Compliance with Law

Anti-Competitive Behaviour

During the reporting period, 8 administrative cases were initiated against KMG Group companies for violations of antimonopoly laws (7 against SDEs and 1 against KMG)

Of these: 2 administrative case was resolved in favour of SDEs and KMG, 4 administrative cases were resolved not in favour of SDEs, and 2 administrative cases are pending.

The courts also considered 2 civil cases related to antimonopoly laws (1 court decision in favour of SDEs, 1 court decision not in favour of SDEs).

There are no civil cases relating to anti-competitive behaviour, anti-trust or monopoly laws violations.

Environmental Payments and Costs

In order to effectively manage environmental risks, the Company is constantly improving approaches to environmental management and allocating the necessary resources for environmental protection.

Environmental costs include taxes on permitted emissions, cost of environmental activities, insurance, compensatory environmental activities, investments to prevent environmental impact, etc. Investments in waste recycling tripled since 2015 and make up over a third of all environmental costs.

Environmental costs in 2023 amounted to KZT 57,7 billion. Most of the costs were spent on recovery (preparation for reuse, recycling, disposal) of historical waste from sludge reservoirs, remediation of oil-contaminated lands (historical pollution), introduction of cleaner technologies and upgrade of treatment facilities to reduce pollutant emissions; development and implementation of an industrial environmental control programme, repair of property, plant and equipment of treatment facilities, technical, organisational activities to reduce pollutant emissions, such as: replacement/installation of filters, burners, use of catalysts, etc.

DYNAMICS OF ENVIRONMENTAL PAYMENTS AND COSTS AT KMG GROUP(KZT bln)

ENVIRONMENTAL LAW COMPLIANCE

The Company is working to identify non-compliances with the environmental law of the Republic of Kazakhstan at its production facilities, identify problems and managing risks in order to take actions for preventing any non-compliances with legislative requirements.

This chart shows the amounts of penalties imposed and paid.

In 2023, Kazakhoil Aktobe LLP challenged in court the KZT 5.9 billion penalty imposed in 2021.