In keeping with GRATA’s practice of informing clients regarding important legal developments that might influence their business, we draw your attention to the following recent changes in Kazakhstani financial legislation that occurred during the period of January - March 2012.

General overview of Kazakhstan in World Mineral Industry. - Kazakhstan ranks second only to Russia among the countries of the CIS in its quantity of mineral production. It is endowed with large reserves of a wide range of metallic ores, industrial minerals, and fuels, and its metallurgical sector is a major producer of a large number of metals from domestic and imported raw materials.

Environmental inspections: practical recommendations for subsoil users on supporting and appealing environmental inspections (as amended by the Law of the RoK ‘On state control and supervision in the Republic of Kazakhstan’ dated 06 January 2011).

In line with GRATA Law Firm’s practice of keeping clients informed of important legal developments that might influence their business, we would like to draw your attention to the recently enacted Law of the Republic of Kazakhstan 'On Supporting the Use of Renewable Energy Sources' aimed at the creation of legal framework for the use of renewable energy sources in Kazakhstan.

On 1 March 2011, the President of the Republic of Kazakhstan has signed a new Law ‘On State Property’ No. 413-IV (hereinafter – the ‘Law’) with effective date 10 March 2011. The Law defines the principles for regulating relations in the area of state property management.

Law of the Republic of Kazakhstan 'On Subsoil and Subsoil Use': a head for the processing of associated and natural gas. One of the most serious environmental and economic problems connected with oil operations in Kazakhstan is the refusal to flare associated and natural gas in fields and the transition to its processing. Even in the recent past, gas flaring has been a part of the process of oil companies in Kazakhstan and occurred in almost all fields.

In line with GRATA Law Firm’s practice of keeping clients informed of important legal developments that might influence their business, we would like to draw your attention to prospective changes in Kazakh legislation in connection with the new draft Law “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan Relating to Environmental Issues”, aimed at engagement of Kazakh companies to implementation of the Kyoto Protocol mechanisms.

GRATA Law Firm has provided sophisticated legal services to leading enterprises in Kazakhstan and Central Asia since 1992. In line with GRATA Law Firm’s practice of keeping clients informed of important legal developments that might influence their business, we would like to draw your attention to the below description of key regulations relation to the most significant areas of Kazakhstani industry – subsoil use, power and construction.

In line with GRATA Law Firm’s practice of keeping clients informed of important legal developments that might influence their business, we would like to draw your attention to the recent changes in Kazakh legislation in connection with the adoption of the new Law 'On State Property'.

Following the financial crisis, the Government of Kazakhstan together with AFN (a financial regulator, recently replaced in its role by the National Bank) has introduced amendments to legislation designed to address issues which arose during the crisis and to enhance financial legislation and the financial market of Kazakhstan. Two main laws have been developed (one of which has already come into effect, while the other is yet to be passed).

1. Introduction - The 'Due Diligence' in English means ensuring the due good faith. Due Diligence is a comprehensive study of the operating, financial and legal activities of a company and the totality of relations within the company and its interaction with the environment where it operates. Such study can form an objective view on the company.

Reasons for termination of a contract by a subsoil user. In practice, though rather seldom, there are such cases when due to certain reasons a contractor (subsoil user) decides to terminate the subsoil use contract. Such a situation may arise, for instance, in the following cases:

1. General Provisions - On 21 July 2011, the Law of the Republic of Kazakhstan on Special Economic Zones (hereinafter - the 'Law') has been enacted.

Energy sector of Kazakhstan is currently operating under difficult conditions when there is a gradual depletion of conventional energy sources (oil, gas, coal, production of which is an expensive business), on the one hand, and developing and growing of the world entered policy of the eco-friendly power production with the use of renewable energy sources, on the other hand.

During the recent one and a half year we could view a sharp increase in the interest of subsoil users and their contractors to the issues of Kazakhstani content in the procurement of goods, works and services. In the first instance it is connected with changes of subsoil and subsoil use legislation, as well as with toughening of the policy held by the Kazakhstan Government with regard to development of Kazakhstani content.

A choice of the governing law of any agreement is the most important element. In Kazakhstan, sometimes the parties are not free to select any governing law.