Astana, September 13, House of the Mazhilis. At the plenary meeting, Mazhilis deputies на пленарном заседании  approved in the first reading amendments on improving the sphere of subsoil use, an export credit agency and promoting the export of non-commodity goods, and also ratified the Agreement on the establishment of the Eurasian Reinsurance Company.

The draft law “On introducing amendments and additions to the Code of the Republic of Kazakhstan “On Subsoil and Subsoil Use” on improving the sphere of subsoil use”, initiated by the deputies, was presented to the Mazhilismen by a member of the Committee on Ecology and Natural Resources, Dyusenbay Turganov. He noted that the amendments are aimed at increasing the investment attractiveness of projects in the field of geological exploration and production of hydrocarbons, optimizing the procedure for conducting state examination of basic project documents, as well as reducing financial and administrative costs for subsoil users in the process of field development.

“Among the main innovations of the bill is the granting of the right to a subsoil user to refuse from drilling wells that are unpromising based on the results of seismic exploration without imposing penalties on the part of the state. This also includes an accelerated transition to geological exploration, taking into account the introduction of a notification procedure when developing and approving exploration projects at the stage of onshore exploration,” Dyusenbai Turganov said.

In general, according to him, the bill will make it possible to quickly switch to practical geological exploration work, reduce the time of all kinds of examinations by 8-12 months and eliminate administrative costs for procedures by more than 2 times - from 120 to 50 days.

A report on amendments on the issues of the export credit agency (ECA) and promotion of the export of non-commodity goods (works, services) was made by the acting. Minister of Trade and Integration Kairat Torebaev. He said that ECA is planned to be created on the basis of KazakhExport Export Insurance Company JSC. The agency will take the form of a joint stock company with 100% state participation. It is proposed to assign specific functions to it, for example, insurance, reinsurance, guaranteeing and financing of export operations, as well as providing certain measures of service support for exporters.  

“The adoption of the law will increase the efficiency of state support for Kazakh exporters and create new jobs by increasing export-oriented production. The export basket will also increase budget funds due to an increase in taxes paid by export-oriented industries,” Ruslan Kozhasbaev, a member of the Committee on Economic Reform and Regional Development, explained in his co-report.

Changes and additions will affect 10 legislative acts, including the Civil, Budget Codes and a number of relevant laws. Amendments will be made to the Tax Code in a separate draft.

Following the discussion, deputies approved both bills in the first reading. The working groups will continue their work as part of their preparation for the second reading.

The Mazhilismen also adopted and sent to the Senate a draft law on the ratification of the Agreement on the Establishment of the Eurasian Reinsurance Company (EPC). The creation of the EIC can have a beneficial impact on the development of export-import relations of the participating countries of the Eurasian Economic Union, increasing the volume of investments, expanding trade and economic relations of the parties with third countries through activities in the field of export credit reinsurance.

In addition, the deputies discussed the Plan of main activities for the implementation of the powers of the Mazhilis of the VIII convocation for the second session and adopted a number of new ratification bills. Among them are agreements on cooperation in the field of sanitary protection of the territories of the CIS member states and between the governments of Kazakhstan and China on the exchange of information regarding citizens of both states.

At the end of the plenary session, the Mazhilismen sent a number of parliamentary requests to the responsible government bodies on current social and economic issues. All of them are available официальном сайте and Telegram-канале on the official website and Telegram channel of the Mazhilis.

Press service of the Mazhilis – 24-38-22. Courtesy of Zh. Zhumabekov