13-2479 JOB/ACC/12/Rev.5          13 May 2013 
 
  Page 1/46 
 Working Party on the            O r i g i n a l :   E n g l i s h  
Accession of Kazakhstan 
 
  
WORKING PARTY ON THE ACCESSION OF KAZAKHSTAN 
CONSOLIDATED DOCUMENT ON DOMESTIC SUPPORT 
PROGRAMMES OF THE REPUBLIC OF KAZAKHSTAN 
Revision 
 The following submission, dated 5 May 2013, is  being circulated at the request of the 
Delegation of the Republic of Kazakhstan.  
 
_______________ JOB/ACC/12/Rev.5 
 
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  TABLE OF CONTENTS 
GREEN BOX ..................................................................................................................... . 3 
PARA 2. GENERAL SERVICES ........................................................................................ 3  
PARA 3. CREATION OF PUBLIC STOCKHOLDING FOR FOOD SECURITY 
PURPOSES  .................................................................................................... 17  
PARA 8. PAYMENTS (IMPLEMENTED DIRECTLY OR BY FINANCIAL 
PARTICIPATION OF THE GOVERNME NT IN THE CROP INSURANCE 
PROGRAMMES) FOR RELIEF FROM NATURAL DISASTERS ............................................... 19  
AMBER BOX .................................................................................................................... 21 
PROCUREMENT OF WHEAT INTO  THE STATE RESERV E ................................................... 21  
PROCUREMENT OF CROPS TO SUPPORT AGRICULTURAL PRODUCERS ............................ 22  
PROCUREMENT OF LIVESTOCK PRODUCTS TO SUPPORT DOMESTIC 
AGRICULTURAL PRODUCER S .......................................................................................... 23  
COMPENSATORY PAYMENTS .......................................................................................... 24  
AGRICULTURAL MACH INERY LEAS ING ........................................................................... 25  
SUBSIDIES TO REDUCE THE COST OF MINERAL FERTILIZERS, SEED 
DISINFECTANTS AND HERBICIDES APPLIE D BY AGRICULTURAL PRODUCERS ............... 26  
MICRO-CRED ITING ........................................................................................................ 27  
SOFT LOANS FOR SPRING-FIELD  AND HARVESTI NG WORK S ......................................... 28  
SUPPLY OF FUEL TO AGRICULTURAL PRODUCERS AT FIXED REDUCED PRICES .............. 29  
SUBSIDIES FOR PURCHASE OF OIL PRODUC TS TO AGRICULTURAL PRODUCERS ........... 30  
SUBSIDIES TO REDUCE THE COST OF  WATER DELIVERY SERVICES ............................... 31  
PARTIAL COMPENSATION OF  FEEDSTUFFS COST ........................................................... 32  
PEDIGREE LIVESTOC K SUBSIDIES ................................................................................. 33  
ELITE SEED SUBSIDIES .................................................................................................. 34  
SOFT LOANS FOR AGRICULTURAL PR ODUCERS - SMALL BUSINESSES............................ 35  
SOFT LOANS FROM LOCAL BUDGETS FOR RESOURCE POOR AGRICULTURAL 
PRODUCER S ................................................................................................................... 3 6 
PARTIAL COMPENSATION OF INSURANCE PAYMENTS ................................................... 37  
SUBSIDIZING SYSTEMS OF AGRICULTUR AL PRODUCTION MANAGEMENT ..................... 38  
CAPITAL WORKS AND RECONSTRUCTION OF DAMAGED PARTS OF INTER-FARM 
CHANNELS AND IRRIGATI ON FACILI TIES ...................................................................... 39  
SOFT LOANS FOR INSTITUT IONAL DEVELOPMENT OF AG RICULTURAL SECTOR ............. 40  
SOFT LOANS WITHIN THE ASIAN BA NK FOR DEVELOPMENT PROJECT ........................... 41  
SOFT LOANS WITHIN THE INTERNATIO NAL BANK FOR RECONSTRUCTION AND 
DEVELOPMENT PROJECT ................................................................................................ 42  
DEBT WRITIN G OFF ....................................................................................................... 43  
REVENUE FORGONE ON OVERDUE DE BTS ....................................................................... 44  
SOFT LOANS TO AGRICULTURAL PRODUCERS THROUGH A NETWORK OF RURAL 
CREDIT COOPER ATIVES ................................................................................................. 46  
 JOB/ACC/12/Rev.5 
 
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  GREEN BOX 
PARA 2. GENERAL SERVICES 
(а) Research, includin g general research 
Title of the programme:  
Agricultural science. 
Duration of the programme:  
The programme has been implemented since 2001.  
The programme objective: 
To conduct research on plant production in agriculture and horticulture, animal production and 
agricultural technologies. 
Legal basis:  
Republican budget:   
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 9 July 2001, No. 225-II "On Science".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic  of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Innovative-Industrial Development of the Republic of Kazakhstan for 2003-2015".  
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is implemented by direct fina ncial support from the republican budget. 
Expenditures are consistent with the criteria of paragraph 2 ( а) of Annex 2 to the Agreement on 
Agriculture. 
Within the framework of this programme the Minist ry of Agriculture undertakes measures aimed at 
supporting scientific researches. Budget expenses include the cost of research being done under 
the programme on environmental protection. 
The programme consists of the following activities: 
(i) Development of recommendations, norms and standards with the purpose to increase the 
reasonableness of measures taken for regula ting agribusinesses and modelling of the 
resettlement system of rural populations;  
(ii) Funding of applied science in the sphere of improving the competitiveness of agricultural 
products, animal health, plant protection and quarantine, animal husbandry, farming, 
development of land reform, land policy;  
(iii)  Construction of national repositories of genetic resources; (iv)  Development of improved methods of phytosanitary measures against wild hemp 
(cannabis); 
(v)  Development of methods of phyto-meliorative ecologically clean technology for 
rehabilitation of degraded pastures overgrown by wild hemp;  
(vi)  Development of technical documentation and testing samples of agricultural machines, 
components and assemblies. JOB/ACC/12/Rev.5 
 
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  (b) Pest and disease control 
Title of the programme: 
Measures on pest and disease control of agricultural crops. Duration of the programme:  
The programme has been implemented since 2000. Till 2004 the programme was financed by the 
republican and local budgets.  Since 2005 the prog ramme is funded from the republican budget 
only.  
The programme objective:  
To maintain favourable phytosanitary condition of agricultural lands. Legal basis:  
Republican budget: - Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 3 July 2002, No. 331 "On Plant Protection". - Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 10 December 2002, 
No. 1295 "On Approval of Lists of Quarantine Objects and Extremely Dangerous Pestilential 
Organisms".  
Programme implementation:  
The above expenditures are consistent with the criteria of paragraph 2 (b) of Annex 2 to the 
Agreement on Agriculture. 
The authorised body undertakes measures aimed at preventing defence against pests, diseases 
and weeds as well as keeping crops free from pests, including: 
a) Maintenance of favourable phytosanitary conditions. 
b) Identification of areas with mass development and spread of highly hazardous pests and 
diseases of agricultural crops.  
c) Procurement of pesticides and implementati on of chemical treatment of the areas with 
highly hazardous pests and diseases of agricultural crops.  
d) Protection of the country's territory from the delivery and spread of quarantine objects 
from abroad or quarantine zones.  
e) Inspection of agricultural lands for plant pests, diseases and weeds. 
It also applies such common method of pest control as spraying of pesticides on arable lands 
affected by highly pathogenic diseases and pest s included into the List of Extremely Hazardous 
Diseases and Pests approved by the Resolution  of the Government of Kazakhstan No. 1295 of 
10 December 2002. The List as such includes the most common types of highly pathogenic 
diseases and pests, such as scutelleridae , locust, Hessian fly, anisoplia , helicoverpa zea , 
tetranychidae , etc.  
These measures do not represent subsidization of an input cost. JOB/ACC/12/Rev.5 
 
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  (b) Pest and disease control 
Title of the programme: 
Measures on pest and animal disease control. Duration of the programme:  
The programme is implemented on a permanent basis.  
The programme objective:  
To ensure a favourable epizootic conditions in the country. 
Legal basis:  
Republican budget:  - Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 10 July 2002, No. 339 "On Veterinary". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 28 April 2003, No. 407 
"On Approval of Regulatory Legal Acts in the Field of Veterinary". 
Local budget:  Decisions of Regional  Maslikhats (Local executive bodies). 
The programme - 10/1/257/030, 10/9/450/107 "Support veterinary services in realising their 
duties at the local level" 
Programme implementation:  
The programme is implemented by direct financial support from the republican and local budgets.  
The above expenditures are consistent with the criteria of paragraph 2 (b) of Annex 2 to the Agreement on Agriculture. 
The programme covers only diseases included into the List of Highly Pathogenic/Infectious Animal 
Diseases, Prophylactics, Diagnostics and Liquidation adopted by the Government Resolution 
No. 407 of 28 April 2003.  
The programme covers measures in the following fields: 
1) Maintenance of favourable epizootic situation against highly hazardous diseases of 
agricultural animals and birds; 
2) Procurement of veterinary vaccines to be app lied by private veterinarians to farm animals; 
3) Protection of animals and birds from brucellosis and tuberculosis; 
4) Performance of diagnostic measures provided by State veterinary laboratories; 5) Measures on localisation and liquidation of  outbreaks of highly pathogenic and chronic 
infectious diseases. 
These measures do not represent subsidization of an input cost. JOB/ACC/12/Rev.5 
 
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  (d) Extension and advisory services 
Title of the programme: 
Training and consultancy services on agricultural business development. Duration of the programme:  
The programme has been implemented on a permanent basis. 
The programme objective:  
To develop and support agricultural marketing information system. 
Legal basis:  
Republican budget:  - Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 11 January 2007, 217-III "On Informatization". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic of Kazakhstan of 30 October 2000, No. 1627 
"On Issues of Formation of Marketing Informatio n System of the Ministry of Agriculture of 
the Republic of Kazakhstan". 
- Resolution of the Government of the Repub lic of Kazakhstan of 28 February 2003, No. 220 
"On Formation of Joint Stock Company "KazAgroMarketing". 
Local budget:  
Decisions of Regional  Maslikhats (Local executive bodies). 
Programme - 10/9/257/002, 10/1/255/001/004, 255/007, 10/9/450/008, 10/1/255/007-004, 
462/002, 10/5/254/012, 10/6/251/002 "Development of agricultural marketing information 
systems". 
Programme implementation:  
The programme is implemented by financial support from republican and local budgets.  
The measures of the programme meet the criteria of paragraph 2 (d) of Annex 2 to the Agreement 
on Agriculture.  
"KazAgroMarketing" JSC acts on behalf of the Gove rnment as an operator responsible for providing 
price information, marking and consultancy services and recommendations on increasing of 
agricultural competitiveness. Also, Company’s se rvices include conducting seminars, specialist 
trainings, fairs and exhibitions, development and assessment of business plans and agriculture-related projects.  
The company, on a permanent basis, conducts mark eting research and analysis of agricultural and 
processed products. Over 126 agricultural products are covered in a weekly price monitoring.  
Marketing and analytical analysis are implemented on  specific agricultural sectors, such as grain, 
meat, milk, sunflower seed oil, vegetables, wool, leather, and baby food markets.  JOB/ACC/12/Rev.5 
 
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  KazAgroMarketing also provides the following services: 
1) Free access to information provided to agricultural producers;  
2) Transfer of agricultural technologies, information and knowledge;  
3) Educational programmes for rural population to improve knowledge relating to 
entrepreneurship and effective use of micro-credits;  
4) Formation of unified data processing system under the "e-government" programme.  
  
 
   
 
  
 
  
 
   
 
  
 
  
 
   JOB/ACC/12/Rev.5 
 
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  (d) Extension and advisory services 
Title of the programme: 
Project of the International Bank for Reco nstruction and Development "Agricultural 
Post-Privatization Assistance".  
Duration of the programme:  
The programme is implemented on a temporary basis. The programme objective:  
To render support to agricultural enterprises based on market-oriented economy. 
Legal basis:  
Republican budget:  
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 2 Ju ly 1998, No. 261-1 "On Ratification of the Loan 
Agreement between the Republic of Kazakhstan and International Bank for Reconstruction and Development ". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is implemented within the framework of the Loan of the International Bank for 
Reconstruction and Development allocated to th e Government of the Republic of Kazakhstan 
(ratified by the Parliament of the Repu blic of Kazakhstan on 2 July 1998).  
The expenditures under this programme meet the criteria of paragraph 2 (d) of Annex 2 to the 
Agreement on Agriculture. 
Project aimed at supporting of newly privatized farms and enterprises in eight oblasts of 
Kazakhstan through the establishment of rural advisory centres:  Almaty Oblast, Kostanay, 
Pavlodar, North-Kazakhstan, West-Kazakhstan, East-Kazakhstan, South-Kazakhstan and the 
Eastern Oblast.  
This component was aimed at providing more information for agricultural producers regarding 
market principles, such as shareholder rights, an d build local business support infrastructure to 
deliver advice and training on technical and commercial practices. Expenditures varied according 
to the needs of agricultural producers in advisory services. JOB/ACC/12/Rev.5 
 
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  (d) Extension and advisory services 
Title of the programme: 
Project of the International Bank for Reconstruction and Development "Improvement of Irrigation 
and Drainage Systems"  
Duration of the programme:  
The programme was implemented until 2010. The programme objective:  
To improve irrigation and drainage systems in rural areas. 
Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 27 September 1996 "On Ratification of the Loan 
Agreement ("Improvement of Irrigation and Drainage Systems" Project) between the 
Republic of Kazakhstan and the International Bank for Reconstruction and Development of 
25 June 1996".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Repub lic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014. 
- Resolution of the Government of the Republic of Kazakhstan of 7 October 1996, No. 1237 
"On Measures to Implement Conditions for Entry into Force of the Loan Agreement on 
No. 4041-KZ between the Republic of Kaza khstan and the International Bank for 
Reconstruction and Development for the "Improvement of Irrigation and Drainage Systems" Project. 
Programme implementation:  
The programme was implemented within the framew ork of the Loan allocated to the Government 
of the Republic of Kazakhstan by the Internat ional Bank for Reconstruction and Development 
(ratified by the Laws of the Republic of Kaza khstan No. 36-1 of 27 September 1996; No. 263 of 
2 July 1998; and No. 265 of 2 July 1998).  
The measures of this project meet the criteria of  paragraph 2 (d) of Annex 2 to the Agreement on 
Agriculture. 
The "Irrigation and Drainage Syst ems Improvement" Project consis ts of two major components – 
consultation and loans. This section presents the consultancy component only. 
The project is aimed at rehabilitating irrigation systems in the southern regions of Kazakhstan: 
- Reconstruction and improvement of irrigation and drainage systems, taking into account 
ecological rules and requirements;  
- Reconstruction and improvement of the existi ng irrigation and drainage systems, taking 
into account ecological rules and requirements. 
 
 JOB/ACC/12/Rev.5 
 
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(f) Marketing and promotion services 
Title of the programme: 
Institutional development of agricultural services. 
Duration of the programme: 
The programme has been implemented since 2003. The programme objective: 
To stabilise agricultural production and secure regular agricultural input supply. 
Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 5 Nove mber 2003, No. 491-II  "On Ratification of the 
Agreement On Providing a Loan of the International Bank for Reconstruction and Development to the Republic of Kazakhstan for Preparation of "Support of Agrarian 
Services" Project and the Letter of the International Bank for Reconstruction and 
Development on Introducing Amendments and A dditions in to the Agreement on Providing 
of Loan by the International Bank for Reconstruction and Development to the Republic of 
Kazakhstan for Preparation of "Support of Agrarian Services" Project. 
- Law of the Republic of Kazakhstan of 5 July  2006, No. 161-III "On Ratification of the Loan 
Agreement between the Republic of Kazakhstan, International Bank for Reconstruction and Development and Asian Development Bank". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic of Kazakhstan of 6 September 2001 
No. 1157 "On Approval of Agreement about the Al location of Grants by the International 
Bank for Reconstruction and Development for Preparation of the Project "Support for 
Agricultural Services". 
- Resolution of the Government of the Repu blic of Kazakhstan of 24 July 2002 No. 822 
"On signing the Letter of the International Bank for Reconstruction and Development on 
Introducing Amendments in the Agreement on A llocation of Loan by the International Bank 
for Reconstruction and Development to the Republic of Kazakhstan for Preparation of "Support of Agrarian Services (Agricultural Services)" Project. 
- Resolution of the Government of the Repub lic of Kazakhstan of 19 August 2005, No. 854 
"On Loans Attracting of the International Bank for Reconstruction and Development for Funding the Project of Improvement the Comp etitiveness of Agricultural Production". 
Programme implementation:  
The programme is implemented within the framework of the Loan of the International Bank for 
Reconstruction and Development and Asian Development Bank allocated to the Government of the Republic of Kazakhstan (ratified the Law of the Republic of Kazakhstan of 5 July 2006, No. 161).  
The expenditures meet the criteria of paragraph 2 (f) of Annex 2 to the Agreement on Agriculture. JOB/ACC/12/Rev.5 
 
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  The purpose of the World Bank Project is to improv e agricultural sector of Kazakhstan by providing 
access to market and knowledge through: 
- improvement of quality and safety of agricultural products; 
- improvement of market efficiency; - improvement of quality, quantity and relevance of public and private investments into the 
applied agricultural research and knowledge transfer.   
The Project consists of the following components:  I. Quality and safety management of agricultural products. 
- Establishment of a group of experts to harmonize technical regulations, food safety and 
quality standards of agricultural products;  
- Technical assistance and training activities for public and private entities on standards and 
technical regulations for food safety; 
- Improvement of food quality monitoring system of agricultural products. 
II. Agricultural marketing development. - Improvement of agricultural producers' and processors' understanding of markets; 
- Assurance of equal access to information;  
- Promotion of the country's image to facilitate exports;  - Development of the Market Information System s of the Ministry of Agriculture and support 
development of marketing-oriented infrastructure.  
III. Development of agricultural resear ch and knowledge transfer systems. 
- Strengthening capacity for agricultural research; 
- Strengthening of agricultural kn owledge and technology transfer.  
IV. Institutional development and agricultural policy. 
- Formation of the Supervisory Board (hereinafter - SB) consisting of representatives from 
relevant government agencies, as well as from the private sector and the agricultural 
associations.  SB is responsible for the Project development process; 
- Establishment of a coordination centre for project management; - Establishment of an independent group of te chnical experts (including both national and 
international experts) responsible for assessment of sub-projects proposal;  
- Technical assistance to implement assessment of the project; - Agricultural policy development and analysis. For this purpose, a group of agricultural 
policy experts was formed.  This group was responsible for preparation of proposals and 
recommendations for the improvement of agricultural competitiveness and delivery of 
training for employees of the Ministry of Agriculture. 
 
 
  
 
   
 JOB/ACC/12/Rev.5 
 
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  (е) Inspection services 
Title of the programme:  
Inspection of agricultural crops for grading purposes. Duration of the programme:  
The programme has been implemented on a permanent basis. 
The programme objective:  
To inspect crops for grading purposes. 
Legal basis: 
Republican budget:  - Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 8 February 2003, No. 385-II "On Seed Breeding".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is implemented by financial support from republican budget. Programme is 
consistent with the criteria of paragraph 2(e) of Annex 2 to the Agreement on Agriculture. 
Expenditures are allocated for implemen tation of the following activities:  
1. Inspection of agricultural crops to receive high quality crops for grading purposes and 
provision of expert opinion on utility value of such products.  
2. Plant variety trials and objective evaluation of new sorts of agricultural crops from 
domestic and foreign origin to select the best sorts for their regionalization and introduction into production.  
3. Renewal of state register of selection achievements with highly productive sorts of 
agricultural crops, eligible for utilization on the territory of the Republic of Kazakhstan. 
  
 
  
 
  JOB/ACC/12/Rev.5 
 
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  (е) Inspection services 
Title of the programme:  
Hydrogeological-meliorative assessment. Duration of the programme:  
The programme has been implemented on a permanent basis. 
The programme objective:  
To improve meliorative conditions of irrigated lands. 
Legal basis: 
Republican budget:  - Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is implemented by direct fina ncial support from the republican budget. 
Programme is consistent with the criteria of paragraph 2 (e) of Annex 2 to the Agreement on Agriculture. 
The programme covers expenditures for monitoring of irrigated lands and facilities.  
Hydrogeological-meliorative surveys are carried out by on-site monitoring of salt level in groundwaters with the use of observation wells and organization of stationary site. 
 
  
 
   
 
  
 JOB/ACC/12/Rev.5 
 
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  (е) Inspection services 
Title of the programme: 
Monitoring of soil fertility. Duration of the programme:   
The programme has been implemented since 2002. 
The programme objective:  
To monitor meteorological parameters and soil moisture conditions.  
Legal basis: 
Republican budget:  - Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 19 January 2001 No. 143 "On Grain".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Repub lic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 23 January 2003, No. 83 
"On Formation of State Institution "Republican Scientific-Methodological Centre of Agrochemical Service of the Ministry of Ag riculture of the Republic of Kazakhstan". 
Programme implementation: 
The programme is implemented by financial su pport from republican budget. Programme is 
consistent with the criteria of paragraph 2 (e) of Annex 2 to the Agreement on Agriculture. 
The programme covers measures in the following fields: 
1) monitoring of meteorological parame ters and soil moisture conditions; 
2) evaluation and forecast of moisture reserves in the soil by the beginning of field works, 
seeding and harvesting periods;  
3) analysis of current agro-meteorological indicators in comparison to the previous year; 
4) analysis of agricultural fields for snow accumulation;  
5) space monitoring of crop condition and evaluation of agricultural productivity; 
6) preservation and rehabilitation of soil fertility. 
  
 
  
 
 JOB/ACC/12/Rev.5 
 
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  (е) Inspection services 
Title of the programme:  
Determination of sort and sowing qualities of seeds and planting materials. Duration of the programme:  
The programme is being implemented on a permanent basis. 
The programme objective:  
To improve quality of crops. 
Legal basis: 
Republican budget:  - Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 8 February 2003, No. 385 "On Seed Breeding".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repub lic of Kazakhstan of 12 August 2003, No. 805 
"On Approval of Rules on Evaluation of Sort and Sowing Qualities of Seeds Covered by the 
Republican Budget, including those Seeds, Provided to Domestic Agricultural Producers for 
Planting". 
Programme implementation:  
The programme is implemented by financial su pport from republican budget. Programme is 
consistent with the criteria of paragraph 2 (e) of Annex 2 to the Agreement on Agriculture. 
Pursuant to the Resolution of the Government of the Republic of Kazakhstan No. 805 "On Approval 
of Rules on Evaluation of Sort and Sowing Qu alities of Seeds Covered by Republican Budget, 
including those Seeds, Provided to Domestic Agricultural Producers for Planting" of 
12 August 2003, evaluation of sort and sowing qualities of seeds and planting materials is carried out on a compulsory basis for all agricultural producers, including elite seed producing farms, state varietal-testing stations and the state resource s of seeds. This service is provided on a 
free-of-charge basis to all agricultural producers by laboratories conducting seed testing.   JOB/ACC/12/Rev.5 
 
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  (g) Infrastructural services 
Title of the programme:  
Capital works of water supply facilities. 
Duration of the programme:  
The programme is implemented on a permanent basis. The programme objective:  
Construction of irrigation and drai nage systems and related facilities 
Legal basis:  
Republican budget:  
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of  Kazakhstan of 1 November 2004, No. 1466 
"On the List of Construction of Water Supply Facilities of Strategic Significance". 
- Decision of the President of the Republic  of Kazakhstan of 19 March 2004, No. 451 
"On Measures for Emergency Accidents Prevention on the Territory of Kazakhstan". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic of Kazakhstan of 21 January 2002, No. 71 
"Concept of Economic Water Sector and Waterw orks Policy Development of the Republic of 
Kazakhstan until 2010". 
Local budget:  Decisions of Regional  Maslikhats (Local executive bodies). 
Programmes - 10/2/254/004 "Restoration of water supply facilities and hydro-meliorative 
systems".  
Programme implementation:  
The programme is implemented by financial su pport from the republican and local budgets. 
Programme is consistent with the criteria of paragraph 2 (g) of Annex 2 to the Agreement on 
Agriculture. 
Support within the framework of this programme is implemented to conduct following construction 
activities in the following regions of Kazakhstan: 
1) Almaty Oblast - to repair main canals and collector-drainage network on the Karatal 
irrigation system;  
2) Kyzylorda Oblast - to improve water supply in rural areas; 
3) Karaganda Oblast - to improve rural water supply; 
4) Aktobe Oblast - to reconstruct left bank of Akshi irrigation basin in Irgiz Raion.  
  
 JOB/ACC/12/Rev.5 
 
- 17 - 
 
   
PARA 3. CREATION OF PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES 
Title of the programme: 
Storage of grain in the State grain reserve for food security purposes. 
Duration of the programme:  
The programme has been implemented on a permanent basis. The programme objective:  
Storage and transfer of the State grain reserve for food security purposes.  
Legal basis: 
Republican budget:  
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 19 January 2001, No. 143 "On Grain". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
- Resolution of the Government of Republic of Kazakhstan of 13 January 2006, No. 34 
"On Approval of Volumes for the State Grain Resources".  
- Resolution of the Government of the Republic of Kazakhstan of 28 March 2001, No. 394 
"On Formation, Storage, Renewal, Displacement and Utilization of the State Grain 
Resources". 
Programme implementation:  
According to the Law No. 143 "On Grain" of 19 January 2001, the State grain reserve forms an 
integral part of the food security programme in Kazakhstan. For this purposes, the Government annually procures wheat from agricultural producers to the state grain reserve in order to implement its annual renewal.  
 
Therefore, procurement to and disposal of the St ate reserve is made on an annual basis and is 
carried out through the state resources. At first, grain is purchased and transported to the State 
resources then it is transferred to the State reserve. Those volumes of grain, which are released 
from the State reserve during the process of its re newal, are transferred to the State resources.  
 
It should be noted that the State grain reserve is held and accumulated for food security purposes 
only. Therefore, the stocks from the state re serve are not subject to any sales operations. 
The State grain resources are maintained for: (i) renewing the State grain reserve; (ii) regulating domestic market; (iii) performing sales to domestic and export markets; and (iv) rendering food 
aid to foreign countries.  
 Procurement of grain into the grain stocks are implemented according to the Law No. 143 by the 
"Food Contract Corporation" (FCC), which performs the function of a state operator on the grain 
market. With regard to the grain stocks, the FCC performs the function of the government agent responsible for the establishment, renewal and disposal of such stocks.  
 JOB/ACC/12/Rev.5 
 
- 18 - 
 
  The Law "On Republican Budget for the Respective Year" provides for financial means on state 
procurements of grain into the grain stocks on  an annual basis. Therefore, the Government 
annually in the beginning of each calendar year by its Resolution provides budgetary funds for this 
purpose.   
The volume and accumulation of the State reserve correspond to predetermined targets related 
solely to food security purposes. According to the Government Resolution No. 34 "On Approval of Volumes for the State Grain Resources" of 13 January 2006, the volume of wheat to be procured 
to the State grain reserve for food security purposes is fixed and is equal to 500 000 metric tons. 
 In accordance with the rules "On Formation, Storage, Renewal, Displacement and Utilization of the State Grain Resources", approved by the Governme nt Resolution No. 394 of 28 March 2001, state 
procurement of grain is implemented as follows: 
 
o Through using "advance funding schemes": The FCC makes advance payments during the 
spring/summer period for the future harvest under the condition that the grain will be 
delivered during the fall period. Once the grain is delivered to the state grain resources, the FCC makes final payments at purchase price, which is established by the Government 
based on KazAgroMarketing’s
1 proposal, deducting the amount of spring/summer 
payments.   
o During the fall period, the grain is procured at the purchase price on delivery date based 
on delivery EXW incoterms. In this case, the purchase price is also established by the 
Government based on KazAgroMarketing’s proposal.  
 
KazaAgroMarketing determines the purchase price for grain on the basis of the results of current 
market prices study as well as the cost of production study and evaluation of producer’s profit. It should be noted that the procedure specified above is made on an annual basis.  
 
Stocks in the State grain reserve are disposed of by the FCC only upon its annual renewal. Those volumes of grain, which are released from the State reserve during the process of its renewal, are transferred to the state resources. As the FCC maintains both stocks of grain, the 
transfer from the reserve to resources is transa cted automatically on a free of charge basis.  
 The selling price for the stocks in the state resources is determined as follows: 
 
1. When performing the sale to domestic market, the selling price is determined by the State 
Commission for Economic Modernization, and normally is less than current domestic 
market price for the product and quality in question. 
 
2. When exporting the grain to external market s and rendering international food aid to 
foreign countries, the selling price is set on the basis of current domestic market price plus 
transportation cost.  
 In the Supporting Table DS:1 Kazakhstan reported  budget outlays spent on storage of the State 
reserves and transporting grain from private el evators to the elevators managed by the FCC.  
 The difference between the purchase price of wheat procured into the State reserve and external 
price of wheat was calculated in the Supporting table DS:5. 
 
                                               
1 "KazAgroMarketing" is responsible for providing pric e information, marketing and consultancy services 
for the Government.  JOB/ACC/12/Rev.5 
 
- 19 - 
 
  PARA 8. PAYMENTS (IMPLEMENTED DIRE CTLY OR BY FINANCIAL PARTICIPATION 
OF THE GOVERNMENT IN THE CROP INSURANCE PROGRAMMES) FOR 
RELIEF FROM NATURAL DISASTERS 
Title of the programme:  
Payment for relief from natural disasters. 
Duration of the programme:  
The programme has been implemented on a permanen t basis.  The programme is funded by local 
budgets only. 
The programme objective:  
Relief from natural disasters. 
Legal basis:  
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic of Kazakhstan of 28 April 2003 No. 407 
"On Approval of Regulatory Legal Acts in the Field of Veterinary". 
Local budget: 
Decisions of Regional  Maslikhats (Local executive bodies). 
Programme - 10/9/257/100, 106; 10/1//255/106, 10/9/450/106; 10/1/255/106, 462/106. Programme implementation:  
This programme complies with the criteria of pa ragraph 8 (a)-(e) of Annex 2 of the Agreement on 
Agriculture.  In particular, pursuant to th e Government Resolution No. 407 of 28 April 2003 
"On Approval of Regulatory Legal Acts in the Fiel d of Veterinary", based on results of laboratory 
tests, a head of local executive body (Akim) ta kes a decision on imposition of quarantine or 
restrictive measures when outbreak of highly pathogenic and infectious animal disease occurred. 
The payments shall be made only in respect of a ty pe of disease included into the List of Highly 
Pathogenic/Infectious Diseases approved by the sa me Government Resolution.  For these purposes 
a special Commission is formed on an ad hoc basis upon:  (i) request of the chief veterinary and 
sanitary inspector of the relevant territorial body of the Committee of the State Inspection in Agribusiness Industry of the Ministry of Agriculture (furthermore – territorial body) and 
(ii) Ordinance of the territorial branch of the veterinary service.  
The Commission shall consist of representatives of local executive bodies, the Committee of 
Sanitary and Epidemiological Surveillance of the Ministry of Public Health and chief veterinary and sanitary inspector of relevant territorial body.  When suspected animals are confirmed with the 
highly pathogenic disease included into the List, all susceptible livestock, presented in the 
establishment/farm, are subject to stamping out at the cost of State budget.  JOB/ACC/12/Rev.5 
 
- 20 - 
 
  Payments shall be made by the decision of the Commission upon submission of the following 
documents: (i) decision of the local executive body  on implementation of restrictive measures or 
quarantine on animal diseases; (ii) formal note on destruction and stamping out of suspected 
animals signed by the Commission members; (iii) report issued by a veterinary laboratory upon the results of diagnosis or veterinary and sanitary expertise; (iv) ordinance of the State 
veterinary-sanitary inspector of district (city) on  destruction of affected animals; (v) veterinary 
passport. 
Once a formal confirmation is made, all susceptible livestock or livestock products of individual 
agricultural producer are immediately seized by the relevant authorities and are subject to 
disposal. Therefore, the amount of a physical loss of agricultural producers to livestock or livestock products in this case is greater than 30% of the average annual production in the previous 3-year time period. Maximum compensati on amounts are fixed by the Government Resolution No. 407 
and vary by animal type, class and age. At the sa me time, the total amount of payments per head 
of destroyed livestock, per kilogram or unit of livestock products are based on the lowest average market price of livestock or livestock products. JOB/ACC/12/Rev.5 
 
- 21 - 
 
   
AMBER BOX 
PROCUREMENT OF WHEAT INTO THE STATE RESERVE 
The programme objective:  
To ensure domestic food security. 
Duration of the programme:  
The programme has been implemented on a permanent basis. 
Legal basis: 
Republican budget:  - Law of the Republic of Kazakhstan of 19 January 2001, No. 143 "On Grain". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic of Kazakhstan of 13 January 2006, No. 34 
"On Approval of Volumes of the State Reserves of Food Grain". 
- Resolution of the Government of the Republic of Kazakhstan of 19 November 2007 
No. 1106 "On Approval of the List of Specialized Organizations (agents) which Purchase the Agricultural Products from Domestic Producers, and Services for Storing, Processing 
and Transporting the Products". 
 
Programme implementation:  
According to the Law No. 143 "On Grain" of 19 January 2001, the State grain reserve forms an 
integral part of the food security programme in Kazakhstan. For this purposes, the Government annually procures wheat from agricultural producers for the State grain reserve.  
The volume and accumulation of the State reserve correspond to predetermined targets related 
solely to food security purposes. According to the Government Resolution No. 34 "On Approval of Volumes for the State Grain Resources" of 13 January 2006, the volume of wheat to be procured for the State grain reserve for food security purposes is fixed and equals to 500 000 metric tons. 
Procurement of grain into the grain stocks are implemented by the "Food Contract Corporation" 
(FCC), which performs the function of a state operator on the grain market. With regard to the grain stocks, the FCC performs the function of the government agent responsible for 
establishment, renewal and disposal of such stocks.  JOB/ACC/12/Rev.5 
 
- 22 - 
 
  PROCUREMENT OF CROPS TO SUPPORT AGRICULTURAL PRODUCERS 
The programme objective:  
To support crop producers through state procurements. Duration of the programme:  
The programme has been implemented on a permanent basis. 
Legal basis:  
Republican budget:  
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 7 July 2006, No. 645 
"On Certain Issues of Agriculture Support with Participation of Specialized Organizations". 
- Resolution of the Government of the Repu blic of Kazakhstan of 19 November 2007, 
No. 1106 "On Approval of the List of Specialized Organizations (Agents), which Purchase Agricultural Products from Domestic Producers and Services for Storing, Processing and Transporting the Products". 
Programme implementation:  
Grain is also procured by the FCC under the procurement programme to support domestic 
agricultural producers. Such procurement is made at prices determined by KazAgroMarketing on 
the basis of cost of production analysis and evaluation of producers' margin.  
State procurement of barley and raw-cotton is al so carried out by the FCC with the purpose to 
support agricultural producers. The FCC procured those commodities at prices determined by 
KazAgroMarketing in the same way as for the grain being procured to support agricultural 
producers. JOB/ACC/12/Rev.5 
 
- 23 - 
 
  PROCUREMENT OF LIVESTOCK PRODUCTS TO SUPPORT DOMESTIC AGRICULTURAL 
PRODUCERS 
The programme objective:  
To support producers through state procurements of livestock products. 
Duration of the programme:  
The programme has been implemented on a permanent basis. Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 8 September 2001, 
No. 1168 "On Formation of Joint Stock Company "Mal Onimderi Korporatsiyasy". 
- Resolution of the Government of the Repu blic of Kazakhstan of 7 July 2006, No. 645 
"On Certain Issues of Agriculture Support with Participation of Specialized Organizations". 
Programme implementation:  
According to the Resolution of the Government of Kazakhstan No. 45 "On Certain Issues of 
Agriculture Support with Participation of Spec ialized Organizations" of 7 July 2006, the JSC 
"KazAgroProduct" (former - "Mal Onimderi Korp oratsiyasy") implements state procurement of 
livestock products directly from agricultural producers on behalf of the Government. 
The procurement of livestock products is made at prices which are determined by the Commission 
on Pricing Policy of "KazAgroProduct". When setti ng the purchase price, the Commission takes into 
account that such price shall cover the cost of production and include a profit margin. JOB/ACC/12/Rev.5 
 
- 24 - 
 
  COMPENSATORY PAYMENTS 
The programme objective:  
Support to agricultural producers. Duration of the programme:  
The programme has been implemented on a permanent basis. 
Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 21 July 2007, No. 298 "On Cotton Industry 
Development". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
According to the Law No. 298 "On Cotton Industry  Development" of 21 July 2007, there is a 
mandatory requirement that cotton producers make quality assessment of cotton fibre. 
Such assessment is made by expert organization, which is appointed by the Government in accordance with the qualification requirements stipulated in the Article 6 of the Law No. 298. 
Under this programme the Government compensates the full cost of assessment services rendered 
to cotton producers by expert organization.  JOB/ACC/12/Rev.5 
 
- 25 - 
 
  AGRICULTURAL MACHINERY LEASING 
The programme objective:  
To supply agricultural producers with agricultural machinery based on financial leasing schemes.  Duration of the programme:  
The programme has been implemented since 2001.  
Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Repub lic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repub lic of Kazakhstan of 25 January 2001, No. 137 
"On Issues of Agrarian Sector Crediting". 
Programme implementation:  
The programme is implemented by direct financial support from the republican budget. Funding 
under this programme associated with purchase and subsequent transfer to long-term lease 
agricultural machinery (with option to buy), including equipments and machinery for: 
- receiving, transportation, storage and primary processing of agricultural products; 
- planting vegetables; 
- livestock and poultry farms mechanization; - foodstuffs conservation.  
- grain harvesters, irrigation machinery and agricultural equipment, including tractors, 
trailers, cultivation machines, harvesting and crop protection; 
- compensation of expenses directly relate d to the procurement and supply of equipment 
and agricultural machinery. 
 
Interest rate subsidy was calculated using the gap between average annual interest rate of commercial banks and preferential interest rate multiplied by the value of preferential loan. 
The maximum period of the financial leasing is seven years.  The interest rate varies from 6% to 
12%.   JOB/ACC/12/Rev.5 
 
- 26 - 
 
   
SUBSIDIES TO REDUCE THE COST OF MINERAL FERTILIZERS, SEED DISINFECTANTS AND 
HERBICIDES APPLIED BY AGRICULTURAL PRODUCERS 
The programme objective: 
To improve productivity of agricultural plants and quality of produced crops. 
Duration of the programme:  
The programme has been implemented since 2001. 
Legal basis: 
Republican budget:  - Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 9 July 1998, No. 278 "On Livestock Breeding". 
- Law of the Republic of Kazakhstan of 19 January 2001, No. 143 "On Grain". 
- Law of the Republic of Kazakhstan of 8 February 2003, No. 385 "On Seed Breeding". - Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014. 
- Resolution of the Government of the Repu blic of Kazakhstan of 18 March 2003, No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
Programme implementation: 
Subsidies are granted for partial budgetary reimburs ement of the cost (40%) of mineral fertilizers, 
seed disinfectants and herbicides purchased by domestic agricultural producers. 
Subsidies are paid within the reference limits established by the Ministry of Agriculture of the 
Republic of Kazakhstan for each type of fe rtilizers, seed disinfectants and herbicides. 
The programme is implemented by direct financia l support from republican and local budgets. JOB/ACC/12/Rev.5 
 
- 27 - 
 
  MICRO-CREDITING 
Duration of the programme:  
The programme has been implemented since 2005. Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repub lic of Kazakhstan of 25 January 2001, No. 137 
"On Issues of Agrarian Sector Crediting". 
Programme implementation:  
About 47% of Kazakhstan's population resides in rural areas. According to the official statistics, 
about one fifth of rural population has income below subsistence level. Poverty in the rural area is almost three times higher than in the urban areas.   In this context, micro-crediting plays the key 
role in the development of small businesses and involvement of the low-income producers in 
activities that encourage their income growth.  
The Agent of the Government of the Republic of  Kazakhstan on micro-crediting of the rural 
population is "Fund for Financial Support of Agricu lture" (hereinafter - the Fund).  The large share 
of credits allocated to the agricultural producers is involved in the livestock production, particularly in cattle and seeds procurement.  
Conditions of the micro-crediting programme through affiliates and branches of the Fund are 
convenient for rural population. Micro-credits are given for the period of up to two years at 9.5% annual rate of interest. Interest rate subsidy was calculated using the gap between average annual interest rate of commercial banks and preferential interest rate multiplied by the value of 
preferential loan.  JOB/ACC/12/Rev.5 
 
- 28 - 
 
  SOFT LOANS FOR SPRING-FIELD AND HARVESTING WORKS 
The programme objective:  
To assist low income farmers during sowing and harvesting periods.  
Duration of the programme:  
The programme is implemented on a permanent basis. 
Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 19 January 2001, No. 143 "On Grain". - Law of the Republic of Kazakhstan of 8 February 2003, No. 385 "On Seed Breeding". - Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Resolution of the Government of the Repub lic of Kazakhstan of 25 January 2001, No. 137 
"On Issues of Agrarian Sector Crediting". 
- Resolution of the Government of the Repu blic of Kazakhstan of 18 March 2003 No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
- Resolution of the Republic of Kazakhstan of 13 January 2006, No. 41 "On Approval of JSC 
"Food Contract Corporation" Realization Plan for 2006-2008". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Local budget: 
Decisions of Regional  Maslikhats (Local executive bodies). 
The programme - 10/1/257/007 "Second-tier banks' commission for distribution of loans on 
spring-field and harvesting works". 
Programme implementation: 
The programme is implemented by direct financial support from the republican budget. Under this 
programme government provides soft loans to agricultural producers through the "Food Contract Corporation".  
Soft loans were provided for spring-field and harv esting works. Interest rates ranges between 8% 
and 11% for the period of one year. Interest rate subsidy was calculated using the gap between average annual interest rate of commercial banks and preferential interest rate multiplied by the 
value of preferential loan.  JOB/ACC/12/Rev.5 
 
- 29 - 
 
  SUPPLY OF FUEL TO AGRICULTURAL PRODUCERS AT FIXED REDUCED PRICES 
The programme objective:  
To improve the quality of crops. Duration of the programme:  
In 2000 and from 2003-2011. 
Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014. 
- Protocol from the extended session of the Working Party on adequate supply of the oil 
products to the domestic market and mechanism of price formation on fuel and lubricants in the Ministry of Oil and Gas as of 25 January 2010. 
- Protocol from the extended session of the Working Party on adequate supply of the oil 
products to the domestic market and mechanism of price formation on fuel and lubricants 
in the Ministry of Oil and Gas as of 15 March 2011. 
- Protocol from the extended session of the Working Party on adequate supply of the oil 
products to the domestic market and mechanism of price formation on fuel and lubricants 
in the Ministry of Oil and Gas as of 27 June 2011. 
Programme implementation:  
The programme aimed at delivering fuel and lubricant materials from oil refineries to domestic 
agricultural producers at fixed prices (2009=US$53,940 per tonne; 2010=US$74,000 per tonne; 2011=US$75,000 per tonne; 2012 - US$86,000 per tonne). The programme is implemented under the agreement of the refineries wi th the Ministry of Oil and Gas of the Republic of Kazakhstan and 
the Ministry of Agriculture of the Republic of Kazakhstan.   
The subsidy is calculated using the gap between fixed price and market price multiplied by the 
volume of oil products that was delivered to agricultural producers. 
The programme has been implemented by dire ct support from the republican budget. JOB/ACC/12/Rev.5 
 
- 30 - 
 
  SUBSIDIES FOR PURCHASE OF OIL PRODUCTS TO AGRICULTURAL PRODUCERS 
The programme objective:  
To improve crop quality. Duration of the programme:  
The programme is implemented on a permanent basis.  Since 2011 the programme is funded from 
the local budgets only. 
Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- "On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
Programme implementation:  
Within the framework of this programme direct subsidies are provided to agricultural producers for 
the partial compensation of costs associated with purchase of diesel used in cultivating crops and 
performing spring-fields and harvesting works.   
Payment of subsidies to agricultural producers is made once a year to cover the cost of diesel 
within limits approved by the Ministry of Agriculture. The limits are established according to the 
standard consumption of diesel fuel per hectare, in compliance with technological maps.  JOB/ACC/12/Rev.5 
 
- 31 - 
 
  SUBSIDIES TO REDUCE THE COST OF WATER DELIVERY SERVICES 
The programme objective:  
To reduce the cost of irrigation water delivery  serviced rendered to agricultural producers. 
Duration of the programme:   
The programme has been implemented since 2003. Since 2011 the programme is funded from the 
local budgets only. 
Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Repub lic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 4 April 2006, No. 237 
"On Approval of Rules on Subsidies to Reduce the Cost of Water Delivery Services to Agricultural Producers". 
Programme implementation:  
Subsidies are granted for partial budgetary reimbursement of the cost of water delivery services 
rendered to agricultural producers.  
Subsidies are paid only for actual water delivery services rendered to agricultural producers at a 
reduced cost within established limits.  
The subsidies per cubic meter of delivered water are calculated as 40% of the tariffs charged for 
water delivery services. Such tariffs are approved  by the authorized state body responsible for 
regulation of natural monopolies. 
The programme is implemented by direct fina ncial support from the republican budget.  JOB/ACC/12/Rev.5 
 
- 32 - 
 
  PARTIAL COMPENSATION OF FEEDSTUFFS COST 
The Programme objective:  
To increase quality and produc tivity of livestock products. 
Duration of the programme:   
The programme has been implemented since 2006. 
Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 9 July 1998, No. 278 "On Livestock Breeding". - Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
 
Local budget:  
Decisions of Regional  Maslikhats (Local executive bodies). 
The programme - 10/1/255/013/015. 
Programme implementation: 
Under this programme the Government provides subsidies in the form of reduced prices (up to 
45%) for combined feedstuffs used to feed cattle, pigs and birds in order to stimulate production 
and sale of beef, pork and poultry and improv e productivity, quality and competitiveness of 
livestock products produced by agricultural producers. 
Subsidies are provided to domestic agricultural producers specialized in production of beef, pork 
and poultry based on the actual volume of sales of bovine meat, pork and poultry (slaughter 
weight). The price reduction subsidy rates per 1 kilogram of combined feedstuffs, feed use limits per, kilogram of product and kilogram of prod ucts sold are established by the Ministry of 
Agriculture of the Republic of Kazakhstan.  
The table below shows the price reduction rates per kg of combined feedstuffs used in livestock 
production.  
Product name Price reduction of combined feedstuff, kg/tenge 
(max 45% of the cost) 
Combined feedstuff 18 
The rate of combined feedstuffs consumptio n used in production of 1kg of poultry. 
Product type Limits used in production of poultry, 1kg 
Poultry 2.61 
The rate of subsidy per 1 kg of sold poultry of own production in slaughter weight. 
Product type Subsidy rate per 1 kg of sold poultry of own production in 
slaughter weight, KZT 
Poultry 47 JOB/ACC/12/Rev.5 
 
- 33 - 
 
  PEDIGREE LIVESTOCK SUBSIDIES 
The programme objective:  
To ensure production of pedigree livestock. 
Duration of the programme:   
The programme is implemented on a permanent basis. 
Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 9 July 1998, No. 278 "On Livestock Breeding". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 18 March 2003, No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
Local budget: 
Decisions of Regional  Maslikhats (Local executive bodies) 
Programme - 10/1/257/008, 10/1/255/002, 10/1/255/010/015 "Livestock development". 
Programme implementation: 
1. The Government partially (by 50%) compensates the price of livestock products sold to 
domestic agricultural producers, in particular, of such products as: 
- young pedigree livestock;   
- breeding eggs; 
- semen doses.  
2. Subsidies are also granted to cover the full cost of the following: 
- procurement and maintenance of breeding bulls; 
- procurement, maintenance and utilization of embryos and semen from breeding bull; - procurement of young birds for breeding; 
- procurement and maintenance of stud-rams in the breeding centres; 
- procurement of combined feedstuffs for birds in the poultry breeding farms; - procurement of special laboratory equipments and special agro-technologies for the 
development of breeding business; 
- procurement, maintenance and training of breeding stallions; 
- procurement and maintenance of semen from breeding stallions in the breeding factory. 
The Government keeps no record of subsidies disaggregated by livestock species group under this 
programme. The programme is implemented by dire ct financial support from the republican and 
local budgets.   JOB/ACC/12/Rev.5 
 
- 34 - 
 
  ELITE SEED SUBSIDIES 
The programme objective:  
To reduce the price of elite varieties of seeds purchased by farmers. Duration of the programme: 
The programme is implemented on a permanent basis. 
Legal basis: 
Republican budget:  
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 8 February 2003, No. 385 "On Seed Breeding". - Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Local budget: Decisions of Regional  Maslikhats (Local executive bodies). 
Programme - 10/1/105/006 "Support for seed breeding". 
Programme implementation:  
The programme is implemented as follows: 
1. Subsidies are granted to reduce producti on costs (up to 40%) of patent seeds and 
seedlings of fruit trees. 
2. Subsidies applied to reduce the cost (up to 40%) of elite seeds sold to domestic 
agricultural producers. 
There is no record of subsidies disaggregated by crop type within this programme. JOB/ACC/12/Rev.5 
 
- 35 - 
 
  SOFT LOANS FOR AGRICULTURAL PRODUCERS - SMALL BUSINESSES 
The programme objective:  
To ensure support to agricultural producers in the form of soft loans. Duration of the programme: 
The programme has been implemented since 2002. 
Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 22 May 2002, No. 555 "On Approval of Rules of 
Replenishment and Use of Credits of JSC "Fund for Small Business Development". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 18 March 2003, No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
Programme implementation: 
In the process of agrarian restructuring in the 1990s the majority of agricultural producers had 
faced the problem of insolvency.  For this reason, the government has developed programme 
devoted to providing loans for farmers with the pu rpose of supporting the small rural businesses.  
The term "small businesses" is referred to small sized peasant (private) farms. In general, such farms are physical rather than legal persons. Small sized peasant farms in Kazakhstan are 
considered as low-income agricultural producers.  
The government provides soft loans through the "Fund for small business development".  
Soft loans are distributed for: 
- introduction and operation of a new technology in agriculture production; 
- purchase of such inputs as tractors, agricultural machines, fuel and lubricant materials, 
seeds, fertilizers, herbicides, pesticides, veterinary preparations and cattle breeds. 
The loans are allocated from the republican budget. Micro-loans are given for a period of up to two 
years at 9.5% annual interest rate. The normal loan s are given for a period of 5-7 years at interest 
rates varying from 7 to 14.5%. Interest rate subsidy was calculated using the gap between the 
average annual interest rate of commercial bank and preferential interest rate multiplied by the 
value of preferential loan.  JOB/ACC/12/Rev.5 
 
- 36 - 
 
  SOFT LOANS FROM LOCAL BUDGETS FOR RESOURCE POOR AGRICULTURAL PRODUCERS 
The programme objective:  
To ensure support to agricultural producers in the form of soft loans. Duration of the programme: 
The programme is implemented on a permanent basis. 
Legal basis: 
Decisions of Regional  Maslikhats (Local executive bodies). 
Programme implementation:  
Under this programme funding is channeled through banks for providing loans to resource poor 
agricultural producers for replenishing of their floating assets.  The loans are distributed by local administrations from the local budgets.  Agricultural producers and small rural businesses use the funds to purchase inputs for their agricultural productions.   
The loans are given for a period of 1-10 years at an interest rate of 0-14.5%. Interest rate subsidy 
was calculated using the gap between the average annual interest rate of commercial banks and preferential interest rate multiplied by the value of preferential loan.  
 JOB/ACC/12/Rev.5 
 
- 37 - 
 
  PARTIAL COMPENSATION OF INSURANCE PAYMENTS 
The programme objective:  
To compensate insurance payments to agricultural producers. Duration of the programme:  
The programme has been implemented since 2004. 
Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Repub lic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
- Law of the Republic of Kazakhstan of 10 March 2004, No. 533-II "On Compulsory Crop 
Insurance". 
- Resolution of the Government of the Repu blic of Kazakhstan of 4 April 2007, No. 270 
"On Approval of Criteria and Characteristics for Defining Unfavourable Natural 
Phenomenon". 
Programme implementation:  
Crop insurance programme protects agricultural producers against losses from natural disasters.  
It provides for partial compensation of insurance payments made by the insurer. The programme 
subsidizes up to 50% of insurance payments made by insurance companies to agricultural 
producers. The programme is implemented by direct support from the republican budget. 
Eligibility for such payments occurs only when the state authorities confirm that adverse natural 
phenomena have taken place. Such recognition is made by the Committee formed at the request of an insured party by local executive body. Th e committee includes representatives of the local 
executive body, authorized state bodies in the sphe re of crop production, administration of land 
resources, the agent, the insurer and the insure d person. The final act is drawn by the committee 
presenting the results of a survey. 
According to the Law of the Republic of Kazakhstan No. 533 "On Compulsory Crop Insurance" of 
10 March 2004, payments are made due to actual damage or destruction of crops resulting from 
adverse natural phenomena, after which agricultural producers bore losses. 
The insurance payments are determined by the co ntract signed between the insuring company and 
the insured person on each type of crop based on standard expenses per hectare, multiplied by 
the whole area, on which the insured person bears expenses for growing crops. Calculation of insurance payments is made on the basis of costs according to the following schemes: 
o Scientifically justified agro technology; 
o Simplified agro technology; 
o On three types of costs based on scientifica lly justified or simplified agro technology: 
 - fuel and lubricants; 
 - seeds; 
 - salaries. JOB/ACC/12/Rev.5 
 
- 38 - 
 
  SUBSIDIZING SYSTEMS OF AGRICULTURAL PRODUCTION MANAGEMENT 
The programme objective:  
To improve the quality of agricultural products. Duration of the programme:  
The programme has been implemented on an ongoing basis. 
Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repu blic of Kazakhstan of 14 March 2006, No. 156 
"On Approval of the Rules on Subsidizing Systems of Agricultural Production Management". 
Programme implementation:  
Under this programme the Government supports large agricultural producers by providing 
subsidies  of up to 50% of the certification costs. Th e programme is aimed at ensuring sustainable 
development of agricultural sector, increasing its competitiveness and bringing agricultural production into conformity with international standards, via partial subsidizing of costs of large 
agricultural producers, selected by contest, fo r introducing quality management system on the 
basis of international ISO standards and HASSP into their productions. 
 JOB/ACC/12/Rev.5 
 
- 39 - 
 
  CAPITAL WORKS AND RECONSTRUCTION OF DAMAGED PARTS OF INTER-FARM 
CHANNELS AND IRRIGATION FACILITIES 
The programme objective:  
To provide capital works and reconstruction of inter-farm channels and irrigation facilities. 
Duration of the programme:  
The programme has been implemented on a permanent basis. Legal basis:  
Republican budget:  
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is aimed at financing capital work s and reconstruction of damaged parts of inter-
farm channels and irrigation facilities owned by agricultural production cooperatives of water users 
(collective ownership). The programme is implem ented by direct support from the republican 
budget. JOB/ACC/12/Rev.5 
 
- 40 - 
 
  SOFT LOANS FOR INSTITUTIONAL DEVELOPMENT OF AGRICULTURAL SECTOR 
The programme objective:  
To form an effective system of agro-food sector. Duration of the programme:  
The programme has been implemented from 2003 to 2007. 
Legal basis:  
Republican budget:  
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014". 
Programme implementation:  
The government provides soft loans to agricultural producers through the "KazAgroFinance".  
The aim of this programme is to organize infrastructure aimed at servicing agricultural production.  Funding is granted for machinery-technological stations (service centres) for seven years at the 
2% interest rate.  
Interest rate subsidy was calculated using the gap between average annual interest rate of 
commercial banks and preferential interest rate multiplied by the value of preferential loan.  JOB/ACC/12/Rev.5 
 
- 41 - 
 
  SOFT LOANS WITHIN THE ASIAN BANK FOR DEVELOPMENT PROJECT "WATER 
RESOURCES MANAGEMENT AN D LAND REHABILITATION" 
The programme objective:  
To rehabilitate the fertility of degraded arable land. 
Duration of the programme:  
The programme has been implemented since 2002. Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 2 July 1998, No. 265-1 "On Ratification of Loan 
Agreement No. 1592/1593 (SF) - КАZ ("Management of Water Resources and 
Rehabilitation of Lands" Project) between the Republic of Kazakhstan and the Asian 
Development Bank of 25 March 1998". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Repub lic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
"Water Resources Management and Land Rehabilitation" Project consists of two major components 
– consultation and loans. This section presents the loan component. 
The programme is being implemented within th e framework of the Loan allocated to the 
Government of the Republic of Kazakhstan by the Asian Development Bank for (ratified by the 
Laws of the Republic of Kazakhstan No. 36-1 of  27 September 1996; No. 263 of 2 July 1998; and 
No. 265 of 2 July 1998). Agreements on repayment an d loan were signed between the Ministry of 
Finance and agricultural producers with the participation of the Ministry of Agriculture and the agent-Bank.  
Soft loans were granted to agricultural producers for a period of 27 years. Interest rate subsidy 
was calculated using the gap between average annual interest rate of commercial banks and preferential interest rate multiplied by the value of preferential loan.  
 JOB/ACC/12/Rev.5 
 
- 42 - 
 
  SOFT LOANS WITHIN THE INTERNATIO NAL BANK FOR RECONSTRUCTION AND 
DEVELOPMENT PROJECT "IRRIGATION AND DRAINAGE SYSTEMS IMPROVEMENT" 
The programme objective:  
To improve irrigation and drainage system of agricultural producers. 
Duration of the programme:  
The programme is implemented on a temporary basis. Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 27 September 1996, No.  36-1"On Ratification of the 
Loan Agreement ("Improvement of Irrigation and Drainage System" Project) between the 
Republic of Kazakhstan and the International Bank for Reconstruction and Development of 
25 June 1996". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic of Kazakhstan of 7 October 1996, No. 1237 
"On Measures for Implementation of Conditions for the Entry into force of the Loan 
Agreement No. 4041-KZ between the Republic of  Kazakhstan and the International Bank 
for Reconstruction and Development for the "Improvement of Irrigation and Drainage Systems" Project.  
-  T h e  R e s o l u t i o n  o f  t h e  G o v e r n m e n t  o f  t h e  R e p u b l i c  o f  K a z a k h s t a n  o f  2  A u g u s t  2 0 0 5 ,  
No. 804 "On Signing the Letter Agreement betw een the Republic of Kazakhstan and the 
International Bank for Reconstruction and Development on Allocation of a Grant for Preparation of the Second Phase of the "Impro vement of Irrigation and Drainage Systems" 
Project. 
Programme implementation:  
The "Irrigation and Drainage Syst ems Improvement" Project consis ts of two major components – 
consultation and loan.  This section presents the loan component. 
The programme is implemented within the framewor k of the Loan allocated to the Government of 
the Republic of Kazakhstan by the International Bank for Reconstruction and Development (ratified 
by the Laws of the Republic of Kazakhstan No . 36-1 of 27 September 1996;  No. 263 of 2 July 
1998; and No. 265 of 2 July 1998). Agreements on repayment and loan were signed between the 
Ministry of Finance and agricultural producers with participation of the Ministry of Agriculture and 
the agent-Bank.  
The interest rate was adopted at 6.5%. Soft loans were granted to agricultural producers for a 
period of 30 years.  
Interest rate subsidy was calculated using the gap between average annual interest rate of 
commercial banks and preferential interest rate multiplied by the value of preferential loan.  
 JOB/ACC/12/Rev.5 
 
- 43 - 
 
  DEBT WRITING OFF 
The programme objective:  
 
To write off overdue debts of agricultural producers.  
Duration of the programme:  
 
The programme had been implemented on ongoing basis. 
 
Legal basis:  
 - Government Decisions 
 
Programme implementation: 
Within the framework of this programme government wrote off the overdue debts of agricultural 
producers. The competence to write off the debt s of producers is under the competence of the 
Government. This programme is implemented on the basis of a Government decision. The Fund for Financial Support of Agriculture under the Ministry of Agriculture wrote off the accumulated debts 
in the amount specified by the Government Re solutions. "Zero" in the table means that 
Government did not take a decision to write off the debts.   JOB/ACC/12/Rev.5 
 
- 44 - 
 
  REVENUE FORGONE ON OVERDUE DEBTS 
Duration of the programme: 
The programme has been implemented on an ongoing basis. 
Background and authority of the programme 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Law of the Republic of Kazakhstan of 7 December 2009, No. 219-IV  "On Republican 
Budget for 2010-2012". 
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of Kazakhstan for 2010-2014. 
- Decree of the Cabinet of Ministers of the Re public of Kazakhstan of 6 March 1995, No. 224 
"On Transfer of Credit Debts of Agricultural Producers with all Forms of Ownership to the Fund for Financial Support of Agriculture under the Ministry of Agriculture of the Republic 
of Kazakhstan". 
- Resolution of the Government of the Repu blic of Kazakhstan of 14 December 1995, 
No. 1719 "On Transfer of Debts on Centralized and Directive Credits to the Fund for Financial Support of Agriculture". 
- Resolution of the Government of the Republic of Kazakhstan of 28 May 1996, No. 651 
"On the Agreement, Signed on 17 May 1996 between the Ministry of Finance of the 
Republic of Kazakhstan and the Fund for Financial Support of Agriculture". 
- Resolution of the Government of the Repu blic of Kazakhstan of 24 December 1998, 
No. 1332 "On Certain Issues of the Joint Stock Company "Fund for Financial Support of Agriculture". 
- Resolution of the Government of the Repu blic of Kazakhstan of 1 September 2010, 
No. 865 "On Termination of Claims of the Go vernment of the Republic of Kazakhstan 
Against Borrowers Liquidated in Accordance with the Legislation of the Republic of 
Kazakhstan as of 1 January 2010, on the Loans Singed off to JSC "Fund for Financial 
Support of Agriculture" on the basis of De cree of the President of the Republic of 
Kazakhstan and Certain Legislative Acts of the Government of the Republic of Kazakhstan". 
- Law of the Republic of Kazakhstan of 2 April 2010 No. 261 "On Enforcement Procedures 
and Status of Enforcement Officials". 
Programme implementation: 
In 1994 the Government provided loans to agricult ural producers, the repayment period of which 
began on 1 March 1995.  
Starting from 1995 agricultural producers failed to  pay principals and interests of the loans.  
Thus, the Government forgoes the revenue that it would otherwise collect from agricultural 
producers in the form of interests. The "Fund for Financial Support of Agriculture" as an agent of 
the Government has the right to claim overdue debts of agricultural producers under this 
programme.  
For the purposes of subsidy calculation, only losses in values of Government revenues were taken 
into account. In particular, value of accumulated debts, including accumulated interest rates, fines 
and penalties multiplied by annual average interest  rate of the commercial banks. No debts, which 
were written off by the Government are acco unted for in calculating revenue forgone. JOB/ACC/12/Rev.5 
 
- 45 - 
 
  REVENUE FORGONE ON OVERDUE DEBTS 
Duration of the programme:  
The programme has been implemented since 2003. Legal basis:  
Republican budget: 
- Law of the Republic of Kazakhstan of  15 March 1995, No. 2120 "On 1995 Republican 
budget". 
- Law of the Republic of Kazakhstan of 21 December 1996, No. 2700 "On 1996 Republican 
budget". 
- Law of the Republic of Kazakhstan of 31 December 1996, No. 59-1 "On 1997 Republican 
budget". 
- Decree of the President of the Republic of  Kazakhstan of 24 February 1994, No. 1578 
"On Rendering Assistance to Agricultural Enterprises in 1994". 
- Resolution of the Government of the Repu blic of Kazakhstan of 17 September 1996, 
No. 1130 "On Regulation of Certain Financial Obligations in the Agricultural and Energetic 
Complexes of the Republic of Kazakhstan". 
Programme implementation:  
In 1994 the Government provided loans to agricult ural producers, the repayment period of which 
began on 1 of March 1995.  
Starting from 1995 agricultural producers failed to pay principals and interests of the loans. 
Thus, the Government forgoes revenue that it woul d otherwise collect from agricultural producers 
i n  t h e  f o r m  o f  i n t e r e s t s .   T h e  " F u n d  f o r  F i n a n c i a l  S u p p o r t  o f  A g r i c u l t u r e "  a s  a n  a g e n t  o f  t h e  
Government has the right to claim overdue debts of agricultural producers under this programme.  
For the purposes of subsidy calculation, only losses in values of Government revenues were taken 
into account. In particular, value of accumulated debts, including accumulated interest rates, fines 
and penalties multiplied by annual average interest  rate of the commercial banks. No debts, which 
were written off by the Government are acco unted for in calculating revenue forgone. JOB/ACC/12/Rev.5 
 
- 46 - 
 
  SOFT LOANS TO AGRICULTURAL PRODUCERS THROUGH A NETWORK OF RURAL CREDIT 
COOPERATIVES 
The programme objective: 
To provide soft loans to agricultural producers. 
Duration of the programme: 
The programme has been implemented since 2001. Legal basis: 
Republican budget: 
- Law of the Republic of Kazakhstan of 8 July 2005, No. 66 "On State Regulation of 
Agriculture and Rural Areas".  
- Decree of the President of the Republic of Kazakhstan of 9 July 2003, No. 1149 "On the 
State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- Resolution of the Government of the Repub lic of Kazakhstan of 25 January 2001, No. 137 
"On Issues of Agrarian Sector Crediting". 
- Resolution of the Government of the Republic of Kazakhstan of 12 October 2010, No. 1052 
"On Approval of the State Program for Rural Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation: 
Under this programme the Government provides soft loans to agricultural producers through the 
Agent of the Government of the Republic of Kazakhstan - "Agrarian Credit Corporation". 
Loans were granted to agricultural producers through the network of rural credit cooperatives.  
The loans were given for a period of 1 to 7 years at the interest rates from 4% to 12%. Interest 
rate subsidy was calculated using the gap between average annual interest rate of commercial 
banks and preferential interest rate multip lied by the value of preferential loan.  
 
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