The Best Tool for an Exporter: Head of the Kostanay Oil Plant on the Support of the Export Credit Agency of Kazakhstan
The products of LLP Prombaza-7 are well-known and purchased in China, Russia, Uzbekistan, Tajikistan, Afghanistan, and Poland.
The company first entered export markets in 2019, but significantly increased its foreign sales volumes in 2022, when it began cooperation with KazakhExport, now known as the Export Credit Agency of Kazakhstan.
From Humble Beginnings to Major Growth
The oil plant in the village of Fyodorovka was launched in 2018. It started with a small workshop, but as operations progressed, the company’s management realized that in order to stay competitive and afloat, it was essential to expand and boost production capacity. As a result, new pressing, extraction, and refining workshops were added to the plant.
Today, the company produces both refined and unrefined oil, as well as oil cake (meal). Notably, 10% of the raw materials used at the plant come from the company’s own fields.
The plant’s production capacity has reached 200 tons of oil per day. More than 50 people are employed at the facility, and 95% of LLP Prombaza-7’s products are exported.
However, these impressive results, says the company’s director Mukambetzhan Akulov, would not have been possible without the support of the Export Credit Agency of Kazakhstan.
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"It Became Easier to Breathe"
That is exactly how Mukambetzhan Akulov began the conversation about the support provided by the Export Credit Agency of Kazakhstan (ECA). According to him, it was thanks to the agency’s assistance that the company was able to grow and establish itself as a successful exporter.
"You can build the most powerful and modern plant, but if you don’t have working capital, it will sit idle — like a monument," said Mukambetzhan Akulov. "In 2022, I applied for a loan from one of the second-tier banks. I needed the funds, among other things, to purchase raw materials in large volumes to ensure uninterrupted operations. But any entrepreneur will tell you — getting a loan from a second-tier bank is a real challenge. There's usually not enough collateral. Banks focus heavily on the location of the enterprise, the equipment, and they use their own risk assessment criteria. And that’s where the government came up with, in my opinion, an excellent tool specifically for exporters — loan insurance for working capital financing through the Export Credit Agency," Akulov explained.
In practice, this means that the Export Credit Agency insures up to 90% of the loan amount for the bank. In other words, the issue of providing substantial collateral is no longer a concern for the entrepreneur, allowing them to secure loan funds without obstacles.
"Thanks to the support of the Export Credit Agency of Kazakhstan and their loan insurance program, we were able to secure the necessary funds, which allowed us to grow successfully and achieve our current results, significantly increasing our export volume," explained Mukambetzhan Akulov. "The trust of the ECA is very important to us — we’ve been fulfilling our obligations for three years now. At the moment, we are working with the Development Bank of Kazakhstan, as we need funding to purchase sunflower seeds in large volumes, since there is a shortage of oilseeds on the market. The ECA’s loan insurance tool came at the perfect time, as the Export Credit Agency has effectively become a guarantor of our production in the eyes of the bank," he added.
The head of the oil plant notes that the Export Credit Agency offers a wide range of support tools for exporters. In the future, he may turn to other programs beyond loan insurance, as the company plans to expand the geography of its exports and enter new international markets. In addition, LLP Prombaza-7 aims to increase its production capacity to 350–400 tons of raw materials per day, which will further strengthen its market position and boost its export potential.
"I haven’t seen a better tool for exporters," says the company’s director. "On the domestic market, for example, there are no such support mechanisms. If possible, I would like to see shorter application processing times at the ECA, because in business, every day counts."
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According to the Export Credit Agency, its cooperation with the oil plant enabled the company to raise 3.5 billion tenge in working capital financing. In today’s business environment, access to credit plays a crucial role. However, as is well known, banks are not always willing to provide large loans. In such cases, the ECA steps in to assume the exporter’s obligations to the lender, creating a mutually beneficial solution for all parties involved — a classic win-win model. According to Temirkhan Tishbayev, ECA’s regional manager, all sectors involving processing — including agribusiness — are a top priority for the agency. As of last year, ECA’s total support for exporters reached a record 337.4 billion tenge.
"The steady growth in global demand for vegetable oil presents significant opportunities for Kazakhstani producers, especially in recent years," said Temirkhan Tishbayev. "Our long-standing client, LLP Prombaza-7, has significantly expanded its export geography over the years of working with us, establishing supply chains to China, Russia, Uzbekistan, Tajikistan, Afghanistan, and Poland."
In 2024, the Export Credit Agency supported 96 exporters who signed contracts with 350 international partners. Notably, small and medium-sized enterprises account for half of ECA’s portfolio.
"By closely monitoring exporters’ needs and analyzing market trends, ECA continually updates its existing product line and introduces new support tools for Kazakhstani manufacturers and exporters," noted Temirkhan Tishbayev.
"In February of this year, ECA launched a new financial product — export operation guarantees."
"In February of this year, ECA launched a new financial product — export operation guarantees." The agency offers various types of guarantees that minimize the risks of exporters failing to meet their contractual obligations in international tenders and competitions.
