Economic week of Kyrgyzstan June 24 – 29, 2019

A warning. Kyrgyz entrepreneurs, who export were warned that can start having problems from July 1.
President of the Association of Suppliers (Manufacturers and Distributors) Gulnara Uskenbaeva at the first meeting of the Committee on Industry and Entrepreneurship under the National Council for Sustainable Development of the Kyrgyz Republic said that electronic reporting with an electronic digital signature is introduced for exporters to the Eurasian Economic Union (EAEU) from July 1.
Projects on sheep breeding. It is necessary to create in Kyrgyzstan projects on sheep breeding. Aziza Yuldasheva, the head of the Agro-Businessmen Association "Jer Azygy" expressed such an opinion.
According to her words, the wool produced in Kyrgyzstan is in great demand among artisans and enterprises engaged in woolen products.
"There is a Vivatex company in Tokmok. They sell wool products in Uzbekistan, Russia and America with big success. We are talking about environmentally friendly products. Wool is a huge demand in the world," she said.
Yuldasheva appealed to new Minister of Agriculture, Food Industry and Land Reclamation of Kyrgyzstan Erkinbek Choduev with a proposal to create projects on sheep breeding.
Arrested money. The State Service for Combating Economic Crimes (Finpol) and the State Financial Intelligence Service (Finrazvedka) of the Kyrgyz Republic arrested the funds of investors from Switzerland, business representative Askar Sydykov told during the first meeting of the Committee on Industry and Entrepreneurship at the National Council on Sustainable Development of the Kyrgyz Republic with the participation of President Jeenbekov.
He said that a Swiss company expressed a desire to invest USD 12 million in the Kyrgyz Republic.
"But Finpol and Finrazvedka arrested these funds. They were in one of the commercial banks of the Kyrgyz Republic. At the moment, it is not known whether they will work or not," he said and asked the head of state to pay attention to this problem.
Calculation of EEC. In 2020, trade in agricultural products within the EAEU will increase by almost a quarter, exports to third countries - one and a half times. Such forecasts were voiced this week by the Eurasian Economic Commission.
In particular, it is specified that the board of the Eurasian Economic Commission considered issues in the areas of trade, the functioning of the internal market, the agro-industrial complex, the digitalization of the economies of the countries of the Eurasian Economic Union.
About travelling abroad. The Ministry of Economy of the Kyrgyz Republic submitted for public discussion the draft law On Amendments to Certain Legislative Acts of the Kyrgyz Republic (to the Tax Code, the Law On the State Border, the Law On External Labor Migration).
According to the document, the objective of this bill is to reduce the debt on taxes, insurance premiums and non-tax payments, increase revenues to the budget by applying enforcement measures to collect debts from persons evading taxes and insurance premiums, reducing the number of defaulters and collecting additional assessed taxes and insurance premiums during tax audits.
In a number of foreign countries, there are measures that force debtors to pay their debts to the budget. In particular, it is limited to travel abroad to citizens and individual entrepreneurs who have debts to the budget. Such restrictions are necessary, since citizens have not only rights, but also obligations, including the timely fulfillment of tax obligations. Before traveling abroad, a citizen needs to clarify in advance whether he has forgotten to pay the fine or pay the tax and whether the restrictions on his departure were imposed because of this.
New air route. This week it became known that from July 5, 2019 a new regular flight Sharjah-Bishkek-Sharjah will be opened. Air service will be operated by Air Arabia (United Arab Emirates).
Emirati company will fly 4 times a week: on Tuesdays, Thursdays, Saturdays and Sundays. The flight duration is about 4 hours.
In order to develop the geography of flights and increase passenger traffic, Manas International Airport OJSC is working to attract new airlines and open new air links.
Air Arabia was founded in 2003 and serves more than 170 international and domestic routes from its hubs in the UAE, Morocco and Egypt.
Purchased gold. Since the beginning of 2019, the National Bank of the Kyrgyz Republic has bought 1.6 tons of gold in the amount of KGS 4.7 billion, Chairman of the National Bank, Tolkunbek Abdygulov told reporting this week to the country's parliament.
"The volume of gross international reserves (assets in gold, SDR and foreign currency) at the end of 2018 amounted to about USD 2.156 billion, having decreased by 1 percent over the year or by USD 21 million (at the end of 2017 – USD 2.177 billion). In order to replenish the volume of international reserves, the National Bank carried out operations on the purchase of gold in the domestic market for national currency, the total volume of which in 2018 amounted to 4.2 tons in the amount of KGS 11.8 billion, having increased by 78.8% over the year (more 1.8 tons), " he said.
Covering costs for summit. This week, the Ministry of Economy of the Kyrgyz Republic signed the Exchange letters between the governments of the Kyrgyz Republic and the People's Republic of China on providing financial assistance to the Kyrgyz Republic for conducting the meeting of the Council of Heads of State of the Shanghai Cooperation Organization (SCO).
In accordance with the above exchange letters, the government of the People's Republic of China will allocate USD 6 million 760 thousand to cover the costs associated with the preparation for the meeting of the Council of the heads of the SCO member states.
The exchange letter was signed by Minister of Economy of the Kyrgyz Republic Sanjar Mukanbetov on behalf of the Government of the Kyrgyz Republic. On behalf of the Government of the People's Republic of China, Ambassador Du Dewen.
Forum for miners. The International Business Council (IBC) for the first time held a forum of suppliers of goods and services for the mining industry of Kyrgyzstan.
It was an unusual forum. Ten large mining companies, including KAZ Minerals Bozymchak, Kumtor Gold Company, Altynken, Highland Exploration and 28 supplier companies from various sectors of the country's economy, held presentations this week and exchanged information.
Subsoil users explained the procurement procedures to suppliers and answered all their questions.
Export potential. The basis of Kyrgyzstan’s export are garments and ores.
Chief specialist of the Center for Integration Studies of the Eurasian Development Bank (EDB), Timur Dauranov said that in 2018 these commodity groups made 25% and 18% of the exports of Kyrgyzstan in EAEU.
"The proportion of copper and its products and dairy products, eggs and honey is also significant; the share of other product groups does not reach 5%. The intra-union export of Kyrgyzstan’s knitted garments, cereal and flour products, beverages, aluminum and products from it, products made of leather, lead and products made of it, etc. is continuously increasing. At the same time, exports of vegetables, articles of clothing, products made of ferrous metals, tobacco decreased," he said.
Kabar News Agency