KAZAKHSTAN

Covid-19 has aggravated already high country risk

D4

HIGH RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD180bn (World ranking 54, World Bank 2019)
Population 18.5mn (World ranking 63, World Bank 2019)
Form of state Presidential Republic
Head of state Kassym-Zhomart TOKAYEV  (President)
Next elections 2021, legislative
  • Abundance of raw materials (e.g. hydrocarbons)
  • The National Fund of the Republic of Kazakhstan (NFRK, the sovereign wealth fund) holds ample assets
  • Strategic location in Central Asia: benefits from China’s Belt and Road Initiative in terms of FDI and infrastructure investment
  • Authoritarian political regime
  • Interventionist and protectionist econo¬mic strategy
  • High dependence on global commodity prices
  • Exchange rate vulnerability to external shocks
  • Vulnerability to Russian business cycle
  • Regional instability in Central Asia
  • High external debt burden

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Italy 14.5%
1
36.7% Russia
China 13.6%
2
17% China
Russia 9.7%
3
8.9% Korea, Republic of
Netherlands 7.6%
4
4.1% Italy
France 6.3%
5
3.7% Germany

Trade structure by product

(% of total)

Exports Rank Imports
Petroleum, petroleum products and related materials 67%
1
21.3% Machinery and mechanical appliances
Iron and steel 6%
2
11.23% Electrical machinery and equipment
Ores, slag and ash 4.72%
3
6.71% Articles of iron or steel
Copper and articles thereof 4.54%
4
6.1% Road Vehicles
Inorganic chemicals, compounds of precious metals 3.84%
5
4% Mineral fuels, mineral oils and related products
The payment culture of Kazakh companies has declined due to local currency devaluation from 2014, with a high risk of further devaluation. There are no DSO statistics available and it highly depends on industry.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

 

The courts are reliable and deliver their decisions quickly. However, the requirements to provide supporting documentation for the claim are rather high. Enforcement procedures show moderate results and there is room for improvement.

Insolvency proceedings tend to bring low results for unsecured creditors, while the creditor’s claim must be accompanied by the required set of documentation.

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