Anti-competitive behaviour

During the reporting period, 34 administrative cases were initiated against organizations from KMG Group of Companies in connection with violations of antimonopoly legislation (all in relation to SDEs).

Out of them: 2 administrative cases were considered in favour of SDEs, 1 administrative case was considered partially in favour of SDE, 31 administrative cases were considered not in favour of SDEs.

Also, the courts considered 2 civil cases related to antimonopoly legislation (court decisions were made in favour of SDEs).

There are no civil cases related to anti-competitive behaviour, violations of antitrust legislation.

Social and economic compliance

There are no civil and administrative cases where the subject of litigation/violations were inconsistencies with legislative and regulatory acts in the field of social and economic regulation, as well as disputes with local communities.

Environmental payments and costs

Environmental costs include payment of taxes for statutory emissions, costs for environmental protection measures, insurance, compensatory measures in the field of environmental protection, investments in the prevention of environmental impact, etc. Investments in the processing of oil waste, starting from the year 2015, increased by 3 times and exceed one third of all expenses on environmental protection. The cost of environmental protection in 2022 amounted to 32.4 billion tenge. The major part of the costs was incurred on the processing of oil waste, the introduction of cleaner technologies and the modernization of treatment facilities.

Compliance with the requirements of environmental legislation

The Company is working to identify inconsistencies with the environmental legislation of the Republic of Kazakhstan at production facilities, identify problematic issues and manage risks to take measures to prevent any inconsistencies with the requirements of the legislation.

This chart shows the amount of penalties claimed and paid.

Dynamics of environmental payments and costs in KMG Group of Companies, billion tenge

Note: The data of 2020 is provided subject to KazakhGas JSC.

Environmental penalties, million tenge

In December 2021, Kazakhoil Aktobe LLP had the penalty imposed for damages in the amount of 5.9 billion tenge, in 2022 the work on making appeals was performed.