Kazakhstan Government Introduces Additional Regulations for Implementation of Investment Projects

The Kazakhstan government recently issued new rules relating to definition of efficiency of investment projects and investors’ counter-undertakings thereunder.

In furtherance of the recent amendments to the Kazakhstan Tax Code and Entrepreneurial Code (which will become effective from 1 January 2026) introducing differentiated legal frameworks for investment preferences and other state support measures applicable to investment projects in Kazakhstan, the acting Minister of National Economy of the Republic of Kazakhstan issued two new regulatory orders on 15 October 2025:

• Order No. 106 on approving the rules for the assessment of effectiveness of provided investment preferences (Rules No. 106)
• Order No. 107 on approving the rules and timeline for establishing the investor’s counter-undertakings under other types of activities not regulated by Kazakhstan law “On industrial policy” (Rules No. 107)

Both orders will enter into force on 1 January 2026.

In this LawFlash, we summarize key takeaways from the rules.

RULES NO. 106

Rules No. 106 establish procedure for analyzing and assessing the effectiveness of investment preferences provided to investors and their impact on social and economic development (Assessment). The Assessment will be conducted by the Ministry of National Economy on the basis of reporting information on investment projects’ implementation to be submitted by investors, local state agencies, and the Investments Committee of Kazakhstan, and will cover all investment projects involving granting investment preferences.

The Assessment is conducted in accordance with the following criteria:

• Economic efficiency—e.g., volume of investments, increase in production and tax revenues, and increase in export/import substitution potential
• Social efficiency—e.g., number of jobs created, level of wages, development of human capital, and improvement of working conditions
• Environmental efficiency—e.g., introduction of technologies reducing emissions and minimization of negative impact on environment
• Technologic efficiency—e.g., introduction of innovations, technology transfer and productivity improvement, production localization, and training of personnel

The investment projects are assessed at their different stages, including the following:

• Short-term assessment: within one year after project commissioning
• Mid-term assessment: three years after project commissioning
• Long-term assessment: five years after project commissioning

The outcome of the Assessment is the efficiency index (level) that can be high, medium, low, or inefficient, and which ultimately may serve the basis for adjustment of the terms and conditions for granting investment preferences.

RULES NO. 107

Rules No. 107 provide for procedure and timeline for establishing the investor’s counter-undertakings under an investment agreement for the implementation of the investment project in the following areas:

• Agriculture, forestry, and fisheries
• Construction
• Wholesale and retail trade
• Repair of motor vehicles and motorcycles
• Transportation and storage
• Accommodation and food services
• Information and communication
• Financial and insurance activities
• Real estate activities
• Professional, scientific, and technical activities
• Administrative and support service activities
• Education
• Healthcare and social services
• Arts, entertainment, and recreation

The investor’s counter-undertakings are set by the competent authority of the relevant area/industry (Competent Authority) and are subject to the approval of the negotiation commission (Commission) formed for reviewing the draft investment agreement.

The timeline for fulfilling counter-undertakings by the investor is determined by the Competent Authority and depends on the nature and duration of the investment project, but in any case shall not exceed 25 years. According to the Rules No. 107, the timeline for fulfilling counter-undertakings varies from seven to 25 years depending on the area of investment activity.

The Commission revises the timeline for fulfilling counter-undertakings by the investor in case of changes in the timeline of investment project implementation.

PRACTICAL IMPLICATIONS FOR INVESTORS

• Investors should prepare for annual reporting obligations and ensure that internal systems are aligned with the formats required under Rules No. 106.
• Early engagement with the Investments Committee and Competent Authority is advisable to clarify expectations and avoid delays.
• Legal and strategic review of existing investment contracts is recommended to assess potential exposure under the new assessment framework.