Primary Industry of Kazakhstans economy 1.

Industry
The volume indices of manufacture was 103,8% in January - June 2008 to the similar period of the last year. For the accounting period the industrial product was outputed in the established prices for amout of KZT 5336,6 billion. In mining the production was outputed on KZT 3440,9 billion, that 6,7% is higher than the similar period of the last year. The volume of coal mining was 53,9 million tonn and increased by 19,8%, oil and gas condensate 35,6 million tonnes (MMt) (7,1%), gas (natural) 17,3 billion cubic meters (15,6%), copper-zinc ores 2,2 MMt (6,3%), aluminium ores 2,6 MMt (7,0%), manganous ores 1,2 MMt (4,9%). Mining of iron ores decreased on 3,1% and was 11,8 MMt, iron rolled briquettes for 9,8% (3,9 MMt), copper ores for 3,2% (16 MMt). Use of mineral resourses. As of April 1, 2008 the total of objects use of mineral resourses of natural resourses complex was 838, from them hydrocarbonic raw material (HRM) 271, solid minerals (SM) 362 and underground waters (UW) 205. Exploration was carried out on 141 objects (17% from total of objects), extraction on 413 objects (49%), the combined exploration and extraction on 284 objects (34%). Petroleum industry. The volume of export of petroleum for the first half-year of the current year was 30,6 million tons and increased by 0,6%. On pipeline systems: it is exported 13,1 million tons to CPC, 8,1 million tons Atyrau-Samara, 2,8 million tons AtasyAlashonkou, it is exported 4,0 million tons on seaport Aktau, by rail - 2,5 million tons. Gas industry. The volume of gas extraction by the the oil and gas extraction companies on results of January - June 2008 was 17,1 million cubic meters of gas (114,0%). Manufacture of the liquefied hydrocarbonic gas was 733,5 thousand tons (105,5%) on oil and gas processing enterprises in Januar-June 2008. The volume of consumption of natural gas by the industrial, domestic household enterprises and population of the Republic for I half-year 2008 was 4 870,6 million cubic meters (110,9%). For January - June 2008 the gas traffic through the territory of the Republic was in volume 48 883,9 million cubic meters, (98,2%), including: Russian - 23 709,1 million cubic meters (99%), Turkmen - 22 074,9 million cubic meters (104,1%), Uzbek - 3 099,9 million cubic meters (66,9%). The volume of gas export from the Republic for January - June 2008 was 2 575,0 million cubic meters (125,9%), including: Karachaganak gas - 964,6 million cubic meters (106,7%), LTD Tengizshevroil - 767,0 million cubic meters (69,3%), OJSC Tolkynneftgas - 843,4 million cubic meters (124,7%). In view of carried out cativities on gasrecovery the volume of flared gas burnt shall be decreased on 34,9% in comparison with the similar period of the last year and shall be 0,8 billion cubic meters. Electric power industry. Commissioning of transmission facilities Northern Kazakhstan - Aktobe region and first section YUK GRESS Shu, second transmission facilities of transit Northern - Southern of Kazakhstan was carried out in 2008. As a result of energy, export oriented metallurgical and mining industry saving at the end of 2008, reserves of capacity are available. The steady tendency of growth of manufacture and current consumption proceeded in the first half-year 2008: manufacture of electric power was 41,6 billion kWh (107,1%), current consumption was 41,4 billion kWh (108,4%). Nuclear industry. The total amount of uranium exploitation by the enterprises of JSC NAC Kazatomprom for 2008 was 8 500,5 tons or 128% concerning 2007.

The total amount of manufacture of uranium oxide concentrate was 8 310 tons, growth was 33% by 2007. The factory on manufacture and output of high capacity tantalum powders in frameworks of the breakthrogh project of JSC NAC Kazatomprom on tantalic manufacture of JSC UMZ was open in 2008. Development of output of new kind of production tantalum powders in capacity above 80 thousand mkl\g expands export opportunities of the JSC UMZ and in the long term can result in development of condensator construction in the Republic. Construction of electric systems and substations for power supply of uranium exploitation enterprises in Soth -Kazakhstan and Kyzylorda region of the Republic was completed. Uranium exploitation was 3 797 tons and increased by 26,4%. Development of new deposits was begun. On affinaging factories it was made 3568 tons of uranium oxide concentrate (103% from plan figures). 1 242,4 tons of uranium production (118% from the plan) was made on JSC Ulbinckyi metal plant. Uranium mine LTD Karatau was comissioned. In manufacturing. In January - June 2008 production was outputed on KZT 1623,2 billion, that on 0,7% is less, than in the similar period of the last year. Decrease of volume indices in branch was connected to outputs faaldown in pulp and paper industry and publishing for 1,7%, treatment of wood and manufacture of wood products for 4,4%, machine building for 2,6%, and also other nonmetallic mineral products - on 24,9%. Manufacture of foods products, including beverages on KZT 316,6 billion, that on 1,6% exceeds a similar level of the last year. Manufacture of meat and edible offal (4,8%), sausages (9,3%), meal (2,6%), bread (4,9%), macaroni (6,5%), coffee and tea (6,5%), sugar (51,6%) increased. For the period January - June of the current year manufacture of coke, refined petroleum products and nuclear materials increased for 6,6% (KZT 119,6 billion). The output of reduced fuel oil for 34,9% (1,6 million tons) and diesel fuel for 4,6% (2,3 million tons) was increased. It is made 196,4 thousand tons of kerosene, that for 18,2% below than similar period of the last year, manufacture of gasoline was reduced to 2,2% and was 1,3 million tons. The volume indices was 100,1% in metallurgy industry in January - June 2008 to a level of January - June 2007. In ferrous metallurgy production was outputed on KZT 337,5 billion, that on 0,8% below than similar period of the last year. The output of flat rolled products to 4,8%, the zinced rolled products for 4,1%, tin plate and flat products for 6,2% was reduced in comparison with the similar period of the last year. Manufacture of crude steel was increased for 0,8% and ferroalloys for 2,5%. In nonferrous metallurgy the volumes of manufacture reduced to 0,9% (KZT 347,2 billion). Output of refined cooper was decreased for 11,3%, affined silver for 15,3%, zinc for 1,3%. Manufacture of affined and unwroad gold (8,8%), alumina (10,9%) was increased. Textile and a clothing industry. Cotton is the raw-material base of the Kazakhstani cotton textile industry. In 2006 total harvesting of raw cotton in the country was 455 thousand tons. Cotton received in Kazakhstan concerns to midial fibrous kinds of cotton fibre. The basic volume of outputed ginned cotton -more than 80% - is focused on export. N.Sarybaev informed that the rest volume was used by such textile enterprises as LTD Kazakh Russian Textile Aliance, JSC "Melange", JSC "Utex", LTD "Nimex Textile". The Kazakhstan's textile industry was submitted basically by the enterprises constructed during Soviet Union. Several new enterprises invested in modernization of the existing and construction of new textile manufactures work in the Soth -Kazakhstan region. LTD Kazakh Russian Textile Aliance - joint venture which includes Kazakhstan cotton company "Myrzakent" and Russian corporation "Russian Textile" - the largest branch textile holding of Russia. The project capacity is planned at a level 15 million sq. meters of fabric per one year. JSC "Utex", - the enterprise for processing of ginned cotton, its scheduled capacity is about 6 thousand tons of cotton yarn for one year which goes for sale to Russia, Ukraine and to local market. JSC "Melange"- the integrated factory which is manufacturing yarn with use of local raw material. Capacity of the enterprise is an average of 5 thousand tons of yarn per one year. Also

the enterprise manufactures domestic textiles. Production is sold over Kazakhstan, Russia, Turkey. LTD "Nimex Textile"- textile factory processing 12 thousand tons of cotton fibre per year. Production is cotton yarn and fabrics. Food processing industry. The volume of manufacture of processing products for 9 months of the current year in monetary terms was KZT 530,1 billion, that on 2,5% more, than for 2007. Manufacture of sausages in 2008 was 28 180 tons in comparison with 2007 (28 180 tons) there was a growth for 6%. The volume of manufacture of canned meat and vegetable meat decreased for 4%, having been 5 045 tons (in 2007 - 5 279 tons). In 2007 export of sausages was failed. In 2008 it was 13 tons. Export of canned meat and vegetable meat increased in 11,1 times (274 in comparison with 25 tons in 2007). Import of sausages essentially increased for 27% in 2008 in comparison with 2007. Its volume in 2008 - 28 405 tons (in 2007 - 22 492 tons). Import of canned meat and vegetable meat grew for 10% (5 381 tons in 2008 in comparison with 4 870 tons in 2007). Internal consumption of sausages in 2007 - 60 672 tons, in 2008 - 68 895 tons, canned meat and vegetable meat in 2007 - 10 125 tons, in 2008 - 10 152 tons. Chemical industry. The volume of output of the chemical industry was KZT 110,8 billion, the volume indices - 110,4%. Positive dynamics of growth of the chemical industry is observed at this time. But, in opinion of experts, statistical growth was caused, first of all, by manufacture of such production as polymers and pesticides. The similar condition of branch is consequence of stop in due time of some chemical enterprises and weak competitiveness of production. The project of the resolution of the Government on approval of action plan on development of chemical industry for 2009-2015 - so-called "motoring map" was developed. The total amount of investments in chemical branch till 2015 will make more than nine billions dollars. Nine projects of such enterprises, as LTD "Kazfosfat", LTD "Kazazot", LTD "Kazsoda", JSC "Caustic", LTD "Mining company "Kazakhstan mineral resources" and LTD "Eurochimudobrenie" were submitted for realization.

2. Agriculture
The agriculture is the important sector of national economy. In the north Kazakhstan the climatic conditions favour to cultivation of spring wheat, oat and other grain products, and also allow to develop vegetable growing, melon growing and cultivate a number of industrial crops sunflower, crown flax, tobacco etc. Cotton plant, sugar beet, yellow tabacco, rice produces high crops, gardens and vineyards fruited in the south of the republic, in the foothill strip and in valleys of rivers where it is a lot of heat, at an artificial irrigation. Kazakhstan takes the third place in the CIS after Russia and Ukraine on manufacture of grain. Kazakhstan's environmenal conditions, their variety cause significant potential opportunities for development of animal husbandry. Sheep breeding, horse breeding, camel breeding, stock -rearing are developed traditionally in the Republic. Deserted and semidesertic territories in the central and southwest parts of Kazakhstan are widely used as seasonal pastures for cattle. Mountain meadows in the east and southest of republic are used as summer pastures . The volume of gross output of agriculture for 6 months 2008 was KZT 289,8 billion, that for 4,2% more than in the appropriate period of 2007, including production of animal breedings KZT 278,7 billion, plant growing KZT 11,1 billion. Plant growing Structure of sown areas. On the operative data of regional departments of agriculture in 2008 the grains are placed on the area 16,1 million ha, contra 15,4 million ha in 2007, from them the area of wheat was 13,6 million ha, that is higher than a level of 2007 on 0,7 million ha. The share of wheat structure of sown areas was 68,4% contra 68,1% in 2007.

Grain market. In the first half-year 2008 on republic 11867,3 thousand tons of grain were used up . Including 4010,3 thousand tons were shipped for export, flor was exported in an equivalent on grain 1099,1 thousand tons (flour - 769,4 thousand tons). The use of grain for internal consumption was 6757,9 thousand tons, of them for food needs - 3002,0 thousand tons, on the fodder and seed purposes accordingly 1597,0 and 1992,2 thousand tons, for industrial processing - 166,7 thousand tons. In comparison with the appropriate period of the last year the volume of export of grain increased for 162,4 thousand tons, flour - for 0,6 thousand tons. As of July 1, 2008 on the republic 2540,6 thousand tons of grain were available, that on 247,1 thousand tons or for 8,9% less than level of the appropriate period of the last year. Including: food grain 2115,2 thousand tons, fodder grain 412,2 thousand tons, seed grain 13,2 thousand tons. From the specified volume, grain of the state resources is 650,7 thousand tons. Kazakhstan became as one of the basic suppliers of wheat to the foreign market that has entailed increase of the prices for grain in the Kazakhstan market. So, according to the date of the Custom Control Committee of the Ministry of Finance of the Republic of Kazakhstan in January of the current year the price for 1 ton of wheat realized for export was $ 269,0 dollars, in February $274,7 dollars, in March $317,9 dollars, in April $ 331,2 dollars, on the average for the first half-year $293,6 dollars. Technical policy At present time there are 155305 caterpillar and wheel tractors, 91303 seeders, 1869 sowing complexes, 315985 soil-cultivating machines, 80722 tractor trailers, 49766 lorries and other agricultural machinery in the Republic. 2925 units of agricultural machinery were acquired for the first half-year 200, from them the basic kinds: tractors 866 units, combine harvesters 315 units, seeders 377 units, sowing complexes 360 units, harvesters 53 units. The industrial potential of regions of republic is submitted by 122 machine-building enterprises, from them 52 enterprises manufacture harvesters, seeders, soil-cultivating instruments (cultivators, parers, ploughs, harrows), and also instruments for preparation of forages, machines for protection of plants (sprayers, seed disinfectants) and other agricultural machines, equipment and spare parts, others 70 - are engaged in repair - regenerative works, and also under orders of agriculture goods producers have an opportunity to make spare parts to agricultural machinery. 15 enterprises are manufacturers of end production. In the first half-year 2008 the volume of manufacture of agricultural machinery and spare parts was KZT 2,1 billion, volume of realization of agricultural machines and spare parts on the home market KZT 1,8 billion, export KZT 0,3 billion. Animal husbandry. In branch of animal husbandry stable growth of number of livestock and poultry and production of animal husbandry products was observed. The number of livestock increased -for 3,3% and was 7160,3 thousand heads, accordingly sheep and goats for -4,9% and 21244,8 thousand heads, pigs for - 5,8% and 2002,3 thousand heads, horses for - 5,2% and 1554,6 thousand heads, camels for -4,9% and 159,6 thousand heads, birds for -1,2% and 32193,2 thousand heads as of July 1, 2008 in comparison with the similar period of the last year. Production of meat (in alive weight) for 4,0% increased and was 651,0 thousand tons, accordingly milk for 4,4% and 2612,1 thousand tons, eggs for 7,6% and 1393,7 million pieces, wool for 4,2% and 29 thousand tons in all types of farm . Producrivity of livestock and poultry increased in all types of farm : the average milk yield for 1 cow increased - for 5,4% and was 1170 kg, average litter of eggs for 1 laying chicken for 4,0% and was 103 pieces, average wool production for on 1 sheep remained at level of the last year and was 2,5 kg. The litter for 100 dams increased: calf - for 1 head also was 83 heads, pigs - on 36 heads (763 heads), growing horses - on 1 head (82 heads), lambs and kids, colts - remained at a level of the last year and was accordingly 99 and 46 heads.

Agro-processing. In 2008 production of branches of processing of agricultural raw materials for the amount of KZT 316,6 billion or for 29,8% more in comparison with the similar period of 2007 (KZT 243,8 billion) was outputed. The growth of production of sausages for 9,3%, dry milk for 12,2%, groats for 29,7%, processed rice for 28,9%, macaroni products for 6,5%, white sugar for 51,6%, canned vegetable for 3,5%, cookies for 4,2%, margarine for 5,6% was showed for six months 2008 in comparison with the appropriate period of 2007. The volumes of production of canned meat and vegetable meat for 26,6%, processed milk for 7,6%, oils creamy for 16,6%, cheese and cottage cheese for 5%, milk condensed for 20,6%, oils vegetative for 24,7%, fruit juices for 14,9%, canned food fruit for 62,9%, canned food tomato for 43,9% decreased. For five months 2008 the export of products of processing of agricultural raw materials was carried out basically in the CIS countries. The export of flour was 670,0 thousand tons including: to Uzbekistan (37,7%), Tadjikistan (27,3%), Afghanistan (27,1%); macaroni 4 382,2 tons to Russia (34,5%), Kirghizstan (23,5%), Georgia (15%); rice 25 419,2 tons to Russia (72%), Ukraine (13%), Byelorussia (5,7%); vegetable oil 2 967 tons to Kirghizstan (61%), Tadjikistan (20%), Uzbekistan (13%). Fishery. With a view of reproduction of fish resources in the second quarter 2008 by the jurisdictional enterprises of fish reproduction purposes are carried out the current works on execution of the state order in volume 167,5 million pieces of fish hanging material.

3. Construction
In January - June of the current year the volume of construction work was KZT 657,3 billion, that for 10,7% there is more than level of January - June 2007. The greatest densities in republican volume were occupied by the construction work executed by the private building organizations 71,8% , foreign contractors executed 27,6%, state 0,6%. In structure of the executed works the greatest share (58,4% from total amount) was works on erection of buildings and civil construction (in January - June 2007 of 49,1%). In January - June of the current year 14888 buildings were constructed, from which 13135 inhabited and 1753 uninhabited assignments. By quantity of the put into operation objects of uninhabited assignment the greatest number fell to branch of trade 689, and also on transport and communication 571 objects. In sphere of education and public health services 35 objects were put into operation, including 5 comprehensive school, 4 preschool establishments, 25 out-patient - polyclinic establishments. Housing construction. In January - June of the current year KZT 238,8 billion was aimed for housing construction, that on 5,1% more, than in the similar period of the last year. The State housing development programme in the Republic of Kazakhstan for 2008-2010 was approved by the Decree of the President of the Republic of Kazakhstan dated August 20, 2007 383. According to the State Programme for three years it was provided to commission 26,1 million sq. meters of the total area of habitation due to all sources of financing, including in 2008 - 8,163 million sq. meters. On the preliminary data of Akimat, cities of Astana, Almaty for January-June 2008 it was put into operation of 2870,1 thousand sq. meters of the total area of apartment houses that makes 94,3% by January - June 2007. 1855 thousand sq. meters were constructed due to means of the population, or 61% from total amount of commission of habitation in the Republic. Expected commission of commercial habitation is 957,6 thousand sq. meters. Under information Akimat, cities of Astana, Almaty there was not commission of rent habitation for January- June 2008.

Introduction into operation 8,2 million in sq.m. of the total area of habitation was provided due to all sources of financing, including in 3 quarter 2008 is predicted toput into operation 6,2 million sq. meters within the framework of the State housing development programme in the Republic of Kazakhstan for 2008-2010 years in 2008. Development of the construction materials industry Production of the construction materials industry in total amount of industrial production of the Republic occupies more than 4%. At the enterprises of branch, Cement, slate, asbestos cement pipes, soft roofing materials, linoleum, sanitary - building faience, facing ceramic tiles were made for floors and furnish of buildings, the panel and other designs for large-panel housing construction, kaolin for paper industry, radiators, heat convector and a number of other kinds of building materials and designs. The republic has sufficient stocks of various raw material for output of building materials. Besides wide application is found with waste products of the industry in their manufacture: slags of metallurgical and chemical manufactures, ashes of thermal power stations and other secondary resources.

4. Transport
The geographic location of Kazakhstan in the centre of the Euroasian continent predetermines its significant transport potential in the field of transit transportations. Extent of overland transport highways of the Republic is 106 thousand kms. From them 13,5 thousand kms - main railways, 87,4 thousand kms - automobile general purpose highways with firm covering, 4 thousand kms. - river ways. Construction of boundary railway transition Druzhba Alashonkou between Kazakhstan and China and opening of railway transition Serax - Meshed between Turkmenistan and Iran was opened with new transit corridors on route of the Great silk way: from Pacific ports of China - Lyanyungan, Tsindao, Tyanszin - to Kazakhstan, Kirghizstan, Uzbekistan, Turkmenistan, Iran, Turkey, to ports of the Mediterranean and Persian gulf. Today on all this way at full speed there are cargoes. The available network of motorways gives an exit to Russia and former union republics, and also to China, Turkey and Iran that provides an exit to ports of the Black and Mediterranean seas and Indian ocean. Sea navigation is carried out on Caspian sea (port Aktau) with an exit to the river ways of Russia on Black and Baltic sea. By national airline "Air Kazakhstan" mastered more than 40 routes over Kazakhstan, CIS countries and non- CIS countries. Also leading foreign companies work in the republic, such as: British Airways, Lufthansa, KLM, Transaero, PIA, Turkish Airlines, Iran Air etc. For January-June 2008 the cargo turnover qas 176,4 billion tkm, that for 7,6% more than cargo turnover of January - June 2007. The rail freight turnover was 105,61 billion tkm, that 11,5% higher than January - June 2007, motor transport - 25,7 billion tkm, (0,1%), main pipelines - 44,8 billion tkm (3,3%), river transport - 22,7 billion tkm (9,3%), air transport - 30,6 billion tkm (-13,2%). From the total amount of cargo turnover transportation of petroleum was 22,2 billion tkm and increased for 6,6%, gas - 22,7 billion tkm (0,3%). The passenger turnover in January - June 2008 increased for 2,2% and was 56.5 billion tkm, including a passenger turnover of buses - for 4,1%, taxi - for 1,7%, air transport - for 16,8%. Decrease of passenger turnover of railway transportation was 9,2%, trolley buses - 33,6%, trams - 18,0%. Railway transportation. The inventory park of freight cars is 60, 7 thousand units, from them working park 45, 5 thousand units, non-working 15, 2 thousand units. In structure of inventory park of gandola waggons 25 315 units, covered 9 393 units, tanks 7 971 units, platforms 7 020 units, grain carriers 5 236 units, isothermical 79 units, fitting 1 742 units, other cars 3 193 units. Actions for modernization of locomotives with installation a diesel engine - generating installations werecarried out, from them 324 complete sets were installated on 162 units of main diesel locomotives of a series 2 TE10 and put into operation. Road branch. Construction and reconstruction of roads. In the current year works on 10 passing objects were carried out: "Astana Schushinck" of km 7-230, " Schushinck -

Kokshetau" km 240-280,8, "Samara - Chymkent" 408-526, 1025-1240, "Astana - KostanaiChelyabinsk" of km 963-1200, "Chundja Koljat" km 50-163, Taskesken Bakhti km 100133, 152-183, "Omsk Pavlodar -Maykapshgai" 191-309, Southern bypast of Astana, "Atyrau -Beineu" km 0-332,6. Works on reconstruction are carried out on 1 160 kms. Under all projects it was executed: excavations - 1504 thousand m3, binding course - 118,3 kms, foundation - 93,5 kms, top dressing from black rubble - 64,2 kms, 486,6 thousand tons of bituminous cocrete surface were stacked, including the base course - 163,2 kms (285,9 thousand tons), top dressing 177,5 kms (216,3 thousand tg). Work on 23 objects from which passing 12 objects and to execute repair of motorways of 79 kms and 7 bridges is planned in 2008. Civil aircraft. 83 enterprises carry out its activity in Kazakhstan, including 60 airlines, 22 airports and RSE "Kazaeronavigation" carrying out aeronavigation service in air space of the Republic of Kazakhstan. The basic air carrier is the JSC Air Astana, carrying out regular transportations. On the preliminary data 1,07 million passengers was transported for the first half-year 2008, that for 19% more than 2007. Number of park of aircrafts - 20 units. The factor of passenger loading on flights of airline for the first half-year 2008 was 63%. Water transport. 5 123,7 million tons transferred for the first half-year 2008 through seaports Aktau and Bautino or at a level of similar period of last year. The navigable company "Kazmortransplot" transported 2 946 thousand tons through seaports of cargoes from the total amount. 446 thousand tons were transported by river transport for six months of the current year that is 109% to a level of the similar period of 2007. The basic kinds of cargoes were building materials, wood, coal, fish products and oversized equipment. The volume of transportations of passengers by river transport for the accounting period was 106,9 thousand person, that in 5 times exceed semi-annual parameters of 2007.

5. Banks and financial services

Parameters of financial market. Bank sector. 35 banks of the second level, 373 branches and 2 120 cash settlement cas departments of banks work in Kazakhstan as of June 1, 2008. The size of the banks cumulative settlement equity capital of the second level increased from the beginning of 2008 for KZT 113,3 billion (6,4%) and was KZT1 893,5 billion as of June, 1, 2008. Thus, the capital of the first level increased for 18,2% up to KZT 1 517,9 billion, the capital of the second level decreased for 21,5% up to KZT438,9 billion. Contributions of legal persons and individuals increased from the beginning of 2008 for KZT 394,7 billion or for 6,1% and KZT 6 818,7 billion was for June, 1, 2008. From the beginning of year contributions of individuals grew for 3,1% or for KZT 45,2 billion. Contributions of legal persons increased for 15,5% or for KZT 379,3 billion. Insurance market. 43 insurance organizations carried out the licensed activity in the insurance market of the Republic of Kazakhstan as of June, 1, 2008 (including: 8 - on life insurance), 12 insurance brokers and 49 actuaries. 32 insurance organizations were the participant of the JSC Insurance Payments warranting Fund for accounting date. The cumulative size of the equity capital of the insurance organizations was KZT 148,2 billion as of June, 1, 2008 . The cumulative volume of actives of the insurance organizations was KZT 266 491,1 million for June 1, 2008, that for 74,9% more than a similar parameter for June 1, 2007, including: The sum of obligations of the insurance organizations was KZT 118 327,1 million as of June, 1, 2008, that on 95,0% more, than for similar date of the last year.

The volume of the insurance reserves formed by the insurance (reinsurance) organizations for ensurance of execution of undertaking obligations under working contracts of insurance and reinsurance, was KZT 101 439,2 million for accounting date, that for 99,3% more than volume of the formed reserves for June, 1, 2007. The increase of a level of concentration of the insurance market under insurance premiums and insurance payments was observed in the considered period. On a share of 5 largest insurance companies it is necessary 46,4% of cumulative insurance premiums and 62,1% of insurance payments. The share of five largest insurance companies in cumulative actives of the insurance market was 52,6%. Not bank sector. 35 organizations which are carrying out separate kinds of bank operations, including 12 hypothecary organizations functioned in the republic as of June, 1, 2008. As of June, 1, 2008 the cumulative size of assets of the hypothecary organizations was KZT 209 992,4 million, having decreased for May on 0,07% (KZT 145,0 million), thus decrease from the beginning of the current year was 2,8% (KZT 6 142,7 million). Loans to legal persons and individuals is significant share - 76,5% (KZT 160 557,8 million) in the total amout of assets of the hypothecary organizations whereas on the contributions placed in other banks it is necessary 3,9% (KZT 8 203,2 million), on securities 4,9% (KZT 10 304,8 million), correspondent accounts in banks 5,5% (KZT 11 646,1 million). As of June, 1 of the current year the cumulative loan portfolio of the hypothecary organizations was KZT 169 085,4 million, having decreased for May on 1,8%, thus decrease from the beginning of 2008 was 6,3% ( KZT 11 291,7 million). The cumulative size of obligations of the hypothecary organizations in comparison with the date for January 1, 2008 decreased on KZT 11 627,7 million or on 6,8% and as of June 1, 2008 was KZT 159 940,0 million. The outstanding (48,9%) and loans received from other banks (32,9%) prevail in structure of obligations of the hypothecary organizations. For June, 1, 2008 the hypothecary organizations received the cumulative net profit after payment of income tax on the amount of KZT 47,6 million, that on 97,3% less, than for June, 1 of the last year. The cumulative size of income for accounting date was KZT 14 439,4 million (for June 1, 2007 KZT 10 185,6 million), expenditure KZT 14 391,8 million (for June, 1, 2007 KZT KZT 8 421,7 million). Accumulating pension system. 14 accumulating pension funds (further Funds) function in the republic as of June 1, 2008. The quantity of individual pension accounts of investors (addressees) on obligatory pension payments was 9 349 986 with the total amount of pension accumulation KZT 1 341,8 billion. For January - May of the current year the quantity of accounts of the investors, transferring obligatory pension payments increased on 126 274 or 1,37%, including for May 27 054 (0,29%). The quantity of accounts of investors (addressees) on voluntary pension payments decreased for May on 12 (0,03%), was for June 1, 2008 41 248 with the total amount of pension accumulation KZT 877,9 million. Accounts of investors on voluntary pension payments had all funds. For June 1, 2008 pension accumulation of investors (addressees) was KZT 1 346,8 billion or increased in comparison with January, 1 of the current year on KZT 138,7 billion or 11,48%. The sum of the profit of investment of the pension assets, enlisted on accounts of investors and addresses for June 1, 2008 was KZT 386,8 billion. Pension payments and transitions to the insurance organizations from funds as of June 1, 2008 was KZT 76,4 billion or increased in comparison with May, 1 of the current year on 2,2 billion (3,00%). The funds carry out pension payments to addresses on the total amount of KZT 13,3 billion, at KZT 6,5 billion, the carried out pension payments in the appropriate period of 2007, or more than in 2 times in January - May 2008.

6. Trade and external economic activity

Internal trade. In January - June 2008 the volume of retail commodity circulation was KZT 1083,2 billion and increased in comparison with the appropriate period of the last year on 2,1%. Sale of consumer goods per capita in the republic was on the average KZT 69,4 thousand, that KZT 10,2 thousand higher than the similar period of 2007. The significant share belongs to public sector in formation of volume of retail commodity circulation. From the beginning of year the revolution on realization of goods by the enterprises with the private pattern of ownership, individual businessmen and in the marketswas received on the amount of 1051,5 billion tenge (97,1%), the enterprises of other states, their legal persons and citizens - KZT 31,5 billion (2,9%). Wholesale commodity circulation of the republic for January - June of the current year was KZT 2453,9 billion or on 6,7% less, than for the appropriate period of 2007. The volume of services of public catering for January - June 2008 was KZT 47,4 billion or on 9,3% more, than for the appropriate period of 2007. External trade. The external trade turnover of the Republic of Kazakhstan in January June 2008 was $ 52,1 billion and in comparison with January - July 2007 export - $ 35,0 billion increased on 42,5%, including, import - $17,1 billion increased on 60,7%, increased on 15,5%. In January - May of the curent year. The share of the CIS countries on total amount of export for the analyzed period was 16,2% (in January - May 2007 16,5%), import deliveries 48% (in January - May 2007 42,9%). Densities of mineral products in total amount of export to the CIS states in January - May 2008 was 53% (in January - May 2007 49%), foodstuff 13% (12%), chemical production 10% (16%). The share of machines, equipment, vehicles, devices and apparatus in volume of import from the CIS countries in January - May 2008 was 24% (in January - May 2007 25%), mineral products 34% (27%), metallurgical production 15% (18%), chemical goods 8% (10%). Densities of mineral raw material in total amount of export to other countries of the world in January - May 2008 was 77% (in January - May 2007 73%), production of iron and steel industry 14% (18%). The share of machines, equipment, vehicles, devices and apparatu in volume of import from other countries of the world in January - May 2008 was 58% (in January - May 2007 63%), foodstuff 6% (5%), chemical production 14% (12%), production of iron and steel industry 12% (11%). The entry of Republic of Kazakhstan into the World Trade Organization. February 13, 2008 in Astana the Minutes on end of bilateral negotiations between Kazakhstan and Canada was signed within the framework of the entering of Kazakhstan into the World trade organization. Negotiations with USA on samples of veterinary certificates on cattle-breeding production for export of American production to Kazakhstan were completed. In the third quarter 2008 realization of procedures of inspection of the American enterprises delivering agricultural production to Kazakhstan and seminars on system of the veterinary control in USA was planned by the Kazakhstan veterinaries. On results of negotiations with the European Union the essential progress on the majority of the questions connected to access on the Kazakhstan market of services was achieved. For end of bilateral negotiations it was necessary to coordinate the staying key questions connected to access on the markets of telecommunication, financial and power services of Kazakhstan. On the staying problem questions of Kazakhstan and the EU plan to find decisions acceptable to both parties up to the end of 2008.