PETROLEUM. Analytical journal. New projects, fields’ development, production, processing and transportation of oil and gas, presentation of the companies, statistics on the production of hydrocarbons, monitoring of investment legislation.

Problems with Obtaining Refunds from the Budget of Excess VAT Accumulated During Mineral Exploration

Lately, obtaining a refund of value added tax (VAT) incurred in connection with the export of goods has been a pressing issue. Despite the fact that the tax legislation clearly regulates the procedure for refunding excess VAT from the budget, in practice there are various obstacles for taxpayers. This article focuses on the amount of excess VAT accumulated during the exploration period prior to the export of minerals.

Key Features of the Engagement of Foreign Labour in the Republic of Kazakhstan

Kazakhstan, like many other countries, has an established permit procedure for employing foreign workers.  In this case, obtaining a permit for engagement of foreign workers is the responsibility of an employer.

In practice employers frequently commit violations when engaging foreign workers owing to incomplete knowledge of the appropriate procedures.  Most of these violations involve fines for employers and have a negative impact on the engagement of non-residents in the future.  Often, employers do not have a holistic view of all phases of the process of engaging such workers.

Kazakhstan is due to adopt a new law “On the Main Pipeline”

In keeping with GRATA Law Firm’s policy of informing clients regarding important legal developments that may affect their business, we would like to draw your attention to recent changes in Kazakh legislation in connection with the adoption of the new draft law entitled “On the Main Pipeline.”   

New Law of the Republic of Kazakhstan

The President of the Republic of Kazakhstan signed the Law of the Republic of Kazakhstan "On Gas Supply and Gas" (hereinafter - the "New Law", "Gas Law" or the "Law"), the main provisions of which are discussed in this article. The following describes what we believe to be the most important specialties and provisions of the Law.

Gas Law is a novelty for legislation of the Republic of Kazakhstan. Previously gas and the gas supply sphere  were partially regulated by the subsoil use legislation and a number of the GovernmentResolutions. The Law aims to address the relations in the  gas and gas supply sphere and as a general principle seeks to prioritise the internal market provision of commercial  (under the Law, a mixture of hydrocarbons with a predominance of methane) and liquefied petroleum gas (under the Law, a mixture of propane and butane) produced in the RK.

Law of the Republic of Kazakhstan

One of the most serious environmental and economic problems connected with oil operations in Kazakhstan is the refusal to flare associated and natural gas in fields and the transition to its processing. Even in the recent past, gas flaring has been a part of the process of oil companies in Kazakhstan and occurred in almost all fields.

With the introduction in 1999, and then in 2004 and 2005, of amendments to the Law "On Oil", dated 28 June 1995, associated gas flaring was prohibited, except for a few cases mentioned in the Law.

Specifics of Subsoil Use in Kazakhstan. Legal Aspects

s a rule, those activities, which are focused on production, processing, consumption and sale of natural resources, demand special attention, taking into account specific regulations applying to this industry.
Over the years of independence, Kazakhstan has developed pretty efficient regulatory base for subsoil use in accordance with the international standards.

New Aspects in Transactions on the Transfer of the Subsoil Use Right under the New Law of the Republic of Kazakhstan ‘On Subsoil and Subsoil Use’

Despite the strengthening of the requirements to the obtaining of an approval of a competent authority to commit transactions on the transfer of subsoil user rights, including by the transfer of shares (participatory interests) in a legal entity that holds the subsoil use right, as well as the pre-emptive right of the Republic of Kazakhstan to the transferred subsoil use right, shares (participatory interests) in a subsoil user or legal entities that may directly or indirectly govern the decisions of subsoil users, subsoil use is one of the high priority area for investors.

Issues on THE Unilateral Termination of Subsoil Use Contracts

Disputes in relation to the unilateral termination of subsoil use contracts (the ‘Contract’) form a substantial part of the litigated cases on the rights stipulated by the legislation on subsoil.

This is our brief review of judicial practice established under the Law of the Republic of Kazakhstan No. 2828 ‘On Subsoil and Subsoil Use’ dated 27 January 1996 (hereinafter referred to as the ‘Old Law’), with the aim of providing an analysis of the specific interpretations and applications of the legislation of the Republic of Kazakhstan by the courts in adjudicating civil cases of this category, description of problems that lead to the litigated cases, and our own opinion concerning the legality and legitimacy of certain judicial decisions.