G/SCM/N/343/KAZ  
 
3 October 2019  
(19-6389) Page: 1/13 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF THE G ATT 1994  
AND ARTICLE 25 OF TH E AGREEMENT ON SUBSI DIES 
AND COUNTERVAILING M EASURES  
KAZAKHSTAN  
The following communication, dated 27 August 2019, is being circulated at the request of the 
Delegation of Kazakhstan.  
 
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In accordance with Article 25.1 of the Agreement on Subsidies and Countervailing Measures and 
Article XVI:1 of the GATT 1994, the Government of the Republic of Kazakhstan submits new and full 
notification of the Republic of Kazakhstan. In accordance with Article 25.7 of the SCM Agreement, 
this notification does not prejudge, under the GATT 1994 and the SCM Agreement, neither the legal 
status of the notified programs, nor their effects, nor the nature of the programs themselves.  
 
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  TABLE OF CONTENTS  
1. INVESTMENT PREFER ENCES  ................................ ................................ .........................  3 
2. PREFERENCES WITHI N SPECIAL ECONOMIC Z ONES  ................................ .....................  3 
3. INDUSTRIAL SUPPORT R ELATED TO DEVELOPMEN T OF INNOVATI VE ACTIVITY  ..........  4 
4. INDUSTRIAL SUPPORT R ELATED TO DEVELOPMEN T OF SCIENTIFIC AND  
TECHNICAL ACTIVITIES  ................................ ................................ ................................ ... 5 
5. BUSINESS SUPPORT AND  DEVELOPMENT  STATE PROGRAM "BUSIN ESS ROAD  
MAP – 2020"  ................................ ................................ ................................ ....................  6 
6. THE PROGRAM OF SU PPORT OF PRIVATE ENT REPRENEURS INVOLVED IN THE 
PROCESSING INDUSTRY  ................................ ................................ ................................ .. 9 
7. THE PROGRAM OF FI NANCING OF THE REGIO NAL BUSINESS PROJECT S COVERED  
BY THE FUNDS OF LOCA L EXECUTIVE BODIES A ND THE "FUND OF THE 
ENTREPRENEURSHIP DEV ELOPMENT "DAMU" (HER EINAFTER REFERRED AS  –  
FUND DAMU ) ................................ ................................ ................................ ....................  9 
8. THE PROGRAM OF IN TER-BANK LENDING  ................................ ................................ .. 10 
9. FUNDING OF INVEST MENT PROJECTS  ................................ ................................ ........  11 
10. STATE PROGRAM ON  DEVELOPMENT OF PROD UCTIVE EMPLOYMENT AN D  
MASSIVE ENTREPRENERS HIP FOR 2017 -2021 "Y ENBEK"  ................................ ..............  12 
 
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  1. INVESTMENT PREFER ENCES  
Title of the subsidy program  
 
Investment preferences.  
 
Period covered by the notification  
 
2018.  
 
Policy objective and/or purpose of the subsidy  
 
The State investment support is aimed at creation of favorable conditions for investors investing into 
new technologies, expansion and renovation of existing production facilities, training of Kazakhstan 
staff and protection of the environment.  
 
Background and authority for the subsidy  
 
Investment preferences are administered by the Ministry of Foreign Affairs  of the Republic of 
Kazakhstan and Ministry of Finance of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
1) Code of the Republic of Ka zakhstan No. 375 -V "The Entrepreneurial Code of the Republic of 
Kazakhstan " of 29 October 2015;  
 
2) Law of the Republic of Kazakhstan No. 122 -VI "On Additions and Amendments in Certain 
Legislative Acts of the Republic of Kazakhstan on Taxation " of 25 December 2017;  
 
Form of the subsidy  
 
Within the investment project: customs duty exemption for imported goods; exemption from the 
VAT payment on imported goods; in -kind state grants;  
 
Within the priority investment project: customs duty exemption for imported goods ; in-kind state 
grants, tax preferences  (zero rate for corporate tax, land tax and property tax); investment subsidy . 
 
To whom and how the subsidy is provided  
 
Investment preferences are granted based on an investment contract concluded bet ween authorized 
investment body and juridical person of the Republic of Kazakhstan implementing an investment 
project.  
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
12,985 billion  tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Investment preferences are granted for the duration of the investment contract, but not more than 
five years from the date of registration of the investment contract.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
2. PREFERENCES WITHIN S PECIAL ECONOMIC ZONE S 
Title of the subsidy program  
 
Preferences within Special Economic Zones (hereinafter - SEZs)  G/SCM/N/343/KAZ  
 
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  Period covered by the notification  
 
2018.  
 
Policy objective and/or purpose of the subsidy  
 
Preferences granted within SEZs are  aimed at attracting investments with the purpose to develop 
competitive industries.  
 
Background and authority for the subsidy  
 
Preferences within SEZs are administered by the Ministry of Finance of the Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
1) Agreement on Free (Special) Economic Zones on the Customs Territory of the Customs Union 
and Customs Procedure of Free Economic Zone of 18 June 2010;  
 
2) Law of the Republic of Kazakhstan No. 469 -IV "On Special Economic Zones of the Republic of 
Kazakhstan " of 21 July 2011;  
 
3) Code of the Republic of Kazakhstan No. 120 -VI "On Taxes and Other Obligatory Payments in 
the Budget " of 25 December 2017.  
 
Form of the subsidy  
 
Tax preferences.  
 
To whom and how the subsidy is provided  
 
Subsidy is provided to juridical persons registered as SEZ participants.  
 
The Tax Code provides exemption from payment of the following taxes:  
- corporate income tax;  
- land tax;  
- property tax;  
- land use fees;  
- VAT for goods sold on the territory of the SEZ and completely consumed in the production process.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
16,185 billion tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Duration of application of tax preferences  - until expiration of SEZ.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this subsidy.  
 
3. INDUSTRIAL SUPPO RT RELATED TO DEVELO PMENT OF INNOVATIVE ACTIVITY  
Title of the subsidy program  
 
Support of innovative activity  
 
Period covered by the notification  
 
2018.  
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  Policy objective and/or purpose of the subsidy  
 
Creation of favorable conditions for development of innovations, facilitation of innovative activity  
 
Background and authority for the subsidy  
 
The Program is aimed at development of innovative infrastructure. The Government support is 
provided in the form of servicing support to the entities  performing industrial and innovative 
activities in the form of (i) providing infrastructure on preferential terms, (ii) rendering consultative 
and engineering services.  
 
The subsidies are administered by the Ministry for Industry and Infrastructure Develo pment of the 
Republic of Kazakhstan.  
 
Legislation under which it is granted  
 
Code of the Republic of Kazakhstan No. 375 -V "The Entrepreneurial Code of the Republic of 
Kazakhstan " of 29 October 2015;  
 
Form of the subsidy  
 
Grants  
 
To whom and how the subsid y is provided  
 
Budget funds are provided to the entities performing industrial and innovative activity for 
implementation of industrial and innovative projects in priority sectors of economy. Grants are 
allocated to technological development of sectors of economy, operating enterprises and 
commercialization of technologies.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2,819 billion tenge.  
 
Duration of the subsidy and/or any other  time-limits attached to it  
 
The term of using grant should not exceed 36 months.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
4. INDUSTRIAL SUPPORT R ELATED TO DEVELOPMEN T OF SCIENTIFIC AND TECHN ICAL 
ACTIVITIES  
Title of the subsidy program  
 
Support of scientific and technical activities.  
 
Period covered by the notification  
 
2018.  
 
Policy objective and/or purpose of the subsidy  
 
Creation of favorable conditions for development of innovations, facilitation of innovative activity  
 
Background and authority for the subsidy  
 
The subsidies are administered by the Ministry of Education and Science of the Republic of 
Kazakhstan  G/SCM/N/343/KAZ  
 
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  Legislation under which it is granted  
 
Law of the Republic of Kazakhstan No. 381 -V "On Commercialization of the Results of Scientific and 
(or) Scientific and Technical Activities " of 31 October 2015;  
 
Form of the subsidy  
 
Grants.  
 
To whom and how the subsidy is provided  
 
Grants are provided to individuals and judicial persons concluded agreement on granting the projects 
of commercialization of results of scientific and scientific and technical activities.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
1,958 billion tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Agreement is concluded for the entire duration of the project, but not m ore than 3 (three) years.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
5. BUSINESS SUPPORT AND  DEVELOPMENT  STATE PROGRAM  
"BUSINESS ROAD MAP – 2020 " 
Title of the subsidy program  
 
Business Support and Development State Program "Business Road Map – 2020". 
 
Period covered by the notification  
 
2018.  
 
Policy objective and/or purpose of the subsidy  
 
To facilitate balanced growth of entrepreneurship, and to create new permanent jobs.  
 
Background and authority for the subsidy  
 
The Program "Business Road Map 2020" had been launched since 2010. The Program provided state 
support in the form of interest rate subsidies, guarantees, grants for new business ideas, 
micro -lending an infrastructure, servicing support. Taking into account the successful experience of 
implementing the "Business Road Map 2020 " in 2018 Business Support and Development Program 
"Business Road Map – 2020" has been adopted . 
 
The Program is administered by the Ministry of National Economy of the Republic of Kazakhstan  
 
Legislation under which it is granted  
 
1) Resolution of the Government of the Republic of Kazakhstan No. 522 "On Approval of Business 
Support and Development State Program "Business Road Map – 2020" of 25 August 2018;  
 
2) Resolution of the Government of the Republic of Kazakhstan No. 523 "On Amend ments and 
Additions in Certain Decisions of the Government of the Republic of Kazakhstan " of 25 August 2018;  
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  Duration of the subsidy and/or any other time -limits attached to it  
 
The Program operates until 2020.  
 
Statistical data permitting an assessment o f the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
THE FIRST COMPONENT:  
SUPPORTING OF BUSINESS INITIATIVES OF ENTREPRENEURS IN MONO -INDUSTRY 
TOWNS, SMALL TOWNS AND RURAL AREAS  
 
Form of the subsidy  
 
1) interest rate subsidies for loans/contracts on financing leasing;  
 
2) partial guarantees on loans;  
 
3) state grants;  
 
4) partial guarantees on loans of micro -financing organizations before banks;  
 
5) subsidizing of markups on products and rental charges which are income components of 
Islamic banks;  
 
6) interest rate subsidies for warrant issued by business entities.  
 
To whom and how the subsidy is provided  
 
The subsidy is available for entrepreneurs , implementing and (or) planning to implement own and 
successful projects in rural areas, small towns and mono -industry towns without sectoral limitation.  
 
For startups the sum of loan should not exceed 20 million tenge, and the guarantee should not 
exceed 8 5 per cent of loan.  For existing entrepreneur the sum of loan should not exceed 20 million 
tenge, and the guarantee should not exceed 50 per cent of loan.  
 
Duration of guarantee – not exceeding the term of loan.  
 
State grants are provided for small entrep reneurs, including startups, young entrepreneurs, women, 
people with disabilities and people over 50 years old, on free basis to implement new business ideas 
in priority sectors of the economy, and industrial innovation projects as part of business incubat ion. 
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy:  
 
1,033 billion tenge.  
 
THE SECOND COMPONENT : 
INDUSTRIAL SUPPORT OF ENTREPRENEURS/SUBJECTS OF INDUSTRIAL AND 
INNOVATIVE ACTIVITI ES PERFORMING ACTIVITIES IN PRIORITY SECTORS OF 
ECONOMY AND PROCESSING INDUSTRY  
 
Form of the subsidy  
 
1) interest rate subsidies for financing leasing;  
 
2) partial guarantees on bank/Development Bank loans;  
 
3) development of production (industrial) infrastructure;  
 
4) establishment of industrial zones;  
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  5) long-term leasing financing;  
 
6) subsidizing of markups on products and rental charges which are inco me components of 
Islamic banks;  
 
7) interest rate subsidies for warrant issued by business entities;  
 
8) interest rate subsidies for loans issued as part of securing long -term tenge liquidity to solve 
the problem of affordable lending in the manufacturing industry and services, as well as processing 
in the agro -industrial complex.  
 
To whom and how the subsidy is provided  
 
Subsidies are available for successful entrepreneurs/subjects of industrial and innovative activities 
implementing and (or) planning to i mplement own projects.  
 
Interest rate subsidies are provided only for loans/contracts on financing leasing with nominal 
interest rate not higher than 13 percent, where the Government compensates 5 percent and 
8 percent is paid by the Entrepreneur.  
 
Partial  guarantees are provided only for new loans of micro -financing organizations for working 
capital financing in order to micro -lending entrepreneurs in mono -industry and small towns and rural 
areas.  
 
The development of production (industrial) infrastructure aimed at supplying the missing 
infrastructure to small and medium -sized business projects on creating new industries, modernizing 
and expanding existing industries, both for individual projects individually (including for providing 
several projects) and wi thin the framework of industrial zones.  
 
Long-term leasing financing is available for subjects of industrial and innovative activity 
implementing and (or) planning to implement investment projects in priority sectors of the economy, 
aimed at increasing labor productivity and the development of territorial clusters, approved by the 
authorized body in the field of industrial and innovative development.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amou nt 
budgeted for that subsidy:  
 
8,106 billion tenge.  
 
TECHNOLOGICAL DEVELOPMENT OF ENTERPRISES  
 
Form of the subsidy  
 
Reimbursement of expenses on the following directions:  
 
1) development and/or examination of complex plan for industrial and innovative proj ect; 
 
2) upgrading production efficiency;  
 
3) improvement of technological processes;  
 
4) upgrading industrial efficiency.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy:  
 
375,923 million tenge.  
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  6. THE PROGRAM OF SUP PORT OF PRIVATE ENTR EPRENEURS INVOLVED I N THE 
PROCESSING INDUSTRY  
Title of the subsidy program  
 
The Program of Support of Private Entrepreneurs involved in the Processing Industry  
 
Period covered by the notification  
 
2018. 
 
Policy objective and/or purpose of the subsidy  
 
Support of private entrepreneurs . 
 
Background and authority for the subsidy  
 
The Program was developed to stimulate an economic activity of private entrepreneurs.  
 
Program Administrator – Fund of Entrepreneurship Development "DAMU ". 
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 354 "On Approval of Joint Action 
Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic on 
Funding of SMEs Projects in Processing Industry " of 14 April 2014.  
 
Form of the subsidy  
 
Soft loans.  
 
To whom and how the subsidy is provided  
 
Private Entrepreneurs.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
14,196 billion tenge.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
7. THE PROGRAM OF FIN ANCING OF THE REGION AL BUSINESS PROJECTS  COVERED BY 
THE FUNDS OF LOCAL E XECUTIVE BODIES AND THE "FUND OF THE ENTREPRE NEURSHIP 
DEVELOPMENT "DAMU " (HEREINAFTER REFERR ED AS – FUND DAMU)  
Title of the s ubsidy program  
 
The Program for Financing Regional Business Projects Using the Funds of Local Executive Bodies and 
the Fund "DAMU '. 
 
Period covered by the notification  
 
2018. 
 
Policy objective and/or purpose of the subsidy  
 
To support small and medium enterprises in the priority economy sectors  
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  Background and authority for the subsidy  
 
Administrators of Program: Fund "DAMU ", local executive authorities.  
 
Legislation under which it is granted  
 
Decision of the Fund "DAMU " of 10 December 2009, Minute No. 14.  
 
Form of the subsidy  
 
Soft loans.  
 
To whom and how the subsidy is provided  
 
Joint funds of the Fund "DAMU " and local budgets are allocated to the second -tier banks for further 
lending to SMEs.  
 
Nominal interest rate sha ll not exceed 12.5% per year. Value of loan may not exceed 500 million 
tenge.  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
1,231 billion tenge.  
 
Duration of the subsidy and/or a ny other time -limits attached to it  
 
The loans are provided for the term of not more than 84 months.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
8. THE PROGRAM OF INT ER-BANK LENDING  
Title of the subsidy program  
 
The Program of Inter -bank Lending.  
 
Period covered by the notification  
 
2018.  
 
Policy objective and/or purpose of the subsidy  
 
Funding of projects of up to USD 30 million in priority economy sectors of economy, and stimulating 
of funding by second -tier banks into the priority economy sectors.  
 
Background and authority for the subsidy  
 
Funding to (i) second -tier banks for further financing of SMEs involved in processing and services 
sector, (ii) current assets of SMEs, and (iii) large enterprises of processing industry.  
 
The Program is administered by the "Development Bank of Kazakhstan " JSC, Fund "DAMU ". 
 
Legislation under which it is granted  
 
1) Resolution of the Government of the Republic of Kazakhstan No. 1276 "On Approval of Joint 
Action Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic 
on Funding of Entities in the Processing Industry " of 5 December 201 4. 
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  2) Resolution of the Government of the Republic of Kazakhstan No. 124 "On Approval of Joint 
Action Plan of the Government of the Republic of Kazakhstan and the National Bank of the Republic 
on Funding of SMEs in the Processing Industry " of 11 March 201 5. 
 
Form of the subsidy  
 
Soft loans  
 
To whom and how the subsidy is provided  
 
The funds are allocated to second -tier banks for further financing large enterprises of manufacturing 
sector. A nominal interest rate in tenge – 6 per cent, term of the loan – up to 10 years, a grace 
period is 24 months.  
 
Subsidy per unit, or in cases wher e this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
51,728 billion tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Not specified.  
 
Statistical data permitting an assessment of the trade effe cts of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
9. FUNDING OF INVESTM ENT PROJECTS  
Title of the subsidy program  
 
Funding Investment Projects.  
 
Period covered by the notification  
 
2018.  
 
Policy objective and/or purpose of the subsidy  
 
Funding Investment Projects with Socio -economic Effect.  
 
Background and authority for the subsidy  
 
Administrator of the Program: Development Bank of Kazakhstan.  
 
Legislation under which it is granted  
 
Decree of the President of the Republic of Kazakhstan No. 874 "On Approval of State Program on 
Industrial and Innovative Development of the Republic of Kazakhstan for 2015 -2019 and Additions 
to Decree of the President of the Republic of Kazakhstan No. 957 "On Approval of the List of State 
Programs " of 19 March 2010 ". 
 
Form of the subsidy  
 
Soft loans.  
 
To whom and how the subsidy is provided  
 
Subjects of large business.  
 
The size of the company's own participation is not less than 20% of the amount of the investment 
project estimate . G/SCM/N/343/KAZ  
 
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  Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
34,92 billion tenge.  
 
Duration of the subsidy and/or any other time -limits attached to it  
 
Term of lending – 5 years.  
 
Statistical data permitting an assessment of the t rade effects of a subsidy  
It is not possible to estimate what, if any, trade effects may result from the use of this program.  
 
10. STATE PROGRAM ON DEV ELOPMENT OF PRODUCTI VE EMPLOYMENT AND MA SSIVE 
ENTREPRENERSHIP FOR 2017 -2021 "YENBEK " 
Title of the subsidy program  
 
State Program on Development of Productive Employment and Massive Entrepreneurship for 
2017-2021 "Yenbek ". 
 
Period covere d by the notification  
 
2018.  
 
Policy objective and/or purpose of the subsidy  
 
Increasing the level of employment, promoting of welfare, and reducing of unemployment.  
 
Background and authority for the subsidy  
 
Administrator of the Program  – Fund "DAMU ", АО «Fund for Financial Support of Agriculture " JSC, 
Ministry of Labor and Social Defense of the Republic of Kazakhstan, local executive bodies.  
 
Legislation under which it is granted  
 
Resolution of the Government of the Republic of Kazakhstan No. 746 "On Approval of the State 
Program on Development of Productive Employment and Massive Entrepreneurship for 2017 -2021 
"Yenbek " of 13 November 2018;  
 
Form of the subsidy  
 
1) training basics of entrepreneurship within the project "Bastau Business "; 
2) micro -lending;  
3) guaranteeing of loans/micro -loans in cities and rural areas;  
4) state grants to implement new business ideas.  
 
To whom and how the subsidy is provided  
 
Subsidies are available for  unemployed, self -employed, existing entrepreneurs and start -up with 
entrepreneurial potential.  
 
Micro -loans are provided for 5 years with an annual interest rate of 0.01%. Maximum sum of 
micro -loan – 8 thousand of monthly -calcul ated index (1MCI for 2018 – 2405 tenge).  
 
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
1,008 billion tenge.  
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  Duration of the subsidy and/or any other time -limits attached to it  
 
Program operates till 2021.  
 
Statistical data permitting an assessment of the trade effects of a subsidy  
 
It is not possible to estimate what, if any, trade effects may result from the use of this program . 
 
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