Kazakhstan delays signing digital transformation contract with Russia's Sber; eyeing alternatives

NUR-SULTAN. March 25 (Interfax) - Kazakhstan is delaying signing a digital transformation contract with Russia's Sber, and is now looking for alternatives, the Ministry of Digital Development, Innovation and the Aerospace Industry told Interfax.

"In view of the current global situation, the Ministry is considering a few scenarios for switching to a digital platform and is preparing for each of them. We are meeting with IT experts and representatives of the market and conducting analysis as needed to find best solutions, including other technologies that could be alternatives to Sber," the ministry said.

"According to the memorandum that the government and the company signed earlier, the agreement is to be signed by the end of March 2022. However, this has now become a back burner issue. After a thorough analysis, the Ministry will take a decision to be announced later," the ministry added.

On September 3, 2021, Kazakhstan's Prime Minister Askar Mamin and Sberbank CEO and Chairman of the Executive Board Herman Gref, during the East Economic Forum, signed a memorandum of cooperation in digital transformation, which also includes switching to a platform-based digitalization model and a Data-Driven Government concept.

Minister of Digital Development, Innovation and the Aerospace Industry, Bagdat Musin, said that it would cost Kazakhstan about $500 million to digitalize and switch the government management system to Russia's Sber platform.

Some people in Kazakhstan are very skeptical about the project, and they are rather concerned that transferring the government information system to a Russian platform owned by Sber could lead to data leaks.