No tenge spent from state budget: Government successfully concluded negotiations with ArcelorMittal
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The Government of Kazakhstan and ArcelorMittal Corporation have concluded a deal on the transfer of ArcelorMittal Temirtau JSC to Kazakhstan. Details of this agreement at a press conference was announced by the Minister of Industry and Construction Kanat Sharlapayev, primeminister.kz reports.
The Minister recalled that in August this year, President of Kazakhstan Kassym-Jomart Tokayev on the background of continuing accidents in JSC "ArcelorMittal Temirtau" pointed to serious violations of the company's investment and other obligations. The head of state then noted that for AMT is not excluded corresponding consequences of further stay in the Kazakhstan market.
At that time, the Government of Kazakhstan was already negotiating with the owners of ArcelorMittal Temirtau about the possible withdrawal of ArcelorMittal from the steel mill. They began after the tragic accident that occurred on November 3, 2022 at the Lenin mine, a subsidiary of AMT.
The Government of Kazakhstan made specific demands to ArcelorMittal Temirtau.
As a result of intensive negotiations, on December 9, 2022, the Government of Kazakhstan and ArcelorMittal signed a Standstill Agreement, allowing the Kazakh side to conduct an assessment and audit of the enterprise.
The Minister emphasized that during the negotiations, ArcelorMittal requested $3.5 billion, which did not correspond to the calculations of international consultants.
This was one of the main reasons for the protracted negotiation process. Our goal was to acquire the mill at a fair price without allowing costly and protracted international litigation. The urgency and speed of negotiations were also dictated by the need to prevent the shutdown of the enterprise," Kanat Sharlapayev said.
According to him, the negotiation process consisted of 11 rounds, as a result of which both sides reached principled positions.
The agreement between the Government of Kazakhstan and ArcelorMittal can be called a mega deal, it is of exceptional importance for our country. We have avoided a lot of risks faced by the governments of other countries," the Minister emphasized.
He also voiced three key elements of the deal:
1. The state reduced the value of assets from $3.5 billion to $286 mln;
2. Not a single tenge was spent from the state budget for the realization of the transaction;
3. The new investor assumes obligations to the parent company ArcelorMittal to repay a short-term loan of $250 mln and a long-term loan of $450 mln within 4 years.
I would like to emphasize that $286 million is the value of two fully operational businesses. In addition, ArcelorMittal does not make any claims against the Government of Kazakhstan. The agreement was reached within the legal framework, in full compliance with international legislation," Kanat Sharlapayev said.
Moreover, the Kazakhstan negotiating group, consisting of representatives of the Ministry of Industry and Construction and the Ministry of Justice, managed to convince ArcelorMittal to make a contribution of 16 billion tenge to support the charitable fund "Kazakhstan Khalkyna".
The funds, which will be transferred to the fund from AMT, will be used to solve urgent problems of the residents of Karaganda region and to implement socially significant projects. At the same time, 50% of this amount will be realized in Temirtau city.
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Kazakh Foreign Ministry comments on situation in Ukraine
The Embassy of Kazakhstan operates as usual in Ukraine, Aibek Smadiyarov, official spokesperson of the Kazakh Foreign Ministry said Friday, Kazinform News Agency reports.
According to our information, the foreign diplomatic corps continues its work in Kyiv, with no plans to evacuate citizens. There have been no evacuation requests and there are no plans to arrange special flights at this moment, said Aibek Smadiyarov, while talking about the situation in Ukraine. 'As you know, military activities in Ukraine have been underway for more than one year. According to our estimates, there may be around 300 citizens of Kazakhstan staying in the country. However, it’s difficult to give the exact number due to the situation in the country'.
The Kazakh Foreign Ministry added that earlier Kazakhstani nationals, staying in Ukraine, were advised to leave the country.
Smadiyarov noted that Kazakhstani diplomats are ready to provide all necessary assistance to their compatriots, assuring to act as the situation evolves.
Earlier it was reported that Head of State Kassym-Jomart Tokayev gave urgent tasks over the escalation of the situation in Ukraine.
Kazakh Prime Minister Olzhas Bektenov held an operational meeting today to fulfill the tasks of the Head of State to take urgent measures in order to ensure security at the key military and civilian objects over the situation in Ukraine, involving the Defense, Interior, Emergencies, Foreign Affairs, Healthcare, Transport, Energy, Industry and Construction, National Economy and Finance Ministries.
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Kazakh Government to allocate KZT 10 bln to buy grain from farmers
At the Agriculture's Workers Forum, the Head of State assigned the Government to buy grain directly from farmers through the ProdCorporation in a volume sufficient to keep reasonable market prices. Kazakh Agriculture Minister Aidarbek Saparbayev revealed the Kazakh Government will allocate 10 billion tenge from the reserves to acquire 150,000 tons of grain, Kazinform News Agency reports.
It will be bought through the ProdCorporation to restore the plunge in the grain purchasing process.
He said five export contracts worth 20 million US dollars have already been concluded.
Besides, grain shipping subsidy rules are to be adopted soon. Subsidies are expected to reduce freight charges to the ports of the Black Sea, the Baltics, Southeast Asia, etc., to make the country’s grain competitive in Europe, Africa, Caucasus, and other promising markets.
As earlier reported, the country’s first-ever Agriculture Workers’ Forum took place in Astana on November 15. The Minister highlighted Kazakhstan harvested a record-high 26.7 million tons of grain in 2024.
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Olzhas Bektenov checks implementation of President's instructions on employment and development of social infrastructure in Kyzylorda region
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Within the framework of his working trip to Kyzylorda region, Prime Minister Olzhas Bektenov checked the implementation of the instructions of the Head of State given in his Address to improve the welfare and quality of life of villagers within the framework of the programme "Auyl Amanaty", diversification of the economy through the development of agro-industrial complex, as well as modernization of social infrastructure facilities to provide residents with quality educational services, primeminister.kz reports.
In Besaryk village of Syrdarya district Prime Minister got acquainted with successful examples of implementation of "Auyl Amanaty" programme and social responsibility of business. Abai Daulet’ LLP has created a production site, where 13 business initiatives of villagers for 318.2 million tenge have been implemented. Shops for production of semi-finished products, plastic utensils, wood products, textile, confectionery products, soap, etc. have been opened. Olzhas Bektenov familiarised himself with the line of products manufactured by villagers.
For wide dissemination of positive experience the work on opening of similar business incubators in at least 3-4 villages of each district of the region is underway.
In total in Kyzylorda region in the framework of the programme ‘Auyl Amanaty’ this year implemented 575 projects in the manufacturing industry, livestock, crop production and other promising areas with the creation of 610 jobs.
On the example of the plant "Kaz Fries" the head of the Government was presented measures to unlock the potential in the field of deep processing of agricultural products. The capacity of the enterprise is up to 150 kg of fries per hour, the finished products are frozen and sold in the domestic market. Director of "Abai-Daulet" LLP Murat Sarsenbaev informed about plans to further expand the production capacity of the multi-profile company engaged in crop production, poultry farming, livestock breeding and production of construction products.
It is important to note that the partnership makes a great contribution to the development of the village. For these purposes, the company has allocated more than 1.5 billion tenge since 2018. The funds are used for landscaping, gardening, repair of social facilities: a school for 360 places, a kindergarten for 120 places and a doctor's outpatient clinic. The House of Culture for 150 people was overhauled this year due to sponsor support. The concept ‘Adal adam’ initiated by the President is being implemented here, aimed at educating young people in the spirit of patriotism, spirituality and morality. Children's art groups have been opened, and a musical creative group has been set up. In addition, a podcast studio has been set up in the cultural centre "Adal Adam", where topical issues of rural business development are discussed live, and viewers are introduced to the products made in local workshops.
Prime Minister emphasised the importance of the contribution of business in improving the quality of life in rural areas.
Development of the village, stimulation of productive employment, creation of quality social infrastructure are among the priority tasks of the Government. In this direction we fully support all initiatives of entrepreneurs. If each Kazakhstani village will have responsible support from those who build business on this land, then the quality of life of the population will improve more dynamically," Olzhas Bektenov noted and emphasised the need for further scaling of the experience of development of Besaryk village.
In Kyzylorda Prime Minister visited the production sites of agro-industrial complex of "Zhan Arai" LLP, where 200 jobs have been created for today. The enterprise is engaged in production of rice, mixed fodder, processing and storage of fruits and vegetables. Two factories are functioning: on production of mixed fodder with capacity of 80 tonnes of production per day and rice processing with capacity of 150 tonnes of groats per day. In addition, there is a vegetable storage capacity of 4 thousand tonnes, which allows to ensure price stability in the off-season for socially important products. The complex's products are sold in Kazakhstan and exported to countries near and far abroad such as Turkey, Iraq, Russia, Uzbekistan, Tajikistan, Azerbaijan, Belarus and others.
In the regional centre Olzhas Bektenov also got acquainted with the measures taken to increase the coverage of children's additional education. The new Palace of Schoolchildren, built at the expense of private investment, was put into operation in October this year. The cost of the project was 2.4 billion tenge. The social facility with a capacity of up to 350 people is provided with new equipment that promotes all-round development of schoolchildren of different ages such as hydroponics, robotics, industrial design, TV studio and others.
The Prime Minister was also informed about the measures taken in Kyzylorda region to transform the system of vocational education and training within the framework of the Year of Working Professions announced by the President. There are 28 colleges in the region, where today more than 20 thousand students are studying, of which about 5 thousand students are trained in working specialities.
In the 2024-2025 academic year, 7 training and production centres have been opened in all districts of the region. About 300 people are covered by short-term vocational training courses. The first centre was opened in 2022 on the basis of the city lyceum school. It produced 164 specialists in such in-demand professions as cook, seamstress, graphic designer and others. The experience is planned to be scaled up.
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Korkyt Ata airport terminal opened in Kyzylorda on behalf of President
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By order of the Head of State, Prime Minister Olzhas Bektenov took part in the opening of Korkyt Ata airport's new terminal in Kyzylorda, primeminister.kz reports.
The project, implemented within the framework of social responsibility of business, contributes to the development of trade and economic, tourism potential of the region and ensuring the availability of transport services that directly affect the quality of life of the population. The launch of the new terminal will increase the capacity of the air harbour 7 times from 300 thousand to 2 million passengers per year. The renovated Korkyt Ata terminal meets the high standards of the International Air Transport Association (IATA) and the International Civil Aviation Organisation (ICAO).
The Head of State in his Address to the Nation called the development of the transport and logistics sector a strategic priority. The new terminal of Korkyt Ata airport is an important infrastructure project not only for the region, but also for the whole of Kazakhstan. Its implementation will open additional air routes, including international ones, increase transit potential, passenger and cargo traffic, which will have a positive impact on the development of domestic tourism, trade and the economy as a whole. The Government will fully support socially-oriented initiatives of business to build modern, high-quality transport and logistics infrastructure - this is a contribution to the future of our country," Olzhas Bektenov said and thanked all those who took part and in a short time provided the launch of the project.
Head of the Government familiarised himself with the process of passenger service of domestic and international flights. The terminal with the area of 7 500 m2 is equipped with advanced technologies in the form of telescopic ladders, automated baggage inspection system and others. 20.9 billion tenge was invested in the project by the Bulat Utemuratov Foundation within the framework of social responsibility. Over 4.3 billion tenge was allocated from the local budget for engineering and communication infrastructure, construction of a motorway, landscaping and lighting of the airport territory.
Bayan Ajmoldayev, Chairman of the Board of Korkyt Ata Airport JSC, reported on the timeliness of the launch of the terminal taking into account the annually growing passenger traffic in the region. Thus, for 9 months of this year the airport served 265 thousand passengers, which is 20% more than in the same period last year. There are 26 domestic flights per week (17 to Astana and 9 to Almaty). In June this year, an international charter flight to Antalya (Turkey) was launched.
First Deputy Akim of Kyzylorda region Daniyar Zhanalanov reported on plans to open additional flights to Aktau and Atyrau, as well as the inclusion in the list of socially important flights such air routes as "Kyzylorda-Kokshetau", "Kyzylorda-Aktobe", "Kyzylorda-Karaganda".
Speaking on behalf of the public of the region, the chairman of the Veterans Council of Kyzylorda region Serik Duisenbayev noted the importance of improving the quality of services and comfortable conditions created in the renovated airport for all categories of passengers
On the example of Kyzylorda region we see the positive results of measures of support of regions by the state. Today the cherished dream of our residents has come true - a new airport terminal has been opened. I would like to express my gratitude to the Head of State for the special attention given to the region, which contributes to growth in all areas," Serik Duisenbayev said.
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Kazakhstan intends to transform its drug procurement management system
Chairman of the Board of SK-Pharmacy LLP Yerken Zhakatayev reported at the Government session that in recent years the state has significantly increased the list of medicines guaranteed to be provided to patients, primeminister.kz reports.
In general, the volume of drugs and medical products purchased by the Single Distributor has increased 15 times in monetary terms compared to 2010. Today SK-Pharmacia provides medicines and medical products to more than 1.2 thousand inpatient centres and 700 polyclinics across the country. In the current year in the list of ‘SK-Pharmacy’ already 1588 names of pharmaceutical products for 480 billion tenge. Long-term contracts have been concluded with 35 domestic manufacturers for the supply of almost 4 thousand names of medicines and medical devices.
‘These indicators were achieved by centralisation of procurement, which led to the effect of price equalisation throughout the country, regardless of the distance of the region," Yerken Zhakataev noted
It was noted that medicines are supplied to medical organisations of the republic by six logistics providers. At the beginning of its activity in 2009, SK-Pharmacia had only one warehouse, which limited the possibility of timely deliveries throughout the country. Today, under the concluded contracts, there are 14 modern warehouses with a total area of about 300 thousand m3 strategically located throughout Kazakhstan and equipped with the latest systems for controlling temperature and storage conditions. This ensures the safety and security of all medicines and medical devices.
In the future it is planned to transform procurement management systems with a focus on key functional areas of the company. In particular, according to the announcement, full automation of procurement procedures from planning to purchasing will be implemented, and a unified information base will be created with further integration into the healthcare ecosystem.
We actively support the development of domestic pharmaceutical production, concluding long-term contracts with Kazakhstani manufacturers. We are confident that our systematic work to provide medical institutions with vital drugs and products contributes to the sustainable development of healthcare and improves the quality of medical care for all citizens of the country," Yerken Zhakatayev emphasised.
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New fire safety measures: Kazakhstan creates universal units for emergency situations
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Ministry for Emergency Situations is carrying out a set of measures to ensure fire safety in the country. Minister Chingis Arinov reported on this at the Government session chaired by Prime Minister Olzhas Bektenov, primeminister.kz reports.
Firstly, they increase operational response to emergencies and combat readiness of the Ministry's units. In a pilot project in Akmola region created a universal unit of firefighters, medics and rescuers. This allows for prompt and comprehensive rescue and first aid to the injured.
The approach to the construction of fire units has been revised. For example, since August of this year in Astana there has been functioning a fire department built in 3.5 months from fast-erecting structures. This principle of construction will be introduced in all regions. A total of 121 fire stations are required across the country.
As part of strengthening logistical support, for the first time 2 firefighting drones designed to extinguish high-rise buildings are being purchased.
This year we are buying 728 units of special vehicles, over 18 thousand equipment and gear at the expense of the republican and local budgets, as well as in leasing. The first priority is to distribute the equipment for the needs of district units. The second is practical training of the population through drills and exercises. For example, we hold drills on conditional fires of multi-storey buildings with practical evacuation of residents. In total, more than 250 such exercises have been held in the republic," the minister said.
For the first time, we are planning drills involving helicopter equipment for residents of a high-rise apartment block in Astana. The work is gradually teaching citizens self-rescue skills in case of fires, thereby increasing the level of safety culture.
Third, it is prevention in the residential sector of the country.
I would like to note that the private residential sector is beyond the control of the Ministry, we are limited only to recommendations when conducting door-to-door rounds. At the same time, often the population refuses to be consulted, not letting them into the houses. Nevertheless, we inform citizens about fire safety measures through SMS mailings, chat rooms of houses and SIS. At the same time, we are solving the issue of authorising the Ministry to accept residential high-rise buildings and objects with mass stay of people into operation," Chingis Arinov reported.
According to statistics, the main cause of fires and deaths of citizens is the malfunction of heating systems. In particular, stove heating, which is mainly in the homes of socially vulnerable population. According to the Minister, often in this category there are children's group deaths due to leaving children without adult supervision.
Given these facts, the socially vulnerable category - families with many children, persons with disabilities, lonely elderly - are under special control of the Ministry of Emergency Situations. Today there are over 100 thousand houses on the books. Together with akimats and volunteers, targeted assistance is provided to all of them - installation of fire detectors and, if possible, repair of heating systems and cleaning of chimneys. Since 2021, over 107,000 sensors have been installed, which allow early warning of the danger of carbon monoxide. 55 alarms have been registered, thus preventing the death of 248 people.
The next reason is improper use of household gas, which can lead to explosions. The population refuels gas cylinders at petrol stations in violation of the Law, while the largest part of them is subject to disposal.
According to our calculations, 348 thousand gas cylinders are to be replaced. Here the housing commissions under akitams should strengthen control over compliance with safe operation of gas-consuming systems and gas equipment of household and communal consumers. I would like to note that the heating period is under special control. Subdivisions of the Ministry are ready to respond to emergencies," Chingis Arinov summarised.
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Kazakhstan spends 500.7bln tenge on pharmacological support
Minister of Healthcare Akmaral Alnazarova reported on the measures taken to ensure pharmacological support of the population at today’s meeting of the Government, Kazinform News Agency reports.
According to her, 474 billion tenge is spent from the national budget on the pharmacological support of outpatients and hospital patients. Local budget spending is reported to be at 26.7 billion tenge.
251 billion tenge is allocated for the provision of 3.5 million outpatients with pharmaceuticals in 120 ICD codes.
As for hospital patients, pharmaceuticals for them are bought in accordance with the centralized and independent procurement as per the National Formulary of Kazakhstan.
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