Kazakhstan's Performance on the Revenue Governance Index
Kazakhstan received a "partial" score of 57, reflecting satisfactory performance on the Safeguards & Quality Controls component but a low Enabling Environment score.
(out of 58)
(out of 100)
|28||Institutional & Legal Setting||62|
|9||Safeguards & Quality Controls||76|
Institutional & Legal Setting (Rank: 28th/58, Score: 62/100) learn more
Kazakhstan's "partial" score of 62 is the product of a detailed legislative framework but insufficient disclosure requirements.
The Oil and Gas Ministry grants hydrocarbon rights following a bidding process or direct negotiations. However, in 2007 the president imposed a moratorium on new licenses to reduce the influence of Chinese companies in the country's oil sector.
The Industry and New Technologies Ministry regulates the sector, while the Finance Ministry collects revenues from resource companies and deposits them in the National Fund of Kazakhstan.
Kazakhstan is a candidate for Extractive Industries Transparency Initiative (EITI) compliance, but has yet to complete the validation process. There are several laws relating to freedom of information in the extractive sector, although significant gaps in transparency remain.
Reporting Practices (Rank: 21st/58, Score: 58/100) learn more
The government does not provide detailed information on most aspects of the petroleum industry, leading to a "partial" score of 58.
Contracts and environmental impact assessments are not published. The Oil and Gas Ministry has yet to begin publishing relevant reports. The only data available are production volumes for two months in 2012. The Industry and New Technology Ministry publishes only historical information on reserves. The Finance Ministry publishes monthly information on the value of resource exports, production stream values, royalties, special taxes, bonuses, license fees, and the government's share of production-sharing agreements. Kazakhstan's Statistical Agency publishes some information on production volumes, prices, and the value of resource exports. EITI reports contain disaggregated figures for most taxes, dividends, and acreage fees, but do not provide data on social payments or company-by-company receipts.
Safeguards & Quality Controls (Rank: 9th/58, Score: 76/100) learn more
Kazakhstan earned a "satisfactory" score of 76, its highest of any component, partly due significant audit requirements.
Licensing decisions may be appealed and lawmakers have the right to review contract terms. The General Auditor reviews the Finance Ministry's financial statements and regularly reports to parliament. However, legislative oversight is limited; the president maintains considerable power over the extractive sector. The ruling party controls implementation of anti-corruption laws, which require government officials to disclose potential conflicts of interest.
Enabling Environment (Rank: 32nd/58, Score: 32/100) learn more
Kazakhstan's "failing" score of 32 accounts for poor global rankings on a range of governance indicators, including especially low scores on government accountability and democracy.
State-Owned Companies (Rank: 8th/45, Score: 87/100) learn more
Kazmunaygaz represents the state's interest of at least 50 percent in all production-sharing agreements. It is required to publish comprehensive audited reports, including information on operations and subsidiaries, as well as data on revenue generation and collection. The company follows international accounting standards and provides information on its board of directors and decision-making rules. Company officials are required to disclose their financial interests in the industry. However, despite these policies, a lack of effective communication with the public has provoked serious tensions between Kazmunaygaz and communities in Kazakhstan's western region.
Natural Resource Funds (Rank: 8th/23, Score: 67/100) learn more
The National Oil Fund is intended to conserve oil revenues and help balance national and regional budgets. It is controlled by the president. There are no fixed policies regarding deposits, but rules governing withdrawals are defined by legislation and generally followed. Disbursements are published in Kazakhstan's annual budget; the fund does not publish its own audited reports. The National Bank provides information on the fund's assets, transactions, and investments. However, these reports are difficult to understand and do not include disaggregated data.
Subnational Transfers (Rank: 18th/30, Score: 58/100) learn more
Some resource revenues go directly to regions where oil and gas are extracted. The government publishes information on these transfers, but does not define the rules and formulas for revenue sharing. The requirement that these payments be used for infrastructure development is often violated.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
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Key Economic Indicators
|GDP (constant 2011 international $ billion)||23.3||64.7||188.0|
|GDP per capita, PPP (constant 2005 international $)||5,406||8,699||11,568|
|Oil and gas revenues (% total government revenue)||..||39|
|Extractive exports (% total exports)||73||83||82|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. Oil and gas revenues 2011 data from 2010; Extractive exports 2011 data from 2009.|