Economic News in Brief

Kazakh First Deputy Prime Minister Bakytzhan Sagintayev held a teleconference meeting of the government Aug. 11 on the current economic situation in the country. The meeting was attended by representatives of the central government and local authorities. As Sagintayev noted, a global economic slowdown has been observed. Minister of National Economy Yerbolat Dossayev spoke of the current economic situation and the possible risks for Kazakhstan connected with the European Union and the United States sanctions against Russia and the Russian retaliatory sanctions. The meeting also included the issues of supplying the Kazakh regions with oil and fuel and the fill rate of food resources for the stabilisation funds. In order to ensure the economic security of the country, Sagintayev stressed the need for action to ensure the smooth functioning of the economy and gave instructions to the relevant state agencies and the administrations of the regions.

“The agro-industrial sector still remains one of the key industrial sectors in the country’s economy,” Chairman of the Meat and Milk Union of Kazakhstan Ivan Sauer said at an Aug. 11 media briefing held in the Central Communications Service (CCS). “The import of dairy products increased this year compared to 2012. The statistics for dairy products manufacturing are positive as well,” he said. “What is the main problem? The main problem is that small commodity producers and partially medium-sized commodity producers are completely excluded from the process of product processing. This concerns both milk and meat production. We need more cooperation. We need associations,” Sauer said. Speaking at the briefing, the head of the union said it is necessary to put small commodity production in place for the good of the national manufacturers and natural products.

National Managing Holding KazAgro allocated more than 7 billion tenge (US$38.5million) for the purchase of grain harvested in 2014 for the state reserves,” Deputy Chairman of KazAgro Kairat Aituganov told an Aug. 14 meeting on the issues of the harvest. “[Approximately] 7.7 billion tenge (US$42.3 million) has been allocated for the purchase of grain to the state reserves under the guarantees of second-tier banks, of which 3.5 billion tenge (US$19.2 million) is through the spring and summer funding and 3.5 billion tenge (US$19.2 million) in autumn. It should be noted that the funds not used in spring and summer will be used for the direct purchase of grain in the main period,” Aituganov said. In total, KazAgro allocated 89.3 billion tenge (US$490.7 million) for spring sowing and harvesting in 2014, 7.1 billion tenge (US$39 million) of which is budgetary funds to purchase grain into state reserves, 11.6 billion tenge (US$63.7 million) as own funds of the holding. This year for the first time, the holding financed spring field works through second-tier banks in the amount of 20 billion tenge(US$109.9 million).

“It is planned to put about 100 projects of the Industrialisation Map into production in the second half of 2014,” the then Deputy Prime Minister – Minister of Industry and New Technologies of Kazakhstan Asset Issekeshev said at the Aug. 6 enlarged meeting of the government, which included the participation of President Nursultan Nazarbayev. (Issekeshev has since been appointed Minister for Investment and Development.) “In the second half of the year it is planned to put about 100 projects of the Industrialisation  Map worth 600 billion tenge (US$3.3 billion). The second five-year plan was approved, the government developed a step-by-step plan of action and started work in the new format,” Issekeshev noted. He also informed of the development of a single comprehensive plan for the development of light industry. In addition, a list of key infrastructure projects for industrial investors of the second five-year industrialisation plan is being developed together with the Baiterek National Managing Holding and Samruk Kazyna National Welfare Fund. This list is also coordinated with the World Bank and Islamic, European and Asian development banks.

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