On 1 January 2016 restrictions on foreign equity share in the air services companies were abolished until 10 May 2017, when they were reintroduced into the legislation (see amendments № 435-V and № 64-VI to the Law). Following the 2017 amendment, foreign investors have the right to hold not more than 49% of shares in the aviation company.
"Article 74.The right of carrying out the airborne transportations. Airline carriers
1. The right to carry out air transportation of passengers, baggage, cargo and postal items for payment or for hire (commercial air transportations) by regular and non-regular flights is available to airlines with a valid operator's certificate. [...]
3. Airline carriers, performing the regular airborne transportations shall be established in the form of joint stock company in the manner, established by the Laws of the Republic of Kazakhstan.
[...]
Article 74-1. Restrictions on foreign participation (control) in an airline established in the form of a joint-stock company
1. A foreign legal entity, a foreign organization that is not a legal entity, a foreigner and (or) a stateless person is prohibited independently or in conjunction with other foreign legal entities, foreign organizations that are not legal entities, foreigners and (or) stateless persons:
1) directly and (or) indirectly own, use and (or) dispose of the shares of the airline established in the form of a joint-stock company and (or) derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the shares of the airline , created in the form of a joint-stock company, in an amount exceeding forty-nine and more percent of the total number of placed (minus the shares of the said airline itself repurchased);
2) exercise effective control over the airline established in the form of a joint-stock company. [...]
Note: For the purposes of this article, the following concepts apply: [...]
2) effective control - the ability to determine the decisions of a legal entity or a foreign organization that is not a legal entity, arising in the presence of one of the following conditions:
-direct and (or) indirect ownership, use and (or) disposal of more than fifty percent of the placed (minus the preferred and redeemed by a legal entity) shares, participatory interests, shares or other forms of equity participation in a legal entity or foreign organization that is not a legal entity;
-the ability to directly or indirectly elect at least half of the composition of the management body or executive body of a legal entity or a foreign organization that is not a legal entity;
-the ability of one person to independently or jointly with one or more persons directly or indirectly determine the decisions of a legal entity or a foreign organization that is not a legal entity, on the basis of a legislative act of the Republic of Kazakhstan, a court decision, by virtue of an agreement (supporting documents) or otherwise in cases stipulated by the rules for limiting foreign participation (control) in an airline established in the form of a joint-stock company.[...]" (Law On Use of Air Space of the Republic of Kazakhstan and Aviation Activity (No. 339-IV of 15 July 2010), as amended by Law No. 284-VІ of 26 December 2019, Articles 74 and 74-1 [unofficial translation])
Law On Use of Air Space of the Republic of Kazakhstan and Aviation Activity (No. 339-IV of 15 July 2010), as amended by Law No. 284-VІ of 26 December 2019, Articles 74 and 74-1
[<a href="https://adilet.zan.kz/rus/docs/Z100000339_">Law</a>]