10-6145 JOB/ACC/12 17 November 2010  
 
Working Party on the 
Accession of Kazakhstan    
WORKING PARTY ON THE ACCESSION OF KAZAKHSTAN 
 
Consolidated Document on Domestic Support Programmes of the Republic of Kazakhstan
 
   The following submission, dated 5 November 2010, is being circulated at the request of the 
Delegation of the Republic of Kazakhstan. 
  
_______________  JOB/ACC/12 
 Page i 
 
 
  TABLE OF CONTENTS 
 
GREEN BOX...................................................................................................................... ....................1  
 PARA 2.  GENERAL SERVICES...........................................................................................1  
 PARA 3.  CREATION OF PUBLIC STOCKHOLDING FOR FOOD 
SECURITY P URPOSES........................................................................................................32  
 PARA 8.  PAYMENTS (IMPLEMENTED DIRECTLY OR BY FINANCIAL 
PARTICIPATION OF THE GOVERNMENT IN THE CROP INSURANCE PROGRAMMES) FOR RELIEF FROM NATURAL DISASTERS .................................34
 
MEASURES EXEMPT FROM THE REDUCTION COMMITMENT:  SPECIAL AND 
DIFFERENTIAL TREATMENT - "D EVELOPMENT PROGRAMMES".................................35  
 (A) INVESTMENT SUBSIDIES ...........................................................................................35  
 (B) INPUT SUBSIDIES GENERALLY AVAILABLE TO LOW-INCOME OR 
RESOURCE-POOR PRODUCERS......................................................................................39  
AMBER BOX...................................................................................................................... .................59  
 PROCUREMENT OF WHEAT FO R THE STATE RESERVE .......................................59  
 PROCUREMENT OF CROPS TO SUPPORT AGRICULTURAL 
PRODUCERS...................................................................................................................... ....61  
 PROCUREMENT OF LIVESTOCK PRODUCTS TO SUPPORT DOMESTIC 
AGRICULTURAL PRODUCERS........................................................................................63  
 PARTIAL COMPENSATION OF INSURANCE PAYMENTS........................................65  
 CAPITAL WORKS AND RECONSTRUCTION OF DAMAGED PARTS OF 
INTER-FARM CHANNELS AND IR RIGATION FACILITIES......................................67  
 SOFT LOANS FOR INSTIT UTIONAL DEVELOPMENT OF 
AGRICULTURAL SECTOR ................................................................................................69  
 SOFT LOANS WITHIN THE ASIAN BANK FOR DEVELOPMENT 
PROJECT........................................................................................................................ ........71  
 SOFT LOANS WITHIN THE INTERNATIONAL BANK FOR 
RECONSTRUCTION AND DEVELOPMENT PROJECT...............................................73  
 DEBT WRITING OFF...........................................................................................................75  
 DEBT WRITING OFF...........................................................................................................76  
 REVENUE FORGONE ON  OVERDUE DEBTS................................................................78  
 REVENUE FORGONE ON  OVERDUE DEBTS................................................................79  
 SOFT LOANS TO AGRICULTURAL PRODUCERS THROUGH A 
NETWORK OF RURAL CREDIT COOPERATIVES ......................................................80  
 REVENUE FORGONE DUE TO DECREASING COEFFICIENTS FOR 
TRANSPORTATION OF AGRICULTURAL CARGOES BY RAILWAY.....................81  
 SPONSORING COSTS OF BA NKRUPTCY PROCEDURES..........................................82   JOB/ACC/12 
 Page 1 
 
 
 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. 
Background and authority of the programme:  
Republican budget:   
− Law of the Republic of Kazakhstan of 9 July 2001, No. 225 "On Science".  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 31 March 2003, No. 1051 
"On Reorganization of the Republican State Ente rprise "National Academy of Science of the 
Republic of Kazakhstan". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept of Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Program for 2007 (Ministry of 
Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the JOB/ACC/12 
Page 2  
 
 Concept of Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of Repub lican Budget Programs for 2008 (Ministry of 
Agriculture of the Republic of Kazakhstan)". 
Programme implementation:
  
The programme is implemented by direct financ ial support from the republican budget.  The above 
expenditures are entirely 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 protecti on and research of particular fetuses. 
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;  
(ii)  Funding of applied sciences in the fiel d 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 
 Page 3 
 
 
 (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 progr amme is funded from the republican budget only.  
The programme objective:   
To maintain favourable phytosanitary condition of agricultural farming lands. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 3 Ju ly 2002, No. 331 "On Plants Protection". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 10 December 2002, No. 1295 
"On Approval of Lists of Quarantine Obj ects and Extremely Dangerous Pestilential 
Organisms".  
− Resolution of the Government of the Repub lic of Kazakhstan of 1 August 2003, No. 773 
"On Approval of Rules for Protection of the Te rritory of the Republic of Kazakhstan from 
Quarantine Objects".  
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Program for 2006".  
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept of Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Program for 2007 (Ministry of 
Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Repub lic of Kazakhstan of 12 December 2007, N о. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of Re publican Budget Program for 2008 (Ministry of 
Agriculture of the Republic of Kazakhstan)". JOB/ACC/12 
Page 4  
 
 Programme implementation:
  
The above expenditures are entirely consistent with the criteria of paragraph 2 (b) of Annex 2 to the 
Agreement on Agriculture. 
The programme covers measures in the following fields: 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 
 Page 5 
 
 
 (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. 
Background and authority of the programme:  
Republican budget:  
− Law of the Republic of Kazakhstan of 10  July 2002, No. 339 "On Veterinary".  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kaza khstan of 9 July 2003, No. 1149 "On the State 
Program of Rural Areas Development of th e Republic of Kazakhstan for 2004-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept of Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Program for 2006".  
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept of Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Program for 2007 (Ministry of 
Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Program for 2008 (Ministry of 
Agriculture of the Republic of Kazakhstan)". JOB/ACC/12 
Page 6  
 
 Local budget:  
Decisions of Regional  Maslikhats (Local executive bodies). 
The programme - 10/1/257/030, 10/9/450/107 "Support ve terinary services in r ealizing 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 entirely consistent with the criteria of paragraph 2 (b) of Annex 2 to the 
Agreement on Agriculture. 
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 medicines; 3) Activities for protection of  animals a nd birds from brucellosis and tuberculosis; 
4) Preventing the spread and diagnosis of animal and bird diseases; 5) Measures for localization and liquidation of outbreak focus of hi ghly hazardous diseases.  JOB/ACC/12 
 Page 7 
 
 
 (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 empl oyees in the sphere of professional activity. 
Background and authority of the programme:  
Republican budget:  
− Law of the Republic of Kazakhstan of 23  July 1999, No. 453 "On State Service". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 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 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of the Re publican Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (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". JOB/ACC/12 
Page 8  
 
 Programme implementation:
  
The programme is implemented by direct fi nancial support from republican and local budgets. 
Expenditures meet the criteria of paragraph 2 (c) of Annex 2 to Agreement on Agriculture. 
Under this programme the Ministry of Agricultu re allocated funds for conducting of training to 
improve professional skills of government officials - employees of the Ministry of Agriculture and 
local executive author ities in agriculture.  JOB/ACC/12 
 Page 9 
 
 
 (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. Background and authority of the programme: 
 
Republican budget:  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 11 January 2007, 217 "On Informatization". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 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". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Program for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Program for 2007 (Ministry of 
Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic  of Kazakhstan of 12 December 2007, No 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of Re publican Budget Program for 2008 (Ministry of 
Agriculture of the Republic of Kazakhstan)". JOB/ACC/12 
Page 10  
 
 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 pa ragraph 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, in formation 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, specialized training, fairs and exhibitions.  
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 expands the scope of its servi ces, which are implemented together with the 
regional branches, including the following: 
1)  Free access to information for agricultural producers;  
2)  Transfer of agricultural tec hnologies, 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 
 Page 11 
 
 
 (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. 
Background and authority of the programme:  
Republican budget:  
− Law of the Republic of Kazakhstan of 2 July  1998, No. 261 "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 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic  of Kazakhstan of 15 December 2006, No 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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).  JOB/ACC/12 
Page 12  
 
 The expenditures under this programme meet the cr iteria of paragraph 2 (d) of Annex 2 to the 
Agreement on Agriculture. 
In general, within the framework of this proj ect eight consulting companies were appointed.  
These companies provide training workshops to ag ricultural producers on topical issues of economy 
and technology in eight oblasts:  Almaty Ob last, Kostanay, Pavlodar, North-Kazakhstan, 
West-Kazakhstan, East-Kazakhstan, South-Kazakhstan and the Eastern Oblast.  
Over 111 training workshops were held, covering more  than 2,500 agriculture entrepreneurs, which 
resulted in a creation of basic private consultation network.   JOB/ACC/12 
 Page 13 
 
 
 (d) Extension and advisory services 
Title of the programme:  
Asian Bank for Development Project "Water Resources Management a nd Land Rehabilitation". 
Duration of the programme:   
The programme was implemented till 2008. 
The programme objective:   
To rehabilitate the fertility of degraded arable lands. Background and authority of the programme: 
 
Republican budget: 
− Law of the Republic of Kazakhstan of 2 July  1998 "On Ratification of Loan Agreement 
No. 1592/1593 (SF) - КАZ ("Management of Water Resour ces and Rehabilitation of Lands" 
Project) between the Republic of Kazakhs tan and the Asian Development Bank of 
25 March 1998". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
Programme implementation:   
The programme is implemented within the framework of the Loan allocated to the Government of the 
Republic of Kazakhstan by the As ian Development Bank (ratified by the Laws of the Republic of 
Kazakhstan of 27 September 1996, No. 36-1 of 2 July 1998 No. 263, of 2 July 1998 No. 265).  
The expenditures meet the criteria of paragraph 2 (d) of Annex 2 to the Agreement on Agriculture. JOB/ACC/12 
Page 14  
 
 The "Water Resources Management and Land Re habilitation" Project consists of two major 
components – consultation and loans. This section presents the consultancy component. 
The project is implemented on the territory of  Mahtaaral Region of South Kazakhstan Oblast. 
The Asian Development Bank is responsible for gi ving loans to producers and the Ministry of 
Agriculture for implementation of the project. 
The Project was aimed at fertility restoration of degraded arable land and achievement of high 
harvests, in particular, raising productivity of cotto n from 14 to 28 metric centners per hectare, corn – 
from 31 to 53 metric centners per h ectare, and other agricultural crops.  
Furthermore, the aim of this project is to support the privatization policy of the Government of the 
Republic of Kazakhstan in agriculture through transf er of management of renewed irrigation systems 
to agricultural producers. 
The project is implemented through consultations  and enquiry services, which allow agricultural 
entrepreneurs to undertake necessa ry changes while restructuring the organizational structure and 
privatized assets.   JOB/ACC/12 
 Page 15 
 
 
 (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 2008. 
The programme objective:   
To improve irrigation and drainage system of agricultural producers. Background and authority of the programme: 
 
Republican budget: 
− Law of the Republic of Kazakhstan of 27 Se ptember 1996 "On Ratification of the Loan 
Agreement ("Improvement of irrigation and drai nage systems" Project) between the Republic 
of Kazakhstan and the Inte rnational Bank for Reconstr uction and Development of 
25 June 1996".  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 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. 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of Repub lican Budget Programs for 2008 (Ministry of 
Agriculture of the Republic of Kazakhstan)". JOB/ACC/12 
Page 16  
 
 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. 
The project is implemented through rehabilitation of  irrigation systems in the southern regions of 
Kazakhstan: 
− Reconstruction and improvement of irrigation and drainage systems, taking into account 
ecological rules and requirements;  
− Reconstruction and improvement of  the existing irrigation and dr ainage systems, taking into 
account ecological rules and requirements.  JOB/ACC/12 
 Page 17 
 
 
 (d) Extension and advisory services;  (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. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 5 N ovember 2003, No. 491 "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 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 5 July 2006 "On Ratification of the Loan Agreement 
between the Republic of Kazakhs tan, International Bank for Re construction and Development 
and Asian Development Bank". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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". 
− the Resolution of the Government of the Republic of Kazakhstan of 6 September 2001 
No. 1157 "On Approval of Agreement about the Allocation of Grants by the International 
Bank for Reconstruction and De velopment for Preparation 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". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  JOB/ACC/12 
Page 18  
 
 − Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 paragra ph 2 (d) and (f) of Annex 2 to the Agreement on 
Agriculture. 
The purpose of the World Bank Project is to improve  the competitiveness of the agricultural sector by 
providing access to market and knowledge through: 
− improvement of quality and safety of agricultural products; 
− improvement of market efficiency; 
− improvement of quality, quantity and relevance of public and private investments into the 
applied agricultural research and knowledge transfer.   
The Project consists of the following components:  
I. Quality and safety of agricultural products 
− Establishment of a group of experts to ha rmonize 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 market development. 
− Strengthening the agricultural marketing information system. 
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 (herei nafter - SB) consisting of representatives 
from relevant government agencies, as we ll as from the private sector and the 
agricultural associations.  SB is responsib le for the Project development process;  JOB/ACC/12 
 Page 19 
 
 
 − Establishment of a coordination centre for project management; 
− Establishment of an independent group of technical experts (including both national 
and international experts) responsible for assessment of sub-projects proposal;  
− Technical assistance to implement assessment of the project; 
− Agricultural policy development and analysis.  For this purpose, a group of 
agricultural policy experts was formed. This  group was responsible for preparation of 
proposals and recommendations for the improvement of agricultural competitiveness and delivery of training for employees of the Ministry of Agriculture. JOB/ACC/12 
Page 20  
 
 (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. Background and authority of the programme:
 
Republican budget:  
− Law of the Republic of Kazakhstan of 8 Febr uary 2003, No. 385 "On Seed Breeding".  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (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. 
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.   JOB/ACC/12 
 Page 21 
 
 
 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 
Page 22  
 
 (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 ameliorative cond itions of irrigated lands. 
Background and authority of the programme:  
Republican budget:  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of Repub lican Budget Programs for 2008 (Ministry of 
Agriculture of the Republic of Kazakhstan)". 
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 monitoring of  irrigated lands and facilities established within 
the framework of the "Irrigation and Drainage Systems Improvement" Project.  Hydrogeological-
meliorative surveys are carried out by on-site monito ring of salt level in groundwaters with the use of 
observation wells and organiza tion of stationary site.  JOB/ACC/12 
 Page 23 
 
 
 (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.  
Background and authority of the programme:  
Republican budget:  
− Law of the Republic of Kazakhstan of 19 January 2001 No. 143 "On Grain".  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of passports of the Repub lican Budget Programs for 2008 (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;  JOB/ACC/12 
Page 24  
 
 3) analysis of agro-meteorological indicators 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 
 Page 25 
 
 
 (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. Background and authority of the programme:
 
Republican budget:  
− Law of the Republic of Kazakhstan of 8 Febr uary 2003, No. 385 "On Seed Breeding".  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Order of the Minister of Agriculture of the Republic of Kazakhs tan of 23 August 2004, 
No. 454 "On Rules of Varietal and Seed Contro l" (Registered in the Register of State 
Registrations of Statutory Legal Acts of th e Republic of Kazakhstan of 22 September 2004 
No. 3082). 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (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. 
This programme includes a range of measures aimed at determining varietal and sowing qualities of 
seeds and planting materials of elite seed producing fa rms, state varietal-testing stations and the state JOB/ACC/12 
Page 26  
 
 food grain resources.  The programme aims at examining sowing quality of seeds intended for 
planting by domestic agricultural producers as well.  JOB/ACC/12 
 Page 27 
 
 
 (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.  
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 20 Marc h 2002, No. 307 "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 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Resolution of the Government of the Republic  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. 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 JOB/ACC/12 
Page 28  
 
 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 were  applied for  implementation of the following 
measures: 
1)  Ensuring the existence of the Northern Aral 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 a bove measures will improve human and animal 
health; 
2)  Maintain and increase production of agricultu ral 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.  Restorati on 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 
 Page 29 
 
 
 (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. Background and authority of the programme: 
 
Republican budget:  
− Law of the Republic of Kazakhstan of 26 May 2004 "On Ratification of the Loan Agreement 
between the Republic of Kazakhstan and Isla mic Bank for Development of "Rural Water 
Supply of Karaganda oblast in Kazakhstan" Project. 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 21 January 2002, No. 71 
"Concept of Economic Water Sector and Waterw orks Policy Development of the Republic of 
Kazakhstan until 2010". 
− Resolution of the Government of the Repub lic of Kazakhstan of 28 August 2003, No 882 
"On Loan Attracting of Islamic Bank for Develo pment for funding of "Rural Water Supply of 
Karaganda oblast in Kazakhstan" Project. 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". JOB/ACC/12 
Page 30  
 
 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 pa ragraph 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 bank of Akshi irrigation basin in Irgiz Raion.   JOB/ACC/12 
 Page 31 
 
 
 (g) Development of roads in rural areas 
Title of the programme:   
Development of roads in rural areas. Duration of the programme:
  
The programme has been implemented since 2004. 
The programme objective:   
To provide capital works of  roads in rural areas. 
Background and authority of the programme:  
− 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 20 August 2003, No. 838 
"On the Plan of Activities for 2004-2006 for Impl ementation of 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 11 April 2007, No. 286 
"On Approval of the Plan of Activities for 2007-2009 for Implementation of the State Program for Rural Areas Development of the Republic of Kazakhstan for 2004-2010". 
Programme implementation:
  
The programme is implemented by financial support from the lo cal 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. 
With the purpose to bring technical condition of rural automobile roads to the level consistent with the 
technical requirements. JOB/ACC/12 
Page 32  
 
 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.  Background and authority of the programme:
 
Republican budget:  
− Law of the Republic of Kazakhstan of 19 January 2001, No. 143 "On Grain". 
− Law of the Republic of Kazakhstan of 8 July  2005, No. 66 "On the State Regulation of 
Agro-Industrial Complex and Rural Areas Development ". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Resolution of the Government of the Republic  of Kazakhstan of 28 March 2001, No. 394 
"On Approval of Rules on Formation, Storage and Utilization of the State Grain Resources". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)".  JOB/ACC/12 
 Page 33 
 
 
 Programme implementation :  
The programme is implemented by  financial support from the republican budget.  The Programme is 
consistent with the criteria of paragraph 3 of Annex 2 to the Agreement on Agriculture. 
The expenditures cover storage and movement of stat e reserve of grain from private  elevators to the 
elevators managed by the agent of the Government of the Republic of Kazakhs tan responsible for the 
management of public grain resources (Food Contract Corporation).  The state reserve of grain could 
be used in case of natural di sasters and military conflicts. JOB/ACC/12 
Page 34  
 
 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 perman ent basis. The programme is funded by local 
budgets only. 
The programme objective:   
Relief from natural disasters. 
Background and authority of the programme:  
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:
  
The expenditures meet the criteria of paragraph 8 (a)-(e) of Annex 2 to the Agreement on Agriculture. 
Under this programme farmers are compensated for the losses of animals and crops in case of 
outbreak of highly hazardous diseases and pests.     JOB/ACC/12 
 Page 35 
 
 
 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.  Background and authority of the programme: 
 
Republican budget: 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 "On the 
Strategy of Industrial and Innovation Develo pment of the 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 25 January 2001, No. 137 
"On Issues of Agrarian Sector Crediting". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". JOB/ACC/12 
Page 36  
 
 − Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
Programme implementation:
  
The programme is implemented by direct financ ial support from the republican budget.  Under this 
programme government provides soft loans to agricu ltural producers through the "KazAgroFinance".  
Funding is granted for procurement and subsequent  transfer to financial leasing of technological 
equipment and special  agricultural machiner y, 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 rain harvesting and irrigation machinery 
and agricultural equipment, particularly tractor s, trailers, cultivation machines, harvesting and 
crop protection; 
− compensation of expenses directly related to the procurement and supply of equipment and 
agricultural machinery. 
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 period 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 
 Page 37 
 
 
 Subsidies for livestock breeding 
Duration of the programme:   
The programme has been implemented since 2004. Background and authority of the programme:
 
Republican budget:  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
Programme implementation:  
The programme is implemented by direct fi nancial support from the republican budget.  The 
programme covers costs directed towards procurement and running of:  
1) meat, whole milk, raw skin and wool processing plants; 
2) modern slaughterhouses; 3) modern milk powder factory; 
4) manufacturing bases for acquisition and storage of wool;  JOB/ACC/12 
Page 38  
 
 5) manufacturing bases for acquisition and storage of hides; 
6) handling and processing of livestock products.  JOB/ACC/12 
 Page 39 
 
 
 (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. Background and authority of the programme:
 
Republican budget:  
− 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 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 18 March 2003, No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". JOB/ACC/12 
Page 40  
 
 − Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 
 Page 41 
 
 
 Micro-crediting 
Duration of the programme:   
The programme has been implemented since 2005. Background and authority of the programme:
 
Republican budget: 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
Programme implementation:  
About 47 per cent of the population lives in rural areas.   According to official statistics about one fifth 
of rural population has income below su bsistence 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-in come producers in activities that encourage their 
income growth.  JOB/ACC/12 
Page 42  
 
 The Agent of the Government of the Republic of Kazakhstan on micro-crediting of the rural 
population is "Agricultural support fina ncial fund" (hereinafter  the Fund).  The large share of credits 
allocated to the agricultural producers is involved in  the livestock production, particularly in cattle and 
seeds procurement.  
Conditions of the micro-crediting programme through affiliates and branches of the Fund are very 
convenient for rural population.  Micro-credits are 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 
 Page 43 
 
 
 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. 
Background and authority of the programme:  
Republican budget: 
− 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 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 25 January 2001, No. 137 
"On Issues of Agrarian Sector Crediting". 
− 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". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− 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 Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". JOB/ACC/12 
Page 44  
 
 − Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 
 Page 45 
 
 
 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 2003-2008. 
Background and authority of the programme:  
Republican budget: 
− Resolution of the Government of the Republic  of Kazakhstan of 6 January 2006, No. 6 
"On Approval of Rules on Subsidies Granting to Agricultural Producers for Procurement of Diesel Fuel for Spring-field and Harvesting Works in 2006 and of Rules on Supply of 
Agricultural Producers with Diesel Fuel for Sp ring Field and Harvesting Works in 2006". 
Programme implementation: 
 
The programme aims at delivering fuel and lubricant materials from oil refineries to domestic 
agricultural producers at fixed prices (2006= US$54,200 per tonne; 2007=US$55,000 per tonne; 
2008=US$80,000 per tonne) under the agreement of the refineries with the Ministry of Energy and 
Mineral Resources 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 
Page 46  
 
 Subsidies for purchase of oil products to agricultural producers 
The programme objective:
  
To improve crop quality. Duration of the programme:
  
Since 2006. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 Repub lic of Kazakhstan of 18 March 2003 No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)".  JOB/ACC/12 
 Page 47 
 
 
 Programme implementation:  
Within the framework of this programme direct s ubsidies are provided to agricultural producers for 
the partial compensation of expenses relating to purchase of diesel intended for cultivation of crops 
and conducting 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 
Page 48  
 
 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. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 Repub lic of Kazakhstan of 18 March 2003 No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Republic  of Kazakhstan of 25 May 2005, No. 509 
"On Approval of Rules on Subsidies to Reduce the Cost of Water Delivery Services to Agricultural Producers". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  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". 
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget".  JOB/ACC/12 
 Page 49 
 
 
 − Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
Programme implementation:  
Subsidies are granted for partial budgetary reimburse ment of the cost of water delivery services to 
enterprises engaged in rural water service delivery.  
Subsidies are paid only for actual water delivery services rendered to agricultural producers at a 
reduced cost within the water use reference limits established for.  
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 
Page 50  
 
 Partial compensation of feedstuffs cost 
The Program objective:
  
To increase productivity and qualit y of livestock products. 
Duration of the programme:    
The programme has been implemented since 2006. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 9 Ju ly 1998, No. 278 "On Livestock Breeding". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Republic  of Kazakhstan of 27 February 2006, No. 130 
"On Approval of Rules for the Use of Funds to Subsidize an Increase of Productivity and Quality of Livestock Products for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)".  JOB/ACC/12 
 Page 51 
 
 
 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 pri ce (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 produc ers specialized in production of beef, pork and 
poultry meat  to reduce the price of combined feed stuffs according to the actual volume of sales of 
beef, pork and poultry meat in the slaughter weight. 
The price reduction rates per: 
− 1 kilogram of combined feedstuffs;  
− Feed use limits per kilogram of product; and  
− subsidies per kilogram of products sold are estab lished by the Ministry of Agriculture of the 
Republic of Kazakhstan. 
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 
Page 52  
 
 Support for livestock breeding 
The programme objective:
  
To ensure production of highly-productive livestock breeds. Duration of the programme:
   
The programme is implemented on a permanent basis. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 9 Ju ly 1998, No. 278 "On Livestock Breeding". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 27 March 2007, No. 242 "On Amendments and 
Additions in the Law of the Republic of  Kazakhstan "On the State Regulation of 
Agro-Industrial Complex and Rural Territories Development". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the Republic of Kazakhstan for 
2003-2015".  
− Resolution of the Government of the Republic  of Kazakhstan of 18 March 2003, No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 27 February 2006, No. 130 
"On Approval of Rules for Subsidizing In crease of Productivity and Quality of Animal 
Products for 2006". 
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget".  JOB/ACC/12 
 Page 53 
 
 
 − Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 breeding 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 and 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 realized by direct financia l support from the republican and local budgets.   JOB/ACC/12 
Page 54  
 
 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. 
Background and authority of the programme:  
Republican budget:  
− Law of the Republic of Kazakhstan of 8 Fe bruary 2003, No. 385 "On Seed Breeding". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 27 March 2007, No. 242 "On Amendments and 
Additions in the Law of the Republic of K azakhstan "On the State Regulation of Agro-
Industrial Complex and Rural Territories Development". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the Republic of Kazakhstan for 
2003-2015".  
− Resolution of the Government of the Republic  of Kazakhstan of 18 March 2003, No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
− Resolution of the Government of the Republic  of Kazakhstan of 25 May 2005, No. 509 
"On Approval of Rules on Subsidizing the Cost of Water Supply Services for Agricultural Producers". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic  of Kazakhstan of 12 December 2005, No 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".   JOB/ACC/12 
 Page 55 
 
 
 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 for budgetary reim bursement of expenses for production (up to 
40 per cent) of original seeds, seedlings of fru it trees and establishment a queen cell of small 
wildings. 
2.  Subsidies are also applied to partially (up to 40 per cent) reduce the price of elite seeds sold to 
domestic agricultural producers. JOB/ACC/12 
Page 56  
 
 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. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 27 March 2007, No. 242 "On Amendments and 
Additions in the Law of the Republic of  Kazakhstan "On the State Regulation of 
Agro-Industrial Complex and Rural Territories Development". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the Republic of Kazakhstan for 
2003-2015".  
− Law of the Republic of Kazakhstan of 22 Ma y 2002, No. 555 "On Approval of Rules of 
Replenishment and Use of Credits of JSC "Fund for Small Business Development". 
− Resolution of the Government of the Republic  of Kazakhstan of 18 March 2003, No. 259 
"On Certain Issues of Crediting and Subsidizing the Agro-Industrial Sector". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Republic of Kazakhstan of 22 December 2005, No. 862 
"On Approval of Measures Plan for Realizati on of Development Concept of JSC "Fund for 
small business development" for 2005-2007". 
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget".  JOB/ACC/12 
 Page 57 
 
 
 − Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of passports of Re publican Budget Programs for 2008 (Ministry of 
Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Akimat of Mangistau Oblast of 3 June 2008, No. 404. Registered by the 
Department of Justice of Mangistau Oblast of 3 June 2008, No. 2016 "On Approval of the 
Guideline for Allocation of Assets, Provide d under the Oblast Budget by the Program 
"Crediting of JSC "Fund for Small Business De velopment" for the Implementation of the 
State Investment Policy". 
− Resolution of the Akimat of Mangistau Oblast of 14 July 2008, No. 518. Registered by the 
Department of Justice of Mangistau Oblast  of 19 August 2008, No. 2023 "On Amendments 
Made in the Resolution of the Akimat of Mangistau Oblast of 3 June 2008, No 404 
"On Approval of the Guideline for Allocation of Assets, Provided in the Oblast Budget by the 
Program "Crediting of JSC "Fund for small busin ess development" for the Implementation of 
the State Investment Policy". 
− Resolution of the Akimat of Mangistau Oblast of 25 August 2008, No. 755. Registered by the 
Department of Justice of Mangistau Oblast  of 22 September 2008, No. 2029 "Amendments 
made in the Resolution of the Akimat of Mangistau Oblast of 3 June 2008, No. 404 "On approval of the Guideline for Allocation of  Assets, Provided in the Oblast budget by the 
Program "Crediting of JSC "Fund for small Bu siness Development" for the Implementation 
of the State Investment Policy". 
Programme implementation:
 
Under this programme government provides soft lo ans to agricultural producers through the "Fund for 
small business development". Loans were provided to small agribusinesses for purchase of inputs. 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 normal 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 interest rate of the loan.  The diffe rence was accounted for every year of loan use.  JOB/ACC/12 
Page 58  
 
 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. 
Background and authority of the programme:  
Decisions of Regional  Maslikhats (Local executive bodies). 
Programme implementation:   
Under this programme government provides soft loan s to small farms for replenishing of current 
assets. Allocation of loans is implemented out of local budgets. 
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 
 Page 59 
 
 
 AMBER BOX 
PROCUREMENT OF WHEAT FOR THE STATE RESERVE 
The programme objective:   
To ensure country's food security. 
Duration of the programme:   
The programme has been implemented on a permanent basis. Background and authority of the programme:
 
Republican budget:  
− Law of the Republic of Kazakhstan of 19 January 2001, No. 143 "On Grain". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 24 February 1997, No. 260 
"On Reorganization of State Food Contract Corporation". 
− Resolution of the Government of the Republic of Kazakhstan of 24 December 2004, No. 1372 
"On Approval of Development Plan of the JSC "Food Contract Corporation" for 2005-2007". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Republic  of Kazakhstan of 13 January 2006, No. 41 
"On Approval of Development Plan of the JSC "Food Contract Corporation" for 2006-2008". 
− 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 15 February 2006, No. 101 
"On state procurement of grain for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". JOB/ACC/12 
Page 60  
 
 − Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic  of Kazakhstan of 13 March 2007, No. 190 
"On State Procurement of Grain for 2007". 
− 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 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− 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. 
According to the procurement rules the grain for th e state reserve is purchased directly from domestic 
farmers.   JOB/ACC/12 
 Page 61 
 
 
 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:   
Procurement operations of barl ey were performed in 2008.  
Procurement operations of raw cott on were performed in 2006-2008. 
Background and authority of the programme:   
Republican budget:  
− Law of the Republic of Kazakhstan of 19 January 2001, No. 143 "On Grain". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 24 February 1997, No. 260 
"On Reorganization of State Food Contract Corporation". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept of Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic  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 JOB/ACC/12 
Page 62  
 
 Agricultural Products from Domestic Producer s and Services for Storing, Processing and 
Transporting the Products". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 
 Page 63 
 
 
 PROCUREMENT OF LIVESTOCK PRODUCTS TO SUPPORT DOMESTIC 
AGRICULTURAL PRODUCERS 
The programme objective:   
To purchase livestock products (bovine meat, sheep, small cattle, dry milk, fatless cheese, butter and 
sheep fleece) to support domestic agricultural producers. 
Duration of the programme:   
− Procurement of bovine meat is performed on an ongoing basis. 
− Procurement of lamb was performed in 2008. 
− Procurement of small cattle (livestock)  was performed in 2006 and 2007. 
− Procurement of dry milk, fatless cheese a nd butter was performed in 2007 and 2008. 
− Procurement of sheep wool is performed on a permanent basis. 
Background and authority of the programme:   
Republican budget: 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 8 September 2001, No. 1168 
"On Formation of Joint Stock Company "Mal Onimderi Korporatsiyasy". 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  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 Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". JOB/ACC/12 
Page 64  
 
 − 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". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 "Mal Onimderi Korporatsiyasy " (the Corporation on Animal Products) carries out 
purchases of livestock products on behalf of the G overnment of the Republic of Kazakhstan to 
support farmers.  JOB/ACC/12 
 Page 65 
 
 
 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. 
Background and authority of the programme:   
Republican budget: 
− Law of the Republic of Kazakhstan of 10 Ma rch 2004, No. 533-II "On Compulsory Insurance 
of Plant Cultivation". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic  of Kazakhstan of 4 April 2007, No. 270 
"On Approval of Criteria and Characteris tics for Defining Unfavourable Natural 
Phenomenon" 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". JOB/ACC/12 
Page 66  
 
 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 insurer and the insured 
person on each type of crop according to standard e xpenses per hectare, multiplied by the whole area, 
on which the insured person bears expenses for growi ng crops. Calculation of insurance sum is made 
on the basis of costs accordi ng to the following schemes: 
1.  Scientifically justified agro technology; 
2.  Simplified agro technology; 
3.  On three types of costs based on scientifi cally justified or simplified agro technology: 
 -  fuel and lubricants; 
 -  seeds;  -  salaries.  JOB/ACC/12 
 Page 67 
 
 
 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. 
Background and authority of the programme:   
Republican budget:  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". JOB/ACC/12 
Page 68  
 
 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 
 Page 69 
 
 
 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. 
Background and authority of the programme:   
Republican budget:  
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− 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 10 February 2005, No. 134 
"On Certain Issues of Organization of Infrastructure for Servicing of Agricultural Production" 
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
Programme implementation:   
The government provides soft loans to agricultu ral producers through the "KazAgroFinance".  The 
aim of this programme is to organize infrastructur e 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.  JOB/ACC/12 
Page 70  
 
 The subsidy was calculated as a difference between the interest rate of commercial banks and the 
interest rate of the soft loan under the this progr amme.  The difference was accounted each year of the 
loan use.   JOB/ACC/12 
 Page 71 
 
 
 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. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhsta n of 2 July 1998 "On Ratification of the Loan Agreement of 
No. 1592/1593 (SF) - КАZ ("Management of water res ources and rehabilitation of lands" 
Project) between the Republic of Kazakhs tan and the Asian Development Bank of 
25 March 1998". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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". 
− Decree of the President of the Republic of  Kazakhstan of 29 December 2003, No. 1268 
"On the State Program for Small Businesses Development and Support in the Republic of 
Kazakhstan for 2004-2006".  
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the 
Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". JOB/ACC/12 
Page 72  
 
 − Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 signe d between the Ministry of Finance and farmers 
with the participation of the Ministry of Agriculture and the agent-Bank.  
Soft loans were granted to agricu ltural producers for a period of 27 years.  The subsidy is calculated 
as a difference between the interest rate of commercia l banks and the interest rate of the soft loan 
(LIBOR rate).  The difference was accounted for every year of loan use.  JOB/ACC/12 
 Page 73 
 
 
 SOFT LOANS WITHIN THE INTERNATIONAL BANK FOR RECONSTRUCTION AND 
DEVELOPMENT PROJECT "IRRIGATION AND DRAINAGE SYSTEMS IMPROVEMENT" 
The programme objective:
  
To improve irrigation and drainage system of agricultural producers. 
Duration of the programme:   
The programme has been implemented till 2008. Background and authority of the programme:
  
Republican budget: 
− Law of the Republic of Kazakhstan of 27 Se ptember 1996 "On Ratification of the Loan 
Agreement ("Improvement of Irrigation and Drai nage System" Project) between the Republic 
of Kazakhstan and the Inte rnational Bank for Reconstr uction and Development of 
25 June 1996". 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Decree of the President of the Republic of Kazakhstan of 17 May 2003, No. 1096 
"On Strategy of Industrial a nd Innovational Development of the 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". 
− Decree of the President of the Republic of  Kazakhstan of 29 December 2003, No. 1268 
"On the State Program for Small Businesses Development and Support in the Republic of 
Kazakhstan for 2004-2006".  
− 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.  
− Resolution of the Government of the Republic  of Kazakhstan of 30 June 2005, No. 654 
"On the Plan of Measures for the Implementati on of the Concept on Sustainable Development 
of the Agro-Industrial Complex of the Republic of Kazakhsta n for 2006-2010". 
− 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. 
− Resolution of the Government of the Republic  of Kazakhstan of 9 December 2005, No. 1260 
"On Realization of the Law of the Republic  of Kazakhstan "On 2006 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2005, No. 1235 
"On Approval of Passports of Budget Programs for 2006". 
− Resolution of the Government of the Repub lic of Kazakhstan of 6 March 2006, No. 149 
"On Approval of the Priority Measures Program  for 2006-2008 for the Realization of the JOB/ACC/12 
Page 74  
 
 Concept on Sustainable Development of the Agro-Industrial Complex of the Republic of 
Kazakhstan for 2006-2010".  
− Resolution of the Government of the Republic  of Kazakhstan of 4 December 2006, No. 1204 
"On Realization of the Law of the Republic  of Kazakhstan "On 2007 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 15 December 2006, No. 1220 
(extract) "On Approval of Passports of the Republican Budget Programs for 2007 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1223 
"On Realization of the Law of the Republic  of Kazakhstan "On 2008 Republican Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 12 December 2007, No. 1224 
(extract) "On Approval of Passports of the Republican Budget Programs for 2008 (Ministry 
of Agriculture of the Republic of Kazakhstan)". 
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 Se ptember 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.  
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 is calculated as a difference between the interest rate of commercial banks and the 
interest rate of the soft loan.  The diffe rence was accounted each year of loan use.  JOB/ACC/12 
 Page 75 
 
 
 DEBT WRITING OFF 
The programme objective:   
To write off the overdue debts of agricultural producers.  Duration of the programme:
  
The programme had been implemented from 2003 to 2007. 
Background and authority of the programme:  
Republican budget: 
− Resolution of the Government of the Repub lic of Kazakhstan of 14 June 2006 No. 551 
"On Determining the List of Authorized Bodi es Liquidated by 1 January 2006 in Compliance 
with the Legislation of the Republic of Kazakhs tan, in Relation to which Claims on Credits 
and Funds Allocated for Covering the Obliga tions under State Guarantees and Debts are 
Terminated". 
− Resolution of the Government of the Repub lic of Kazakhstan of 26 July 2006 No. 636 
"On Determining the list of Authorized Bodies Liquidated by 1 January 2007 in Compliance 
with the Legislation of the Republic of Kazakhs tan, in Relation to which Claims on Credits 
and Funds Allocated for Covering the Obliga tions under State Guarantees and Debts are 
Terminated". 
Programme implementation:   
Within the framework of this programme governme nt writes off the overdue debts of agricultural 
producers under the programme loan of the As ian Development Bank.  The debt writing-off 
programme was implemented by funds allocated fr om the republican budget in connection with the 
performance of obligations on state guarantees and by funds allocated from the Rehabilitation Fund of 
the Republic of Kazakhstan. JOB/ACC/12 
Page 76  
 
 DEBT WRITING OFF 
The programme objective:
  
To write off overdue debts of agricultural producers. Duration of the programme:
  
The programme had been implemented from 2002 to 2004 and 2007. 
Background and authority of the programme:   
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 D ecember 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". 
− 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 
State Agricultural Support Financial Fund 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 Dir ective Credits to the Fund of Financial Support 
of Agriculture". 
− Resolution of the Government of the Repub lic 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 Republic  of Kazakhstan of 28 May 1996, No. 651 
"On the Agreement, signed on 17 May 1996 between  the Ministry of Finance of the Republic 
of Kazakhstan and the Fund of Fi nancial Support of Agriculture". 
− Resolution of the Government of the Repub lic of Kazakhstan of 14 August 2006, No. 763 
"On Termination of Claims of the Government  of the Republic of Kazakhstan to JSC "Fund 
of Financial Support of Agriculture" on Cent ralized (directive) Credits, Provided to 
Borrowers – Juridical Entities, liquidated on 1 January 2006 in accordance with the 
Legislation of the Republic of Kazakhstan". 
Programme implementation:
 
In 2006, according to the Decree of the President of  the Republic of Kazakhsta n of 24 February 1994, 
No. 1578 "On Assistance to Agricultu ral Enterprises in 1994", the Resolution of the Government of 
the Republic of Kazakhstan of 28 May 1996, No. 651 "On the Agreement Concluded on 17 May 1996 
between the Ministry of Finance of the Republic of  Kazakhstan and the Fund of Financial Support of 
Agriculture", and the Resolution of the Gove rnment of the Republic of Kazakhstan of 
14 December 1995, No. 1719 "On Transfer of Debts on Centralized and Directive Credits to the Fund 
of Financial Support of Agriculture" the state wrote off the overdue debts of agricultural producers for 
centralized (directive) credits out of the republican budget.   JOB/ACC/12 
 Page 77 
 
 
 According to the Law of the Republic of Kazakhs tan on the republican budget for 1995-1997 the state 
wrote off the debt of agricultural producers on loan s granted to provide financial aid and development 
of small and medium agricultural busine ss, including farms and farming households. 
According to the Resolution of the Government of  the Republic of Kazakhs tan of 17 September 1996, 
No. 1130 "On Regulation of Certain Financial Obliga tions in the Agricultural and Energy Complexes 
of the Republic" the state wrote-off debts for heat and electricity. 
According to the Law of the Republic of Kaza khstan on the Republican budget for 1996 and 1997 the 
state wrote off debts of agricultural producer s for leasing of agricultural machinery. 
In 2007 according to the Resolution of the Gove rnment of the Republic of Kazakhstan of 
17 September 1996, No. 1130 "On Regulation of Certai n Financial Obligations in the Agricultural and 
Energy Complexes of the Republic" the state wr ote off the debt for heat and electricity. 
Table on writing-off overdue debts of agricultural producers in 2006: 
Type of debt 
Debt 
(T '000) Centralized (directive) 
credits by the Decree 
of the President of the 
RK of 24.02.1994 
No. 1578, DPRK of 
28.05.1996 No. 651, of 
14.12.1995 No. 1719 Money allocated 
according to the Law of 
the RK on the RB for 
95-97 "For financial aid 
and development of 
small and medium 
agricultural businesses, 
including farms and 
farm households" Leasing by the law of 
the RK "on the RB for 
96-97", DPRK 
No. 1209 04.08.97, 
No. 1141 of 
21.07.97,No. 513 of 
09.04.97,No. 901 of 29.05.97,No. 341 of 
15.04.98 Electricity 
(DPRK of 
17.09.1996. 
No. 1130) 
Total amount of debt 11,232,625.8 7,036,172.0 245,601.0 3,950,852.8 
Written off 3,239,918.0 3,239,918.0   
 
Table on writing-off of overdue debts of agricultural producers in 2007: 
Debt written off No Name of the Borrower Total (tenge) Principal amount (tenge) 
1  "AktyubeKazEnergo" 147,345,000 147,345,000 
2  "AltayEnergo" 1,397,373,500 1,397,373,500 
3 "KREK" 290,512,000 290,512,000 
4  "Mangyshlak atomic electric complex", 
"Mangystau Distribu tion Electric Network 
Company" 19,196,000 19,196,000 
5  "YUKREK" 784,100,000 784,100,000 
  Total 2,638,526,500  
 JOB/ACC/12 
Page 78  
 
 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: 
− 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 of 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 Dir ective Credits to the Fund of Financial Support 
of Agriculture". 
− Resolution of the Government of the Republic  of Kazakhstan of 28 May 1996, No. 651 
"On the Agreement, Signed on 17 May 1996 between the Ministry of Finance of the Republic of Kazakhstan and the Fund of Fi nancial 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 of Financial Support of Agriculture". 
− Resolution of the Government of the Repub lic of Kazakhstan of 14 August 2006, No. 763 
"On Termination of Claims of the Government  of the Republic of Kazakhstan against Joint 
Stock Company "Fund of Financial Support of Ag riculture" on Centralized (directive) Credits 
granted to borrowers – Legal Entities Liquidate d as of 1 January 2006 in accordance with the 
Legislation of the Republic of Kazakhstan". 
Programme implementation:
 
In 1994 the government provided loans to agricultural producers.  The repayment period of loans 
began on 1 of March 1995.  
Starting from 1995 agricultural producers stopped paying principals and interests of the loans.  Thus 
the government forgoes the revenue that it would ot herwise collect from agricultural producers in the 
form of interests.  The "Fund of Financial Support of Agriculture" as an agent of the government has the right to claim overdue debts of agri cultural producers under this programme.   JOB/ACC/12 
 Page 79 
 
 
 REVENUE FORGONE ON OVERDUE DEBTS 
Duration of the programme:   
The programme has been implemented since 2003. Background and authority of the programme:
  
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 D ecember 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 Repub lic 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 Republic  of Kazakhstan of 14 June 2006, No. 551 
"On Determining the List of Authorized Bodi es Liquidated by 1 January 2006 in Compliance 
with the Legislation of the Republic of Kazakhs tan, in Relation to which Claims on Credits 
and Funds Allocated for Covering the Obliga tions under State Guarantees and Debts are 
Terminated". 
− Resolution of the Government of the Republic  of Kazakhstan of 26 July 2006, No. 636 
"On Determining the list of Authorized Bodies Liquidated by 1 January 2007 2006 in 
Compliance with the Legislation of the Republic of Kazakhstan, in Relation to which Claims 
on Credits and Funds Allocated for Covering the Obligations under State Guarantees and 
Debts are Terminated". 
Programme implementation:   
In 1994 the government provided loans to agricultural producers.  The repayment period of loans 
began on 1 of March 1995.  
Starting from 1995 agricultural producers stopped paying principals and interests of the loans.  Thus 
the government forgoes the revenue that it would ot herwise collect from agricultural producers in the 
form of interests.  The "Rehabilitation Fund" as an  agent of the government has the right to claim 
overdue debts of agricultural producers.  JOB/ACC/12 
Page 80  
 
 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. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 22 No vember 2005, No. 88 "On 2006 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 8 December 2006, No. 194 "On 2007 Republican 
Budget". 
− Law of the Republic of Kazakhstan of 6 D ecember 2007, No. 8-IV "On 2008 Republican 
Budget". 
− Resolution of the Government of the Republic of Kazakhstan of 24 December 1998, No. 1332 
"On Certain Issues of the Joint Stock Company "Fund of Financial Support of Agriculture". 
− Resolution of the Government of the Repub lic of Kazakhstan of 14 August 2006, No. 763 
"On Termination of Claims of the Government  of the Republic of Kazakhstan to JSC "Fund 
of Financial Support of Agriculture" on Cent ralized (directive) Credits, Provided to 
Borrowers – Juridical Entities, Liquidated on 1 January 2006 in Accordance with the 
Legislation of the Republic of Kazakhstan". 
Programme implementation:  
Under this programme government provides soft loan s to agricultural producers through the Agent of 
the Government of the RK - "Agrarian Credit Co rporation".  Funding is provided from of the 
republican budget. 
Loans were granted to agricultural producers th rough 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 is calculated as a difference between the interest rate of commercial banks and the 
interest rate of the soft loan. The difference was accounted for every year of loan use.   JOB/ACC/12 
 Page 81 
 
 
 REVENUE FORGONE DUE TO DECREASING COEFFICIENTS FOR TRANSPORTATION 
OF AGRICULTURAL CARGOES BY RAILWAY 
The programme objective:  
To reduce the transport cost for agricultural products. Duration of the programme:
 
The programme has been implemented since 2005. 
Background and authority of the programme:  
Republican budget: 
− Law of the Republic of Kazakhstan of 21 Se ptember 1994, No. 156 "On Transport in the 
Republic of Kazakhstan". 
− Law of the Republic of Kazakhstan of 29 September 2005, No. 77 "On Amendments and 
Additions in the Law of the Republic of Ka zakhstan "On Transport in the Republic of 
Kazakhstan". 
− Resolution of the Government of the Republic of Kazakhstan of 29 December 2004, No. 1411 
"On Draft Law of the Republic of Kazakhstan "O n Amendments and Additions in the Law of 
the Republic of Kazakhstan "On Transpor t in the Republic of Kazakhstan". 
− Resolution of the Government of the Republic  of Kazakhstan of 3 July 2001, No. 910 
"On Withdrawal from Majilis  of the Parliament of the Repub lic of Kazakhstan of the Law 
Draft of the Republic of Kazakhstan "On Ente ring into Force the Law of the Republic of 
Kazakhstan "On Railway Transport". 
− Decree of the Supreme Council of the Repub lic of Kazakhstan of  21 September 1994, 
No. 157 "On Entering into Force the Law of the Republic of Kazakhstan "On Transport in the 
Republic of Kazakhstan". 
Programme implementation:  
Within the framework of this programme government  provides decreasing coefficients on tariffs for 
transportation of agricultural produc ts by main railroad networks. JOB/ACC/12 
Page 82  
 
 SPONSORING COSTS OF BANKRUPTCY PROCEDURES 
The programme objective:
 
To provide bankruptcy procedures of agricultural enterprises. Duration of the programme:
 
The programme has been implemented since 2002. 
Background and authority of the programme  
Decisions of Regional  Maslikhats (Local executive bodies). 
Programme implementation:  
The programme aims to conduct bankruptcy proced ures of agricultural enterprises, owned by local 
executive bodies.  
The programme funds the cost of elimination of inactive, possessing no assets and indebted 
agricultural enterprises which ar e recognized as a bankrupt by the court.  The programme is 
implemented by financial support from the local budgets.  
__________