Kazakhstan and Central Asia Defence and Security Report 2015
BMI View: Kazakhstan's determination to develop a solid domestic defence manufacturing base has beenexemplified in its strong push to setting up numerous joint ventures and partnerships with key foreignindustry players as well as its efforts to organise its own international exhibition of weapons and militaryequipment - KADEX. With a somewhat unstable regional environment, Kazakhstan will see to its defenceexpenditure being increased over our forecast period in an effort to be ready to combat any potentialbreaches in security. However, BMI believes that if it is to truly excel in this field and achieve its goal ofcreating a strong domestic manufacturing industry, the country will need to address its numerous preexistingsecurity threats - namely corruption and its tense relationship with neighbour countries over waterand energy supplies.
Kazakhstan's domestic defence sector remains small on the global scale with one main company present(Kazakhstan Engineering). As such, the country heavily relies upon imports to meets the requirements ofits armed forces. Domestic industry players under Kazakhstan Engineering are able to manufacture a smallrange of military products such as artillery, armoured transports, missiles, small ships, aviation systems,bulletproof vests, and radios and this effort is helped through joint ventures with foreign companies. Newitems being produced include 125 mm tank rounds, sights, night- vision instruments, cars and trainingsimulators for combat vehicle crews. A relatively healthy defence budget (compared with other countries ofCentral Asia) and favourable relations with Russia and the west has also enabled the Kazakhstanigovernment to easily procure and co-produce technologically advanced military equipment from abroad.
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