The State Property Fund of Ukraine has sold the Murafskiy quarry in the Vinnytsia region for 25 million UAH. Three investors participated in the trade.
As a result of the auction, the initial price grew 5-fold. In addition to 25 million UAH, the winner of the auction has to pay more than 11 million UAH of the company’s debts to the budget and employees.
Limestone extraction at the quarry was suspended 10 years ago.
From January to July this year, the Republic of Kazakhstan extracted a total of 65 million tons of hard coal, encompassing both brown coal and coal concentrate, as reported by energyprom.kz. This figure reflects a decrease of 2.1% compared to the previous year. The primary coal mining regions in the country, Pavlodar and Karaganda, contributed significantly, accounting for 92% of the nation’s overall coal, lignite, and coal concentrate production. In Pavlodar, coal production reached 39.2 million tons, marking a modest increase of 0.5% from the previous year, while the Karaganda region produced 20.6 million tons, representing a decrease of 3.3%. The Abay region secured a place in the top three leading regions with a production of 4.2 million tons, albeit experiencing a 10.3% decline year-over-year.
For the entire year of 2022, Kazakhstan produced 117.8 million tons of coal, indicating a 1.4% increase from the previous year. Directly, 60.4 million tons of hard coal were extracted, a decrease of 1.7% compared to the preceding year. This production also included 4.2 million tons of coking coal, marking a 6% decrease, and 8.9 million tons of energy coal, a 4% decrease. Brown coal (lignite) production decreased by 0.9%, reaching 2.6 million tons, while coal concentrate production experienced a substantial 12.4% decline, totaling 2 million tons.
During the January-June period of this year, Kazakhstan exported 13 million tons of coal, valued at $370.8 million. In terms of quantity, this represented a 20.4% reduction in exports, and in terms of value, an 18.9% decrease. Within these exports, 8.3 million tons of coal were directed to CIS countries, marking a 24.2% decrease compared to the previous year. Notably, Russia emerged as the primary importer of coal from Kazakhstan, accounting for 7.4 million tons and a 27.2% decrease year-over-year. The top three importing countries also featured Kyrgyzstan and Uzbekistan. The rest of the world received 4.7 million tons of Kazakh coal, experiencing a 12.7% decrease from the previous year. In monetary terms, these exports declined by 12.3%, amounting to $264 million. Among these exports, prominent importers of Kazakh coal included Poland, Latvia, and Turkey.
This hefty penalty was imposed due to a significant leak of waste materials into the Philippovka, Tikhaya, and Ulba rivers within the Eastern Kazakhstan region. This unfortunate event has drawn the attention of environmental regulators and raised serious concerns about the ecological repercussions.
The incident was triggered by a rupture in a pulp pipeline at the tailings facility of the Riddar Ore Enrichment Plant, which is operated by Kazzinc. The rupture led to the release of 1350 cubic meters of slurry, a byproduct of ore processing, onto the surrounding terrain. The natural topography allowed these liquid waste materials to flow into the Philippovka River, eventually merging with the Tikhaya River and, subsequently, the Ulba River. This chain reaction significantly deteriorated the quality of surface water and inflicted harm upon the local natural habitat.
Environmental specialists who conducted investigations in the aftermath of the waste leakage discovered alarming increases in the concentrations of various substances:
These findings underscore the gravity of the environmental impact caused by Kazzinc’s negligence in preventing and addressing the waste leakage.
Efforts to rectify the environmental damage were swift and comprehensive. The spilt slurry was promptly collected from the affected riverbanks and terrain. Following this, a thorough cleansing of the affected areas was carried out, including the restoration of the fertile soil layer. As a further step towards environmental restitution, perennial grasses were sown to promote ecological recovery.
The collected liquid pulp was temporarily stored in an emergency pond at Pumping Station No. 5. It will later be transported to the Talovskoye tailings storage facility for safe and regulated disposal. Importantly, bio testing of the water did not reveal any toxic impact on local biota, providing some assurance regarding the immediate environmental consequences.
Kazzinc has committed to compensating for the environmental damage it caused. By the end of October, the company aims to restore the Shulbinskoye Reservoir by introducing 1400 juvenile fish of the carp family. Additionally, the company is obligated to pay administrative fines totalling 49.6 million Kazakhstani Tenge.
In response to the incident, the Riddar Police Department has submitted a formal complaint. If authorities decline to initiate criminal proceedings against Kazzinc, the company could face an additional fine of 6.9 million Kazakhstani Tenge for soil contamination.
It’s worth noting that this is not the first time Kazzinc has been embroiled in environmental controversy. In July of this year, the Philippovka River in Eastern Kazakhstan turned a milky white, a phenomenon attributed to a rupture in a pipeline used for transporting ore or waste from the mining industry (known as a pulp pipeline) at the Riddar Ore Enrichment Complex operated by Kazzinc. This spill of pulp materials also entered the river, causing further environmental distress.
In a separate incident in 2021, “Kursiv” reported that Kazzinc had discharged polluted water into the Bukhtarma River, resulting in environmental damages exceeding 8 million Kazakhstani Tenge.
Kazzinc stands as one of Kazakhstan’s major non-ferrous metallurgical enterprises, encompassing the entire production cycle of zinc, lead, copper, gold, and silver ingots. This extensive process begins with ore extraction and culminates in the production of refined metals.
The company comprises five industrial plants, with its headquarters situated in Ust-Kamenogorsk. The primary shareholder of Kazzinc is the Anglo-Swiss trader Glencore, while the remaining shares are held by the national company “Tau-Ken Samruk.”
In conclusion, the recent environmental incident involving Kazzinc underscores the importance of robust environmental regulations and oversight in Kazakhstan’s industrial sector. It serves as a reminder of the significant ecological consequences that can result from inadequate waste management practices, emphasizing the need for continuous monitoring and remediation efforts to protect the country’s natural resources and biodiversity.
The President issued a series of concrete directives aimed at implementing new environmental legislation and preserving the country’s precious natural resources.
One of the primary directives from President Tokayev was to place particular emphasis on the implementation of a comprehensive plan to reduce emissions from major industrial facilities. This directive comes as a part of Kazakhstan’s commitment to mitigating its environmental footprint and fostering sustainable industrial practices. President Tokayev has assigned a dedicated oversight team to monitor the progress of this initiative closely. The plan involves rigorous monitoring and the deployment of automated systems to track emissions at these facilities, ensuring compliance with environmental regulations.
Recognizing the need for systemic improvements, President Tokayev emphasized the necessity of enhancing the material and technical base of organizations under the Ministry’s purview. The goal is to facilitate the swift implementation of early wildfire detection systems within the country’s national parks. Additionally, there is a focus on upskilling the workforce engaged in forestry management. These measures are pivotal in preventing and managing forest fires, a critical concern for preserving Kazakhstan’s diverse ecosystems.
In a bid to combat deforestation and promote ecological balance, President Tokayev highlighted the importance of launching a comprehensive reforestation program. This program aims to significantly increase tree-planting efforts across the country. Furthermore, the President stressed the need for holistic approaches to address the issue of illegal dumping and unregulated waste disposal sites, commonly referred to as ‘stihii’ dumps.
The metal products were stored at the Ukrainian customs warehouses before the large-scale invasion. The customer was a Ukrainian enterprise.
Metal was produced by a company of the sanctioned Russian billionaire Andrey Komarov. He was sanctioned by the National Security and Defense Council of Ukraine.
In May, Ukrainian entrepreneurs using various shell companies tried to clear Russian metal to no avail, thanks to the reaction of the law enforcers.
The government commission’s ongoing investigation into a group accident stemming from a fire at the Kazakhstanskaya mine was reported by the Ministry of Emergency Situations of the Republic of Kazakhstan. According to the agency, current efforts have led to the completion of thirteen insulating jumpers in the affected section of the mine, with work continuing on the installation of eleven more. On-site, there are 27 mine rescuers and 45 mine workers, with the rescuers also actively involved in firefighting. The gas levels are being closely monitored, and there have been no adverse changes in temperature readings at the work areas.
Recalling the incident that occurred on August 17, where a conveyor belt in the mine caught fire at 10:05, an emergency response plan was swiftly enacted. At the time, 227 individuals were underground, of whom 222 were successfully evacuated, but tragically, five lost their lives. A special commission, comprising representatives from relevant state bodies, was established to investigate the incident. Furthermore, a criminal case has been initiated under Article 277, Part 3, of the Criminal Code of the Republic of Kazakhstan, pertaining to violations of safety regulations during mining or construction work.
A number of examinations were appointed as part of the investigation of the accident at the Kazakhstanskaya mine of the coal department of ArcelorMittal Temirtau JSC. They will be conducted by Kazakh and international organizations.
Condor Energies Inc. has released its results from the second quarter of this year (Q223), including financial statements and management discussion and analysis. These documents are available on the company’s website.
The report has included the highlights of Q2. In July of 2023, Kazakhstan gave Condor a 100% working interest for six years in a 37,300-hectare lithium brine mining license. The company is awaiting final approval from the government of Kazakhstan for its 95% working interest in a separate lithium brine mining license in Kazakhstan.
In June, Condor created a US$5.9 million three-year term loan facility, with interest at 9.0% per annum, that is intended for working capital needs and corporate purposes.
Condor is undertaking final negotiations in order to run the day-to-day operations of eight gas-condensate fields in Uzbekistan. In Kazakhstan, Condor is still attempting to lock in a long-term LNG feed gas supply contract.
Prior to the government of Kazakhstan granting Condor a lithium mining license, in July of 2023, a well drilled on a previously acquired license found brine deposits that contained concentrations of 67 milligrams per liter of lithium in carboniferous aged intervals.
A 670m column of lithium brine has been identified using historical records and data from core drilling. This well touched the top of Denovian-aged sediments. Reservoir sands that were found were not tested.
Condor’s lithium licenses are ideally positioned between Europe and Asia. This location provides access to robust lithium markets. Condor’s goal is to produce lithium through closed-looped direct lithium extraction technologies, which is more cost-effective than other lithium extraction technologies.
Analyst Malcolm Shaw of Hydra Capital identified Condor Energies as a company worth looking into.
According to Shaw, “It took flight after the company announced that it is in advanced discussions with respect to taking over eight gas fields in Uzbekistan, along with an exploration block or two.”
Condor is unique because its goal is “to revitalize Soviet-era fields with standard Western development practices.” He specifically compared it to the early success of PetroKazakhstan, which sold for CA$4 billion.
Kazakh authorities announced on August 22nd that a political decision has already been made regarding the departure of the company “ArcelorMittal Temirtau” (AMT) from the Republic, and negotiations are underway with the shareholders. According to some information, one of the potential buyers could be the Russian mining and metallurgical company “Severstal.” “Kursiv” interviewed experts and found out to whom else AMT assets could be sold and for what amount.
The reason for discussions about the fate of AMT was the accident on August 17th at the “Kazakhstanskaya” mine (owned by AMT), where five miners died. Following this, Kazakh authorities and the public began to question AMT’s presence in Kazakhstan. President Kasym-Zhomart Tokayev cast doubt on AMT’s continued stay in the country. Kazakhstan’s Prime Minister Alihan Smailov stated that the owners of the enterprise are to blame for the tragedy in the AMT mines. He mentioned that after a similar incident a few years earlier, AMT management had assured that they would do everything to ensure industrial safety, labor safety, and investment in production modernization. However, according to the Prime Minister, these commitments were not fully fulfilled.
In September 2021, AMT signed a memorandum of understanding with the government of Kazakhstan, under which AMT was supposed to invest at least $3 billion over the next 10 years. Smailov expressed outrage that people continue to die in AMT facilities, leading to the question of changing ownership of the enterprise.
Over the years, AMT has seen more than a hundred miners lose their lives at the company. “Kursiv” compiled a chronology of major tragedies that have occurred in the metallurgical company’s mines. The highest level of injuries and deaths occurred at KarMet, under whose management the “Kazakhstanskaya” mine, where five miners died, is located.
On Tuesday, August 22nd, the Minister of Finance, Erulan Zhamauvayev, told journalists that the authorities are negotiating with AMT shareholders about their departure from Kazakhstan, and a political decision on this matter already exists. Zhamauvayev added that the first Deputy Prime Minister of Kazakhstan, Roman Sklyar, is handling negotiations with potential buyers.
“Negotiations on a large enterprise should be conducted by specific individuals because it should be a serious negotiating process. Therefore, if everyone comments on it at their own level incompetently, it will be wrong. Moreover, it can affect the negotiation process. Therefore, the statement has already been made. I think there is a political decision (regarding the departure of ArcelorMittal from Kazakhstan), so we will work on it,” Zhamauvayev assured.
What risks does Mittal’s withdrawal from Kazakhstan pose?
Financial analyst Andrey Chebotarev doubts that the departure of Lakshmi Mittal from Kazakhstan will be quick and straightforward. The expert claims that Kazakhstan could face another Anatol Stati (an entrepreneur from Moldova) situation, where legal battles have been ongoing for years.
“To begin with, it is necessary to understand the exit strategy of the current investor. I sincerely hope that the situation with the current shareholder will be resolved quickly and painlessly. I hope that the path of aggressive nationalization will not be chosen, as it could deter future investors from Kazakhstan. We must demonstrate as smoothly, transparently, and openly as possible that the current investor violated investment agreements, failed to fulfill them, and that’s why the contract is being terminated. Not because we want a piece of the pie. I really hope that the desire for quick victories does not threaten our investment climate,” says Chebotarev.
Political analyst Petr Svoik, also known as the initiator of political integration between Kazakhstan and Russia, explains that in the event of Lakshmi Mittal’s departure from Kazakhstan, two major problems arise concerning the fate of KarMeta (Karaganda Metallurgical Plant owned by “ArcelorMittal Temirtau”). First, KarMeta currently operates within Mittal’s global network of enterprises and serves as a supplier of raw materials to other productions. After Mittal’s departure, Kazakhstan will lose these supplies and will have to reorient to something else. Second, the plant has been operated to its limits to extract profits from Kazakhstan.
“Let’s not deceive ourselves. If we sold it to a foreign investor in the first place, they are interested in not investing foreign money into the Kazakh plant but in extracting as much as possible to increase profits, including through savings on labor costs and modernization, as we have observed. The new buyer, in addition to solving the issues of integrating KarMeta’s products into other supply chains, must also find a substantial amount of money to upgrade KarMeta,” the expert claims.
Who can buy AMT assets? According to Chebotarev’s opinion, Kazakh companies, although technically capable of acquiring such assets, are unlikely to be interested. AMT requires significant investments, the analyst added.
“This is a rather heavy asset that requires a lot of investment. Furthermore, it’s unclear at what stage the current investor will exit. Therefore, I believe it will be some kind of strategic foreign investor or a consortium of investors under someone’s unified management,” the expert expressed.
Russian financial group “Finam” analyst Alexey Kalachev doubts the feasibility of Severstal’s purchase of AMT. According to him, Severstal has not expressed a willingness to acquire foreign assets, even in “friendly” jurisdictions.
“ArcelorMittal” is an international corporation. Therefore, for such transactions, it likely needs to obtain many approvals, including from regulators in unfriendly-to-Russia countries. Alexey Mordashov, who controls Severstal, is under sanctions that also apply to the companies he controls. Such a deal may simply not receive the necessary approvals from European regulators, Kalachev believes.
In turn, Petr Svoik believes that Severstal is a “principled candidate” as a potential buyer of AMT assets. “Samruk-Kazyna” could be an “intermediate option” in terms of transitional management, the political scientist added.
“FNB is in debt, deep in foreign currency debt. So, who could help it deal with its debts? This is a bad option unless it’s forced. As for Severstal, it’s more realistic. The burden of being under sanctions is as much a problem as it is a solution. As part of Russia’s policy to regain its technological sovereignty, there is certainly a task to completely reorient black and non-ferrous metallurgy toward its own market or the markets of friendly countries,” says the political scientist, adding that KarMet can be equipped with more technologically advanced products for the Russian, local, and Chinese markets.
Financial analyst Rasul Rysmambetov is not sure that AMT will be transferred to “Samruk-Kazyna” because the fund lacks the expertise and authority to manage such large projects. He explained that “Tau-Ken Samruk” (a unit of “Samruk-Kazyna”) does not interfere in the operations of mining and metallurgical companies in which it holds stakes but is either a minority shareholder or anchor investor. Rasul Rysmambetov also mentioned an approximate amount for which AMT could be sold.
“It could cost around $100 million. But there will also be Due Diligence because the expenses are very high. I would deduct from the price the miners who suffered and are receiving payments. In any case, the amount will be significant,” the expert noted.
According to him, the Kazakh authorities announced a tender for the purchase of AMT through Minister Zhamaubaev.
“There are Chinese, Indians, and Russians with Severstal. It’s hard to say which of them is more likely. I think this is not a matter of two weeks but one or two months,” Rasul Rysmambetov believes.
Financial analyst Arman Beisembaev also named China and India among potential buyers. However, he claims that if Mittal manages to acquire this asset, it will be handed over to the Russians, not directly but through various “intermediary” companies or a series of funds.
“Somebody will buy it, and the ultimate beneficiary will be unclear because they could fall under sanctions, and Kazakhstan is also afraid of that. But it is highly likely that the ultimate beneficiaries will be Russians. I cannot say that this is bad for Kazakhstan from an economic point of view. For example, Russian ‘EuroChem’ has been operating in Kazakhstan for many years, and ‘Kazatomprom’ also has a share of Russia [the company has joint ventures with ‘Rosatom’ structures],” Arman Beisembaev said.
He reminded that after the full-scale Russian invasion of Ukraine in 2022, the neighboring country began losing the European market. Now they are trying to reorient themselves to the East and South.
“Russia’s economic and political strategy is imperial in terms of economic behavior. It expands its sphere of influence. Since it practically lost the European market, it failed to take Ukraine, and Belarus is practically in its pocket. The nearest strategy is Kazakhstan,” the expert explains.
According to Beisembaev, his assumptions are based on the volume of Russia’s external investments. Until 2014, Russia invested the most in Ukraine – about $17 billion, with most of this money going to Kiev and the Kiev region. After 2014, Russia began investing the most in Kazakhstan, the analyst claims.
“Russia acts towards Kazakhstan exactly as it did towards Ukraine before 2014 – it employs soft power, economic influence, investments, and asset acquisition. Russians are already in ‘Kazatomprom,’ coal, uranium, and gas industries. The strategy is exactly the same as with Ukraine, and if we object, war is guaranteed,” Arman Beisembaev believes.
The analyst notes that AMT assets are “quite attractive,” so Kazakhstan can sell them with a premium and make a good profit. However, the buyer will have to invest in infrastructure and security, which will naturally be included in the contract terms and will affect the final cost. “I can’t say how much, but it depends on the will of the state. No investor wants to invest in security unless they are required to,” the analyst concluded.
The Failed Deal Between Severstal and Arcelor
In May 2006, the international company Arcelor S.A., at that time one of the world’s largest steelmaking companies, announced a merger with the Russian metallurgical company Severstal, owned by Alexey Mordashov. He was supposed to receive 295 million issued shares of Arcelor, equivalent to 32% of the share capital. In return, Arcelor would have received from Mordashov all his shares in Severstal (82%), including Severstal North America, mining assets, and a stake in the Italian company Lucchini. Additionally, Mordashov was to pay 1.25 billion euros. This deal was intended to thwart the plans of Arcelor’s acquisition by Lakshmi Mittal’s company, Mittal Steel. Currently, Lakshmi Mittal’s fortune is estimated at $16.1 billion.
However, just a month after reaching an agreement with Mordashov, Arcelor and Mittal Steel agreed to merge and expressed opposition to Severstal’s purchase of a stake, even though Mittal’s proposal to Arcelor had been considered hostile before. Thus, Arcelor and Mittal Steel formed the company ArcelorMittal, the world’s largest metallurgical company.
ArcelorMittal owns the steelmaking and mining company ArcelorMittal Temirtau in Kazakhstan. AMT is one of the largest enterprises in the Karaganda region, traditionally accounting for 25% of the total industrial production output. The sole shareholder of AMT is ArcelorMittal Holdings B.V., a public company registered in the Netherlands.
On September 5th, an Uzbekistan-China business forum took place in Tashkent, during which an Uzbekistan-China business forum was held, marking the 10th anniversary of the “Belt and Road” initiative and a conference on cooperation and exchange between China (Shandong) and Uzbekistan.
The aim of these events was to promote joint utilization of the “Belt and Road” opportunities, further strengthen the advantages of cooperation, enhance the level of cooperation, and create a new space for mutually beneficial cooperation at the local level between the Shandong province and Uzbekistan.
The prestigious event was attended by the leadership and responsible persons of “Almalyk Mining and Metallurgical Complex.”
During the event, the Chairman of the Board of “Almalyk Mining and Metallurgical Complex” Abdulla Khursanov and the Deputy General Director of “Shandong Gold Group Co., Ltd” Wang Lizhong signed a memorandum of understanding and cooperation. The document covers issues such as deep processing of copper, zinc, and other metals, mineral resource development, production of new products based on copper, zinc, cadmium, molybdenum, tungsten, and other rare metals.
According to this document, a task was also defined for the joint training of talented technical specialists.
Representatives of this company visited the Almalyk Mining and Metallurgical Complex on September 4th of this year and discussed issues related to obtaining products through the deep processing of copper and other precious metals.
The Chinese guests also visited the observation platforms of the “Kalmakyr” mine and the “Yoshlik I” deposit, as well as the under-construction copper beneficiation plant No. 3, according to the information service of AGMK.
For reference, “Shandong Gold Group Co., Ltd” is a Chinese company specializing in gold mining, ore processing, gold production, mining management, and investments in the mining industry. The company is the second-largest gold producer in China in terms of output.
[vc_row][vc_column][vc_column_text]On September 1, 2023, the Head of State, Kassym-Jomart Tokayev, delivered his annual Address to the people of Kazakhstan and announced numerous changes in the country. To learn more about how the composition of key government agencies has changed and what experts think about it, read the material from the analytical observer of the Kazinform News Agency.
Presidential Assistants and Other Appointments in the Presidential Administration:
For more details on personnel changes in the Presidential Administration, you can refer to the provided link.
Other Appointments:
New Deputy Prime Ministers:
New Leaders in National Bank, Kazatomprom, and National Oncology Center:
“Five New Ministries Kassym-Jomart Tokayev has signed a decree establishing five new ministries in the country:
The Ministry of Ecology and Natural Resources has been reorganized by separating the Ministry of Water Resources and Irrigation from it. The Ministry of Industry and Infrastructure Development has been divided into the Ministry of Transport and the Ministry of Industry. The Ministry of Information and Public Development of the Republic of Kazakhstan has been transformed into the Ministry of Culture and Information of the Republic of Kazakhstan. And the Ministry of Culture and Sports of the Republic of Kazakhstan has been transformed into the Ministry of Tourism and Sports of the Republic of Kazakhstan.
New Ministers Nurzhan Nurzhigitov (born in 1967) was appointed as the head of the new Ministry of Water Resources and Irrigation by the President’s decree. He previously held the position of deputy akim of Zhambyl region.
Erlan Nysanbaev (born in 1961) has become the new Minister of Ecology and Natural Resources. He served as the deputy minister of the department from July 2019 to May 2021 and had previously held the position of deputy minister of agriculture for over five years (2014-2019). Zulfia Suleimenova was accordingly relieved of her position as Minister of Natural Resources.
Marat Karabaev (born in 1987) has been appointed as the head of the newly created Ministry of Transport. He previously held the position of Minister of Industry and Infrastructure Development.
The reorganized Ministry of Tourism and Sports is now headed by Ermek Marzhikpaev (born in 1969). He previously served as the akim of Akmola region.
Aida Balaeva (born in 1974) has been appointed as the head of the new Ministry of Culture and Information. She previously held the position of deputy head of the Presidential Administration (PA).
Kanat Sharlapaev (born in 1981) has become the Minister of the new Ministry of Industry and Construction. He previously held the position of Chairman of the Board and a member of the Board of Directors of the National Managing Holding Baiterek. Among his other positions were Chairman of the Board of Directors of the Housing Construction Savings Bank “Otbas Bank” and Chairman of the Board of Directors of the Industrial Development Fund.
Other Appointments in the Government and Regions Erzhan Sadenov (born in 1968) has become the new Minister of Internal Affairs. He previously served as the Deputy Minister of Internal Affairs. Consequently, Marat Akhmetzhanov (born in 1964) was relieved of this position and appointed as the akim of Akmola region.
Aidarbek Saparov (born in 1966) has been appointed as the new head of the Ministry of Agriculture. He previously held the position of the first deputy minister of agriculture from 2019 to 2022 and was subsequently appointed as the akim of North Kazakhstan region (NKR) starting from December 1, 2022.
Erbol Karashukeev (born in 1976), who held the position of the head of the Ministry of Agriculture, was relieved of his duties and appointed as the akim of Zhambyl region.
A new Chairman of the Committee for Higher and Postgraduate Education of the Ministry of Science and Higher Education (MSHE) was appointed, and it is Gulzat Kobenova (born in 1978). She has worked in various leadership positions within the Ministry of Education and Science of the Republic of Kazakhstan since 2010. Adlet Toibaev (born in 1982) has been appointed to lead the Committee for Quality Assurance in Science and Higher Education.
Gabit Syzdykbekov (born in 1989) has been appointed as the new akim of Shymkent. From September 2019 to July 14, 2021, he served as the Extraordinary and Plenipotentiary Ambassador of the Republic of Kazakhstan to the Republic of Serbia.
Residents of the North Kazakhstan Region (NKR) are still waiting for their new regional leader.
Expert Opinions According to experts, a significant portion of the new appointments in the country’s government demonstrates a trend towards strengthening it with professionals. This opinion was shared by Kazakhstani political analyst Daniar Ashimbayev.
“58-year-old Akim (Governor) of Akmola Region, Ermek Marzhikpaev, has been appointed to head the new Ministry of Tourism and Sports. Until today, he was the longest-serving akim of the region, known for his good and adequate practices. So far, most of the appointments in the government indicate a trend towards strengthening it with professionals,” noted the political analyst in his Telegram channel.
He added that Svetlana Zhakupova, a 55-year-old who had been appointed as the Minister of Labor and Social Protection of the Population, previously held the position of Commissioner for the Rights of Socially Vulnerable Population Categories under the President earlier this year.
According to him, Serik Zhumangarin and Tamara Duisenova were relieved of their positions as deputy prime ministers to focus on coordinating the work of the growing number of ministries.
Aida Balaeva, an experienced practitioner and political heavyweight who previously served as Deputy Head of the Presidential Administration, has been appointed to head the new Ministry of Culture and Information—the government’s main ideological agency. According to the expert, this appointment indicates that the President has decided to shift practical work to the government.
“So, Aida Balaeva’s new appointment is not a demotion but effectively just a change in the job title,” the political analyst added.
Daniar Ashimbayev noted that Marat Karabaev, the former head of the Ministry of Industry and Infrastructure Development (MIID), now leads the new Ministry of Transport. Arman Shakkaliev, a 43-year-old former first deputy, has been promoted to the position of Minister of Trade and Integration. Before this, he headed the Committee for Technical Regulation and Metrology and was a member of the Eurasian Economic Commission (EEC) board.
The political analyst also shared his opinion on the appointment of the new head of the Ministry of Internal Affairs (MIA).
“The new head of the MIA is 58-year-old Erzhan Sadenov, a native of East Kazakhstan Region (VKO), who rose through the ranks from an investigator to the head of the Ust-Kamenogorsk Internal Affairs Directorate. He was the first deputy of the Department of Internal Affairs of Mangystau Region, headed the Department of Internal Affairs for Transport, the police in Akmola Region, and the capital. For the past one and a half years, he served as the deputy minister,” the expert noted.
President Kassym-Jomart Tokayev has given a series of assignments to the new Minister of Internal Affairs, including continuing the development of a service-oriented model and improving interactions with the public, as well as adjusting the system for protecting the rights of minors.
Overall, according to experts, the track records and experience of the new appointees indicate a societal demand for strong administrators and practitioners.
Regarding the establishment of new government departments, speakers believe that it is a timely decision that addresses current needs and challenges. For example, Kazakhstan has many railways and highways passing through its territory. In the current geopolitical context, many countries, including China, Europe, and others, including Kazakhstan, are seeking alternative routes for transporting their goods. Therefore, the creation of a separate Ministry of Transport will contribute to the country’s economic growth.
According to a geo-ecologist and former deputy of the Parliament of the Seventh Convocation, Aizhan Skakovaya, the functions related to water management were previously dispersed within the government.
“In essence, several ministries dealt with water-related issues. However, considering the current realities, where Central Asia and Kazakhstan, in particular, face water shortages, the issue of managing water resources becomes highly relevant. It should be noted that since 2019, Kazakhstan has ranked near the bottom in global rankings for the efficiency of water resource management. This is, of course, due to the fact that the country is landlocked and receives almost 40-50% of its water resources from neighboring countries. Therefore, given the regional water scarcity threat, water management needs to be taken seriously and treated as a strategic resource,” Aizhan Skakovaya said in an interview with MIA Kazinform.
She added that, with regard to financial and administrative burdens, there should be no problems because these structural units already exist within the government’s framework. And, apparently, this ministry will be created based on the Committee for Water Resources and Basin Inspections, which already exists.
“Plus, water issues are being addressed at the local level by local executive authorities—akimats. And now, I think it is advisable to give more control and emphasize basin inspections because they can solve many issues locally. The focus should be on the integrated water resource management system (IWRM), which is already enshrined in our legislation but will now be strengthened,” Aizhan Skakovaya concluded.
The expert expects that a new, modern, and up-to-date water code that reflects a more practical implementation of IWRM based on international experience will be adopted in the country before the new year.
In general, according to experts, the creation of new departments and the subsequent personnel appointments respond to the current challenges facing the country and the region as a whole.[/vc_column_text][/vc_column][/vc_row]