Public-private legal relations in the automotive industry of Kazakhstan and Russia: cooperation and interaction of their automobile factories in the sphere of foreign economic activity during the recovery period

Tyumen State University Herald. Social, Economic, and Law Research


Release:

2020, Vol. 6. № 4 (24)

Title: 
Public-private legal relations in the automotive industry of Kazakhstan and Russia: cooperation and interaction of their automobile factories in the sphere of foreign economic activity during the recovery period


For citation: Sarsembayev M. А. 2020. “Public-private legal relations in the automotive industry of Kazakhstan and Russia: their cooperation and interaction of automobile factories in the sphere of foreign economic activity during the recovery period”. Tyumen State University Herald. Social, Economic, and Law Research, vol. 6, no. 4 (24), pp. 132-154. DOI: 10.21684/2411-7897-2020-6-4-132-154

About the author:

Marat А. Sarsembayev, Dr. Sci. (Jur.), Professor, Chief Researcher, Institute of Legislation of the Republic оf Kazakhstan (Nur-Sultan, Kazakhstan); daneker@mail.ru

Abstract:

This article analyzes the legal forms of public-private relations in the automotive industry in the Republic of Kazakhstan and the Russian Federation. The automotive industry is a part of the transport engineering industry, which consists of a number of sub-sectors in the form of railway, aviation, sea, river, and pipeline transport. The author distinguishes the content and principles of public-private legal relations that form the basis of the Russian and Kazakh laws on public-private relations. The public-private partnership, laid down in the law, usually implies a social project, which must be implemented at the expense of financial investments of a private company and the relevant state body. The state body may otherwise determine its participation in the implementation of this project.

The specificity and difference between public-private relations and public-private partnership, in which the relations between the automotive engineering industry and the state are formed, is that there are no separate projects. Public-private relations are formed between the entire transport engineering industry (its factories and enterprises) and the state represented by the relevant ministry of industry of Russia and Kazakhstan. The Russian and Kazakh states subsidize this industry, which consists of private-joint-stock automobile plants, credit them, provide them with tax and customs privileges and preferences, assist in the creation and operation of Kazakh-Russian joint ventures in the automotive industry, and in return they receive significant taxes.

Analyzing the legal aspects of foreign economic activity of automobile industry enterprises, as well as actions to restore the economy of Kazakhstan and Russia, and their auto industry in connection with the coronavirus pandemic has required using the following methods: the comparative legal method, systemic analysis, dialectic method, and the method of legal projection.

References:

  1. Forbes. “AVTOVAZ and BIPEK AUTO-ASIA AUTO summed up the results of their joint work in the Russian market”. Accessed 5 December 2020. https://forbes.kz/auto/avtovaz_i_bipek_avto_aziya_avto _podveli_itogi_sovmestnoy_rabotyi_na_ryinke_rossii [In Russian]

  2. Matritsa.kz. “Avtovaz halted deliveries of finished cars to Kazakhstan’. Accessed 5 December 2020. http://www.matritca.kz/news/30330-avtovaz-priostanovil-postavki-gotovyh-avtomobiley-v-kazahstan.html [In Russian]

  3. Zakon.kz. “Automobile industry of Kazakhstan: how it is developing and what are the prospects”. Accessed 5 December 2020. https://www.zakon.kz/5008101-avtomobilnaya-promyshlennost-kazahstana.html [In Russian]

  4. Andersen A. P. 2015. “Novella of the Russian legislation on public-private partnership: conclusion of concession agreements on the initiative of a private investor”. Economy and Law, no. 8, pp. 39-58. [In Russian]

  5. Bikmetov R. R. 2017. “Machines of the future — the electric vehicles. Prospects and problems of implementation”. Science, Technology and Education, no. 5 (35), pp. 199-201. [In Russian]

  6. Khabar 24. “Kazakhstan plans to produce 300 electric vehicles in 2019”. Accessed 25 October 2020. https://24.kz/ru/news/delovye-novosti/item/294483-v-kazakhstane-planiruyut-vypustit-300-elektromobil... [In Russian]

  7. Valentinova L. 2020. “The results of 2019 confirmed the steady growth of the economy”. Industry of Kazakhstan, no. 1 (109), p. 10. [In Russian]

  8. Kazakhstan Today. “In 5 years, Kazakhstan’s automobile enterprises have paid about 146 billion tenge in taxes”. Accessed 28 October 2020. https://www.kt.kz/rus/business/za_5_let_kazahstanskie_avtopredprijatija_zaplatili_okolo_t146_mlrd_na... [In Russian]

  9. “California is changing the automotive industry”. Kursiv. 2020. 8 October 8, p. 11. [In Russian]

  10. Kubekov E. “The car market in may: after the lifting of restrictions the dealers have sold 7 700 new cars”. Kolyosa. Accessed 5 December 2020. https://kolesa.kz/content/news/avtorynok-v-mae-posle-snyatiya-ogranichenij-dilery-prodali-7-700-novy... [In Russian]

  11. RF Government. “On granting subsidies to support certain industries”. Accessed 7 December 2020. http://government.ru/docs/27502/ [In Russian]

  12. Republic of Kazakhstan Law of 4 December 2019 “On the Republican budget for 2020‑2022”. Accessed 5 December 2020. http://adilet.zan.kz/rus/docs/Z1900000276 [In Russian]

  13. “On the free trade: the agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan of 2 June 1997”. Byulleten mezhdunarodnykh dogovorov Respubliki Kazakhstan. 1999. No. 4, art. 69. [In Russian]

  14. Republic of Kazakhstan Prime Minister’s Decree of 26 June 2019 No. 115-r “On approval of the road map (comprehensive plan) for the development of mechanical engineering in 2019-2024”. The Information and Legal System of Normative Legal Acts of the Republic of Kazakhstan. Sccessed 11 December 2020. http://adilet.zan.kz/rus/docs/R1900000115 [In Russian]

  15. Auto.VERcity. “Production of new cars in Russia in 2019”. Accessed 5 December 2020. https://auto.vercity.ru/statistics/production/europe/2019/russia/ [In Russian]

  16. Sarsembaev M. A., Kusainova A. K., Nazarkulova L. T., Sarsembaev D. A. 2020. International and National Legal Bases for Stimulating the Transport and Transit Potential of Kazakhstan. Edited by M. A. Sarsembaev. Nur-Sultan (Republic of Kazakhstan): Bolashak Consulting Group. 428 pp. [In Russian]

  17. Sarsembaev M. A. (ed.). 2017. Current Issues of Energy and Environmental Law in Kazakhstan, the EAEU, and the EU. Astana (Republic of Kazakhstan). 296 pp. [In Russian]

  18. Trubacheva T. “No one expected that Kazakhstan would establish mass production of cars”. Forbes.kz. Accessed 1 November 2020. https://forbes.kz/process/economy/nikto_ne_ojidal_chto_v_kazahstane_naladyat_massovyiy_vyipusk_avtom... [In Russian]

  19. “The authorized body in the field of state support for industrial activity and its competence in the field of state support for private enterprise”. Entrepreneurial Code of the Republic of Kazakhstan. 2020. Art. 100. Almaty: Yurist. [In Russian]

  20. Fedorov V. “Saryarkaavtoprom LLP became the leader of the domestic automobile industry”. Kostanayskie novosti. Accessed 5 December 2020. https://kstnews.kz/news/economy/item-55302 [In Russian]

  21. Lada.kz. “What awaits the automotive industry in Kazakhstan in 2018”. Accessed 2 November 2020. https://www.lada.kz/another_news/55312-chto-zhdet-avtomobilnuyu-otrasl-kazahstana-v-2018-godu.html [In Russian]

  22. Sharonov A. “Car exports from Russia reached a record level”. Drom. Accessed 5 December 2020. https://news.drom.ru/74241.html [In Russian]

  23. Liter. “Export of Kazakhstani cars increased 10 times”. Accessed 5 December 2020. https://liter.kz/ekspert-kazahstanskih-avto-uvelichil/ [In Russian]