Kazakhstan may be missing out on as much as $10 billion in revenues from its oil industry due to the terms of its agreements with transnational corporations, according to local business leaders.
The country’s energy sector operates under so-called Production Sharing Agreements (PSAs). These contracts exempt foreign oil majors from customs duties and environmental taxes, while also allowing them to bypass supplying crude to the domestic market. In contrast, Kazakhstani companies are required to pay the full range of taxes and to sell oil at discounted prices for domestic consumption.
Analysts argue that this arrangement has created a structural imbalance, leaving the state budget heavily reliant on taxes from local producers while limiting the potential fiscal contribution from international partners.
“By some estimates, Kazakhstan loses up to $10 billion in oil production revenues under the current framework,” said Oleg Pak, head of the Entrepreneurs’ Alliance Parasat. He emphasized that the issue raises broader questions about the fairness and sustainability of these deals.
The debate comes at a sensitive time for Kazakhstan, which has been seeking to attract new investment while also addressing public discontent over economic inequality and governance.
