RISK CRITERIA FOR FOREIGN INVESTMENT SCREENING: COMPARATIVE LESSONS FOR KAZAKHSTAN

Abstract

Foreign investment screening has become an increasingly important instrument for reconciling investment openness with national security and economic resilience. This paper examines a specific question within this debate: which characteristics of an investment transaction justify enhanced security-related scrutiny. Using a qualitative comparative analysis of selected regulatory approaches in the United States, the European Union, India, and Kazakhstan, the study groups relevant risk variables into four categories: the sensitivity of the asset or sector, characteristics of the investor, characteristics of the transaction, and the potential consequences for national interests. The comparison shows that contemporary screening systems increasingly focus on targeted assessment of access to critical infrastructure, technologies, sensitive data, essential inputs, and strategic decision-making rights rather than on foreign capital as such. Kazakhstan already applies security-related controls to transactions involving strategic objects, including sectoral assessment, review of concentration of rights, consultation with national security authorities, and consideration of threats to national interests. These mechanisms, however, are not equivalent to a general cross-sectoral foreign investment screening regime. The paper argues that formalized risk criteria could provide a practical basis for a proportionate and transparent approach to identifying transactions that warrant enhanced review while preserving investment openness