Transactions with Strategic Objects

Transactions with Strategic Objects

According to the Civil Code of the Republic of Kazakhstan, strategic objects are objects (property) having social and economic importance for the sustainable development of the Kazakh society, possession and (or) use and (or) disposal of which will have an impact on the national security of the Republic of Kazakhstan. The list of strategic objects is approved by the Government of the Republic of Kazakhstan. The encumbrance on the strategic objects and disposal thereof is performed upon the permit of the competent authority – the Government of the Republic of Kazakhstan. Obtaining permit to encumber and dispose of such objects is a long-time process that includes collection of information and documents.

According to the current legislation, the period for considering the application shall not exceed fifty business days after the receipt of the documents by the competent authority. According to our practice, this process, however, may take from three to six months.

Experience:

• advising on the issues of encumbering strategic objects;
• drafting an application for obtaining permit for encumbrance of strategic object and representation of interests of a client at the stage of consideration of the application by the competent authority;
• drafting a pledge agreement for a strategic object;
• drafting a lease agreement for a strategic object and registration thereof with the competent authority;
• advising on the issues of the placement of shares in the organised securities market by the owner of a strategic object;
• registration of the pledge agreement for a strategic object with the competent authority.