Аstana, Kayakhstan / www.visit-astana.kz
Kazakhstan is at the back of Russia’s pack: Astana may take over the role of the post-Soviet leader, Russian political scientist Ivan Preobrazhensky wrote in his article for German news broadcaster Deutsche Welle, published on August 18, 2015.
In the first half of 2015, Kazakhstan has surpassed Russia's share of GDP per capita. This is one of the key indicators of both the state's and the society's well-being. Moreover, according to forecasts, by the end of the year Kazakhstan will further strengthen its positions. This might mean that Russia may soon become the second, not the first, economy in the former Soviet Union, as we all used to believe, an expert says.
According to the national statistical authorities, the nominal dollar GDP in 2014 was 1.876 trillion in Russia against 212 billion in Kazakhstan. That is, at simple arithmetic calculations, the Russian economy is nine times bigger.
Read alsoRussian ruble plunges to six-month low – RUR 73 per euroThus, Kazakhstan would have to catch up with Russia for a long time. Unless, Russia, itself, is moving backward. It seems that the Kremlin is doing just that. Not content with the falling prices of the main exports - oil and gas - the government has been consistent in driving the country into a trap of sanctions and counter-sanctions.
Only one and a half years have passed since the annexation of Crimea, but Russia's economic growth was replaced by a decline, while the ruble exchange rate is tumbling. In response, more and more businesses withdraw from Russian markets. One of their destinations is Kazakhstan.
Firstly, Kazakhstan’s tax system is more stable than that in Russia. Some experts even believe that it is less burdensome to the taxpayer company. The level of the Kazakh corruption is still "Asian," but Russia's corruption index in 2014 was lower than of Kazakhstan for the first time in many years. The are some advantages of working in Kazakhstan worth to be mentioned, for example, a more modern and dynamic pension system, or the Kazakh currency - tenge, which has consistently demonstrated its greater stability than the Russian ruble since 2008.
Meanwhile, the so-called "head" regional offices of the foreign companies in the former Soviet Union, and often in the Eastern Europe and Central Asia, are still located in Moscow, believed to be best suited for doing business among post-Soviet capital cities. Therefore, multibillion-dollar contracts, not only with Russia, but also with Kazakhstan, Belarus, Moldova, Uzbekistan, and even with Georgia ass through the Russian capiptal more often.
Read alsoRussia destroys more than 250 tonnes of embargoed food in one dayHowever, the situation is gradually changing - and not just because of the food counter-sanctions. Firstly, Moscow ceased to be a comfortable place for international top managers because of the change of the general mood of "ordinary Russians." Secondly, financial transactions are geting more and more difficult to carry out because of the Western sanctions. Many companies are looking for ways around, not only for working with the neighboring countries, but also for doing business in Russia. And Kazakhstan is the most convenient platform for them.
The process of turning Kazakhstan into the most attractive "entry point" to the post-Soviet markets for international corporations has only just begun, but if sanctions against Russia are maintained or enhanced, it may become irreversible.
In a decade, Kazakhstan will be able to compete with Russia for the palm of victory. Especially, if the Russian political leadership continues to slam the national economy and stifle any shoots of economic growth.