Kazakhstan
Overview and role of the EITI
Kazakhstan is rich in natural resources and is a leading producer of oil. The country also produces gas, coal and metal ores. The extractive sector plays an important role in the country’s economy, accounting for nearly 43% of total tax payments. Oil and gas accounted for 14,1% of the country’s GDP in 2021.
The national priorities include doubling the exploration areas in Kazakhstan. The strategic partnership with Kazakhstan, EU and USA on critical minerals has become a focal point in numerous international forums. Kazakhstan owns a significant number of natural resources, encompassing over 20 critical raw materials, among them tungsten, lithium, and rare earth elements. EITI could contribute to Kazakhstan’s anticorruption agenda and to public debate on energy transition and use of critical minerals.
Economic contribution of the extractive industries
- 42.7%
- to government revenues
- 14.1%
- to GDP
- 2.25%
- to employment
Innovations and policy reforms
The EITI multi-stakeholder group is working on gradual transition towards systematic disclosure to explore innovative approaches to make the EITI more relevant and useful. A lot of extractives data is already available through government and company websites. For example, ESGU portal provides timely information on tax and non-tax payments from the extractive sector as well as quasi-fiscal expenditures. In 2024, EITI Kazakhstan conducted a mainstreaming feasibility study on EITI reporting through government systems.
Extractive sector data
Commodity production
Revenue collection
Revenue distribution
Top paying companies
Extractives sector management
Tax and legal framework
Kazakhstan’s extractive sector is mainly regulated by the Code on Subsoil and Subsoil Use. Revenues are mainly collected through direct taxes from extractive companies, in accordance with the Tax Code.
The oil and gas sector is mainly regulated by the Ministry of Energy, while the mining sector is mainly regulated by the Ministry of Industry and Construction.
License and contracts
Exploration and production licenses for solid minerals are issued on a first come first serve basis and granted through an e-licensing web portal. Hydrocarbon and uranium exploration and production rights are issued through tender process and are regulated by contracts. The Ministry of Energy administers contracts for hydrocarbons, coal and uranium projects, while the Ministry of Industry and Construction approves mining projects.
The Code on Subsoil and Subsoil Use, approved December 2017, introduces a simplified process for license and contract allocation, including through online services, and more flexible technical and financial criteria.
An interactive license cadastre map, hosted by the Committee of Geology and Subsoil, includes information on license holders, types, coordinates, and commodities being produced. A list of issued licenses is published on the Ministry of Industry and Construction website.
Some contracts are published on the Resource Contracts Portal.
Beneficial ownership
The Code on Subsoil and Subsoil Use mandates extractive companies to disclose information on the persons and (or) organisations that directly or indirectly control the entity.
In 2019, the Ministry of Industry and Infrastructure Development began disclosing beneficial ownership data on its website, including names of beneficial owners and their level of ownership. However, the data only covers the mining sector and new licenses.
Revenue distribution
The revenues from oil and gas companies are allocated to the National Fund, except for export customs duties that are allocated to the national budget. The national budget receives transfers from the National Fund, and then transfers funds onwards to local budgets. The amount to be transferred is approved by the Budget Law annually. The revenues from mining companies go to the national and local budgets, depending on the type of tax or payment.
Revenue and expenditure reports are regularly published by the Ministry of Finance in the Statistical Bulletin.
EITI implementation
Governance
Kazakhstan EITI is administered by the Kazakhstan Multi-Stakeholder Group (MSG), also known as the National Council of EITI Stakeholders (НСЗС). The MSG is hosted by the Ministry of Industry and Construction. It is comprised of representatives from government, parliamentarians, industry and civil society.
Timeline
Government announces commitment to join the EITI
Multi-stakeholder group is formed
Kazakhstan joined
2005 EITI Report published
Report
2006 EITI Report published
Report
2007-2008 EITI Report published
Report
First Validation – Found to be close to compliant
2009 EITI Report published
Report
Candidate status renewed
Second Validation – Found to be compliant
2010-2011 EITI Report published
Report
2012-2013 EITI Report published
Report
2014 EITI Report published
Report
2015 EITI Report published
Report
2016 EITI Report published
Report
Validation
2017 EITI Report published
Report
Validation
Validation documents
2019 EITI Report published
Report
Suspension
Board decision
2020-2021 EITI Report published
Report
Validation
Kazakhstan was found to have made meaningful progress in implementing the 2016 EITI Standard in August 2019, following its second Validation. Kazakhstan fully addressed three of the 10 corrective actions identified in its previous Validation.
For more information about planned Validations, consult the Validation schedule.