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The Japan Bank for International Cooperation (JBIC) has signed a cooperation agreement with KazMunayGas (KMG), a state-owned oil and gas company in Kazakhstan. This is the first comprehensive cooperation agreement that JBIC has signed with a foreign oil and natural gas company.
The purpose of the agreement is to increase trade between Japan and Kazakhstan and promote Japanese investment in natural resource projects in Kazakhstan by exchanging information on projects related to the development of these resources.

Kazakhstan, after Russia, is the second largest resources producer among CIS countries (the former republics of the Soviet Union, excluding the three Baltic countries) and has abundant supplies of natural resources, including oil and gas. In recent years, the country’s economy has seen remarkable growth mainly due to developments in the oil and gas sectors. Playing the lead role in oil and gas development in Kazakhstan, KMG intends to actively implement infrastructure development, such as the construction of natural gas pipelines, as part of its efforts to expand business activities.

In light of this, Japanese firms are showing growing interest in Kazakhstan as a destination for their exports and direct investments.

JBIC has already been active in Kazakhstan. In 2004, it provided an export credit line to two commercial banks in Kazakhstan (Kazkommertsbank and Bank TuranAlem) to finance imports of machines and equipment from Japan. Taking advantage of the signing of this agreement, JBIC intends to enhance its support for Japanese firms’ exports and direct investments in Kazakhstan by proactively examining the provision of loans for Kazakh firms, including KMG.