The Growing Prominence of Kazakhstan as a Destination for Foreign Direct Investment in the Post-Soviet Space
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- The drastic expansion of Western sanctions and the mass exodus of foreign businesses in the aftermath of President Putin’s invasion of Ukraine sounded the death knell for Western capital in Russia.
- Investors are reassessing their strategies and continue to search for new ways to deploy their capital and alternative investment destinations in the post-Soviet space.
- Kazakhstan, long vying to boost its share of foreign direct investment in the region, is creating incentives for companies relocating to Kazakhstan and is also considering improving the country’s investment protection regime.
- Businesses currently operating in Kazakhstan, and those looking to invest there in the future, should keep an eye on these developments. They should review the existing investment protections and consider the impact of the proposed changes on their operations in the country.
- Businesses should also remain alert to any compliance, regulatory, and sanctions-related risks, especially when entering the market or expanding their operations in Kazakhstan.