BAKU, Azerbaijan, Sept. 9
By Nargiz Sadikhova - Trend:
Kazakhstan has made meaningful progress in the implementation of the Extractive Industries Transparency Initiative (EITI) Standard, an EITI spokesperson told Trend in a written statement.
Kazakhstan joined the EITI in 2007. By implementing the EITI Standard, countries commit to publishing information on the extractive sector in line with the EITI Standard.
“The EITI Standard was last revised in 2019. It is a benchmark for transparency in the extractive sector, covering the publication of information across the extractive industry value chain – from how extraction rights are awarded, to how revenues from the sector benefit the public. Validation is the methodology used by the EITI to assess compliance with the EITI Standard”, said the EITI in a written interview with Trend.
The EITI noted that Kazakhstan’s second Validation under the EITI Standard was completed in April 2020, when the EITI Board agreed that Kazakhstan had made meaningful progress in implementation, with considerable improvements.
“Three of the ten corrective actions from the country’s first Validation had been addressed. The assessment further highlighted the progress made on improving transparency in extractive license information and on expanding the scope of EITI reporting to issues of national concern, including local content, social investments, and the transportation of oil and gas.”
One of the most substantial gaps identified through the validation was on the transparency of state-owned enterprises (SOEs).
“The EITI Standard requires implementing countries to publish analysis of the rules and practices relating to the financial relations of SOEs with the state, and to disclose barter-type arrangements such as pre-financing agreements, transport revenues, and quasi-fiscal expenditures,” the EITI noted.
The EITI Board decision referenced the need for further efforts to clarify financial relations between the Kazakh government and state-owned companies, which play important roles in the extractive industries.
“Greater transparency around production data and social expenditures were also highlighted as weaknesses in the assessment,” said the organization.
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