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An official publication of the Government of the Republic of Kazakhstan

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An official publication of the Government of the Republic of Kazakhstan

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Forewords

9 Respected player on the global stage

11 Bright future ahead for this young country

14 Creating the conditions for permanent growth

16 Kazakhstan’s 20 years of independent development

22 Success lies in diversification

Portrait of a nation at 20: 1991-2011

24 Road to riches

28 Map of the Republic of Kazakhstan

30 Land of steppe, lakes and peaks

34 Vibrant tapestry of old and new

40 Economy: oil wealth backed by diversification strategy

43 Kazakhstan’s changing face

48 Developing global ties

51 A partner in prosperity

56 Foreign investors pump in money

62 Capital in the fast lane

Economic outline

70 Oil and gas set for ‘golden age’

Contents

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85 Mining a rich seam

94 Diversifying beyond oil

98 Economic growth through farming

102 Banking on growth

106 Discovering Kazakhstan’s tourist potential

110 New bricks and mortar

114 Moving toward a modern retail sector

119 Kazakhstan aims for high-tech success

Social and industrial infrastructure

125 On the road to renewal

131 Communications: building connections

136 Progress on power

139 Educating the nation

146 Raising health standards

151 Rural development

Looking ahead

155 Focusing on the future

158 Index of advertisers

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Respected player on the global stageAchieving results with partnersMessage from Nursultan Nazarbayev,

President of the Republic of Kazakhstan

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Bright future ahead for this young countryStability provides basis for growthMessage from Karim Massimov, Prime Minister of the Republic of Kazakhstan

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Harnessing technology and innovation is a vital aspect of improving productivity and boosting competitiveness

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Creating the conditions for permanent growth Careful financial management is leading to a robust economy By Grigori Marchenko, Chairman of the National Bank of Kazakhstan

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The stability of Kazakhstan’s macroeconomic situation and our early recovery from the international economic crisis have created the foundations for sustained economic growth

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Kazakhstan’s 20 years of independent development

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Proactive engagement with international community is key to success By Yerzhan Kazykhanov, Minister of Foreign Affairs

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SPONSORED FEATURE

Engineering Solutions for the Oil Industry

Nursultan Nazarbayev, the first president

of the newly independent Kazakhstan, set

the tone for the country’s development in one of

his first acts in office. He issued a decree to close

the Semipalatinsk nuclear test site and to declare

Kazakhstan a non-nuclear country. Both actions

demonstrated the country’s commitment to a

world free of violence, and set an example for

other nuclear powers across the world.

The country’s development in its first 20 years

of independence has lived up to that initial

promise: it is now the largest economy in central

Asia and is enjoying rapid growth – gross

domestic product in 2010 rose by a healthy

seven percent and the International Monetary

Fund forecast in October that growth this year

will be 6.5 percent, higher than it had originally

estimated. This growth underlines the fact that

the country has managed to survive the current

global economic turmoil relatively unscathed.

Kazakhstan has also earned a reputation for being

an open, democratic country, and as a good place

to do business: the World Bank and International

Finance Corporation placed it 47th out of 183

countries in their Doing Business 2012 report.

The country’s oil reserves are a key part of its

economic strength and PM Lucas, an integrated

oil services company that started operations

in Kazakhstan in 1999, has shared in much

of its development. The company’s activities

span the range of exploration and production

engineering solutions, from geological and

geophysical, reservoir management, production,

drilling and well intervention, to process and

surface facility engineering.

The company, in its 12 years in the country,

has drilled and managed more than 1,200 wells –

equivalent to 1,000,000 meters of drilling –with

wells ranging from 500 to 5,000 meters, of which

250 wells or 300,000 meters were performed on

a complete turnkey basis. The company has also

managed more than 15,000 well interventions

and engineered, designed, or built hundreds of

kilometers of roads, flowlines, and pipelines.

PM Lucas’s status as a provider of solutions

to the upstream oil and gas industry, across

the complete oilfield or gasfield development

cycle, means it has no direct competitors.

The company targets medium- to small-scale

projects that require the integration of all our

services and which are too small for the major

service companies. The company has often been

described as “an oil company’s engineering

heart” or as an “oil company without an oilfield

that provides this capability as a service”.

The company is fully accredited by the

German TUV NORD CERT with the following

quality standards:

ISO 9001: 2008 Management System;

ISO 14001: 2008 Environmental

Management System;

ISO 18001: 2007 Occupational Health and

Safety Management System; and

ISO/TS 29001: 2007 Requirements for

Petroleum, Petrochemical and Natural

Gas Industries.

Dr Pavle Matijevic, PM Lucas’s Chief

Executive Officer, believes Kazakhstan is

a much more progressive country than any

others at a similar stage of development.

“Working conditions in Kazakhstan are

excellent, the oil and gas industry is just starting

to take off, and I would recommend anyone to

come and invest in this country.”

The company has operations in other oil-

producing countries – including Algeria, Russia,

Azerbaijan, Turkmenistan, and Syria – but

Dr Matijevic believes that working conditions in

Kazakhstan are far better. “Kazakhstan is stable

politically, and the president and government

are doing a great job. It is a democratic country

and open to foreign investment. We truly

believe it is years ahead of its neighbors.

“This is a rich, ambitious country with

ambitious people and strong leaders. The

successes in the past 20 years in industry and

agriculture, with its vision of increasing the

business class, are second to none. Kazakhstan is

a role model for many developing countries for

having invested in its most valuable resource:

the future of its young people.”

Dr Matijevic points out that the country

is now ranked first among Asian nations in

Unesco’s Education For All Development Index

and is fourth in the table overall, as well as being

ranked 15th in the world for literacy.

Keeping pace with Kazakhstan’s development

Dr Pavle Matijevic, PM Lucas’s Chief Executive Officer

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We have worked hard to build bridges between the Islamic and Western worlds, and to alleviate hunger and strife from the Horn of Africa to Afghanistan

www.pwc.com/kz

Building relationships. Creating value.

Our ambition is to bring real value to our clients. We recognise that value will mean different things to different people. That’s why we care so much about getting to know our clients and understanding what’s important to them. And over 400 of our people have been doing this in Kazakhstan since 1993. We congratulate Kazakhstan on 20 years of independence and we look forward to supporting the local community and business here for many years to come. To nd out more about us visit www.pwc.com/kz or get in touch with our Managing Partner Alper Akdeniz on 2 29 044 to discuss how we can help you achieve your ambitions.

© 2011 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member fi rms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member fi rms of the PwC network. Each member fi rm is a separate legal entity and does not act as agent of PwCIL or any other member fi rm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member fi rms nor can it control the exercise of their professional judgment or bind them in any way. No member fi rm is responsible or liable for the acts or omissions of any other member fi rm nor can it control the exercise of another member fi rm’s professional judgment or bind another member fi rm or PwCIL in any way.

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Continued success lies in diversificationGreat strides are being made as Kazakhstan seeks to loosen its dependency on oilBy Timur Kulibayev, Chairman, Samruk-Kazyna National Welfare Fund

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We do not want Kazakhstan to be just an exporter of raw materials. Samruk-Kazyna is investing in new production facilities and the development of industries with high added value

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Road to richesKazakhstan’s drive to become a modern high-tech economy is propelled by a colorful history. Clare Nuttall charts some of the key events and figures behind the Central Asian republic’s continuing drive for growth and excellence

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Over the past decade Kazakhstan has pulled away from other Central Asian republics economically and is now approaching the middle-income level

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Above 1,000,000 inhabitants

From 100,000 to 1,000,000

From 10,000 to 100,000

Less than 10,000 inhabitants

The capitals of the states

Region centers

Other towns

Settlements

Rural inhabited localities

District centers

COMMUNICATIONS

Railways

Republican automobile roads. Passes

Other automobile roads

Sea ports and piers. Lighthouses

BORDERS

State

Region

Scale 1: 3,000,000

INHABITED LOCALITIES

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Land of steppe, lakes and peaks

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This vast country is characterized by a wide range of geography and topography, with a corresponding diversity of animal and plant life, as Clare Nuttall discovers

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The high mountains harbor rare breeds including the snow leopard, along with bears, ibex, lynx and wolves

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Vibrant tapestry of old and new

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The days of herding livestock may be fading into history, but much of traditional Kazakh culture reflects its nomadic heritage. The country is a diverse one, though, with Russian and more international elements also making a significant contribution to the mix, writes Clare Nuttall

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One example of the nation’s rise in self-confidence has been the emergence of a domestic film industry

First we dig it up. Then we grow it.

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Economy: oil wealth backed by diversification strategy

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Kazakhstan’s abundance of oil provides domestic riches that cushioned it from the global crisis and allowed it to bounce back more quickly than many other nations. The country is now also developing other parts of its economy, reports Ben Aris

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Kazakhstan could see production approach three million barrels per day by 2020 as the giant Kashagan field, one of the largest new discoveries across the globe in decades, comes fully onstream – the first phase is due to start operating early in 2012

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Kazakhstan’s changing face

Since achieving independence, Kazakhstan has enjoyed 20 years of economic and political stability based on its strong domestic economy, creating the foundations for sustained economic growth over the next few decades, writes Clare Nuttall

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Kazakhstan’s GDP per capita has risen to 13 times its 1994 level – from $700 to almost $10,000

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Energoprojekt Niskogradnja, Branch Offi ce115, Zeltooksssan str. offi ce 115, Аlmaty

phone/fax: +7 7272 502 610e-mail: ep-niskogradnja@ducatmail.kz

Energoprojekt Niskogradnja, Branch Offi ce115, Zeltooksssan str. offi ce 115, Аlmaty

phone/fax: +7 7272 502 610e mail: ep niskogradnja@ducatmail kz

Commercial and Business Centre, Aktau

Administrative Building MMG, Aktau

Commercial and Business Centre, Atirau Oil Depot, Pavlodar

Underground Metro Station, Almaty Residential Building, Atirau

Hotel 4th Microdistrict, Aktau

Commercial and Bussines Centre, Uralsk

Energoprojekt Visokogradnja, Branch Offi ce,29a microdistrict, Aktau

phone/fax: +7 7292 200-757, 200-756, 203-370, 203-372e-mail: epvgaktau@mail.ru

www.energoprojekt.rs

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Developing global ties

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Cultivating ties with other countries – from the US to Asian neighbors – has been of central importance to Kazakhstan since independence in 1991, and the country remains as keen to foster them as ever. Ben Aris reports

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The Chinese combination of social stability and private-sector prosperity is an attractive model to Kazakhstan, while China also represents a vast market that is also able to supply Kazakhstan with food, medicine and consumer goods

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A partner in prosperity

The creation next year of a Central Asian Common Economic Space will do away with the internal barriers of the existing Customs Union and will develop and promote institutions that benefit the new entity’s member states. Ben Aris reports

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A single Eurasian market should encourage more inter-regional investment and business activity that will lead to greater wealth creation

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Foreign investors pump in money

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The Kazakhstan government is keen to look beyond its oil and gas staples and attract direct foreign investment into areas such as manufacturing and IT. Tim Gosling offers an overview of the players and the key sectors set to benefit from its plans to diversify

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Engineering Solutions for the Oil Industry

Integrated Turnkey Projects Provider of ChoicePM Lucas is a fully integrated Service Provider for the Oil & Gas exploration and Production Industries and related Industries.PM Lucas provide complete E&P engineering solutions from Geological & Geophysical, Reservoir Management, Production, Drilling & Well Intervention to Process and Surface Facility Engineering for the Oil & Gas and related industry.PM Lucas project experience includes complete field development; well drilling and intervention; field production management; Facility Engineering and Construction; Full Field Turnkey Development; Complete Oilfield Management Services; PM Lucas provides from single consultant specialized support to complete turnkey and EPC, EPSCM, EPCC and BOOM solutions.PM Lucas is fully accredited by the international body TUV NORD CERT GmbH, from Germany:• ISO 9001: 2008 Management System• ISO 14001:2008 Environmental Management System• ISO 18001:2007 Occupational Health and Safety Management System• ISO/TS 29001:2007 Requirements for Petroleum, Petrochemical and Natural Gas Industries

About the Company in Kazakhstan:PM Lucas has been present in Kazakhstan since 1999 as an integrated engineering service provider.

PM Lucas has provided multiple:• Subsurface engineering services such as Geological and Geophysical assessment, Reservoir, Production and other Petroleum Engineering Services. • Surface engineering the services ranged from Conceptual Design, Basic Design, Detailed Design for the Oil handling, Gas handling and water handling system and Oil Receiving system. PM Lucas has drilled or managed over 1200 wells or over 1,000,000m of drilling with the wells ranging from 500 to 5000m of which 250 wells or 300,000m were performed on a complete turnkey basis. In addition to this Lucas managed over 15,000 well interventions. The Company has engineered designed or built hundreds of kilometers of roads, flowlines and pipelines. PM Lucas has recently the general Contractor of a complete Turnkey EPCC Oilfield development in Mangistau Oblast, Kazakhstan. The work started with the FEED (Basic Design) to complete turnkey EPCC development (Engineering Procurement Construction Commissioning) to Operations and Maintenance.

Almaty, Kazakhstan • Ivanilov str. 63/A, Almaty, 050059 • Tel: +7 727 3410300 • Fax:+7 727 3410307 • www.pmlucas.com

PM Lucas Enterprises congratulates HE President Nursultan Nazarbayev on Kazakhstan’s 20-year anniversary of sovereign independence

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Capital in the fast lane

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Astana, nicknamed ‘Dubai on the steppe’ for its stunning architecture, has grown rapidly since it was made the capital of Kazakhstan. Not only is the city now a government hub, but it is also involved in manufacturing, and further infrastructure to support these roles is being planned, writes Clare Nuttall

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Although oil resources are still plentiful, to satisfy growing demand both now and in the future Total continues to make significant discoveries. Relentlessly seeking to increase the productivity of oil field reserves, we innovate to exploit new sources of fossil fuel. But because oil is precious, it will be vital to focus its usage in those areas where it is hardest to replace: in transportation and petrochemicals.

www.total.com

Conviction to shareImagine if a long-term energy future also depended on the discovery of new oil resources

Our energy is your energy

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Astana’s status has been enhanced with the opening in June 2010 of the Nazarbayev University, which will specialize initially in engineering, natural science and medicine. Eventually, the university will educate as many as 20,000 students each year

ТОО «Исткомтранс» является крупнейшим железнодорожным оператором на транспортном рынке Казахстана, осуществляющим свою деятельность более 9 лет. Мы предоставляем комплексный подход к решению транспортных задач в области грузоперевозок железнодорожным транспортом в экспортном, импортном, внутреннем и транзитном сообщениях. Преимущество компании состоит в постоянном пополнении и обновлении вагонного парка. На сегодняшний день в собственности ТОО «Исткомтранс» находится более 8,5 тысяч вагонов. Мы динамично растем и развиваемся, что позволило нам в 2011 году инвестировать более 185 миллионов долларов США в железнодорожную отрасль Республики Казахстан, а так же в образовательные и медицинские социальные проекты.

Тел: + 7 727 277 7878Факс: + 7 727 277 7879eastcom@ect.kzБолее подробная информация на www.ect.kz

Founded more than nine years ago, “Eastcomtrans” LLP is one of the biggest railway operators in the transportation market of Kazakhstan. We provide complex solutions for the import, export, internal and transit transportation of freight by rail. The continual increase in the number of new and renewed wagons is one of the company’s advantages. Today, “Eastcomtrans” LLP owns more than 8,500 rail wagons.We grow and develop dynamically, which has allowed us to invest more than US$185 million into the railway sector of the Republic of Kazakhstan and into educational, medical and social projects.

Tel: + 7 727 277 7878Fax: + 7 727 277 7879eastcom@ect.kzFind out more about our company at www.ect.kz

www.ect.kz

Let’s create the future together!Создадим будущее вместе!

UKRAINE

RUSSIA

TURKMENISTAN

POLAND

SSSLOVAKIAAA

ESTONIAA

LATVIA

HUNGARY

MMMMOOOLDOVAA

AZAKHSTATT N

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Oil and gas set for ‘golden age’

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Large untapped oil and gas reserves and major investment in new export lines will make the next half-century a halcyon era for Kazakhstan’s hydrocarbon industries, writes Tim Gosling

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www.tenaris.com

Tenaris Congratulates the Republic of Kazakhstan on the 20th Anniversary of its Independence.Tough challenges call for innovative solutions: new products, continuous upgrades and advances in metallurgy. Our growing line-up of reliable, quality and high-performance casing, tubing, proprietary steel grades and TenarisHydril premium connection products provide a complete package of solutions to face operations in the most challenging environments. We have an established presence in the region, with a local staff on a permanent basis, to provide on-site support through our commercial offices in Atyrau and Almaty, our field services base in Aksai, as well as our repair shop and supply chain center located in Aktau.

Tenaris celebrates the growth of Kazakhstan over the past twenty years. We are prepared to continue supporting the country in the exploration and production of oil and gas, in order to promote industrial diversification and sustainable development for the coming decades.

Tubular technologies. Innovative services.

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Existing pipelines can handle 1.5 million barrels per day, but the Kazakhstan government hopes to raise oil exports to three million barrels per day by 2020

Қазақстанды 20 жылдық мерейтоймен құттықтаймыз!

Indonesia Kazakhstan Libya Malaysia Oman

Congratulations Kazakhstan on your 20th anniversary!

Philippines Qatar Singapore Thailand UAE Vietnam

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The International Energy Agency expects resources from the Caspian region to play an increasing role in securing and diversifying Europe’s energy supplies

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Veritas Caspian: Committed to Kazakhstan

Although oil and gas exploitation has been going on in Kazakhstan

for over 100 years, the whole Caspian region is still considered

underexplored, both onshore and offshore. Only in the early 1990s

was this region opened up to international companies. Since then the

world’s largest field for 30 years (Kashagan) has been discovered in

the North Caspian Basin and its true potential is being realized.

It is already the sixth year of successful operations for Veritas Caspian

LLP, the CGGVeritas joint venture, in the Republic of Kazakhstan. In

2005, via Veritas Caspian, CGGVeritas reached an exclusive agreement

with the MEMR of RK for the acquisition of multi-client seismic data

over the entire open acreage of the Kazakhstan sector of the Caspian

Sea. It has become the largest multi-client data library program

ever undertaken by a seismic contractor and Veritas Caspian is justly

considered the leader in seismic acquisition in the Kazakhstan sector

of the Caspian Sea.

As of today our well-positioned data library comprises over 7,700 km

of 2D Full-Fold Long-Offset data coverage over the unlicensed areas of

both the Northeast and Middle Caspian Sea, Kazakhstan sector.

The acquired data library offers a new level of illumination to the

reservoirs under the Caspian Sea and provides invaluable geophysical

and geological information to contribute to cost-effective hydrocarbon

exploration within the area.

High-Quality Acquisition

Veritas Caspian offers an advanced suite of acquisition technologies and resources. Both in Land and Shallow Water we are able to meet all regional challenges with targeted and flexible solutions. In 2D, 3D and 4D we offer a range of innovative, high-end options to ensure Kazakhstan’s explorers can realize the region’s full potential.

Local Processing Excellence

Veritas Caspian also offers unparalleled seismic processing solutions, providing in-house expertise and resources to fulfill all of our clients’ processing needs. The Veritas Caspian Data Processing Center in Almaty has the software and hardware resources to process Land, OBC, Transition Zone and Marine data, both 2D and 3D, to the highest possible standard using the latest technologies. Our highly trained staff, with worldwide and regional expertise, have the specialist knowledge and experience to provide unrivalled processing services.

We are proud to have the opportunity to be involved in such a

key region, sharing the stage with the world’s biggest hydrocarbon

players. Energy will be the major priority of the next decade and

Kazakhstan will be a prominent player as that story unfolds.

Contacts: CGGVeritas: Paul Tollefson at +44 1293 683905

Veritas Caspian: Chris Twigg at +7 727 258 11 01

Example of seismic from the extensive CGGVeritas Caspian multi-client library

Coverage map showing CGGVeritas Data Library surveys in the Caspian Sea

cggveritas.com

CGGVeritas and Veritas Caspian LLP join the people of Kazakhstan and His Excellency Nursultan Nazarbayev in celebrating 20 Years of Peace and Creation.

CGGVeritas and Veritas Caspian are proud participants in Kazakhstan’s important and exciting journey toward becoming one of the world’s most significant hydrocarbon centers.

Congratulations on 20 Years of Peace and Creation

Address: 44 J.Jabbarli str. Caspian Plaza III, 11th floor, Baku, Azerbaijan AZ1065 Tel: +994 12 550 14 60

+994 12 497 40 22 Fax: +994 12 497 40 23 E-mail: sales@cws.az URL: www.cws.az

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There is a growing number of independent players developing smaller oil and gas fields in the country

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Mining a rich seamAfter suffering setbacks during the global financial crisis, Kazakhstan’s mining sector is again on the march thanks to domestic and foreign investment and international demand, writes Tim Gosling

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Partnering with Kazakhstan

TSX: UUU | JSE: UUU WWW.URANIUM1.COMGo to www.uranium1.com for more information.

Uniquely positionedto meet the world’sgrowing demandfor uranium.

Kazakhstan has now firmly established itself

as the world’s largest uranium producer.

Uranium One is pleased to be partnered

with Kazatomprom in the development of

Kazakhstan’s vast resources, through its

joint venture interests in the Akdala,

South Inkai, Karatau, Akbastau,

Zarechnoye and Kharasan in-situ leach

uranium deposits.

URANIUM ONE is proud to be

a partner in the growth of the

Republic of Kazakhstan’s

uranium mining industry.

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China remains the largest consumer of Kazakhstan’s metals and minerals, and is its biggest export partner

Proven Solutions for Kazakhstan Mining Together, P&H Mining Equipment Inc. and Joy Mining Machinery

provide complete system solutions matched to your mine operations

requirements: Highest productivity and lowest cost per tonne

made possible with safety-focused products and service support.

As Kazakhstan’s remarkable economic development program gains

momentum, P&H and Joy will be there to support that effort.

www.joyglobal.com P&H Mining Equipment (UK) Ltd. I Tel. +44 1942 614400 I Fax +44 1942 614419

e-mail: dnikonen@joy.co.uk

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Diversifying beyond oil

Kazakhstan is looking further than its traditional mineral riches in a wider-ranging economic strategy that is helping existing companies to add value and establishing infrastructure that will encourage new businesses and technologies, writes Ben Aris

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Ongoing deregulation and privatization are fostering the development of the country’s non-mineral sectors and increasing competition in the economy

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Economic growth through farmingFrom building greenhouses and irrigation systems to importing breeding cattle, Kazakhstan is making sure its resurgent agriculture sector goes from strength to strength. Clare Nuttall takes a closer look

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As a major grain exporter and a country with the potential to increase food production, Kazakhstan has a role to play in regional food security

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In the market since 1991

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Personal Investments Corporate Finance Private EquityInstitutional Brokerage

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Banking on growth

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Kazakhstan’s banking industry has modernized rapidly and is now widely regarded as the best in the Commonwealth of Independent States. Ben Aris reports on how the Kazakh government’s restructuring plan has successfully bolstered this growth sector

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One of the biggest changes to the sector will be the introduction of Islamic banking, as investors from the Middle East take a growing interest in Central Asia

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Discovering Kazakhstan’s tourist potential

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With much to offer tourists, Kazakhstan is making moves to claim its rightful place on the mainstream tourism map after years of being sidelined by the Soviets, writes Clare Nuttall

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Kazakhstan’s has a number of challenges to overcome if it is to boost visitor numbers, including the need for better roads and public transport connections

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New bricks and mortar

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Kazakhstan needs more commercial and residential property, and as the market recovers from the economic crisis new developments are being planned, as Clare Nuttall reports

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Kazakhstan’s economic fundamentals are good and the population is growing, with a high birth rate and continuing migration into the country

SPONSORED FEATURE

An interview with Taissiya Kogutyuk,

CEO of Kazakhstan Kagazy JSC

Q: Founded in 2001, Kazakhstan Kagazy

has become Central Asia’s largest

producer of paper, corrugated board and

packaging. What is the significance of

Kazakhstan Kagazy for the country’s industry?

Our company grew out of the program for

import substitution and is one of the success

stories of this program in creating a diversified

industrial base in Kazakhstan. We are the biggest

paper manufacturer in the region and we are

making a significant contribution to the

nation’s economy. Our success may pave the

way for other companies.

Q: Is the company export-oriented or looking

more to satisfy domestic demand?

At present, we are focused mainly on the Kazakh

market because we produce cardboard, and it

does not travel well long-distance. We now have

two warehouses in our logistics network, and in

Almaty we have a container terminal.

Kazakhstan’s position between Asia and

Europe enables it to play a larger role in the

transportation and logistics business. In the

warehousing and container terminal market,

currently there are no international players

and we would like to be the first to develop the

integrated transportation link between Europe

and China. However, Kazakhstan is part of a

customs union of 214 million people and we will

be looking to expand our business in the long term.

Q: How important is innovation for

your company?

Innovation is at the core of this company. We

were the first to produce paper in Kazakhstan,

and everything had to be built from scratch.

We went into the logistics business in 2006 and

were the first Kazakh industrial group to list on

the London Stock Exchange. We are also the

first company that is going through industrial

restructuring. We have always been at the

cutting edge of what has been happening in

the sector, utilizing the latest state-of-the-art

machinery and management methods.

Q: State program 2010-2014 envisages economic

diversification via accelerated industrialization.

In which areas do you see potential?

Kazakhstan’s privileged position between large

markets such as Russia, India, Europe, and China

means that the country has a chance to develop

a number of sectors. Energy and agriculture will

continue to be the drivers, with the country’s

abundant natural resources and huge land mass.

It is a stable country and has achieved a lot

since gaining independence, including creating

an impressive framework for domestic and

international investors.

Q: What is your outlook for your company and

the economy in general in 2012?

We see a bright future for Kazakhstan Kagazy.

The company currently has outstanding

profitability through real growth, not growth

by debt. With the country’s economy growing,

this company has great prospects.

We have been in existence for 10 years and

consider our company as proof that there is

business beyond oil. We look forward to growing

our operations and making Kazakhstan Kagazy

a true success story for the benefit of both our

country and our shareholders.

Company information

Year of foundation: 2001

Business segments:

paper and packaging

logistics and warehousing

development of industrial plots

Employees: 1,400

The first Kazakhstani industrial company

listed on the London Stock Exchange (LSE)

Ecological and innovative

Contact information

Kazakhstan Kagazy Group

86, Khadzhy Mukan St, Almaty, 050059

Republic of Kazakhstan

Tel: +7 (727) 244 87 87

Fax: +7 (727) 244 87 82

Web: www.kazakhstankagazy.com

Email: ir@kagazy.kz; press@kagazy.kz

114

Moving toward a modern retail sector

115

Retail in Kazakhstan is fast making the transition from bazaar to mall, with the sector holding up even during the recent economic crisis, reports Clare Nuttall

T

116

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119

Kazakhstan aims for high-tech success

Government support is helping the country to create a homegrown technology industry, writes Clare Nuttall

T

120

121

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The NIF’s role is expanding to take in technology business incubation, innovation grants and commercialization of new technologies

SPONSORED FEATURE

Committed to the development of Kazakhstan

Dear friends,

On behalf of the group of companies of

Kamkor Management LLP, please allow me to

congratulate Kazakhstan on the 20th anniversary

of the Republic’s independence.

Kazakhstan may be a very young country,

but, owing to President Nursultan Nazarbayev’s

policy of reforms, in just a short span of

time since independence Kazakhstan has

accomplished a great deal and managed to

become a stable, powerful and prosperous nation.

Following the course of head of state, the

group of companies of Kamkor Management LLP

has implemented a number of key reforms in the

transport infrastructure industry, significant for

both the company and the country.

Kamkor Management LLP’s group of

companies is among the leading and reliable

providers of services that span the maintenance,

repair and modernization of railway transport.

Recognizing the importance of ultimate

route availability of railway stock and railway

infrastructure, we are working to render extended

services throughout the territory of Kazakhstan.

Kamkor Management LLP is a holding

company with a portfolio consisting of eight

single business units, with Kamkor Management

LLP acting as the corporate center.

We are a high-impact company having over

16,000 passionate and committed employees

engaged in the industry of machine-building

and service and repair, compliant to the

Business Best Practices and corresponding to

shareholders’ expectations.

Kamkor Management LLP is committed to the

currently conducted policy in Kazakhstan, which

is aimed at accelerated industrialization and

innovative development of Kazakhstan in order

to build a more diversified and stable economy

by developing non-oil sectors and promoting the

transfer of emerging technologies and attractiing

of foreign investors.

Thus, in the machine-building industry our

company has created manufacturing capacity

relative to production of domestic freight

wagons in the city of Ekibastuz. The factory is

fully automatic, equipped with machinery that

excludes the usage of manual labor and uses

modern engineering solutions and leading

developments of both domestic and foreign

producers. Production capacity of the factory is

planned to increase to 3,000 wagons per year.

For the first time, one of our companies,

Temirzhol Zhondeu JSC, has built new

railway track at Uzen, on the state border with

Turkmenistan, with a length of 146 kilometers.

This railway line is designated as part of the

construction of the Uzen–Kyzylkaya–Bereket–

Etrek–Gorgan international transport corridor,

which is being implemented on the basis of

intergovernmental agreement and presidential

decrees, signed by Kazakhstan, Turkmenistan

and Iran back in 2007. This railway route allows

Kazakhstan to connect with Turkmenistan,

Iran and Persian Gulf countries. As a result of

this project, successfully implemented by our

company, the Republic’s trade turnover, transit

and export potential are set to increase.

In order to increase traffic capacity of

railway stations, KTZh National Company JSC

is allocating large investments to automation

of the sorting processes. Kamkor Management

LLP is implementing one such project – the

modernization of the sorting rail hump at

Astana station. The results of this project will

be automation of sorting works of the railway

station, an increase in labor productivity and

improvement of station’s railway infrastructure.

Another large project of our company is

the creation of a steel carriage foundry on the

base of one of the largest machine-building

factories, with a wide profile of production –

VostokMashZavod JSC. At the moment there are

no large and medium foundry of carriages in the

Republic, which makes the service, maintenance

and capital repair and the production of wagons

economically unattractive, due to the escalating

prices of carriage assembling details compared to

the price of the carriage itself.

In 2012, our company is planning to solve

this problem by creating the foundry powers

and localization of spare and assembly parts

production, to various types of railway transport

in the Republic of Kazakhstan. Implementation

of this project will allow to reduce the over-

dependence of Kazakhstan on imports of the

most costly assembly parts of railway carriages,

previously not produced in our country.

I would also like to point out Temirzholenergo

LLP, which supplies 80 percent of the electric

energy needed by National Company KTZh

JSC, on the whole territory of the country, for

both the operational needs and locomotive

traction. Temirzholenergo LLP possesses unique

experience in operating throughout the territory

of Kazakhstan. The basis of its competence on

the electricity supply market is well-established

business relations with electricity producers and

main customers.

The investment policy of the Kamkor

Management LLP group is aimed at technical

re-equipment and the modernization of the

production of all enterprises of the holding

Kamkor Management LLP’s group of companies is among the leading and reliable providers of services that span the maintenance, repair and modernization of railway transport

Dias Suleymenov, General Director of Kamkor Management LLP

company, to optimize production and

increase labor productivity. As of today, part

of the program aimed at the modernizing of

locomotive-repair depots (Almaty and Ayakoz)

has successfully implemented by us.

In developing its core business – the repair

of railway transport and infrastructure – the

company is already experiencing the transition

to a new quality of service. Kamkor Management

LLP is carrying out a policy, directed at

effective partnership with National Company

KTZh JSC. Mastering of new types of repair of

railway transport, including tanks and special

railway transport; and a transition to long-term

locomotive service contracts and other services

provided by the company is being implemented.

In addition, Kamkor Management LLP is

the holder of IP rights of informational system

“SERVICE”. Provisions of a long-term service

contract stipulate a 15-year term of responsibility

for subcontractors, as well as reliable usage

indicators of readiness and reliability. In turn,

the customer receives locomotives that have

undergone high-quality and reliable service and

repair, and which are free of issues regarding the

service maintenance and repair of locomotives in

the post-warranty period.

Also, operational costs are significantly

reduced, due to the lowered costs of locomotive

maintenance, previously caused by faults and

down time. On the industry forum of the best

innovative projects and propositions, organized

by National Company “KTZh” JSC, this was

recognized as one of the best scientific-technical

developments.We believe that the implementation

of our goals will enable us to maintain the railway

infrastructure and transport of the Republic of

Kazakhstan to a high level, providing reliable

technical conditions for the safe transportation of

cargo and passengers, and having a marked effect

on the country’s investment attractiveness and

helping it to gain a competitive edge.

Respectfully yours,

Dias Suleymenov General Director of Kamkor Management LLP

The Main Businesses of Kamkor Management LLP

Kamkor

Locomotive

Kamkor

Wagon

Temyrzhol

energo

Locomotive

2030

Temyrzhol

zhondeu

Central Asia

Protrans

Kazakhstan

freight wagon

production

company

Vostokmash

zavod

Comprehensive

range of

locomotive

maintenance and

refurbishment

services, repair

works for

locomotive

equipment and

other special

railway vehicles,

including Austrian

railway equipment

Major repair

and remedial

maintenance of

freight carriages,

of mounted wheels

and spare parts

for freight and

passenger wagons.

Repair of special

rolling stock.

Electric energy

distribution to

KTZh and general

public, including

hauling operations.

Provision of

locomotive

traction

services

Railways

construction

and major

repair works

Rails welding

and re-

profiling

Ballast

aggregate

production

Repair works

and general

maintenance of

the railway systems

telemechanics and

communication

devices

Freight

carriages

production

Steel foundry

production,

drill steels,

mineral

processing,

mining and

metallurgical

equipment

manufacture

Maintenance and

repair works of

KTZh-owned

locomotives,

including

support manning

Maintenance of

carriages owned

by KTZh and

third parties

wagon wheels

repair

Covers approx.

80 percent of the

KTZh electric

energy needs

Provides

approx seven

precent of

the KTZh

locomotive

traction

services

Secure approx

45-50 percent

from the

whole volume

of major

repair of

KTZh

rail tracks

Facilitate full

100 percent from

the KTZh order

volume

Rated output

is 2,500

carriages

annually.

With further

increase to

3,000 wagons

a year

Procurement

services for

mining and

oil companies

in RK and

CIS countries

> 10,500 ~ 2,000 ~ 200 > 700 > 1,400 > 200 > 100 > 1,000

Locomotive JSC

Prigorodnye

perevozky JCS

Locomotive

Service Center JSC

Other rolling-stock

owners

Kaztemyrtrans JSC

Branches of KTZh

Affiliated

companies of

KTZh

Private operators

of freight wagons

Branches of KTZh

Affiliated

companies

of KTZh

General public and

private companies

located close to

railways stations

Locomotive

JSC

Branches

of KTZh

Other

companies

Branches of KTZh

Affiliated

companies of KTZh

Kirov named plant

Locomotive

kurystau zavody

JSC

Kaztemyrtrans

JSC

Private

wagon-park

operators

Kazchrom

JSC

Metallurg Ltd

USBP Ltd

Transcom Ltd

Other

companies

Mai

n C

ust

om

ers

Em

plo

yees

Sig

nifi

can

ceD

escr

ipti

on

125

An overhaul of Kazakhstan’s transport infrastructure is under way – a move that is intended to boost growth in the country and facilitate trade, as Tim Gosling discovers

T

On the road to renewal

126

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GE Transportation

GE imagination at work

GE Transportation is honored to be part of Kazakhstan’s incredible growth and success as an

independent state. In a partnership that began in 1995, GE and JSC “NC “Kazakhstan Temir Zholy”

(KTZ) have collaborated to build and strengthen Kazakhstan’s critical rail infrastructure.

At the heart of this partnership is the Kazakhstan Evolution Locomotive,

for Kazakhstan and surrounding region. Today the locomotives are assembled at KTZ’s Astana

Assembly Plant, strengthening Kazakhstan’s manufacturing industry.

You set ambitious goals and achieved them in a short 20 years.

We wish you a future of continued prosperity and success.

To learn more,

visit www.getransportation.com.

Kazakhstan Evolution Locomotive KTZ Astana Assembly Plant

Congratulations on 20 years of

peace and independence in Kazakhstan

“We set ourselves ambitious goals and we achieved them.”

– President of the Republic of Kazakhstan Nursultan Nazarbayev

State of the Nation Address, January 29, 2011

SPONSORED FEATURE

Tackling networking needs with local partners

On the 20th anniversary of Kazakhstan’s

independence, Cisco is proud to be part of

the Kazakh economy and society, and a corporate

citizen with a strong commitment to the country.

In line with Kazakhstan’s objectives, our aim is to

support national competitiveness. We would like

to contribute to the building of a knowledge

economy through a digitization and broadband

agenda. For this process, we are offering Cisco

expertise and worldwide best practices.

Founded in 1984, Cisco is the worldwide

leader in networking for the internet.

Today, networks are an essential part of

business, education, government and home

communications, and Cisco Internet Protocol-

based (IP) networking solutions are the

foundation of these networks. The Cisco name has

become synonymous with the internet, as well as

with the productivity improvements that internet-

based solutions provide. At Cisco, our vision is to

change the way people work, live, play and learn.

Cisco has been present in Kazakhstan for

more than 10 years, working with customers

and partners even before we established our first

dedicated office in Almaty in 2002, followed by a

second office in Astana in 2008.

Our most important focus is on our local

partners. We are developing a partner ecosystem

with a state-of-the-art knowledge of the latest

technologies, which are capable of addressing our

customers’ business and technology needs. We

are proud of the fact that we have more than 170

local partners serving the Kazakh market with

Cisco technology, and are continuously offering

training programs to these partners so that they

can expand their knowledge and specializations

in different technology areas – be it next-

generation networks, video, collaboration, data

centers, cloud, or business architectures. In close

cooperation with our partners, we are making

the latest technologies available for the

Kazakhstani market.

One of our first local customers was

Kazakhtelecom, whose national backbone

infrastructure was built using Cisco technology

by the end of the 1990s. In 1999, this project

was recognized by Cisco as a highly innovative

network deployment. Ever since, Kazakhtelecom

has been a highly innovative customer, and one

of the first companies worldwide to introduce

Cisco TelePresence technology to hold virtual

meetings via video.

To underline Cisco’s commitment to

Kazakhstan, John Chambers, chairman and

chief executive officer of Cisco, visited Astana in

January 2009, and met several of the country’s

leaders to discuss how the use of technology

could help the country in its transformation to

an innovation-based economy. The leaders

also discussed the role network technologies

could play in health care, education and

economic development for the greater social

inclusion of citizens.

We also created a tradition by organizing

Cisco Expo, an annual conference for

Kazakhstan’s IT professionals, which over the past

years has become one of the largest high-tech

conferences in Central Asia. For the first time

this year, the eighth Cisco Expo took place in two

cities – Almaty and Astana as well.

In 1997, we established the first Cisco

Networking Academy in Kazakhstan. Cisco

Networking Academy is our largest corporate

social responsibility initiatives in the country.

In the second semester of the academic year

2010/11, we had more than 100 academies

and over 3,000 students participating in the

program. As networks become more

important than ever before, Cisco Networking

Academy helps to close the skills gap in IT and

networking technologies, and trains students

for the jobs that will be most in demand in the

next five to 10 years.

About CiscoCisco (NASDAQ: CSCO) is the worldwide

leader in networking that transforms how

people connect, communicate and collaborate.

Information about Cisco can be found at

www.cisco.com.

For ongoing news, please go to newsroom.cisco.com

131

Communications: building connections

The communications sector is thriving as new fiber-optic networks and broadband drive growth. Tim Gosling reports

K

132

Competition is pushing development. Kazakhtelecom is set to boost broadband speeds by 100 percent this year, while subscription fees will remain fixed

SPONSORED FEATURE

Tele2 is opening its branded stores with a completely new

European-looking, user-friendly and attractive style

Tele2 is one of Europe’s leading telecom

operators, always providing the best deal

With 34 million customers in 11 countries.

Tele2 off ers mobile services, fi xed

broadband and telephony, data network services,

cable TV and content services. Since Jan Stenbeck

founded the company in 1993, it has been a tough

challenger to the former government monopolies

and other established providers.

Th e story of Tele2 started in 1970s in Sweden

when Jan Stenbeck, a son of the Kinnevik Group’s

founder, began developing a telecommunication

and media businesses. He wanted to create a

Europe-wide operator that could challenge

major companies in the industry. To date, the

company stands by the main principle stated by

Jan Stenbeck: “To off er communication services

of good quality at aff ordable prices.”

In many countries, Tele2 has created a

competitive environment in the market of

communication services, thereby making these

services much more aff ordable for its many

customers. Today, Tele2 focuses on mobile

services utilsing its own infrastructure, and in

November 2010 the company launched an LTE

(Long-Term Evolution) network in Sweden,

one of the fi rst in the world to do so.

Across all countries, Tele2 is known as a price

leader. Leveraging eff ective business processes,

Tele2 succeeds in maintaining cost leadership

and off ering low prices to its subscribers and

value to its shareholders.

Tele2 in KazakhstanTele2 came to the Republic of Kazakhstan

in 2010, having purchased 51 percent of

local operator MobileTelecom-Service LLP.

Following the integration of that company into

Tele2’s business groups, the full replacement of

equipment with new technology supporting 3G

networks and an upgrade of the product portfolio

and marketing platform, MobileTelecom-Service

has started operating under the Tele2 brand.

Good quality and low prices became

key benefi ts of the Tele2 brand. Until now,

Kazakhstan has had the highest communication

prices in the CIS and low consumption of mobile

services. It is, therefore, Tele2 with is unique low

prices and a transparent and frank tariff policy

that has boomed in the local market, starting

a rush for telecommunications services among

citizens of the Republic.

Th e prime goal of the company is to launch

the Tele2 brand across all regions of Kazakhstan

by means of building a network with good

quality and wide coverage.

City festivals featuring popular music stars, organised by Tele2 to mark the day of its launch in Kazakhstan, attracted thousands of people

134

●

GMMOS Group took the opportunity during the recent economic downturn to fast-track and complete the development of its new fabrication yard, which is situated on a prime location of 50,000 sq m of freehold land in the City-Port of Aktau, Mangistau Oblast.

The state-of-the-art yard features a workshop with large doors of 20 meters wide by 10 meters high, which enable its two gantry cranes of 20 tonnes each to travel the full length of the 160 meters of rails.

With equipment such as a vertical roll machine (capable of rolling plate up to 150mm thick), a guillotine, a 300-tonne press, a CNC plasma cutting machine, a profile-bending machine (capable of bending IPE 180 and many different shapes of profile), GMMOS Kazakhstan LLP is capable of servicing the oil and gas, water and mining industries of the CIS countries.

GMMOS Kazakhstan LLP is a mid-sized company specializing in the custom fabrication of pressure vessels, skid packages, general fabrication and maintenance operations. GMMOS Kazakhstan LLP is ISO 9001-2008 registered and holds the ASME U, U2, S, PP and R stamps for the fabrication and repairs of pressure vessels, pressure piping and steam boilers, and is also GOST approved. Among other contracts, GMMOS Kazakhstan LLP is assembling, in a consortium with SIDEM (part of the Veolia group), two MEP Evaporators of 12,000cm each for MAEK – KazAtomProm.

With the support and the help of its mother company and its two yards located in the UAE, employing more than 700 specialists, GMMOS Kazakhstan LLP is able to respond rapidly to the requirements of clients in the Republic of Kazakhstan and neighboring countries.

Promzone ZoneAktau, 130000Mangistau OblastTel: +7 7292 425501Fax: +7 7292 425502Email: Brahim@gmmosaktau.kzwww.gmmosgroup.com

AKTAU, THE INDUSTRIAL ZONETRN 430 100 227 008BIN 040 540 003 623IIK KZ 379 261 401 130 278 000BIC KZKOKZKXAB JS KAZKOMMERCBANKGENERAL MANAGER BRAHIM EL IDE

GMMOS KAZAKHSTAN LLP

136

Progress on power

137

To meet the pressing demands of economic growth, Kazakhstan is expanding its power-generation capacity, with construction of further thermal plants and plans for renewable energy and nuclear facilities. Tim Gosling reports

T

138

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139

Educating the nation

As it pushes to develop into a major, free-market economy, Kazakhstan recognises the necessity for a well-educated workforce to power its progress. Tim Gosling reports on the steps being taken to ensure the population has access to a first-class education system

T

140

Kazakhstan has high levels of literacy (97 percent) and has achieved near-universal primary education

141

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SPONSORED FEATURE

Yumgiskor Holding: one of the five leading

providers of medical equipment in Kazakhstan

Yumgiskor has developed rapidly since its

foundation in April 2006. Currently, the

company is not only one of the leading medical

equipment suppliers in the Republic of

Kazakhstan, but is also a major contributor to the

development of the national healthcare industry.

The core business of the company is the

supply of equipment for instant diagnosis and

intensive care, cardiac surgery, laboratory

diagnosis, endoscopy and endosurgery, and blood

sampling. Yumgiskor also provides healthcare

facilities with products used in various areas of

medicine, such as urology, gynecology, surgery,

neonatology and microscopy.

The priority tasks of the state policy of the

Republic of Kazakhstan are to improve citizens’

health, increase access to health services, and

ensure health services’ quality compliance with

the highest international standards. Solving these

problems depends primarily on the provision

of health facilities with modern, high-tech and

innovative equipment.

Being an active participant in the process of

reforming the healthcare system in the country,

Yumgiskor, in partnership with international

manufacturers, introduces the latest technology

in medical services. Currently, Yumgiskor

cooperates with 40 major suppliers and continues

to expand its list of partners.

The reliability of the company is based on the

quality assurance of the equipment supplied from

leading international manufacturers:

Olympus Corporation (Japan)

Terumo (Japan)

Randox (Great Britain)

RadiometerMedicalApS (Denmark)

PFM Medical (Germany)

BeckmanCoulter (USA)

Becton Dickinson (USA)

Masimo (USA)

Philips Respironics (USA)

High-quality equipment and a professional

level of service have enabled the company to

establish itself among the leaders in the medical

equipment market segment.

During its first five years of operation,

Yumgiskor has supplied 620 pieces of equipment

throughout all regions of Kazakhstan (235 to

the Southern region, 130 to the Central region,

111 to the Eastern region, 73 to the West and

71 to the North).

Today, the company’s customers encompass

over 350 companies and institutions working in

different fields of medicine in the Republic of

Kazakhstan. The clients of Yumgiskor are major

scientific research institutions, public and private

medical centers, clinics, military hospitals,

outpatient hospitals, maternity centers and other

healthcare facilities, as well as a number of public

agencies, including the Department of Defense

and the Centers of Forensic Medicine.

Besides healthcare, Yumgiskor also contributes

to the development of science, education and

agriculture in the Republic of Kazakhstan.

Among the company’s clients is Nazarbayev

University, where the research laboratory is

developing with the support of Yumgiskor.

Also, the company has started negotiations with

the Republic’s veterinary laboratory (within

the Ministry of Agriculture of the Republic of

Kazakhstan) for the supply of equipment from

Randox for use in veterinary medicine and the

quality control of agricultural products.

Headquartered in Astana, Yumgiskor has

developed a wide network of branches, located

in 14 cities across Kazakhstan (Almaty, Taraz,

Shymkent, Taldykorgan, Semey, Atyrau, Uralsk,

Aktobe, Kostanay, Petropavlovsk, Kokshetau,

Pavlodar, Karaganda and Oskemen).

“The slogan of our company is ‘healthy

solutions’, which reflects our standpoint to

deliver only the best, and therefore high-quality,

medical equipment, reliable and modern, from

the world’s leading manufacturers,” says Gulnara

Kurpenova, CEO of Yumgiskor. “We’re guided

by the principles of openness, constructiveness,

professionalism and continuous improvement.

We are one of the top five suppliers of medical

equipment in Kazakhstan.”

Laboratory studies are an important part

of patient diagnosis, and therefore Yumgiskor

does not only provide laboratory equipment,

but also performs expert evaluation of

laboratories at different levels and offers

“The slogan of our company is ‘healthy solutions’, which reflects our standpoint to deliver only the best medical equipment from the world’s leading manufacturers”

solutions for the development of laboratory

services in medical institutions. In support of

the state program for healthcare development, the

Salamatty Kazakhstan, for 2011-15, the company

has developed a project for the optimization

of laboratory services and centralization of

laboratory studies.

Experts at Yumgiskor have developed a

project for organization of a molecular genetic

analysis laboratory, used in typing of donor-

recipient material for transplantation. Forming

the basis of this project is Yumgiskor’s global

experience of the creation of such laboratories.

Gulnara Kurpenova, CEO, Yumgiskor

SPONSORED FEATURE

Another promising line of business for the

company is neonatal care. “The neonatal care

sector is a recent focus of our company, and

we are confident it will evolve rapidly,” says

Gulnara Kurpenova. “One of the key objectives

of the state program for healthcare development

is to decrease infant mortality by actively

introducing advanced treatment technologies

Миссии и ценности компании Missions and values

Миссия для сотрудников: Мы призваны быть первыми, внедряя инновации в единстве с медицинским миром.

Mission for employees: We are destined to be first, introducing innovations, together with the medical world.

Миссия для клиентов, партнеров: В сотрудничестве с мировыми производителями, мы внедряем новейшие технологии в сфере медицинских услуг, с заботой о здоровье народа Республики Казахстан.

Mission for clients and partners: In collaboration with international producers, we introduce cutting–edge technologies in the medical services field, taking care of the health of the people of the Republic of Kazakhstan.

Ценности компании Company values

ЛидерствоУмение работать в командеОтветственностьРостПрофессионализмЛояльность

LeadershipTeamworkResponsibility GrowthProfessionalism Loyalty

for newborn pathology. As a responsible

company, we believe that the future of the

nation depends on the health of the children

being born in this country.”

Another business line of Yumgiskor is

cardiology and cardiac surgery. The most

advanced treatment method of cardiovascular

diseases is interventional radiological surgery,

for which the company supplies the implantable

devices and disposable tools that are required

for the diagnosis and treatment of heart and

blood-vessel diseases.

In 2010, Yumgiskor signed a contract for

distributorship with one of the world’s leaders in

the medical industry, the Olympus Corporation,

which is a top developer and manufacturer of

endoscopic and endosurgical equipment.

“Modern endoscopic equipment allows

detection of chronic and oncological disease at

an early stage, performance of low-invasive,

low-impact palliative and radical surgery

with lower expenses and complications, which

leads to improved quality of life for patients,

reduced length of stay in hospital, and therefore

decreased cost of patient’s stay in a clinic,” says

Gulnara Kurpenova.

A current business line for the company

concerns vacuum blood collection systems from

Becton Dickinson, which help to make the blood-

sampling procedure painless for the patient and

offer laboratories the possibility of obtaining

high-quality samples, while ensuring safety.

The company’s main emphasis is on providing

an individual approach to each client, ensuring

the provision of a full range of services, from

initial consultations, development of proposals

for the introduction of medical technology, and

technical support, to servicing of the equipment

and staff training. The combination of an

authentically high quality of products offered,

high standards of service and cost-effective

prices make Yumgiskor one of the most lucrative

suppliers in the medical equipment market.

In order to improve the quality of the service

offered, raise the competitiveness of the company,

reduce risks and increase the confidence of

lenders and investors, since 2011 Yumgiskor has

been working to implement the ISO 9001 quality

management system.

The company is constantly putting efforts into

optimizing its organizational efficacy, including

the performance of the company’s employees.

Currently, the company employs 160 staff. In

2011, more than 72 million tenge was invested

in staff training.

The company is actively developing its

corporate culture, with a strong focus on business

ethics. The “Code of Honor” has been developed,

which helps to maintain a creative and friendly

atmosphere in the team. One of the phrases of

the “Code of Honor” reads: “To provide the same

high-quality service to all customers”.

Not only does the company supply the

best equipment for the healthcare system in

Kazakhstan, it also trains Kazakhstani doctors

in modern methods of diagnosis and treatment

of diseases, and engages in awareness-raising

activities. Investments in the training of doctors

abroad and the sponsorship of special medical

conferences have amounted to more than

53 million tenge.

Yumgiskor is also a sponsor of events

important to the healthcare system of

Kazakhstan. One recent project involved

sponsoring the contest “From Heart to Heart”,

to select the best journalistic work covering the

issues of decreasing circulatory system disease

mortality. This project is jointly implemented

with the National Scientific Research Centre of

Surgery named after Syzganov. This year, the

sponsorship of medical institutions has amounted

to more than 36 million tenge.

Yumgiskor is an active participant and

partner in the key scientific and practical forums

and exhibitions in the national health industry.

In 2011, Yumgiskor has supported a number

of events significant for the medical world and

specialists in Kazakhstan and abroad in various

cities in Kazakhstan, such as the 19th Kazakhstan

International Healthcare Exhibition KIHE 2011

in Almaty, and the international workshop

conference “Hands saving lives of the mother

and child – effective treatments and systemic

approach to care” in Shymkent.

The company aims to achieve the goal of

becoming a world-class Kazakhstani company,

and market leader of medical equipment supply.

“Over the past five years of work we have

built a business model, the efficiency of which

has been proven by the achievements of the

company,” says Gulnara Kurpenova.

“If we’re talking of the quality it has to be the

highest; of the technology – the most advanced;

of market share – the maximum possible. In

the next five years, we are targeted to become a

major player not only in the supply of medical

equipment, but also of pharmaceuticals.

“The company plans to increase its

value through the introduction of advanced

methodologies in all four strategic dimensions,

ie the customers, employees, business processes

and finance.”

146

Raising health standards

K

The Kazakh government is improving standards of healthcare through increased investment in the country’s medical and pharmaceutical industries, partnerships with overseas institutions and ambitious public health programs. By Clare Nuttall

147

››

SPONSORED FEATURE

Medical equipment from AlmasX contributes

to the healthy future of Kazakhstan

AlmasX was founded in February 2005 and

is the only official representative of Shenzhen

Mindray Bio-Medical Electronics Co., Ltd (head

office in Shenzhen, China) in Kazakhstan.

The main business of the company is

the supply of professional equipment to

medical institutions, offering high quality

and affordable medical devices in three areas:

patient-monitoring and life-support, laboratory

diagnostics and medical imaging systems.

Headquartered in Astana, AlmasX has

offices in Almaty, Shymkent, Ust-Kamenogorsk,

Pavlodar and Aktobe.

The company guarantees its customers the

supply of medical equipment in a timely manner,

and also undertakes the training of doctors and

service technicians to work with the equipment,

providing warranty and post-warranty service.

Also, AlmasX takes responsibility for Mindray

equipment previously installed by other vendors.

Over the years, AlmasX has gained

recognition and won the trust of its customers

with a well-organized team of creative people,

meeting its clients’ needs. AlmasX is staffed with

professionals in medicine, electronics, finance,

management, marketing and international law.

During its six years’ work in the Kazakhstan

market, AlmasX has supplied equipment to

provincial and city hospitals, perinatal centers,

regional diagnostic centers, railway hospitals,

emergency centers, ambulances, hospitals

under the Departmental of Internal Affairs, the

Committee of State Security, hospitals for the

disabled and prison medical units.

The main principle of the company is to

maintain long-term partner relationships with its

clients. To this end, every two months AlmasX

organizes a special roadshow. Clients are invited

to visit Mindray plants in China, to see all stages

of manufacturing equipment. The head office of

Mindray in Shenchzhen will readily provide all

necessary information about the quality of the

equipment. As part of the visit, training and

workshops for physicians are organized.

Yerzhan Chagatayev, CEO of AlmasX, sees

its main mission in caring for the health of

Kazakhstan’s population: “This isn’t just a noble

mission, but a contribution to the health of future

generations of the country. By supplying medical

equipment of the world’s leading manufacturer to

Kazakhstan, we are committed to provide quality

services to healthcare facilities, matching the

high level of the manufacturer.”

The company holds regular training for its

employees on the servicing and installation of the

devices, as well as sales and marketing.

The equipment supplied by AlmasX has a high

assurance of reliability, backed by the impeccable

reputation of the manufacturer.

AlmasX participates in charitable programs,

supplying equipment for free, and provides

sponsorship to healthcare facilities.

Future plans of AlmasX include an IPO

in order to attract investors; participation in

governmental programs to modernize healthcare

facilities; investment in social projects and the

start-up of its own plant.

Confidence in AlmasX is based on a number

of factors:

AlmasX’s partner is Shenzhen Mindray Bio-

Medical Electronics Co Ltd, one of the first

Chinese producers of medical equipment to

receive the TUV ISO9001/13485 certification,

a sign of conformity to European CE standards

and approval by the FDA. The quality of

Mindray equipment was recognized by leading

clinics and laboratories in Europe and the US.

Mindray is fourth largest in the world in terms

of capitalization. In 2006, the company listed on

the New York Stock Exchange and is currently

the world’s leading developer, manufacturer

and marketer of medical devices.

Shenzhen Mindray Bio-Medical Electronics

Co Ltd has established a global network

of research centers in Shenzhen, Beijing,

Nanjing, Seattle, New Jersey and Stockholm.

These centers employ more than 1,400

engineers, and about 10 percent of the gross

income each year is invested in research and

development activities. Over the past seven

years, Mindray has released an average of

seven to nine new products a year.

Mindray products are used in hospitals in

more than 190 countries. A stable network

of distributors and service centers has been

firmly established.

Mindray has 31 branches across China, as well

as 15 international offices in Brazil, Canada,

France, Germany, India, Italy, Mexico, the

Netherlands, Russia, Turkey, UK, US, Spain,

Egypt and Colombia.

Медицинское оборудование от “AlmasX” -

вклад в здоровое будущее казахстанцев. Компания “AlmasX”, образованная в

феврале 2005 г., является единственным

официальным представителем компании

Shenzhen Mindray Bio-Medical Electronics

Сo.,Ltd (головной офис в г. Шеньчжень, КНР)

на территории Казахстана.

Основное направление деятельности

компании - профессиональное

оснащение медицинских учреждений

высококачественным и недорогим

медицинским оборудованием в

трёх сегментах: оборудование для

мониторирования пациентов и

жизнеобеспечения, оборудование для

лабораторной диагностики и медицинские

системы визуализации.

Центральный офис компании находится

в г. Астана, филиал в Алматы, имеются

представительства компании в Шымкенте,

Усть-Каменогорске, Павлодаре и Актобе.

Компания гарантирует своим клиентам

поставку медицинского оборудования в

установленные сроки, а также берёт на

себя обязательства по обучению врачей и

сервисных инженеров работе на оборудовании,

осуществляет гарантийное и постгарантийное

обслуживание. Дополнительно компания

берёт на себя ответственность за оборудование

компании Mindray установленное ранее

другими поставщиками.

За годы своей работы компания “AlmasX”

получила признание и завоевала доверие своих

клиентов, как слаженная команда творческих

людей, учитывающая пожелания клиентов.

Сотрудники компании это профессионалы

в сфере медицины, электроники, финансов,

менеджмента, маркетинга и международного

права.

За 6 лет работы на казахстанском рынке

компанией было поставлено оборудование

в областные и городские больницы,

перинатальные центры, областные

диагностические центры, железнодорожные

больницы, больницы скорой медицинской

помощи, в ведомственные больницы МВД,

КНБ, госпитали инвалидов, в тюремные

медсанчасти.

Главный принцип работы компании -

поддерживание длительных партнёрских

отношений с клиентами. С этой целью, раз в

два месяца, компания организует специальное

Road Show. Клиенты компании имеют

возможность приехать в Китай, на завод

компании Mindray, чтобы увидеть все этапы

производства оборудования. В головном офисе

компании Mindray в г.Шеньчжень можно

получить всю необходимую информацию о

качестве оборудования. В рамках визита на

завод проводятся специальные тренинги и

мастер-классы для врачей.

Генеральный директор компании

“AlmasX” Ержан Чагатаев видит главную

миссию компании в заботе о здоровье

казахстанцев - “ это не просто благородная

миссия, это вклад в здоровье будущего

поколения страны. Представляя в Казахстане

медицинское оборудование ведущего

мирового производителя, мы стремимся к

качественному обслуживанию медицинских

учреждений, соответствующее уровню

компании производителя”.

Компанией проводятся регулярные

тренинги для своих сотрудников по

направлениям: сервис, инсталляция,

маркетинг и продажи.

Оборудование, поставляемое компанией,

это высокая гарантия надёжности,

подкреплённая безупречной репутацией

компании производителя.

Компания “AlmasX” участвует в

благотворительных программах, поставляя

оборудование для безвозмездного

пользования, и оказывает спонсорскую

помощь медицинским учреждениям

В планах компании “AlmasX” выпуск

акций с целью привлечения инвесторов,

обязательное участие в государственных

программах по модернизации медицинских

услуг, инвестиции в социальные проекты и

запуск собственного производства.

Доверие к компании “AlmasX” базируется

на следующих показателях:

Партнёр “AlmasX” – компания Shenzhen

Mindray Bio-Medical Electronics Сo

Ltd одна из первых среди китайских

производителей медицинского

оборудования получила сертификат

TUV ISO9001/13485, знак соответствия

европейским стандартам CE и одобрение

FDA. Качество оборудования Mindray

признано ведущими клиниками и

лабораториями Европы и США.

Компания Mindray находится на 4-м

месте по уровню капитализации в мире.

В 2006 г. компания была включена в

список Нью-Йоркской фондовой биржи

и в настоящее время является ведущим в

мире разработчиком, производителем и

продавцом медицинского оборудования.

Компанией «Shenzhen Mindray Bio-

Medical Electronics Co., Ltd» создана

глобальная сеть центров исследований в

городах Шэньчжэнь, Пекин, Наньцзин,

Сиэтл, Нью-Джерси и Стокгольм. В

них трудится свыше 1400 инженеров, и

около 10% совокупного дохода ежегодно

инвестируется в научно-исследовательские

и опытно-конструкторские работы. На

протяжении последних семи лет компания

выпускала на рынок, в среднем от семи до

девяти новинок в год.

Продукция Mindray используется в

медицинских учреждениях более чем 190

стран. Сформирована устойчивая сеть

дистрибьюторов и сервисных центров.

Компания имеет 31 филиал по всему

Китаю, а так же 15 международных офисов

в Бразилии, Канаде, Франции, Германии,

Индии, Италии, Мексике, Нидерландах,

России, Турции, Великобритании, США,

Испании, Египте и Колумбии.

150

●

The government’s new approach is to tackle lifestyle choices that contribute to poor health, in particular alcohol and tobacco consumption and drug abuse

151

Rural development Clare Nuttall reports on the Kazakh government’s drive to bridge the rural-urban divide by investing in infrastructure, education, ecotourism and the provision of healthcare

W

152

Since agriculture is the main source of income for the rural population, the upturn in productivity and the government’s attention to the sector is good news

153

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155

Focusing on the future

TKazakhstan’s government is looking to develop the nation’s economy through a new $43 billion modernization program. Tim Gosling explores how this investment in industry, infrastructure, education and healthcare services will benefit Kazakhstanis in the long term

156

157

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Kazakhstan is addressing the need for a well-educated workforce to power its progress, and has invested in its higher-education programs

158

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86

160

117

101

97

59

82

130

159

124

67

46

2

129

135

122

38

113

74

76

Index of advertisers

91

8

13

18 60

104

20

10 54

127

118

154

133

72

4

64

88

93

80

84

142

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