OREANDA-NEWS. September 24, 2014. National Economy Ministry of Kazakhstan offers to restrain the state from participating in organizations related to small business, and from creating them. It was announced by Vice Minister Timur Zhaksylykov, who was presenting the draft law "On amendments and additions to some legislative acts of the Republic of Kazakhstan on limitation of the state's participation in business" in Majilis.

"The bill provides for establishment of state-owned companies and subsidiaries in following cases: lack of any possibility of national security, defense potential of the state or protection of the state; use and maintenance of strategic facilities owned by the state; implementation of activities in areas referred to state monopolies, as well as created to analyze effectiveness and development of proposals for improvement of public policy; absence of private entrepreneurs performing production and sale of similar or substitutable products at a relevant commodity market; when such establishment is directly provided by the laws of the Republic of Kazakhstan, presidential decrees or decisions of the Government," T. Zhaksylykov said.

According to him, the bill provides that in the absence of competition in a particular market, the state may decide to establish a legal entity with its participation. This entity should be created on the principles of PPP, followed by withdrawal of the state from this entity, taking into account the payback period of the project.

The bill also provides that the Fund "Samruk-Kazyna" is engaged in procurement on a competitive basis with participation of companies not included in the group of the Fund, and only in their absence, to procure goods from their affiliates.

Ministry of National Economy of Kazakhstan proposes to oblige the public companies to coordinate new activities with antitrust authorities. "We introduce a rule providing that each new type of activity, planned to be implemented by state-owned companies, must be consistent with the antitrust authorities without fail. In addition, in order to ensure transparency and publicity of product market analysis carried out by an antitrust authority, the bill provides for mandatory publication of the results of the analysis on the official website in the public domain," T. Zhaksylykov said.

Vice Minister noted that current legislation allows state-owned companies, without the consent of antitrust authority, to carry out new activities in areas where there is a private business. State-owned companies that use state administrative resources, has an opportunity to occupy a dominant position in their respective fields. Therefore, a regulation fixing an annual analysis of product markets by antitrust authority to identify activities and state-owned company to transfer to the competitive environmentis proposed.

According to T. Zhaksylykov, the bill will allow to give a new impetus to development of entrepreneurship and competition in the country.