Azernews.Az

By Aynur Jafarova

Kazakhstan intends to allocate around one trillion tenge to stimulate economic growth in 2014-2015.

The news was announced by Economy and Budget Planning Minister Erbolat Dossayev at a briefing in Astana on April 14.

"The allocation of around one trillion tenge from the National Fund for 2014-2015 will be one of the main sources for stimulating economic growth," the minister said.

Dossayev noted Kazakhstan will allocate 500 billion tenge in 2014 for this purpose, 100 billion tenge of which will be spent on supporting small and medium-sized businesses; 250 billion tenge will be used for the recovery of the banking sector, and 150 billion tenge for implementing the second phase of the state program on forced industrial-innovative development.

Kazakhstan to intensify diversification of transport, logistics infrastructure

The minister went on to say that Kazakhstan will intensify the diversification of transport and logistics infrastructure.

"Taking into account the current situation [the events in Ukraine and economic sanctions against Russia by the EU and the U.S.], measures will be taken to diversify transport and logistics infrastructure and increase Kazakhstan's transit potential," he noted.

Dossayev also said the construction of three dry cargo terminals will be launched by July 1 to expand the capacity of the Aktau seaport.

"The construction of a dry port will be launched in the territory of Horgos- East Gates free economic zone in the direction of China by July 1, with expected financing from Kazakhstan Railways' own funds amounting to 36.8 billion tenge and co-financing amounting to 38.4 billion tenge," he said.

Kazakhstan to adopt law to attract investors

Dossayev also stressed Kazakhstan plans to adopt a law aimed at attracting a new wave of investments.

"A draft law on improving the investment climate will be introduced to the Kazakh parliament before June 1, 2014," he said.

He noted the draft law includes a new format of contracts for investors, describing governmental support measures in detail.

Dossayev also said Kazakhstan will introduce the legislation "stability" principle in tax and environment for 10 years.

The country will also introduce the projected long-term rate and the one-stop shop principle for investors, and create an investment ombudsman institute, he added.

Oil production in Kashagan not to be resumed in 2014

Referring to the resumption of oil production at Kazakhstan's giant Kashagan field in the Kazakh sector of the Caspian Sea, Dossayev said oil production at the field will not be possibly resumed in 2014.

"There is still a risk of failing to start the commercial production at Kashagan field in 2014. We are talking about 2.4 million tons of oil," the minister said.

The Kazakh government intends to hold talks with large subsoil users about the possible increase of oil production and export at other fields, Dossayev said.

The Kashagan field, with recoverable oil reserves estimated at 11 billion barrels, is believed to be the largest oil field in the world after Prudo Bay in Alaska. Its natural gas reserves are also estimated at over 1 trillion cubic meters.

Oil production in the field started on September 11, 2013, but operations had to be stopped on September 24 due to a gas leak in the onshore section of the gas pipeline running from Island D to the Bolashak onshore processing facility.

The Department of Emergency Situations was immediately briefed on the regulations. Production was resumed, but stopped again on October 9 after the detection of another gas leak.