Kazakhstan is a state in the center of the Eurasian continent. It borders with Mongolia, the countries of Central Asia and Russia. The country is an economic leader in Central Asia. Within the CIS, this is the second economy after Russia. Kazakhstan is a member of the Eurasian Economic Union. The country has various types of minerals, which are presented in sufficient quantities. Export of products plays an important role in the economy and is focused on countries such as Russia, China, and the countries of Central Asia. Hydrocarbons play an important role in the structure of exports.
Economy of Kazakhstan
Kazakhstan's economy relies heavily on China and Russia. In the past, the USSR, of which it was a part, had a decisive influence on its development. Currently, the most developed industries in this country are engineering, metalworking, oil and gas, metals and minerals.
In the first years after the collapse of the USSR and gaining independence, mistakes were made in the management of the country, which led to the loss of sales markets and the deterioration of the state economy.
Economy after the collapse of the Soviet Union
Like Russia, Kazakhstan experienced economic turmoil after the collapse of the Soviet Union. In 1992, hyperinflation was observed in the country, during which prices soared by 2500%. In 1995-96, there was a state of stagnation, and then a gradual growth of the economy.
The economic situation has improved since the beginning of the 2000s, and significant inflation was observed only in some years and was moderate. Such price increases were observed in 2007, 2008 and 2009. Now the growth of the economy of Kazakhstan is 4.4% per year.
As for external debt, it is 12% of the country's GDP ($28 billion).
Main industries and minerals
Kazakhstan is provided with almost all types of fossil raw materials. This country has significant reserves of oil and gas, as well as coal. However, the main distinguishing feature of natural resources is the high content of tungsten - 50% of world reserves, uranium - 21%, lead - 19, zinc - 13 and non-ferrous metals - 10. Therefore, the main direction of the country's economy is mining.
A large amount of minerals leads to a wide development of industrial production:
- oil and gasindustry;
- coal, oil and gas production;
- metallurgical industries;
- machinery and metalworking;
- power generation and distribution networks;
- petrochemical industry.
Oil and gas production
This area has been developed relatively recently. The country is in the top ten in terms of oil and gas reserves. If we consider the CIS countries, then it is in second place after Russia. Basically, oil is produced in the western part of the republic, in the Caspian region. Now it is the main source of income for Kazakhstan. Basically, oil is exported.
Coal mining
Kazakhstan is among the top ten countries in terms of reserves of this solid fuel. The occurrence of coal is mostly shallow, so it is quite easy to mine. Two-thirds of the country's power plants operate on coal. It is also exported, for example to Russia.
Metallurgy and engineering
The metallurgical industry is focused on the production of copper, chromium and manganese. Metalworking products make up a significant part of the country's export earnings. Until 2000, it occupied a leading position in production, but after that, mechanical engineering began to play a more significant role.
Energy and petrochemistry
The importance of the electric power industry in the economy of this Central Asian state is very high. It is required to maintain a developed industry. For electricity generationlocal raw materials are used. The leaders in this area are Pavlodar and Karaganda regions.
Growth in oil and gas production favored the development of chemistry and petrochemistry. In addition to them, the pharmaceutical industry is also developing. At the same time, the quality of products is rather low, which is associated with the backwardness of the refinery.
Who does Kazakhstan trade with?
Association into a customs union with Russia and Belarus has identified priority areas for trade and economic ties. Basically, these are the CIS countries and Russia. But recently the country is increasingly entering the markets of far abroad: Turkey, Germany, the USA, China and others. Over the past 10 years, trade with them has grown 10 times. About 60% of exports go to Russia and the CIS countries, while the share of our country is the largest and in monetary terms amounts to $11.8 billion.
What does Kazakhstan export?
The main exports of this country are oil, gas, coal, electricity, machinery and metals. Oil dependence is getting stronger and stronger. In addition, new large fields are being discovered, the development of which may lead to Kazakhstan's withdrawal from the agreement between oil-producing countries on freezing production levels. In 2013, the share of oil and products of its processing in the share of exports was 35 percent, and in 2014 - already 38%. In addition to hydrocarbons, important items of external supplies are:
- ferrous and non-ferrous metals (33% of the total);
- rare ores (uranium, tungsten, nickel) – 12%;
- agricultural products - 9%;
- other products –10.5 percent.
Agriculture is an important share in Kazakhstan's exports. A significant part of the country's territory has been plowed up. Most of the grain is exported. There is almost a ton of grown grain per inhabitant. Mostly these are high-quality hard varieties. Up to 16% of the able-bodied population is involved in agriculture. Legumes and root crops are also grown.
In addition to obtaining plant products, farmers are also busy breeding animals. These are mainly sheep, goats, cows, horses, pigs, camels. Directly in Kazakhstan, the so-called white-headed breed of cattle was bred, which is now actively bred throughout the CIS.
Besides animals, birds are also actively bred here. There are 34 million pieces in total. Poultry farms produce 4 billion eggs a year. In the future, part of this production will be exported. The export of services is underdeveloped. However, this may change in the future.
In recent years, due to lower prices for oil and partly for metals, the export earnings of Kazakhstan (as well as Russia) has decreased significantly. This led to a deterioration in the performance of the economy and the life of the population.
Commodity export structure
Non-commodity exports are less significant than raw materials, and their scale is not too impressive. The export of services is underdeveloped. This is largely due to the raw material orientation of the economy. The export structure of goods is as follows:
- Plastic and products based on it. Kazakhstan sells 42,521 tons of such products, and foreign exchange earnings amount to $52 million.
- Onsecond place in terms of sales share - textiles. 15,814 tons of it are exported, and the proceeds are $41 million.
- Various drinks, including alcohol, + vinegar - this is 71474 tons and 33 million dollars in foreign currency.
- Ball or roller type bearings are exported in the amount of 13283 tons, which gives the economy 27 million dollars.
- Vehicles and transportation equipment generate $23 million.
- Sugar and confectionery sold totaling $18 million.
- Agricultural fats generate similar foreign exchange earnings.
- Other products based on agricultural raw materials provide an amount equal to $15 million in the country.
Receipts from sales of hardware and sanitary ware play a much smaller role. Export of goods to Kazakhstan is mainly focused on engineering and machine tool products.
Export situation in recent years
After the crisis of 2014-16. the situation in the economy of Kazakhstan and exports is gradually improving. The price of oil and metals is growing, as well as oil production in this country. In the first half of 2017, the share of raw materials in the export structure amounted to 86.6%, which is higher than in previous years, but still lower than before the crisis period. In 2017, oil sales abroad increased by 4.2% compared to the previous year. Gas exports increased by 10% over the same period. Revenues from the sale of fuel oil increased almost 2 times, iron ore - by 38.4%, and coal - 2.1 times. At the same time, shipments of certain types of raw materials decreased slightly.
The role of metals in exportproduction over the past 3 years has increased dramatically. Now it is over 18 percent, while before 2015 it was in the region of 10. Revenue from the sale of metals for the first half of 2017 amounted to $4.2 billion.
The export of chemical and agricultural products by Kazakhstan turned out to be in the red. The largest share of chemistry was noted in 2015 and 2016, and for agricultural products - in 2016. The decline in the agricultural sector is associated with a decrease in demand for agricultural products in Iran and Uzbekistan.
Some decrease in the share in export operations was observed in engineering products. It decreased from 2016 to 2017 by 0.8 percent (from 2 to 1.2). At the same time, there is a gradual increase in textile sales. The main buyer of clothes from Kazakhstan is now China. In just a year, sales of this type of product to the Celestial Empire increased from 1.9 to 58.5 million dollars. At the same time, Chinese clothing imports amounted to $33 million.
The main buyer of Kazakh plumbing, plastic tubes, pipes and hoses is Russia. Crop products and milk products are actively bought by Russia and Kyrgyzstan. It also sells well in Turkmenistan.
Kyrgyzstan is the main fat importer. Many of them go to Uzbekistan, as well as to China. Russia is the leader in imports of sugar produced in Kazakhstan.
And the main and almost monopoly buyer of bearings is Russia. Alcoholic and non-alcoholic drinks are exported to Russia and Kyrgyzstan.
Thus, Russia's trade withKazakhstan plays a decisive role for the economy of this Asian country.
What Kazakhstan buys
Export and import of Kazakhstan are interconnected. This country produces little high-tech products and is forced to import them from abroad. Export of goods to Kazakhstan from Russia is as follows:
- petroleum products;
- nuclear reactors and industrial boilers;
- vehicles other than rail and tram;
- mechanics and equipment;
- wood;
- plastic products;
- electronics.
Documents
When exporting to Kazakhstan, VAT has a zero rate, but subject to the submission of a tax declaration to the relevant authority. The following documents are also required:
- Export contract or contract.
- Application for payment of taxes and importation of goods in the current form.
- Transport documents to confirm the turnover.
- Documents to confirm the grounds for using the zero VAT rate.
Documents are provided within 180 days from the date of shipment of products, any specific features are not provided. Thus, exports and trade with Kazakhstan do not have major legal barriers.
