Sovereign Wealth Fund «Samruk-Kazyna» JSC

Joint Stock Company Sovereign Wealth Fund «Samruk-Kazyna» was founded in accordance with the Decree of President of the Republic of Kazakhstan dated October 13, 2008 № 669 «Оn some measures on competitiveness and sustainability of national economy» and by the Decree of the Government of the Republic of Kazakhstan dated October 17, 2008 № 962 «Оn measures on realization of the Decree of President of the Republic of Kazakhstan № 669»  by merge of two joint stock companies Kazakhstan Holding for the Management of State Assets SAMRUK and KAZYNA Sustainable Development Fund.

Sovereign Wealth Fund «Samruk-Kazyna» is established in order to enhance competitiveness and sustainability of national economy and prevent any potential negative impact of changes in the world markets on economic growth of the country.

The key purpose of “Samruk-Kazyna” is to manage shares (interests) of national development institutions, national companies,  and other legal entities  it owns to maximize their long-term value and competitiveness in the world markets.

Samruk-Kazyna will rely on the following key principles:

1. safeguarding interests of the state as the sole shareholder of Samruk-Kazyna;
2. transparency, efficiency and flexibility of Samruk-Kazyna and Companies;
3. systemic and effective manner of decision-making and execution; and
4. commitment and accountability.

Samruk-Kazyna will rely on the following main directions of operation:

1. support to modernization and diversification of national economy;
2. support to economic stabilization in the country; and
3. enhancing efficiency of the Companies.

The key area for Samruk-Kazyna and Companies shall be modernization and diversification of national economy in the framework Annual Addresses of the President of Kazakhstan, Strategy of Industrial and Innovation Development of Kazakhstan 2003-2015,  “30 Corporate Leaders of Kazakhstan” Program, aims and objectives assigned to Companies and other documents.

Samruk-Kazyna is to provide maximum support to the Government of Kazakhstan, promptly and efficiently responding to the needs in attracting investments into real economy, becoming more active in the regions, strengthening inter-industry and inter-regional links and making maximum use of available advantages and opportunities.

Diversification and modernization of national economy can go efficiently through active investments especially in such prioritized sectors as:

• oil and gas;
• power energy;
• metallurgy;
• chemistry and petrochemicals; and
• infrastructure.

Key Objectives of Samruk-Kazyna are:

1. to develop and ensure implementation of regional, national and international investment projects;
2. to support and modernize existing assets of Samruk-Kazyna Group of Companies;
3. to support regional development and implementation of social projects; and
4. to support national producers.

In the framework of these objectives Samruk-Kazyna shall perform the following functions:

1. develop and/or implement and/or finance regional, national and international investment projects, in real economy in particular, on its own and/or together with Companies, as well as with strategic international and/or national investors through equity and loans;
2. act as operator of “30 Corporate Leaders of Kazakhstan” Program and other programs and plans as assigned by the Government of the Republic of Kazakhstan;
3. develop new sectors of economy and acquire economically attractive assets in and outside the country;
4. ensure coordinated and active investment policy during implementation of investment and innovation projects by Companies, where the key priority of such policy is implementation of projects inside Kazakhstan;
5. attract national and international, public and private investments and introduce innovations in various sectors of economy;
6. perform balanced borrowing of capital from world and domestic capital markets, from strategic foreign partners;
7. finance projects of SMEs;
8. set up efficient comprehensive system of financial and investment tools within group of Companies;
9. develop inter-regional economic links, including through implementation of projects inside Kazakhstan; and
10. ensure breakthrough development of regions through social-business corporations.

Samruk-Kazyna shall perform the following functions:

1. take part in stabilization programs of the Government;
2. acquire authorized voting shares of second-tier banks;
3. allocate stipulated funds in second-tier banks in order to support socio-economic development, in particular to complete construction sites, finance SMEs and agribusiness;
4. support development of mortgage credit market and system of housing construction savings;
5. identify, approve and monitor procurement process of Samruk-Kazyna and Companies providing for enlarged portion of local producers and providers, localization of manufacturing, assembly, repair and maintenance of imported equipment in Kazakhstan when it is procured in large volumes by Companies; and
6. trust management of state-owned interest of «Stress Assets Fund» JSC.