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Cases / War and military activity · Kazakhstan · 1992–2016

Sary-Shagan test range lease to Russia: rent, a 1992–1996 compensation clause and an ecological commission

Nature's voice · report
No measurement of the harm done to me here is on record.
Did nature suffer? Not measured.
Not on record
  • The record does not name which of my species, waters, soils or forests were harmed.
What the record lacks: 4 none on record · 1 not measured · 3 unclear See the gaps

Russia leases the Sary-Shagan military test range in Kazakhstan under 1995 and 1996 treaties. Annual rent has been $16.276 million since 1 January 2016; the 1996 treaty fixes compensation of $99.85 million for 1992–1996 property losses and expenses and provides for a joint commission on the range’s ecological consequences, to be remedied at the lessee’s expense.

$16.276M a yearAnnual rent for the Sary-Shagan range from 1 January 2016
“an amount equivalent to 16.276 million US dollars” (Art. 4 of the lease treaty, as amended in 2016), paid in two equal instalments a year.

Status As of the 2016 amendment (Law No. 463-V, 29 February 2016): rent of $16.276 million a year from 1 January 2016; no later figures are on record.

What?
Russia leases the Sary-Shagan military test range in Kazakhstan under 1995 and 1996 treaties, with annual rent of $16.276 million from 2016, a $99.85 million compensation clause for 1992–1996 and an ecological commission clause. Republic of Kazakhstan
Where?
West and north-west of Lake Balkhash, Betpak-Dala desert, Karaganda and Zhambyl regions; town of Priozersk. Tengrinews
When?
Agreement of 20 January 1995; Lease Treaty of 18 October 1996, in force 7 May 2003; rent amended in 2007 and 2016. Republic of Kazakhstan
Who?
Gained
  • Kazakhstan — Annual rent of $16.276 million from 2016; return of over 16,000 km² in 2015 Republic of Kazakhstan
Lost
  • Russia (lessee) — Pays rent; treaty obligations to compensate for 1992–1996 losses ($99.85 million) and to eliminate ecological consequences at its expense Republic of Kazakhstan
Harmed
None on record
Why?
The range serves Russian military testing; Shoigu said the returned land left boundaries sufficient for testing new arms and military equipment. Tengrinews
How?
A treaty-fixed rent in dollars, a compensation clause under a separate agreement, and a joint commission on ecological consequences with elimination at the lessee’s expense. Republic of Kazakhstan
6 of 6 questions answered from the record

What happened

The record, in order.

Russia uses the Sary-Shagan military test range west and north-west of Lake Balkhash in the Betpak-Dala desert, Karaganda and Zhambyl regions, near the town of Priozersk, under an Agreement on conditions of use and lease dated 20 January 1995 (ratified by Law No. 74 of 5 July 2000) and a Lease Treaty dated 18 October 1996 (ratified by Law No. 73-II of 5 July 2000, in force 7 May 2003). A 2007 protocol and a 2016 amendment (Law No. 463-V of 29 February 2016) changed the rent. Protocols of 16 April 2015, ratified by the Senate on 18 February 2016, returned over 16,000 km² to Kazakhstan.

The treaty sets the rent at $2.33 per hectare per year (Art. 3, as amended in 2007) and, from 1 January 2016, at an amount equivalent to $16.276 million a year, paid in dollars in two equal instalments (Arts. 4–5). Trend.az reported on 20 February 2015 that the previous rent was about $18.932 million a year (2005–2015) and that rent for the ranges of Russia’s 929th State Flight Test Centre was $4.454 million in 2015, with $3.081 million proposed from 2016. Russian Deputy Defence Minister Anatoly Antonov said the combined lease for the ranges would fall from $23,486,000 to $19,357,000 a year (Tengrinews, 20 April 2015). Kazakh Deputy Defence Minister Okas Saparov told the Senate in 2016 that withdrawing more than 1 million hectares reduces the rent by more than $2.5 million; the released plots include 711,290 ha for air routes A-113 and A-73 and Zhamanaibat for non-ferrous metal mining.

Article 6 of the treaty provides that “compensation for property losses and expenses of the Republic of Kazakhstan connected with operating the range in 1992–1996, in an amount equivalent to 99.85 million US dollars, is made under a separate agreement which the Parties will conclude during 1997” (translated). Article 9 provides that within two months of the treaty’s entry into force the parties create a joint commission to determine the extent of possible negative ecological consequences of the range’s activity since 1992 and, if they are found, methods and timelines for eliminating them at the lessee’s expense. If targets, test vehicles, rockets or their parts fall outside the range by the lessee’s fault, the lessee compensates the lessor for the actual damage caused.

The 1995 Agreement states that when ecological damage is caused by the range’s activity, elimination of the consequences is carried out by the Russian Federation, with the procedure and amount of damage set by a specially created interstate commission, and that Russia undertakes through long-term nature-protection programmes the improvement of the ecological situation within the range. Russia bears no responsibility for damage, including to ecology and nature use, from Kazakhstan’s own use of range land with third countries.

Russian Defence Minister Sergei Shoigu said in April 2015: “We took into account the interests of Kazakhstan when returning the land from lease”, adding that the new boundaries are “sufficient for testing of new arms and military equipment”.

  1. 1992Start of the period for which the 1996 treaty provides $99.85 million compensation (1992–1996)
  2. 1995Agreement on conditions of use and lease (20 Jan); ratified by Law No. 74 on 5 Jul 2000
  3. 1996Lease Treaty signed (18 Oct); ratified by Law No. 73-II on 5 Jul 2000; in force 7 May 2003
  4. 2007Protocol (Law of 21 July 2007 No. 284) amends the rent rate
  5. 2015Protocols return over 16,000 km² (16 Apr)
  6. 2016Senate ratification (18 Feb); rent of $16.276 million a year from 1 Jan under Law No. 463-V (29 Feb)

What was said

Claims, in the words of those who made them.

“We took into account the interests of Kazakhstan when returning the land from lease”

Sergei Shoigu, Russian Defence Minister · April 2015 · Tengrinews

“sufficient for testing of new arms and military equipment”

Sergei Shoigu, Russian Defence Minister, on the new boundaries · April 2015 · Tengrinews

“by more than 2.5 million US dollars”

Okas Saparov, Kazakh Deputy Defence Minister, on the rent reduction (translated) · February 2016 · translated from Russian · Zakon.kz

“compensates the Lessor for the actual damage caused”

How it looked

What was shown, beside what was recorded.

Shown

  • The interests of Kazakhstan were taken into account when land was returned from lease
    Russian Defence Minister Sergei Shoigu, April 2015 · Tengrinews
  • The lessee is to fund the elimination of the range’s ecological consequences if a joint commission finds any
    Lease Treaty, Art. 9 · Republic of Kazakhstan

Recorded

  • Rent $2.33 per hectare per year; $16.276 million a year from 1 January 2016, paid in two equal instalments
    Republic of Kazakhstan
  • Previous rent about $18.932 million a year (2005–2015)
    Trend.az
  • Treaty provides $99.85 million compensation for Kazakhstan’s property losses and expenses of 1992–1996, under a separate agreement to be concluded in 1997
    Republic of Kazakhstan
  • Treaty provides for a joint ecological commission and elimination of consequences at the lessee’s expense
    Republic of Kazakhstan
  • Over 16,000 km² returned to Kazakhstan under 2015 protocols
    Tengrinews

Who gained

Money that reached nature, beside money that stayed elsewhere.

Reached nature or the ground

Not published
No figure published.

Gained elsewhere

Not totalled
Annual rent for the Sary-Shagan range from 1 January 2016 (Art. 4)$16m
Previous annual rent, Sary-Shagan range≈ $19m
Compensation clause: Kazakhstan’s property losses and expenses, 1992–1996 (Art. 6)$100m
To be made under a separate agreement to be concluded in 1997.
Combined lease for the ranges after the 2015 returns (Antonov)$19m
Falls from $23.486 million a year.
Currency: USD · Window: 2005–2016 and 1992–1996. All figures cover the same period. * Estimate built from cited figures.

Responses on record

  • russia-gov (April 2015): Russia took Kazakhstan’s interests into account when returning land from lease; the new boundaries are sufficient for testing new arms and military equipment (Defence Minister Sergei Shoigu). · Tengrinews
  • kazakhstan-government (February 2016): Withdrawing more than 1 million hectares reduces the rent by more than $2.5 million (Deputy Defence Minister Okas Saparov). · Zakon.kz

In court and with insurers

Every proceeding and every insurer decision on record.

Lawsuits and rulings

  1. 1996–Outcome not on record$99.85m treaty compensation clause for 1992–1996 property losses and expenses
    Sary-Shagan Lease Treaty: compensation clause (Art. 6) and ecological commission (Art. 9)
    Bilateral treaty between Kazakhstan and Russia (ratified by Law No. 73-II) · International court · Republic of Kazakhstan (lessor) → Russian Federation (lessee)

    Art. 6 provides $99.85 million for Kazakhstan’s property losses and expenses of 1992–1996 under a separate agreement due in 1997; Art. 9 provides for a joint commission on ecological consequences since 1992 and for their elimination at the lessee’s expense. None on record: conclusion of the separate agreement or payment. Republic of Kazakhstan

Insurers

No insurer decision on record.

What nature saw

Outcomes measured on the ground, and nature's note.

Nature's report opens this page. Below: further outcomes measured on the ground.

Annual rent from 2016
$16.276M
Paid in two equal instalments a year
Compensation clause, 1992–1996
$99.85M
Property losses and expenses; separate agreement due in 1997
Land returned in 2015
over 16,000 km²
Protocols of 16 April 2015

What we don't know

Undisclosed, unproven, untried: recorded as data.
No court caseNo independent ecological evaluationKey earnings undisclosed

Nature

  • Not measured Harm to nature: No independent ecological evaluation is on record.

Court

  • Unclear Sary-Shagan Lease Treaty: compensation clause (Art. 6) and ecological commission (Art. 9): outcome not on record.

Record

  • Unclear None on record: whether the joint ecological commission under Article 9 was formed, what it found, or any Russian clean-up spending.
  • None on record None on record: confirmation that the separate agreement for the $99.85 million was concluded or that the amount was paid.
  • None on record None on record: measured contamination data for the Sary-Shagan range.
  • None on record None on record: court proceedings.
  • None on record None on record: insurance cover.
  • Unclear Unclear: the current (2026) rent and any debris-fall incidents with damage paid.

Did the harm stop?

None on record: any Article 9 ecological commission finding or clean-up; over 16,000 km² of the leased area was returned to Kazakhstan under 2015 protocols.

Who paid?

Russia pays the annual rent (about $18.932 million a year in 2005–2015, $16.276 million from 2016). Under the treaty, elimination of ecological consequences is at the lessee’s expense. None on record: any such payment or the $99.85 million compensation.

Sources

Voices on record: — Company or project✓ Government and regulators— Courts✓ Press and investigations— Communities and civil society— Researchers

Government and regulators

Press and investigations

Connected cases

Related matters, and cases linked to this one through the same organisations, with the role each played in both.
Terms used on this page

Science and environment

Hectare (ha)
A unit of area equal to 10,000 square metres, about 2.5 acres. 100 hectares make one square kilometre.

Law and courts

Arbitration
A private dispute process in which an appointed arbitrator, instead of a court, decides the case.
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