Kazakhstan’s EITI membership suspension to be lifted
In 2005, at the initiative of the President, Kazakhstan joined the global Extractive Industries Transparency Initiative (EITI or EITI). The global project has a high status of an international, political and anti-corruption nature and is aimed at the transparency of the income of companies and the government in the extractive sector. Therefore, in Kazakhstan, at the legislative level, the obligation of subsoil users to comply with the terms of the EITI Memorandum of Understanding and submit reports on taxes and other payments to the country’s budget, confirmed by an audit in accordance with international standards, is compulsory.
The National Council of Stakeholders coordinates the implementation of the EITI in the country. It includes representatives of ministries, associations of oil and mining enterprises and the non-governmental sector, and deputies of the Mazhilis of the Parliament. In accordance with the requirements of the initiative’s standard, member countries are required to regularly publish the National EITI Implementation Report, and the NSC oversees the process of its preparation. In this regard, the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan notes that due to the threat of the spread of COVID-19 and the events of January 2022, the preparation of the report was postponed to a later date. The Ministry also emphasises that Kazakhstan is committed to the principles of the EITI and continues to be a country implementing the initiative.
On June 29, 2022, the National Council of Stakeholders held a meeting, as a result of which it was decided to publish a single Report on the results of 2020 and 2021 with a breakdown of data by year, and also approved the terms of reference for the Report development service. Only after the implementation of these activities, the Ministry began the procedures for public procurement at the choice of an independent administrator for the preparation of the report. This, as well as the detailed study of a large amount of information, required additional time to prepare the document. The report is currently being re-approved by members of the NSC, including representatives of civil society, in accordance with the requirements of the standard. The publication of the agreed report is planned for the near future. Thereafter, in accordance with the EITI Standard, the suspension of Kazakhstan’s membership should be lifted.