Eurasian Resources Group (ERG) has summed up the results of its import substitution program, aimed at increasing in-country value and supporting domestic producers under the directives of the head of state and the government of the Republic of Kazakhstan. Of the group's total procurement volume of 1.8 trillion tenge in 2025, 1.32 trillion tenge went to goods, works and services of Kazakh origin, reports infohub.kz.
Over the past few years, ERG enterprises have signed 74 offtake contracts worth 55.7 billion tenge, giving Kazakh producers guaranteed sales needed to launch and expand production. Among the largest contracts: 12.3 billion tenge for the production of spare parts for equipment and railway machinery, 8.4 billion tenge for initiation systems for blasting, 5.7 billion tenge for electric furnace transformers, 2.5 billion tenge for buckets for rotary excavators, and 1.4 billion tenge for pump spare parts.
In addition, ERG signed 951 long-term agreements with domestic producers totaling 196 billion tenge. The share of Kazakh goods in the group's procurement rose from 52% to 63%.
"The head of state's directive is not a slogan for us, but a production plan. Behind every percentage point of in-country value are specific plants, jobs and technologies that remain in Kazakhstan. We have opened a market worth hundreds of billions of tenge a year to domestic producers – and we are ready to guarantee orders to those who are ready to manufacture in Kazakhstan," said Kudrat Shamiyev, General Director of ERG in Kazakhstan.
One large-scale example of the program's implementation is ERG Service LLP, which localized production of goods and services worth 94.3 billion tenge in 2025: repair of power and mining transport equipment, foundry and machine-building production. In addition, to develop aluminum processing in Kazakhstan, ERG supplies metal to domestic alloy producers at a price 5% below London Metal Exchange (LME) quotations.
Today ERG's import substitution program covers 21,000 imported items open to substitution by Kazakh production: from haul truck tires and excavator buckets to transformers and industrial chemicals. Any Kazakh producer can submit an application to join the program on the erg.kz and torgi.erg.kz platforms in the "Import Substitution" section. The company reviews the application and issues a decision. If positive, a contract or offtake agreement is signed with the manufacturer.
ERG plans to develop the program in several directions: holding quarterly "open days" for suppliers at the group's enterprises, holding meetings with government agencies, and working out mechanisms for financing offtake contracts together with the Development Bank of Kazakhstan and second-tier banks (in accordance with the Law of the Republic of Kazakhstan "On Industrial Policy").