Kyrgyzstan Offers Preferential Incentives To Attract Russian Manufacturers
Umbriel Temiraliev, the head of Kyrgyzstan’s National Investment Agency, has said during the current Russia-Kyrgyzstan Investment Forum that numerous Russian companies are interested in partial localization of their production in Kyrgyzstan, and that national Kyrgyz authorities are prepared to create the necessary conditions to accommodate this.
With the European market non-energy cut off from Russian exporters, Russian manufacturers and traders are looking east to new markets. While Russia remains Kyrgyzstan’s largest exports market, this is closely followed by China. Kyrgyz international trade is up nearly 20% this year, and the country is rapidly developing an e-commerce industry, again with the assistance of China. It could be a smart move for Russian companies to expand their operations to the country as it also has trade and investment agreements with regional neighbours Kazakhstan, Tajikistan, Turkmenistan, and Uzbekistan. It is also part of the Eurasian Economic Union, which includes Russia.
The Kyrgyz Republic has also signed double-taxation treaties with 27 countries including Armenia, Austria, Belarus, Canada, China, Finland, Germany, India, Iran, Kazakhstan, Lithuania, Malaysia, Moldova, Mongolia, Pakistan, Poland, Russia, Switzerland, Tajikistan, Turkiye, Ukraine, and Uzbekistan. The U.S.-U.S.S.R. treaty on double taxation, which was signed in 1973, remains in effect between the U.S. and Kyrgyzstan.
The Kyrgyz investment agency is interested in assisting large and small Russian companies with partial localization of production or those thinking about entering the nation’s market.
Kyrgyz authorities are proposing the option of Russian companies working in free economic zones or preferential territories. A public-private partnership mechanism is being proposed for implementation.
“Temiralev stated that just last week, a Russian company wants to partially transfer its enterprise here. They would like to launch assembly of transport equipment, including electric public transport”.
Russian businesses looking to export to China, including from Kyrgyzstan, may contact Dezan Shira & Associates www.dezshira.com to discuss the export and import protocols from the China end. The firm has 30 years of experience, and 13 offices throughout China. Email Maria Kotova: firstname.lastname@example.org
During these uncertain times and with sanctions in place, our firm helps Russian companies relocate to Asia. We also provide financial and sanctions compliance services to foreign companies operating in Russia. Additionally, we offer market research and advisory services to foreign exporters interested in doing business in Russia as the economy looks to replace Western-sourced products. For assistance please email email@example.com or visit www.dezshira.com