Updated November 16, 2018
Kazakhstan
Political Background
significant human rights violations include the lack of free
History. Kazakhstan is the ninth largest country, by area, in
and fair elections; restrictions on freedoms of expression,
the world. It borders Russia to the north, China to the east,
religion, assembly, and association; and the absence of an
and Turkmenistan, Uzbekistan, and Kyrgyzstan to the
independent judiciary or due process. In 2016, Kazakhstan
south. Previously a republic of the Soviet Union,
drew international attention for large-scale protests against
Kazakhstan gained independence in 1991. Since then,
proposed changes to the country’s Land Code. Protesters,
Kazakhstan’s authoritarian government has introduced
fearing the expropriation of vacant agricultural lands by
significant market reforms, developed the country’s energy
wealthy foreigners, organized in several cities. Government
sector, and worked to diversify the economy. Kazakhstan
officials tried to dissuade the protestors by denying their
remains close to Russia but also has close relations with
petitions to peacefully organize. Police also detained
China and other regional players that balance Moscow’s
activists and journalists. Ultimately, the government did not
influence.
amend the Land Code.
Government. Kazakhstan’s system of government and
Figure 1. Map of Kazakhstan
constitution grant the executive branch extensive power.
The executive controls all branches of government and
exerts influence over state and municipal governments.
Kazakhstan’s president, Nursultan Nazarbayev, has been in
power since independence. Kazakhstan’s legislature is
bicameral. In March 2017, a series of amendments to the
country’s constitution shifted some powers from the
president to the legislature. Observers, however, note that
the president’s power is not blocked by parliament.
Nazarbayev and his family have monopolized the political
system and significant sectors of the economy. Experts
consider corruption to be endemic in both public and
private sectors.
Political Freedom. President Nazarbayev and his party,
Nur Otan (“Light of the Fatherland”), control all levels of

Source: CRS
government. In April 2015, Nazarbayev won a fifth term in
office after officially securing 97.7% of the vote. In March
2016 parliamentary elections, Nur Otan obtained 84 of the
Kazakhstan at a Glance
lower house’s 98 directly elected seats. The Communist
Land area: 2,699,700 sq. km.; equal to the size of Western
People’s Party and Ak Zhol (“Bright Path”), both loyal to
Europe
President Nazarbayev, secured seven seats each. According
to the Organization for Security and Co-operation in Europe
Population (2017): 18.6 million
(OSCE), elections in Kazakhstan do not meet international
Ethnicities: 59% Kazakh, 26% Russian, 3% Ukrainian, 3% Uzbek,
standards of impartiality, integrity, and transparency,
1.5% Uighur, 7.5% Other
particularly at the electoral commission level. Kazakhstan’s
Religion (2009): 70% Muslim, 26% Christian (mainly Russian
constitution limits presidents to two five-year terms, but
Orthodox), 3% Atheist, 1% other
this rule does not apply to President Nazarbayev. The
legislature granted Nazarbayev special executive status in
GDP (2017): $158.2 billion; per capita $8,792
2007 when it approved a constitutional amendment that
Data from World Bank and Kazakh Government
excuses him from the two-term limit. President
Nazarbayev, who is 78 years old, has yet to identify a
successor or unveil a clear transition strategy. Some
Economy
analysts speculate that a power arrangement between the
Kazakhstan is the most economically developed country in
country’s political and business elite is being negotiated to
Central Asia. Its major exports include oil, coal, gas,
avoid major disruptions in the country.
uranium, and wheat. After a period of falling oil prices and
currency devaluation tied to sanctions on Russia,
Human Rights. Kazakhstan has a poor human rights
Kazakhstan’s real GDP growth accelerated from an annual
record, which the government justifies as necessary to
average of slightly above 1% percent in 2015–16 to 3.9% in
preserve political stability. According to the State
2017. This improved economic performance can be
Department, the government actively persecutes political
attributed to greater oil sector output and more favorable
opponents and stifles civil society groups and
terms of trade. However, dependence on oil exports make
nongovernmental organizations. Kazakhstan’s most
the country vulnerable to external shocks.
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Kazakhstan
Energy. Kazakhstan produces more than twice the amount
Increasingly, Kazakhstan has developed close ties with
of energy it consumes domestically, according to the
China, particularly economic ties. In 2017, China was
International Energy Association. In 2016, Kazakhstan was
Kazakhstan’s second largest trade partner (after Russia).
the 10th largest coal producer (and 7th coal exporter) in the
Bilateral trade amounted to $10.5 billion, and Chinese
world. Kazakhstan ranked 16th for crude oil production (12th
companies reportedly own about 25% of the assets in
crude exporter) and 23rd for natural gas production (20th
Kazakhstan’s oil and gas sectors. However, some tensions
natural gas exporter). Kazakhstan’s upstream oil and gas
exist in the bilateral relationship, in part due to resentment
resources attract significant investment from U.S.,
of Chinese migrant laborers in Kazakhstan as well as
European, Russian, and Chinese partners. According to the
reports that China has sent Muslims—including ethnic
International Monetary Fund, oil accounts for more than
Kazakhs—to “reeducation camps” in Xinjiang, a region in
50% of Kazakhstan’s exports and more than 40% of its total
Western China where there has been periodic unrest.
revenues. Oil-related revenues amounted to around 10-12%
of Kazakhstan’s GDP over the last decade.
In 2017, Kazakhstan became one of the rotating non-
permanent members on the UN Security Council. (Its term
Kazakhstan has 12% of the world’s uranium resources, and
lasts for two years.) Kazakhstan also is a member of the
it has led world uranium production since 2009. According
World Trade Organization, the Commonwealth of
to the World Nuclear Association, the country accounted
Independent States, and the Shanghai Co-operation
for 39% of world production in 2016. All of Kazakhstan’s
Organization led by China and Russia.
uranium is exported as of September 2017. However,
Kazakhstan intends to sell value-added fuel rather than just
Terrorism and Security. About 300 Kazakh citizens
uranium. Several international partnerships for fuel
reportedly have fought with the Islamic State in Syria and
fabrication, along with a feasibility study for a reactor, have
Iraq, and the government is concerned about returning
been initiated. In May 2016, Kazakhstan’s state-owned
fighters. In 2016, Kazakhstan experienced two terrorist
nuclear energy company Kazatomprom and China General
attacks that killed 7 civilians and 11 members of the
Nuclear Power Corporation agreed to a joint venture to
country’s security services. At first, the government said
build Kazakhstan’s first fuel fabrication plant.
that the attackers were affiliated with the Islamic State, but
according to later reports, the assailants had little to no
Modernization. President Nazarbayev aims to reduce the
direct contact with the group. After the attacks, the
state’s role in the economy and prioritize non-oil exports
government created a Ministry of Religious Affairs and
through ongoing structural and institutional reforms,
Civil Society to reach out to religious communities and help
including through the “100 Concrete Steps” program
prevent the spread of extremism. Some observers have
launched in 2015 and the Strategic Plan for Development of
criticized the government’s approach, saying that it focuses
Kazakhstan to 2025 adopted in early 2018. Transport and
more on punishment than on prevention. Kazakhstan
logistics development and modernization projects with
participates in the U.S.-led C5+1 regional initiative, which
neighboring countries, mainly aligned with China’s Belt
has a counterterrorism component.
and Road Initiative, continue to be a priority. Transport and
communication services accounted for 10.6% of GDP for
During Operation Enduring Freedom, Kazakhstan granted
the first half of 2018. Nazarbayev also seeks to turn
coalition aircraft overflight rights, and in 2010, it agreed to
Kazakhstan into a regional financial hub with the July 2018
allow NATO to ship supplies through its territory. In 2018,
opening of the Astana International Finance Center and the
the Kazakh government approved an agreement allowing
Astana International Exchange, a joint Chinese project.
the United States to transport non-military supplies through
two Kazakh ports on the Caspian Sea.
Foreign Policy and U.S. Relations
Multi-vector foreign policy. Kazakhstan pursues a “multi-
Nonproliferation and Foreign Assistance. When the
vector” foreign policy, seeking to maintain and develop ties
Soviet Union collapsed in 1991, Kazakhstan had 1,410
with a variety of major powers, including China, Russia,
nuclear warheads on its territory. But by 1995, the country
and the United States. In January 2018, Nazarbayev visited
had turned over its nuclear warheads to Russia. Kazakhstan
Washington, DC, and met with President Donald Trump.
also destroyed nuclear-testing infrastructure at
The two leaders re-affirmed their commitment to a regional
Semipalatinsk. The United States assisted Kazakhstan’s
Trade and Investment Framework Agreement (TIFA) that
denuclearization efforts through the Nunn-Lugar
was signed in 2004. (The TIFA also includes the other four
Cooperative Threat Reduction program.
Central Asian states.) Several commercial deals also were
concluded, involving companies like Boeing, General
For both FY2018 and FY2019, the Senate Appropriations
Electric, and Chevron.
Committee recommended allocating $6.2 million in foreign
assistance for Kazakhstan.
Kazakhstan has close ties with Russia, and the two
countries reportedly are forming a joint air defense
Edward Y. Gracia, Research Assistant
network. However, Kazakhstan remains wary of its
Wil Mackey, Research Assistant
northern neighbor, particularly after Russia’s annexation of
Ukraine’s
Jennifer M. Roscoe, Research Assistant
Crimea region. It also has pushed back against
Moscow’s attempts to make the Russian-led Eurasian
IF10251
Economic Union into more of a political union.
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Kazakhstan


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https://crsreports.congress.gov | IF10251 · VERSION 9 · UPDATED

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