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Program to support ventures experiencing problems with sales developed in Kazakhstan

Business Materials 24 July 2020 18:08
Program to support ventures experiencing problems with sales developed in Kazakhstan

BAKU, Azerbaijan, Jul. 24

By Nargiz Sadikhova - Trend:

Kazakhstan’s Samruk Kazyna Sovereign Wealth Fund has developed a program that provides for the conclusion of direct contracts by companies of Samruk-Kazyna JSC with enterprises experiencing problems with selling their products, Trend reports with reference to Kazakh media.

“In the context of a downturn in economic activity associated with thr COVID-19 pandemic, the role of organizing procurement increases significantly and is seen as a means of restoring economic activity,” the report said.

The report said that the system of off-take agreements was launched in 2019. The fund’s import substitution program is also being expanded significantly.

“The traditional approaches to procurement have been revised. And if earlier, it provided for a purely intercompany operating function, now it includes point mechanisms to support domestic business,” the report said.

The report also said that Samruk Kazyna has developed a program that provides for the conclusion of direct contracts by its companies with enterprises experiencing problems with selling their products.

“The program provides for the conclusion direct contracts by our companies with enterprises experiencing problems with the sale of their own products. This will allow our companies to purchase the necessary goods, and enterprises to avoid stopping the production process, and on the contrary, to increase production capacity and save jobs,” the report said.

The production load increase will provide for additional 6 billion tenge ($14.5 million) paid in taxes to the state budget.

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