Kazakhstani Content Requirements Relating to Purchasing Goods, Works and Services

Kazakhstani Content Requirements Relating to Purchasing Goods, Works and Services

On 6 July 2010 a new Law on Subsoil and Subsoil Use (hereinafter – the ‘Subsoil Law’) was adopted in Kazakhstan. The Subsoil Law provides for a number of important requirements on the local content relating to purchasing goods, works and services by subsoil users.

Subsoil users in their practice often face with the issues regarding to the methods of local content calculation, use of different standards related to local content and different kinds of purchases, as well as the issues of preparing annual, medium-term and long-term programs of purchase of goods, works and services. Foreign subsoil users are also often interested in the methods of structuring of personnel policy for the purpose to keep qualified foreign employers while complying with the balance of local content. 

Experience:

• advising on the issues of applying the procedure for purchasing goods, works and services by subsoil users;
• advising on the issues of methods of local content calculation in course of purchasing goods, works and services;
• advising on different mechanisms for structuring  of personnel policy of subsoil users (retaining foreign employees in case of increasing the local content percentage);
• drafting additional agreements to the subsoil use contracts in connection with the changes in the percentage of local content.

Publications:

• Review of the Resolution No. 1139 of the Government of the Republic of Kazakhstan on “Adoption of the Rules of Acquisition of Goods, Works and Services in the Carrying Out of Subsoil Use Operations” of November 28, 2007
• Kazakh Law Amendments related to local content
• Kazakhstan content issues in state - subsoil user relationships
• The changes in the investment climate due to the adoption of the new law on subsoil and subsoil use