12-3705  JOB/ACC/12/Rev.1              9 July 2012  
 
Working Party on the            Original:  English  
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 4 July 2012, is being circulated at the request of the Delegation of the Republic of Kazakhstan.  
 
_______________  JOB/ACC/12/Rev.1 
 Page i 
 
 
  TABLE OF CONTENTS 
 
GREEN BOX ..................................................................................................................... ..................... 1  
PARA 2.  GENERAL SERVICES ..................................................................................................... 1  
PARA 3.  CREATION OF PUBLIC STOCKHOLDING FOR FOOD SECURITY 
PURPOSES ...................................................................................................................... . 23 
PARA 8.  PAYMENTS (IMPLEMENTED DIRECTLY OR BY FINANCIAL 
PARTICIPATION OF THE GOVERNMENT IN THE CROP INSURANCE PROGRAMMES) FOR RELIEF FROM NATURAL DISASTERS .......................... 25  
MEASURES EXEMPT FROM THE REDUCTION COMMITMENT:  SPECIAL AND 
DIFFERENTIAL TREATMENT - 'DEV ELOPMENT PROGRAMMES' ................................... 27  
(A)  INVESTMENT SUBSIDIES .................................................................................................. 27  
(B)  INPUT SUBSIDIES GENERALLY AVAILABLE TO LOW-INCOME OR 
RESOURCE-POOR PRODUCERS ...................................................................................... 29  
AMBER BOX ..................................................................................................................... .................. 41  
PROCUREMENT OF WHEAT INTO  THE STATE RESERVE .................................................. 41  
PROCUREMENT OF CROPS TO SUPPORT  AGRICULTURAL PRODUCERS ..................... 42  
PROCUREMENT OF LIVESTOCK PRODUCTS TO SUPPORT DOMESTIC 
AGRICULTURAL PRODUCERS ..................................................................................................... 43  
COMPENSATION PAYMENTS ....................................................................................................... 4 4 
PARTIAL COMPENSATION OF INSURANCE PAYMENTS ..................................................... 45  
SUBSIDIZING SYSTEMS OF AGRICULT URAL PRODUCTION MANAGEMENT .............. 47  
CAPITAL WORKS AND RECONSTRUCTION OF DAMAGED PARTS OF INTER-FARM 
CHANNELS AND IRRIGATION FACILITIES .............................................................................. 48  
SOFT LOANS FOR INSTITUT IONAL DEVELOPMENT OF 
AGRICULTURAL SECTOR ........................................................................................................... .. 49 
SOFT LOANS WITHIN THE ASIAN BA NK FOR DEVELOPMENT PROJECT ..................... 50  
SOFT LOANS WITHIN THE INTERNATIONAL BANK FOR RECONSTRUCTION AND 
DEVELOPMENT PROJECT ........................................................................................................... .. 51 
DEBT WRITING OFF .............................................................................................................. .......... 53 
REVENUE FORGONE ON OVERDUE DEBTS ............................................................................. 54  
REVENUE FORGONE ON OVERDUE DEBTS ............................................................................. 55  
SOFT LOANS TO AGRICULTURAL PRODUCERS THROUGH A NETWORK OF RURAL 
CREDIT COOPERATIVES ........................................................................................................... .... 56  JOB/ACC/12/Rev.1 
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 GREEN BOX 
PARA 2. GENERAL SERVICES (а) Research, including general research 
Title of the programme:  
Agricultural science. Duration of the programme:  
The programme has been implemented since 2001.  
The programme objective: 
To prepare highly qualified specialists fo r the agricultural sector of Kazakhstan. 
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". 
- Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovation Development of th e Republic of Kazakhstan for 
2003-2015".  
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is implemented by direct financ ial support from the republican budget.  The above 
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 Mini stry of Agriculture maintains measures aimed at 
supporting scientific researches.  Budget expenses in clude the cost of the research conducted under 
the programme on environmental protection. 
The programme consists of the following activities: 
(i) Development of recommendations, norms, standards and techniques to increase the 
reasonableness of the measures taken for re gulation of the agribusinesses and modelling of 
the resettlement system of rural populations;  JOB/ACC/12/Rev.1 
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 (ii) Funding of applied sciences in the field of improving the competitiveness of agricultural 
products, animal health, plant protection a nd quarantine, animal husbandry, farming, 
development of land reform, land policy;  
(iii)  Construction of a national depository of genetic resources; (iv)  Elaboration of improved methods of phyto sanitary measures against wild hemp (cannabis); 
(v)  Development of the 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.1 
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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 progra mme is funded from the republican budget only.  
The programme objective:  
To maintain favourable phytosanitary condition of agricultural farming 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 Ju ly 2002, No. 331 "On Plants Protection". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic of Kazakhstan of 10 December 2002, No. 1295 
"On Approval of Lists of Quarantine Obj ects 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 applies measures against pest s, diseases and weeds as well as to keep crops free 
from pests, including: 
a) Maintenance of favourable phytosanitary conditions. 
b) Works to identify areas of mass development and spread of highly hazardous pests and 
diseases of agricultural plants.  
c) Procurement of pesticides and chemical treatment of the areas settled by highly hazardous 
pests and diseases of agricultural plants.  
d) Protection from entry or spread of quarantine objects from foreign countries or quarantine 
zones.  
e) Examination and analysis of agricultural la nds to detect pests, plant diseases and weeds. JOB/ACC/12/Rev.1 
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 It also applies such common method of pest contro l as spray of pesticides on arable lands affected by 
highly pathogenic diseases and pests 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 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.1 
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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 maintain favourable epizootic s ituation for agricultural animals 
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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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). 
The programme - 10/1/257/030, 10/9/4 50/107 "Support veterinary services in realising their duties at 
the local level" 
Programme implementation:  
The programme is implemented by direct financ ial 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.  JOB/ACC/12/Rev.1 
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 The programme covers measures in the following fields: 
1) Maintenance of favourable epizootic s ituation 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) Activities for protection of animals and birds from brucellosis and tuberculosis; 
4) Diagnostic measures provided by State veterinary laboratories; 
5) Measures on localisation and liquidation of  outbreaks of highly pa thogenic and chronic 
infectious diseases. 
These measures do not represent subsidization of an input cost.  JOB/ACC/12/Rev.1 
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 (c) Training services 
Title of the programme:  
Training for Government officers. 
Duration of the programme:  
The programme has been implemented on a permanent basis. The programme objective:  
To upgrade skills and knowledge of State employees in the sphere of agriculture. 
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 23  July 1999, No. 453 "On State Service". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 Informational and Marketing Syst em Formation of the Ministry of Agriculture 
of the Republic of Kazakhstan". 
Local budget:  
Decisions of Regional  Maslikhats (Local executive bodies) 
Programme - 10/5/256/001/007, 257/001/007, 10/ 1/255/001/007, 10/6/251/001/007, 10/1/462/001/007 
"Professional development courses for the State employees". 
Programme implementation:  
The programme is implemented by direct fi nancial support from republican and local budgets. 
The support is compliant with the criteria of 2(c) of the Annex 2 to Agreement on Agriculture as it 
covers the cost of conducting professional training, including basic and advanced specialist training to 
improve professional skills of Government officers – employees of central administrative office of the 
Ministry of Agriculture, Committees (Committees of State Inspection in Agribusiness Industry, Water 
Management, Forestry and Hunting Farm, Fishing Industry and Development of Rural Territories) 
and their Territorial bodies in 14 oblasts and in Astana and Almaty cities. 
The training programme was designed to address the n eeds of the agricultural producers in up-to-date 
knowledge in farming technologies.  The program me provides for training of government officers 
who, in turn, provide trainings to agricultural produ cers.  In particular, the trainings focus on transfer 
information and technical support relating to food security, farm risk mitigation, how to increase crop 
yields and other needs specific to geogra phical location of a particular farm.   JOB/ACC/12/Rev.1 
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 (d) Extension and advisory services 
Title of the programme: 
Consultancy support and training services for development of agricultural business. 
Duration of the programme:  
The programme has been implemented on a permanent basis. 
The programme objective:  
To develop and support agricultural information-marketing 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 Informational and Marketing Syst em Formation of the Ministry of Agriculture 
of the Republic of Kazakhstan". 
- Resolution of the Government of the Republic  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. 
Joint Stock Company "KazAgroMarketing" functions on behalf of the Government of the Republic of 
Kazakhstan as an operator, responsible for preparation of recommendations for increasing 
competitiveness, market analysis, information and consultancy suppor t for development of 
agricultural business of agricultural and processed pr oducts. Also, the services of this company are 
aimed at developing and assessing business plans and projects, holding seminars, specialised training, 
fairs and exhibitions.   JOB/ACC/12/Rev.1 
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 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 works are implemented on specific agricultural sectors,  such as grain, meat, 
milk, sunflower seed oil, vegetables, w ool, leather, and baby food markets.  
KazAgroMarketing also provides following services: 
1) Free access to information for agricultural producers;  
2) Transfer of agricultural technol ogies, information and knowledge;  
3) Educational programmes for rural popul ation to improve know ledge relating to 
entrepreneurship and effective use of micro-credits;  
4) Formation of unified data processing system of agro-industrial complex under the 
"e-government" programme.  JOB/ACC/12/Rev.1 
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 (d) Extension and advisory services 
Title of the programme: 
International Bank for Reconstruc tion and Development Project "A gricultural Post-Privatization 
Assistance". 
Duration of the programme:  
The programme has been implemented on a permanent basis. The programme objective:  
To render support to agricultural enterprises unde r the conditions of a 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 July  1998, No. 261-1 "On Ratification of the Loan 
Agreement between the Republic of Kazakhsta n 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is implemented within the framewo rk of the Loan of the International Bank for 
Reconstruction and Development allocated to the G overnment of the Republic of Kazakhstan (ratified 
by the Parliament of the Republic  of Kazakhstan on 2 July 1998).  
The expenditures under this programme meet the cr iteria of paragraph 2 (d) of Annex 2 to the 
Agreement on Agriculture. 
The Project aimed at supporting of newly privatized farms and enterprises in eight oblasts of 
Kazakhstan through the establishment of rural adviso ry centres:  Almaty Oblast, Kostanay, Pavlodar, 
North-Kazakhstan, West-Kazakhstan, East-Kazakhsta n, South-Kazakhstan and the Eastern Oblast.  
This component was aimed at strengthening in formation for agricultural producers on market 
principles, such as shareholder rights, and build lo cal business support infrastructure to deliver advice 
and training on technical and commercial practices.  Expenditures varied according to the needs of agricultural producers in advisory service.  JOB/ACC/12/Rev.1 
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 (d) Extension and advisory services 
Title of the programme: 
International Bank for Reconstruc tion and Development Project "Irrigation and Drainage Systems 
Improvement". 
Duration of the programme:  
The programme was implemented until 2010. The programme objective:  
To improve irrigation and drainage system of agricultural producers. 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 En try into Force of the Loan Agreement on 
No. 4041-KZ between the Republic of Ka zakhstan and the Inte rnational Bank for 
Reconstruction and Development for the "Impr ovement of Irrigation and Drainage Systems" 
Project. 
Programme implementation:  
The programme is implemented within the framework of the Loan allocated to the Government of the 
Republic of Kazakhstan by the International Bank fo r Reconstruction and Deve lopment (ratified by 
the Laws of the Republic of Kazakhstan of 27 Se ptember 1996 No. 36-1 of 2 July 1998 No. 263, of 
2 July 1998 No. 265).  
The measures of this project meet the criteria of  paragraph 2 (d) of Annex 2 to the Agreement on 
Agriculture. 
The "Irrigation and Drainage Systems Improvement" Project consists of two major components – 
consultation and loans.  This section presents the consultancy component. JOB/ACC/12/Rev.1 
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 The project is aimed at rehabilitation of irrigation systems in the southern regions of Kazakhstan: 
- Reconstruction and improvement of irrigati on and drainage systems, taking into account 
ecological rules and requirements;  
- Reconstruction and improvement of the existing irrigation and dr ainage systems, taking into 
account ecological rules and requirements.  JOB/ACC/12/Rev.1 
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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 secu re 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 Novemb er 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 In ternational Bank for Reconstruction and 
Development on Introducing Amendments and Ad ditions in to the Agreement on Providing 
of Loan by the International Bank for Recons truction and Development to the Republic of 
Kazakhstan for Preparation of "Suppor t 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 Asia n Development Bank". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 Allocati on of Grants by the International Bank for 
Reconstruction and Development for Preparati on of the Project "Support for Agricultural 
Services". 
- Resolution of the Government of the Repub lic 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 Re public 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 Competitiveness of Agricultural Production". JOB/ACC/12/Rev.1 
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 Programme implementation:  
The programme is implemented within the framewo rk of the Loan of the International Bank for 
Reconstruction and Development a nd Asian Development Bank allocated to the Government of the 
Republic of Kazakhstan (ratified the Law of the Re public 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. 
The purpose of the World Bank Project is to improve  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 relevan ce 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 knowledge and technology transfer.  
IV. Institutional development and agricultural policy. - Formation of the Supervisory Board (hereina fter - SB) consisting of representatives from 
relevant government agencies, as well as fro m 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 technical experts (including both national and 
international experts) responsible fo r 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 res ponsible for preparation of proposals and 
recommendations for the improvement of ag ricultural competitiveness and delivery of 
training for employees of the Ministry of Agriculture.  JOB/ACC/12/Rev.1 
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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 Febr uary 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 implem entation of the following activities:  
1. Inspection of agricultural crops to recei ve 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 the usage on th e territory of the Republic of Kazakhstan. JOB/ACC/12/Rev.1 
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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 cond itions 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is implemented by financial 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 monito ring 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 we lls and organization of stationary site.  JOB/ACC/12/Rev.1 
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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 paramete rs 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 D ecember 2008, No. 96-IV "On Republican Budget 
for 2009-2011". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic  of Kazakhstan of 23 January 2003, No. 83 
"On Formation of the State Institution "Republican Scientific-Methodological Centre of 
Agrochemical Service of the Ministry of Agriculture of the Republic of Kazakhstan". 
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. 
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 time of beginning of field 
works, seeding and harvesting periods;  
3) analysis of agro-meteorological indicator s in comparison to the previous year; 
4) analysis of snow accumulation in the fields and other;  
5) space monitoring of crops condition and evaluation of agricultural productivity; 
6) preservation and rehabilitation of soil fertility. JOB/ACC/12/Rev.1 
Page 18  
 
 (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 Fe bruary 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 of Evaluation of Sort and Sowing Qualities of Seeds Conducted at the 
Expense of Republican Budget, Including tho se Seeds, Intended for Planting by Domestic 
Agricultural Producers". 
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. 
Pursuant to the Resolution of the Government of the Republic of Kaza khstan No. 805 "On Approval 
of Rules of Evaluation of Sort and Sowing Qu alities of Seeds Conducted at the Expense of 
Republican Budget, Including those Seeds, Inte nded for Planting by Domestic Agricultural 
Producers" of 12 August 2003, evaluation of sort a nd sowing qualities of seeds and planting materials 
is carried out on a compulsory basis for all agri cultural producers, including elite seed producing 
farms, state varietal-testing stations and the stat e resources of seeds.  This service is provided on a 
free-of-charge basis to all agricultural producer s by laboratories conducting seed testing.    JOB/ACC/12/Rev.1 
 Page 19 
 
 
 (g) Infrastructural services 
Title of the programme:  
Infrastructural works associated with environmental programmes. 
Duration of the programme:  
The programme has been implemented since 2001. 
The programme objective:  
To regulate the riverbed of the Syr-Darya river and pr eservation of the Northern part of the Aral Sea.  
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 20 March 2002, No. 307-II "On Ratification of the 
Loan Agreement ("Regulation of the river-bed of the Syr-Darya River and Preservation of the Northern Part of the Aral Sea (Phase 1)" Project) between the Republic of Kazakhstan and the International Bank for Recons truction and Development". 
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repub lic of Kazakhstan of 19 October 2001, No. 1342 
"On Loan Attracting of the International Bank for Reconstruction and Development for 
Funding the "Regulation of the river-bed of the Syr-Darya River and Preservation of the Northern Part of the Aral Sea (Phase 1)" Project. 
Programme implementation:  
The programme is implemented within the framewo rk of the Loan of the International Bank for 
Reconstruction and Development a nd the Asian Development Bank allocated to the Government of 
the Republic of Kazakhstan (ratified by the Pa rliament of the Republic of Kazakhstan on 
20 March 2002, No. 307).   
Programme is consistent with the criteria of pa ragraph 2 (g) of Annex 2 to the Agreement on 
Agriculture. 
Expenditures allocated from the republican budget we re applied for implementation of the following 
measures: 
1) Ensuring the existence of the Northern Ar al Sea (NAS) and improving the Syr-Darya River 
carrying capacity, improvement of ecological situation in the Aral Sea basin and recovery of 
biological species of the river delta.  The above measures will impr ove human and animal 
health; JOB/ACC/12/Rev.1 
Page 20  
 
 2) Maintain and increase production of agricultura l goods (including livestock) and fishery in 
the Syr-Darya River basin.  
The Project consists of the following parts:  - Part А:  Rehabilitation of the Northern Aral Sea by construction of a dam across the strait 
connecting the NAS and the Great Southern Aral Sea. 
- Part В:  Improvement of water management in  the Syr-Darya River through the renovation 
and construction of hydro-technical facilities. 
- Part С:  Chardara Dam Restoration.  Restora tion works on the Chardara Dam, including 
restoration of the Kyzylkum irrigation water intake and outlet, drainage system, spillway 
gates and repair of water spillway facilities, Karaozek spillway basins and related works on 
the dam as well as installation of measuring devices. 
- Part D:  Restoration of water resources and development of fisheries.  JOB/ACC/12/Rev.1 
 Page 21 
 
 
 (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:  
To construct dams, irrigation and drainage systems. 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". 
- Decree of the President of the Republic of Kaza khstan of 9 July 2003, No. 1149 "On the State 
Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
- 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 Prev ention 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 Ru ral 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 s upply facilities and hydro-ameliorative systems".  
Programme implementation:  
The programme is implemented by financia l support 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 capital works 
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 the left ba nk of Akshi irrigation basin in Irgiz Raion.  JOB/ACC/12/Rev.1 
Page 22  
 
 (g) Development of roads in rural areas 
Title of the programme:  
Development of roads in rural areas. 
Duration of the programme:  
The programme was implemented within the period of 2004-2009. 
The programme objective:  
To provide capital works of  roads in rural areas. 
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". 
- Decree of the President of the Republic of Kaza khstan of 9 July 2003, No. 1149 "On the State 
Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
Programme implementation:  
The programme is implemented by financial suppor t from the local budgets.  Measures implemented 
under the programme of rural development correspond to  the criteria of paragraph 2 (g) of Annex 2 to 
the Agreement on Agriculture. 
Repair of rural roads with the purpose to bring t echnical condition of rural automobile roads to the 
level consistent with the technical requirements.  JOB/ACC/12/Rev.1 
 Page 23 
 
 
 PARA 3. CREATION OF PUBLIC STOCKHOLDING FOR FOOD SECURITY 
PURPOSES 
Title of the programme: 
Storage and handling of State reserve of grain for food security purposes. 
Duration of the programme:  
The programme has been implemented on a permanent basis. The programme objective:  
Storage and handling of state reserve of grain 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of Republic  of Kazakhstan of Ja nuary 2006, No. 34 "On 
Approval of Volumes of the State Reserves of Food Grain".  
- Resolution of the Government of the Repub lic of Kazakhstan of 28 March 2001, No. 394 
"On Approval of Rules on Formation, Storage and Utilization of the State Grain Resources". 
Programme implementation:  
Pursuant to Article 11 of the Law No. 143 of  the Republic of Kazakhstan "On Grain" of 
19 January 2001, the Government for the purpose of ensuring food security goals shall procure wheat 
from agricultural producers into the state grain reser ves.  For this purpose, the Government annually 
allocates funding for the procurement of wheat.  Th e Government sets amount of funding based on 
current market price of the product.  Pursuant to the Resolution of the Government of the Republic of 
Kazakhstan No. 34 "On Approval of Volumes of the St ate Reserves of Food Grain" of January 2006, 
the volume of wheat to be procured into the state re serve is fixed and equal to 500,000 metric tonnes. 
The Government annually renews the State food gr ain reserves through its designated agent - the 
"Food Contract Corporation" (hereinafter - the F CC) since 1998.  When settin g the purchase price for 
wheat, the Government takes into account that the price covers the production costs of agricultural 
producers and ensures some minimal level of profitability for further development.  
The programme complies with the criteria of pa ragraph 3 of Annex 2 of the Agreement on 
Agriculture as it forms a basic part of food secu rity programme for the food security purposes 
stipulated in the national legislation.  Furthe rmore, the difference between the purchase price and 
external price was calculated in the Supporting Table DS:5.  JOB/ACC/12/Rev.1 
Page 24  
 
 In general, the expenditures cover storage and mo vement of State reserve of wheat from private 
elevators to the elevators managed by the agent of the Government of the Republic of Kazakhstan 
responsible for the management of public grain resources (Food Contract Corporation).  The State reserve of grain could be used in case of natural disasters, military conflicts and other force majeure  
situations.  JOB/ACC/12/Rev.1 
 Page 25 
 
 
 PARA 8. PAYMENTS (IMPLEMENTED DIRECTLY 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Re public 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 para graph 8 (a)-(e) of Annex 2 of the Agreement on 
Agriculture.  In particular, pursuant to the Government Resolution No. 407 of 28 April 2003 
"On Approval of Regulatory Legal Acts in the Field of Veterinary", based on results of laboratory 
tests, a head of local executive body (Akim) tak es 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 type of disease in cluded into the List of Highly 
Pathogenic/Infectious Diseases approved by the same  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.  JOB/ACC/12/Rev.1 
Page 26  
 
 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.  
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. 
Upon the decision of Commission, the Government compensates 100 per cent of the quantity of 
livestock destroyed.  Maximum compensation amounts are fixed by the Government Resolution No. 407 and vary by animal type, class and age.  Ho wever, the total amount of payments per head of 
destroyed livestock, per kilogram or unit shall not  exceed 50 per cent of market price of livestock or 
product in question.  JOB/ACC/12/Rev.1 
 Page 27 
 
 
 MEASURES EXEMPT FROM THE REDUCTION COMMITMENT:  SPECIAL AND 
DIFFERENTIAL TREATMENT - 'DEVELOPMENT PROGRAMMES' 
(A) INVESTMENT SUBSIDIES Agricultural machinery leasing 
The programme objective:  
To supply agricultural producers with farming mach inery on the basis of 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 financ ial support from the republican budget.  Under this 
programme government provides soft loans to agri cultural producers through the "KazAgroFinance".   
Funding is granted for procurement and subsequent  transfer to financial leasing of technological 
equipment and special agricultural machinery,  including equipments and machinery for: 
- receiving, transportation, storage and prim ary processing of agricultural products, fish 
products and forestry; 
- planting vegetables; - livestock and poultry farms mechanization; - foodstuffs conservation.  
Also, the loans were provided for: 
- procurement and subsequent transfer to leasi ng of grain harvesters, irrigation machinery and 
agricultural equipment, including tractors, tr ailers, cultivation machines, harvesting and crop 
protection; 
- compensation of expenses directly related to  the procurement and supply of equipment and 
agricultural machinery. JOB/ACC/12/Rev.1 
Page 28  
 
 The subsidy was calculated as a difference between the interest rate of commercial banks and the 
interest rate of the soft loan under the financia l leasing programme.  The difference was accounted 
each year of the loan use.  The maximum peri od of the financial leasing for each machinery is 
seven years.  The interest rate varies from 6 per cent to 12 per cent.    JOB/ACC/12/Rev.1 
 Page 29 
 
 
 (B) INPUT SUBSIDIES GENERALLY AVAILABLE TO LOW-INCOME OR 
RESOURCE-POOR PRODUCERS 
Subsidies to reduce the cost of mineral fertilizers, seed disinfectants and herbicides applied by 
agricultural producers 
The programme objective: 
To improve productivity of agricultural pl ants 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 Ju ly 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 Fe bruary 2003, No. 385 "On Seed Breeding". 
- Law of the Republic of Kazakhstan of 4 D ecember 2008, No. 96-IV "On Republican Budget 
for 2009-2011". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014. 
- Resolution of the Government of the Repub lic 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 reimbu rsement of the cost (40 per cent) of mineral 
fertilizers, seed disinfectants and herbicid es purchased by domestic agricultural producers. 
Subsidies are paid within the reference limits es tablished by the Ministry of Agriculture of the 
Republic of Kazakhstan for each type of fer tilizers, seed disinfectants and herbicides. 
The programme is implemented by direct fi nancial support from republican and local budgets. JOB/ACC/12/Rev.1 
Page 30  
 
 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic  of Kazakhstan of 25 January 2001, No. 137 
"On Issues of Agrarian Sector Crediting". 
Programme implementation:  
About 47 per cent of Kazakhstan's population lives in ru ral areas. According to official statistics about 
one fifth of rural population has income below subsis tence 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 Agriculture" (hereinafter - the Fund).  The large share of credits allocated to the agricultural producers is i nvolved in the livestock production, particularly in 
cattle and seeds procurement.  
Conditions of the micro-crediting programme th rough affiliates and branches of the Fund are 
convenient for rural population. Micro-credits ar e given for the period of up to two years at 
9.5 per cent annual rate of interest.  
The subsidy is calculated as a difference between the interest rate of commercial banks and the 
preferential interest rate of the loans.  The difference was accounted each year of a loan use.   JOB/ACC/12/Rev.1 
 Page 31 
 
 
 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 Fe bruary 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". 
- Resolution of the Government of the Republic  of Kazakhstan of 25 January 2001, No. 137 
"On Issues of Agrarian Sector Crediting". 
- Resolution of the Government of the Re public 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 Ru ral 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 financ ial support from the republican budget.  Under this 
programme government provides soft loans to agri cultural producers through the "Food Contract 
Corporation".  
Soft loans were provided for spring-field and ha rvesting works. Interest rates ranges between 
8 per cent and 11 per cent for the period of one y ear.  The subsidy is calculated as a difference 
between the interest rate of comme rcial banks and the preferential interest rate of the loan for spring 
field and harvesting works.  JOB/ACC/12/Rev.1 
Page 32  
 
 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014. 
- Protocol from the extended session of the Wo rking 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 Wo rking 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 Wo rking 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 aims 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) under the agreement of the re fineries with 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 as a difference between market price and the fixed price multiplied by the 
volume of oil products delivery. 
The programme has been implemented by di rect support from the republican budget.  JOB/ACC/12/Rev.1 
 Page 33 
 
 
 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 basi s.  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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 s ubsidies are provided to agricultural producers for 
the partial compensation of costs related to purchase of diesel used in cultivation of crops and conduct 
of spring-fields and harvesting works.   
Payment of subsidies to agricultural producers is pe rformed once a year for the amount of diesel cost 
within the reference limits approved by the Ministry  of Agriculture of the Republic of Kazakhstan.  
The limits are established according to the standard consumption of diesel fuel per hectare, in compliance with technological maps. 
The purpose of the payment of subsidies to agricultu ral producers is to conduct agricultural operations 
to obtain agricultural products of a current year. 
The programme has been implemented by di rect support from the republican budget. JOB/ACC/12/Rev.1 
Page 34  
 
 Subsidies to reduce the cost of water delivery services 
The programme objective:  
To reduce the cost of irrigation water supply to agricultural producers. 
Duration of the programme:   
The programme has been implemented since 2003.  Since 2011 the program 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repub lic 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 reimbur sement 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 the water use reference limits.  
The subsidies per cubic meter of delivered water ar e calculated as 40 per cent of the tariffs charged 
for water delivery services.  These tariffs are appr oved by the authorized state body responsible for 
regulation of natural monopolies. 
The programme is implemented by direct fi nancial support from the republican budget.   JOB/ACC/12/Rev.1 
 Page 35 
 
 
 Partial compensation of feedstuffs cost 
The Programme objective:  
To increase productivity and qualit y 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 Ju ly 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Local budget:  Decisions of Regional  Maslikhats (Local executive bodies). 
The programme - 10/1/255/013/015. Programme implementation: 
The programme aims at partial reduction of the price (up to 45 per cent) of combined feedstuffs used 
to feed cattle, pigs and birds in order to stimul ate production and sale of beef, pork and poultry and 
improve animal productivity, quality and co mpetitiveness of produced livestock products. 
Subsidies are paid to domestic agricultural prod ucers specialised in production of beef, pork and 
poultry meat  to reduce the price of combined feed stuffs according to the actual volume of sales of 
bovine meat, pork and poultry meat in the slaughter weight. 
The price reduction subsidy rates per: - 1 kilogram of combined feedstuffs;  
- Feed use limits per kilogram of product; and  - per kilogram of products sold 
are established by the Ministry of Agriculture of the Republic of Kazakhstan. JOB/ACC/12/Rev.1 
Page 36  
 
 The table below shows the price reduction rates pe r kg of combined feedstuffs used in livestock 
production.  
Product name Price reduction kg of co mbined feedstuffs, tenge 
(max 45% of the cost) 
Combined feedstuffs 18 
The rate of combined feedstuffs consump tion used in production of 1kg of poultry. 
Product type Feed use limit used in production of 1kg of poultry, kg 
Poultry 2.61 
The rate of subsidy per 1 kg of sold po ultry of own production in slaughter weight. 
Product type Subsidy rate per 1 kg of sold poultry of own production in 
slaughter weight, tenge 
Poultry 47 
The programme is implemented by direct financia l support from the republican and local budgets.    JOB/ACC/12/Rev.1 
 Page 37 
 
 
 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 Ju ly 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repub lic 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 subsidies are applied for partial (by 50 per cent) price reduction of the breeding products 
sold to domestic agricultural producers products, in particular, such products as: 
- young pedigree livestock;   
- breeding eggs; - semen doses.  
2. Also subsidies are granted for full recovery of costs on: 
- purchase and maintenance of breeding bulls; 
- purchase, storage and the use of breeding bull semen and embryos; - purchase of young birds for breeding; 
- purchase and maintenance of stud-rams in the breeding centres; 
- purchase of combined feedstuffs for birds in the poultry breeding farms; 
- purchase of special laboratory equipments a nd special agro-technologies for the breeding 
business development; 
- purchase, maintenance and training of breeding stallions; 
- purchase and storage of breeding stallions semen in the breeding factory. 
The programme is implemented by direct financia l support from the republican and local budgets.   JOB/ACC/12/Rev.1 
Page 38  
 
 Support for seed breeding 
The programme objective:  
To reduce the price of elite varie ties 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 Fe bruary 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Local budget: Decisions of Regional  Maslikhats (Local executive bodies). 
Programme - 10/1/105/006 "S upport for seed breeding". 
Programme implementation:  
1. Subsidies are granted to reduce production cost s (up to 40 per cent) of patent seeds, seedlings 
of fruit trees and establishment a queen cell of small wildings. 
2. Subsidies are also applied to reduce the cost ( up to 40 per cent) of elite seeds sold to domestic 
agricultural producers.  JOB/ACC/12/Rev.1 
 Page 39 
 
 
 Soft loans for agricultural producers - small businesses 
The programme objective:  
To ensure support to agricultural prod ucers 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Repub lic 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 1990th 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 purpose 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 "F und for small business development".  Soft loans 
are distributed for: 
- introduction and operation of a new t echnology in agriculture production; 
- purchase of such inputs as tractors, agricultural m achines, fuel and lubricant materials, seeds, 
fertilizers, herbicides, pesticides, vete rinary 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 per cent annual interest rate.  The nor mal loans are given for a period of 5-7 years at 
interest rates from 7 to 14.5 per cent.  The subsidy is calculated as a difference between the interest 
rate of commercial banks and the preferential inter est rate of the loan.  The difference was accounted 
for every year of loan use.  JOB/ACC/12/Rev.1 
Page 40  
 
 Soft loans from local budgets for resource poor agricultural producers 
The programme objective:  
To ensure support to agricultural prod ucers 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 floa ting assets.  The loans are distributed by local 
administrations out of local budgets.  Agricultura l 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 per cent.  The subsidy is 
calculated as a difference between the interest rate of commercial banks and the preferential interest 
rate of the loan.  The difference was accounted for every year of loan use.   JOB/ACC/12/Rev.1 
 Page 41 
 
 
 AMBER BOX 
PROCUREMENT OF WHEAT INTO THE STATE RESERVE 
The programme objective:  
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 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic  of Kazakhstan of 24 February 1997, No. 260 
"On Reorganization of State Food Contract Corporation". 
- 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". 
- Resolution of the Government of the Republic of Kazakhstan of 27 December 2007, No. 1301 
"On Approval of State Procurement Rules". 
Programme implementation:  
Annually, the Government of the Republic  of Kazakhstan allocates budget funds for 
procurement/renewal of the state grain reserves.  St ate grain reserves are formed with the purpose of 
preserving the safety of state grain resources, thus ensuring Kazakhstan's food security. 
The "Food Contract Corporation" (hereinafter - the FCC) carries out such purchases on behalf of the 
Government of the Republic of Kazakhstan as an ope rator responsible for management of state grain 
reserves.  State grain reserves are under the st ate (republican) ownership.  Therefore, grain 
procurement procedure is carried out by FCC in  accordance with procedures, volume and funding 
established by the Government of  the Republic of Kazakhstan. 
Pursuant to the procurement rules the grain for th e state reserve is purchased directly from domestic 
farmers.  JOB/ACC/12/Rev.1 
Page 42  
 
 PROCUREMENT OF CROPS TO SUPPORT AGRICULTURAL PRODUCERS 
The programme objective:  
To support domestic agricultural producers thr ough procurement of crops (barley and raw cotton). 
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  19 January 2001, No. 143 "On Grain". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic  of Kazakhstan of 24 February 1997, No. 260 
"On Reorganization of State Food Contract Corporation". 
- Resolution of the Government of the Repub lic of Kazakhstan of 7 July 2006, No. 645 
"On Certain Issues of Support of the Agro-In dustrial Complex with Participation of 
Specialized Organizations". 
- Resolution of the Government of the Re public of Kazakhstan of 19 November 2007, 
No. 1106 "On Approval of the List of Speciali zed Organizations (Agents), which Purchase 
Agricultural Products from Domestic Producer s and Services for Storing, Processing and 
Transporting the Products". 
Programme implementation:  
The Government of the Republic of Kazakhs tan allocates budget funds to "Food Contract 
Corporation" for support of domestic agricultura l producers by purchasing crops directly from 
farmers.   
According to the Resolution of the Government of the Republic of Kazakhstan of 7 July 2006, 
No. 645 "On Certain Issues of Support of the Agro-industrial Complex with Involvement of 
Specialized Organizations" the "Food Contract Corpor ation" is an agent of the Government of the 
Republic of Kazakhstan on intervention purchases and sales.    JOB/ACC/12/Rev.1 
 Page 43 
 
 
 PROCUREMENT OF LIVESTOCK PRODUCTS TO SUPPORT DOMESTIC 
AGRICULTURAL PRODUCERS 
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 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic  of Kazakhstan of 8 September 2001, No. 1168 
"On Formation of Joint Stock Company "Mal Onimderi Korporatsiyasy". 
- Resolution of the Government of the Repub lic of Kazakhstan of 7 July 2006, No. 645 
"On Certain Issues of Support of the Agro-In dustrial Complex with Participation of 
Specialized Organizations". 
Programme implementation:  
The Government of the Republic of Kazakhs tan allocates budget funds to support domestic 
agricultural producers by purchasing livestock products directly from farmers.  
According to the Resolution of the Government of the Republic of Kazakhstan of 7 July 2006, No. 45 
"On Certain issues of support of the agro-industr ial complex with involvement of specialized 
organizations" the JSC "KazAgroProduct" (former  - "Mal Onimderi Korporatsiyasy") carries out 
purchases of livestock products on behalf of the G overnment of the Republic of Kazakhstan to 
support farmers. JOB/ACC/12/Rev.1 
Page 44  
 
 COMPENSATION 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
According to the Law "On Cotton Industry Deve lopment", cotton producers are required to conduct 
assessment of cotton fibre quality on a compulsory b asis.  Quality assessment is conducted by expert 
organization, which is appointed by the government  in accordance with the qualification requirements 
set out by Article 6 of the Law.  Under this programme government compensates the full cost of 
services rendered to cotton producers by expert organization.    JOB/ACC/12/Rev.1 
 Page 45 
 
 
  
PARTIAL COMPENSATION OF INSURANCE PAYMENTS 
The programme objective:  
To compensate insurance paymen ts 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Law of the Republic of Kazakhstan of 10 Ma rch 2004, No. 533-II "On Compulsory Insurance 
of Plant Cultivation". 
- Resolution of the Government of the Repub lic of Kazakhstan of 4 April 2007, No. 270 
"On Approval of Criteria and Characteris tics for Defining Unfavourable Natural 
Phenomenon" 
Programme implementation:  
Crop insurance programme protects agricultural pr oducers against losses from natural disasters.  
It provides for partial compensation of insurance payments made by the insurer.  The programme 
subsidizes up to 50 per cent of insurance payments  made by insurance companies to the insured 
persons, i.e. agricultural producers.  The progra mme is implemented by direct support from the 
republican budget. 
Eligibility for such payments occurs only when th e state authorities confirm the fact that adverse 
natural phenomena have taken place.  This fact is established by the Committee, formed at the request 
of an insured party by local executive body.  The committee includes representatives of the local 
executive body, authorized state bodies in the sphere of crop production, administration of land 
resources, the agent, the insurer and the insured pe rson.  The final act is drawn by the committee 
presenting the results of a survey. 
According to the Law of the Republic of Kaza khstan of 10 March 2004, No. 533 "On Compulsory 
Insurance of Crops" these payments are applied for crop damage or destruction as a result of adverse 
natural phenomena, after which the insured person bore losses. 
The insurance coverage is determined by the c ontract signed between the insuring company and the 
insured person on each type of crop according to standard expenses per hectare, multiplied by the JOB/ACC/12/Rev.1 
Page 46  
 
 whole area, on which the insured person bears expen ses for growing crops.  Calculation of insurance 
sum is made on the basis of costs according to the following schemes: 
1. Scientifically justified agro technology; 2. Simplified agro technology; 3. On three types of costs based on scientifica lly justified or simplified agro technology: 
 - fuel and lubricants; 
 - seeds;  - salaries.  JOB/ACC/12/Rev.1 
 Page 47 
 
 
 SUBSIDIZING SYSTEMS OF AGRICU LTURAL 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
- Resolution of the Government of the Republic  of Kazakhstan of 14 March 2006, No. 156 "On 
Approval of the Rules on Subsidizing System s of Agricultural Production Management". 
Programme implementation:  
Under this programme the Government assist la rge agricultural producers by offering subsidies  of up 
to 50 per cent of the certification costs.  In par ticular, the rendered state support is directed to 
sustainable development of the agribusiness sect ors, growth of competitiveness and bringing 
agricultural production into conformity with internati onal standards, via partial subsidizing of costs of 
large agricultural producers, selected by contest, fo r introduction of quality management system on 
the basis of international ISO standa rds and HASSP into their productions. 
 JOB/ACC/12/Rev.1 
Page 48  
 
 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
The programme is aimed at financing capital works and reconstruction of damaged parts of inter-farm 
channels and irrigation facilities owned by agri cultural production coope ratives of water users 
(collective ownership).  The progr amme is implemented by direct support from the republican budget.  JOB/ACC/12/Rev.1 
 Page 49 
 
 
 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
The government provides soft loans to agricult ural producers through the "KazAgroFinance".  
The aim of this programme is to organize infrastru cture for servicing of agricultural production.  
Funding is granted for machinery-technological stations (service centres) for a period of seven years at the 2 per cent interest rate.  
The subsidy margin was calculated as a difference be tween the interest rate of commercial banks and 
the interest rate of the soft loan under the this programme.  The difference was accounted each year of 
the loan use.  JOB/ACC/12/Rev.1 
Page 50  
 
 SOFT LOANS WITHIN THE ASIAN BANK  FOR DEVELOPMENT PROJECT "WATER 
RESOURCES MANAGEMENT AND 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 Ka zakhstan 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation:  
The "Management of Water Resources and Rehabil itation of Lands" Project consists of two major 
components – consultation and loans.  This section presents the loan component. 
The programme is being implemented within the frame work of the Loan allocat ed to the Government 
of the Republic of Kazakhstan by the Asian Deve lopment Bank for (ratified by the Laws of the 
Republic of Kazakhstan of 27 Sept ember 1996, No. 36-1 of 2 July 1998 No. 263, of 2 July 1998 
No. 265).  Agreements on repayment and loan were  signed between the Ministry of Finance and 
farmers with the participation of the Mini stry of Agriculture and the agent-Bank.  
Soft loans were granted to agricultural producers fo r a period of 27 years.  The subsidy margin is 
calculated as a difference between the interest rate of commercial banks and the interest rate of the 
soft loan (LIBOR rate).  The difference w as accounted for every year of loan use.  JOB/ACC/12/Rev.1 
 Page 51 
 
 
 SOFT LOANS WITHIN THE INTERNATIONAL BANK FOR RECONSTRUCTION AND 
DEVELOPMENT PROJECT "IRRIGATION A ND DRAINAGE SYSTEMS IMPROVEMENT 
The programme objective:  
To improve irrigation and drainage system of agricultural producers. 
Duration of the programme:  
The programme has been implemented till 2008. 
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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 "Impr ovement of Irrigation and Drainage Systems" 
Project.  
- The Resolution of the Government of the Re public of Kazakhstan of 2 August 2005, No. 804 
"On Signing the Letter Agreement between the Republic of Kazakhstan and the International 
Bank for Reconstruction and Deve lopment on Allocation of a Grant for Preparation of the 
Second Phase of the "Improvement of Irrigation and Drainage Systems" Project. 
Programme implementation:  
The "Irrigation and Drainage Systems Improvement" Project consists of two major components – 
consultation and loan.  This section presents the loan component. 
The programme is implemented within the framework of the Loan allocated to the Government of the 
Republic of Kazakhstan by the International Bank fo r Reconstruction and Deve lopment (ratified by 
the Laws of the Republic of Kazakhstan of 27 Sept ember 1996 No. 36-,1 of 2 July 1998 No. 263, of 
2 July 1998 No. 265).  
Agreements on repayment and loan were signed between the Ministry  of Finance and farmers with 
participation of the Ministry of Agriculture and the agent-Bank.  JOB/ACC/12/Rev.1 
Page 52  
 
 The interest rate was adopted at 6.5 per cent.  Soft  loans were granted to agricultural producers for a 
period of 30 years.  
The subsidy margin was calculated as a difference be tween the interest rate of commercial banks and 
the interest rate of the soft loan.  The di fference was accounted each year of loan use.  JOB/ACC/12/Rev.1 
 Page 53 
 
 
 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:  
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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral 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 Agricultural under the Ministry of Agriculture of the Republic of Kazakhstan". 
- Resolution of the Government of the Republic of Kazakhstan of 14 December 1995, No. 1719 
"On Transfer of Debts on Centralized and Direc tive Credits to the Fund for Financial Support 
of Agriculture". 
- Resolution of the Government of the Re public of Kazakhstan of  17 September 1996, 
No. 1130 "On Regulation of Certain Financial Obligations in the Agricultural and Energy 
Complexes of the Republic of Kazakhstan". 
- Resolution of the Government of the Repub lic 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 of Fi nancial Support of Agriculture". 
- Resolution of the Government of the Republic  of Kazakhstan of 1 September 2010, No. 865 
"On Termination of Claims of the Governme nt of the Republic of Kazakhstan Against 
Borrowers Liquidated in Accordance with the Le gislation 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 Decree of the President of the Republic of Kazakhstan a nd Certain Legislative 
Acts of the Government of the Republic of Kazakhstan". 
- Law of the Republic of Kazakhstan of 2 Apri l 2010 No. 261 "On Enforcement Procedures 
and Status of Enforcement Officials". 
Programme implementation: 
Within the framework of this programme governme nt 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 implemente d on the basis of a Government decision.  
The authorized body wrote off the accumulated de bts in the amount specified by the Government 
Resolutions.  "Zero" in the table means that Government  did not take a decision to write off the debts.   JOB/ACC/12/Rev.1 
Page 54  
 
 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". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014. 
- Decree of the Cabinet of Ministers of the Republic 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 Republic of Kazakhstan of 14 December 1995, No. 1719 
"On Transfer of Debts on Centralized and Direc tive Credits to the Fund for Financial Support 
of Agriculture". 
- Resolution of the Government of the Repub lic 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 Republic 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 Republic  of Kazakhstan of 1 September 2010, No. 865 
"On Termination of Claims of the Governme nt of the Republic of Kazakhstan Against 
Borrowers Liquidated in Accordance with the Le gislation 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 Decree of the President of the Republic of Kazakhstan a nd Certain Legislative 
Acts of the Government of the Republic of Kazakhstan". 
- Law of the Republic of Kazakhstan of 2 Apri l 2010 No. 261 "On Enforcement Procedures 
and Status of Enforcement Officials". 
Programme implementation: 
In 1994 the Government provided loans to agricu ltural producers, the repayment period of which 
began on 1 March 1995.  
Starting from 1995 agricultural producers stopped paying 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 Fina ncial 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 revenue forgone were 
taken into account.  The Government revenue for gone was calculated as value of accumulated debt 
including accumulated interest rates, fines and pena lties multiplied by annual average interest rate of 
the commercial banks.  The calculations do no t include written off debts mentioned above.  JOB/ACC/12/Rev.1 
 Page 55 
 
 
 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 Re public of Kazakhstan of  17 September 1996, 
No. 1130 "On Regulation of Certain Financial Ob ligations in the Agricultural and Energetic 
Complexes of the Republic of Kazakhstan". 
Programme implementation:  
In 1994 the Government provided loans to agricu ltural producers, the repayment period of which 
began on 1 of March 1995.  
Starting from 1995 agricultural producers stopped paying pr incipals 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 Suppor t of Agriculture" as an agen t of the Government has 
the right to claim overdue debts of agri cultural producers under this programme.  
For the purposes of subsidy calculation only losses in  values of Government revenue forgone were 
taken into account.  The Government revenue for gone was calculated as value of accumulated debt 
including accumulated interest rates, fines and pena lties multiplied by annual average interest rate of 
the commercial banks.  The calculations do no t include written off debts mentioned above. JOB/ACC/12/Rev.1 
Page 56  
 
 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".  
- Law of the Republic of Kazakhstan of 4 December 2008, No. 96-IV  "On Republican Budget 
for 2009-2011". 
- Decree of the President of the Republic of Kaza khstan 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 Ru ral Areas Development in the Republic of 
Kazakhstan for 2010-2014". 
Programme implementation: 
Under this programme government provides soft loan s to agricultural producers through the Agent of 
the Government of the Republic of Kazakhstan - "A grarian Credit Corporation". Funding is provided 
from of the republican budget. 
Loans were granted to agricultural producers thro ugh the network of rural credit cooperatives.  
The loans were given for a period of 1 to 7 years at the interest rates from 4 per cent to 12 per cent.  
The subsidy margin is calculated as a difference be tween the interest rate of commercial banks and 
the interest rate of the soft loan.  The differ ence was accounted for every year of loan use.   
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