Kyrgyzstan urges Russian businesses to invest in five economic sectors
BISHKEK (TCA) — Founders and top managers of more than two hundred leading enterprises of Kyrgyzstan and Russia discussed ways to expand cooperation within the Eurasian Economic Union (EEU). On September 14, a Kyrgyz-Russian business forum was held at the Ala-Archa state residence near the Kyrgyz capital Bishkek. Two contracts were signed at B2B meetings. The Kyrgyz-Russian Development Fund and the Russian Export-Import Bank signed a contract on concessional lending for the supply of Russian equipment to a Kyrgyz state-owned company, and the Imperial Group of Companies, Kyrgyzstan’s footwear manufacturer, and Russian Leather JSC signed a contract for the supply of raw materials. Five promising sectors Kyrgyz Deputy Economy Minister Eldar Abakirov told the guests about five economic sectors profitable to invest in, as well as measures taken by the Kyrgyz authorities to create favorable conditions for doing business and improve the investment climate in the country. Abakirov urged to consider the possibility of investing in the garment industry, processing of agricultural products, tourism, information technologies, and medicine. According to experts, these sectors can give high growth, and invested funds could be paid off in three-five years, he said. Large investors can conclude investment agreements with the Kyrgyz Government and negotiate special conditions as part of the agreements. The country also introduced a stabilization regime under which investors have the right to choose the most favorable way to pay taxes including VAT for ten years. If taxes are raised, the investors will be able to use the tax rates fixed in their contracts. The primary Government’s task is to ensure the private property rights and protect businesses from unreasonable interference of state bodies, Abakirov concluded. Trade relations The adaptation period after Kyrgyzstan’s entry to the Eurasian Economic Union has been passing without significant shocks, and this is the merit of both the state agencies and the business, Charge d'Affaires of Russia in Kyrgyzstan Vadim Chekmazov said. Russia is trying to maintain its role of a strategic partner and ally, helping to smoothly overcome the transition period when the markets of the two countries unite. The Russian-Kyrgyz Development Fund has already allocated hundreds of millions of dollars to entrepreneurs in loans aimed at developing the food industry, transport logistics, agro-industrial complex and construction. As a result, production and exports are growing in Kyrgyzstan. Exports of Kyrgyz goods to Russia increased by 41% over the first half of 2018 and by 47% in 2017. In 2017, trade between Kyrgyzstan and Russia amounted to $1.5 billion and increased by 12.4% compared to 2016, of which Kyrgyz exports were $265 million, and imports — $1.3 billion. Kyrgyzstan exports clothing, machinery, agricultural raw materials, and glass to Russia, and imports oil products, ferrous and non-ferrous metals, consumer goods, timber, cardboard, chemical products, perfumes and cosmetics, plastics, agricultural products, and household appliances. At the same time, imports of goods from Russia are growing more slowly. Over the first six months of 2018, it has grown by 10%, and in 2017 — by 34%. This is encouraging...
