RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/KAZ/6/Rev.2 
6 September 2004 
 (04-3690) 
Working Party on the 
Accession of Kazakhstan Original:   English 
 
 
 
ACCESSION OF KAZAKHSTAN 
 
Submission from the Republic of Kazakhstan  
 
Revision  
 
Domestic Support and Export Subsidies in the Agricultural Sector 
  
 The following submission, dated 2 September 2004,  is being circulated at the request of the 
Delegation of the Republic of Kazakhstan.   
_______________ 
  
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 2 Supporting Table DS:1 
DOMESTIC SUPPORT:  KAZAKHSTAN 
REPORTING PERIOD:  Calendar Years 1996-1998 
 
Measures exempt from the reduction commitment - "Green Box" 
 
Monetary value of measures Name and description of measure with 
reference to criteria in Annex 2 
of the Agreement on Agriculture 
 KZT 000s US$ 000s Program description 
1 2   3 
para 2: General Services    
(a)  research, including general 
research, research in connection 
with environmental programmes, 
and research programmes relating to particular products    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 2 b. Measures for pest control, 
plant diseases protection, and veterinary measures    
1996 1,635,779 24,313.0 
1997 1,995,324 26,463.2 
1998 1,813,784 22,672.3 
average for 3 years  1,814,962 24,482.8 Development and implementation of preventive veterinary, sanitary, and anti-epizootic measures; 
diagnostics and control of infectious diseases of livestock; state veterinary control over imports, exports, transit, and intra-Republican movements of products and raw materials of animal origin, 
fodder, chemicals,  pharmaceutical products, other cargo subject to control, as well as control over 
movements of cattle.  Analysis of phytosanitary conditions, natural spreading of pests and diseases of crops, their migration patterns, and possibilities to use various plant protection 
products with the view to prevent their further spreading;  quarantine measures, liquidation of 
focuses of infection; plant protection measures.   
(c) training services, including both 
general and specialist training 
facilities    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0    
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 3Monetary value of measures Name and description of measure with 
reference to criteria in Annex 2 
of the Agreement on Agriculture 
 KZT 000s US$ 000s Program description 
1 2   3 
(d) extension and advisory services, 
including the provision of means 
to facilitate the transfer of 
information and the results of research to producers and 
consumers    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 2е. Assessment and control of 
quality of seeds and new seed varieties    
1996 222,266 3,303.6 
1997 145,455 1,929.1 
1998 129,000 1,612.5 
average for 3 years 165,574 2,281.7 Intergovernmental state control over quality, and stor age of crop seeds, as well as measures taken 
by agricultural enterprises as preparation for sowing;  fulfillment of the national standards on 
seeds, improvement of the quality of works relati ng to seed production and certification; control 
and documenting of sowing characteristics of seed s of all agricultural crops. Reliable assessment 
of new varieties of agricultural crops selected in  the Republic of Kazakhstan or abroad aimed at 
the selection of varieties best suited for regionalization and production purposes.   
(f)  marketing and promotion services, 
including market information, advice and promotion relating to 
particular products but excluding 
expenditure for unspecified purposes that could be used by 
sellers to reduce their selling price 
or confer a direct economic benefit to purchasers    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0    
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 4 Monetary value of measures Name and description of measure with 
reference to criteria in Annex 2 
of the Agreement on Agriculture 
 KZT 000s US$ 000s Program description 
1 2   3 
para 2 g. Operation of water reservoirs, 
channels, implementation of protecting, 
commissioning, adjusting, anti-sludge, 
anti-flood works connected with 
administering and regulation of water 
usage   
1996 285,469 4,243.0 
1997 192,494 2,553.0 
1998 462,712 5,783.9 
average for 3 years 313,558 4,193.3 Operation of water reservoirs; operation of na tional, oblast, and rayon channels, and other 
facilities relating to water supply of consumers;  implementation of protecting, commissioning, 
adjusting, anti-sludge, anti-flood works connected with administering and regulation of water use. 
para 2 g. Development of forecasting 
and regional programs on land use and 
protection. Implementation of 
topographic, geodetic, and other research works, soil survey and geo-
botanical prospecting, land monitoring   
1996 321,000 4,774.1 
1997 628,614 8,337.0 
1998 572,155 7151.9 
average for 3 years 507,256 6,754.3 Implementation of land relations in the sphere of state control over land resources. Creation, 
development, and modernization of national ge odetic networks; development and updating of 
paper-based topographic maps of all scales, design and compilation of political administrative 
maps, and atlases. Management of land rights in the Republic of Kazakhstan, including 
introduction of measures on improvement of land  legislation to allow expansion of leasing and 
mortgage operations. Introduction of the national land register and land monitoring.  Compilation 
and management of the data bank on the state of  land resources in the Republic of Kazakhstan; 
land zoning, and state control over land use and protection under set procedures, protection of 
rights of owners of land lots and land users, by issuing documents certifying their rights; creation 
of favorable conditions for the development of the land market; land organization of settlements.   
 
para 3. State stocks for food security 
purposes   
1996 6,000,600 89,188.5 
1997 0 0 
1998 0 0 
average for 3 years 2,000,200 29,729.5 Grain procurement for the national reserve of the Republic of Kazakhstan. The national reserve 
serves to meet mobilization needs and ensure food  security of the Republic  of Kazakhstan. Grain 
of the national reserve has been sold in the domestic market at market prices to winning bidders of open biddings or marketed in the commodity exchange.  
para 4. Domestic food aid    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 5. Direct payments to producers    
1996 0  0    
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 5Monetary value of measures Name and description of measure with 
reference to criteria in Annex 2 
of the Agreement on Agriculture 
 KZT 000s US$ 000s Program description 
1 2   3 
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 6. Decoupled income support     
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 7. Government financial 
participation in income insurance and income safety-net programmes    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 8. Payments (made either directly 
or by way of government financial participation in crop insurance 
schemes) for relief from natural 
disasters    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 9. Structural adjustment assistance 
provided through producer retirement 
programmes    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 10. Structural adjustment 
assistance provided through resource 
retirement programmes     
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 6 Monetary value of measures Name and description of measure with 
reference to criteria in Annex 2 
of the Agreement on Agriculture 
 KZT 000s US$ 000s Program description 
1 2   3 
1996    
1997    
1998    
average for 3 years    
para 11. Structural adjustment 
assistance provided through investment 
aids    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 12. Payments under environmental 
programmes    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
para 13. Payments under regional 
assistance programmes    
1996 0  0   
1997 0  0   
1998 0  0   
average for 3 years 0  0   
TOTAL:    
1996 8,465,114 125,822  
1997 2,961,887 39,282  
1998 2,977,651 37,221  
average for 3 years 4,801,551 67,441.7  
 
 
_______________ 
¹ Data source:  budgetary documents of the Ministry of Agricultu re of the Republic of Kazakhstan. Subsidies of these categories  have been based on budgetary 
programs, and have not been granted to farms. Operating costs ha ve not been subsidized. Subsidies have not been connected with consumer prices.  
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 7Supporting Table DS:2 
DOMESTIC SUPPORT: KAZAKHSTAN  
REPORTING PERIOD: Calendar Years 1996-1998 
 
Measures exempt from reduction commitments - Special  and Differential Treatment - "Development Programs" 
 
Monetary value of measures         
  Measure type Name and description of measure 
with reference to criteria in Article 
6:2 of the Agreement on 
Agriculture KZT 000s USD 000s Program description Data Sources 
  1 2 3   4 5 
1. Preferential credits to agriculture    
1996 2,683,149 39,880 
1997 829,242 10,998 
1998 3,130,952 39,137 
average for 3 years 2,214,448 30,005 Subsidies have been granted in the framework of 
the Loan Agreement concluded between the Republic of Kazakhstan and the Asian 
Development Bank on 11 December 1995 to fund 
purchase of agricultural production and processing facilities, agricultural machinery, 
establishment of wholesale markets and other 
market infrastructure, necessary to sell 
agricultural products, as well as to finance the 
required working capital. Ministry of 
Agriculture, 
ExImBank, 
ADB 
2. State guarantees on external non-
governmental loans    
1996 7,719,236 114,733 
1997 0 0 
1998 0 0 
average for 3 years 2,573,079 38,244 In 1996 state guarantees have been settled under 
the Resolution of the Government of the Republic 
of Kazakhstan No. 1022 of 14 September 1994 
"On Implementation of the Investment Project of Purchase of Agricultural Machinery by JSC" 
"Ken Dala" in the Fr amework of the Loan 
Granted by the American ExImBank for Supply of Combine Harvesters and Cotton Harvesters 
"John Deere" Ministry of 
Finance 
3. Leasing of Agricultural Machinery    
1996 605,520 9,000 
1997 800,000 10,610 
1998 529,100 6,614 (а) 
  "Investment subsidies 
generally available to agriculture" 
average for 3 years 644,873 8,741 Budgetary funds have been  allocated to provide 
agricultural producers with agricultural machinery on a leasing basis in order to replace existing 
obsolete machines and tractors. Ministry of 
Agriculture  
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 8 Monetary value of measures         
  Measure type Name and description of measure 
with reference to criteria in Article 
6:2 of the Agreement on 
Agriculture KZT 000s USD 000s Program description Data Sources 
  1 2 3   4 5 
  TOTAL:  1996 11,007,905 163,613     
   1997 1,629,242 21,608     
   1998 3,660,052 45,751     
   average for 3 years 5,432,400 76,991     
1. Subsidies through the Foundation for Support of Small and Medium Businesses    
1996 3,364,000 50,000 
1997 1,629,242 21,608 
1998 4,787,876 7,044 (b) 
    
  
  Input subsidies 
generally available to low-income or 
resource-poor 
producers  
average for 3 years 3,260,373 26,217 Soft loans allocated to small businesses from the 
Republican budget, including low-income and resource-poor agricultural producers for 
agricultural production purposes and for the 
purchase of equipment and mini-technologies, for a term of 10 years at the interest rate of 11 per 
cent per annum  Foundation for 
Support of 
Small and 
Medium 
Businesses 
  TOTAL:         
    1996 14,371,905 213,613     
    1997 3,258,484 43,216     
    1998 8,447,928 52,795     
    average for 3 years  8,692,772 103,208     
  
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 9 
Supporting Table DS:3 
DOMESTIC SUPPORT:  KAZAKHSTAN 
Reporting Period:  Calendar Years 1996-1998 
 
Measures exempt from the reduction commitment - Direct Paymen ts under Production-Limiting Progr ams-"Exempt Direct Payments" 
 
Monetary value of measure                      
Measure type Name and description of 
measure with reference to 
criteria in Article 6:5 of the 
Agreement on Agriculture KZT 000s  USD 000s Data source 
1 2 3   4 
(а) "payments based on fixed areas and yields"    0 0 - 
(b) "payments based on 85 per cent or less of the base level 
of production"   0 0 - 
(c) "livestock payments made based on a fixed number of 
heads"   0 0 - 
Such type of subsidies was not granted 
 
 
  
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 10 Supporting Table DS:4 
DOMESTIC SUPPORT:  KAZAKHSTAN  
REPORTING PERIOD:  Calendar Years 1996-1998 
 
Calculation of the Total Aggregate Measurement of Support 
 
Product-specific AMS (from 
Supporting Tables DS:5 to DS:7 
below) Current Total AMS 
(aggregate) Gross Output Current Total AMS to 
Gross Output (de 
minimis) Description of 
basic products 
(including non-
product specific 
AMS) Calendar year 
KZT 000s US$ 000s Product-specific 
measurements of 
support (from 
Supporting Table 
DS:8 below) KZT 000s US$ 000s KZT 000s US$ 000s % de 
minimis 
1 2 3 4 5 6 7 
1996 211,800 3,147  211,800 3, 147 5,284,500 78,545 4.0 de 
minimis 
1997 364,920 4,840  364,920 4,840 2,366,000 31,379 15.4   
1998 400,000 5,000  400,000 5,000 2,267,800 28,348 17.6   1. Seeds of 
grain 
crops  
average for 3 years 325,573 4,329  325,573 4,329 3,306,100 46,091    
1996 58,800 874  58,800 874 311,600 4,631 18.9   
1997 0 0  0 0 310,240 4,115 -   
1998 0 0  0 0 219,889 2,749 -   2. Seeds of 
potatoes 
average for 3 years 19,600 291  19,600 291 280,577 3,832    
1996 141,500 2,103  141,500 2,103 988,932 14,699 14.3   
1997 0 0  0 0 892,801 11,841 -   
1998 0 0  0 0 130,658 1,633 -   3.  Maize 
seeds 
average for 3 years 47,167 701  47,167 701 670,797 9,391    
1996 2,500 37  2,500 37 10,800 161 23.0   
1997 0 0  0 0 0 0 -   
1998 0 0  0 0 0 0 -   4. Sugar-beet 
seeds 
average for 3 years 833 12  833 12 3,600 54     
1996 13,400 199  13,400 199 874,921 13,004 1.5 de 
minimis 
1997 13,000 172  13,000 172 772,628 10,247 1.7 de 
minimis 
1998 0 0  0 0 902,700 11,284 -   5.  Fruits 
average for 3 years 8,800 124  8,800 124 850,083 11,512     
1996 350,300 5,205  350,300 5, 205 5,015,433 74,546 7.0 de 
minimis 
1997 510,000 6,764  510,000 6, 764 5,293,223 70,202 9.6 de 
minimis 
1998 456,000 5,700  456,000 5,700 2,324,420 29,055 19.6   6.  Cattle 
average for 3 years 438,767 5,890  438,767 5,890 4,211,025 57,934      
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 11Product-specific AMS (from 
Supporting Tables DS:5 to DS:7 
below) Current Total AMS 
(aggregate) Gross Output Current Total AMS to 
Gross Output (de 
minimis) Description of 
basic products 
(including non-
product specific 
AMS) Calendar year 
KZT 000s US$ 000s Product-specific 
measurements of 
support (from 
Supporting Table 
DS:8 below) KZT 000s US$ 000s KZT 000s US$ 000s % de 
minimis 
1 2 3 4 5 6 7 
1996 536,500 7,972  536,500 7,972 3,494,440 51,939 15.3   
1997 540,000 7,162  540,000 7,162 3,618,006 47,984 14.9   
1998 413,000 5,163  413,000 5,163 1,467,590 18,345 28.1   7. Sheep 
Breeding 
average for 3 years 496,500 6,765  496,500 6,765 2,860,012 39,423    
1996    1,314,800 19,536       
1997    1,427,920 18,938     
1998    1,269,000 15,863     Total: Product-
specific 
measures (sum 
of all measures)  average for 3 years    1,337,240 18,112      
1996    739,300 10,985      
1997    904,920 12,002      
1998    1,269,000 15,863      Total: Product-
specific 
measures 
(noting de 
minimis) average for 3 years    971,073 12,950       
1996    32,530,510 483,366 312, 814,660 4,649,445 10.4   
1997    73,320,854 731,415 298, 950,000 3,963,803 24.5   
1998    89,376,370 1,117,206 238,500,000 2,981,250 37.5   Non-product-
specific 
measures (from Table DS:9) average for 3 years    65,075,911 777,329       
1996    33,269,810 494,351      
1997    74,225,774 743,417      
1998    90,645,370 1,133,069      TOTAL: 
Current Total 
AMS average for 3 years    66,046,985 790,279       
 
   
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 12 Supporting Table DS:5 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD: Calendar Years 1996-1998 
 
Product-Specific Measures of Support: Market Price Support. 
 
Description 
of basic 
products Calendar year Measure 
type(s) Applied 
administered 
price External reference 
price Eligible 
production Associated 
fees/levies Total market 
price support Data source 
1 2 3 4 5 6 7 8                    
( (4-5*6)-7) 9 
NIL 
 
  
  
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 13Supporting Table DS:6 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD: Calendar Years 1996-1998 
 
Product-specific Aggregate Measurements of Support: Non-Exempt Direct Payments  
 
Other non-exempt direct 
payments  Total direct payments Description of 
basic product Calendar 
Year Measure type(s) Applied 
administered 
price External 
reference 
price Eligible 
production  Total price-
related direct 
payments KZT 000s US$ 000s Associated 
fees/levies 
KZT 000s US$ 000s Data source 
1 2 3 4 5 6 7              
((4-5)*6) 8   9 10                       
(7+8-9) 11   
1996         211,800 3,147.1   211,800 3,147.1 
1997        364,920 4,839.8   364,920 4,839.8 
1998        400,000 5,000.0   400,000 5,000.0 1. Seeds of 
grain 
crops 
  average Compensative 
Budgetary 
Payments            325,573 4,329   325,573 4,329 Ministry of 
Agriculture 
  
1996       58,800 873.7   58,800 873.7 
1997       0 0.0   0 0.0 
1998       0 0.0   0 0.0 2. Seeds of 
potatoes 
  
average Compensative 
Budgetary 
Payments  
         19,600 291   19,600 291 Ministry of 
Agriculture 
  
1996         141,500 2,102.5   141,500 2,102.5 
1997        0 0.0   0 0.0 
1998        0 0.0   0 0.0 3.  Maize 
seeds 
  
average Compensative 
Budgetary 
Payments            47,167 701   47,167 701 Ministry of 
Agriculture  
  
1996       2,500 37.1   2,500 37 
1997       0 0.0   0 0 
1998       0 0.0   0 0 4. Sugar-
beet 
seeds 
  average Countervailing 
Budgetary 
Payments  
        833 12   833 12 Ministry of 
Agriculture  
  
1996         13,400 199.1   13,400 199 
1997        13,000 172.4   13,000 172 
1998        0 0.0   0 0 5.  Fruits 
  
average Soft Loans 
  
        8,800 124   8,800 124 Ministry of 
Agriculture 
  
1996       350,300 5,205   350,300 5,205 
1997       510,000 6,763.9   510,000 6,764 
1998       456,000 5,700.0   456,000 5,700 6.  Cattle 
  
average Compensative 
Budgetary 
Payments            438,767 5,890   438,767 5,890 Ministry of 
Agriculture 
  
1996         536,500 7,971.8   536,500 7,972 
1997       540,000 7,161.8   540,000 7,162 
1998       413,000 5,162.5   413,000 5,163 7. Sheep 
breeding 
  
average Compensative 
Budgetary 
Payments  
          496,500 6,765   496,500 6,765 Ministry of 
Agriculture 
  
 
  
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 14 Supporting Table DS:7 
DOMESTIC SUPPORT: KAZAKHSTAN  
REPORTING PERIOD: Calendar Years 1996-1998 
 
Product-Specific Aggregate Measurements of Support: Oth er Product-Specific Support and Total Product-Specific AMS 
 
Non-exempt direct payments 
(Supporting Table DS:6) Total AMS 
Description of  
basic product Calendar 
year Measure type(s) Other 
product-
specific 
budgetary 
outlays Other product 
specific 
support 
(include 
calculation 
details) Associated 
fees/levies Total other 
product-
specific 
support Market price 
support 
(Supporting 
Table DS:5) KZT 000s US$ 000s KZT 000s US$ 000s 
1 2 3 4 5 6 7               
(4+5-6) 8 9 10                              
(7+8+9) 
1996         211,800 3,147.1 211,800 3,147.1 
1997         364,920 4,839.8 364,920 4,839.8 
1998         400,000 5,000.0 400,000 5,000.0 1. Seeds of 
grain 
crops 
  average Compensative 
Budgetary 
Payments  
          325,573 4,329 325,573 4,329 
1996           58,800 873.7 58,800 873.7 
1997          0 0.0 0 0.0 
1998          0 0.0 0 0.0 2.  Seeds of 
potatoes 
  
average Compensative 
Budgetary Payments              19,600 291 19,600 291 
1996         141,500 2,102.5 141,500 2,102.5 
1997         0 0.0 0 0.0 
1998         0 0.0 0 0.0 3.  Maize 
seeds 
  
average Compensative 
Budgetary 
Payments  
          47,167 701 47,167 701 
1996           2,500 37.1 2,500 37.1 
1997          0 0.0 0 0.0 
1998          0 0.0 0 0.0 4.  Sugar-
beet seeds 
  average Countervailing 
Budgetary Payments  
            833 12 833 12 
1996         13,400 199.1 13,400 199.1 
1997         13,000 172.4 13,000 172.4 
1998         0 0.0 0 0.0 5.  Fruits 
  
average Soft Loans 
  
        8,800 124 8,800 124 
1996           350,300 5,205 350,300 5,205.0 
1997          510,000 6,763.9 510,000 6,763.9 
1998          456,000 5,700.0 456,000 5,700.0 6.  Cattle 
  
average Compensative 
Budgetary 
Payments  
           438,767 5,890 438,767 5,890 
1996           536,500 7,971.8 536,500 7,971.8 
1997         540,000 7,161.8 540,000 7,161.8 
1998         413,000 5,162.5 413,000 5,162.5 7. Sheep 
breeding 
  
average Compensative 
Budgetary 
Payments              496,500 6,765 496,500 6,765 
 
  
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 15Supporting Table DS:8 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD: Calendar Years 1996-1998 
 
Product Specific Equivalent Measurements of Support 
 
Description 
of basic 
products Calendar 
year Measure 
type(s)  Applied 
administered 
price Production eligible 
to receive the 
applied 
administered price Market price 
support 
budgetary 
outlays Equivalent 
measurement 
of support 
(include 
calculation 
details) Non-exempt 
direct 
payments Other 
product-
specific 
support Associated 
fees/levies Total 
monetary 
value of 
equivalent 
commitment Data 
source 
1 2 3 4 5 6 7 8 9 10 11 12 
NIL 
 
 
  
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 16 Supporting Table DS:9 
DOMESTIC SUPPORT: KAZAKHSTAN  
REPORTING PERIOD: Calendar Years 1996-1998 
 
Non-Product-Specific AMS 
 
Non-product-specific 
budgetary outlays Total non-product-specific 
support  Measure type(s) Program description Calendar 
year KZT 000s US$ 000s Other non-product-
specific support (include 
calculation details) Associated 
fees/levies KZT 000s US$ 000s Data source 
1 2 3 4   5 6 7   8 
1996 242,100 3,597   242,100 3,597 
1997 200,528 2,660   200,528 2,660 
1998 100,000 1,250   100,000 1,250 1. Fertilizers 
  Reduction of fertilization 
costs for agricultural 
producers 
average 180,876 2,502   180,876 2,502 Ministry of 
Agriculture 
  
1996 436,100 6,480   436,100 6,480 
1997 425,000 5,637   425,000 5,637 
1998 400,000 5,000   400,000 5,000 2. Plant Protection 
  Reduction of costs incurred by 
agricultural producers using pesticides  
  average 420,367 5,706   420,367 5,706 Ministry of 
Agriculture  
  
1996 22,250 331   22,250 331 
1997 0 0   0 0 
1998 31,000 388   31,000 388 3. Mixed Fodder   
  
  Reduction of costs incurred by 
agricultural producers by the 
purchase of mixed fodder 
  average 17,750 240   17,750 240 Ministry of 
Agriculture  
  
1996 299,200 4,446   299,200 4,446 
1997 150,000 1,989   150,000 1,989 
1998 536,604 6,708   536,604 6,708 4. Farm 
Development 
  Soft loans granted to forms 
for a term of 5 years at the interest rate of 10 per cent per 
annum for implementation of 
new production technologies, purchase of agricultural 
machinery, breeding stock, 
and selected seeds, etc.   average 328,601 4,381   328,601 4,381 Ministry of 
Agriculture 
  
1996 5,333,373 79,248   5,333,373 79,248 
1997 72,545,326 962,140   72,545,326 962,140 
1998 88,308,766 1,103,860   88,308,766 1,103,860 5. Deferred Debts   Given the current grave 
conditions and insolvency of agricultural producers, their 
debts relating to centralized 
and target-oriented loans, loans for wages payments and 
working capital, purchase of 
petroleum products and electric energy, 
extrabudgetary funds, etc. 
have been rescheduled    average 55,395,822 715,082   55,395,822 715,082 Ministry of 
Agriculture, 
Ministry of 
Finance, Ministry 
of Economy, 
ExImBank, 
KazMunaigas, 
etc. 
   
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 17Non-product-specific 
budgetary outlays Total non-product-specific 
support  Measure type(s) Program description Calendar 
year KZT 000s US$ 000s Other non-product-
specific support (include 
calculation details) Associated 
fees/levies KZT 000s US$ 000s Data source 
1 2 3 4   5 6 7   8 
1 996   26,197,487 389,264   26,197,487 389,264 
1 997   0 0   0 0 
1 998   0 0   0 0 Ministry of 
Agriculture  6. Forgiven Debts 
  Under the Resolution of the 
Government of the Republic 
of Kazakhstan of May 28, 
1995, 50 per cent of the principal and the overall 
amount of past due interest, 
fines, and penalties have been forgiven. average 8,732,496 129,755   8,732,496 129,755  
1996     32,530,510 483,366  
1997     73,320,854 972,426  
1998     89,376,370 1,117,206  Total non-product-
specific support   
  
  
  average     65,075,911 857,666  
  
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 18 Supporting Table ES:1   
EXPORT SUBSIDIES: KAZAKSTAN 
REPORTING PERIOD: 1996 - 19981 
 
Description of basic 
products Direct export 
subsidies Sales of Stock Producer financed 
subsidies Cost reduction 
measures 
 Internal transport 
subsidies2 
Thousands Tenge Total product 
specific export 
subsidies 
Thousands Tenge Total product 
specific export 
subsidies in 
Thousands US$ Quantity of 
subsidized exports 
(Tons) Data Source  
1 2 3 4 5 6 7 7 A 8 9 
Meat and products 
thereof:         
 Beef         Documentation of 
  1997     513,390 513,390 6,809 34,226 Anti-monopoly 
  1998     137,378 137, 378 1,717 9,038 Committee 
 Lamb         Documentation of 
  1997     12,857 12,857 171 989 Anti-monopoly 
  1998     1,390 1,390 17 107 Committee 
 Horse meat          Documentation of 
  1997     4,801 4,801 64 378 Anti-monopoly 
  1998     2,625 2,625 33 208 Committee 
 Poultry         Documentation of 
  1997     7,252 7,252 96 560 Anti-monopoly 
  1998     3,637 3,637 45 280 Committee 
 Other diary 
products (cheese, 
curd, milk, milk 
powder, butter)          
Documentation of 
Anti-Monopoly 
Committee 
  1997     14,769 14,769 196 1,171  
  1998     4,027 4,027 50 310  
 Vegetables         Documentation of 
  1997     114,393 114,393 1,517 84,651 Anti-monopoly 
  1998     104,780 104, 780 1,310 75,279 Committee 
 Wheat         Documentation of 
  1997 1,623,272    4,826,222 6,449,494 85,537 2,678,553 Anti-monopoly 
  1998 7,850,015    3,595,678 11, 445,693 143,071 1,937,477 Committee 
 Wheat flour         Documentation of 
  1997     654,894 654,894 8,686 210,705 Anti-monopoly 
  1998     601,371 601, 371 7,517 187,849 Committee 
 Rice         Documentation of 
  1997     61,157 61,157 811 9,864 Anti-monopoly 
  1998     181,982 181, 982 2,275 29,352 Committee 
                                                      
1 Such subsidies were not granted in 1996. 
2 In 1997-1998, the tariffs to transport certain agricultural products by railroad in the CIS territory were reduced  
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 19Description of basic 
products Direct export 
subsidies Sales of Stock Producer financed 
subsidies Cost reduction 
measures 
 Internal transport 
subsidies2 
Thousands Tenge Total product 
specific export 
subsidies 
Thousands Tenge Total product 
specific export 
subsidies in 
Thousands US$ Quantity of 
subsidized exports 
(Tons) Data Source  
1 2 3 4 5 6 7 7 A 8 9 
 Barley         Documentation of 
  1997     596,411 596,411 7,910 490,382 Anti-monopoly 
  1998     433,955 433, 955 5,424 346,415 Committee 
 Oats         Documentation of 
  1997     13,218 13,218  175 13,218 Anti-monopoly 
  1998     8,072 8,072  101 8,072 Committee 
 Corn         Documentation of 
  1997     14,866 14,866 197 13,201 Anti-monopoly 
  1998     9,322 9,322 117 8,037 Committee 
 Rye         Documentation of 
  1997     4,230 4,230 56 4,083 Anti-monopoly 
  1998     15,251 15,251 191 14,292 Committee 
 Malt         Documentation of 
  1997     3,273 3,273 43 1,211 Anti-monopoly 
  1998     4,730 4,730 59 1,699 Committee 
 Sugar         Documentation of 
  1997     8,846 8,846 117 1,957 Anti-monopoly 
  1998     9,550 9,550 119 2,019 Committee 
 Non-alcoholic 
beverages, juices           
Documentation of 
  1997     38,986 38,986 517 3,462 Anti-monopoly 
  1998     10,710 10,710 134 1,190 Committee 
 Cotton         Documentation of 
  1997     32,759 32,759 434 2,909 Anti-monopoly 
  1998     2,176 2,176 27 186 Committee 
 Wool         Documentation of 
  1997     11,179 11,179 148 1,909 Anti-monopoly 
  1998     29,943 29,943 374 5,075 Committee 
Total:  1997 1,623,272    6,933,502 8,556,774 113,485   
 1998 7,850,015    5,156,577 13,006,592 162,582   
  
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 20 ANNEX 1 
 
Deferred and Overdue Debts of Agricultural Producers  
 
1996 1997 1998 Organization KZT 000s US$ 000s KZT 000s US$ 000s KZT 000s US$ 000s Description Deferral/Forgiveness Mechanisms  
Forgiven Debts 
Forgiven Debts, under the 
Resolution of the Government 
of the Republic of Kazakhstan No. 651 of 28 May 1996 "On 
Agreement of 17 May 1996 
Concluded Between the Ministry of Finance of the 
Republic of Kazakhstan and the 
State Foundation for Agricultural Support" 26,197,487 389,264 0 0 0 0 100 per cent of pa st due interest and 50 per cent 
of the principal of agricultural producers has been 
foregiven, namely: debt re lating to target-oriented 
loans secured by the Ministry of Finance, debts 
relating to target-oriented loans secured by oblast 
administrative bodies, overdue debts relating to short-term loans, loans issued for payment of 
wages of agricultural produ cers, loans issued to 
meet debit balance of the intra-republican netting of enterprises.  The Ministry of Finance takes a unilateral decision 
on cancellation of debts of agricultural producers 
before the State Foundation for Agricultural 
Support, regarding debts for which it has received 
the right of reclaim.  
Deferred Debts 
Decree of the President of the 
Republic of Kazakhstan 
No. 1578 of 14 February 1994
"On Support of Agricultural Enterprises in 1994"  0 1,161,100 15,399 1,161,100 14,831 Deferral has been granted to debts of agricultural 
producers, irrespective of the form of ownership, 
overdue debts relating to bank loans (except 
target-oriented loans for the renewal of working capital) allocated from centralized credit resources of the National Bank of the Republic of 
Kazakhstan as of 1 January 1994. Settlement of debts shall start on 1 January 1999 in 
the form of equal instalments for a term of five 
years. No interest shall be accrued.   
Resolutions of the Government 
of the Republic of Kazakhstan No. 671 of 3 June 1996 'On 
Measures Relating to State 
Support of Energy Supply and Agricultural Enterprizes of the 
Republic of Kazakhstan' and 
No. 1076 of 22 October 1998 "On Rescheduling of Fines and 
Penalties Payable by 
Agricultural Producers'     4,271,184 56,647 4,949,134 63,215 Tax arrears of agricultural producers payable to 
the budget rescheduled for collection in 1 year.   
Overdue debts 
Resolution of the Government 
of the Republic of Kazakhstan 
No .651 of 28 May 1996 "On Agreement of 17 May 1996 
Concluded between the Ministry 
of Finance of the Republic of Kazakhstan and the State 
Foundation for Agricultural 
Support" 5,333,373 79,248 5,286,460 70,112 5,256,128 67,137 The Ministry of Finance has transferred to the 
State Foundation for Agricultural Support the 
right to claim that end borrowers pay 50 per cent of the principal, in pa rticular: taget-oriented 
loans, secured by oblast administrative bodies, 
overdue debts relating to short-term loans, loans issued for payment of wages of agricultural 
producers, loans issued to meet debit balance of 
the intrarepublican netting of enterprises as of 1 March 1995. The Foundation concludes individual contracts with 
borrowers on their obligations to settle debts 
relating to the specified loans.  
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 211996 1997 1998 Organization KZT 000s US$ 000s KZT 000s US$ 000s KZT 000s US$ 000s Description Deferral/Forgiveness Mechanisms  
Resolution of the Government 
of the Republic of Kazakhstan 
No. 1719 of 14 December 1995"On Transfer of Debts for 
Centralized and Target-Oriented 
Loans to the State Foundation for Agricultural Support"  0 796,900 10,569 796,268 10,171 The Ministry of Finance, the Ministry of 
Agriculture, the State Foundation for Agricultural 
Support of the Ministry of Agriculture, jointly with the National Bank of the Repu
blic of 
Kazakhstan have effected the transfer to the 
above Fund of the entire volume of debts relating to centralized and target-o riented loans issued to 
JSCs Selmash, Ken Dala, Onim, 
Kazagroremmash, Republican Association 'Kazzoovetsnab', the National Joint-Stock Company 'Kunarlylyk', as well as enterprises -
former parts of the National Joint-Stock 
Company 'Tagam', the settlement of which is due after 1 March 1995.    The Foundation concludes individual contracts with 
borrowers on their obligations to settle debts 
relating to the specified loans. 
Resolution of the Government 
of the Republic of Kazakhstan
No. 1130 of 17.1996 "On Settlement of Financial 
Obligations in the Agricultural 
and Energy Sectors of the Republic of Kazakhstan"  0 22,775,795 302,066 16,307,035 208,290 One of the main constraints to the development 
of the agricultural and energy sectors of the 
national economy crippling all efforts to overcome the ongoing crisis is represented by 
vast amounts of accumulated payables and 
receivables for petroleu m products and energy, 
produced and consumed between 1993 and 1995. 
In order to settle debts of agricultural producers 
for electric energy and petroleum products consumed in 1994-1995, create optimal conditions for their post-privatization operation, 
as well as to enable priv atization of enterprises 
operating in the energy and oil and gas sectors, the Government of the Republic of Kazakhstan 
has transferred the entire volume of debts of 
agricultural producers before enterprises of the Ministry of Energy and Coal Industry 
accumulated between 1994-1995 for 
consumption of heat and electricity to the State Foundation for Agricultural Support, based on 
comparative checks with subsequent write-off as 
losses of energy enterprises following their privatization.   Debts for consumed energy transferred to the State 
Foundation for Agricultural Support are written off 
balance of the Fund following privatization of 
energy enterprises by offsetting them against 
financial performance  of the latter.   
 WT/ACC/SPEC/KAZ/6/Rev.2 
Page 22 1996 1997 1998 Organization KZT 000s US$ 000s KZT 000s US$ 000s KZT 000s US$ 000s Description Deferral/Forgiveness Mechanisms  
Resolutions of the Government 
of the Republic of Kazakhstan 
No. 1147 of 22 July 1997 "On Measures Relating to Supply of 
Petroleum Products for Sowing 
and Harvesting Activities in 1997', and No. 187 of 
9 March 1998 'On Measures 
Relating to Supply of Petroleum Products for Sowing Activities in 1998"     0 4,417,998 58,594 4,151,923 53,033 Overdue debts of agricultural producers for 
petroleum products, supplied by the National 
Company 'KazakhOil', OJSC 'Mangystaumunaygas', OJSC 
'Karazhanbasmunaygas', OJSC 'Kaztransoil' for 
sowing and harwesting activities. At present, given the in solvency of agricultural 
producers, debts of this category have not been 
settled and remain on balance of specified national oil companies. The Government of the Republic of 
Kazakhstan has taken no decisions to address the 
issue.  
Overdue debts of agricultural 
producers before the Fund of 
Economic Reforms of the Ministry of Economy of the 
Republic of Kazakhstan.  0 2,100,085 27,853 5,555,205 70,957 Overdue debts of agricultural producers for loans 
granted by the Fund of Economic Reforms of the 
Ministry of Finance of the Republic of Kazakhstan. The Fund of Econmic Reforms has 
been founded to provide investment support of 
the ongoing process of economic reforms targeted at the development of an efficient 
society-oriented market economy and enhancing 
its competitive power. The loans in question have 
been granted under Resolutions of the 
Government of the Republic of Kazakhstan 
No.614 of 15 July 1993 'On Use of Resources of the Fund of Economic Reforms of the Republic of Kazakhstan in 1993' and No. 105 of 27 
January 1994 'On Use of Resources of the Fund 
of Economic Reforms of the Republic of Kazakhstan in 1994'. At present, given the in solvency of agricultural 
producers, debts of this category have not been 
settled and remain on balance of the CJSC Rehabilitation Fund of the Ministry of Finance of 
the Republic of Kazakhstan. The Government of 
the Republic of Kazakhstan has appointed an intergovernmental committee charged with 
collection and restructuring of loans granted from 
the Republican budget and funds allocated from the Republican budget in the framework of 
nongovernmental external loans, secured by the 
Republic of Kazakhstan. The Committee is engaged in debts rescheduling on a case-by-case basis for each economic agent. 
Debts of agricultural producers 
before  state energy distribution 
companies for electricity, consumed in 1993-1995.  0 4,126,943 54,734 7,453,640 95,206 Oustanding debts of agricultural producers before 
state energy distribution companies for 
electricity, consumed in 1993-1995 At present, given the in solvency of agricultural 
producers, debts of this category have not been 
settled and remain on balance of the Fund of Economic Reforms. The Government of the 
Republic of Kazakhstan has taken no decisions to 
address this issue.    
Debts of agricultural producers 
before the Republican budget 
for non-governmental external 
loans, secured by the State     17,979,045 238,449 32,977,467 421,222 Outstanding debts of agricultural producers 
before the Republican budget relating to non-governmental loans, secured by the Government 
of the Republic of Kazakhstan  At present, given the in solvency of agricultural 
producers debts of this category have not been settled. The Republic of Kazakhstan has appointed 
an intergovernmental committee charged with 
collection and restructuring of loans granted from the Republican budget and funds allocated from the 
Republican budget in the framework of 
nongovernmental external loans, secured by the Republic of Kazakhstan. The Committee is engaged 
in debts rescheduling on a case-by-case basis for 
each economic agent.  
  WT/ACC/SPEC/KAZ/6/Rev.2
 Page 231996 1997 1998 Organization KZT 000s US$ 000s KZT 000s US$ 000s KZT 000s US$ 000s Description Deferral/Forgiveness Mechanisms  
Debts of agricultural producers 
before the national 
extrabudgetary funds (Road Fund, Employment Promotion 
Fund, Social Insurance Fund, 
Pension Fund)   13,901,000 184,363 14,650,000 187,125 Outstanding debts of agricultural producers 
before extrabudgetary funds (Road Fund, 
Employment Fund, Social Insurance Fund, Pension Fund). For description of the above 
funds, see attachment.  The Government has taken no decisions on debts of 
this category. 
Total 5,333,373 79,248 76,816,510 1,108,787 93,257,900 1,165,724   WT/ACC/SPEC/KAZ/6/Rev.2 
Page 24 
 
 
 ANNEX 2 
Extrabudgetary Funds of the Republic of Kazakhstan  
The National Employment Fund (Resolution of the Cabinet of Ministers of the Kazakh Soviet 
Socialist Republic of 30 April 1991 No. 277 "On Es tablishment of the National Employment Fund") 
(hereafter – the Employment Fund) was established to finance measures taken to implement state 
policies on employment and enhancement of effi ciency of state employment services.  The 
Employment Fund represented an independent fina ncial and banking system with a single current 
account.  Its funds did not comprise a part of the State budget.  Enterprises, agencies, organizations, 
and other employers, irrespective of the form of ownership and type of ec onomic activities, were 
required to transfer monthly mandatory contribut ions to the Employment Fund.  The amount of 
contributions was calculated based on the wage-bill a nd adjusted annually by the Government of the 
Republic of Kazakhstan, while the costs incurred by  employers were charged against production costs 
of goods (works, services). 
The National Social Insurance Fund of the Republic of  Kazakhstan (the Decree of the President of the 
Republic of Kazakhstan No. 2837 of 18 March 1992 "On Establishment of the National Social 
Insurance Fund of the Republic of Kazakhstan") w as established to effect payment of temporary 
disablement benefits, maternity benefits, child bene fits, death allowances, tr eatment and rehabilitation 
allowances, provide services to the employed popul ation of the Republic of  Kazakhstan and their 
families, and for other purposes relating to the state social insurance.  The Fund was managed by the 
Ministry of Social Protection of the Republic of Kazakhstan. Enterprises, agencies, organizations, and 
other employers, irrespective of the form of owners hip and type of economic activities, were required 
to transfer monthly mandatory contributions to th e Fund.  The amount of contributions was adjusted 
annually by the Government of the Republic of Kazakhstan, while the costs incurred by employers 
were charged against production costs of goods (works, services).  
The Pension Fund of the Republic of Kazakhstan (Resolution of the Cabinet of Ministers of the 
Republic of Kazakhstan No. 1120 of 6 October 1994) formed an integral part of the system of social 
protection of the population of the Republic of Kaza khstan, its funds being used for pension payments 
to workers of retirement age.  The Fund was manage d by the Ministry of Social Protection of the 
Republic of Kazakhstan. Enterprises, agencies, orga nizations, and other employers, irrespective of the 
form of ownership and type of economic activities, were required to transfer monthly mandatory 
contributions to the Fund.  The amount of contribu tions was adjusted annually by the Government of 
the Republic of Kazakhstan, while the costs incu rred by employers were charged against production 
costs of goods (works, services).     
The Road Fund of the Republic of Kazakhstan (the  Decree of the President of the Republic of 
Kazakhstan No. 2701 of 21 December 1995 "On Road  Fund") was established to finance costs 
relating to maintenance, construc tion, and reconstruction of motorways, and facilities.  The Road 
Fund received mandatory contributions of enterprises,  agencies, organizations, and other employers, 
irrespective of the form of ownership and type of economic activities.  The value of contributions was 
calculated based on the annual aggregate income.  All of the above were required to effect payments 
at a rate of 0.1 per cent of the annual aggregate in come of a legal entity, irrespective of the type of 
economic activities. 
 
__________