KAZAKHSTAN Law and Practice Contributed by: Arman Bigazin, Mikhail Abdulov, Olzhas Abubakirov and Lidiya Sayenko, Haller Lomax LLP
MENR approved a list of environmentally hazardous activities, which provides for the mandatory availabil- ity of environmental insurance. This list includes activities related to: • the use of land and subsoil; • the use of water resources; • the implementation of oil operations; • metallurgical production; • the use of nuclear and thermal energy; • the impact on atmospheric air, climate, and the ozone layer; and • the handling of hazardous waste.
sons that cause or threaten to cause damage to the environment or human life and health. 10.2 Exemplary or Punitive Damages Civil law in Kazakhstan does not provide for exempla- ry or punitive damages in civil cases. The defendant is liable only for the damage they cause. The punitive function is implemented through administrative sanc- tions. However, it is worth noting that the court may oblige the defendant to compensate the plaintiff for lost profits – that is, lost income that the plaintiff would have received under normal conditions of turnover if the defendant had not violated their rights – as well as legal and other associated fees of the claimant, in addition to direct losses. In the case of claims to suspend activities that have a harmful effect on the environment, the court may addi- tionally oblige the defendant to take actions aimed at eliminating the source of harmful influence – for example, repair, reconstruction, installation of new treatment facilities, the introduction of new production technologies, and a change in environmental manage- ment conditions. 10.3 Class or Group Actions The law allows group actions for environment-relat- ed civil claims, but only provides for the possibility of class actions in environmental disputes where all the claimants are personally identified. Environmental NGOs have the right to submit claims to protect the rights and interests of the public at large, although this excludes any compensation for personal harm or The most high-profile case of compensation for envi- ronmental damage so far was that of the North Cas- pian Operating Company. The MENR claimed approx- imately KZT2.5 trillion (approximately USD5.1 billion) against the giant Kashagan oil venture for keeping more than double the amount of sulphur permitted on the site. This was the largest environmental protection fine claimed by the state so far. In Kazakhstan, the activities of 31 enterprises have been suspended for violating environmental laws, including Kazphosphate LLP and Kazakhmys LLP. environmental damage. 10.4 Landmark Cases
9. Lender Liability 9.1 Financial Institutions/Lenders
Kazakhstan legislation does not provide for the liabil- ity of financial institutions/lenders for environmental damage or breaches of environmental law committed by their debtors. 9.2 Lender Protection Lenders do not face legal risks arising from violations of environmental legislation by the debtor.
10. Civil Liability 10.1 Civil Claims
The types of civil claims in the case of environmental incidents or damage are described in 5.1 Key Types of Liability . To file a civil claim for environmental remediation, the CERC must prove all of the following conditions: • the existence of a violation and the possibility of identifying a specific person(s) whose actions caused the violation; • clearly determined and measurable damage; and • a causal link between the violation and the occur- rence of the damage. The Civil Code provides for the option of filing a civil lawsuit to suspend or terminate the activities of per-
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