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Companies face difficulties due to Kazakhstan withdraws draft law on Transportation Code

Business Materials 28 January 2009 17:17 (UTC +04:00)

Kazakhstan, Astana, Jan. 28 / Trend , K.Konirova /

Due to the Kazakhstan Government has withdrew the draft law on Transport Code have caused difficulties in some companies, MP Zeynulla Alshimbayev said turning to PM Karim Masimov at today's plenary meeting in Astana.

"The companies that face difficulties are Kazmortransflot, KazMunaiGas Marine Oil Company, Caspy Meruerty Operating Company B.V., Kupmangazy Petroleum, North-Capian operation company and others. These companies are occupied in oil and offshore operations on the Kazakh shelf of the Caspian Sea," Alshynbayev added.

In June 2005 changes banning to swim under Kazakh flag to ships of foreign juridical entities were introduced to the law on Trade navigation of Kazakhstan. This and other issues must have been reflected in the Transportation Code. However, the work in this direction was postponed.

For short-term solution of the problem operators were given three years prolongation on the basis of the Brussels agreement on cooperation between Kazakhstan and the EU.

This prolongation was given to operators to register ships in the bareboat -charter register of Kazakhstan. To use the prolongation operators had to conclude bareboat charter and sub bareboat charter deals with sub suppliers.

"Thus, the existing legislation, in particular the Law on Trade navigation, limited operators to restrict the right to conduct offshore oil operations, because they can not get their flags that is inconsistent with their rights under signed agreements and international practice," Alshymbayev said.

PM's meddling to the case has resulted in ships were allowed to swim under Kazakh flag and to register in bareboat charter in the fourth quarter of 2008. However, this is a temporary measure, believes Alshymbaev.

"Due to the fact that the time of registration of ships under the Brussels agreement has expired, I ask you to consider accelerating income above the parliament," Alshymbayev added.

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