The Carrot and the Stic
The carrot and the stick - such policy has been chosen by the leadership of Kazakhstan in its interrelations with investors. During his June visit to Canada, President Nursultan Nazarbayev presented in Calgary a long-expected state program for the development of the Caspian Sea shelf. It means the new opportunities for investments into one of the most prospective oil bearing regions. At the same time, however, the head of the state declared that Kazakhstan actually stops the practice of the Production Sharing Agreements (PSA) and in future, the relations with investors will be built precisely on the principle of joint ventures with the primary participation of KazMunaiGas. A little bit earlier, the government has declared about drawing up a special, more tough tax regime for the subsoil users.
The program, the presentation of which was held in late June in Calgary, designates the aims and tasks of developing the Kazakhstan sector of the Caspian shelf. This include, first of all, maintaining the Republic's steady economic growth due to the efficient development of the hydrocarbon potential providing ecological safety in the Caspian region and developing associated industries. The program contains also the estimate of demand for energy resources, both industrial and commercial, which will be covered at the expense of foreign and domestic investments.