Funds from the recycling fee contribute to the country’s economy and the improvement of the environment

Recently, the media have repeatedly raised questions regarding the effectiveness of JSC Zhasyl Damu, including the acquisition of Kcell shares.

In this regard, it should be emphasized that JSC Zhasyl Damu is not a shareholder of Kcell in a legal or corporate sense – the temporary pledge of Kcell shares does not imply participation of JSC Zhasyl Damu in the company’s management. Placement of funds by JSC Zhasyl Damu is carried out strictly in accordance with the legislation of the Republic of Kazakhstan (confirmed by the Supreme Audit Chamber of the Republic of Kazakhstan). In this case, a reverse REPO instrument was used, under which temporarily free funds are placed against highly reliable liquid securities with a mandatory repurchase upon expiration of the agreed term.

Until the funds are directed towards purposes defined by the Environmental Code of the Republic of Kazakhstan (transfer to JSC Industrial Development Fund for financing MSW projects), these temporarily free funds are allocated into financial instruments to ensure effective management.

JSC Zhasyl Damu operates in full compliance with current legislation and the principles of transparency in managing utilization fee funds.

In July 2024, the Government (Resolution No. 604 of September 2, 2021) introduced a preferential (3%), repayable (from 3 to 15 years) financing mechanism for MSW projects in 2024–2026, totaling 185 billion KZT from utilization fee payments. As of September 25, 2025, JSC Zhasyl Damu has financed 20 MSW projects amounting to 87.3 billion KZT.

Such projects are considered capital-intensive, commercially unattractive (greenfield or from-scratch projects) for potential investors, and are associated with complex structuring schemes, high risk levels, and other significant factors.

Furthermore, in accordance with the Environmental Code of the Republic of Kazakhstan, JSC Zhasyl Damu supports achieving waste recycling and disposal targets by providing payments to individuals and organizations for collection, transportation, sorting, and recycling of waste within the EcoQolday program.

During 2022–2024, 135.4 billion KZT was paid to the national budget, including 89.6 billion KZT in corporate income tax (2022 – 16.6 billion, 2023 – 32 billion, 2024 – 41 billion) and 45.8 billion KZT in dividends (2023 – 19.6 billion, 2024 – 26.2 billion).

General administrative expenses of JSC Zhasyl Damu, confirmed by external auditors, account for less than 1% of the total expenditures aimed at purposes stipulated by the Environmental Code.

The Government of the Republic of Kazakhstan, together with authorized bodies, consistently undertakes necessary measures to address environmental issues.