Important events in the business environment this week were largely associated with the first visit of President of Kyrgyzstan Sadyr Zhaparov to Moscow. The official delegation included the heads of almost all major sectors of the Kyrgyz economy. The leaders of such industries as economics and finance, energy and environmental management, investment promotion and protection, healthcare, agriculture and others, held extensive meetings and negotiations with their Russian counterparts on the further development of bilateral ties and laid a good foundation for close cooperation.
Meanwhile, this week the National Bank announced the stability of the domestic foreign exchange market. At the same time, investors expressed concern about the new decisions of the Kyrgyz authorities regarding activities in the mining sector. In addition, food prices continue to rise.
On the whole, positive events prevailed this week, which gives rise to an optimistic outlook on the future.
Pavilion in Moscow. This week the first visit of President of the Kyrgyz Republic Sadyr Zhaparov to Russia took place. As part of this trip, director of the State Agency for the Promotion and Protection of Investments under the Ministry of Economy and Finance of Kyrgyzstan Almanbet Shykmamatov visited the pavilion of Kyrgyzstan in the Trade and Fair Complex in Moscow.
The pavilion presents various products manufactured in Kyrgyzstan: food products, textile and clothing products.
Shykmamatov met with the owner of the complex Omar Murtuzaliev.
During the conversation, issues of expanding the supply of Kyrgyz products to the Russian market were discussed.
Murtuzaliev assured that maximum favorable conditions for the sale of their products have been created for Kyrgyz exporters on the territory of the complex.
Following the meeting, a Memorandum of Understanding and Cooperation was signed between the State Agency for the Promotion and Protection of Investments of Kyrgyzstan and the Moscow Trade and Fair Complex.
Inflow of remittances increase. On the results of 2020, the net inflow of remittances from individuals to the country increased by 2% and amounted to USD 1.9 billion.
The National Bank of Kyrgyzstan noted that the economic recovery of the Kyrgyz Republic is proceeding at a restrained pace.
The decline in production volumes persists in all major sectors of the country's economy. Domestic demand remains weak, but one of the factors behind its recovery is the positive dynamics of the inflow of remittances to the country. On the results of 2020, the net inflow of remittances from individuals to the country increased by 2% and amounted to USD 1.9 billion, the report said.
Stability of domestic currency market. This week the National Bank of the republic said the domestic currency market of Kyrgyzstan is relatively stable.
An increase in demand for foreign currency was observed in some periods amid the influence of foreign economic conditions. The National Bank participates in the foreign exchange market to smooth sharp fluctuations in the exchange rate.
Gradual recovery of economies of trade partner countries is expected, which will contribute to increase of economic activity in the republic in order to ensure external demand in the near future.
Meanwhile, the increase in prices on world commodity markets determines the preservation of consumer price increase in the Kyrgyz Republic in the near future. Taking into account prerequisites for development of the external environment and internal economic conditions, the National Bank decided to increase the discount rate to 5.5%. In case of any risks, the bank does not exclude the possibility of making additional adjustments to the ongoing monetary policy, the report said.
Assistance in marking goods. Within the framework of the visit of President of Kyrgyzstan Sadyr Zhaparov to Russia, a bilateral meeting was held between Vice Prime Minister - Minister of Economy and Finance of Kyrgyzstan Ulugbek Karmyshakov with Minister of Industry and Trade of the Russian Federation Denis Manturov.
During the meeting, Karmyshakov and Manturov discussed in detail a wide range of issues of trade and economic cooperation between the countries, expressed mutual interest in increasing the volume of mutual trade, creating joint ventures in order to promote Kyrgyz products in Russia.
Following the negotiations, an Agreement was signed between the government of Kyrgyzstan and Russia on the provision of gratuitous technical assistance to the Kyrgyz Republic by the Russian Federation in order to create a system for marking goods with identification means in the Kyrgyz Republic.
This Agreement provides for the transfer to the Kyrgyz side and full adaptation of the information system for labeling goods, which is aimed at ensuring the traceability of certain groups of goods, as well as combating counterfeit and contraband goods.
Cooperation in energy. A bilateral meeting was held in Moscow between Kyrgyzstan's Minister of Energy and Industry Kubanychbek Turdubaev and Minister of Energy of Russia Nikolai Shulginov.
The meeting was held as part of a working visit of Kyrgyz President Sadyr Zhaparov to Russia.
During the meeting, the sides discussed the current state of Kyrgyz-Russian cooperation in the energy sector, including hydropower facilities in Kyrgyzstan, as well as the prospects for deepening and developing bilateral cooperation.
The ministers of the two countries expressed mutual interest in continuing close contacts to promote topical issues of mutually beneficial interaction of interest.
Ukraine is in touch. Deputy Minister of Foreign Affairs of the Kyrgyz Republic Azizbek Madmarov met this week with Ambassador of Ukraine to the Kyrgyz Republic Valery Zhovtenko.
The sides discussed issues of bilateral cooperation, including holding regular inter-ministerial consultations, resuming the work of the Kyrgyz-Ukrainian Intergovernmental Commission.
During the conversation, the possibilities of expanding trade and economic ties, promoting cooperation in such areas as agriculture, tourism, etc. were also considered. Zhovtenko reported on the recent opening of a representative office of the Ukrainian Chamber of Commerce and Industry in Bishkek, as well as plans for holding bilateral business forum.
Korean investors. Ambassador of Kyrgyzstan to Korea Dinara Kemelova made a presentation about Kyrgyzstan, the potential of the regions to attract investments and the ongoing cultural events in the Kyrgyz Republic.
The Embassy of Kyrgyzstan in Korea said that in her presentation the ambassador highlighted the most massive and striking events, such as the World Nomad Games, the Education Festival, Nooruz, Tengri Muzic Fest, the Apricot Festival and Karagat, as well as national sports competitions.
As part of the presentation, a calendar of events planned in Kyrgyzstan in 2021 was distributed among the participants to attract South Korean tourists.
During a conversation with Mayor of Ansan, Yun Hwa Sub Kemelova touched upon the establishment of twinning relations between Tokmok and Ansan, the prospects for holding joint events and sharing experience on the development of regions and cities.
Increase in prices for sugar. This week National Statistics Committee presented an average retail prices for various food products. The price of granulated sugar was stressed, the growth of which made 46% over the year.
Results of daily monitoring of average consumer prices of basic socially important products, conducted by the Statistics Committee in 18 populated settlements of the republic showed that as of Feb. 25, 2021, the national average sugar prices made KGS 59.93 (about $0.71) and rose by KGS 18.87, or 46% compared to the same date last year.
The word of subsoil users. Mining investors expressed this week their concern over recent reports of the creation of parliamentary commissions to study the rational use of natural resources by the Vertex Gold Company in Jalal-Abad Oblast, as well as to study the effectiveness of the development of the Kumtor gold deposit.
In this regard, the International Business Council of Kyrgyzstan explained that "such initiatives create alarming precedents of interference in the activities of industrial enterprises, risks of pressure, suspension of their activities, as well as similar actions in relation to other subsoil users. The situation with Kumtor is one of the indicators of the investment climate in the republic in the eyes of investors." The opinion of the business community was expressed by head of the IBC, Askar Sydykov, at a meeting with Prime Minister of the Kyrgyz Republic Ulukbek Maripov.
Investors are also not ready to agree to new conditions - the development of subsoil areas of national importance exclusively by a national mining company with 100% state participation in the authorized capital.
Mining officials told IBC that some of the investors who were already in talks have now suspended the talks.
“The opinion that Kyrgyzstan opposes the participation of foreign companies in the industry can lead to a significant outflow of investments from the country in the near future. This means that the implementation of new large investment projects in the mining industry will be questionable,” the head of the IBC summed up.
Kabar News Agency
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