Kazakhstan's vast hydrocarbon and mineral reserves form the backbone of its economy. Geographically the largest of the former Soviet republics, excluding Russia, Kazakhstan, g possesses substantial fossil fuel reserves and other minerals and metals, such as uranium, copper, and zinc. It also has a large agricultural sector featuring livestock and grain. The government realizes that its economy suffers from an overreliance on oil and extractive industries and has made initial attempts to diversify its economy by targeting sectors like transport, pharmaceuticals, telecommunications, petrochemicals and food processing for greater development and investment. It also adopted a Subsoil Code in December 2017 with the aim of increasing exploration and investment in the hydrocarbon, and particularly mining, sectors. ++ Kazakhstan's oil production and potential is expanding rapidly. A $36.8 billion expansion of Kazakhstan's premiere Tengiz oil field by Chevron-led Tengizchevroil should be complete in 2022. Meanwhile, the super-giant Kashagan field finally launched production in October 2016 after years of delay and an estimated $55 billion in development costs. Kazakhstan's total oil production in 2017 climbed 10.5%. ++ Kazakhstan is landlocked and depends on Russia to export its oil to Europe. It also exports oil directly to China. In 2010, Kazakhstan joined Russia and Belarus to establish a Customs Union in an effort to boost foreign investment and improve trade. The Customs Union evolved into a Single Economic Space in 2012 and the Eurasian Economic Union (EAEU) in January 2015. Supported by rising commodity prices, Kazakhstan's exports to EAEU countries increased 30.2% in 2017. Imports from EAEU countries grew by 24.1%. ++ The economic downturn of its EAEU partner, Russia, and the decline in global commodity prices from 2014 to 2016 contributed to an economic slowdown in Kazakhstan. In 2014, Kazakhstan devalued its currency, the tenge, and announced a stimulus package to cope with its economic challenges. In the face of further decline in the ruble, oil prices, and the regional economy, Kazakhstan announced in 2015 it would replace its currency band with a floating exchange rate, leading to a sharp fall in the value of the tenge. Since reaching a low of 391 to the dollar in January 2016, the tenge has modestly appreciated, helped by somewhat higher oil prices. While growth slowed to about 1% in both 2015 and 2016, a moderate recovery in oil prices, relatively stable inflation and foreign exchange rates, and the start of production at Kashagan helped push 2017 GDP growth to 4%. ++ Despite some positive institutional and legislative changes in the last several years, investors remain concerned about corruption, bureaucracy, and arbitrary law enforcement, especially at the regional and municipal levels. An additional concern is the condition of the country's banking sector, which suffers from poor asset quality and a lack of transparency. Investors also question the potentially negative effects on the economy of a contested presidential succession as Kazakhstan's first president, Nursultan NAZARBAYEV, turned 77 in 2017.

Fitch rating: BBB (2016)

Moody's rating: Baa3 (2016)

Standard & Poors rating: BBB- (2016)

grain (mostly spring wheat and barley), potatoes, vegetables, melons; livestock

oil, coal, iron ore, manganese, chromite, lead, zinc, copper, titanium, bauxite, gold, silver, phosphates, sulfur, uranium, iron and steel; tractors and other agricultural machinery, electric motors, construction materials

calendar year

Italy 17.9%, China 11.9%, Netherlands 9.8%, Russia 9.3%, Switzerland 6.4%, France 5.9% (2017)

oil and oil products, natural gas, ferrous metals, chemicals, machinery, grain, wool, meat, coal

machinery and equipment, metal products, foodstuffs

Russia 38.9%, China 16.1%, Germany 5.1%, US 4.3% (2017)

tenge (KZT) per US dollar -

general assessment: one of the most progressive telecoms sectors in Central Asia; vast 4G network; low fixed-line and fixed-broadband penetration, moderate mobile broadband penetration and high mobile penetration; mobile market highly competitive and slow growth due to saturation (2020)

domestic: intercity by landline and microwave radio relay; number of fixed-line connections is 17 per 100 persons; mobile-cellular usage increased rapidly and the subscriber base approaches 139 per 100 persons (2019)

international: country code - 7; international traffic with other former Soviet republics and China carried by landline and microwave radio relay and with other countries by satellite and by the TAE fiber-optic cable; satellite earth stations - 2 Intelsat

the state owns nearly all radio and TV transmission facilities and operates national TV and radio networks; there are 96 TV channels, many of which are owned by the government, and 4 state-run radio stations; some former state-owned media outlets have been privatized; households with satellite dishes have access to foreign media; a small number of commercial radio stations operate along with state-run radio stations; recent legislation requires all media outlets to register with the government and all TV providers to broadcast in digital format by 2018; broadcasts reach some 99% of the population as well as neighboring countries

.kz

UP (2016)

658 km condensate, 15,256 km gas (2017), 8,013 km oil (2017), 1,095 km refined products, 1,975 km water (2016) (2017)

by type: general cargo 2, oil tanker 5, other 117 (2019)

主要海港: Caspian Sea - Aqtau (Shevchenko), Atyrau (Gur'yev)

河港: Oskemen (Ust-Kamenogorsk), Pavlodar, Semey (Semipalatinsk) (Irtysh River)