Annex C. Kazakhstan’s privatisation plans
Key criteria (principles) for the formation of a list of state-owned and quasi-state sector objects to be transferred to private ownership:
1. the company carries out entrepreneurial activities that do not meet the conditions specified in paragraph 1 of Article 192 of the Entrepreneurial Code of Kazakhstan dated 29 October 2015.
2. the company is a small business in accordance with the criteria established by paragraph 3 of Article 24 of the Entrepreneurial Code of the Republic of Kazakhstan dated 29 October 2015.
3. the state owns a non-controlling block of shares (participatory interests), which do not provide the right to make strategic decisions regarding the most important aspects of the legal entity's activities. This criterion does not apply to legal entities whose activities are related to ensuring national security, the defense capability of the state, the use and maintenance of strategic and socially significant facilities.
4. the presence of individuals or private legal entities operating in this product market.
5. those who do not provide social services (in case of complete absence of competition or an insufficient number of private legal entities to fully meet the needs of the population in these services).
6. the activity does not affect issues of national security, the defense capability of the state or law and order
Compliance with one of the following criteria is the basis for initiating the inclusion for a privatisation list after approval from industry specific public authorities and taking into account the economic interests of the country:1
1. carrying out entrepreneurial activities that do not meet the conditions specified in paragraph 1 of Article 192 of the Entrepreneurial Code of Kazakhstan.
2. compliance of the subject of the quasi-state sector with the criteria established by paragraph 3 of Article 24 of the Entrepreneurial Code of Kazakhstan (subjects of small, including micro-entrepreneurship).
3. the existence of a proposal from the antimonopoly body on the transfer to the competitive environment of state enterprises, legal entities, more than 50% of the shares (stakes in the authorised capital) of which are owned by the state, and legal entities affiliated with them.
4. ownership of a non-controlling block of shares (participatory interests), which do not provide the right to make strategic decisions on important aspects of the legal entity's activities.
5. non-implementation (from 0% to 39%) or inefficient implementation (from 40% to 54%) of the development plan, action plan on key performance indicators of the subject of the quasi-state sector over the past three years.
6. the payback period of the project, determined in accordance with paragraph 5 of Article 192 of the Entrepreneurial Code of Kazakhstan.
7. the onset of the period recommended by the antimonopoly authority for the presence in this commodity market of state enterprises, legal entities, more than 50% of the shares (stakes in the authorised capital) of which belong to the state, and legal entities affiliated with them.
8. receipt by the authorised body for state property or the local executive body or the office of the akim of the city of district significance, village, township, rural district of proposals from private business entities on the acquisition of the corresponding entity of the quasi-state sector.
Note
← 1. These criteria do not apply to legal entities whose activities are related to ensuring national security, the defense capability of the state, the use and maintenance of strategic and socially significant facilities, as well as to facilities that are not subject to alienation in accordance with the laws, acts of the President and the Government of the Republic of Kazakhstan.