ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of March 3, 2009 No. 238

About approval of Rules of pricing in the controlled markets

According to Item 1 of article 7-2 of the Law of the Republic of Kazakhstan of July 9, 1998 "About natural monopolies and the controlled markets" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of pricing in the controlled markets.

2. Recognize invalid:

1) the order of the Government of the Republic of Kazakhstan of December 25, 2007 No. 1286 "About approval of Rules of pricing on goods (works, services) the subjects of the market holding the dominating (exclusive) position in the goods markets in the field of rail transport electro-and heat-and-power engineeering, oil transportation, oil products and gas, civil aviation, port activities, telecommunications and mail service" (SAPP of the Republic of Kazakhstan, 2007, No. 48, the Art. 589);

2) the order of the Government of the Republic of Kazakhstan of January 16, 2008 No. 18 "About approval of Rules of pricing on the goods (works, services) included in the nomenclature established by the Government of the Republic of Kazakhstan" (SAPP of the Republic of Kazakhstan, 2008, No. 1, the Art. 11).

3. This resolution becomes effective from the date of the first official publication.

Approved by the Order of the Government of the Republic of Kazakhstan of March 3, 2009 No. 238

Rules of pricing in the controlled markets

1. General provisions

1. These rules of pricing in the controlled markets (further - Rules) are developed according to the Law of the Republic of Kazakhstan of June 9, 1998 "About natural monopolies and the controlled markets" (further - the Law) for the purpose of non-admission of unreasonable increase in prices and determine procedure for pricing in the controlled markets.

2. In Rules the following concepts are applied:

1) pricing - process of forming and consideration of goods prices (work, service) and products, goods and services included in the nomenclature established by the Government of the Republic of Kazakhstan of subjects of the controlled market;

1-1) selling prices - the goods price (works, services) applied by the subject of the controlled market to its production and (or) realization;

1-2) fuel collections - the collection levied by airline for the purpose of compensation of growth of costs for aviation fuel during action of rate for transportation when which calculating to consider this growth were not represented possible;

2) exclusively made goods (works, services) - goods (works, services) on production (rendering) of which, subjects of the controlled market hold the dominating or monopoly position in the corresponding goods market;

3) reasonable price - the price determined based on reasonable costs and profit of the subject of the controlled market, according to the procedure determined by these rules;

4) cost - set of the costs considered by authorized body in the price of exclusively made goods (work, service) and (or) of products, goods and services included in the nomenclature established by the Government of the Republic of Kazakhstan;

5) the controlled markets - the goods markets in which according to the Law state regulation of the prices for subjects of the controlled market is entered;

6) the subject of the controlled market (further - the Subject) - the individual entrepreneur or the legal entity, (except for subjects of natural, state monopoly and the power making organizations):

included in the State register of the subjects of the market holding the dominating or monopoly position in the controlled markets;

the selling products, goods and services included in the nomenclature established by the Government of the Republic of Kazakhstan;

7) authorized body - the state body performing management in spheres of natural monopolies and in the controlled markets;

8) ceiling price - the goods price (works, services) established by the subject of the controlled market based on the costs and profit necessary for their production and (or) realization according to these rules, and recognized by authorized body of the examination of the price proved by results of carrying out;

9) investing program - the program of attachment and return of the funds allocated for creation of new assets, expansion, recovery, updating, support of the existing assets, reconstruction, modernization of fixed assets of the subject of the controlled market, for the short-term, medium-term or long-term period for the purpose of receipt of technical and economic effect, including one or several investment projects.

Other concepts and terms used in Rules are applied according to the current legislation.

2. Procedure for pricing on products, goods (works, services) Subjects

3. Pricing on products, goods (works, services) is performed based on the separate cost accounting by each type of products, goods (works, services).

In case of absence at the Subject of the separate cost accounting by types of products, goods (works, services), costs of the Subject are divided by types implemented products, goods (works, services) on the basis of the indirect methods providing cost determination, relating to certain type of activity of the Subject, selling products, goods (works, services) on specific weight of the income (amounts, labor costs of production personnel) in total costs of the Subject.

4. When forming reasonable price of products, goods (works, services) the Subject in cost are considered the expenses which are directly relating to production (rendering) of products, goods (works, services) and also the expenses confirmed with the proving materials (agreements, accounts invoices, financial records), including:

1) the material expenses determined proceeding from their prices provided in supporting documents (agreements, invoices) and physical amount of material resources proceeding from the applied consumption rates of raw materials, materials, fuel, energy of material resources on release of unit of production, goods (works, services) and (or) annual regulations of material resources;

2) the funds allocated by the Subject for the current and capital repairs and other rescue and recovery operations which are not leading to growth of cost of fixed assets in the presence of documentary technical confirmation of need of their carrying out and summary estimate calculations, object, local and resource estimates (separately on each object);

3) the subsidies allocated to the Subject from means of the government budget which are considered in reduction of costly part of the price, except for the subsidies directed to the expenses which are not considered in costly part of the price;

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