Reasons fueling foreign investment decline in Kazakh economy announced

Astana, Kazakhstan, Nov.6

By Daniyar Mukhtarov - Trend: There has been a certain drop in foreign investments in Kazakhstan's economy in the last two years, the country's Deputy Prime Minister - Minister of Industry and New Technologies Asset Issekeshev said at briefing in Astana on Wednesday.

"In particular, investments in two large projects were completed in 2012. The first is "Kashagan" and the second is the purchase of Telia Sonera (telecommunications assets). Therefore, there is a decline in investment volumes this year," he said.

However, according to the minister, the structure of direct investments has changed in Kazakhstan.

"In particular, an increase of investments in the processing industry is occurring in our country. This is related to the fact that the president personally oversees this issue and has held negotiations with the leaders of the largest states," the Deputy Prime Minister said.

As Issekeshev said, according to the analysis of leading companies, Kazakhstan ranks 19th in the world and 2nd among the developing countries after Russia for direct foreign investments.

"The government has a national plan for receiving investments. We have around 400 business initiatives in store, as there is a rivalry for investments. We have already implemented some 96 projects. Additional 300 projects are expected to be implemented. In particular, "Toyota" and "EuroChim" have already begun the construction of their plants in Kazakhstan's territory," the Deputy Prime Minister said.

According to Issekeshev, Kazakhstan intends to be the best investment hub in the region.

"It is important for us that the investors would come here and from here would be able to enter Russian, Chinese, Central Asian and Caucasus markets with their products. This is the main idea of the "State Program of Forced Industrial-Innovative Development-2": export and conquest of neighbouring markets," Issekeshev said.