Kazakhstan works on mitigation plan amid falling oil prices

Kazakh President Kassym-Jomart Tokayev held a meeting to address the worsening global market situation amid the collapse of energy and commodity prices on global markets due to tariff conflicts, the presidential press service said.

At the meeting, attended by the Prime Minister Olzhas Bektenov, the Governor of the National Bank Timur Suleimenov, and other senior officials, President Tokayev instructed to accelerate drafting the government's plan of action to address the financial and economic crisis, with aim to prevent economic slowdown and a decline in investment flows.

"The President emphasized that, despite the challenging economic conditions, the priorities he outlined for the country's development—such as major infrastructure projects, digitalization, the advancement of artificial intelligence, and the modernization of agriculture and the transport and logistics sectors—will still be implemented," - president's press service reported.

President Tokayev is expected to convene a special meeting on this matter next week.

On Wednesday, Serik Zhumangarin, Deputy Prime Minister and Minister of National Economy, said that Kazakhstan’s government was assessing various scenarios in response to potential fluctuations in oil prices.

““We have three development scenarios. Currently, we are approaching the pessimistic scenario with oil prices at $60 per barrel. This week, we began calculations for scenarios involving prices dropping to $55 and $50 per barrel," - said Zhumangarin  and added that the government had "clear understanding on what needs to be cut and what should remain unaffected."

The Deputy Prime Minister also highlighted the importance of infrastructure development and job creation during a crisis.

He suggested that the state may once again turn to the National Fund, stating, “the National Fund was created for such situations, particularly during times of crisis."

Brent oil prices reached a four-year low on Wednesday, falling below $60 per barrel, after standing at approximately $75 at the beginning of April.

The sharp decline in oil prices, attributed to tensions surrounding U.S. tariff decisions, resulted in a day-on-day drop of around 2.3% on Wednesday and a 20% decrease since early April.

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