Pursuant to the Entrepreneurship Code, foreign investment activities in certain areas and/or territories can potentially be limited or banned by Kazakh law due to national security considerations. The National Security Law takes a broad definition of national security by encompassing "economic security" and "public security". The use of the Kazakh economic objects by foreign owners is monitored for national security reasons. National security interests must be considered at the stage of conclusion of contracts for the use of strategic resources and during their implementation. Although not explicitly discriminatory, these provisions allow the State to bar the acquisition by foreigners of strategic objects, including the participation of foreign investors in the privatisation of certain assets.
"Article 275. Investment entities
1. Investors have the right to invest in any entities and types of entrepreneurial activities, except as provided for by the laws of the Republic of Kazakhstan.
The rights and obligations of investors in respect of the entities and types of entrepreneurial activities, in which investments are made, shall be established by this Code, other laws of the Republic of Kazakhstan and relevant agreements.
2. The laws of the Republic of Kazakhstan, based on the need to ensure national security, may determine the types of activities and (or) territory in respect of which investment activities is limited or prohibited." (Entrepreneurship Code (No. 375-V ZRK of 29 October 2015), Article 275 [unofficial translation])
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"Article 13. Powers of the Government of the Republic of Kazakhstan
The Government of the Republic of Kazakhstan shall: [...]
6) decide on issuance of a permit or refusal to issue a permit to enter into a civil legal transaction that may pose a threat to national security with a strategic object owned by individuals and legal entities, based on the industry opinion of the authorized agency of the relevant industry;
[...]
Article 22. Economic security
1. Economic security includes: 1) financial security, [...]; 2) food security, [...]; 3) energy security, [...]; 4) transport security, [...]. [...]
3. In order to protect national interests of the Republic of Kazakhstan, including preservation and strengthening of the industrial potential, the State, in compliance with the guarantees provided to foreign investors, monitors the state and use of economic facilities of Kazakhstan that shall be managed or owned by foreign organizations and organizations with foreign participation.
4. Requirements for national security shall be necessarily taken into account when concluding (changing) contracts on the use of the strategic resources of the Republic of Kazakhstan, executing these contracts and monitoring their implementation, as well as when making decisions by the State Agency on issuing or refusing to issue permits for partial or full transfer by the subsoil user of the subsoil use right to another person and when issuing or refusing to issue permits for the alienation of a share of participation (shareholding) in a legal entity giving the right of subsoil use.
At the same time, the State Agency shall has the right to refuse on issue a permit to the applicant to carry out transactions stipulated by this paragraph, if this may entail concentration of rights to conduct operations with one person or group of persons from one country.
Compliance with this condition shall be also necessary in relation to transactions with affiliates. [...]
8. In order to national security, the Government of the Republic of Kazakhstan establishes restrictions on the transition and the emergence of ownership of the strategic resources (objects) of the Republic of Kazakhstan.[...]" (Law On national security of the Republic of Kazakhstan (No. 527-IV of 6 January 2012), as amended by Law No. 435-V of 04.12.2015, Articles 13 and 22 [unofficial translation])
Entrepreneurship Code (No. 375-V ZRK of 29 October 2015), Article 275
Law On national security of the Republic of Kazakhstan (No. 527-IV of 6 January 2012), as amended by Law No. 435-V of 04.12.2015, Articles 13 and 22
Government Resolution on approval of the lists of strategic objects in state and private ownership (No. 651 of 30 June 2008), last amended on 10.11.2021
[<a href="https://adilet.zan.kz/rus/docs/K1500000375">Code</a>],[<a href="https://adilet.zan.kz/rus/docs/Z1200000527">Law</a>],[<a href="https://adilet.zan.kz/rus/docs/P080000651_">Resolution</a>]