ANNOUNCEMENT 09 Jul 2012In July 2012, the government of Kazakhstan announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 9 July 2012 the Government of the Republic of Kazakhstan approved Decree No. 922. It contains rules for partial reimbursement of expenses of beneficiaries that develop industrial-innovative activity and promote domestically-produced goods, works and services on the internal market ('the Beneficiaries').
The Beneficiaries can obtain a reimbursement of up to 50% of the sum they request, but not more than 3000 times the monthly calculation index. In 2012 this index was at the amount of 1 618 tenge (10.84 USD). In summary, a Beneficiary may obtain (50%*3000*10.84) = 32,522 USD at the same time. No global amount of state support is disclosed. However,there is no upper limit on the Beneficiaries that may participate as long as they comply with the rules. Therefore, the GTA reports this case.
The decree does not contain an explicit local content rule. Therefore, it is classified as a bail-out.
The concrete activities for which the Beneficiaries can obtain partial state reimbursement are services related to certification of goods, woks and services under systems for quality management. The 3rd provided source gives as examples ISO, API and ASTM.
The priority sectors for which partial compensation is foreseen in the decree are:
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.