08 November 2018

Region overview


Region overview



Administrative-territorial division


              West Kazakhstan region is located in the western part of the Republic of Kazakhstan. The territory of the region is 151.3 thousand square km or 5.9% of the territory of the republic. West Kazakhstan region stretches from north to south for 425 km and from west to east for 585 km. The territory of the region is comparable with the territories of large European states. However, among 14 regions of the Republic of Kazakhstan, the West Kazakhstan region occupies only the 8th place in terms of area.


              The population is 647.8 thousand people or 3.5% of the population of Kazakhstan. It borders with five regions of Russia: Astrakhan, Volgograd, Saratov, Samara, Orenburg and two regions of Kazakhstan - Aktobe and Atyrau.


              The region was formed on March 10, 1932. The regional center is Uralsk. The administrative-territorial division of the region is represented by 2 cities (the city of Uralsk is of regional significance, the city of Aksai is of district significance), 12 administrative districts, 3 settlements, and 443 rural settlements.


              West Kazakhstan region belongs to the Western macro-region, specializing in the oil and gas industry, engineering, food industry, construction industry, grain farming and animal husbandry.


              The territory of the region is rich in gas and gas condensate, oil, borate ores, oil shale, potassium-magnesium salts, calcareous rocks, cement raw materials, chalk, expanded clay, building sand and alluvial sand.


              One of the world's largest oil and gas land areas - Karachaganak, located near the city of Aksai. The deposit covers an area of ​​280 square km. The reserves of the field are 1.35 trillion. cubic meters of gas and 1.2 billion tons of oil and gas condensate. The recoverable reserves of liquid hydrocarbons are about 320 million tons and gas over 450 billion cubic meters.


             In  Akzhaik district of the region, the boron-potassium salt deposit “Satimola” is being developed, which, according to experts, will have enough reserves for 150 years.


            Semiglavomar deposit contains chalk reserves - 22 thousand cubic meters, clay raw materials - 21 thousand cubic meters and flasks - 6,1 thousand cubic meters.


            Cement raw materials explored in Aksuat village with reserves of 1106.5 million cubic meters, sufficient for the construction of a cement plant with a capacity of 1300 thousand tons per year. The explored Shipov siliceous clay deposit with reserves of 21,619 cubic meters can be used as a hydraulic additive.


            In the region, the population density is 4.2 people per square km, which is higher compared to Aktobe (2.8 people per sq. km) and Mangistau (3.9 people per sq. km) areas.


            Natural and climatic conditions


           The geographical position of the region is unique, it is located in the center of Eurasia. It is located close to the major economic and cultural centers of Eastern and Western Europe. The use of the Ural River to access the countries of the Caspian basin determines its strategic importance for the entire Republic of Kazakhstan.


           The relief of the territory of the region is a component of Eastern Europe; it is mainly a flat territory, falling from the north-east to the south-west, divided into five geomorphological regions.


            In the region, gas and gas condensate, oil, borate ores, oil shale, potassium-magnesium salts, cement raw materials, expanded clay, building and alluvial sand were discovered. Available stocks allow them to industrial development and use for a long period.


          On the territory of the West Kazakhstan region from north to south in the soil cover the following soil types are distinguished: southern humus, dark chestnut, chestnut and brown soil. Mostly grassland, grass and wormwood, wormwood vegetation.


          The climate of the region has a number of features. It is sharply continental with cold winters and hot dry summers, late autumn and early spring frosts, winter thaws and insufficient unstable atmospheric moisture.


          Climate formation occurs under the influence of continental air masses of temperate latitudes, however, both Arctic and tropical air masses of Central Asia freely penetrate. January isotherms –11*C, July + 24*С, annual precipitation falls on average 300 mm. Droughts often occur.


          In the area there are dangerous meteorological phenomena: drought, dust and sand storms, hail, blizzards with frost, ice.


          Natural resources


          The rivers of the West Kazakhstan region comprise about 200 rivers and streams, the total length of which, not counting the Ural River, is 4,600 km. The main river of the region, crossing it from north to south, is the Ural River. This river originates in the Ural Mountains at an altitude of more than 600 m. The total length of the Ural River is 2354 km, and within the territory of the region - 500 km. Ural flows through the Caspian lowlands and flows into the Caspian Sea. The supply of rivers is mixed: snow, groundwater and precipitation.


          On the territory of the region there are 3260 lakes, the total area is 960 sq. km. But of such a large number of only 84 lakes have an area of ​​more than 1 sq. km. In the summer season, the water surface of the lakes decreases sharply, and small lakes are completely dry by the end of summer. Most flood-type lakes are in the valley of the Ural River. These are usually old lakes, formed in the old meanders of the riverbed.


        The largest lake is Lake Chelkar, which is located 70 km to the south-east of the city of Uralsk. The area of ​​this lake, even in very dry years, exceeds 191 sq. km. This is due to the fact that a feed channel was constructed from the Ural River to the lake. The Solyanka River flows out of Chelkar - a tributary of the Ural River, which during the high floods of the Ural River changes its direction and does not flow from the lake, but on the contrary - from the Ural River to the lake.


        West Kazakhstan region is located in the steppe and semi-desert natural zone.


        By the nature of natural resources and predominantly developed industries, the region can be divided into two parts:


        - North: there are enterprises of the oil and gas industry, engineering and metalworking, light and food industries, developed industry of building materials and industry, grain production, developed dairy and cattle breeding, pig breeding and poultry farming;

       - South: repair of agricultural machinery, the production of local building materials, developed beef cattle, pasture-meat and meat and sheep breeding, herd horse breeding.




        The development of transport and the formation of freight flows passing through the territory of the West Kazakhstan region are influenced by the proximity of the industrially developed Ural and Volga economic regions, the situation between the states of Central Asia and Central Russia, which exchange significant cargo flows between themselves.


            The railway goes through the northern part of the region, connecting it with Russia and neighboring Aktobe region. The total length of railway tracks passing through the region is 430.7 km. The length of public roads in the region is 5472 km. The roads of the region are connected with the road network of the neighboring regions of the Russian Federation.


           The geographical location of the Ural River at the junction of Europe and Asia, determines the peculiarity in strategic terms - the possibility of exit of the country of the Caspian basin. For navigation, the river fleet is able to transport 30–35 thousand tons of oil products, 1–1.5 million tons of construction cargo and provide passenger transportation services for up to 250 thousand people.


           Ural Airport is a major aviation-technical complex with a modern air terminal, with a capacity of 200 passengers per hour, has an international terminal.


          “The Central Asia-Center”, “Orenburg-Novopskovsk” and “Soyuz” main gas pipelines run across the region, their length is 2,781 km, and “Atyrau-Samara” transit pipeline runs 313 km in length.


           In the region there are 26 installations of satellite communication systems, 160 ATSs with a total capacity of 81.3 thousand numbers. There is a cellular communication that provides auto-testing in 66 countries of the world.


            Mineral and raw material base


          West Kazakhstan region has a unique mineral resource base. In the region, gas and gas condensate, oil, borate ores, oil shale, potassium and magnesium salts, cement materials of expanded clay, construction and alluvial sand were discovered. Available stocks allow them to industrial development and use for a long period. Most of the fields on which the work is being carried out are concentrated in Zelenov, Burlin, Akzhaik and Taskala districts of the region.


          Bowels of the earth of the West Kazakhstan region rich in oil and gas condensate, this condensate and oil and gas fields: Karachaganak, Chinarevo, Daryinsk, Rostoshi, South Gremyachinsk, Rozhkovo, Tsyganovo, Prigranichnoye, Tokarevo, Kamenka, Ulyanovsk, Bolganmola, East Gremyachinsk, West Teplovskoe , Teplovskoe, Karpovskiy Severny, Ushkultas and Port Arthur.


           In the region, exploration and production for oil and gas are conducted by 10 companies at 10 subsoil use sites, according to the contracts concluded at the Government level. KPO Companies B.V. and Zhaikmunai LLP are developing and operating the Karachaganak oil and gas condensate fields (Burlin district) and Chinarevo (Zelenov district), respectively.


          There are significant reserves of boric-potassium salts in the structures (Shalkar, Satimola), cement raw materials (Aksuat, Semiglavomar), expanded clay (Pogodaev).


          The largest deposits of hydrocarbons (hydrocarbon raw materials) are Karachaganak and Chinarevo, “Satimola”  (boron-potassium salts), Semiglavomar (chalk) and Shipovo (siliceous clay) deposits.


          One of the world's largest oil and gas land areas - Karachaganak, located near the city of Aksai. The deposit covers an area of ​​280 sq. km. The reserves of the field are 1.35 trillion cubic meters of gas and 1.2 billion tons of oil and gas condensate. The recoverable reserves of liquid hydrocarbons are about 320 million tons and gas over 450 billion cubic meters.


Another of the large fields is  Chinarevo oil and gas condensate field, which is located near the border of Kazakhstan with Russia, its current reserves are 48.7 billion cubic meters of gas and 35 million tons of oil and condensate.


 Economic indicators


Facts and figures:


• 4% - growth of the economy of the West Kazakhstan region in 2017 (GRP)

• 49.3% of the GRP is produced by an industrial complex; including 4% is accounted for processing.

• 5.5% - growth in industrial output in 2017.

• In 2017, agricultural products were produced in the amount of 143.1 billion tenge.

• By the end of 2017, investments were raised in the amount of 414.3 billion tenge.


Socio – economic development of the West Kazakhstan region



2015 г.

2016 г.


Gross regional product

Volume, billion tenge




Index of real GRP in  % by previous year




Per capita, thousand tenge

2 699,6



Share in the country’s GDP,  %




Structure of GRP, %









Industry (total)




mining industry




manufacturing industry




Electricity and water supply, etc.












other industries





Volume, billion tenge




Share in the country,%




IPV (Index of Physical Volume), in the previous year %




Gross output of products (services) of agriculture

Volume, billion tenge




Share in the country, %




IFO, in % of the previous year




Note: 2017 – operational data


       Region Specialization




     The basis of the economy of the West Kazakhstan region is industrial production, the share of which in the gross regional product is about 50%.


     On a national scale, the region provides about 9% of industrial production.


     At the end of 2017, there is a positive trend in the development of industrial production. During the reporting period, produced industrial products in the amount of 1.9 trillion tenge or 105.5% due to an increase in production volumes, both in the mining and manufacturing industries.


     In the manufacturing industry, with an IFO forecast of the manufacturing industry of 101.6%, an increase of 5.7% was achieved due to an increase in production volumes in the chemical industry (by 2.0 times), rubber and plastic products (by 1.1 times), finished metal products (1.4 times), metallurgy (12.3%). The volume of production for the reporting period in this industry amounted to 158.2 billion tenge.


        Labor productivity at the end of 2017 compared to the same period of 2016 increased by 5.8% and amounted to 16.0 thousand US dollars / person.


         At the end of 2017, the number of people employed in the manufacturing industry was 16.5 thousand, which is 17.6% higher than in 2016.


         In the manufacturing industry, the main share is accounted for by the food production, engineering, and oil refining industries.


         Enterprises of the mechanical engineering industry produced products in the amount of 33.3 billion tenge. In connection with the reduction in the production of oil and gas equipment on the basis of JSC "Research and Development Institute" Gidropribor ", crankshafts on the basis of LLP  “UMP" due to the lack of IFO orders in this industry for the reporting period amounted to 70.7%.


          Currently, within the framework of the SPIID (State Program for Industrial-Innovative Development) for 2015-2019, work has begun on the development of a national cluster. In this regard, a roadmap for the development of the Sub-cluster “Engineering for the oil and gas industry” has been developed and is being implemented, which was approved by the decision of the meeting of the Council of the National Cluster of December 27, 2016.


          In order to form a subcluster, to ensure an effective relationship between the participants of the subcluster with the state and non-cluster organizations, a managing committee of the subcluster was created on the basis of JSC “NC“ SPK “Oral”. In 2017, rules were developed for the interaction of the Subcluster participants.


           The issues of introducing changes to the dividend policy of JSC “NC“ Kazakhstan Engineering ” were resolved, in accordance with which the amount of dividends payable is determined depending on the investment costs of enterprises approved by the investment committee of the company.


            On the initiation of akimat WKR, central bodies signed agreements on the use of ASME international standards with the American Society of Mechanical Engineers, ANSI and the American National Standards Institute.


            From April 11 to 13, 2017, enterprises of the industry headed by the Consortium of machine-building companies “Mashzavod” took part in Atyrau Invest Forum and the 16th North Caspian Regional Exhibition GlobalOil & GasAtyrau and the development meeting of the National Cluster. Within the framework of this meeting, a memorandum was signed between the management committees on cluster development of Atyrau, West Kazakhstan and Mangystau regions.


          During the Local Content Development Forum held by KPO B.V. May 22 of this year, a memorandum was signed  promoting the development of local content and ensuring effective interrelationship between “KPO B.V.”, Akimat of WKR, JSC “NC “SPK “Oral” and members of the “Mechanical Engineering for Oil and Gas Industry” Sub-cluster.


           August 25 of this year with the participation of development institutions, large subsoil users, a forum for the development of the Sub-cluster “Mechanical Engineering for the Oil and Gas Industry” was held, during which a memorandum was signed between JSC “NC” KazMunaiGas” and the managing committee on cluster development (JSC “NC “SPK “Oral") of  “Engineering for the oil and gas industry."


           In the oil refining industry, products worth 27.8 billion tenge were produced, or 1.8 times more than in 2016. The growth was achieved due to the introduction of gasoline production on the basis of JSC “Condensat” .


               In April 2017, a vacuum distillation section was commissioned, which will ensure maximum extraction of light oil products. Completed work on the project to increase the capacity of the refinery from 600 to 850 thousand tons per year for the processing of hydrocarbons, work is underway to build a section for hydrotreating diesel fuel. In general, the company invests in the implementation of these projects in the amount of 51 billion tenge ($ 155 million).


              In the metallurgy industry, products worth 14.7 billion tenge were produced, which is 12.3% higher than in 2016. The growth was due to an increase in the production of tubing on the basis of LLP “KazTrubprom” and cast iron based on the PC “ULMZ”.


             Compared to 2016, the production of finished metal products increased by 38.3% due to an increase in the production of grinding balls on the basis of LLP “KazArmaprom” and amounted to 12.2 billion tenge.


             In addition, manufacturing enterprises are taking all measures to modernize production.


            For example, LLP “Ural Transformer Plant”, which is part of the “Alageum Electric” group of companies, together with Turkish investors in 2016 established LLP “URAL ELECTRIC”  enterprise for the production of electrical equipment using the technology of the Swiss company “ABB”. In the first quarter of 2017, the production of switchboard equipment was introduced with a total value of 500 million tenge.


            In February 2017, JSC “Nurzhanar” introduced a new line for the production and bottling of beverages (in kegs and plastic bottles).


            In April 2017, JSC “Condensat” commissioned a vacuum distillation section, which will ensure maximum recovery of light oil products. Also, the plant was modernized with an increase in the capacity of the enterprise to 850 thousand tons per year. At the end of 2018, it is planned to commission a hydrotreating unit for diesel fuel up to the environmental class K5.


           In addition, LLP “Uralsk Mechanical Plant” plans to introduce an automated line with numerical program control for the fabrication of mesh fences, as well as the modernization of machines for the production of crankshafts using the latest technology. Zenit plant plans to develop a multifunctional vessel with a displacement of about 720 tons of the project 0310 “Bulan”. There are also developments and plans for the production of ships for the collection of oil spills, barges for the transportation of collected oil spills. It is planned to install an automated line with numerical program control for the production of grid flooring with anti-slip according to the development programs of TCO, KPO and NCOC. There are plans for the supply of equipment with numerical control for the manufacture of metal structures; CNC machine for the manufacture and knurling of the thread of bolts, studs for the programs NCOC, TCO, KPO B.V. In addition, the company is planning to install an automated line for the manufacture of fasteners with Cetrofuge by the American company Western.


          LLP “Zenittechservice” is planning to organize a hot-dip galvanizing shop with CNC for galvanizing products over 10 meters. JSC “Research Institute “Gidropribor” plans to create a research laboratory with the use of the latest equipment for metallographic research of metal and pipes. Also, the company plans to develop research vessels for bathymetric measurements, underwater television complexes (inspection of underwater pipelines).


          The Business Support Card of the region for 2015-2019 includes 31 projects worth 88.4 billion tenge, with the creation of 1,460 new workplaces. From them, from 2015-2017, 22 projects totaling 81.1 billion tenge were commissioned, and 1131 permanent workplaces were created. Including 2017, 10 projects worth 8 billion tenge were implemented with the creation of 536 permanent workplaces.


         In 2018, within the framework of the Business Support Card, it is planned to implement 7 projects for a total amount of 7 billion tenge, with the creation of 262 permanent workplaces:


1. Construction of a brick factory LLP "134";

2. Construction of chemical production base of LLP "Topan";

3. Production of wall and roofing sandwich panels with mineral wool of LLP “Agran”;

4. Construction of a workshop for processing animal waste of LLP “Kublei”;

5. Modernization of the shop for the production of confectionery products of IE "Khasanov";

6. Concrete mixing unit of LLP “Global Procurement”;

7. Modernization of the buttermaking plant of LLP “Terektі Mai Kombinaty”.


           Agroindustrial complex


           In the message of the President, the agricultural sector is defined by a new economic driver, which has a promising future.


           Agriculture traditionally specializes in the production of grain and livestock products. In plant growing, along with grain, oilseeds, cereal crops are grown, potatoes, vegetables, melons and fruits are produced. For the development of grain production the region has the necessary land resources. In the most favorable agricultural zone, there is about 1 million hectares of a fertile deposit for farming. The natural and climatic conditions of this zone make it possible to grow hard and strong wheat varieties with high protein and gluten content, which are in high demand in the world market. In animal husbandry, the main industries are cattle and sheep, additional: pig, horse, camel and poultry. The presence of 12.4 million hectares of pastures and hayfields in the central and southern part of the region allows, along with large cattle, to develop camel breeding, horse breeding, sheep breeding and produce large quantities and low costs of meat, wool and leather raw materials.


           As part of the “Agribusiness 2020” program, the amount of state support in the form of subsidies and soft loans is increasing annually. As a result, in 2017, the IFO of agriculture amounted to - 100.6%.


           In the field of agriculture, 4 investment projects worth 6.0 billion tenge were implemented, about 150 workplaces were created.


            The average yield of grain crops in 2016 was 14.5 centners per hectare and in 2017, 15.1 centners per hectare.


           In 2017, the program “Agribusiness 2020” was effectively implemented. So, with the plan of 6.1 thousand heads under the programs of “Sybaga”, “Altyn Asyk”, “Kulan”, 7.2 thousand heads were purchased, or 17% more than the plan.


           The Law “On Cooperation” is effectively implemented in the region, where 217 cooperatives have been created (208 - animal husbandry, 4 - crop production).


          In the structure of agricultural products, households produce 57.2% of vegetable production and 52.5% of livestock production, while 42.8% and 47.5%, respectively, of peasant (farmer) farms.


           In the region there are more than 76.6 thousand farmsteads engaged in the breeding of farm animals. This year, the task is to unite more than 900 farmsteads in agricultural cooperatives.


          This will increase the level of processing of products, creating an effective system of storage, transportation and marketing of goods, and it is necessary to use the potential of personal subsidiary farms by combining them into cooperatives. Due to these measures, the share of processing of meat products will have to be increased from 32.0% to 35%, milk from 31% to 37%;


          Today, the average workload of a meat processing plant is 63%, milk - 8.3%. To increase the workload of the enterprise up to 70% and 30%, respectively, it is necessary to organize service and procurement centers on the basis of cooperatives.




            In the West Kazakhstan region in the field of transport and logistics in the coming years, it is planned to attract investment in the following volumes for the development of transport infrastructure: in 2018, 1.5 billion tenge, in 2019, 1.7 billion tenge, in 2020, 2.0 billion tenge, in 2021 - 2.0 billion tenge, in 2022 - 2.0 billion tenge.


            The specified investment amounts include investments for upgrading the bus and freight fleet of enterprises-carriers of the region, construction of bus stations and passenger service points in the settlements of the region, as well as for construction, repair and reconstruction of transport infrastructure facilities.


              As of today, bus stations are open in 2 (Burlin, Taskala) districts and passenger service points are organized in 2 (Zhangala, Syrym) districts of 12.


            Reconstruction of the terminal of the International Airport “Oral” is also planned.


           The total number of rolling stock of urban public transport, taking into account the reserve, is 500 units, of which 50% are old buses requiring renewal.


            Mineral Resources


          West Kazakhstan region has a unique mineral resource base. The region has a variety of minerals, the most important of which are hydrocarbons. In  Akzhaik district of the region, the boron-potassium salt deposit “Satimola” is being developed, which, according to experts, will have enough reserves for 150 years.


Semiglavomar deposit has reserves of chalk, clay raw materials and flask. Cement raw materials are explored in Aksuat settlement with reserves sufficient for the construction of a cement plant with a capacity of 1,300 thousand tons per year.


Estimated reserves of the main types of minerals are as of January 1, 2018:


1) oil - 590949.8 thousand tons;

2) free gas - 1337325.0 million cubic meters;

3) boric ores - 461641.8 thousand tons;

4) potash salts - 5477481 thousand tons;

5) magnesium salts - 43309.1 thousand cubic meters;

6) sand and gravel mix - 205920.625 thousand cubic meters;

7) construction sand - 15878.860 thousand cubic meters;

8) brick clay –66169.075 thousand cubic meters;

9) gypsum - 46387.96 thousand tons;

10) chalk - 47,075.9 thousand tons;

11) cement raw materials - 256047 thousand tons;

The largest hydrocarbon fields are Karachaganak; by solid minerals - Satimola (boric ores and potassium salts).

281 groundwater deposits have been explored, 4 of which are balneotherapy applications.


           Building Industry


          West Kazakhstan region has significant potential for the development of the construction industry. Analysis of the development of the construction industry in the region over the past 5 years shows that in this industry for the specified period, there is a positive dynamics of development.


           Production volumes from 2012 to 2017 increased from 5.9 to 11.7 billion tenge in 2017, including:


2012 - 5.9 billion tenge (IFO - 100.8%);

2013 - 9.8 billion tenge (IFO - 140.6%);

2014 - 11.0 billion tenge (IFO - 135.9%);

2015 - 10.2 billion tenge (IFO - 106.9%);

2016 - 9.5 billion tenge (IFO - 127.4%).

2017 - 11.7 billion tenge (IFO - 92.9%).


        The largest volume was observed in 2014. Discontinuous volumes in monetary terms indicate a change in the cost of prices of construction materials, as in physical terms there is no decrease in production volumes.


        Availability of raw materials


       The main raw materials for the production of building materials are chalk, clay, and gravel, which are mined in the region.


        The volume of attracted investments


         Over the past 5 years, investments in the amount of 2.8 billion tenge have been attracted to the main capital of the construction industry. The largest volume of investments was directed at the expense of the own funds of enterprises for the implementation of projects for the introduction of energy-saving technologies.


        The volume of exports and imports in recent years


        Over the past 5 years, the volume of exports in this industry amounted to 85.4 thousand US dollars, including in 2016, construction materials were exported in the amount of 30.2 thousand US dollars. Produced by enterprises of the industry products are mainly focused on the needs of the domestic market.


        Today, a significant market share is imported products. Currently, the region fully imports cement, floor coverings (linoleum, parquet, laminate), paints, thermal insulation materials, polymer products, etc. At the end of 2016, construction materials were imported in the amount of 1.1 million USD. (Source of information - Customs Control Committee of WKR).


       The construction industry of the West Kazakhstan region is represented by enterprises engaged in the production of silicate and ceramic bricks, reinforced concrete products, ready-mixed concrete, foam concrete, joinery, sand and gravel, metal structures, sandwich panels, profiled sheets, metal tiles, windows, doors, etc.


         Industrial zone


         One of the effective tools for the development of small and medium businesses, as well as stimulating production is the creation and development of industrial zones.


         Industrial zones allow both enterprises and the state to significantly reduce the cost of laying the engineering infrastructure.


           In the region, an industrial zone is planned to be built, the location of the industrial zone in the vicinity of  Poima station of  Aksuat rural district of  Terekta district with an area of ​​281 hectares (resolution of Akimat of Terekta district of August 8, 2016 No. 243 on allocation of the land plot) has been determined.


          The feasibility study of the project was developed and the project feasibility study received positive expertise. To date, the design and estimate documentation of the project is being developed.


          According to the feasibility study of the Project, the industrial zone will consist of 14 sectors, depending on the type of industry:


Name of production activity

Number of enterprises in the unit

Land, ha



Production units





Leather and footwear production





Mechanical Engineering





Production of packaging





Glass production





Chemical production





Textile production





Food production





Manufacture of electrical appliances





Building materials





Manufacture of rubber and plastic products





Furniture Production





Production of products for landscape design





Low production





Management Company and Service Industry





Objects of the management company and engineering facilities





Transport and Logistics Center