Many international companies work in Kazakhstan as contractors to oil and gas and other mineral resources producers.  Such producers are referred to in the Kazakhstani legislation as “subsoil users”.

Subsoil users are obliged to purchase goods, works and services for their operations through open tenders or one of other methods (such as purchase “from one source” and purchase through requests for proposal – such other methods have limited application).  Contractors of subsoil users are also obliged to follow the same procurement rules.  Legislation contains detailed regulation of the procurement procedures.  The procedure is very formalistic and a potential provider has to strictly follow it, failing which it may be disqualified.

Over the 25 years of independence in Kazakhstan, there have been significant developments in the economy, legislative reforms, investment climate improvement, which have made and are making Kazakhstan attractive for foreign investors to do business and gain profit. Plenty of foreign legal entities and individuals are launching business in Kazakhstan. To do business, one cannot underestimate the importance of making legally correct agreements between foreign companies/individuals and Kazakhstani entrepreneurs. The critical if not the most critical aspect thereof is the choice of applicable law to an agreement.