kazakhstan Profile Capital city - Astana Surface Area- 2.7 mln. sq. km Population – 15.7 mln GDP:135 bln. USD

3. Kazakhstan Profile Key Economy Information Industry Production: 84 bln. USD Trade turnover:109bln. USD (2008) Export (FOB): 71.2 bln. USD Import (FOB): 37.9 bln. USD Resources: natural gas, oil, coal, iron ore, manganese, chrome, ore, nickel, cobalt, copper, molybdenum, lead, zinc, bauxite, gold, uranium

4. Natural Resources

5. International rating agencies comparison(Doing business & Global competitive Index)

6. Overview of FDI flow to Kazakhstan Gross inflow of FDI to Kazakhstan 97,6 bln. USD Main investors by gross inflow of FDI in 1993 – 1 half 2009

7. State guarantee of investment • Law “On Investments” • Guarantees for the legal protection of investors’ activity on the territory of the Republic of Kazakhstan • Guarantees for the use of income • Transparency of the government institutions’ activity • Guarantees while government bodies’ controls • Guarantees in case of nationalization and requisition • Contracts stability guarantees • Disputes settlement order National level Subnational level 42 agreements on mutual protection and encouragement of investment

8. Investment preferences It can be granted to investor when he imports some equipments or their parts to implement the investment project Custom duty exemption Law On Investment State grants in kind It can be as a land part, building, construction, machines and equipments and so on. Maximum volume of state grants in kind should not exceed more than 30% of investments in fixed assets. Reduced from 30% to 20% and is going to be reduced by 15% in 2011. Sum of investments in fixed assets is deducted from taxation income Corporate income tax preferences New tax code Tax on property Do not applicable for equipment VAT Reduced from 13% to 12%

9. Accelerated Industrial and Innovation Development of Kazakhstan 2010-2014

10. Key Sectors of Accelerated Industrial and Innovation Development of Kazakhstan • Agricultural Sector and Agriculture Processing; • Construction Industry and Production of Construction Materials; • Oil Processing; • Metallurgy; • Chemistry, Pharmaceutical and Defence Industries; • Energy; • Transport and Telecommunication Infrastructure.

11. Kazakhstan-bridge between Europe and Asia • Kazakhstan: • 12% - Europe • 78% - Asia

12. Project “Western China-Western Europe” • The Project profile • Length – 8445 km. • Cost – 5,5 bln. USD

13. Financial support IBRD – 2,125 mln. USD EBRD – 180 mln. USD ADB – 700 mln. USD IDB – 414 mln. USD

14. CUSTOMS UNION: 1 JANUARY 2010

15. Russia «Belarus, Kazakhstan and Russia Customs Union» Belarus Kazakhstan

16. «Belarus, Kazakhstan and Russia Customs Union: advantages for the potential investors» SIMILAR TRADE RULES 1. Single custom’s territory; 2. Single trade policy; 3. Harmonized custom’s legislation; 4. Simplified procedures for exporting goods to the territory of other member countries of the CU; INCENTIVES FOR THE INVESTORS Exemption from import customs duties on import of non-produced equipment and raw materials in the implementation of investment projects Market capacity – around 170mln. people Total GDP of almost $ 2 trillion U.S

17. Cooperation with investors

18. Data base Cooperation with investors Investors Data base Project Data base MIT (connecting link) Committee for investments KAZNEX Responsible business Investors Institutional Strategic Portfolio Registration of investment projects Investors registrations Financing required Investors capabilities Investment strategies Strategy, goals, project participants Programs Development Integral effect of project Project configuration Investors requirements Info on Investments Info on Projects

19. Thank you for your attention! Embassyof the Republic of Kazakhstan Tel.: +420233375642 Fax: +420233371019 e-mail: kzembas@gmail.com