Legal Alert

Tax & Legal

October 2009
International Cooperation

UN Convention On Jurisdictional Immunities of the States and Their

Property

On 27 October 2009 the President of Kazakhstan signed a law on ratification

of the UN Convention of Jurisdictional Immunities of the States and Their
Property dated December 2, 2004.

The Convention relates to the State’s immunity in the courts of foreign

countries. It defines a list of property which may not fall under the jurisdiction
of a foreign court, i.e. the property which may not be affected by a ruling or
decision of a foreign court. Such a list contains, among other things, banking
accounts used for the purposes of diplomatic missions, military property,
property of cultural, historical or scientific importance, etc.

By ratifying the said Convention, Kazakhstan ensures its immunity and

immunity of the property listed in the Convention against the jurisdiction of
the courts of the other member countries of the Convention.

The Convention was ratified by Law of Kazakhstan # 195-IV dated October

27, 2009, On Ratification of the UN Convention of Jurisdictional Immunities
of the States and Their Property.

Finance

Resolution of the Board of the Agency of the Republic of Kazakhstan

on regulation and supervision of the financial market and financial
organizations # 140 dated July 7, 2009 On additions and amendments
to the Resolution of the Board of the Agency of the Republic of
Kazakhstan on regulation and supervision of the financial market and
financial organizations # 296 dated December 25, 2006 On adoption of
Regulations on the classification of assets, conditional liability and
creation of provisions (reserves) against them and amendments to the
Resolution of the Agency of the Republic of Kazakhstan on regulation
and supervision of the financial market and financial organizations #
116 dated March 26, 2005 On amendments to several normative legal
acts of the Republic of Kazakhstan on questions relating to the
regulation and control of the financial market and financial
organizations.

The Resolution states that effective from January 1, 2010, Banks are
required to create a provision (reserve fund) against all loans to companies
related (registered or subsidiaries of the companies registered) to low-tax
countries. The list of low-tax countries for the purposes of the mentioned
requirement includes 43 jurisdictions. However, such a requirement shall not
apply to those companies providing highly liquid collateral. These
Regulations shall apply to all second-tier banks, Bank of Development of
Kazakhstan JSC and organizations carrying out certain types of banking
activities.

We believe that a failure to comply with the said requirement may lead to the
following negative consequences:

• Decrease in the shareholder’s equity of the Bank;

• Decrease in the net income of the Bank;

• Possibility of losses of the Bank; and

• Possibility of the Bank’s non-observance of the prudential norms.

Resolution of the Board of the Agency of the Republic of Kazakhstan

on regulation and supervision of the financial market and financial
organizations # 196 dated August 28, 2009 On approval of the minimal
amount of reserved capital of second-tier banks.

The Resolution establishes a new procedure of the calculation of the

minimal amount of the reserved capital of the second-tier banks. According
to the said Resolution, the amount of the reserved capital for the second-tier
banks shall consist of the amount of the actual reserved capital formed
within the previous reporting period and a certain part of the undistributed
net income.

In addition, please note that the above requirement shall apply to the
second-tier banks which have been established after January 1, 2007 only
within four years from the effective date of the Resolution. There is also an
exception provided for the House Construction Savings Bank of Kazakhstan,
which is expected to comply with the said requirement only beginning from
January 1, 2011.

The Resolution became effective from October 11, 2009.

Resolution of the Board of the Agency of the Republic of Kazakhstan

on regulation and supervision of the financial market and financial
organizations # 198 dated August 28, 2009 On approval of the
Instruction on normative values and method of prudential norm
calculation for insurance (reinsurance) entities, on forms and terms of
submission of reports on fulfilment of the prudential norms.

The Resolution establishes a step-by-step plan of increasing the minimal

size of the guarantee fund for insurance (reinsurance) entities dealing with
mortgage insurance and a step-by-step plan of increasing the minimal
amount of charter capital for newly established insurance (reinsurance)
entities.

The Resolution became effective from October 21, 2009.

Resolution of the Board of the Agency of the Republic of Kazakhstan

on regulation and supervision of the financial market and financial
organizations # 215 dated September 26, 2009 On approval of the
Rules of the calculation of prudential standards for entities combining
certain types of professional activity on securities market.

The Resolution establishes new Rules for the calculation of the prudential
standards for the entities combining certain types of activity on the securities
market. The previous Rules for the calculation of the prudential standards
have been repealed.

The Resolution became effective from October 5, 2009; however, certain

provision will become effective in January 2010 and January 2011.
Resolution of the Board of the Agency of the Republic of Kazakhstan on
regulation and supervision of the financial market and financial organizations
of August 28, 2009 № 200, On amendments and additions to Resolution of
the Board of the Agency of the Republic of Kazakhstan on regulation and
supervision of the financial market and financial organizations of February
25, 2006 # 62, On approval of Regulations on carrying out a system of
holders of securities’ register.

This Resolution became effective from October 21, 2009.

Miscellaneous

Resolution of the Government of the Republic of Kazakhstan dated

September 30, 2009 # 1486, On Introduction of Amendments and
Additions to Resolutions of the Government of the Republic of
Kazakhstan, dated June 19, 2001 # 836 and April 24, 2006 # 316.

On September 30, 2009, the Government of the Republic of Kazakhstan

introduced a number of amendments to the Rules of Determining the Quota,
Terms and Procedure of the Issuance of Work Permits to Employers for
Attraction of Foreign Manpower to the Republic of Kazakhstan.

The main changes introduced by the Resolution are the following:

• introduction of a new special condition, which may be applied to

companies attracting foreign manpower and which does not require the
replacement of a foreign specialist by Kazakh manpower - “professional
training or retraining of Kazakhstani citizens on specialties demanded in
regional labour market and agreed with the authorized body”;

• imposition of special conditions will now depend on a category of foreign

specialists;

• increase in the term of submitting documents guaranteeing the departure

of a foreign specialist upon a work permit expiry from 10 to 20 business
days;

• an option of obtaining a work permit valid in two o more regions has been
cancelled, however employers shall be entitled to send foreign
employees to business trips to other regions for a period of not more than
120 calendar days in each year;

• introduction of a possibility to recall an already obtained work permit by

an employer;

• announcement of available vacancies shall be published not less than 15

calendar days and not more than 2 months prior to applying for a work
permit.

The Resolution became effective on October 14, 2009.

Contacts

Almaty Astana

Vladimir Kononenko Andrey Zakharchuk

Tel :+7(727) 258 13 40 Tel: +7(717) 258 04 80
Fax:+7(727) 258 13 40 Fax:+7(717) 258 03 90
Email: vkononenko@deloitte.kz Email : azakharchuk@deloitte.kz

Dilya Osmanova Atyrau

Tel:+7(727) 258 13 40
Russell Maynard
Fax:+7(727) 258 13 40
Tel: +7(712) 258 62 40
Email : dosmanova@deloitte.kz
Fax:+7(712) 258 62 41
Dina Turkina Email : rmaynard@deloitte.kz
Тel:+7(727) 258 13 40
Fax:+7(727) 258 13 40
Aktau
Email : dturkina@deloitte.kz
Russell Maynard
Gaukhar Iskakbayeva
Tel: +7(729) 275 00 16
Теl:+7(727) 258 13 40
Fax: +7(729) 275 00 17
Fax:+7(727) 258 13 40
Email : rmaynard@deloitte.kz
Email : giskakbayeva@deloitte.kz

Michael Sturdivant
Tel :+7(727) 258 13 40
Fax:+7(727) 258 13 40
Email : msturdivant@deloitte.kz

Agaisha Ibrasheva
Tel :+7(727) 258 13 40
Fax:+7(727) 258 13 40
Email :aibrasheva@deloitte.kz

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning
multiple industries. With a globally connected network of member firms in 140 countries, Deloitte brings world-
class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's 165,000
professionals are committed to becoming the standard of excellence.

Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to
markets and clients, commitment to each other, and strength from cultural diversity. They enjoy an
environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's
professionals are dedicated to strengthening corporate responsibility, building public trust, and making a
positive impact in their communities.

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms,
each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed
description of the legal structure of Deloitte Touche Tohmatsu and its member firms.

© 2009 by Deloitte LLP and Deloitte TCF LLP. All rights reserved.