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Subject
Kazakhstan's drive for foreign investment.
Significance
Tengizchevroil, the consortium that operates the giant Tengiz field in western Kazakhstan, announced a 38.6-billion-dollar investment in oilfield expansion in June. The announcement contrasts with delays and legal disputes at two other major fields, and comes as a lift to Kazakhstan, which is suffering from lower oil revenues and reduced trade with Russia and China.
Impacts
Despite attempts to diversify, most FDI will go into oil and gas projects.
Lower growth in China and recession in Russia will exert downward pressure on investment.
China is likely to dominate future FDI.
Credit and exchange rate risk caused by tenge volatility may rein in investor enthusiasm.
Keywords:
Kazakhstan,
RUCIS,
Central Asia,
China,
Russia,
economy,
industry,
capital flows,
foreign investment,
gas,
growth,
hard commodities,
investment,
oil,
government,
legislation,
natural resources,
protest
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2016
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